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Friday, November 15, 2013

Over 12 million Tanzanians still living in poverty - report

BY SYLIVESTER DOMASA

15th November 2013


Dr Servacius Likwelile, Ministry of Finance Permanent Secretary
About 12.3 million Tanzania Mainland citizens are still living in poverty, according to a new poverty figure from Household Budget Survey (HBS) released yesterday in Dar es Salaam.

According to HBS, monthly food poverty and basic needs poverty income per adult is 26,085/- and 36,482/- respectively, meaning people who live below those figures are poor.

Permanent Secretary and Pay Master in the Finance ministry, Dr. Servacius Likwelile, told a news conference that the overall basic needs poverty level in Tanzania Mainland has slightly fallen from 33.3 percent in 2007 to 28.2 percent in 2012.

The survey, conducted every five years by the National Bureau of Statistics (NBS), established that the basic needs poverty level in rural areas where the majority live has dropped by 4.1 percent (from 37.4 to 33.3 percent) during the same period.

Meanwhile, the average poverty level in urban areas is 21.7 percent. However, Dar es Salaam has the lowest percentage of basic needs poverty of 4.1 percent.

HBS is a national survey focusing on households' expenditure on goods and services, giving a picture of living conditions.

The survey is carried out to compile weightings for important macroeconomic
indicators such as consumer price indices and national accounts.
The data from the survey is broken down by household characteristics such as income, socio-economic characteristics, size and composition, degree of urbanisation and regions.

Data collection involves a combination of one or more interviews and diaries or logs maintained by households and/or individuals, generally on a daily basis.
Speaking to reporters, Dr Likwelile said: “Findings from this survey show that both extreme and basic needs poverty are common in rural areas compared to Dar es Salaam and other urban areas.”

He said the national average food (extreme) poverty stands at 9.7 percent, 11.3 percent for rural areas and 8.7 percent are people living in extreme poverty in urban areas.
The improvement has been associated to the increase of per capita income to 700,000/-, investment in ICT, education, infrastructures and reduction of maternal and child mortality.

According to Dr. Likwelile who is also an economist, the country has to make major investments in agriculture, business and trade, as well as improving infrastructure networks (roads, energy and communication) in rural areas to promote economic growth.

He applauded initiatives recorded by the government through building more schools and connecting more households with electricity.

“The survey shows a positive trend of ownership of some selected assets from traditional to modern in relation to transport and communication. Many more issues are currently being analysed and will be made public before the end of this year,” he noted.

For his part, Richard Martini Senior Statistician at the World Bank, speaking on behalf of Phillippe Dongier, World Bank country Director for Tanzania, Uganda and Burundi, applauded NBS for releasing the initial poverty statistics from the 2011/12 Household Budget Survey.

He said the new poverty rate for Tanzania estimated at 28.2 percent in 2011/12, represents the proportion of Tanzanians who are not able to consume a minimum basket of ‘basic needs’ goods and services.

“We congratulate the National Bureau of Statistics for producing the new figures in line with international best practices,” he said.

“The government of Tanzania and all stakeholders now have the data needed to deepen understanding of the characteristics and causes of poverty in the country,” he added.
 
SOURCE: THE GUARDIAN

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