THE STATUS OF IMPLEMENTATION OF MKUZA II 2012 13

THE STATUS OF IMPLEMENTATION OF MKUZA II 2012/13 November 25, 2013

Outline of the Presentation • Introduction • Progress made in each cluster • Challenges faced in each cluster • Emerging issues

INTRODUCTION • The presentation is based on the report of MKUZA Annual Implementation Report (MKUZA AIR ) 2012/13. • The presentation provides information on achievements, challenges, and lessons learnt in the course of MKUZA implementation. • The analysis also highlights how MKUZA implementation has impacted on economic growth and reduction of income and nonincome poverty in Zanzibar.

CLUSTER I : GROWTH AND REDUCTION OF INCOME POVERTY Progress made: – Growth in real GDP rose from 6. 7% in 2011 to 7. 0% in 2012. – The domestic revenue collection in 2012/13 was 19. 7 percent of GDP against the baseline of 15 percent in 2008/09. – Inflation rate has continued to decline from 14. 7 percent recorded in 2011 to 9. 4 percent in 2012.

CLUSTER 1 CONTINUED – construction and upgrading of 26. 35 km of roads up to the tarmac level (Mfenesini - Bumbwini (13. 6 km), Amani – Dunga (km 12. 75). – Construction of four bridges along the Mahonda – Donge – Mkokotoni. – In ICT: completion of lying down the ICT submarine cable. – the runway at AA Karume International Airport extended from 2. 6 km to 3. 22 km. Construction is ongoing whereby total of

• Progress made:

CLUSTER 1 CONTINUED • Electricity: The Project of laying down the new electric submarine cable with the capacity of 100 MW was completed in April 2013. • In Aid effectiveness: There was increased use of project/program financing.

Gross Domestic Product 2008 - 2012, (Constant Price Growth Rates) (%) 2009 2010 2011 2012 p GDP at market prices 6. 7 6. 4 6. 7 7. 0 Agriculture, forestry & fishing 4. 4 3. 1 2. 7 1. 3 Industry 3. 4 1. 9 5. 8 9. 2 Services 8. 7 9. 3 8. 6 8. 7

Selected indicators of tourism sector in Zanzibar

• Progress made:

• Progress made:

Challenges under cluster I Cross-sectoral Challenges • limited access to credit due to unavailability and or high unaffordable interest rates especially to MSMEs; • land ownership and security of tenure hinder growth of the private sector, especially in tourism sector; and weak culture of industrial and entrepreneurship of SMEs.

Challenges ……. . • unreliable supply of quality products/produce, especially to feed the tourism sector; weak markets and marketing promotion. Sector-specific challenges • Slow growth in the number of tourists, mainly to economic crises in source countries and security concerns in Somali and Congo, which affected many of the East African destinations .

Challenges……… • The number of tourists inflow to Zanzibar declined marginally (by 0. 2 percent) to 169, 223 tourists in 2012 compared to 175, 067 tourists who came in 2011.

Challenges……. • Climate change is one of the most challenges affecting agriculture sector mainly in rice production due to unpredictable weather condition. Also long dry spell affect the production of other agricultural crops. • The fishing industry is facing the challenge of climate change such as global warming which is causing damage to corals and lead to affect fish, cutting of mangroves located near the beaches where it leads to a decrease in fish production

CLUSTER II: SOCIAL SERVICES AND WELL-BEING • Early Childhood Care and Development • Increased net enrolment rate for pre-school from 20. 1% in 2010 to 50% by 2015 Progress made: Education issues: In 2012/13, the number of enrolled pupils was 31, 583 in which 15, 451 were boys and 16, 132 were girls. However, the Net Enrolment in 2012/13 decreased marginally to 34. 4% compared to 37. 1 percent in 2011/12.

• Primary Education: Increased net- enrolment rate from 81. 5% in 2010 to 95% by 2015. • The gross enrolment rate decline to 112. 5 percent in 2012/13 from 118. 5 percent registered in 2011/12. The decline partly reflect the effort to made to reduced the number of primary school-age children who were initially out of school

• Progress made:

Progress made: • In 2012/13, the Gross Enrolment Rate of secondary (form I- 4) reached 67. 0 percent, a marginal decline compared to 67. 2 percent in 2011/12.

• Progress made:

Health issues: – The Demographic and Health Survey (2010) reports a decline in IMR to in 51/1000 children in 2010 compared to 54/1000 live births observed in 2008. Likewise, under-5 mortality rate has declined to 73 in 2010 from 79 per 1000 live births in 2008. – The overall immunization coverage (Penta 3) dropped from 84 percent in 2011 to 81 percent in 2012 however still approach the national target (80 percent).

• Progress made: Maternal health

SOCIAL SERVICES AND WELL-BEING Progress made: Water Supply: Significant progress has been recorded in that access to clean and safe water increased from 60 percent in 2010 to 65% in 2011/2012 in rural areas and from 80 in 2010 to 85% in 2011/2012.

Challenges under the implementation of Cluster II • Education : Shortage of teachers and qualified professionals at secondary and higher institutions, as well as shortage of laboratories and equipment with qualified Sciences and Mathematics Teachers at all levels. • Rapid increase in water demand due to the growth of economy, increasing of population and other social and economic factors in Urban and rural areas

Challenges …………… • Rapid growth of population and unplanned areas in urban centers. • Shortage of qualified and competent professionals in Arts, sports, Kiswahili and historical sites.

CLUSTER III: GOOD GOVERNANCE AND NATIONAL UNITY Progress made: Towards the establishment of a comprehensive planning and monitoring system at both national and district level, the following were carried out; – Training of statistical officers on LGAs’ recording keeping – Initiation of the process of establishment of a data base of business and service provider at district council level. – Establishment of a data base on the sources of revenue at local authorities.

Cluster III progress continued Towards increasing participation of women in policy and decision making organs: – in 2012/13 awareness creation among 70 qualified women on the need to contest for different political positions and decision organs. Furthermore, the government supported training of women in political positions and decision makers in order to further strengthen their capacity. – establishment of 11 special committees at Pemba in fighting against gender discrimination.

Cluster III continued Implementation of legal sector reform programme – in 2012/13 the government prepared 5 regulations of Labor Act no. 11 of 2005. – Regulations of Intellectual Property Act have been prepared and will be submitted to World Intellectual Property Organization and Africa Regional Intellectual Property Organization (ARIPO) for their consideration. –

Legal sector reform continued • Capacity Needs Assessment of Legal Sector Actors in Zanzibar and Assessment of Justice Needs and Obstacles in Zanzibar conducted.

Cluster III continued Enhancement of human rights awareness and observance – Provision of public education on human rights issues through mass media and at the shehia level – Zanzibar prepared the Convention for all forms of Elimination of Discrimination Against Women (CEDAW) implementation report 2012/13 – During 2012/13, the government established the Zanzibar Bureau Standard to spearhead general issues in consumer protection

The implementation of key reforms • The Zanzibar Anti-Corruption and Economic Crime Authority has been established and the Director General has been appointed; Local government authorities regulations has been revised; and the government already finalized preparing the Local government policy in 2012/2013.

Challenges under the Implementation of Cluster III • Despite the ongoing legal sector reform in Zanzibar, the pace of developing legal sector reform strategy is not satisfactory due to lack of commitment especially in the part of consultants. • Infrastructures of Judiciary are poor causing delay in justice.

Challenges ……… • Low awareness of MKUZA II among non-state actors at local level hence it led to inadequate participation in its implementation.

RESOURCE MOBILIZATION FOR FINANCING OF MKUZA Progress made: • Program Based Budgeting (PBB) -to strengthen results- based budgetary system through program and emphasize the use of resources so as to bring efficiency in the budget implementation.

Domestic Resources Mobilization

FINANCING OF MKUZA • Progress made: •

Emerging Issues & Way forward Growth Sectors: The slow growth in the number of tourists in the recent years, was mainly caused by economic crises in source countries and security concerns in Somali and Congo, which affected many of the East African destinations. The question is how Zanzibar can capitalize in the recent trends in regional security by offering safe and secure destinations for both leisure and MICE (meeting, incentive, convention and entertainment) tourists.

Growth sector ……. • The pace of infrastructure development is noted to be one of the limiting factors to the expansions of other sectors, particularly tourism sector. • Land use planning and enforcement will be critical issue as the climate change phenomenon continues to affect Zanzibar. Today, high encroachment of saline water, agriculture land, and forest areas has already been noted to hinder the development of production of this in agriculture sector.

Growth sector……. . • Fishery sector development has potential to contributing to the transformation of Zanzibar’s economy. The revitalization of the sector is required to complement the shrinkage in land-based economic sectors.

Emerging Issues & Way forward • Social Sectors: The strengthening efficiency in service delivery (cost-effectively) needs substantial modernization, particularly the use of ICT. • Human resources in key social service sectors, such as education and health, social protection, and cultural development is key for sustaining gains recorded this far.

Emerging issues continued • Governance issues: The issue of security and national unity, as a bedrock for economic growth and social prosperity will require more efforts given the trends observed in the east African region. • Financing issues: Domestic resource mobilization requires further strengthening in order to increase revenue efforts (domestic revenue/GDP ratio) and reduce the financing gap, as well as reduce external dependency, at least in relative terms.

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