Mwanga Bank doubles capital
base
By Abduel Kenge
Mwanga Rural Community Bank has consolidated its presence by doubling its
capital base only four years since its inception.
The bank‘s total capital reached Tsh.186 million in August this year from Tsh.
80 million paid up in 2000.
The capital increase, according to MRCB report, is attributed to, among other
things, paid-up equity, convertible bond for ‘tier two capital’ and profit.
Following this achievement, “the bank is in a strong position and is able to pay
(the first) dividends for 2004” since it was established, the report says.
However, the report recommends that to maximise further growth a careful
approach is needed to render reliable and quality customer services.
The report says as of July this year, the bank, which was the first rural
community financial institution in the country, had a positive outlook after
generating before tax profit of Tsh.52 million compared with the targeted Tsh.
26.6 million.
The bank managed to mobilise 3,060 saving and deposit accounts by July this
year and its loan portfolio increased to 290.3 million, up from Tsh. 231.7
million of 2003.
On the other hand, the bank’s non-performing loans totalled Tsh.19.8 million, in
less than 30 days.
Tanzania Gatsby Trust and Mwanga Pare Community Development Trust Fund together
own 40 per cent stake in MRCB with individual members of the community owning
the rest. The bank shares are sold at Tsh.5,000 and there is no limit as the
bank is still broadening its capital base.
The bank officially inaugurated by President Benjamin Mkapa on October 21,
2001, has failed to extend loans to farmers due to technical considerations
affecting the entire banking system in the country.
SA donates 35m/- to local
charities
By Leonard Magomba
The South African Business Forum of Tanzania in collaboration with the South
African High Commission has organised a one-week programme to raise funds to
support local charity organisations.
The South African community in Dar es Saalam has donated the Tsh. 35 million
raised last year to seven charity organisations in different parts of the
country.
Sindiso Mfenyana, South African High Commissioner to Tanzania, last week said,
“I anticipate more money under the people to people relations between my country
and Tanzania.”
Mfenyana has namely the beneficiaries, mostly charities dealing with children,
women and health as Katunguru Women Development Group in Kagera Region, Tanzania
Cheshire Homes in Dar es Salaam and St. Moses Nursery School in Dar es Salaam.
Others are Masasi District Council in Mtwara region, Mgolole Convent in
Mororgoro, Side by Side, and Dogodogo Centre both in Dar es Salaam. The money
was raised during last year’s South Africa Week.
The High Commissioner Mfenyana launched this year’s South Africa Week. The
21-day event started on September 11 and will end on October 2. It will feature
three major events.
The main sponsor, Stanbic Bank Tanzania Ltd will tee off the week with their
golf tournament at the Gymkhana Club starting Saturday.
Next Saturday will be a family day at the Royal Palm Hotel. Many prizes can be
won at this fun event for the whole family, where a South African artiste will
entertain the crowds. The event will sponsored by the South Africa Airways,
Celtel and Air Tanzania.
The Night of the Races would be held on October 2, also at the Royal Palm Hotel.
It will mark the climax.
Overloading on trunk roads
reduced to 6%
By Timothy Kitundu
The Tanzania National Roads Agency (TANROADS) has cited as significant
achievement the management of the trunk and regional road network, which has
resulted in an improvement of the condition of road network from approximately
50 per cent poor in 2000 to under 25 per cent poor by June 2004.
TANROADS Chief Executive Officer, Dr. Fred Yaw Addo-Abedi said in Dar es Salaam
that overloading on trunk roads, which is among the biggest problems for any
road network, was reduced from 40 per cent to under six per cent by the end of
2004 in terms of the number of vehicles weighed.
“Road maintenance and bridge maintenance systems established for rationally
determining the network needs have been developed,” he added.
Other achievements, according to Dr.Addo-Abedi, are that a total of 815 km of
the road network is under rehabilitation, reconstruction or upgrading to
bituminous standards with financial assistance from African Development Bank
(ADB), EU, NORAD and other development partners.
He said, approximately 1,200 km of roads were under study for future
rehabilitation or upgrading programmes by June 2004, whereas in the financial
year 2004/2005, another 1,400 km will be studied.
“As for bridges, he explained, 23 bridges and drainage structures were
rehabilitated under the World Bank financed Bridge Rehabilitation Project, and
that negotiations with IDA for the Central Corridor Transport Project were
concluded in March 2004 and approved by the Board in April 2004.”
However, the CEO cited a number of challenges facing the Agency, including
inadequacy of funds for rehabilitation and upgrading of the road network to meet
the challenges whereby maintenance funds account for only 50 per cent real
needs.
The other challenges, according to him, include partial understanding by the
public of the axle load and control; road reserve clearance continues to attract
a number of legal suits and local contracting and consulting capacity
constraints Agency operations.
TANROADS is responsible for a total of 28,891 km of road network in Tanzania,
out of which 9,934 are trunk roads and 18,957 km are regional roads. Out of the
total network bituminous surfaced length cover 4,241 km out of which 3,913 km
are trunk roads and 327 km are regional roads.
Credit purchase scheme boosts
sales
By Joshua Mshana
PEOPLE who want to buy electronic equipment and have little money, can get them
by buying them in instalments and those who have cash can get discount.
Karim Shariff, Manager of Home Centre, an electronic equipment dealer firm, said
this in an interview in the City recently.
“We can sell by credit. A person can pay in instalments, but in three months
they are supposed to complete their payments. When a customer comes with cash
they can get a discount. The firm also offers advise to customers on the right
type of equipment. We help them choose the one that will suit their needs,” he
explained.
The firm is a wholesaler for all kinds of fans, washing machines, water
dispenser puller, meat sewing machines and machines for drying breads.
The firm has managed to attract more customers after introducing the system of
paying in instalments.
Roads to use 210bn/-
By Timothy Kitundu
During the financial year 2004/05, the Tanzania National Roads Agency (TANROADS)
proposes to spend a total of Tsh.210.5 billion to finance its operations
comprising roads maintenance and development activities, administration and
overheads, institutional support and capital investment.
Elizabeth Bwire, the Director of Finance for the Agency, told a media workshop
in Dare es Salaam early this week that Tsh.51.4 billion will be spent on road
maintenance; Tsh.145.3 billion on road development; whereas Tsh.13.4 billion
will go to administration overheads and Tsh.0.4 billion to capital investments.
“Maintenance and development expenditure constitute 24.4 and 69 per cent,
respectively, of the total expenditure, while the proportions of expenditure on
administration and overhead costs constitute 6.4 per cent. Capital investment
will be 0.2 per cent,” she said.
Bwire added that Tsh.45.8 billion will come from Roads Fund, while Consolidated
Budget will provide Tsh.39 billion. Development Partners will provide the
largest chunk of Tsh.124.2 billion and the Miscellaneous income will account for
Tsh.1.5 billion.
Percentage wise, according to her, the agency’s sources of funds are: Roads Fund
(21.8 per cent), Consolidated Fund (18.5 per cent), Development Partners (59 per
cent) and other miscellaneous income (0.7 per cent).
During 2003/04, the Agency managed a total of Tsh.124.1 billion that included
Tsh.67 billion paid through the Agency books and Tsh.57.1 billion paid directly
to the contractors and consultants by development partners.
According to her, the source of income for 2003/04 was Tsh.40.2 billion from
Roads Fund, Tsh.17.2 billion from Consolidated Budget, Tsh.65.2 billion from
Development Partners and Tsh.1.7 billion from Miscellaneous Income.
In terms of expenditure for the period under review, she said, a total of
Tsh.38.2 billion was spent on Road Maintenance, Tsh.70.4 billion on Road
Development, Tsh.10.6 billion on Administration and Overheads while Tsh.0.5
billion was spent on capital investment.
Plans for 2004/05, according to Bwire, include implementing the Private Sector
Participation (PSP) in line with the Public Service Reform Programme (PSRP)
management in delivery of services.
Karume wants Indian help to
modernise fishing industry
By Business Correspondent
Zanzibar President Amani Abeid Karume has sought India’s support to revamp
fishing industry by constructing modern fishing facilities in the Isles.
President Karume, who is also the Chairman of The Revolution Council, made the
request to his Indian counterpart Dr. Abdul Kalam during the latter’s trip to
Zanzibar last week.
Karume said the idea was to help small and medium scale fishermen to obtain
advanced technology and improve production.
He observed that buying inputs was very expensive for the majority of fishermen
in Zanzibar.
Karume requested India to assist the Isles to establish a fishing school, which
would enable fishermen get modern skills and technology on fishing activities.
Dr. Kalam donated five computers and accessories to President Karume. He said he
hoped his visit would strengthen the mutual friendship between the two nations.
The nuclear scientist-turned-president left the country Tuesday.
Tanzania has two types of fishing areas: territorial waters, where most of the
fishing done involves prawn fishing inside the 12nm and Exclusive Economic Zone
(EEZ) deep water fishing, where there is no fishing limitation.
Tanzania controls EEZ—shelf area of 243,442 (50,339) square kilometres, which
has not been significantly exploited. This indicates existence of potential for
increased landings of fish such as tuna and similar fish species once the
government gives a nod for exporting.
Holistic approach to forestry
projects
By Laurent Susuma
The government has introduced a sector wide approach (SWAP) system to improve
effectiveness and increase sectoral self-financing to support implementation of
National Forest and Beekeeping Programmes, it has been learnt.
Solomon Odunga, Permanent Secretary in the Ministry of Natural Resources and
Tourism, said in Dar es Salaam this week that SWAP was one of the way of doing
away with single project implementation.
“This option will create ownership and opportunity for mainstream implementation
of the programmes,” said Odunga.
He outlined the main areas identified in the programmes as forest resources and
management, institutions and human resources as well legal and regulatory
framework and beekeeping development respectively.
Three sites chosen for eco
tourism
By Business Reporter
As an initiative under the New Partnership for African Development (NEPAD), the
government has picked Kilwa Masoko, Mafia Island and Tanga Municipality as
potential sites for demonstration and promotion of eco tourism.
Following the initiative, the focus would be on developing guidelines for
coastal tourism development, development of a comprehensive tourism management
plan, training in the fields of hospitality and tourism and the improvement of
investment climate for private developers.
This was revealed during a one-day Coastal Tourism stakeholder’s workshop by an
official from the Vice-President’s Office, Idelfonce Masekesa, who said, “the
initiative will take in to consideration environmental, economic, social and
cultural aspects.”
The three areas, according to Masekesa, have an abundance of natural tourist
attractions, among others, sand beaches, diverse flora and fauna, mangrove
forests, cultural attractions, which include monuments and life styles.
However, Masekesa said some of these areas were facing problems of
accommodation and infrastructure such as roads. A good example is Kilwa Masoko,
which is a world heritage site facing an acute problem of accommodation,
although developers were showing strong interest.
However, improvement plans were now in place whereby flights from Dar es Salaam
and charter planes from Selous to Mafia Island were available, according to
Masekesa, who said, what was needed was the improvement of road and river links
to Selous and ferry or air links with Mafia Island.
As for Mafia Island, he said, the island has a marine park with reefs for
diving, beaches, exotic wildlife, including the Comoros Fruit bats, dugongs,
historical sites and is proposed to be a world heritage and Biosphere Reserve.
Apart from the necessary developments, he added, there was need to harmonise
investment in infrastructure, improve accommodation and develop tourism
management plan focusing on entire island, including Marine Park and the need to
synchronise flight schedules to facilitate smooth connections.
As for Tanga municipality, according to Masekesa, the area has attractive sand
beaches, well-preserved mangrove forests and coral reefs, and the access is
fairly good. He said the area could be linked to Mombasa, Pangani and the Amboni
caves.
Isles meet revenue targets
By Business Correspondent
Zanzibar’s total revenue collection in June this year amounted to Tsh 4.1
billion as projected.
The Tanzania Revenue Authority (TRA) in the Isles managed to meet its projection
for the first time in more than a year.
According to the Bank of Tanzania Monthly Economic Review for the June-July this
year, the good performance was attributed to collections of import and income
taxes, which exceeded targets. However, VAT on local goods was below target.
TRA managed to collect Tsh.1.39 billion from imports as of end June compared to
Tsh.1.20 billion projected. As for income tax, the Authority collected Tsh.
896.4 million against Tsh.810 million targeted.
But the Authority missed its target on VAT and excise duties — on local goods —
after collecting Tsh. 770.5 million against Tsh.990 million projected in June
this year.
On cumulative basis, TRA failed to meet its forecast for the 2003/04 after
collecting 81.1 per cent, equivalent to Tsh.51 billion, of the annual target of
Tsh. 62.9 billion.
On the other hand, expenditure for the twin islands of Unguja and Pemba for June
this year amounted to Tsh.7.6 billion against projected Tsh. 7.1 billion.
The recurrent expenditure amounted to Tsh.7.5 billion, exceeding the ceiling of
Tsh. 6.8 billion.
But expenditure on wages and salaries was in line with the target while other
expenditure was higher than projected, largely because of the execution of
previously allocated resources.
On cumulative basis 2003/04, Zanzibar expenditure amounted to Tsh. 70.2 billion,
accounting for 48.1 per cent of the annual budget of Tsh. 145.9 billion.
Stanchart bond to help
floriculture
By Abduel Kenge
Standard Chartered (T) Ltd. is launching a Flower Bond, first of its kind in
Tanzania, especially for the floriculture sector.
The bond issue valued Tsh.35 billion will be introduced before the end of this
year in a bid to raise fund, which will be credited to flower farmers.
StanChart CEO and Managing Director Hemen Shah, said: “We have spent about a
year on creation of this bond (Flower sector).”
“We haven’t decided whether to trade it through stock market or sell to pension
funds,” Shah explained.
Apart from supporting floriculture, Standard Chartered is exploring new avenues
of support such as outgrower scheme in partnership with other companies and
funding micro-finance institutions.
Micro-finance lending charged the highest interest rates in Tanzania, ranging
between 35 per cent and 50 per cent and is dominated by institutions in NGO
formation.
Unlike other banks that have excess liquidity, Standard Chartered’s
loan-to-deposit ratio for Tanzania shilling lending is over 80 per cent, which
is a prudent lending ceiling rate stipulated by Bank of Tanzania (BoT).
Hence, in order to fund this growth in agriculture lending, Standard Chartered
needs to raise between Tsh. 50-70 billion of deposits. To raise the deposits,
the bank has created a new product dubbed Agriculture Deposits account — this
could be a fixed deposit account or an operating account, which will be linked.
All funds raised under Agriculture Deposit account, to be deposited by
government, parastatals, private companies and individuals, will be lent only to
the agriculture production and processing sector.
After getting the funds, Standard Chartered will screen potential loan
applicants and all projects will be assessed using the agriculture credit
process and criteria.
“At the end of every quarter, we will determine how many projects we can lend
based on the deposits received. Funds will be channelled to these projects as
they become available,” Shah said.
To show its seriousness, Standard Chartered has brought to Tanzania agro-finance
experts from Zimbabwe to help creating a lending mechanism and has already
visited 40 establishments in the past six months. The bank has identified a
total of Tsh. 55 billion worth of funding needs in the farming sector.
Although agriculture is the claimed to be the backbone of Tanzania’s economy,
the 28 banks and financial institutions have been shunning the rural sector,
fearing the inherent risks in agro-based business.
End of tax holiday affects
TCC profits
By Abduel Kenge
The Tanzania Cigarette Company Limited (TCC) net profit declined by 25 per cent
in the first half of this year, compared to the corresponding period after the
company’s tax holiday expired.
The company, whose tax holiday expired in July last year, posted a net profit of
Tsh.9.87 billion after paying corporation tax of Tsh. 3.51 billion.
The company’s CEO, William Schulz Jr., said: “(we) expect to perform steadily in
the second half of this year, although the full year financial performance will
be affected by five per cent increase in excise duty announced in this year’s
budget.”
Gross turnover in the first half of this year increased by 11 per cent compared
with the corresponding period of 2003 to Tsh. 57.8 billion, which the CEO says,
reflects the company’s continued investment in its brands in and outside the
country.
Schulz said: “Operating profit was maintained at Tsh. 13 billion, being impacted
by the effect of local currency devaluation on the mainly US dollar and Euro
denominated cost of sales.”
Following the profit realised in the first six months, the company declared an
interim dividend of Tsh. 7.8 billion out of its current income, equivalent to
Tsh. 74 per share of net withholding tax.
The share will start trading ex-dividend from the last day of this month. TCC
was listed on the Dar es Salaam Stock Exchange in November 2000.
TCC now produces 9,500 cigarettes per hour for one person against the previous
average of 1,500 cigarettes per person. And for the past three years, it has
paid taxes of about Tsh. 40 billion - apart from corporate tax.
12 more coops join TemboCard
By Angela Mazula
Twelve Savings and Credit Co-operative Societies (SACCOs) in Kilimanjaro, Arusha
and Manyara Regions plan to avail the TemboCard services, said sources in CRDB
Bank headquarters in Dar es Salaam.
The bank’s Public Relations Officer, Solanus Ndunguru of CRDB told The Express
last week that the phase two turnover, where 12 SACCOs will get online, will
start mid this month.
“The number will add to about 24 SACCOs connected to the TemboCard system.
The societies based in the Regions of Kilimanjaro, Arusha and Manyara will join
their connected counterparts in Iringa and Mbeya,” said Ndunguru.
He said, currently, there were more than 100,000 TemboCard clients and the
SACCOs will be able to get access to the TemboCard system and withdraw money
using the electronic wallet from various cash points located at various places
in the country.
Apart from SACCOs, other offices that have access to TemboCard are Kibaigwa and
Majengo Sokoni in Dodoma, Mshikamano and Moa in Morogoro while others are
located in Mbeya and Iringa, he said.
Ndunguru added that the aim is to make sure that the service reaches grassroot
levels.
More than 400 merchants in the country are accepting TemboCard for payment of
goods and services.
Ndunguru said plans were underway to introduce TemboCard Visa in the second
quarter of this year and a holder of the card visa will be able to access bank
accounts at visa points abroad.
Speaking with Tanzanian ambassadors recently, CRDB Managing Director, Dr.
Charles Kimei said the Tanzanite account could be operated in Tanzanian
shillings, US dollar, Sterling pound and Euro.
It was specifically introduced to serve Tanzanians living abroad. Tanzanite
account holders would be given CRDB bank dwelling account numbers and they would
be able to send funds to their account either by cash, cheques or telegraphic
money transfers. The account users will also be eligible for TemboCard services.
Pantoon offers new hope to
Ukerewe
By Joshua Mshana
PEOPLE of Ukerewe have been told to take good care of the newly launched
pantoon, MV Ukara, by not overloading it. The pontoon is expected to boost
economic development of the area by facilitating transportation of goods and
services from one place to another.
Firoz Dhalla, the Regional Director of Sinnautic International, a transportation
firm, made the call in an interview in the City last week.
“The pontoon will bring tangible and sustainable economic and social development
as it will facilitate transportation of products from one area to another and
this will encourage more production.
The pontoon should be clean all the time as it has all up-to-date equipment such
as Radar. It has the capacity of carrying 105 passengers, 3 Land Rovers and 2
lorries. We offer routine maintenance,” Dhalla said.
There are 20 villagers comprising mainly farmers and fishermen. They will use
the pontoon to transport their goods to the market place.
“The pontoon is a promise of President Benjamin Mkapa to the people of Ukara in
2000. The Central Tender Board (CTB) announced the tender and our firm emerged
winner,” said Dhalla.
He added, “Pontoons are needed in Lake Victoria, Nyasa, and Tanganyika. The
current pontoons might be hazardous for those using it. In order to improve the
economy, we need more of them,” he emphasised.
Sinnautic has pontoons, rescue boats and patrol boats in Uganda, Kenya and
Tanzania. It also has a wagon ferry in Mwanza port. Goods for export and import
pass through Mwanza and Dar es Salaam ports.
The firm’s wagon ferry carries 25 wagons for fuel tanks. The Tanzania Railway
Corporation (TRC) and Tanzania Habours Authority (THA) are expected to get a
considerable amount of revenue from this.
“We deserve to get this income as our port has up-to-date equipment. The future
of our firm is likely to improve as a result of the signing of the EAC Customs
Union Protocol,” said Dhalla.
Fanta Pineapple launched
By Leonard Magomba
Coca Cola Kwanza limited, a leading soft drink producer in Tanzania, last week
launched another product of Fanta with pineapple flavour in Dar es Salaam.
Speaking at the launch, the spokesperson of the company, George Rwehumbiza,
said, “An opportunity exists in Tanzania for pineapple flavour, which is not
available in this market in the form of carbonated soft drink.”
Fanta pineapple at an African level has produced phenomenal results in consumer
acceptance and has grown the pineapple variant by 50 percent within the category
in countries such as Angola, South Africa, Lesotho, Botswana, Namibia, Ethiopia
and Malawi, where the product has already being launched.
“We are therefore responding to consumer challenge to offer a product that they
want and one that fits within their lifestyle and aspirations,” observed
Rwehumbiza.
“Locally. we have Fanta cans available but this launch will make it more
accessible to the majority of consumers. The product trademark is a lime green
crown and the product texture is cream white in line with true pineapple
colour,” he said.
Fanta Pineapple will be available in a 350 ml bottle and at the same price as
the rest. It is being sold for Tsh. 200 during the promotion period.
The new flavour will be available initially in Dar es Salaam and later in the
year to the rest of the country.
Civil society groups linked
to poverty reduction
By Fakih Yussuf Mohammed,
Zanzibar
Zanzibar Poverty Reduction Plan strategies will be possible only when there is a
system of good governance.
Minister of State in the President’s Office, Mwinyi Haji Makame said this at a
forum for policy makers and stakeholders on spearheading poverty reduction
initiatives, held at Bwawani Hotel in Zanzibar.
Makame said the system of good governance includes the co-ordinated actions of
all the stakeholders, the groups and organisations making civil society, and not
just government officials, private sector, business and foreign partners.
“My observations have shown that this is exactly what is being done right now,
so it proves that we are on right track. However, more effort is needed to bring
foward more changes,” he stressed.
Presenting his paper, Hassan Mohammed from the Finance Ministry, said the war
against poverty is for every one. The political and community leaders have a
role to play in ensuring that people are free from poverty and lead a decent
life, including creating an enabling environment for all stakeholders.
“The politicians and community leaders should advocate and sensitise the
community to effectively participate in poverty eradication initiatives,” he
noted.
He said although considerable achievements had been made in Zanzibar, the
development problem still requires special attention.
Minister stresses on
renewable energy
By Fakih Yussuf Mohammed,
Zanzibar
There is a need to look at the concept of renewable energy in order to minimise
economic and environmental problems.
Principal Secretary in the Ministry of Water, Construction, Energy and Lands,
Yasser de Costa, said this at a two-day workshop on Zanzibar energy diagnostic
study, held at the Zanzibar beach Resort.
The Minister said we have got to look into our available resources; fuel costs
are increasing, our air is polluted. He added there is a need to look at these
problems holistically and we throw some light on new mechanisms.
“It is my belief that during this inception period of the diagnostic study, the
terms of reference will define the objective scope and outputs and issues of
energy policy, institutional, technical and financial aspects will be
deliberated,” he stressed.
He said in this base line study there was a need to look for all the indicators.
“We should look for a reference point and a comparison between the international
standards, Tanesco and state run fuel and power corporations.”
He said one of the important aspects of the progamme was to assist Zanzibar in
preparing a project document for energy sector that will entail the enlisted
scope of work.
According to the Minister, we need to have the wake-up call as collective
efforts only can pay rich dividends. “Just close your eyes and think ‘what if we
did not have energy?’ Our achievements and our development can only be
recognised on how best we use our resources.”
He stressed the need to embark on a strategic plan on the reform of the sector
and a combined support on institutional change, asset rehabilitation and
organisational improvement, which is of paramount importance in improving the
efficiency, management and operations of state power corporations.
The Ministry itself has requested and received the support of the Swedish
International Development Agency (SIDA) to prepare an energy project. As the
first step, SIDA has commissioned an energy diagnostic study to be prepared to
look into the political, institutional, technical and financial aspects of
electricity supply in Zanzibar.
The results will be taken as recommendations on power sector reform,
institutional changes, rehabilitation and organisational improvements.
African values must dictate
business ethics
By Fakih Yussuf Mohammed
Ethical challenges is a problem facing East African business in 21 century. This
statement was made by Kimani Nicolas from Kenya recently, at the Ben Africa 4th
Annual Conference held in Zanzibar.
Nicolas said the predominance of information on public to private corruption
among the East African countries has tended to obscure facts about fraud and
other ethical dilemmas facing East Africa business.
“Not much is understood about the extent to which these problems are prevalent,
nor what responses the businesses have taken to address the problems,” he noted.
He said there is a need for research in this area so that more debate on these
issues can take place, as a first step to determining the appropriate responses
the private sector should take.
About African cultural values and societal expectations, the presenter, Ike
Aghomna said they are an increasingly important part of the business landscape
and their growing importance has essentially been driven by the changes over
past few decades in the relationship between business and society.
“These changes can be attributed to the forces of globalisation, regulation and
privatisation among others,” he stressed.
Aghomna said with these forces set in motion, the sphere of influence of state
corporations and civil society has been re-constructed with private enterprises
expected to be more active participants in the realisation of the public good,
while governments and civil society hold them accountable in this regard.
He said the changes in Africa have been even more dramatic; in the economic
sphere the continent has moved from an agrarian pre-industrial economy to a
modern economy within a century.
According to Aghomna, the African socio-political system has also faced cultural
shocks from colonialism to independence, and consequent formation of nation
states as well as conflict and wars.
He said these changes have left its political systems and social institutions
weak, creating huge challenges for CSR in Africa.
He explained the challenges are further enhanced by the increased global
attention on the CSR implications of the actions of corporation, especially
multinationals operating in Africa as well as in other developing countries.
Aghomna said to achieve the phenomenon of CSR one must understand its nature and
its basis; this is done in the context of corporate citizenship, with its
corresponding obligations and responsibilities.
He said the next step to demonstrate that each society’s world view and value
system shapes the expectations.
In the Ben Africa Conference, 30 papers were presented, including ethical
challenges in the work place, writing a code of ethics and materialist corporate
ethics and justice. The papers have a strong focus on the unique ethical issues
that Africans have to face in business, also contributing towards the
development of a unique African voice in the global discourse on business
ethics.
Factory owners cautioned
By Kim Aidan, Morogoro
Factory owners in the country have been asked to value the health and security
of their workers, in order to increase production.
The national chairperson of the Trade Union Congress of Tanzania (TUCTA)
Margareth Sitta warned owners against hazardous working conditions during her
address to TUCTA Regional Secretaries at a workshop on workers’ health and
security in Morogoro Municipality.
Sitta said secretaries of workers’ organisations in regions should make sure
their members work in normal environments and not to endanger their health and
security at work places.
More than 500 workers have lost their lives or have been maimed permanently by
working in environments which endanger their health.
Disrespecting the workers by making them work in environments which adversely
affects their health and security results in lower production, observed Sitta.
Govt orders audit of Mikumi
Water Company books
By Ashton Balaigwa, Mikumi
The government in Morogoro Region has given a one-month ultimatum to Kilosa
District Management, to audit accounts of the Mikumi Water Company and if
embezzlement is discovered, its officers should be taken to task.
The directive was given by Morogoro Regional Commissioner, Stephen Mashishanga,
after Mikumi Minor Settlement residents complained against the Company for
embezzling money contributed for water provision.
People complained the Company had failed to provide an account of revenue and
expenditure and asked the district government to audit its accounts.
Mashishanga said, if embezzlement is discovered, the embezzlers should be
brought to justice for embezzlements or else the community contributing to water
projects will feel discouraged.
He also directed Kilosa District Government to end conflicts between residents
of Mikumi Minor Settlement, Mikumi Water Company and Mikumi Minor Settlement
Administration.
In their complaint, Mikumi residents said since Mikumi Water Company Management
started operations in 1990, they have neither called a meeting nor given
financial accounts.
Another complaint is that the management of the Company has been directing it as
personal property; and when asked to provide statement of accounts, failed to
give a satisfactory answer.
Mikumi Water Company provides water services to 12,600 residents of Mikumi town.
WB offers 154m/- loan
By Ashton Balaigwa, Kilosa
The World Bank (WB) has provided a loan, amounting to Tsh. 154 million. for
water projects in various areas of Kilosa and Mvomero Districts in Morogoro
Region.
Some areas that will benefit from the loan include Mfilisi Village, Mikumi
Division in Kilosa District and villages in Mvomero District.
This news was broken by the Minister for Water and Livestock Development, Edward
Lowassa, during his public meetings at Mfilisi and Melela villages. The minister
was touring water projects in Morogoro Region.
Lowassa said the money will be used for drilling wells and improving water
infrastructure in the earmarked areas to eradicate water problems facing
communities.
He added despite the loan, the people will have to contribute five per cent
towards the cost of the water projects.
Already experts have been deployed in areas that are to benefit from the loans,
to evaluate and assess areas with enough water.
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