A Lecture to Undergraduate Students Pursuing Approaches to Rural Development Course (2017/2018)

1. Tanzania min-tiger plan 2020
A Lecture to Undergraduate Students Pursuing Approaches to Rural
Development Course (2017/2018)
By
Mangasini A. Katundu (PhD)
Moshi Co-operative University, Tanzania

2. Tigers : South Korea, Vietnam, and China
Mini -Tiger : Tanzania by
2020

3. Tanzania min-tiger plan 2020
• Tanzania Mini-Tiger Plan is an economic
plan aimed at fostering development in
Tanzania by increasing exports to the global
market.
• This plan was submitted to the Tanzanian
parliament in May 2004 after a long period of
negotiation between Tanzania, ADB, and
assisting countries, especially the Tiger
countries (South Asia).

4. Tanzania min-tiger plan 2020
• Tanzania was selected to be the center of
this program as it met requirements including
security, political stability, millennium
development programs, and numerous other
factors.
• The Tanzania Mini-Tiger Plan began to be
implemented in 2005 with the following
objectives:

5. Tanzania min-tiger plan 2020
a) Agriculture development,
b) Education promotion,
c) Road development,
d) Water supply,
e) Investor outreach and other matters

6. Tanzania min-tiger plan 2020
• This plan was copied from developing Asian
countries as they have succeeded after applying
Tiger-style plans to their economic development.
• Countries like South Korea, Vietnam, and China
have reached high levels of development through
the use of these development strategies.
• A trial period of the plan began in Tanzania in 2005
to 2020 with the formation of specialized Economic
Zones such as “Export Processing Zones”.

7. Tanzania min-tiger plan 2020
• Mini-Tiger Plan 2020 gives Tanzania a Golden
Opportunity to accelerate her economic growth to 8-
10% from the current 5-6% by adopting the Asian
Economic Development Model.
• The Model is focusing on employment creation by
attracting Foreign Direct Investment (FDI) and
promoting exports by developing Special Economic
Zone (SEZ).
• Economic Miracle of Asian Economy is basically
creating “Ponds” (SEZ) and attracting “Migrating
Birds” (Investment especially FDI) - “Ponds and
Birds” theory.

8. Tanzania min-tiger plan 2020
• Tanzania is still faced with many bottlenecks and
problems for attracting FDI due to shortcomings
such as underdeveloped infrastructure, weak
banking system, weak entrepreneurships/venture
sprit and weak manpower skills for developing
modern industry.
• In order to overcome these problems and
bottlenecks, “Ponds and Birds” theory offers a
solution which has been successfully applied in the
Asian countries including ASEAN, China, India and
more recently Vietnam.

9. Tanzania min-tiger plan 2020
• Basic Three Stage Strategy: Accelerating to 8-
10% annual growth.
1. Build SEZs and Aggressively Promoting Most
promising Industries (Primary, Light Industry
and Tourism) by use of well proven SEZ
Concept (Ponds and Birds Theory)
2. Quickly improve the National Balance Sheet by
expanding exports from $1.0 billion to $2-3
billion within 3-4 years by the using “Ponds and
Birds” theory and then, expand badly needed
public projects in power/energy/water/transport
sector by long-term borrowing from Multilateral
and Bilateral development banks.

10. Tanzania min-tiger plan 2020
3. Solving as many bottlenecks by additional
borrowing and foreign currency earning plus FDI,
Expand Investment activities further into more
high value-added sectors and moving into larger
investment projects not only in the export-oriented
industries but also moving into import-substitution
industries and processing industries as more
domestic and foreign capital become available.

11. Tanzania min-tiger plan 2020
• Expected Results and Targets of the Tanzania Mini-Tiger
Plan 2020
1. The Tanzania Mini-Tiger Plan 2020 is setting the following
targets for 2020:
2. GDP to be growing at an average of 8-10% and reach $40
billion.
3. Exports to be expanded from $1.1 billion to $20 billion
4. Per-Capita Income (PCI) to be increased from $280 to at least
$1,000
5. Creating 2-3 million new jobs by 2020
6. Develop at least 25-30 SEZs in the country and attracting FDI
aggressively

12. Tanzania min-tiger plan 2020
• Tanzania is still faced with many bottlenecks and
problems for attracting FDI due to shortcomings
such as:
underdeveloped infrastructure,
weak banking system,
weak entrepreneurships/venture sprit and
weak manpower skills for developing modern
industry.
• In order to overcome these problems and
bottlenecks, “Ponds and Birds” theory offers a
solution which has been successfully applied in
the Asian countries including ASEAN, China, India
and more recently Vietnam.

13. “My government will put emphasis on fighting
corruption, job creation and
industrialization.”– John Magufuli (President, URT)