Economist sees need for tapping into the informal economy

By Angela Mazula
After the good performance of Tanzania’s economy of late, the challenge ahead is to bring millions of people in the country’s informal sector into the formal sector, a senior economist has said.
Nikumbuka Shimwela, Chief Executive Officer of Kaput Company Limited, an economic and business consulting firm, said this during a discussion of businesspersons brainstorming different issues, organised by Vodacom.
“The economy is right on track, but we have to bring on board millions in the informal sector, who are marginalised, to play their role effectively,” he said.
He said that the Gross Domestic Product growth rate reached 6.3 per cent as at December 2004, while inflation was down to 4.2 per cent.
“This is quite a commendable achievement, if we look at where we came from 10 years ago, when inflation rate stood at 35 per cent and economic growth rates were very low,” he said, attributing the trend to bold reforms that the government had started to implement from the mid-1980s.
He said the way forward was to ensure efficiency in the money market, maintaining low and stable inflation rates, improving credit accessibility to the private sector and the formalisation of the informal sector.
“In Tanzania, we have cattle, land and property worth billions of shillings but have regarded them as useless for lack of relevant documents,” he said.
“This is also the case for millions of people, who are legally regarded as not in existence for lack of documents like birth certificates and physical residential addresses,” he explained.
He said there was huge economic potential in the undocumented assets. The challenge ahead is to bring them into the mainstream through what he termed as ‘paperisation and title-ing.’

back to headlines


Bar-workers exploited and exposed to HIV

By Angela Mazula
Bar owners have been urged to increase the salaries for barmaids and attendants, as a means of improving their employees’ lives. Such a move could also prevent the spread of HIV/AIDS infections.
Hussein Luambo, Chairman of Makangarawe Local government, told The Express recently that bar-owners should provide a forum in which they could come together with attendants and barmaids to air their grievances openly.
He explained that it was vital that barmaids be guided on safety measures against becoming victims of HIV.
Mary Anthony, a bar attendant said that many of them were drawn into illicit and multiple sex relations for the sake of getting money to supplement their extremely low salaries.
She added that normally a barmaid is paid between Tsh. 10,000 and Tsh. 20,000 per month, depending on the employer and the bar manager.
Mary stressed that barmaids should insist on the use of condoms because they are the ones who are going to suffer later for being infected.
Irene Andrew, a barmaid at Magomeni, said barmaids often lack employee contracts, and are being penalized for petty accidents like breaking glasses, for which replacement costs were deducted from their meagre pay.

back to headlines


Stop fiddling the accounts then you’ll get subsidies – R C

By Sebastian Gabunga, Mwanza
Mwanza City Council and Sengerema District Council are the only councils in Mwanza Region that have fulfilled the conditions required, and have qualified for subsidies from the Central Government with regard to development purposes, for the financial year 2005/06.
Mwanza Regional Commissioner, Daniel ole Njoolay, said this when speaking on the problems confronting district councils, which were causing them to fail to secure clean inspection certificates. He said the councils that failed to fulfil the required conditions were denying their people an opportunity of receiving funds.
He applauded Mwanza City Council, the only council to receive clean inspection certificates for four years. “Only Mwanza City Council has managed to obtain clean inspection certificates for four consecutive years, but the state of other councils is unsatisfactory and that is appalling,” Njoolay said.
He directed other councils to take into consideration all set conditions, including keeping proper account books yearly, in order to be awarded clean inspection certificates, which will enable them receive subsidies from the Central Government for the development of the people.

back to headlines


Self-sufficiency shown by general decline in imported goods - BoT

By Timothy Kitundu
The Bank of Tanzania has revealed that during January 2005, the decrease in all categories of imports is shown by the fact that they amounted to US$ 154.8 million (Tsh. 155 billion), compared with US$ 208.8 million (Tsh. 209 billion) in the previous month.
The February monthly economic review indicates that total capital goods imports declined by 24.7 per cent, on account of a decrease in machinery imports particularly of computers and mechanical appliances.
The review shows that consumer goods imports dropped by 36.7 per cent, as a result of a decline in the importation of maize following an improvement in food supply in the country.
According to the document, during the period under review, merchandise imports went up by 13.5 per cent to US$ 2,251.1 million (Tsh. 2,252 billion), as a result of a rise in the demand for certain consumer good imports.
The increase in importation of certain capital goods was largely associated with the expansion in manufacturing, mining and tourist activities.
The statistics indicate that the manufacturing sector has been growing progressively, from 5 per cent in 2001 to 8.1 per cent in 2003 and is set to grow further in 2004 and 2005.
The wholesale and retail trade, restaurant and hotel sector grew by more than 16 per cent over the same period.
The surge in consumer goods imports from US$ 583.7 million (Tsh. 584 billion) in the preceding year to US$ 743.1 million (Tsh. 744 billion) in the reporting period was largely attributed to a significant increase in importation of food particularly other cereals (not maize).
During the year, a total of 836,867 tonnes of cereals were imported compared to 807,987 tonnes imported in the preceding year.

back to headlines


Implications of African Caribbean Pacific and European Union cooperation

By Angela Mazula
Non-State Actors based in Zanzibar will be informed about the Cotonou Agreements and its applicability, in order to discuss Economic Partnership Agreement and its implications to Tanzania, and engagement in the policy processes regarding the African Caribbean Pacific organization and the European Union.
Speaking to The Express Tuesday this week, Zitto Kabwe, Project Manager of Friedrich Ebert Stiftung, said that this will be discussed in Zanzibar on Saturday during a two-day workshop.
He said, the workshop will finalise the issue of EPA to NSAs and make them aware of what is going between the ACP and theEU.
He added that the capacity to adapt and adjust their economies to the liberalisation processes which would constrain and challenge the ACP states, is to initiate the establishment of a unique and innovative free trade agreement with the EU, that addresses development concern.
He said that the future of East African Cooperation is envisaged in the East African Cooperation Development Strategy, where political cooperation is said to be “a foundation for cooperation in the economic, social culture and security fields.”
He said the objectives of the cooperation between Tanzania and Zanzibar are the reactivation of the political cooperation, and the promoting of peace, security and good neighbourliness and political federation.
He added that, due to achieving the goals of East African political cooperation, some measures have to be taken, such as introducing an East African standard travel document; but the East African flag is now in place, and the customs union is now under implementation.
He said that ACP countries have structured the negotiations around market access, agriculture, service, development issues, trade related issues and legal issues, but the EU concentrate particularly on agriculture, development issues and reform of the World Trade Organization rules.
However “A new set of legislation and regulatory mechanism must be enacted by ACP states, and that this translates into a huge financial technical and financial burden to these countries, and it has been argued that multilateral discipline in these areas should enhance global trade,” he said.

back to headlines


Civil Society Organizations should be recognised by the EAC

By Timothy Kitundu
The East African Community Secretariat, in conjunction with the GTZ (German), will host a two-day regional workshop for civil society organizations in East Africa today and tomorrow, at the Arusha International Conference Centre.
According to a statement issued by the EAC, the Secretary General of the EAC, Amanya Mushega, is expected to give a keynote address to the workshop, whose theme is: Civil Society mobilization for effective participation in the EAC.
According to the statement, the workshop will be attended by senior policy-makers in the NGOs/civil society organizations from the partner states, and by officials from the Ministries responsible for the registration of civil society organizations and regional cooperation.
Although the EAC process of regional integration originally did not accommodate civil society participation, many NGOs in the region followed closely the deliberations of the initial process. In 1996, the NGO community had already indicated that the EAC integration process had failed to recognize the role of civil society.
“Recognizing the urgency of being heard and of influencing the regional integration process, the East African NGOs met and formed a coalition with the aim of directly influencing the formation of the new EAC, and urged it to recognize the role of NGOs in poverty eradication, justice and social equity, the promotion and protection of human rights,” reads part of the statement.
The NGO Coalition of East Africa (NGOCEA) was therefore established in October 1996 as an umbrella organization for national NGO networks from Kenya, Uganda and Tanzania.
One of the main reasons for the formation of NGOCEA was to monitor closely the integration process and public accountability. To achieve this goal, NGOCEA presented a preliminary memorandum to the East African Community (EAC), which recommended that the EAC Draft Treaty provisions include a mention of civil society organizations, and give a definite role to non-state actors in the regional integration process.
The statements adds that only four East African Associations have been granted observer status by the EAC namely; the East African Business Council, the East African Trade Union Council , the East African Centre for Constitutional Development and the East African Magistrates’ and Judges Association.
The forthcoming regional workshop for the civil society organizations is therefore part of the EAC Secretariat’s mandate, of providing a forum for consultations between the private sector, civil society organisations and other interest groups, as enshrined in Article 127 (4) of the Treaty for the Establishment of the East African Community.

back to headlines


Farmers turn richer thanks to ICT tips

By Sebastian Gabunga, Magu
Growers of food and cash crops in Magu District, Mwanza Region, have said that the existence of information and communication technology in Magu District has enabled them to access market information and sell their products at better prices.
They said this during a one-day workshop, organized by SWOPnet-Mwanza Branch, held at the Centre for Crops Marketing Bureau (CROMABU) which is in Magu town.
Elias Lumashi, a farmer, said before CROMABU was established, he was growing millet on a subsistence level only as he thought it had no market. After CROMABU started searching for markets and providing information about various crop prices to farmers in villages, suddenly he discovered that millet had a market.
Before that, he said, he was also selling rice to businessmen at a throw-away price. But after acquiring market information and various crop statistics, he could sell his rice at a good price.
Another farmer, Marietha Lugata, said that thanks to ICT she got a good market for her tomatoes at Sirari in Tarime District, where she could sell a basket of tomatoes for Tsh. 10,000 instead of the Tsh. 5,000 she would obtain at Magu town markets.
Chairman of the CROMABU Board of Directors, Hirnoy Barmeda, said the centre had been officially established in 2001, with the aim of enabling farmers to have access to market information and crop prices from various parts of the country, through SWOPnet.

back to headlines


Young Tanzanian picked to attend development youth conference in Scotland

By Timothy Kitundu
A local youth development worker, Donnasian Ishenda from Dar es Salaam, will join some of the world’s young activists in the field of sustainable development, in Scotland under the sponsorship of BP.
BP has pledged £30,000 for a travel-scholarship fund for international delegates, and Ishenda is one of the lucky thirty-seven delegates to receive the funding.
Yvonne Macfarlane, BP Public Relations Head, said through a statement to The Express by BP Tanzania, that the third World Youth Congress aims at promoting the role young people can play in poverty eradication, peace, equality and environmental issues.
“The congress, to be held in Scotland from 30 July to 8 August, will provide a forum for 600 like-minded youngsters from all over the world, to come together to share their expertise and skills, spread best practice and improve links with young people in other countries as well as development agencies,” reads part of the statement.
The statement quoted Ishenda as saying, “When I heard BP is one of the main WYC 2005 sponsors I was very hopeful and happy, knowing that many young people will get the scholarship needed to attend the event”
Delegates will prepare a policy document to present to the United Nations General Assembly, that will recommend how governments can better target resources to improve the world we live in.Tim Smith, Communications & External Affairs Manager, BP Exploration, said that BP is proud to support the World Youth Congress 2005. The themes of the congress – youth, sustainability, human rights, education, health, poverty, and community – sit well with BP’s values.

back to headlines



Business News | Forex Week | Money Market | Corporate Report

Business Opinion | Bank Interest Rates | Capital Market Focus