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Economic Aspects | Natural Resource Aspects | Institutional Aspects | Social Aspects |Tanzania

ECONOMIC ASPECTS OF SUSTAINABLE DEVELOPMENT IN THE UNITED REPUBLIC OF TANZANIA

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INTERNATIONAL COOPERATION

No information is available.

This information was provided by the Government of the United Republic of Tanzania to the fifth session of the United Nations Commission on Sustainable Development. Last Update: 1 April 1997.

Click here to access UNCTAD's "Country Background" on United Republic of Tanzania, including a basic statistical profile and summary text

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TRADE

Decision-Making

Strategies, policies and plans

Since 1985, the Government of Tanzania has implemented a number of policy reforms. The main objectives of the reforms have been and continues to be the following:

These reforms are being implemented together with equally significant political and social reforms. The following measures have been instituted:

Current efforts focus on public sector reforms with the objective of increasing government revenue through tax reforms and improved management of revenue collection, and reduction of the size of the civil service. Decentralizing Government activities is being implemented with the aim of transferring authority and functions to lower levels of administration (districts), which are closer to the people and, therefore, will be more effective and efficient in the management of sustainable development activities.

Status

The Gross Domestic Product (GDP) registered a growth rate of 3.9% in 1995, compared to 3.0% in 1994. Agriculture continues to contribute the largest share of about 55%, with a growth rate of about 7%, compared to 2% in 1994. The major export cash crops are cotton and coffee. The manufacturing industry accounts for about 17% of the foreign exchange earnings, while the mining industry accounts for only 5%.

The foreign trade sector, and consequently the trade account deficit, have recently shown some significant improvements. This has been possible through the implementation of macro-economic and budgetary measures, including reductions in tax remissions (in particular, Investment Promotion Centre (IPC) exemptions have been modified and limited to capital goods only); establishment of the Tanzania Revenue Authority, which is now responsible for revenue collection and tax administration; and establishment of the "Inputs Revolving Fund" to encourage agricultural production. The budgetary measures are also aimed at realizing the following broad policy objectives: achievement of a real GDP growth of 5%; generation of recurrent budget savings; reduction of the rate of inflation to below 10%; and reduction of Government indebtedness to the banking system.

Tanzania is conscious of the possible widening of the income gap as the economy recovers and grows. This and other related issues are being addressed through consideration of the social dimensions of the structural adjustment programmes.

This information was provided by the Government of the United Republic of Tanzania to the fifth session of the United Nations Commission on Sustainable Development. Last Update: 1 April 1997.

Click here to access UNCTAD's "Country Background" on United Republic of Tanzania, including a basic statistical profile and summary text

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CHANGING CONSUMPTION PATTERNS

Decision-Making

Strategies, policies and plans

In the energy-sector in Tanzania, a number of actions and programmes relevant to Agenda 21 have been initiated including the development of a National Energy Policy. The main objective of the policy is to establish an efficient energy production, procurement, transportation, distribution, and end-use system in an environmentally sound manner. This is to be accomplished through: exploitation of the abundant hydro-electric resources; development and utilization of natural gas resources; development and utilization of coal resources; increased petroleum exploration activities; arresting wood fuel depletion by developing more appropriate land management practices and more efficient woodfuel use technologies; development and utilization of forest and agricultural residue for power and cooking energy production; minimization of energy price fluctuations; development of human resources for development of energy technologies; and ensuring the continuity and security of energy supplies. The strategies for implementing the policy include: more efficient use of energy in the transport and industry sectors; rehabilitation of the electric power generation, transmission, and distribution infrastructure; rehabilitation and rationalization of petroleum refining, storage, and distribution infrastructure; promotion of alternative energy sources; development and dissemination of efficient woodfuel conversion and utilization technologies; and development and dissemination of simple and affordable kerosene stoves for rural and urban households.

In the power sub-sector, a number of technological options have been proposed for implementation. These include: increasing the efficiency of the presently installed equipment and retrofitting the thermal power plants to improve their combustion efficiencies; retiring the less efficient plants in favour of more efficient ones and institution of demand side management; institution of fuel switching, for example, changing from industrial diesel oil to natural gas where feasible; and developing renewable energy sources, such as hydro, wind, biomass, and solar energy.

Main Programmes

Taka is a Swahili word for waste and Takagas is therefore gas from waste. The goal of the Takagas project is to reduce emissions of greenhouse gases (GHG) in Tanzania by substituting bioenergy (methane gas and electricity), produced from anaerobic digestion of industrial and municipal waste in the Dar es Salaam area, for fossil fuels. Additional greenhouse gas reduction will be achieved by lowering the uncontrolled release of methane from improperly disposed organic waste. This will produce organic fertilizer. The plant will have the capacity to treat about 57 tonnes of organic waste per day, or about 3% of the daily waste generated in Dar es Salaam. The project combines methane emission reduction for GHG mitigation, with production of electricity, fuel for transport, and fertilizer. The installed capacity of the biogas plant will be 1 MW. The project is being funded by the Global Environmental Facility (GEF) and the Danish International Development Agency (DANIDA). This project is a collaborative effort of the Ministry of Energy and Minerals, the Dar es Salaam City Council, and the University of Dar es Salaam.

Technology

A survey of 20 selected industries to investigate the relationship between production and electricity costs, and sensitivity of production costs to changes in electricity tariff has been implemented by the Tanzania Industrial Research Organization (TIRDO). Walk-through audits, semi-detailed audits, and full energy audits for 41 industries have also been implemented by TIRDO. These activities have been sponsored by the United Nations Industrial Development Organization (UNIDO), the Tanzania Investment Bank (TIB), and the World Bank.

This information was provided by the Government of the United Republic of Tanzania to the fifth session of the United Nations Commission on Sustainable Development. Last Update: 1 April 1997.

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FINANCING

No information is available.

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TECHNOLOGY

Transfer of Environmentally-Sound Technology

Decision-Making

Main Programmes

The Cleaner Production Centre of Tanzania (CPCT), established in October 1995, is part of the world-wide United Nations Environment Programme (UNEP)/United Nations Industrial Development Organization (UNIDO) National Cleaner Production Centres (NCPCs) project. UNIDO and UNEP have joined forces to help promote cleaner production in developing countries where the economy is in transition over a period of five years.

The main objective of the CPCT is to facilitate the transfer of technical information, know-how, and cleaner technology from developed and developing countries to industrial enterprises and environmental management agencies in Tanzania, in order to incorporate cleaner production techniques and technologies in industrial pollution reduction programmes. CPCT is a semi-autonomous body within the Tanzania Industry Research and Development Organization (TIRDO) and is managed by experienced national professionals. The Centre, under the Director, is governed by an Advisory Board comprising of members from the Government, industry, academia, R&D institutions, NGOs, and TIRDO. The Advisory Board guides the Centre in the preparation of its strategic and annual work plans, oversees the programme accomplishments and financial expenditures, gives guidance in policy, and provides advisory dialogue with the Government and industry.

CPCT serves a coordinating and catalytic role for cleaner production in the country through four major activities:

  1. collection and dissemination of information on cleaner production to its stakeholders which include industry, government agencies, NGOs, R&D institutions, and academia;
  2. supporting the demonstration of cleaner production techniques and technologies in industry;
  3. training industry personnel and government officials on this new area of environmental management; and
  4. advising policy makers on the promotion of cleaner production.

Status

The agro-industries, which include the sugar, sisal, vegetable oil/fat refineries, dairies, breweries, cotton ginneries, distilleries, coffee processing factories, and tanneries, use technologies which can cause environmental problems in the form of pollution. Heavy-industries include: Aluminium Africa (ALAF); the Southern Paper Mills (SPM); the Tanzanian and Italian Petroleum Refinery Company (TIPER); and the three cement factories (Dar es Salaam, Tanga, and Mbeya). Except for SPM, all the other industries are located in urban areas. Their environmental effects, therefore, are bound to be even more apparent.

The underlying causes of industrial pollution in Tanzania result from the use of inappropriate and harmful technologies; the lack of awareness on cleaner production technologies; the lack of investment capability in acquiring and diffusing newer and cleaner technologies; the lack of capability to introduce minor changes to the existing technologies; and the lack of a maintenance culture.

Challenges

The greatest challenge facing all nations is still one of achieving sustainable development resulting in improvements to welfare. In this regard, technology plays a very crucial role. In Tanzania almost all modern technology has to be imported. In the process, possibilities exist for importing environmentally 'unfriendly' technologies. Industry is the sector which can be adversely affected because it depends on and utilizes imported technology.

This information was provided by the Government of the United Republic of Tanzania to the fifth session of the United Nations Commission on Sustainable Development. Last Update: 1 April 1997.

Biotechnology

No information is available.

Click here to link to the Biosafety Information Network and Advisory Service (BINAS), a service of the United Nations Industrial Development Organization (UNIDO), which monitors global developments in regulatory issues in biotechnology.
Click here to go to the Web Site of UNEP's International Register on Biosafety.
Click here for the International Centre for Genetic Engineering and Biotechnology Biosafety WebPages

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INDUSTRY

Decision-Making

Strategies, policies and plans

In the industry-sector, a number of sustainable development initiatives have been initiated in Tanzania. These include, for example, the development of sustainable industrial development policy; reducing pollutants by adding effluent treatment and scrubbing units to existing processes in the chemical industry; and establishing a Cleaner Production Centre of Tanzania (CPCT).

In 1996, the Government of Tanzania launched the Sustainable Industrial Development Policy (SIDP) (1996-2020) with the main mission to contribute towards the achievement of the overall national long-term development goals as enshrined in the overall national vision, and to enhance sustainable development of the industrial sector. The main objectives of the policy are: human development; creation of employment opportunities; sustainable economic growth; environmental sustainability; and equitable development. The SIDP has underscored the role science and technology, and Research and Development (R&D) have played in the attainment of desired goals.

The development of the National Energy Policy, with its main objective to establish an efficient energy production, procurement, transportation, distribution, and end-use system in an environmentally sound manner, will effect industry. The strategies for implementing the policy include more efficient use of energy in the transport and industry sectors.

Main Programmes

The Cleaner Production Centre of Tanzania (CPCT), established in October 1995, is part of the world-wide United Nations Environment Programme (UNEP)/United Nations Industrial Development Organization (UNIDO) National Cleaner Production Centres (NCPCs) project. UNIDO and UNEP have joined forces to help promote cleaner production in developing countries where the economy is in transition over a period of five years.

The main objective of the CPCT is to facilitate the transfer of technical information, know-how, and cleaner technology from developed and developing countries to industrial enterprises and environmental management agencies in Tanzania, in order to incorporate cleaner production techniques and technologies in industrial pollution reduction programmes. CPCT is a semi-autonomous body within the Tanzania Industry Research and Development Organization (TIRDO) and is managed by experienced national professionals. The Centre, under the Director, is governed by an Advisory Board comprising of members from the Government, industry, academia, R&D institutions, NGOs, and TIRDO. The Advisory Board guides the Centre in the preparation of its strategic and annual work plans, oversees the programme accomplishments and financial expenditures, gives guidance in policy, and provides advisory dialogue with the Government and industry.

CPCT serves a coordinating and catalytic role for cleaner production in the country through four major activities:

  1. collection and dissemination of information on cleaner production to its stakeholders which include industry, government agencies, NGOs, R&D institutions, and academia;
  2. supporting the demonstration of cleaner production techniques and technologies in industry;
  3. training industry personnel and government officials on this new area of environmental management; and
  4. advising policy makers on the promotion of cleaner production.

Taka is a Swahili word for waste and Takagas is therefore gas from waste. The goal of the Takagas project is to reduce emissions of greenhouse gases (GHG) in Tanzania by substituting bioenergy (methane gas and electricity), produced from anaerobic digestion of industrial and municipal waste in the Dar es Salaam area, for fossil fuels. Additional greenhouse gas reduction will be achieved by lowering the uncontrolled release of methane from improperly disposed organic waste. This will produce organic fertilizer. The plant will have the capacity to treat about 57 tonnes of organic waste per day, or about 3% of the daily waste generated in Dar es Salaam. The project combines methane emission reduction for GHG mitigation, with production of electricity, fuel for transport and fertilizer. The installed capacity of the biogas plant will be 1 MW. The project is being funded by the Global Environmental Facility (GEF) and the Danish International Development Agency (DANIDA). This project is a collaborative effort of the Ministry of Energy and Minerals, the Dar es Salaam City Council, and the University of Dar es Salaam.

Status

The chemical industry in Tanzania has started to identify and reduce pollutants by adding effluent treatment and scrubbing units to existing processes in recognition of the dangers of releasing pollutants into the atmosphere. A few operators have succeeded in optimizing operations in order to reduce fugitive emissions and waste generations. The introduction of membrane separation to replace mercury-based techniques in the calor-alkali industry represents one example. Some firms have been able to substitute dangerous organic chemicals and trichloroethylene with less hazardous alternatives.

The agro-industries, which include the sugar, sisal, vegetable oil/fat refineries, dairies, breweries, cotton ginneries, distilleries, coffee processing factories, and tanneries, use technologies which can cause environmental problems in the form of pollution. The major export cash crops are cotton and coffee. The manufacturing industry accounts for about 17% of the foreign exchange earnings, while the mining industry accounts for only 5%.

Heavy-industries include: Aluminium Africa (ALAF); the Southern Paper Mills (SPM); the Tanzanian and Italian Petroleum Refinery Company (TIPER); and the three cement factories (Dar es Salaam, Tanga, and Mbeya). Except for SPM, all the other industries are located in urban areas. Their environmental effects, therefore, are bound to be even more apparent.

Technology

There is a very weak link between the few local R&D institutions and the productive sector in the country. Industrialists do not appreciate the role of R&D activities, and much R&D work is perceived as not addressing the actual needs of the productive sector. To address this situation, the following measures will be undertaken: a) strengthening existing scientific and technological institutions by providing them with adequate finances, expertise, infrastructure facilities, and schemes for retention of technical experts; b) rationalization and synchronization of R&D institutions; and c) articulation of areas for collaboration between manufacturers and the local R&D network.

The substitution of deleterious technologies by environmentally friendly technologies involves huge capital investments. Therefore, most operators in industry in Tanzania have opted for add-on technologies and optimizing existing processes.

A survey of 20 selected industries to investigate the relationship between production and electricity costs, and sensitivity of production costs to changes in electricity tariff has been implemented by the Tanzania Industrial Research Organization (TIRDO). Walk-through audits, semi-detailed audits, and full energy audits for 41 industries have also been implemented by TIRDO. These activities have been sponsored by the United Nations Industrial Development Organization (UNIDO), the Tanzania Investment Bank (TIB), and the World Bank.

This information was provided by the Government of the United Republic of Tanzania to the fifth session of the United Nations Commission on Sustainable Development. Last Update: 1 April 1997.

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TRANSPORT

Decision-Making

Strategies, policies and plans

The development of the National Energy Policy, with its main objective to establish an efficient energy production, procurement, transportation, distribution, and end-use system in an environmentally sound manner, will effect the transportation industry. The strategies for implementing the policy include more efficient use of energy in the transport and industry sectors.

This information was provided by the Government of the United Republic of Tanzania to the fifth session of the United Nations Commission on Sustainable Development. Last Update: 1 April 1997.

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SUSTAINABLE TOURISM

Technology

A study to develop a strategy for the conservation of coastal biological diversity of mainland Tanzania has been completed by the Center for Environmental Engineering and Science Technologies (CEEST) under the auspices of the Tanzania Division of Environment, and funded by the World Bank. The study has identified some implications for specific biodiversity objectives in relation to sectoral programmes including tourism interests in coastal Tanzania.

This information was provided by the Government of the United Republic of Tanzania to the fifth session of the United Nations Commission on Sustainable Development. Last Update: 1 April 1997.

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