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Tanzania economic update

Big vs. small firms: one size does not fit all

Jacques Morisset's picture

التغطية الصحية الشاملة تعني أن جميع الناس يستطيعون الحصول على الخدمات الصحية التي يحتاجونها دون معاناة مالية. ويلخص تقرير جديد أصدره البنك الدولي ومنظمة الصحة العالمية إلى أن النفقات الصحية تدفع نحو 100 مليون شخص سنويا إلى "فقر مدقع"، والذين يعيشون على 1.90 دولار أو أقل في اليوم؛ وحوالي 180 مليون شخص سنويا الى حالة الفقر باستخدام عتبة قدرها 3.10 دولار في اليوم.

يمكنك الوصول إلى التقرير، والبيانات، والتصورات التفاعلية، والمزيد: http://data.worldbank.org/universal-health-coverage/

Nyerere’s Biggest Surprise: An Urban Tanzania

Jacques Morisset's picture

 Scott Wallace / World BankIf Mwalimu Julius Nyerere, the Father of the Nation, visited Dar es Salaam today, there is no doubt he would be surprised at what the city has morphed into since his time. From less than one million people in the early 1990s, Dar es Salaam’s population has grown at an average rate of 5.8 percent annually to reach 4.4 million people today, making it one of the fastest growing cities in the world. It is now estimated that the city will be home to over 10 million inhabitants by 2027.

The urbanization process in Tanzania is a tale of two cities, as illustrated by the recent growth of Dar es Salaam. At first glance, Dar es Salaam looks like a modern city with a panoramic skyline of tall new buildings. But this façade of the modern metropolis quickly gives way to sights of congestion in the city slums, highlighting the realities of poor urban planning and inadequate public services.

For shared prosperity Tanzania needs a universal strategy

Jacques Morisset's picture

Which World Bank financed project can you see from space, and on Leonardo DiCaprio’s Instagram?

As Raka and I found out in this episode, it’s the “Noor Ouarzazate Concentrated Solar Power Plant” in Morocco - an epic energy project that’s part of the country’s plan to have 42% of its energy mix come from renewables by 2020.

Seriously, it’s epic: just look at these pictures from CNN and this World Bank video.

Renewable energy seems to be getting cheaper than ever, and we ask the question: are we reaching a “tipping point” where renewable energy is cheaper to produce than energy from fossil fuels.

In our discussion with Mafalda Duarte, head of the $8.3 billion Climate Investment Funds (CIF), I learned that renewable energy (in this case, concentrated solar power) is a bit more complicated than just finding somewhere sufficiently sunny or windy. For example, the concentrated solar power (CSP) technology being used in Noor Ouarzazate is relatively new and so more expensive. With the investment CIF is making, the cost of the CSP technology can be driven down, and the tipping point reached faster for other countries wanting to adopt the technology.

So what are the issues of geography, politics, technology and economics when it comes to large scale renewable energy, and how can we influence them to help countries reach the tipping point where renewable energy becomes the best option?

This episode of Between 2 Geeks is hosted by Tariq Khokhar & Raka Banerjee, and produced by Richard Miron. You can chat with us on twitter with the hashtag #Between2Geeks, listen to more episodes on the World Bank Soundcloud Channel and subscribe to “World Bank’s Podcasts” in your podcast app or on iTunes.

Tanzania can benefit from natural gas by empowering people

Jacques Morisset's picture

If you are looking for a house in Dar es Salaam, hurry up. With the recent discovery of massive natural gas reserves, affordable houses will soon become a rarity. The cost of living in African countries with abundant natural resources (Angola, Gabon, etc) is among the highest in the world. Today Tanzania sits on about 15 trillion cubic feet of proven natural gas reserves, equivalent to approximately US$150 billion at current prices, or 6 times Tanzania's current GDP.

These proved and potential reserves can be a game changer for Tanzania. Yet, extracting and producing is not a simple affair. Massive up-front investments (larger than the country’s current GDP of US$22 billion) and new technologies are necessary, while benefits will typically spread over 25 to 30 years. Short of cash and expertise, Tanzania will have to partner with global companies. Potential candidates (British Gas, Statoil) are already knocking on the door.

Tanzania’s Steep Learning Curve

Stevan Lee's picture

This past week, we saw our future in a world of more extreme weather as Super Typhoon Haiyan tore apart homes and cities and thousands of lives across the Philippines.

Scientists have been warning for years that a warming planet will bring increasingly extreme and devastating weather. Scientific certainty has brought climate change over the planning horizon, and the impact is now unfurling before our eyes.  This level of damage, with millions of people affected, will become more frequent unless we do something about it – fast.

Negotiators from around the world are here in Warsaw for the UN climate conference to work on drivers that can spur that action on a global scale.

It is not overly complicated. We need to get the prices right, get finance flowing, and work where it matters most. But, each of these will take political will to right-size our collective ambition – for ourselves and for the people of the Philippines and the Pacific Islands and the low-lying coasts of Africa and the Caribbean who are directly in harm’s way.

Tanzania: Building bridges through education and small businesses

Jacques Morisset's picture

The author, Guillermo Recio Guajardo, won second place in an international youth essay competition sponsored by the World Bank and other partners. He answered the question “How can you tackle climate change through youth-led solutions?” The awards were announced in Seoul in June, 2009.

The Sierra Tarahumara in Chihuahua, Mexico
   Photo by Guillermo Recio Guajardo

Over the years, several multinational companies and global groups have entered the ancestral territories of indigenous communities in Mexico, and the process of modernization has often damaged the environment.

For example, both legal and illegal logging are now common in the Sierra Tarahumara in Mexico’s Chihuahua state. This territory is home to about 84,000 Rarámuris or Tarahumara Indians who depend on forest conservation for their livelihood and preservation of their culture. But deforestation and loss of biodiversity are a severe threat—with almost 90 percent of the wood for the forest industry in Chihuahua coming from the Sierra Tarahumara—and are increasing an irreversible ecological imbalance.

Illegal logging has also been causing upheaval in Mexico’s climate system. Without enough trees in our tropical and temperate forests, it is impossible to capture carbon dioxide. According to recent research, "Mexico has deforested more than one-third of its forests and jungles, thereby reducing its original woodland area of 52 percent of the country to 33 percent in the year 2000."1

Tanzania: Building bridges through education and small businesses

Jacques Morisset's picture

Attracted by the prospects of large unexploited natural gas reserves in the south of Tanzania, big players are in town. The British Gas Group has publicly announced that it may invest over US$35 billion in the next 25 years – 1.5 times Tanzania’s current GDP. Policymakers and donors are jockeying to position themselves and understand what is at stake.

The excitement is well founded but perhaps a little bit premature. According to the most optimistic projections, revenues from natural gas will not materialize for 5-7 years. Moreover, international experience shows that commodity-driven growth does not guarantee success. The Tanzanian authorities are therefore right to prepare for the future by setting up the fiscal and financial rules required for future transparent and rational use of these funds now. They should not forget also to focus on the coming 5-7 years because the economy is facing a number of challenges.