Tanzania needs $600m for climate change

News 

Monday, December 16, 2013

BY KENAN KALAGHO
EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

 (Dr Richard Muyungi centre speaking to Journalist in Dar es salaam Photo By Kenan Kalagho)
DAR ES SALAAM, TANZANIA-Tanzania receives only $20 million (Tsh32bln) yearly from the Global Climate Fund (GCF) out of the total budget of $600million (Tsh290 bln) needed to fight against climate change effects.
Speaking in Dar es Salaam last week the Assistant Director of Environment in the vice Presidents Office Dr. Richard Muyungi said a total of $38 billion (Tsh61trilion) was issued to developing countries in 2011 from the GCF out of the total amount of $90 billion (Tsh144 trillion) needed to fight climate change effects.
Dr. Muyungi said such inadequate funds make it hard for the country to effectively fight against the loss and damage that occurs resulting from climate change.
He said the recent agreements during the just concluded Climate Change Conference (COP 19) in Warsaw, Poland stressed for the need of countries to adhere to using technology that would reduce carbon emissions.
“The Warsaw conference agreed of several important issues among others being instituting international mechanism like insurance on people and livestock affected with climate change that would be able to reduce loss damage, Dr Muyungi said.
He appealed to the GCL to ensure that the amount being released to the country is increased in order to ensure that effects that occur resulting from climate change are effectively and efficiently attained.
He however noted that there has been lack of commitment on funds contributions on part of donors due to the lack of ‘a legal binding contracts’ that would make it a mandatory for respective countries to contribute towards Global Fund on Climate change.
“It is not a mandatory for countries to contribute towards climate change and there is no punishment for any country failing to emit such funds, Dr Muyungi said, adding that the amounts contributed towards fighting global effects on climate change again have stern rules”
He said there was need for the respective countries to manage their own Climate Change Funds in order to make it more accountable and meets the needs of the majority population who have been affected by climate change.
“We need these funds to go into projects that will aim at reducing the occurrence of climate change like tree planting and soil conservation instead of channeling these funds into workshops on climate change that benefits few and or dictate for us its use”.
On his part Mr. Adam Anthony from the Youth of United Nations Association said there was need for African countries to involve youth and especially women in the fight against climate change due to their activities that often have serious implications on weather.
Mr. Anthony said more training was needed to youth in order to allow them to have the required skills on how to manage the effects of climate change.

Tanzania collects $43m in taxes from mining operations

News 

Monday, December 16, 2013

BY KENAN KALAGHO.
EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA
DAR ES SALAAM, Tanzania--The government has collected Tsh70billion (about $43 million) from mining companies in tax royalties between May and November this year.
This was revealed after a recent ministerial advisory board meeting chaired by the Tanzania Mineral Audit Agency (TMAA) Advisory Board Chairman Dr Mayungu Kayandabila.
Dr. Kayandabila said the total income taxes from Resolute Tanzania Limited Mining Company since its inception in 2010 has reached Tsh97 billion ($60 million) while about Tsh6.1 billion ($3.7million) was realized in tax from the same mining firm between May to November  this year
 “Geita Gold Mining Limited has so far paid income tax amounting to Tsh304.2 billion ($189 million) since 2009 whereas around 4.8 billion ($2.98 million) was realized as income tax between May to November this year,” Dr Kayandabila said.
He said despite most mining firms being compliant with paying their taxes, there were still a few that have been dodging.
Apart from royalties, mining firms have to pay a skill development levy, Pay-As-You-Earn and service levy. However by smuggling the minerals out of Tanzania, culprits can evade payment.
He said that the country has so far recovered Tsh1.9 billion ($1.18 million) between May to November this year resulting from the strict surveillance scheme that has been instituted by TMAA to make sure Tanzania mineral resources are prevented from being smuggled outside its borders.
“Around 32 smuggling cases have been reported worth Tsh15.03 billion ($9.3 million) since TMAA instituted inspections at airports in 2012, Dr. Kayandabila said, adding that TMAA has also strengthened audit exercises in major mining firms in Tanzania,” he said.
He cited Tulawaka, Mwadui, TanzaniteOne, Ngaka Coal Mines, Golden Pride, Bulyanhulu Buzwagi, North Mara and Geita Gold Mine.
He said around Tsh77.4 billion ($48 milllion) in tax was collected from Tulawaka Gold Mine since its inception in the country while around Tsh178.9m ($111,429) was collected from Williamson Diamonds Limited. Tullawaka Gold Mine was previously owned by African Barrick Gold.
The Deputy Minister for Energy and Mineral, George Simbachawene said there was need for the government to ensure that TMAA’s performance contributes to the country’s economic successes.
Simbachawene said Tanzania was very much determined to ensure its per capita GDP income reaches (Tsh4.8 million) $3,000 by the year 2025 from the current $640 (Tsh1.02 trillion. The government is putting great importance on mineral resources in playing an important role in realizing the dream.
He said the government is keen to ensure that the required mechanisms are put in place so that it can fully utilize the returns from mineral resources.

Added on: Monday, December 16th, 2013

Tanzania gears up to become gas hub

Resources 

Monday, December 16, 2013
EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

BY KENAN KALAGHO

DAR ES SALAAM, Tanzania- Tanzania is set to become one of the biggest exporters of natural gas in the region with an announcement of yet more discoveries by BG Group (BG).
BG Group announced last week it has found recoverable resources in Mzia, offshore southern Tanzania, across Blocks 1, 3 and 4.
This is good news for Tanzania especially with recent reports that BG and Ophir Energy submitted proposals to build a liquefied natural gas (LNG) plant in Lindi.
According to a company statement the exploration confirmed Mzia as the second giant gas discovery, after Jodari, in BG Group’s acreage offshore Tanzania, with 4.7 trillion cubic feet (tcf) of total gross recoverable resources.
The total gross recoverable resources across BG Group’s Blocks 1, 3 and 4 are now estimated to be around 15 tcf, with further exploration upside.
The Mzia-3 appraisal well, drilled approximately six kilometres north of the original Mzia-1 discovery in 1780 metres of water, has been cored and logged.
BG states that results confirm the reservoir sands are extensive and of similar quality to those found in the Mzia-1 and Mzia-2 wells. In addition, the gas-down-to level proven in Mzia-3 is around 100 metres deeper than that of Mzia-2.
‘Further north, detailed technical analysis of the Block 4 discoveries Chewa, Ngisi and Pweza, which were also appraised and tested in the campaign, was positive with total gross recoverable resources in the block now estimated around 5 tcf,’ the statement reads in part.
An extensive exploration and appraisal campaign of 14 wells started in 2010. Offshore Tanzania has had a 100% success rate with nine consecutive discoveries and five appraisal wells, three of which included drill stem tests showing high flow rates.
BG Group Chief Executive Chris Finlayson said there were sufficient resources for a two-train LNG project in Tanzania.
He said the aim of the appraisal programme was to optimize the future development plan and place the most economic gas into the proposed project first to extract the most value across the chain.
Finlayson said BG Group and its partner Ophir Energy and other partners in Block 2, Statoil and ExxonMobil, are continuing to make good progress in the assessment of a LNG project.

Added on: Monday, December 16th, 2013

Tanzania reaches out to people without accounts

News 

Monday, December 16, 2013

BY KENAN KALAGHO
EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

 (Vice President Mohamed Ghalib Bilal Photo By Kenan Kalagho)
DAR ES SALAAM -- Tanzania wants to capture the 50% of the population who are unbanked by 2016 after the launch of the National Financial Inclusion Framework.
Tanzania Vice President Dr. Gharib Bilal asked financial institutions to make sure that efforts to improve financial inclusion caters for the needs of small and medium agri-business and Micro-Small and Medium Enterprises (MSMEs).
Dr. Bilal said there was need for financial institutions in the country to ensure the affordability of services to the majority Tanzanians
He said the Financial Inclusion Framework that has been made possible by both the private and public sector including other stakeholders, is an important tool in boosting the economy and benefit the majority of Tanzanians.
He said despite the improvement of the financial sector, Tanzania still ranked low on the list for sub-Sahara Africa, with only 17% of adult population having accounts in formal financial institutions. The regional average was 24% in 2012.
“Efforts to improve financial inclusion should ensure SMEs and smallholder farmers are included and reliably informed,” Dr Bilal said.
 He also highlighted the importance of improving the retail system to make sure that the use of mobile and electronic payment is promoted.
A recent World Bank survey shows that only 10.6% of the MSMEs have access to finance from formal institution where as small and medium agri-businesses have only 32.4% access and the rest access their financial needs from informal means such as moneylenders. Moneylenders usually charge relatively high interests rates.
  He said electronic payment is important for the country, because it would enable to spur financial inclusion in agriculture sector that is an engine in attaining the required economic growth for our country.
He said the country’s many challenges that include enabling both access and delivery of a wide range of financial services to the poor particularly in rural areas, will be able to find response in the framework.
The Vice President also said the country is bound to succeed in financial inclusion especially with mobile technology that so quickly spread throughout the country facilitating transfer of payments across all parts of the country.
Tanzania has seen the improvements in the performance of the financial sector for the past years where a total percentage of adults accessing mobile telephone payment services have increased to 90% by September 2013 from 63% that was observed in September 2012 according to the World Bank survey report of 2012.

Tanzania nods Ophir shares sale to Pavilion

Resources 

Tuesday, December 10, 2013

 BY KENAN KALAGHO
EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

 

Welcome: Pavilion Group's CEO Seah Moon Ming (left) with Maswi last week in Dar es Salaam

DAR ES SALAAM, Tanzania --The government has welcomed the intended sale of 20% of Ophir Energy plc, to a Singapore-based Pavilion Energy pte at $1.28 billlion before tax.
Ophir is currently involved with oil and gas exploration in Tanzania.
Ophir Energy plc is in talks with Pavilion, which is a subsidiary of Tamasek Holdings, over the offshore blocks 1, 3 and 4 out of the five assets with a 40% ownership.
This means that Ophir Energy plc now retain a 20% stake with Pavilion also owning 20% while the British conglomerate, BG Group, remains with its 60% holdings.
Speaking in Dar es Salaam last week, the Permanent Secretary in the Ministry of Energy and Minerals Eliakim Mawsi said the government welcomes the sale of the shares provided the proper procedure is followed so that the essential government tax is paid up in terms of capital gains.
Maswi said the government was keen to ensure that oil and gas investors in the country get the required benefits from their investment.
“The government would examine the transaction carefully to ensure it brings mutual benefits to Tanzanians as well as investors,” he said.
 Maswi said he hopes that Pavilion Energy would work with the government to ensure a continued win-win situation.
He insisted on the importance of both the government and investors to be more transparent in all the dealings.
He said in this way the public can be informed of the challenges facing the gas and oil exploration companies.
He said the development of the discovered gas in deep waters was a challenge and a testament to the quality of Tanzanian resources, together with attractiveness of Tanzania as an investment destination.
Dr Nick Cooper,  the Group Chief Executive Officer of Ophir Energy plc Tanzania, said Pavilion Energy represented a positive addition to the joint venture.
He said this is important as they progress through the development phase and into producing high quality liquefied natural gas (LNG).
He said Tanzania remains a core part of Ophir Energy’s portfolio and his company will continue to invest further in the country’s growth through other exploration activities.
“We are also investing much in the country, but at times there are strict tax laws and also how to export the gas to other countries,” Dr Cooper said.

Chinese win contracts worth $150m for Tz roads

BY KENAN KALAGHO,
 EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

Tuesday, December 10, 2013

DAR ES SALAAM, Tanzania--Three Chinese firms have won  tenders for several government road projects. The roads are part of trunk route between Egypt and South Africa.
Speaking in Dar es Salaam last week the Minister for Works Dr John Magufuli said Tanzanians travelling to Egypt and South Africa will soon be able to drive on a tarmac road between Mayamaya and Mela after construction in 36 months.
The projects involve the construction of Mayamaya to Mela at a distance of 99.35 kilometres, Mela to Bonga at a distance of 88.8 km; Mangaka to Mtambaswala that involves 65.5 kms. Total cost is about Tsh256 billion ($158,958,080).
The contracts were signed by Tanroads Chief Executive Officer Eng. Patrick Mfugale on behalf of the government and three Chinese firms, China Henan International Cooperation Company Limited (CHICO), China Railway Seventh Group Company Limited and the Sichuan Road and Bridge (Group) Corporation Limited.
Dr Magufuli said Crown TECH-consult Limited and the German based HP Gauff Inginieure Gmbh and KG-JBG are providing consultation services.
 He said the government is implementing its road sector support project 2 (RSSP2) at a cost of Tsh539 billion ($334,681,270) of which 65.8% of the funds are from the African Development Bank, 29.2% is sourced from the Japan International Cooperation Agency and the remaining five percent is from internal sources.
He asked the Chinese firms to make sure that they commit themselves in implementing such road projects which would to a greater extent help in transforming the economy of the country.
Late last month the President Tanzania Jakaya Kikwete congratulated his government for the zeal shown in undertaking the different road construction projects.
He said such projects will help to promote economic growth.

Addis Ababa dates great destiny

EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

Travel 

Sunday, December 01, 2013

By Kenan Kalagho, DAR ES SALAAM, TANZANIA.

It is a three-hour flight to Addis Ababa from Dar es Salaam and we touched down at Bole International Airport around 7:00pm in the afternoon.

 (Holy Trinity Cathedral in Addis built by the Monarch PHOTO BY KENAN KALAGHO)
I was the lone invite from Tanzania by Bioscience for Farming in Africa (B4FA), a UK-based journalism fellowship programme that takes place in the four African countries of Tanzania, Uganda, Nigeria and Ghana.
We had been invited to attend the 9th Annual Meeting of the African Science Academies (AMASA-9) with the theme ‘The role of biotechnology for Africa’s development’.
Seated beside me in the plane, was Nsubisi Kalunga a district official from Ruvuma Region. He was also heading to Ethiopia for a seperate workshop on entrepreneurship.
On the ground at Bole, I kept wondering why many African countries fail to learn from Ethiopia in terms of how to invest in the airline business, like has been done by South Africa and Kenya.
For those who do not know, Ethiopian Airlines has been flying for  nearly 70 years while many African airlines did not even stay in the air for  a quarter of that period!
There was the hotel kiosk at the airport for ‘Dreamliner Hotel’ where I and my colleagues from Uganda, Nigeria and Ghana had been booked.
My two colleagues from Uganda had arrived much earlier and were already waiting in the lounge as we drove to the hotel located around Meskel Flower Street in Addis Ababa. It is a place very much up to standard with very good services.
While in Addis Ababa, (new flower in Amharic) , I was eager to trace the roots to Ethiopia’s great pride as a nation and people.
Many of the leaders trace their origins to Jewish ancestry. King Emperor Haile Selassie, a former hereditary leader, who was known as the ‘Lion of Judah’ was said to be a descendent of King Solomon.
Our tour guide through the city, John Endegena  first took us to the ‘Red Terror museum.’ This is a monument to the many victims who perished while fighting for revolution against the ‘DERG,’ a dark period in Ethiopian history, in the early 1970s, in which Mengistu Haile Mariam was dictator.
Inside the museum there were thousands of human skulls and bones  apparently awaiting recognition from relatives upon DNA testing. According to a museum guide, Menberu Bekele, most of these people were hanged.
It is a very sad story and remains fresh 40 years on. Indeed Ethiopians do not want to forget. Hence the words, ‘never ever again’ .
It was  also a surprise to learn that most of the workers taking care of the museum were also the survivors of that dreaded time.   We moved towards an open space called ‘Meskel Square,’ where trainings, sports activity, worships as well as public meetings have been conducted since time immemorial.
On our way to Addis Ababa University and the Holy Trinity Cathedral, our tour guide, John, told us that despite their country having a population of 85 million people with around 85 different ethnic tribal groups, (some are light skinned while others are dark skinned), they all live peacefully without segregation amongst themselves.
The tour guide at the Cathedral showed much admiration for the late Imperial Majesty Haile Sellassie.
He said it was the former Emperor who influenced the construction of the Cathedral from 1931 to 1944 and even after his death in 1974 he was buried inside it.
Inside are three flags representing the navy, ground and air forces with paintings depicting scenes from the Old Testament, through to the birth of Jesus and his disciples in the New Testament. There are also ten pillars to symbolize the Ten Commandments but written in the Aramaic language with the Emperors’ and the Queen tombs lying besides the altar.
Sahile Dereji, the tour guide at the Cathedral said, the place is also a burial place for famous scholars, dignitaries and high profile personalties in the country. This is also where the former Ethiopian premier Meles Zenawi is laid to rest.
We then paid our respects at the premier’s tomb where two armed soldiers were on guard around the clock.
Later we had a chance to experience what Addis nightlife was like. Most of us missed the warning notice at the hotel to be careful  of  ‘Addis city boys’ calling themselves tour guides.  Possibly it was the excitement of going out.
Not long afterwards, we run into a guy who introduced himself to us as ‘Mr. Solomon’ and was willing to show us around the exotic Meskel Flower street.
I and my fellow participant from Nigeria, Kenneth Azahan, became more interested when ‘Mr. Solomon’ suggested that we visit the university girls hostel where he said was a nice place we could exchange ideas with students.
As we walked with ‘Mr. Solomon’ and asked him about the city’s security and safety at night, he assured us that Addis was as safe at night as daytime.
We eagerly followed him to the location south of Meskel Flower Street where we later discovered that the university girls’ hostel, ‘Mr. Solomon’ was referring to was actually a brothel he partly owned or was employed to bringing in foreign customers.
After this discovery ‘Mr. Solomon’ was far less trusworthy to us. His frantic attempts in persuading us to buy drinks for the ‘students’ fell on deaf ears.
We were very much afraid after seeing that he had lied to us. However, we did assure him that we were coming back the following day. Obviously we never did.
However this experience was very much made up for by the traditional Ethiopian band that entertained us at the Hilton Hotel a day before our departure. The music sent many dignitaries and academicians to the floor dancing to the tunes of Ethiopia.
As I woke up the next morning heading back home, I saw the many city towers under construction.
This gave me an impression that Addis was in high gear for development and it was just a matter of time before it turned into another ‘paradise’ city.

Added on: Sunday, December 01st, 2013

Rice varieties to up yields

Saturday, 17 August 2013 16:39 Kenan Kalagho, EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

DAR ES SALAAM, TANZANIA --Three high yield, disease resistant rice verities will  be adopted to be grown by farmers in Tanzania, Kenya, Ethiopia and Uganda.

(EA farmers are set to benefit from new rice high yielding and disease resistance varieties, Photo By KenanKalagho)Nkori Kibanda of the Regional Rice  Center of Excellence at the Agriculture Research Institute (RRCoE), in Mbeya said Tanzania will soon release and distribute three rice varieties aimed at increasing the availability of food in the region.
This is part of the Eastern Africa Agricultural Productivity Project aimed at curtailing the food security in the region through the introduction of research hubs in four regional respective regions.
Kibanda said the Centre of Excellence aims at making sure the country generates the training technology and make sure farmers in the East African region have access to improved seeds and planting materials.
He said Tanzania has shared rice varieties: TXD306, Komboka, and Ziada through inter-country agreements. The varieties are now being evaluated for release and adoption in Kenya, Uganda and Ethiopia.
He said TXD306 and Komboka varieties have already been released in Kenya.
“We have created awareness by putting in place 132 demonstration sites on good farming practice and establishing 111 farmers field schools. Kibanda said there has been a shift  from fishering to farming following the bumper harvests per hectare. He said seeds and good planting materials were an important tool for increased productivity.
With the new varieties farmers are able to produce more than 4.8 tons per hectare as opposed to the traditional varieties where 1.8 tons per hectare could be fetched.
RRCoE has developed regional projects to address production and processing to enable farmers have access to the market especially after increased production.
According to the Production Estimates and Crop Assessment Division Foreign Agriculture Service, food production dominates Tanzania’s agriculture economy with over 5 million hectares cultivated per year of which 85 percent is food crops.

EAC first to gain from new American policy

Saturday, 17 August 2013 16:46 Kenan Kalagho, EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

DAR ES SALAAM, TANZANIA - The East African Community (EAC) is set to benefit from a new United States government policy  to increase internal and regional trade within African countries.
The ultimate goal is to expand trade and economic ties between African countries.
Intra-African trade remains low. Only 11% of Africa’s trade is within the continent, compared to Asia, where 50% of total trade is between countries in the region.
The US is forming a partnership with Trade MarkEast Africa (TMEA), a non-profit consultancy, who are providing the necessary the technical support.
A key issue is making sure that regional trade barriers are removed.
The US Trade Representative Ambassador Michael Froman issued a press statement recently saying the five East African countries of Tanzania, Burundi, Kenya Rwanda and Uganda represented a market with significant opportunity for US exports and investment.
Froman said the EAC has agreed to work hand in hand with the US in advancing the economic ties of investment and in order to build a robust private sector linkage as well as public-private sector engagement under the US-EAC commercial dialogue.
Amb. Froman’s words came soon after a recent meeting with EAC trade ministers and the blocs’ Secretary General, Amb. Dr. Richard Sezibera.
Amb. Froman said President Obama wants to start the Trade Africa Initiative with the EAC.
Basically Tradee Africa involves ensuring investments, regional integration, trade competitiveness as well as supporting the greater US-Africa trade investment.
US imports from Africa are still dominated by oil.
He said that both the US and EAC have launched formal negotiations on Trade Facilitation Agreement with a view of spearheading negotiations on US-EAC Trade and Investment Partnership (TIP).
TIP being sought out in partnership with USAID. Hopes are that the EA trade hub becomes a US-EA Trade and Investment Centre that would later expand US regional trade programs across sub-Saharan Africa.
With populaiton of 130 million, the EAC region is seen as increasingly stable and pro-business.
The EAC is also said to be benefiting from the emergence of an educated, globalised middle class which has resulted into an increased growth in trade. 
This has doubled over the past five years with the region’s GDP rising to more than $80 billion during the past 10 years.
These US-EAC Trade and Investment Partnerships were launched in 2012 with the several ongoing technical and ministerial meetings being held over the past months.

Tanzania in $111m housing project

Saturday, 17 August 2013 16:30 Kenan Kalagho, EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

DAR ES SALAAM, TANZANIA - The Tanzania Building Agency (TBA) has plans to put up a new $111 million government smart village in the north-east of the country.
(Tanzania Building Agency (TBA has plans to put up a new $111 million government smart village in the north -east of the country, Photo By Kenan Kalagho)
This is in a government bid to provide public servants with basic services like housing.
The newly planned government smart buildings would comprise of the ministries allowing the public to have access to various government offices and also housing structures to accommodate government civil servants.
Speaking in Dar es Salaam last week the Chief Executive Officer of Tanzania Building Agency Elius Mwakalinga said the government was prepared to spend some Tsh180 billion ($111 million) in the next financial year for the proposed project.
According to TBA Programme Manager, Edwin Nnunduma, the implementation of the 10,000 public servants housing units is also in the pipeline and would commence in the next financial year.
He said each house would cost some Tsh25 million ($15,446) with the first phase expected to commence in 12 regions of Tanzania including Dar es Salaam, Geita and Njombe saying the houses to be built would have with them different designs.
Mwakalinga said that Dodoma as the proposed capital was lacking basic things like housing and offices and thus making it hard for government offices to conducts their activities in the said capital.
“The government smart village would be part of government plans to transfer the capital to Dodoma,” Mwakalinga said.
He said the area where the project will be implemented has already been identified”
The implementation of the housing units and government ministries offices is part of Tanzania government requirements to meet the increasing demands of the housing sector to its civil servants by 2015 that would to the greater extent reduce the housing deficit to public servants in the country.
Nnunduma said the implementation of the housing project would be carried in four phases and would commence this financial year.
He said the first phase of the project is expected to see the construction of 2,500 houses being constructed in various regions of the country including government offices and that these houses would be built with special specials construction technologies.
“These houses would be acquired through loans to all the public servants in the lower, middle and senior civil servants” Nnunduma said.
Dar es Salaam is expected to have 1,400 houses, Njombe with 50 houses while Geita will see the erection of 150 houses and the rest houses would be constructed in Iringa, Lindi, Mtwara, Mbeya, Mpanda and Arusha Regions. The project is expected to be implemented before the end of 2015.

Ghana: My Week in Accra

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• Business
• Ghana
• West Africa

East African Business Week (Kampala)

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By Kenan Kalagho, 5 August 2013

opinion

Accra — It took us seven hours from Julius Kambarage Nyerere International Airport in Dar es Salaam to Dubai Airport aboard an Emirates flight destined for Accra, Ghana.
We had been invited by Bioscience for Farming in Africa, a Cambridge UK-based firm that has a programme on agricultural science reporting.
We came from Tanzania, Uganda, Nigeria and Ghana. With my colleague Polycarp Machira, we spent six hours in transit at Dubai International Airport. But it was a great experience wandering round the magnificent complex full of a rich variety of wares from all over the world. Accra is a combination of old and new buildings.

 (An employee cleans the surroundings of the Afia African Village Beach hotel in Accra, Ghana Photo By Kenan Kalagho)
Three hours behind East African time, Accra is dry, but not as much as Dubai. The temperatures were hovering around 34 degrees Centigrade as we were driven to the Afia African Village Beach Resort.
This is close to the shanty surroundings along the Gulf of Guinea along the Atlantic Ocean.
Then we sat about with all the tiredness as we were forced to wait for another 40 minutes.
The hotel receptionist told us that tourists had just checked out that very hour from our designated rooms. This is in spite of the fact that we were booked much earlier; actually weeks before!
The fellows from Uganda with whom we boarded the same flight without actually knowing each other had arrived much earlier than us and were already complaining about the unchanged bed sheets in their rooms.
"The bed sheets in my room are stained and torn! I will not use those bed sheets unless they are changed. Our sponsors have paid a lot of money in accommodation to deserve this," complained Sarah Natoolo our fellow from Uganda. Am sure the hotel workers did something to appease her, I never actually got time to ask her the outcome.
Despite the fact that Afia African Village Beach Resort was a nice place to stay, I realized that the staff lacked hospitality. It wasn't only in Ghana. I was told by my fellow Nigerian Kandi Mohammed that one would equally experience this same lack of warmth back home at their hotels as well.
We were soon joined by our Ghanaian friend, Noah Nash, who took us for a taste of a traditional dish of kenkey (a dumpling made out of maize meal) and fish. Kenkey is made by mixing flour with water until the porridge is thick enough to eat. It is similar to posho or ugali.
The only difference with kenkey is that after the final product, the thickened flour balls are made and lapped in dry maize husk and then placed in boiling water after which it is ready to eat.
Despite the fact that it tasted bitter, frankly I adored the dish. As days went on, I was eager to taste other traditional dishes and managed to eat joll of rice with goats' meat which I did like, but was a bit reluctant to taste the 'Banku' a bitter kenkey typical dish.
During the evening we would drive to Osu Oxford Street for meals because the majority of us weren't pleased with the hotel menu.
Frankies is a popular place with special dishes that attract many customers daily.

 (Frankies where special dishes attract many customers along Osu Oxford Street in Accra, Photo By Kenan Kalagho)
Osu Oxford Street itself is busy, filled with all kinds of businesses from art craft gallery shops, to boutique or 'Kente', a special 'kitenge' garments shops, to plenty of kiosks alongside the roads selling different kinds of foodstuffs and accessories.
The only thing I found awkward was when I discovered that several of Accra's toilets empty directly into the drainage systems. This creates a constant foul smell especially around drinking taverns.
The nights at the container taverns were always entertaining. On a Friday night we experienced the mixture of traditional Ghanaian highlife to the rhythm of reggae music.
The music reminded me of the long old secondary school days. The place was packed to the brim with Indians, Europeans, Chinese and blacks jumping together feeling the vibes in their hearts.
We were left with no option, but to join in without actually knowing the meaning to the songs. The one thing I loved about Ghanaians is their friendliness, irrespective of the hotel staff. That Friday night at the tavern, we felt very much at home, even though hours later we would be actually back home in Tanzania.

Africa to promote wheat production

Monday, 05 August 2013 05:32 Kenan kalagho,EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

ACCRA, GHANA - African countries have agreed to a partnership for coordinating and managing wheat growing.
Dr. Solomon Assefa, a scientist at Support to Agricultural Research for Development of Strategic Crops (SARD-SC) said Africa was losing $20b yearly on wheat importation.
Assefa was speaking during the recent meeting held in Ghana by Forum for Agriculture Research in Africa (FARA).
He said there is demand for wheat in Africa and there is need to increase its growth from the current 10million hectors.
Assefa said there is need to make wheat a competitive commodity in Africa and governments need to develop research policies to priorities wheat production.
He said wheat has this year been among the major four crops designed as the strategic crops for Africa.
“Tanzania has the capacity to produce 65,000 tons of wheat but it imports more than 950,000 tons every year,” he said. 
According to a recent report by Selian Agricultural Research Institute ( SARI), Tanzania requires 608,000 tons of wheat but is producing 93,000 tons every year.
The average wheat production in 2011/12, stood at 892kg per household. 706 kg was sold while129 kg was for domestic consumption.
Ibrahim Mamuya, the Principal Agricultural Research Officer at SARI, told the EABW Tanzania needed to invest in the wheat production in the Southern and Northern regions in order to meet the increasing demand.
He said the low price of wheat is a leading cause for its low growth. There is need for viable research focusing on high yielding crop varieties and the application of modern agricultural technology.
SARD-SC has earmarked areas where research is being conducted to improve the strategic crops for Africa.
Cassava, maize, rice and wheat have been earmarked to be grown in Tanzania, Kenya, Eritrea, Lesotho, Zambia, Zimbabwe, Ethiopia, Sudan, Nigeria, Mali and Niger.

Dar es salaam faces meat shortage

Monday, 05 August 2013 05:53 Kenan Kalagho,EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

DAR ES SALAAM, TANZANIA - Dar es Salaam may experience shortages of meat after the closure of an abattoir located on the outskirts of the city centre.
The slaughterhouse has been closed due to lack of an operating license and working under unhygienic circumstances.

 (A butcher kiosk in Dar es salaam)

The Ukonga-Mazizini Abattoir, which has been in business since 1972, was finally closed down last week.
Dr. Terezya Kavishe, the Minister of State in the President’s Office (Environment), described the abattoir as operating in the filthy surroundings.
Dr Kavishe said despite the fact that the abattoir has been in running for quite awhile it lacked a valid license from the Tanzania Food and Drug Authority (TFDA) and environment certification from National Environment Management Council (NEMC).
“Any industry operating in the country needs to have a license from both TFDA and NEMC as per the country’s statutory requirements,” Dr Kavishe said.
Early last month the abattoir was closed by NEMC following the claims that it was threatening public health.
One of the owners, Lusinde Ngosi, said they were waiting to clear up all the logistics requirements as part of the NEMC and TFDA certification requirements.
The abattoir is surrounded by scattered horns and dirty running water mixed with animal excrement, that runs into pathways. There has also been a constant foul smell hovering over the area.
According to Dr. Kavishe, owners of the business will be required to compensate residents living around the area and stop any activities related to slaughtering of animals.
The residents around the area claimed that both the NEMC and Ilala Municipal council has been too lax, saying they two mandated organizations hasn’t been acting on their complainants and therefore making their lives at risks.
In recent months, Dar es Salaam has seen the closure of several plastic and drinking water industries that were found to be operating in filthy surroundings. This poses danger to employees and the neighboring residents.

Bank gives $210m for Tanzania road upgrade

Monday, 05 August 2013 05:53 Kenan Kalagho, EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

DAR ES SALAAM, TANZANIA - Tanzania has received funds from the World Bank for improvement of infrastructure as part of the Southern Africa Trade and Transport Facilitation Project.

(Road being upgraded in Dar, the WB funds for is aimed at reducing the cost of transportation in the country, Photo By Kenan Kalagho)The World Bank International Development Association (IDA) is giving $210 million ( about Tsh344.6 billion ). Most of the money will be used to upgrade the 140 kilometre Mafinga-Igawa highway, covering the two regions of Iringa and Mbeya.
Speaking during the signing ceremony in Dar es Salaam last week, the Minister for Finance Dr. William Mgimwa said the funds will also help to improve the Songwe-Kasumulu border roads making it easier for the movement of people and goods between Tanzania and neighboring countries. A one stop border post is being planned to effect this improvement.
“We are in need of developing our infrastructures to facilitate the movements of goods and people along the North-South corridor to enable the nation become a dependable transport and logistics hub to our neighbouring countries,” Dr Mgimwa said.
“We would want Tanzania to open up doors for other countries to use the available trade routes linkages in order to improve the economies within the region,” Dr Mgimwa said. He said this will further cement the integration process within the African regional member states.
He said infrastructure improvements will not only aim at strengthening trade relations in the East African region but also in the SADC, to which Tanzania is also a member. Dr. Mgimwa hoped this would later improve both the export and imports of goods and services.
Dr Mgimwa said some of the money will also be used in improving road safety and traffic conditions by conducting road safety audits and capacity management reviews in a bid to curb the impact of HIV/Aids.
The minister said that all the government institutions including the Tanzania Commission for Aids (TACAIDS), Tanzania Revenue Authority (TRA), Tanroads and the Ministry of Health and Social Welfare would be involved in designing the best ways of implementing the project.

Tanzania vehicles register online

Monday, 05 August 2013 05:55 Kenan Kalagho,EAST AFRICAN BUSINESS WEEK, DAR ES SALAAM, TANZANIA

DAR ES SALAAM, TANZANIA – The Tanzania Revenue Authority (TRA) has launched an electronic system that requires  motor vehicle fees be paid online.

(Vehicles parked in a showroom in Dar es salaam, Photo By Kenan Kalagho)
“Payments through mobile money will be very safe to clients and this means that such an amount being paid by the client will directly go to the Bank of Tanzania coffers,” the TRA Revenue Accounting Manager Ramadhani  Sengati said last week.
He said this will make it easier for TRA to collect the relevant taxes at a lower cost.
It will also reduce overcrowding at TRA payment centres.
Tanzania has in recent years experienced an influx of both brand new and reconditioned vehicles mainly from Japan, India and Dubai.
This has steadily added to the congestion in and around Dar es Salaam where a majority of vehicle owners reside.
Speaking in Dar es salaam last week, the TRA Revenue Accounting Manager Ramadhani  Sengati said motor vehicle owners can now access online payment and can now be pay though mobile money.Sengati said the new system, that started this month, will require customers paying their dues through mobile money and the bank. He said this will ease the tension associated with paying at TRA branches.
He said driving license fees will also have to be paid using the same system  throughout the country.
Sengati said the new system will reduce fraud. There have been cases of people being overcharged and this has hurt  TRA credibility.

Tanzania saves $927m

Monday, 05 August 2013 06:04 Kenan Kalagho,EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

DAR ES SALAAM, TANZANIA - The government is currently saving some $927 million (Tsh1.5 billion) after introducting a new payroll system.
Speaking in Dar es Salaam last week, the Assistant Director in the President’s Office, Public Service Management Peter Mushi said: “We have been able to solve to a larger extent the issue of ghost workers where the government was losing a lot of monies in salary,”  Mushi said.
He said the new system allows managers to monitor any changes that have been made on an individual’s information.
Most countries in the region are battling with the issue of ghost workers which has been costing governments dearly.
Mushi said the money saved is being used for other government development projects.
The system has helped the government to eliminate and save cash in terms of salaries to some 34, 645 public servants from government payroll who were either already retirees’ or were already demised but had their monthly salaries updates in the former system.
“The government has been losing lot of monies due to few dishonest workers who were taking advantages of others by enriching themselves through the accounts of the retirees and dead workers,” Mushi said.
The Information and Communication Telecommunication (ICTT) infrastructure that has been improved in the country in the recent years has helped to a larger extent to make sure that personal data information is easily accessed at the central point thereby minimizing fraud that might be associated tampering with ones account.
He said the government did recruitment of some 16,000 teachers early this year and entering all of them on the government payroll system has reduced fast tracked access to information from the newly employers than if government officers were to bring the files at the head offices in Dar es salaam.
According to Priscus Kiwango, the Director of Information Resource Management in the Presidents’ Office, Public Service Management a number of government offices at the districts level were already using the new payroll system using the National Information Communication Technology Broadband  Backbone (NICTBB).
He said there has been a lot of new development in most of government offices including access to internet resulting from the mushrooming of mobile operators in the country and thus lessening the time to enroll a new employee with the government payroll which currently serves only 478,000 public servants.
This also means that the newly introduced system will mean that most government workers who have been enrolled with the system will be able to get their salaries on time upon being employed.

Tanzania needs $500m

Tuesday, 16 July 2013 19:09 Kenan Kalagho, EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

DAR ES SALAAM, TANZANIA - The National Development Corporation (NDC) is looking for $500 million to set up a soda ash factory. This would enable them to exploit over one million metric tones of soda ash deposits in Lake Natron, bordering with Kenya.
Soda ash, known chemically as sodium carbonate, is a key raw material for glass, chemicals, soaps and detergents  and NDC believes the proposed plant could earn the country $300 million a year and create 500 jobs. Tanzania President Jakaya Kikwete  said the soda ash plant would boost the country’s economy and that the government will hold a 46% stake in the project through the NDC, once it reaches a consensus with any of the investors. The plans to mine and build a factory in the lake surroundings have however been strongly opposed by several activists.
Some say the proposed plans pose a negative effect on the flamingo birds population in the area and could impact badly on tourists numbers.
Others also say that the rare flora and fauna, will be steadily destroyed.
However, the NDC’s Corporate Affairs Manager, Abel Ngapemba told East African Business Week they are still keen on investing in factory. He said more research is needed in order not to affect the ecology of the flamingo breeding sites in the area. Ngapemba said it was important to consider a careful research study, considering that 70% of the world flamingo population hatch in the area. Anything affecting their ecological will mean reducing the number of the world flamingos as well.
Ngapemba added that the whole process of investment could take time as the investor need to be satisfied with the ongoing research that requires not disturbing the breeding sites of flamingos.
Then the government would proceed with the signing of a Memorandum of Understanding (MoU) and other logistics before the deal can finally kick off.
He said NDC has already discovered the type of drilling that can be applied without affecting the flamingos environment and this will all depend on the investor to agree on the said type of drilling.
Despite the opposition from residents and environmentalists, the Tanzania government is still pushing  ahead with the construction of a soda-ash factory near the Lake Natron. 
In 2006 an Indian firm, Tata Chemicals, (part of the Tata Group) wanted to partner with NDC to set up a soda ash factory at Engaruka area, approximately 50km north-east of Lake Natron but the deal collapsed.
The government has so far announced that there is approximately 460 billion cubic litres of soda ash that has been discovered at the Engaruka area, 50 kilometres from Lake Natron.
Experts say its characteristics of multiplying itself at 4 million cubic litres per year this means that the reserves keep growing every year.