Tanzania: Tanga Cement Decries High Cost

East African Business Week (Kampala)

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 Tanzania: Tanga Cement Decries High Cost

 The Managing Director Mr. Erik Westerberg  during a meeting recently in Dar es Salaam Photo By Kenan Kalagho)
By Kenan Kalagho, 28 May 2012

Dar es Salaam, Tanzania — High taxes, poor infrastructure, unreliable electricity supply and the uncontrolled inflow of foreign products at lower prices are some of the reasons cited that are hindering local firms from competing on the world market.
Speaking to the East African Business Week during Tanga Cement's AGM in Dar es Salaam last week, the Managing Director Mr. Erik Westerberg said that there is poor and unreliable rail transport in the country and that it is escalating the prices of cement products in the country.
"We are relying on road transport to move our products which is very costly, " Westerberg said. "If we were to use rail transport it would reduce the costs of production thereby reduce the final prices."
Westerberg added that these costs were affecting productivity of manufacturers in the country and therefore causing an increase in prices of local products.
He added that, if the rail transport was to be reliable, there would be an assurance that the prices of cement in the country which is currently sold at $9.61 a bag could drop further.
"There is unreliable rail transport in the country. The increase in the costs of our products is partly due to poor infrastructure," Westerberg said.
He noted that only a total of 75,000 tons of cement was being produced by Tanga Cement using the locally available clinker while the yearly demand stands at 1.3 million tons.
"The rest depends so much on imported clinker so as to meet the 1.3 million tons which is proving to be very expensive compared to the locally made clinker," Westerberg said
He said that the company would soon launch an initiative aimed at using locally manufactured clinker that will reduce importation of such products which are increasing the costs of production.
"We realized that it was important for us to use the locally produced clinker in order to reduce the costs involved in the expensive imported clinker. This will also mean increasing our production as well because there will be a marked reduction in costs as a result," he said
He also noted that there is an urgent need for the Tanzanian government to level the playing field for both local and foreign companies.
"We usually pay a lot of taxes which the government reinstated in 2005 while at the same time, we face an acute shortage of power where about 30% of the total electricity required to run the company depends on the company's own production. Partly, this are some of the reasons for the high cement prices," Westerberg said.
He added that last year, Tanga Cement generated 12% of electricity while at the same time importing coal from South Africa for electricity production to run their machines.
The Cement firm's chief said that they hoped to start buying locally produced coal.
He advised the government to come up with better ways of controlling the influx of low priced foreign construction materials.
"These foreign manufacturing companies enjoy subsidies from their governments, they have a reliable electricity, while enjoying a very good infrastructure" he said.
Of recent, Tanzanian market has seen the flooding of Cement from India, Pakistan and China at lower prices which is threatening out competing that from the local companies whose cement prices are higher.
He advised the government to reinstate tax exemptions to bring down the cement prices.
Meanwhile, the company has approved the construction of a second kiln to counter the rapid economic growth of the East African Community.
The TCC board of directors approved the construction of a second kiln, a move which will see the manufacturer increase its production capacity by 600,000 tonnes a year.
Mr Westerberg said, the construction of the second kiln is expected to commence in the third quarter of 2012, with commissioning in the first quarter of 2015.
The project will cost an estimated $165 million

Tanzania to stem beach encroachment

Saturday, 19 May 2012 10:25  East African Business Week 

 Kenan Kalagho,

DAR ES SALAAM, TANZANIA - Dar es Salaam has stressed the need for preserving the environment in its entire coastline beaches and rivers in order to make the country profit from its coastline.

 (Building close to ocean and rivers is against Tanzania law Photo By Kenan Kalagho)
Speaking in Dar es Salaam last week the Minister for Lands, Housing and Human Settlements Development Prof Anna Tibaijuka said it was embarrassing to see that most of the houses and or construction taking place along coasts of the beaches were not following the requirements as stipulated in the laws .
"The law requires that any construction along the beaches should be 60 metres off the high water mark, " Tibaijuka says.

 (Building close to ocean and rivers is against Tanzania law Photo By Kenan Kalagho)
She said there would be a country wide operation aimed at restoring the urban order developments plan in order to recover open spaces which were illegally occupied.
"There are about 70 plots in Dar es salaam along the coast of Dar es Salaam beaches with title deeds and these plots are legally owned by the public and we are looking into the best ways to relocate and or give them, other plots because such developments are close to the ocean and a threat to environment" Tibaijuka said
She stressed the importance of abiding by the rules and regulations so that the environment could be protected.
Tibaijuka said it was important for the public to make sure that plots which had been legally owned saw the developments in order to utilize the land fully.
She said she saw no reason why Kariakoo market, the biggest in Dar es Salaam should fail to develop a market plot at its Mbezi to the outskirts of Dar es Salaam it purchased some 20 years ago.
Tibaijuka warned that most of the plots close to the beaches which were invaded after the environmental law was passed will be recovered without compensation.
Early in the week the vice President of Tanzania met Tibaijuka and the Minister for Environment in the president's office Terezya Huvisa to discuss among others on how the issue of demolishing houses built close to the oceans will be implemented.

East Africa: EU Crisis Worries EAC Experts

East African Business Week (Kampala)

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By Kenan Kalagho & Milkah Nducu, 19 May 2012

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Dar es Salaam — The East African Community (EAC) has cautioned the European Union to make sure it strives to end the economic crisis it is currently facing if it is to be a role model in cementing the East African regional integration bloc
Speaking to East African Business Week in Dar es Salaam last week during a round table discussion on regional Integration and Trade: East African Community and European Union perspectives that was organized by the EU and the Department of Political Science and Public Administration of the University of Dar es salaam, the Deputy Permanent Secretary in the Ministry of EAC Affairs, Mr Mussa Uledi said, it was disappointing to learn that the EU regional bloc from where the EAC has been drawing much of the lessons on integration was currently facing economic crisis.
Mr. Uledi said that Tanzania has been pursuing regional integration for over three decades seeking it for both regional trade, international relational tool and also as a way of looking for good neighborship with other states.According to Uledi, Tanzania still believe that integration of EAC will one day instill the dream of the United States of Africa which was a Pan Africanism dream that had been foreseen by the first African heads of states.

 The Deputy Permanent Secretary for EAC Mr Uledi Mussa speaks as EU Ambassador  Filiberto Sebregondi looks on Photo By Kenan Kalagho)
He insisted that there was need for academicians to make sure that they conduct thorough research on the EAC and its integration in order to come up with the benefits of the integration instead of mocking it as a baseless unity that does not aim at improving the lives of the East African population and Tanzania in particular.
"We should stop blaming ourselves and pointing only at the negative aspect that could be experienced by Tanzanians due to this integration because such words will only aim at discouraging the local citizen participation in this integration," the Deputy Permanent Secretary for EAC Affairs insisted.
"There has been an increase in export to around Tsh450 million ($288,461) by the end of last year in 2011 compared to the figures that were being experience way back before the integration of less than Tsh.100 million ($64,102) a year," Mr. Uledi said. He therefore advised academicians to help the government propagate integration so that the public can use the opportunity that comes with integration instead of them being a stumbling block into feeding the public with the effects of integration Tanzania might face.
The European Union Ambassador to Tanzania and EAC Mr. Filiberto Sebregondi said, he was optimistic that the EAC membership countries will grow as other countries sees the benefits that comes with integration.
Sebregondi said that the integration for EAC should be looked at as a progressive process and not just as a short life span. The EU started with six countries and now we have progressed and seen more than 20 countries joining in" Ambassador Sebregondi said.
Prof. Robert Mabere of the University of Dar Salaam differed with the Ambassador by saying that just like the purpose of the then colonies on African countries seeking for raw materials, the purpose of the EU and EAC integration were aimed at the former benefiting from the EAC resources.
Prof. Mabere said that just like the failure of the implementation and yielding no results to African countries by the Coconou Agreement treaties between African countries and EU countries, the Economic Partnership Agreement (EPA) can never be realized because Africa can hardly trade with more vibrant economies of the EU states. "You can only have the reciprocal in trade with someone you are equal with" Prof. Mabere said and added that the flow of EU goods to the African market as a result of tariffs removal being proposed by in the agreement will make local industries fail to compete in the market."
Last week, one of the local paper in Tanzania quoted former President of Tanzania Mr. Benjamin Mkapa stressed that EPA agreements as they stand, contained a lot of problematic elements that will have an impact on African countries' ability to develop and industrialize.
Mr. Mkapa noted that our local and regional market will be opened up even more than, currently case to EU products and this could end up damaging our local industries, stymieing their growth, and remaining as raw materials and primary commodities exporters while noting that the research by the South Center had shown that locally produced materials like maize, cereal bran, barley in the EAC may be put at risk.

Q and A Un necessary taxes should be cut off - Kigoda

Business Digest

Un necessary taxes should be cut off - Kigoda

Sunday, 13 May 2012 21:49 Kenan Kalagho 

 ( The newly appointed Tanzania Industries and Trade Minister Dr Abdhallah Kigoda  in an Interveiw with Kenan Kalagho during his swearing in, in Dar es salaam recently By Kenan Kalagho)
The Government of Tanzania recently reshuffled its' Cabinet following the Control and Auditor General’s report that implicated some ministers. East African Business Week’s KENAN KALAGHO caught up with Dr. Abdhallah Kigoda, the new Minister for Industries and Trade and below are the excerpts.

Qn. What should Tanzanians expect from your appointment?
Ans. Tanzania should expect me to deal with inflation which has affected a lot of people. There is also the need to reduce the cost of doing business in the country so as to encourage investment especially to some of the unnecessary taxes which need to be cut off and or reducing the period and unnecessary licenses because that would encourage industries to produce more.

Qn. Do you think Tanzania can become an industrialized country?
Ans. It is very possible. We have for example natural resources like iron ore, coal and gas and many others which are prerequisites for any country to industrialize.

Qn. Do you think tax exemption for investors which is causing losses in tax revenue is the best approach in attracting investment?
Ans. That depends on which taxes you are talking about because some of the tax exemptions the government is offering to investors are really genuine. For instance Kenya and Uganda's tax charges on investment is 1% of their country's GDP while in Tanzania we charge more than that.
So there is need for us to also look into that and see how these tax charges can be reduced so as to create a friendly business environment.

Qn. What are other major challenges we face in creating a friendly business environment?
Ans. There has been for instance the issue of shipping inspection where we have received a lot of complaints from different stake holders and so we need to see how we can solve some of these problems which are a hindrance to business.

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East Africa: May Day On the Indian Ocean

East African Business Week (Kampala)

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By Kenan Kalagho, 7 May 2012

opinion

Most of Dar es Salaam coastal areas where a hundreds of beach resorts are located will always charge you an entrance fee that ranges from $5 to $10 for just a swim in the Indian Ocean waters.
At the Dar es Salaam Coco beach or just "Coco" you will enjoy a swim at no cost.

(Tourist and beach goers enjoying a swim on May day in Dar es salaam, Coco beach is most frequented by Dar residents during festivals Photo By Kenan Kalagho)
The beach is located at the posh area of Oyster Bay to the Eastern part of Dar es Salaam city where most government top officials and foreign mission residences are located.
The 'Coco' is a public place and almost every Dar resident have an access for a swim at the beach.
Dar es Salaam city has one of the largest beach coastlines but the majority of such places are either privately owned and thus 'private beaches' placards are instituted on them while other beach places, hotels and or beach resorts have been erected where visitors going for a swim can only be given permission on payment of an entrance fee in their hands.

(Tourist and beach goers enjoying a swim on May day in Dar es salaam, Coco beach is most frequented by Dar residents during festivals Photo By Kenan Kalagho)
I had earlier planned to spend May Day at Kigamboni Beaches some six kilometres South of Dar es Salaam where a number of beach resorts line up the coastline, but ended up at 'Coco'.
Dar es Salaam Coco beach brings in a lot of swimmers from kids who visit the place in the company of parents to try out swimming to people of all ages who just want to enjoy both the Coconut tree shades and the Coconut juice at the beach.
The name "Coco beach" is derived from the many coco nut trees that dot the area.
Today, there are only few remnants coconut trees left that hardly bear the sweet "Madafu juice" a Swahili term for "Coconut juice".
However you will always be assured a drink of the famous "Madafu" a coastal juice that sells between $0.45 $0.64 per fruit.I walked six kilometers to Coco beach on the beautiful Tuesday, May Day. The weather was cloudy and therefore conducive for a walk rather than boarding a commuter taxi.
It is a 4km distance from my residence to the Coco beach and almost three kilometers from Dar city centre. Though it would have cost me only $0.19 if I were to take a commuter to the beach where I would walk another 2km to reach the Coco.
Nevertheless anyone wanting to visit the Coco will be charged not more than $10 on a taxi from the city centre.
You will never realize how many swimmers are in Dar unless you pay a visit to the Dar Coco especially during the festive season.This is when you will wonder why Dar still doesn't have any record holder in international swimming competitions.
Arriving at the Coco around 1PM in , I was greeted by a number of Dar residents who had already flooded the "Coco" from different localities for just a swim.
There were some however, who had come as a family relaxing on their marts as they enjoyed the fresh ocean breeze, while others were busy taking a swim in the waters.
There is also a kid zone at the Coco where children usually enjoy the string rides and the bar close to the ocean stocked with all tribes of foodstuffs and drinks to spoil you. However I realized that most Coco frequenters usually carry their foodstuffs. In other places of the coastal beaches around Dar es Salaam especially where hotels and or beach resorts have been erected, beach frequenters are not allowed to bring in foodstuffs from their homes while still paying a lot in entrance fee.
Mr. Mussa Ramadhani says the system of paying an entrance fee for just a swim or being restricted to the coastal beaches for the privately owned places should be reversed because according to him the beach is 'a no man's' land.'

(Tourist and beach goers enjoying a swim on May day in Dar es salaam, Coco beach is most frequented by Dar residents during festivals Photo By Kenan Kalagho)
Ramadhani says Tanzanian law requires all beach areas to be open to the public with an exception of few beach areas that have government restrictions like the famous beach found at the heart of Dar city center which is restricted due to its closeness to the State House.
He says there is also a nice beach around Selander bridge 3km north of Dar city where one is not allowed to swim as the water can affect the body.
"Selandar beach is close to Msimbazi river which enters the ocean just a few meters away and this river usually carries with it all the debris of Dar es Salaam and thus causing health risks to swimmers" Ramadhani says.
There was a time however, when the Coco beach too was restricted by the government way back in 2000 due to an incident where a shark had devoured a third year Muhimbili University student.
It reopened in 2001and since then there hasn't been any dangerous incidents at the beach, Ramadhani says as he proceeds to take his last dip in the waters at the Coco beach.
By 6pm the police starting blaring messages telling revellers it was time to return home.
And soon people started to pack their belongings and hauling up their kids ready to depart the Coco beach. This is not common on many Dar beach resorts I have visited where security is always at owners' risk.
After a weary swim and after hearing the loud voices coming from speakers telling people to vacate the place, I too organized my shorts and small bag I had carried while leaving the Coco as empty and clean as ever.

(A section of Dar residents enjoying the swim at the Coco beach in Dar Photo By Kenan Kalagho)
I had wished I had visited the Coco in the company of either a fiancé' or wife and kids buts alas! I still don't have one; till then, Dar Coco will always be my favourite destination at no cost.

Tanzania: Dar Artist Who Won Over Tourist Hearts

East African Business Week (Kampala)

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By Kenan Kalagho, 29 April 2012

Dar es Salaam — Art is our culture, it is an African tradition that we have lived with it for so many years yet it is also a business that people make a living out of, Fadhili Raisi says.

(Dar artist Mr Fadhili Raisi showing his painting at his shop around Oysterbay Hotel in Dar es salaam By Kenan Kalagho)
 Raisi owns an art gallery painting at Morogoro store, Oyster Bay in Dar es Salaam. He says that while many governments spend a lot of money advertising their country's attractions around the world, they should also invest in youths especially in arts and craft that has proved to be the best way of selling and attracting tourists.
Tanzania advertises itself on CNN, an international television where billions of money is spent. Instead government should have spent on art and crafts, help advertise and employ youths while show casing our culture and traditions, he says.
Raisi says that a lot of tourists are moved by small attractions like art crafts and paintings, besides the national parks, game reserves and all islands and coastal areas that are found in the country.
"Things like the ocean coastline and islands, parks and game reserve animals are something a tourist cannot take as a souvenir to show friends in his home country," Raisi says.
He says his paintings thus far have been bought by many a tourist.While people look at the art painting as no work. He on the other hand earns a living while educating his family through it.
"I started painting some time ago but it was not until I saw the tinga-tinga paintings by Suleiman Kabila in 1996 that I realized I can also do a great job in the art and sell my ideas around the world," Raisi says.
The prices of the artworks usually depend on the size and how many colours have been involved in the painting and usually we use three to 10 different colours for a single picture.
"You can have a very small frame but paint a very difficult structure which means the cost of the art work will also be high."

(Dar artist Mr Fadhili Raisi showing his painting at his shop around Oysterbay Hotel in Dar es salaam By Kenan Kalagho)
The price ranges from $5 to $500. Raisi says while there is lack of education to most of Africans especially in Tanzania on the importance arts in the country, most of their pieces are sold to foreigners.
Raisi has different kinds of paintings from Stone Town streets in Zanzibar, to others found in different parts of the Indian Ocean illustrating different scenery.
"There is this unfortunate trend amongst Tanzanians where local art is disregarded in favour of foreign pieces. For example its not suprising that government offices contain flowers and art works from China and other countries instead of ours. If Tanzanias do not appreciate local art, who will?" Raisi said.
Raisi says most youth in the country could secure jobs and earn their living if the government promotes them .
"Having a job does not only mean working for the government," says Raisi, "The problem is that the government looks at the film and or music industry only forgetting that art is our tradition that every individual can learn and earn a living from."

(Some of Fadhili Raisi paintings on display at his shop at  Oysterbay Hotel in Dar es salaam By Kenan Kalagho)
Raisi says he usually makes follow-up whenever there is a parliamentary sessions in Dodoma and he has never heard the minister responsible mentioning anything about art and craft in his speech.
"Through my paintings I have been able to meet several European tourists and most of them are customers who have been buying my paintings" he says
Raisi says since holding exhibitions costs a lot, he has opted to arrange for trips to Zanzibar which is also a tourist's attraction and sell his arts paintings there.
"I have made several trips to Zanzibar to display my paintings in different hotels of Zanzibar due to its position as a tourist attraction and many tourists liked my work"
There are challenges to face. "We do not a reliable market where we can sell our art pieces", Raisi says, "The only market we have is that of European tourists which also depends on the season."
Like many upcoming businesses, they look to the government for help. "The government should organize exhibitions so that the youths and the unemployed can join these artists groups ," he pleads.

Tanzania: Govt to Control Toxins in Food

East African Business Week (Kampala)

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By Kenan Kalagho, 29 April 2012

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Dar es Salaam — The Ministry of Agriculture in collaboration with the International Institute of Tropical Agriculture and other partners have launched a project for the control of mycotoxins and biocontrol of aflatoxins in the country that will add value to Tanzania exported food products especially maize and cassava.
Speaking with the East African business Week in Dar es Salaam last week, the Principal Agricultural Research Officer with the Ministry of Agriculture Dr Omary Mponda said that the country was having a problem to most of its exported serial products that loses value on the world market as a result of the concentration of mycotoxins to crops.
According to the UN Food and Agricultural Organisation of the United nations, mycotoxins are 'fungal metabolites which when ingested, inhaled or absorbed through the skin cause lowered performance, sickness or death in man or animals, including birds.
They occur in a wide variety of foods and feeds and have been implicated in a range of human and animal diseases.
Aflatoxins can be defined as any group of toxic compounds produced by certain molds, especially Aspergillus flavus, that contaminate stored food supplies such as animal feed and peanuts.
"It is a problem when trying to export groundnuts and maize to the world market where there is a requirement for a free concentration of mycotoxins or that such products meet the World Health Organization (WHO) requirements if they are to attain the good prices on the world market," Dr Mponda said.

 (Dr Omari Mponda from the ministry of Agriculture expalining a point on the effects of afflatoxins in food, right is Prof Ben Fed of IITA By Kenan Kalagho)
Dr Mponda said most farmers cultivate these crops for sale and consumption and so it was important for the government to ensure that such crops are added value when exported on the world markets.
He said while Tanzania was amongst the African countries with a higher groundnuts export to the world market, it has not benefited much from the sales because they are of low quality.
"Our groundnuts were found to have the concentration of aflatoxins which are not good for business and that is why we are conducting research in the southern agriculture growth corridor in Dodoma and Manyoni regions with a view of coming up with the concentration of aflatoxin levels in the soil to such areas and see the measures on how to control the situation" Dr Mponda said.
He said research shows that about 18% of women and 20% of men who eat maize were found to be contaminated with aflatoxin which is bad for the health of human beings as it can lead to a retarded growth in children as well as cancer.
He said that these research projects that are being conducted in Tanzania and Kenya, including among other African countries, were aimed at reducing death to human beings and cancer related diseases which results from aflotoxin consumption while adding value to exported food products on the world market.
Dr. Ben Feed, Plant Pathologist and a researcher with the International Institute of Tropical Agriculture (IITA) said it was important that the country increases awareness about the mycotoxins poison that is emited from food products.
He said many people around the world and especially in the rural areas of Africa are not aware that they are being poisoned slowly whenever they eat food which carries mycotoxin fungus and that it was important to educate them that the highest concentration of these mycotoxins in their food was dangerous for their lives.
He said that if the biological solution to aflatoxins reduction in the soil succeeds it will give an added value assurance to farmers for their produce to expect more money if such produce reaches the world market, while at the same time protecting their health.
The Manager, Food Evaluation and Registration with the Tanzania Food and Drug Authority (TFDA) Dr Martin Kimanya said that they were concerned with the magnitude of mycotoxin in Tanzania and thus they were keenly collaboration with Tanzania Bureau of Standard (TBS) to know among others the concentration of aflatoxins to food products in the country.
Dr Kimanya however noted that it was hard to contain the problem as only products that were on trade had an access to be tested while leaving plenty of products in the rural areas prone aflatoxin contamination
He said that there was need for the government to educate the public so that they can be able to realize the magnitude of aflatoxin in the country in order to ensure that citizens were protected.
The mycotoxin and biocontrol of aflatoxin technology project which is co-funded by the Meridian Institute and USAID first developed in the United States before being spread to Africa. It is currently being done in Kenya, Tanzania, Malawi, Zambia, Senegal, Nigeria, Burkina Faso, Mali and Ghana.