Mining industry in the continent hit by AIDS
By Timothy Kitundu
AIDS epidemic in the continent is hurting mining business badly.
While most of the companies scattered through the countries claim that
productivity has dropped drastically, smaller companies are yet to formulate
intervention programmes which is hurting the situation even more with the
disease spreading unchecked in the unorganized sector.
A survey released last week showed that over 60 per cent of South African mines
reported lower profits due to the disease. More than 5 million of South Africa’s
45 million people are infected with the deadly disease, the biggest caseload in
the world.
Sixty two per cent of the mines, 48 per cent of the financial services
companies, and 42 per cent of the manufacturers surveyed said the epidemic had
hurt profits by reducing labour productivity, increasing absenteeism and has led
to higher employee benefit costs. Harmony Gold, the world’s sixth-largest gold
producer, had indicated that HIV/AIDS related expenses could cost the company
between US$2 and US$5 about Tsh.2,200 and Tsh.5,500 respectively for every ounce
of gold produced.
The survey, covered more than 1008 companies in seven industries mining,
manufacturing, retail, wholesale, motor trade, financial services, building and
construction. It was conducted between July and August this year and expands
upon on a more limited sectoral survey carried out last year.
In a communiqué circulated by the Johannesburg-based African Economics Editors
Network (AEEN) South Africa, most big mining groups have AIDS programmes in
place, but a new handbook launched last week will be especially targeted at
smaller players such as contractors.
“The large mining sector has been at the forefront of fighting the disease, but
a lot of their partners have not been involved,” said Rose Smart, author of the
guide sponsored by the World Bank’s International Finance Corporation.
The communiqué cites the example of the mining sector in South Africa, the
world’s largest producer of gold and platinum, as one of the largest employers
in the nation with 455,000 workers.
The communiqué argues that a recent survey showed that the sector was not taking
the issue seriously as it should. Small mining groups scattered through the
continent are causing a problem to the HIV / AIDS prevention programmes as they
refuse to have a system or a programme to help the victims and spread awareness
so people do not expose themselves to risk of contracting the virus.
“Most companies, especially medium-and small-sized ones, still do not regard it
as an issue,” said Clem Sunter, a former executive of mining giant Anglo
American and now head of a charitable arm of the group. Some big companies could
do better by making it a key strategic issue and including progress in fighting
AIDS in awarding executive bonuses, Sunter said.
The new guide, financed with a grant by the Canadian government, will be
distributed free to mining companies throughout Africa from January. It provides
a step-by-step plan to prevention, testing and treatment for employees
threatened by HIV/AIDS.
Labour migration invokes controversy
By Timothy Kitundu,
Arusha
The workforce in Tanzanian will not be affected by free movement of
labours through East Africa. Assuring this at the launching ceremony of the
ILO-EU/EAC Labour Migration Project for East Africa, the Minister for Labour,
Youth Development and Sports Professor Juma Kapuya claimed that it also opens
new opportunities for the Tanzanian workers to explore other markets.
The main objective of the project is to help East African countries to develop
appropriate policy framework for ensuring access to the labour markets and
supply of labour force. Other factors include the availability of employment and
imperatives of regional economic cooperation and development.
Kapuya told members of the press in Arusha on Monday that as regards the
project, “The free movement of persons, labour and services would not pose a
threat to Tanzanians,” he said.
“On the contrary, the EA Labour Migration will create a legitimate way of
enabling EA residents to work in the three EA member states legitimately and
without fear of being intimidated,” he added.
“Most Tanzanians are not aware that a huge number of Tanzanians work in various
sectors in Kenya and Uganda but the number of Kenyans and Ugandans working in
Tanzania is not that high,” he pointed out.
He however, agreed that in the past, the Tanzanians have suffered in the
competition due to poor knowledge of English language. “But still there is need
to open up the borders so that Tanzanians can move freely,” he said.
“Migratory activities particularly labour are increasing but the destinations
are changing due to the developments that are taking place in each respective
country,” he clarified.
Within the EAC, there are a number of committees working on a number of issues.
One of such committees established under Article 104 of the EAC Treaty is on the
facilitation of the movement of Persons, Immigration, Labour /Employment and
Refugee management.
Tanzania, unlike the other East
African Community (EAC) member states is not sending its workforce abroad;
rather the country is being hit hard by labour inflow from Uganda and Kenya.
Although there are private employment agencies that send labour to the Gulf and
the Far East, Tanzania has no coherent tracking mechanisms of nationals going
abroad.
Anthony Rutabamzibwa, ILO Dar es Salaam Office Programmes Officer said recently
in Arusha that the national employment promotion services is in place but mainly
placing individuals with employment openings on the labour market.
The Kenya Minister of Labour and Human Resource Development, Dr. Newton Kulundu
said that the gains from labour migration are playing an important role in the
development of nations and in allocation resources efficiently.
In Uganda, Rutabanzibwa said, the government is promoting links with dispora
groups to encourage them to invest back home. Remittances of Ugandans working
overseas have been increasing and the government is supporting money transfer
organisations to facilitate this increasing phenomenon.
Energy company to invest in TZ
By Timothy Kitundu,
Johannesburg
Tanzania is among the African countries that will benefit from an
investment of about US$ 20 billion (Tsh.22 trillion) from Chevron Texaco, a
multi-nation company dealing in energy related projects, in the next five years.
The aim of the company is to reach a target of creating operating facilities in
over 50 African countries and build lasting relationships while working in the
energy industry to help support Africa’s economies and develop human resources.
Chevron Texaco Manager Health, Environment and Safety Manuel O. Gracas de Deus
told The Express in Johannesburg last week that the firm’s technical team was
already looking into the possibility of investing in Tanzania.
According to him, preliminary talks have already been held pertaining to the
investment initiative and consultation with the Tanzania Petroleum Development
Corporation (TPDC) was underway. “We are seriously looking at Tanzania,” de Deus
said.
He said that the company have already set a timeframe up to May 2005 to start
oil exploration in deep off shore in a total of 8 blocks. In case they emerge
winning bidders in the mentioned blocks including Tanzania.
“It is the advancement of technology that pushes the firm to opt for deep off
shore oil exploration,” he added.
As for the direct benefits to Tanzania, he said that the country’s opinion will
determine what will be for them, but definitely employment, taxes will benefit
the nation.
He further added that Chevron Texaco will be investing together with its
partners and that their concentration will be in the next four years with a main
focus in Southern Africa.
As for the Frontier regions investments will go to Angola and Nigeria where the
firm has been conducting operations.
Over 90 per cent of the firm’s employees in African countries are Africans as
one of the firm’s objectives is fulfill their honour to help turn promise into
progress for Africa.
Plans to attract investment in mineral sector
By Kizitto Joseph
The Tanzania Chamber of Minerals and Energy is planning to modify
its policy and restructure its programmes to attract more investors to the
country.
Chairperson Simon Mbilinyi said over the weekend in Dar es Salaam during the 10
year anniversary of the Chamber that the changes are aimed at enabling the
mineral sector to contribute to the growth of the national economy and
development.
Since 1994 the Chamber has grown to reach over 50 member companies.
Daniel Yona, the Minister for Minerals, who was the guest of honour at the
function said the mineral sector contribute substantially towards the
development of the national economy.
“The government will take different measures in ensuring the viability of the
mineral sector, such as introducing geological agencies,” he said.
Kibaigwa Crops Market collects 21.8m/
By Merline Mhamaka,
Dodoma
Kibaigwa Crops Market Company Board in Kongwa District in Dodoma
Region has collected Tsh. 21,889,000 between July and October this year.
In his report, the Market Board’s Manager, Jeremiah Mtangwa told the Village's
Markets Development Project Consultative Committee operating under the Tanzania
Farmers Network (MVIWATA) and sponsored by the French government, that he had
visited markets at Nyandira, Tawa, Kinole and Kibaigwa in Kongwa District.
Mtangwa said the revenue was collected from purchases of 21,062 tonnes of maize,
hiring of market compartments trading grounds, toilet and washing facilities,
use of weighing scales and fines from offences committed in the market area.
The Market Company had failed to implement the agreement signed with Kongwa
District Council, whereby the Market Company has had to pay the Council Tsh.
44,224,000 yearly as levy.
He further said that the Market Company collects an average of Tsh. 182,000 a
day, which does not cover its administrative costs or the implementation of the
agreement for the remaining months as the commercial season is coming to an end.
Adding, the Market Company is facing a problem with new markets being
constructed outside the its restrictions, which reduces its revenue as traders
avoid buying crops in the main market to evade paying levies charged by the
Market Company.
Mtangwa had advised Kongwa District Council, the market owners, to make sure the
agreement is taken into consideration, including controlling markets constructed
outside the Market Company area.
He also advised the Council to reduce the rate as many markets have failed to
pay the high levies.
The Villages Markets Development Project Consultative Committee members said
there was a need for the Council’s management to sit with market owners working
outside the Market Company.
Meanwhile, the Consultative Committee for the Village Markets Development
Project has advised councils and market boards under the project to make sure
both sides implement the relevant agreements to the letter.
This was revealed at the Committee’s Annual Conference held at the Vocational
Education and Training Authority (VETA) hall in Dodoma Municipality.
The Committee discovered that many markets have failed to reach their objectives
of collecting revenue and also failed to pay levies to councils as the markets
run at losses.
Tanzania National Farmers Network (MVIWATA) Chairman, Jeremiah Maina said the
emergence of markets outside the project markets could cause problems for the
farmers as most of their weighing scales are ineffective.
In the project markets, he said the scales are functioning properly and the
farmers therefore get the right prices for their crops and businessmen purchase
the products in safe places.
Increased security to promote tourism
By Joshua Mshana
THE government should improve the quality of services of the air
transport system and ensure safety of tourists in order to promote the tourism
sector and increase its contribution to the national economy, feels experts.
“In order to develop the tourism sector, we must improve the air transport
system and ensure safety of tourists. Terrorism attacks and threats can affect
the flow of tourists in the country. Therefore if they are assured of their
safety they will not hesitate to come to Tanzania,” said Chief Executive Officer
(CEO) of DAHACO, Gaudence Temu.
“The government is striving to increase efficiency of air transportation and
reduce the costs so as to enable more people to afford the costs and use the
transport more frequently. Rehabilitation and renovation of the airport
infrastructure, training of the workforce and the quality of services will be
improved step by step depending on the income of the Airport Authority,” Airport
Authority Manager, Prosper Tesha said.
Threats of terrorism in countries like Mombasa affects the flow of tourists
badly. “Development of the tourism sector goes hand in hand with the development
and advancement of the air transport system in the country. Tourists are using
air transport to move from one place to another such as to go to the national
parks, to climb Mount Kilimanjaro and other tourist attractions. So, the safety
in the air transport system and in airports is of crucial importance,” he said.
In order to ensure safety of the air transport, TCAA have declined to register
aircrafts which do no meet airworthiness requirements.
By Timothy Kitundu
Johannesburg
Borrowing money to meet internal demands is posing a threat to the
economy of all the African countries by weakening their foreign exchange
reserves and thus, hampering growth.
To avoid such a debt trap, the countries must discuss amongst themselves to find
the best possible option for borrowing money, feels experts.
“Most loans are accompanied by conditions which hurt the country’s foreign
exchange reserve,” claimed Professor Nixon Kariithi of the University of
Witwatersrand, Johannesburg, adding, “this makes the situation worse.”
“Borrowing should be confined to financing projects if the nations in question
want to achieve a quick economic growth,” he added.
Prof. Kariithi, speaking during a training session of Reporting Commodities
organized by the African Economics Editors Network (AEEN) pointed out
‘dollarisation’ process to be another danger to these small economies forcing
them to be pegged to the US$.
According to Prof. Kariithi, developed countries have an alternative whenever
they feel that their economies are weakening, they start using the coupon
whereby manufactured goods are consumed by the people and the economy grows
because goods are manufactured in the said countries.
On the other hand, he said, the coupon method for economic revival is not
effective in developing nations – as the provision of coupon will prompt people
to go for imported goods.
“This will just add employment for foreign manufacturing companies as local
goods are either too few or are not in the required standard to meet the
people’s needs,” he said.
He added that the countries in question will have to import more goods into the
country as a result local industries will need to cut down working shifts and
retrench workers instead of adding employees.
“These countries were in danger of facing foreign exchange shortages because of
the modes which are used by the government to control foreign exchange
reserves," he said.
IFAD withdrawals from irrigation projects
By Sebastian Gabunga,
Maswa
Buyubi and Iringa Agricultural Irrigation Project in Maswa District,
Shinyanga Region has stopped following the withdrawal of the International Fund
for Agricultural Development (IFAD).
The Fund claims that it no longer has the money to support the projects.
Following this decision, IFAD and Councillors in Maswa District Council have
requested the government to look for funds to run the projects.
According to the Councillors, the government in 2002 entered into an agreement
with Maswa District residents assisting the people in improving agriculture by
initiating a participatory irrigation development project (PIDP), especially for
rice cultivation.
This then motivated the people to participate fully in the construction of the
projects. “Considering the people had great confidence in the projects, they
will be completely discouraged after hearing the projects have no sponsorship,”
read part of the Councillors’ statement.
“To avoid discouraging the community, it is better for the government to take
over the running of the projects,” continued the statement.
The only scheme remaining the Bukigi Scheme.
|
Business News | Forex Week | Money Market | Corporate Report |
|
Business Opinion | Bank Interest Rates | Capital Market Focus |