Rising oil prices worry Kikwete
By Editor, This Day
Thu, May 25, 2006
PRESIDENT Jakaya Kikwete has raised concern that inflationary pressures caused by rising oil prices might reduce the country's foreign exchange reserves of $2 billion (about Tshs. 2.4 trillion).
The president said the foreign exchange reserve was equivalent to 8 months of imports.
Speaking to Tanzanians living in the US capital, Washington, D.C., Mr Kikwete also explained that the government could not intervene in the rising fuel prices.
He called on Tanzanians to produce more export products to save the country's foreign exchange reserves.
Fuel prices have been on the increase, thus reducing the foreign exchange reserve. We have no choice but to increase exports of our local products, said the president.
The president said the challenge ahead for his administration was to ensure that the living standard of 80 per cent of Tanzanians who depended on agriculture, fishery and livestock-keeping improved a lot.
Many poor Tanzanians are dependent on these sectors (agriculture, fishery and livestock-keeping). If we improve these sectors we will succeed in improving the living standards of people who are dependent on them,
said Mr. Kikwete.
He said achievements made during the third phase government under President Benjamin Mkapa would be sustained.