Increased
consumption behind high oil prices
By Joshua Mshana
The price of oil is high and is on the rise because more people are
consuming oil, according to Rodrigo de Rato, Managing Director of the
International Monetary Fund (IMF) speaking in a recent IMF survey.
“The high oil prices are demand driven, which is very different from previous
oil hikes. That doesn’t mean there aren’t supply constraints in some areas or
that there isn’t a lack of transparency in the markets. But even taking all
these into consideration, the price of oil is high because more people are
consuming oil. It is as simple as that,” he noted.
This means that the world economy is doing a much better job of absorbing shocks
caused by supply constraints. It also means that it is going to be more
permanent situation-that is, the oil price floor has risen because of the
demand-a reality that oil consumers will have to accept. And policy makers in
oil-importing countries will have to carefully review their energy policies,
focusing on conservation and efficiency, he said.
In oil-exporting countries, policy makers will need to recognize that previous
hikes in oil prices haven’t always been a blessing. They often resulted in big
disruptions in macroeconomic balances, inefficient public expenditure and
greater economic vulnerability, without enhancing development and reducing
poverty.
Commenting on the role and work of IMF in the world, he said the IMF is
responding to what is clearly a demand by many countries and by public opinion
to think about its role and work.
Occupational
hazards remain a threat
By Timothy Kitundu
The government has said that the construction sector is the major
employer in Tanzania, as in various other countries, but occupational hazards in
the sector are still a problem.
Giving the government’s statement on the World Day for Safety and Health at Work
2005 which will be marked globally today, Abubakar Rajabu, Permanent Secretary
in the Ministry of Labour, Youth Development and Sports said that although
occupational safety data are not available in developing countries, accidents in
the sector do occur.
He said the International Labour Organisation has been marking this day in
various countries in the world since 2003 and up to this moment over 100
countries have been marking this day. In Tanzania, the day was marked for the
first time last year in collaboration with workers’ and employers organisations.
Rajabu added that focus is on protection and prevention of work related diseases
although the importance is still that of 2004 namely ‘prevention of work related
accidents – a responsibility to employers, workers and their government’. This
year’s theme is occupational safety at construction sites.
He cited the accidents as falling from towering building construction sites,
falling into great depths, and misuse of construction equipments including
electric appliances and in some cases rampant motor accidents.
“Workers in this sector are also exposed to health hazards such as working near
plants that emit dangerous dust and chemicals, lifting of heavy loads, noise and
vibrations which are imminent hazards in our environments,” he said.
According to Rajabu, a research carried out at construction sites in 2001
revealed that only 11 per cent of the construction areas had the correct
measures against preventing falling from towering buildings and 25 per cent had
occupational health and safety policies.
“It was also discovered that only 3 per cent of the construction areas had
submitted reports of the types of works undertaken to the Chief Inspector,” he
said.
The government believes that work related diseases and accidents should and can
be prevented. The workers, employers and the government each has a role to play
whereas the government on its side has established a special agency, the
Occupational Safety and health Authority (OSHA) to deal with this issue
“The government in collaboration with various stakeholders has prepared a draft
of the Occupational Safety and Health which will be tabled in parliament this
year,” he said.
From poaching to farming
By Berdina Nyakeke, Bunda
The fruit and vegetable project (MSHP) in Bunda District has managed
to attract poachers to take up farming.
The project, which cost over Tsh. 4.5 million and trained 290 people, has taught
vegetables and fruit farming between July and December last year. MSHP manager,
Tumaini Lubango said this over the weekend during a board meeting held at Bunda
Teacher’s College.
Pouching in Serengeti National Park has greatly been reduced as many people are
now engaged in farming.
Thanks to the training, Lubango said, farmers have been able to raise Tsh. 15.2
million in six months from selling vegetables and fruits to tourist hotels
situated within Serengeti National Park.
The MSHP project was initiated early last year; it serves villages around
Serengeti National Park in Tarime, Serengeti and Bunda districts.
More money in
circulation, but inflation remains stable
By Angela Mazula
There has been a striking increase in the circulation of local
currency; an increase by over 300 per cent over the last nine years was recorded
in February, 22005 according to Deputy Finance Minister Dr. Festus Limbu.
Speaking in a Parliament session in Dodoma last week Dr. Limbu said the amount
of Tanzanian currency is now Tsh. 632.1 billion.
Dr. Limbu was answering a question from Mutamwega Mgaywa, who wanted to know
what action has been taken by the treasury to control local currency outflow.
Dr. Limbu said the amount of local currency circulation had increased
dramatically but without stimulating the inflation rate.
The economic interpretation is that an increase in the volume of currency was
prompted by an increase in production, he said.
Dr. Limbu said his ministry had encouraged the establishment of small financial
institutions in rural areas, as part of efforts to maintain a stable currency
flow.
Farmers asks
for government intervention
By Merline Mhamaka, Mgeta-Morogoro
The government has been requested to look into the possibility of
providing farmers with necessary inputs, instead of farmers receiving assistance
from private agencies.
Farm inputs such as fertilizers is currently coming from private agencies
dealing with inputs.
The requested was given by residents of Mgeta Division in Mvomero District,
Morogoro, advising the government to channel the service through district
councils or through their village cooperative groups.
They claimed that the cost of fertilizers has shot up to Tsh. 500 and Tsh. 600
for half a litre container. They further claimed that the situation is
perpetuated by private agencies paying for hiked prices which prompt them to
sell the inputs at inflated prices.
“The majority of us farmers have limited ability and solely depend on
agriculture for our incomes, now with the current situation, do you think we
will be able to sustain our farms?” queried Simon Andrea.
Farmers also showed their doubts over some input agencies selling seeds which
they termed as being substandard. If the government took charge of the business,
the problems would be reduced, they said.
The farmers said that in Mgeta Division, many depend on fruit and vegetable
farming, which require farm inputs, particularly pesticides.
Responding to the farmer’s requests Morogoro North Member of Parliament,
Suleiman Murad advised them to form groups so as to make it easy for the
government to facilitate the availability of inputs, as serving individuals
would be difficult.
He said, through farmer’s groups like Savings and Credit Societies or Primary
Cooperative groups it would be easy for the government departments concerned to
channel the services directly to them instead of the present situation where the
services go via private dealers.
More money is
necessary for development, says UNDP
By Joshua Mshana
Money and practical investments are the only way Africa can solve
its economic problems and reduce poverty towards attaining the Millennium
Development Goals (MDGs)
Professor Jeffrey Sachs, UN Secretary General Kofi Annan’s Special Adviser on
the MDGs said this in the UN Development Programme (UNDP) Report.
“Many of Africa’s problems can be overcome with more financing. But we are not
solving practical problems because we don’t want to talk about money. Although
official development assistance to developing countries has begun to inch back
up after a decades-long decline, only a handful of donors have reached the
internationally agreed target of 0.7 per cent of gross domestic product.
Development aid to Africa remains far below the additional US$ 40 billion
required annually to achieve the MDGs by the 2015 deadline,” he said.
The reasons for Africa’s halting progress are numerous, including poor soils,
the effects of climate change and shortages of basic transportation and
communications. But these problems have been worsened by donor community’s
insistence on market mechanisms, inadequate and poorly targeted aid and a
tendency to blame Africa, he observed.
While substantial progress has been made in some regions of the world, Africa on
the whole has not achieved progress and has experienced significant regress in
many areas. The continent is the epicentre of the global poverty. Something must
be done now to address this issue of poverty. Towards that end, more investments
are needed and people must be reminded every now and then, that they must have a
saving culture, he pointed out.
Attempts to
improve vine-growing underway
By Emmanuel Lazaro, Dodoma
Tanganyika Vineyards Company in Dodoma Municipality, in cooperation
with the government and other grapes stakeholders, is planning to improve vine
growing in Dodoma Region to enabling the grapes to compete in international
markets.
The company’s manager, Archard Kato said last weekend, that the farmers at the
moment produce poor-type grapes and of low quality. Many use outdated methods
that prevent the grapes from securing foreign markets.
In an attempt to solve the problem, they have advised the government, through
its agricultural experts, to conduct training-courses for village farmers, to
help them produce more and better grapes.
Kato said, Tanganyika Vineyards Company has ordered quality vine seeds from
different countries which are now being experimented with at Makutupora
Grapevine Research Station, and that eventually they will be distributed to
farmers.
The company is also planning to establish its own estate, which will be used to
produce quality grapes, and also it will be a model and training estate for
farmers to produce quality grapes, Kato said.
TUWASA
struggles with unreliable customers
By Joshua Mshana
Biswalo Bernard, TABORA Urban Water Supply Authority (TUWASA) Acting
Business Manager, is hoping that more people in the region will appreciate their
service and acknowledge the importance of paying the bills.
“There are some people who have money but they don’t see paying water bills as a
priority. We are trying to provide quality services so as to make them feel
obliged to pay the bill,” he said.
The challenge TUWASA is facing is to change the mindset of people who used to
believe that water was being provided for free and to accept that now the
service is being paid for.
“When customers do not do what they are supposed to do, we take stern measures
including cutting their water supply. There are customers who know their
responsibility and pay their bills in time and we negotiate with those who are
not able to pay their bills,” he said.
Bank records
increased profits
By Merline Mhamaka, Morogoro
CRDB Bank Morogoro branch has realized a profit of Tsh. 800 million
largely thanks to various business transactions carried out by the bank in 2004.
Branch Manager, Nanana Mpimbi said this during the 10th Shareholders’ Annual
General Meeting when presenting a progress report on the Bank’s operations for
2004.
According to Mpimbi, the profit is an increase of Tsh. 300 million from 2003.
The branch has a total of 2,113,180 shares which facilitated the increase of
deposits by 30 per cent.
The AGM elected four shareholders to be members of the Branch Advisory
Committee.
One of the elected members, Professor Beda Kessy called upon all shareholders to
closely cooperate with the executives of the Bank to facilitate profitable
operation of the Bank for the benefit of all shareholders.
Tourism boosts aviation
industry
By Damas Ayuke, Kigoma
Revenues from tourists visiting Kigoma has increased. Tourist
attractions have boosted the aviation industry with more tourists opting to fly
to the region to witness the region’s natural resources.
Tanzania Meteorological Agency Manager in Kigoma, Joseph Magida told The Express
that with adequate air transport facilities, tourists can move from one area to
another.
Magida said that most stakeholders of the air transport sector are aware of the
sector’s contributions to the national economy and called for further
improvements of infrastructure at Kigoma Airport, with the help of the
government. He hoped that to see a tarmac runway soon.
Kigoma Region is well known for Gombe and Mahale national parks.
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