Thursday, December 19, 2013

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.

Friday, December 13, 2013

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.

Monday, December 2, 2013

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