TPB to
construct pyrethrum factory
By Express Reporter
The Tanzania Pyrethrum Board (TPB) is all set to start a new factory
that will be processing pyrethrum cultivated in the country.
Speaking to journalists in Dar es Salaam the TPB Director, Ephraem Mhekwa, said
the move is supported by the Ministry of Agriculture and Food Security.
“We are working with the government to see how we can establish this factory
plant that we hope can boost the pyrethrum agriculture in the country,” he said
without giving details about where the plant would be constructed.
Though pyrethrum farming was slowly picking up, lack of a factory to process the
crop was harming the cause of the producers and as a result, crude product was
sold to other countries including Kenya, South Africa and Tasmania.
The Director said, around US $ 1 million would be required to facilitate the
construction of the refinery plant.
He added that the crop, which is largely, cultivated in the Southern Highland
areas such as Makete, Mafinga and Njombe districts, is a raw material for the
production of insecticides and other industrial chemicals.
He said the state has improved after the Tanzania Pyrethrum Processing and
Marketing Company Limited (TPPMCL) started paying the outstanding payments to
the earlier “demoralized” farmers. “Between April and December 2004, the TPPMCL
has succeeded to settle all the outstanding payments accumulated during the
2001/02 and 2003/04 seasons,” he said.
He urged the farmers to increase their efforts in production, pledging that,
Tanzanian pyrethrum market was in great world demand.
Food prices
continue to rise
By Express reporter.
Food prices in Dar es Salaam are continuing to rise since October
last year and traders are now linking the trend with the low harvests and poor
transportation facilities behind the soaring prices.
The prices of food at major market places in Dar es Salaam namely Kariakoo,
Tandika and Magomeni have gone up, rice and beans consumers will have to dig
deeper in their pockets as the commodities prices have increased almost by 10
per cent.
A survey made by The Express at the Kariakoo market reveals that the food prices
increase is mainly attributed to transport costs as the costs have increased by
over 20 per cent. The cost of transport is justified by the prices of fuel which
of late have hit Tsh.1,000 per litre.
A spot survey by this paper revealed, that two important commodities which are
favoured by most Dar es Salaam dwellers, rice and beans indicated an increase of
over 10 per cent. Part of the increase could have also been temporarily caused
by the festive season.
A trader at Kariakoo market who introduced himself by only one name of Mashaka
confirmed that the price of rice has gone up from Tsh.725 per kilo wholesale to
Tsh.840 retail. Mashaka added that some weeks back, the prices stood at Tsh.640
wholesale and 700 retail.
Some of the commodities that showed high price tags include soybeans, Irish
potatoes and cow peas. A broker who preferred anonymity said that currently a
kilo of beans sales at between Tsh.620 and 660 compared to the previous prices
which stood at between Tsh.490 and 540.
“The price of soybeans and cow peas has increased from Tsh.350 to 450 and from
Tsh.410 to tsh.540 at whole sale and retail respectively,” he said.
According to the broker, during the months of December and January saw prices of
food skyrocketing because that is the period of ‘scarcity’ and commodity dealers
use the little stock they have to extract more money from consumers.
Ruvuma bridge
construction to start in September
By Bayano Valy
The “Unity Bridge” on the Ruvuma river between Tanzania and Mozambique, two
neighbouring countries separated by river, could finally be a reality with work
on the bridge to start in September this year.
Almost 30 years in conception, the bridge is promised to be completed by as
early as 2008 after the Presidents of Mozambique and Tanzania, Joaquim Chissano
and Benjamin Mkapa respectively, met recently in Pemba, capital of the Northern
Mozambican province of Cabo Delgado, to sign the agreement.
The Unity Bridge, a 600-metre, bridge-road linking between the two countries, is
expected to cost US$33 million. The project also includes access roads spanning
five kilometres on each side of the bridge.
A memorandum of agreement on joint implementation of the project was first
signed in 2002. Speaking during the event in Pemba, Chissano said the signing of
the agreement was a giant step towards strengthening the bonds between the two
countries and peoples. Apart from being geographically linked, Mozambique and
Tanzania have a historical, cultural, social, political and economic links that
extend far back into colonial and pre-colonial history.
“It’s equally a significant step towards the materialisation of what was one of
the great dreams of our states’ founders, the late Presidents Samora Machel and
Julius Nyerere,” Chissano said, “a road link between our countries.”
The bridge, he said, would facilitate social and economic development in the
river’s catchment area and beyond. President Mkapa expressed his conviction that
the project would boost development, not only in the riparian regions of Mtwara
in Tanzania and Cabo Delgado in Mozambique, but also in the SADC region as it is
an important component of the Mtwara development corridor.
The Mtwara development corridor is a Spatial Development Initiative (SDI) which
has the backing of the four countries directly affected, that is, Malawi,
Mozambique, Zambia and Tanzania.
The corridor initiative, which was launched in December in Malawi, will include
the improvement of the port at Mtwara, and the road and telecommunications
network. Mtwara is strategically located in Southern Tanzania, touching on
Northern Mozambique, as well as being a potential port for Northern Malawi and
Eastern Zambia.
Chissano added that the bridge and road would shorten the distance between the
Cape in South Africa and Cairo, Egypt, especially because works on a major
bridge across the Zambezi River in Mozambique are to start very soon. The Cape
to Cairo route is an old colonial project dreamt of by arch-colonialist, Cecil
Rhodes, for whom Rhodesia was named.
“The benefits of the Unity Bridge will not be limited to bringing closer the
peoples of our region, but also of the whole of Africa with all resulting
positive spins towards development,” said Chissano.
European
investment bank starts in Nairobi
By Angela Mazula
The European Investment Bank (EIB) and the Kenyan government signed an agreement
on December 16 last year which paves the way for EIB Regional Representation for
East and & Central Africa in Nairobi, Kenya.
This is one of three regional representations in sub-Saharan Africa to bring the
EIB closer to its customers and reinforce its operations in the field. The other
Regional Representations will be in Dakar, Senegal, for Western Africa, and
Pretoria, South Africa, for the Southern African region and Indian Ocean.
The Hon. Chirau Ali Mwakwere, Minister for Foreign Affairs and EIB’s Mr. Martin
Curwen, Director for operations in Africa, Caribbean and Pacific (ACP)
countries, signed a “host country agreement” whereby Kenya facilitates the
setting up of the Representation for the benefit of the whole region.
The EIB has been operating in Africa, under successive EU conventions for some
40 years, managed from Luxembourg.
TRC
to be put for re-bidding
By Timothy Kitundu
Tanzania Railways Corporation (TRC) would be put up for re-bidding by the
Presidential Parastatal Sector Reform Commission (PSRC) this year with PSRC
focusing on the divestiture of utility and infrastructure companies in its
2004/05 action plan.
According to Dr. Heavenlight Kavishe, PSRC Coordinator, TRC prequalification was
completed by the end of the year under review and the bidding documents which
are almost completed would be issued this year.
He said, funds were secured from the Public Private Infrastructure Advisory
Facility (PPIAF) during the year under review for options study for private
sector participation (PSP) in the Tanzania Zambia Railways Authority (TAZARA)
whereas final report and recommendations were expected by October last year.
“Studies for setting up a new electricity industry structure and corporate
restructuring of the Tanzania Electric Supply Company (TANESCO) reached final
stage by the end of the year under review,” he added.
However, he said, a number of decisions remain to be taken by the government
before proceeding to the second phase of the project which relates to the
implementations of the recommendations.
According to Dr. Kavishe, PSP in Tanzania Harbours Authority (THA) will be in
full divestiture by the end of the year 2005/06. This follows the government’s
approval of the recommended divestiture strategy way back in 2003. New
legislation is being enacted in line with preparation of the various business
units for PSP.
Speaking on the only public owned city transportation firm, he said, Usafiri
Dar es Salaam (UDA) he said, the privatization and restructuring of UDA has not
yet been decided.
“The latest recommendations under review involved a proposal swap 49 per cent
government shareholding with exchange for Kurasini depot and cancellation of
UDA’s indebt-ness to the government,” he said.
In terms of NARCO ranches and NAFCO farms he said, the ranches were handed back
to the government for subdivision and privatizations to Tanzanians, a process
that was on going during the year under review.
The NAFCO farms within the Hanang Wheat Complex have been handed over to LART
for liquidation whereas rice and maize farms have been advertised for sale.
Private sector
participation urged in African Development
By Joshua Mshana
AFRICAN governments should involve private sector and business people in their
development plans in order to realize the ambitious goals of the New Partnership
for Africa’s Development (NEPAD) and have a better place in the global economy.
“We strongly believe in African private sector. Without its help, we can’t
achieve great things. Harnessing the expertise and entrepreneurial spirit of the
business community is crucial for mobilizing the capital, technology and human
skills we need to ensure that NEPAD’s bold vision for new Africa becomes a
reality,” President of the African Union (AU) Alpha Oumar Konare claimed in the
UN Development Programme (UNDP) Report.
Public-private partnership between governments and businesses can have practical
benefits for everyone. With limited foreign aid and other sources of public
financing for infrastructure investments, public-private partnerships provide
the only means for building the roads, the power, and the water supplies that
not only improve living standards but also provide the basic infrastructure for
profitable business that creates wealth, jobs and hope for a better future.
More business engagement can also help prepare African countries to take better
advantage of opportunities in the global market place. A true and growing
private sector, would enhance competitive forces and promote competitiveness.
Obstacles facing NEPAD were poor and corrupt political leadership, war, trade
barriers, red tape, corruption and inequitable practices in the world trade.
The private sector recognizes potential benefits of NEPAD. However, NEPAD must
make a greater effort to build awareness of its goals. Some African governments
are still uncertain about working with the private sector and only pay lip
service to the important role that a thriving indigenous private sector plays.
They must adopt policies that match their pronouncements. Governments should
give more responsibility to African business people who, by their active
engagement, deserve to be partners of choice of the African Union and NEPAD.
African private sectors have several weaknesses which hinders their development,
these include, limited capital, diverse interests and weak management capacity.
NEPAD’s basic focus is on long-term development, advised their colleagues to
look beyond the possibility of quick profits.
“We need a greater relationship and partnership in assisting governments to
achieve some of their objectives. Business people need to think of development
as more of a long-term plan than they do,” the report says.
Sugarcane
farmers face crisis in Kenya
By Angela Mazula, Nairobi.
Sugarcane farmers in Mumias should set up an association to replace their
out-grower Company, said Butere Member of the Parliament, Wycliffe Oparanya.
Speaking to journalists in Nairobi last week, at Butere the said the Mumias
out-grower Company (MOCO) was making farmers poorer.
He said that farmers cannot reap maximum profit because they share it with the
out-grower where some roles played by MOCO were also played by the sugar company
at the expenses of farmers. Oparanya blamed MOCO for failing to assist the
grower to improve yields, making many of them live in poverty.
He cited land preparation fertilizer application and cane transport as service
for which the out-grower over charged farmers.
He said look at the Company’s financial records about 17,000 farmers are
shareholders of the company which made a loss of Kenyan shillings 103 million
last year which triggered a call for the company’s dissolution from sugarcane
farmers, he commented.
However, the Secretary General of Kenya National Sugarcane Growers Union (KNSGU),
Ezra Okoth said in Eldoret that the country has ordered councils in the sugar
belt, two weeks to repair roads.
He said thousand of tones of cane were going to be wasted because of impassable
roads, yet the councils received money levied on factories to maintain roads.
“We are going to take these councils to court for not maintaining roads” he
said. Okoth said farmers incurred heavy loses due to poor roads and asked
farmers to join the KNSGU to fight for their rights.
Migori Vicent District farmers, ask the management of sugar Company to weed out
ghost growers from its payroll.
They claimed that a cartel in the harvesting and weighbridge departments
prepared lists of non-existent farmers, who they paid delivery dues.
“The millers are loosing a lot of money through this cartel and the management
should seal these loop-holes to put the firm on a sound financial footing” said
a grower Felix Owour, from Uriri division.
Small banks'
performance drop
By Angela Mazula
Small Banks in Kenya have been urged to find out why they have not
made an impact in their district and division, said District Officer.
Speaking in Nairobi at Murang’a District last week during the ceremony organized
by Cooperative Bank of Kenya, District Officer, Elias Ngumo said that although
there were many micro-financial Institutions in the area, they had not spurred
economic growth.
He said “It defeats the purpose of having a concentration of the financial
institutions yet very little or no development at all may be attributed to
them”.
Record tourism
revenue expected in 2005
By Angela Mazula
The country is expected to earn a record sum of 758 trillion Tsh. from about
607,000 tourists who are estimated to come in the country this year, Tanzania
Tourist Board (TTB) Executive Director, Peter Mwenguo has revealed.
Speaking with The Express Monday this week Executive Director said that this
will generate one of the highest earnings in the country’s history as far as the
tourism industry was concerned.
“Based on an estimated average expenditure of 1,250 dollars per tourist, the
country is expecting to earn more than 758,000,000 dollars,” said Mwenguo,
Mwenguo said tourism had a great role to play and could contribute massively to
replenish Tanzanian economy. Tourism being labour intensive it can thus create
job opportunities. Tourist hotels and tour companies both in Tanzania Mainland
and in Zanzibar currently employ many young men and women which in one way or
the other will develop their life and improve the standard of life.
The Executive Director explained further that tourism is multi-sectoral, and
hence stimulates the growth of other sectors.
He said tourists buy locally manufactured goods, and tourist hotels buy
commodities from peasants and small-scale traders. This enables local people to
earn some income from their own business.
“The country generates some income through different taxes imposed on various
sectors related to the tourism industry, such as hotels and tour companies. Visa
fees are another source of revenue,” he said.
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