Dar is Africa’s bright spot in economic growth

TANZANIA is among a few countries in Africa with robust growth of economy as the continent is expecting growth to fall to its lowest level in two decades due to a slump in commodity prices and continuing weakness in global growth, a World Bank report says.

With economy on track to expand by 7.2 percent in 2016, up from 7 percent in 2015, the East African country joins Ethiopia, Rwanda, and Ivory Coast as few bright spots in Africa of countries that have continued to record growth rates of above 6 percent, according to “Africa’s Pulse”, the Bank’s twice-yearly analysis of economic trends.

The report, which was unveiled in Ivory Coast’s commercial capital Abidjan, said Tanzania registered strong growth, underpinned by expansion in construction and services sectors. However, it singled out Ivory Coast and Senegal as top performers in the continent.

The report said economic growth in sub-Saharan Africa is likely to slip to 1.6 percent this year, its lowest level in two decades, due to continuing woes in the continent’s largest economies South Africa and Nigeria.

Africa has been one of the world’s fastest growing regions over the past decade, but a commodities slump has hit its oil and mineral exporters hard, bringing growth down to 3 percent in 2015.

“Our analysis shows that the more resilient growth performers tend to have stronger macroeconomic policy frameworks, better business regulatory environment, more diverse structure of exports, and more effective institutions,” said Albert Zeufack, World Bank Chief Economist for Africa.

According to the report, there were some bright spots, mostly among oil importers, where economic activity remained robust.

“Côte d’Ivoire saw broadbased growth, supported by a favourable policy environment, rising investment, and increased consumer spending,” “Ethiopia and Rwanda continued to post solid growth, supported by public infrastructure investment, private consumption, and a growing services sector.

Elsewhere, growth remained buoyant in Kenya, amid improving economic stability.” Meanwhile the National Bureau of Statistics said yesterday that economy grew 7.9 per cent in the second quarter of 2016, compared to 5.8 percent during the same time last year.

“The growth of GDP in the second quarter was driven by mining, manufacturing and energy sectors,” Albina Chuwa, the Director General of the bureau, told a news conference.

“The increased production of natural gas has significantly boosted electricity generation in the country.” Tanzania’s growth in the first quarter was 5.5 percent.

New Fuel bulk procurement system launched

PETROLEUM Bulk Procurement Agency (PBPA) has rolled-out cargo by cargo tender system of fuel importation for November delivery that witnessed falling costs.

This is a single product tendering system where petroleum products importers bid to supply Diesel, petrol and Jet fuel and kerosine separately.

The PBPA Acting Executive Director, Mr Michael Mjinja, said in Dar es Salaam yesterday that in just the first day of the tendering system, figures put forward by bidders are down compared to the old system.

“It is very much encouraging for the country when looking at the tendering numbers put forward by importers particularly tender winners,” he said in his closing remarks after the tender committee chairman Mr Ali Ahmed declared the successful bidders of cargo by cargo.

He said the declining importation costs may be translated into falling fuel prices in December only if global oil prices remain low.Company that emerged successful at the cargo by cargo tender meeting is Addax Energy SA for delivering 78,284 metric tonnes of gasoil at 18.990 US dollars per metric tonnes and 14.970 US dollars per metric tonnes for cargo I&II respectively.

Also the total bid price value of the cargo I&II is 1,486,633.150 US dollars and 1,171,911.480 US dollars respectively. Similarly, Addax Energy SA won the tender of Jet A-1 of importing 23,962 metric tonnes at 21.120 US dollars per metric tonnes and total bid price value of 506,077.440 US dollars.

For Motor Spirit Premium, Trafigura Energy SA emerged winner of importing 35,150 metric tonnes after offering 8.800 US dollars per metric tonnes and 9.200 US dollars for cargo I&II respectively at a total bid price value of the cargo I&II of 309,328.800 US dollars and 323.380 Us dollars.

Other companies that participated in the tender processes are Sahara Energy SA, Vitol Bahrein E.C, Augusta and Enoc Africa Limited.

On his part, the Energy and Water Utilities Regulatory Authority (EWURA) Principal Commercial Officers- Petroleum Engineer Lorivii Long’idu said the new system has been interesting with hope for more companies to participate in the following tenders.

“This means that local companies that complained of being locked out due to heavy financial requirements, can now take part in the tendering process,” he said.

Farmers to get improved coffee seedlings

TANZANIA Coffee Research Institute (TaCRI) will distribute to farmers improved varieties of coffee seedlings to boost production as it marks international coffee day tomorrow.

TaCRI Technology Transfer and Training Programme Manager, Mr Jeremiah Magesa said here yesterday that the improved coffee seedlings are pest and drought resistant.

He said in various zones that cultivate coffee in the country growers will be engaging in planting the new coffee seedlings to boost efforts in addressing the problem of low coffee productivity.

Mr Magesa said Tanzania, as one of 77 member states of the International Coffee Organisation (ICO) would join dozens of coffee associations from around the globe to celebrate the International Coffee Day.

The day is a global celebration of coffee’s journey from the farm to shops; an opportunity to honour the men and women who grow and harvest coffee. He noted that TaCRI would consistently support coffee farmers in the country to successfully have improved productivity and quality through technology transfer and crop improvement programmes.

Mr Magesa urged coffee farmers to strive in developing organic farming and apply Integrated Pest Management (IPM) technologies that do not use chemicals (insecticides) for the new cultivars to support the rehabilitation of coffee farms.

Through support from the European Union (EU), said the expert, TaCRI has developed and passed over to farmers the second-generation compact coffee hybrid varieties. “There are 38 compact breeding lines that are currently evaluated in five agro-ecological zones; 36 breeding lines are resistant to Coffee Leaf Rust (CLR); all 38 are resistant to Coffee Berry Disease (CBD).

We are going on with huge work and expect to release officially at least five to six others in 2017/18,” said Mr Magesa.

The ICO was established in 1963 after the first International Coffee Agreement (ICA) entered into force in 1962 for a period of five years, and it has continued to operate under successive agreements negotiated since then.

Mr Magesa noted that the latest agreement, the ICA 2007, was adopted by the Council in September 2007 and entered into force definitively on February 2, 2011.

Following a series of shortterm agreements between producing countries, a Coffee Study Group was formed to consider negotiating an agreement to include both exporting and importing countries.

“The outcome of the work of the Study Group was the successful negotiation at the United Nations headquarters in New York of the International Coffee Agreement 1962. This was followed by a second five-year Agreement in 1968.

These two agreements contained provisions for the application of a quota system whereby supplies of coffee in excess of consumer requirements were withheld from the market,” he said.

The seventh International Coffee Agreement reached on 2007, strengthening the ICO’s role as a forum for intergovernmental consultations, facilitate international trade through increased transparency and access to relevant information.

It also promotes a sustainable coffee economy for the benefit of all stakeholders and particularly of small-scale farmers in coffee producing countries.

He said the overall objective of the agreement is to strengthen the global coffee sector and promote its sustainable expansion in a market-based environment for the betterment of all participants in the sector.

Other new objectives include encouraging members to develop appropriate food safety procedures in the coffee sector; develop strategies to help local communities and small-scale farmers to benefit from coffee production and facilitating the availability of information on financial tools and services.

Petrol Stations given more time to fix EFDs

PETROL stations on the peripheries of the City of Dar es Salaam have been given more time to fix Electronic Fiscal Devices (EFDs) directly to their fuel pumps as the deadline given earlier elapses tomorrow.

The Tanzania Revenue Authority (TRA) had on July ordered all petrol stations in the city to install the devices by September 30.

The TRA Director of Taxpayers Education, Mr Richard Kayombo, said yesterday that the authority has decided to extend the deadline in order to give more time the petrol stations in the outskirts of the city.

“After a meeting with stakeholders and establishing the challenges in the exercise, particularly for petrol stations on the peripheries, we have decided to provide more time but we have yet set another deadline,” he said.

The meeting involved the TRA, Ministry of Finance and Planning and Petrol Stations Owners Association (TAPSOA). The meeting arrived at the decision to extend the deadline to provide more time to address the current challenges facing the exercise.

However, Mr Kayombo said the petrol stations that have not yet fixed the EFDs should continue using the Electronic Tax Registers (ETR) to issue the receipts upon selling the fuel.

The authority further reminded owners of the petrol stations to ensure that they issue receipts on each transaction to avoid unnecessary inconveniences, including facing the legal action.

The TRA introduced the EFDs to help curb tax evasion as sales transactions will be monitored electronically and receipts generated automatically whether or not a client asks for them.

ATCL heads to prosperity

PLANS are well underway for the government to purchase two more new aircrafts to revamp the ailing national flag carrier, Air TanzaniaCompany Limited (ATCL).

President John Magufuli affirmed in Dar es Salaam yesterday that already the government has allocated adequate money to buy a 160-seater aircraft and another plane with capacity to carry over 240 passengers.

“If we purchase the aircraft that carries 240 passengers, customers will be assured of direct flights from Dar es Salaam to China or US and our tourists from China, US, Russia, Germany and other countries will comfortably arrive in our country,’’ he said.

Dr Magufuli was speaking at the Julius Nyerere International Airport (JNIA) at the official launch of the two new aircrafts that have just arrived from Canada. The government procured the two brand new Bombardier Q400 NextGen aircrafts from Canada at a cost of 46.6 million US dollars (over 90bn/-).

The planes are expected to boost ATCL’s performance in the domestic and international flights.

The president said the government decided to buy the aircrafts that have been leased to ATCL to operate professionally and recoup the government's invested capital.

He expressed his satisfaction on the new board, saying it was one of the best with good brains, insisting that the government hired the ATCL’s Chief Executive who was working abroad.

The president said the government has already allocated 100bn/- for the construction of various airports countrywide to enable people interested on using air transport to do so without any problem.

In improving transport in Dar es Salaam city, the president hinted that the government plans to buy trams, buy more wagons for commuter trains and build interchange at Ubungo junction.

The official inauguration of the two new aircrafts was attended by, among other leaders, Chief Secretary (CS), Ambassador John Kijazi and the Minister for Works, Transport and Communications, Prof Makame Mbarawa.

ATCL recently got a new Director General Ladislaus Matindi and new board of directors chaired by Eng Emmanuel Korosso. Prof Mbarawa last week gave ATCL a three-month ultimatum to restructure the entire management.

Ambassador Kijazi, speaking at the event yesterday, said that the two aircrafts were not an ultimate solution to the ATCL’s woes. “The company needs to come up with a strategy that will help it to run commercially and generate profit … the challenges are known and it's now time to make changes,’’ he said.

He said the two government owned planes through ATCL will be operated on lease agreement.

Dr Magufuli said they opted for the modality in order to ensure that the planes were not operated in 'business as usual' style that has crippled ATCL in the first place

Top 50 Tanzanian brands lined up for award Oct. 7

VICE-President, Ms Samia Suluhu Hassan, is expected to grace a ceremony at which Top 50 Tanzanian Brands organised by theTanzania Private Sector Foundation (TPSF) will be awarded.

The event will be held in Dar es Salaam on October 7. TPSF Executive Director, Mr Godfrey Simbeye, told a press conference in Dar es Salaam yesterday that the annual event was in line with a campaign to promote locally made products dubbed 'Proudly Tanzanian'.

"The event is aimed at recognising contributions made by producers and manufacturers in the production of locally made products," said the TPSF Executive Director.

Mr Simbeye said the event which will attract about 400 participants is a culmination of the Top 50 Tanzanian Brands competition. He pointed out that the goal of the competition was to change perception by consumers towards local products.

"Twenty out of the Top 50 Tanzanian Brands have also been selected for the best African brands competition to be held in Egypt," he observed. Proudly Tanzanian Campaign Manager, Mr Emmanuel Nnko, said the campaign was jointly being carried out by TPSF and TanzaniaBureau of Standards (TBS). He added that TPSF borrowed a leaf from South Africa which embarked on such campaign in the past 15 years.

"The campaign is geared towards raising awareness on the production of quality products made in the country," he said. Mr Nnko said the campaign would facilitate to increase consumption of the locally made products, a situation that will increase revenue collection in the country.

Unveiling the campaign in the city recently, Mr Simbeye said the campaign was based on four priority areas namely creating awareness, emphasising on the need for using locally produced high quality products, encouraging businesses to increase the value of their products and using locally produced raw materials. "In launching this campaign, we decided to start with the introduction of the Top 50 Tanzanian Brand Awards 2016," he said.

Buzwagi sets aside 1.2bn/- for trees planting in Kahama

ACACIA'S Buzwagi Gold Mine has set aside 600,000 US dollars (about 1,2bn/-) for tree planting in Kahama District. The mine Sustainability Manager George Mkanza said the money set to plant 1.6 million trees starting this rain season.

"We (Buzwagi) will not plan those trees rather paying for planters as a community income generation facility," Mr Mkanza told the 'Daily News' during a one-way reporters tour of the mine today. The programme involving giving trees to planters and the mine will pay for every tree growing to some acceptable level.

The planter will be given the task of watering the trees and protecting them from drying out. Kahama receives 700 milliliters of rain a year. Also the district faces trees declining trend which do not match with planting ratio.

Last year Buzwagi constructed 15 deep boreholes around Mwendakulima communities that surround the mine. On top of that built a health centre at Mwendakulima which is the first such centre for Kahama municipal.

The health centre has the capacity to receive over 70 outpatients a day. At the moment the centre has some 25 staff. The centre is powered by solar power, with rain water collection and storage systems and has staff house.

Mwendakulima Health Centre went into operations last December and was full furnished by Buzwagi mine.

The mine constructed another primary school for Budushi community that took its first standard one pupils in July. Under corporate social responsibility, Buzwagi constructed three full fledged primary schools and one secondary school, about five secondary school laboratories.

It also constructed 5.0 km of tarmac road and 12km of gravel road in Kahama.

The low grade mine spent some 1.6 million US dollars a year on corporate social responsibility projects.