French
organisation rules out water privatisation
By Timothy Kitundu
Water privatization is said to have caused deterioration in services, higher
prices for the poor and increased corruption; this according to a French
organisation.
Public Services International (PSI) argues that privatisation of the water
sector, particularly in developing countries like Tanzania, does not respond to
market dynamics, since the concerned firms in practice have a monopoly over the
market.
In a press release issued on Tuesday, PSI says that water clients in the
concerned countries are ‘captive consumers’. The firms’ private-for-profit
management is very problematic.
Water privatisation, the release states, has failed to deliver its promises, as
it does not give the poor better access, nor does it lead to better management.
“Despite these problems, many northern countries insist on privatization of
water services, … the European Union is pushing for it in the WTO agreements on
Trade in Services, (GATS), despite widespread opposition,” reads part of the
release.
Donor countries, according to PSI, continue to make privatization a condition
for access to development loans or grants. Recently, the United Nations was
pressurized by member states to endorse failed privatisation policies.
It is further alleged that the motive for privatisation is corporate ambition,
aiming to generate massive potential profits. PSI mentions the biggest water
corporations as the French Ondeoz-Suez and Veolia, (formerly Vivendi), and the
German owned RWE-Thames.
“A number of other corporations are getting active, including the USA’s military
and construction specialist Bechtel, as well as Japanese construction firms
Marubeni and Mitsui. And some financial groups are digging their toes in,
including French Paribas Affaires Industrielles (PAI) and a number of Asian
investment groups,” stresses part of the release.
Kenyan
professor praises EAC Customs Union
By Angela Mazula
The East African Community, (EAC), Customs Union has offered favourable
opportunities for the EA member countries to integrate, strengthen the regional
economy and accelerate reform programmes, a Kenyan scholar has claimed.
Speaking in Dar es Salaam recently, Professor Otieno-Odek of the University of
Nairobi said that the internal and external tariff structure have created a
useful dynamic impetus for regional integration, where progress would otherwise
be halted.
He said the tariff structure is being used as an instrument for development.
“It generates opportunities at commercial, social, legal and institutional
levels in the private sector. The union has unlimited potential,” he explained.
The professor added that, to foreign investors, economics of scale is no longer
a distant dream but a reality for individual entrepreneurs, but individual
competence and ability will determine the rate of success, he said.
In her comments, Dr. Flora Musonda, Director for the EAC Secretariat, said that
the major challenges which will face the Customs Union are to implement the
provisions of the protocol and to make the union operative.
She added that, regarding awareness amongst the business community, it is the
private sector and citizens of the customs territory that must take initiatives,
realizing the benefits of the union and exploiting the opportunities offered
within the protocol.
“The sensitization of the private sector as the engine for economic growth is a
fundamental prerequisite to the success of the union,” said Musonda.
Daniel Machemba, from the Tanzanian Chamber of Commerce, Industry and
Agriculture (TCCIA), said that the common external tariff of the Customs Union
comes in three bands: common external tariff with a minimum of 0 per cent, a
middle rate of 10 per cent and the maximum rate of 25 for all products.
He said the partner states will try to reduce the maximum rate of 20 per cent
within a period of five years.
Machemba added that the 0 per cent rate, or duty free rate, applies to all raw
materials and capital products imported into the Union. The middle rate of 10
per cent applies to all intermediate goods, while the 25 per cent applies to all
finished products imported into the Union from non-member countries.
Leather
industry next target for SIDO
By Timothy Kitundu
The Small Industries Development Organisation (SIDO) has announced
that it will give priority to Small and Medium Enterprises involved in the
leather industry sector in the future.
However, SIDO will also continue to place emphasis on supporting the food
processing industry in the future, an area which SIDO is determined to see
growing.
The method used by the organisation includes imparting entrepreneurial and
management skills to SMEs entrepreneurs, who can compete in the global market,
and to enhance their export opportunities.
Janet Minja, SIDO Director of Marketing and Information, told The Express in Dar
es Salaam recently that the organisation’s efforts are focused on creating
employment, economic development and poverty alleviation.
“In this aspect, among others, SIDO’s assistance is through technical and
product development programmes by intervention in technology search, transfer,
development and commercialization, technical training and advisory services,”
she said.
According to Minja, SIDO is also involved in developing market and market
linkages programmes for SME products, which include market research,
consultancy, marketing intermediation and subcontracting. These measures ensure
that SMEs’ products are exposed to prospective customers and channels.
Speaking on the new products introduced by the organization, she mentioned the
recycling of waste in Dar es Salaam, for example solid waste like plastic or
metal objects, glass bottles and paper.
“Other initiatives include a Bamboo Craft Training Project, the promotion of
black-smiths’ products through SIDO Zonal Exhibitions, a programme started in
Dar es Salaam in which already four enterprises are involved,” she added.
Less revenue
than expected collected in Musoma
By Beldina Nyakeke, Musoma
Musoma Town Council in Mara Region has managed to collect Tsh. 197.5
million from July to December last year.
This was revealed by the Council’s Chairman, Vedastus Mathayo, when presenting a
financial committee implementation report, read on his behalf by Nyakato Ward
Councillor, Swahib Mohamed.
Surprisingly, the report indicates that the Council had only collected 47 per
cent of its projected aim of collecting Tsh. 418 million during the said period.
Billions from
Japanese government to activate development
By Timothy Kitundu
The government of Japan last week proferred a total of Yen 600
million (Tsh. 6.6 billion) under the Non Project Grant Aid (NPGA), to enable
Tanzania to put into action a national development strategy.
The Japanese Ambassador, Katsuya Ikeda, who handed over the grant on behalf of
the government of Japan, said in Dar es Salaam that the grant would be put into
the Facility Fund for the 2005/06 fiscal year.
He said that Yen 545 million, (Tsh. 6 billion), will go to the Poverty Reduction
Budget Support (PRBS) for the benefit of the National Strategy for Growth and
Reduction of Poverty (NGSRP).
“The remaining Yen 55 million, (Tsh. 605 million), will go to the Pooled Fund
for the Poverty Monitoring System,” he said.
According to Ikeda, 2005 is the ‘Year of Africa’ hence Japan’s financial
commitment has been increased by 20 per cent compared with that of last year.
Speaking on behalf of the government of Tanzania, Gray Mgonja, Permanent
Secretary in the Ministry of Finance, congratulated the government of Japan,
saying that the PRBS modality enhances the government’s ownership of resource
allocation.
“The support also facilitates national budget planning and execution, and
increased predictability of external assistance, transparency and accountability
in public expenditure management and will thus be strengthening the Tanzania
Government’s public financial management system,” he said.
According to Mgonja, this financial support, together with that delivered under
other mechanisms such as through the agricultural development programme, the
water supply, education, health, fisheries and road sector projects, will make
an important contribution to attaining the country’s growth target, which is
important for the reduction of poverty.
Interest rates
vary greatly between institutions
By Angela Mazula
A local non-governmental organisation, (NGO), has admitted that
interest rates charged by microfinance institutions are higher than those
charged by commercial institutions.
Speaking to The Express recently, FINCA Managing Director Felistas Coutnho, said
that monthly interest charges are higher due to various reasons.
Coutnho said the prevailing interest rate on loans set by many microfinance
institutions in the country varies from 4 to 6 per cent per month, or 48 to 72
per cent per annum.
Coutnho added that the interest rates charged by commercial banks differ between
banks, but do not exceed 25 per cent per annum.
She explained that there are genuine reasons for microfinance institutions to
increase their rates; they include high operational costs for loan follow-ups,
and expenses on loan procedures.
She said FINCA, Tanzania, provides loans under three categories: to customers in
groups of up to 50, for working equipment, and loans paid off from people’s
salaries. The respective interest rates are 4 per cent per month, 2.5 per cent
and 2 per cent.
She said that many of FINCA’s clients are women who have decided to improve the
livelihood of their families, by starting their own businesses such as food
vending, beauty salons, animal husbandry or running various shops.
Over Tsh. 40 billion have been spent on loans, since FINCA commenced its
operations in the country more than seven years ago. It operates in10 regions in
the country with over 40,000 active clients.
Zanzibar’s
debt reaches Tsh.170/- billion
By Timothy Kitundu
The increase in internal borrowing by the government of Zanzibar
during November 2004, is cited as the main cause for the total debts, internal
and external, now standing at Tsh. 172.7 billion, from Tsh. 168.7 billion
registered at the end of October.
However, the external debt continued to dominate the debt portfolio; amounting
to Tsh. 119.5 billion which represents 69.2 per cent of the total debt; the
domestic debt amounted to Tsh. 53.2 billion representing 30.8 per cent of the
total debt, according to the December Bank of Tanzania monthly economic review.
The review indicates that during November 2004, domestic debt edged up to Tsh.
53.2 billion from Tsh. 49.2 billion registered in the preceding month, due to
government borrowing from domestic sources, accumulated interest arrears and new
gratuity claims.
The domestic debt maturity profile shows that debt maturing in less than a year
stood at Tsh. 9.4 billion, representing 17.7 per cent of the total domestic
debt. Debt maturing between 1-2 years amounted to Tsh. 13.9 billion,
representing 26.1 per cent of the total domestic debt.
Debts maturing between 2-5 years increased by 25.0 per cent to Tsh. 1.0 billion,
and accounted for 1.9 per cent of total domestic debt. Debt with ‘undetermined
maturity’, including accumulated interest arrears and retired civil servants’
claims, amounted to Tsh. 28.9 billion or 54.3 per cent.
The external debt, according to the review, stood at US$ 112.6 million (Tsh.
123.2 billion), of which multilateral creditors’ claims amounted to US$ 94.2
million (Tsh. 103.4 billion), representing 83.7 per cent of the total external
debt.
Bilateral debt amounted to US$ 10.9 million (Tsh. 12.1 billion) or 9.6 per cent,
while commercial and private creditors’ claims amounted to US$ 7.5 million (Tsh.
8.25 billion), representing 6.7 per cent of total external debt.
The review indicates that external debt maturing above 20 years stood at US$
93.5 million (Tsh. 102.3 billion), accounting for 83.1 per cent of total
external debt.
Debt with maturity ranging between 10-20 years stood at US$ 10.7 million (Tsh.
11.77 billion), representing 9.5 per cent of total external debt while debt
maturing between 5-10 years stood at US$ 8.4 million (Tsh. 9.24 billion) or 7.4
per cent.
IIT
and British university introduce master’s programme
By Angela Mazula
The Dar es Salaam based Institute for Information Technology (IIT),
in collaboration with the University of Portsmouth, Britain, has launched a
master’s degree programme.
Speaking in Dar es Salaam last week at the New Africa Hotel, Francis Buberwa,
Manager of the BSc/MSc programmes, said that the master’s degree in strategic
business information technology will be run in the programme.
Buberwa said that it is not compulsory for an applicant to hold a bachelor’s
degree in computing or information technology. A non-IT degree with at least a
three years’ work experience can be credited as an alternative entry
qualification.
He said the programme targets, for example, people who wish to build on their
existing IT skills whilst being introduced to a range of business and management
issues, to prepare for senior management level positions.
Speaking at the same function, IIT Managing Director, Mujtaba Salemwalla, said
“Over 9,000 students have been trained at IIT in various programmes.”
Currently IIT has a faculty of 30 full-time and part time members.
He explained that a total of 64 IIT students passed the NCC International
Diploma and Advanced Diploma in computer studies examinations, of December 2004.
Open
University offers management skills
By Angela Mazula
The Open University in collaboration with the African Virtual University (AVU)
has brought new management skills and technology into the country, said the
Business Manager.
Speaking in Dar es Salaam this week, during the opening ceremony of the seminar
on “Project Management Skills and Techniques” held at the Golden Tulip, Benjamin
Buss, Business Manager of AVU, said the advantage of this programme to the
number of educated people in this field is that the programme is very wide and
ranging from degree to certificate, delivered through the internet and by
satellite to which over 34 countries have access.
He identified the aim as being to equip the participants with the confidence to
be leaders in the projects teams in which they become involved, and gain skills
so as to manage projects efficiently and effectively, thus avoiding the common
pitfalls.
Moreover, Professor Tolly Mbwette of Open University said in the ceremony that
the education in projects management skills and techniques has come at the right
time, just when various projects are being executed by different agencies in our
community. He added that there are various aspects, such as scope management,
time management, cost management, quality management, human resources
management, communications management, procurement management; along with
assessment of the life cycle of each project.
French money
aids Musoma water project
By Beldina Nyakeke, Musoma
French International Development Agency (AFD) expects to spend Tsh.
48 billion on a Musoma Town Council water project.
This was revealed Monday this week by Musoma Urban Water Supply and Sanitation
Authority (MUWASA) Director, Genes Kaduri, at a one day seminar for locality
chairmen and ward executive officers of Musoma Town Council, as part of Maji
week celebrations.
Kaduri said AFD had set aside Tsh. 29 billion for clean and safe water services.
The money will improve water supply and the water network so that the residents
of Musoma Town may obtain water uninterruptedly.
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