End of preferential trade bad news for sugar producers
By Timothy Kitundu
The interests of sugar producers in Tanzania will suffer an average
loss of
Tsh.14.3 billion on about 22,637 tonnes of sugar exported to the European Union
(EU) annually if preferential market is eroded.
Similarly, the benefits to Tanzania of sugar exports to the EU will severely be
eroded if a recent ruling by a World Trade Organisastion (WTO) panel is
implemented, it has been learnt.
Already the ongoing reforms have threatened to lower the price of the commodity
but if the WTO ruling is upheld, the price would be severely eroded.
Neema Kambona, EU Press and Information Officer, said last week in a statement
that the WTO had recently published the panel’s reports in a dispute brought by
Australia, Brazil, and Thailand against the EU sugar regime.
In response, she added, the European Commission (EC) announced it would appeal
against the ruling as the African, Caribbean and Pacific (ACP) countries would
lose
significantly if the WTO ruling was to be implemented.
Kambona said ACP countries have also intervened strongly against the panel’s
conclusions, demonstrating that the case also threatens the value of current
preferential arrangements which the EU has had in place with ACP countries,
including Tanzania, for several decades.
According to her, the WTO ruling backed up a case brought forward by Australia,
Brazil, and Thailand, which challenged two types of EU exports of sugar on the
basis of claims that they were subsidised contrary to the WTO Agreement,
whereas the first claim relates to the export of sugar which is produced under
different quotas in the EU.
“The second claim concerns exports refunds on those amounts of sugar which are
equivalent to imports from ACP countries and India under preferential market
access arrangements,” Kambona said.
The EU’s position, she added, has been that exports of sugar of the disputed
quotas do not benefit from export subsidies. The first claim is partly based on
an
erroneous interpretation of the WTO provisions on agricultural export subsidies
and inconsistent with the obligation of good faith.
As of the second claim, the EU insists that exports of sugar equivalent to the
imports from ACP and India are in full conformity with the EU’s schedule of
commitments and WTO provisions regarding agricultural export subsidies.
The main sugar-producing areas in Tanzania are Kagera, Kilombero and Mtibwa.
The price at which sugar is imported into the EU stands at approximately 640
Euro
(about Tsh.832,000) per tonne for white sugar.
Mramba wants growth rate pushed up
By Angela Mazula
Poverty level in Tanzania is still high and widespread, particularly
in rural areas
where about 18.7 percent population lives below the national poverty line and
35.7 percent below the basic needs poverty line.
Speaking to The Express this week, Minister of Finance Basil Mramba Minister who
earlier met the UK Secretary of State for International Development Hilary Benn,
stressed Tanzania needs a faster growth in order to make a dent on poverty.
Mramba said the government while developing second circle PRS is aiming to
accelerate growth to at least eight per cent a year and reduce income poverty,
improve the quality of life and social well-being, and enhancing government
accountability.
Mramba said higher investment and growth will need elimination of remaining
structural problems such as limited access to bank credit to the private sector,
particularly small and medium entrepreneurs and tackling the problem of hard and
soft infrastructure such as transport, communication, energy and water.
Major transformation of agriculture which supports 80 percent of the population
will be a key element in the national growth for strategy and reduction of
poverty. Foreign aid will continue to be necessary to cover the gap in the
medium-term and to assist to achieve the MDGs, Mramba explained.
He said, “at the same time we realise that in the long run aid will be reduced
and
that it should be prudently help improve the environment for investment that
will
put the economic on a steady growth path”.
Hilary Benn, a Member of Parliament from UK, said during his presentation that
Tanzania is one of the countries that has shown results from use of donor money.
Cosota may charge fees from members
By Kizitto Joseph
The Copyright Society of Tanzania (COSOTA) plans to start charging
its members'
registration fee and ask them to have annual membership fee as a means to
reduce economic hardship.
Materialisation of this plan depends on the mass support at the members general
assembly to be held in December this year.
Secretary of COSOTA Steven Mtetewaunga told The Express that if accepted the
plan will be of good help to COSOTA, especially this time when the government
has withdrawn its support.
He said since its establishment in October 2001, members were registered free, a
move aimed at giving better chance to artists to join the society as it was
still
young and new.
COSOTA has already registered about 743 members since its establishment.
Among them are 659 musicians, 53 authors and 41 dramatists.
These members have altogether presented 2,902 works of art, of which 2,688 are
musical work, 174 writings and 140 dramas.
According to Mtetew- aunga, COSOTA in collaboration with other copyright
societies of Kenya, Zambia, Zimbabwe, Congo, S.Africa, Uganda, Central Africa,
America, Malawi Mozambique and Uruguay, is working to control piracy of works of
art.
Industrial sector gives more now to GDP
By Jacqueline Mujuni, in
Arusha
Although the industrial sector in Tanzania has been on the decline
for the past
two decades, the sector’s contribution to Growth Domestic Product has been on
the rise with the rise in employment rate.
The industrial contrib- ution to the GDP has gone up from 7.9 per cent in 1995
to
8.7 per cent in 2003, according to Minister for Industries and Trade Juma
Ngasongwa who was presenting a paper at the launch of five-year mosquito nets
in Arusha, Tanzania.
Ngansongwa also indicated that there has been an impressive increase in
employment in industrial sector despite the earlier retrenchment during
privatisation.
“The employment rate has increased by 25 per cent between 1995 and 2001 while
2002 and 2003 it was 15 per cent,” said Dr. Ngasongwa.
Tanzania has launched the Trade Policy and Small and Medium Enterprise
Development Policy that focuses on job creation through private sector as part
of
working closely with private sector. Employment has gone up from 180,000 to
207,000 in 2002 and 2003.
Kenyans keen to foster trade with Tanzania, says envoy
By Kizitto Joseph
Around 30,000 Tanzan- ians have been employed in180 Kenyan companies
investing in Tanzania , Kenyan Ambassador Muburi Mwita said over the weekend.
Mwita was speaking to the executive chairperson of IPP Reginald Mengi.
He said Kenyan invest- ment in Tanzania had availed job opportunit- ies to
Tanzanians and improved the economy of the country.
“Kenya is the second largest market for Tanzanian commodities. We (Kenya) don’t
send money to any restless country,” he said.
He added Tanzania and Kenya had been friends since the time of struggle for
political independence.
Mwita praised the government of Tanzania for its success in maintaining the
country’s economic growth at six percent.
“Tanzania’s economy is growing at the rate of 6 per cent annually; this is a
great
achievement compared to Kenya’s,” he said.
He promised his Government will strengthern economic partnership with Tanzania.
“Political diplomacy ended since the time of Cold War. Now the world is
dominated
by economic diplomacy.”
Mengi advised Kenyan business people to enter into shareholding with Tanzanians.
He said it was easier for Kenyans to enter into trade partnership as they have
similar cultural origins.
He, however, warned against underrating native Tanzanians in this partnership,
saying that kind of attitude will only create enmity and harbour
misunderstanding.
Power to be generated from sisal residue
By Kizzito Joseph
The first-ever factory to produce electrical power from sisal residue will be
constructed at Kwaraguru farm in Handeni district of Tanga Region.
Chairperson for the sisal development project, Salumi Shamte, told journalists
last
week that the new project will be inaugurated by Vice President Ali Mohammed
Shein.
“The project, which is a new innovation funded by different international
companies, is expected to produce one megawatt of electricity,” he explained.
According to Shante, 4,500 acres of sisal can produce one megawatt, of which
25 percent is used by the farm, availing the rest to the national electrical
grid. He
said sisal residue can also produce gas and manure.
More than Tsh. five billion have been spent to support a project for sisal
research
through the cooperative efforts of CFC, UNIDO,IFAD, and the governments of
Belgium, Tanzania and Kenya.
Tanzania has witnessed an increase in sisal production from 23,800 tonnes last
year to 25,000 tonnes last September 2004. Over all sales collection is Tsh.
25 billion.
Shamte said over 15,000 Tanzanians are employed in sisal production
back to headlines
CTI wants regions to form trade bodies
By Restituta Mutasingwa
The Confederation of Tanzania Industries (CTI) has advised
Tanzanians from
upcountry to form associations that will help them look for investors, instead
of
depending upon the government.
The chairman of CTI, Arnold Kilewo, gave the advice recently saying some
regions, including Mwanza and Kilimanjaro, have begun the procedure of forming
associations, which could be helpful in future.
Kilewo was speaking to the press in his office in Dar es Salaam last week. He
stressed it was good for Tanzanians to strengthen their areas of production so
that the local and international investors can be interested.
“The only work for the government is to bring the country in a good position so
as to impress the investors while the stakeholders’ work is to put more effort
in
finding the investors who can invest in that sector,” he said.
Kilewo added, the only government work is to create a good environmental
infrastructure by providing good roads, electricity to all regions all over
Tanzania
and to make sure all necessary services are easily available so as to impress
the
investors.
By Timothy Kitundu
The Central Bank of Tanzania (BoT) has said that total public debt –
both internal
and external - rose by US$ 22.9 million (about Tsh.24.2 billion), mainly on
account
of disbursement of old and new loans, as well as accumulated interest arrears
for
non-Paris Club creditors.
Thus, the BoT says in its latest Monthly economic review of August 2004 that at
end August, total public debt stood at US$ 8,816.1 million (about Tsh.9,997.6
billion).
It adds that in August 2004, the committed external debt stock rose by US$37
million (about Tsh.40.7 billion) to US$8,210.5 million (about Tsh.9.4 billion)
out of
which US$ 6,734.4 (about Tsh.7.2 billion) was disbursed.The disbursed debt of
the private sector increased by US$ 20.3 million (about Tsh.22 billion) during
the
month to US$468.6 million (about Tsh.514.8 billion), while that of the central
government went up by US$14 million (about Tsh.15.4 billion) to a stock of US$
6,110.4 (about Tsh.6,721 billion).
The debt stock of public corporations remained almost unchanged at US$155
million (about Tsh.170.5 billion) between July and August 2004. The review
indicates that the analysis of disbursed debt by creditors show that
multilateral
creditors disbursed US$4,601.7 million (about Tsh.5.2 billion).
Bilateral creditors disbursed US$1,504.6 million (about Tsh.1,654.4 billion)
whereas
commercial and export creditors owed US$ 395.3 (about Tsh.434.5 billion) and
US$ 232.8 (about Tsh.324.5 billion) respectively.
However, the bank says, the share of multilateral debt remained high reflecting
the Government’s policy of borrowing on concessional terms, mainly offered by
multilateral institutions, while that of bilateral debt is declining due to
bilateral
debt cancellations.
The share of commercial and export credits are on the lower side because
Tanzania has limited access to International capital markets.
By Kizitto Joseph
The Society for Workers in Mining and Construction (TAMICO) has
declared a plan
to train its members in new technology to improve efficiency in the mining
sector.
Deputy Secretary of TAMICO, Anne Ngondo, said last week that the programme is
scheduled to cover the whole country but to start with the training will be
given
to Dar es Salaam members.
Ngondo said the mining and construction sector had been for a long time
developing without expertise, adding to the inefficiency and slowing down
development.
“We expect to train all our members country -wide. We are starting from DSM
where we have already 15 trainee groups. Our aim is to train 42 groups,” she
explained.
Ngondo said the training is based on workers’ personal safety and hygiene and
the
necessity of using proper tools while at work.
Farm households still very poor, says report
By Angela Mazula
About 3.6 million farm households operate on average less than one
hectare and
depend mainly on rain- fed agriculture in Tanzania, where agriculture is the
mainstay of the economy.
According to the Tanzania Strategy Assistance (TSA) report released in Dar es
Salaam last week, in spite of the progress made in recent years in restoring
macroeconomic stability, current GDP growth rates of between 4.5 and 5.0per
cent are too low to address the problem of poverty, TAS revealed
It said the high growth in agriculture and non-agriculture rural activities is
critical
for reducing poverty where the development also concerns issues such as social
cohesion, shared value, role of citizen and respect for human rights as well as
recognition of social responsibilities.
However, in accordance with international development targets, the government
is targeting to reduce the proportion of people living in poverty by 50 percent
by
2010 and eliminating poverty by 2025 and the mid-term target is to improve the
knowledge on the characteristic.
In programmes to monitor poverty reduction and reduce constraints that prevent
poor from the contribution growth, functionaries are striving to engineer strong
participant of the poor and empower them to participate in designing and
implemen- tation poverty reduction programmes.
Austrian scribes vow to promote Tanzania
By Timothy Kitundu
Eight senior Austrian travel journalists early this week ended their
six-day
familiarisation tour of Tanzania, covering the country’s key tourist attractions
in a
special assignment aimed at promoting Tanzania’s fast-growing tourism in Austria
and other German-speaking nations of Europe.
Speaking at a farewell reception at the New Africa Hotel in Dar es Salaam Monday
the Managing Director of Leisure and Safari Tours, Helmut Suitner, said the
journalists who arrived in Tanzania mid last week were assigned to cover
Tanzania’s tourist attractions as a step ahead of opening up Tanzania to the
Austrian tourists.
The journalists, during their tour, covered a number of attractions including
the
Selous Game Reserve which covers 50,000 kilometres – the world’s second largest
wildlife park inhabited by terrestrial mammal species, Zanzibar Island, which is
important for its 1,000 plus years of Arabic history and Dar es Salaam city.
“We want to include Tanzania in Austrian tourist package through media
campaigns and by involving top newspapers and television stations in Austria
ands
this will fill the gap in the sense that Tanzania’s tourist attractions are not
much
known by Austrian holiday-makers,” Suitner said.
According to Suitner, Gulliver’s Reisen in Austria has planned and is looking
forward to including Tanzania in its tourist package programmes and visiting
itineraries to its clients, and this would attract more Austrians and other
German-speaking tourists to book and visit Tanzania.
Susi Zapletal of Swiss International Airlines Limited who was also in the
entourage
told The Express that the tour had been beneficial to them, especially the
Selous
Game Reserve, which to her astonishment was not known to many of them.
“I personally felt excited after noting that the Selous covers approximately
half
the area of Austria, it has been quite educative to have visited the world’s
second largest wildlife park,” she said.
In his remarks, which were read on his behalf by Devota Karamaga, Principal
Tourist Information Officer, Tanzania Tourist Board Managing Director Peter
Mwenguo said Tanzania was one of Africa’s finest tourist destinations and had
many tourist attractions which are yet to be discovered.
“The attractions you visited are just a few Tanzania’s treasures, we hope that
you will in the near future be able to come again and see the Majestic Mount
Kilimanjaro – the roof of Africa’s Ngorongoro Crater – the eighth wonder of the
world and other attractions,” he said.
He said though the tour of the journalists was only six days long, it was hoped
that they will be the eyes of thousands of prospective tourists from Austria and
that, from the articles and photos they publish, the number of tourist arrivals
from
Austria will increase doublefold.
The Austrian journalists’ trip was organised by Dar es Salaam-based Leisure and
Safari Tours and the Austrian-based Gulliver’s Reisen Tour company, and
co-sponsored by the Tanzania Tourist Board (TTB), Swiss International (Airline),
Coastal Travels (Dar es Salaam) and a section of tourist organisations in
Tanzania.
Better coordination urged for expediting development
By Angela Mazula
Tanzania has been called on to increase its efforts to expedite the
accomplishment of Millennium Development Goals (MDGs).
Speaking at an African Regional workshop on harmonisation, alignment and
development effecti- veness held at Golden Tulip last week, Philibert Africa, a
World Bank Director, said harmonisation of policies, procedures and requirements
will make the work more result oriented.
Africa said Tanzania must try to change the conditions to rise up to the global
level and increase its capacity to work in different sectors such as
agriculture,
education, industry and sound providence management.
Peniel Lyimo, Perma- nent Secretary in the Ministry of Finance, said strong
leadership is needed to sustain development impact.
He said, at the workshop, different ideas were raised and each country had the
opportunity to know what others were doing.
He explained that participants agreed on the necessity for aid donors and
recipients to change the way they do business and to measure development
progress in terms of achieving of MDGs.
‘New trade terms must be set with EU’
By Angela Mazula
The Cotonou Agreement that is the basis of a new trade arrangement
between
the European Union (EU) and African Caribbean Pacific (ACP) countries, shall be
in
place in January, 2008.
Speaking with the press last week in Dar es Salaam, Otieno Ondeki, Professor of
University of Nairobi Faculty of Law, said the Economic Partnership Agreement
(EPA) will help negotiations between the EU and ACP countries.
He added EPAwill take into account the level of development and the
socio-economic impact of trade measures on ACP countries.
Prof. Ondeki observed the capacity to adapt and adjust their economies to the
liberalisation processes is a constraint and challenge for ACP states. They must
initiate establishment of a unique and innovative free trade agreement with the
EU that addresses developm- ent concern.
Prof. Ondeki said this arrangement should recognise the centrality of
agriculture in
ACP countries to poverty alleviation and meeting basic needs.
According to him, ACP states should start identifying products that are very
sensitive and stimulate ACP export to the EU. The financial development and aid
issue should be made integral to the EPA, he said.
He added the agreement has new trade provisions forming basis for ACP-EU trade
relations in the coming eight years and negotiations on longer-term WTO
compatible trade arrang- ement to extend the existing non-reciprocal trade
preferences.
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Duwasa to expand customer base
By Heri Said Kilongo,
Dodoma
Dodoma Urban Water Supply and Sanitation Authority (DUWASA) is
preparing and
has started a strategy of increasing customers, who use its water services, a
step projected to reduce cost of water for current customers.
Spekaing to The Express Reporter recently, DUWASA Public Relations Officer,
Sebastian Warioba said the exercise had already started with meetings to
motivate people in several parts of Dodoma Municipality on the issue.
DUWASA has held meetings with various hamlets and local government
functionaries, aiming at empowering them to go back and educate the public on
the importance of being customers of DUWASA.
Elaborating on the water costs for its 12,160 present customers, Warioba said,
the costs will continue to decrease parallel with the increase in new customers.
He asked the customers to cooperate with DUWASA to motivate more people to
join the water services.
Generally, he said, water costs are calculated in line with DUWASA’s
administrative costs so if the number of customers increases, the cost will be
spread over a larger number of people.
Nation’s cattle wealth wasted, say experts
By Bonventure Mtalimbo,
Morogoro
Tanzania currently has 17 million heads of cattle, 13 million goats
and large flocks
of poultry, but their contribution to the national Gross Domestic Product
remains
far below potential due to low productivity.
This was revealed by academicians of the Sokoine University of Agricuture (SUA)
when outlining factors limiting crop and livestock productivity and their effect
on
household food security and income.
The academicians said there were a number of factors that hindered the
development of the agricultural sector, including lack of adequate coordination
and lack of focus on government policies meant to promote agricultural
production
and productivity.
They observed other problems hindering growth of the farm sector are the use of
outdated technology and heavy dependence on rainwater.
They lamented there is very little emphasis on irrigation and water harvesting
and
urged the government to look into these areas.
By Heri Said Kilongo,
Kongwa
Savings and Credit Cooperative Societies (SACCOS) of Chamtuma and
Chamasho
in Kongwa District, Dodoma Region, have increased the value of their members’
shares by over 800 per cent between 2002 and 2004.
According to statements of accounts of the two societies, the increase in share
value is parallel with the increase in new members in SACCOS.
The statement of accounts for the period indicate that Chambasho Cooperative
had its share value increased from Tsh. 2.43 million to Tsh. 20 million while
its
members increased from 247 to 358.
Chamtuma Cooperative saw its share value rise from Tsh. 0.48 million in 2002 to
Tsh. 7.46 million in 2004, while the number of its members had risen from 48 to
244.
Nonetheless, the two cooperative societies dominant in Chamkoroma and Hogoro
wards in Kongwa District, with a total of 12 villages, still need to motivate
more
people to join them.
According to some functionaries of the two cooperative societies, efforts to
motivate people to join them have been slow due to financial constraints.
The two have called on authorities in the district and the region to help them
in
educating the public, so that by 2010, half of the residents of the two areas
join
the two SACCOs.
Many SACCOs have successfully been conducting their business well after Moshi
Cooperative College, Dodoma Branch, started a programme of educating and
consolidating cooperative societies in the region.
back to headlines
Mkapa demands respect for leaders
By Emmanuel Lazaro,
Mwanza
President Benjamin Mkapa lashed out at Tanzanians who utter abusive
statements
and disgrace founders of the nation.
In his statement at the opening of 12 tarmac streets, 55.8 kilometres long and
worth Tsh. 21 billion, in Mwanza City, the President said there were Tanzanians
who despise the history of the nation and its founders, say they did not bring
any
development. He urged Tanzanians to respect their legacy and respect their great
leaders.
President Mkapa emphasised he will make sure the country continues to rule
itself
with respect for self-reliance, instead of being an agent of rich nations and
developed countries.
“Personally,” he said, “I will use my position in various international fora
that I am
chosen to lead or participate, to relentlessly call on the big nations to cancel
debts of all poor countries in the African continent.”
Kigoma NGO to spend 870m/- on green campaign
By Damas Ayuke, Kigoma
A non-governmental organisation (NGO) in Kigoma Region, Kigoma
Environmental
Conservation Authority (KECA), expects to spend Tsh. 870 million on an exercise
to plant six million trees in various areas of the region.
KECA’s Director in Kigoma Region, Stanslaus Ntatye, revealed this information
Friday last week, when talking to The Express in a special interview concerning
with planting trees and preserving the environment, conducted by his
organisation.
He said, the planting of trees has already started in primary school areas,
where
they started with Mwanga Primary School at Lake Tanganyika, and the exercise
will continue in other schools.
The exercise will continue up to 2008, Ntatye said, when they will have
succeeded to plant trees in all refugee influx affected areas in Kigoma Region.
Adding, in areas which have been affected by arrivals of refugees, especially in
Kibondo District, Kigoma Rural District and Kasulu District, they will make sure
the
affected areas which are still open, are planted with trees.
Different type of trees will be planted in various areas, including making sure
that
river sources are protected as required. He observed.
Concerning community participation in protecting the environment, the Director
said, KECA will educate the community on the effects of using plastic bags,
which
cause discomfort to the public.
He said, the plastic bags are a great source of environmental degradation here
in
the country, because their rampant spreading can make one suffer various
diseases.
Farmers want donor money invested in irrigation
By Bonventure Mtalimbo,
Morogoro
Small-scale farmers and businessmen in Morogoro Region have asked
the
government to spend donor money on strengthening the agricultural sector,
especially the irrigation system.
Farmers in Ifakara and Mvomero districts revealed this following shortage of
rain
and water in the country and suggested the government use all resources on
irrigation.
One farmer from Ifakara, Thomas Mwamhanga, said the money received from
donors should go directly to agriculture, especially to areas where there is
enough
land such as the Kilombero basin.
He said in Kilombero district, there is a lot of land that can be cultivated but
the
problem there is not enough money to till the land.
Another farmer in Idete, Bryson Kasuga, said donor funds should be used to help
small- scale farmers come together and cultivate big farms of maize and rice.
He argued the government was spending a lot of money on organising seminars
and workshops for senior officers, forgetting that rural people are suffering
due to
lack of capital to invest in the agricultural sector.
back to headlines
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