NMB bidders
meet today
By Express Reporter
A conference of pre-qualified bidders in the National Microfinance
Bank (NMB) divestiture process, organised by the Presidential Parastatal Sector
Reform Commission (PSRC), begins today.
According to a PSRC statement availed to The Express yesterday, the three-day
conference that will be held in closed doors will deal with technical issues
pertaining to the divestiture process. It will take place at the Golden
Tulip Hotel in Dar es Salaam with reporters only allowed to cover the opening
session.
The PSRC announced in November this year that out of the seven investors and
investor consortia that had submitted their pre-qualification applications,
five had been short-listed including: Rabobank Nederland, Akiba Commercial Bank,
First Rand Bank Limited (South Africa) Standard Bank Group Limited (South
Africa) and Standard Chartered Bank (T) Limited (Tanzania)
According to the Commission, the evaluation criteria required that only
commercial bank investors can be leaders of approved investor consortia and that
non-bank investors can only invest as members of a bank-led consortium.
A statement released last month said pre-qualified investors had received the
Information Memorandum and were conducting a comprehensive examination of
information about NMB (called “due diligence”), which is available in a “data
room” set up specifically for the purpose.
The process would enable investors to prepare bids for the purchase of 49 per
cent shares in NMB. The bid submission date is February 2, 2005.
According to the statement, pre-qualified commercial bank investors that are
yet to form consortia were required to form consortia when submitting their
bids in order to comply with the government strategy.
The government believes that NMB, which serves the people across the country,
needs the best possible strategic investor to ensure that the bank continues to
maximise its outreach and serve the underserved.
Tanzania makes a beeline
for Chinese tourists
By Apolinari Tairo
A delegation of seven Tanzanian government and business officials is
participating in the first World Tourism Marketing Summit (WTMS) in China,
lobbying to attract Chinese tourists to visit Tanzania’s unique attractions.
The Tanzanian delegation left the country for China last week to join 450 other
tourism officials and executives from China and other countries in Nanjing city,
capital of East China’s Jiangsu Province where the WTMS is taking place.
Marketing officials from the Tanzania Tourist Board (TTB) told The Express that
the Tanzanian delegation is led by the Permanent Secretary in the Ministry of
Natural Resources and Tourism, Solomon Odunga.
Other members in the delegation include senior executives from TTB, Ngorongoro
Conservation Area Authority (NCAA), Moshi-based Zara Adventures Ltd, Sea Cliff
Hotel and the Tanzania Embassy in Beijing, China.
The Tanzanian delegation, which is expected to wind up its tourism marketing and
lobbying campaign in Shanghai this week, is trying to take advantage of China’s
fast developing tourism, attributed to the fast moving economic reforms that
began in 1978.
China is now the world’s fastest growing tourism market. The tourism sector
generated for the first time US$10bn in 2002.
Speaking at one of the Summit sessions, Odunga stressed the need for developing
environment-friendly tourism and good management of the sector, and the
government’s responsibility to meet tourism demands.
The Summit is an integral part of the World Trade Forum and a United Nations
Global partnership Platform used to forge new marketing relationships and
strategies for promoting tourism, reports from the summit to The Express
revealed.
WTMS was established to respond to the challenges raised by the World Tourism
Organisation, the World Travel and Tourism Council and the “10+3” (ASEAN
countries plus China, Japan and South Korea) ministerial conference in China.
Facilitated by the World Trade University, the one-week summit has come up with
a lot of issues related to the power of marketing as a tool to boost the
development of tourism worldwide, enhance cooperation between China and the
global tourism industry, and to facilitate new techniques in marketing for
outbound, inbound and domestic tourism.
The summit provided an opportunity to tourism entrepreneurs and marketing
executives worldwide to acquire solid understanding and relationships that will
help market and promote destinations and attractions around the world, reports
from the summit said.
Women urged to form economic
groups
By George Michael
Women should form small groups and contribute money to those groups
if they are to avail of loans for small businesses and boost their incomes.
This was suggested by the chairman of Makumbusho ward in Kinondoni District,
Leonora Samlongo, in an interview in Dar es Salaam yesterday.
“Women should join hands to bring development. Women in this area are very
backward, their per capita income is very low. Individual efforts are not
enough, joint efforts are needed so as to bring about sustainable development in
the village and reduce the level of poverty,” she said.
The women in the area plan to set up a handicrafts project, which they believe
will increase their income. They also plan to take up commercial farming to
create employment and ensure food security, said Samlongo, adding a farm will
soon be set up in Ifakara District in Morogoro Region.
Apart from the commercial activities, the women are assisting orphans especially
those children whose both parents have died of HIV/AIDS.
“The government should assist women and meet their demands. For instance, wee
need two tractors for starting agricultural projects in Morogoro region,”
explained Samlongo.
The women of the area have formed a group of 40 and each member contributes to
the joint fund that is used to issue loans.
Value of foreign
companies’ local inputs low: Report
By Angela Mazula
A key indicator of the local
embeddedness of foreign companies and the potential for technology transfer, is
often seen in the value of the input source locally.
According to a recent report of foreign investors’ survey, released by the
United Nations Industrial Development Organisation (UNIDO), said about 30 per
cent of all respondents indicated that they were sourcing less than ten per cent
of the total value of their final product locally.
The report said nearly two thirds of the respondents were sourcing less than
half of the value of the final product locally, whereas about 20 per cent
indicated they were sourcing more than 75 per cent locally.
Agriculture, food and beverage companies were in this category; large-export
oriented firms in the wearing appeal sector are still sourcing most of their in
puts elsewhere, the report said.
Companies that invested in the region after 2003 had a significantly smaller per
cent age of inputs sourced locally compared to companies that had been
established for a longer time, the survey revealed.
‘Local firms
must boost quality to survive’
By George Michael
Local industries should produce high quality goods and have
attractive packaging to gain access to international markets.
This was revealed by the United Nations Industrial Development Organisation
(UNIDO) Country Representative, Dr. Felix Ugbor, at the World Industrialisation
Day celebrations in the city recently, whose theme was to strengthen productive
capacity within the framework of NEPAD.
“Developed countries set high standards which should be met by those who wish to
sell their products in international markets. Producers should get the right
information about standards which are set by these markets. What they need is
quality and attractive packaging. Producers should strive very hard to meet
these standards so as to penetrate those markets,” Dr. Ugbor said.
According to him, the government should transform the Board of External Trade
(BET) into an export promotion agency whose main task is to promote exports.
President Benjamin Mkapa said at an Investor Roundtable meeting organised by the
Tanzania National Business Council (TNBC) in the City recently, that the great
challenge for the country was to increase the volume of exports in order to
realise tangible and meaningful economic development towards the attainment of
Millennium Development Goals (MDGs).
“What we are getting from exports is not enough. Exports are very important in
stimulating economic growth. We need to increase exports, especially of
value-added agricultural products,” he stressed.
“There is much more to export promotion than organising trade fairs. Local
industries should increase productive capacity so as to meet the demands of
local and international markets. Our products must be good so as their to be
competitive in the international markets,” Dr. Ugbor said.
UNIDO is helping the Tanzania Investment Centre (TIC) attract more foreign
investors to invest in industries, particularly in Export Processing Zones (EPZ)
so as to enable them export more and create more employment opportunities for
Tanzanians.
The Tanzania Bureau of Standards (TBS) has already bagged international
accreditation, and will ensure local products meet international standards.
Beatrice Mutabazi, the Deputy Director of TBS, said in an interview that local
producers should meet TBS standards in order to get access to international
markets. Tanzania has a comparative advantage in many products such as textiles,
leather and agro-products.
“There is a microbiology lab which is accepted internationally. This will make
our products competitive. UNIDO is expecting financial support to rehabilitate
metrology lab. The first quarter of next year, the lab will be ready,” Dr. Ugbor
said.
There is a need to build capacity in the Ministry of Industries and Trade to
enable it implement the Small and Medium Entrepreneurs (SMEs) development
policy, he added.
Mike Laiser, the Director General of Small Industries Development Organisation
(SIDO), said the SME sector contributes 40 per cent to the GDP and industrial
sector nine per cent, up from eight per cent last year. “The government should
put more effort to increase the contribution of the industrial sector to the
national economy so as to speed up growth,” he observed.
“SIDO will organise exhibitions for SMEs to promote their products and therefore
be able to gain access local and international markets. They will also get good
orders and meet other traders and share business experiences,” he said.
EPA may hurt Tanzanian
economy
By Express Correspondent
The exact structure of an Economic Partnership Agreement (EPA) will
be agreed upon in a negotiation process between the European Union (EU) and
African Caribbean Countries (ACP).
Speaking in Dar es Salaam last week, Zitto Kabwe of the Friedrich Ebert Stiftung
(FES) said if Tanzania allows EPA to enter the country, its national economy
could suffer a blow.
He said this was because products made locally cannot compete with international
competitors, including neighbours. He said small industries in Tanzania may lose
out in the free market arrangement.
However, another expert, Sylvia Hangen said during the negotiations the level of
development and the social-economic impact of trade measures on the ACP
countries will be taken into consideration.
She said ACP countries will receive adequate capacity building support to
prepare for the negotiations and the competition challenging ACP economies.
Hangen explained ACP countries structured the negotiations around market access,
agriculture, service, development issues, trade-related and legal issues.
She said the East and Southern African Countries were not ready to open
negotiations at regional level before 2005. The delay was caused because the
countries could not decide in which regional configuration they should negotiate
an EPA with the EU to best promote their own interest.
back to headlines
Workers’ union calls for
increased wages
By Express Correspondent
The government has been called upon to increase the workers’
salaries to help them overcome economic hardship, the Researchers Academic and
Allied Workers Union (RAAWU) has revealed.
Speaking at their 10th anniversary celebrations at Karimjee Hall, Adelgunda
Mgaya, Permanent Secretary of the Union, observed a big number of workers still
lived below the poverty line due to their meagre earnings. She said insufficient
income had resulted in both poverty and corruption.
She noted that RAAWU actively promotes the formulation and implementation of
voluntary agreements between employees in order to formalise various classes on
work condition, incentive schemes and disciplinary procedures.
Asha-Rose Migiro, Minister for Community Development Gender and Children, said
the Union would continue to work as a civil society organisation.
“RAAWU is a worker’s refuge because it helps us in different ways to change some
of the laws detrimental to their interests,” she commented.
Privatisation
will be good for Dar port: THA chief
By Angela Mazula
A key element in the government’s plan to boost the economy is the
privatisation programme that includes terminal operations at Tanzania’s main
port, the Director General of Tanzania Harbours Authority (THA) Samson Luhigo
has revealed.
Speaking in Dar es Salaam this week, Luhigo told The Express that the government
is well aware that an efficient port service depends on efficiency throughout
the transport chain.
He said the government had begun restructuring key transport service providers,
such as the port authority. the railways and shipping agencies, adding, our view
is to encourage private sector participation in the ownership and management of
transport service.
Luhigo said the process of privatisation of the Dar es Salaam port is due to be
completed by the end of 2006. The first area to be privatised was the container
terminal and operations are undergoing a review and bidding procedure.
He noted some consultants that helped in privatisation also developed an
economic environment to promote privatisation and provide advisory and support
service throughout its implementation.
According to Luhigo, the privatisation of that container terminal had showed
that when the rest of the port is privatised, the result will be an efficient
and cost effective service.
Busega
irrigation scheme a reality
By Sebastian Gabunga, Magu
Busega Irrigation Scheme in Magu District, Mwanza Region, is on the
way to its revival, after the construction of a 50 cubic metre (cm3) water tank.
The irrigation scheme is located at Kalemela village and is being implemented
with money from the Central Government and the people’s workforce. The scheme is
projected to cost Tsh. 47 million upon its completion.
This information is contained in a brief report of implementation of the
project, which was recently read out to Magu Member of Parliament (MP) Dr.
Raphael Chegeni, when he toured the district to inspect development projects
undertaken in his constituency.
Dr. Chegeni, in his tour, was accompanied by the Director of Department for
International Development (DFID) of British High Commission in Dar es Salaam,
David Stanton, and assistant projects officer in the Department, Aaron Komba.
Others on the tour were Magu District Administrative Secretary, Julius Samwel,
District Council Executive Director Lukas Buremo, together with various
departmental heads of Magu District Council.
In the project implementation report on the irrigation scheme; which was set up
in 2002, Magu District Planning Officer Mihayo said, up to the time of the
visit, a total of Tsh. 26 million had been spent on the construction of the
water tank, including laying water pipes to pump water from Lake Victoria.
He explained that Magu District Council is waiting to receive Tsh. 21 million
from the central government to be able to complete the mega irrigation project,
the first of its kind in the district.
The scheme once completed will help irrigate 60 hectares of rice and vegetable
farms, he said, adding, initially only 40 hectares will be cultivated.
In the first phase of the irrigation project, which will start any time next
year, Mihayo said, the project will boost the district’s food self sufficiency
by 72 percent.
Speaking on the project, Dr. Chegeni said the project had been proposed by
wananchi and he requested the government to help in its implementation.
Mr Stanten lauded the government for supporting people’s efforts and promised
help if required.
Elephants destroy 40
acres of crops in Bunda
By Sebastian Gabunga, Mara
A heard of 20 elephants invaded the villages of Maliwanda and Mihale
in Hunyari Ward of Bunda District, Mara Region, and destroyed 40 acres of crops.
According to Hunyari Ward Councillor Sumara Chihatara, the elephant wreaked the
havoc last weekend.
The elephants who, he said, were believed to have escaped from Serengeti
National Park, destroyed cassava and sweet potato farms.
The destruction of the crops, he added, could cause great shortage of food to
residents of the villages as the crops were ripe for picking .
This was the ninth time, the Councillor observed, that elephants had invaded
villages and destroyed farm crops this year. The first time was in January this
year, with more intrusions taking place in March, May and September, Chihatara
said.
The Ward Councillor has requested the Bunda District Department of Natural
Resources to deploy rangers in the areas to control the elephants.
Commenting on the issue, Bunda District Wildlife Officer Cosmo Matenya said,
controlling the animals in the said areas is very difficult as the elephants
invade the farms during the night.
Nonetheless, he added, his office would do all possible to control the elephants
and control further damage.
Langali–Nyandira highway cost 690m/-
By Merline Mhamaka, Mvomero
A total of Tsh. 690 million has been spent on the rehabilitation of
the 5.4km Langali-Nyandira Highway in Mgeta Division of Mvomero District,
Morogoro Region.
Reporting on the rehabilitation work to Minister for Cooperatives and Marketing
Clement George Kahama and to French Ambassador Emmenuelle D’achon, who are
sponsors of the project, Richard Mwakasika of ITECO Consult (T) Ltd. said work
on the highway started in September, 2003.
The rehabilitation, Mwakasika added, was expected to be completed in June this
year, but due to various reasons, including rain, the project was delayed by two
more months and completed in August.
Before rehabilitation, he explained, the road was accessible, but with
difficulties, especially during rainy season. To make it accessible all the year
round, the feasibility report on the road’s design, which was undertaken by
ITECO, took many factors into consideration, including the involvement of
residents to identify the rough places where irrigation water passes.
Due to shortage of funds the road is not being rehabilitated often. Rolling
drifts have been constructed instead of culverts which need to be opened often.
To control this situation, water channels have been constructed along the road,
Mwakasika observed.
back to headlines
Good hotels can boost
tourism, says Same DC
By Heckton Chuwa, Same
Same District Commissioner Ferdinand Mkude has challenged
businessmen to construct hotels of international class to attract tourists to
the area.
Mkude was addressing guests at a fund-raising meeting organised by Same Saccos
to help the construction of Same stadium.
Citing the example of Mkomazi game reserve, Mkude said the district had many
tourist attractions but tour operators were reluctant to bring in clients due to
poor accommodation facilities.
He congratulated Same Chamber Saccos for its decision to construct the stadium
as an investment and also on its success in serving its members.
He urged the Saccos to advance its services by establishing a local people’s
bank.
“The bank will benefit and improve the lives of your members as they will be
able to get soft loans,” he noted, saying there are many who would like to
expand their businesses but can’t get loans as they lack assets for collateral.
At the fund-raising function, Tsh.2,131,000 was raised while the stadium is
expected to cost Tsh. 900 million.
Kilombero
needs 152m/- for road repair
By Merline Mhamaka, Ifakara
The Kilombero District Council in Morogoro Region plans to spend Tsh. 152
million from the Roads Fund to repair roads that are in a bad state.
Kilombero District Council Executive Director Theresia Mahongo told a Regional
Roads Board meeting that the money is to repair ordinary roads 55 km in length,
at an estimated cost of Tsh. 27,740,000; rough roads of 13.1 kilometres at a
cost of Tsh. 40,460,000 and other special periodic repairs of roads of six km
long at a cost of Tsh. 32 million.
Also, she said, the Council planned to spend Tsh. 9,692,500 from Irish
International Development Agency (DCI) for implementation of a variety of jobs,
such as formation of Roads Committees in 81 villages of the district, which will
ensure good use of roads.
The funds will also be used to repair a rough road (Mpanga-Tawela), which will
be undertaken jointly by the Irish Government, Tanzania National Roads Agency
(TANROADS) and Kilombero District Council.
Funds amounting to Tsh. 4,900,000 have been set aside for road design and
preparation of true costs to maintain them.
Maasai
herders anger farmers
By Kim Aidan, Morogoro
District governments, regional government and the police force in
Morogoro Region have been urged to intervene and stop Maasai community herders
feeding their flocks in farmers’ fields as tensions run high between farmers and
the herders in Changalawe village in Mvomero district.
Speaking to reporters in Morogoro Municipality last week, the owner of
Lusangasanga Diary Farm which is located in the same village, Faraj Mbaraka,
said although Morogoro Regional Commissioner Stephen Mashishanga had prohibited
herders from feeding their flocks in the fields, the directive had been flouted
by the Maasai.
For a long time, Faraj said, the herders’ cattle had been invading his farm and
destroying his crops. Complaints to the police have proved futile as there
aren’t enough police men to keep a guard.
After one event of farm invasion, residents had slaughtered a cow belonging to a
Maasai herder.
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