‘No country has developed with GMOs’

Business Digest

  EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

Monday, 28 January 2013 08:17 Kenan Kalagho, 

(Pictured Director General of RUBADA Mr. Aloyce Masanja Photo By Kenan Kalagho) 

Recently, Rufiji Basin Development Authority, (RUBADA) received proposals from a Brazilian dam construction company, to construct a dam at Stiegler’s George in Rufiji, along the Southern Agriculture Growth Corridor of Tanzania (SAGCOT). East African Business Week's Kenan Kalagho interviewed RUBADA Director General Aloyce Masanja about the project. Below are the excerpts:

How is Tanzania intending to benefit from the 2100Mw of electricity considering our consumption capacity stands at 850Mw?
We  intend to introduce  Kilimo kwanza and other initiatives  to launch Southern Agricultural Growth Corridor of Tanzania (SAGCOT) project.
We aim to turn the whole southern corridor into a modern farming zone where agro processing industries will be built.

Why does RUBADA involve itself in hydro electric power production?
As a Tanzanian, I know in European countries like Norway, Sweden, the commonest source of energy is hydro power.
We agreed to hydro power because it is the cheapest way of generating electricity. What we seem to miss is the idea of conservation.  Europe has the best conservation projects that allow them to have reliable hydro electric power.

Do you think Tanzania lacks conservation experts?
I wouldn’t say we lack conservation experts, but political will to conserve these areas.
What we need is funds to conserve the whole area of about 54 thousand square km along which the project will be implemented.

Apart from this hydro power project, what other projects is RUBADA involved in?
We are a government entity and currently assigned to implement this power project and make sure that the countries have a reliable electricity supply.
We have also been given the mandate by the government to make sure that we promote kilimo kwanza initiatives and we have currently partnered with Agric company, a UK based firm to cultivate rice in Kilombelo, Morogoro to the eastern part of Tanzania and also involve ourselves in the conservation projects.

Is RUBADA willing to embrace GMOs seeds if such seeds are allowed to be adopted by the government in order to increase produce in the Rufiji Basin?
Embracing Genetic Modified seeds in the country is a very wrong concept because there is no country that has developed by embracing GM seeds.
We need to embrace these seeds if we are to promote cash crops like cotton, tobacco but not food crops like Maize Cassava and or Rice. 
What the country needs is to  give the inputs to farmers at the right time, let the farmers get seeds, fertilizers and other inputs at the right time and their produces would automatically be increased.

We often hear about SACGOT agriculture initiatives in as far as the Rufiji basin is concerned, has kilimo kwanza  failed?
The public needs to understand that Kilimo Kwanza is a framework and SAGCOT is going to implement that framework. We have plans to modernise farming that will see the construction of agro processing industries in the region and we will need electricity to do that.

Ugandan company sues TRA in sale

Monday, 28 January 2013 08:45 Leonard Magomba and Kenan Kalagho

DAR ES SALAAM, Tanzania – Tanzania Revenue Authority (TRA) is alleged to have sold a  multimillion dollar Zinunula Corporation, a Ugandan Coffee Processing plant unlawfully at Tsh18m (about$11,441), East African Business Week has been told.
The company, located at Omugakorongo, Karagwe district, Kagera region to the northwest of Tanzania, is now involved in a court battle with TRA in a bid to regain ownership with analysts saying it is a one sided court case.
Speaking exclusively to East African Business Week in Dar es Salaam, the Managing Director of Zinunula Corporation, Mr. Samuel Kizito said he had lost confidence in the state run Tanzania Revenue Authority (TRA) which had ordered the auctioning of four coffee grinding machines, being properties of Kazi Corporation.
Kizito notes “But they later auctioned a newly constructed factory belonging to Zinunula Corporation, a company totally independent from the defunct Kazi Corporation.”
“At the time of the sale of the factory, it had not commenced work and had no tax arrears.”
Kizito explains that TRA had earlier in 2003 assigned Spider Auction Mart and Court Brokers to auction four pieces of coffee grinding machines belonging to Kazi corporation in order to recover the Tsh12m (about $7,603) tax bill the company owed it.
“I  was later surprised to learn from newspapers while on leave in Uganda that it was instead the whole company of Zinunula which was being auctioned for Tsh18m ($11,441) which was contrary to their earlier directives to the court brokers,” Kizito told East African Business Week.
When contacted for a comment, TRA’s Acting Director for Taxpayers Education Services, Mr. Allan Kiula said he was aware of the case however; he declined to provide further details as he directed our reporters to the TRA’s Regional Manager in Kagera.
“I am aware of the case but I request you to contact our Regional Manager in Kagera for further details,” Kiula said.
He added that the case was being presided over in Kagera. “Our regional manager in Kagera is in better position to comment than someone from the headquarters,” Kiula said when contacted by phone last week.
Kiula added that it will take time for him to answer clearly as he has to go back to the archives to search for the reliable files. “What I can do is to go and look for the files and see the case a move which would take longer to accomplish.”
When East African Business Week contacted the Kagera TRA regional office, there was no response from the office line and the mobile phone number for one of the officers in Kagera was also not answered.
The advert to sell by public auction of Kazi's machines appeared in the local Kiswahili tabloid, NIPASHE of 14th September 2003 on page three, the document availed to East African Business Week in Dar es Salaam last week shows.
Kizito stresses that Zinunula (T) Limited had bought land to build the coffee processing factory in Kagera, in early 2001 - a deal that flopped in June 2008 even before it could be commissioned, thus the filing of Land Case no. 1/2008 vs the TRA and Spider Auction Mart and Court Brokers, Amri Amir, and Amri Amir Alhabsy Co Ltd.
Kizito asserts that he had earlier sought to repossess the property and land because it didn't have any financial liabilities to settle with TRA.
He explains that TRA later emerged to claim unpaid taxes occasioned by the previous owner of the company, Kazi Corporation.
The hearing judge R. M. Kibella, ruled that evidence showed Zinunula (T) was not indebted to TRA and that sale by auction of the land and factory machinery by TRA 'was not lawful.'
Kizito said that he has evidence that there were some politicians in the region who have an interest in the said coffee business and the land at large who have an influence on the state run TRA.
He added that such people are making foreign investors lose both the confidence in TRA and interest in future investment in the country.
Putting the case into perspective,  Zinunula’s Company lawyer Mr. Peter Musoke said that he saw no reason for the sale of the company and the land on which the company was seating because that was neither part of TRA’s notice issuance to the broker nor was it a deal between Zinunula and TRA and or Spider Auction Mart and court Brokers.
Mr. Musoke said that the four coffee processing machines that had been directed for auction by TRA in order to recoup the tax balance Kazi Corporation owed the state was more than enough to foot all tax balance that the company had owed TRA.
He said that it was unacceptable for the state run corporation with a great confidence amongst tax payers to auction the multimillion worth dollar company illegally for as low as Tsh18m ($11,441) contrary to its earlier directives to Spider Auction Mart and court Brokers, a firm contracted by  TRA.

GMOs: Firms fear globalisation

East African Business Week, Kampala, UGANDA.

Sunday, 20 January 2013 20:57 Kenan Kalagho 

As the global population continues to increase, researchers around the world are striving to find ways of how to increase food production through modern ways. East African Business Week’s Kenan Kalagho spoke to Prof. Christopher Leaver (pictured), the senior Scientific Advisor to the Bioscience for Farming in Africa about their programme. Here are excerpts:

What is Bioscience for farming in Africa?
This is a programme specifically designed to encourage informed discussion about the potential application of biosciences and genetics.
It also address the recent advances in science research, how they can help bring positive change on farms and in communities in order to create a vibrant, sustainable and diverse agricultural sector.
Why did you decide to launch your programmes in only four African countries?
These countries were chosen because it was realized that there are a lot of opportunities in them that would help make small scale farmers grow crops and get excess for sale so as to increase their economy and invest in their children’s’ education.
There has been some misconception about GM crops, what’s your take?
I know about GM crops and I know where they grow and if I knew any problem of health risk I would be the first to point it out.
There are challenges about population growth and we are completely dependent on crops to feed us. In Africa the yield have been flat for a long time while the population continues to grow, GM crops will have a role to play in order to beat the growing population demand.
Why has there been a long debate by policy makers on whether or not to accept and adopt GM crops?
It is because there are a lot of NGO’s who don’t like globalization and dislike multinational corporations.
They have thus denied people the opportunity to increase their income. There is also lack of education and understanding about GM crops but if we can raise the quality of lives of people let us try it, people have the choice.
Do you think policy makers and the public at large have the right information regarding the new GM technology to crop breeding?
There is lack of knowledge with regards to GM crops as this will lead to increase in yield.
Pests resistant crops can be developed through GM technology but also improve efficiency of specific metabolism. So we need to give the people an opportunity to look at the technology and see if they can adopt it.
What would be your advice to African countries regarding the adoption of GM crops in beating the food security in the region?
People are dying because of hunger, we need to give them the capacity and an opportunity to let them grow their own food to feed themselves and their families but also let them improve their income as well.
It was reported that rats that had consumed GM corn developed tumors over time which proved that GM crops have diverse effects on human being. What is your comment on that?
There have been a lot of reports which proved the said research was wrong and this according to the media was not news, however what I can say is that Americans have been eating GM for the past 16 years and they haven’t had any unhealthy symptoms.

Tanzania: Fruit Farmers Assured of Market

 East African Business Week ,Kampala (UGANDA)

By Kenan Kalagho, 13 January 2013Bagamoyo — Fruits growers in Tanzania have all reasons to smile after the coming of O.K holdings, a juice manufacturing plant based in the coastal district of Bagamoyo.

 (One of the employee at the distillery plant in Bagamoyo showing Leo fruit spirit brandy at the plant Phot By Kenan Kalagho)
It is anticipated that locals will get jobs as well as market for their fruits after the firm opened its doors.
Speaking exclusively to East African Business Week in Bagamoyo, the firm Director Mr. Tamas Sandor said majority of the farmers should expect to benefit more from the newly opened distillery plant as they are now assured of the market for their fruits.
Mr. Sandor noted that the initial productions will adequate supply of spirit brands in Dar es Salaam. The firm envisages spreading throughout that East African region.
"This company will not be directly involved in farming these fruits like Banana, Pineapples, rum and lime and sugar cane.
"It will give chance to farmers to produce the fruits and sell them to us thereby boosting farmers' income and allowing them to produce more as well," Sandor said. He stressed that the fruits used in the processing of the fruit spirit brands products produced at its distillery include; Banana, Pineapples, lime and sugarcane.
These fruits varieties, he said produce a number of quality spirit brandy. They thus give a wide range of farmers to start producing more and improve fruits that would lead in improving their lives as well as growing the country's economy.
"These fruit spirits are now available in many supermarkets and bars in Dar es Salaam," Sandor said, adding that with an increased production, they look forward to opening more markets upcountry.
He said that his company is currently expecting to install some more machines with bigger capacity that will aim at boosting the production at their distillery, giving them an opportunity to open up for more markets in the country.
He repelled claims that the majority of Tanzanians will aim to benefit from his distillery company through direct employment. He said others will at the same time be offering a chain of distribution which will mean a lot more Tanzanians benefiting through selling of fruits to the company. Sandor said besides the majority Tanzanian citizens, his company also targets tourists that he says will be able to market Tanzanian made products abroad.
He says despite the country having a lot of natural resources, there were very few or no spirit brands that are wholly produced in Tanzania by using the available raw materials in the country (made in Tanzania brands) saying this leaves tourists with nothing to take to their home countries.
He insists that if tourists into the country each year can be able to take back to their home, products that are proudly made in the country by using the country's raw materials, this might not only be able to market Tanzania abroad but it might as well lead to improving the country's economic growth.
Sandor points out that he will soon be entering the East African market with an increased production as currently his company is unable to supply throughout the EA region due to low production.

Inflation Drops Slightly

East African Business Week (Kampala)

 By Kenan Kalagho, 27 December 2012

DAR ES SALAAM — Tanzania inflation has slightly dropped to 12.1% as of November from 12.9% that was recorded in October the previous month due to the decline in food prices and energy costs.

The National Bureau of Statistics (NBS), Director of Population and Social Statistics, Mr. Ephraim Kwesigabo, said in Dar es Salaam that there were a number of variables that attributed to sluggish pace fall of inflation rate compared to other East African countries.
Kwesigabo explained one of the reasons for the slow pace in the drop in inflation rate was due to the exchange rate and monetary policy issues, saying the report assist policy makers to strategize actions to be taken while insisting that the country's economy was doing well especially with the low price to food stuffs.
He said the inflation rate was expected to keep on falling due to declining food prices in the country noting that the inflation rate, despite going down was still too high to subdue cost of living.
"Prices of commodities were still too high while productivity has gone down, and the level of money in circulation was high too and exports do not suffice import bills" Kwesigabo said.
Kwesigabo said that the drop in inflation by one or two per cent is only felt when there is affordability of basic needs in the basket by the majority of the citizens especially those residing in the rural areas.
He also noted that prices had recently gone up, including fuel, meat and maize flour prices, thus affecting the purchasing power of ordinary citizen, whose daily income had remained unchanged.
Mid this year, the government revised the single digit goal to mid next year saying the initial date was not realistic due to pressure from energy, food and fuel costs.

Dar es Salaam Behind Schedule On Millennium Goals

East African Business Week (Kampala)

 By Kenan Kalagho, 25 December 2012
Dar es Salaam — The deadline for implementing the Millennium Development Goals (MDG's ) as set by the United Nations (UN) is coming to close but Tanzania says it finds it hard to reach the MDG's due to lack of resources and expatriates to undertake these initiatives.
Speaking Exclusively to East African Business Week in Dar es Salaam last week, the Permanent Secretary in the Ministry of Water Eng. Christopher Sayi said the implementation of clean water access in both rural and urban areas by 2015 would not be implemented if there is lack of human and financial resources.

(The Permanent Secretary in the Ministry of Water Eng. Christopher Sayi addressing a group of EU ambassadors in Dar es salaam recently, Photo by Kenan Kalagho)
 "We have the best proposals in the world that would make sure that every citizen has an access to clean and reliable water but we are failing to finance these projects implementations," Eng Sayi said.
Recently Dar es Salaam city inaugurated an underground water project that brought much relief to thousands of residents as they now have direct access to clean and safe water with beneficiaries including primary and secondary schools, dispensaries, business centers among others.The Minister for Water Prof Jumanne Maghembe pointed out that there has been a long problem of water in Dar es Salaam and therefore a need to make sure that the country attains the MDG's program by 2014.
He said plans have been completed to expand both Upper and Lower Ruvu pump stations and construct Kidunda dam upstream in Morogoro region.
They will also lay of a 1.8 metre diameter water pipes from Lower Ruvu about 55 kilometers away to Dar es Salaam.
In 2012/13 budget, the government has set aside Tsh117bn to enable the country to have an access to clean and reliable water access by ensuring that the United Nations MDG's on access to water and reduce by half the percentage of the population without access to water supply and sanitation services by 2015 in the country is achieved.
However, Eng. Christopher Siya says only 88% of the urban dwellers were capable of receiving clean and safe water access whereas 65% will be met in rural areas by 2015 due to what he said resulted from long preparations and slow mobilization of resources in implementing rural water projects.

More Legal Advocates Needed in Tanzania

East African Business Week (Kampala)

 By Kenan Kalagho, 27 December 2012

(Tanzania Chief justice Osman Chande, third left accompanied by other judges at a recent graduation ceremony in Dar es samaam, Photo By Kenan Kalagho)
Dar es Salaam, Tanzania — The government has called for the need to look into the imbalances in the availability of advocates saying it denies Tanzanians access to legal services.
Speaking during the 47th graduation ceremony that admits legal professionals into the role of advocates at the school of Law in Dar es Salaam, Tanzania Chief Justice Mohamed Chande Othman said that there was need for the government to take tactical measures to address the shortage of advocates.
The Chief Justice stressed there were only 3,000 enrolled advocates with a population of over 42 million according to the 2002 population census, a thing which needs to be looked into if the country is to move forward by making sure that cases are resolved in time.
He said only 618 enrollments were done this year, which made the number to about 901.
Chande stressed, these were very few as total number of advocates that has so far been enrolled this year alone compared to the increased country's population.
"There is need to improve this number of enrollment and make sure that no one is allowed to practice the role of an advocate unless he passes through the school of law where his /her abilities on legal affairs can be assessed" the Chief Justice said.He said it was unwise to think that only a number of Tanzanians should have an access to legal services due to lack of advocates.
The Chief Justice also noted that while the country has so far registered about 3,000 advocates countrywide, there were only less than 1,000 advocates in full-time practice offering legal representation on a day-to-day basis.
"About 70 percent of these 1,000 full-time legal practitioners are based in Dar es Salaam alone where as the rest are found in rural areas with a large population where legal issues are needed the most" the Chief Justice insisted.Chande noted there were a lot of regions in the country with a presence of a single advocate like Lindi region to the South-east of Tanzania with a population of 791, 306 according to 2002 national population Census and Kigoma located in the northern part of Tanzania with 1,679,109 residents which he said was unfair for the residents in the region.On his part, Tanzania Attorney General Frederick Werema stressed for the need to make sure that all lawyers in need of becoming advocates should pass through the law school in order to sharpen their professionalism and assess their knowledge of legal affairs.
The Attorney General noted that there is need to have a discussion with stake holders about whether or not it should be compulsory for law practitioners to pass through a law school.
This is due to the high costs involved while stressing that unless a legal practitioner undergoes the law school can be employed by the government as an advocate and or a magistrate.