Wednesday, December 19, 2012

South Africa: Walking the Freedom Fighters' Street


Johannesburg — On a dry land of Vilakazi Street in Orlando West to the South of Johannesburg, well known as the city of gold, you will come across a man-made stream close to the Soweto Museum.
The water that is made to flow consistently in the stream is said to symbolize the blood that was lost during the struggle for freedom.
There isn't that much wealth and beauty in Soweto Township except for the rich history that made South Africa what it is today, free at last.
(The writer standing while pointing at one of Soweto houses while in Johannesburg, Soweto recently) 
At the Museum surroundings also, there is a huge stone that the tour guide who introduced his name to us only as Abel, says it represents the only weapon that was used to fight for their freedom.
It is a 30 minutes drive by commuter from the heart of Johannesburg at De Korte street in Bloemfontein to the Museum where memories, from the loss of lives to the brutal acts done to many South Africans by the apartheid government is witnessed through recorded voices and images.
We were 15 of us, all journalists from the SADC region selected to attend the "Freedom and responsibility of the media", the training courses offered by GIZ, the German Society for International Cooperation which also sponsored our trip to Soweto and Vilakazi street.
The training mainly focused on participants from the SADC region countries of Malawi, Zambia, Tanzania, Botswana, Namibia, Lesotho, Madagascar, Zimbabwe, Mauritius and Democratic Republic of Congo.
As we arrived walking towards the entrance of Soweto Museum surroundings, we came across a thick huge stone that our tour guide Abel said symbolizes the only weapon that was used by South Africans to free themselves from the apartheid government.
The stream origin is seen with a huge picture frame of Hector Zozile Pieterson, a 13 year school girl who was shot dead by the then apartheid government, as students staged a protest against the use of Afrikaans language as a medium of instructions in Soweto in1976.
 (The writer  showing the portrait of Hector Zozile peterson being carried by her brother while a sister runs along them)
She is seen being carried by her brother as her elder sister run alongside while shedding tears. We weren't lucky to see Hector Zozile Pieterson sister who is said to work at the Museum because she had a day off that Saturday.
Abel says the picture showing Hector Zozile Pieterson in a frame at the Museum surrounding being carried by her brother after she was shot dead is actually the factual one taken in 1976.
Hector Zozile Pieterson died at an early age of only 13, she never had a chance to prove to the world about her rights, and the work for what she stood for, fighting for her country.
But, she left to us with a history that makes South Africa and Africa at large proud of what it is today, free at last.
The outside of the Museum is as reach in history as the inside. From the stream, there is also a thick broken wall from where the stream is said to originate. These broken walls Abel says represent leadership failure to protect civilians from bullets.
There is also in the stream basement a line of grass planted at the middle of the stream that symbolizes the bullets that were being fired at civilians.
Abel says the trees that are planted surrounding the building and the area depict the sole protection that the citizen could seek.
"The authorities had failed to give us protection and the only protection we had, was from tree-trunks" says Abel who is in his 30's as he paraded us from the outside Museum.
He might not have experienced the freedom fighting the likes of Hector, but he knows his roots well and is well informed of all the happenings then.
The inside of the Museum is full of the tales of the struggle to freedom of South Africa, the only country which bears the continents' name.
There are pictures of freedom fighters heroes hanged on the walls of the inside Museum scribbled on with strong messages and the persons' profile.
There are messages of "Ubuntu" translated from Zulu as "humanity to others" and of course the ANC slogans which was used to evoke the struggle to freedom.
Though, you will not be allowed to take pictures from the inside of the Museum and no one dared to ask our facilitator Sigrid Thomson about how much GIZ had paid for us as an entrance fee to the Museum.
"You won't be allowed to carry and take photos from the inside Museum and there is no need for a tour guide there because all the messages are self explanatory, but you will enjoy taking photos of the outside surroundings of Vilakazi street home to two internationally recognized activists."
But we did have a chance to see video images of the hardships and torture that our fellow freedom fighters, the young energetic citizen fighting for their rights had endured. The loss of lives and torture that people had endured being previewed in video tapes and audios revolved the sad colonial memory to our mind and we couldn't hold our tears from running down our cheeks.
Yet the best thing that one can do after watching all those tapes from the recorded video images and audio sounds is to learn to forgive, a thing of course best practiced by the man himself.
I mean Nelson Mandela whose 27 years imprisonment left him without a grudge against the apartheid government. He (Mandela) alone knows the term "forgiveness" best than anyone else and has lived to walk that talk.
It is this Soweto we visited where the famous actress Whoopi Goldberg and Leleti Khumalo's stage movie of "Sarafina" was developed to commemorate the loss of school children who died in 1976 in protest of the use of Afrikaans' language as a medium of instructions in schools during the apartheid government.
And it was here at Vilakazi Street where the first house of Mandela was located and still remains but as a Museum.
Mandela stayed here for 13 days after his release from prison on February 11, 1990 and went on to stay at the Beavily hills, (the other side of Soweto) with his wife Winnie Madikizela Mandela for less than five years.
You will still spot a number of European tourists taking photographs as you walk around Vilakazi street and in front of Nelson Mandela's house where there is a wide glass frame scribbled "Mandela House"
 (The writer with a group of participants of summer academy at Madiba house at Vilakazi street in Orlando West)
There is also Bishop Desmond Tutu's house on the same street of Vilakazi that made me rethink of why out of all the places the two men decided to come and experience first with the poor locals of Soweto in Vilakazi street.
Abel says the Vilakazi street was so famous during the 2010 World Cup championship that the authorities had to ban more tourists from visiting the place because the place couldn't hold any more tourists.
Soweto with a population of over 3 million people has with it 32 townships which are all ethically divided.
But life is still improving in the city where a number of tourists visit each day to the famous home of the first black President of South Africa,
After almost two weeks stay in Johannesburg, South Africa, without any experiences of power interruption to buildings, traffic lights to the sounds of generators, I was welcomed back to Dar es Salaam airport with darkness from streets to buildings.
There was a loud sound of generators that could be heard coming from few houses with light on as I headed back to my home in Kinondoni district. It is an experience well learned.

Monday, December 3, 2012

Tanzania: Fight Weight Gain With Vegetables, Say Experts




Medics often advise people to consume food with fewer calories if they want to lose weight. Yet in Africa, vegetable consumers have for long been seen as inferior, or people who are not affluent.
This trend however is dying out. There has been a growing demand for vegetables in the recent years due to diseases that are associated with animal protein, says Mr. Hassan Mndiga, the Training and Outreach Coordinator at the World Vegetable Center.

(Mr Hassan Mndiga, the Training and Outreach Coordinator at the World Vegetable Center Photo By Kenan Kalagho)
The world vegetable center is providing opportunities to farmers in the country and especially in Arusha by promoting vegetable growing through research and breeding processing. Mndiga says the project of growing vegetables and research is really paying and farmers can improve their income as well as educating their children if fields are properly managed.
"There has been a growing demand for vegetables in hotels and at the family level people are shifting trends from animal to plant protein," notes Mndiga.
"There is very low consumption of vegetables in the country due to the lower vegetable production and yet urban people have a "vegetable versus cholera" notion which needs to be stopped" Mndiga says
According to Ms Rose Dusabeyezu, the Research Assistance in Seed Unit at the center, the organization also has a seed bank that reassures that seeds are kept with purity in order to maintain the quality.
Dusabeyezu says the center also makes sure that all the partner states in the region have access to vegetable seeds while at the same time distributing them to neighboring countries of Ghana, Zambia, Cameroon, Mali and Malawi.
Commenting on adoption of GMO's, Mndiga says that there are many pros and cons that need to be evaluated so no need to rush.

Tanzania: Tomato Seed Worth Its Weight in Gold

East African Business Week (Kampala)


By Kenan Kalagho, 26 November 2012

Forget about the the gold in the mines, the money is in the gardens with tomato seed breeding.
If local miners in the country had knowledge about the price of a kilo of tomato seeds in the European market, they would have shifted their attention from the mines to the field of vegetable seed breeding.

(Mr Herald Peters, Rijk Zwaan Afrisem MD explaining a point to a journalist touring his breeding firm in Arusha, Photo By Kenan Kalagho)
About thirty kilometers south of Arusha town lies' Rijk Zwaan Afrisem, a company that deals with conventional vegetable seed breeding like tomatoes, cucumber, sweat potatoes, egg plant, Chinese pepper and many other vegetable varieties mainly for export to European and other international markets.
Mr. Herald Peeters, the Managing Director for Rijk Zwaan Afrisem says his company has spent around $1,5 million (1.2 million Euros) investment in seed breeding.
He however points out that all these investments that are involved in the process of conventional seed breeding that takes up to more than 10 years usually pays off because a kilo of tomato seeds fetches about $82,727 (Euro, 65,000) in Europe where a tomato seed will give you $0.32 (Euro 0.25 cents).
Peteers says his company has already won the international seed certification and is ranked amongst the 10 best international seed breeders"
The greatest challenge Peteers say is on low production of seeds and labor efficient caused by low education in the field of breeding considering that most of graduates from Sokoine University of Agriculture (SUA) are employed on temporally basis.
According to Abel Kuley, a professional horticulturalist with the firm, there has been lack of knowledge to farmers on drip irrigation because most of them are growing vegetables traditionally.
"We teach farmers to cultivate vegetables in a modern way no matter their varieties, Mr. Kuley says,
and adding that improved hybrid varieties have however proved to have higher yields than local varieties.
For the hybrid variety to give you that yield you need to give it sufficient water at the right time while also ensuring that fertilizer application and weeds is done at the right time insisting that after the training the choice is left to a farmer on whether or not he should adopt the new hybrid varieties.
He further points out that his firm through partnership with Fintrack and the Dutch government have been able to train farmers on capacity building and 30 of them have already adopted the green house system.

Tanzania: Economic Growth Fails to Reflect

East African Business Week (Kampala)


By Kenan Kalagho, 19 November 2012

Dar es Salaam — Government has been asked to improve sector interconnection to allow the movement of the economy in the way that could benefit majority of the citizens.

Speaking during the launch of the Second Tanzania Economic update symposium that was organized by the World Bank, renowned economist and lecturer of the University of Dar es salaam Prof. Samuel Wangwe said itwas important for the government to focus on Small and Medium Enterprises (SME's) if the country was determined to move the economy forward.
(Pro. Wangwe of REPOA Centre stressing a point  during the recent update of Tanzania Economic update review conducted by the World Bank Photo By Kenan Kalagho)

Prof. Wangwe said that instead of the government focusing on large entrepreneurship business which touch few citizens, it was high time that every citizen participated by targeting SME's that employ majority of the Tanzanians.
"There is no way we are going to feel the growth for individuals if we do not target the rural economy where the majority of the population is involved in the production process on a small scale," he said.
Wangwe said that the country needed to look at how to create a good investment climate that would lead to job creation so as to solve the urbanization issue while at the same time looking at how the rural population would benefit from agriculture through subsidy programs and market access.
The second biannual Tanzania economic update stated that despite the country's difficult external environment, it still managed to post a macroeconomic growth of 6% over the past year which according to the report, resulted from the government's flexibility in utilizing fiscal and monetary policies.
The report titled "Spreading the wings: From Economic growth to shared prosperity" is aimed at fostering constructive policy dialogue between stakeholders and policy makers to stimulate debates on essential economic issues.
The lead economist with the World Bank for Tanzania, Burundi and Uganda, Mr. Jacques Morisset noted that with a GDP growth rate of 6.5% during the 2011/12 and manageable fiscal and current account deficits, Tanzania has performed better than most developed countries and better than many emerging economies, including India and Brazil.
However many experts argued that there was need for the country to look at the economic trends that would reflect the improvement in the lives of majority of the citizens instead of weighing the economy by looking at sectors like mining, hospitality and telecommunication.

Tuesday, November 13, 2012

Tanzania increases power connectivity

EAST AFRICAN BUSINESS WEEK
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DAR ES SALAAM, TANZANIA - In order to be certain that the country will move into the middle income status by 2025, there is need to make sure that 30% of Tanzanians have access to electricity by 2015.
 (Electric poles in one of the streets in Tanzania )

Speaking during a special program on a local Independent Television (ITV) dubbed “dakika 45” in Dar es salaam, the Minister of Energy and Minerals Prof. Sospeter Muhongo said only 6.6% of the rural Tanzanians are connected to the power grid out of the total 18% population that have access to electricity.
Prof. Muhongo said there can be no reduction of poverty if the majority of the citizens lacked access to energy, saying cheap, availability and accessibility to energy would make the country competitive in the region and move its economy forward.
“The country’s vision 2025 have clearly stipulated to reach the status of a middle income in 2025,” Muhongo said adding “Unless the economy of the country is driven by the availability of cheap and reliable energy, Tanzania was not going to attain such a status”
Prof Muhongo said for this to happen, there was need for the country to record a growth of 10% for a period of 10-15 years, saying this can only be realized with cheap and reliable energy that would be accessed to the majority Tanzanian population.
He underscored that the government has currently reduced the electric connection fee charges by 50-70% in order to allow more citizens be connected to the national grid while at the same time encouraging Rural Energy Authority (REA) to make sure that the majority of the rural population is connected with renewable energy.
Muhongo said the government was looking at the sources of energy and that at present the country is moving away from the unreliable hydro energy to gas whereby 65% of the total energy production in the country is from gas.

Tanzania: Dar es Salaam Spends U.S. $91 Million in Water Development



Dar es Salaam — The government has disbursed a substantial amount of funds for water development in order to reach the millennium development goals by the year 2025.
Speaking in Dar es Salaam at the opening of the seventh joint water sector meeting the Minister of Water Prof Jumanne Maghembe said since 2008 the government in collaboration with Development partners (DPs) committed funds to finance the five year WSDP phase1 from 2007/2008 to 2011/12 financial years at a cost of $951m.
Prof. Maghembe said the government committed $251m which is equivalent to 26% of the total amount while $700m which was going to be contributed by development partners was equivalent to 74% of the total costs of the project.
The minister however noted there are some delays in the implementation of the projects which has led to a hike in the implementation funds leading to delays in the execution.
He noted in order to achieve the 2000-2015 MDG's and Mkukuta 2010-2015 there is need for the government to increase access to water from 57.8% to 65% in rural areas by increasing both the coverage of sewerage services from 18% as of 2010 records to 22% by 2015 while at the same time increasing basic sanitation from 86% in 2010 t0 95% by 2015.
Maghembe added there is need to make sure all basin institutions are strengthened which will increase access to clean and safe water in rural areas to 90% saying this will also lead to universal access of water in urban areas by 2025. The minister said some of the achievements that have been realized since the inception of vision 2015 included the promotion of institutional and legal reform at transboundary while at the same time addressing multi-sectoral at both national and basin level.
Maghembe said that at the local government authority level, around 11,805 water accumulative points serving a population of 3,119,802 have been built and rehabilitated of both latrines and sensitization of people on sanitation have been realized.

Tanzania: U.S Firm Aids Tanzania Energy Projects




Dar es Salaam, Tanzania — A US based Persistent Energy Partners LLC an affiliate of E+CO Energy is working with local companies to improve rural access to renewable energy.
(A customers listens tentatively on how the solar panel works as she weighs her pockets, most Dar residents purchase such panels as a standby powerdue to unreliable hydro power Photo by Kenan Kalagho )
Speaking exclusively to East African Business Week during the launch of Persistent Energy firm the Chief Executive Officer of Persistent Energy Partners Christopher Aidun said there are 22 companies are collaborating with Persistent Energy to make sure that they connect rural areas with renewable energy.
Aidun said his company which has its presence in East and West African countries is aiming at making sure that local renewable companies have access to capital. This will be done through having projects like rural electrification being funded with majority of rural villagers with electricity.
"We have the best investment in the region and this has resulted from the economic growth that has been realized in the East African region for the past years, Aidun said, adding that they have decided to invest in countries where they can be able to see the impact and generate income for reinvestment"
The CEO noted for the past 10 years Persistent Energy has been investing in clean renewable energy thus providing social and environmental benefits to communities in rural areas.
He said his company aims at reducing deforestation by downing the use of charcoal, and burning of wood fuel used for cooking through funding institutions with capital that can best bring its innovations of renewable energy to rural areas.
Aidun names companies that have so far benefitted from the funding from E+Co as including, Afro (T) Limited, Bicol Solar, Barkat Enterprises Limited Ensol, and Fadeco trading among others that operates in different parts of Tanzania.
He underscored that Persistent Energy Partners plans to further invest in clean energy business in East Africa with a focus on off-grid solar retailers, installers and distributors, noting that his company was looking for talented and capable entrepreneurs requiring additional growth capital in their target sectors.

East Africa: Region Urged to Adhere to Monetary Union Protocols



Dar es Salaam, Tanzania — With prospects of South Sudan joining the East African Community later this year, making it the sixth country to join the bloc after Burundi and Rwanda, the EAC member states have been asked to harmonize Monetary Union policies if they are to have the common currency as the bloc moves towards attaining a political federation.
                                           (The Minister for EAC Mr Samuel Sitta)
Presenting a paper on 'Euro Crisis and lessons for EAC', in Dar es Salaam, Tanzania Minister for East African Cooperation Mr. Samuel Sitta said the East African regional bloc is undertaking different negotiations within the member states which will lead into the signing of the Monetary Union protocol.
Sitta said as the bloc moves into the Monetary Union, there is need for the regional bloc to fully implement and adhere strictly into the signed Monetary Union protocols like the trend of government borrowing in order to create a conducive environment.
"The East African Community is going to have a criterion for fixing the limits of restricting budget deficit borrowing if the region is to remain with a strong currency; Sitta said adding that "the system of borrowing had affected much the European Union where countries borrowing under the mortgage scheme had inflated the value of buildings."
He said full implementation of the Customs Union and Common Market signed area by the member states were necessary condition for attaining the real economic convergence in the region and qualify as an optimum currency area capable of establishing a sound and robust monetary union.
Sitta however noted, while with EU experience, the road towards Monitory Union was challenging, the attainment of agreed nominal convergence criteria in the region without underlying real economic convergence was not sufficient for the creation of a sound and sustainable monitory union.
He pointed out while imposing enforcement of financial sanctions against sovereign state in the member states will prove to be a difficult task, the adherence to the fiscal rules by the member states will depend much on the willingness of the states and their national development challenges.
The EAC minister also said the real economic convergence will lead to homogeneity in national policies among partner states and thus cushion against conflict between national and regional economic policies which could hamper the well functioning of the Monitory Union and that the introduction of surveillance mechanism was an important tool in regulating the macroeconomic imbalances.
"One market means that we (in the East African region ) will be proclaiming for one investment which will require one currency, Sitta said, adding that however difficult the Monitory Union might be, it will be good for the region and improve the region's economic development"
On his part the Kenyan Ambassador to Tanzania Mr. Mutinda Mutiso said the foundation of integration was to trade and exchange the value of goods in that creates an environment into doing the business in a bigger way.
He said there was need for the EAC to learn from the experiences of the EU and the Euro Zone crisis because the bloc was one of the partners' in businesses where goods from the EAC regional bloc were being exported.

Wednesday, October 24, 2012

Experts warn on Mobile money tax


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DAR ES SALAAM, TANZANIA - Following the recent proposal tax on Kenya mobile money transfer by the Kenyan Finance Minister, Tanzania economists have warned that such a step in the country would mean more mobile companies losing customers and dwindling mobile money transfer in the country.

Speaking to the East African Business Week, renowned economist Dr Prosper Ngowi, a Senior Lecture at Mzumbe University Business College when asked on the implications these tax introductions could bring to the country, he said that although Tanzania needs a lot of new sources of funds, recommending tax on mobile companies would mean transferring such costs to the users and therefore reducing the rate of communication in the country.

He said that the transfer of mobile money in telecommunication companies was being done in relatively small amounts and this benefitted a lot the senders and recipients from these transactions.Taxing mobile companies and or customers meant that users will end up suffering more.

"People are moving away from companies that charge for receiving money to those that are not charging, even if it is Tsh.1,000" Ngowi said adding that the government should make sure that such taxes be introduced on telecommunication companies expenses."

He noted that besides the size of the market,  tax was also one of the many factors that both foreign and local investors look out for as far as investment was concerned and that conducive taxes was an avenue to attract investment.

Tanzania’s Deputy Minister for Communication, Science and Technology could not be reached for comment on whether government was also considering it as a step of sourcing for areas of increasing government revenues in order to prepare the country to become independent as far as the budget is concerned.

Dar es Salaam starts waste management system


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DAR ES SALAAM, TANZANIA - With a daily increase in population in cities around Africa, concerns about how to manage waste products becomes even more.
This encouraged Ilala Municipality Council in Dar es Salaam to come up with the best ways of waste management aiming at creating more jobs to school dropouts. Mr. Jerry Silaa, the Ilala Municipality Council Mayor told East African Business Week in Dar es Salaam the municipality has opted to manage its waste in order to generate income.
 (A well managed roundabout in Dar es salaam, Ilala municipal has come up with best ways of managing waste, Photo By Kenan Kalagho)
According to Silaa, Ilala municipality council alone produces about 1,088 tons of waste products on daily basis while only 450 to 550 waste products are collected daily.
The newly introduced system if applied to other municipalities of Temeke and Kinondoni he says would be able to create more jobs and improve family incomes.
The mayor pointed out the system of waste management goes along with city beautification which he says needs to be cost effective and is already in progress by targeting all the open space areas in Dar es Salaam and city roundabouts.
He said Ilala municipality council alone uses $1.27m (Tsh.2bn) every year in waste collections and says there was need for the stakeholders to finance the city cleaning in the city in order to attract more tourists.
Mr. Silaa says currently the city beautification is being undertaken by his municipality in collaboration with stakeholder which aims at attracting more tourists, saying there is need to have places which could attract tourists and Dar residents in at large.
"If you go to Europe and many other places in Africa, their cities have beautiful places where tourists are attracted to take photographs adding that Dar es Salaam has been lacking such places and the municipality has already started the beautification in different localities of the city" says the Mayor.
According to Mr. Samuel Bubegwa, the Municipality Waste Management Officer, the municipality in collaboration with  Arthi University are running a cost effective waste management project at Buguruni to the West of Dar es salaam.
Bubegwa says the municipality opted for a profit way of managing waste product in the city in order to allow the municipality to generate income while at the same time help the community in job creation to Ilala municipality dwellers with a population of about 634,924 according to 2002 Tanzania's population census where around 40.5% of its residents are jobless.
He says this pilot project has been first launched in highly populated unplanned areas of Buguruni in Dar es Salaam city where they have been able to employ many city dwellers in the production of compost manure while at the same time help the city dwellers to best collect bottles for recycling.
"This system is being practiced at community level where quality control is being implemented in collaboration with experts from Arthi University of Dar es salaam where we have been able to produce composts manure which is generating $800 on monthly basis to the jobless residents, Bubegwa says and adds that there is need to have compost standard so as to compare the quality of the recycled compost at Buguruni with other compost manure."
He says that after the waste is collected, it is crushed by sieve and then shredders before being transferred to windrows after which compost manure is obtained in four days.

Tanzania: Oil Firms Asked to Protect Nature


Dar es Salaam, Tanzania — Following the discovery of oil and gas, the National Environment Management Council (NEMC) says it is important to ensure that the natural resources are managed well without causing negative impacts to the economy.
 (Constantine Shayo Speaking with Journalists in Dar es salaam recently, Photo By Kenan Kalagho)
Speaking during the workshop that was organized by oil and gas stakeholders in Dar es Salaam, Dr Constatine Shayo the Principal Management Research Officer with NEMC) said there is need for more stakeholders to come together and see how they will manage negative impacts that come along with oil and gas.
"We need to gather information to stakeholders about the concerns of the exploration by conducting an environmental impacts assessment as other countries so that oil and gas can be managed successfully and bring about the development needed in the country," Dr Shayo said.
Dr Shayo explained after the discoveries of 9 trillion cubic feet of natural gas around Zafarini-1 and Lavani in Kilwa to the southern part of Tanzania by Norwegian based company Statoil and Exxon/Mobil, NEMC saw the importance of convening a stakeholders meeting on the ways of reducing the negative impacts that comes along with natural gas.
Dr Shayo also underscored that while the country will benefit more with the discoveries of oil and gas in terms of employment opportunities, infrastructure and health facilities construction among others, it was important for the public to note that there were severe impacts that resulted from poor mismanagement of these natural gas and oil.
According to him these negative impacts included air quality degrading, generation of toxic and hazardous materials as well as safety hazards adding that these activities affects the quality of peoples' life and their livelihood and therefore needed to be properly mitigated.
Tanzania has in total discovered about 33 trillion cubic feet of natural gas experts still questions on how prepared the government policies are in managing these resources without causing severe impacts to environment.

Tanzania: Firms Asked to Support Infrastructure in the Region



Dar es Salaam, Tanzania — In a bid to improve infrastructure logistics in the East African region, experts have requested for Multi-national corporations in the region to focus much on supporting infrastructure construction instead of Corporate Social Responsibility (CSR) which brings little effect to the society.
The African logistics experts' conference that convened in Dar es Salaam last week to discuss infrastructure developments in the region said it has become a fashion in Africa where multinational corporations are focusing their support on CSR instead of taking some of their gained profit percentage to help the region logistic sector.
 (Prof. Anthony Beresford exchanging words with Transport Minister Dr Harrison Mwakyembe)
Speaking in an exclusives interview with EA Business Week in Dar es Salaam last week, Prof. Anthony Beresford of Cardiff University who was one amongst the key speakers during the conference said that it was important for multi-national corporations operating in the region with billions in operational capital to give a hand in infrastructure for their own benefits.
"These multi-national corporations need to show the percentage of their turn over to the world by supporting in the areas which does not relate to their business like electricity, transport, water and other new fields" Prof. Beresford said.
He said that for any investment in rail infrastructure which is relatively cheap as compared to other means of transport to take place, the respective countries in the region need first to understand "what goes where" in terms of goods in order to build a picture of flow.
"We need to study the tracking flow of business in the respected areas we focus to start rail infrastructure if we are to operate on profit" Prof. Beresford insisted.
According to the Minister of Transport Dr. Harrison Mwakyembe, transport system was a key element in globalization and economic growth of any country.
"Wining clients in every business depends with the availability of goods at the market, the minister said and added that business cannot sustain if goods do not reach the market."
Dr Mwakyembe said there were a lot of peasants in the region who are willing to grow more agricultural produce but lacked transportation on harvest saying it was important for the workshop to focus on enhancing logistic services.

Friday, October 12, 2012

Tanzania, Malawi dispute for global court


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DAR ES SALAAM,-TANZANIA - It is now clear that the lake border disputes between Malawi and Tanzania will move to the International Court of Justice (ICJ) in the Netherlands.
According to Tanzania president Mr. Jakaya Kikwete the country is making final preparations to present its case at the International court of Justice in The Hague, Netherlands if the two countries fail to reach a consensus regarding the boundary issue.
(Dr. Selassie Mayunga the Ministry's Director of Services and Mapping presenting the official map of Tanzania that shows the boundary at the middle of Lake Nyasa)
In his monthly address to the nation the president explained the talks between the two countries over the boundary have been stalled following Malawi's pullout to what its president referred to as resulting from "Tanzania launching a new map showing the boundary on the middle of the Lake".
"Tanzania and Malawi have been holding talks since the wrangle over the Lake boundary disputes but the talks stalled following Tanzania's Ministry of Lands, Housing and Human Resettlement issuing a new Map showing the boundary demarcations at the middle of the lake."
It was reported that Malawi president had pulled out of the border dispute talks following the publishing of the new map by Tanzania which coincided with a five day meeting in Lilongwe.
It is said that Malawi president had already presented the issue to the Secretary General Ban Ki-moon in order for the Secretary General to refer the issue to the International Court of Justice.
Local newspapers in Malawi have quoted Malawi president Joyce Banda while addressing the nation after a UN meeting in New York that Tanzania were harassing Malawian fishermen and threatening to blow up their boats which she said was unacceptable because according to her the lake belonged to Malawi. 
Tanzania's responsible ministry issued the official map early last week claiming there has been misappropriate representation of the countries border that officials said stands at risk if unofficial maps stand to be used in different advertorials in the country.
Dr. Selassie Mayunga the Ministry's Director of Services and Mapping said it is the responsibility of the ministry to make sure that the correct map of Tanzania is used in all the publications and advertisement in the country.
"No one is allowed to publish, distribute and or use the map of Tanzania in his advertisements without the official approval of the said map at the ministry" the director said
Dr Selassie noted plans are under way to make sure that all illegal maps are revoked and that legal map distributions of the new map that shows all the Tanzania regions, districts and its clearly demarcated boundaries will be sourced at the ministry.
It should be noted that recently in July this year's Tanzania and Malawi exchanged hard words over what Tanzania claimed that it had the right to use the lake that borders it at its southern part with Malawi refuting the claims by saying the lake was wholly owned by the country.
This wrangle between the two countries started after Malawi issued exploration rights of gas and oil to a UK based firm Surestream petroleum on the lake shores to which Tanzania claims it had the right to be included in the tender exercise for the exploration because according to them the exploration was taken place on the Tanzania side.Malawi's late president, Bingu wa Mutharika, awarded an exploration contract to UK company Surestream Petroleum during mounting tension over entitlement to the lake last October. Surestream was one of seven companies to bid for hydrocarbon exploration licenses in the Lake Malawi basin.
The fresh-water lake has been a frequent source of strained relations between the two countries. Until now, the consensus has not yet been given ownership of the lake to Malawi as the President of Malawi claimed he has already presented the issue to the UN Secretary General Ban Ki-moon in order to resolve it at the International Court of Justice in Rome.The lake known to Tanzania as Lake Nyasa also borders Mozambique where a number of its citizen is positioned along the shores enjoying both the income through fishing and irrigation from this third largest fresh water lake in Africa.
Scientists that have studied the geology of the lake for the last 30 years are optimistic that the condition of the lake is ideal for harbouring hydrocarbons which could result into a turning point for Malawian's economy.
Economist says that there is enough geological evidence suggesting the existence of thick sedimentary rock sequences and structures capable of trapping oil under Lake Malawi.
Speaking on a special television program the former Prime Minister of the first phase government Mr. John Malecel said the issue of the Lake and Ruvuma regions, Mtwara once belonged to what was called the great Nyasaland Empire which was demarcated by the then governors of the British colony.
Mr. Malecela however noted that as time passed on the two governors of both the two countries of Nyasaland and Tanganyika had to agree on the terms of sharing the lake.
He said according to the international law and treaties made with several countries having the similar situations countries are said to share the lakes and or rivers that bounds them noting that Tanzania was sharing Lake Gipe with Kenya where as Congo was sharing Lake Albert with Uganda.

Credit reference system to curb defaulters


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DAR ES SALAAM, TANZANIA - The Bank of Tanzania (BOT) has introduced a credit reference system that would create accurate data for borrowers.
This will encourage a culture and responsible credit taking behavior in the financial sector in Tanzania. It synchronizes information on clients allowing financial institutions to access prospective clients' credit history. It reduces incidences of institutions lending to habitual defaulters.
"BOT is certain that the newly introduced system will increase access to credit in the economy and this will lead to reduction in lending rates and lower the rate of non-performing loans," Mr. Juma Reli, Bank of Tanzania Deputy Governor of Administration and Internal Controls (AIC) said.
Reli said t the CRS aims at promoting a sound and stable financial system to build a culture of paying debts.
"This would in turn, improve credit risks management in the economy and increase international and local investors confidence in the country's financial systems," Reli said, adding that lack of CRS  has been one of the major factors limiting citizen access to credit in the banking and financial sectors..
Many small firms and individuals try to borrow from banks and other financial institutions but due to inadequate information about borrowers, lenders have termed it as a high level lending risk..
"There is usually disparity of knowledge (information asymmetry) between the lender and the borrower about the past repayment behavior and the current level of debt and therefore making banks fail to make informed decisions on their lending operation," he said.
He insisted the aim of introducing the credit reference systems in Tanzania is to encourage a culture and responsible credit behavior in the financial system.
The central bank issued regulations for the operation of databank and private credit bureau in may 2012 followed with an engagement of CreditInfo International in assisting setting up a credit reference databank in the country in October 2011.
About 26 banks have embraced the CRS that started in June this year. Nine of them are already upgrading their systems.
BOT's Director of Banking and Supervision, Mr. Agipiti Kobelo said the expansion of credit in the economy is good at making the availability of credit information on commercial, personal or micro-loans indispensable for financial institutions in order to make informed credit decisions.

Kenya in VAT hike
Kenyans could be headed to more tumultuous economic times as the government mull over a proposal to raise Valued Added Tax (VAT) collection from the current 16 per cent to 20 per cent.
This would automatically translate to a rise in the cost of living for the already overstretched Kenyan spender.  Treasury officials last week gave the strongest indication that the government will be lobbying MPs to pass this as part of the controversial VAT Bill.
Globally, most countries are moving toward the 20 per cent figure which has been declared as the official best practice.
Most affected by the bill will be essential commodities such as food, agricultural inputs, and sanitary towels among others.

Kenya inflation down
Kenya's inflation levels have dropped to a record 5.32 per cent from a high of 19 per cent just six months ago.
This drop has been mostly aided by a general drop in the cost of food items which are billed as the main drivers of inflationary pressure.
The opposite is however true with fuel prices which shot up in the middle of this month following the latest review by the Energy Regulatory Commission (ERC).
Pressure is now piling on commercial banks in the country to cut their lending rate to reflect the general drop in inflation and the Central Bank Rate. Players are however reluctant to effect these changes despite pressure from consumer bodies in the country.

Friday, September 28, 2012

Dar es Salaam Bus rapid project slowed

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DAR ES SALAAM, TANZANIA - The much awaited bus rapid project (DART) that is aimed at easing transport woos in Dar es Salaam and in turn lead to improve the economy of dwellers is said to be facing challenges in its implementation.
(The much awaited Dar bus rapid project is being slowed by shifting of water and electric infrastructure, Photo By Kenan Kalagho)
Speaking during the launch of the project the Minister of Works Dr. John Magufuri said the project was experiencing drawbacks in the delays of shifting both electricity and water infrastructures to pave ways for the fast implementation of the project.
Dr. Magufuri was worried that mobile telecommunication companies and DART officials were slow at fast tracking compensations adding that such delays would later lead to increased costs of setting up of the project.
" We are impressed by the pace of  Strabag International, our Germany contractors But we still haven't started constructing the  two deports at Ubungo area and Kariakoo due to the slow pace of compensation from DART agency" the Minister lamented.
The 20.9kilometre first phase bus rapid project construction that stretch from Kimara to the northern part of Dar es salaam through to Ubungo , Kariakoo to the Dar es Salaam central district at Kivukoni is expected to cost $338 million and will see the construction of six lanes with 29 rapid bus stations and two garage.
The minister however pointed out that the construction of road projects countrywide has led to the creation of about 65,000 jobs with Dar es salaam alone having road construction projects amounting to  Tsh991bn ($630m).
On his part the World Bank Country Representative for Tanzania, Rwanda and Burundi Mr. Phillippe Dogier said that Dar es Salaam bus rapid project being implemented was very crucial for the future of the growth of the city.
The World Bank Chief said that it was important for the government of Tanzania to make sure that all the affected communities are being compensated with accordance to the laws of the country noting that the World Bank was keenly looking into making sure that all the citizens being affected by the project are fairly compensated.
Dogier however noted that some 1,800 bus owner will be halted after the project is fully implemented saying there was need for DART to look into possibilities and see how to includes daladala owners to be among the share holders of this newly project of rapid bus transit.
"We need to give preferences of the ownership to the affected business people in the country especially daladala owners by making sure that they buy shares of Dar rapid bus project and be part of the ownership" Dogier said.
The Tanzania Roads Agency (Tanroads) Engineer Mr. Patric Mfugale said that about 20percent of the project has so far been implemented, noting that petty traders and directing the sewerage systems to the construction sites by Dar es Salaam residents was one among the challenges that the contractor was facing and this derails project implementation.
The much awaited Dar bus rapid project commenced in 2005 with a visibility study while the initial construction commencing this year 2012 and expected to be completed in early 2015.
The project is expected to see the construction of roads that would ensure the construction of roads for pedestrians, cyclists and motor vehicle users that would aim at reducing road accidents to a larger extent.
 

Tanzania should emulate Norway oil success

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DAR ES SALAAM, TANZANIA-The country has been asked to learn how to manage Gas and Oil resources so that it can benefit the majority of Tanzanians.
(The Chief Executive Officer Mr. Arve Johnsen presenting a speech recently in DSM, Photo By Kenan Kalagho)
Speaking in Dar es es salaam last week during a meeting that was organized by the Ministry of Energy and Minerals, the Statoil Norway based company Chief Executive Officer Mr. Arve Johnsen said that there was need for Tanzania to come up with policies for the oil and gas sector if the entire country is to benefit from the resources.
He said that the elements and good policies for these natural resources that the country is endowed with were the best practice for a country to move its economy forward and attain its development for both the private and public sector noting that it is only if the government is fully involved in the process that  the development be realized.
"The government is likely to be successful if good policies can be put in place and make sure that the state introduces an operational mining company that will help to oversee the production process and make sure that timely information is released when needed" Mr. Johnsen said.
He noted that Norway, with 50 years experience in both mining and exploration processes, has much to share with the country in order for it to learn how the state can raise the capital in order to be part of the exploration and production of oil and gas resources.
"There is need for the country to know about who will own the pipelines, production process and whether to involve one company or number of them in the whole process.”
He added that due to lack of capital, Norway had to use the reserve it had as a source of capital for the government to have a share in the gas and oil production processes.
He said that there was need for the government to start being involved in the whole processes of production noting that the country should not hesitate to be involved in the process as that would mean it stands a better chance economically as there were a lot of profit in the gas and oil sectors. 
He underscored that with Norway experiences in which there are three companies that were operating in the oil and gas exploration. One was wholly owned by the government while the other is 50% owned by the government and the third company is wholly owned by the private sector.
The Permanent secretary in the Ministry of Energy and Minerals Mr. Eliakim Maswi told East African Business Week that, it was the right time for the country to have these seminars on gas, oil and other exploration companies even before the policies were put into place.
He said, it was important that with the drafting of the gas and oil policies, the government will be able to make inclusions on lessons from Norway so that the oil and gas should benefit the majority of Tanzanians.
"I never knew that in a country like Norway, they had policies that would first benefit the Norwegians before anyone else and that is a good policy that we also need to emulate from them," the PS said.
He said that with the discovery of 33 trillion barrels of gas in Tanzania it was important for a country to look for expatriates from overseas with experience in the sector and see how best we can learn to manage the resources so as to benefit the majority of Tanzanians especially now that we are exploring these resources for business.
The PS also concurred with the Statoil CEO Mr. Johnsen by saying it was important for the government to have the ownership of these resources to make sure that these resources benefit citizens in the country.
Concerning whether the country was prepared in terms of the expertise to manage these gas and oil resources, the PS said that the country has already introduced such trainings in the country and currently there were 10 students being trained at the University of Dodoma in Tanzania while several others from TPDC and the Ministry were oversees receiving similar trainings.
Tanzania hasn't had gas and oil policies since 1952 when the first prospects for exploration started and is expected to start drafting such polices next week.

Monday, September 17, 2012

Africans should trade with each other - OUT

DAR ES SALAAM, TANZANIA - African countries have been urged to open trade amongst themselves if they want to develop and move their economies forward.
Speaking during the Open University of Tanzania (OUT)'s Faculty of Arts and Social Science 20 years' anniversary, the former Prime Minister of Tanzania Mr. Frederick Sumaye said there was a need for African countries to unlock trade amongst themselves for the benefit of their economies.
Responding to East African Business Week in Dar e Salaam last week, on why some African countries including Tanzania is still negotiating for Economic Partnership Trade Agreements (EPA) with Europe, while the said trade agreement were unfair to Tanzania and Africa in general, Sumaye said there was need for Tanzania and other African countries to look at the European markets and see if we are competitive enough to trade with big economy countries of Europe.
"We are trying to jump into these big markets while we know that we cannot cope, Sumaye said adding there were many restrictions trading with European countries markets that have so many equations to make"
He said Africa has a huge market and with the trade that Africa is trading with Asia and China if such trade was to be done amongst African countries, Africa was going to gain more than AGOA and Cotonou trade agreements that has not benefitted the continent.
Mr. Sumaye explained there were Multinational Corporation that were having great influence to trade and were controlling trade in the world for their owns interests and benefits.
"We (Africa) are too small to trade with European countries and we must think of doing business amongst ourselves and utilize the markets with our fellow African states, adding that there is no reason for someone to buy a European product if the same product is manufactured in Zambia with the same quality."
The former prime mister said that there is a dependency syndrome in Africa where African countries think European countries have the responsibilities to develop Africa and this syndrome has made Africa to lag behind economically.
He noted Africans should come up with the programs that will help the region to develop and stop from budget dependency which is failing most of the development projects in the region.
Sumaye said there was need for Tanzania and other African countries to make proper use of the available natural resources in order to benefit the majority of Tanzanians instead of these natural resources benefiting only those who exploit them.
"Being rich in minerals does not make a country rich; we need to stop trading in unprocessed commodities and instead we must turn these products into semi-products and add value to our products by processing them because that will lead to creating employment opportunities as well.
The former prime minister further pointed out that cutting down and exporting timber, cotton and other agricultural products will not make the country become rich but the country need to come with programs that will propel for the construction of industries so that it can export processed commodities.
The former minister however pointed out that, lack of adequate water and electricity are causing hindrance to the flourishing of investment in the region where investors are not assured of these services and doing business becomes expensive for their economy.
Sumaye noted there was need also to put supportive policies on private sector in order to accelerate investment in the country and see the private sector as a partner by supporting.
The third Phase President of Tanzania, Mr. Benjamin Mkapa has often been heard speaking against these international trade agreements especially EPA, trades that gives preferences to African countries in trading with the giant economies of the European and Western countries saying such trades were aimed at dwindling African economies and therefore not fit for East Africa and the continent at large.

Tanzania asked to have moral institutions

DAR ES SALAAM, TANZANIA - Lack of political leadership and failure of moral institution to perform their duties efficiently in the country has led to more Tanzanians to be involved in corrupt practices.
This was said by a renowned media columnist and anti-corruption advocate, Mr. Jenerali Ulimwengu in Dar es Salaam last week while presenting a paper on, "Moral Decay in the Society, Tanzania as a case study"
Ulimwengu said that there was need for Tanzanians to stop turning their mindset into competition of acquiring wealth through dubious means in order for them to gain respect in the society, saying there were people in our societies who are poor but still possess authority and respect in their societies.
"We have had that bad perception amongst our societies of saying one needs to acquire a lot of wealth in order to gain respect in the society and this is a very wrong perception" Ulimwengu said.
He said that the citizen needs to establish a spirit of hard work as a way of acquiring wealth, while saving their money in order to have investments that will be used for future generations and this will in turn lead to development in the country.
He noted that if all Tanzanians were paying taxes as per their requirements, the country would be very far economically and “We are failing to move fast in economic development because there was lax with the Tanzania revenue Authority in tax collection.”
“There are a lot of Tanzanians who work oversees and or they win oversees tenders whenever they come back with the money. But they are never asked by TRA authorities about whether they have paid taxes because TRA knows that they too will be asked whether they are paying taxes accordingly," Ulimwengu said.
He pointed out that there were a lot corrupt practices that have engulfed the TRA and this makes them not to be responsible enough with their duties while at the same time the government was failing to use the resources it has to bring about development to the society.
He argued that while Kenya was more corrupt (using the term ‘mafisadi’), its people were not as corrupt as Tanzanians because, according to him, Tanzania’s corruption is being exercised by many people as compared to Kenya whose corruption was being exercised by few people.
Tanzania has in recent years been involved in the BOT twin towers scandal that involved the misappropriation of funds, embezzlement by Mr. Amatus Liyumba the farmers director of administration and human resources at the Bank of Tanzania (BoT), the electricity Richmond scandal deal that led to the country losing Tsh.179bn on charges, the EPA scandals that involved 20 suspects in the Tsh133bn plus embezzlement of EPA accounts through the Bank of Tanzania.
According to Ulimwengu, other corruption scandals include the radar deal purchase from BAE system of the United Kingdom that led to the loss of more than Tsh.26bn and the money was later returned by the UK government but questions remain on the whereabouts of the said cash and also the sale of government house at a throw price to government officials.
He said it was important to note that the country is experiencing the worst extent of corruption and if these practices are not halted and or controlled the country could turn into chaos.
According to Prof Omari of the Open University of Tanzania, there are many Tanzanians who have acquired wealth through corrupt means and built themselves expensive homes in a country where the mortgage system is at a stand still.
According to Ulimwengu, there is a need for the country to have the independence of the three pillars of the state so that they can be able to hold each other accountable, in order to move the country forward.

Religious tensions mar Tanzania’s census

DAR ES SALAAM, TANZANIA -Tanzania kicked off the population and housing census on 25th August that was to take a period of five days and later given an extension of up to 8th September this year.
The population and housing census was marred by Islamic religious sects who had wanted the religious section to be included in the census claiming that it was important for them to know the status of their population.
These claims however were received by mixed feelings from both the government and other religious sects claiming such inclusion was not important to a country like Tanzania that had no experiences in religious and tribal segregations that were being experienced by other countries.
The census was aimed at knowing how best the government will be able to implement its development plans and not otherwise.
Tanzania President Jakaya Kikwete was quick to note in his national address that there were sections of people circulating words, inciting and discouraging them from participating in this years' population and housing census.
The president noted that there was a group of Islamic religion who had sought for the addition of a question on religion in this year's population and housing census from the National Bureau of statistics office to include a religious section in order to be identified according to their faith saying such a racist questions was abolished for the census inclusion soon after independence as it aimed to divide Tanzanians.
These queries for including the religious section in this years' census was raised after the release of the population statistics from the Catholic Bishops Council of Tanzania, Tourism Board and Broadcasting Corporation Commission claiming Christians in the country were outnumbering Muslim a thing that was opposed by the section of Islamic faith in the country querying about both the accuracy and justification of such statistics.
However, despite the President's speech urging all people especially of the Islamic faith and the head of Islamic faith in Tanzania, also Chief Sheikh Shaaban Issa Simba urging all the Islamic religious people to participate fully in this year' population and housing census, there were still reports of many Tanzanians of Islamic faith not wishing to participate in the census.
It was reported in different local media houses in Tanzania during the weeks of the census about the arrest of Islamic sections who had refused to be counted in this year's population and housing census and most of them were being brought to court to answer charges of going against the directives of the state.
Speaking last week in Dar es Salaam, the Commissioner for Population and Housing Census Ms Hajat Said pointed out that there were several arrests that were made by the police force for failing to abide by the laws of the land.
Other regions includes Kilimanjaro also lying to the northern part of Tanzania where according to the Commissioner for the census the police information said that it was leading in the number of those who refused to be counted and several arrests were made. Mtwara located to the south of Tanzania also was reported with five arrests.
According to the Commissioner this year' population and housing census have had several challenges and insisted that this years' census was like a "war" which the government had made all the preparations to make sure that the whole exercise proves a success.
Ms Said pointed out that for experts, taking too long in the census exercise means that the statistics being collected will have doubts due to "memory lax" which she said with a longer duration of the exercise people tend to be registered on the last minute thereby coming up with incorrect figures.
She again pointed out that the aim of the census was nothing to do with the government wanting to know ones religion and or the population for every religion in the country but rather to see on how best the government can distribute social services to its community with regards to the available peoples' population.
She however noted that Tanzania law permits every individual and or organization to conduct a census and come up with his own statistics while noting that such statistics are not being included for use by the state because the government had its own way of carrying out its population census. Some tribes like the Hadzabe refused to be counted unless they were provided with Bhang, illicit brew (Gongo) and monkeys' meat.
The question is; Will Tanzania have the correct figures of this year' population and housing census with some members of the Islamic faith still refusing to be counted?

Tanzania posts good growth in EAC

DAR ES SALAAM, TANZANIA-Rwanda's economy has come first in the region with a considerable recorded growth of 7.7%t as in the first quarter of this year.
Tanzania came second with an economic growth of 7.1%t while other African states of Kenya and Uganda recorded a growth of less than 3% in the same quarter.
The BOT governor Prof. Benno Ndulu said in Dar es Salaam that Tanzania economic growth record of 7.1% as compared to 5.1% that was recorded last year gives the country an assurance of the projected growth of 6.9 %.
Unveiling the enhanced Government Securities System that will aim at ensuring treasury bills and bonds auctions conform to international best practice and keep pace with technological advancements, the governor said that the country also experienced decline in inflation that he said currently stands at 19.7% as compared to 19.8% July inflation record.
He said the decline in inflation has mainly attributed to a sharp drop of food prices on the local market.
"There has been a considerable drop of food prices by August this year as compared to the prices that were recorded in the month of January through to June where prices of food stuffs and other commodities remained high for several months" the governor said.
Ndulu said it was important for the public to note that Tanzania has not yet recorded the decrease of inflation as per our expectations and it is neither true to say that the country hasn't done anything to insure that inflation is contained to a single digit.
The BOT governor insisted that in the same quarter of September last year the country had recorded the highest inflation of between Tsh.1,828 ($1.15) to Tsh.1,840 ($1.16) against $1 but since January this year there has been a considerable gains of shillings trading at a constant rate of between Tsh.1,570 ($0.99) and Tsh.1575 (0.99) against $1.
"We usually make follow-ups of the trend of the depreciating and gaining of shillings and this means that Tanzania economy is improving" the BOT governor said.
The governor noted that economic improvement that has been realized in the country through the stabilization of the shillings should not be underestimated because many countries in Africa and some big countries in Europe as well were yet to come out of the 2007 economic crunch.
He cautioned experts and politicians not to make comparisons of the past and present with regards to the country's economy as though the periods were the same saying the public needs to take note of the situations of economic crunch that the country faced before making any critics and remarks about the country's economic status.
Commenting on domestic revenue collections the BOT governor Prof Ndulu said that for the first time in the country's history the collections for 2011/2012 financial year had surpassed the target by about 3 to 4%.
He said that while the government domestic revenue stood at Tsh7.2trn ($4.5bn) the normal expenditure stood at Tsh6.9trn ($4.3bn) saying this trend has not been experienced for the past 4years.
"We do face a lot of challenges due to dependency on foreign aid and or financing that do not come at the right time and sometimes the money is never channeled to the required development projects intended and added that foreign aid last year was anticipated at Tsh2.5trn ($1.5bn) but only Tsh1.7trn ($1.0bn)" the governor said.
He said the public need to know that all the grants for the year 2011/2012 financial year constituted to only 21% of the total national budget while grants and loans from the World Bank (WB) and African Development Bank (AFDB) stood at 32% of the total budget.

Thursday, September 6, 2012

East Africa: Make Stand On EPA - EABC Chief


(Felix Mosha, EABC Chairman)
Dar es Salaam — The East African Business Council (EABC) has stressed the need for the East African Community (EAC) to harmonize their stand with respect to Economic Partnership Agreements (EPAs).
Speaking during the Regional Private Sector CEO Forum that was organized in partnership with East African Business Council and Trade Mark East Africa in Dar es Salaam last week, the Chairman of East African Business Council Mr. Felix Mosha said EAC states must make their stand on EPAs uniform.
Mosha said the government of Tanzania is aware that the region is capable of harmonising EPAs to reach a common goal of safeguarding EA's interests. He said according to Tanzania, EPAs were not implementable and therefore not fit for the region.
The EPA agreements are fully reciprocal trade arrangements between EU and ACP countries that commenced in 2002 to replace the previous non reciprocal, preferential trade access of ACP countries to EU markets under the various Lome convention and the Cotonou agreements.
"The Community needs to come together and safeguard the interests of the region for the benefit of the people within the region" Mosha said.
Things in the EAC region are not moving as expected because most of the people in the region tend to look back from where the train is coming from instead of moving forward to where the train is headed," he noted.
"When goods move from COMESA to Tanzania, how do, we deal with such goods especially if a particular country is not a member of such a bloc?" he queried and added "this is a point that needs to be worked on so that it doesn't become an obstacle in the integration"
He underscored the need to improve both ICT connectivity within the region and infrastructure saying such developments will reduce haulage time thereby creating a business environment in the region to be more effective.
EAC Secretary General Ambassador Richard Sezibera pointed out that EPA agreements provided a chance for the region to negotiate the terms of trade with Europe something that wasn't possible in the 19th century.
"Europe has always traded with us out of our own interest, sometimes without our will. Now for the first time the EAC has a chance to say this is the way we want the trade between you and us," Sezibera said.
According to him EPA negotiations are being read by partner states and the EA region is negotiating as one entity and the region only negotiates where there is a common position for the member states.