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.

Chinese in $20m for Tanzanian units

News 

Sunday, April 27, 2014 

BY KENAN KALAGHO, 

EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

DAR ES SALAAM, Tanzania – A Chinese firm has heightened competition in the local real estate market by announcing plans to spend $20 million in new housing projects.
Dong Xiang has already acquired a 7,930 square metre piece of land along the Msasani beach suburb in Dar es Salaam.
This is for construction of 98 residential apartments for both upper and middle-class income earners.
The Deputy Director for Dong Xiang Liu Yupeng said last week, the residential project being undertaken by his firm was focusing on providing accommodation for Tanzanians.
Xiang said his project would be able to generate tax for the government, creating employment to Tanzanians as well as providing Tanzanians public with descent homes.
According to the recent published online survey on the cost of living calculator, expatistan.com, Tanzania is said to be offering the highest rents.
In affluent areas house rentals can be as much as $2,711 (Tsh 4.3 million) a month.
The survey Tanzania experienced a growth of 5.3% in the real estate sector between July and September 2013 resulting from the increase in demand of accommodation and business services.
Xiang however said, his firm was making sure that they enter into partnerships with local real estate firms and Tanzanians with land for a win-win situation.
He said this would enable most citizens to own affordable homes.
“Land is very necessary for our projects and in the near future we would encourage Tanzanians landlord to come forward for joint venture projects,”  Xiang said.
Currently Tanzania major firms involved in the real estate includes the state firm National Housing Corporation (NHC), the National Social Security Fund (NSSF) and other social security firms.

Tanzania to open up farming land

Agri-Business 

Tuesday, April 22, 2014 

EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

BY KENAN KALAGHO,

THE HOE: Some 70% of the population is involved with agriculture, but mostly use traditional and inefficient methods of farming.

DAR ES SALAAM, Tanzania - The government has said it will start identifying and surveying potential arable land for large scale food crop farming. 
Officials say this will boost agricultural production and later translate to faster economic growth.
In spite of Tanzania having 94.3 million hectares of surface land, just under half or 44 million hectares is arable and only 25 % is being presently used.
Speaking in Dar es Salaam during the Agrictech 2014 workshop with the theme ‘Leverage technology in agriculture transformation’, the Minister for Livestock and Fisheries Development Dr. Titus Kamani said there is a huge untapped potential.
“Only 450,392 hectares are currently under irrigation out of the 29.4 million hectares suitable for irrigation in the country,” Dr. Kamani said.
The vent brought together different participants from more than 10 countries from around the world.
He said the government wants to see that the available 29.4 million hectares is irrigated in order to boost agriculture production.
Dr. Kamani said there is also need to ensure that more youth and women are encouraged to participate in the agricultural sector as they form the largest percentage of the population.
Some 70% of the population is involved with agriculture, but mostly using traditional and inefficient methods of farming.
He insisted the government is transforming agriculture in order to allow it generate income to a wider number of rural Tanzanians.
Currently the Tanzania agriculture sector contributes 26.8 % to the nations GDP employing around 75.5 % of the population and the production is low mainly because it is determined by rainfall with very few irrigated areas.
The country’s wide sector approach of ASDP programs including the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) and the Green Revolution has of recent accelerated agriculture sectors’ development in rural areas leading to boosting its production.
The former Chairman of the Confederation Tanzania of Industries, Felix Mosha said the future of Africa’s development depended much on the future of agriculture development.
However, he said there has been an encouraging signs of young people participating in agriculture in Tanzania.

$245m delays Tanzania projects

News 

Tuesday, April 22, 2014 

EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

BY KENAN KALAGHO

DAR ES SALAAM, Tanzania – Contractors in Tanzania say delays in completion of contracts is due to the government not paying them their money which has accumulated to $245 million.
Speaking in Dar es Salaam last week, the Contractors Association of Tanzania (CATA) Vice Chairman Lawrence Mwakyambiki said the government needed to settle the outstanding bills of Tsh400billion ($245million) for the financial year 2012/13 it owes CATA in order to ensure the smooth implementation of the projects.
Mwakyambiki said such a delay was creating misunderstandings between the banks and contractors who had to apply for loans for the implementation of many projects.
“We usually get loans from the bank and repay after the government issues the funds for the projects but there have been delays from the government in issuing such funds and thereby making contractors to incur penalties from banks resulting from the delays in paying the loans,” Mwakyambiki said.
He pointed out that the delays from the government in paying them have also caused delays in paying their workers which later create a negative impact to both the workers and contractors including the implementation of such projects.
He also pointed out for the need to use of qualified consultants in order to ensure that their projects attain the required standards.
He said: “The government needs to ensure that consultants are used in all its infrastructure projects that are be implemented in order to ensure that these roads and other projects have the required durability thereby reducing unnecessary maintenance expenses”
The governments has recently been implementing different infrastructure projects aimed at connecting the whole regions in the country to tarmac roads that is seen a major tool in speeding up the country’s economic development.

Tanzania cancels 174 mining licenses

Resources 

Monday, April 07, 2014 

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

DAR ES SALAAM, TANZANIA - Tanzania government has cancelled a total of 174 licenses issued to small, medium and large scale miners in the country citing failure of the said companies to abide by the country’s Mining Act of 2010.
According to the information that was availed to East African Business Week last week, the Commissioner of Minerals at the Ministry of Energy and Minerals, Engineer Mr. Paul Masanja said companies licensed to undertake mineral exploration and extraction in the country have been evading paying fees, taxes as well as royalty to the government on time.
Eng. Masanja said despite the fact that the country has around 40,060 licensed large scale miners, most of them were not adhering to the laws of the land and the majority of them ended up occupying large areas for themselves.
He said such a trend by large scale miners of neglecting their very work of exploration and or extraction of minerals in such areas of their occupancy, was halting the development and growth of mineral sector in the country.
“The government is losing a lot in tax resulting from few unfaithful mineral exploration companies holding onto their license without doing the exploration and or extraction of minerals as per the requirements of their license,” Mr. Masanja explained.
He also noted that the government is intending to ensure that all speculators stop their operation in all the areas they occupy and allow new mineral investors to take over.
The Minister of Energy and Minerals Prof. Sospeter Muhongo warned the owners of minerals license in his 2013/14 financial budget to ensure that they honor the laws guiding minerals in the country to avoid them being revoked of their license.
So far Tanzania government has found different faults and given notice to some 289 companies licensed to conduct mineral exploration in the country between 2013 and2014 of which 211 license were for large scale mineral exploration whereas 78 were for medium scale extraction and one was for the large scale iron ore extraction.

By Kenan Kalagho, Monday, April 07th, 2014

Ophir oil sells blocks to rival Pavillion

Resources 

Monday, March 31, 2014

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

DAR ES SALAAM, Tanzania - Ophir Energy and Pavillion are undergoing oil and gas exploration in Tanzania have finally concluded a deal worth millions of dollars that will see Pavilion acquiring a 20% stake in Ophir energy.
The completion of the sale of Ophir’s energy Tanzania’s offshore blocks, 1, 3 and 4 worth more than $1,255 million signifies another new era of Pavillion investment in the country meaning the two giant firms retains a 20% stake each with BG Group, remaining with its 60 shares.
A statement that was availed to East African Business Week last week said the transaction that was reported on 14th November 2013 to sell a 20% interest in Blocks 1, 3 and 4, Tanzania to Pavilion Energy has now been completed.
The CEO of Ophir Energy Mr. Nick Cooper said his firm was “delighted to welcome Pavilion Energy into Tanzania Liquefied Natural Gas (LNG) development across blocks 1, 3, and 4.”
Mr. Cooper said that the partial monetization of their interests is in keeping with Ophir’s strategy of minimizing exposure to development capex and realizing the value created from exploration success at the appropriate time.
The company has received a cash injection of $1,255 million and a completion adjustment of $5 million to reflect interest and working capital movements since the effective date of the transaction of 1 January 2014.
He said a further $38 million is payable following the final investment decision in respect of the development of Blocks 1, 3 and 4, currently expected in 2016.
According to him, the proceeds from this transaction will support Ophir forward plans which include investing in a number of new opportunities that are under consideration by the listed company.
He also noted that a tax liability will be incurred on the transaction in Tanzania and that the timing of the payment will be finalized after discussion with the relevant tax authorities.
“Net proceeds after tax from the transaction are expected to be $1.0bn based on Management estimates,” Cooper said.
The Permanent Secretary in the Ministry of Energy and Minerals Eliakim Mawsi told East African Business Week that 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.
Meanwhile the company also said that Tanzania’s first planned liquefied natural gas export terminal could be expanded after the project partners – BG Group, Exxon Mobile and Statoil - discovered more gas than expected.
The terminal is expected to start shipping gas by 2020, with a final investment decision expected in 2016.
Ophir Energy plc is African focused, upstream oil and gas Exploration Company listed on the London Stock Exchange and has an extensive deep water acreage position in West and East Africa acquired since its foundation in 2004.

Pilots in Tanzania decry unemployment

Travel 

Monday, March 31, 2014 

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

Pilots, flight operators and flight engineers may not be able to take on domestic flight in the country

DAR ES SALAAM, Tanzania - The government of Tanzania has said it will do all it can to ensure local pilots, flight operators as well as flight engineers are given the priority over job opportunities for domestic flight in the country.
This will ensure that local pilots get the required expertise and experience for the good of the nation and the future of aviation industry in the country.
Speaking recently during the meeting with the Professional Association of Tanzanian Pilots (PATP) in Dar es Salaam, the Minister of Transport Dr. Harrison Mwakyembe said there were more young foreign pilots employed in the country’s domestic flights and this needed to be reversed.
“We have few older pilots aged 50yrs and above in the country while the majority of young domestic pilots between the ages of 20 to 49 are foreigners, this is a problem for the country,” Mwakyembe said.
He said the country needed to change this system in order to train more Tanzanians to become future captains in both local and regional flights, while insisting for the association to be more aggressive in fighting for their rights.
According to the Secretary General of PATP Capt. Khalil Iqbal Tanzania local pilots were being segregated with regards to job opportunities and his association is also being sidelined in all issues regarding aviation regulations in the country.
Iqbal said foreign pilots are being favored by issuing them with temporary Visas which are then used to secure flight jobs intended for Tanzania local pilots.
He wondered whether the country has law enforcers to ensure that these illegal foreign pilots have no access to jobs in the country just like it is with other countries like Kenya, and South Africa where it is hard for a foreign pilot to secure jobs.
“We have had experiences where South Africans and Canadians pilots have used the 90 days being given by the Civil Aviation Authority upon their arrival with a flight in the country as an opportunity to make money by flying domestic flights in the country and upon reporting this to relevant authorities we only saw corruption elements and nothing has been done so far,” Iqbar said.
Iqbar said around 40 young local pilots in the country do not have jobs while local airlines are giving temporary passes to foreign pilots from Kenyans, South Africans and Canada to fly domestic flights.
He said local pilots who have been trained oversee in South Africa, Canada and the USA are now back in the country to fly their domestic flights but are being frustrated by TCAA.
He said: “Local pilots are required to do a test in order to be approved of their expertise and experience but TCAA tests take time to be released and they do fail students deliberately. The 70% pass multiple choice test may take more than 3 weeks to be released while in other countries it is a single day exercise.”
He said local pilot students are being failed deliberately without being told which subjects they have failed and they sometimes are not given even the chance to see such tests results.
“We have a lot of local pilots, flight operators and flight engineers with very good qualifications in the country who are without jobs while a lot of foreigners have been employed taking the space of these local youngsters who have spent a lot of money in their studies” Iqbar said.
According to the Chairman of the PATP Capt. Aziz Abdhallah, almost $50,000 is used to train each pilot and leaving them without a job is a sad experience.
Abdhallah said Tanzania flight operators need to change their mindset and start employing local pilots, flight operators and engineers that will allow the country to have both experienced and expertise flight operators.
He said the international law on flights requires that every flight with nine passengers and with a scheduled flight should have circular pilots (2 pilots) but this is not being done in Tanzania.
“If we could allow this to happen as per the international law requirements a lot more young Tanzania pilots and flight operators will secure jobs and we will manage to train more future captain of this nation,” he said.
He said experience shows that a lot of Tanzania flight accidents were as a result of having only one pilot on the flight which is dangerous if the pilot gets sick abruptly and fails to manage the flight.
However, according to Mr. Elias Moshi from Tanzania Air Operators Association, local pilots in Tanzania lacked the required qualifications in order to secure jobs with both local and regional flights.
He said local pilots have Commercial Pilots License (CPL) which is an initial certificate with less experience as opposed to Airline Transport Pilot License (ATPL) which is required in order to prove that they are more experienced with more flight hours.

Tanzania keen for Israeli expertise

Agri-Business 

Monday, March 24, 2014 

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

IRRIGATION: Israel is renowned for transforming deserts.

DAR ES SALAAM, Tanzania -  Tanzania’s green revolution is now coming up for the better after the country invited the state of Israel and its business men with an aim exploiting the expertise in the agriculture sector.
Speaking in Dar es Salaam last week during the just concluded Tanzania Israel Business and Investment Forum, the Vice President Dr. Gharib Bilal said the green revolution would only be realized through the exchange of experiences, expertise, technology and knowledge from countries that have recorded success in the sector.
Dr. Bilal said the country is willing to attract committed investors with the techno-know-how, just like that of Israel which have managed to transform a desert land into an agricultural productive land, able to feed itself and the world at large.
“We want to have sound investors with the knowledge, technology and capital who will be able to benefit the country and our people at large” Dr Bilal said.
Tanzania believes agriculture is likely to turn for the better after by inviting and working closely with the state of Israel to ensure that it imparts the technology, knowledge and expertise of agriculture to the local Tanzania citizens who depend heavily on agriculture.
These initiatives have been taken following the achievements in agriculture that has been recorded by the state of Israel through the production and exportation of agriculture products throughout the world despite its country’s experiences of dryness with few sources of water for agriculture irrigation.
This would mean creating job opportunities for the majority citizens in the country who are famers and boosting agro-processing industries.
 Israel representative, Gilad Millo said Tanzania needs to be keen on how it market itself to the world to ensure it  attract investors .

By Kenan Kalagho, Monday, March 24th, 2014

Smart starts regional services

BY KENAN KALAGHO & BAZ WAISWA, EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA March 24th, 2014

THIS IS IT: Bouziani said their company is here to stay and they want to offer a different level of service across the region. (PHOTO BY BAZ WAISWA)

The East African countries of Uganda, Tanzania and Burundi, last week saw a new telecommunication service provider enter their respective markets offering voice and data services.
The new company, Smart East Africa (Smart Telecom), is partly owned by Industrial Promotions Services (IPS), a subsidiary of the Aga Khan Fund for Economic Development (AKFED). The firm, officials say, will focus on innovation and customer care.
Speaking at the Kampala launch, Abdellatif Bouziani, Smart Telecom Group CEO said the new telecom firm will expand its unique and proven social enterprise business model in the three countries.
The launch in Uganda was followed by a similar one in Tanzania last Wednesday and Burundi will be this week.
Speaking in Dar es Salaam, Bouziani said Tanzania had a good environment for conducting business.
He said, “We discovered in our market survey that the telecom project investment in the region will have more value and will attain the required growth.”
Already in Uganda Smart has indicated that it is braced for the competition by launching with the lowest price anyone can encounter in the country.
For example a Smart customer in Uganda will only pay Ush74 per each call without time limitation, this is the lowest when you compare to the existing billing of Ush4 per second which adds to Ush240 a minute or unit.
Bouziani said in Dar es Salaam, their company wants to offer a new telecommunication service to serve the people of East Africa region at a very competitive rate of Tsh79 ($0.048) per call.
He said their firm had been involved in survey to determine both the market and sustainability of their investment and found out that the region had more value for their investment.
“We discovered in our market survey that the telecomm project investment in the region will have more value and will attain the required growth,” Bouziani said, adding that lower costs of their services will likely attract many customers.
Bouziani told his Kampala audience their expeditions in Afghanistan with Roshan, a 40% shareholding in Tcell in Tajikistan and their investment adventures in SEACOM submarine gives them the necessary experience to grow a commendable telco in the region.
He said: “We are here for the long term. There will be a product for every segment, we are listening to people and designing what they need.”

Tanzania export zones attract $1b

News 

Sunday, March 16, 2014 

JOBS: Meru said in 2013 they were expecting 25 big investors and instead got 31.

Dr. Aldehelm Meru, the Director General of the Tanzania Export Processing Zones Authority (EPZA), recently highlighted the success of the government’s policy during the past 10 years to attract investment both in processing and manufacturing.  Some $1.02 billion has already been spent in setting up various enterprises. Last week, he spoke to East African Business Week’s Kenan Kalagho. Below are excerpts. 

Question: It’s now over 10 years since the inception of the EPZA, do you think the idea was appropriate and have you been able to achieve the anticipated goals?

 

Answer: The idea of introducing the Export Processing Zones Authority in the country was very right, because the country has been able to create more than 27,000 direct jobs and over 80,000 indirect jobs, attracting some $1.02 billion in capital investment for 98 companies. These companies with EPZ schemes are involved in both processing and manufacturing processing.

Have you then been able to surpass your set targets in terms of job creation and industry investment and if yes, what have been the reasons behind this success?

 

Yes, we have been able to surpass the targets in both job creation and industry investments.

Last year alone, we managed to attract 31 big investors while our target was only 25. These achievements have been due to community’s good understanding on EPZ in-terms of available opportunities and benefits to investors. 

We have also managed to create a lot of awareness on EPZ and the commitments of our team in promoting EPZ both locally and internationally as well as the governments political will in supporting the infrastructure especially electricity, that has helped the scheme to be attractive and get more investors. 

There is the issue of tax exemptions offered by the government to investors; do you think this is appropriate considering the conducive environment the country is endowed with?

 

The public need to understand that it is very important and appropriate for a country to offer tax incentives to investors. There is a perception that giving incentives to new investments is loss of government revenue. 

You give incentives to new investments which means that revenue is not there in the first place. 

 

How can you lose something that you did not have in the first place and you cannot claim to lose revenue to a company where there was no tax at all? 

 

For example, in mining sector you can talk of losing revenue if incentives are offered because we have the resources on the ground, but with industries it’s a different story because sometimes investors go to a place where there is no industry at all and therefore you cannot claim to lose revenue in such circumstances. These incentives are given even in other countries like Kenya, Ghana, China, Namibia, Malaysia, Nigeria and so on.

What countries have invested the most in the EPZ in Tanzania and in what capacity?

 

The countries that are investing much in EPZ in Tanzania include, India, seconded by China, South Africa, Thailand and the USA. Most of these investors are mainly investing in agro-processing industries followed by mineral processing and engineering.

Apart from the current EPZ areas of Dar es Salaam, Bagamoyo and Mtwara, Are there any plans to scatter these projects to other regions?

We have set aside land to be able to scatter the program throughout the country in mainly 20 regions in the country. 

We want to work with regional authorities to locate us land for EPZ between 500 hectares to 2,000 hectares of land which will be used for the projects in such regions

In your own view, is it appropriate for Tanzania as a country to join forces with other East African countries and sign the Economic Partnership Agreement (EPA) with the European Union countries?

 

I do not have a problem with the EPA, because it makes us closer to European countries and it will help us trade direct as a bloc with EU countries. It enables us to get markets in European countries. It would increase trade and it is good to have partners in business as it helps us to trade duty-free with the EU.

Our countries rely entirely on exports, because we need foreign currency to be able to balance foreign payments whenever we import oil, machinery, medicines and so on.

The problem is the conditions which favour one side (EU) and as an East African bloc we are not pleased with the conditions that have so far been set, because we need a partnership that would be solely a win-win situation.  

Any advice to Tanzanian’s with regards to EPZ?

 

We need take the advantage of the EPZ and Special Economic Zones (SEZ) schemes which have a lot of opportunities and benefits. They provide lucrative incentives that enable investors to get back their investment capital at the best earliest time. Tanzanians should not lean back and wait for foreigners to come and take advantage of opportunities which exist, on the contrary they should stand forward and grab the opportunities to make sure that its we Tanzanians who are developing our economy.

Tanzania discounts report on EPZ faults

News 

Sunday, March 16, 2014 

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

IN THE ZONE: An OECD report claims losses of $700 million.

DAR ES SALAAM, Tanzania - Dr. Aldehelm Meru, the Director General of the Tanzania Export Processing Zones Authority (EPZA), has discounted a report that criticises Tanzania’s export zone policy.
Commenting on the Organization for Economic Co-operation and Development (OECD) report titled ‘Investment Review of Tanzania’ he said it lacked facts and was entirely based on personal views.
The report described Tanzania’s EPZs as the largest loss makers. The authors claim some $701 million had gone down the drain since EPZs were started in 2002.
The report also claimed that the zones had not lived up to expectations due to the government offering tax incentives to new enterprises. The authors say this has cost the government millions in tax revenue.
However, Dr Meru said, “A large number of our competitors offer similar incentives including tax holidays, if we resolve to abandon tax exemptions, Tanzania will not be competitive.”
He named the countries that offer such incentives as the Phillipines, Ethiopia, Kenya, Burundi, Malaysia, Namibia, China, Rwanda and Nigeria where new investors were being offered similar incentives.
“Only 1% of the total FDI comes to Africa, of which 99% goes to South Africa Nigeria and Egypt, the rest of the countries fight for the remaining 1%. This justifies a need for being competitive,” he said.
He said despite issuance of tax exemptions to new investors, the government still benefits throuigh job creation and technology, all crucial for economic growth. “We are very open on tax incentives as we offer a 10 years tax incentives and 30% tax after the 10 years, while other countries like Kenya have a 10 years and 25% tax for the next 10 years and Rwanda offers tax holiday for the entire life of the company,” Dr Meru said.

Zanzibar fishers get Japanese aid

Agri-Business 

Monday, March 17, 2014 

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

DAR ES SALAAM, Tanzania - The Zanzibar government has received a $8.5 million Japanese grant for the development of the Malindi fish landing and marketing facilities in Zanzibar.
In a press statement to East African Business Week it is stated that the money will be used for the construction of the landing quays. This will enable safe accommodation of about 400 fishing boats on the island.
The funds will also help in the construction of a fish market and the provision of equipment that would allow smooth operations for around 6,000 users besides helping in fishing management programs.
The grant agreement according to the statement was signed by the chief representative of JICA, Tanzania Office Yasunori Onishi and Khamis Omar, the Principal Secretary of the Ministry of Finance in the Revolutionary government of Zanzibar.
According to Onishi, the implementation of these components will to the greater extent help in implementation of the said projects which will later lead to the stable supply of better quality fish to the people of Zanzibar.
According to Zanzibar government officials the funds will help in ensuring that the illegal fishing practices is halted which will later translate into a more modern fishing methods in order to protect environment and ensure a rapid income in the fishing industry.
An official in Zanzibar government said the construction of a $2.5million complex owned by the Zanzibar Fishing Authority last year was also one the indicators that the fishing industry in the isle is improving.
He said Zanzibar was willing to do its level best to ensure that fishing sector generates the more income for its people.
Currently Zanzibar major export earnings are from cloves which dropped last year to $2.1 million exports during the year ending September 2013, being a 60.2% drop from $4.3 million exported during the preceding year according to according to the Bank of Tanzania’s (BoT) Monthly Economic Review for October 2013.
With the decline in clove exports last year, Zanzibar’s export of goods and services dropped to $176.4 million during the year ending September 2013 from $196.6 million recorded in the same period a year before.
Despite the support being rendered to the fishing industry, most Zanzibar’s are also farmers, farming mainly Cassava, Sweat potatoes Rice, Cloves at relatively small scale with only one Research Institute at Kizimbani Research Center.

By Kenan Kalagho, Monday, March 17th, 2014

Tanzania parastatal savings fund eyes $1.2 billion

News 

Monday, March 10, 2014 

BY KENAN KALAGHO, EACT AFRICAN BUSINESS WEEK, KAMPALA UGANDA

EYEING THE FUTURE: Mollel said most of the money raised would go into local real estate development.

DAR ES SALAAM, Tanzania - The Tanzania Parastatal Pension Fund (PPF) is planning to raise its capital to $1.2 billion (about Tsh2 trillion) from the current $799 million by the end of 2015.
This would allow the Fund to be a major investment vehicle in Tanzania.
According to sources the money will go to servicing plots and real estate projects.
Eventually this will allow members and especially civil servants, to access descent homes through loan acquisition.
Speaking in Dar es Salaam last week, the PPF Member Services Manager Godfrey Mollel said in order to realize such a dream the firm is planning to enroll 400,000 members by 2015.
 He said this will enable PPF to implement much of the projects currently on the drawing board.
Mollel said, “With the increase in number of our members, we shall embark on houses construction in order to let our members own their own houses.”
 According to TanzaniaInvest.com website, developments within the construction sector have benefited the Tanzania real estate sector through the creation of additional real estate space.
This is despite the fact that real estate sector has not made significant contributions to the GDP in recent years.
However, the government remains optimistic with the recent planned developments that it will contribute to the growth of the sector. Currently Tanzania’s largest market for investors in the real estate sector can be found in office development.
Knight Frank, a UK-headquartered global property consultancy ranks as one of the major real estate managers in Tanzania.
Mollel said in recent years there has been considerable development in housing, which gave PPF a sound direction for investment opportunities.
“Currently we offer traditional benefits that includes old age, death survival, sickness, gratuity, withdrawal, education as well as deposit administration scheme benefit which involves interests and annuities of employers or employees,” he said.
However he said there was still much misinformation about pension funds in the country.
The Tanzania Pensions Fund is amongst the major pension funds in Tanzania.  It was launched in 1978 with an aim of offering old age and other benefits to its members.

A walk to Zanzibar’s town attractions

Travel 

Monday, March 10, 2014 

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

The House of Wonders

ZANZIBAR ISLAND - A twenty minutes flight to Zanzibar from Dar es Salaam will not bring any delight especially for the first comers on board.
However, the moment you approach the island and have a glimpse through the plane windows of the white stretch dotted clean beaches of Zanzibar, you soon start to realize the beauties and fun that goes with this precious spice island.
As soon as the plane touches Zanzibar ground,  you start to be exposed to the famous stone town, the old slave market, spice plantations and many of the Zanzibar exotic tourist beaches.
My tour to Zanzibar was part of the Bioscience for Farming in Africa (B4FA) fellowship that trains journalist in agricultural science reporting in four African countries of Tanzania, Ghana, Nigeria and Uganda.
We toured the famous stone town that has with it 1700 houses located just at the heart of Zanzibar city centre. We made it to the famous spice plantations, some 17km north west of the city at Kizimbani area. You will be amazed to see the narrow streets of stone town that can hardly allow vehicles to negotiate through. You will have to be careful with the motorbikes and bicycles crisscrossing these narrow streets sometimes at awkward speeds.
This was my third visit to Zanzibar and each time, I have to pass by the stone town. This time, I discovered the spice farm is worth a visit too.
We were about 18 tourists from Tanzania, UK, Germany and United States. Our tour guide Abdi Kassu paraded us to the old market place which is still in use today. Here traders splash out vegetables, fruits and fish and spices among other foods. This is opposed to the old days when this market was famous for slave trade.
Kassu knows much about his work as a tour guide, he has been in this job for years. You could tell how precise he was when he begins narrating the historic events of the Island. He has the dates from years back by memory. I did a bit of history and I could tell he must have done a lot of homework too.
He says the stone town with around 1700 buildings has with it two churches, three Indian temples and about 52 mosques.
The whole of the stone town is under the protection of UNESCO as a heritage center, and many of its buildings were built in the 19th century during the reign of Sultan Barghash. These buildings still remain firm today with Zanzibari’s occupancy.
I was moved with the design of the carved wooden doors that carry the history, luck, pride and riches of the time.
Kassu says the artists of the time had in mind every design to bear a unique meaning basing on the activities of the moment. Just like in Tanzania mainland, around Mnazimoja you will find a building dating to colonial period. A building long forgotten but still standing as a testimony of the construction works of the time.
Kassu says there are ‘Indian design doors’ in Zanzibar stone town as well as Arab stylish doors. The Indian design doors are embedded with snakes, eagles and lion drawings.
Before independence, having such door designs meant such a family was wealthy and powerful. They were symbols of royalty.
The Indian doors also have squared shutters . These have smaller sections allowing the door to fold. The brass knobs on the shutters were said to prevent elephants from crushing the doors. Today with the absence of elephants on the town streets, the brass knobs are simply decorations showing the wealth of the house owners.
The ‘Arabian doors’ have Arabic inscriptions and decorations around the door frames. These houses possessed an outside chair for male visitors. Women who stayed in such homes were kept indoors . They were not permitted to come into contact with male visitors.
We were told there are almost 200 different types of doors in stone town. Bell-rings on the door-side-flame would tell the number of family members living in the home. These houses are built from coral stones locally known as ‘matumbawe’ and lime.
The most famous houses we visited around stone town included, Sultan Barghash house, known as ‘the house of wonder’. It was the first house to be connected with electricity in Zanzibar.
We also visited the old fort known as the Arab fort built between the 15th and 16th century by Busaidi group of Arabs from Oman . In Oman, Sauti Za Busara concerts are hosted every year bringing in musicians from around the world.
This old fort lies to the north of Zanzibar stone town leading to the forodhani gardens . At the gardens you will enjoy different Zanzibar cuisines including sea foods, roasted goat and meat, pizza and chapati among other foodstuffs. The meals are more delicious in the evenings. This is when you watch the sun set while watching young-stars diving in the ocean .
Our tour ended with a dinner at the ‘top tower restaurant’ where we enjoyed a combination of Zanzibaris, Indian and Arabic dishes. The top tower restaurant in Hurunzi Street in stone town was the first such restaurant built in 1870.
Here you will have a chance to view the entire stone town buildings and the entire city of Zanzibar. And upon our return at the Ocean view hotel where we could lodge, the sound of the ocean breeze at night and splash of ocean waters could kept us wishing we had more days to spend on this island.

Poland to help Tanzania make tractors

Agri-Business 

Monday, March 03, 2014 

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

QUALITY: The Polish are among the leading global tractor makers.

DAR ES SALAAM, Tanzania - Finishing touches are being put to a proposed tractor assembly plant in Tanzania.
Sources say it would be the first of its kind in East Africa and would boost both agriculture production as well as improve incomes.
The multi-million dollar deal follows an agreement with Equator Suma JKT Company which has a share with Jeshi la Kujenga Taifa (JKT) signing a contract with Farmers Company from Poland.
This means that once the production starts, Tanzania is likely to be a major exporter of tractors.
Speaking in Dar es Salaam last week the Chairman of Equator Suma JKT Ramesh Patel said the two companies have secured a $70 million loan from Poland for the project.
“We have been in talks with Poland for a long time in order to implement the government’s initiatives of kilimo kwanza that was initiated in the fourth phase government,” Patel said.
Tanzania has for the past years advocating for kilimo kwanza to woo the majority population into the agricultural sector but the limited resources and high costs of farming implements have been draw backs.
Patel said production is expected to begin on a smallscale in order to allow for trials to take place at Centre for Agriculture Mechanization and Rural Technology (CARMATEC) in Arusha.
Robert Parcia, a representative from Farm Company, said they expect to assemble about 1,200 tractors by 2017 and that these will be of high quality just like those manufactured in European countries.
“We are optimistic that the assembling plant will kick off in Tanzania because of the assurances we have from the government of Poland in funding the project,” Parcia said.

$6m project to expand Tanzania telecom services

Resources 

Monday, March 03, 2014 

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

DAR ES SALAAM, Tanzania - Tanzania Telecommunication Company (TTCL) and Universal Communication Service Access Fund (UCSAF) have agreed to improve basic telecom services in rural areas in a $6 million project.
The World Bank is channeling the money through UCSAF.
According to the TTCL Chief Executive Officer Kamugisha Kazaura, the project is expected to start soon and will see about 33 constituencies with around 202 villages and involving some 3000,000 people being connected.
 “Our aim is to make sure that every constituency and village that was lacking telecommunication for long time, to have that access,”  Kazaura said.
He said implementation of the project will to the greater extent help to reduce poverty in the rural areas.
He said that most of these areas where the project is expected to be carried out are not well developed and therefore difficult for business opportunities to flourish due to lack of telecommunication links.
Services being planned  include mobile internet connections.
According to the TTCL Chief of Marketing and Sales, Peter Ngota , the project will be implemented with effectiveness.
It will cover 16 regions in the country including Arusha, Tabora, Iringa, Kagera, Manyara, Dodoma, Lindi, Mbeya, Morogoro and Mtwara,
Other regions includes Mwanza, Pwani, Ruvuma, Shinyanga, Singida  and Tanga. It is expected to be implemented in eight months from last month.

Zanzibar cassava yields up

Agri-Business 

Monday, March 03, 2014 

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

TRY IT: Machano shows samples of their cassava flour which sells at just over one US dollar for kilogramme.

UNGUJA, Zanzibar - Fishing is an important aspect to most island dwellers but to Zanzibaris, farming also plays a central part in their daily lives. 
Hard to believe, but many Zanzibari’s are farmers cultivating on a small scale, and cassava is their favorite crop, although rice is also consumed in large quantities.
About 17 kilometres North West of Zanzibar at Kimbiji area in Kizimbania,  a group of farmers is already making a difference through communal organized farming.
Muhamad Machano the Chairman of the ‘Tumwambie Nini Farming Cooperation’ says their farming group mainly focuses on cassava, Upland Rice, as well as sweet potatoes.
“We do grow Upland Rice on a very small scale. The weather is so dry on the island that we can only grow other rice varieties in wet areas or during rainy seasons,” he said.
He said since the groups’ inception in 2009, they have been able to make considerable progress with the hybrid grown cassava varieties and this has given them high yields at every growing season.
“We grow cassava hybrid varieties that are resistant to pests and diseases as opposed to our local varieties,” he said.
He added that these hybrid varieties include Machui, Kizimba, Mahonda and Makama.
Currently the group is cultivating up to 20 hectares of farmland and from every hectare the group is able to produce around 50 bags of hybrid grown cassava as opposed to just nine bags they used to get before.
According to Haji Saleh the Director of Kizimbani Agriculture Research Institute in Zanzibar, 90% of the food crops grown in Zanzibar is cassava, because it is able to resist the dry weather of the island.
“We are involved in crops, livestock, fisheries but we would like to focus much on the problems of post -harvest,”  Saleh said. He said this accounts for at least 40% loss of all the produce.”
The institute is currently looking at the ways on how to train farmers on post-harvest loss from farm to consumers in order to allow farmers earn more from their produce.
The Tanzania government is still contemplating on passing legislation that would allow the use of Genetic Modified (GMOs) crops to be grown alongside hybrids crops and other local varieties currently grown in both Tanzania mainland and Zanzibar.
If the law is passed, it would mean that scientists will now be able to work on the drought resistance genes of other plants into rice, allowing the dry places like Kizimbani in Zanzibar to still grow their favourite crop in relatively dry areas and still expect bumper harvest.
If the Tanzania’s strict prohibitive legal clause as stipulated in Biosafety Regulations of 2009 are worked out, this means farmers in Kizimbani area will now have reason to smile in their faces because with innovations, scientists are now able to produce rice that could carry a drought tolerant gene.
This science innovation would in-turn enable Kizimbani farmers in Zanzibar to grow their favourite rice crop for consumption even in harsh dry weather.
However Saleh said, “Despite cassava mainly being grown in Zanzibar, it is rarely consumed. It is mainly grown for sale and export, their favourite is rice.”
The Kizimbani Research institute is also focusing on sweet potato improvements and offering training to farmers on the best farming practices in order to help them source for clean planting materials especially cassava and sweat potatoes.
“It is very easy for farmers to transfer diseases through planting materials if farmers are not taught on how to manage planting materials properly,”  Saleh said.
He said both cassava and sweet potatoes use stems as planting materials and therefore easy to transfer diseases”
Machano on the other hand says that due to the increased participation on best farming practice with the research institute, the lessons obtained have been able to help them increase more produce and are currently planning to elect an office from where they will be selling their processed cassava.
“We have been able to grind cassava into cassava floor and pack them for sale at Tsh2,000 ($1.23) for every 2kgs of cassava floor, he said adding that crisps has also been their business.”
The cooperative is now looking for more opportunities as it plans to buy a petrol or electricity grinding machine at the cost of $2,097 (Tsh3.4million) and $3,701 (Tsh6million) respectively.
Muchano says besides selling crisps, and cassava floor, they also raise money through members’ monthly contributions and selling of cassava planting materials for $1.85 (Tsh3,000) for a bunch of 30 cassava stem bundles.
He however said that they face a challenge in sourcing for capital in order to allow them operate independently and raise funds for their children’s education as well as meeting their family needs.
“We would like to have our own machines for producing cassava floor and crisps that would later help us to have our own brand and possibly make our products be available to super markets.

Tanzania to destroy $50m ivory stockpile

News 

Monday, February 17, 2014 

BY KENAN KALAGHO

EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

Tanzania President Jakaya Kikwete was speaking last week in Dar es Salaam while launching an advertising campaign on anti-poaching.

DAR ES SALAAM, Tanania - Tanzania’s 90 metric tonne stockpile of ivory valued at about $50 million is to be destroyed.
Tanzania President Jakaya Kikwete was speaking last week in Dar es Salaam while launching an advertising campaign on anti-poaching.
He said burning the tusks would send a signal to poachers that the country was now serious over the slaughtering of its elephants.
This means that Tanzania has now joined other countries like Kenya, Japan , France and the United States that have for long supported destroying ivory stockpiles instead of putting them up for sale through auctions.
This has been a hard time for Tanzania which has for long argued for the sale of the ivory stockpile in order to finance the anti-poaching campaigns including the recruitment of game rangers and help to subsidise personnel salaries.
President Kikwete said it is high time the country suspended any plans for selling the ivory stockpile.
He said this would further the ill intentions of the poachers and further reduce the number of elephants which currently stands at 13,084 from the previous population of over 100,000 recorded in the early 1970s.
He said the country would destroy the entire ivory stockpile in order to intensify the fight against poaching that will also aim to send a severe signal to poachers and deny them market opportunities.
“We will soon start using the high tech of drone surveillance in all our national parks to protect the both elephants and other animals that are been the target in the country like lions and leopards,” Kikwete said. He said the country can rely on positive international support.
He said the efforts of the government on anti-poaching would only be realized if there is a total ban on ivory trade throughout the region and the whole world at large.
He also said countries like China, Vietnam, and Thailand should advocate for a ‘no ivory buying’ campaign to boost anti-poaching efforts.
The President however said that the catchment areas being occupied by the country’s national parks were not that easy to combat illegal poaching especially with the country’s financial capacity at carrying out anti-poaching exercise.
“Selous National Park is more than 200,000 square kilometres, and this is a great challenge when it comes to fighting against poaching in the country” he said.

Tanzania Asks for Canadian Financing

East African Business Week (Kampala)

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10 February 2014
BY KENAN KALAGHO
DAR ES SALAAM, TANZANIA — The government needs about $300million to improve power connectivity to the rural areas and has asked for Canada's help .
The move would mean increasing the rural connectivity to at least 30% from the current 7%.
During the talks on a cooperation deal on natural resources between Canada and Tanzania, the Minister for Energy and Minerals, Prof Sospeter Muhongo, requested for Canada's help in rural electrification.
Prof Muhongo said Tanzania was willing to accept a loan or grants from the government of Canada.The objective is to have widespread rural connectivity by 2025.
"There is need for us to make sure that we intensify rural connectivity and seek for international support with the population of Tanzania projected expecting to reach 70 million by 2025," Prof Muhongo said.
"Tanzania's total consumption currently stands at 900 megawatts. Since the country's population is expected to increase the demand for power will also increase," Prof Muhongo said.
Tanzania's recent move to open Economic Processing Zones in Dar es Ssalaam, Bagamoyo and other regions in the last two years, has led to a surge in the demand for electricity.
Earlier this year, the government had similar talks with the Algerian government to help it connect its rural population. Algeria has connected at least 97% of its rural population.

Tanzania misses out on its leather

Agri-Business 

Monday, February 03, 2014 

EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

BY KENAN KALAGHO

(HIDES AND SKINS: The leather industries are deficient of raw materials forcing investors to shun the sector top File photo and Botttom is the Executive Secretary of the Leather Association of Tanzania Photo By Kenan Kalagho)

Tanzania ranks second after Ethiopia in availability of hides and skin needed for the development of leather manufacturing industries that could play a role in creating job opportunities and boosting the country’s economy.  Joram Wakari, the Executive Secretary of the Leather Association of Tanzania talked to Kenan Kalagho of East African Business Week.
Below are excerpts:-

Qn: Why has there been low investment in leather industry in the country despite the fact that we rank second after Ethiopia in raw materials availability?
Answer: The leather industry in the country has the total installed capacity of 74.2 million square feet, but most of Tanzania hides and skins are smuggled to neighbouring countries like Kenya, leaving our few industries with a lack of raw materials. In that scenario with little availability of raw materials on the market, investors shun away from investing and or expanding their leather industries.

Qn: What is the government doing to counter this and help in getting raw materials to local industries?
Answer: The government has done a lot. First it imposed a 20% tax on the export of hides and skins in the country followed by a 40% tax increase in 2007 and by 2012 the tax was increased to 90%.
This halted the export of hides and skins overseas and as of 2012 only 19.4 million square feet of hides were exported. Yet still, local leather industries suffered the same fate.

Qn: Do we have the market for our hides and skins?
Answer: Yes we do have the market and most of our hides and skins are exported to the Far-East countries of Pakistan, India and China.
There is need however to build our own capacity in producing the finished leather which could create a lot of job opportunities and improve the country’s economy rather than exporting our leather in a semi-processed form.

Qn: What are the challenges facing the leather industry in the country?
Answer: There is lack of hides and skins because most of the raw materials are exported illegally through our ports and border posts.
This is alarming because it denies the country taxes and job creation. Besides the competition for local industries in order to get the best hides and skins, there is also cheating on weight and price of leather at the international market for the exported leather.

Qn: What needs to be done in improving the leather industry in Tanzania?
 Answer: Only small scale industries are involved in leather manufacturing and that by 2011 only 6 percent of fine leather products were exported outside Tanzania because of price sensitivity in the country.
There is a missing link between tanning and leather manufacturing industries because one hide is able to produce up to 20 pair of shoes which would be able to employ many Tanzanians.

Qn: Anything else?
Answer: We need to exploit the industry in order to make sure that we consume what we produce.
For example, in 2012 the country imported 31,000 pair of leather shoes and in 2011 around 42,000 pairs of leather shoes were imported while only less than 3 percent pairs were discovered to be of pure leather.
This means that we import poor quality leather while we have the best quality raw materials in the country, thus making the country lose in both forex and employment opportunities.

Tanzania to build research capacity

Agri-Business 

Monday, February 03, 2014 

EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

BY KENAN  KALAGHO

 

 A researcher explaining to colleagues his research on sweet potato virus (file Photo)

DAR ES SALAAM, TANZANIA - Tanzania has been advised to make sure it builds its capacity on research in order to find out both the ‘positive and negatives’ of whether or not GM crops could be relevant for the country.
Speaking to East African Business Week in Dar es Salaam last week, Dr. Asifa Nanyaro of Tanzania Academy of Science said there was no way a country can develop without doing research because capacity building was all about practical research.
Nanyaro was referring to a recent Tanzania’s biotechnology act that bears both the researchers and users including the manufacturer of GM product responsible for any effects that could be caused by GM crops.
He said capacity building was an important tool that could help the government make sound decisions and stand at a better chance of advising the government because we are very behind in terms of human resource.
“Academicians say that it is only through research that a country can be able to move and develop science forward, Nanyaro said adding that in most cases Africa has been using knowledge of other peoples’ products.”
Nanyaro stressed that it is only through practical research that the safety and security issues can be realized. Academicians work is to advise the government on biotechnology issues and give answers to the government be it sing foreign or local experts.
“There is fighting for resources due to population increase and there comes the issue of technology application in order to increase food security which I believe should have been given the due priority.”
He however insisted that the research that needs to be car ried to determine the effects of GM crops in the country needs to be independent without any foreign interest attached to it.
“All we need is the use of professional team that would be titled to do professional assessment on biotech in order to know its pros and cons.”
He said that both cross breeding and hybridization involves the change of genes in order to come up with better ones and so is biotech application.
Different organizations get funds from foreign firms to serve the funders interests and that should be refrained, he said, adding that those funders give funds to advance their interests just like on tea and coffee where Europe and the US have had an interest in funding research.
According to him, what is needed is for the country to allocate a 1% of its GDP just like the President Jakaya Kikwete had promised last year in order to advance research on crop related issues in the country.
wHe said Tanzania government in collaboration with agriculture institutions in the country need to make sure that they produce more surplus seeds for all Tanzania farmers.

$48m earmarked for Tanzania roads

Travel 

Sunday, January 26, 2014

EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

BY KENAN KALAGHO

SMOOTH RIDE: A network of good roads is good for business growth.

  DAR ES SALAAM, Tanzania -The Tanzania government has received $48 million from Japan in grants for improving road and electricity infrastructure in Dar es Salaam city.
   The grants will pay for the widening of the new Bagamoyo road project and reinforcement of the power distribution at a cost of $303,488.
   According to a statement, the expansion of the new Bagamoyo road was aimed at addressing the emerged challenges that includes among others the unexpected amount of unstable soil which has caused shortfalls in the project.
   Japan Ambassador to Tanzania Masaki Okada said in a statement that once the new Bagamoyo four lane road is completed, it will cut the city’s traffic congestion thereby allowing the expansion of economic activities.
   He said the remaining amount of the grant is aimed at enforcement of Ilala sub-station and the already existing Dar 132kv power transmission line project from Ilala substation to Ubungo sub-station in Dar es Salaam.
   The whole power transmission project enforcement in Dar city would involve the construction of a new Jangwani beach sub-station as well as the construction of a distribution line from Jangwani beach substation to Tegeta substation, also the construction of Mwananyamala substation as well as construction of a distribution line from Mwananyamala substation to Makumbusho substation.
   Other power projects expansion will involve the expansion of Msasani substation as well as the expansion of Msasani substation to Makumbusho substation.
    The statement added that through the implementation of these projects the city of Dar es salaam will be able to improve the stability of power supply thereby leading to economical development as well as improving the residents’ social services like hospitals and schools.
   The reads in part, ‘By implementing these components, the project will greatly contribute to improving stability of the power supply in Dar es Salaam City, which will lead to further development of economic activities and improvement of social services such as schools and hospitals’.
   Meanwhile work on the Arusha and Minjungu junction road is nearly complete. The almost 100 kilometre section  is 70% done according to Deusdedit Kakoko, the Regional Manager of the Tanzania Roads Agency (TANROADS).

Added on: Sunday, January 26th, 2014

Dutch win deal for Dar es Salaam rapid transit

Travel 

Sunday, January 26, 2014

EAST AFRICAN BUSINESS WEEK, KAMPALA UGANDA

BY KENAN KALAGHO

SMART: Structures take shape for the expected opening at the end of 2014.

  DAR ES SALAAM, Tanzania - The Netherland-based, Rebel Group, recently won the $1 million advisory contract for managing the day-to-day operations of the proposed Dar es Salaam Rapid Transit (DART).
   Operations are expected to take off at the end of this year.
   “It is our honour to be part of this project in Tanzania, works of the project that is aimed at reducing traffic congestion at Dar es Salaam include constructing a 20.9 kilometre trunk road at the Kimara terminal, Kivukoni, Msimbazi, Fire, Gerezani and a part of Kawawa Road from Magomeni to the Morocco Road junction,” Rebel Group fare collection advisor, Jeroen Kok said after the deal ws sealed.
   Eighteen firms submitted an expressions of interest, but Rebel Group won out of the selected short-list of six names.
   During the signing of the contract, the Dutch company was represented by its financial advisor, Guillaume Remy while DART Agency was represented by its CEO, Asteria Mlambo.
The permanent secretary in the Prime Minister’s Office (Regional Administration and Local Government), Jumanne Sagini witnessed the event.
   The project that was launched in 2010 and expected to be completed at the end of this year is anticipated to ease transportation and traffic congestion in Dar es Salaam. It is hoped this will also open up other economic activities.
  Sagini said the awarded contract marked a new start in improvement of transportation system in Dar es Salaam.
   He said that it was a government priority and a necessity for DART operations to take off as soon as possible.
   He said the project was important for the growth and economy of city residents.
   For years Dar es Salaam city has always been experienced traffic jams which mostly affect the performance of the working and business class personnel that retard the growth of the city to the larger extent.
   The PS  insisted that there was already e framework in place for the implementation of the Public Private Public Partnership (PPP) project saying DART was a good project that would ensure involves a private sector investment of about $180 million.
   He said that with the public sector investing around $250 million into the partnership there would be a lot of job creation in the project and this would demand more future investment opportunities in form of PPP partnership.
   “The DART is one of the modern forms of transportation in the East African region that is expected to woo other partner states in to drawing lessons from its success in its implementation processes” The PS said.
   On his part the Rebel Group Fare Collection Advisor Jeroen Kok said there were much eager to working in the country aiming at easing the city traffic congestions.
The on-going construction of DART project with a distance of 20.9 kilometres special trunk road is expected to cover a stretch road of Morogoro road which is the major artery in the city connecting Dar es salaam to different regions of the country, and part of  Kawawa road from Magomeni to Morocco junction.
Consutltants say rapid transit systems offer cost effective, environmentally beneficial and high performance mass transit where population density often does not justify the construction of costly fixed rail systems and the need for greater flexibility in route mapping is better served by wheel-to-road transport systems.
A bus rapid transit system will typically cost four to 20 times less than an equivalent Light Rail system and up to 100 times less than an equivalent metro rail system.
   On completion Dar will be able to boast of the most efficient public transport in the region.

Despite loss Barrick sticks with Tanzania

Resources 

Sunday, January 19, 2014

BY KENAN KALAGHO

EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

Biggest EMPLOYER: As a policy, Barrick locally sources many of the inputs used for its operations, File Photo.

DAR ES SALAAM, African Barrick Gold (ABG) suffered a loss of $110 million (about Tsh179 billion) last year. 
This is despite creating  65,000 jobs in Tanzania with an investment of over $2 billion (over Tsh3trillion) in Tanzania economy.  ABG is currently the largest gold producer in Tanzania with three operational gold mines that includes Bulyanhulu, North Mara and Buzwagi and contributed over $980 million (Tsh1.5 trillion) to the Tanzania economy in 2013 that accounted for 3% of the country’s GDP.
The ABG Chief Executive Officer Brad Gordon told East African Business Week in Dar es Salaam recently the loss was due to fluctuations of gold prices in the world market while at the same time contributing around $223 million (Tsh358 billion) in direct taxes.
However, Gordon said ABG was still stable with a cash position of $289 million (Tsh464billion) as of September 2013 and the employment opportunities it offers and all its undertakings in the mining sectors gives it a position of being the largest private importer in the country.
He said that around $514 million (Tsh826 billion) worth of goods and services were locally sourced in 2013 which represented 32% of the total spent procurement chain.
“For a period of 13 years we have been in operational in the country, we have managed to become one of the major employers,” Gordon said. He said currently 93% of all the workers at ABG were Tanzanian.
He said ABG expects to start its production at the Buzwagi mine in five years  and position itself as the most efficient miner in Africa after being stalled for a period.
ABG, the largest foreign direct investor in Tanzania, is also planning to inject an additional $445 million (Tsh715billion) this year compared to $700 million (Tsh1.1 billion) additional investment it made in 2012.
Gordon said ABG is implementing its investments in making sure that it comes closer to the community by investing $14 million (Tsh22 million) per annum in Maendeleo Fund in the 50 projects of clean water, infrastructure, education and others.
The mining industry contributes hugely to the country’s GDP through employment, supplier contracts, investments, payment of government taxes and multiplier effects from business linkages to other sectors. In 2012 the sector recorded an impressive growth rate of 7.8% in 2012, up from just 2.2% in 2011.

Added on: Sunday, January 19th, 2014