Pressure mounts on Zanzibar to diversify economy

WITH evidences increasingly attributing the Isles poverty to political instability and reliance on single source of income, pressure is mounting for the Zanzibar government to diversify the economy through tourism and fishing sectors.

Official statistics put the number of people living in abject poverty in the whole of Zanzibar at 139,150, with over half of them residing in Pemba. The residents of Micheweni district in Pemba, the statistics show, are the poorest among Zanzibaris.

With over 30,000 residents of Micheweni living in abject poverty, the district accounts for over 38 per cent of people who can hardly get enough food in Pemba and over 20 per cent for the entire Zanzibar population, currently estimated at 1.1 million.

Deputy Minister of East African Community Mohamed Aboud says prior to the collapse of the clove industry in the 1980s, the Islands had per capital income of 7,000 British Pounds.

Mr Aboud notes that as the isles was struggling to diversify the economy by promoting tourism and trade, it was hardly hit by political unrest in 1985 that damaged the economic structure and stability of the …islands.

Pemba is hard hit due to about 70 per cent of its population depending on clove farming, says the deputy minister.

Zanzibar used to produce an average of 24,000 tonnes of clove annually during the 1960s and 1970s but annual production has since dwindled, ranging between three and five tonnes.

According to Mr Aboud, when clove was at its peak, the main buyer was Indonesia, which however opted to grow her own clove in the 1970s and started harvesting in the 80s.

“Since then the Zanzibar economy got troubled,” says Mr Aboud, noting that Indonesia was currently producing between 80,000 and 100,000 tonnes annually against the world’s annual consumption of 10,500 tonnes.

The market collapse resulted into falling production and eventually the economic downturn, compelling the Isles government to diversify her economy.

Tourism, investment and trade were the new areas that received immediate attention. But, Mr Aboud regrets that soon after embarking on economic diversification, the country was plunged into political unrests in 1985.

“This retarded the envisaged progress in trade liberalisation and economic diversifications…the effects (of unrests) are still being felt even today,” he says.

He notes that when Zanzibar was at its best economically, most of her income was spent on importing food instead of investing home based agriculture: “The biggest problem in Zanzibar is that of food importation…during economic prosperity, it appears, there were poor choices of investment.”

Zanzibar needs to invest heavily in food production to avert the high costs of importing food, he adds. Zanzibar spent 7.5 million US dollars (over 10bn/-) on food imports during the year ending September, 2009.

The amount accounts for about 33 per cent of the cost of all consumer goods imported during the period.

Mr Ahmed Saleh of Grande Farm says Zanzibar can feed itself by only revising its agricultural policies and working out effective strategies: “Commercial farming in which I’m currently fully engaged can tremendously boost food production and make importation of food in Zanzibar history.”

Zanzibar Minister of State, Finance and Economic Affairs, Mwinyihaji Makame Mwadini admits that there is more poverty in Pemba than in Unguja, noting however that the Zanzibar Human Development Report for 2009 has highlighted some improvement in many facets.

But, analysts say agriculture and fishing in Zanzibar are inseparable. It is inevitable to transform the fishing sector if agriculture has to prosper in the spice Islands, analysts contend.

Investment in fish processing plants and storage facilities are critical to complement majority small fishermen and to make Zanzibar real competitive in the East African Market, the Islanders must liberalise and diversify the economy from reliance on clove farming.

And, instead of troubling themselves to export the raw cloves to the volatile foreign markets, Zanzibaris can opt to use the produce locally in the manufacture of highly marketable medicines.

Mr Aboud believes that Zanzibar, as an island, is best placed to capitalize in service economy, trade and tourism: “Currently, few indigenous Zanzibaris participate in the local tourism industry and its success is having minimal impact to the locals.

“Zanzibar is very rich in culture that can also complement other economic activities. Local people can sell traditional music in tourist hotels at commercial rates.”

Source:dailynews