NATIONAL FIVE YEAR DEVELOPMENT PLAN 2016/17 – …

1 NATIONAL five year DEVELOPMENT plan 2016/17 2020/21 THE UNITED REPUBLIC OF TANZANIAMINISTRY OF FINANCE AND PLANNING June 2016 Nurturing Industrialization for Economic Transformation and Human DEVELOPMENT Everybody wants DEVELOPMENT ; but not everybody understands and accepts the basic requirements for DEVELOPMENT . The biggest requirement is hard work . Nyerere, J. K, (1967). Freedom and Socialism, (p. 244) NATIONAL five year DEVELOPMENT plan 2016/17 2020/21 Page iKEY NOTE On December 9, 2016, Tanzania will be commemorating its 55th Independence Anniversary. The motivation for our mothers, fathers, sisters and brothers for rallying behind the collective objective of ending colonialism was none other than putting the task of developing the country in our own hands. The newly independent state started with only eight qualified Medical Doctors; two Engineers; a life expectancy at birth of only 38 years; a per capita GDP at merely US$ 48; and no University.

2 Tanzania will be celebrating the Independence Day with pride, considering, the mileage covered so far in fulfilling her DEVELOPMENT objectives. The country has forged ahead to attain a life expectancy of more than 61 years, created a modest pool of 2,190 Medical Doctors and over 30,245 Engineers; established about 50 universities and university colleges and attained a GDP per capita of US$ 1,043 by 2014; putting the country at the threshold of graduating from Low to Middle Income Country status by 2025. Though a commendable achievement, with less than ten years remaining to 2025, it is clear that Tanzania needs to embark on swifter and broader social and economic transformation. The current level of income growth is still lower than the trajectory for realizing the DEVELOPMENT aspirations articulated in the Tanzania DEVELOPMENT Vision 2025, of raising the average GDP per capita to US$ 3,000 (nominal).

3 Skill gaps are wide in comparison to demands for developing and managing a semi-industrialized economy, where the majority of people will be enjoying quality Fifth Phase Government that I lead is committed to bringing about fundamental improvements in the lives of Tanzanians. To do this, however, the attitude of Tanzanians towards work must be more positive; commitment to addressing stumbling blocks in the course of implementing this plan should be unwavering; and resolve to achieve the set targets should be abiding. In short, the collective resolve must be brought to bear towards the realization of the broad goals of Tanzania DEVELOPMENT Vision (TDV) is replete with most of the resources required to successfully achieve TDV 2025 objectives. This being complemented with the support from our DEVELOPMENT partners and other well-wishers, augments our ability to undertake the needed strategic repositioning for realising the Vision. The Second five year DEVELOPMENT plan , 2016/17 - 2020/21 is the principal and shared tool in the realisation of these objectives.

4 The theme of it is, Nurturing Industrialization for Economic Transformation and Human DEVELOPMENT with the main objective of enhancing the pace of progress towards the Tanzania DEVELOPMENT Vision 2025. The term nurturing to the theme has been used with a purpose. It acknowledges that economic transformation is not a one off event; rather, it is a long-term endeavour, demanding a high level of policy consistency, hard work, commitment, discipline and sacrifice. It further acknowledges the unprecedented Government commitment to tackle poverty, NATIONAL five year DEVELOPMENT plan 2016/17 2020/21 Page iiresolve institutional coordination failures, and addressing challenges, which beset the preceding Plans while also forging strong partnerships and collaboration with other stakeholders of in harnessing Tanzania s natural endowment is the driving force for sustainable transformation of our country.

5 Tanzania has, in the recent past, been doing well in attracting investments, both local and foreign. However, challenge remains to scale up the amount and quality of investments in line with our desired transformation path, with the private sector riding on the forefront. In implementing the FYDP II, my Government seeks to entice and attract increasingly private sector investment flows in new and more productive economic activities. This, however, would only be possible with the business environment that is reliable, secure and predictable for the private sector to profitably operate, sustain and flourish. For, the Government s commitment to creating a conducive business environment should, therefore, not only transcend the plan period; but rather, need to be sustained in the longer-term. My Government is determined to continue improving the business environment and in so doing, providing a wide range of appropriate incentives and support to unleash creativity of private sector and other stakeholders in harnessing Tanzania s comparative advantages and thereby boosting productivity, enhancing innovation, and fostering economic integration and deepening participation in the regional and global value chains.

6 Doing these in business unusual way , as we are determined to, calls for fundamental restructuring and repositioning in Government undertakings. Ministries, Departments and Agencies must ensure that the supervision and implementation of their respective programmes has to embed the need to achieve time - bound targets. They should be vigilant to ensure that all obtaining resources, financial and material, are spent judiciously and efficiently. The Government is further committed to ensuring efficient delivery of public goods and to searching for innovative solutions outside the box when it comes to addressing the obstacles to business, promoting investments and growth as well as ensuring DEVELOPMENT of the private sector. The reform measures currently being undertaken by the Fifth Phase Government, within the motto of Hapa Kazi Tu , will further be intensified and sustained over time along with strengthening the dialogue mechanism with the private sector and other stakeholders, given the fact that some of the reforms are likely to trigger trade- offs.

7 May I remind my fellow countrymen to bear in mind that whatever the sacrifices we have to make during our time will only be worthwhile if we achieve more than what our fore mothers, fathers, brothers and sisters did in reclaiming the freedom that we presently enjoy. In fact, the responsibility of preserving and extending the treasure of independence beyond our generation rests with us. In taking this responsibility, the sacrifices and hardships we are to go through will set a foundation for our future generation to emulate. It is with the spirit of consensus building and the need to rallying efforts of various stakeholders around our medium and long-term aspirations that extensive, inclusive and broad consultative processes were undertaken during the formulation of the Second five year plan . I appreciate the confidence and enthusiasm with which the society has received the Second five year DEVELOPMENT plan and the people s eagerness and anticipation of the time that Tanzania will attain Middle Income, Semi- industrialized economic and social status countrymen, I should hasten to remind everyone that there is neither short cut to success nor is there substitute for hard work and diligence in fulfilling our responsibilities and attaining the set targets.

8 Personally, I am more than ready to do all that it takes to steer the Government and the society to the heights of our desired DEVELOPMENT . I should, however, urge all Tanzanians, collectively and individually, as well as all our contemporary and emerging friends in DEVELOPMENT , to join me with the highest level of commitment in treading the course. NATIONAL five year DEVELOPMENT plan 2016/17 2020/21 Page iiiFellow Countrymen, the call to participate in implementing the Second five year DEVELOPMENT plan , which marks another milestone in our quest to attaining Vision 2025 goals and objectives, is a challenge, an opportunity and an honour for all of us. It is a challenge because we are in the unenviable position of fulfilling monumental tasks to meet the aspirations of Tanzanians highlighted in TDV2025; within a space of less than ten years. It is an opportunity in that we want to demonstrate to the world at large, that, yes, we can do it. It is an honour because it is our present generation, and none other, that has been charged with the enormous historic responsibility of successfully delivering on Vision 2025; transforming Tanzania into a Semi- industrialized, Middle Income Country.

9 Collectively and individually, let us take pride for being the privileged participants in this noble course. Fellow citizens and all people of goodwill, as I had repeatedly and consistently promised during my Presidential Electoral Campaigns and other fora, let me assure you that my Government will not let you down in playing its BLESS TANZANIA; GOD BLESS AFRICA!Dr. John Pombe Joseph MagufuliPresident of the United Republic of TanzaniaJune 2016 NATIONAL five year DEVELOPMENT plan 2016/17 2020/21 Page ivPREFACE Tanzania has continued to achieve a sustained high growth rate of the economy, with signs of economic transformation emerging. These positive developments have, however, not facilitated substantial poverty reduction, creation of quality jobs and productivity increase. These manifestations are inconsistent with the NATIONAL DEVELOPMENT aspirations articulated in the Tanzania DEVELOPMENT Vision 2025 of transforming the economy into a middle income and semi-industrialized state by 2025.

10 As such, concerted efforts are needed to transform the economy, commensurate with the envisaged DEVELOPMENT aspirations; a task we have to fulfil in less than 10 years. The Second five year DEVELOPMENT plan whose theme is: Nurturing Industrialization for Economic Transformation and Human DEVELOPMENT is intended to rally and align society s efforts towards realization of the DEVELOPMENT aspirations. This will only be achieved through, among others, fostering economic growth, reducing economic vulnerability, enhancing forward and backward linkages between and within sectors, ensuring positive spill-over effects of skills DEVELOPMENT and technology innovation, creation of decent jobs and ensuring environmental is worth reiterating that there are less than ten years remaining between now and the terminal year of Vision 2025. As such, effective implementation of this plan is critical. We live in a world of great opportunities albeit with risks too.