DEVELOPMENT: TZ slips in rankings on prosperity

Dar es Salaam. Tanzania has dropped eight positions in the list of Africa’s most prosperous countries.

According to new research released by the UK-based Legatum Institute, Tanzania has been ranked number 19 out of 38 surveyed African countries. In 2012, the country was ranked 11. It also ranked 117 out of 142 surveyed countries worldwide.

Among major criteria considered for the index include infrastructure, good governance and business climate. Others include adequate health-care, education, personal freedom, safety and security issues as well as entrepreneurship and opportunities.

The research shows that the country performed poorly in terms of personal freedom, where it fell from position 24th to 28th. It also recorded poor performance on safety and security where it ranked 23rd out of 38. Tanzania’s poor showing was also due to a drop in a five-year average growth, increase in inflation coupled with a decline in confidence in financial institutions and falling satisfaction with living standards.

The report indicates that Tanzania’s education score rose by one place from position 19 to 18, with little impact on the people. The report argues that Tanzania needs to improve the quality of education in schools rather than focus on enrolment rates that have been in an upswing for a decade now.

“Tanzanian education is not producing graduates with the skills needed to work in the formal sector,” reads part of the report.

It added that the lack of an adequately skilled workforce was a hindrance to investment in sectors such as manufacturing, construction, mining, agriculture, finance and communications.

“Tanzania needs education that improves students’ chances of finding employment,” the report reads.

In East Africa, Rwanda is the leading country with a ranking of number eight after advancing from number 13 in 2012. It is followed by Kenya which has been ranked 13 and Uganda 14. According to the report, Rwanda is the best improver in Africa in regulations and governance effectiveness, rule of law and lowest perception in corruption.

“Rwanda deserves credit for actively encouraging women to play a central role in shaping the future of their country. And it seems to be paying dividends,” reads part of the report. Rwanda’s efforts to bring women in the employment market and various leadership positions has been cited as one of the credits that has helped the country to advance its position. Kenya has advanced four positions from 17 to 13 since 2012.

However, none of the East African countries made it to the top ten leading Africa economies in the economy sub index of 2014. But Tanzania, Kenya and Uganda are in the top 10 list of African countries that are performing better in terms of social capital.

According to the report, Eastern Africa has been the region with the largest increase in prosperity in the past three years. It has improved most in the Economy, Health, and Entrepreneurship and Opportunity categories.Burundi generally recorded poor performance.