Banks continue
to do well
By Timothy Kitundu
The performances of the major banks in the country continued to be
impressive for the first quarter ending March 31st, 2005. All major banks
recorded profits.
A statement from CRDB Bank indicates that the bank made a net profit of Tsh.
3.822 billion. The bank’s profit before tax stood at Tsh. 5.462 billion compared
to the previous quarter where profits before tax stood at Tsh. 2.998 billion.
The bank paid a total of Tsh. 1.640 billion in taxes; an increase compared to
last quarter where taxes totalled Tsh. 900 million.
Interest income realized by the bank increased to Tsh. 9,018 billion in the
quarter under review compared to the previous quarter where it recorded an
interest income of Tsh. 6.562 billion. The bank’s interest expense was Tsh.
1.411 billion compared to Tsh. 925 million for the previous quarter.
The bank’s records show that total assets stood at Tsh. 486.703 billion in the
quarter under review, compared to Tsh. 450.605 billion the previous quarter. The
bank’s customer deposits increased to Tsh. 428.583 billion compared to the
previous quarter which recorded Tsh. 396.511 billion.
The bank’s loans, advances and overdrafts or net of allowances for probable loss
increased from Tsh. 115.998 billion the previous quarter to Tsh. 121.444 billion
for the quarter under review.
Citi Bank Tanzania Limited, a subsidiary of Citigroup, recorded a net profit of
Tsh. 3.771 billion compared to Tsh. 3.350 billion realized in the previous
quarter. Profit before tax stood at Tsh. 5.840 billion, while the same in the
previous quarter stood at Tsh. 4.391 billion.
Taxes paid by the bank increased to Tsh. 2.069 billion in the quarter under
review compared to Tsh. 1.580 billion being total taxes paid by the bank in the
previous quarter. The bank’s interest income slightly increased from Tsh. 9.498
billion the previous quarter to Tsh. 9.546 billion in the quarter under review.
The bank’s balance sheet indicates that total assets amounted to Tsh. 1.760
billion in the quarter under review recording a slight increase (Tsh.1.787
billion was recorded the in the previous quarter). The bank’s total deposits
decreased to Tsh. 170.371 billion for the quarter under review compared to Tsh.
254.912 billion the previous quarter.
The loans and advances portfolio for the bank decreased to Tsh. 69.749 billion
the quarter under review, from Tsh. 84.056 billion recorded in the previous
quarter. The total liabilities stood at Tsh. 205.194 billion while the same
stood at Tsh. 265.925 billion the previous quarter.
Stanbic Bank Tanzania Limited recorded a net profit of Tsh. 575 million for the
current quarter ending March 31st this year, which is a significant achievement
compared to a loss of Tsh. 1.070 billion the previous quarter.
However, the bank’s interest decreased to Tsh. 3.736 billion during the quarter
under review, being Tsh. 4.702 billion the previous quarter.
The bank’s total assets for the current quarter stood at Tsh. 248.858 billion, a
slight decrease compared to the Tsh. 251.628 billion recorded in the previous
quarter. The bank recorded an increase in total deposits; Tsh. 188.463 billion
compared to Tsh. 175.865 billion recorded in the previous quarter.
National Bank of Commerce (NBC) Limited, one of the largest commercial banks in
the country, maintained its profit at Tsh. 11.069 billion in the quarter under
review. In the previous quarter it recorded Tsh. 11.268 billion.
The bank recorded a slight increase in income before taxes: Tsh. 14.601 billion
compared to Tsh. 14.140 billion recorded in the previous quarter. Taxes paid by
the bank increased from Tsh. 2.872 billion the previous quarter to Tsh. 3.532
billion paid for the current quarter.
The bank’s total assets increased from Tsh. 432.814 billion the previous quarter
to Tsh. 461.294 billion recorded in the quarter under review. Total customers
deposits increased from Tsh. 346.249 billion to Tsh. 368.366 billion recorded in
the current quarter.
The bank’s loans advances and overdraft bills increased from Tsh. 149.407
billion the previous quarter compared to Tsh. 178.614 billion in the quarter
under review.
The Standard Chartered Bank Tanzania Limited recorded an increase in net profit:
Tsh. 13.701 billion in the quarter under review, compared to Tsh. 9.786 billion
recorded in the previous quarter.
The bank’s profit before tax increased to Tsh. 20.111 billion in the current
quarter compared to Tsh. 14.121 billion recorded in the previous quarter. Total
taxes paid by the bank in the period under review increased to Tsh. 6.410
billion compared to Tsh. 4.335 the previous quarter.
The bank’s assets increased to Tsh. 398.179 billion during the period under
review compared to Tsh. 341.035 billion recorded in the previous quarter.
Likewise, customer deposits increased to Tsh. 302.579 billion compared to Tsh.
240.288 recorded the previous quarter.
The bank also recorded an increase in the loans and advances to customer’s
portfolio from, Tsh. 131.846 billion recorded in the previous quarter to Tsh.
200.073 billion recorded in the period under review.
Generally, all five banks performed well.
Simple farming
equipment could reduce poverty
By Kizito Makoye
A passionate Austrian farmer entrepreneur has arrived in the
country, expressing optimism over the introduction of appropriate farming
technologies helping local farmers fight poverty.
In an exclusive interview with The Express last week Herman Weigl said Tanzania
has a lot of farming potential and that if utilised appropriately could remove
many farmers from the cycle of poverty.
“When I was in Europe I had a totally negative feeling about this continent, I
thought that Africa is all bush land without water not even infrastructure, but
when I arrived the situation was totally different,” said 52-year-old Weigl.
Weigl is running a factory producing equipment for farmers in Austria, but now
intends to move his business overseas and set up a factory in Tanzania. The idea
is to use local manpower in the factory.
Among the equipments he introduced is the scythe, a special instrument for
cutting grass (for feeding animals) which is more effective than a machete.
“With a scythe you are able to work 10 times quicker than with a machete. So you
can get much more grass, which dry to become hay,” he said.
“If you are able to cover one hundred square metres with a machete in one day,
then you could mow ten times more with a scythe a day,” he said.
He said that one scythe costs Tsh. 50,000 and a farmer can use it for over five
years depending on usage. Agriculture experts from Sokoine University of
Agriculture (SUA) where the farmer did his demonstration have appreciated its
efficiency.
The scythe was invented in the 15th century by a smith. Without a scythe, crop
rotation is impossible. The instrument is mostly used in Austria; 70 years ago
95 per cent of the Austrian population were farmers.
Tanzania
affected by WTO quarrel
By Timothy Kitundu
Tanzania and other sugar protocol countries will be indirectly
affected by the World Trade Organization (WTO) appeal body that has upheld the
August 2004 ruling in the challenge brought by Australia, Brazil and Thailand
against the European Union’s (EU) exports of subsidized sugar.
EC Delegation Information Officer, Neema Kambona said Tuesday through a
statement that as a result of the ruling, the EU will be required to reduce the
volume of sugar exported with subsidies by 1.6 million tonnes.
Kambona further said, implementation of the ruling is required ‘within a
reasonable time’ which, since the decision will require amendments to EU
legislation, is likely to be from 10 to 15 months.
“The ruling has an indirect effect on sugar protocol countries, including
Tanzania. The EU’s commitment to import agreed amounts from these countries
remain in place, at least until 2007,” she added.
EU will cut its own production levels in order to comply with the WTO ruling.
The final ruling on the WTO complaint clears the way for EU’s reform of its own
internal sugar market regime.
Tanzania
targets Chinese tourists
By Apolinari Tairo
A team of 16 tourism executives and marketing officials from
Tanzania have recently participated at the Beijing International Travel and
Tourism Mart (BITTM) in an effort to sell Tanzania’s tourist attractions and
services to the fast growing Chinese market.
The five-day long BITTM exhibition which ended last week attracted hundreds of
tourism and travelling companies from almost all over the world.
BITTM has provided an important link between the rapid growing Chinese travel
and tourism industry and the needs of the global tourism industry, including
third world countries like Tanzania and other states which have taken tourism as
one among their economic ventures, a statement from the Tanzania Tourist Board
(TTB) said.
Tanzanian tourism executives representing TTB, Wildlife Division, Ngorongoro
Conservation Area Authority (NCAA), Takims Holidays Tours and Safaris, ML Tours
and Safaris, Antelope Safaris and Tours, Zara Tanzania Adventure, Cordial Tours
and Travel Services, Zenith Tours, Kilimanjaro Crown Bird Tours and Peacock
Hotel were present.
China is the world’s largest single consumer market and it is currently
projected that the China outbound market will grow to 100 million tourists by
2020. Chinese expenditure on travel is also growing by 27 per cent annually.
Tanzania participated in the BITTM following the signing of an Agreement on
Destination Status (ADS) last year in Beijing between China and Tanzania.
China International Travel Service (CITS), the largest tour operator in China,
has granted its full support to the BITTM of which Tanzania has benefited to a
certain extent.
CITS is the first among 100 top travel companies in China and the most
outstanding enterprise, with annual turnover of over US$ 500 million, and in
2002 the company served a total of 2.5 million tourists.
During the BITTM fair, team Tanzania operated from its specially designed
pavilion decorated with various photographs and other tourist promotional
materials to ensure an impact on the Chinese travel trade, showcasing the unique
attractions found in the country.
The other target has been “business to business” contacts for the Chinese
outbound tourists interested to visit Tanzania.
Bank of
Tanzania aims at low and stable inflation
By Timothy Kitundu
The Bank of Tanzania (BoT) has said that during the second half of 2004/05
financial year, the primary objective of monetary policy will continue to be
directed towards maintaining appropriate level of liquidity in the economy to
ensure low and stable inflation.
In its Midterm Review contained in the Monetary Policy Statement of January
2005, it says that recognizing the challenges of liquidity management against
the backdrop of continued high donor inflow, the BoT will put in place measures
to ensure that the evolving liquidity situation does not re-ignite inflation.
The measures, according to the review, will include improving the efficacy of
the existing monetary policy instruments, improving liquidity forecasting
framework and introducing new policy instruments in response to challenges of
monetary policy implementation.
As for the private sector, credit to this sector is expected to grow stronger,
as efforts to improve credit accessibility continue to be undertaken under the
second-generation financial sector reforms.
“Restructuring and privatization of the remaining state owned banks will also
bring about more competition and efficiency in the banking system,” reads part
of the review.
In addition, BoT will soon complete the work of putting in place an effective
regulatory and supervisory framework for micro-finance institutions, which will
facilitate broader coverage of micro-finance services based on best practices.
BoT will also continue to strengthen the Export Credit Guarantee Scheme (ECGS),
while the pilot scheme for guaranteeing SMEs is expected to become operational
during the second half of the financial year.
In terms of interest rate policy, the Treasury bill market will continue to be
the anchor for determined interest rates.
To enhance effectiveness of the anchor, the bank will continue to observe its
commitments towards promoting efficiency in the money market and the banking
system in general.
It is also expected that as competition in the financial system continues and
risk to lending to the private sector is reduced as a result of ongoing reform,
the interest rates applied by commercial banks will move close to Treasury bills
yields, and the spread between the deposits and lending rates will continue to
decline.
Agriculture in
focus for EA countries
By Angela Mazula
The East African countries are seeking to strengthen their
agricultural sectors so as to identify areas where the European Union is pushing
for liberalization.
Speaking in Dar es Salaam recently, Dr. Otieno Odek, a lecturer with the Nairobi
University said that premature liberalization could undermine the process of
structural transformation in East African governments.
“The preserve economic policy needs space for the national and regional
strategies for economic transformation. In light of the trade arrangements, the
EU is seeking for its export to EA markets,” he said.
He said the government will need to identify the product areas where the
elimination of import duties on goods from the EU could be unfair, increase the
competition for local markets and identify how to deal with these products under
moves toward free trade with the EU.
The EA countries in association with private sector interests will need to
identify their product areas where tariff reduction still needs negotiation and
develop strategies to overcome the various non-tariff barriers which are
constraining export to the EU market, he stressed.
Entrepreneurs
told to step up competition
By Angela Mazula
Tanzanian entrepreneurs have been called upon to be extra active
competitors in the East African market and take advantage of the Custom Union;
this according to a Senior Lecturer at the University of Dar es Salaam.
Speaking to The Express Tuesday this week, Dr. Donath Olomi of UDSM
Entrepreneurship Centre said Tanzanians should compete with others in order to
make their businesses grow.
“Between 1991 and 1995, the number of graduates who qualify to the field was low
but now the number has increase from 0 to 1,582 graduates,” he noted.
He said that entrepreneurs should develop their objective so as to acquire a
strong capability and good reputation and create and sustain an environment
conducive to enterprise activities.
RUMAKO boosts
its capital
Damas Ayuke, Kigoma
Coffee Farmers Primary Cooperative Society (RUMAKO) in Mtyazo
Village in Kigoma District has succeeded to buy shares worth Tsh. 11,520,000
between 2000 and 2005.
A report of the Society’s activities during the period under review was given by
RUMAKO Chairman, Omari Mahwisa to Kigoma Regional Commissioner, Retired Colonel
Elmon Mahawa, when closing a training course attended by 1,078 RUMAKO members.
The shares were purchased through contribution by the members, he said, after
selling their coffee to other cooperative societies.
When the cooperative society was established he said further, it had only 45
members with a capital of Tsh. 109,000 from members residing in the villages of
Mtyazo, Mkabogo and Rusaba. But the number has been multiplying.
Coffee production has also increased from 204,459 kilogramme to 598,298
kilogramme collected in the 2004 period.
From these achievements, RUMAKO was able to start an Input Fund for purchasing
inputs and distributing them to members. The Fund presently boasts of a balance
of Tsh. 39 million.
During the 2004/2005 season, he said, the society bought inputs amounting to
Tsh. 101,189,170 which were distributed to members for use in their coffee
farms.
Yet, the farmers are confronted with another problem that of lacking good and
modern coffee seeds for growing coffee.
RC turns to
business community for help
By Beldina Nyakeke, Musoma
Businessmen in Mara Region have been directed to invest in agricultural
irrigation along Lake Victoria, to save inhabitants from famine which often
confronts them.
The call was made in Musoma town by Mara Regional Commissioner (RC), Ambassador
Nimrod Lugoe when opening a Regional Consultative Council Meeting of Tanzania
Chamber of Commerce, Industries and Agriculture (TCCIA).
The RC said Mara Region has been faced with the problem of famine, due to little
rain that followed the long dry seasons.
Businessmen in the region should form an agricultural company and get
consultancy services from the agricultural sector in his office, Lugoe said.
Nobody who wants to invest in agricultural irrigation along Lake Victoria will
be hindered, the RC said but the important thing is fulfil the conditions needed
by the Ministry of Land.
Dodoma
District Council predicts revenue collection
By Danny Eliah, Dodoma
Dodoma Rural District Council in Dodoma Region projects to collect
nearly Tsh. 8.5 billion from various sources of its income and subsidies from
the Central Government in the 2005/2006 financial year.
This was contained in a report of the District Council Executive Director, read
on his behalf by Kailima Ramadhani (District Personnel Officer) at a councillors
session held last week in Dodoma Municipality.
An analysis of the Council’s income shows that a total of Tsh. 152,000,000 will
be collected from the District Council’s sources of revenue, Tsh. 416,765,000
from government subsidies to compensate abolished levies and Tsh. 3,797,242,316
from salary subsidies.
During the same period, the Council expects to spend Tsh. 5,225,208,897 on
various development undertakings including recurrent expenditures.
The Council will also receive a total of Tsh. 7,874,637,897 as subsidies from
the Central Government which will cover costs for education services, health,
agriculture/livestock, water, construction of roads, administration including
project subsidies.
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