Proposed Dar es Salaam rapid buses to spur business

Travel 

Monday, June 09, 2014 

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

QUESTIONS : Prime Minister Pinda is swamped by journalists last week. PHOTO BY KENAN KALAGHO

DAR ES SALAAM - Tanzania is likely to see hotels and shopping malls investments along the Dar es salaam Rapid Bus Project (DART) project corridor which covers 20.9km in its first phase soon after it is completed in late 2015.
Speaking during the launch of the market consultation meeting for phase1 DART project last week, Tanzania Prime Minister Mizengo Pinda said lack of wider roads in many cities in Africa including Tanzania has been a major hindrance to the city’s economic growth and development.
Pinda said the first phase of the project is expected to bring about a lot of development including job opportunities and innovation that will ensure that the adoption of smart card use is adopted.
He said the government in collaboration with Dars’ three city municipal will ensure that all the five phases commences soon after the completion of the first phase that would allow the country to have the best ever mode of infrastructure.
The project will see the construction of Bus Rapid transport (BRT) roads system in Dar es Salaam city in six phases with the first phase including the construction of Mbezi, south of Dar es Salaam to the city center at Kivukoni while branching at Magomeni to Morocco north of Kawawa road at a 3.8km distance all covering a 20.9 kilometers.
He said the total coverage of all the six phases of  DART project would involve the construction of the city’s 130.3km distance that would give the city a new look, improve its economy, cure traffic congestion, and attract investments while also reducing the city’s pollution which is affecting public health.
“Inadequate urban planning, coupled with under-investment in road and other infrastructure has been a major hindrance to the growth of economy in the major cities including Dar es salaam which has a growth rate of 5.6% per annum reaching 4.3muillion according to 2012 population census,” Pinda said.
He said that the government saw a need to develop an alternative transport system in order to go hand in hand with the growing city population.
He said being the first such transport system to be developed in the East Africa region, the project is expected to offer huge investment opportunities along its corridors.
“We are anxious to see that this project is completed by the end of 2015, Pinda said.  He said finding the right place for bus terminals had caused some delays.

Dar es Salaam to get $79m facility

News 

Sunday, May 25, 2014 

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

DAR ES SALAAM, Tanzania - Agence Française de Développement (AFD) and the Aga Khan Development Network (AKDN) have agreed to build a new 14,000 square metre health facility in Dar es Salaam.
AFD is the development arm of the French government. The two institutions announced the $79million (about Tsh127.68 billion) project recently in France.
The facility, among other things, will accommodate cardiology, oncology, neurosciences, critical care, mother and child health, nuclear medicine and imaging services.
The signing agreement was witnessed by the AFD’s deputy Chief Executive Officer Jacques Moineville and the Chairman of Directors of Aga Khan Health Services in Tanzania Amin Habib and the Princess Zahra Aga Khan, who heads the AKDN’s Social Welfare Department.
AFD is providing $53.5 million in concessional funds while AKDN will contribute $26.3 million. AKDN is also chipping in free monitoring, immunization and family planning services to 30 outreach centres in the country.
Completion of the project will mean an improved patient welfare programme, but also development of post-graduate medical education residency programmes in surgery and medicine in partnership with the Aga Khan University.
This investment is part of an ongoing Aga Khan Health Sector programme which started in 2000 and ultimately involves building the state-of- the art hospital in Dar es Salaam.
Tanzania has seen notable expenditure in the health sector in recent years.Not long ago, President Jakaya  Kikwete officially opened the Chinese funded Centre for Cardiac Surgery, Treatment and Training of the Muhimbili National Hospital (MNH).

Tanzanians can now take up natural gas stakes

Resources 

Sunday, May 25, 2014 

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

DAR ES SALAAM, Tanzania - Tanzanians local, investors including different organizations have something to smile after the Tanzania Private Sector Foundation (TPSF) announced last week that it was now possible for locals to own their natural gas and oil resources. 
The TPSF Chairman Reginald Mengi said last week in a statement availed to East African Business Week that local companies including Tanzanians and or groups of people wishing to buy shares will be allowed to have five percent stake, thus making the company a true ownership of locals.
He said the newly formed Tanzania Oil and Gas Corporation PLC will allow locals to enter joint ventures with foreign firm in the gas and oil sector. Tanzania has made huge gas discoveries reaching 45 trillion cubic feet.
There has been a heated debate between the government of Tanzania through the Ministry of Energy and Minerals and the TPSF headed by the renowned media mogul Mengi who was in the view that Tanzania’s natural resources was enough to give the capital needed for local investors to participate in the country’s oil and gas sector.
The efforts to ensure that local participate fully in the country’s oil and gas sector seems to be taking another shape following last week’s announcements that Tanzania can now participate fully in the sector through Tanzania Oil and Gas Corporation PLC.
Mengi said Tanzanians will be allowed to own not more than five shares in the company that will enable more local people to fully benefit from the country’s natural resources.
“This opportunity will allow Tanzanians to participate and have a hand in the ownership and participation of the country’s natural resources while ensuring that the majority have a stake in the company,” Mengi said.
He said with the formulation of the oil company by TPSF, local will have a chance to invest in the fields of natural gas and oil from both upstream and downstream.
The areas the newly formed company is expected to invest in includes, supply chain, capacity building and value chain in oil as well as natural gas and thus giving access to Tanzanians to partner with foreign experienced firms in the oil and gas sector which will in turn allow knowledge transfer to locals.
In another development four international oil and gas firms have entered into agreements with the Export Processing Zones Authority (EPZA) to offer various services to multinational oil and gas companies in the country.
The four firms will be given a 10 hector piece of land in Mtwara to the southern part of Tanzania for development as this is also a place where most of the oil and gas exploration activities is taking place.
According to EPZA Director General Dr. Adelhem Meru the four companies includes, Altus Tanzania from Singapore, Schlumberger Seaco Inc from the United States, Trans Ocean Industries and Services  from Dubai and Lenna from Iran.
Dr Meru said the said 10 hector land is part of the 110 hectors that is being allocated in order to allow it be developed as an oil field supply base which will allow various companies to set up structures and facilities needed to service oil and gas companies in Mtwara region.
“Oil and gas exploration firms operating in the country had requested us to provide with them companies which offer such services right in 2010, Dr Meru said, adding that agriculture and hotel sector in these regions where international firms will be operating is likely to get a boost”
In a couple to weeks, the government will be auctioning off another set of blocks for gas exploration off-shore Tanzania. There have been persistent complaints that foreigners would dominate everything.

By Kenan Kalagho, Sunday, May 25th, 2014

Tanzania women get $12m in loans

News 

Saturday, May 17, 2014 

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

DAR ES SALAAM, Tanzania - Tanzania Women’s Bank has said it has loaned more than $12 million (about Tsh20 billion) to women entrepreneurs in the country.
The bank that commenced its operations in 2009 is mainly focused to ensure that female entrepreneurs are empowered but also ensure that women are empowered both economically and socially.
Speaking in Dar es Salaam last week, the bank’s Managing Director Margareth Chacha said the loans have helped entrepreneurs, expand their businesses.
She said the bank was committed and focused at ensuring that women and young entrepreneurs have access to loans that can later lead to the growth of the economy.
“If these women and young entrepreneurs can be able to get access, their business will expand and they will be able to employ more people and this will later lead to the growth of the economy in the country,” Ms Chacha said.
She disclosed that a total of $10.6 million (about Tsh17.6 billion) was loaned to entrepreneurs in Dar es Salaam while around $788,450 (Tsh1.3 billion) was lent out to Dodoma entrepreneurs with another $416,059 (Tsh686 million) going to Mwanza businesswomen.
Other places the bank boosted businesses is Mbeya where $107,957 (Tsh178 million) went to entrepreneurs and Ruvuma region which got $221,979 (Tsh366 million).
She said there is a positive trend in paying back the loans which gives them an assurance of their customer’s businesses are doing well.

Investors want Tanzania one-stop

News 

Saturday, May 17, 2014 

GROWTH: President Kikwete in talks with the World Economic Forum Founder and Chairman Prof. Klaus Shwab on the side lines of the World Economic Forum held in Abuja recently. (Picture by Muhidin Issa Michuzi)

BY KENAN KALAGHO, EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA
DAR ES SALAAM, Tanzania - Tanzania has been asked to set up a one-shop investment window in order to limit bureaucracy.
Speaking to East African Business Week in Dar es Salaam last week, the EcoEnergy Executive Chairman Per Carstedt said they have been unable to start their sugarcane plantation project since 2006 due to the amount of paperwork in different ministries and government agencies that they have to deal with.
Carstedt said they have had to visit more than 10 ministries, including the Ministry of Energy and Minerals, Water, Transport, Environment, Food and Security and others and still their $500 million investment is not fully off the ground.
 “We have only been able to invest $40 million since the inception of our sugarcane project and our partners are unable to release funds, because there are unsolved issues with the government,” Carstedt said.
The EcoEnergy project is expected to bring down five to ten times higher impact in wealth creation than any other investment.
“By 2014, agriculture was still ranked the least in attracting Foreign Direct Investment (FDI) in the country as compared to mining, manufacturing, electricity, accommodation and finance which are ranked the highest,”  Carstedt said.
He said, “This is absurd, because most Tanzanians are farmers who need agriculture investment the most”
The EcoEnergy sugar plantation project that is intended to cover the areas of Matipwili, Kiwangwa, Gama, will cover 3,000 to 4,000 hectares of sugarcane plantation expecting to benefit some 2,300 in direct employment while creating more than 115,000 in direct employment.
Carstedt said the plan is to have about 2,000 hectares reserved for pasture with a constructed plant carrying the capacity to crash 6,500 tonnes per day.
 “There is lack of a one-stop shops for investment. You have to deal with so many ministries and government entities which is creating corruption elements, consuming and making investment in the country very costly,” Carstedt said.

Tanseed boosts small farmer yields

Agri-Business 

Monday, May 12, 2014 

BY KENAN  KALAGHO

EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

CERTIFIED: Mashaka said about five small holder farmers are currently producing seeds at Kilombero farms in Morogoro, Photo BY Kenan Kalagho).

MOROGORO, Tanzania - Tanseed International, a local seed production company, is helping small scale farmers produce 12 million tons of certified rice and maize seeds annually.
The venture would make available seeds to more than 1.26 million small holder farmers while also creating awareness to another five million in the next five years.
This is part of the new alliance for food security and nutrition that was launched in London during 2012.
Tanseed provides quality but low priced seeds and ensures that more farmers get value for money for their agricultural products.
Speaking with the Bioscience for farming in Africa (B4FA) fellowship journalists last week in Morogoro, Tanseed International Managing Director,  Isaka Mashaka said they are training and working with small scale farmers to allow them access to good quality seed production to farmers.
Mashaka said about five small holder farmers are currently producing seeds at Kilombero farms in Morogoro, where at least 250 tons of seeds are being produced on 16 acres of land at Dakawa in Morogoro.
“We train farmers on how best to grow maize and rice for seeds. Later we buy these seeds from them at a competitive price which gives them more income than if they were to embark on cultivating the same crops for food,” Mashaka said.
He said besides producing drought tolerant varieties, they also collaborate with both local and international researchers on how best to solve farmers’ problems resulting from Climate Change.
According to Nasibu Katoto, a small scale farmer at Kilombero farms, he has been able to benefit from a contract with Tanseed by selling up to $60.70  (about Tsh100,000) for every 90 kilogramme of rice seeds that are being produced as opposed to the usual price of $18.20 (Tsh30,000) at the local market.
Katoto said through Dakawa Small Holder Farmers Association commonly known as WAWAKUDA, they have been able to sell quality seeds to Tanseed and improve their livelihoods, including building themselves good homes.
He said 15 years ago when they just started their Association, they weren’t benefiting much because they were selling food produce until after they received training and started producing seeds for Tanseed in 2012.
“Growing seeds for sale pays a lump sum than previously when we were growing food crops, because we are assured of the market,” Katoto told East African Business Week.
He said WAWAKUDA members have also attained different training at the Kilimanjaro Agriculture Training Centre in Moshi to help them produce quality seeds for farmers.

Tanzania loses $512 million due to bad managers

News 

Monday, May 12, 2014 

BY KENAN KALAGHO

EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

DODOMA, Tanzania - Due to poor management, the government has lost more than Tsh 843 billion (about $525 million) according to the 2013/2014 report of the Controller and Auditors General (CAG).
The report was tabled last week in the parliament and covers the year ending June 30 2013.
According to the report, the leading ways money has been lost include embezzlement due to missing of invoices, payment for ghost workers, poor accounting as well as poor procurement methods.
Speaking in Dodoma last week, soon after tabling his report ,  the CAG Ludovic Utouh said his team found mismanagement of funds with Tanzania Ports Authority, the Ministry of Energy and Minerals, Ministry of Trade and Industries.
There is a case of  procurement of 11 vehicles worth millions of shillings at the trade ministry between August and September 2012, but these vehicles never reached the intended offices.
 “It is obvious that the vehicles ended up in corrupts hands and benefiting few individuals because they never,”  Utouh said. He said the cost of such vehicles still remains undisclosed because the whole issue is under investigation.
Utouh said $1.7 million was carelessly spent by TANESCO’s (the electricity utility) on the  Kurasin and Mbagala project meaning extra costs. Advisors’ payments rose to euro 2.5 million from the previous euro1.7 million incurring extra cost to TANESCO  which paid SEMCO Maritime AS and Rolls Royce Maritime AS $5.7million (Tsh9.5billion).
The report also noted that TPA incurred a $1.4million (tsh2.46billion) into procuring eight oil pumps from FMC Energy systems that were never put on use due to its unsuitability, while $200million (Tsh329.95billion) allocated to development projects on social services could not be spent.
The ghost workers according to the report swindled some $971,776 (Tsh1.6billion) in public funds on either dead, retirees and or resignations while various public institutions failed to abide by the procurement procedures costing the government huge sum of money. The CAG said his team discovered that there were projects whose financial document were missing that amounted to $2.7million (tsh4.5bilion) especially with the Agricultural Sector Development programs, Tanzania Social Auction Fund, Water Sector Development programme as well as Health Basket Fund.