A Senior Lecturer at Economics
department of the University of Dar es Salaam (UDSM) has said that, the Mtwara
and Lindi regions would be the most beneficiaries of the natural gas once it’s exploration
is completed. Dr. Haji Semboja who is also an economic consultant made his observations on Wednesday last week in Dar es
Salaam when presenting a paper during the post budget discussion forum for
2013/14 financial year which was organized by an Economic and Social Research
Foundation (ESRF). The forum discussed the budget of the of two
ministries in relation of the developing sectors of Energy and agriculture in
the country. The ideas were focused on gas
exploration as well as the current development of Kilimo Kwanza initiatives. The forum drew
participants most of whom economists, agriculturalists and staticians, scholars
and accountants who gathered to share information which could bring improvement
later on for the incoming national budget if such sectors would be encountered
with unpredictable challenges. Elaborating
on the main challenges of the recent budget for the Ministry of Energy and
Minerals which was read in Parliament in May this year, Dr. Semboja said that,
there were some elements which the Minister did not quote as part of the benefits
to be attained by southerners out of this project. He outlined some of the
issues that, about 0.3 percent of the total sales on gas would be retained to
run various social and economic development activities for the people of Mtwara
and Lindi regions respectively. Unlike other regions in the country, the don
further noted in his paper presentation that,
the two regions would be entitled to social services such as
dispensaries, schools, electricity and water supplies as well as free
sponsorship in vocational training colleges and secondary school studies to be
awarded for the best performing candidates. Others he mentioned are
construction of various industries such as that one of the fertilizer and
cement products of the Dagote company. In Mtwara town the American company of
Symbion would be stationed to generate 400 Mw of the electricity. He also noted
that, there will also be constructed a transmission line of KV 220 from Mtwara
town to Songea which will be constructed by an American Schlumberger company
based in Houston USA which currently is constructing a large workshop which
will be making equipments used for extraction of the underground gas and oil
natural resources. He also noted that, in the budget, the participation of the
Tanzanian indigenous sector is not involved in the development of gas
extraction in the country as compared to what other countries are doing.
He mentioned
Norway who he said have empowered their local companies largely in the extraction
of their local resources. To illustrate his idea, he noted that the government
should think of ways to give indigenous capacity to run the local gas
exploration in order to pave the way for the future generation. He mentioned
such local organizations such as the Tanzania Petroleum Development Corporation
(TPDC), State Mining Corporation (STAMICO), National Development Corporation
(NDC) and other national institutions should have been involved so that the
government should get an easy access when it comes in the issue of tax
collection. The Executive Director of the
Agricultural Non State Actors Forum (ANSAF) Audax Rukonge outlined various
challenges that impedes small scale farming activities in the country, noting
that such challenges constrains the move to promote the development of “kilimo
Kwanza” initiative in the country. He
said that, there are some issues which are not taken into account when the
budget for the Ministry of agriculture was being prepared. The issue of the inflation
is growing at a higher rate level in the country and thus it’s a great burden
to local practitioners. It is high time the government should fight counterfeit
agricultural input such as the fertilizer sulphate. Some of these input are
overpriced but the government has not shown how it takes the situation and how is
going to overcome the impeding situation in the country. Lack of incentives for
the private sectors to grow such as infrastructure, roads, energy and the
creation of a conducive working environment is among the major challenges the
budget has to look at for the development of the sector. Non tariff barriers
are among the challenges that impede the development of agricultural sector as
small scale farmers would not get access of enjoying their commodities as they
would be obliged to taxation charge while transporting their commodities. He
however urged the government to concentrate more on local investments and not
only to foreigners as is the case now, saying that it should be concentrated
more on small scale farmers. He noted however that, farmers are still poor and
cannot produce more with the currently available incentives. Lack of credit
facilities is a major problem. Farmers would continue remaining poor all the
time if their market potentials is not given priority it deserve as most of
them entirely depends on the agricultural produce for sale in order to earn
their livelihood. A distraught agriculturalist has also expressed his concern
that the country has lost 40 percent in post harvest. Also an agricultural
statician from the Ministry of Agriculture Nganga Nkonya said that, investors
on agriculture should be empowered and given the necessary incentives for the
promotion of the sector. He says that, the government should merely stick on
revamping the agriculture policies and should not only look at the salaries for
the extension staff and administration for the ministry, but policies should be
strengthened and added that if this is done, the agricultural development would
remain intact.
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