Privatisation plans of TRC must include workers, says TRAWU

By Timothy Kitundu
The Tanzania Railways Workers Union (TRAWU) has expressed its concern over government’s privatisation of Tanzania Railways Corporation (TRC) without the involvement of the workers.
TRAWU General Secretary, Sylvester Rwegasira said in Dar es Salaam over the weekend that the issue of involving workers in the matters of privatisation was still a problem.
“We have learnt a lesson from other privatised entities which brought about a number of problems to the workers, therefore we regard the matter as of utmost importance,” he said.According to Rwegasira, TRAWU has already communicated with the Presidential Parastatal Sector Reform Commission (PSRC) on the whole issue of workers’ involvement in the privatisation process.
Rwegasira said that the trade union will celebrate the climax of its 10th anniversary on May 17th. “Before TRAWU came into being there was no or little cooperation between railway workers in the country that could enable them to have one strong voice in protecting and defending their rights,” he added.
Other achievements according to Rwegasira include the cultivation of close ties between employers and employees, which have removed the enmity between the two parties.
He said railway workers in the country now enjoy a voluntary agreement between workers and their employer and that whenever there are events of retrenchment they enjoy full terminal benefits.
He said the 10th anniversary of TRAWU will take place in Mbeya whereby the Minister of Labour Youth Development, Professor Juma Kapuya will be the guest of honour.

back to headlines


EAC characterised by economic stability

By Timothy Kitundu
Central Bank Governors of the three East African (EA) countries, who met in Arusha last week, have noted with satisfaction the progress made in attaining macroeconomic stability in the three countries.
The governors, Daudi Ballali of Tanzania, Andrew Mullei of Kenya and Emmanuel Tumusiime-Mutebile of Uganda, met to discuss progress being made towards the implementation of decisions of the Monetary Affairs Committee of the East African Community (EAC).
A joint communiqué signed by the three governors indicate that during their meeting, interest rates, savings and instruments and institutions of monetary policy, as well as the need to ensure sustainable fiscal deficits were discussed.
The governors reaffirmed their commitment to work together with their respective governments in the design and implementation of policies directed towards achieving and sustaining macroeconomic convergence targets in the region and monetary union in particular.
They observed that in spite of unfavourable weather conditions and high world oil prices, the three countries achieved higher GDP growth in 2004.
They confirmed that the pace of economic growth would be strengthened as the three countries move towards greater economic integration. The communiqué further revealed that the governors were satisfied that annual underlying inflation in the three EAC countries remained within the 5 per cent ceiling convergence criterion, despite inflationary pressure during 2004 mainly arising from drought and rising oil prices in the world market.
They emphasized the need to continue with sectoral, structural and institutional reforms in order to reduce interest rate spreads, and also
to move towards greater macroeconomic convergence. Ahmada Ngemera, EAC Deputy Secretary General (Finance and Administration), underscored the significance of the integration process which is clearly emphasized in the Treaty.

back to headlines


Mkapa insists on unchanged policies

By Kizito Makoye
President Benjamin Mkapa has reaffirmed investors that there will not be major changes in the country’s policy during the fourth phase government if CCM is to win the elections in October this year.
In his speech at the 5th International Investors Roundtable for Tanzania meeting held in Dar es Salaam on Tuesday, the President said he is confident that his party will emerge the winner in the elections, adding that his successor will only build on previous achievements.
Foreign Minister Jakaya Kikwete was last week endorsed a presidential candidate for Tanzania mainland and Abeid Amani Karume is the candidate for Zanzibar on CCM ticket.
“Kikwete’s slogan during his nomination process was not a change of policy, but of ‘Ari mpya; nguvu mpya; kasi mpya’ i.e. ‘new zeal, new vigor and new speed in implementation of CCM policies’,” the President said.
Mkapa further said the nomination of the incumbent vice president as a running mate to Kikwete would reinforce the huge probability of the continuity of policies and strategy.
Mkapa underscored that the public-private partnership and the role of the private sector in the economy is part of CCM’s election manifesto, adding that the private sector needs support to propel economic growth.
He urged leaders of a probable future CCM government to give top most priority to external trade balance which is not yet satisfactory,
agricultural revolution to improve income sustainability and increase of exports.
Mkapa also said that the country needs to avoid commodity prices problem by adding value to agricultural products through processing.
“Mining, tourism, fisheries and other natural resources industries have huge potential for creating skilled and semi skilled jobs and economic growth,” Mkapa said.
This was the last IRT meeting that Mkapa chaired as the President of Tanzania.

back to headlines


Authorities ask for pavilion applicants to come forward

By Tunu Ally, Dodoma
Residents of Dodoma Region have been urged by Dodoma Urban District Commissioner to send applications to acquire pavilions for running their businesses at Nanenane Trade Fair in Dodoma Municipality.
Addressing residents last week, Dodoma Regional Commissioner (RC) Mussa Nkhangaa said the Regional Authorities had decided to conduct Nanenane Exhibitions every year in the region starting from this year.
He said, up to now the office of the Urban District Commission has already given 235 plots to people who had applied for business undertaking during the Peasants ‘Day (Nanenane) celebrations. As regards conditions, applicants must own a plot and start developing
it, including contributing a little money for provision of various services which will be needed in the area.
“I want to call on food vendors (mama ntilie) to show up in large numbers to apply for the plots as the number of the plots is still large, and they should do so, as soon as possible,” the RC directed.
The Peasants Day Exhibitions in the region aim at assisting farmers and livestock herders to trade profitably and have a sure market, Nkhangaa said.

back to headlines


Zanzibar economy under review

By Timothy Kitundu
The Bank of Tanzania (BoT) has revealed that Zanzibar government budgetary operations on cheques issued basis recorded an overall deficit of Tsh. 4.0 billion (before grants) during the quarter ending September 2004, compared to a deficit of Tsh. 7.1 billion recorded during the preceding quarter.
According to its latest issue of the economic bulletin for the quarter ended September 2004, after considering grants amounting to Tsh. 3.0 billion, the deficit declined to Tsh. 1.0 billion.
It adds that government revenue during the period from July to September 2004, amounted to Tsh. 13.3 billion, which is higher than the amount of Tsh. 11.7 billion collected during the quarter ending June 2004.
Revenue collection surpassed the quarterly target of Tsh. 2.8 billion by 3.9 per cent, largely due to the increase in taxes on imports, income taxes and other taxes associated with compliance.
Performance by revenue category reveals that tax on imports amounted to Tsh. 3.4 billion or 91.9 per cent of the projected Tsh. 3.7 billion. VAT and Excise Duty (local) amounted to Tsh. 3.7 billion, and was equal to the amount targeted for the quarter.
Income tax collections amounted to Tsh. 1.3 billion, surpassing the target of Tsh. 2 billion by 8.3 per cent. Collection from other taxes
category amounted to Tsh. 4.0 billion, being 17.6 per cent higher than the targeted amount of Tsh. 3.4 billion.
Non-tax revenue, according to the bulletin, amounted to Tsh.0.9 billion, and was also equal to the amount targeted for the quarter. Government expenditure during the quarter under review amounted to Tsh. 17.3 billion, representing 91.5 per cent of the targeted expenditure ceiling for the quarter of Tsh. 18.9 billion.
Total expenditure during the review quarter was also lower than the Tsh.18.8 billion registered during the preceding quarter. Recurrent
expenditure amounted to Tsh. 16.9 billion, accounting for 97.7 per cent of the total expenditure.
This amount was 8.2 per cent below the targeted expenditure ceiling for the quarter of Tsh. 18.4 billion. Wages and salaries accounted for the largest share of expenditure reaching Tsh. 12.2 billion or 72.2 per cent of total recurrent expenditure.
Other expenditures amounted to Tsh. 4.7 billion, accounting for 27.8 per cent of total recurrent expenditure.

back to headlines


Training on new labour laws underway

By Timothy Kitundu
The Trade Union Congress of Tanzania (TUCTA) under the TUCTA/DANIDA Component in collaboration with the University of Dar es Salaam Faculty of Law has designed a course in New Labour Law and dispute settlement.
Speaking to The Express in Dar es Salaam early this week, TUCTA Secretary General, Nestory Ngulla said that the course will have its main focus in mediation and arbitration.
According to Ngulla, the course with funding from DANIDA will train no more than 10 trainers who will in turn be requested to train
regional/zonal trade union representatives at the Mbeya Labour College.“Training to the regional/zonal representatives will enable them to
safeguard members’ interests in labour disputes at the level of mediation and arbitration,” he added.
The course, according to Ngulla, which which will be conducted in Dar es Salaam with a month’s duration, will train trainers who in due course will train a total of 400 representatives from affiliate trade unions tentatively between July 2005 and July 2006.

back to headlines


‘Entrepreneurship spirit necessary’

By Angela Mazula
The rationale for fostering an entrepreneurship spirit among the students of the University of Dar es Salaam goes hand in hand with the demand for entrepreneurship development in the country.
This is according to Dr. Donath Olomi of University of Dar es Salaam Faculty of Commence and Management (FCM) in an interview with The Express last week. He said that the recent changes in the global political and economic landscape have led to a growing need for enhanced economic competitiveness.
Dr. Olomi said that due to these challenges, DUSK graduates need to be more entrepreneurial. He added that the Tanzania vision 2025 places the private sector as the main engine for economic development but at present Tanzania’s private sector is still in its infancy.
“Nowadays graduates have to sell themselves in the competitive market; it has been observed that while a number of our graduates are unable to secure formal jobs, some companies recruit graduates from neighbouring countries,” he said.

back to headlines


UN underscores need for good governance

By Joshua Mshana
Developing countries need to have good governance, accountability and spearhead the war against corruption so as to attain meaningful economic development which is needed to reduce poverty and improving the living standards of people.
Dr. Kresley Amoako, Executive Director of UN Economic Commission for Africa (ECA) said this in a meeting in Addis Ababa, Ethiopia recently.
His remarks are published in a UN Development Programme (UNDP) Report. The theme of the meeting was “Good Governance for a Progressing Africa”.
“Leading voices across Africa and the common citizens of our continent are behind the demand for better governance. An increasingly active citizenry is championing the call for responsive government. The previous isolation of African society, media, youth, and business is decreasing.
And with all this comes a rise in pressure from the ground up, for performance and accountability,” he said. Two regional initiatives, the African Union (AU) and the New Partnership for Africa’s Development (NEPAD), underscore the importance African states are placing in good governance. All African countries have signed onto NEPAD, a development framework that stresses accountability as a prerequisite for economic progress.
NEPAD states that,” development is impossible in the absence of true democracy, respect for human rights, peace and good governance”.

back to headlines


Sugar production projected to climb

By Merline Mhamaka, Morogoro
Tanzania Sugar Board Director General, Mathew Kombe has said that the combined sugar production for the years between 2000 and 2010 is projected at 175 billion metric tonnes in the country.
Kombe said this when opening the Third General Conference of Tanzania Sugar Growers Association (TASGA) in Morogoro Municipality.
He said that the Ten Years Development Programme that started in 2000 will increase sugar production from 130,000 tonnes to 490,000 tonnes annually by 2010.
As regards markets, Kombe said that the distribution network is poor.  Adding that due to import of sugar without payment of Value Added Tax (VAT), the position of the sugar market in this country is in a difficult position.
He urged the government to charge VAT for imported sugar, so that the proportion of sugar prices for local and outside sugar remain the same. An ordinary Tanzanian uses 6 kilogramme of sugar per year.

back to headlines


EAC and Germany hold talks

By Express Reporter
The East African Community held its annual consultation with the delegation from Federal Republic of Germany on Development Co-operation this Tuesday to discuss issues of capacity building for the EAC including the construction of the EAC Headquarters, private sector promotion within the region, conflict prevention and areas of future cooperation.
The Secretary General of the East African Community, Amanya Mushega informed the Delegation on the achievements and setbacks of EAC “implementation of the Customs Union had started successfully and smoothly, although some problems were experienced, particularly with respect to imports of rice, used clothes and pharmaceuticals.”
The Head of the German delegation, Dr. Schneider-Barthold, commended the EAC Secretariat for the enormous work done within a limited time that led to important results in the integration process of EAC, such as the entry
into force of the EAC Customs Union Protocol.
Dr. Schneider-Barthold called for the continuous consultation in order to strengthen cooperation between EAC and Germany. “The annual consultation provides an opportunity to assess how EAC-German cooperation can be reoriented to suit EAC’s integration and development process,” he said.

back to headlines


Revenue from livestock below potential

By Bonventure Mtalimbo, Morogoro
Tanzania currently has 17 million heads of cattle, 13 million goats and larger flocks of poultry, but money generated from the animals contribute little to the National Gross Domestic Product.
This was said by academic staff from the Sokoine University of  Agriculture (SUA), when outlining the factors limiting crops and
livestock productivity and their effect on households’ food security and income.
There are a number of factors which hinder the development of the agriculture sector in the country, among them being lack of adequate
coordination and focus of government policies.

back to headlines


 

 

back to headlines


Business News | Forex Week | Money Market | Corporate Report

Business Opinion | Bank Interest Rates | Capital Market Focus