2004 a great year for Tanzania: WB
By Timothy Kitundu
The World Bank says 2004 has been a very good year for Tanzania and
other developing countries, with their economies growing at the fastest pace in
three decades.
In its Annual Global Economic Report released Tuesday and availed to The Express
through the African Economic Editors Network (AEEN), the World Bank said
developing countries will have registered 6.1 per cent economic growth this
year.
The report also says global economic growth is expected to slow down in 2005
because of rising oil prices. The global economy expanded at about four percent
this year, but is expected to slow down to 3.2 per cent in 2005.
“Economic growth in sub-Saharan Africa has improved since the 1990s, but is
slower than almost anywhere else in the world,” the report observes. The
region’s GDP is estimated to grow by 3.2 per cent in 2004.
Growth in oil-producing African countries, the WB says, was strong at 4.4 per
cent but was substantially down from the 7.9 percent recorded in 2003. The Bank
adds in South Africa, Africa’s strongest economy, growth was hampered by the 40
per cent appreciation of the local currency.
The World Bank says it upgraded its forecast from its prior estimate of 3.8 per
cent because most countries in the region have had a solid year — and growth has
risensharply in some of the region’s larger economies.
The World Bank’s top economist for the region, Guillermo Perry, says higher
commodity prices, increased capital flows and stronger growth in the United
States, Europe and Japan also influenced the projection.
But the report says major hurricane damage has hurt economic development in
several Caribbean countries, and that it may take several quarters before those
countries start growing again.
The World Bank urges countries to take advantage of “favourable prospects” in
their economies to narrow budget and trade deficits, reduce public debt and
minimise vulnerabilities to swings in international capital markets.
“This is no time for complacency,” the Bank warns. Lingering imbalances in the
global economy associated with rising twin deficits in the United States, a
delayed recovery in Europe, high and volatile oil prices and questions about the
path of China’s economy constitute risks to the pace of growth in developing
countries over the medium term.
The World Bank is also concerned about the growing trend of Regional Trade
Agreements (RTAs). The organisation argues that some smaller developing
countries could be left out.
“To give preference to some countries means to discriminate against other,” says
World Bank Chief Economist François Bourguignon.
The number of RTAs has increased six-fold and the World Bank is calling on
countries not to neglect the multilateral efforts within the framework of the
WTO. The bilateral agreements of the US and EU often do not create free trade
because the most important goods, usually agricultural products, are excluded or
there are some strict rules of origin, which impair market access.
Boosting productive capacity key to growth: Ngasongwa
By Angela Mazula
A strengthened productive capacity for poverty reduction with the
support of New Partnership for Africa Development (NEPAD) might bring changes to
African countries and help them boost development of the industrial sector,
Minister for Industry and Trade Juma Ngasongwa has said.
The minister was speaking at the 15th Africa Industrialisation Day celebrations
held at Karimjee last week. According to him, the current global development
strategy is centred on poverty reduction in African countries.
The Minister said high poverty levels in Africa are partly due to low economic
growth management, fuelled by the lack of interaction of domestic effort and
global integration, stagnation of productivity and unemployment.
He added that in the second African Union (AU) Summit held in July this year,
the African leaders reached a consensus on furthering implementation of NEPAD to
eliminate poverty and boost economic development of the continent.
He said, “for the African countries which are still at low level of economic
development, the strategy to strengthen the industrial capacities is one of the
main policy pillars for poverty reduction and improving performance capacity.”
He noted that the economy of African countries, particularly those in
sub-Saharan Africa (SSA), had been on a decline for a quarter of a century and
unless this disturbing trend is reversed, the Millennium Development Goals (
MGDs) would not be attainable for SSA.
Ngasongwa said that the achievement of MDGs required faster economic growth
rates. He said since the industrial sector had been assigned the fundamental
role of transforming the economy from a low productive, agriculture-based
economy to a semi-industrialised one with export-led growth, it was vital for
industries to do well.
By Timothy Kitundu
The Small Industries Development Organisation (SIDO) with the
support of the British High Commissioner will today hold an exhibition to draw
the attention of the international community to the work they are doing with the
Small and Medium Enterprises (SMEs) in Tanzania.
Omar Said, Press and Public Affairs Officer of the British High Commissioner,
said in a statement that the exhibition which was also held last year, will take
place at Umoja House in Dar es Salaam.
According to Said, a total of 20 SIDO-selected SMEs will have the opportunity to
exhibit and sell a range of their products.
“The main objectives of the exhibition will be, among others, to learn from
local and international invitees which Tanzanian products have market potential
and to seek advice on how to modify and combine products to suit trends,” he
explained.
Other objectives, according to Said, are to establish direct links with various
missions’ personnel and to assist access to foreign markets, to explore trade
concessions and to raise awareness of SME sector and solicit necessary support
from the international donor community.
Invitees to the event will be drawn from Heads of Foreign Missions,
representatives from the Ministry of Trade and Industries, Bank of Tanzania, the
Confederation of Tanzania Industries, Tanzania Investment Centre, members of the
press and Tanzania Chamber of Commerce, Industries and Agriculture.
ADB decentralises through expansion
By Express Correspondent
The African Development Bank (ADB) has embarked on a major
institutional decentralisation of its activities leading to the setting up of a
country office in Dar es Salaam early this year.
Speaking in Dar es Salaam last week, Eric Chinje, Director of Communication of
ADB, said the move seeks to consolidate the Bank’s development finance in the
continent and enhance effectiveness of its operations.
He added that, like in Tanzania, ADB offices have been set up in Gabon, Egypt,
Ethiopia, Senegal and Uganda.
This is, according to Bank, “increasing our outreach through additional field
offices and will enable the Bank to better handle dialogue.”
Chinje said 16 other offices will be opened in the next two years with
Mozambique being covered before the end of this year.
“Increasing our outreach through additional field office will enable the bank to
better handle country dialogue activities enhance donor coordination and advance
the harmonisation agenda” he said in the donor recipient African countries
workshop in Dar es Salaam.
CEOs want tax regime parity in East Africa
By Timothy Kitundu
About 34 per cent of Chief Executive Officers (CEOs) in East Africa,
out of which 54 per cent are from Tanzania, have requested their governments to
streamline and harmonise tax systems regionally, as a pre-requisite for their
companies to have a good business environment.
This was revealed by Leonard Mususa, PriceWaterHouseCoopers Tanzania Country
Leader, at a function to honour East Africa’s Most Respected Companies, an event
held at the Royal Palm Hotel in Dar es Salaam last week.
According to Mususa, in its fifth year, the survey involved a total of 250 CEOs,
out of a total of 400 who were approached, whereby 90 were from Tanzania.
“The results of the survey show a pattern similar to previous years’ – companies
with a strong presence in more than one country had a better showing,” he
explained.
He, however, said that there are quite a number of businesses that mainly have a
single country presence that have done well.
The survey had a component, where CEOs were required to mention what they want
their governments to do to improve their businesses.
Mususa said, 47 per cent of the CEOs wanted to see a dramatic improvement in
infrastructure, 30 per cent of them Tanzanian CEOs, adding that 36 per cent
wanted a more favourable investment environment.
“About 32 per cent of the CEOs wanted improvement in governance while 28 per
cent wanted their governments to fight corruption,” he noted.
He said, the actions that have been identified are universal and are frequently
demanded by potential investors within the region and that they have also
featured in other surveys. In the survey, East African Breweries was voted
overall winner for the fifth year.
Vodocam new campaign underlines expansion
By Kizitto Joseph
“One nation, same network” is the motto of Vodacom’s new campaign that aims at
bringing people together through expansion in every corner of the nation.
Launching the campaign last weekend, Jose dos Santos, Managing Director of the
company, said in the past four years the company has been working with due
regard for its customers’ needs and has also contributed to the growth of the
country’s economy.
“We are proud to have contributed to people’s development, from tertiary to
higher education, both in rural and urban areas,” he observed.
Santos said Vodacom as a communication unit had contributed to the country’s
economic growth through investment, provision of employment, education, shift of
technology and community development programmes.
In the past four years, Vodacom has introduced various messages to people to
accompany its business. “In every message there is a meaning and as we approach
2005 you will slowly understand what we mean by ‘one nation, same network’,”
Santos said.
According to him, new technological interventions give the company opportunity
to offer innovative data services that will be opened in different areas.
On the same occasion, Rashid Said of Arusha was awarded one million talking
seconds for being the one millionth customer of Vodacom.
back to headlines
Companies donate generously to Telefood fund
By Salome Mtunguja
The chairperson of Equal Opportunity Trust Fund (EOTF) Mama Anna Mkapa, on
behalf of her husband President Mkapa, on Saturday presented a cheque worth of
Tsh one million as donation to the National Telefood Committee.
Mama Mkapa said the donation was for the Telefood Fund, which provides
financial support to small-scale peasants in the country.
She commended rural women for carefully managing and utilising funds provided to
them by the Telefood Committee, although most of them lack formal education,
entrepreneurship, expertise and at the same time shoulder the major burden of
their families.
Apart from the donation from the President, other institutions that donated to
the Committee include Standard Chartered Bank that contributed Tsh. 500,000,
Tanzania Breweries Limited (TBL) that also contributed Tsh.500,000 and Simply
Computers that contributed US$ 500 (about Tsh. 610,500).
The First Lady thanked the Ministry of Agriculture and Food Security for the
technical support provided by their agricultural experts to peasants.
Telefood hosts the event annually in the country as a fund-raising activity to
facilitate projects run by small scale peasants.
FBME enjoys largest net asset base
By Timothy Kitundu
The Federal Bank of the Middle East (FBME), which commenced its
operations last year, has emerged as a leading bank with largest amount of net
assets totalling Tsh.59.18 billion, followed by NBC with Tsh.39.86 billion and
Standard Chartered Bank with Tsh.30.82 billion.
FBME General Manager, Jan Van Jaaren said in a statement early this week the
bank was proud of its accomplishment “however they had a lot of hard work ahead
of them and many goals they wish to achieve in the near future”.
“Leading the industry with net assets only means that we need to work harder to
maintain the top position and stay ahead of the competition,” he observed.
According to Jaaren, FBME entered the market with a capital base of over Tsh.50
billion and has been the first Tanzanian bank with a network overseas branches.
Currently, the bank has three domestic branches in Mwanza, Dar es Salaam and
Zanzibar.
He said, FBME might be new to Tanzanians but having an experience of over 50
years of international banking makes it strong.
“This coupled with the bank’s expertise in private, corporate, Internet,
investment and correspondent banking as well as trade finance and card services
places them in a prime position in the Tanzanian financial sector,” he added.
FBME has a base of Tsh.460.68 billion in deposits, Tsh.212.56 billion in loans
and advances and Tsh.59.18 billion in net assets making it one of the top
performing banks in Tanzania.
Netherlands pledges support for private sector growth
By Angela Mazula
The Netherlands government is providing about Tsh. 58 billion a year to support
the Poverty Reduction Strategy (PRS) initiative via sectoral and general
budgetary support.
Revealing this at the signing ceremony of the Fibre Optic Cable project in Dar
es Salaam this week, Bernard Berendsen, Netherlands’s Ambassador to Tanzania,
said his country will continue to support Tanzania over the coming years in the
context of the New National Strategy for Growth and Reduction of Poverty.
He said may sectors have benefited from the development cooperation viz. health,
especially HIV/AIDS programmes, education and private sector development.
The Ambassador stressed, “I believe the private sector is the engine of economic
growth and the only way we can eradicate poverty, that is why we together with
other donors are supporting the government of Tanzania.”
Berendsen said some of the programmes supported by his government will improve
and help create enabling environment for the private sector and improve access
to capital.
Rudy Huysen, managing director of Tanzania National Electric Supply Company
(TANESCO), said under the Optical Fibre Cable Communication System Project, a
number of communication needs of the company will be met.
He explained the scope of work for phase one included installation of the
communication system at places in Dar es Salaam, Morogoro, Kidatu;
Kihansi-Iringa-Mtera- Dodoma-Singida; Chalinze-Hale-Tanga and
Hale-Kiyungi-Arusha.
Huysen said after completion of the first phase, 16 cable spare fibres will be
leased to communication service providers who will operate the optical fibre
system on communication basis.
Stanchart takes lead in investment promotion
By Angela Mazula
Tanzania has been called on to work harder if it is to lure substantial Foreign
Direct Investment (FDI) - the current level is too low to spur growth and
development.
Speaking in Dar es Salaam last week, Chief Executive Officer and Managing
Director of Standard Chartered Bank Hemen Shah said the task should not be left
to the government alone.
Shah added that Standard Chartered had begun working closely with the government
to attract inward investment. “We are tying to leverage our global network to
see the possibility of using it to convince some of the group’s clients to come
and invest in Tanzania,” he noted.
Shah said that the focus of the initiative is on the textile industry where
target markets are Hong Kong and India.
The Standard Chartered group operates in more than 50 countries in the Asian
Pacific Region, South Asia, the Middle East, the United Kingdom (UK), and
Americas; it is one of leading international bank in emerging markets.
In its drive to lure investors, the group plans to organise an investor’s
conference in the UK before the end of the year and focus of the forum would be
on agriculture, tourism and industrial sector, a senior official of the bank
said on condition of anonymity.
“We also plan to take a Tanzanian delegation to Hong Kong to explore the textile
industry there and meet with leading stakeholders,” she added.
Preparations to forge lasting relationship with East and Asian markets have
reached an advanced stage, she explained.
Wildlife Act being violated, say exporters
By Angela Mazula
The government has asked to strictly enforce the Wildlife Conservation Act, 1974
- passed along the lines of the Convention on the International Trade on
Endangered Species (CITES) - by the Tanzania Wildlife Exporters Association
(TWEA).
Speaking at the TWEA annual general meeting held at Luther House in Dar es
Salaam yesterday, one of the members, Willy Kusaga of Tegeta Avifauna Farm, said
some members of the Association were violating the Wildlife Act and regulations.
He said while the authorities issue capture permit fee and charge trophy export
fees, many traders were using illegal means to export trophies and, in many
cases, officials are being bribed to increase members’ quota or to allocate more
than one type of trophy.
Lamented Kusaga, “this hinders the growth of our business, which keeps dwindling
year after year, and the authorities will still demand license fees from us.”
According to him, those friendly with the authorities easily get permission to
export eagles, saddle bill stork, crowed cranes, while others are not given the
opportunity.
Speaking on behalf of the Permanent Secretary in the Ministry of Natural
Resources and Tourism, official Juma Kayera said the trade on government
trophies should be carried out by Tanzanian themselves so as to tackle poverty
and benefit exporters, the government and the public in general.
“The government having noted the importance of this trade to exporters has fixed
10 percent of the total export proceeds as capture fee,” he added.
He said the government will address the problem of illegal trading in trophies.
Kayera explained the government was in the process of increasing the animal
quota next year and a new list with additional animals, totalling 124, will be
taken to the allocation committee.
back to headlines
Mkapa challenges journalism institute
By Kizito Makoye
President Benjamin Mkapa has challenged the Department of Journalism and Mass
Communication (IJMC) of the University of Dar es Salaam to consider taking
advantage of journalists from India.
Mkapa threw the challenge yesterday while bidding farewell to the outgoing
Indian High Commissioner, Dinesh Jain at a short ceremony held at the State
House.
The President said this is the right time for the IJMC to invite professionals.
They could assist local journalists enhancing their skills and knowledge.
The Indian High Commissioner supported the argument, adding that the move would
enable journalist to foster their profession.
Moreover, Mkapa said the government is in close touch with the Indian government
to accomplish two issues: the establishment of a hospital to treat heart
diseases and the running of modern farming in the country.
The hospital would assist in reducing the cost of sending Tanzanian patients to
get treated abroad. The hospital would also give more patients opportunities to
get treatment in the country.
About agriculture the President said Tanzania needed to gain the necessary
momentum to establish modern farming in collaboration with experts from India.
Meanwhile the Indian High Commissioner said Tanzanians stressed the importance
of downsizing the bureaucracy to invest in modern agriculture and to attract
foreign investors.
Gaming conference opens in Dar
By Angela Mazula
The Gaming Board of Tanzania will hold a 2nd Annual Conference of Gaming
Regulators Africa Forum (GRAF) over the weekend.
The meeting will address various matters in the gaming industry.
Speaking with the press Tarimba Abbas, the Director General of GRAF said the two
day conference at the White Sands Hotel and Resort will be officially opened by
the Minister of Finance Hon. Basil Mramba and eight papers will be presented for
discussion.
Abbas added that the discussion will include the promotion of cooperation
between GRAF members and the sharing of practical experiences, status of
regulation and licensing.
The management system, he said, is important as a monitoring and management tool
for the operators and regulators as well as for the social-economic impact of
gaming in Africa.
The delegates will also deliberate on the relevance of controlling gaming and
taxation and promotion of responsible gaming and the future of gaming technology
will also be discussed.
Over 70 delegates are expected to attend the conference from South Africa,
Kenya, Cameroon, Botswana, Zambia, Malawi, Swaziland, Mozambique and Zimbabwe.
Abbas said the delegates are going to promote harmonisation and mutual
recognition of standards, contribute towards the enhancement of economic
development and promote responsible gaming.
back to headlines
By Business reporter
Celtel Tanzania Limited, the country’s fastest growing mobile phone company was
announced as the Most Respected Telecommunications and ICT Company in Tanzania
at a function held at the Royal Palm Hotel in Dar es Salaam last week. The Dar
es Salaam event followed the award giving ceremony in Kampala, Uganda.
The ‘East Africa’s Most Respected Company Survey’ was conducted by
PriceWater-HouseCoopers and Nation Media Group and the results follow detailed
submissions and votes from Tanzania’s leading business community.
The survey has been running for five consecutive years and has become a
prestigious award among leading companies in East Africa.
400 businesses were approached in the survey and were asked to identify the
companies in each sector that they feel represent strong customer care,
professional management, innovation, courage, employee care integrity and social
responsibility.
Speaking in Dar es Salaam recently, the Celtel Managing Director, Steve Torode
said, “We are truly honoured and delighted to be chosen as leading
telecommunications operator in Tanzania by the business community.
We entered this market as the fifth mobile operator and therefore our team here
in Tanzania is extremely proud of such an award and recognition from such
respected leading business people,” he said.
Torode thanked all those who in one way or another had contributed to the
achievement realized since entering the Tanzanian market. He further extended
his gratitude to the national dealers, valued customers and the Celtel team.
He said that the honour of the award was not attributed to an individual or part
of the team but every one involved. “We have to continually ensure that we
exceed our customers and the market expectations,” he said.
He commended all other companies that won awards in their respected industries
and in particularly Safaricom Kenya who were recognized as the Most Respected
Telecommunications and ICT Company in the entire East African region.
Lack of land titles irks sisal growers
By Nestory Ngwega, Tanga
Excessive taxation on tools of production and farm fuel, lack of land titles and
high power tariffs are the major constraints facing the sisal industry in the
country.
This was disclosed by the chairman of Tanzania Sisal Association (TSA) Damian
Ruhinda at an international workshop of a project on product and market
development of sisal, held in Tanga recently.
Ruhinda said although the government had started to take some impressive
initiatives for the development of agricultural sector such as reducing land
rent, more needs to be done for the sisal industry.
The industry, he observed, needed a strong partnership with the government to
tackle its problems.
Ruhinda said the sisal industry in the country had suffered a lot already and
could not compete with heavily subsidised imports from other sisal- producing
nations.
Singling out the land title problem, he said, even seven years after the sisal
farms were privatised to them, Tanzanian nationals have yet to be conferred land
titles.
Lack of land titles meant the sisal growers could not secure loans from
financing institutions, leading to capital crisis and hindering expansion plans,
Ruhinda pointed out.
Ruhinda’s observations were strongly backed by High Court judge of Tanga John
Mkwawa, who said political support was crucial for the development of the sisal
industry.
The workshop was opened by Vice President Dr. Ali Mohammed Shein, who urged
sisal growers not to export raw material alone and instead add value and export
finished goods to make the industry more profitable.
Six regions to grow 300,000 trees
By Merline Mhamaka,
Morogoro
A total of 300,000 trees of various types will be grown in six regions of
Tanzania Mainland by the end of next year under an environmental project of
Four H. Tanzania Corporation, as per its five-year development programme
(2000-2005).
Four H Tanzania Corporation Coordinator for the Central Zone, John Oswald said,
the objective is to make sure every member grows two trees annually.
Oswald made the statement at a seminar to train Four H Tanzania executives and
enable them train their members at district levels.
His organisation, Oswald said, had 30,000 members in three zones- Tanga;
Central, which includes Morogoro, Mbeya and Ruvuma regions; and the Northern
Zone comprising Arusha and Manyara regions.
Four H Tanzania Corporation, based in Tanga, was officially established in the
country in 1993 to help in the development of the ‘education for self-reliance
policy’ of the Ministry of Education. It has been helping provide vocational
training to youths and empower them with productive skills.
Under the project, youths of between six and 25 years are taught how to devise
various small-scale projects for individuals and groups. They are also persuaded
to grow more trees, especially through the school clubs, where each is
encouraged to grow a tree and take care of it yearly.
To empower the youths, Four H Tanzania in cooperation with Canadian World Youth
Organisation has started an exchange programme between the two countries.
Fourteen youths, who are Four H Tanzania members, have benefited through
exchange services.
Army camps contribute to HIV infections
By Beldina Nyakeke,
Musoma
Areas around Tanzania People’s Defence Forces (TPDF) camps are among those rife
with HIV infections in Mara Region.
Speaking to councillors of Korogwe Town Council (Tanga Region), a tutorial
officer of the National AIDS Control Programme Ernest Ndiege named Makoko Ward
in Musoma District which has a JWTZ camp as among the areas where much efforts
to educate people on AIDS infections have been directed. He was speaking at the
Nyasho Consultancy and Counselling Centre in Musoma.
Ndiege said many areas surrounding factories, fisheries, mines and those
adjoining neighbouring countries, are also rife with HIV infections.
Nyasho Consultancy and Counselling Centre, he said, has selected 60 villages in
12 wards of Bunda, Musoma Rural, Musoma Urban and Tarime districts, for AIDS
education.
Ndiege, however, said, the number of HIV infections was not as great as people
think and that women are the worst affected.
Finnish grant for forest programme
By Kim Aidan, Morogoro
The Finnish government has donated Euro 340,000 to support the implementation
of national forest programme starting in July next year.
National forest programme coordinator Mathew Kiondo revealed this at a three-day
district planning workshop on forest conservation and management at Oasis Hotel,
which drew over 86 participants from the programme pilot areas across the
country.
Kiondo said the ten-year project will be carried out in two major phases, one
being the participatory phase commencing from July 2005 and the second one will
be the implementation phase, which will start soon after the participatory phase
is accomplished.
He said about 15 districts will benefits from the project in six regions. The
districts include Lushoto, Handeni, Pangani, Korogwe, Kilindi, Rufiji, Liwale
and Nachingwea.
Others are Ruangwa, Newala, Mtwara Rural, Mbinga and Ulanga in Morogoro, Tanga,
Ruvuma, Mtwara, Lindi and Coast regions.
The participants in the workshop included regional administrative secretaries
from the regions concerned, district secretaries from the 15 programme districts
and district council treasurers from the district pilot areas.
The participants were trained on funding priorities and budget ceilings in
forest management.
Farmers invade natural forest reserves
By Merline Mhamaka,
Morogoro
Over 100 farmers have invaded natural forest reserve areas at Mdindo
and Nyandidi in Mchombe village in Kilombero district of Morogoro Region. They
are said to have caused great environmental degradation, felling trees and
setting huge tracts of grassland on fire for their agricultural activities.
However, the farmers claim they are farming the area with the permission of the
local village government while the latter refutes the claim.
Some residents have asked Kilombero district authorities and the regional
government to intervene and stop the village government from apportioning the
forest area and allowing farmers to encroach on natural forest reserves.
Some of them told The Express they were surprised by the act of the village
Government to allocate forest reserve areas that have been under villagers’
protection for many years, while the village has extensive grasslands
and valleys suitable for farming and lying idle.
They fear that if the forests continue being cleared, rivers like Njagi, Ang’ula
and Mweji which are the tributaries of Mngeta River and water sources for the
village, will be affected.
When this reporter visited the areas, he saw trees being felled, forests being
cleared and blazing grasslands - all being done by farmers.
People who live near the forest reserves when interviewed said, in the past,
when the reserves were properly attended to, some wildlife such as buffaloes,
elephants, antelopes, hippos and other animals lived in the forest area, but
after the degradation they have moved out.
Efforts by this reporter to get comments from the Village Executive Officer
(VEO) and the village chairman were fruitless as the two leaders were not in
their offices, which were closed.
When Mchombe Ward Executive Officer (WEO) Acrey Mhenga was reached for comment,
he said he had no information on the issue as he had been in the ward only for a
few days, after being transferred to the new station.
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