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LAST UPDATE: 24/9/2008 - 5:58PM EAT

Sunday, November 16, 2008

How much it will cost the country

I saw this article from SUNDAY OBSERVER and I just had to share it with you all. Currently, there are strikes going on in higher learning institutions to complain about the level of funding the students get from the Government. This thing seems to happen every year; the Government never seems to be able to resolve it because they say they lack the funds to. Yet in these hard times, and a looming global economic crisis; at a time when teachers are complaining about the low wages they get, and citizens cry about the lack of affordable health-care, the Government has the audacity to propose an increase in Parliament!?


2008-11-16 12:00:00
By The Guardian on Sunday Team

The newly proposed parliament size that will increase the number of MPs from the current 232 to 360 in 2010 will cost the taxpayers an extra stunning Sh43.94billion, should the proposal by the ruling party be approved.

The amount includes salaries and allowances for five years, interest- free car loan and gratuity for the lawmakers.

This amount can fully funds 5000 university students for four years or can build 380km of tarmac roads.

If the proposal submitted by the ruling party sail through, the taxpayers will have to pay Sh15.984billion as annual salaries and allowances to their law makers.

This amount is 55percent extra cost to what taxpayers who are reeling with war against poverty in a country where half of the 38million plus population still survive in a less than a dollar per day, pay their current 232 MPs.

With the current size of the parliament, the nation is paying a heft pay amounting to Sh10.3billion per year, apart from interest free loans granted to the legislators as well as the annually sitting allowances.

The interest free loans for the MPs� posh cars will cost Sh7.2billion if after 2010 election will adopt the proposed 360 lawmakers.

Not only that but also, taxpayers will have to dig deeper into their pockets to pay the gratuity amounting to Sh9billion to proposed 360MPs when their five year term expires.

This is a 55 percent extra to what the current legislators will pocket in 2010 when their term expires.

But this cost is subject to increase, depending on how the lawmakers would review their heft pays after the 2010 election as well as the country`s economic trend.

Currently, the MP receives Sh1.5million as basic salary, Sh700,000 as constituency allowance, Sh500,000 as fuel allowance, plus another Sh 500,000 as driver/ car maintenance allowance, per month.

The lawmakers also receive another Sh500,000 for personal assistants per month.

During parliamentary sessions a legislator earns Sh80,000 per day as sitting allowance.

The longest session is the budget session which takes more than 70 days from mid-June to August compared to three other sessions lasting a fortnight each in January, April and October each year.

The MPs also are entitled to receive a gratuity amounting to Sh25million after the end of their five years term.

In terms of size, the Tanzania parliament will be bigger than highly developed African countries like South Africa, according to the available online information.

South Africa with an estimated population of over 45million plus annual Gross Domestic Product valued at $170billion owns the quarter of Africa�s economy, according to the World Bank report of 2007.

In East Africa, the proposed parliament will be leading in terms of size, being followed by Uganda which has 332 MPs, while Kenya will be the third with 213 MPs.

Thursday, November 13, 2008

NBC YAWANIA TUZO YA BENKI BORA AFRIKA


[Habari kutoka MICHUZI BLOG]


Benki ya Taifa ya Biashara (NBC), moja ya benki zinazoongoza nchini imechaguliwa kuwa miongoni mwa benki 7 zitakazoshindania Tuzo za Benki Bora Afrika.

Tuzo za Benki Bora Afrika zinatoa heshima kwa juhudi za mageuzi ya kiutendaji, mifumo ya kisasa ya ufanisi na utendaji pamoja na ukuaji wa sekta ya kibenki barani Afrika. Tuzo hizi zinakusudia kusimika uwezo wa taasisi za kibenki zinazoongoza barani Afrika na watendaji wake ambao wanazidi kupanua uwezo wao katika sekta ya mabenki ulimwenguni.

Akizungumzia tukio hilo la kihistoria kwa benki hiyo na wadau wake, Mkurugenzi Mkuu wa NBC Christo de Vries alisema, “Haya ni mafanikio ya hali ya juu kwa NBC na utamaduni wetu wa ufanyaji kazi. Tuzo za Benki Bora Afrika zinawatunuku watendaji waliofanikiwa zaidi katika nyanja ya mabenki barani Afrika na kwetu sisi hii ni hatua kubwa katika njia tuliyoanza kuipitia tangu tulipoanza shughuli zetu hapa nchini.”

Tuzo za Benki Bora Afrika zinatambua mchango wa watu na taasisi za fedha zinazofanya juhudi za kuleta maendeleo barani Afrika na kusherehekea mafanikio ya mageuzi ya sekta hii nyeti. Tuzo zitatolewa kwa washindani waliochangia ufanisi mzuri katika sekta hiyo barani humu kwa mwaka 2007 katika makundi mbalimbali 17.

Uteuzi huu unaiweka NBC kwenye kundi moja na benki nyingine kubwa 6 Afrika nzima ambazo ni Attijariwafa Bank, Banco International de Mozambique, Intercontinental Bank, Oceanic Bank, Standard Bank na Zenith. Utaratibu wa kumchagua mshindi utafanyika mjini Washington DC, Marekani.

“Sote tunatambua kuwa kuchaguliwa huku kusingewezekana bila ya mchango mkubwa toka kwa jamii nzima ya NBC. Hatua hii imekuja wakati ambapo benki hii inapata changamoto tele toka kwa benki zingine mbalimbali na mazingira yanayobadilika kila wakati.
Itakubalika kuwa kuchaguliwa huku kutatoa msukumo mkubwa kwetu sote kama wafanyakazi na benki yetu kwa ujumla,” aliongeza de Vries, akigusia nafasi NBC iliyomo katika soko la mabenki nchini Tanzania ambapo benki hiyo imekuwa ikiendelea

Thursday, November 6, 2008

THE SECOND GENERATION OF FINANCIAL SECTOR REFORMS

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[Photo courtesy of: Muhidin Issa Michuzi]

OPENING SPEECH BY H.E. JAKAYA MRISHO KIKWETE, PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA DURING THE CONFERENCE OF FINANCIAL INSTITUTIONS, ARUSHA, 6TH NOVEMBER, 2008


Hon. Mustafa Mkullo, Minister for Finance and Economic Affairs;
Madame Antoinette Sayeh, Director for Africa Department, IMF;
Mr. Gray Mgonja, Permanent Secretary, Ministry of Finance;
Professor Benno Ndulu, Governor of the Bank of Tanzania;
Deputy Governors of the Bank of Tanzania;
Leaders and Representatives of Financial Institutions in Tanzania;
Distinguished Invited Guests;


(I recognize Mzee Mtei, Bob Makani and Mr. Mbaya;
Ladies and Gentlemen.

Introduction
It is, indeed a pleasure for me to be afforded the opportunity to address such an important conference which brings together the practitioners of the financial institutions that are so key, to the realization of the growth and development of Tanzania.


Since independence, the hope for each Tanzanian has been better life. Building and nurturing a nation whose people are free of ignorance, disease and poverty have been the hallmark aspirations, guide and preoccupation of the successive administrations in our dear country.

Today, the
vision that underlies our socio-economic agenda and programs still carries these great dreams of each Tanzanian since dawn of independence.
History has over time taught us that success in achieving these goals sustainably lies ultimately in the private sector’s maximum involvement in economic activity.

It is in recognition of this important fact, that the reforms that we have undertaken over the past two decades have brought the private sector to the centre of the economic development agenda in our country.
As you all know, human intellect and entrepreneurship are among the greatest assets any nation can have.

But the best ideas, as truly as they are human, will hardly get off the ground effectively, without being properly nurtured and empowered. Financing is critical in this regard. It does not matter whether the idea is big or small.
A widow, who is struggling to feed her children, may identify a good market for pancakes that she knows she can easily take advantage of. A good market or a good idea without finance, will not enable this woman realize her ambition to change her life.
A graduate of agricultural science may identify a fertile peace of land suitable for a crop that has good local and global demand. He knows what to do to get maximum output from the land, but without finance his knowledge will be worthless. Likewise, an investor with an excellent idea about a good project is helpless without finance.

Tanzanians are a very resourceful people. They are full of good ideas which can transform this nation into the dreamland of our people. But, without proper financing though, those man y ideas will not be realized. It is just as good as having no ideas at all.

I am saying this, Mr. Governor and distinguished representatives of the financial institutions, just to remind ourselves of the importance of having a financial intermediation system that efficiently collects the funds from those who have money to spare, and channel them to those in need of funds for investment. Morden civilization has been made possible and sustained by credit flows—a fact that is even more clear now that, the world is going through a financial crisis.

Our entrepreneurs—small and large—need reliable, accessible and sustainable sources of financing. Providing funds at reasonable cost, remains a major challenge in our country, more so for people in the rural areas and small enterprises.

That is why, Governor and distinguished delegates, I consider this meeting to be an opportune moment for me to address officials who are best placed to give us answers as to how this gap can be filled and indeed, bring those answers to reality.

First Generation Financial Reforms in Tanzania
Before identifying the challenges ahead let me reflect on the ground that we have covered in addressing the financial sector problems in our country. We are, today, in the middle of financial sector reforms whose first phase started in the early 1990s.

Two important pieces of legislations were passed in the first half of the 1990s, namely:
The Banking and Financial Institutions Act 1991 which opened up the financial sector to private capital both local and foreign, and;
The Bank of Tanzania Act 1995 that shed the non-traditional functions off the responsibilities of the Bank of Tanzania and gave the Bank the independence it needs in pursuit of financial and price stability, which the Act made the primary objective of the Bank.

I am happy to have been associated with the conception and passage of the BOT Act. At that time I was the Minister for Finance.

Both acts have now been revised in 2006 to match with the changing times and needs of modern financial sectors.

Several additional laws were enacted which gave the financial sector its current market based character. The Foreign Exchange Act 1992, that among others provided for the administration and management of dealings in gold, and foreign currency and the Bureau de Change Regulations of 1992 that, provided for establishment of bureaus de change are cases in point. The other is Capital and Securities Market Authority Act 1994 that formed the Capital and Securities Market Authority and laid the ground for establishm ent of the Dar es Salaam Stock Exchange in 1996.

Today, distinguished participants, a decade and half since the financial sector reforms began, notable strides have been made in provision of financial services in our country. Allow me to mention some of them here. These include:
The number of financial institutions has increased and their efficiency in provision of services has improved.

From only three public owned banks in early 1990s, the number of banks has increased to 35; We have seen success in refocusing monetary policy to price stability as evidenced by the decline of inflation from rates ranging between 20 and 30 percent before 1995, to single digit rates since 1999. This is an indication that our economy has become remarkably resilient to shocks. For instance while the recent food and oil price shock has caused inflation to soar in many nations around us inflation in Tanzania has increased by much less;


Tanzanians have a wider range of instruments to put their savings in now. They are no longer limited to only cash and shilling bank deposits, but they can also put their savings in government securities, shares and foreign currency;
Exchange rate and interest rates are now market determined and I trust the markets are, as expected, making better allocation of the financial resources, on the basis of where the highest return is. This has contributed to the steady increase in the strength of our economy that we have witnessed in the recent past; and Credit to the private sector has expanded substantially as the government become less and less dependant on bank borrowing to finance its activities.

Ladies and Gentlemen;
These, are by any standard, not trivial achievements. They are significant and you deserve praise from all of us. You are the ones who are at the centre of it all. As we celebrate these achievements, I want us not to forget how far we have come and how far we still have to go.

Challenges to Financial Sector
Let me now say something about some of the key challenges that financial sector faces in the work of supporting growth of the Tanzanian economy and improvement of the livelihood of the this great nation of ours.

Ladies and Gentlemen;
Access to bank services in Tanzania is still very low even by sub-Saharan Africa standards. In 2004, only about 5 percent of our people had bank accounts compared to the sub Saharan Africa average of 26.8 percent.

The 2001 Household Budget Survey showed that the average distance to a bank in 15 out of the 21 regions of Tanzania Mainland exceeded 25 kilometres.
In some reforms new outreach challenges have surfaced. For instance, the question about how to broaden access to finance when private banks have rolled back their branch network to ensure profitability? Can we use modern technology to address this challenge?

As we all know the majority of Tanzanians live in rural areas and depend on agriculture for their livelihood. But, agriculture is faced with numerous constraints which can be overcome by availability of inputs and other resources. It is, therefore, important that we enable rural Tanzanians to have access to credit to enable them overcome the constraints. I have recently talked about opening a window in Tanzania Investment Bank to channel credit to agriculture as a first step towards the realisation of the age old dream of establishment of an agricultural bank.

This is a challenge that needs to be operationalized. An even bigger challenge for you is how to make sure that at the retail end, the credit will reach as many Tanzanians as possible. I am told in some countries banks set aside a certain percentage of their resources for agriculture credit. Can we emulate such examples?
Mr. Governor, Delegates, Ladies and Gentlemen;
Banks and financial institutions can also be helpful in supporting value addition to agricultural commodities. We now have examples of outgrower schemes which integrate production by small holders, large scale producers and processing plants. This is happening in sugar cane and sugar production, tea and even fruit production and canning in Morogoro. This approach has helped small farmers to get extension services and access to credit to mechanize cultivation and get other inputs. I challenge all financial institutions in the country to help promote and expand credit to the agricultural sector. This way Tanzanian farmers would be enabled to increase productivity hence raise their incomes and improve their livelihood.
There are new products that are just emerging now which could also be helpful both to small enterprise and rural communities. One of these is lease financing where with a small deposit and the asset as collateral, more Tanzanians can have access to small machinery and other equipment to improve productivity. In this regard, small tractors, bakery equipment, small transport equipment etc. will be easily available to small holders and enterprises. It is my hope that this instrument will not be used to finance purchase of luxury cars but to raise the opportunities for income generation for a much wider range of Tanzanians.
Affordable credit is an important facilitator for investment and growth. Credit in Tanzania is still too costly and therefore not within the reach of the majority of Tanzanians. Partly this situation arises from extremely high risk premium that banks place on potential borrowers and partly because of insufficient competition in the sector. The government over the past ten years has reduced substantially its share of total domestic credit and therefore, is much less of a problem in terms of crowding out the private sector. Unfortunately, most of the credit released tends to sit in the banks as excess liquidity instead of being lent out. As a result the cost of credit made to the private sector has to be borne by the small part that is lent. I am happy to note that the interest rate spread has been declining but the cost of finance still remains too high.
I have also learned that the Bank of Tanzania and financial institutions are working on credit reference bureau which will open up a possibility of using “moral” collateral where someone’s track record for servicing debt will serve as collateral. I hope this also will be given rapid push to be realized.
Ladies and Gentlemen;
Financial stability is an important goal to be achieved by operations in this sector. I am pleased that supervision of banks and deposit taking non-bank institutions has been strong and that the insurance industry has a strong regulator too. I am, however, still worried about the lack of strong regulator of pension funds which have tended to face major collapses—for instance in Latin America. A pension fund is a fiscal contingent liability because ultimately, the government has to shoulder the obligation to pensioners in the event of failure. It also poses big risk for financial instability because of pension funds’ wide integration to the whole financial system. The Social Security Act has been passed and the draft investment guidelines for pension funds have been prepared. I hope that concerned institutions will now move quickly to establish and operationalize the regulatory framework.

Concerning access to long-term finance we have been facing challenges in mortgage, infrastructure and venture capital areas. Household access to mortgage financing remains highly limited. A young employee’s desire to acquire a home is frustrated by the fact that it would take too long (and in most cases impossible) to save enough money to purchase or build one. Our financial system is yet to develop an accessible and reliable mechanism to meet the demand for mortgage financing. I take notice that some of you have begun to venture into this area—commendable effort—but it is still too little.


A Mortgage Finance bill has already tabled in the Parliament. After this bill is passed in law by the signature of the President it will help to expand mortgage finance, and that the expansion will help to provide funds for acquisition of low cost housing and not just for mansions and skyscrapers. As we venture into this we should be mindful of the current financial crisis which originated from subprime mortgage lending. We must make sure that the regulatory framework for this avenue of financing is effective and robust.


Ladies and Gentlemen;
We have been working on sovereign rating in preparation for issuance of sovereign bond to raise funds for infrastructure projects. The current financial crisis, that began in mortgage finance in US has not only raised the lending risk and the attendant increase in interest rates, but also has reduced the probability of success through credit rating as the crisis has shaken the credibility of the rating agencies themselves. This underlines the importance of looking inside for long term sources of infrastructure financing. In this regard, the challenge for the financial system is to provide mechanism for facilitation of such financing from within the country.

It is my hope that the set-up of TIB as the national development financial institution will strengthen the provision of long-term financing for growth enhancing projects in agriculture, manufacturing, tourism and other sectors, as well as provision of venture capital. This is an area that we can encourage the private financial institutions to venture into, albeit by opening some windows for long-term financing.


Before finishing, let me say something again about the current financial crisis. As developed nations struggle to rescue their financial systems, huge government resources have already been committed and will continue to be committed to that endeavour. This may cause stress on aid funds, but we still have trust on the promises that the international community has continued to make on its dedication to make provisions for the attainment of Millennium Development Goals.


One of the outcomes of the crisis has been the loss of trust among financial institutions and the accompanying credit dry up, which is now causing worries about impending recession in developed economies. I am comforted Governor by your assurance that our financial sector remains safe and that systematic steps are being taken to minimize our exposure to risk by transferring our official reserves to safer hands. I urge you, in the financial community, to work together to keep our financial system from being pulled into the turmoil.
Conclusion


Ladies and gentlemen,
Let me finish by reiterating that: absence of reliable and accessible source of finance for poverty reducing activities remains a big challenge to our nation. It is a challenge that falls directly on you, and our people are looking at you, and their government for the answers. The theme of this conference “Second Generation of Financial Sector Reforms”, gives me hope that all matters vital to filling this gap, will be carefully considered and workable solutions will emerge from this conference.

As you discuss and deliberate on various issues in this conference, let us make sure that we come up with answers on how we can meet the various challenges mentioned earlier. We all have our roles to play in resolving these challenges. I call upon all the key financial sector players to go from here with good implementable ideas and put them into practice.

Having said this, now I have the pleasure to declare this conferences e opened. I wish you fruitful deliberations and outcomes.
I Thank you for your kind attention!

7th IFM annual conference coming

Dear Colleagues,
I am writting to notify you once again that the IFM Annual Conference will be taking place on 24th and 25th November at the Kilimanjaro Hotel Kempinski in Dar es Salaam.
The conference is ussually very educative, and provides a great opportunity of networking; this will be its 7th year running Background The Institute of Finance Management (IFM) organizes an annual International conference on matters relating to Financial Markets, Good Governance and Economic Development. This year's will be the SEVENTH in the series.
The conference primarily aims at bringing academics, practitioners, Government agencies, researchers, policy-makers, industry professionals and other stakeholders working or having an interest in any sub-field of finance and economics with a special reference to Financial Markets, Good Governance and Economic Development.
This year's conference will be held on Monday 24th and Tuesday 25th November 2008 at the Kilimanjaro Kempinski Hotel, Dar es Salaam.
The main theme of the conference is 'Financial Markets, Good Governance and Economic Development: Challenges and Prospects.'
Targeted Audience include Government agencies, academicians, practitioners, consultants, industrialists, policy makers, regulatory agencies, the general public, and other interested parties.
Invited speakers are drawn from a portfolio of reputable and experienced international authorities in the area from within and outside the African Continent.
The Conference is the ideal forum for the dissemination of the latest advances in Economic Development, Financial Markets and Good Governance. Ideally, the gathering is expected to facilitate an invaluable discussion among participants after each presentation.
Participants will have ample opportunity to discuss and share their experiences in the field.
Equal emphasis shall be placed on academic rigor and practical usefulness. We have great pleasure to invite scholars, practitioners, consultants, industrialists, policy makers, regulatory agencies, other interested parties and the general public to attend this International conference.

Fees:
IFM is a non-profit Government Institution of higher learning and to ensure a smooth running of the conference participants will be charged a fee of TShs. 300,000/= per person to cover tea, coffee and snacks, three course hot and cold buffet lunch, soft drinks, pens and writing papers, copies of the papers to be presented, a conference bag and a cocktail party at the end of the conference.
Since conference space will be limited, we will advise you to confirm your participation and pay the appropriate fees at the Institute [Block A, 3rd Floor, Room 320] as soon as possible.
IFM looks forward to welcoming you and your colleagues to what promises to be an excellent International conference!
The registration of participants will be done on the day of the conference, and copies of the papers will be available on the same day.
If you have any questions regarding the conference you may contact:
Dr A.H. Makame
EXECUTIVE SECRETARY,
Conference Organizing Committee,
The Institute of Finance Management,
Shaaban Robert Street,
P.O.Box 3918,
Dar es Salaam,
Tanzania.T
el (office): +255222129181
Fax: +255222122045
or
+255222112935
Mobile:
+255777995556 or
+255754812070
E-mail:
Abdullah.makame@gmail.com
or
srmsmm4@hotmail.com
or
ahasnuu@hotmail.com

Wednesday, November 5, 2008

Watuhumiwa wa EPA kizimbani leo

HABARI TOKA MICHUZI BLOG
watuhumiwa wa EPA kizimbani leo
JEETU Patel (pichani katikati) anayetajwa kuwa kinara wa ufisadi katika wizi wa Sh bilioni 133 kwenye Akaunti ya Madeni ya Nje (EPA) katika Benki Kuu ya Tanzania (BoT) pamoja na wenzake tisa, jana walifikishwa mahakamani kujibu tuhuma za kuiibia benki hiyo.
Wengine waliofikishwa katika Mahakama ya Hakimu Mkazi Kisutu, Dar es Salaam ni Devendra Vinodbhai Patel na Amit Nandy, Ketan Chohan, Johnson Lukaza, Bahati Mahenge, Davies Kamungu, Godfrey Mosha na Manase Mwakale anayeshitakiwa na mkewe, Eddah Mwakale, ambaye ndiye mwanamke pekee katika kesi hiyo ya kifisadi.
Jeetu, ambaye jina lake halisi ni Jayantkumar Chandubahi Patel, katika moja ya kesi anazokabiliwa nazo, anashitakiwa kwa pamoja na Devendra Vinodbhai Patel na Amit Nandy.
Kwenye shitaka hilo, washitakiwa wanatuhumiwa kula njama, kughushi, kuwasilisha nyaraka za uongo, kuiba na kujipatia Sh bilioni 2.6 kwa kutumia kampuni yao ya Bencon ya Dar es Salaam. Wanadaiwa waliiba fedha hizo baada ya kudanganya kuwa Kampuni ya Matsushita Electric Trading Company iliwapa jukumu la kulipwa fedha hizo kupitia kampuni yao ya Bencon International Ltd.
Washitakiwa hao pia kwa pamoja wanashitakiwa kula njama, kughushi, kuiba na kujipatia tena Sh bilioni 7.9 kwa kutumia kampuni hiyo ya Bencon International Ltd. Katika wizi huo, washitakiwa hao wanadaiwa kudanganya kuwa walipewa jukumu la kulipwa fedha hizo na Kampuni ya Maruben Corporation ya Japan wakati wanajua kuwa si kweli.
Hakimu Euphamia Mingi alisema dhamana kwa washitakiwa ziko wazi, ila kila mshitakiwa anatakiwa kuweka mahakamani nusu ya fedha anazodaiwa kuiba, wadhamini wawili na mmoja kati yao awe ndugu wa karibu na wote watasaini hati ya dhamana.

Washitakiwa hao pia wanatakiwa kuwasilisha hati zao za kusafiria mahakamani, wanatakiwa wasisafiri nje ya mkoa hadi kwa ruhusa ya mahakama. Sharti jingine ni kila Ijumaa ya mwisho wa mwezi wataripoti kwa mwendesha mashitaka na pale wanapokuwa na matatizo, wadhamini wao watalazimika kwenda kutoa taarifa mahakamani.
Jeetu pia anashitakiwa katika kesi nyingine na Ketan Chohan na Amit Nandy ambao wanadaiwa kuiba Sh bilioni 3.3 kwa kutumia Kampuni ya Navy Cut Tobacco Tanzania Limited. Walidanganya kuwa wameruhusiwa na Kampuni ya Matsushita Electric Trading Company ya Japan walipwe fedha hizo. Kesi hiyo inasikilizwa na Hakimu Mkazi Neema Chusi na uamuzi wa dhamana yao utatolewa leo.
Kinara huyo wa ufisadi, pia anashitakiwa kwa wizi wa Sh bilioni 3.9 ambazo aliiba kwa kutumia kampuni ya Bina Rosorts Ltd kwa kudanganya kuwa walipewa mamlaka ya kulipwa fedha hizo na Kampuni ya C. Itoh & Company Ltd ya Japan. Katika shitaka hilo anashitakiwa kwa pamoja na wenzake Devenra Vinodbhai Patel na Nandy na kesi hiyo iko mbele ya Hakimu Mkazi Richard Kabate. Katika shitaka jingine, Jeetu anashitakiwa kwa wizi wa Sh bilioni 4.9 kwa kushirikiana na Devenra na Nandy.
Wote wanatuhumiwa kufanya wizi huo kwa kutumia Kampuni ya Maltan Mining Company Ltd wakidanganya kuwa wameruhusiwa na Kampuni ya Marubeni Corporation ya Japan walipwe fedha hizo na BoT.
Mtuhumiwa mwingine aliyefikishwa mahakamani jana ni Johnson Lukaza ambaye naye anatuhumiwa kula njama, kughushi, kuwasilisha hati ya uongo, kuiba na kujipatia Sh bilioni 6.3. Mtuhumiwa huyo na mwenzake aliyetajwa kwa jina la Mwesiga Lukaza ambaye hakuwapo mahakamani, wanadaiwa kufanya wizi huo Desemba 2005.
Dhamana kwa mshitakiwa iko wazi ila mshitakiwa anatakiwa kuweka mahakamani nusu ya fedha anazodaiwa kuiba na wadhamini wawili na mmoja kati yao awe ndugu wa karibu, wote watasaini hati ya dhamana. Mshitakiwa pia anatakiwa kuwasilisha hati yake ya kusafiria mahakamani, anatakiwa asisafiri nje ya mkoa hadi kwa ruhusa ya mahakama.
Sharti jingine ni kila Ijumaa ya mwisho wa mwezi ataripoti kwa mwendesha mashitaka na pale anapokuwa na matatizo wadhamini wao atalazimika kwenda kutoa taarifa mahakamani. Wengine waliopanda kizimbani ni Bahati Mahenge, Davies Kamungu, Godfrey Mosha na Manase Mwakale anayeshitakiwa na mkewe, Eddah ambaye ni mwanamke pekee katika kesi hiyo ya kifisadi.
Washitakiwa wanatuhumiwa kuiba Sh milioni 855.4 ambazo waliiba kwa kutumia Kampuni ya Changanyikeni Residential Complex Ltd baada ya kuwasilisha nyaraka za kughushi BoT wakionyesha kuwa kampuni hiyo, mkurugenzi wake Samson Mapunda ndiye aliyetoa idhini ya kulipwa fedha hizo.
Watu hao pia walishitakiwa kwa wizi wa Sh bilioni 1.2, mali ya BoT baada ya kutumia kampuni ya Changanyikeni Residential Complex Ltd wakidai wamepewa mamlaka ya kulipwa fedha hizo na kampuni ya Marubeni Corporation ya Japan. Uamuzi wa dhamana yao utatolewa kesho na Hakimu Victoria Nongwa.
Akihutubia Taifa Ijumaa iliyopita, Rais Jakaya Kikwete alisema Sh bilioni 69.3 ambazo ni sawa na asilimia 76.7 ya Sh bilioni 90.3 zilizochotwa kutoka EPA, zilikuwa zimerejeshwa kufikia Oktoba 31. Hata hivyo, aliagiza kuwa wote ambao kufikia siku hiyo, watakuwa hawajatekeleza agizo la kurejesha fedha hizo, hatua za kisheria zichukuliwe.
Alitoa maelekezo kamili kwa ambao hawakutimiza malipo, majalada yao yakabidhiwe kwa Mkurugenzi wa Mashitaka mara moja, kwa hatua zipasazo za kisheria. Kampuni 23 zinadaiwa kuchota fedha, Sh bilioni 133 katika Akaunti ya Madeni ya Nje ya BoT, na iligundulika baada ya ukaguzi wa hesabu uliofanywa na Kampuni ya kigeni ya Ernst & Young katika mwaka 2005/2006 ambayo ilipewa kazi iliyoachwa na Deloitte & Touche ya Afrika Kusini.
kachelo koba kimanga 'assossa' (shoto) akimuelekeza jeethu patel pa kwenda wakati watuhumiwa wa EPA walipotinga mahakama ya kisutu sasa hivi kujibu tuhuma hizo
baadhi ya watuhumiwa wakiwa wamechuchumaa kusubiri kuingizwa mahakamani
baadhi ya watuhumiwa wa EPA wakisubiri kupanda kizimbani mchana huu katika mahakama ya hakimu mkazi wa kisutu, dar

Kwa habari kamili nenda:
http://www.habarileo.co.tz/kitaifa/?id=13538
na
http://dailynews.habarileo.co.tz/home/?id=8254

Friday, October 24, 2008

The Unbanked in Tanzania

Hello Peter,

This will make an interesting discussion on your blog.

I got news that we have about 1,800,000 bank accounts in Tanzania, meaning less than 5% of the population is banked.

What conclusions can be drawn from this information?

- The unbanked are too poor to leave money in banks?
- They lack basic finance literacy?
- Existing banks are not aggressive enough in conquering the market (fewer branches, limited marketing initiatives, bank products out of touch with needs of the unbanked, ...)

... what else?


Many thank yous Mdau Mboma for this discussion topic!

Dr. shayo muses over BoT's stance



By Dr. Hildebrand Shayo

Tanzania businesses in forthcoming recession!

The warning, caution and confidence issued by Profesa Benno Ndulu, the Governor of the Bank of Tanzania that the Tanzania's economic remain strong and is likely not to be pretentious by the global financial downturn sent waves through my mind that triggered me to suggest steps that Professor Ndulu overlooked in his analysis, that could help the Tanzanian business recover from the financial gloom terrorising the world financial market.

Although the waters are still turbulent, this is now the time for renowned and professional individuals like Professor Ndulu not to undermine Tanzanian by not telling them the reality.

While the normal way of reducing risk in a portfolio during a slump is by diversifying, certain assets tend to do better than others at different parts of the economic cycle. What the world is experiencing is a de-leveraging, where all asset classes are falling in value and will continue to fall in the next two years. No doubt the world is going through a period where shares, property, fixed interest and even commodities will go down.

That said, despite slowing global economic activity and the impending recession that Professor Ndulu seem not to put into his equation, it is not all doom and gloom for business and especially for those with a long-term approach.
I would like to remind Professor Ndulu that what he needs to remember is that market volatility and the indiscriminate selling the world financial sector is witnessing or has witnessed in the past few weeks will create opportunities to pick up bargains.

I would have thought Professor Ndulu would have coded among others, things like the need for business to consider diversifying their portfolio.

While there's no escaping the fact that it's not going to be plain sailing from on-going global financial turmoil’s, and that all equity portfolios will get rocked by further short-term volatility, he should have assured business with well-insulated portfolios that those with long and proven track records will be able to overcome the slump. He should also have tried to advice the business to look to professional managers who could help them benefit through the cycle.

Stating that Tanzania financial position is fine wasn’t enough, he should have reconsidered what happened to Iceland bank were UK government is struggling to recover its money invested by its business. To state that Tanzania banks are well-positioned for the slump and that Tanzania money in the foreign account is safe and is enough to allow “business as usual” isn’t correct, because Tanzania is not an island! Is Professor Ndulu aware on what Kenya stock market is facing following global financial downturn?

Professor Ndulu should have seen the need for corporate debt that seems not to feature in his statement. To me, corporate debt is one of the first investments to recover in a slump, and many bond experts are beginning to call the bottom of the market for this sector. At the moment, yields are likely to be attractive, because interest rates and inflation will or are expected to fall which is a fantastic backdrop for any finance executive.

In any slump, there are traditional areas which are viewed as immune or defensive such as pharmaceuticals stocks and healthcare company; along with utility providers. People need medicine and power, irrespective of economic conditions. I do understand that tobacco and liquor companies that Tanzania has been using as a “model of success” following privatisation, also tend to flourish under the spectre of a protracted recession.

Nothing regarding our gold reserve was mentioned in his statement! Gold
at times of financial crisis, is looked upon as a safe haven for distressed investors rocked by faIling share prices. In the current extraordinary circumstances, Professor Ndulu should have told Tanzanians where this asset class is going or taking Tanzania?

My view is that gold is a long-term story underpinned with supply and demand drivers that he might deliberately omitted in his statement. Does Professor Ndulu recognize that gold price has been rocky in the current crisis? Last year the gold price was $667 an ounce and it rose to a peak of more than $1000 on March 17th 2008. As price now remains choppy, what is the position of Tanzania that is said to produce a lot of this precious metal among gold producer in the world?

While I am not sure if BOT, that Professor Ndulu is the Governor will bail out private owned banks in Tanzania or nationalise part of them, make me speculate what a business need to do in Tanzanian context ?

I think, business needs to be careful not to be too defensive in the current slump. In a way, looking at a cynical portfolio after values have already fallen is a bit like locking the stable door after the elephant has already bolted.

To the business I think, it's important not to lose sight of your long-term objective, try and have the asset mix which is most likely to give the return you are looking for. If as a business you are too defensive now, you will risk missing the upturn when it happens.

Professor Ndulu should have encouraged the business to seek additional sources of diversification, encourage them the focus on investments with high earning visibility and supportive valuations. Telling us that daily interbank cash market in Tanzania was doing well and BOT is watching exchange rate movement is not enough! We need measures on how to help business to cope with financial downturn.

[SOURCE: MICHUZI BLOG]

Thursday, October 9, 2008

We will be back...

Dear Forum members,
We would kindly like to apologize for not posting anything new for a fortnight. Uchumi na Fedha Administrators have been occupied with more imminent matters. We promise to be back in a day or two.

Thank you for your patience and please keep visiting Uchumi na Fedha.

sincerely,
Nalitolela, P. S.

world's economic crisis, a tanzanian perpective

GLOBAL ECONOMIC OUTLOOK ADVICE TO TANZANIANS, AND EAST AFRICANS
Dear My Countrymen,

At this point, many of you are aware of the Economic turmoil that has rocked the global economies. From the NYSE, LSE, to Hong-Kong Stock Exchange the cry is the same, and the pain is being felt in all sectors ; manufacturing, energy, agriculture etc.

Even though the problem may have started as Mortgage crisis in the US, and many thought it would have ended there, the reality is rather different, and the truth is painful and scary to hear. The data that has been available for almost two years now, pointed to the very situation we are in today. Middle analysts detected the problem raised their eye brows, but then their voices were too low to be heard by money hungry, bonus driven Wall-Street executives.

The big shots at the Wall-Street, driven by greed continued to cook their deals; duped European Bankers with bogus deals, who in turn spread the rotten credit deals in all global markets. Anyway, the damage has been done, and now faced with a reality of controlling the pain! And must consider the impact of the problem; how is it going to affect the common man in Tanzania and elsewhere in Africa!

Millions of people in the US who invested their lifetime savings in the stock market have watched their funds melt in their own eyes. A man or other a client, who invested his savings in the stock option plan, in one of the now gone companies, lost $4 million in less than a year; People are loosing their jobs, many businesses closing their doors, people can no longer afford paying their once owned expensive assets. Banks and many financial institutions are collapsing at an alarming rate. Millions around the world are rapidly depleting their savings.

Even though the Central Banks around the world have taken aggressive and swift measures to curb the problem by cutting interest rates and pumping almost a Trillion dollar rescue packages into their respective economies, so far the effort have not calmed the anxiety, the problem seems very deep entrenched than many thought.

That means, the meltdown was not limited to the Sub prime, it is in the credit, manufacturing and even retail.

When major banks cannot meet their Liquidity requirements as in the case of several fallen US banks, when Short term lending becomes a problem, when commercial paper is not attainable, the economy goes into its knees. Many companies depend on these short term instruments to finance their day to day operations, short term projects, as well as meeting their payroll needs.
And when they can’t secure these instruments, it means they stop their operations.
Likelihood of companies letting their employees go due to payroll problems are very real. LIBOR, a system used in the UK and partly in the US for inter-bank lending, whose rates have gone up, shows that we are in for a long and tough ride, raising the inability of Banks to issue loans to individuals and companies lacking highest ratings in the ratings circles.

The Global Markets are plummeting, due to the fact that, investors are worried, no individuals or companies want to put their investments in the risky market, and many (millions) are pulling out their investments. Consumers are scared to spend, and this is leaving experts without any cure to the disease, that is spreading globally.

Many of you know that Wall-Street or other financial markets are driven by speculation as you witnessed early during the year, when energy prices went off the roof in the Western World; this was fueled by speculation of war outbreak in the Persian Gulf, Economic boom in Asia Pacific, and India. Now that economic boom has taken a downward trend, so has the demand and the prices.
Speculation has now turned into fear for the worse,
These are symptoms of an economic recession, and even though further bear the hallmarks of the 1929 great depression, we are optimistic things will turn around before we get into a similar economic tragedy.

To our people, fear is the worst enemy of any human being. Do not fear or panic in these uncertain times. Go about your daily activities, and please.

*Abstain and cut OFF completely, all the unnecessary spending, and purchases
Do not rush into the bank to remove your deposits, because you will create an environment in which banks liquidity runs to zero, hence a collapse.

*Make sure you ask from your bank how much money they insure with the central bank as those in America and Europe, be assured that, All your deposits are safe. Bank of England and European Union Central Banks are currently in charge of all deposits

*Constantly check with your Bank to see how things are moving in terms of the safety of your deposits.

*I know many cannot afford depositing their monies into precious metals, but for those with excess cash, may want to consider this option as an alternative to safeguarding their most liquid assets (cash) and these valuables can be deposited in most of the banks, this will ensure economic continuity in the economy.
*Be careful, and not fall a prey of con artists with cure to any economic problem. Your trusted licensed banker and government monetary officials entrusted with the task should be the only persons to deal with.

Economists, policymakers and monetary experts in our country have perhaps taken measures, or have aggressive plans in place that will safeguard your savings, you must therefore be optimistic, at the same time must be cautious not to be caught off guard.
Since many of our third world countries are dependent on the West for Tourism, Export, and Aid to subsidize their Budgets, the impact may be soon be felt. The IMF has pointed for a deep recession.
Either way, how prepared are we?

The Writer Is a US-based,
Social Activist & Investment Banker,
of Tanzanian Origin.

[SOURCE: Michuzi Blog]

Wednesday, September 24, 2008

A question on Foreign Exchange Rates


I just came a cross a seemingly simple question, but a very interesting one from Issa Michuzi's Website. In the post, a visitor who goes by the alias David Villa asks, are foreign exchange rates true indicators of economic standards? He goes on to explain that say you have country A whose economic level is in all respects higher than country B, should the exchange rate of A's currency compared to B's currency be higher?

None of the visitors to that post could adequately answer that querry, and I thought it would make for an interesting discussion topic here. Would economists and particularly experts in monetary policy, international trade, development economics, etc. help us out with this?
  • What determines the exchange rate of a given currency?

  • What is the measure of economic level and/or growth?

  • What is the relationship between economic level and forex rate (if any)?

Dar banks face post-IPO liquidity crunch

Traders at the Dar es Salaam Stock Exchange. The liquidity problem in banks echoes a similar situation last year when the government withdrew its deposits from commercial banks. Photo/LEONARD MAGOMBA

By WILFRED EDWIN
Tanzania’s financial markets are going through an acute liquidity crunch caused by the massive oversubscription of the recent initial public offers by the National Microfinance Bank (NMB) and the Dar es Salaam Community Bank.

All the money paid in by investors who applied for the shares is in the hands of the few receiving banks pending the allotment.More...


[SOURCE: The EastAfrican]

Treasury Bills Auction Summary - 17/9/2008

Economic Processing Zones (EPZs) up and kicking strongly

2008-09-24 09:14:23
By George Michael

Export Processing Zones (EPZs) are now fuelling and oiling domestic economy, according to reliable official sources.

Within its one and half years of operations, the government has issued 29 licenses of which 18 are for undertaking EPZs` related manufacturing operations, while 11 are for development of EPZs infrastructure. More...


[SOURCE: THE GUARDIAN]

ICF urges enhanced investment climate

PIUS RUGONZIBWA
Daily News; Tuesday,September 23, 2008 @20:03
AFRICAN governments have to improve their investment climate if wider economic and social progress is to be achieved, the Chief Executive Officer of the Investment Climate Facility for Africa (ICF), Mr Omari Issa, said on Monday at the UN High Level Event on Africa’s Development.

Addressing the government, Non Governmental Organizations (NGOs) and private sector representatives from all over the world, Mr Issa argued that Africa must achieve a sustainable economic growth of seven per cent per annum to reach the core MDG of halving the number of people living on less than a dollar a day by 2015

World meet on SMEs future opens in Dar tomorrow

PIUS RUGONZIBWA
Daily News; Tuesday,September 23, 2008 @20:01

A TWO-day international conference that will discuss the place of Small and Medium Enterprises in a globalised world economy opens in Dar es Salaam tomorrow.

The meeting co-ordinator, Dr Esther Ishengoma, told reporters delegates will review the fate of the SMEs sector in the international arena and explore strengths and weaknesses of the enterprises so that they remain flexible to adapt to changing market environments, particularly customer needs. More...


[SOURCE: DAILY NEWS]

Tanzanite prices and demand 'stable'

By Citizen Reporter, Arusha

Stakeholders in the tanzanite industry say the price of the precious gemstone found only in Tanzania is stable and competitive on the world market.

They said in an interview here yesterday that demand for larger, better quality precious stone was still strong.

However, they admitted that there was a slight drop in price for smaller stones on the world market, but demand and prices for larger ones were still strong.
The stakeholders were reacting to reports that the price of tanzanite on the world market has dropped More...


[SOURCE: THE CITIZEN]

Graft in Tanzania slightly worse: TI


By Rose Athumani

Tanzania took a slight knock in its efforts to combat corruption, dropping a few points in the 2008 global corruption rankings, according to a report released yesterday.

The country scored 3 points in the new rankings from 3.2 recorded last year by the global corruption watchdog, Transparency International (TI).

The drop means public perception of corruption in the country increased over the last year. The country remained just above the borderline of countries in which corruption was said to be rampant. More...


[SOURCE: THE CITIZEN]

Business urges speed in Customs Union

By Zephania Ubwani, Arusha

The business community in East Africa has called for the speedy implementation of the EAC Customs Union to enable it to move forward.

A recent survey commissioned by the East African Business Council(EABC) shows that businesses in the region want the implementation expedited so that they can fully benefit from it. More...


[SOURCE: THE CITIZEN]

Dar gets $200m more US grant

By Kagashe Beatus

The United States has increased its funding to Tanzania by $200 million (Sh240 billion), adding to the current assistance it gives the country.

The two governments signed five amendments to bilateral grant agreements in Dar es Salaam yesterday, increasing funding for existing programmes. More...


[SOURCE: ]THE CITIZEN

Cut VAT on cellphones, EA urged


By Samuel Kamndaya

High taxes are making cellphones expensive in East Africa.

To stem the trend, East African Community (EAC) member states should reduce value added tax (VAT) and import duties on mobile phones, Nokia East Africa general manager Gerald Brandjes said. More...


[SOURCE: THE CITIZEN]

Fears allayed on GMOs in regional agriculture



By Bernard Muthaka, Citizen Correspondent, Kampala

A study by the Common Market for Eastern and Southern Africa (Comesa) has allayed fears that introducing genetic technology in agriculture may lead to market losses.

It indicates that even should such products be rejected, the decline in exports from the three East African countries would be insignificant. More...


[SOURCE: THE CITIZEN]


The issue of genetically modified products has several implications ranging from ethical, health to financial reasons. Some may be for, some against it. As far as economic reasons go; On one hand, farmers may be able to obtain more produce in a smaller peace of land over a short period of time, but on the other there is fears that these products may not be readily acceptable in the regional market as COMESA's study suggests. What's your take on this?

Monday, September 22, 2008

BOA to extend more branches upcountry


DAILY NEWS Reporter
Daily News; Friday,September 19, 2008 @00:04

BOA Bank will soon open new branches in Arusha and Mwanza regions to increase its coverage countrywide. The Bank's Marketing Manager, Mr Sudi Marungu, told reporters in Dar es Salaam on Wednesday shortly before 'Iftar' BOA hosted to its customers that the branches would help to improve its market share. More...


[OURCE: DAILY NEWS]

NMB workers go on countrywide strike

By Orton Kiishweko

Operations at the National Microfinance Bank, the country's largest bank, are expected to be paralysed today when more than 1,800 employees go on strike to force the Government to pay them lump sum payments in benefits.

A top Union official yesterday told The Citizen that the strike at the bank's 121 branches countrywide would commence at 8pm this morning should the management and the Government fail to sign a contentious memorandum of understanding by then. More...


[SOURCE: THE CITIZEN]

New UN president criticises Bretton Woods institutions

By Erick Kabendera, New York

The UN General Assembly opened its 63rd session on Tuesday, with its new president criticizing the Bretton Woods institutions for their difficult policies on developing countries.

Father Miguel D?Escoto Brockmann, who becomes the first priest to hold that position, cited the International Monetary Fund and World Bank as being under the command of the United States and Europe and used as an instrument of domination.

Despite the institutions not being directly related to the UN, Fr D?Escoto said the world was against them being used as tools of control by big powers. More...

[SOURCE: THE CITIZEN]

Africa's market share in trade falls, says report


By Erick Kabendera, New York

Africa has made little progress in trade despite two decades of trade liberalization that removed some barriers limiting its trade opportunities.

According to a report called Economic Development in Africa 2008, published by the UN Conference on
Trade and Development (UNCTAD), the continent?s market share fell from six per cent of world exports in 1980 to about three per cent in 2007. More...


[SOURCE: THE CITIZEN]

All set for key business roundtable


By Vicent Mnyanyika

Tanzanian will host an international business conference next month to discuss means of maximising the country's investment potential.

President Jakaya Kikwete is expected to open the meeting organised by The Economist, a prominent international magazine.

A statement released yesterday said the conference to be held on October 6 and 7 in Dar es Salaam would involve the Government through its various ministries. More...
(Related post: http://uchuminafedha.blogspot.com/2008/08/economist-conference-in-tanzania.html

[SOURCE: THE CITIZEN]

Tuesday, September 16, 2008

Borrow for development, Tanzanians told


JAPHET SANGA in Babati
Daily News; Tuesday,September 16, 2008 @07:42

PRESIDENT Jakaya Kikwete has exhorted Tanzanians to draw loans from financial institutions for their own development.

Launching a branch of the National Bank of Commerce (NBC) Limited here on Sunday, President Kikwete said people should not fear to borrow from banks as even "the rich like Bill Gates do borrow." More...


[SOURCE: DAILY NEWS]

New report urges Africa to diversify exports to fight poverty


2008-09-16 10:45:26
By Beatrice Philemon
Most recent report by Debt, AIDS, and Trade in Africa (DATA) has yet again reminded Africa to diversify its exports further than over-reliance on raw agricultural products as the surest means of increasing its share of global trade.

It is DATA's 2008 report which categorically states that value-added products such as processed foods, apparels, footwear and other labour-intensive agricultural and manufactured goods are vitally important in boosting Africa?s trade in global markets and help uplift the continent from the shackles of poverty. More...


[SOURCE: THE GUARDIAN]

Twiga Bancorp unveils new products


ANNE ROBI
Daily News; Tuesday,September 16, 2008 @00:04
Twiga Bancorp Limited yesterday launched two new products aimed at helping parents and guardians to save money for children's future education and other activities. Speaking at the launching occasion in Dar es Salaam yesterday, the General Manager, Hussein Mbulilo, named the products as Twiga Kids Account and Holiday Account. More...


[SOURCE: THE GUARDIAN]

Lender launches clients' contest

DAILY NEWS Reporter
Daily News; Tuesday,September 16, 2008 @00:04

Bayport Financial Service Tanzania has launched a competition for its clients aimed to encourage them on best utilisation of credit. The Bayport Chief Operations Officer, Mr Etienne Coetzer, said in Dar es Salaam yesterday that the competition entailed the selection of 10 clients who have utilized well credits extended to them by investing in business start-ups, education and farming. More...


[SOURCE: DAILY NEWS]

Monday, September 15, 2008

Wall Street Crunch Continues...


If you follow world financial news, you have probably already learnt of the latest news on the effects of the Wall St. credit crunch. Well, if you haven't, then read here about Bank of America's acquisition of Marill Lynch in an all-sock deal worth USD50bn, as well as Lehman Bros. declaring Chapter 11 bankruptcy protection, after the bank failed to secure a buyer last week, thus sending shares in the US, European and Asian markets tumbling.

Following the acquition of Merill Lynch, S&P has downgraded Bank of America's credit rating, while the collapse of Lehman Bros. has sent shocks in the financial world, since the Investment Bank was 150 years old - the fourth largest in the US. This begs questions about what would happen to the smaller banks, with lesser years of experience. Only 2 months ago we witnessed Freddie Mac Fannie Mae having to rely on the Government to bail tem out.

Back in July we had a discussion on this forum titled "HOW DID THE AFRICAN FINANCIAL SYSTEMS AVOID THE WALL STREET CRUNCH?". There were various views on weather African countries had truly escaped the effects, or was the worst yet to come. Following the proceedings on Wall Street during in the last 2 months, has your view changed in any way? What are the lessons to be learnt by African countries, and Tanzania in particular? Some economists in the US believe the credit crisis is almost over; and only few ripple effects will be felt, but the worst is behind us. What's your view on this?

Treasury Bond Auction Summary - 10/9/2008

TRA seizes Sh6.5bn from Ticts in tax dispute



By Bernard James
The Tanzania Revenue Authority (TRA) has seized Sh6.5 billion belonging to the Tanzania International Container Terminal Services (Ticts) over a tax dispute, The Citizen has learnt.

The state agency, we have established, moved early this month and attached a bank account operated by Ticts, a cargo handling company enjoying lucrative monopoly at the Dar es Salaam port. More...


[SOURCE: THE CITIZEN]

New `dry ports` in Dar too taxing on importers

2008-09-15 09:32:09
By Michael Mbiro


The move last year to establish two Inland Container Depots (ICDs) as extensions to Dar es Salaam marine port to help decongest containerised cargo has turned out to becoming financial burdensome to importers, reliable sources have revealed.

A random survey conducted by this newspaper recently has uncovered that the initiative hatched by the Surface and Marine Transport Regulatory Authority (SUMATRA) in tandem with the Tanzania Revenue Authority (TRA), Tanzania Ports Authority (TPA) and members of the shipping fraternity, does not work in conformity with interests of importers. More...

[SOURCE: THE GUARDIAN]

Dar will soon be running mega bio-gas project

2008-09-15 09:30:48
By Mgeta Mganga

Dar es Salaam city`s authorities are hatching a plan that will see all degradable solid waste materials turned into raw materials for the production of biogas fuel for generating electric power to feed homes and industries.

A feasibility study is said to have been completed and has already been tabled before relevant regional authorities for further action. More...


[SOURCE: THE GUARDIAN]

Tanzania to export gas to Kenya

President Jakaya Kikwete, left, on an official visit of the Artumas gas exploration plant in Mtwara, southern Tanzania. Photo/LEONARD MAGOMBA
By JOSEPH MWAMUNYANGE
Posted Sunday, September 14 2008 at 10:08


Kenya will be the first destination for Tanzania’s natural gas exports.

The Artumas Group Incorporation, a Mtwara-based gas exploring company, has been given the go ahead by the government to export to Kenya.

A source at the Ministry of Energy and Minerals told The EastAfrican that gas exports to Kenya will depend on whether they can satisfy local demand. The plant has a capacity for 300MW.

The company recently finalised plans to use compressed natural gas for motor vehicles and domestic purposes. More...


[SOURCE: The EastAfrican]

Friday, September 12, 2008

Mengi: confidence essential tool for business success

2008-09-12 10:34:29
By Felister Peter

Businesspersons have been urged to build self confidence as an essential tool for success in their businesses.

IPP Executive Chairman Reginald Mengi made the call in Dar es Salaam on Wednesday when launching the second Tanzania`s National Business Plan Competition 2008 dubbed ``Believe Begin Become (BBB).``

Mengi said most businesspersons lacked confidence in the things they do, causing many to fail even before they start. More...


[SOURCE: THE GUARDIAN]

Trading of DCB shares starts next week

Dailynews Reporter
Daily News; Friday,September 12, 2008 @08:01


TRADING of shares of the Dar es Salaam Community Bank (DCB) at the Dar es Salaam Stock Exchange (DSE) will begin next Tuesday, it was announced yesterday.

The Chairman of DCB Board of Directors, Mr Paul Rupia, said those wishing to sell their shares would be free to do so on Tuesday.

He said that following the oversubscription of the firm’s initial public offer (IPO), the Bank of Tanzania (BoT) on August 28, granted it approval of its revised business plan.

He said: “Under the revised plan the bank (DCB) will retain 5.2bn/-, the whole amount that was raised during the IPO.

“The amount exceeded what was earlier provided in the prospectus.” More...


[SOURCE: DAILY NEWS]

Centre to start investment scheme

By The Citizen Reporter
The Tanzania Investment Centre (TIC) will launch a programme of identifying various investment opportunities all 26 regions in the country.

The programme, known as the Regional Partnership Programme, will be launched in Dodoma tomorrow.

"The goal of the programme is to promote investment at regional levels by promoting investment attractions in each region," reads a TIC statement in Dar es Salaam yesterday. More...


[SOURCE: THE CITIZEN]

MDGs: UN Task Force identifies weaknesses

DANIEL SEMBERYA

AS MEMBER countries of the United Nations prepare fortheir annual conference at UN Headquarters in New York later this month, a recent UN Report identifies trade and aid as still being major barriers to achieving anti-poverty goals in the poorest countries of the world. The September 4, 2008 Report by the MDG Gap Task Force on the Millennium Development Goals also notesthat there has been “significant progress in debt relief for the poorest countries,” as well as “improved access to medicine and technology; but more needs to be done.” More...


[SOURCE: BUSINESS TIMES]


In a related story, Theo Mushi from THE GUARDIAN writes: Millennium Development Goals are off track - UN report:
Most recent report to be tabled before the United Nations General Assembly next Tuesday to mark midpoint implementation of Millennium Development Goals (MDGs) will be casting doubts on African continent`s readiness to meeting a good number of stated development targets.

The report as already seen notes that internationally agreed development goals and MDGs provide a globally endorsed framework to address a number of development challenges and crises facing Africa through the pursuit of sustainable development. More...

Starting business now tougher, says W. Bank

Starting a new business in Tanzania is more difficult today than a year ago, a World Bank report says. And adding insult to injury, getting credit for start-up capital is equally more difficult.

The report tittled, 'Doing Business 2009', a copy of which was made available to The Citizen in Dar es Salaam, has detailed seven out of 10 indicators in which Tanzania has lost ground. More...


[SOURCE: THE CITIZEN]

Uganda shilling set to firm in medium term

The Citizen Correspondent, Kampala, and Agencies

Uganda's shilling will firm against the US dollar in the medium term on bigger inflows of greenbacks from foreign investors despite record inflation offsetting some of the gains, dealers say.

"Three months from now, we expect a lot of inflows from offshores, NGOs and Ugandans living abroad. This will definitely create a bit of pressure on the dollar towards the end of the year," said Ronnie Mutebi, a dealer from Bank of Africa. Donors have hailed Uganda as a beacon of macroeconomic stability after years of steady growth, but high global oil and food prices have hit East Africa's leading economies hard. More...


[SOURCE: THE CITIZEN]

Thursday, September 11, 2008

All construction firms ordered to employ qualified engineers

2008-09-10 09:40:02
By Felix Andrew


The government has ordered all contractors working in Tanzania to ensure that they only hire qualified engineers to supervise their construction projects.

This was said in Dar es Salaam last week by the Minister for Infrastructure Development Dr. Shukuru Kawambwa soon after opening the 6th Annual Engineers Day (AED-2008) which was organised by the Engineers Registration Board (ERB). More...


[SOURCE: THE GUARDIAN]

NMB to refund Sh37bn to would-be investors

By Mnaku Mbani

The National Microfinance Bank will have to refund would-be investors more than Sh37 billion following oversubscription of its initial public offer (IPO).

Preliminary reports on the IPO, which opened on August 18 and closed on Monday, indicate that it has been oversubscribed by over 42 per cent.

The Consolidated Holding Corporation announced on Tuesday that a total of Sh100 billion was recorded from the sale of the State's 21 per cent stake in the bank. The Government remained with a 30 per cent stake following the floatation of 105 million shares to the public at Sh600 per share. More..


[SOURCE: THE CITIZEN]

Cotton prices crashing down contrary to predictions

2008-09-11 10:03:13
By Felister Peter, recently in Mwanza


Cotton farmers will be earning not as much out of every unit they will be selling this year because the global price for the commodity has tumbled compared to last year, reliable sources have indicated.

Price indicators for the crop were revealed recently in Mwanza region by the Kwimba District Commissioner Danhi Makanga. More...


[SOURCE: THE GUARDIAN]

Dr Migiro: Impact of Aids bad for African economies

2008-09-11 10:13:19
By Guardian Reporter

United Nations deputy secretary general Asha-Rose Migiro has said the impact of HIV/Aids has made assessment of the way the pandemic has affected economic development in Africa especially difficult.
She said this when addressing the Third Symposium of the UN University and Cornell University Africa Series on ``The Social and Economic Dimensions of HIV/Aids in Africa`` in New York on Tuesday. More...


[SOURCE: THE GUARDIAN]

Dodoma varsity students due to report in phases

2008-09-11 10:06:13
By Guardian Reporter


Students who have been enrolled at the University of Dodoma (UDOM) for the 2008/09 academic year will report for studies in two clusters, according to a notice issued by the University administration.
According to the notice, made available to `The Guardian`, yesterday students in cluster One, will start their academic year in September 27, this year, while those in cluster two are set to commence their programmes early December, this year. More...


[SOURCE: THE GUARDIAN]

Govt reassures TRL workers on 200,000/- minimum wage

008-09-11 10:04:51
By Patrick Kisembo


The government has said it is working hard, in collaboration with the management of Tanzania Railways Limited (TRL), to ensure the company workers are paid new minimum salaries as agreed.

Infrastructure Development public relations officer Martin Ntemo said on Monday that the government had held several meetings with the TRL management to discuss the issue. More...


[SOURCE: THE GUARDIAN]

Nitty gritties of the upcoming EA investment forum


The Global Investing Committee of the New York Society of Security Analysts (NYSSA), in partnership with the Association of New Generation of Leaders for Africa (AngelAfrica), would like to invite you to the East Africa Investment Forum which aims to provide a platform for governments, private companies, and financial institutions to showcase investment opportunities in East Africa.

The regional block called the East African Community (EAC), is made up of Burundi, Rwanda, Uganda, Kenya, and Tanzania, countries covering 701,028 sq. miles that represent a market of 125 Million people and a combined GDP of US $104.2 billion.

Attendees will hear from among others, government officials, investment agencies, directors of local and multinational financial institutions, and emerging market fund managers and private equity benefactors.

They will learn what leading experts have to say about the Region's economic outlook, its market potential and why this is the right time to venture into this virgin economy. Most importantly, they will share their proven strategies and solutions that are making their ventures succeed in East Africa.

For further information about the Investment Forum please visit http://www.investeac.com

    Conference Focus
  • Financial Sector developments: Capital Markets, Private Equity & Banking
  • Recent growth and trends in Regional stock-markets, IPOs, Market integrations and harmonization, Cross-listing and Cross-trading, and future prospects
  • East Africa's Private Equity landscape, risks and rewards, sovereign ratings, and opportunities in project financing
  • Regional expansion and growth of the corporate and commercial Banking sector, new financial products (e.g. Islamic banking, micro-finance, credit guarantee schemes, credit background), the regional macro-economic environment
  • ICT and Business Process Outsourcing: Exposing American business to East Africa's ICT regulation, Infrastructure development, Knowledge Process Outsourcing (KPO) and Business Process Outsourcing (BPO)




    Panelists
    Confirmed panelists include:
  • Heri Bomani, Managing Director of Kenya Commercial Bank (KCB) in Tanzania
  • William Mpambika Chiume, Founding Partner of EAEconomics & Former Director of Investment Promotion, Tanzania Investment Center
  • Robert Fogler, Managing Director of the Thousand Hill Venture Fund
  • Nyagaka Ongeri, Managing Director of Debt Capital Group at Barclays Capital
  • Cherian George, Managing Director - Americas Global Infrastructure & Project Finance, Fitch Ratings
  • Ashley Bendell, Associate Director - African Equities, Exotix USA
  • Susan Tuttle, Director of Woldwide Innovation Policy IBM
  • Paul Kukubo, CEO of Kenya ICT Board
  • Brian Herlihy, President of Seacom
  • Dr. Jabulani Dhliwayo, CEO of JC Broadband, Nepad Council ICT Department Chair


Date and Venue
Location:
1177 Avenue of the Americas (between 45th and 46th Streets)
2nd Floor
New York, NY 10036-2714


Date: September 19th, 2008
Time: 8.30am-4.30pm

For Registration Information Please visit
www.investeac.com/REGISTER

Goats grazing in downtown Los Angeles

Dear forum members. I just came across this photo on The Telegraph website and I thought I'd share it with you.

A goat-keeper watches over a herd of 100 South African Boer goats chew through tough weeds and dry grasses to clear a steep hillside lot near the Angels Flight funicular railroad in downtown Los Angeles