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.

Tanzania FDI at $1.7bn

Tuesday, 16 July 2013 19:20 Kenan Kalagho, EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

DAR ES SALAAM,TANZANIA - Tanzania came second after Uganda,  in the East African region, for attracting the highest Foreign Direct Investment (FDI) worth $1.7billion. The country registered atotal of 869 projects worth $11.4 billion.
The rise in FDI is said to be linked to the recent off-shore  gas discoveries according to the UN Conference on Trade Development (UNACTAD) World Investment Report 2013.
The report puts Uganda at the top of all the EAC countries in attracting FDI worth $1.72 billion jumping by 92% from $892 million it recorded in 2011
In 2012, Kenya’s FDI dropped by 27.04% to $259 million and placed the country in third compared to $355 million it recorded in 2011.
The report said that Rwanda rose by 50.94% to $160 million last year up from $106 million it recorded in 2011.
Burundi receveived $1 million in 2012 as compared to $3 million it recorded in 2011, a decrease of 66.67%.
The Tanzania Investment Centre (TIC) Public Relations Manager, Pendo Gondwe said last week ahead of the report launch that Britain is still the leading foreign investor in Tanzania. UK projects worth $5.1billion now account for 35% of all investments in the country.
Ms Gondwe said China was ranked second with projects worth $2.1billion followed by India at the third place with investments worth $1.16 billion, while neighboring Kenya is ranked fourth investor with $1.5 billion worth of projects. The US came in fifth with 218 projects worth $998 million.
She said the leading sectors include tourism, real estate, transportation as well as agriculture and manufacturing with the local investors making up 469 projects.
TIC registered a total of 861 projects with a total value of $8.5 billion between July 2012 to June 2013. These have the prospect of creating about 93,334 jobs upon completion.
TIC Facilitation Manager, Revocatus Arbogast, said the surge in investment also comes with the streamlining the one-stop centre for investors.

Mobile operators query Tanzania Sim tax

Wednesday, 17 July 2013 07:03 Kenan Kalagho, EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

DAR ES SALAAM, TANZANIA - The Tanzania government may lose a huge sum in tax revenues following disagreements with mobile phone network operators over the recently imposed monthly tax of Tsh1,000 ( about $0.62) on every SIM card.
This was proposed in last month’s budget proposals for 2013/2014.
In a recent advertisement in the local newspapers, the Mobile Association of Tanzania (MOAT), argued that the tax will have a negative impact in denying on poor Tanzanians by limiting access to telecom services.
MOAT thinks the income status of mobile users has not been considered by the government considering that both the high and lower income customers will be charged at the same rate
In a recent statement availed to the media, MOAT argues that it was unfortunate for the government to introduce such a fee at a time when mobile telecom companies are striving to reach the rural areas. They said this is likely to slow rural penetration.
However the government counters that the $0.62 tax is very small and unlikely to cause any harm to local mobile users in the country.
In a press statement availed to East African Business Week recently, the government claims to have been losing considerable revenues from mobile phone operators and this tax imposition has been instituted at the right time.
It said that both the research and consultations had been made prior to introducing the said fee, saying much of the revenue to be generated through mobile phone operators would be channeled into the education sector.
The MOAT says currently only 22 million users in Tanzania were connected to mobile networks out of the population of 45 million.

Tanzania Low Power Output Hurts IT

Tagged:

• Business
• East Africa
• Energy
• ICT
• Infrastructure
• Tanzania

East African Business Week (Kampala)

By Kenan Kalagho, 8 July 2013

Dar es Salaam — Lack of enough electricity supplies in many African countries, including Tanzania, is a major reason behind the uneven development of Information and Communication Technology (ICT) on the continent.
Speaking during the Global 2013 Smart Partnership Dialogue last week, Tanzania's Chief Secretary, Ombeni Sefue said African countries had realized the slow pace in ICT development is often due to limited electricity connections.
The Smart Partnership Dialogue regularly brings together heads of state from Africa and Asia, together with hundreds of participants from both the public and private sector to network in business and social development.
Participation is by membership or special invite only as a way to encourage easy conversation.
Sefue said during the Dialogue much of the discussions were centered on research institutions, promoting technology and agriculture which is able to play an important role in boosting the economic growth for most African countries.
"Promoting the use and adoption of ICT in our respective countries in order to boost both social transformation and economic development in the region is a crucial task that needs to be put into consideration," Sefue said.
He said energy unavailability was a major challenge in promoting the use of ICT in rural areas of most African countries.
"ICT is an important area that could create jobs and also ensure life improvements to the majority of people in African countries and the world at large. We need more investments and research related activities aimed at promoting the sector," he said.
Former Malaysian Prime Minister, Mahathir Mohamad, who founded Global Smart Partnership Dialogue, said African countries needed to create a conducive environment to attract these investors which will later attract employment and lead to economic growth.
Dr Mihaela Smith is Dialogue Joint Dialogue Convener.

Dar es Salaam in lock-down for Obama

Monday, 01 July 2013 09:23 Leonard Magomba & Kenan Kalagho, EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

DAR ES SALAAM, TANZANIA – Dar es Salaam was on a lockdown involving tight security for the visit of United States President Barrack Obama over the weekend.
Major hotels were fully booked and all access points were blocked by metal detector machines, together with armed security personnel.
Movement for unauthorised persons in some areas was severely limited. Wananchi were advised to stay in their homes during the duration of Obama’s visit.
The US president came along with a contingent of around 1,200 people.
At the same time, Tanzania is hosting the SMART Partnership Dialogue meaning another nine heads of states and 800 participants already in Dar es Salaam.
SMART Partnership is a Commonwealth initiative that cultivates business growth through networking.
The US President was accompanied by 500 business people and investors. “All these are looking for investment opportunities in the country because it is stable and peaceful,” Foreign Minister, Bernard Membe said in the run-up to the visit.
This gave an opportunity for the local hotel industry to increase occupancy and make some money.
However, hundreds of petty traders and street vendors were being kept away to make it easier in keeping the city clean.
Security has been strengthened in all strategic areas in Dar es Salaam while a number of illegal trade structures removed.     
The head of state of the greatest nation in the world, who started his African tour in Ghana, South Africa is expected to finalise his African tour in Dar es Salaam before getting back to the US.
During his visit in Tanzania, he will open a popular passageway for VIPs, wedding processions and beach revellers in Dar es Salaam’s Ocean Road, which will be renamed ‘Obama Avenue’.
Dar es Salaam Regional Commissioner, Saidi Mecky Sadiki, said last week President Obama would inaugurate the road whose name Ilala Municipality has decided to rename ‘Obama Avenue’ in honour of US president’s two day state visit.
During his visit Obama is also expected to be accompanied by his predecessor former US President George Bush’s whose remarkable four days visit to Tanzania in 2008 saw the signing of the historic Millennium Challenge Compact worth $698.1million that was aimed at providing good roads, clean water and energy in the country over the next five years through major infrastructure projects.
The US has also channelled around $400 million in 2008 in direct bilateral foreign assistance, making it the largest donor to Tanzania.
The US foreign policy ensures that responsible assistance is channelled to responsible leaders who govern justly, advance economic freedom, and invest in their people.
This however raises questions about Obama’s visit especially after his Chinese counterpart Xi Jinping whose country is the world second biggest economy paid his visit in Tanzania soon after only a month after ascending the office.
Many observers and activists however argue that such a visit is aimed at grabbing the many resources that Tanzania is endowed that includes vast mineral resources, fertile land, oil and gas resources opportunities as well as a good body of  marine water as well as fresh water which is an ideal for both fishing and irrigation.
In his view last week Prof Issa Shivji, the head of the Mwalimu Nyerere Professorial Chair in Pan-African Studies at the University of Dar es Salaam says Obama visit is mainly focused on the scramble for the country’s natural resources and not otherwise.
He was quoted in The Citizen last week that the shifting centres of global economic and political power, the growing economic muscle of most of Asia and Tanzania’s strategic position and its natural resources abundance are some of the reasons why the US President was visiting the country.
He noted that Tanzania has the longest shoreline on the Indian Ocean after the destroyed Somalia and also is one of the richest regions in the world. “Tanzania itself is rich in natural resources, including oil, uranium, gas and so forth,” Prof Shivji said

Major freight firm talks due in Dar es Salaam

Business Digest

Monday, 01 July 2013 09:03 Kenan Kalagho, EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

The International Federation of Freight Forwarders Associations (FIATA) is the largest non-governmental organization in the world. Some 40,000 forwarding and logistics firms are members in 150 countries, employing 10 million people. This month, Tanzania is to host the FIATA Region Africa & Middle East (RAME) conference. Last week the Tanzania Freight Forwarders Association (TAFFA) President and RAME 2013 Organization Committee Chairman, Stephen Ngatunga briefed East African Business Week’s Kenan Kalagho about the event. Below are excerpts;
Question: Recently you announced that TAFFA will be hosting FIATA Regional Africa and RAME conference, how prepared are you for such an important conference of its kind in Tanzania?
All preparations for the conference are in their final stages. We have received a lot of cooperation from the Ministry of Transport and involved Tanzania Conference Services Limited to handle the logistics of the conference.

What would the conference centre on?
This conference will be centered on providing a platform for businesses from around the world to network amongst themselves.
It also serves as a great opportunity to market Tanzanian ports further as being ideal gateways  for trade and promote Tanzania as a unique tourism country.
Again we aim to bring regional players together in order to achieve both networking and be able to disseminate best practices that can deal with the issues and challenges prevailing in the respective countries and potential ways for their resolutions using the FIATA mechanism.

What expectations do you have from the partner states of East Africa with regards to this event?
We expect all the five East African countries to participate in huge numbers since all those countries have freight forwarding businesses.
But again, the  regional Federation of East African Freight Forwarders Associations, which is the apex body of freight forwarders associations in the East African Community, will make presentations on training and boosting professionalism in the region.
This will lead to better regional cooperation and later boost trade amongst partner states.

We know that freight forwarders cannot achieve their goals without good roads, how do poor regional transport connections affect your business?
Poor regional road connectivity or any other transport network, be it railways, airports in any economy, do undermine businesses.
We do however, as stakeholders continue to push the government to ensure roads, railways and other infrastructure in the country are improved.

How prepared are you during the conference to make sure that you sell East African Community (EAC) natural resources, like the accessibilities of ports and railways to the world?
We are involving all the ambassadors of the East African region, related freight forwarding organisations’ and authorities in the region to get a broader outlook on the industry regional wise.
There will also be presentations advocating for the formation of the regional accreditation board for freight forwarders in a bid to boost professionalism in East Africa.

How is this event expected to boost the economy of the East African region?
Businesses will increase as more favourable partnerships between different countries are likely to be created.
These partnerships are likely to grow the business in the region thus leading to a stronger regional economy.

How do you see the future of freight forwarders in the East African region and are the regional partner states expected to talk with one language of selling the EAC ?
The future looks bright, because bodies like Federation of East African Freight Forwarders Associations are very committed towards a more professional, trained freight forwarding industry in the region.
We want the region to be in the frontline of these new developments which are expected to boost trade within and outside the region.