Country Session 8: Tanzania
The Tanzania Country Session was chaired by John Page, the Country Director for IGC Tanzania. In the first session, John Sutton (LSE) discussed the Enterprise Map of Tanzania, and the enterprise policy challenges and opportunities presented by natural gas. Sutton set out a range of concrete policy recommendations government can implement to support the integration of local firms in to supply chains of international oil firms. A key measure is to set up a Local Content Unit, with associated support for building up the capacity of local firms.
Stephen O’Connell (Swarthmore College / Visiting Scholar IMF) presented the IGC’s work in support of modernising the monetary policy framework in Tanzania. Tanzania currently operates a reserve money programme – in which controlling the money supply is the main focus of monetary policy operations – within a regional context where the focus of monetary policy is shifting towards more explicit targeting of inflation. O’Connell presented evidence on the relative success of Tanzania’s policy framework to date, and the arguments for, opportunities and challenges with modernising this framework.
Finally, John Page and Chris Adam (IGC Tanzania Lead Academics) presented the key economic challenges facing Tanzania, and set out future directions for IGC’s work, which include: extending the macro research program; new directions in public finance; expanding work on industry (domestic content and SMEs); and pursuing new initiatives on agriculture, growth and employment, natural resources, and urbanisation.