Why setting up of new ministry was essential

Dar es Salaam. Analysts are confident that the formation of a new Ministry of Planning, and the re-establishment of the National Planning Commission that was abolished in 2018, will bring positive developments in the country.

President Samia Suluhu Hassan on Wednesday made some changes to her cabinet when she dissolved the Ministry of Finance and Planning and instead came up with two separate ministries: one of Finance and one of Planning and Investment.

She also dissolved what used to be known as the Ministry of Investment, Industry and Trade and instead formed two the Ministry of Industry and Trade while the Investment docket went to the newly-formed one of Planning and Investment.

With the changes that are pursuant to the 2023 National Planning Act, President Hassan appointed Prof Kitila Mkumbo as the Minister of Planning and Investment and Dr Mwigulu Nchemba as Finance Minister.

She also appointed Mr Lawrence Mafuru as the Executive Secretary of the National Planning Commission.

Prior to the appointment, Mr Mafuru served as the Deputy Permanent Secretary in the Ministry of Finance and Planning, overseeing economic management.

Analysts who spoke to The Citizen yesterday poured praises on President Hassan, saying coming up with a separate ministry and National Planning Commission would make the government more efficient.

A Financial economist from Mzumbe University, Prof Aurelia Kamuzora, said the ministry of Planning is a main ministry that will shape the country’s economy and take Tanzanians to ‘the promised land’.

He said with an independent Planning docket and the National Planning Commission, the government will have the right and realistic plans that are key to the country’s economic prosperity.

“Splitting the ministry of Finance and Planning into two separate ministries will reduce the burden that Dr Nchemba had and eventually improve efficiency of the two separate ministries,” underscored Prof Kamuzora.

She banked her hopes on the fact that with the changes, the Finance ministry will be dealing with only seeking financial resources and making allocations, and the Planning ministry, on the other hand, would focus on planning.

Prof Kamuzora said she understood that there would be additional costs to finance the new ministry.

“There is no free lunch. Important thing here is for those working under the new ministry to work round the clock to ensure efficiency so that the government could feel the value for money,” she underscored.

Prof Haji Semboja of the State University of Zanzibar's Economics Department said having an independent ministry of Planning, and Planning Commission will enhance proper allocation and optimal utilisation of the country’s resources.

He said the majority of developing countries and those with small economies were using the same approach since the market system could not allocate resources on its own and ensure optimal utilisation of the same.

“What is important here is that the government should not disturb, but rather aid, the market to achieve the objective of improving the welfare of people,” cautioned Prof Semboja.

The economist from Dodoma University, Dr Lutengano Mwinuka, said the formation of the new Planning ministry was in line with the government’s agenda of attracting more investors in the country.

“Putting together Planning and Investment dockets is a reflection of the government’s will and desire to attract more investments,” he insisted.

An economist and trade expert, Dr Donath Olomi, said the Planning docket came at the right time when the government was preparing the 2050 National Development Vision.

“The independent planning docket headed by the minister, who is a political leader, is key to development since political leaders are catalysts for pushing the agenda in the right direction,” he said.

The University of Dar es Salaam Head of Finance Department, Dr Tobias Swai, said the separation of the ministry will boost productivity since one wing will be looking at only the development angle and the other on the financing part.

 Further, he added, it will link well with government and private Sector investment needs through private sector investment that will be geared towards the national development goals.

“It is likely that the separation will accelerate the Public Private Partnership as a form of financing,” noted Dr Swai.

He added: “It will also ensure that there is a sustainable development on the use of government funding resources.”

The University of Dar es Salaam Economist, Prof Abel Kinyondo, commended the establishment of the National Planning Commission.

He said a country needed think tanks which will be planning, prioritising and directing national development through effective coordination, monitoring and evaluation.

“We need the commission that will come up with plans that appreciate the interaction among sectors,” said Prof Kinyondo.

 In June 2018 the government abolished the Planning commission with the aim of enabling the Finance and Planning ministry to take over the functions and responsibilities of the commission.

Analysts back then said it was a good idea since it would “smoothen out coordination between planners (planning experts) and seekers (Ministry of Finance).

But during this year’s budget the parliament passed the National Planning Commission bill that was tabled by the government and later on the same was signed by the President to be a law.