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Wednesday, June 11, 2014

Not just bragging rights


If we look beyond the headlines about Obama’s trip costing the American tax payer about $100 million, and the heightened security, what is the benefit to Tanzania of hosting Barack, his family and his entourage? Besides, of course, bragging rights with Kenyans.

The range of responses offered have filled the pages of our newsprint in recent weeks. And one of the most frequently cited potential benefits is increased tourism. Indeed, the visit is a positive signal to would-be American tourists (among others), but the number of tourists visiting Tanzania has been increasing with every passing year. The US President might cause an upsurge, but surely Serengeti, Ngorongoro, Kilimanjaro, Zanzibar, are enticing enough in their own right. Plus, there may be lines of tourists clamouring to get in but what matters is whether we can absorb these increases. The upward trend in tourism is a function of our increased capacity in accommodation and transport, alongside other relevant infrastructure. So no, I do not think the benefit to Obama’s visit lies here.

If not tourism, then perhaps more aid? Well, the US is already doing a lot in Tanzania. Last year alone, the American taxpayer funded projects worth about $750 million. Let us also not forget that President George W. Bush, less than a year before completing his second and final term in office, ceremoniously signed the Millennium Challenge Compact, which continues to help Tanzania address challenges in the energy, transport and water sectors. So, Obama certainly cannot promise to provide that much more than what is already the status quo.

There are two areas, however, that Tanzania should hope to benefit from Obama’s visit. These include greater investment possibilities as well as support for Tanzania’s continued democratization process.

Obama’s entourage is filled with some of the most dynamic and industrious American business leaders. Tanzania’s business community should engage with their US colleagues. The government should explicitly and succinctly explain what avenues of potential investment opportunities exist in Tanzania for the US President’s posse.

On their end, I hope these business leaders are frank in identifying and sharing the constraints they see in investing in Tanzania. It takes twice as long to start a business in Tanzania as it does in rich countries.  I hope the US President implores his Tanzanian counterpart to reduce unnecessary delays that slow down the process of starting a business, dampening entrepreneurial spirit.

By focusing on Tanzania’s capacity to trade and engage with the rest of the world, I hope this visit prompts our government to alleviate problems that limit our economic capacity. The World Bank’s  Jacques Morisset wrote about a month ago that if he had three minutes with President Kikwete, he would ask that JK work to improve the performance of Dar es Salaam’s port. Morisset explains that the “port handles about 90% of Tanzania’s international trade and is the potential gateway of six landlocked countries.” The country could recover as much as $3 billion a year, more than 12% of Tanzania’s economy, through reduced inefficiencies at the port.

This trip is also a great opportunity for Tanzania to capitalize on the battle for hegemony between the US and China by negotiating and renegotiating better deals with both sides. Particularly in extractives, this trip should be a clear message that Tanzania has options, and this should improve our strategic position on any negotiating table. Whether or not the Americans are willing to admit that they are concerned about China’s role in Tanzania, and on the continent, is one thing, but denying that this was factored into calculations around the trip would be dishonest.

The Chinese have always been particularly close to Tanzania. The largest single Chinese development assistance project on the continent to date includes the Tanzania-Zambia railroad. Although the US has also had relatively strong ties to Tanzania, since President John F. Kennedy hosted Mwalimu Julius K. Nyerere at the White House, a little over fifty years ago this month, they haven’t quite been as involved as their Pacific rivals. In any case, the fact that Obama’s first full visit to Africa, save a less than 24-hour stop-over in Ghana in 2009, includes Tanzania is a welcome signal of the United States’ continued commitment to Tanzania’s progress. We should not waste such an opportunity.

On democracy, I hope Obama’s visit highlights in the need to strengthen political institutions that will foster greater democracy in our country. These include a more independent and vibrant press; an active and dynamic opposition; among others.

The increased focus on Tanzania during this trip can be a fruitful opportunity for the American President to engage with Tanzania’s political leaders on such matters. I hope Barack emphasizes areas where the US experience can help inform possible solutions for Tanzania. It was welcoming news recently when the Washington Post, which had earlier in June reported on the human trafficking case involving a Tanzanian diplomat and a former domestic employee, wrote that the plaintiff has finally been paid her back-wages jointly by the diplomat and the Tanzanian government. Although the Tanzanian tax payer has had to cough up some of the money to restore faith in our sense of fairness, but the fact that US pressure resulted in the resolution of this case is a harbinger of things to come, should the US exert similar pressure, in a positive democracy-enhancing manner.

Of course, in the end, this whole visit could just fizzle down to politics and photo opportunities for those few that will get a chance to meet the US President. To paraphrase the great Roman philosopher and politician, Marcus Tullius Cicero let's hope that Obama’s visit is judged by its results, and not by its intentions and potential,  So let us take Obama on his own words when he said, on the floor of the Ghanaian parliament four years ago, that “[t]he 21st century will be shaped by what happens not just in Rome or Moscow or Washington, but by what happens in Accra, as well.” Let us hope, or better, let us work towards maximizing Obama’s visit to translate his words into reality.

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