Political leaders taking accountability is not enough because it gives room to those carrying out crimes to continue. He said he had directed the Presidential Delivery Bureau (PDB) to work on the investments climate in the country.
Mr Kikwete pointed out that 2014 is a unique year because it is one when it would be 50 years since the Zanzibar revolution in January 12, 1964 and a jubilee for the People's Republic of Zanzibar and similarly half a century since Tanganyika and Zanzibar came together to form the Union of Tanzania on April 26, 1964.
On the war against drug trafficking, he said that in 2013, some 1,261 kilogrammes of heroin, 3 kilogrames of cocaine and 89,293kilogrammes of bhang were arrested with 1,631 brought before courts of law.
The president also reported that the government was at a 'good' stage of setting up a special task force to fight narcotic drugs in the 2014/2015 financial year.
He noted that crime had gone down in 2013 as compared to 2012. Reported cases of crime were 6,872 in 2012 and 6,409 in 2013. On peace, solidarity and tranquility, he thanked religious leaders for having prayed for the country and its leadership throughout 2013.
He spoke in detail about other areas including education, environment and climate change, Operation Kimbunga, water, health, high learning education, housing, regional cooperation, international cooperation and the world's recent loss of South Africa's first black President Nelson Mandela.