Saturday, April 21, 2012

Banks urged to observe basic roles in order to empower Tanzanians

THE National Economic Empowerment Council (NEEC) has outlined five major areas as key roles which if followed by Banks operating in the country, the initiatives could enable to empower Tanzanians in all aspects of economic development and ultimately reduce their poverty stricken situation. NEEC's Executive Secretary Dr Anacleti Kashuliza said in his paper presentation titled “The Role of Banks in empowering Tanzanians” during a meeting with Tanzania Bankers Association (TBA) stakeholders which was held last week in Dar es Salaam. According to Dr. Anacleti, the suggested areas that the banks can play as major key role are in Product and services, Bank outreach, Technology uptake, Financing in key economic areas and Banks' involvement in Micro-finance, saying that, are the most crucial for empowering Tanzanians. He says, banks should design products and services which suit Tanzanian market to enable more Tanzanians to access it. Currently most of the products are designed basing on the banks requirements rather than being customer driven. “Banks' products such as mortgage and leasing finance should be at the fore front to transform lives of Tanzanians”, he said adding that, by accessing such products it could attract the large population as many would like to have their own houses so as in the long run, they could be in a position to improve their livelihood and accelerate economic growth. On Banks' Outreach programs he said that, “access to finance is limited for both urban and rural population. Most of the banks tend to concentrate in urban areas and leave potential untapped market in the rural areas”. In view of this, he therefore insists that, Banks should go to the rural areas and increase the reach and coverage of consumer outreach initiatives. This can be done through agency and the technological support. Technological innovation has played a transformative role in extending affordable financial services, particularly to the rural population. Technology has offered financial institutions the means to reduce transaction costs and hence allowing financial services to be delivered more rapidly and more conveniently to broad sections of the population. In view of the above factors, Dr. Anacleti says that, “Banks should exploit the advancement of technology in reaching more population in the country at affordable costs. Under the role of 'Financing in Key economic sectors', Commercial banks concentration of loans is in quick turnover businesses, and according to him, they should focus more on financing key empowering sectors such as agriculture and manufacturing which employ the majority of Tanzanians. In view of this, NEEC is urging the TBA members to deliberately support the growth of key economic sectors which employ majority of the population such as agriculture. This could be through creating agriculture window financing which match with the agricultural conditions in the country. On Banks' involvement in Micro-finance, the paper is quoted as saying that, Commercial banks in the country dominate the financial markets in Tanzania as they have not extensively participated in micro finance activities which touches a large section of middle and low income groups. The demand of funds in micro-finance can be met if commercial banks change their attitude towards the micro-finance market and become important players. In view of this, NEEC has commended the role played by five major banks in the country in their effective facilitation. The banks are CRDB Bank Ltd, Akiba Commercial Bank, The Tanzania Postal Bank, The Mkombozi Bank and National Micro-finance Bank which have shown some interest and participated in this market by offering Micro-finance Services and products for the purpose of not only making profit but also to alleviate poverty of the customers, and create opportunities for change and growth. In order to take economic empowerment forward, sectoral and multi sectoral initiatives are required to realize the desired results. Though the Banking sector in Tanzania has shown tremendous growth in volume and complexity during the last few decades, there are challenges which can be turned into opportunities as joint efforts are deployed. The Limited access to finance of both urban and rural population is partly due to lack of financial literacy which enhances financial inclusion and consumer protection. According to Finscope survey of 2009 on access to financial services which NEEC quoted in its paper, only 10 percent of the population has access to formal monetary operations whereas 54 percent are basically excluded completely.
NEEC's Executive Secretary Dr Anacleti Kashuliza. There are low levels of awareness and high levels of ignorance about various financial products and terms. Most people say they understand what a loan is, but less than 60 percent understand what interest rate is. 60 percent of people say they understand what a SACCOS is, but only half of that number understand what an interest on savings means. Banks can collaborate or support financial literacy program which aims at empowering more individuals to make informed financial choices and increase the reach and coverage of consumer outreach initiatives. In view of this, NEEC is therefore urging TBA members to set aside part of their CSR budgets to support financial literacy awareness campaign countrywide through different channels such as electronic and printing media and sensitization programs. This will facilitate capacity building and assist in creating a bankable society. With these recommendations, under the implementation of financial literacy, NEEC has commended some Banks which have started to implement this program. One such banks is the Barclay Bank under the project dubbed Bank on Change (BoC) which it conducts with its partners namely Care and Plan International focusing on financial literacy creation through developing access to financial services. NEEC through its guarantee scheme fund known as Mwananchi Empowerment Fund (MEF) welcomes Banks to join forces with the Institution in boosting the capital of this Fund but also in developing innovative products aimed at small and medium business growth in the country. This arrangement can be through business plan contests, venture capital funds for small and medium business. Presently MEF is operational in Lindi, Mtwara, Manyara, Singida, Rukwa and Ruvuma, guaranteeing SACCOS business focusing on agriculture, livestock and trade. In the SACCOS programme NEEC is collaborating with CRDB. Finance for transition graduates is one of the areas NEEC is looking forward to collaborate with Banks to empower graduates for self employment and job creation instead of being job seekers on the streets when they leave Universities and Training Institutes. NEEC has already prepared a proposal for this program and are on the way looking for interested financiers. The banking sector in Tanzania has undergone substantial structural change since the liberalization of the sector in 1991.The financial landscape is comprised mainly banks, pension funds, insurance companies and other financial intermediaries. However the sector is dominated by banking institutions particularly commercial banks which account for 75 percent of the total assets of the financial system. There are over 42 financial institutions operating in the country as of December 2010. Statistics shows that, total deposits for the banking sector have expanded rapidly in the past decade to a total of shilling 12.5trillion at end of September 2011 equivalent to 39 percent of country’s Gross Domestic Product. Despite the rapid growth in banking sector, the financial inclusion remains low and access to finance is limited for both urban and rural population. The NEEC's policy states clearly that the availability of capital for investment and operations remains a major constraint due to many reasons including limited sources of savings due to low incomes as well as lack of a saving culture, constraints that discourage banks from issuing credit such as high credit management costs caused partly by the lack of national identity cards and the absence of a credit information bureau where information concerning borrowers could be easily obtained, and weaknesses that make most borrowers uncreditworthy (lack of knowledge and experience in preparing bankable projects as well as lack of collateral and equity funds to start business). NEEC concludes that, the uptake of financial services remains low due to limited concentration of financial institutions in the rural areas and low level of knowledge on financial products and terms. Therefore in view of the above reasons, NEEC recommends that banks should expand their services to the rural areas to enhance convenience of their services and join efforts with other stakeholders in the community in providing financial literacy to the unbanked and under banked population. The training will help the disadvantaged people improve their financial literacy and money management skills, thus empowering them to make informed decisions. NEEC is ready to collaborate and support financial institutions in empowering more Tanzanians to access financial services. The NEEC is the apex body established following the formulation of National Economic Empowerment Policy and subsequent enactment of National Economic Empowerment Act No 16 of 2004, charged with the responsibility of supervising, monitoring and coordinating all economic empowerment activities. The Council works under the Prime Minister’s Office and was established in 2005 while its Secretariat employed in May 2007 to perform the day to day operations of the Council.

A foreign company invests Tsh. 75 billion in tobacco exports in Tanzania

A foreign company by the name Alliance One Tobacco Tanzania Ltd (AOTTL) dealing with the tobacco exports in the country since 2005, has invested a total of US$ 50 million (about Tsh. 75 billions) in tobacco exports in the country, thus becoming the leading tobacco exporter. It has been learnt. The company's Managing Director Mark Marson said last week in Dar es Salaam during his meeting with editors when briefing his company's successes and challenges for last year's trading period. He said the success of his company has been attained as a result of such a heavy investment which the company has incurred since it started operation in the country in 2005. Initially the company had invested about US$ 40 million which was used for processing plant, making its factory one of the best in Africa. In 2011, the company added new investments of US$10 million bringing the total value of investment by AOTTL in Tanzania to date to approximately US$ 50million. However, he could not disclose the profit his company has earned since then. “We acknowledge and appreciate that the investment environment is conducive, and that the TIC (Tanzanian Investment Center) played an important role in helping us with our investment”, he said adding that, AOTTL has continued to invest each year directly in infrastructure at the factory, and in the field.
On Corporate Social Responsibility Program (CSRP), which includes community and farmer based activities the company has been engaged with by providing assistances to tobacco farmers in various tobacco growing regions in the country. The company has also been engaging in training program on the oxen project. According to him, AOTTL operates Oxen training centers in tobacco growing regions of Tanzania namely Tabora, Urambo, Kahama and Mpanda. The aim of the project is to improve tobacco cultivation by providing farmers with trained pair of oxen and implements e.g. plough, ox carts, ridgers etc. Farmers pay for the oxen through loans sourced from commercial Banks. By the end of 2011 2,930 pairs had been trained and more than 2,290 families were supplied with trained oxen. One pair of oxen together with implements costs Tshs 1.9 million. AOTTL in collaboration with other stakeholders operate a reforestation program through the Association of Tanzania Tobacco Traders (ATTT) whereby farmers are supplied with tree seedlings for planting at a subsidized rate. For the last 8 years from 2004 to 2012 a total of 69,209,000 tree seedlings were supplied to tobacco farmers. The industry policy is for the farmer to 2012 a total of 69,209,000 tree seedlings were supplied to tobacco farmers. The industry policy is for the farmer to plant 50 tree seedlings. The aim of the project is to improve tobacco cultivation by providing farmers with trained pair of oxen and implements e.g. plough, ox carts, ridgers etc. The total number of farmers who sell tobacco to Alliance One is estimated at about 30,000. AOTTL employs 300 permanent employees and about 2,500 seasonal during peak season. Tobacco growing in Tanzania is mainly done by about 100,000 small holder farmers who grow an average of a hector per family. AOTTL is in the final stages of completing construction of a water dam which will be used to store water for use during the dry season when the major water source of Ngerengere River is almost dry. The dam has an area of 13,000 square meters and a storage capacity of 35 million liters which is enough to run 4 months of processing. Alliance One Tobacco Tanzania Ltd (AOTTL) is a subsidiary company of Alliance One International (AOI) of the USA, with its headquarters in North Carolina. It is one of the three tobacco buying companies in Tanzania. AOTTL has its headquarters in Morogoro municipality at Kingolwira. AOTTL is involved with Tobacco buying, processing, and selling to local and international cigarette manufacturers. It buys over 45 million Kgs of Tobacco from more than 160 contracted Farmers Cooperative Primary Societies.

Economists outlines reasons for poor life standards in Tanzania

ALTHOUGH Tanzania government has been touting to show that its economy has grown up to a certain level, economists say that, the high inflation rates continues to haunt consumers of the basic human necessities mainly due to various factors including poor economic means of production. James Dyoya, an international trade economist said that, “there is no way people's life would be improved in the country if the basic means of economic production such as infrastructure would not be improved in order to help larger population of rural people whose economic activities relies on subsistence farming. Basing his factors on Tanzania context, he said that, Tanzania farmers do not produce to the satisfaction to enable the surplus to be sold outside the country an aspect that is causing the basic economy on the production of food crops to be into a lower scale. The situation is sometimes aggravated by high costs of imported fertilizers and farm chemicals used by farmers. In addition to that even to those lucky farmers who produces a substantial amount of food crops and manage to sell the surplus, are mostly affected by poor infrastructure when it comes to transportation of their food crops thus exacerbating the high costs which is characterized by high demand. The transport industry depends on imported fuel to run agricultural machineries such as tractors to enable cultivate large farms in rural areas, thus this dependence requires foreign money to purchase. Since most farmers are unable to do that, the probability of refilling the needy gap is impossible. About 85 percent of the goods sold in various local markets in the country are imported and 15 percent are locally manufactured. This trend in future will put Tanzania into a bad state of economy as it will be the market of other country's products. He said. However, he noted that fast moving commodities for basic human needs such as toothpaste, soaps, clothes, shoes, some edible oil, Jam and ointments and many others, have dominated the local market and this is a clear indication that, the locally produced goods do not satisfy the demand of consumers at the local market. The presence of imported goods at a local market is an indication which shows that, the structure of the national economy is low and moreover is squeezed into foreign dominated investment to the extent that large scale production of the basic needs is foreign owned. He also noted that, in large scale areas of productions such as in big factories like mining, breweries, cement factories, as well as in services orienting sectors such as in the Telecommunications industry whereby service economy is dominated by foreigners such as mobile operating companies. As a result foreigners dominates the economy as all the major economic resources are in their hands because of the fact that almost all bigger industrial production investments which attracts foreign currency are dominated by them. In order to counter all these, the government should count and list down the problems which are associated with the economic means of production especially in rural areas in a bid to expand the production capacity and set out various ways to curb the implementation plan so as to overcome the menace .According to his views, he suggests that, each ministry in the country should budget their problems in order to counter check them and see how to deal with each one of them if they would be likely to be invested in the form of projects. On the side of the national budget, he said looks at the recurrent expenditure which are to as greater extent is being financed by donors who impose conditions which can't give something tangible to eliminate the existing problems in the country. The reasons for this according to him is that, donor countries are the once who have invested in big industries in the country covering 95 percent of the national economy. Another economist Professor Humphrey Moshi of the University of Dar es Salaam says that, in order to punch out economic hardships among the people of Tanzania, the industrial economy should not be left in the hands of foreign investors as they hide huge profits back to their mother countries. According to him, he therefore suggests that, this must be controlled by the indigenous and private sectors in the country. On the other hand, he has said that, people especially the youths who constitute 80 percent of the workforce in every production unit must be made to work diligently in order to produce more.

A Professor wonders why the government abandons railway transportation

A Senior University Lecturer has blamed the government for its failure of not taking appropriate and serious steps in order to revive the operations of the dwindling central railway line, which since independence had been the pillar of the national economy for transporting goods. He wonders as to why the government has turned a blind eye to such a viable economic feature, noting that embezzlement shown on such crucial matters has contributed to a high inflation rate to a certain extent. Professor Humphrey Moshi of the Economics department at the University of Dar es Salaam (UDSM) said in last week in Dar es Salaam that, “railway transport is the most important means of economic production and if properly used, could eradicate some of the economic troubles currently facing the nation”. He has observed that, the continued lack of seriousness by government top officials including the Ministry of Transport on the basic economic matters especially on railway transport infrastructure would continue undermining the country's economy to a greater extent as most subsistence crops and those of the commercial which needs quick transport would not reach to their consumers. He targeted the central railway line and said is not only vital for the transportation of passengers, but from the economic point of view, the railway is vital for the transportation of exports and imports for the neighbouring landlocked countries such as DRC, Rwanda, Burundi and Zambia through Dar es Salaam harbour. He also mentioned another railway line which has long been forgotten that serves the eastern zonal regions in the country which starts from Dar-Tanga-Moshi and Arusha terminals, this he wondered currently does not operate for unknown reasons. He asserted that, railway is an efficient means of production of the economy of any country, and its reliability has ensured a smooth transportation of goods from within and outside the country. Unlike road transport which requires intensive repair and regular maintenance an aspect that cannot quicken the pace of economic development in the country. Professor Moshi highlighted these issues immediately after he had advised the Economic Social Research Foundation (ESRF) on other basic research on economic issues during the launching of the firm's Medium term strategic plan of 2012-2015, that the ESRF would undergo for another three years. Earlier, he commended the work done by ESRF which has been in operation for the last 18 years to be good, but noted that the implementation of their plan should more concentrate on private sector as a basic role of economic matters. In his views, Professor Moshi urged the ESRF to address the major constraints of the poverty stricken situation from the grassroots levels, noting that it is very difficult to reduce the high rate of inflation in the country if there is no effective transport means to support agricultural economy. On his views, he assumes that transport is still poor in the country especially from most food crop producing regions. ESRF is embarking on the fifth phase medium term strategic plans taking into account that need to research and build capacity on priority issues highlighted during Tanzania's mid-term development plan, the current five year plan *2011/12 to 2015/16), which focuses on addressing productive capacity constraints in addition to encompassing the objectives spelt out in MKUKUTA II strategies. The ESRF's Executive Director, Dr. H. Bohela Lunogelo said during the launching ceremony that, his organization is currently looking for fund which would enable them to concentrate mainly on five different research agendas of unleashing the country's economic growth potentials. He noted that, the plan's core programs reflects the objectives of MKUKUTA II, Mini-Tiger Plan 2020, and key sector strategies in Agriculture, Livestock, Mining, Tourism and similar industries. He further noted that, the program would address challenges for a more inclusive growth necessary for the substantial reduction of poverty in Tanzania. He mentioned the broad themes as the main research areas as Inclusive growth and wealth creation, Social services, protection and quality of life, Natural resources and environmental management, Governance and accountability and Globalization and regional integration. Under each broad theme, several sub-themes have been developed reflecting outstanding issues. Sub-themes proposed are geared towards achieving specific objectives, and building on the broad ESRF objectives.

Sabodo to build 10 water wells in East Urumeru constituency

RESIDENTS of East Arumeru constituency in Arumeru district, Arusha region will soon benefit free water supply following the donation of 10 water wells worth over Tsh. 150 million in estimates which will be built within the region by a famous Dar es Salaam based businessman. Mustapha Jaffer Sabodo made a pledge yesterday in Dar es Salaam when talking to journalists at his residence, noting that, the offer is in honour of the recent victory attained by Chama Cha Demokrasia na Maendeleo (CHADEMA) party. In addition to that, Sabodo has also pledged 100 bicycles (worth over Tsh. 250 million) for disabled persons within the constituency. Apart from the above pledges, Sabodo donated Tsh. 100 shillings on the spot which he paid by cheque in respect of the CHADEMA party, the money which will help facilitate the social developments the party is spearheading for the people in the country.
A famous Dar es Salaam businessman Mustapha . J. Sabodo presenting a cheque worth Tsh. 100 million to CHADEMA Secretary General Dr. Wilbraod Slaa on behalf of his party. The money will be used to help facilitate the social developments the party is spearheading for the people in the country. “I am happy to announce that, I have given these donations in honour of the recent victory attained by CHADEMA party in a recent by-election that took place in that constituency, and that I was happy by what the party is doing for the people of this country” he said. Receiving the donations on behalf of his party, CHADEMA's Secretary General Dr. Wilbroad Slaa thanked the offer and said that, it was not only for his party but were for the benefits of Tanzanians living within the region. After receiving a cheque, he said the money would be used for the purposes targeted and not otherwise. He thereby ordered his accountant whom he came along with that he should make sure that the cheque is deposited in an account namely Chadema Movement for Change which the party opened for spearheading various development activities for the party. Detailing the scheme of distribution of these 10 water wells within the constituency, Dr. Slaa noted that his party would organize to see that they look at the areas which needs urgent attention, and these will be given first priority.

Monday, April 9, 2012

The government transforms cotton sector

THE Tanzania government in collaboration with a UK based Gatsby Charitable Foundation has initiated a major long term program as a help in order to support the transformation of the Tanzania cotton sector whose growth is declining year after year. Working in partnership with the Tanzania Cotton Board (TCB), the program aims to transform the performance of cotton sector by way of doubling its yields which has been currently produced by about 400,000 cotton farmers in cotton producing regions in the country. The Chief Executive Officer (CEO) of Tanzania Gatsby Trust, Ms. Olive Luena said recently in Dar es Salaam that, the program will assist TCB to implement the recently approved regulatory framework for introducing contract farming which will include major policy work on pricing and quality in addition to input finance. According to her, the program will also facilitate universal access to improved cotton seed, encouraging cotton farmers to adopt conservation agriculture and building the capacity sector institutions, in particular.
A woman picks cotton in Meatu district. The move comes as a result of the meeting between the Lord Sainsbury of the UK based Gatsby Charitable firm and Tanzania Minister for Agriculture Hon. Jumanne Maghembe in Mwanza city in May 2011. In their discussion, Lord Sainsbury offered to help the ministry build capacity of the TCB to support sustainable management and development of the sector. The Gatsby Charitable Foundation of UK is funding the strategic review of the TCB which would aim to review the needs of the sector and its stakeholders and its new functions in order to assess the existing capacity of TCB to fulfill the agreed needs. TCB 's mandate as defined by the Cotton Industry Act 2001 is to improve and develop the cotton industry by promoting, facilitating and monitoring the functioning of the entire production, marketing, processing and export chain of cotton sector. Agricultural economists says that, cotton sector in the country is faced with constraints because of increased competition leading to higher farm-gate prices but plummeting investment in productivity. The constraints involves restructuring the industry, improved technologies and farming practices. TCB has since 2008 been promoting the development of contract farming which is organized marketing structure which is expected to regulate transactions, protect contracts, mitigate possible negative farm gate price trends and build trust between stakeholders.

Dar takes steps to alleviate poverty

THE Government of Tanzania has reiterated its commitment to directly integrate national development activities by allowing direct foreign investments to take place in three major economic sub-sectors. This move is intended to reduce poverty amongst its people. Speaking on the issue in Dar es Salaam on Wednesday this week, President Jakaya Kikwete vowed that his government would henceforth concentrate more on the agriculture, mining and tourism sectors of the economy. These, he said, are the key areas which have great potentials in growing the national economy, “despite ups and down which the nation has been facing in different periods since Independence” more than fifty years ago! The president was addressing the 17th Annual Research Workshop which was organized by a non-governmental organization, Research on Poverty Alleviation (RePOA). Speaking at the workshop ― whose theme was 'Social Economic Transformation for Poverty Reduction' ― the RePOA executive director, Professor Samuel Wangwe, said “the economic growth experience in Tanzania in the last decade does not reflect poverty reduction. Recent experiences show that it has been possible for several developing countries to transform their economies and reduce poverty levels substantially. Noting that, “for the last 12 years, Tanzania's economy has been growing at an average rate of seven per cent per annum,” President Kikwete said that, despite this relatively high growth rate, “it is amazing that the rate of poverty reduction among the people in the country has been low!” Statistics, for example, indicate that, from 2001 to 2007 ― a period when Tanzania's economy was growing at relatively high rates ― overall household poverty fell by the marginal rate of only two per cent, from 35.7 to 33.6 per cent! The country's agriculture sector is still backward, and needs to be revamped and boosted soonest. About 80 per cent of the population is found in rural Tanzania, and largely depends on agriculture as their economic mainstay. However, they practice subsistence farming, using antediluvian methods and the hand-hoe. Hence, agricultural growth is very low. In the event, the Government “has firmly resolved that any effective socio-economic transformation in Tanzania should be anchored in agriculture,” President Kikwete said, adding that he is “giving agricultural transformation a very high priority.” The conception and institution of the Agricultural Sector Development Programme (ASDP) and the 'Kilimo Kwanza' Initiative by the Government is testimony to this assertion. The two landmark initiatives are designed to deal with the constraints inhibiting agricultural growth, keeping productivity and production low.
President JAKAYA Kikwete in a group photo with staff and Board members of the Research on Poverty Alleviation (REPOA) immediately he had opened a two day seminar on poverty alleviation which was organized by REPOA at White Sands resort Hotel which is located on the fringes of Indian Ocean off the Msasani Peninsular 30 kilometers away on the outskirts of Dar es Salaam city. This, Kikwete stressed, “keeps farmers in Tanzania poor, and the rural economy weak.” The president further noted that, given its great potential, agricultural development would take a central role in the country's transformation agenda. It will also help in building capacities for other sectors of the economy to develop. When the sector is transformed, Kikwete explained, many other sectors would benefit... Including agro-processing, manufacturing and service industry. As a result, incomes of many Tanzanians engaged in these other sectors will improve their living standards as well! The other areas that have great potential are mining and tourism, Kikwete stated, noting that these two “are already relatively well developed compared to other sectors of the economy.” In recent years, exploration for natural gas has attracted many investors to Tanzania, and their efforts are already bearing good results, with future prospects looking very promising. The government is expecting more investors in mineral and natural gas exploration, Kikwete said. “The only important factor about mining and gas is about how to integrate these sub-sectors to the rest of the country's economy. It is about to ensure that the benefits from these sub-sectors directly go ordinary citizens... And this is the matter that my government is pre-occupied with at the moment.”
I attended the meeting and managed to interview a renown International Economist, Professor Ibrahim Lipumba who is also the Chairman of the Civic United Front (CUF), an opposition party in Tanzania. With regard to tourism, he said “the government is fully into harness its tourism potential and, if this succeeds, tourism will make a very significant contribution to the socio-economic transformation, as well as accelerate the pace of growth and development of the country. This is the sector that its benefits can easily spread and reach many people across the country.” commenting on the president's remarks, an internationally-acclaimed economist, Professor Ibrahim Lipumba, said “the government's initiatives are well-placed, with targets to bring about success...” But he cautioned that it is crucial that implementation of the Government's envisaged action plan and strategies must be followed in the letter and spirit so as to achieve the desired goals. Professor Lipumba ― who is also the national chairman of the opposition Civic United Front (CUF) political party ― said exploration of gas and minerals calls for state-of-the-art technologies, capital and skills, all of which Tanzanians lack. But if the government enters into contracts with private sector investors, Lipumba stated, it must first and foremost, acting with prudence and due diligence, ensure that such contracts will invariably benefit Tanzanians, and should not unduly favour the investors who are out and out to exploit the country's resources. In that regard, he urged the government “to stick to the rules and regulations that guide the nation's policies as a priority set up!” He also called upon the Government to seriously look into the very basic issues of inadequate electricity supplies, transport and communications infrastructure, all of which are essential to economic performance.

A foreign company invests Tsh. 75 billion in tobacco exports in Tanzania

A foreign company by the name Alliance One Tobacco Tanzania Ltd (AOTTL) dealing with the tobacco exports in the country since 2005, has invested a total of US$ 50 million (about Tsh. 75 billions) in tobacco exports in the country, thus becoming the leading tobacco exporter. It has been learnt. The company's Managing Director Mark Marson said last week in Dar es Salaam during his meeting with editors when briefing his company's successes and challenges for last year's trading period. He said the success of his company has been attained as a result of such a heavy investment which the company has incurred since it started operation in the country in 2005. Initially the company had invested about US$ 40 million which was used for processing plant, making its factory one of the best in Africa. In 2011, the company added new investments of US$10 million bringing the total value of investment by AOTTL in Tanzania to date to approximately US$ 50million. However, he could not disclose the profit his company has earned since then. “We acknowledge and appreciate that the investment environment is conducive, and that the TIC (Tanzanian Investment Center) played an important role in helping us with our investment”, he said adding that, AOTTL has continued to invest each year directly in infrastructure at the factory, and in the field. On Corporate Social Responsibility Program (CSRP), which includes community and farmer based activities the company has been engaged with by providing assistances to tobacco farmers in various tobacco growing regions in the country. The company has also been engaging in training program on the oxen project. According to him, AOTTL operates Oxen training centers in tobacco growing regions of Tanzania namely Tabora, Urambo, Kahama and Mpanda. The aim of the project is to improve tobacco cultivation by providing farmers with trained pair of oxen and implements e.g. plough, ox carts, ridges etc. Farmers pay for the oxen through loans sourced from commercial Banks. By the end of 2011 2,930 pairs had been trained and more than 2,290 families were supplied with trained oxen. One pair of oxen together with implements costs Tshs 1.9 million. AOTTL in collaboration with other stakeholders operate a reforestation program through the Association of Tanzania Tobacco Traders (ATTT) whereby farmers are supplied with tree seedlings for planting at a subsidized rate. For the last 8 years from 2004 to 2012 a total of 69,209,000 tree seedlings were supplied to tobacco farmers. The industry policy is for the farmer to 2012 a total of 69,209,000 tree seedlings were supplied to tobacco farmers. The industry policy is for the farmer to plant 50 tree seedlings. The aim of the project is to improve tobacco cultivation by providing farmers with trained pair of oxen and implements e.g. plough, ox carts, ridgers etc. The total number of farmers who sell tobacco to Alliance One is estimated at about 30,000. AOTTL employs 300 permanent employees and about 2,500 seasonal during peak season. Tobacco growing in Tanzania is mainly done by about 100,000 small holder farmers who grow an average of a hector per family. AOTTL is in the final stages of completing construction of a water dam which will be used to store water for use during the dry season when the major water source of Ngerengere River is almost dry. The dam has an area of 13,000 square meters and a storage capacity of 35 million liters which is enough to run 4 months of processing. Alliance One Tobacco Tanzania Ltd (AOTTL) is a subsidiary company of Alliance One International (AOI) of the USA, with its headquarters in North Carolina. It is one of the three tobacco buying companies in Tanzania. AOTTL has its headquarters in Morogoro municipality at Kingolwira. AOTTL is involved with Tobacco buying, processing, and selling to local and international cigarette manufacturers. It buys over 45 million Kgs of Tobacco from more than 160 contracted Farmers Cooperative Primary Societies.

FOR ECONOMIC GROWTH, AFRICA TOLD...Give priority to health sector - Prof. Benno Ndulu

THE Governor of the central Bank of Tanzania (BoT), Professor Benno Ndulu, has urged African governments to consider the heath sector as a priority area for their citizens, saying that good health is a means to raising economic growth. The good professor threw this challenge at economic and financial stakeholders from 20 sub-Sahara African countries who were gathered in Dar es Salaam early this week for the 14th Seminar on African Economic Research Consortium (AERC). The event, which was attended by about 80 participants including central bank governors and finance ministers of the African countries in the region, deliberated on various economic issues affecting their countries, and ways on how to attain the Millennium Development Goals (MDGs) for their respective countries by the 2015 deadline! Ndulu said “good heath has a direct impact on raising productivity through increased productive performance of individuals engaged in the production of goods and services.” Not only that, he went on, adding that “good health is, in fact, considered an entitlement that every citizen in a country deserves for their well-being.” Basing his views on the proclamation of the need to fulfill the United-Nations-initiated MDGs, and the commitment of each country towards attainments of those goals, Ndulu said “the burden of disease resulting from poor health is a major constraint to rapid growth, particularly for African countries where the tropical climate is a fertile host to a wide range of diseases.” To illustrate, 'Roll Bank Malaria' statistics for the malaria disease and its prevalence in Africa estimate that there are more than one million deaths which result from 300 million acute cases of malaria globally each year. About 90 per cent of the deaths occur in Africa alone, as a result of the combination of preponderance of infections and low ability to cope with them. It is also estimated that malaria alone costs Africa about US$12 billion every year in lost productivity (GDP) as a result of malarial infections. The (GDP) growth penalty from malaria is estimated at 1.3 per cent annually in some Africa countries! “The burden of this is not just in terms of lost growth,” Professor Ndulu said, adding that direct costs to households for heath care ― and to government ― are heavy when measured in relation to income levels in the African region. The costs range between 2.5 and seven per cent of household incomes on average! Based on research studies,
invariably health-related private expenditures take up a higher proportion of household incomes in African countries than in other regions of the world. Higher poverty in the region is a major reason for this. Despite all this, Africa still hosts more than one-third of the world’s poor. The indirect costs are also significant ― particularly the number of hours lost through ill-health. Health budgets take a significant portion of total government revenue, in most cases coming to second only to education!Giving examples from Tanzania, Prof. Ndulu said “there is evidence to show that the poor have increased their access to publicly-provided social services, including health and education via the removal or reduction of fees for basic services.” Ndulu, who was once an AERC executive director, paints a clear picture of how the efforts of the government of Tanzania to reduce other poverty dimensions ― like health and education services delivery between 2000 and 2010 fiscal year ― are yet to significantly tame income poverty at the individual and macro-levels in the country! He says government expenditure on education as a percentage of total budget rose from 6.8 per cent in the fiscal year 1995/96 to 16.3 per cent in 2011/2012, while that of health rose from 3.7 per cent to 8.8 per cent! During this period, education, water and health were treated as priority sectors by the Tanzania government. In that regard, the rapidly growing domestic revenue, as well as foreign aid resources, were more than proportionately geared towards the delivery of these services. The growth experience in Tanzanian during the last decade has shown that high rates of economic growth can be achieved without making fast and deep inroads into income poverty reduction. Over the last decade, annual growth of the economy has averaged an impressive seven per cent. However, the rate of reduction in income poverty levels has remained unacceptably low. For example, income poverty measured by the Headcount Index declined only marginally ― from 35.7 in 2001 to 33.6 in 2007 ― even though the GDP growth rate averaged 7.1 per cent over the period!

TPSF trains 8,000 entrepreneurs since 1998

The Tanzania Private Sector Foundation (TPSF) through its Business Development Gateway (BDG) Program has trained about 8,000 entrepreneurs in the country since the program started four years ago. TPSF Program Manager Sosthenes Sambua said last week in Dar es Salaam that the major concept under which the program is undertaken aims at capacity building, awareness on entrepreneurship skills and knowledge-based to enable entrepreneurs to develop small and medium enterprises (SMEs). He said that the BDG program trains potential entrepreneurs to take uo leadership roles and manage self-created business enterprises. The program also trains entrepreneurs to be more creative and face various challenges arising from competition. To achieve its goals, TPSF undertakes the training of business club leaders and their members in general, to widen up knowledge to appreciate various business tactics tasking managers on a daily basis. Beneficiaries of such training have become more productive and quality observant for products suitable for local, regional and wider demand. TPSF Acting Executive Director Godfrey Simbeye threw a challenge to the government for delaying appropriate decisions, saying that bureaucracy hinders small scale business development. He appealed to responsible authorities to remove such barriers so as to open up more business opportunities. He however, challenged entrepreneurs in the country to be innovative so as to be able to thrive in the local market and outside. He made the remarks to 54 chairpersons and secretaries of the BDG clubs from various regions gathered for a two day seminar organized by TPSF on entrepreneurship held last week in Dar es Salaam. Most entrepreneurs in the country fail to break through in business for lack of new ideas and innovation. The training together aimed at improving entrepreneurship skills and business management, communication as well as innovation and competitiveness. About Tsh. 15 billion was spent by TPSF to train over 8,000 entrepreneurs since its establishment in 2008, the acting CEO noted, elaborating that the BDG program is a government initiative expiring this year, and focuses to strengthen entrepreneurial culture by creating critical mass of capable entrepreneurs. Another TPSF training program is the Matching Grants Program (MGP) which ran from 2008 to 2011 and consisted of two matching grant schemes, the Tanzania Business Development Scheme (TBDS) and the Technical Innovation Applied Research Scheme (TIAS), both managed under a single management contract housed in TPSF, he elaborated. TPSF was aimed at improving the competitiveness of private firms in export markets and domestic markets as well, providing standard 50 percent cost-sharing grants to private firms procuring outside services and travel, within a properly-formulated business development plan, aimed at improving competitiveness and thus boosting sales, he further noted. The Tanzania Private Sector Foundation (TPSF) was established on 4th November 1998 as a result of multi-folded efforts by various stakeholders in the private sector. It was established as a company limited by guarantee to promote private sector-led social and economic development.

Highlights of marking Water Week, and ongoing projects

THE issue of water has become a major concern in many regions, with reports showing that a large portion of the country’s rural population has no access to clean and safe water. Statistics made available by the Ministry of Water and Irrigation indicate that 57 percent of the rural dwellers suffer for lack of reliable water supply. Due to this situation, most rural dwellers depends on hand drilled constructed water well sources which have shallow water which is unfit for use. Statistics further indicate that, there has been an acute shortage of water in urban areas due to leakage and dysfunctional underground water infrastructure, aggravated by increased demand, installation of haphazard pumps at households or hotels, etc. In order to effectively handle an escalating situation, the government decided to change the way water supply is administered, hiving it out of municipal authorities to become executive agencies, conducted under the Civil Service Reform Program. To facilitate its programs, the government spends 0.94 percent of the Gross Domestic Product (GDP) or Tsh. 468 billion a year on water and sanitation services. The latest report of Water Aid states that the water sector development program has been through a turbulent year in 2011. Water Aid, an international non-governmental organization (NGO) recently launched a water project worth Tsh. 37.4 billion to ensure access to water for five million people during the next five years . Girish Menon, the head of Water Aid international program, said when launching the five year strategic plan that at least four million people will indirectly benefit, while another one million people will directly benefit from the project on improving sanitation and safe water supply. Users were expected to take initiatives in embarking on relevant technologies for improving safe water supply and sanitation services, he said, noting that the project is in line with the national strategy for growth and poverty reduction, MKUKUTA. Under the MKUKUTA drive, the government has set targets in accessing water in terms of percentage of population at 65 percent for rural areas, 57 percent for small towns, 95 percent for major urban areas and 75 percent for Dar es Salaam city specifically, while the sanitation target is 53 percent for urban areas and 35 per cent for rural people by 2015. Water is critical for sustainable development including environmental integrity and alleviation for poverty and hunger. Improving water supply and its sources for human well-being is recognized as among the key aspects of health and welfare generally. Having seen the importance of water, Tanzania government through the Ministry of Water and Irrigation saw the need to celebrate a national water-week with other nations worldwide in mid March. This year’s annual event was celebrated at the national level in Iringa region under the theme “Water for Food Security”. The theme highlights the significance of water on food security and its quality that reflects its cooperation with rural farmers who produces consumable foods and their importance of integrated approach to water resources. A colorful week-long event inaugurated by the Deputy Minister for Water and Irrigation, Gerson Lwenge allowed stakeholders within the sector inside and outside Tanzania to share experiences on development and management of water and sanitation through exhibitions. He admitted that the ministry is faced with lots of challenges and the biggest is where most people lack access to clean and safe water.
A woman draws stagnant water for domestic use. 57 percent of the Rural population in Tanzania have no access to clean and safe water. Describing the importance of this year’s theme, he said that food security is attained wherever there is availability of plenty of water in various areas from rain water, boreholes, rivers and streams. He says that dependence on rainfall for farming makes many peasants get losses in their farming yields, or if there is a long dry spell, crops dry up, resulting into poor harvests. ‘Maji Week’ as it is known is mainly used for dissemination of the water policy strategy and water sector development programs. All regions marked the week as appropriate in the local context, to activities such as promoting of public awareness on water issues through publications and dissemination of documentaries. This annual event permits stakeholders of the water industry to highlight various strategies of getting safe drinking water and promote rainwater harvesting technology cheaply enough. The main objective of the event is to create awareness and sensitize the public on water sector plans and reforms, the importance of their participation in environmental sanitation and water supply programs, evaluating achievements, identifying problems and drawing up strategies for implementation. Local communities have complex priorities for the use of water for economic activities and for household needs. Men and women often have different priorities and responsibilities, while cultural conditions affect indigenous practices and societal values in managing water sustainably. Statistics shows that Tanzania has sufficient water resources to meet most of its present needs, including surface and underground sources. About 7 percent of the land surface is covered by three large fresh water lakes on the borders, apart from other inland lakes. The three lakes are Lake Victoria, the second largest in the world, Lake Tanganyika, the second deepest in the world and Lake Nyasa. Inland lakes are Rukwa, Eyasi, Natron and Manyara, with considerable water resources existing in these lakes. There are also big rivers flowing to the lakes. Underground water is also another important source of water for both urban and rural settlement areas. There is a great variation of water availability between parts of the country. The variation is explained by differences in topography, rainfall patterns and climate. About one third of the country receives less than 800mm of rainfall per annum and they are considered arid or semi arid. The country experiences a long dry season normally extending from June to October where river levels slump and water reserves are tested. Surface water resources in the country consists of lakes, rivers, springs man-made reservoirs and natural ponds. About 50 percent of the surface run water is derived from the main rivers flowing directly to the Indian Ocean and these are Pangani, Wami, Mkondoa, Ruvu, Rufiji, Ruaha, Kilombero, Mbarangandu, Matandu, Mbwemkuru, Likuledi and Ruvuma rivers. The remaining 50 percent is divided into surface water drainage into the main internal drainage basins which have no outlet to the sea. Tanzania has 5,439,000 ha of lakes and swamps which represent 5.8 percent of the totals land surface, but this number excludes seasonally inundated flood plains. Ground water is major source of water for many areas with the most viable found in the central and northern parts of the country, encompassing the drier regions of Dodoma, Singida, Shinyanga, Tabora, Mwanza, Mara, Arusha, Coast and southern parts of Kilimanjaro. The Drilling and Dam Construction Agency (DDCA) is an active player towards improving water supply services in the country. Its role as a government agency is to develop sustainable and safe water sources through efficient means and at cost effective price. DDCA’s Chief Executive Officer, Jonathan Ngaiwa says that, this objective is in line with the national objective of alleviating poverty and improving the health of people through provision of clean, safe and adequate water supply to rural and urban population. DDCA’s vision is to be a leading and efficient organization in the business of water well drilling and construction of water storage dams for sustainable water sources and ensuring that clients get value for money from services provided. Over 4,000 deep boreholes have been drilled by the agency since its launch in 1999. This achievement signifies that DDCA serves large numbers of people as well as livestock, industrial works and construction.

High Court saves NICOL from extinction

THE High Court of Tanzania meeting in Dar es Salaam has ordered resumption of trading activities at Dar es Salaam Stock Exchange (DSE) by the National Investments Company Limited (NICoL) with immediate effect, Business Times has learned. Trading at the local bourse by NICOL was suspended last year, when the DSE Governing Council de-listed the private sector investment entity from the bourse on July 6, 2011 over the company’s failure to submit its 2009 and 2010 financial statements as the market rules and regulations stipulate. NICOL became the first company in the 12-year history of DSE to be de-listed. The Governing Council initially suspended the investment firm pending the submission of the documents before NICOL automatically de-listed itself from the bourse for non-compliance. During the suspension, the Council demanded the company's financial reports for the two consecutive years, as well as details of NICOL’s intention to sell 22 million shares as part of its stake in the National Micro-finance Bank (NMB). The bank is also listed with DSE. NICOL have always blamed the national capital markets regulator, the Capital Markets & Securities Authority (CMSA), for its failure to comply with DSE requirements. This is on account of the fact that CMSA had suspended the company's Board of Directors, and its chief executive officer (CEO), since March 2011! In what became a pattern of CMSA actions against NICOL, after the Authority had removed the NICOL Board and CEO, it also froze all the company's bank accounts. This left NICOL with nobody to manage it, and no arrangements could be made to replace the removed officials There was no way in which NICOL office rent, salaries for the staff, etc, could be paid. NICOL was also suspended from trading for a month in August 2009 after the regulators noticed abnormalities in its financial statement, with analysts doubting its credibility amid feelings that it was doctored! In any case, the company had managed to produce only a single statement since its listing at the bourse in 2008! If not sorted out soon enough, these developments would almost certainly have led to the death of NICOL. It was as a result of this welter of confusion that the NICOL management went to Court. It filed a lawsuit in the High Court on March 21, 2011 seeking legal protection against CMSA's actions. NICOL argued that none of CMSA's accusations and charges held water, including removal of the company's Board and its CEO from its operations.
NICOL's Managing Director Mr. Felix Mosha Claims by CMSA that it wanted to conduct an investigation into NICOL were without merit, the company stated, arguing that the Authority had already conducted such an investigation a month earlier. More importantly, CMSA had no legal right to access any information in NICOL offices and files! “CMSA did not have to remove the Board — and much less the CEO whom it was expected to rely upon for the information they would have needed for their investigation,” the company maintained. During the hearing, CMSA argued in court that NICOL had no right to file a suit in the High Court. However, the Court ruled that the company did in fact have the right to file a suit against CMSA, and the High Court has the jurisdiction to hear the case. Following that ruling, CMSA further argues that NICOL had no issues worthy of a court suit against the Authority. However, on July 25, 2011, the Court dismissed that claim, ruling that in fact the company did have substantial issues against CMSA. In the event, the High Court determined that NICOL had raised serious legal issues worth looking into by the Court, and that the issues raised were likely to contravene the law and affect NICOL's rights. That High Court ruling opened the way for the hearing of NICOL's case against CMSA. On Tuesday this week, the High Court rendered what could be a landmark decision, squashing the directives which CMSA had communicated to NICOL. In effect, the Court lifted the order that removed the NICOL Board and CEO, and unfroze the company's bank accounts. For good measure, the Court directed CMSA to always conduct its activities in accordance with the law! The NICOL Board chairman, Felix Mosha, told a press conference in Dar es Salaam yesterday that the High Court ruling is a triumph not only for the firm's Board and Management but, more importantly, it was victory for its long-suffering shareholders! Noting that the shareholders had been in the dark regarding matters pertaining to their company because of the legal processes which were ongoing in the courts, Mosha regretted these unfortunate developments that were unnecessary in the first place. However, the stakeholders can be assured that “NICOL remains a strong and viable company for all its 46,631 stakeholders, some of whom are entities with thousands of shareholders of their own! He stressed that the its stakeholders' investments were not only safe and sound. Indeed the company had grown from the original investment of Tsh11.7 billion to over Tsh30 billion, with over 80 per cent of that in NICOL shares, which are in the category of liquid assets. Describing NICOL as “a company of the poor in this country,” Mosha said that, “on its own, it has no capacity to withstand attacks from a powerful state institution. It's only recourse for protection had to be the country's judicial system. “Therefore, NICOL wishes to commend the High Court for its fair and impartial ruling. In these times when the courts come under increasing criticism and scrutiny, it is important that Tanzanians gives thanks and praise when both are due. “The court's ruling has not been a victory for the NICOL chairman or its Board... Nor even for NICOL itself, but for all Tanzanians who are committed to greater involvement of Tanzanians in their national economy. NICOL so far remains the only major entity that is fully owned by Tanzanians from all walks of life; people who have pooled their investments together,” Chairman Mosha eulogized .

Tanzanian contractors told to boycott substandard building materials

TANZANIA has every reason to proud itself in maintaining a firm engineering works as since independence 50 years ago, the country has never had experienced serious house collapse compared to what has occurred in other East African states. In view of this, an appeal has been made to contractors and engineers to continue their stance by rejecting the suspected locally and imported manufactured sub standard building materials which are sold out by unscrupulous traders in the country. According to building and engineering experts, substandard building materials are the major cause of house collapse if used for construction. Their lifespan is shorter and hence have lower sustainability. The registrar of the National Engineers Registration Board (ERB) Engineer Steven Mlote gave the call early this week in Dar es Salaam that, “the continued boycott of the counterfeit building materials would effectively maintain our houses for a longer lifespan”. However, he has urged contractors of high storey buildings in the country to develop the habit of taking their building materials for testing in order to establish their durability and sustainability and quality as well. Engineer Mlote was contributing his comments during a live TV talk show in a program entitled “House is Life” which is aired at 21:00 hrs on every Monday by Star TV. The program is being conducted on behalf of the National Housing Corporation by a famous TV presenter Ephraim Kibonde. During the talk show, Engineer Mlote noted that, Tanzania has not had a bad record of house collapse since independence time, and that three serious incidences have ever happened in the country. “This is a significant outlook of the building sector for the history of house building in this country”. He said.
ERB Registrar Engineer Steven Mlote, addressing fellow engineers during one of the past ERB meetings with other stakeholders in Dar es Salaam However, he mentioned three minor disasters of the house collapse which have happened in the country which occurred in recent years within the last five years, with the latest one which happened at Kisutu in the heart of the Dar es Salaam city centre in 2008. Other incidences he mentioned happened in 1986 along Msimbazi near Kariakoo market, this was the worst ever to be recorded that claimed the lives of seven people. He also mentioned another disaster of house collapse which occurred in 2006 at Temeke and lost the lives of two people on the spot. According to Engineer Mlotte, the collapse of a house mostly occurs due to negligence of contractors and owners of buildings who prefers to use cheap building materials which are of the lowest quality an aspect that cannot sustain the foundation from the basement. On fire occurrences, such disasters occurs as most building owners ignores to hire electrical professionals to do their work more professionally for fear of high expenses incurred for wiring, and instead resort to cheap technicians the so-called 'Vishoka'. He has therefore urged the people in the country to get away with the notion of acquiring such cheap labour which ultimately costs them a lot. In view of this, he says that registered electrical engineers are the best people to hire for the work of wiring in order to avoid the impending any fire disasters.

A German company offers a counterfeit drug detector in Tanzania

MEDICINE Users in the country are assured of safe and quality medicines of the locally manufactured as well as imported products following the donation of five mobile mini-laboratory medical equipment by a German company to be used to detect fake drugs circulated in the local market. The equipments were handed over in Dar es Salaam city recently to the Ministry of Health and Social Welfare. The equipments would be used by the ministry to support government led initiative aimed at halting circulation of counterfeit drugs, which has increasingly becoming a big threat to millions of Tanzanian lives. A German based Pharmaceutical, Chemical and life science company known as Global Pharma Health Fund donated the mini labs to be used by the Ministry of Health in collaboration with its agency for detecting inferior and counterfeit medicines which are said to have dominated Tanzania market. Counterfeit medicines are a serious threat to health care not only in Tanzania but worldwidwe, says Dr. Karl Ludwig Kley, the Chairman of the Merk Executive Board who officially presented the donation to the health and Social Welfare Minister Dr. Hadji Mponda. He has expressed optimism that his compact labaratory equipments would help improve the structures of drug monitoring and ensuring scarce resources are not wasted on worthless and even hazardous medicines. Dr. Mponda has however, assured Tanzanians that the equipments will help to intensify the country's fight against counterfeit hospital medicines as the compacts have the ability to detect products quickly and cost efficiently and reliably.
Health Minister Dr. Hadji Mponda receiving equipments to be used top detect counterfeit medicines in the country from a German company. He says, his ministry through its agency Tanzania Food and Drug Authority (TFDA) instituted a quality assurance program in the country in 2002 in order to check counterfeit drugs which has so far shown a tremendous progress indeed. The program which had been funded by World Health Organization aimed to screen the quality of medicines entering Tanzania market from foreign and domestic manufacturers and to a greater extent it has denied the market entry to substandard and counterfeit medical products. Among other objectives the program intends to develop is an appropriate and comprehensive national quality assurance system that would be able of easing to a greater extent that both imported and locally manufactured medicines meet. Fake and counterfeit drugs is a global problem and its negative effects are felt by many countries, and in view of this, it therefore requires massive support from all stakeholders and key players in the country, says TFDA's Director of Laboratory Services Ms. Charys Ugulum. According to her, TFDA has put down effective and strategic measures in order to eradicate the escalating phenomenon, and therefore fight against unscrupulous traders in the country who are fond of doing such malpractices. According to the International Police Organization (Interpol) estimates that up to 30 percent of all medicines in Africa are either counterfeit or of inferior quality.

NEED TO HAVE RENT RESTRICTION ACT IN NEW CONSTITUTION

Stakeholders say it will save 14 million Tanzanians who are denied decent and affordable urban housing THE Dar es Salaam based housing stakeholders commonly known as 'Merchant Chamber' has appealed to the government to look at the possibility of injecting an Act on the newly adopted national draft constitution which would help house tenants to achieve their legal rights from their landlords. They say that, the law amendments of rent restriction in the newly adopted constitution of the Republic of Tanzania would save about 14 million Tanzanians who are denied decent and affordable urban housing settlements. According to housing stakeholders, there has been little control of the rental housing business especially in urban areas where about 60 percent of urban residents reside in rental houses while 40 percent of their incomes is spent on accommodation. They have therefore asked the government to review the Act in its newly adopted national draft constitution so as to establish a specific law of controlling this business because its absence has made landlords wield so much power over their tenants. The law should among other things forbid landlords for claiming for yearly rental fees yet employees are paid salaries monthly, a situation that has been placing tenants in arrears while others engage in corrupt acts to afford the housing expenses.
They resist the currently used rent restriction Act saying it's outdated ever since it was enacted way back in 1950s during colonialism. But the new Act would mean to safeguard the welfare of tenants. Among other things, the law will put a barrier for landlords from demanding advance rent payments. However, in 2005 this law was repealed for reasons best known to those who engineered its deletion. The detrimental effects this decision caused, is that it condemned millions of tenants to the uncertain life they continue to endure until today, as landlords are free to hike their house rents with impunity. According to Marchant Chamber, under the new constitution, the experience teach that, “there is the need for the right to decent and affordable housing to be included among other rights which are presently set out in Chapter 1, part 3 of the constitution of the United Republic of Tanzania. Basing on their basic demand as far as the issue is concerned, the Chamber claims that, “by favoring the National Housing Corporation (NHC), the government has given a green light to all other landlords to victimize millions of tenants and pose a great threat to national peace and stability”.