FBME
starts Card Payment System
By Express Reporter
In its bid to improve customer satisfaction The Federal Bank of The Middle East
(FBME) has announced new payment set up infrastructure and other new services.
According to the statement availed to the express on Tuesday the bank is
entering in the country with Point of Sales terminals (POS) at the merchant
locations for the payment of goods and services.
The statement further said that the Bank would install Automated Teller Machines
(ATM’s) to facilitate 24 hour cash withdrawal and other related Banking
Services.
Bank’s Chairman Ayoub-Farid M. Saab, said that the Card Payment System
technology has two parts, Issuing of Cards, and Acquiring of merchant
transaction and mechant settlement.
The Bank has set up a wholly owned subsidiary called Tanpay Limited to handle
the infrastructure and merchant relationship of a Card Payment System in
Tanzania.
According to the statement Tanpay will ensure a secure, reliable and convenient
payment system environment. It is presently installing over 1,000 POS terminals
countrywide and over 20 ATM’s in strategic locations to be increased in due
course.
Tanpay will offer ‘merchants’ who sign-up with Tanpay, competitive rates,
complete training and handling of the POS terminals, assistance and merchant
support, and rapid payments.
Furthermore, Tanpay would offer a variety of loyalty programmes to merchants
designed to increase the merchants’ volume of business.
The Chairman said “the card business has become the preferred consumer payment
method throughout the world and is replacing other means of payments including
cash and cheques. A ‘bank card’ is the secure, reliable and alternative to carry
cash. Tanzania has always been a cash-oriented society and card payment systems
are in early development stage.”
The Chairman said that Tanpay will open its POS and ATM infrastructure to other
banks and financial Institutions who wish to enter the Card Payment System
market by joining Tanpay as a member.
The Bank is prepared to assist banks in Tanzania to retain their own bank
customer relationship by providing such desirous banks with various proprietary
payment card systems of their own.
Zantel
acquires licence to operate Mainland
By Kizito Makoye
AS the count down for ending TTCL monopoly draws near Tanzania Communications
Regulatory Authority (TCRA ) has granted a licence that would allow Zantel to
rollout its operations to the Mainland Tanzania effectively next February.
The company will also have an option to make use of its two gateway access to
international exchange lines effectively February.
TCRA spokesperson, Isaac Mruma told, The Express on Tuesday that the company has
been granted a licence to operate both basic and mobile voice traffic. The move
in essence might pave the way for stiff competition from its would be rival TTCL
once its exclusivity dies effectively February 22 next year.
“The licence for Zantel is ready and the company says it is well prepared,” he
said.
Mruma added that “I believe that with Zantel coming to the Mainland will
increase competition in the service provision, provided that it is the cheapest
service provider.”
According to Mruma, Zantel is likely to pose a threat if it decides to invest on
fixed lines but, he added the scenario is that investors are more interested in
mobile phone operations. With Zantel operations to the Mainland, analysts
predict telephone tariffs both local and international will decrease.
With the end of TTCL monopoly no company has conspicuously expressed desire to
operate fixed line services perhaps because of its complexity provided that the
player might need to lay down infrastructure throughout the country.
Mruma said the new licensing framework regime which will kick off early next
year will allow other mobile operators who would allow other mobile phone
companies in the country as Mobitel, Celtel and Vodacom to mount their own
gateways for international calls, contrary to the prevailing arrangement where
they are obliged to channel their traffic through TTCL and are charged
exorbitantly for that.
“Vodacom was the first to ask for permission to use their own gateway long time
ago. As I am speaking to you, ZANTEL has also requested the authority to roll
out its operations to the Mainland,” he said.
Soring
food prices increase inflation
Despite a reduction in
clothing, footwear, kerosene, furniture, electric bulbs, insecticides, face and
hair creams, audio and video cassettes, diesel, handbags and cell phone prices
By Timothy Kitundu
Increase in the price of food products have forced the inflation
rate to go up in November this year. National Consumer Price Index (NCPI)
indicated to a rate of 4.4 per cent, recording an increase by 0.2 per cent
compared with October 2004 which was 4.2 per cent.
The Overall Index decreased from 108.6 in October 2004 to 108.3 in November
2004. Some prices for food and drinks items had gone up,” reads part of the
release.
Prices of rice, maize grain, wheat flour, potatoes, beans, cowpeas, coconuts,
meat, fish, cooking oil (pride), vegetables and fruits have increased including
coffee (instant), konyagi, mineral water and local brew (kibuku).
On the other hand clothing, footwear, kerosene, torch batteries, furniture,
electric bulbs, insecticides, water buckets, toilet soap, toot paste, face and
hair creams, audio and video cassettes (recorded), diesel, ball point pens,
school uniforms, handbags and cell phone prices had gone down.
According to the NCPI, the fuel, power and water index increased to 109.4 last
month from 101.6 in the corresponding period last year.
Statistics from the Ministry of Marketing and Cooperatives indicate that the
wholesale price of rice rose to an average of Tsh.58,000 per 100-kilo bag this
month from Tsh.57,500 last month while the price of beans increased to
Tsh.57,000 per 100-kilo bag from Tsh.53,400. Maize prices also rose to an
average of Tsh.17,000 per 100-kilo bag this month compared to an average of
Tsh.16,800 the previous month.
However, the price for Irish potatoes fell to an average of Tsh.27,000 per
100-kilo bag this month, compared with Tsh.28,200 in November. Meat prices rose
to an average of Tsh.2,500 a kilo from Tsh.2,000
"Reduce
poultry taxes"
By Joshua Mshana
THE government should reduce taxes imposed on poultry feeds so as to
enable businessmen make profits and thus expand their businesses, feels Dr.
Pietro Stella, the Managing Director of Euro Poultry (T) Ltd (Amadori).
“Taxes which are imposed on poultry feeds are very high and hinder the expansion
of poultry industry in the country. It should be reduced so as to enable poultry
dealers make profit and expand their businesses,” he said.
Regulations and legislations on poultry food should also be reviewed to suit the
needs of the open market economy. If taxes will be reduced, people dealing with
poultry farming would get reasonable profits and therefore generate significant
income which would also help them reduce poverty and generate income for state
treasury.
“It is a business that if you run it properly, it will give you a good profit.
But progress in our business is being hampered by high taxes, lack of commitment
by the people to enter into the poultry business and little knowledge in the
industry,” he added.
“What is important is how to ensure value for money for our customers, we assure
our customers that we are in the process of consolidating our services to meet
the needs and expectations of our esteemed customers,” he said.
We are improving our services, extension services, training business plans for
the nest year is that we expect to be near to our customers so as to save them
better.
Technology
transfers and a focus on supplies will boost African economy
By Joshua Mshana
AFRICAN entrepreneurs should look for technology from partners to
enable them to process their products and sell value-added goods abroad. This
was said by President Festus Mogae of Botswana in a UN Development Programme
(UNDP) Report released recently.
“As African industries faltered, most economies remained dependent on a narrow
range of primary products. This is a growing concern among development planners,
who warn that unless the continent diversifies the range of products it produces
and exports, it will be further marginalized in the global economy,” he says.
African governments urgently need to focus on the supply side. This would entail
training workers to operate plants at competitive levels, raising quality,
introducing new products and encouraging higher value-added activities. While
this depends on adequate financial investment, it primarily requires a set of
resources more precious than money-skills, organization, knowledge, effort and
institutions. Today UNIDO identifies infrastructure, governance, skills and
technology as the four elements influencing competitiveness, says UNIDO.
African governments should invest in infrastructure, to make them attractive to
the investors. Africa is clearly on the new path, marked by economic reforms,
greater commitment to political pluralism, a decline in conflicts and policies
more favourable to private investment. African countries should aim to be
middle-income industrialized nations in the next three decades.
Africa’s overall economic decline is linked with its economic structure and its
trade patterns. Africa has not significantly industrialized, it has not reduced
its initial dependence on primary commodities for exports, in contrast to the
rest of the developing world. Although other developing regions managed to break
into the global market for manufactured goods, Africa did not, says UNIDO’s
Industrial Development Report.
Overall, manufactured goods now account for 80 per cent of the exports from
developing countries, compared with just 25 percent in 1980. Those countries
that successful transformed their economies did so by investing revenue from
natural resources into infrastructure, human resources and new technologies.
“Compared with any where else in the developing world, Africa’s was the most
serious manufacturing-capacity loss. This was because structural adjustment
drastically curtailed the role of the state in industrial development. There
were notable exceptions, including Botswana, Mauritius and Zimbabwe, which
attained some success strong public sector involvement,” says Prof. Samuel
Wangwe and Dr. Haji Semboja in their recent research paper.
Some trade arrangements designed to assist developing countries also reinforce
over-reliance on primary commodities. By offering preferential duty-free or
quota free access to European and North American markets to primary products,
but not manufactured goods, they tend to encourage greater production of raw
materials.
A key strategy for African governments to promote exports is to develop export-
processing zones, duty-free industrial areas that also provide tax incentives to
businesses. The policy should allow the government to protect existing import
substituting industries while at the same time permitting new export firms to
take advantage of duty-free imports. The authorities should strategically
encourage investments in service industries such as finance and information and
communications technologies.
March dateline
for EAC discussion on oil sector policies
By Business Reporter
The second East African Petroleum Conference (EAPC ‘05) will be held
in Entebbe, Uganda on March 2-4, 2005 to discuss petroleum potential and
investment in East Africa.
According to the East African Community (EAC) international oil companies are
focusing on the petroleum potential of East Africa so it was upto the EAC
partner states to carry out an exercise to have harmonized policy, legal and
fiscal regimes.
“These will be used to regulate the activities of petroleum exploration,
development and production within the respective countries,” said the EAC.
Focus will be on sharing of information, expertise, infrastructure and
consolidation of a regional market for any discovered petroleum as well as
better bargaining capacity for financing petroleum activities.
According to the release, the harmonization task force has so far reviewed the
Petroleum Acts, Regulations, model Production Sharing Agreements and other
attendant laws relevant to petroleum exploration, and identify the possible
areas of harmonization.
The oil companies operating in East Africa will have the opportunity to expand
their activities throughout the individual countries under familiar legislation.
“The regional cooperation and integration envisaged in the EAC is broad-based,
covering trade, investments and industrial development, monetary and fiscal
affairs,” reveals part of the release.
Other areas of cooperation in the EAC include; infrastructure and services,
human resources, science and technology, agriculture and food security,
environment and natural resources management, tourism and wildlife management,
and health, social and cultural activities.
BoT debt rises
By Timothy Kitundu
The Central Bank, Bank of Tanzania (BoT) has said that during the
month of August, total public debt (both internal and external debt) rose by US$
22.9 million, about Tsh.22.9 billion mainly on account of disbursement of old
and new loans, as well as accumulated interest arrears for non-Paris Club
creditors.
Thus, at end August 2004, total public debt stood at US$ 8, 816.1 million about
Tsh.8,816 billion In the same month, the committed external debt stock rose by
US$ 37.0 million about Tsh.37 billion to US$ 8,210.5 million about Tsh.8,210
billion out of which US$ 6,734.4 million about Tsh.6,734.4 billion was
disbursed.
According to the bank’s monthly economic review released in September 2004, the
disbursed debt of the private sector increased by US$ 20.3 million about
Tsh.20.3 billion during the month to US$ 468.6 million about Tsh.468.6 billion,
while that of the central government went up by US$ 14 million about Tsh.14
billion to a stock of US$ 6,110.4 million about Tsh.6,110.4 billion.
The debt stock of public corporations remained almost unchanged at US$ 155
million about Tsh.155 billion between July and August 2004. The analysis of
disbursed debt by creditors show that, multilateral creditors disbursed US$
4,601.7 million about Tsh.4,601.7.
Bilateral creditors disbursed US$ 1,504.6 million about Tsh.1,504.6 billion,
whereas commercial and export creditors owed US$ 395.3 million and US$ 232.8
million about Tsh.395 and Tsh.233 respectively., respectively.
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. In terms of use of
funds, US$ 1,300.9 million about Tsh.1,300.9 billion of the total debt was in
the form of balance of payments support.
Transport sector accounted for US$ 1,195.1 million about 1,195 billion,
agriculture-US$ 962.2 million about Tsh.962.2 billion, and energy and mining-US$
908.2 million about Tsh.908.2 billion.
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