Let us engage in exploitation of the available land resources

The report confirmed the fact that the state of foreign exchange in the country has serious impact on national economic, social and other variables.

The rise in the rate of inflation is not about the orthodox principle where too much money chases fewer goods and services. As it were, there has not been too much money in the economy since January 2016 to chase the goods and services on the shelves.

The recorded growth in inflation rate, as even acknowledged by market men and women, came as a result of reactions of the market to the relationship between the Tanzania shilling rate and the United States dollar.

The market is reacting to the fact that the rate at which the shilling can buy one dollar has significantly increased in the official foreign exchange market.

It is not even a surprise that the impact of the rise has been witnessed more in food and household items - one reason Tanzania must begin to focus on food sufficiency and export of surpluses.

Tanzania, being an import-dependent country, prices in the open market are expected to rise as a result of market reaction to the exchange rate of the local currency against those of international trading partners.

However, whether one buys foreign or locally made good, because all are buying from the same market and expect to replenish stock at ruling market prices, increase in prices is expected when exchange rates go against the local currency.
What has happened or is happening is instructive and it is hoped that good enough lessons can be drawn from it.

First, it confirms that Tanzania.s' high dependence on foreign goods and services is very unhealthy for economic stability, growth and sustainability.

Tanzania’s business relationships with other countries have consequences for the economy and society. Second, once again, it draws attention to the need for self-dependence and self-sufficiency, at least in food, to prevent exogenously induced economic shocks.

Third, policy frameworks, irrespective of how robust they may be, can be defiled by market expectations of, and reactions by economic agents. .

The government, and indeed, all Tanzanians, should appreciate that a major problem is at hand and join hands together not only to work against further increases in the rate of inflation but a return to single digit inflation rate.

This is very important if the declining rate of economic and social progress must be decelerated for all Tanzanians to find credible reasons to hope for a better tomorrow.

There are ways out, if only the government would see solving the problem as a priority and act quickly. The approach that will produce the fastest beneficial results is getting all Tanzanians that should be economically active to be productive.

The current very high unemployment rate in the country is unacceptable as it weighs adversely on the productive capacity of the nation. If all able-bodied Tanzanians can be made to be gainfully employed and be proud in their engagements, the level of production - goods and services - and productivity will rise.

Subject to the areas where the energies are directed, the country can realise enough goods and services meant for domestic market to curtail importation and exports even to earn the needed foreign exchange for the rebuilding and sustenance of the nation's foreign reserve.

Government, in this regard, must find innovative and exciting ways to cause the vast unproductive land capital to be productive. This can be started by making it easy and highly rewarding for the populace to engage in the exploitation of land resources.