Tanzanian activist Maria Sarungi reflects on the presidency of John Magufuli
President John Pombe Magufuli who succumbed to what the Tanzanian government termed heart complications left a country that was one of East Africa’s fastest growing economies. What were his economic reforms? Maria Sarungi joins CNBC Africa for more.
Thu, 18 Mar 2021 10:27:28 GMT
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AI Generated Summary
- Magufuli's focus on nationalism and reforms in the mining sector raised concerns about power dynamics and government control over the economy.
- Changes in foreign exchange regulations and anti-money laundering efforts disrupted economic processes and led to challenges in tax collection.
- Criticism of Magufuli's authoritarian approach, including incidents of farmer displacement, highlighted the negative impact on human rights and investment climate.
President John Pombe Magufuli of Tanzania passed away due to heart complications, leaving behind a country that was one of East Africa's fastest-growing economies. One key aspect of his presidency that draws mixed reactions is his economic reforms. In a recent interview with CNBC Africa, Tanzanian activist Maria Sarungi shared her insights on the impact of Magufuli's economic policies. Sarungi highlighted that one of the major focuses of Magufuli's agenda was nationalism, which he initially demonstrated by reforming the country's mining laws. This move led to a significant standoff with Barrick and resulted in the formation of a joint venture between the government and Acacia Mining under the new mining law. However, Sarungi raised concerns that these reforms may not have been about nationalism but rather about reordering power and control within the government. She suggested that the government aimed to exert greater control over the economy, which could hinder progress. One of the notable measures taken by Magufuli was the changing regulations for foreign exchange bureaus in 2019. Many bureaus were closed, and some faced investigations for potential money laundering activities. Additionally, the enforcement of the anti-money laundering act led to several individuals facing legal consequences for tax evasion. Sarungi pointed out that these actions had a profound impact on the economy, leading to disruptions in tax collection processes. She expressed concerns that the country's tax authority had not been transparent in sharing tax collection figures since 2019, further complicating the assessment of the economic situation. Sarungi also criticized the authoritarian streak displayed by Magufuli during his presidency. She highlighted an incident where farmers had their cashew crops confiscated by the army, leading to long-standing payment disputes. This event not only affected the agricultural sector but also had broader repercussions across various industries. Despite some arguments in favor of nationalizing Tanzanian businesses and promoting local investors, Sarungi emphasized that many local investors faced harassment and unfair treatment from the government. She highlighted cases where prominent business figures were arrested and detained on allegations of tax evasion, creating a sense of insecurity among entrepreneurs. Sarungi stressed the interconnected nature of economic growth and human rights, emphasizing that respect for individuals' rights is crucial for a thriving economy. Reflecting on Magufuli's presidency, Sarungi described it as disastrous for human rights and the rule of law. However, she also noted that the experience provided valuable lessons for the country. She highlighted the importance of unity and urged Tanzanians to learn from past mistakes and work towards a brighter future. Despite the challenges faced during Magufuli's tenure, Sarungi encouraged a forward-looking approach to rebuilding and advancing the nation's economy and society.