City Water, privatisation; “govt role needs clarification” - Professor
Winner of Trade Fair furniture prize reveals secret of success
City Water,
privatisation; “govt role needs clarification” - Professor
By Kizito Makoye
Following the government’s decision to terminate City Water
Services’ contract for failing to deliver, a few months ago, an economist has
advised the government on appropriate approaches for privatisation.
Prof. Samuel Wangwe of the Economic and Social Research Foundation (ESRF) told
The Express recently: “In a market economy, a regulator is very important but in
this case the government seems to have tried to play both roles: client and
regulator. The two roles should be separated.”
He continued saying that measurement of performance should be given priority,
and benchmarks should be set right from the beginning of any contracts.
Continuous monitoring was missing in the case of City Water, he said.
“I would expect that in future, it should be categorically clear what the
obligations and responsibilities on each side are,” he said. “Monitoring
indicators should be traced over time, so ‘yellow lights’ can be signalled
before the red lights are put on.”
Wangwe said it is not difficult to operate a privatized service, as long as the
government follows appropriate procedures. He said the government should choose
the company to be given responsibilities carefully, taking into account previous
performance in other countries. He also observed that performance indicators
should be clarified, and proper monitoring be conducted over time.
He further said the problem of underperformance of utilities should be diagnosed
carefully before a decision to privatize is taken.
“Professional diagnosis will indicate what the problem is and what the solution
is; it is not always the case that privatization will be the solution, and even
where privatisation is the solution, the approach to be adopted will be
determined by a professionally-done diagnostic study,” he said.
According to Wangwe, privatization of utilities is very problematic even in
developed countries with a mature private sector.
Organic
farmers enjoy good times and will be gingered up
By Timothy Kitundu
The Export Promotion of Organic Products from Africa (EPOPA) will continue
supporting all farmers in Tanzania and Uganda who form themselves into groups.
Since April last year, it has been running a support programme under Sida, to
the tune of Euro 7 million, (Tsh. 9.10 billion) that will continue up to 2008.
Ray Mjunguli, an official at EPOPA, Tanzania, told The Express during the Dar es
Salaam International Trade Fair, that the number of farmers under EPOPA support
in the two countries has increased. Production of organic export increased from
20 per cent in 2003 to 73 per cent todate.
According to Mjunguli, Tanzania alone has a total of 5,400 registered farmers
under the EPOPA programme while Uganda has a total of 21,900 farmers.
“Under the programme, Tanzania exports organic Robusta coffee, and instant
coffee, cashew nuts, fair trade Arabica coffee, canned pineapples and honey,”
Mjunguli said.
He said the responsibility of EPOPA under the programme is to assist farmers in
the fields of management, technical consultancy, product quality management and
staff training.
“Once we have potential producers, the next step is to address the problems that
are facing them so that they can meet the market requirements. Thereafter we
financially support them in terms of certification costs,” he said.
Under the support of EPOPA, a new product, known as ginger in syrup, is in an
advanced stage towards commencing production. This product, which is being
cultivated in the Northern regions of Kilimanjaro and Arusha, will be the first
of its kind in the world.
The organization is providing expertise in the development of the products, and
where the expertise is not available it hires it from abroad. “If ginger in
syrup is exported, it will sell two and half times the original price of organic
products,” he said.
He said, following a farm survey that ended in 2004, EPOPA noted that
cultivation areas increased from 0.8 to 2 hectares per family and better houses
increased from 4 to 14 per cent.
The WDF has opened wide
the door for many women
By Express Reporter
Over 28,000 women have benefited from the Women’s Development Fund
(WDF) in 2003, as compared to only 757 in 1996.
Presenting estimates of expenditure for the Ministry for Community Development,
Gender and Children, in the Parliament on Monday, Dr. Asha- Rose Migiro said
there has been a huge increase in women who have benefited from the fund.
Migiro said the WDF’s starting capital was Tsh. 241 million, and by the year
1997 the capital had reached nearly Tsh. 1.4 billion.
The Minister said that the formation of the WDF has motivated many women in the
country to come together, and to form groups engaging in productive activities.
She pointed out that the women’s groups have increased from 1,207 in 2000 to
4,940 in 2004, adding that the ministry, in collaboration with the Equal
Opportunity for All Trust Fund (EOTF), has enabled over 1,000 women to
participate in the Dar es Salaam International Trade Fair.
“The success that most women, who are engaged in economic activities have
achieved, includes getting markets for their commodities, the improved quality
of the commodities, and an increase in income,” the Minister said.
The minister also observed that her ministry, in collaboration with the Ministry
for Justice and constitutional Affairs, has identified some laws which are
considered disadvantageous to women. She said the amendment to the land law of
1999 has enabled women to have an equal opportunity for owning and for using
land.
American
helping hand for small-scale farmers
By Angela Mazula
In a bid to improve income and employment opportunities for
micro-enterprises, DAIPESA, a US aid funded enterprise, has launched training to
strengthen different associations.
Talking to The Express at the Dar es Salaam International Trade Fair on Tuesday,
William Creighton DAIPESA Project Coordinator said that improving the policy and
regulatory environments for enterprises such as small-scale farms will help
their access to markets and strengthen their business capacity.
He said DAIPESA establishes business and associations’ groups that assist in
financing, and ensure that farmers get secure credits. He added that DAIPESA
offers advisory support and service in a wide range of activities.
Gervace Manjoro, Association Advisor, told The Express that DAIPESA finances
farmers who undertake the cultivation of fruits and different cereals with the
aim of improving production, in Tanga, Morogoro, Iringa, Rukwa, Mbeya and
Ruvuma.
Winner of
Trade Fair furniture prize reveals secret of success
By Timothy Kitundu
The winner of the furniture category at the ongoing 29th Dar es
Salaam International Trade Fair at the Mwalimu J.K. Nyerere Grounds in Dar es
Salaam, has said that their secret of success was their multiple display.
Furniture Centre Limited’s Branch Manager, Rahim Kassam, said on Tuesday that
possessing a number of attributes was behind their victory. The advantages
included the company’s ability to display multiple aspects of the art of
furniture. Their pavilion included an art gallery, an archive and a ‘house in a
house’ model plus the unique kitchen.
“What attracted most of our visitors, according to them, was the pavilion itself
being self- explanatory, the art of making all furniture using local resources,
the good quality and competitive pricing,” he added.
He said, the archive, or art gallery section displayed a number of furniture
pieces manufactured over a period of 40 years at the company’s factory.
The other attribute, according to Kassam, is the rare art of mixing two
different species of wood that are locally obtained, to make one piece of
furniture; citing as an example the mkongo or mkulungo (scientifically known as
semineria).
According to Kassam, one of the unique attractions was the biggest chair in
Africa, mounted at the entrance of the pavilion. It had consumed 3 metric tonnes
of timber and other materials, upon its completion.
Community
centres up and running in Mara
By Beldina Nyakeke, Musoma
Victoria Farming and Fishing Organisation (VIFAFI), a
non-governmental organisation, has spent Tsh. 26 million on the construction of
community centres in three villages of Kiagata Ward in Musoma District, Mara
Region.
VIFAFI Coordinator, Anillen Saria, said this on Monday, adding that the
organisation aimed at helping the people in bringing themselves development
through self employment.
The centres, he said, which are nearing completion, will also have offices for
supply experts and village government executives, who motivate people for
development activities, conference halls; and workshops for youths who have
completed technical education but failed to join institutions of higher
learning.
In constructing the community centres, he observed, his organisation has been
supported by the KMB Agency of Austria.
Inflation at
steady level despite ups and downs of goods
By Angela Mazula
Tanzania’s year-on-year inflation remained unchanged at 4.0 per cent
in May despite a drop in the prices of some food and non-food items, the
National Bureau of Statistics has said in a statement.
The statement said that the month-on-month inflation rate has gone down by 0.5
per cent compared to a rise of 0.4 per cent between March and April.
The statement added that the overall index also decreased to 113.2 from 113.8 in
April. The inflation rate for May and June 2005 has remained the same as it was
for April 2005. The country is aiming for an inflation rate of below 4 per cent
by the end of June 2005.
The cost of foodstuffs such as rice, maize flour, potatoes, cowpeas, groundnuts
and vegetables and fruits has gone down. Prices for clothing and footwear,
basins and water buckets also fell.
However, prices for items such as tea and soft drinks, schoolbooks and uniforms,
radios, cars and bicycles, taxi fares and soap have gone up.
PPF
welcomes privatisation and many new members
By Timothy Kitundu
The Parastatal Pensions Fund (PPF) has said that privatization of parastatal
organizations and public companies won‘t deprive it of its membership, instead
its scope for recruiting new members has in fact been increased.
Speaking to The Express early this week, at the ongoing 29th Dar es Salaam
International Trade Fair (DITF) at the Mwalimu J.K. Nyerere Grounds, PPF
Pensions Manager, Anthony Ndadavala said that the growth in membership is due to
the amendment of the Parastatal Pensions (PP) Act of 1978.
“To an ordinary person, privatization and leasing of public companies means
decreasing of membership as most of the privatised undertakings would cease to
qualify as members of PPF, which is not true,” he said.
According to Ndadavala the government foresaw the problem beforehand, hence it
had to amend the PP Act of 1978 to the PP Act of 2001, which among other things
defined the terms, ‘employee’, ‘corporation’, and ‘parastatal organisation’.
Under the old law, he said, private companies were not allowed to be members of
the Fund unless they had sought permission from the Minister, whereas only
parastatal companies with over 50 per cent of government shares were allowed to
join the Fund.
“Now things have changed since the amendment to the PP Act of 2001, as all
companies regardless of whether they are private or public are allowed to have
membership in the Fund, and this has also enabled members not to lose their
rights,” he said.
In his elaboration, he said, the amendment to the principal Act defined employee
as any person employed by a parastatal organisation, or any self-employed person
and parastatal organisation means any body corporate established by or under any
written law.
This includes the East African Community (EAC), any corporation within the EAC,
any company by registration and becoming a member, any company registered under
the Companies Ordinance in which the Government or any parastatal has shares.
In terms of expansion, Ndadavala said that the Fund has embarked on an
initiative whereby it has started recruiting members from the informal sector.
So far, the Fund has recruited over 1,000 Tea Farmers in Rungwe, and currently
the Fund is doing research on how it can slot in food vendors, popularly known
as Mama Lishe, and fishermen.
SME
sector cramped by negative conditions
By Angela Mazula
The full potential of the Small and Medium Entrepreneur (SME) sector has yet to
be fully exploited, due to the existence of a number of constraints hampering
the development of the sector, the government has revealed.
Speaking at the launching of the Trade Finance Clinics, held at the Dar es
Salaam International Conference Centre this week and organized by the World
Bank, Juma Ngasongwa, Minister for Industry and Trade, said that these include
an unfavourable legal and regulatory framework, poor business development and
the underdevelopment of infrastructure.
He said that the SME sector in the country has limited access to finance,
because the sector is being perceived as a high risk one. Also the inability of
the operators to fulfil the collateral requirements restricts the sector, and
many banks do not operate a SMEs financing window in addition to having limited
representation in the regions.
Israel Kamuzora, Director of the African Trade Insurance Agency (ATIA) and
Commissioner for Insurance in Tanzania, said that although the continent is
witnessing more investments, trends had revealed that Africa is not only losing
market shares but has been unable to make a significant contribution to global
trade.
Kamuzora added that banks in the region had an important role to play in
reversing that trend, and in creating an environment that was conducive to
increasing exports.
According to Kamuzora, the major contributing factor to this perception is poor
governance, war and civil strife.
Illegal
logging continues in Mvomero
By Merline Mhamaka
Eight hundred logs, illegally harvested at the villages of Wami
Luhindo and Wami Dakawa in Mvomero District, Morogoro Region have been nabbed
between March and June this year, despite the Minister for Natural Resources and
Tourism’s trying to prevent these practices.
The two villages have continued to harvest logs from designated Wami Mbiki Park,
while another 300 logs were nabbed at Kisaki Kidunda Village in the same region,
making confiscated logs amounting to 1,100. There were only 70 logs left when
the order for stopping harvesting was given.
The Chairman of the Designated Wami Mbiki Park Association, Majula Koila, said
that following this reckless harvesting, many business people have been making
excuses that they are collecting the left-over (70) logs.
The businessmen were being issued with permits to collect left-over logs, but
instead, they have been using the permits to harvest new logs and transport them
to Dar es Salaam, he said.
Through this dirty game 800 logs have illegally been harvested and transported
to Dar es Salaam.
When Morogoro District Council Natural Resources Officer, Ande Malango, was
approached for a comment, he confirmed the existence of illegal harvesting of
logs.
Adding, there are some companies which are still being issued with permits to
harvest more logs.
Wami Mbiki Park is situated at the centre of the three districts of Bagamoyo,
Mvomero and Morogoro Rural.
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