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.