Think tank mull over credit
supply
By Timothy Kitundu
The government has advised financial institutions in the country, especially
banks to proactively and innovatively look into the financing strategies that
will increase lending to the majority of Tanzanians, who are based in rural
areas and involved in small-scale activities.
It was also agreed during a recently convened meeting on the Excess Liquidity in
the banking Sector that financial institutions and the government commit
themselves in investigating innovative possibilities of increasing access to
credit, further a task force was formed towards that end.
In his remarks during the official launching of the Tanzania Banker’s
Association (TBA) Credit Information Bureau and Website, Finance Minister Basil
Mramba said that poor credit information, and as a result low credit provision,
has been a long outstanding issue that has contributed significantly to slowing
down the efficacy of the financial intermediation in Tanzania.
Reading the statement on his behalf at a ceremony held at the Royal Palm Hotel
early this month, Permanent Secretary in the Ministry Peniel Lyimo said that the
problem has also played a major role in stunting the growth of firms
particularly in the category of micro, small and medium sized enterprises.
“As some of you are aware, the financial sector reforms begun in 1991 after a
spate of high levels of non-performing loans – about 65 per cent of the entire
portfolio; amongst other policy issues which put the financial system into a
state of crisis,” he said.
He said, guided by the recommendations of the Nyirabu Commission of 1998, the
government embarked on a series of reforms intended to re-introduce stability
into the financial.
Adding that indeed, it was under this programme that the Banking and Financial
institutions Act of 1991 was enacted, allowing for the introduction of private
banks in the financial sector.
“As we reflect on the outcome of the first generation of financial sector
reforms we note that they were largely successful; however, the banking sector
remains challenged to broaden the coverage and depth of services offered,” he
stressed.
The Credit Information Bureau, he understands, is ultimately intended to result
in lowering the cost of credit, lowering lending rates and reducing borrowing
transaction costs which is not expected to undermine the profitability of banks
and financial institutions.
He further s aid that coupled with the government’s credit guarantee scheme
initiatives, which are also intended to help banks gain confidence in new
borrowers by sharing the potential credit risk in the event of default.
“It is our expectation that the production capabilities inherent in the
agricultural sector and small and medium sized enterprises will be unleashed –
thus our public-private partnership in tackling this challenge will help us
achieve a growing economy and a healthier banking industry,” he said.
Speaking earlier, Chairman of the TBA Mayank Malik said that for the first time,
banks would be able to extend their credit products based on an objective and
dynamic information system.
“We hope this will realistically increase the reach of our institutions lower
the overall cost of credit, eventually translating into lower lending rates and
reduced borrowing costs,” he said.
He said, the bureau has been set up and all banks participating in this bureau
will be able to access and share information relating to credit status of
customers in the data bank maintained at the TBA Secretariat through the web.
Sub-Saharan African poverty up
By Business Correspondent
Sub-Saharan Africa is the only region where the number of people living in
abject poverty has grown over the past 20 years, says a United Nations report.
The UNIDO report says those living in absolute poverty in the region rose by 42
per cent to 47 per cent from 1981 to 2001.
It says absolute poverty dropped from 40 per cent to 21 per cent in the world as
a whole.
The report says more foreign aid would help, but insists the best way to lift
countries in the region out of poverty is to develop trade and industry.
The UN has set itself eight Millennium Development Goals (MDGs), which it aims
to achieve by 2015.
They include: halving the number of people in absolute poverty - those earning
US$ one a day or less - compared with 1990; halving the proportion of people
suffering from hunger; establishing universal primary education and halting the
spread of HIV/AIDS.
But only a handful of more than 30 Sub-Saharan African nations were on track to
reach the goals, said the report, by the United Nations Industrial Development
Organisation (UNIDO).
Sub-Saharan Africa is the last frontier in the fight against abject poverty
Foreword, Industrial Development Report 2004, UNIDO. The targets will not be
reached by “the poorest countries... which are seriously off-track, unless the
international community and the countries themselves engage in significant
additional efforts”, says the report.
“Such a breakthrough cannot be expected to happen as a by-product of
development, since development is what is blocked to start with,” said the
report.
Investments get boost
By Timothy Kitundu
Globalisation has accelerated the flows of investments in developing countries
including Tanzania in extractive industries such as oil, gas and mining from US$
1.2 billion (Tsh. 1.32 trillion) worth in 1988 to US$ 5.7 billion (Tsh. 6.27
trillion).
In the last 20 years, more than 70 countries have strengthened legislation to
promote investment in extractive industries such as mining, gas and oil and that
foreign investment in these sectors is up sharply.
The Human Development Report (HDR) of 2004 indicates that investments in mining
exploration and development in Africa doubled between 1990 and 1997.
According to the report, because so many of the world’s untapped natural
resources are located in indigenous people’s territories, the global spread of
investments in mining and the survival of indigenous people are inextricably
linked.
“These trends have increased pressure on indigenous people’s territories,
resulting in forcible displacement in Colombia, Ghana, Guyana, Indonesia,
Malaysia, Peru and the Philippines,” read parts of the report.
If the current trends continue, most large mines may end up being on the
territory of indigenous people. Globalisation has also heightened demand for
knowledge as an economic resource.
The report says, indigenous people have a rich resource of traditional knowledge
about plants with medicinal value, food varieties that consumers demand and
other valuable knowledge. Entrepreneurs were quick to see the market potential
if they could patent and sell this knowledge.
“Developing countries seldom have the resources to challenge false patents in
foreign jurisdiction – indigenous people even less so,” the report stresses.
It further says that a March 2000 study concluded that 7,000 patents had been
granted for the unauthorized use of traditional knowledge or the
misappropriation of medicinal plants, but indigenous groups are increasingly
assertive.
In October 2003, the Constitutional Court of South Africa ruled that indigenous
people had both communal land ownership and mineral rights over their territory
and that attempts to dispossess them constituted racial discrimination.
Indigenous people now own or control more than 16 per cent of Australia, with
the Indigenous Land Corporation expected to be fully funded with a A$1.3 billion
capital base, to be used to purchase land for indigenous people unable to gain
ownership by other means.
East Africa fails to sign
genetic plan
By Business Correspondent
UGANDA, Kenya and Tanzania are among the countries that have not signed an
agreement to set up an international fund to support the conservation of plant
genetic resources for food and agriculture.
Only seven countries have signed the Global Crop Diversity Trust Establishment
Agreement from three of the five Food and Agriculture Organisation (FAO)
regions.
Cape Verde, Egypt, Jordan, Togo, Morocco, Syria and Samoa have signed, according
to FAO.
The Trust will become a legally independent organisation upon the signature of
the seventh member, as long as at least four are developing countries and
provided they are from at least five of the FAO regions.
The Trust will support the upgrading of important collections, help build the
capacity of countries to maintain them and will contribute to their maintenance.
Special product for SMEs
By Timothy Kitundu
In a bid to transform banking services in Tanzania, Barclays Bank Tanzania
Limited has introduced a new product going by the name of Business Solution,
with a range of quality services tailored to meet the needs of small and medium
size enterprises (SMEs).
The product, which was set up following extensive market research, enables the
bank to respond to customers’ business needs more effectively than ever before,
providing advice and support as well as benefits offered by industry-leading
products.
Rachel Mwalukasa, the bank’s Business Development Manager said in Dar es Salaam
last week that the product was aimed at entities that are in business by choice,
SMEs and businesses that want to grow.
“The product is also aimed at supporting businesses that are goal oriented,
passionate and are looking for stability and security,” she said.
According to Mwalukasa, as part of Business Solution Package, business customers
will have access to a number of services including a current account which
provides customers with the option to choose between different tariff packages,
so they can match day-to-day banking requirements to their own payment plans.
The others include: free telephone banking which will provide customers with
convenient access to their accounts, savings account which has no charges and
business club which is a specialist support service network to help customers’
businesses a success.
The other equally beneficial service is loans, which have a simple and fast
application process, enabling customers to borrow money unsecured. “The
unsecured loans are offered to the tune of up to Tsh. six million and are
insured at a premium of two per cent,” she said.
The product, according to Mwalukasa, will also support customers engaged in
international trade. She said, business exporting and importing for the first
time often perceive that the challenges they face in the world of international
trade are more daunting than those they experience in the home market.
She said, with Barclays help, it could be an environment in which a customer
feels more at ease, as there are a range of products and services designed to be
of help. She mentioned them as letters of credit and guarantees with all matters
pertaining to international trade being taken care of.
“To provide our customers with ongoing support each one of them will be assigned
a dedicated Barclays Business team at no additional cost. They will always be on
hand to help you with your day–to-day banking.
Top accolade for CRDB
By Business Correspondent
CRDB Bank has received the Euromoney’s Excellence Award as the best bank in
Tanzania for the year 2004.
CRDB Bank Managing Director, Dr. Charles Kimei told a news conference in the
City on Tuesday that the award was presented to him during a ceremony held at
the Natural History Museum in London, last Thursday.
He said it is the first time in the country’s banking history that a local bank
has won this prestigious award from a globally recognised capital and money
market publication.
Euromoney magazine is an authoritative publication and has for the last 15 years
been nominating banks providing excellent services on national, regional and
global categories.
Dr. Kimei said the criteria used in the assessment of the bank’s performance
included growth of assets and deposits, where over the past five years assets
grew at an average of 30 per cent annually, while deposits at 33 per cent.
This is indeed meteoric growth, which implies that the bank’s assets doubled
after every three years. It should also be noted that country’s financial sector
is currently growing at an annual rate of 17 per cent.
In fact CRDB over-scored as far as this criterion is concerned, Dr. Kimei said
and further boasted of the bank’s unbeatable branch and what he described as
“electronic” network in the country which was another criterion used in
Euromoney’s assessment.
CRDB has 31 branches, but its services can be accessed electronically by the
TemboCard through ATMs (Automated Teller Machines) at over 500 points of sale
across the country.
CRDB now operating under the “one branch concept” for it does not matter whether
the client is in Dar es Salaam or Kiwira Ward in Rungwe District, Mbeya Region.
CRDB is one of the six big banks in the country, where NBC Ltd. leads followed
by Standard Chartered Bank. CRDB’s position fluctuated between third and fourth
position in terms of profit making and assets based.
Ban on export of scrap metal
likely
By Angela Mazula
The government may introduce a total ban on the export of scrap metal due to
various violations by dealers.
The Minister for Trade and Industries Dr. Juma Ngasongwa made the disclosure in
Parliament when presenting an estimate of the recurrent and development
expenditures for his Ministry.
The Minister said there have been reports that some business ventures contravene
a government order issued in May this year outlawing the export of certain types
of metal scrap metal-iron, steel, aluminium and brass.
“We have received complaints from the same steel industries that the same
business people are deifying the order, there are also complaints that there is
an increase in the theft of manholes, railways slipper and telephone wires that
are later sold a scrap.
“We are telling the Tanzania Revenue Authority (TRA) not to allow the export of
scrap of metal without a document signed by the committee on scrap metal, the
Confederation of Trade and Industries (CTI) and at least two signatures from
iron smelting fabrics” said Ngasongwa.
He informed the House that his Ministry has sourced an expert who will research
on how best to trade in metal scrap.
In his speech the Minister said last year, Tanzania exported more to the United
States under the African Growth Opportunity Act (AGOA).
He said it sold textiles and other goods worth US$ 1.1 compared to US$ 638,000
the year before.
Fuel prices spiral
By Business Correspondent
Although testing of flow meter gadgets began today at Kurasini Oil Jetty (KOJ)
that is not enough to end speculation on fuel prices in Dar es Salaam.
Fuel prices at many filling stations in Dar es Salaam has gone up slightly since
last Wednesday when the government assured citizens that there is ample stock to
oversee the installation period.
Pump prices of petrol were quoted at between Tsh. 890 and Tsh. 925, and diesel
gas oil stood at between Tsh. 780 and Tsh. 850 per litre in many parts of the
city up to yesterday.
Motorists and filling station attendants told the The Express that the prices
had inched up at between Tsh. 20 and Tsh. 30 at many filling stations.
The Express survey shows that many filling stations, which has-no-names along
Dar-Morogoro highway experience the commodity scarcity. These stations normally
quote cheap prices.
The pump prices raise is not pegged directly to the world market prices but
rather to the installation of the flow meter at KOJ where no off-loading was
permitted due to safe measure.
There had been speculation on shortage of fuel since the government’s
announcement last week and the closure of KOJ, following installation of oil
flow meters to check cheating by importers of the commodity.
However, the acting Director-General of the Tanzania Harbours Authority (THA),
Peter Mtandu, was quoted saying that installation of the flow meters was
expected to complete this Wednesday.
He added that three oil tankers, with a total of 84,000 tonnes of oil products,
would start discharging at the KOJ today (Thursday).
The government said the closure of the KOJ was undertaken after full
consultation with all stakeholders, including oil company representatives to fix
a convenient window without jeopardising supply of oil products in the country.
The project consisted of two components with the first component involving
supply of flow meters including software which was contracted to M/s Solutions
of the United States at a contract price of US$ 1.2 million (Tsh. 1.2 bn).
Land earmarked
for investment
By Business Correspondent
The Tanzania Investment Centre (TIC) predicts to double the rate of investment
to Growth Domestic Product (GDP) to 40 per cent in the next three years.
This, however, may be possible if the nation managed to market 3.5 million
hectares under TIC Land Bank scheme. The land is suitable for various economic
investments—especially commercial farming.
Studies have already established 2.5 million hectares and land verification
status have been conducted and concluded that the land is suitable for various
investments.
The Director of Investment at the Tanzania Investment Centre (TIC), Emmanuel Ole
Naiko, told this reporter that the bulk of 2.5 million hectares, out of 3.5
million hectares, have been verified and is suitable for agriculture.
Ole Naiko said the first phase of earmarking and verifying the land has been
concluded and “the report (about land verification) will be public in less than
two months.”
After being in the business in wooing investors for the past seven years, TIC
realised one of the critical importance issue to start business is acquisition
of land. Thus drove them, in cooperation with regional authority to identified
idle land—being it in government possession or assigned to any individual—and
put under TIC Bank Land scheme.
“Under land bank, (if any investor what to invest and offer specifications
matched with the certain land), we (TIC) get in touch with the concern
authorities to see if such land is available and allocated to the said
investor,” Ole Naiko said.
Under Tanzanian law, land is released under the Right of Occupancy and Customary
Right. Under both rights the tenant is allowed to sub-lease the land—the
sub-lease is known as Derivative Title.
The new Act enables TIC to establish a land bank and TIC will provide management
and services to both local and foreign investors in administration of land.
TIC has already issued six Derivative title one of which has been issued to the
new Kilimanjaro Hotel expected to be opened in September this year after being
refurbished.
Three best regions, which are suitable for farming are Tanga, Coast and Iringa;
ranching Kagera, Tanga and Dodoma.
GM foods needed to tackle
food shortage
By Timothy Kitundu
Unless the food situation in Tanzania improves consistently, there is a
possibility of the country being forced to accept Genetically Modified (GM) food
to offset the gap created by the deaths of over seven million African farmers
due to HIV/AIDS, putting tremendous pressure on agricultural production.
According to a communiqué availed to The Express yesterday by the Economic
Journalists Editors Network mailed by Patrick Cairns four African biotech
organizations have quoted the Food and Agricultural Organization (FAO) as
stating that 25 African countries were facing food emergencies.
Kenya’s President Mwai Kibaki, had declared famine in the country a national
disaster while in Angola, 1.9 million people were in dire need of food
assistance. In Sudan, over one million people are at an imminent risk of life
and livelihood.
The four organizations said they agreed to the principle that African countries
have a right to choose between GM and non-GM food, “however, as Africans, we
know that this right to choose is often an academic discourse in the face of
hunger. We also believe in the sovereignty of our nations but believe that human
life is more precious than any nation”.
The statement said that although Africa’s agricultural revival requires
technology, “technology alone will not do, hence our support for good
governance, better funding for agriculture, micro-finance for small-scale
farmers, human and infrastructure capacity building”.
The biotech organizations said the argument that donors should give money
whenever there is a food crisis is flawed. They said the US – the world’s
largest food donor – gave food while “Japan, Norway and the European Union opt
to provide most of their aid in cash, because unlike the US, they do not produce
in excess, the food required by the recipient countries”.
The statement also said that the assumption that non-GM food could be sourced
locally or regionally was wrong. “If this food was available in the needy
countries, even in small quantities, it would be very, very expensive. The
reality is that the countries facing famine have no food at all”.
They gave the example where Angola imported 217,000 tonnes of food last year,
but after the countries refusal of GM food, the WFP was only able to source
17,250 tonnes of non-GM food, “a drop in the ocean with an environment of great
need”.
The four organizations called on African and political leaders “to provide
string leadership and direction” with regard to GM food aid. They said the need
for food assistance should be viewed as temporary.
“And through pan-Africa organizations such as the New Partnership for Africa’s
Development (NEPAD) and the Forum for Agricultural Research in Africa (FARA),
long-term strategies for food security be put in place”.
In Africa, over 28.5 million people are living with HIV, food aid is a matter of
life and death; of the top 10 threats to public health, mal-nutrition is number
one and over seven million African farmers have died from AIDS, putting
tremendous pressure on agricultural production.
Barclays’ eagle has landed
By Business Correspondent
Barclays Bank Tanzania has had to re-look its approach to brand building and
create a simpler modern version of the eagle that represents traditional values.
The bank’s name will be pointed in light blue engulfed by deep-blue colour and
the eagle unfolded on the right side of the Barclays. Previously, the eagle was
folded on the rounded glass and the banner was engulfed with white paint.
This is the third time Barclays has changed its brand commercial in Africa. The
last time was five years ago. Barclays is 300 years and a number of logo-changes
have been done worldwide.
Barclays’ Public Relation Manager, Cesear Mloka, said: “the vision of the
campaign was for customers to experience and identify with the refreshed
Barclays brand and what it stands for.”
“A strong brand is most valuable assets of any company,” Barclays Managing
Director, Karl Stumke said. Adding “ The Barclays brand is built from the
customers’ entire experience with the company.”
He went on saying “Barclays needs a brand that stands apart from the competition
so that it is seen as a world-class organisation on which customers can depend.”
The bank posted a tremendously net profit of Tsh. 1.04 billion in the quarter
ended March this year compared to Tsh. 194 million of last year’s fourth
quarter.
The bank’s assets grew from Tsh. 180.52 billion in December 2003 to Tsh. 199.11
billion in March this year.
Barclays January this year opened its fourth branch in the Island of Zanzibar.
The Island is one of Tanzania’s and the world’s leading tourist destination.
Thus bring the branches to four since October 2002.
Barclays has been operating in Tanzania since 1967 when it was rationalised. In
Africa the bank has for over 100 years been providing banking services to
personal and corporate customers across 11 countries—Botswana, Egypt, Ghana,
Kenya, Mauritius, Seychelles, South Africa, Tanzania, Uganda, Zambia and
Zimbabwe.
Phoenix opens branches in
Mbeya, Arusha
By Issa Abdul
In an effort to expand its services, insurance firm Phoenix of Tanzania
Assurance Co. Ltd. based in Dar es Salaam is planning to open branches in Mbeya
and Arusha.
The General Manager for the insurance firm Surbash Wadhawan told The Express in
Dar es Salaam that the process of opening branches within those two regions were
in the last stage.
He said the board of directors had already approved the process of opening the
branches, which he said would expand insurance business, and give employment
opportunities.
Apart from the establishment of branches in Mbeya and Arusha, Wadhawan also said
that his firm was in strategies to introduce animal cattle insurace.
Briefing on development of his firm, Wadhawan said his company had been doing
better since it started insurance services in Tanzania.
According to Wadhawan his company had managed to capture 13.5 per cent of the
market within three years.
“As per all indications, our market share in Tanzania has further increased to
approximately 15 per cent in the year 2003, being a roughly estimations as
figures from other companies are not yet known. This is basically due to the
confidence that insuring public have in us and we have been able to win them,”
he said.
SSA behind the rest of Africa
By Timothy Kitundu
Sub-Saharan Africa (SSA) including Tanzania is the only region in the world
where extreme poverty has been spreading steadily for the last 20 years, while
most other developing regions, particularly East Asia, have made great strides
towards poverty reduction.
Economic decline in SSA has to be arrested and reversed if the Millennium
Development Goals (MDGs) goals are going to be achieved in the region by 2015.
This makes SSA the development challenge of the 21st century.
The United Nations Industrial Development Organisation (UNIDO’s) Industrial
Development Report 2004 (IDR 2004), released on 20 July 2004, drives home the
sheer size of the challenge. For poverty to be halved in most SSA countries by
2015, per capita incomes must grow at four or five per cent annually.
This is with the assumption that the income distribution doesn’t change, with
the greatest effort in the region’s landlocked and resource-poor economies.
“It should be noted that these estimates are sensitive to changes in inequality
and could be lower if Sub-Saharan African countries can manage to implement
policies that encourage growth while also reducing income inequality,” reads
part of the report.
There have been some success stories in SSA, but for the most part these are
atypical cases like Mauritius and, more recently, Lesotho, that have achieved
breakthroughs by exporting clothing to markets where they have preferential
entry thanks to the US’s AGOA and EU’s EBA initiatives.
Attaining the MDGs in SSA means reaching basic thresholds in such areas as
health, nutrition, education, gender equality, infrastructure provision and
environmental sustainability.
These, says UNIDO, are necessary to set sustained economic growth in motion. For
example, achieving the goals relating to health and basic education can directly
contribute as much as 1.6 percentage points to growth in SSA.
However, sustained productivity growth, the main source of long-term economic
development, will not result automatically from progress towards achieving the
MDGs.
Aga Khan Career Guidance Fair
tomorrow
By Kizito Makoye
The Aga Khan Mzizima Secondary School has organized an exhibition known as
Career Guidance Fair in a bid to raise awareness of various stakeholders on
several career options and enrolment opportunities in educational institutions.
The school’s Career Guidance Counsellor Pragati Pandey told The Express in an
exclusive interview that the event would take place on Friday and Saturday. It
will widen the knowledge scope of many youngsters in the country in their
pursuit of appropriate careers and the information obtained will lay as a ground
for many important decisions in their lives.
“We have realized that most youngsters do not think that a career is important
to their lives…we hope that the Career Guidance Fair will get students to
interact with real people and professionals,” she said.
She said the event would cover around two hundred careers and university
information.
A statement signed by the school’s headmaster, Theo D’Souza said a total of 20
seminars will be conducted by experts form the specialised fields such as
insurance, information technology, defence forces, medicine and graphic design.
“It is to make people realize that in today’s age we have a variety of
occupations in front of us but we need to make the right choice so that our job
becomes a passion for us rather than a burden we are forced to carry for the
major part of our lives,” the statement reads in part.
A total of 21 institutions including the University of Dar es Salaam, Australian
Studies Institute and Institute of Journalism and Mass Communications will
participate.
EC to slash sugar subsidies
By Angela Mazula
The European Commission has agreed to reduce subsidies for sugar as a radical
overhaul, while maintaining substantial benefits for countries like Tanzania.
According to the press statement that came out this week from the European
Commission, currently EU sugar regime has come under fierce criticism for
misallocating resource, hampering competition, hampering developing countries
and giving consumers, taxpayers and environment of the deal.
The statement said the Commission has proposed to substantially cut back sugar
export and export refunds, abolish intervention, reduce EU production and
internal sugar price and grant a de-couple payment to sugar beet farmers.
Franz Fischler, EU Agriculture Commission said “this reform gives the EU sugar
sector and development countries a realistic perspective, our consumer will see
much more market orientation, development countries much less trade
distortions.”
Fischler said Common European market in the sugar sector was fair to ensure
income to EU producer and self-sufficiency within the EU market since it has
received very few and it is the only sector that stay out for Common Agriculture
Policy (CAP) reform process.
EU Agriculture Commission added that EU plans action for ACP countries, which
will get a clear perspective, keep their import preferences and retain an
attractive export market.
Welcome Tax introduced for
small businesses
By Rutami
Cylidion, Bukoba
The Tanzania Revenue Authority (TRA) in Kagera Region has declared that
businesses with capital below Tsh. 40 million will be exempted from the Value
Added Tax (VAT) and instead will start paying new rates known as Welcome Tax.
This was revealed by TRA Manager for Kagera Region, Julius Sasawanga, at a
one-day seminar, which brought together business people from all over Kagera
Region, to inform them of the new changes made by TRA nationally, together with
reminding them of their duty to pay tax.
The seminar was held last week in the Town Council Hall in Bukoba town.
The TRA manager said effective July, 2004, under the new arrangement, businesses
with capital below Tsh. three million will pay a tax of Tsh. 35,000, while those
with capital below Tsh. seven million will pay Tsh. 95,000 every year. Those
with capital below Tsh. 14 million will pay Tsh. 124,000 as tax, while those
with capital under Tsh. 40 million will now pay Tsh. 589,000 as tax per year.
These new rates are for business people whose accounts books are improperly
kept, while for those who keep their accounts books properly, the tax rates are
lower.
Sasawanga advised business persons to maintain their accounts properly so that
they pay less tax. He added that the procedure for obtaining new car and
motor-cycle numbers or ordering them from outside Tanzania, had also changed.
Speaking to The Express after the seminar, the business community expressed its
appreciation while congratulating the government for removing VAT, which they
said was an irritant for them.
Edmund Fokas, a businessman from Hamgembe said, the decision indicated how much
the government valued business people, who are their sources for revenue
collection.
Women trained in handicrafts
under anti-poverty drive
By Merline Mhamaka, Morogoro
A total of 50 women from 25 groups dealing with handicrafts in the districts of
Morogoro Urban, Morogoro Rural, Mvomero, Kilosa and Kilombero, have been given
training in batik and tie & dye, for economic self empowerment.
Speaking to this reporter last week, Mhagama of Upendo Handicrafts said the
training started in June this year with Kilombero district, and it will end with
Mvomero district.
She said the training incorporated women from various arts groups, which deal
with handicrafts such as plaiting, weaving, pottery and batik making.
The training, she added, had been supported by the National Cultural Fund, and
the women have also been trained in how to secure markets, design colours theory
and practice, HIV/AIDS and copy-right issues.
The training was conducted by tutors from Upendo Handicrafts Training Centre,
district cultural officers and social development workers with the aim of
helping women to eradicate poverty in their midst.
Mvomero District Community Development Officer, Frida Mwansasu said the training
had women from various groups in the district, and two women were chosen from
each group to attend this training.
She observed that if the women use their skills well, for the benefit of fellow
women in their areas, they can help lift the economic status of their community
and the nation as well.
Poor marketing hinders sale
of local products
By Sebastian Gabunga, Mwanza
The Minister for Cooperatives and Marketing, George Kahama, has said poor
marketing infrastructure and capital crunch are responsible for lack of market
for local products.
Kahama said this when opening a workshop for promoting trade of agricultural
products between Tanzania and Uganda under the East African Community (EAC)
Common Customs Union Protocol.
The workshop attended by government administrators and various executive
officers of the government from regions of the Lake Zone, was held at the Bank
of Tanzania Institute Hall in Mwanza City.
Another reason for the lack of market for local products, Kahama observed, are
the regulations governing the purchase of crops, which are not in tune with the
global economic system.
According to the minister, many local producers, especially those of
agricultural goods, continue producing goods without considering market needs,
especially the quality of their products.
As a result, he said, Tanzanian commodities fail to compete with those from
other countries.
Despite the problems, he observed, still agriculture is the backbone of
Tanzania’s economy and will continue to employ a big percentage of Tanzanians,
especially those living in rural areas.
Tanzania, Kenya and Uganda decided to form the East African Community (EAC) for
the purpose of strengthening trade relations among them, and elevate internal
and external marketing.
To fulfill this objective, heads of the EAC signed a protocol to establish the
East African Community Customs Unions, which among other things, specifies
various items, including modalities of abolishing internal custom duties and
introducing a common custom duty for commodities from outside EAC member states.
The protocol states further that when the protocol will come into action,
commodities in Tanzania and Uganda will not be charged custom duties, if the
products have been generated in the two countries.
The workshop was very important, Minister Kahama said, as it aimed to outline
the trade opportunities between Tanzania and Uganda and motivate stakeholders,
especially those from the regions of Kagera, Mara, Mwanza, and Shinyanga, to
produce quality commercial products that will find markets in Uganda.
Msekwa will be chief guest at
8-8 celebrations
By Merline Mhamaka, Morogoro
The Speaker of Tanzanian Parliament, Pius Msekwa, is scheduled to be the Guest
of Honour at the official opening of 8-8 Farmers Exhibition, Eastern Zone, which
will be held on August 1, 2004, in Morogoro Region.
The announcement was made by Morogoro Regional Commissioner (RC), Stephen
Mashishanga, who also is Chairman, at the preparatory sitting for the Eastern
Zone 8-8 Farmers Celebrations, held at Mwalimu Nyerere Grounds in Morogoro.
During the preparatory sitting, the RC said preparations were in full swing and
work on permanent pavilions was going on well. Efforts are being made to make
the grounds worthy of national status.
Mashishanga said before cutting the ribbon to officially open the exhibition,
the Parliament Speaker will tour some of the pavilions to see business
activities conducted by farmers and livestock keepers from Eastern Zone regions.
Meanwhile, Dar es Salaam Regional Commissioner, Yusuph Makamba has directed
participants at the exhibition to pay their fees before the exhibition starts,
to ensure the event is a success.
Mwalimu Julius Nyerere Grounds were chosen for national exhibitions from May
this year, and all national celebrations will be held on the Grounds from now
on.
Sales fund to boost exports
By Heri Said Kilongo, Kongwa
The government has established a sales fund known as Foreign National Sales Fund
to facilitate the export of local crops and to boost the agricultural sector
overall.
Premier Fredrick Sumaye revealed this in his public address after laying the
foundation stone for an international maize market at Kibaigwa in Kongwa
District.
Sumaye said the government decided to set up the fund to improve the investment
environment and raise income of farmers and business people.
The Fund, he said, which is under the Bank of Tanzania (BOT), provides an
opportunity for business people dealing with sales of crops outside the country,
to be able to get loans that will solve their problem of capital crunch.
Commenting on the international maize market, the Premier said, the market will
help the supply of maize that adhere international standards.
“This market is unique in the East African Community and the South African
Development Community, as it is the first one built after the signing of
commercial agreements with our fellow countries concerning the matter,” Sumaye
explained.
Minister for Cooperatives and Marketing George Kahama said, statistics indicate
that after Tanzania had allowed sale of maize in border regions, the amount of
maize sold shot up.
The amount increased from 80,018 tonnes in 2001/02 to 135,885 tonnes in 2002/03,
ten times in a period of six months for the 2002/03 season.
A big amount of the maize, Kahama said, was sold in the neighbouring countries
of Malawi and Zambia and that all the maize was produced in regions of the
Central Zone and Northern Zone of Tanzania.
The construction of the international maize market, which is expected to be
completed by December this year, will cost Tsh. 1.3 billion.
VP invites investors to
Dodoma
By Emmanuel Lazaro, Dodoma
Vice President, Dr. Ali Mohamed Shein has called for concerted efforts to see to
it that hotel services in Dodoma municipality are expanded and strengthened.
The Vice President made the call Friday last week, when he inaugurated the New
Dodoma Hotel (formerly Dodoma Hotel) after it was sold to an investor and
rehabilitated.
Shein said Dodoma Municipality is definitely expanding and with various
businesses proliferating, many people are attracted to Dodoma. Therefore, the
Municipal needs to have good and modern services, especially hotels, he
stressed.
He called on more investors to invest in the hotel industry in Dodoma
Municipality, which is the designated capital of Tanzania.
He promised the government will continue providing conducive environment to
attract and help investors, who want to invest in Dodoma.
Speaking on the New Dodoma Hotel’s achievements, the Vice President said the
hotel is now paying Value Added Tax (VAT) of between Tsh. 90-100 million a year.
Before privatisation, the government was getting nothing in taxes from the
former Dodoma Hotel, which usually ended in receiving an average of one customer
a day.
The Director General of Estate Trading Company Limited, which has invested in
New Dodoma Hotel, Rustan Merali, said Tsh. two billion was spent in
rehabilitating the hotel, raising it to its present status.
The hotel with 92 rooms was built by colonialists, who were constructing the
Central Railways Line in 1904 and that a large part of the hotel building,
including equipment, was worn out before privatisation.
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