BACKGROUND Development Partners Group DPG

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BACKGROUND Development Partners Group DPG Powered By Docstoc




            FIRST DRAFT

              JUNE 2006
                                                                    Table of Contents
CHAPTER I: BACKGROUND ........................................................................................................................................ 3
  1.1     Introduction ................................................................................................................................................. 3
  1.2     Geo-political Description ............................................................................................................................. 3
  1.3     The Zanzibar Poverty Reduction Plan – 2002 – 2005 .................................................................................. 4
  1.4.    The ZPRP Review and Justification .......................................................................................................... 12
CHAPTER II: ZPRP REVIEW PROCESS..................................................................................................................... 13
  2.1     Introduction ............................................................................................................................................... 13
  2.2     Challenges of the Review Process ............................................................................................................. 15
  2.3     Consolidation of the Findings .................................................................................................................... 16
CHAPTER III: GROWTH AND POVERTY STATUS ................................................................................................. 18
  3.1     Introduction ............................................................................................................................................... 18
  3.2     Growth and Income Poverty ...................................................................................................................... 18
  3.3.    Social Well-being ...................................................................................................................................... 26
  3.4.    Good Governance ...................................................................................................................................... 31
  3.5.    Cross-cutting Themes ................................................................................................................................ 33
CHAPTER IV: FRAMEWORK OF THE ZSGRP ......................................................................................................... 37
  4.1     Introduction ............................................................................................................................................... 37
  4.2     Principles of the Zanzibar Strategy for Growth and Reduction of Poverty ................................................ 37
  4.3     Major Clusters of ZSGRP .......................................................................................................................... 43
  4.4     Growth and Reduction of Income Poverty ................................................................................................. 45
  4.5     Social Services and Social Well-being ...................................................................................................... 45
  4.6     Good Governance and National Unity ....................................................................................................... 46
  4.7     Core Reforms ............................................................................................................................................. 46
  4.8     Structure of ZSGRP and Key Definitions .................................................................................................. 47
CHAPTER V: THE STRATEGY ................................................................................................................................... 48
  5.1     Introduction ............................................................................................................................................... 48
  5.2     Cluster 1: Growth and Reduction of Income Poverty ................................................................................ 48
  5.3     Cluster 2: Social Services and Well-being ................................................................................................. 53
  5.4     Cluster 3: Good Governance and National Unity ...................................................................................... 63
CHAPTER VI: IMPLEMENTATION ARRANGEMENT ............................................................................................ 71
  6.1     Introduction ............................................................................................................................................... 71
  6.2     Cluster and Outcome Approach ................................................................................................................. 71
  6.3     Roles and Responsibilities of Key Actors .................................................................................................. 72
  6.4     Harmonized and Aligned Key National Processes: Policy and Planning, Public Expenditure Review and
          Budgeting, Monitoring and Evaluation ...................................................................................................... 74
  6.5     Principles of the Joint Assistance Strategy ................................................................................................ 74
  6.6.    Review of Ongoing Core Reforms and Envisaged New Reforms ............................................................. 75
  6.7.    Structure..................................................................................................................................................... 75
CHAPTER VII: COORDINATION, MONITORING AND EVALUATION ................................................................ 77
  7.1     Introduction ............................................................................................................................................... 77
  7.2     The Coordination ....................................................................................................................................... 77
  7.3     Monitoring and Evaluation of the ZSGRP ................................................................................................. 77
  7.4.    Monitoring at Various Levels .................................................................................................................... 78
  7.5     Sources of Information .............................................................................................................................. 78
  7.6     Key Outputs of the ZSGRP Monitoring System ........................................................................................ 79
  7.7     Challenges ................................................................................................................................................. 79
CHAPTER VIII: RESOURCE MOBILIZATION FOR FINANCING OF ZSGRP ....................................................... 81
  8.1     Introduction ............................................................................................................................................... 81
  8.2     Review of ZPRP Financing Framework .................................................................................................... 81
  8.3.    Resources for ZSGRP ................................................................................................................................ 82
  8.4     Potential Risks to ZSGRP Financing Framework ...................................................................................... 84

                                CHAPTER I: BACKGROUND

1.1 Introduction

This document of the Zanzibar Strategy for Growth and Reduction of Poverty Strategy (ZSGRP)
has eight chapters. The background chapter (1) discusses geo-political facts about Zanzibar. It
presents the achievements and challenges during the implementation of the Zanzibar Poverty
Reduction Plan (ZPRP). It also presents justification of ZPRP review. The discussion on the
review of the ZPRP is divided into three areas, namely: macro-economic, provision of social
services and good governance. These three areas form the clusters of the ZSGRP.

1.2 Geo-political Description

1.2.1 Position and Area
Zanzibar consists of two main islands, Unguja and Pemba, and several other smaller ones some of
which are uninhabited. It is located in the Indian Ocean, about 30 kilometres off the East Coast
of Africa between latitudes 5 and 7 degrees south of the Equator. It has a total area of 2,654
square kilometres. Unguja being the largest has an area of 1,666 square kilometres while Pemba
has an area of 988 square kilometres.

1.2.2 Population
 According to the Population and Housing Census (2002) Zanzibar had a population of 981,754
with a growth rate of 3.1% and a population density of 370 people per square kilometre. Of the
total population 40% dwelled in the urban area and the rest, that is, 60% dwelled in rural areas.
The outburst of the population growth rate was highly attributed to high fertility rate of 5.3. The
projected population in 2005 was 1,072,000.

1.2.3 Administration
As part of the United Republic of Tanzania, Zanzibar is semi-autonomous. It has its own
Government, a legislative assembly known as the House of Representatives, the Executive,
headed by the President of Zanzibar and its own Judicial System. Zanzibar is divided into five
regions (three in Unguja and two in Pemba), 10 districts two in each region, 50 constituencies and
296 shehias.

1.3     The Zanzibar Poverty Reduction Plan – 2002 – 2005

Zanzibar launched its first comprehensive ZPRP in May 2002. It was a three-year Plan targeted
to end by 2005. The Plan focused on a selected number of priority sectors, and thematic issues,
namely: education, health, agriculture, infrastructure (rural roads), water, good governance and
combating HIV/AIDS. These were considered to have high direct impact on growth and
improvement of social welfare. ZPRP was the first short-term programme for implementing the
Vision 2020. The ZPRP was an operational plan with strategies to mobilise and utilize domestic
financial resources, both public and private, and a framework for attracting external resources to
support prioritised expenditure plans. It focused on reducing income poverty, improving human
capabilities, survival and social well-being and containing extreme vulnerability.

The ZPRP interventions aimed at generating higher economic growth and improved service
delivery. It targeted 5.0% of economic growth during the first year, 5.5% during the second year,
and 6.0% during its third year. Efforts were directed to selected sectors, including agriculture for
reducing income poverty; tourism and trade for higher growth; education, health and water for
improvements in human capacity, survival and well-being; and infrastructure for accessibility and
lower costs of production. Other areas of strategic interventions pursued were on promotion of
investment, strengthening of the financial sector, enhancing social stability and good governance.

To support implementation of the ZPRP, a number of diagnostic studies were undertaken. They
included the Public Expenditure Review (PER FY03), the Country Financial Accountability
Assessment (CFAA), Analysis of Zanzibar’s Economic Situation, Study on the Clove Industry,
and Study on Local Government Reform and Strategic Plan of Good Governance. The studies
identified strengths and weaknesses in financial accountability, public expenditure management
and procurement arrangements in the public sector. The diagnostic work also provided a common
point of reference for the Government and Development Partners (DP) in understanding the
current situation and hence in mapping plans for immediate and future actions. They also
identified benchmarks against which progress can be gauged, using both international and
national standards as well as drawing appropriate lessons from best practices. Thus, it is on the
basis of these diagnostic works that Economic and Financial Reforms, Institutional and Human
Resources Reforms and Good Governance Reforms were undertaken in order to set Zanzibar on a
better position in her pursuit for a total development, and succeed in eradicating absolute poverty
by 2020.      There had been policy initiatives and processes that called for or provided

opportunities for harmonisation and cross-learning from within Zanzibar, the United Republic of
Tanzania and the international initiatives.

1.3.1 ZPRP Achievements and Challenges Macroeconomic
Over the 1990s, constraints to long-term growth were identified as low level of productivity, low
rate of investment and declining levels of external assistance. Economic performance has been
variable even during the implementation of the ZPRP. Growth of the economy, in real terms has
been sustained at positive rates, recording 8.6% in 2002, 5.9% in 2003 and 6.4% in 2004. Per
capita nominal income increased from Tshs. 261,000 (equivalent to US $ 276) in 2002 to Tshs.
331,000 (equivalent to US $ 303) in 2004. Inflation rate on the other hand was contained at single
digit but above the target of 5%. The inflation rate recorded was 5.2% in 2002, 9.0% in 2003 and
8.1% in 2004 mainly attributed to low production of domestic food commodities and high prices
of imported food commodities.

There is a consensus among development actors that economy of a small island can achieve the
Millennium Development Goals (MDGs) and some regional and international agendas if it has
political commitment, good policies and increased resources. Zanzibar being an economy of a
small island is still facing several challenges. The key challenge during implementation of any
plan or strategy for economic development is the increase of population. It reduces the effect of
high growth of GDP on improving per capita income.

In agricultural sector, key challenges are lack of comprehensive framework for enhancing food
security, low promotion of paddy as staple food crop, land use conflicts, insufficient provision of
agricultural services for example, credit and grants, frequent outbreak of crop and zoonotic
diseases. Others challenges are insufficient technical know how on post harvest losses, insecure
tenure of agricultural land, over-dependence on rain-fed agriculture, inadequate budgetary
support, low land and labour productivity, inadequate rural micro-finance system, poor marketing
of agricultural produce, weak linkage with tourism sector, weak inter sectoral linkages for
addressing issues such as HIV/AIDS, drought, trade and infrastructure. .

The main challenges in manufacturing sector include: the underdeveloped industrial infrastructure
for attracting Foreign Direct Investments (FDI) and local investors, low industrial skills,
cumbersome licensing and investment approval procedures, low quality of products, low
knowledge of accessing market among the business community as well as limited credit facilities.

The challenges in tourism sector are: poor infrastructural services such as road networks, airports,
power, water, dominance of low class hotels, weak linkage between tourism and other related
sectors, low capacity of collecting revenue, underutilization of tourist attractions, low skills of
tourism management and dilapidating historical, heritage and tourist attractions. Other challenges
include the existence of multiple trade licensing agencies, application of non-tariff barriers on
Zanzibar’s exports, existence of multiple trade/exports examination points, poor information,
market research and market intelligence and absence of an export strategy.

In financial sector, commercial lending rates have generally been relatively high, ranging between
13 to 17% but negotiated lending rates have been lower ranging between 7.0% to 11.0%. On the
other hand, savings rates have been extremely low on average of 2.4% since 2002. The challenge
is to narrow the spread rate between lending and saving. Micro Finance Institutions (MFIs) have
been lending out at relatively higher interests rate compared to commercial bank. The average
lending rate has an average of above 30.0% . There is a need of lowering down the rates with a
view to encompassing more people in the scheme and attain multiplier effects of the funds for
loan, employment opportunities and income. Social Services
There has been considerable expansion of schools and hence increase in enrolment.                In
comparison to the targets set, of improving access and quality, there has been an increase in both
number of schools and enrolment rate at all levels. With regard to infrastructure, for example, the
number of schools in 2002 and 2005 were respectively 139 (of which 117 private) and 205 (of
which 180 private) for pre-primary; for primary, 195 (of which 27 private) and 245 (of which 38

Quality of education delivery has also improved. Some of the indicators that showed
improvements include improved pass levels at three levels: transition from Form II to Form III,
Form IV to Form V and A level graduates who qualify to join universities. Gender equity has

been achieved in enrolment at primary and secondary education level while inclusive education.
Three universities of which one is Government owned and have been established with the marked
increasing of female enrolment at higher institutions. HIV/AIDS topics have been included in
school curriculum. Development of new Education and Vocational Training Policy has identified
the importance of improving the quality of education as well as frequency of in-service training
and cater for out of school children and those who need these alternative skills.

Despite the achievements, the following challenges remain. There are inadequate secondary
schools, congestion in classrooms, shortage of science and mathematics teachers, laboratories and
lack of transport facilities for teachers, insufficient qualified teachers and high (parental)
contributions. Also, there are insufficient toilets, teachers’ houses and teaching facilities as well
as low attention given to people with disabilities. In addition, Zanzibar has not achieved a 100%
enrolment at all levels.     Currently, the enrolment for pre-school children is only 15.9%.
Enrolment in lower secondary education is high but it has not reached a 100% mark. Among
those not enrolled are children with disabilities and those from poor families. The disparities in
enrolment among districts are still wide.

The new education policy (2005), aims at addressing the weakness of education system with a
view of making it more responsive to current challenges. Among the essential element of
education reforms to be instituted is the restructuring of the current system of basic education. It
is supposed to be compulsory and universal.

The achievements in health were identified in reconstruction of six PHC units and rehabilitation
of fifty-two others as well as rehabilitation of ten-second line PHCs and construction of ten new
staff houses. Four PHCs were equipped with x-ray services. In public health services the
availability of essential drugs improved. Screening and surveillance services for some disease
conditions such as poliomyelitis, measles and neonatal tetanus were established. Two facilities
were established for delivery services in rural areas; a maternity block was constructed at Mnazi
Mmoja hospital and a maternity ward at Wete hospital was rehabilitated. Youth friendly services
were introduced in ten PHC units. RH strategy for five priority areas: maternal, child, adolescent,
men, elderly were established.

A Malaria Strategic Plan has been developed to guide the implementation of planned activities,
an effective anti malaria drug (use of artemisiniun compounds) was introduced and the use of
ITN’s promoted.      Health sectors HIV/AIDS strategy has been developed. Also, care and
treatment services were established as well as introduction of Prevention of Mother to Child
Transmission of HIV/AIDS (PMTCT and PMTCT plus). The number of diagnostic centers for
Tuberculosis and leprosy were increased from 11 to 40 and for DOT/MDT from 46 to 134.
Implementation of a leprosy elimination plan has begun and staff in eight functional integrated
NCDs clinics at all hospitals including cottage have been equipped and trained. Health Human
Resource (HRH) policy and five year HRH plan were completed. Incinerators were constructed.
Post Exposure Prophylaxis (PEP) interventions to health care workers and to sexually assault
people were introduced.

Despite achievements expressed, there are a number of challenges that have been identified in the
provision of quality health care related to poor financial and human resources, inadequacy of
infrastructural facilities, poor institutional arrangements and the ensuing undesirable outcomes.
The se include a shortage of qualified doctors, essential drugs and equipment as well as drug
abuse, poor health services and inadequate hospital facilities as well as poor attendance at birth
and lack of nutritional education for pregnant women, low knowledge on Reproductive Health
services and insufficient housing to medical personnel especially in rural areas. In addition, there
are inadequate facilities and limited capacity in the Office of Chief Government Chemist and for
the General Hospital, rendering it difficult to serve as a referral hospital; and there is inadequacy
of basic Reproductive and Child Health (RCH) equipment and supplies, especially for people
with disabilities. In terms of human resources, there is a shortage of qualified personnel at all
levels and geographical imbalance in the allocation of human resources, with the shortage being
more acute for qualified and skilled staff in HIV/AIDS diagnosis and care provision. Coupled
with the above are poor institutional arrangements, including lack of coordination strategy in
TB/HIV services, lack of data on Non-communicable Diseases (NCD), absence of policy on
environmental sanitation and low sanitation capacity, poor administration, and outdated system of
personal information.

Despite concerted efforts to combat HIV/AIDS pandemic, a number of challenges still need to be
addressed. These include, insufficient response in terms of action, inadequate mainstreaming of
HIV/AIDS at various levels, increased prostitution and its correlation to poverty, low level of
comprehensive knowledge on HIV/AIDS, high unemployment and increasing substance abuse

among young peoples, urban bias of HIV/AIDS activities and the difficulties in changing
behaviour despite high HIV/AIDS/ awareness. In light of all above, the most challenging issue is
to contain the prevalence rate at the present low level and reduce it.

Water and sanitation
Access to safe water and sanitation improved following implementation of 75 projects that
included the digging up of new wells and construction of water storage tanks, improved solid
waste management, construction of VIP toilets, rehabilitation of Stone Town sewage system.
Also, construction of 300 pit latrines in Jambiani has been completed.

With regard to water, the challenges included irregular supply caused by aged pumps, few water
sources, insufficient availability, and shortage of water in some urban and rural areas as well as
shortage of water experts. In urban areas especially the high price charged by water vendors. In
sanitation the main challenge was poor drainage system

Water supply and sanitation services are constrained by several factors that include an adequate
quantity and quality of water supply in both urban and rural areas, dilapidated water supply
infrastructure, limited human and financial resources to sustain water supply and maintenance
and low stakeholder participation, lack of facilities for collection and disposal of waste as well as
for recycling solid and liquid waste. Supply is constrained by high costs due to poor operational
technology; maintenance; high amount of wastage; water losses in production, transmission,
storage and distribution; and limited access to supply outlets both in rural and urban areas. As for
the institutional arrangements, there is lack of coordination of activities between water supply and
sanitation. The constraints on water related environment include salinity and intrusion risks in the
coastal areas, encroachment of water sources, depletion and degradation of ground water
reserves, poor management of drought and floods, and limited monitoring of groundwater.

Gender and Social Protection
Despite all efforts and affirmative actions to integrate gender in development there are still a
number of challenges including, perpetuation of social cultural practice, effects women
development, inadequate mainstreaming of gender issues in policies and programmes, existence
of gender based violence and insufficient support to vulnerable groups, which include women,
youth, children and people with disabilities.

There is insufficient attention and support includes inadequate paid pensions and difficulties in
getting them. The social security schemes are also challenged with limited coverage to only
public sector and lack of saving culture in the society. There are interventions that are in-adequate
safety nets for the most vulnerable population. The environmental degradation is a challenge to
social wellbeing due to low awareness on environmental conservation and weak enforcement of
the environmental laws and regulations. Poverty among the population leads to high dependency
on natural resources for livelihood. Good Governance
There have been several achievements in improving governance in Zanzibar. They were, to name
a few, the establishment of an independent office of the Director of Public Prosecutions (DPP),
strengthening the House of Representatives including increasing the percentage of women
members to 30%, strengthening the Controller and Auditor General’s Office (CAGO), review and
revision of several existing laws the Penal Act and the Criminal Procedure Act, new financial
and procurement acts were enacted and many of the registration functions of the Office of the
Registrar General were computerized. Capacity development within judiciary system was done.
Legal professionals, received training, and the number of law graduates from the Zanzibar
University increased. MUAFAKA between Chama cha Mapinduzi (CCM) and Civic United
Front (CUF) was agreed, signed and implemented. Voter and civic education was delivered to
the public. A partnerships relation between government and civil society has been enhanced. A
study on how to strengthen local government was completed.

In spite of significant achievements a number of challenges remain to be addressed in the
governance sector. Underlying these challenges is the reality that there is poor understanding of
the components of or importance of good governance among the public in general. Most
Government institutions continue to lack capacity and therefore do not function to the expected
levels. For example, the Controller and Auditor General’s Office is not performing up to the
standard, the House of Representatives is not fully equipped as it lacks research and support
capacity for members, and the Office of the Director of Public Prosecutions (DPP), while having
made incredible strides in a short time, continues to need support to ensure that professional and
independent prosecution services are available throughout the islands.

Government staff often do not have adequate capabilities to plan and implement reforms. This is
due to the lack of experience and/or level of education required. There are weaknesses even in

the buildings used as offices of the Government. Some of them are not structured to suit tasks
assigned to them. For example, the existing House of Representatives is not suited to its purpose.
Also repair for these buildings are hardly done.       Office supplies and equipment for better
execution of duties are generally inadequate. . They are either lacking or insufficient for proper
performance of the tasks. In total there is a poor delivery of services that generally impedes
economic development. Hence significant civil service reforms remain to be undertaken.

Public confidence in the administration of justice is low. Complex and sometimes even relatively
simple cases can take a long period of time to resolve. Most litigants are unrepresented in court,
and there are few private lawyers and very limited access to legal aid services. Contract and
commercial disputes are not readily resolved. Legislative frameworks are sometimes absent and
often inadequate to meet real needs or expectations. There is a need to increase the voice and
participation of people in the Government. Local governments are generally weak and ineffective.
Transparency and accountability mechanisms are generally poorly developed within Government
ministries. Corruption exists at most levels and there are few effective strategies in place to
reduce or eliminate corruption. Human rights violations do occur. There is no Human Rights
Commission or similar body operating in Zanzibar charged with the protection and promotion of
human rights. Other challenges include the need for:
    a. all District Courts to have professional and independent prosecution services throughout
         the isles,
    b. improved publication of record of activities of the House of Representatives through
    c.   strengthening of the capacity of Committees of the House of Representatives,
    d.   continued improvements of the capacity of Auditor General’s Office to carry out Value
         for Money Audits and computerized audits,
    e. improvements in the registration and electoral process as well as access to media,
    f.   improved participation by women in governance,
    g. efforts to increase the number of legal professionals,
    h. registration of companies, intellectual property, births, deaths and marriage, and
    i.   improved capacity to collect, analyse, disseminate and use data from sectoral and
         centralized sources to support government decision making.

1.4.      The ZPRP Review and Justification

The review provided an opportunity to identify the limitations of the ZPRP and deliberated on
them in a shared way. It involved all stakeholders in the process of developing a common
understanding on the direction of the review and measures that will make the next ZPRP more

It also aimed at alignment and harmonisation of the ZPRP with core reforms and policy processes
that have been undertaken both on the Mainland and in Zanzibar. These include the
ZPRP/National Strategy for Growth and Reduction of Poverty (NSGRP), Local Government
Reform Policy (LGRP), the Public Expenditure Review (PER) and Public Financial Management
(PFM), Tanzania Assistance Strategy (TAS)/Joint Assistance Strategy for Tanzania (JAST),
Institutional and Human Resources Reforms, Macroeconomic Reforms and Governance

On the other level, the review has been an opportunity to further mainstream global initiatives and
commitments since these initiatives potentially will contribute to the attainment of the ZPRP
aspirations of growth, social wellbeing and good governance. The review has specifically sought
ways of internalising the aspirations and targets, suggested (country or sector) responsibilities,
and any possible technical or financial assistance through respective sector programmes.

The rest of the document is organised as follows. Chapter two addresses the review, consultative
process and outcomes in various levels of consultations. Chapter three examines levels and trends
of poverty in Zanzibar based on existing primary and secondary sources of data in chapter three.
Chapter four addresses the strategic framework. It explains the linkages of the three clusters. It
also expresses Government commitment towards the implementation of the major reforms.

Chapter five presents the ZSGRP. It highlights the, broad outcomes, goals, operational targets and
interventions of the three clusters. It points out issues generated from the consultations, key
interventions and leading stakeholders in implementing the specified interventions. Chapter six
assesses the responsibilities and roles of each institution in implementing the strategy. Chapter
seven presents Monitoring and Evaluation System (M&E) that will facilitate the performance of
the implementation of ZSGRP and will provide feedback that will enable its updating. Chapter
eight provides resources framework for implementing ZSGRP.

 Examples include regional integration schemes, New Partnership for African Development (NEPAD), Commission for Africa,
Millennium Development Goals (MDG’s), the 2003 Rome Declaration on Aid Harmonisation and the 2004 Shanghai Conference on
Scaling-up Poverty Reduction and others

                                  CHAPTER II: ZPRP REVIEW PROCESS

2.1 Introduction
This chapter highlights the consultation process and the main issues that emerged from the
consultations that influenced the design of the Zanzibar Strategy for Growth and Reduction of
Poverty (ZSGRP which is known by its Kiswahili acronym MKUZA 2 as Mkakati wa Kukuza
Uchumi na Kupunguza Umasikini Zanzibar).

The overall purpose of the review process was to up date the ZPRP by making it more
comprehensive and pro-poor. The key objectives of the review included expansion and deepening
interventions to reduce poverty, raise awareness and widen ownership of the new strategy.
Specifically, the ZPRP review sought to build consensus on:
       the ZPRP review process and outcomes;
       harmonization and rationalization of processes around ZPRP; and
       capacity building for formulation, implementation and management of the
      Poverty Monitoring System (PMS) of the new strategy.
       further fostering of government leadership and country ownership of the development

The process of the review of ZPRP was participatory. It involved wider sections of stakeholders
and in so doing it created a wide awareness on poverty related issues. This approach was
opposite to the past practice, where was little and unnoticeable participation of stakeholders. As a
result, the last ZPRP was narrow focused.                       It selected and involved few key sectors for
consultation. On the contrary, the consultation process for the ZPRP review covered all the
sectors and cross-cutting themes. It was based on MDGs and mainstreamed gender, environment
and HIV/AIDS. It was also result based and outcome oriented strategy.

In developing ZSGRP, the Government aimed at opening up the process with extensive
consultations to seek views from wide range of stakeholders. The consultations were conducted in
three rounds. The first round included structured consultations, the second round covered focus
groups and grass-root consultations while third round covered the invited representatives from

    Throughout the entire document MKUZA will refer to ZSGRP.

first and second round consultations and development partners. The feedback from all
consultations were compiled and synthesized.3

2.1.1        First Round Consultation
The First Round Consultation or the Structured Consultations, was launched in October 2005
involved Ministries, Departments, Agencies (MDAs), Civil Society Organizations (CSO), Youth,
Children, Women, Trade Union and the Private Sector. The invitees convened and the modalities
of consultation were presented and explained to them. The Directors of Planning and
Administration in ministries and heads of other institutions were the invitees. The Drafting Team
supervised these consultations. Prior to the launch of the consultation process, the Drafting Team
was trained.4 The Directors of                 planning from ministries, members of Zanzibar Trade Union
Congress (ZATUC), Faith Based Organisations (FBOs) and Youths, had a one-day meeting to
brief them on the procedures to follow when they carry out the structured consultations in their
MDAs. The report format on what was expected at the end of the process was also discussed.

The consultation meetings were arranged in Pemba and Unguja. Later, a joint meeting was held
in Unguja, where the ideas from the two islands were combined, synthesized and submitted to the
Drafting Team. Donors/Development Partners (DPs) attended the joint meetings. The
participating institutions indicated the achievements of the ZPRP, the challenges and the way
forward. The findings were shared with Principal Secretaries of the ministries.

2.1.2 Second Round Consultations
The Second Round Consultation was conducted using two different methodologies, the Focus
Group Discussions and the use of Questionnaires. The Focus Group Consultations led by
Association of Non-governmental Organization of Zanzibar (ANGOZA) took place between 15 th
December and 1st February 2006. It involved youths, women, people with disabilities, widowed,
retired people, farmers, community leaders, members of the House of Representatives and
representatives of political parties. Special consultations were also conducted for people with
special needs such as people living with HIV and AIDS. As were the cases for all consultations, it
aimed at delineating three main issues: achievements of ZPRP, challenges faced and proposed
actions for ZSGRP. The facilitators for the consultations were adequately trained to handle the

    The details of consultations are found in consultations synthesis reports Vol 1 and II of 2006.
    Drafting Team is composed of experts from MDA’s, CSO’s, Private Sector and Development Partners.

The Grassroots Consultations were administered by OCGS. Students of Standard IV – VI in
selected public primary schools in Unguja and Pemba were used to send questionnaires to their
parents. The results of the second round consultations were similar, on average, to the first round
consultations. However, they revealed four interesting aspects. There were differing opinion
    On achievements, challenges and proposals for ZSGRP, by location and profession. It thus
     emphasized the importance of addressing the issue of equity in ZSGRP more proactively.
    Between Focus Group and Grassroots consultations, which called for the need to localize
     interventions in ZSGRP because that is where the issues are felt more and thus where actions
     should take place.

Other revelations were:
    Less interest in macro issues at the Grassroots level (unlike in the First Round Consultations).
    Importance of sectoral interdependencies5.

2.1.3      Round Consultations
The Third Round Consultations involved stakeholders from First and Second Round
Consultations and DP. A national consultation workshop was conducted on 30th – 31st March
2006 to deliberate on the proposal of ZSGRP draft.

The workshop provided another opportunity for the stakeholders to identify and fill up the gaps in
the Zero Draft, check and rectify the proposed broad outcomes, goals, key interventions and
implementing institutions and suggest ways for improvements. Also the consultation was used in
assessing the adequacy in streamlining the crosscutting issues, the inclusion of the MDGs and
other global commitments.

2.2 Challenges of the Review Process
As the consultation process proceeded, the following issues were posed as critical challenges for
the implementation of new strategy:

 In fact the opinions expressed link actions in many sectors (actors) outside the conceived “own sectors”. Farmers (agriculture), for
example, saw their hopes in ZSGRP to come from education, roads, agricultural interventions, health, good governance, and
environment and HIV/AIDS interventions. Such an outlook emphasized synergy and outcome approach

       Most of the MDAs lack long term plans hence challenges raised during consultations
        were adhoc.
       Weak institutional capacity in terms planning and implementation of plans and strategies.
       Weak analytical review of achievement and shortfalls of implementation of ZPRP within
        institutions and therefore there was not benchmark to measure where the institutions are
        and where they are focusing to go. In this manner, most of interventions proposed lack
        sequencing and priority.
       Lack of inter-sectoral collaboration and linkages.
       Overall sectors objective are not integrated Development Partners funded activities.
       Limited awareness of planning and implementation of ZPRP by community hence there
        was no integration of activities to the poverty reduction plans.
       Most communities are not well organised hence lack plans and strategies.
       Focus on Most Vulnerable Groups was not adequate.
       The questionnaire format during the second round consultations was very general. Hence
        discussions were more on few sectors of health, education and water.

2.3 Consolidation of the Findings
The First and Second Round Consultations were designed to come up with three broad areas as
far as implementation of ZPRP was concerned, achievements, challenges and proposed actions.
The reporting was structured along four clusters – Growth and Reduction of Income Poverty,
Social Services and Well-being, Cross-cutting Issues and Good Governance and National Unity.

The consultation results were consolidated into clusters for discussions. After deliberations with
stakeholders, the Crosscutting issues were mainstreamed into the three clusters (the Growth and
Reduction of Income Poverty, Social Services and Well-being and Good Governance and
National Unity). The results of the first two consultations were used as direct inputs into the
development of the new ZPRP or ZSGRP outputs, operational targets and strategic interventions
presented in Chapter V. The results of the Third Round Consultations on the other hand, were
used to improve the ZSGRP document. They helped a great deal in refining the goals, operational
targets, strategic interventions and implementing institutions.

Key Issues from consultations:
   lack of comprehensive framework for enhancing food security, land use conflicts, land degradation, drought,
   lack of credit facilities,
   underdeveloped industrial infrastructure for attracting FDI and local investors,
   lack of energy policy,
   weak inter sectoral linkages for addressing issues such as HIV / AIDS,
   under utilization of tourists’ attractions,
   shortage of qualified number of teachers at secondary and technical institutions,
   encroachment of water sources,
   high population growth,
   low participation of women in the economy,
   high infant and child mortality, and maternal mortality,
   poor transparency and accountability mechanisms.

                             CHAPTER III: GROWTH AND POVERTY STATUS

3.1      Introduction
This chapter reports progress and status on several indicators of growth, income and non-income
poverty mainly from the Household Budget Survey 1991/92, Tanzania Reproductive and Child
Health Survey (TRCHS-1999), Census 2002, the recent Zanzibar Household Budget Survey
2004/2005 and recent sectoral and thematic studies and surveys, for example, state of
environment and HIV and AIDS. The main thrust of the chapter is to provide the poverty profile
of Zanzibar and develop baseline information upon which the performance of the MKUZA will
be based and future assessment of the poverty reduction efforts can be undertaken. This baseline
information will involve comparison of poverty across districts, between urban areas and rural
areas, between Unguja and Pemba and to the extent possible make use of disaggregated data.
This chapter will also report trend of poverty over time and wherever possible draw a comparison
between Zanzibar and the rest of Tanzania and the rest of the world.

3.2      Growth and Income Poverty
3.2.1    Growth
Status and Trends
Zanzibar’s current GDP is Tshs 395.7 billions, a significant increase from the average of Tshs.
189.5 billions in the 1990s (Table 3.1). This translates to an annual per capita income of Tshs.
369,000/= in 2005 equivalent to USD 327 per person per year.

Table 3.1: Income per capita 1990- 2005
Index                                          1990-1999   2000-2004           2005
GDP at market price (Tshs millions)            189,500     255,600             395,700
Population (Nos)                               725,000     966,400             1,072,000
Per capita income (Tshs)                       142,000     263,800             369,000
Per capita income (USD)                        157         276                 327
Source: OCGS (2005) Socio-Economic Survey 1999 and 2004

Since 2000, economic growth has been robust with an average growth rate of 6.8 percent over the
period 2000 – 2004. The economy grew at 5.6 percent in 2005. As illustrated in Figure 3.1,
growth rate peaked in 2001 and 2002 and from 2003 onwards; growth has remained at 6 percent.
Per capita real GDP Growth rates are still low although they have increased from 2.1 percent in

1995 to 2.5% in 2005. This is due to the effect of the high population growth rate estimated at 3.1
percent over the period.

Figure 3.1: GDP Growth 1995 – 2005

       Annual Growth Rate (%)


                                6                         6.2                         6.4
                                                                  5.5       5.9                5.6
                                4                   4
                                                                            2.8                2.5
                                2       2.1
                                     1995 1999 2000 2001 2002 2003 2004 2005

                                               Real GDP Growth Rate
                                               Per capita real GDP Growth
Source: GOZ – Economic Survey Data

Economic growth has been driven mainly by the increasing contribution and growth of the
service sectors, which now represents up to 51 percent of GDP. The service sector has grown at
an average of 8 percent over the period (2000 – 2004), due mainly to tourism related activities.
Tourism emerged as one of the important economic activities in Zanzibar. The number of tourists
visiting Zanzibar increased by an average of 17.5 percent between 2002 and 2005. Tourism-
related income rose from Tshs. 108.2 million in 2001/02 to Tshs. 198.5 million in 2004/05.

The high contribution of the service sector to GDP is followed by agriculture (23 percent) and
Industry (14 percent). As shown in Table 3.2 below, the sectoral composition of GDP has
changed since the 1990s when agriculture accounted for up to 35 percent of GDP, with industry
accounting for 22 percent and services with 32 percent.

The agricultural sector remained the dominant sector to the economy as 70 percent of the
population of Zanzibar depends on it for their livelihood. The share of agriculture in Gross
Domestic Product (GDP), at 2001 prices, was 25 percent in 2002, declined to 21 percent in 2003
and slightly rose to 23 percent in 2004. Overall, the declining share of agriculture in GDP could

be explained as a consequence of the rising          contribution of other sectors, particularly public
administration, trade, transport and tourism.

During the period 2002-2004, agriculture recorded a growth rate of - 1.5 percent in 2002, 4.2 in
2003 and 2.7 percent in 2004, with an average 23 percent contribution to GDP. Production of
food crops improved from recording a negative growth rate of - 3percent in 2002 to 1.8 percent
in 2004, livestock, slightly from 3 percent to 4 percent, forest and hunting sub sectors from 2
percent to 5 percent and fisheries sub sector         from -1 percent in 2002 to 5 percent in 2004.
Production of cloves and other export crops increased at an average of 1.2 percent per annum.

Table 3.2: Major sector shares in GDP (at market prices)
Share in GDP (%)                                     1990-1999           2000-2004      2005
Agriculture (forestry, livestock & fishing)          35                  24             23
Industry (manufacturing, infrastructure, water) 22                       12             14
Services                                             32                  49             51
Source: MOFEA, 2006

Growth in the agricultural sector has stagnated and fallen (see Table 3.3); at the same time there
has been little change in the growth of the industrial sector, which includes manufacturing. Since
the majority of the population derives their livelihood from agriculture related activities, the
stagnation and decline in growth in the agricultural sector adversely affects the income of many
Zanzibaris. In addition, poor growth in the industrial sector constrains efforts to increase incomes
and reduce poverty. Also, the distribution of direct benefits from tourism related activities do not
impact positively on the lives of the majority of Zanzibaris; the sector remains to be an enclave.

Table 3.3: Growth by Sector (1990-2005)
                                                          1990 - 1999      2000-2004         2005
GDP growth rate (%)                                       4.2              6.8               5.6
Inflation rate (%)                                        18               6.5               9.3
Growth by Sector (%)
(i) Agriculture (livestock, forestry and fishing).        3.5              3,6               2.4
(ii) Industry (manufacturing, infrastructure, water)      14.5             7.9               6.6
(iii) Services:                                           6.2              8.3               6.8
Of which Hotels and Restaurants                           5.5              3.5               4.0
Source: OCGS (2005) Socio-Economic Survey -2004

The value of exports to the rest of the world rose from Tshs 7.4 billion in 2002 to Tshs 14.2
billion in 2004. Similarly there had been an increase in the export value to Mainland Tanzania.
The total interstate trade increased from Tshs 8.9 billion in 2002 to Tshs 15.8 billion by 2004.
Nevertheless, the overall trade balance showed a negative balance. It increased from Tshs. 49.8
billion in 2002 to Tshs 56.7 billion in 2004. Other trade sector achievements include a completion
of the Trade Policy, which emphasizes private sector participation, regulations and incentives to
local and external investors.

The financial sector, on the other hand, has shown remarkable achievements during the period.
The sector was vital for financial intermediation, trade facilitation and financing projects that had
direct impact on poverty reduction efforts. Statistics showed that banking lending had shown an
upward trend. It increased from Tshs 22,497.58 million in 2002 to Tshs 27,860.81 million in
2005. This was a 19.25 percent increase. These loans                                were directed to agriculture, trade and
personal loans. Micro Finance Institutions (MFIs) financed                                  Small and            Medium Enterprises
(SMEs) and other business ventures operated individually or in groups aiming at reducing
poverty. Numerically MFIs increased from 62 in 2002 to 86 in 2005 while MFI members
increased from 5,522 in 2002 to 12,203 people in 2005 making 121.0 percent increase. The
money lent out amounted to Tshs. 4,491.76million by May 2005.

In promoting the SMEs, a policy was drafted and a study on promotion of fish and fruits
processing was completed. The sector recorded a declining growth of 15 percent in 2002, 13
percent in 2003 and 5percent in 2004 with an average contribution to GDP of 6 percent. About
2,567 jobs were created in this sector for the period 2002-2004. During the period, labour laws
were reviewed to provide the needed conducive environment for private sector engagement and
protection of employees’ rights.

3.2.2        Income Poverty and Inequality

Status and Trends
The 1991/92 Household Budget Survey showed that 61 percent of Zanzibaris lived below the
basic needs poverty line and 22 percent lived below food poverty line. According to the HBS
2004/05, it is estimated that 49 percent of Zanzibaris live below the basic needs poverty line6,
while 13 percent live below the food poverty line. Food poverty measures the inability to afford

    The percentage of population which has difficulties in attaining basic needs of food, shelter and clothing

basic dietary requirements (recommended calorie intake) while basic needs poverty takes into
account additional resources expended on non-food items. Due to differences in the time frame
and methodology adopted it is not possible to compare these poverty rates with the mainland,
however, it should be noted that in 2000/01 it was estimated that 36 percent of the people in
Tanzania Mainland lived below the basic needs poverty line and 19 percent lived below the food
poverty line.

Female headed-households, account for 21.4 percent of all households in Zanzibar. Poverty
among female-headed households is lower than for male-headed households, 42 percent of
female-headed households are poor while 51 percent of male-headed household are poor.
Poverty is related to household size and the education attainment of the household head. The
majority of poor households have a larger number of dependents while the head of the household
has very low or no education at all. For poor households, 40 percent of the household heads have
no education at all, 30 percent have basic education, 24 percent have above basic education and 5
percent have adult education.

Poverty in Zanzibar is largely characterized by:
    (i)     Higher poverty incidence in rural areas than in urban areas;
    (ii)    Concentration of the poor in certain areas;
    (iii)   Low-income inequality.

Higher poverty incidence in rural than in urban areas: About 55 percent of people in the rural
areas live below the basic needs poverty line (Tshs, 20,185) as compared with about 41 percent in
the urban areas (Tshs 22, 841). Similarly 16 percent of people live below the food poverty line
(Tshs 12, 573) in the rural areas as compared with the 9 percent in the urban areas (Tshs 14,303)

Concentration of the poor in certain areas: The HBS 2004/05 shows that in percent terms,
there is more poverty in Pemba than in Unguja. About 61 percent of people in Pemba live below
the basic needs poverty line. This compares with 42 percent of people in Unguja who live below
the basic needs poverty line. The HBS 1991/92 showed that 64 percent of people in Pemba and
59 percent in Unguja lived below the basic needs poverty line. There is also more food poverty in
Pemba as compared to Unguja. It is estimated that 22 percent of people in Pemba live below the
poverty line, as compared with only 10 Percent in Unguja.

However, the absolute figures indicate that there are more poor persons in Ugunja than in Pemba
who cannot adequately meet their basic needs. On the contrary, there are more poor persons in
Pemba than in Ugunja who cannot get adequate food (See Table 3.4). The general trend seems to
suggest that there has been a slight decline in poverty between 1991 and 2004/05 – detailed
studies are required to confirm this general conclusion.

Table 3.4: Number of People living below the Food and Basic Needs Poverty Lines.
                                             Number of Food               Number of Basic Needs
                          Total Population    Poor Persons    (Percent)       Poor Persons        (Percent)
 Pemba                        376,987           75,192           20             229,997              61
 Unguja                       678,938           63,958           9              288,122              42
 (2004/05)                   1,055,925          139,150          18             518,119              49

 Zanzibar (1991/92)           878,688           193,311          22             536,000              61
Source: HBS (1991/92 and 2004/05)

There is a significant disparity in poverty levels between districts, with Micheweni district in
Pemba coming out as the poorest. The percentage of people living below the basic needs poverty
line in Micheweni is 74 percent, a remarkably high figure compared to the national average of 48
percent. Micheweni has also the highest incidence of extreme poverty, with 35 percent of people
living below the food poverty line. After Micheweni, Wete district has the second highest
incidence of poverty. It is estimated that 70 percent of people in Wete live below the poverty line
and 27 percent live below the food poverty line. See Table 3.5 below.

Table 3.5: Distribution of Poor Persons by Type of Poverty and District (2004/05)
                                        Number of Food         Number of Basic Needs
 District            Total Population   Poor Persons     (%)   Poor Persons            (%)

 Kaskazini "A"       88,285             10,753           12    47,054                  53
 Kaskazini "B"       55,073             6,639            12    26,588                  48
 Kati                65,328             5,454            8     29,830                  46
 Kusini              34,992             3,406            10    18,823                  54
 Magharibi           221,416            21,131           10    85,389                  39
 Mjini               213,844            16,575           8     80,438                  38
 Wete                106,438            25,367           24    75,346                  71
 Micheweni           87,012             29,020           33    64,593                  74
 Chake Chake         86,905             13,792           16    49,391                  57
 Mkoani              96,633             7,015            7     40,667                  42
 Total               1,055,925          139,150          13    518,119                 49
Source HBS 2004/05

Income inequality: Economic inequality as measured by the Gini coefficient shows that
inequality is generally low in Zanzibar. In principle, a higher value of Gini coefficient means a
higher income inequality. The estimate for the whole of Zanzibar is 0.31 with inequality in
Pemba at 0.27 and in Unguja at 0.31. This demonstrates that the current level of inequality is still
low. In addition, there is no marked difference in the measure of inequality between rural and
urban areas. The estimated value of Gini coefficient for the urban area is 0.32, as compared to
0.28 for the rural area. The district with the highest inequality in Zanzibar is Mjini (0.34)
followed by Magharibi (0.29). Micheweni 0.26), Mkoani (0.25), Kusini (0.25) and Kaskazini “B”
(0.26) have the lowest inequality. Although there is very limited comparability of poverty and
inequality between Zanzibar and the rest of Tanzania using the currently existing data, it is useful
to report that in the year 2000/2001 Tanzania Mainland registered a Gini coefficient of 0.35.
Zanzibar also compares favourably with Eastern and Southern African countries see Table 3.6

Table 3.6: Inequality in selected countries in Eastern and Southern Africa

                              Gini Coefficient            Reference year
Zanzibar                      0.31                        2004/05
Pemba                         0.27                        2004/05
Unguja                        0.31                        2004/05
Tanzania Mainland             0.35                        2000/01
Mozambique                    0.396                       1996
Kenya                         0.425                       1997
Uganda                        0.43                        1999
Malawi                        0.503                       1997
Zambia                        0.526                       1998
South Africa                  0.578                       2000
Swaziland                     0.609                       1994
Botswana                      0.63                        1993
Lesotho                       0.632                       1995
Namibia                       0.707                       1993
Source: UN Human Development Report 2005; Zanzibar HBS (2004/05), Mainland HBS (2000/01)

3.2.3      Employment
According to the HBS 2004/05 about 42 percent of the labour force are engaged in agriculture
related activities, which provides employment for a majority of the population. It is also estimated
that currently 7 percent of the working age population are unemployed. It should be noted that
this figure might not take into account those that are currently under-employed. In addition, this
overall figure masks the large number of unemployed youth aged 15 – 24, which is estimated at
20 percent of the youth population. See below.

Table 3.7: Unemployment by Age Group
 AGE         LABOUR              LABOUR            UNEMPLOYED             UNEMPLOYED     RATE      RATE
 GROUP       FORCE (1)            FORCE (2)        USUAL                  EXTENDED       (Usual)   (Extended)
             A                   B                 C                      D              C/B       D/A
 15-19       28,430              28,024            6,021                  6,427          21        23
 20-24       54,156              53,889            9,829                  1,0097         18        19
 25-29       56,660              56,577            3,943                  4,026          7         7
 30-34       52,059              52,015            1,416                  1,460          3         3
 35-39       45,935              45,914            6,54                   676            1         1
 40-44       44,722              44,688            454                    488            1         1
 45-49       31,476              31,476            249                    249            1         1
 50-54       26,401              26,395            178                    183            1         1
 55-59       15,033              14,999            212                    246            1         2
 60-64       13,820              13,814            156                    162            1         1
 Total       36,8692             36,7791           23,112                 24,014         6         7
COLUMN A:         This is the total Labour Force, including discouraged workers
COLUMN B:         This is the total Labour Force, excluding discouraged workers
COLUMN C:         Unemployed usual excludes persons unemployed but not seeking work
COLUMN D:         Unemployed extended includes persons unemployed but not seeking work
Source: Household Budget Survey 2004/5

3.3.     Social Well-being

3.3.1.   Education
Zanzibar fares better than the rest of Tanzania in terms of literacy rates. However, just like in the
rest of Tanzania, men are more literate than women. The latest literacy estimates indicate that 77
percent of Zanzibari women and 86percent of Zanzibari men are literate compared to 67 percent
of the women and 79 percent men in the Mainland. There are higher literacy rates for men and
women in Unguja than their counterparts in Pemba. The disparity in literacy rates between men
and women is also much higher in Pemba where the illiteracy rate for women is 40 percent
compared to only 20 percent for men. The Urban West Region has the highest literacy rate to 82
percent for men and 76 percent for women followed by South Unguja district with 76 percent for
men and 68 percent for women. The district with the lowest literacy is North Pemba with only 55
percent literacy rates for men and 43 percent for women. Table 3.8 reports the literacy situation
of women and men in Zanzibar, Unguja and Pemba and compares it with the situation in the rest
of Tanzania.

Table 3.8: Adult Literacy Rates (Zanzibar, Pemba, Unguja, Tanzania Mainland)
                           1988 (percent)                  2002 (percent)
                           Women        Men                Women                Men
Tanzania Mainland          Missing      Missing            67                   79
Zanzibar                   46.0         66                 76.8                 86
Unguja                     54           74                 83.2                 88.8
Pemba                      32           53                 62.5                 80.3
Source: National Bureau of Statistics (NBS)[Tanzania] and OCGS (2005), Census 2002, 1988

Primary enrolment rates have increased over time with near gender parity and improving
completion rates (see Table 3.9). Net Enrolment Rates (NER) for primary education increased
from 51 percent in 1990 to 79 percent in 2002. Primary transition rates have been consistently
high at an average of 80 percent since 1990. There is a higher proportion of females moving
from primary to secondary schools compared to males since 2000 with 80 percent for females
compared to 72 percent for males in 2004. Secondary transition rates are still low although there
has been an improvement from 10percent in 1990 to 40percent in 2004. The areas facing the
biggest challenge in terms of enrolment and transition rates for both primary and secondary
education include Micheweni and Kaskazini A as well as Wete, Mkoani and Chake Chake.

A majority of students live less than 2 kilometres away from Primary schools (75 percent),
although the figure is higher in urban areas (92 percent) compared to rural areas (66 percent).
However, the distance to Secondary schools is further with only 62 percent of all students living
less than 2 kilometres from the schools. In urban areas 86 percent of the children and 48 percent
of rural children live less than a kilometre from secondary schools. The districts with students
living farthest away from both primary and secondary schools include Micheweni, Chake Chake,
Mkoani and Kaskazini B.
Table 3.9: Primary and Secondary education trends
Indicators                                                      1990       1995        2002      2004    2005*
Primary net enrolment ratios (percent)                           51        65          79                77
(M/F)                                                           (52/50)    (66/65)     (79/79)           (76/78)
Primary Transition Rates (percent)                              79         80          81        76
(M/F)                                                           (80/79)    (81/78)     (77/84)   72/80
Primary Gender Parity (F/M in Net Enrolment)                    0.94       0.98        0.99
Primary Gender Parity (F/M in Gross Enrolment)                  0.92       0.95        0.96      0.98
Secondary Transition Rates (%)                                  10         36          40        44
(M/F)                                                           13/7       30/47       42/39     44/42
Secondary Gender Parity (F/M in Gross Enrolment)                1.0        0.97        0.94      1.00
Ministry of Education, HBS (2005)

3.3.2.     Health
Life expectancy at birth in 1978 was 47; in 1988 it was unchanged at 47 reflecting high mortality
rates. Recent estimates of life expectancy show an increase to 57 years in 2002 (male 57 and
female 58). The fertility rate is still high estimated at 5.3 with higher rates in rural areas compared
to urban. This is due the difference in age of first marriage, which is 18.4 years Unguja and 17.6
years in Pemba as well as variations in levels of literacy. Another important non-income measure
of welfare is the mortality rate of women, children and infants. Table 3.10 provides data on
infant, child and under-five and maternal mortality rates for Zanzibar and the rest of Tanzania for
the years 1996 and 2004/05.

Table 3.10: Infant, Child, Under-5 and Maternal Mortality
                                                               Zanzibar                         Tanzania Mainland
                                                               1996             2004/05         1996    2004/05
Infant Mortality (per 1,000)                                   75.3             61              94.7    83
Child Mortality (per 1,000)                                    34.8             42              56.6    42
Under 5 Mortality (per 1,000)                                  107.5 (114.3*)   101             146     133
Maternal Mortality (per 100,000)                               377**            Not available   529     578
Proportion of Births attended by skilled personnel (percent)   37*              49              36*     47
Source: Census 2002: National Bureau of Statistics (NBS); TDHS (2004/2005), *TRCHS (1999) ** 1998 UNICEF Study (add

There has been a decline in infant mortality since 1988 falling from 99 per 1,000 live births
(Census, 1988) to 75.3 per 1,000 in 1996 (DHS, 1996), 83 per 1,000 in 1999 (TRCHS 1999) and
61 per 1,000 in 2004/5 (DHS, 2004/5. There has also been a small decline in under-five mortality
from 1996 and 2004/05 to 101 per 1,000 live births. However, child mortality increased from
34.8 to 42 over the same period. Maternal mortality in Zanzibar is lower than the rest of
Tanzania although the figure of 377 per 100,000 is still quite high. The improvement in the
proportion of births attended by skilled personnel from 37 percent in 1999 to 50 percent in 2005
is noteworthy and provides a good basis for reducing maternal mortality. However there is still a
high fertility rate and unmet need for contraceptives suggesting the provision of universal access
to family planning and strengthening of reproductive health systems is required. Over all,
Zanzibar fares better than the rest of Tanzania in terms of infant, child under-five and maternal
mortality. However, more needs to be done to achieve the global millennium development goal of
reducing maternal and child mortality by two thirds between 1990 and 2015.

Concerted efforts in immunization lead to increased immunization coverage to above the set
global target of 80 percent. At district levels, coverage reached 88.8 percent for DPT-HB3. Use of
iodated salt by households increased from 1percent in 2002 to 25 percent in 2005. Increased
attendance by skilled health personnel at deliveries in health facilities from 40 percent to
50percent was reached. With regard to use of contraceptives, prevalence rate increased from 16
percent to 18 percent in 2005.

The HBS 2004/05 show that the percentage of households within 5 km to a primary health care
centre is estimated at 96.9 percent and the percentage of ill individuals attended or consulted any
health provider was estimated at 83.7 percent. However, there are large urban/rural differences
with 77 percent of urban residents within less than a kilometre to a health center compared to
only 34 percent in rural areas. Rural residents are mostly between 2 and 5 kilometres from a
primary health care center. In addition 20 percent of rural residents live over 20 kilometres from
the nearest hospital. The average distance to a hospital is 13 kilometres for rural residents
compared to 3 kilometres for urban residents. The districts with the longest distance to a health
care centres include Kusini, Chake Chake while Kaskazini B and Kati have the longest distances
to the nearest hospital.

According to routine data system from the Ministry of Health and Social Welfare, Malaria
continues to be the leading cause of morbidity in Zanzibar. Out of 812,520 in-patient and
outpatient diagnosis in 2004, Malaria accounting for about 45 percent of the total diagnoses (see
Table 3.11). Although there has been a slight decrease, the proportion of people treated for
Malaria has remained high from 49.2 percent in 2000 to 44.6 percent in 2004. The same trend is
observed in malaria cases from 51percent to 44 percent in Pemba and 54 percent to 39 percent in
Unguja. ITN coverage for under-five increased from 23.8 percent to 36.8 percent and for women
from 18.3 percent to 36.8 percent. However, there are increasing incidences of bronchitis,
pneumonia and respiratory infections. Bronchitis and pneumonia account for 7 and 6 percent of
diagnosis respectively.

Table 3.11: Leading diagnoses in Zanzibar PHC-units, 2000-2004
                                          Percentage of Diagnoses (percent)
Diagnoses                                 2000          2001         2002          2003                  2004
Malaria                                   49.2          46.9         46.2          47.1                  44.6
Bronchitis                                6.6           7.6          6.5           7.8                   7.2
Pneumonia                                 3.9           4.4          4.4           5.3                   5.8
Upper Respiratory Infections              4.7           4.8          5.4           5.5                   5.8
Open wounds                               5.7           4.8          5.0           4.2                   4.5
Gastro-enteritis                          3.7           3.7          3.5           3.6                   4.1
Anaemia                                   3.1           3.7          3.0           2.9                   2.4
Other skin diseases                       *             1.6          1.9           1.9                   2.2
Conjunctivitis                            2.4           2.1          2.9           2.0                   2.1
Intestinal worms                          3.0           3.8          3.1           2.2                   1.9
Other diagnoses                           17.7          16.6         18.1          17.5                  19.4
Total percent                             100.0         100.0        100.0         100.0                 100.0
All diagnoses                             435,177       547,705      620,559       510,985               812520
Source: Health statistical bulletins

3.3.3 Water and Sanitation
The supply and condition of water supplies in Zanzibar is a top priority. Currently, the water
demand in Zanzibar is not being met fully and some sources are contaminated. Access to water
for Zanzibar’s population has increased, but is still low in certain districts. Water in many areas is
not healthy for consumption, thus higher levels of awareness are required. It is estimated that 75
percent of urban residents and 51percent of rural residents currently have access to clean and safe
water within 400 metres7.

As indicated in Table below, although on average 11percent of the general population rely on
unprotected water sources, almost 20percent of the very poor rely on unprotected public wells as
their primary water source.

7 The latest estimates from the HBS 2004/05 indicate that 86.2 percent of households in Zanzibar have access to water sources for
drinking (80 percent rural and urban 96 percent) for drinking. This is a slight progress compared with, for example, in 1991 only 46
percent in rural areas in Unguja had access to water source. The HBS results and sectoral data are not comparable due to differences in

Table: 3.12: Source of Water Supply by Wealth Status
                                            Poverty Status
                                            Very Poor        Poor      Non Poor    Total
 Source of Water Supply                     percent          percent   percent     percent
 Private piped water in housing unit        16               22        35          28
 Private piped water outside housing unit   15               20        19          19
 Piped water on neighbour's housing unit    5                4         4           4
 Piped water on community supply            22               21        20          20
 Public well: Protected                     19               15        10          13
 Public well: Unprotected                   19               13        8           11
 Private well: Protected                    2                1         2           2
 Other Sources                              2                4         3           3

 Total population                                139,150     378,969   537,806     1,055,925
 Source: HBS 2004/05

With regard to sanitation, it is estimated that 67 percent of the population are using improved
sanitation facilities including toilets and VIPs (50 percent rural and urban 96 percent) according
to 2004/05 HBS. This is a good progress made compared to the situation in 1991 (HBS), when
48.3 percent had no toilets and only 43 percent had pit latrine. Further analysis of HBS 1991
shows that 74.5 percent of rural household had no toilets and 23.7 percent for urban.

3.4. Good Governance

In the 1990s, the political crisis in Zanzibar contributed to increasing and widespread poverty in
the Isles as also linked to unclear political commitment, lack of good sectoral and poverty-
reducing policies. Removal of all forms of political discrimination and designing strategies to
minimize political tensions, enhancing the role of non-state stakeholders as agents of economic
change, development and reduction of poverty in Zanzibar was seen and recognized as being
crucial in the design and implementation of ZPRP.

The Government and people of Zanzibar continue to recognize and cherish the importance of
promoting good governance and national unity. It is good governance and national unity that
create everlasting or sustainable development. In 2000/01, during the ZPRP consultation process,
many stakeholders were concerned with governance issues including poorly functioning and
structural arrangements within government, cumbersome decision making processes, poor
implementation capacity, poor relationship between government officials and the public and weak
capacity and separation of powers among legislature, the executive and the judiciary.

During the last five years, the Government has implemented several governance reforms, which
have created enabling environment for promoting pro-poor growth and development of poverty-
reducing policies. Some of the on going major reforms including Public Service Reforms, Local
Government Reforms, Business Environment Reforms and Public Financial Management
Reforms. Also, the Government introduced a number of national participatory processes to enable
Non-State Actors such as Non-Governmental Organizations; Faith Based Organizations;
Community Based Organizations and the private sector to participate in national development
dialogues and debates, and to influence policy-making processes. These processes include the
Public Expenditure Review, Medium Term Expenditure Framework and the Poverty Monitoring
System. Public Private Partnership has been enhanced through the establishment of the Zanzibar
Business Council.

The established Office of the Director of Public Prosecutions (DPP) has civilianized prosecutions
from all Regional Courts to High Court. All prosecutions are now being handled by DPPs staff
instead of them being conducted by the police. Establishment of DPP’s office was also an attempt
to depoliticise prosecution activities, which were originally under the Attorney General who was
seen as political figure for his being an ex-officio member of the House of Representatives and a
Member of The Zanzibar Revolutionary Council.

To complement the implementation of MUAFAKA Accord, which was signed in 2001, the
Revolutionary Government of Zanzibar has reformed the Zanzibar Electoral Commission (ZEC)
to give room for Political Parties to be represented in the Commission. ZEC introduced a
permanent voters’ register in its bid to improve electoral processes and reduce Government cost
in registering voters in every elections. The register has been first used to recognise the voters in
the last General Elections.

In recognition of human rights in the isles, a number of laws have been reviewed in promotion
and progressively realisation of these rights. These include Copyright Act of 2003, Penal Act of
and The Criminal Procedure Act of 2004. The Civic Education is imparted to the public to
increase awareness in good governance principles.

3.5.     Cross-cutting Themes

3.5.1.   Food Security and Nutrition

Food security in Zanzibar is related to access to food, availability of food and the utilization of
food. Food availability is determined by the production of smallholder farmers and to a larger
extent by the importation of foodstuffs.     Zanzibar is a net importer of food, with a rather
significant deficit between the values of local production and food imports.

The nutritional status of children is used as an indicator of access to food. Stunting (low height
for age) is linked to longer-term lack of access to food while wasting (poor weight for age) is
linked to short term deficiencies. Weight for age is a combination of both indicators. The most
recent estimates indicate that 23 percent of the children in Zanzibar suffer from stunting and 6
percent suffer from wasting. Table 3.13 gives estimated values of the measures of nutritional
status for Zanzibar, Unguja, Pemba and Tanzania Mainland for the year 1996 and 2004/05.

An investigation of the disaggregated data shows that child malnutrition is more prevalent in
Pemba where 32 percent of children are malnourished and 11percent severely malnourished
compared with 18 percent and 5 percent in Unguja. The survey also indicates that the level of
malnutrition is higher in mainland Tanzania than in Zanzibar (38 percent malnourished and 12.9
percent severely malnourished) and that malnutrition tends to be deeper in rural areas in both
Zanzibar and Mainland Tanzania.

There has been an improvement of nutritional status in Zanzibar between 1996 and 2004/05. The
proportion of children with low weight for age dropped from 34 percent in 1996 to 19 percent in
2004/05. The proportion of children with low weight for age is slightly higher in Zanzibar than in
the rest of Tanzania. The percentage of children with low weight for age is higher in Pemba than
it is in Unguja, once again indicating that poverty is more widespread in Pemba than in Unguja.

Table 3.13: Nutritional Status in Zanzibar, Unguja, Pemba and Rest of Tanzania
              percent of stunted children           percentage of wasting        percent with low weight for
                                                    children                     age
              1996        1999      2004/05         1996      1999     2004/05   1996    1999     2004/05
Mainland      43.6        44.0      38              7.1       5.3      2.9       30.5    29.5     21.9
Zanzibar      37          35.8      23.1            11.0      6.3      6.1       33.8    25.8     19
Unguja        n.a         27.0      18              n.a       3.5      6.7       n.a     17.2     17
Pemba         n.a         46.2      32.1            n.a       9.5      4.9       n.a     36.0     22.5
Source: Tanzania Demographic and Health Survey {1996, 1999, 2004/05}

3.5.2     Vulnerability
Vulnerability analysis helps to clarify the risk profiles of households and their susceptibility to
shocks, particularly their exposure and sensitivity to livelihood shocks. The ability to distinguish
vulnerable groups enables social support to be temporally and spatially targeted in order to
prevent such groups from sliding into destitution when shocks occur. Some groups may be
chronically vulnerable, requiring support on a routine basis; others may experience transitory
vulnerability (e.g. in the lean season before the next harvest).

Vulnerable groups comprising women, widows, youth, orphans, elderly, neglected children, the
persons with disabilities, those infected and affected by HIV and AIDS and the poorest of the
poor are an important target group. Factors contributing to their vulnerability include: food and
nutrition insecurity, limited access to productive assets, traditional roles ascribed by society, poor
health, unemployment, lack of support networks, lack of access to education, discrimination and
social exclusion. Unfortunately, information and data on issues pertaining to vulnerable groups is
often limited and not collected in a consistent manner. The latest estimates on the number of
orphans indicate that 0.4 percent is currently living without one or both parents. In addition, there
are currently 0.6 percent of Zanzibaris [Validation study by MoH, 2002] estimated to be living
with HIV and AIDS. This figure does not take into account the large number of people affected
by the disease including care providers and families who bear the brunt of providing both
material and other support.

3.5.3.       Environment
According to the State of the Environment Report 2004/05 (RGoZ), it is estimated that 41 percent
of Zanzibar’ woody biomass is indigenous and 59 percent is exotic. About 500ha of coral rag
forest is cleared each year for fuel-wood and pressure on mangroves for building poles is
increasing as a result of growing demand, which is partly fueled by population growth. The
proportion of people using solid fuels that includes wood, charcoal is still very high at 96 percent.
This is higher in rural areas (98 percent) compared with urban areas (93 percent). It is a fact that
Zanzibar relies a great deal on wood products for household energy for cooking.

Access to an improved water source and use of improved sanitation has improved in Zanzibar
since the 1990s. Nevertheless, the water demand is not being met and some sources are
contaminated, mainly from human waste. Contamination of water supply from human waste8
remains a serious concern affecting some of Pemba’ main water supplies, such as in Chake

In agriculture sector, poor agricultural and soil management techniques result in topsoil loss,
erosion, and soil deterioration. As a result of poor soil management the production of food
remains a problem with some areas, such as Pemba’s east and Northeastern areas. Also, problems
caused by habitat destruction of coral reefs and mangroves from illegal fishing techniques, such
as spearfishing, drag netting and dynamiting continue to be addressed by government and other

3.5.4.       HIV and AIDS
The latest estimates indicate that 0.6 percent of Zanzibaris are living with HIV (Validation Study,
2002). The number of reported cases increased from 3 in 1986 to 4,652 in 2005 (Surveillance
Report, 2005). The age group most at risk is 20-49 years, which include the youth and the skilled
working population.

The data from sentinel surveillance (2005) indicates a prevalence rate of 0.87 percent among
pregnant women attending anti-natal clinics. If this is taken as a proxy indicator of the HIV

    See access and use of toilets under water & sanitation section – social well-being.

prevalence in the general population, then it can be estimated that out of a population of
1,078,964 (projection from 2002 Population and Housing Census) currently living in Zanzibar,
about 9,387 persons are HIV positive. This is an indication that HIV has not been contained. The
challenge still remains to provide adequate treatment, care and support for those infected and
affected by the virus and to promote behaviour change among the population with more focus on
most at risk population groups.

3.5.5    Gender
To ensure women participation in decision making is improved, the constitution was reviewed in
2003, which led to a further increase in the percentage of special seats for women in the House of
Representatives from 25 percent to 30 percent. Similarly, this has happened at the Municipal and
District Council where the Municipal Act was revised in 2005 and now provides for 30percent
participation of women. Despite these efforts women continue to be under represented at various
levels of decision making as shown in the table below.

Table 3.14: Representation of women in decision-making positions (2006)
Positions                                       Male                 Female          Total
                                                2000       2006      2000     2006   2000    2006
Members of the House of Representatives         60         63        19       15     79      78
Ministers                                       11         10        1        4      12      14
Deputy Ministers                                4          5         1        1      5       6
Principal Secretaries                           11         14        1        1      12      15
Deputy Principal Secretaries                    7          8         2        2      9       10
Regional Commissioners                          5          5         0        0      5       5
District Commissioners                          9          9         1        1      10      10
Source: Ministry of Labour, Youth, Women and Children Development (2006)

                             CHAPTER IV: FRAMEWORK OF THE ZSGRP

4.1       Introduction

This chapter provides the framework that is holistic to address the challenges and show the
roadmap to achieving the objectives and goals of the vision 2020 through the ZSGRP. The
objective of the Zanzibar’s overall Development Vision 2020 is to eradicate absolute poverty and
attain sustainable human development. Poverty in the vision has been defined as not merely the
lack of income but also the lack of accessibility to the basic needs of the people.9

The framework translates the Zanzibar Vision 2020 and presents the major building blocks that
will facilitate achievement of the objective of the Vision 2020. It also highlights key principles
and on-going reforms necessary for growth and poverty reduction. It elaborates the major clusters
of the strategy, namely, (i) Growth and Reduction of Income Poverty; (ii) Social Services and
Well-being; and (iii) Good Governance and National Unity.

4.2       Principles of the Zanzibar Strategy for Growth and Reduction of Poverty

The Strategy is aimed at improving the first ZPRP in terms of process and content. It observes ten
principles that guide its interventions and actions with a view to ensuring integrity of the Strategy.
The purpose is to have a strategy that will bring about rapid growth and improvement of the well-
being of the people.

4.2.1     National ownership

The strategy is viewed as a next step to scale up the efforts that will lead to the national
ownership of development process. The strategy identifies the limitations of the ZPRP 10 and
deliberates them in a shared way. It encourages participatory mechanisms at national and local
levels. It accommodates contributions of stakeholders. Efforts have been made to reach all sectors
at Government level, civil society, Private Sector, communities and individuals11. The thrust was
to make the participation more institutionalized rather than a one – off event. Thus, the ZSGRP
underscore the need to build capacity among its stakeholders in policy formulation,

  Zanzibar Vision 2020
   The ZPRP was seen as an issue of the Ministry of Finance and Economic Affairs.
   Full discussion on the consultation is presented in chapter two

implementation, monitoring and evaluation. The capacity building interventions will target MDA,
Private Sector, civil society and community at large.

4.2.2. Political Commitment

There will be a need for sustained political will and commitment to continued democratisation
and human rights. Political stability, tolerance and consistency in policies will be vital and a basis
for accountability of the Government to the citizenry and development partners.

4.2.3 Commitment to Socio-economic and Structural Reforms Financial Management Reforms

(i) Harmonization of financial matters with United Republic of Tanzania (URT):

The formation of the Joint Finance Commission is expected to clear most of the impediments in
the current financial relations. It will also roll a tax administration programme, which is already
in operation in the Mainland to Zanzibar. The programme will enhance the efficiency of tax
administration and the Zanzibar revenue Board capacity. Aide-Memoir for working collaboration
between Tanzania Revenue Authority (TRA) and Zanzibar Revenue Board (ZRB) has been
developed and is operational.

(ii)    Public Expenditure Review (PER) and Medium Term Expenditure Framework (MTEF):

Introduction and implementation of the PER and Medium Term Expenditure Framework (MTEF)
processes in the Government and public enterprises has improved financial planning and
budgeting processes, by enhancing transparency and predictability of resource outlays, in effect
improving budget execution. A Public Expenditure Review Institutional Framework has been put
in place where macro stakeholders the Central Bank, the TRA, the ZRB, the Chief Government
Statistician and the Ministry of Finance and Economic Affairs (MOFEA) are present. A revenue-
forecasting model has been developed. The remaining challenge is to hook the MDA budget with
key interventions outlined in the ZSGRP.

(iii)   Government Financial Accounting and Reporting:
Government financial accounting and reporting has improved as a result of the finalization and
Publications of Financial Administration Regulations and the introduction of Information
Technology in Accounting and reporting. The formation of a strong Fiscal Policy Unit and the
introduction of an effective but liberal tax administration system have greatly enhanced domestic
revenue collection.

(iv)    Central Payment Office (CPO):
The CPO has been established to facilitate centralization of all government accounts. Through
the CPO the Government of Zanzibar operates four accounts with the Bank of Tanzania (BoT) as
the sole Government banker.        This system has improved the management of Government
financial operations. A quarterly cash flow plan approved through monthly Ceiling Committee
meetings is the basis from which MDAs make their expenditure requests. This move has
enhanced the quality of cash management.

(v)      Central Payroll System:
In the same lines, a central payroll system has been instituted. This unit housed in the Ministry of
Finance and Economic Affairs, through data coordination between the unit, the Zanzibar Social
Security Fund (ZSSF) and the Zanzibar residents, prepares all Government employee payment
vouchers. It has been able to right size the list of the payroll of the Government by discarding
possible fake employees. The system together with the ongoing civil service reform initiative will
determine the correct existing size of the civil service.        This will inform on future policy
decisions on the structure, size and quality of the civil service.

(vi)    National Debt Management Unit:
The establishment of a National Debt Management Unit has improved management of Zanzibar’s
public debt, and hence enhances its sustainability. The Unit coordinates the implementation of the
debt strategy that has been used to guide the Government on the limits to borrowing, specify
types of loans, their maturities including an assessment of repayment capacity and repayment
schedule. The strategy ensures that debt service is in line with the operations of the budget.

                                                                                                 39 Economic Management Reforms
(i)     Economic Diversification:

Economic diversification for employment creation and income generation are being pursued to
enable Zanzibar get out of the clove-industry trap that has hitherto determined its economic
growth path. Promoting the export diversification towards non-traditional (such as vegetables,
fruits, flowers and spices) which promise increased contribution to GDP is in progress.

(ii)    Infrastructure Development:
Improvement of comprehensive transport and communications network, covering both urban and
rural areas, is being laid out. The airport and the seaport in Unguja and Pemba respectively, are
being modernized. The water and electricity supply infrastructure are improving to meet the
growing demand. The legal and regulatory frameworks are being reviewed to facilitate the
development of Private Sector in activities. The energy sector reform which responds to energy
challenges aim at strengthening the financial operation of State Fuel and Power Corporation
(SFPC), cutting down on technical and other power losses, improve billing collection through
regular tariffs, review tariff and increased use of prepaid meters, improve the institutional and
human capacity of SFPC and review and draw and implement energy sector policy. Currently, the
reform has started by review of the Presidential Decree of SFPC Establishment by enacted new
legislation of 2005, revision of electric tariffs, introduction of new tariffs and approval of water
legislation, which among other things stipulated the establishment of water authority. Governance Reforms
(i)     Legal System and Access to Justice:
Initiatives have been taken to address legal and administrative framework. The Government
continues to review laws and procedures, capacity building, improvement of facilities and
working condition. The Anticorruption and Leadership Ethics has been drafted.

(ii)    Participatory Democracy:
A Local Government Reform is being undertaken. Electoral process has been reviewed and the
draft of Non-governmental Organization Policy has been completed. The capacity of Civic
Society Organizations (CSOs) is improving and the Government – CSOs partnership is

(iii)   Political Stability and Tolerance:
The Government has developed Civic Education Programme and Non-Governmental
Organizations (NGO) have developed Voter Education Programme for 2005 general election. The
Government has reviewed policies and procedures relating to the operations of religious
institutions so that further stability and tolerance is achieved. Institutional and Human Resources Reforms
(i)     Human Resources Development:
The reforms on human resources development aim at undertaking an orderly and planned
transition towards the acquisition of strategic skills and high incentives for staff. Emphasis is
placed for newly recruited staff to join on-job training. High motivation is placed for skilled staff,
and professionals for them to improve their performance. Currently, the Government has started
the process of undertaking Civil/Public Service Reform. Also the drafting of Human Resource
Development Policy has started. The Policy is expected to address various issues including HIV
and AIDS education.

(ii)    NGOs Performance:
The Government is committed to build capacity of Community Based Organizations (CBO) and
NGO for them to be able to compliment the Government efforts in the development process.
Emphasis is placed in broadening NGO activities in the rural areas where the burden of poverty is
severe and rate of spread of communicable diseases including HIV/AIDS is significant.

(iii)   Private Sector Development:
Zanzibar’s Private Sector is still at infant stage. It has not established itself as an institution
capable of effectively meeting the demands of a fast globalizing world. However, the Private
Sector is expected to address the challenges of a poor economy of a small island where majority
of its workforce is unemployed and its share of export trade in regional and global markets is very
small. During the reforms, the Government has initiated and implemented measures to improve
Private Sector operations in Zanzibar by offering attractive investment incentives to private
investors. The new Investment Policy has been developed and approved.

4.2.4 Sector Strategies, Linkages and Collaboration
The ZSGRP recognises the roles of specific sector development and/or reform programmes. 12
Effective implementation of the strategy requires sectors collaboration in order to achieve the
identified outcomes. It also calls for sector to take advantages of backward and forward linkages
and their synergies.

4.2.5 Local Partnership
The ZSGRP provides a space for local stakeholders, including citizens, communities, civil society
and the Private Sector in policy dialogue. Efforts will be made to foster private-public

4.2.6 Harmonised Assistance
The strategy seeks ways to align and harmonise the ZSGRP with core reforms and policy
processes that have been undertaken both on the Tanzania Mainland and Zanzibar. These include
the NSGRP, LGRP, the PER and Public Financial Management (PFM), Tanzania Assistance
Strategy (TAS)/ Joint Assistance Strategy for Tanzania (JAST). The strategy aim at
mainstreaming global initiatives and commitment since these initiatives potentially will
contribute to the attainment of the ZSGRP aspirations of Growth, Social Well-being and Good

4.2.7 Equity
The ZSGRP will be focusing on reducing inequalities and improving social well-being
particularly of the poor. The effort will be directed to improve accessibility to productive assets
by the poor. Attention will also be paid to address geographic disparities of public services across
regions and districts.

4.2.8 Sustainable Human Development
The strategy seeks ways to align and harmonise the ZSGRP with core reforms and policy
processes that have been undertaken both on the Tanzania Mainland and Zanzibar. These include
NSGRP, LGRP,           PER, PFM, and TAS/JAST. The Strategy aims at mainstreaming global

  These reforms include Human and Institutional Reforms, Good Governance Reforms and Financial and
Economic Reforms.

initiatives and commitment since these initiatives potentially will contribute to the attainment of
the ZSGRP aspirations of Growth and Reduction of Poverty, Social Services and Well-being and
Good Governance and National Unity.
Judicious use of resources during the implementation of ZSGRP will be stressed. Exploitation of
natural resources will be made in such a way it does not affect needs of future generations. The
strategy will ensure all negative effects on environment are avoided.

4.2.9    Macro-micro Linkages
These are connections between macro and micro economic activities. For ZSGRP it is the
fostering of the decentralisation process and enhancing efficiency in service delivery. It is also the
designing and or implementing policies that ensure benefits of growth in high-growth sectors
such as fisheries, trade and tourism, are transmitted to the poor in order to improve their well-

4.2.10 Mainstreaming Cross-Cutting Issues
All cross-cutting issues have been mainstreamed in the three clusters of the strategy. The goals,
operational targets and key interventions and actors responsible to take the lead in
implementation are included in the clusters strategies. Monitoring the progress of cross cutting
issues will also be part of ZSGRP. The mainstreaming of cross cutting issues calls for
collaboration within and across sectors.

4.3     Major Clusters of ZSGRP

The strategy identifies three major clusters of poverty reduction outcomes: (i) Growth and
Reduction of Income Poverty; ii) social Services and Well-being, and (iii) Good Governance and
National Unity (Figure 4.1). Each cluster contains a broad outcome, goals, key issues raised
during consultations, key interventions and key actors to coordinate implementation. Many of
these are interrelated and support each other.

Figure 4.1: Major clusters of ZSGRP

                       Growth and Reduction of Poverty

                                                                  Social Services
                                             Core Reforms
     Growth & reduction                                           and well-being
     of income poverty

                              Good Governance and National Unity

Economic growth is important for poverty reduction initiatives. Development of the economy
depends on the efficiency and effectiveness of resources utilizations.13 The above three clusters
relates to each other. Growth, ceteris peribus, leads to higher incomes, thus reducing income
poverty. Higher incomes enable households to improve their well being through improvement of
social services (i.e. education, health, nutrition, shelter). Improved social wellbeing ensures
effective participation of population in economic activities and hence stimulates economic
growth. Also, growth facilitates expansion of tax base and hence more revenue can be collected.
Increased government revenue is necessary condition for improving social services such as
health, education, administration and infrastructure. The availability of basic social services that
are qualitative and affordable to the population cements the national unity. Governance and
national unity, on the other hand, provides conditions within which growth, social
services and peoples’ well-being take place.

     Resources includes land, capital and labour

4.4     Growth and Reduction of Income Poverty

4.4.1     Sources of Growth
The key sources of growth that Zanzibar needs to focus during the implementation of the strategy
includes: investments in human capability and physical capital, increases in factor productivity,
Private Sector Development (PSD), Domestic Trade and Investment (DTI), and FDI.

4.4.2     Broad-Based Growth and Equity
In order to ensure broad based growth and equity the focus will be on the accessibility of
productive assets for the poor. Also attention will be made to address geographic disparities by
identifying economic potentials of the disadvantaged districts and supporting exploitation of these
potentials and raising returns and productivity in the poorer districts. Equal and universal access
to public services through the budgetary financing of social programmes will be applied. Support
to community-based initiatives that focus the special needs of the vulnerable groups will be

4.4.3     External Shocks and Disaster Management
The first cluster addresses growth and reduction of income poverty. The thrust of the cluster is to
ensure high economic growth that can withstand both external and man-made shocks.14

4.5     Social Services and Social Well-being

The second cluster addresses social services and well-being of the Zanzibar community.
Improvement of the well-being of the peoples depends on the provision, affordability and
accessibility to social services like education, information, health, water, HIV and AIDS
treatment and prevention, and social protection programmes. For social services to be available
both to the users and providers, the Government and her stakeholders have to generate enough
revenue to invest in those services. On the other hand, improved peoples well-being ensures both
effective participation in production processes and high productivity.

  External shocks include adverse terms of trade and erratic commodity prices. Man-made shocks include epidemics, pest infestation,
drought, floods, and fire.

4.6   Good Governance and National Unity

The third cluster is Good Governance and National Unity. The focus on governance centres on
both financial and non-financial governance. It pays attention to rule of laws, public and personal
security, and capacity of Government institutions, leadership ethics, and participation in decision-
making, accountability, transparency and national unity. For economic growth and improvement
of people’s wellbeing to happen good governance and national unity has to prevail. There must be
effective, transparent and accountable use of resources in a fair and corruption free system.
Stakeholders need to be well informed with policies, laws that are being implemented by the
Government.     The public access to information in ZSGRP is a catalyst for effective policy
implementation, monitoring, evaluation and accountability. The non-state actors will also be
expected to demonstrate accountability to the people.

4.7   Core Reforms

The ZSGRP implementation is supported by core reforms. These include financial and economic
management, good governance, and institutional and human resource reforms. The other reforms
include those introduced by URT namely, Public Expenditure Review (PER), Public Financial
Management Reform Programme (PFMRP), and Joint Assistance Strategy for Tanzania (JAST).
The achievements of outcomes in all the three clusters are being facilitated by the core reforms.
The desired outcomes of growth depend, to a large extent, on the implementation of financial
management reform. The reform points out a need to improve working relations between TRA
and ZRB on revenue collection. It also emphasizes streamlining and improvement of Government
financial accounting and reporting. These reforms institute culture of transparency, which is a
critical ingredient to governance.

The reforms for economic management call for employment creation, introduction of
non-traditional crops, improvement of infrastructure and provision of legal and regulatory
framework. The interventions of reform aim at fostering growth and at the same time
creating foundation for good governance. Governance reforms advocate for participatory
democracy and call for political stability and tolerance. All reforms have effects on both
economic growth and improvement of social wellbeing. Institutional reforms recognize
the contribution of non-state actors in the development process. The non-state actors

compliment efforts of the Government in stimulating growth and improve service
delivery to the communities. The reform of human resources on the other hand, aims at
providing necessary skills and expertise needed for economic and social interventions.
Thus, the achievement of desired outcomes in all the three clusters depends on the quality
of human resources deployed in key interventions of the strategy.

4.8     Structure of ZSGRP and Key Definitions

The ZSGRP has three clusters, for each cluster there are broad outcomes, under which a set of
goals are defined with an associated set of specific operational targets with timeframes. For each
operational target, key interventions are listed. In each key intervention there are number of actors
identified to take the lead in its implementation. . Definitions for these terms with examples are
given in Table 4.1.

Table 4.1: Definitions of terms and examples

Term                  Examples
Broad outcomes:       Wider longer-term sectoral or national outcomes Zanzibar would like to realise as
                      specified in national policies such as Vision 2020: for example.
                           Achieving peace, political stability, good governance, integrity, national
                               unity and social cohesion.
Goals                 Outcome aimed at achieving one of the broad outcomes. This does not necessarily
                      need to have a timeframe and target, for example
                            Promotion of high class tourism
Operational target    Outcomes that have specific timeframes and target: for example.
                            Improved revenue collection from 12.5% of GDP (2005) to 18% of GDP
Key Issues raised     These are problems and challenges mentioned during the consultations which need
                      to be addressed: for example.
                            Inadequate number of classrooms.
Key Interventions     Activities that different actors will do in order to address problems and challenges
                      mentioned during consultations. These activities are also geared to achieve the
                      intended operational outcome/ target: for example.
                            Institute reproductive health and HIV/AIDS prevention programmes in
                                primary and secondary schools
Actors                These are Ministries, Department and Government Agencies. It also include Non
                      State Actors (Civil Society Organizations, Private Sectors and Trade Unions) for
                      example. Ministry of Agriculture

The ZSGRP specifically sees a possibility of different sectors and actors working together toward
specific outcomes.    This also came up in the course of the public consultation during the
preparation of the ZSGRP.

                                     CHAPTER V: THE STRATEGY

5.1           Introduction
This Chapter explains the Strategy that has three clusters, namely; Growth and Reduction of
Income Poverty; Social Services and Well-being; and Good Governance and National Unity. The
three clusters reflect the concerns of stakeholders which were generated during consultation
process. It also addresses the on going reforms which are being implemented by different MDAs
and Non State Actors. The Strategy takes into account the commitments that URT and the
Revolutionary Government of Zanzibar (RGoZ) have signed at global, regional and at national

5.2           Cluster 1: Growth and Reduction of Income Poverty
Growth in national income only helps the poor if they share in the growth process. Social
inequality, a usual correlate of poverty, dilutes the benefits of growth to the poor. In fact,
inequality has a tendency to increase with growth unless specific measures are taken. Economic
growth in itself does not automatically redress inequality and reduce poverty. This is not to say
that growth is not necessary for poverty reduction; but it affirms that, unless specific measures are
taken to reduce inequality, growth may have no or even regressive effects on the poor. Thus,
growth is a necessary but not sufficient condition. The challenge therefore is to identify policies
that increase growth while yielding tangible benefits to the poor, both men and women, in rural as
well as urban areas.

In this regard, the first cluster of ZSGRP builds on the achievements of ZPRP and focuses on
ensuring that growth is inclusive and benefits the poor and marginalized groups. In addition, in
order for growth to have a significant impact on poverty reduction, it should be high, pro-poor
and sustainable. The broad outcome for this cluster is to achieve and sustain pro-poor growth.
To achieve this outcome three goals have to be achieved. The goals are outlined in the Box 1

Box 1. Goals for the Broad Outcome – Cluster I
               Create an enabling environment for growth
               Promote sustainable pro-poor and broad-based growth
               Reduce income poverty and attaining overall food security

5.2.1   Goal 1: Create an Enabling Environment for Growth
In order to achieve the broad outcome of pro-poor and sustained growth, there is a need to create
an enabling environment which will be the basis for the achievement of set targets and
accompanying aspirations of all sections of society in an environmentally sound manner. The
achievement of an enabling environment for growth is currently constrained by a number of
challenges raised during the consultations. They include weak fiscal and monetary environment;
weak public financial management systems, poor business infrastructure and related services, low
levels of investments, HIV/AIDS pandemic and low human capacity.

To address these challenges a series of interventions will have to be made in order to achieve
respective targets including a stable macro-economic environment, improved revenue generation,
a more conducive environment for private sector development and external investment, improved
access to factors of production, and development of infrastructure. Box 2 summarises the
operational targets of goal 1.

Box 2. Operational Targets for Goal 1– Cluster I.
       Stable Macroeconomic environment promoted.
       Revenue collection increased from 13.8 percent of GDP (2005) to 18.5percent by (2010).
       A conducive environment for private sector development with a focus on SME developed.
       Improved access and utilization of medium and long term credit to productive sectors.
       Quality of workforce improved and population growth rate reduced
       Increased allocation of land rights
       Increased access to affordable and sustainable energy by 2010.
       An enabling environment for investment created
       Sustainable and gender focused environmental management system developed
       Constructed and rehabilitated all remaining roads (266 kilometres of trunk and feeder roads) by
       Zanzibar International Airport Master Plan developed and implemented and Pemba airport
        services improved
       Access and use of ICT facilities and services promoted.

Key interventions to address challenges and targets are outlined in Appendix 1. They include
pursuing prudent fiscal and monetary policies, implementing recommendations of financial sector
reforms, expansion of the revenue base, operationalization of Business Council and programme

of Business Environment Strengthening for Tanzania (BEST), finalizing and implementing SME
policy, implementing population policy action plan, targeting HIV/AIDS workplace programmes
and mainstreaming HIV/AIDS interventions in sectors and institutions and promoting
participation of private and informal sectors in HIV/AIDS responses, creating a conducive legal
environment for land ownership and allocation, implementing energy              policy and reform,
implementing strategy on the development of an integrated infrastructure , and developing and
implementing Information Communication Technology (ITC) policy.

5.2.2   Goal 2: Promote Sustainable Pro-Poor and Broad Based Growth
Despite positive economic growth of 5.6 percent (2005), poverty still remains a major
development challenge affecting majority of people, particularly women and other vulnerable
groups, in both urban and rural areas. The major challenge remains to be how the benefits of
economic growth can reach the poor. In order to overcome this challenge, the Government aims
at promoting increased and sustainable pro-poor and broad based growth in order to achieve
poverty reduction objectives, as envisaged in the Zanzibar Development Vision 2020. These
objectives will be achieved through improving agricultural production and productivity,
improvement of tourism, infrastructure and services, creation of a favourable environment for
external trade and access to micro-financial services.
In order to achieve sustainable pro-poor growth, the agricultural sector has to grow significantly.
This entails increasing budget allocation to the sector and initiating programmes that aim at
increasing agricultural productivity and access to market and containing HIV/AIDS. In addition
there will be a need to promote high-class tourism through improvement of tourism infrastructure
and attractions and promoting linkages with the agricultural sector.
If Zanzibar is to fully benefit from the competitive export trade, it must ensure that high quality
goods are produced to meet export markets standards. In this respect, there is a need to develop
the legal framework and strategic plan to implement Trade Policy and export strategy and
develop domestic capacity to produce and supply high quality products and services. In addition,
continued support will have to be provided for the development of the informal sector SMEs ,
undertake product diversification for export and carry out liberalization of clove marketing.
From the consultations with various stakeholders, several issues were identified as critical for the
promotion of sustainable pro-poor and broad based growth. These issues are related to challenges
and constraints for the development of potential economic sub-sectors (agriculture, tourism and
trade), availability and accessibility of micro-finance services and weak inter-sectoral linkages for

pro-poor and broad based growth. The operational targets for ensuring sustainable pro-poor and
broad based growth are outlined in Box 3.

Box 3. Operational Targets for Goal 2– Cluster I.
            Increased rate of economic growth from 5.6 percent (2005) to between 8% and 10% by 2010
            Heritage sites preserved and maintained, while eco and cultural tourism developed.
            Increased growth of agricultural sector from 2.4% (2005) to between 6 and 8 percent by 2010
            Improved availability and accessibility of gender responsive microfinance services
            Favourable external trade environment created
            Increased high class tourist hotels and facilities

The strategic interventions that will be pursued so as to promote sustainable pro-poor and broad
based growth are annexed. They                   include developing and implementing a focused Growth
Strategy, implementing HIV/AIDS Strategic Plan, improving agriculture extension, supporting
research services, promoting agro-processing and strengthening agricultural market intelligence
and information system, implementing Soil Fertility Initiatives and Land Husbandry Strategy,
encouraging crops diversification and intensification, developing and implementing cooperative
policy and undertake cooperative reforms, promoting and preserving Stone Town cultural
heritage sites and improving attractions of other historical sites and promoting and preserving
tourist attraction areas, implementing tourism policy and its master plan, developing and
implementing micro-finance policy and promoting establishment of micro-finance institutions,
facilitating the access of women and people with disabilities to export markets, gradually
liberalizing clove marketing and review functions of ZSTC as well as implementing Clove
Development Strategy.

5.2.3       Goal 3: Reduce Income Poverty and Attain Overall Food Security
Unemployment is a widespread and persistent challenge in Zanzibar, currently affecting 7percent
of overall labour force population15. Some of the most critical concerns raised by stakeholders
are the high level of unemployment in Zanzibar, especially amongst the youth. This situation has
been linked to the low skills base and scarcity of affordable vocational and training centres, of
which only two in Unguja and one in Pemba exist.                        The limited employment opportunities in
both urban and rural areas also contribute to the unemployment situation in Zanzibar.
  Source: HBS (2004/05)
The unemployment rate of labour force includes persons unemployed but not seeking work.

Unemployment exacerbates the fragility of the livelihood profiles in Zanzibar, where households
typically have a low and undiversified income and livelihood portfolio. Rural households suffer
from this condition acutely, as they are often subjected to volatile agricultural conditions and
have limited access to farms and off-farm incomes. The condition is more severe for low asset
livelihood groups such as firewood collectors who have limited access to land and sea resources
and clove labourers and pickers who depend on the clove market for most of their cash income.

It also follows that where unemployment is persistent and livelihoods are fragile, food insecurity
also forms a challenge to the wellbeing. The food security status of households in Zanzibar is
precarious, with many of the poorest households having an extremely low level of income
flexibility that prevents them from coping with food and expenditure shocks. Moreover, the low
productivity of the agriculture and fishery sectors in Zanzibar poses a challenge to the stability,
availability and access to food in the Isles and the nutritional status of its residents. Whilst these
are all symptoms of overall poverty, food and nutrition insecurity has proven to be a factor that
deepens deprivation and lessens the ability of the poor to exit poverty and participate in economic
activities In addition it contributes to the weakening condition of HIV/AIDS infected persons.
In order to address the above issues, five operational targets have been developed as outlined in
Box 4.

Box 4. Operational Targets for Goal 3– Cluster I.
     Reduced overall unemployment rate from 7%in 2005 to 4% in 2010
     Increased gender sensitive youth training and employment
     Reduce population below basic needs poverty line from 49% (2005) to 25% (2010)
     Reduce population below food poverty line from 18% (2005) to 12% (2010)
     Decreased children with stunting from 23% (2005) to 12% (2010)

Some of the specific interventions for achieving these targets, as annexed, include strengthening
the policy and information environment relating to employment, promoting youth employment
and increasing gender balanced access to training and vocational education opportunities,
diversifying of rural livelihoods by promoting farm and off-farm income linkages and
opportunities, containing HIV/AIDS and substance abuse, fostering investments in the rural
economy, developing policies and programmes that target those vulnerable to food insecurity,
establishing an effective early warning and response mechanism for food insecurity.

5.3     Cluster 2: Social Services and Well-being

This cluster addresses the issues of human capability in terms of survival and access to social
services. Improving social services and well-being is a key to poverty reduction. A healthy and
educated population leads to increased productivity, better income distribution and a generally
improved standard of living.

In spite of increasing number of schools, both in urban and rural areas, equitable access has not
been achieved yet. Disparities in enrolment among districts are still wide and        the number of
disabled children enrolled at basic education level is very low. The number of              students,
particularly girls, attaining higher education is lower compared to the total population attending
basic education. The reasons for this occurrence are: the access to higher education is extremely
low, early marriages, dropouts, harassment and inadequate policy environment which is gender
sensitive. There are other observations on education. First, students are inadequately prepared for
employment and there is inadequate promotion of literacy among adult population, especially
women in rural areas.

The consultations have shown that there have been an increasing numbers of dispensaries and
related centres but, as a constraint, standards of services, mostly in the rural areas, are still very
low. Among the disadvantaged groups such as poor men and women, children, the disabled,
people with suffering from chronic illnesses and those under extreme poverty levels the situation
is even worse. Drug availability and affordability, especially for poor men and women, is still not
satisfactory.   Those affected and living with HIV/AIDS and the vulnerable groups face
difficulties in accessing good health care and services at different levels.

The health status of pregnant women, mothers and children is another area of MMR and CMR
concern. The level of quality of reproductive health services, particularly in rural areas and
among the most vulnerable groups, poor women and men, adolescents as well as youth, is still not
satisfactory. On mental health, there is a lot of room for improvement of institutional and human
resources management. In addition to these issues referral hospital is not well equipped.

The nutritional status of people, food availability and food affordability are the concern of many,
particularly children, pregnant women, vulnerable groups and those living with HIV/AIDS. Like
any other developing country, Zanzibar suffers from both protein energy malnutrition and

micronutrient malnutrition. Issues of access to and affordability of safe water, sanitation and
environment are important for a better livelihood of the people, especially poor men and women.
The current situation shows that accessibility to and affordability of safe water is still a challenge
at policy and intervention level. This has a gender implication as it increases workload for
women, withdrawal of girls from school and gender based harassment and violence. Planning
water supply schemes, conserving their sources, maintaining good sanitation standards, proper
management of solid waste, protection of the environment, housing schemes and human
settlement plans are better done with due consideration of population issues, pro poor and gender

For the old and vulnerable groups there must be access to essential services equal to the ordinary
person. There must be some form of social protection and safety-nets for these groups. For the
retirees, effort must be deployed to phase out gratuity backlog and speeding of timely issuance of
retiring benefits.

5.3.1 Broad Outcome and Goals
The social services and well-being broad outcome, goals, operational targets and cluster strategies
were formulated from issues raised during the first and second round consultations,
researches/studies and reviews of other relevant documents from MDAs. The broad outcome for
this cluster is improved social well-being and access to quality social services with emphasis
to the poor men and women and most vulnerable groups. Goals to achieve and sustained the
broad outcome are summarised below

Box 5. Goals for the Broad Outcome – Cluster II.

   Ensure equitable access to demand driven quality education, which is gender responsive.
   Improve health status including reproductive health, survival and well-being of children, women, men
    and vulnerable groups
   Increase access to clean, safe and affordable water especially to poor men and women, and most
    vulnerable groups
   Improve sanitation and sustainable environment
   Provide adequate and sustainable human settlement
   Improve food and nutrition security among the poorest, children and most vulnerable groups
   Strengthen and expand social security and safety-nets for the disadvantaged and most vulnerable
   Promote and preserve historical, cultural and natural heritage and sports for social and economic

Seventeen operational targets have been designed to achieve the goals. These operational targets
will be achieved by implementing specific interventions identified. The operational targets and
strategies to achieve the above goals are as follows:

5.3.2 Goal 1: Ensure equitable access to demand driven quality education, which is gender
In order to attain equitable access to quality education for both boys and girls, there is a need to
reinforce existing efforts by providing necessary inputs in the education system. Very broadly this
implies enhancement of capacity building at all levels, institutional reforms and aggressive
advocacy to include the participation of private sector and communities. At the moment
enrolment of pre-school education is still low and teacher quality is inadequate. Most of these
schools are in urban areas denying access to rural children. Equally there is inequity of access to
education for girls and children with special needs at all levels. Quality of education is still low
being affected by inadequate numbers of qualified teachers, equipment, laboratory and library
facilities. Furthermore, school leavers are not fully prepared for the world of work. Another
challenge to equitable access is the prevalence of diseases, malnutrition, HIV/AIDS/STD,
inadequate change of attitude regarding reproductive health, and gender based violence. These
have negative affects on access to school and achievement.

Box 6. Operational Targets for Goal 1– Cluster II.

A. Early Childhood Care and Development.
   Increased Gross Enrolment Rate for pre-school from 15.9% in 2005 to 50% in 2010
   Increased Net Enrolment Rate from 77%in 2005 to 90% in 2010
   Increased proportion of children with disabilities, enrolled, attend and completing school.
B. Secondary Education
   Increased transition rate at form two examinations from 47.6% in 2005 to 70% by 2010
   Increased proportion of girls who join low and higher secondary education
   Increased number of qualified secondary school teachers
   Increased quality of secondary education and promote acquisition of knowledge
   Increased proportion of orphans and vulnerable children and children with disabilities who join
    secondary education

C. Science and Technology

   Enhanced teaching of science, mathematic and technology in schools
   Information and Communications Technology
   Expanded access to ICT for education development.
F   Non-Formal Education
   Increased literacy rate from 75.8% in 2005 to 100% in 2010.
   Increased literacy rate of women from 69.8% in 2005 to 100% in 2010
G   Vocational Education and Training
   Enhanced entrepreneurial skills among youth.
H   Tertiary Education
   Increase proportion of graduates of tertiary education institutions
I   Quality education
   Improved quality of education at all level
J   Institutional Reform
   Improved efficiency in the delivery of educational services.
K   Cross Cutting Issues
   Integrated cross cutting issue into education system. (Gender, environment, population, HIV/AIDS,
    employment, disaster preparedness).

The involvement of all stakeholders in the provision and funding of education at all levels is
essential in order to attain equality of access to all groups and improvement of quality. Training
of teachers and other players in the services of education must be enhanced. For the advancement
of science, mathematics, technical and vocational education, there must a strategy that will
provide incentive schemes to attract more teachers into these fields. To keep up pace with
advancement of knowledge, plans have to be instituted in support of research in science,
technology at all other levels of the Government. Appropriate curriculum at all levels, provision
of laboratory facilities, equipment, textbooks and the introduction of alternative means of
delivering education, including the use of ICT, are among the key interventions. Programmes to
combat the spread of various diseases, including HIV/AIDS/STD, should be initiated to
discourage early marriages and promote gender equality. In order to improve efficiency in the
delivery of educational services, there must be a promotion of sector wide approach in planning
and financing. Decentralising of school management and changing the role of central level
bodies to facilitation, monitoring and evaluation will enhance equity of access and quality in

5.3.3   Goal 2. Improved health status including Reproductive Health, survival and well-being
        of children, women and vulnerable groups

For a society to take an active role in all aspects of a country’s development, a health well-being
of all children, women and the vulnerable groups is essential. Currently infant, under -five and
maternal mortality rates are still high. Malaria, which is the main cause of such incidences, is
also high. There is a limited awareness on sexual and reproductive health facilities and no policy
to address these issues. Similarly programmes for human resources development are not
comprehensive enough to produce the quality of human resources demanded at different levels.
Shortages of equipment and essential drugs further inhibits the advancement in the provision of
health services.

Box 7. Operational Target for Goal 2– Cluster II.

A. Infant and Child Health.
   Reduced infant mortality from 61/1000 (2005) to 57/1000 in 2010.
   Reduced children (under five) mortality rate from 101/1000 in 2005 to 71/1000 by 2010.
B. Maternal and Reproductive Health
   Reduced Maternal Mortality from 377/100,000 in 1999 to 251/100,000 in 2010.
   Increased percentage of births delivered in health facilities from 49% in 2005 to 60% in 2010.
C. Communicable Diseases
   Reduced HIV prevalence among 15-24 years pregnant women from 1% in 2005 to 0.5 % in 2010.
   Reduced HIV and AIDS prevalence among women and men aged 15 – 35 years from 5.1percent in
    2005 to 2.5% by 2010
   Increased knowledge on HIV and AIDS transmission in the general population
   Reduced HIV and AIDS stigma
   Reduced incidence of malaria from 44.6% (2004) to 35% (2010)
   Reduced TB incidence by 2010
D. Non Communicable Diseases (NCD)
   Reduced prevalence of NCD
E. Substance Abuse
   Reduced prevalence of substance abuse among youth
F. Human Resource Development
   Human Resource and management health board and committee operational and effective

It is essential to increase immunization coverage for all antigens. Likewise programmes to
strengthen and expand child survival, protection and development are required. There must be
improvement of access to quality of maternal health services including antenatal care, emergency
obstetric care, post abortion care, post natal care and newborn care. Reported malaria cases are
still high, and the need to improve its management is essential. Strengthening and scaling-up of
prevention and treatment of communicable and non-communicable diseases is another area of
intervention. Increasing prevalence of substance abuse among youths calls for the design and
implementation of harm reduction programs to address this problem. In this vein, strengthening
capacity of the Chief Government Chemist is crucial.

Since HIV/AIDS is still a threat, efforts are needed to facilitate implementation of national
HIV/AIDS policy and strategic plan. Attention to be given to women and those most at risk in
the population. A substantial work has been done in dissemination of information on HIV/AIDS,
yet advocacy and communication strategy must be strengthened particularly to combat the
increasing trend of reported cases, stigma and discrimination of PLHA. There is a shortage of
skilled personnel and professionals at all levels which calls for the health sector reform

5.3.4      Goal 3: Increase access to clean, safe and affordable water
Water is essential commodity and its availability and accessibility must be guaranteed to all.
Similarly water must be of good quality in terms of standards of safety, cleanliness and reliability.

Box 8. Operational Targets for Goal 3– Cluster II.
        Increased access to clean, safe and sustainable water supply in urban areas from 75% in 2004/5 to
         90%, in 201016.
        Increased access to clean, safe and sustainable water supply in rural areas from 51% in 2004/5 to
         65%, in 2010.

In order to address these issues and achieve earmarked operational targets, first and foremost an
implementation of water policy and water sector reforms must start. All related legal and
regulatory frameworks are to be put in place. These will strengthen management of schemes,
(including exploitation of water resources and protection of catchments areas). Better
management of water supply will also involve efficient rehabilitation and regular maintenance of
infrastructure in both urban and rural areas. Water is a prerequisite for the sustainability of a well-
being of a society; hence there will be efforts to strengthen public-private partnership in its

  This data refers to access to clean and safe water within a radius of 400 meters for piped and protected water. The HBS refers to
access to water within 1 kilometre radius and includes seasonal wells.

development, supply and financing. Henceforth, implementation of user fees will be expedited.
Under this intervention plan, there will be an improvement of the system of water supply which is
community managed. For long term water supply sustainability, there shall be a strengthening of
human resources capacity in management, rehabilitation, regular maintenance of water supply
infrastructure and the introduction of appropriate and affordable technology.

5.3.5    Goal 4: Improved sanitation and sustainable environment.
Proper and well managed sanitation facilities are important for a sustained healthy society.
Currently there is a limited access to sanitation facilities in both urban and rural areas. Weak
management of delivery of sanitation services is endangering not only the health within the
communities it is also a retardant to the creation of an enabling environment for the promotion of
trade and investment. Industrial and medical waste is a hazardous environmental concern.
Sanitation levels in industry, major businesses and medical establishments are not to the

Deforestation, environmental degradation, excessive exploitation of non – renewable energy
sources further endangers the future livelihood of the many in the rural areas.
For those communities whose main occupation is fishing and exploitation of other marine
resources , destruction of oceans by the use of inappropriate fishing gear and disposal of wastes is
a major concern to their livelihood.

Box 9. Operational Targets for Goal 4– Cluster II.

   All schools and other public places have adequate sanitary facilities by 2010.
   Increased proportion of households with access to basic sanitation from 66.8% in 2005 to 83% by 2010.
   Increased provision and management of sewerage facilities.
   Reduced environmental degradation.

All public places, for example, schools, hospitals, clinics and market places are to have 100
percent levels of sanitation standards acceptable for a sustainable management of solid and liquid
wastes. Similarly in larger business areas, there must be policies to encourage the use of modern
sewage and solid waste treatment methods which are environmental friendly. At the village level,
there will be a promotion in the use of Ventilated Improved Pits (VIPs).

These interventions will be better addressed by enforcement of laws and regulations on the
provision of sanitation facilities and environmental management. To increase public awareness,
hygiene and environmental education will be promoted into water and sanitation delivery.
Promotion of public-private partnership, CSO and communities will be enhanced in sanitation
delivery, environmental and solid waste management.

5.3.6   Goal 5: Adequate and sustainable human settlements provided
Land use plan is not enforced and there is an increase in unplanned human settlements with little
concern on other uses. This is happening in both, rural and urban areas. Further more, there is a
weak inter-institutional linkage and institutional coordination in implementing settlement plans.
Due to inadequate human and financial capacity there are inadequate housing and settlement

Box 10. Operational targets for goal 5 – Cluster II.

       Improved management of urban and rural settlements
       Increased number of women and men with decent shelter.

There shall be development and implementation of housing and urban development policy that
will ensure an increased and improved access to adequate and affordable settlement with
particular focus in rural areas and disadvantaged communities. All those concerned must see that
there are improved institutional coordination activities in implementing settlement plan.

A comprehensive plan will involve the private and non profit sector, community based
organization and other actors to provide adequate shelters for people, particularly those belonging
to disadvantaged groups. Establishment of credit facilities for human settlement will further assist
the provision of decent housing for both men and women.

5.3.8   Goal 6: Improve food and nutrition security among the poorest, pregnant women,
        children and most vulnerable groups
The staple food in Zanzibar is rice, for which its domestic production is inadequate to meet daily
needs. Poultry products, meat, fish, legumes and green vegetables are main sources of protein and
vitamin. However, availability and affordability is a major concern among women (particularly
pregnant women), children and the most vulnerable groups. Within the society, there is a lack of

awareness in nutritional issues/diets. Nutritional habits do not include the consideration of
balanced diet and/or nutritional requirements for special cases.

For those suffering from long illnesses, those affected with HIV/AIDS, with diseases such as
malaria and diarrhoea, recovering is slow due to insufficient dietary standards, poor nutrition
levels and insecurity to food accessibility.
Box 11. Operational Targets for goal 6– Cluster II.

   Reduced prevalence of micro-nutrient deficiency among under five children from .. .in 2005 percent to
    …% by ….% 2010…….
   Reduced prevalence of stunting among under five children from 23% in 2005 to 10%by 2010
   Reduced prevalence of wasting among under five children from 6.1% in 2005 to 2%by 2010.
   Increased access to food support and nutritional supplements for PLHA and the most vulnerable
    pregnant women.
   Reduced level of malnutrition among under five children and pregnant women

Building awareness and promoting sound feeding and weaning practices for infants and under
five children should be a major concern. Health and nutrition education to the communities and
strengthening IMCI programmes should be enhanced. Likewise those responsible should create
and build the capacity of Government and private sector/CSO in addressing food security and
nutrition problems particularly for the most vulnerable including pregnant women, the terminally
ill PLHAs and the community at large.

5.3.8   Goal 7: Strengthening and expanding social security and safety nets for the
        disadvantaged and most vulnerable population groups

Currently there are inadequate interventions to support the disadvantaged and most vulnerable
groups. There is a poor quality of life among them. For those retiring from public services,
gratuities are not forthcoming on timely basis thus exposing them to hardships. In addition to this
issue, there is a large backlog of gratuity payment to retirees. The social security schemes have
little coverage. They do not include the self employed and casual labourers. Since contribution to
the Zanzibar Social Security Fund (ZSSF) is less than 10percent of the working population, it is
evident that a large sector of the community does not have any form of safety-nets.

Box 12. Operational Targets for Goal 7– Cluster II.

Safety nets
   Strengthened and expanded welfare support to the most vulnerable
   Strengthened capacity of families and communities to effectively support the most vulnerable
Social security
   Reduced backlog and ensure prompt payment of gratuity for retirees
   Expanded coverage of social security schemes

Efforts will be deployed that will lead to the establishment and implementation of programmes
to enhance economic empowerment of the disadvantaged and most vulnerable groups. This is a
long term plan. For the gratuity back log, the Government will clear the outstanding and pay
pensioners timely. The Government will strengthen networking with CSOs dealing with matters
of disadvantaged and most vulnerable groups. Also the Government will implement a social
security policy.

5.3.9   Goal: 8 Promote and preserve historical, cultural and natural heritage and sports for
        social and economic development.
A full exploitation of natural and cultural heritage is lacking. Likewise Zanzibar is lagging behind
in sports. There is a shortage of resources, in terms of human capacity, equipment and
promotional strategy. The use of Kiswahili is spreading to other parts of Africa and is
increasingly taking position at the international scenes. All these areas have potential to advance
the economy and the culture of the country.

Box 13. Operational Targets for Goal 8– Cluster II.
       Policies, strategies and legal framework for culture and sports development in place and
        operational by 2010
       Cultural and historical sites promoted and preserved by 2010
       Improved sports gears, facilities and training by 2010
       Participated effectively in regional and international tournaments by 2010
       Kiswahili language promoted at local and international level by 2010

In order to achieve the above mentioned operational targets, efforts are being made to develop
and implement policies and institute legal framework for restoration and exploitation of natural

heritage sites, cultural activities and antiquities. Traditional cultural activities and historical sites
are to be promoted to enhance the development of sustainable eco-tourism.

Sports and music have an important place in the community and hence its promotion in terms of
capacity building, provision of essential gears, involving Private Sector/CSO and all groups will
further improve performance and increase economic significance. To ensure ownership, plans
will be made to promote and protect intellectual property rights.

The national media, the cultural and national heritage institutions are still not operating with full
utilization of ICT. In consideration of their significance to conservation and dissemination of
information and effective promotion activities, there shall be developed a system of training and
retraining of staff on mass media, culture and sports in the use of ICT.

Activities of the media and culture can be extended to encompass the participation of
disadvantaged groups and can be accommodated in performances. The power of the media and
cultural performances can be used to advocate combating the spread of AIDS and other NCDs.

5.4        Cluster 3: Good Governance and National Unity

Good Governance is a broad concept that captures issues of promotion of the rule of law and
development of democratic and participatory government processes. The major principles of good
governance include transparency, accountability and predictability of government actors and

Governance is the system of values, policies and institutions by which a society manages its
economic, political and social affairs through interactions within and among the state, civil
society and private sector. It is the way a society organizes itself to make and implement
decisions achieving mutual understanding, agreement and action. It comprises the mechanisms
and processes for citizens and groups to articulate their interests, mediate their differences and
exercise their legal rights and obligations. It is the rules, institutions and practices that set limits
and provide incentives for individuals, organizations and firms. Governance, including its social,
political and economic dimensions, operates at every level of human enterprise.

ZPRP considered Good Governance to be among the critical areas of extensive consultations with
stakeholders who raised a number of issues for intervention. Broad outcome for this cluster is to
ensure a society governed by the rule of law and a Government that is predictable, transparent
and accountable. To achieve the broad outcome, box 13 outlines goals that have been designed to
be achieved.

Box 14. Goals for the Broad Outcome – Cluster III.
    Ensure inclusiveness in the governance and in the development process
    Equitable allocation of public resources and improved service delivery and civil service reform
    Respect for the Rule of Law and Access to Justice
    Improve public safety and security
    Increase the capacity of Government Institutions and actors
    Combat corruption and its manifestations and strengthen leadership ethics
    Strengthen Legal framework to support economic growth
    Strengthen the institutions of oversight and accountability, including improving accessing to information
    Provision of timely and reliable data for monitoring and evaluating Government activities and governance
    Inculcate good governance practices at all levels
    Promote and observe human rights

5.4.1    Goal 1: Ensure inclusiveness in the governance and in the development process
To achieve goal one, there are seven operational targets as indicated in the box below.
Consultations with stakeholders’ revealed impelling need for people to participate more fully in
the processes that affect them, ensures democracy and actively engage people at the grass root
level in policy making and service delivery.

Box 15. Operational Targets for Goal 1– Cluster III.

   Enhanced decentralization functions at the District level
   Enhanced Public Private Partnership
   National heritage policy developed

The interventions to meet this goal are specified in the appendix and they include: developing and
implementing a decentralization strategy, strengthening the consultative process in law making
and revision, reviewing and implementing local government reforms, implement affirmative

action programmes for hiring and promotion in the civil service, and revise laws and policies to
mandate inclusion of representatives from vulnerable groups in decision making bodies.

5.4.2   Goal 2: Equitable allocation of public resources and improved service delivery and civil
        service reform
Six operational targets are set for goal 2 as indicated in the box below. The significant challenges
in service delivery as raised during consultations with stakeholders include inadequate resource
allocation for public service provision, inadequate coordination in policy formulation and
implementation, and inadequate human resource management and inadequate access to basic
services by vulnerable groups.

Box16. : Operational target for Goal 2– Cluster III.

   Enhanced services delivery at local level

The interventions to achieve this goal include developing new mechanisms for revenue collection
between regions and all level of Government, adhere to and ensure pro-poor and pro-gender
budget implementation, enhance and implement programme for civil service reform, and develop
mechanism to identify and remove barriers to accessing services to vulnerable groups.

5.4.3   Goal 3: Respect for the rule of law and access to justice
Operational targets for this goal are indicated in the Box 16. Issues raised during consultation
were ineffectiveness of Law Reform Commission, lack of consolidation of amended laws,
ignorance of the rule of law and limited access to legal services by vulnerable groups and poor
people. Significant reforms have been made to the institutions of justice in Zanzibar. More need
to be done to ensure and improve public confidence in the administration of justice.

Box 17. Operational Targets for Goal 3 – Cluster III.

   Enhanced working environment and capacity of the Judiciary in Zanzibar
   Enhanced working environment and capacity of the Law Enforcement Agencies in Zanzibar
   Government printing capacity strengthened

The interventions identified are directed at ensuring that laws reflect the realities of a developing
Zanzibar, are understood and are properly enforced and applied. The interventions include

strengthening the independent office of the DPP, improving court performance and administration
facilities; improving law making and revision, including the development of an effective law
review commission; improving legal literacy among members of the public, promoting religious,
cultural and political tolerance, improving the printing and distribution of legislation, including
regulations, establishing a system of legal aid, strengthen the Attorney General’s Chamber, the
Office of the Mufti and Commission for WAKF and Trust Property, etc.

5.4.4   Goal 4: Improve public safety and security
There is a clear desire to see a system of governance that is able to anticipate and respond
effectively to threats to public safety and security. Development of Zanzibar’s potential as a
tourist destination and desirable place to invest and do business, depends to a large extent on the
degree to which Zanzibar is able to maintain a reputation as a safe, peaceful and stable place to
visit, live and do business. There are three operational targets for this goal.

Box 18. Operational Targets for Goal 4 – Cluster III.

   Peace and tranquillity enhanced in Zanzibar
   Improved Disaster Management and early warning system.
   Enhanced Consumer protection measures

The interventions set to address this goal include developing and implementing an effective anti-
smuggling campaign (that will reduce the flow of illicit drugs and small arms to the islands),
modernizing prison system and facilities, adopt a rehabilitative philosophy and develop
community based sanctions, implement a strategy for national crime prevention , improving
police response and investigative capacity, supporting and strengthening the Disaster
Management Unit and developing an early warning system,

5.4.5   Goal 5: Increase of the capacity of Government Institutions and actors
Consultations with stakeholders indicated significant capacity constraints at all levels. There are
insufficient resources in MDA to carry out day to day operations let alone for implementing the
broad scale reforms envisioned. Buildings and equipment are in poor repair and are often ill
suited for the functions intended. Capacity constraints were expressed to limit the effectiveness
of non-state actors as well. Three operational targets for this goal were identified.

Box 19. Operational Targets for Goal 5 – Cluster III.

       Strengthened Government institutions and actors
       Strengthened central ministries coordination capacity
       Mainstreamed HIV/AIDS in policies and programmes

In order for Zanzibar to improve in these areas significant capacity deficits must be remedied.
This can be achieved through interventions such as upgrading existing physical structures,
building new ones where necessary and modernize office equipment and procedures;
reorganization of MDA to improve operational efficiency and reduce the duplication of work,
promoting public-private partnership in provision of services, and strengthen capacity of Chief
Minister’s Office to Coordinate Government activities.

5.4.6       Goal 6: Combat corruption and its manifestation and strengthen leadership ethics
The consultations revealed concerns about the level of corruption in government and private
institutions. The existence of corruption creates barriers to access of basic services like health
service. Corruption in the justice system was identified as a particular concern. The existence of
corrupt practices undermines public confidence in the administration, the operation of the rule of
law and creates real barriers to accessing justice services. Finally corruption in government
operations siphons off limited resources available for development activities, results in unequal
enforcement of Government policies and laws, and can add unnecessary complexity to regulatory
processes. A reduction in corruption is necessary to the development of a transparent and
accountable system of Government. Operational targets for this goal are indicated in the box

Box 20. Operational Targets for Goal 6 – Cluster III.

        Enhanced fairness in the society

The following interventions have been identified as central to achieving this goal: expediting
enactment of the anticorruption and leadership code legislation, enforcing the Public Procurement
and Disposal of Public Assets Act, developing and implementing anti-corruption strategies and
codes of ethics for police, prison staff, the judiciary, legal counsel prosecutors and revenue
collectors, and strengthen the Office of Controller and Auditor General.

5.4.7       Goal 7: Strengthen legal framework to support economic growth
Zanzibar needs to review its laws, legal processes and procedures to ensure a relevant, transparent
and responsive system that protects interests of Zanzibar while providing an environment
conducive to responsive economic development by the private sector. Eight operational targets
for this goal are identified as indicated below.

Box 21. Operational Target for Goal 7 – Cluster III.

       Reviewed Commercial laws, regulations, Environmental policy and legislative.

In order to achieve this goal, interventions have been identified. They include reviewing and
updating commercial and law of contract, banking law and laws of bankruptcy; reviewing and
improving regulatory framework, establishing and operationalizing commercial court, enforce
property rights, clarify roles and responsibilities of various levels of government in regard to
revenue collection and service provision, to ensure needed services are provided to business and

5.4.8       Goal 8: Strengthen the institutions of oversight and accountability, including
            improving accessing to information
Government operations should be transparent and Government officials must be held
accountable. Separate and independent oversight mechanisms/institutions should be promoted. A
key aspect of good governance is transparency. A cornerstone of transparency is access to
information. People need to know the information that Government bases its decisions upon.
People need to know how Government functions, how it allocates resources, how it sets and
manages budgets, what the laws are and how they are enforced, what their rights are, what they
should expect from Government Departments and services, who is responsible for what and how
they can complain or seek redress for wrongs done.                Much information is currently made
available through radio and print media. Existing means of disseminating information are
inadequate as revealed during consultations. Operational targets for this goal are indicated below:

Box 22. Operational Targets for Goal 8 – Cluster III.

        Enhanced accountability and transparency
        Enhanced Public awareness and information sharing

Key interventions identified include supporting the development of reliable data collection and
analysis mechanism to enable fact based analysis and decision making, improving capacity of
non-state actors to effectively implement, monitor, evaluate Government policies and strategies.
Other interventions are implementing information policy, developing and implementing Freedom
of Information Act, developing and implementing a national ICT policy, establishing and
strengthening Government web site, reviewing Zanzibar Broadcasting Act of 1997.

5.4.9      Goal 9: Provision of timely and reliable data for monitoring and evaluating
           Government activities and governance initiatives
During consultations lack of reliable, fact-based analysis of government performance in some
areas, particularly with respect to the operation of the justice system and Government institutions
in general were pointed out. The conduct of surveys like the Household Budget Survey (HBS)
and the current move to centralize statistical services in the office of the Chief Government
Statistician are positive steps towards improving this situation. These strategies are necessary to
cement these gains and provide a platform upon which to achieve this important goal. Operational
targets to address this goal are as stated in the Box 23 below:.

Box 23. Operational Target for Goal 9 – Cluster III.

       Improved Monitoring and evaluation of governance activities.

The key interventions to the goal include developing a Governance Monitoring and
Evaluation Framework, supporting and strengthening the office of Chief Government
Statistician, establishing and strengthening Information, Education and Communications
(IEC) at all levels.

5.4.10 Goal 10: Inculcate good governance practices at all levels
During the consultations, it was proposed that good governance must be at the centre of
development policy. The link between these desires and good governance is not apparent
to the rural communities. An effort must be made to engage all the peoples of Zanzibar
in understanding how important good governance is in improving their lives and their
roles and responsibilities. Good governance practices must become the rule, not the

exception. The goal of achieving good governance must underlie Government actions,
decisions and policies of Government and non-state actors.

Box 24. Operational Target for Goal 10 – Cluster III.

   Strengthened leadership and commitment to good governance at all levels

The proposed interventions include reviewing and updating Good Governance Strategic Plan,
developing Good Governance Policy, raising awareness of the principles of good governance,
engaging media awareness and to promote good governance for Government and NSAs.

5.4.11 Goal 11: Promote and observe human rights
There are some allegations of Human Rights abuses in Zanzibar. The mechanisms for responding
when violations do occur are inadequate.          During the consultation process concerns were
expressed that people continue to experience discrimination on the basis of gender, age,
HIV/AIDS status, political affiliation, and economic status. Three operational targets for this goal
are indicated in box 25 below.

Box 25. Operational Targets for Goal 11 – Cluster III.

   Enhanced Human rights.
   Enhanced productive and decent work/employment for all.
   Enhanced fair treatment for all

Some key interventions to address this issue include: establishment of Human Rights
Commission in Zanzibar, provision of legal advocacy and legal aid services to those whose rights
have been violated, and provision of training on human rights to law students, lawyers, judges,
other legal professionals, police and special departments. Other interventions are to institute laws
to address issues of HIV and AIDS, stigma and discrimination of People Living With HIV and
Aids (PLWA) and orphans in communities and workplaces and to improve justice system
capacity to deal with sensitive cases involving violence against women, children and other
vulnerable groups.


6.1     Introduction

This chapter explains the implementation arrangements of MKUZA in the context of: (i) cluster
and outcome approach; (ii) harmonized and aligned key national processes namely: policy and
planning, Public Expenditure Review and Budgeting, monitoring and evaluation; (iii) Joint
Assistance Strategy; (iv) review of on going core reforms and envisaged new reforms whenever
necessary in each cluster and across clusters; and (v) need for capacity development at all levels
of government and key non-state actors.

Capacity development is the key driver for successful implementation of MKUZA. The lead and
convening actors for each cluster will be identified through the Public Expenditure Review
process, which is linked to budgeting and implementation. The outcome/cluster based PER
process will be the forum for promoting dialogue and cross-sectoral linkages among the planning
and budget departments of sectoral ministries. The process will allow the alignment of sector
budgets, MTEFs and MKUZA operational targets and outcomes.

6.2     Cluster and Outcome Approach

The new cluster-based and outcome approach adopted by MKUZA presents a major shift from its
predecessor ZPRP. Its implementation requires close collaboration of sectors, MDAs and non-
state actors working under each cluster. The collaboration mechanism is an opportunity to
strengthen linkages and maximize synergies in implementation process, which will ultimately
reduce unnecessary duplications, wastage of resources and reduction of transaction costs. The
focus will be on priority “results/outcomes” rather than priority “sector” because the bottom line
is that people served by government expect results in form of goods and services delivered.

6.2.1 Cluster I: Growth and Reduction of Income Poverty
All actors involved in the direct production sectors; tourism, trade, agriculture and infrastructure
will collaborate through stakeholders’ dialogue in planning, budgeting and implementation of
activities, which lead to achievement of outcomes articulated under the cluster. The stakeholders
involved are included as actors in the matrix of this document. The detailed milestones for

implementing this cluster will be articulated in the growth strategy, which is anchored on the
growth cluster of MKUZA. The cross-cutting themes namely: food security, HIV and AIDS,
population, environment and gender will also be mainstreamed in the growth strategy.

6.2.2 Cluster II: Social Services and Well-being
Actors involved in provision of social services will collaborate through stakeholders dialogue in
planning, budgeting and implementation of activities, which lead to achievement of outcomes
articulated under the cluster. The detailed milestones for implementing this cluster will be guided
by the current and envisaged reforms in sectors of education, health, water and cross-cutting
themes namely: population, food security, HIV and AIDS, environment and gender.

6.2.3 Cluster III: Good governance and National unity
Governance issues cut across government structures, legislative bodies and judicial system. The
implementation of interventions under this cluster has a bearing on the other clusters. It is
important to continue fostering autonomy and strengthening capacity of the major governance
organs. Already the governance reforms are underway. Reforms in Political system, business
environment, public expenditure management, public service, local government, etc, will make a
critical contribution to the success of MKUZA. The key actors are required to collaborate and
scale up the efforts to implement the envisaged interventions articulated under this cluster.

6.3     Roles and Responsibilities of Key Actors

This section discusses only the roles of Key stakeholders and is not an exhaustive list. The House
of Representatives will continue to oversee government business. However, the capacity of the
representatives will be strengthened through imparting skills, training and raising awareness on
critical development issues. The House of Representatives as an institution will be strengthened
through provision of new working tools such as ICT, keeping regulations up to date, etc.

The MDAs will continue to play a lead role in policy formulation, management of public
resource, implementation and monitoring of progress made. However, in order to improve
performance of MDAs, there is a need to increase participation of non-state actors in policy
discussions, budget processes, implementation and monitoring. Also, the MDAs staff requires re-
tooling to improve their capacity. The government is committed to improve these processes to
enable increased participation of stakeholders and promote transparency and accountability of

MDAs to the citizens they serve. The cluster approach will be used as a preferred modality for

The private sector will continue to lead the growth (wealth creation) process. It will work closely
with the government through the established dialogue processes. More specific the public-private
sector partnership will be scaled up through the established Business Council and Chamber of
Commerce. Appropriate mechanisms to foster participation by the growing number of SMEs will
be explored. The growth strategy under NSGRP will provide a road map for further dialogue and
implementation between the public and private sectors. The private sector will provide its views
on business environment (regulations, procedures, tax and financial sector, etc). It will also
increase its participation in provision of social and economic services and abide to the best
practices of corporate responsibilities. The private sector expects further support from
government for its development and expansion. The government will create enabling business
environment for the private sector to thrive (profit making, retained earnings after paying taxes)
and contribute significantly to the wealth creation process. Also, government-private sector
partnership will enable the private sector to seek support from development partners to provide a
link with private businesses in their home countries.

The civil society organizations, which include the Faith-based Organizations (FBOs) and
Community-Based Organizations (CBOs) will continue to participate in policy and planning,
budget discussions, implementation and monitoring processes. The CSOs contribution is valuable
in shaping policy, public sector interventions and implementation of activities to achieve
MKUZA targets. More space and enabling environment will be created for CSOs to scale up their
contribution to national development. The government-CSOs partnership will be strengthened
and nurtured through capacity development. The capacity of CSOs will be improved to enable
them to fully engage in development process.

Development partners are expected to continue to support national efforts for growth and
reduction of poverty. The expected support will be in form of financial resources and demand-
driven technical assistance. The support on technical assistance will focus on building local
capacity to manage the development process. The participation of development partners will
follow the JAS principles and MKUZA clusters. The national processes for dialogue are open to
development partners to participate.

6.4     Harmonized and Aligned Key National Processes: Policy and Planning, Public
        Expenditure Review and Budgeting, Monitoring and Evaluation

The government will work towards internal alignment of the budget process and systems to
MKUZA. Effective implementation of MKUZA depends to the extent, which the resource
allocation will be aligned to priority interventions. New innovative systems of resource allocation
will be sought and put in place to facilitate resource allocation, tracking and monitoring and
reporting. The current monitoring system will also be reviewed and aligned to MKUZA and
Public Expenditure Review process. A document that explains the details of the alignment and
links among the key processes will be developed before 2007/08 budget to guide the
implementers in government. Including the mechanisms for coordinating the planning and
implementation of the crosscutting issues such of population, food security, HIV and AIDS,
environment and gender.

In addition, the government of Zanzibar and URT will work closely to align policy and planning
processes, budgeting systems and monitoring systems. Already, MKUZA is aligned with
MKUKUTA in terms of approach and time framework i.e. 2010. Other processes to be aligned
include dialogue of Public Expenditure Review, MKUZA monitoring and evaluation system and
core reforms.

6.5     Principles of the Joint Assistance Strategy

The JAS is a new guiding framework for the government and development partners in managing
and enhancing Aid effectiveness for development. The JAS implementation calls for further
harmonization and alignment of development processes between Zanzibar and Mainland.
Zanzibar and the development partners will also work closely to align Aid and national priorities.
The Government of Zanzibar will work closely with URT to ensure that processes are
harmonized; foreign resources are mobilized and properly allocated to the two parts of the Union.
The government will strengthen its office in Dar es Salaam and MOFEA to be able to engage
effectively with development partners and URT in implementing the JAS.

6.6.      Review of Ongoing Core Reforms and Envisaged New Reforms

Achievement of MKUZA outcomes and targets require a “change” in the way government and
other key actors conduct their business. Business as usual will not enable the government and
other key actors to deliver the required services to the Zanzibaris. In recognition of this reality,
the government is committed to continue to implement on going reforms, and identify new
reforms needed to fast track the implementation of MKUZA. In order to undertake reforms the
government will engage with URT and development partners to ensure that some of the reforms,
which have been implemented in Mainland and they are relevant to Zanzibar are rolled-out to
Zanzibar. Also, the government would like to appeal for increased support from development
partners in implementing on going reforms and any new reforms, which will be designed in the

6.7.      Structure

The MoFEA will be responsible for overall coordination. In keeping with the principles of a
cluster and outcome approach, harmonization and alignment of policy, planning, and expenditure
review and budgeting, monitoring and evaluation the current process of implementation (PER
review) and monitoring of MKUZA needs to be reviewed. The PER review process will the basis
for consultative reviews of budgets and priority interventions by MDAs based on MKUZA
outcome clusters. MKUZA represents a multi-sectoral/outcome approach and a cluster based
PER process will provide the means for sectors to collaborate in implementation by harmonizing
and aligning the allocation of resources and analysis of progress towards MKUZA targets and

Membership of each Cluster Working Group, including the selection of lead sectors will be based
on contributions to each cluster and would be finalized following a review of the entire
implementation and MKUZA Monitoring System to align with the MKUZA outcome based
approach. Participation by CSOs and Non State Actors in the budgeting, implementation and
review process will be promoted as will the involvement of communities (local level actors).

Outputs of the PER review process would feed into the comprehensive MKUZA Monitoring
System. In turn, the results of the MKUZA Monitoring System that includes analysis and
recommendations for improved effectiveness and efficiency of development interventions will
feed into the work of the PER working groups. The figure below is linked to the illustration in
the M&E chapter.

Figure: Implementation Arrangements

                         STAKEHOLDER’S FORUM                                      Monitoring System

             Poverty                      Social Well Being                 Governance
           PER Cluster                      PER Cluster                     PER Cluster
          Working Group                    Working Group                   Working Group

   MDAs      Non State   Private   MDAs      Non State   Private    MDAs      Non State    Private
              Actors     sector               Actors     sector                Actors      sector


7.1     Introduction

This chapter highlights the main issues concerning ZSGRP coordination as well as Monitoring
and Evaluation (M&E). Coordination between the implementation of ZSGRP and the budget
process, which involve MDAs and various stakeholders, is important for the achievement of
ZSGRP. The MKUZA Monitoring System (MMS) will enable the Government and other
stakeholders to measure inputs, intermediate outputs, broad outcomes and impact at each relevant
level of implementation. The MMS, its structure, membership and Terms of Reference will be
elaborated in a separate document.

7.2     The Coordination

The overall coordination of ZSGRP is carried out by the Secretariat, which is chaired by the
Deputy Principal Secretary responsible for planning in MoFEA. The Coordinator works closely
with the Technical Working Groups (TWGs) of the MMS as well as the thematic PER Working
Groups. The Budget Department, the MDAs and the Secretariat will work jointly to ensure that
their MDAs annual plans and MTEF are in conformity with the ZSGRP operational targets.

7.3     Monitoring and Evaluation of the ZSGRP

The ZSGRP monitoring system is managed by a Secretariat and four TWGs. Members to the
TWGs come from all Ministries, Departments and Agencies, academic institutions, civil society,
DP and the private sector. Indicators for monitoring the progress of ZSGRP are to be developed.
The indicators will include core indicators for each cluster as well as additional sector specific
indicators provided by other stakeholders. The Participatory Service Delivery Assessment
(PSDA) is adopted in the ZSGRP as a feedback mechanism from the beneficiaries of the services
to the service providers. In a bid to accommodate the voices of the poor in the implementation of
the ZSGRP, PSDA will be carried out annually to evaluate service delivery. The previous PMS
TWGs included:
(i)    The Census, Surveys, Routine Data and Community Based Management Information
       System TWG.
(ii)   The PER/MTEF and Stakeholder Forum Technical Working Group.

(iii) The Research, Analysis and Advisory TWG (RAATWG).
(iv)     The Information Education and Communication TWG.

7.4.      Monitoring at Various Levels

7.4.1     District Level
At the District level, the District Administrative Office is the Secretariat to the District ZSGRP
team, which include the District Planning Committee. The District Planning Committee will
implement its plan and M&E activities as part of the ZSGRP. These activities will need inputs,
outputs and outcomes, which should be monitored and evaluated. The M&E system at this level
will be manned by the District Administrative Office and later feed to the Ministry of Regional
Administration and Special Departments. At this level, the District will have its indicators
relevant to its development targets and activities in addition to those prepared for the three
clusters at the National level. The other members are the Members of the House of
Representatives, MPs and Councilors in the District.

7.4.2.    The National Level
At the national policy level there are IMTC and the Cabinet. The Principal Secretaries where the
TWG are housed as well as the Principal Secretary of MOFEA where the Secretariat is housed
are the links between ZSGRP monitoring and the IMTC. The IMTC members are all the Principal
Secretaries of the Ministries. The Terms of Reference for this committee is to develop appropriate
policies based on the findings of the ZSGRP M&E and inform the Cabinet on the progress of the
ZSGRP. The chairperson is the Chief Secretary.

7.4.3     The Cabinet
The Cabinet Ministers receive the feedback from the Chief Secretary on reports of ZSGRP issues
in the cabinet for appropriate ministerial policy decisions. Here the Chairperson is the President
of Zanzibar and Chairman of Revolutionary Council.

7.5       Sources of Information

The decision-making and planning levels in RGOZ are at the national, MDA, District, Shehia,
NGO, private sector and community. At the national level the sources of information include the

surveys and censuses managed by the OCGS. The data produced is usually at national level and
disaggregated to sub-national levels, by gender, rural/urban and so on. At the MDA the sources of
data are the surveys and censuses from the OCGS disaggregated to that level, the official statistics
collected by these institutions as part of their routine work (routine data) as well as their annual
plans and reports, which are reported annually or bi-annual. At districts, the sources of data are
the surveys and censuses from the OCGS disaggregated to that level, Community Based
Management Information System (CBMIS) and district routine data systems. Likewise at the
Shehia, the data sources include the above together with the Shehia register.

7.6 Key Outputs of the ZSGRP Monitoring System

The expected key outputs from the ZSGRP M&E include the sector expenditure reviews based on
the three clusters, ZSGRP Annual Implementation Reports where trends and results are detailed
and discussed and PSDA reports. PSDA is being institutionalized in the ZSGRP and sectors will
be reviewed annually. The results will aid the sectors to be better providers of services that are
really needed by the people.

7.7 Challenges

The challenges include revising institutional framework and membership of the TWG so that
each ministry is represented in each TWG. The revival of Administrative and Routine Data
System should be a priority as well as the strengthening of the CBMIS that are in existence,
(Village Register at the Shehia level). MDA should strengthen their Management Information
Systems (MIS). There is a need for second level analysis so that the data already collected should
provide pointers to policy and decision makers. To make this possible, capacity building is
needed at the MDAs, universities and at the research institutions. The availability of both the
2002 Census and the 2004/05 HBS up to the district level necessitates the use of both surveys to
produce a poverty map for Zanzibar as a whole and Poverty Profiles at district levels. Also the
availability of the 2004/05 HBS should enable the MOFEA to adopt the use of the poverty
situation to allocate resources during budgeting.

Tanzania Socio Economic Database (TSED) has been adopted as the standard repository of the
MMS data. Dataset from TSED are to be used by a wider range of stakeholders for planning and
policy formulation. The dataset needs to be updated continuously whenever new data and
information are available.

The MDAs and Districts should produce annual reports that show performance appraisals using
indicators agreed upon. To be able to do so, the Management Information System (MIS) in each
MDA as well as that at the district level must be strengthened. The MDAs and Districts should
develop a close collaboration with the OCGS bearing in mind the Statistical Act No. 9 of 1999.
This collaboration will avoid having different levels of detail of data obtained for the purpose of
monitoring within and between sectors and to get rid of the problem of inconsistency in indicators
reported by the various sectors.


8.1 Introduction

The financing framework for ZSGRP is guided by Zanzibar’s Vision 2020 on increasing
domestic financial resource base to support the three clusters namely, Growth and Reduction of
Income Poverty, Social Services and Well-being, and Good Governance and National Unity in
order to enhance employment creation, boost economic sectors and support other development
programmes for poverty reduction and improvement of peoples’ welfare. To support domestic
resource base requires improvements in economic development, sound financial practices and
capacity to mobilize domestic resources, control of expenditures and sound and efficient
management of the budget.

Financing activities of ZSGRP and sustaining the economic viability requires innovative
investment programmes that will generate funds to support development activities of the central
and local governments. In this regard, it is essential that effective and strong partnership between
the public and private sectors and other non state organisation is developed and promoted.

8.2 Review of ZPRP Financing Framework

The financing of ZPRP was based on the strategic priority sectors of basic education and basic
health, water, roads, agriculture, good governance and HIV/AIDS. Sources of finance for
implementation of ZPRP were hinged on sustaining macroeconomic stability and support to
private sector and community-based initiatives in the provision of essential services. Estimated
financial requirements were updated annually to factor in full costing of priority activities done as
part of the PER process. Specifically, the resource envelop projections considered 2001/2002 as
the baseline scenario and factored in tax issues especially improving tax collection and widening
the tax base, developments in the world economy and expectations about external resources.
Efficiency of resource use was assumed. The shortcomings of the financing of ZPRP included
inadequate coordinated strategies for resource mobilisation as well as over reliance on external
resources when the financing was assumed to be mainly from domestic sources.

  8.3.      Resources for ZSGRP

  The focus of ZSGRP is on promoting growth and reduction of poverty. The strategy depends on
  the contribution of all sectors in terms of collaboration, linkages and synergies in order to achieve
  the desired outcomes. Developing a resource allocation framework that supports such a structure
  poses quite a challenge. The financing framework for ZSGRP is guided by the following

  i.     Real GDP growth rate of 8-10 percent per annum over the period of the Strategy reflecting a
         growth performance achieved over the last five years, supported by growth in most major
         sectors of the economy
 ii.     Inflation rate of 5-6 percent in the medium term reflecting such a rate in the Mainland and
         neighbouring countries
iii.     A tax to GDP ratio of (tax effort) of 18.5 percent per annum
iv.      Enhanced Public Private partnerships
 v.      Continued support from development partners

  In the medium term the Government will strive to enhance domestic revenue collection and
  allocate higher share of the budget to support growth strategy and poverty reduction. On the
  expenditure side the Government will continue to reinforce fiscal discipline.

  The full financial requirements for implementing ZSGRP have not yet been determined because
  scientific and realistic costing of the interventions to support implementation has not been done.
  In addition, since ZPRP is not a static Strategy, search for information about financial
  implications for its implementation will have to be an ongoing exercise as new realities unfold. In
  this regard, in order to inform estimation of a realistic resource envelop for financing ZSGRP,
  MDAs will have to cost their activities along the thematic areas of the Strategy and review such
  costs annually. Attempts will also have to be made to determine the part of financing that is done
  by Non State Actors (NSAs), methodological difficulties notwithstanding.

  At the minimum, the Budget Frame for 2006/07 to 2008/9 (Table 1.8) provides the overall
  resource projections for implementation of ZSGRP. For financial year 2009/10 this Budget Frame
  will be rolled over. It is emphasized here that this framework has not been developed with
  consideration of ZSGRP resource requirements, but rather the projects were made by MoFEA to

accompany Budget Guidelines and reflect budget ceilings. It is as such a very restrictive
framework as far as financing of ZSGRP is concerned, definitely far below the realistic resource
requirements. In this regard then mobilization of resources for financing ZSGRP required casting
far the net of resources mobilization, beyond what is reflected in the restrictive Macroeconomic
Framework for 2005/06. This is in no way an insurmountable task.

Table 8.1: Budget Frame for 2006/07 – 2009/10 (Millions)
                                                  2005/06      2006/07       2007/08       2008/09
                                                  Budget       Ceiling       Projection.   Projection.
1. TOTAL RESOURCES                                161,014      169,947       180,202       189,982
  Domestic revenue                                 76,654      79,414        84,638        86,885
  Programme loan and grants                        14,976      18,000        20,700        24,840
  Other sources (SMT)                                   0            0               0          0
  Project loans and grants                         61,555      64,633        67,865        71,258
  Non Bank Borrowing                                7,829       7,900          7,000        7,000
  Bank Borrowing                                        0            0               0          0
  Adjustment to cash                                    0            0               0          0

II TOTAL EXPENDITURE                              161,014      169,947       180,202       189,982

RECURRENT EXPENDITURE                             91,939         97,753      104,249       109,933
CFS                                               19,520         22,230        26,347       28,481
      Debt service                                  7,389        10,500        11,075       11,863
           interest                                   846          1,500        1,575        2,363
           amortization                             6,543          9,000        9,500        9,500
           Other CFS                               12,131        11,730        15,272       16,619

   Recurrent Exp. (excl. CFS)                      72,419       75,523        77,903        81,451
           O/W Salaries & wages                    51,104       52,263         53,308       54,374
           Other Charges                           21,315       23,260         24,595       27,077

DEVELOPMENT EXPENDITURE                            69,075       72,194        75,953        80,050
           Local                                    7,520          7,561       8,088         8,792
           Foreign                                 61,555        64,633       67,865        71,258
Source: Budget Guidelines, Ministry of Finance and Economic Affairs (MoFEA), 2006.

Additional mobilization of resources can be realized from the following potentials. First are
budget reforms which target both revenue generation and prudent spending, which in part have
already been undertaken by the Government. Second are the financial gains from the process of
harmonizing ZSGRP with Tanzania Mainland’s NSGRP as well as JAST. Further strengthening
domestic institutions that collect revenue, mainly TRA and ZRB will in turn boost the
mobilization of resources. Increasing support to domestic Non-State Actors (NSA) will serve as a
complement to mobilization of domestic resources.

With regard to external resource mobilization, aggressive efforts will have to be made to attract
more FDI, partly now made possible through the improved investment climate, as well as sell
ZSGRP programmes to potential investors.

The projected resources are expected to increase from Tshs 161,104 million during 2005/06 to
Tshs 189,982 million during fiscal year 2008/09. Close to half of the resources derive from
domestic revenue, followed by project loans and grants. The structure of expenditure is
dominated by recurrent spending at around 57 percent, rising from 57.1percent during 2005/06
fiscal year to 57.9 percent during 2008/09. The financing of development expenditure will mainly
be through foreign resources.

8.4 Potential Risks to ZSGRP Financing Framework

Macroeconomic instability, natural disasters, adverse developments in the global economy and
unpredictability of external resource flows pose a potential risk to the financing framework.
Zanzibar thus will need to hedge against such odds.


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