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Economy to form gist of...
2006-07-22 09:30:27
By Issa Yussuf, Zanzibar
A drastic drop in business and shrinking revenue collection in Zanzibar are some of the problems that will form the basis of a discussion to strengthen the 42 years old union between the Isles and Mainland.
Acting Zanzibar Minister of Trade, Tourism and Investment Asha Abdallah Juma told the House of Representatives yesterday that revamping the Islands economy topped the government’s agenda.
Juma was responding to comments and questions after presenting the ministry’s 2006/07 budget debate.
She conceded that there has been a sharp drop in trade in Zanzibar and that revenue collections fluctuate owing to low external trade.
”There has been a fall in trade in Zanzibar. The government is struggling to put the economy back on a sound footing, as it is among the issues lined up for discussion with the Union government,” Juma said following members’ remarks that the Union government is to blame for the decline in the Isles’ economy.
Representatives, especially those in opposition, said some national policies, especially those to do with Surface and Marine Transport Regulatory Authority (Sumatra), have been detrimental to Zanzibar’s economic development.
The minister also said that authorities had included Sumatra on the agenda to be discussed by Union leaders.
”Sumatra started operating in Zanzibar in 1998, but it has focused on taxing importers instead of sea-liners, which places its role into question.
We have taken into account the concerns of traders about the role of Sumatra and we are working on it,” Juma told members of the House before they endorsed her ministry’s budget.
The Zanzibar business community has repeatedly questioned Sumatra’s role in Zanzibar, saying the agency has no legal powers to tax importers in Zanzibar.
They blame the government for not taking up the matter.
The minister said exports from Zanzibar had declined in the past decade because of lack of competitive industries, lack of enough raw material and low quality products.
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