Tanzania: Dr. Magufuli’s Magic Validates His Management Efficiency Model for Africa
· Turns huge loss making National Telcom into profitability in just two years
· Team Work on Rail, Marine revamps Uganda-Tanzania ancient route
By Staff Writer, Shout-Africa, Dar es Salaam – 26 June 2018: HOME GROWN economic models implemented by Tanzania’s President Magufuli on his reforms agenda further validate management efficiency derived from local content perspective for sustainable development. Transformation to strict management efficiencies and hard work were key pillars in reducing poverty and build a strong economy deserved of a developed nation.
MV Umoja a renovated vessel for Lake Victoria transport linkages
Perhaps cultural differences had not made foreign economic models impotent and unable to deliver the most expected results or African countries were unable to comprehend principles of effective economic management. This time again, Tanzania’s President Dr John Pombe Magufuli showcases his magic model which smoothen a highway to Africa’s world-class economic development.
He turns around a once loss making national telecom company, TTCL Corporation, into a profitable venture with tripled subscriber base. It started issuing dividend in 15 years. This is Magic. It is new Africa. Magufuli’s model.
The naivety of African Governments and infant planning capacities often resulted in privatizing companies which only failed in streamlining sound management infrastructures. The poor countries had packed all their eggs in one basket. They owed their trust wholly into the hands of their brothers. The advisers did their part well. They took the donkey by the river side but it was not up to them to force the donkey drink water. Africans retained accountability in implementing the given plans with prudence. Things were not the same.
Learning from mistakes by enhancing internal capacity
Increasingly, Tanzania and fellow African countries continued to learn from past mistakes. Corrective measures work. Results ensue. Africa is now moving steadily. In Tanzania, former President Benjamin Mkapa, a true statesman and acclaimed lateral thinker, once admitted that privatization was one of the mistakes he regrets to have committed during his tenure.
While Tanzania accepts and learns from its past mistakes, the country seriously pursues its national development marshall plan, The Tanzania Development Vision (TDV) 2025. It intends to realize its industrial economy.
Optimize harnessing and prudent allocation of resources
President John Pombe Magufuli, results oriented leader, walks on this weary road, given the long and challenging development trajectory in Africa, gigantic achievements that he envelops along the way confirm the validity of the strategy he pursues. The strategy for developing Africa is clear. It is never aid. If Aid was effective, be sure the aided money comes from your own resources. Tanzania and Africa now understand that strong economy emanate from effective harnessing and prudent allocation of resources.
“(directing the Registrar of Public Entities) Do all you can to ensure they pay what they are supposed to pay to the government. If the law directs you to fire or suspend non performing public companies, do not hesitate to do so because we are determined to build a strong economy,” says President Magufuli.
Dr. Magufuli was quoted when speaking at a recent function which also witnessed the State Telecom Company, TTCL Corporation, handing out Government dividend of Shs 1.5 billion (US$652,172). Not so bad a starter. The Government recently retained all shares in the Telecom company from Bharti Airtel.
TTCL Corporation’s success was deliberately planned. The government bought back all 60% shares previously owned by Bharti Airtel international. A strategy worked. When TTCL Corporation was now wholly owned by the Government, President Magufuli appointed the new Board Chairman and Management. The new Chief Executive Officer (CEO), a Tanzanian and reform minded young executive Waziri Kindamba was also installed.
President Magufuli waving the dummy check from TTCL
Dr Magufuli did not wait to give the company performance targets. He provided key performance indicators which included proven work efficiency, increased profitability and payment of dividend in the span of two years of operation. It all happened. The corporation which in 2016 had the smallest subscriber base of nearly 300 with a recorded loss of Sh16 billion in 2013, widening to Sh19 billion loss in 2016, had a complete turn-around after Dr Magufuli’s intervention and the great work of the new Board and the new CEO.
As a result, the corporation, for the first time since 15 years ago, did post a gross profit margin of Sh. 29 Billion, up from a humiliating loss of Sh. 19 Billion in 2016. The subscriber base also grew to over 800 from around 300. The outcomes were astounding.
This is another testament that Tanzania and other African states were able to finance own development plans without necessarily waiting for foreign investment or loans as argued by a Dar Es Salaam-based economist, Felix Mlaki.
President Magufuli does barrow strategically from external for top level projects, but not for everything. He believes in harnessing local resources to the maximum and manages them well to bring development on some key areas. This means the more the resources, with sound local management skills the one that CEO Kindamba unveiled, the greater development one realizes.
An accomplished mathematician, a branch of the world renowned Professor Albert Einstein, Dr Magufuli believes in local solutions to Tanzania poverty in hard work and prudent application of scarce resources. It works. TTCL proved it so. CEO Kindamba confirmed its possibility.
TTCL new CEO Mr. Kindamba
Another Magic, Teamwork brings back the Uganda, Tanzania lost glory
This is yet another similar tale of transformation. Now forget about what Magufuli and CEO Kindamba did for TTCL. This is another story of success. Story of transformation. For the past 10 years, despite its huge potential, the old Tanzania-Uganda own “Belt and Road” corridor featuring Dar Port, railway route to Mwanza, Tanzania and Port Bell in Uganda could not ferry goods to Kampala. Goods were transported by road which is expensive and riskier.
A vividly great partnership of three more Magufuli’s executives, Deus Kakoko for the Tanzania Ports Authority, Masanja Kadogosa for the Tanzania Railway Corporation and Eric Hamis for the Tanzania Marine Services Company, is changing things for good. Cargo wagons through the central railway to Lake Victoria were as of few days ago able to provide Ugandan business men with the cheapest route.
Resumption of this abandoned route between the two sister countries would boost business, continued to improve economy of the two East African nations and enhanced relations. All this could not come as simple but lots of efforts and above all top leadership that is result oriented in the Magufuli administration.
