Magufuli’s New Economic Strategy – Taxation and Manufacturing

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President Magufuli’s new strategy for Tanzania is reform of the tax system and promoting manufacturing, both of which have been proven as effective strategies in this century. Magufuli who is the democratically elected President of Tanzania and nicknamed the bulldozer is not shy about his goal of ensuring a successful Tanzania in the 21st century. He has won the admiration of millions of Africans who yearn for leaders to move the continent in a positive direction.

In his latest push, President Magufuli is pushing for policies that favor manufacturing over tourism and directing government resources there. While opening the 41st Dar es Salaam International Trade Fair he announced that Tanzanian public funds should be directed towards industrialization rather than tourism. History shows from the Industrial revolution in England, to American, Japanese and German industrialization in the twentieth century to the rise of China in 21st century that industrialization is the key to economic dominance. There has never in the history of world been any country that has risen to economic growth through tourism. Many beautiful African and Caribbean nations have been misled into believing they can sustain their economies through tourism alone. While tourism can be beneficial to an economy, it cannot be the backbone of a country that wants to succeed in this century.

Magufuli’s other strategy which is long overdue is to go after mining companies for not paying taxes in Tanzania. He is cancelling their licenses unless their pay their full share of taxes. This has angered the multinational corporations which do not feel obligated to Tanzania. This is a game changer which if successfully will lead to economic growth in Tanzania as taxes can be reinvested in Tanzania to fund infrastructure projects and benefit the local people. There are also those stakeholders who want the African story to continue to be one of helplessness and dependency on the West. However, Magufuli knows that Tanzanians must be prepared to fund their own budget defend their own African heritage.  This is why Tanzanians have embraced new electronic property taxation system. Through this system the government will be able to track tax revenues and eventually finance their own initiatives.

Magufuli is the founding father of economic freedom in Tanzania and is standing his ground to defend his nation like a true leader, warrior and leading his nation into economic freedom. Tanzanians are embracing economic empowerment over social issues. They have embraced that economic empowerment is the pan Africanist issue of the 21st century.

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