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Financial muscles of Tanzania’s conservation, tourism wings restored

The government’s latest initiative is billed to address cash crunch the key institutions face.

SUNDAY June 15, 2025

The Tanzania’s Minister for Finance, Dr Mwigulu Nchemba, recently announced in Parliament the government’s decision to reinstate the retention system for Tanzania National Parks and Ngorongoro Conservation Area Authority in a bid to address financial woes the crucial conservation institutions face. PHOTO | COURTESY

By Patty Magubira

The Tranquility News Reporter, Tanzania

Lawmakers and conservation and tourism captains in Tanzania have expressed optimism towards the government’s fiscal decision to reinstate financial autonomy to two key institutions.

The Tanzania National Parks (TANAPA) and the Ngorongoro Conservation Area Authority (NCAA) have been required to remit all revenues they collect to the government’s consolidated fund lately, subsequently having to request for necessary overhead from the Treasury.

TANAPA and NCAA, the most strategic state-run agencies at the core of the conservation and tourism industry that earns the country’s economy $3.9 billion annually, are prestigious bodies mandated to manage 21 national parks and the world’s unique conservation area.

Once a portion of the Serengeti National Park, Ngorongoro Conservation Area is a multi-land use area in which wildlife co-exist with Maasai, a semi-nomadic pastoralist community whose members move from one place to another in search for livestock pasture.

Owing to severely affected routine patrols and infrastructure maintenance, a lengthy bureaucratic procedures involved in the process of requesting for operations costs (OC) proved to be fraught with challenges, including delays that somehow compromise the conservation and tourism drive.

Mr Elirehema Maturo, the Executive Director of Tanzania Association of Tour Operators, is buoyant the retention system will  reduce operational costs for tourism outfits following poor roads damaging their vans, denying them of profits. PHOTO | RODRICK MUSHI
The Controller and Auditor General’s (CAG) Report, for instance, discloses a significant shortfall in the funding allocated to TANAPA for infrastructure development.
The CAG Report cites fiscal year 2023/24 when TANAPA received only Sh1.06 billion (over $411,810) from the central government, equivalent to 5 per cent of Sh23.03 billion (about $8.95 million) budget that was approved for the construction and development of infrastructure within national parks.
This substantial budget gap of Sh21.97 billion (over $8.5 million), representing 95 per cent of the approved funding, has severely hindered the ability of TANAPA to carry out essential development projects.
The report underscores the pressing need for the government to fulfill its financial commitments to ensure the sustainability and growth of Tanzania’s national parks.
This funding shortfall also highlights broader issues of financial management and resource allocation within the government, which may have implications for other sectors reliant on public funding.
As such, addressing these fiscal challenges is crucial for the continued conservation and development efforts within the country’s protected areas.
With good infrastructure, tourists will be even more interested in the products they yearn for. Challenges in accessing the products reduce visitor satisfaction,” Mr Elirehema Maturo, the Executive Director of Tanzania Association of Tour Operators.
The policy is due to change following the government officially announcing its decision to restore the retention system for TANAPA and NCAA in its latest initiative to address financial woes the crucial conservation institutions face, thanks to the stakeholders’ consistent scream.
Addressing Parliament in Dodoma on Thursday June 12, 2025, the Minister for Finance, Dr Mwigulu Nchemba, reassured lawmakers that the previous retention system would be restored in the forthcoming financial year, allowing to retain 51 per cent of receipts each.
“Honourable Speaker, I propose to amend Section 9 of the National Parks Act, CAP. 282, as amended through the Finance Act 2024, by deleting Sub Section 2(b) which specifies that 91 per cent of the fund shall be deposited in the Consolidated Fund, and replace it with the distribution of 51 per cent of any sum, fees, monies, charges payable to the Board of Trustees shall be deposited in the special account opened at the Bank of Tanzania,” said the minister, adding:
“And the expenditure of the revenue shall be disbursed upon approval by the Paymaster General; and 40 per cent shall be deposited in the Consolidated Fund Account.”
On the NCAA, Dr Mwigulu said: “Honourable Speaker, I propose to amend Section 12 of the National Parks Act, CAP. 284 as, amended through the Finance Act 2024, to delete Sub Section (b) which specifies that 91 per cent of the fund shall be deposited in the Consolidated Fund, and replace it by a distribution of 51 per cent of any sum, fees, monies, charges payable to the authority shall be deposited in the special account opened at the Bank of Tanzania, and the expenditure of the revenue shall be disbursed upon approval by the Paymaster General; and 40 per cent shall be deposited in the Consolidated Fund Account.”
The Member of Parliament (Special Seats for Arusha Region), Ms Cecilia Pareso, thanks the government for hearing the lawmakers’ plea, saying conservation and tourism activities cannot wait for long and tedious financial processes. PHOTO | MWANANCHI

Stakeholders privy to TANAPA and NCAA operations, say the duo deserves at least 70 per cent of their own generated revenues to bankroll conservation and tourism undertakings.

Financial independence is critical for sustaining operations of TANAPA and NCAA and advancing conservation and tourism efforts within the natural-resource rich country.

The decline in the percentage to be retained notwithstanding, this change is anticipated to benefit not only the custodians of conservation and tourism themselves, but also the broader national interests.

As the new policy goes into effect, there is an optimistic outlook for improved operational efficiency and enhanced conservation outcomes in Tanzania’s renowned wildlife and heritage sites.

Mr Rashid Shangazi, the Member of Parliament for Mlale constituency and Secretary of lawmakers from the ruling Chama Cha Mapinduzi, cautions that poor access to tourist sites is critical if the country is to double or triple receipts the industry generates. PHOTO | YOU TUBE

“For us, who promote tourist sites and serve visitors, conservation institutions retaining a portion of the receipts they collect will timely improve the infrastructure in our parks and various conservation activities,” said Tanzania Association of Tour Operators (TATO) Executive Director, Mr Elirehema Maturo.

Conserving wildlife and other natural resources is a very costly undertaking, said the TATO Chief, explaining that it required machinery, vehicles, conservationists and salaries.

The government is incurring huge costs to ensure these areas always receive funds for conservation and tourism activities, said Mr Maturo, adding:

“Leaders have exercised great wisdom in this matter; we thank them for recognising the challenge compounded by the operations costs system and pledging to walk the rhetoric during the 2025/26 financial year, if the speech by the Minister for Finance and Planning in Parliament is anything to go by.”

TATO called on relevant institutions to organise themselves to ensure these funds are properly spent for all infrastructure and conservation activities to meet international standards and the country to attract more tourists.

Mr Priscus Tarimo, the Member of Parliament for Moshi Urban, is upbeat the government’s decision will see feeder roads in national parks maintained and the country’s tourism industry competing with neighbouring countries. PHOTO | PARLIAMENT

“With good infrastructure, tourists will be even more interested in the products they yearn for. Challenges in accessing the products reduce visitor satisfaction,” Mr Maturo cautioned.

It is expected that the retention system will also go a long way in reducing operational costs for tourism companies, as poor infrastructure damage their vehicles, leading to the failure of their businesses to make handsome profits.

The 2025 Election Manifesto of the ruling Chama Cha Mapinduzi eyes eight million local and foreign tourists by 2030, if re-electted, to boost the contribution of the travel and tourism industry to the country’s GDP from the existing 17 per cent to 20 per centΩ

Patty Magubira

The Tranquility News Reporter/Sub Editor, Tanzania

Patty Magubira is an experienced environmental and business editor whose career started at the Tanzania's state-owned newspaper - The Daily News. He is a man of perfection. Aided by his extensive training as a community forestry expert before joining Tanzania School of Journalism. Magubira had successfully held various key posts in newsrooms, giving him an unmatched connections in media fraternity. Having worked as a bureau chief in Arusha and Mwanza, he managed to build a team work, boosting sales to the highest level ever. He was then promoted to a sub-editor after completing a training in Nairobi, Kenya. His incredible experience, critical thinking and exposure are critical to the quality of any media outlet.

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