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r e v o l u t i o n a r y g o v e r n m e n t o f z a n z i b a r（l u r e v o t i o n r y g o v e r n m e n t o f z n z我b r）.doc

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REVOLUTIONARY GOVERNMENT OF ZANZIBAR MINISTRY OF FINANCE AND ECONOMIC AFFAIRS Zanzibar Country Analysis Final Report Prepared by: Economic Research Bureau University of Dar es Salaam P.O. Box 35096, Tel: 255-744-461790 Fax: 022-2410212 E-mail: erb@udsm.ac.tz April, 2003 Table of Contents Pages Acronyms vii Executive Summary x PART ONE: INTRODUCTION 1 Background Information 1 Brief History 1 Relation with Mainland 1 Geography, Land Use and Other Resource Use 1 Population and Labour Force 2 Government Structure 2 Objective of the study 4 Methodology 5 Consultation with Stakeholders 5 Consultations Guide 5 Data Collection Approach 5 Data Limitations 6 Structure of the Report 6 PART TWO: MACROECONOMIC PERFORMANCE 8 Economic Situation 8 Government Finance 11 Foreign Direct Investment 13 Public Debt 13 Price Developments 13 The Challenge ahead 14 PART THREE: THE POVERTY PROFILE ANALYSIS 15 Data on Poverty in Zanzibar 15 Income Poverty 15 Non-Income Poverty 16 Access to Safe Drinking Water 17 Sanitation 17 Causes of Poverty in Zanzibar 18 Income Distribution 18 Zanzibar Poverty Reduction Plan 19 Potential for Accelerated Poverty Reduction 20 The Way Forward 21 PART FOUR: AN OVERVIEW OF DEVELOPMENT POLICIES AND GOALS 22 Vision 2020 and Millennium Development Goals 22 Government and Accountability in Zanzibar 24 Overall Economic Development Prospects 24 Development of Economic Sectors, Geographical areas and Gender 26 Social Services Delivery 27 Economic and Social Impact of HIV/AIDS 28 PART FIVE: AGRICULTURE SECTOR 30 Status of the Agricultural Sector 30 Climatic Conditions and Farming Systems’ Zones 32 Agricultural Potential 32 Sector Policies and Development Strategy 33 The New Agricultural Policy 34 The Policy Instruments 35 Land Issues 36 Agricultural Marketing System and Information 37 Marketing Channels 37 Marketing of Cloves and