Despite Tanzania's impressive 7% GDP growth over the past decade, poverty remains entrenched, with about 12 million Tanzanians living below the party. Photo: Courtesy
By Adonis Byemelwa
Amid Tanzania's vibrant economic landscape, a glaring disparity emerges from Simiyu, the nation’s poorest region in 2022. With a per capita income of just Sh 1,437,357—far below the national average of Sh 2.8 million—Simiyu's economic struggles reflect deep hardship. This stark revelation comes from a 2022 study by Nukta Tanzania, a digital news startup leading the way in data journalism.
This figure doesn’t merely represent a number; it underlines the dire conditions faced by its residents and encapsulates the broader economic challenges that ripple across Tanzania's diverse regions.
As the sun rises over the fields and villages of Simiyu, it casts a spotlight on a region wrestling with poverty, illustrating a vivid contrast to the nation’s overall economic narrative. This disparity is not just a statistic but a reflection of the broader socio-economic imbalances that continue to shape the country’s future.
Rukwa follows closely, with a per capita income of Sh 2,329,098, while Songwe is slightly behind at Sh 2,295,728. Katavi and Kigoma also rank low, reporting incomes of Sh 1,992,340 and Sh 1,913,556, respectively.
Tabora’s average income stands at Sh 1,852,892. Although Dodoma and Pwani fare slightly better, their figures of Sh 1,718,522 and Sh 1,693,787, respectively, remain well below the national threshold.
Singida and Kagera are similarly affected, with incomes of Sh 1,589,073 and Sh 1,455,864, further illustrating the extent of regional economic disparities in Tanzania. Despite Kagera's low ranking, the region is rich in untapped potential that could drive economic growth.
Located near the borders of Uganda, Rwanda, and Burundi, Kagera is ideally positioned to become a hub for cross-border trade. The region’s fertile soil and favorable climate are well-suited for cultivating high-value crops such as coffee, tea, and bananas.
Investing in modern agricultural practices and establishing agro-processing industries could significantly increase Kagera’s economic output. Furthermore, Kagera’s proximity to Lake Victoria offers substantial opportunities in the fishing and tourism industries, which, if adequately developed, could provide a significant boost to the region’s economy.
Improved infrastructure, such as better roads and reliable electricity, is crucial to unlocking these opportunities and enabling Kagera to realize its full economic potential.
The disparity between Tanzania's regions is not merely a matter of geography or resources. As opposition leader Freeman Mbowe pointed out in a recent address, the root causes of poverty in regions like Kagera are deeply intertwined with historical and political factors. Mbowe raised the question, "We must question whether the poverty in Kagera is natural or man-made." His concerns were echoed by Dr. Bullet Straton Ruhinda from the Open University of Tanzania, who emphasized the importance of understanding the root causes of poverty to devise effective solutions.
Historically, Kagera was among Tanzania's most developed regions from the 1950s to the 1970s, largely due to the success of its cooperative society, BNCU. The cooperative funded education, invested in local infrastructure, and planned significant developments, including a university in Bukoba.
However, the nationalization of BNCU's assets without compensation marked the beginning of economic decline in Kagera. The Kagera War, followed by the HIV/AIDS epidemic and the Economic Sabotage War in the 1980s, further crippled the region, leading to significant capital flight and economic stagnation.
Dr. Ruhinda emphasized that criticizing Kagera's current economic state overlooks these historical challenges. He defended the region's business practices, noting that Bukoba's residents efficiently manage their resources and that the timing of store openings reflects the local business dynamics, catering primarily to rural traders who arrive later in the day.
Dr. Ruhinda argued that blaming Kagera's intellectuals for the region's poverty is misguided. He emphasized that the government must take responsibility by providing necessary infrastructure like electricity, roads, and water to stimulate economic activities.
The failure to build essential facilities like bus stands and markets in Kagera, which have been constructed in other regions, is not the fault of Kagera's people but of the government.
Renowned economics professor Justinian Rweyemamu, a Harvard graduate who passed away in his 40s, once remarked that regional disparities in Tanzania stem from historical neglect and uneven development policies.
His insights are echoed by Prof. Ibrahim Lipumba, who noted that "the economic policies implemented in the post-independence era favored certain regions over others, creating a legacy of inequality that persists to this day."
In a sweeping proposal aimed at transforming Tanzania's governance structure, advocates of federalism, including Freeman Mbowe, are pushing for a system where the country is divided into large regions, each governed by an elected leader. This leader would serve as the head of the region and represent it in the national parliament, merging regional leadership with national representation.
Under this system, the roles of regional and district commissioners would be abolished, leaving only elected officials such as municipal directors and councilors to govern at the local level. This shift is expected to streamline governance and eliminate the bureaucracy associated with appointed positions, thereby improving efficiency.
The proposal outlines a federal system where states contribute a portion of their revenue to the central government, which then redistributes funds to less economically productive states to promote balanced development.
The President would retain national defense and key functions, while a streamlined cabinet would oversee essential policies like universal healthcare, with states managing local governance autonomously. This federal model aims to reduce bureaucracy, enhance revenue collection through the Tanzania Revenue Authority (TRA), and drive economic growth by fostering state competition.
Despite Tanzania's impressive 7% GDP growth over the past decade, poverty remains entrenched, with about 12 million Tanzanians living below the poverty line and over 70% subsisting on less than Sh 4,000 daily. Addressing this persistent inequality and ensuring that economic growth benefits all remains a significant challenge.
This mixed result requires a deeper understanding of Tanzanian economic growth patterns. Over the past decade, growth was mainly driven by a small number of fast-growing and relatively capital-intensive sectors, mostly concentrated in Dar es Salaam. This has induced an uneven increase in welfare at the regional level and uneven spatial progress against poverty.
Inequality in the distribution of welfare, whether income or consumption, is viewed as a combination of inequality of effort and inequality of opportunity stemming from circumstances beyond an individual’s control, such as gender, family background, and place of birth.
Such disparities in opportunity are widely considered unfair and deserve attention from policymakers as they contribute to perpetuating the lack of capabilities for large parts of society. They lead to wasted productive potential. However, the persistence of inequality, whether due to effort or circumstances, can yield negative perceptions about the development and benefits of reforms.
Despite the reduction in poverty and the country's wealth and progress, many citizens in the Simiyu Region remain poor. These are some of the houses in Bariadi District. Photo: Courtesy
Despite increasing disparities in returns, spatial inequality remains due to large differences in households’ endowments in terms of family size and composition, education, assets, and access to services and employment opportunities.
Around one-fourth of total inequality in consumption in Tanzania is due to disparities in individuals' circumstances such as age, gender, parents’ education, orphan status, and region of birth. About 20 percent is explained by parental education only.
Policy actions should focus on ensuring that Tanzanian growth translates into substantial poverty reduction and job creation for the large number of unemployed youths entering the labor market every year. Priority areas include promoting human capital development, expanding access to energy and credit, and improving public infrastructure and services.
Former UN-Habitat executive director Prof. Tibaijuka stressed that reducing inequality goes beyond economic measures. "It's about creating an environment where everyone has an equal chance to succeed, regardless of their background or where they were born," she emphasized. This aligns with Vision 2025's broader goal of fostering an inclusive economy that benefits all Tanzanians.
She further elaborated on this point, stating that "regional disparities in income and development are not just economic issues but are deeply tied to social and political factors. Addressing these disparities requires a holistic approach that includes investments in education, healthcare, and infrastructure."
