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.

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.