Opinion

Analysis


EAC labour laws need support

On the first of January 2007, citizens living in Tanzania, Uganda and Kenya will be able to find employment in any of the three countries, without applying for working permits or other documents.
What the consequences of this decision by the East Africa Community might be, only time can tell. What remains clear is that with a free movement of labour, competition on the labour market will harden and those who are not equipped with the sought after skills will be left behind.
It is a pity that the country’s government has not been more informative of what is to come, let alone has tried to ensure that Tanzanians are ready to face the challenge the decision imposes.
Many Tanzanians are of the opinion that the skills they possess are not compatible with the skills of Kenyans or Ugandans. They fear that once free movement of labour is introduced, Kenyans and Ugandans will enter the Tanzanian labour market and consequently ‘take’ their jobs.
However, this line of argument is problematic. It assumes that people are willing to move to find employment. In other parts of the world, where free movement of labour has been introduced (like in the European Union) it has been shown that the number of people moving to another countries for the sole purpose of finding employment is very small. People are not willing to leave behind family, friends and the security network they have built up in their community despite facing unemployment.
Moreover, it also assumed that employees are merely looking on job applicants’ CVs, and don’t take into account the knowledge and local expertise that a citizen of Tanzania possesses, compared to a Kenyan or Ugandan.
Of course there will be some degree of labour movement between the countries, but not to the extent that many Tanzanians fear.
The government has said that in the time to come before the new laws are introduced, Tanzanians should make their utmost in trying to prepare themselves for the increased competition. Still, the fact remains that education in Tanzania, particularly regarding the English education and the higher education does not match that of Kenya and Uganda. With this in mind, preparing oneself for what to come is a difficult challenge and something which the government must look into.
Opening the borders for labour migration within the East African Community is indeed a big step, but also a step in the right direction. It indicates a greater openness between the three countries and will facilitate communications and movements between them. But the decision also needs the guidance and support by the countries’ governments. In the end they are the ones who will determine if it can be as successful as we wish.

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New confidence in Tanzanian camp

Tanzania’s representative at the Miss World 2004 pageant, Faraja Kotta, is expected to leave for China November 7 for acclimatisation ahead of the main event on December 4 in South Sanya.
With the backing of Ocean Sandals that also sponsored Miss Tanzania 2004, the China trip four weeks before the main event, is a clear indication that Tanzania is taking serious steps towards global success.
Also not a common tradition in Tanzania, Ocean Sandals has agreed to back Faraja’s acclimatisation trip, all showing how determined Tanzanians are to succeed in this year’s edition of Miss World Beauty Pageant.
We commend the combined commitment of Faraja, main sponsors Ocean Sandals and the coordinator of Miss Tanzania pageants, Hashim Lundenga, which has offered Tanzanians a ray of hope.
Marketing Manager of Ocean Sandal Mustapha Ghaddar said recently in Dar es Salaam his company had decided to support Faraja to boost her confidence, which could brighten up her prospects for victory.
Additionally, as Lundenga further explained, Faraja will jet into Sanya Phoenix Airport November 12 before taking part in Beach Wear final at Sanya Resort November 14. She will tour China’s capital, Beijing, and participate in a charity dinner and talent show dress rehearsal at Miss World Theatre.
Faraja and those preparing her for Tanzania’s 10th attempt in the Miss World Pageant, must have at least taken important notes on what to tell the world about Tanzania as there are countless activities to be done prior to the Miss World, where our Ambassador will be with other contestants from all over the world in the Miss World Talent show as well as in the Miss World Scholarship award.
The assurance from Lundenga that Faraja is well prepared for all events in China, augurs well for the contestant.
Getting a world class figure requires vast knowledge of issues, or events that affect mankind both in positive and negative ways.
Faraja must understand happenings in countries plagued by hunger, wars, disease, and other natural and human savagery, so that she helps provides solutions by giving important lessons from her home country, Tanzania.
We wish our representative all the best and hope she does better than the ten before her.

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Analysis

Privatisation– not the magic solution to unemployment
By Evarist Kagaruki
Last week we said that Tanzanian workers who feigned sickness and abused EDs (Excuses form Duty) in order to avoid work were not taking their employment seriously in the face of the worsening problems of unemployment in the country. We cautioned that, as parastatals got phased out in the process of privatization, and the private sector took over the privatised public assets, everyone looking for employment (including multitudes of retrenched young people) had their eyes fixed on that sector which can afford to absorb only a fraction of the “army” of job seekers.
Even the best (in terms of education, know-how, and experience) among the retrenched workers will have great difficulty finding new jobs in the private sector. Only a few lucky ones will find vacancies. This is partly due to the competitive nature of the skilled jobs, and partly because most foreign investors prefer to bring with them their own expatriate staff (as a component of their investment portfolios) to man the technical and managerial positions in their firms.
Certainly, this is not good practice, but it is something many developing countries experience during the period of economic transformation when governments make great efforts to attract foreign capital to boost the economy. Most foreign investors are, at the beginning, apprehensive about employing local experts all rounds. Governments also become cautious not to impose conditions which are too restrictive, like limiting the number of expatriate staff an investor could bring in, lest they put off other potential investors.
However, investors (local and foreign) know that they are required to operate within the laws of the host country. Some of these laws emphasise localization of manpower in a foreign-owned enterprise. Under our laws, for instance, foreign investors have a responsibility to employ and train local manpower and transfer technology and business know-how to the local people. How many of them are fulfilling this obligation in a matter for conjecture!
There have been complaints that foreign-owned firms, by and large, employ aliens not only for managerial positions, but also menial jobs. And this was being done even where there are local people who are qualified for the jobs.
In view of the foregoing, and at the risk of sounding too pessimistic, one can say, with an air of certainty, that the future about jobs in this country is bleak. The output of job-seekers will continue, for many years to come, to overwhelm the capacity of the economy to generate jobs!
Tanzanians should not expect miracles to happen in the area of employment, even as the economy picks up. The only “miracle” lies in self-employment, especially in the informal sector. But this also requires organization and facilitation by the government via well-thought out, well-coordinated and feasible programmes.
There is a mistaken belief among people in this country, that privatization will create more jobs and put the unemployment problem to rest. The truth is that private sector-based companies will, due to competition, be forced in the course of time to restructure and slim down in order to cut costs, become competitive and more efficient. In the intensifying heat of globalisation and global competition, companies are going to aim to get more work out of fewer people to maximize profits.
That means, as years wear on, more (unnecessary?) jobs will be lost for the survival of the enterprises. Only labour-intensive industries, like textile manufacturers, will recruit large numbers of workers – most of them unskilled and semi-skilled – (unskilled labour is, by definition, less productive and less costly in terms of wages).
In many other areas of employment, the number is going to shrink progressively as enterprises become automated, adopt new technology and acquire modern management skills. (Technology boosts productivity making it possible to get more output from less work). To that end, there is going to be an increasing demand for more educated, well trained and skilled people in all areas of employment in the economy, who can master new technology.
There is also going to be a deeper shift in the country’s economy that is destined to strand a great many workers, particularly the unskilled and semi-skilled. That is the scenario we may be watching as it unfolds on the economic horizon within the next 10-15 years!

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