THE 4 R OF PRESIDENT SAMIA THROUGH THE IMAGINATION OF ISLAMIC ECONOMIC AND FINANCE EDUCATOR.

The 4R (Reconciliation, Resilience, Reform and Rebuild) of H.E President Samia are impressive pillars for multiparty democracy as well as for the economic prosperity. However, they need to be comprehensively understood and acted upon to bear fruitful results.

In line with Islamic Finance perspectives, I would like to review the 4 R while imagining that President has this in mind though not in her own words.

1.Reconciliation. The President says "This will only be possible by building a society that enjoys equal rights before the law, without discrimination and that provides equal economic opportunities for all." She continues "I believe reconciliation cannot be achieved through discrimination and where there are those who are deprived of their economic and civil rights."

Who did the President had in mind when she mentioned "those deprived of economic rights"? In my imagination, i hope she knows the plight of Muslims majority in Zanzibar and Mainland, who face religious discrimination in the public owned financial institutions for their denial to provide financial products that are profitable as well as free of interest. For example; Presidential Trust Fund, TCB, TADB, SELF Microfinance to mention a few continues to only offer Interest based lending products making Muslim choose between faith or money. Besides, treasury bonds and bills open opportunity to earn money from tax money of Muslims and others. However, they are strategically denied to participate on them due the underlying interest based structures. Authorities puts Muslim into trial to choose between faith and money! Therefore, i wish the President shall be the long awaited bridge that reconcile faith and money for Muslim citizens through her solid interventions to create equal economic opportunities.

2. Resilience. The President says “In the journey that lies ahead we shall be shaken. Be it economic, environmental, social and political but we must build resilience.” What economic model does the President has in mind to build economic resilience? In my imagination, I wish the President knows what triggered the economic crisis of 2008 and that countries that had embraced Islamic economic and financial models, enjoyed stability from the financial crisis. Reflecting on the financial crisis after 10 years, Prof. Stiglitz said “The experience of the crisis should have led us to change our economic models, our economic priorities, and our regulations of the financial sector.” What needs to be done? Prof. Stiglitz offer ideas to American policy makers which are to some degree relevant to us, when he says “There is a lot of financial innovation—and not of the kind that gave us the crisis, but of the kind that would make the American economy stronger in the long term and less susceptible to crises. However, our industry does not seem to be interested in such innovations. It is up to the regulators to do more, and so far they haven’t.”

Does the President and the team of economic advisor see the new financial innovations emanating from Islamic economic model or are they not interested in such innovation?  

3. Reforms. The President made remarkable promise when she says that “my Government will strive to make changes in our political, economic and electoral systems.” She further says that “The goal is for Tanzania to move with the times and - as always, let us know in advance when it is time to do something even if people do not support it or do not support it at the right time.”

In attending to our President request when she says “let us know in advance…”, I submit that Islamic economic system is a timely and wholesome system to guide Tanzania economic - monetary and fiscal policies for shared prosperity of all. To start with, we need to implement Tanzania report of IMF on Islamic Finance which outlined areas of reforms on legal, taxation, regulatory and supervisory frameworks for the Islamic financial industry to have fair and competitive environment. This report is with Bank of Tanzania closer to ten years without implementation. Madam President, such reforms are timely though it comes with its own challenges, not economically but rather politically which needs due attention as we still have those who don’t support it even if such reforms are at the right time.

4. Rebuilding. The President well put it “the main goal should be to grow our economy. An economy that will increase employment for our youth and that will open up opportunities for all social groups in the country.”

Furthermore, she cited exemplary initiatives on infrastructure projects, mining, energy and agriculture sectors. She says “We are already developing major infrastructure projects and others in the mining and energy sector. Efforts made through the Royal Tour campaign are aimed at revive the vital tourism industry that has been hit hard by Covid-19. In agriculture we are going to make some big changes so that this critical sector can start making a decent contribution to our economy.” Notwithstanding, these sectors are in need of access of inclusive and affordable sources of capital for all social groups including faith based groups such as Muslim population. Therefore, rebuilding initiatives should pay due attention to financial sector reforms and deepening through Islamic financial product innovations and conducive policies and business environment.

In conclusion, I strongly believe that the President efforts of four R with leap of faith on above imaginations shall not only be good for multiparty democratic system but also for building circular economy and inclusive financial system.