Doubts over graft remain as Dar gets $190m aid
By KEVIN KELLY
Kenya's economic resurgence is helping to power the growth of its East African neighbours, the World Bank's country director for Tanzania and Uganda has said in an interview last week.
"The outlook does seem promising in all three countries," said Judy O'Connor, an Irish national who has worked at the World Bank for more than 30 years. "Tanzania and Uganda are definitely benefiting from the strength of Kenya's economy."
Speaking to The EastAfrican from Washington, Ms O'Connor offered the positive appraisals two days after the bank approved a $190 million anti-poverty initiative for Tanzania and a $42 million credit to support education improvements for Zanzibar.
The bank also last week approved a $150 million loan to spur construction of the Bujagali hydropower project in Uganda.
Ms O'Connor praised the recent economic performance of both Tanzania and Uganda, adding that the two countries are also attacking corruption and reducing poverty.
Tanzania has achieved 10 years of strong economic growth despite increases in oil prices and damage to the farming sector due to drought, Ms O'Connor noted.
Uganda's economic expansion has been even more robust than Tanzania's during the same period, she added, pointing out that Uganda has also had to withstand "energy shocks."
"The high cost of energy is really hurting Uganda's economy," Ms O'Connor said. She expressed hope that the World Bank's favourable review will encourage private investors to help develop Uganda's oil and mineral deposits as well as its hydropower resources.
With all three East African economies remaining vibrant, the bank is taking a gentler tack on governance issues that had drawn pointed criticism in the past.
Ms O'Connor said the Kikwete administration is making "remarkable progress" in combating corruption while President Yoweri Museveni's government "is doing quite a bit" to build institutional capacity to fight graft.
Control over corruption has not advanced in Uganda to the extent that the World Bank had hoped, she said. But added that Uganda still scores better than many African countries on a corruption index compiled by the bank.
"The government is starting to put some teeth into its efforts to ensure accountability," Ms O'Connor said in regard to Uganda. "We would like to see more of those teeth."
She expressed almost unconditional approval of Tanzania's anti-corruption initiatives. Graft does remain a problem, Ms O'Connor acknowledged, adding, however, that "many aspects of the problem are being addressed."
She cited greater freedom of the press in Tanzania as an important factor in fighting corruption.
"There has been support from the top - from President Kikwete and senior officials - for the press to be more investigative," Ms O'Connor said.
Impressive economic growth rates are beginning to alleviate poverty in both countries that she monitors and advises, she added.
Some rural areas of Tanzania "are doing a lot better than others, depending on how well connected they are to markets," she observed. In Uganda, she said, the nationwide poverty rate has fallen to about 31 per cent in the past few years, which she termed "a significant improvement."
Ms O'Connor expressed reluctance to comment on political conditions in either Tanzania or Uganda, noting that the World Bank has "a mandate not to go into the political sphere."
But in response to a question about growing ethnic tensions in Uganda, she said she hopes "one would not use a single event to see a trend." Animosity toward Ugandans of Asian descent does, however, constitute "a potential issue that has to be understood and dealt with," Ms O'Connor added.
She also suggested that strains between Zanzibar and Tanzania mainland be effectively addressed.
"We see positive signs there," she said. "The two leaders do seem committed to resolving tensions."
The World Bank will encourage Tanzania in the coming months to focus on education, infrastructure and energy, Ms O'Connor said.
"We want to see attention given to the quality as well as to quantity of education," she declared.
Tanzania should also give priority to transportation projects that will improve linkages between the country's interior and its Indian Ocean ports, she said.
"With greater private investment," she added, "the country will have a more reliable energy supply."
Source:
http://www.nationmedia.com/eastafrican/current/News/News300407.htm