Cleopa Msuya: The architect of Tanzania’s economic transition passes away

His deep experience in planning, finance, and economic affairs prepared him for the monumental responsibilities he would shoulder in the critical years that followed the retirement of founding President Julius Nyerere. 

Steering the post-Nyerere reforms

After Nyerere stepped down in 1985, Tanzania faced an economic crisis. The socialist Ujamaa policies that had guided the country for over two decades had led to widespread inefficiencies, crippling debt, inflation, and stagnation.

Tanzania’s $3 billion debt at the time and reliance on foreign aid necessitated painful concessions. Together with the late Prof Benno Ndulu and Prof Ibrahim Lipumba, Msuya played key roles in guiding the government towards a solution.

In his memoir, Mzee Rukhsa: Safari ya Maisha Yangu, President Mwinyi reflects on how these economists helped the government to break the deadlock.

The three men were instrumental in advising the government on the necessary steps to secure an agreement with the IMF, which ultimately led to a $335 million World Bank loan to bolster Tanzania’s foreign reserves.

“We were advised by our economists that each economic sector was regressing year by year,” President Mwinyi wrote, explaining how the government had to confront uncomfortable truths about its economic state.

“They blamed the poor performance of state-owned corporations and the government’s failure in its regulatory roles, which led to the creation of a parallel economy.” As Finance Minister under President Ali Hassan Mwinyi, Msuya was tasked with initiating the painful but necessary reforms that would pivot Tanzania toward a market-driven economy.

He championed the Economic Recovery Programme (ERP) in 1986, which included currency devaluation, privatisation of state-owned enterprises, and deep fiscal restructuring. These reforms, while controversial, were seen as unavoidable in the face of mounting economic pressures.

“We must face economic realities,” Msuya said in 1987. “Our loyalty to socialism cannot blind us to the need for efficiency and global integration.” Working with global institutions

Msuya's role was pivotal in negotiating structural adjustment programmes (SAPs) with the International Monetary Fund (IMF) and World Bank.

These negotiations brought in much-needed financial support but also came with significant conditions — from liberalised trade policies to tax reforms and the removal of price controls. While critics accused Msuya of yielding too much to Western demands, he remained adamant that the measures were vital for stabilising the economy.

His work helped revive growth: by the mid-1990s, GDP was rising at an average of 4 percent annually, and Tanzania began diversifying its exports beyond traditional cash crops like coffee and cotton. 

Balancing act

As a veteran member of the ruling Chama Cha Mapinduzi (CCM), Msuya had to delicately manage ideological resistance within the party.

A declassified CIA document, released in 2013, sheds light on the tumultuous transition period that followed Nyerere's departure.

Ujamma loyalists, such as Prime Minister Warioba and Minister Kingunge Ngombale-Mwiru, pushed for a continuation of socialist policies.

Many party elders remained loyal to Nyerere’s socialist ideals, but Msuya built reformist coalitions within the Cabinet and framed liberalisation not as a betrayal but as an evolution of Ujamaa.

He also supported limited social safety nets such as the Tanzania Social Action Fund (TASAF) to mitigate the social costs of economic reforms, particularly the removal of subsidies. 

Public service career

Msuya's decades-long political career saw him hold nearly every major economic portfolio, apart from the presidency.

After first serving as minister for Finance in 1972, he would return to the ministry multiple times, often during periods of economic upheaval.

He also served as minister of Industry and Trade and held the Prime Minister’s office twice — first from 1980 to 1983 and again from 1994 to 1995, during which he also served as Vice President.

He remained a Member of Parliament until his retirement in 2000 but continued to be active within CCM and civil society.

Notably, he was appointed as Chancellor of the Land Institute in 2019 at the age of 88 and served as Chairman of the Kilimanjaro Development Forum. 

Legacy

Msuya’s economic reforms reshaped the trajectory of Tanzania. His efforts helped stabilise the macroeconomy and integrate the country into global markets. But his policies also deepened inequality, drawing mixed reactions from historians and economists.

“Msuya’s reforms were a double-edged sword; they stabilised the macroeconomy but deepened disparities, revealing the limits of IMF-prescribed solutions,” writes Prof Amon Mwambene, a Tanzanian historian.

Still, few dispute the enduring impact of his work. As Tanzania continues to grapple with balancing market forces and social equity, Msuya’s legacy looms large — a testament to both the costs and imperatives of reform.

Msuya is survived by his family and a legacy that helped shape the foundations of modern Tanzania. Funeral arrangements are expected to be announced by the government in due course.