NTBs a cause of inflation in the country, says a report

NON Tariff Barriers (NTBs) along upcountry roads has been described to be the major hindrance to trade, an aspect that contributes to some extent higher inflation rates on consumable goods in the country, the report has said.  According to the published report titled ‘Business Climate Index Survey’ (BCI) by the East African Business Council (EABC), Tanzania has numerous NTBs which are stationed all along the main roads than any other country within East Africa region. The report highlights together with other things, various impediments including bureaucracy. The report which was unveiled by the Deputy Permanent Secretary in the Ministry of East African Cooperation Uledi .A. Mussa last week in Dar es Salaam is quoted as saying that, “the presence of NTBs has contributed to a certain extent the high inflation rates in the country” The report further indicates that, transporters are inconvenienced by the presence of roadblocks for police checks and weighbridges following numerous tariffs which are imposed to transporters at various check points all along the way to their final destination. “This is an aspect which disturbs transport industry and the stakeholders in general”, the report concludes. The report notes that, main roads have many barriers which have been inconveniencing transporters and their goods to reach to their final destination points on time. This is an aspect which causes delays and hence rips high inflation rates on various consumable goods as businessmen tend to increase their products to compensate for the losses incurred. Speaking in an exclusive interview in Dar es Salaam last week, the PS has commended the government’s move for presenting a relative good budget for 2012/13 fiscal year giving the priority on railway infrastructure which according to him will put the country into an economic recovery path.

How risk is it for this man who is seated precariously on top of an electric pole and seem to be communicating with a mobile phone?

He said the strengthening of the Central Railway line is crucial as it provides easy transportation of industrial goods especially bulk cargo and other consumable products in the country, and in view of this he has urged business people to use it so as to avoid roadblocks along the main roads. “The railway system is a very good idea as it would help a lot, and if you talk of roads for transport, TANROADS would continue to be boastful for they are the dominator and are after money to preserve their roads” he remarked. In addition to that, the deputy permanent secretary has called on the transporters in the country to use other means of reliable transport such as railways in order to ferry their appropriate goods in order to avoid inconveniences and the numerous tariffs imposed on the roads. However, he has praised the government for its move to revive the operations of the central railway line which he said if put to work effectively the network will help reduce transportation woes currently facing the transport sector in the country. He said adding that, the deterioration of railway network system has caused difficulties to conduct business activities along the central corridor. The EABC is the apex body of business associations of the private sector and corporate entities from the five East African countries which was established in 1997 with a view to foster the interest of the private sector in the integration process of the East African community. The council enjoins four manufacturers’ associations, fiver chambers of commerce, three employer’s associations, two women associations, two banker’s associations and confederation of informal sector associations of East Africa. Given that the secretariat is based in Arusha, EABC’s structure includes National Focal Points (NFPs) who are all currently the national private sector apex bodies

EABC gears to remove unnecessary Non Tariff Barriers

THE East Africa Business Council (EABC) is in the effort to eliminate Non Tariff Barriers to trade and improve other business factors that would adversely create a conducive business environment in the region, a Trade Economist with the regional council has said. Speaking in an exclusive interview in Dar es Salaam, Adrian Njau said that, the move will help remove the existing bureaucracy and enable business transporters and other traders within the region to move with ease while in a foreign country. Njau who is an economist gave the confirmation after he had presented a Business Climate Index (BCI), a baseline business survey carried out within East Africa region that highlights together with other things various impediments and hardships faced by transporters on the course of their transporting goods across the region. According to the survey report, it shows that, the weighted mean average shows that customs procedures and administrative requirements are considered as the most severe among the Non Tariff Barrier clusters in Tanzania mainland. These include numerous police checks and weighbridges. The survey notes that, Tanzania mainland has the highest number of customs stations in the EAC region along the main central corridor where transport trucks have to stop for checks on various documentations which have to be inspected by the authorities concerned. Such documentations are drivers license, cargo documents, vehicle weight, drivers and passengers passport and the scrutiny of other travel documents which all these check ups the report concludes that are rather troublesome.The report has indicated some customs stations inclined within Tanzania borders are in this respect are Namanga, Dumila, Isaka, Kyaka, Mtukula, Banderi, Misugusugu, Kibanga and Rusumo.

The customs stations at Namanga is used when importing from exporting goods to the Republic of Kenya and can therefore be disregarded in regard to transit along the central corridor. During stops in all these stations, the report indicates that, trucks have to spend an average of at least one hour for various checks. The implication is that transiting along the central corridor involves a lot of time loss for businesses which needs to be addressed by using other means to achieve customs requirements. The problems experienced in customs-related regulations have often resulted to late deliveries for confirmed orders, extra costs of between less than $200 to over 1,000 and time loss of between one hour to more two days per consignment for most businesses has to be used. The report shows that, it takes a long process of sorting out non compliance problems with customs procedures for both exports and imports while goods are lying at the border procedures, they will spend more than two days at customs and port officers in completing required documentations related to exports and imports without cause. In order to minimize all these bureaucracy, the report concludes that, the five EAC member states have managed to identify and agree regionally the removal of the nature and extent of non tariff barriers like cumbersome customs procedures and business registration procedures among others. This is after realizing the magnitude of the problem, In addition, the report is quoted as saying that the five countries will provide a platform for the business community the imports necessary to lead to the elimination of non tariff barriers and concentrate effectively in improvements of other business climate factors.

Precision Air inaugurates Dar-Lusaka-Lumbumbashi route

AIR-FLIGHT Passengers destined for Lusaka in Zambia and Lumbumbashi in the Democratic Republic of Congo (DRC) from Julius Nyerere International Airport (JNIA) in Dar es Salaam will no longer have time to make long trip journey in order to arrive at their destination points. Such long trip journeys will now be stopped following the inauguration of the a direct connection air flight from Dar es Salaam to Lusaka and Dar Lumbumbashi in DRC respectively which was done yesterday by the Precision Air, Tanzania’s leading airline. Before the inauguration of this route, passengers coming and going out of Tanzania via JNIA from Zambia and DRC had to bear the brunt by digging dipper into their pockets to pay for extra connected flight charges in order to facilitate their journey by passing through Nairobi or Johannesburg in South Africa which they had to use between seven and eight hour. The Precision Air’s Managing Director and CEO, Alphonso Kioko said yesterday in Dar es Salaam that, the newly inaugurated routes is scheduled to open business opportunities for the two land locked countries to boost Tanzania’s economy. He said his company started to research on these routes two years ago when they had realized the existing problem facing the passengers from the two countries of the central Africa region who had been facing problem of direct flight from their mother countries to Tanzania. Before embarking on the task, they had contacted officials of the two countries for negotiations in order to combine the force into achieving their goals. The inaugural ceremony was attended by DRC ambassador and the Zambian High commissioner, Judith Kangoma Kapijimpanga thanked the airline for its innovative task it had shown for the aviation industry. She said noted the importance of the route as saying that it would increase the inter-Africa trade links between Tanzania and the landlocked central African countries. The inauguration of these routes will make the total number of four plus the two ones under which the airline operates. These routes are Johannesburg in South Africa and in Comoro Islands which were inaugurated early last year.

Empower cereal Board in order to reduce inflation rate, government urged

A member of the Parliamentary Accounts Committee on Parastatal Organization (PACPO) has requested the government to inject an investment capital of Sh. 10 billion in this year’s budget for 2012/13 fiscal year so as to enable the National Food Cereal Board to sustain trade competition it currently facing. Murtaza Mangungu who is also the deputy Chairman of the PACPO said recently in Dar es Salaam that, the Board will be in a position to regulate its business activities which ultimately would reduce the current inflation rate from the current 17 percent to a lesser. According to him, the PACPO committee hah proposed that the government should inject such a great sum of money to the Board after having seen that, the Board at this time has overtaken control of properties formerly owned by the defunct National Milling Corporation (NMC) in Iringa, Dodoma, Arusha and Mwanza .The committee looked at their books of accounts and found out that they had no problems and in view of this, the government should inject a substantial amount of money to the tune of Sh. 10 billion in order to empower them into doing the activities of the Board”, he said.  The Board which is under the Ministry of Agriculture, Food security and Cooperatives was formed in 2010 under the Cereals and Other Produce Act No. 19 of the year 2009, with the aim of developing cereal food crops and consumable products and engage in income generating activities related to crop production, canning, research and marketing in the country. PACPO members were on the view of the fact that the Board would be in a position to reduce the inflation rates which occurs as a result of the shortage of basic food crop a situation which has grown so alarming in the country. The food crops in high rate of scarcity in the country includes sugar, maize, rice, beans and other cereal crops. Economically about 48 percent of the high inflation rate which currently hits the nation is due to lack of effective Board to curb with trade competition with other private crop institutions buying cereal crops in the country, the members noted. The Board has fewer workers in the country another aspect that draws back their development activities, the members noted. They have also asked the government to open an office for them so as to let them work in a competitive spirit with other trade partners.

TBS clarifies the suspension of their foreign vehicles inspectors

FAILURE to remit the administration fees on time has been described to be the main cause of the recent suspension of the two vehicles inspectors who earlier worked on behalf of Tanzania Bureau of Standards (TBS) in Dubai and UK stations respectively. A reliable source from the TBS institution who spoke on strict condition of anonymity said in an exclusive interview in Dar es Salaam recently that, the two vehicle inspectors have failed to remit on time over $200,000 as administration fee. Sources maintained that, failure to remit the institution’s fees as shown by these foreign vehicle inspectors is an abuse of office and contrary to the work rules and regulations set by the bureau as per the contract signed with them. The source added that, the two have violated the rules and regulations No. 11/2/B of the standardization as stipulated by the law in 2009. Sources named to this paper the two inspectors as Jaffer Mohammed Ali Garage based in Dubai, UAE, and WTM Utility Services Ltd based in UK who were given licenses to inspect the quality of used vehicles once bought by customers prior to their transportation to Tanzania.

Japanese vehicles on sale in a yard.

According to the source, the embezzlement was discovered by the TBS technical inspectors who were sent to go and inspect their transaction and found such large sum of money was accumulated without being remitted, a thing which has ultimately resulted into the immediate cancellation of their licenses effective from June this year. This newspaper had contacted the sources for clarification in connection with the matter after it had issued an announcement in the media cautioning the general public of the cancellation of their licenses and informed them of the newly appointed representatives to replace them. TBS announcement said that, it had cancelled license No. 0656 granted to Jaffer Mohammed based in Dubai in connection with the inspection of used motor vehicles originating from Dubai to Tanzania. By this notice, all vehicle importers are being advised to inspect their vehicles with the M/s Jabal Kilimanjaro Auto Elect Mechanical Company based in Sharjar, UAE. The announcement further said that, TBS had cancelled license No. 0655 granted to WTM Utility Services Ltd based in Cold habour Lane Rainham Essex in UK in connection with the inspection of used motor vehicles originating from UK to Tanzania, and that all importers from UK are being advised to inspect their vehicles to a new representative Vehicle Operator Services Agency (VOSA). However, TBS has cautioned that all vehicles imported from both countries without valid inspection certificate from their newly appointed representatives shall not be allowed to enter into the Tanzania market. Sources revealed that, another mistake which was discovered by the TBS vehicle inspectors in their operations while in UK is that, their former representative was found to be operating in three main areas without TBS notice, an aspect that is contrary to the agreement signed. When asked to verify for any impact on the decision by the TBS, the source said that, “the impact of this is that, the companies whose licenses have been revoked would lose credibility and their status would fall internationally. For the sake of Hong Kong which was discovered by the Parliamentary Accounts Committee on Parastatal Organization (PACPO) which it has raised a concern on the issue of this place to have not yet having a vehicle inspector as earlier demanded by the sacked former TBS Director General Charles Ekelege, the source said that it would be discussed in parliament on Saturday. “The TBS is expected to give reports in parliament as in connection with the issue and the full report would be made available there after”, the source said.

The government promises support for the aviation industry

THE Government has reiterated its continued support for all airline investors in the country, promising to regulate fair competition, reducing bureaucracy as well as striving to provide the appropriate infrastructure for airlines business to thrive. The Deputy Minister for Transport Dr. Charles Tibeza said last week in Dar es Salaam that, the investor’s efforts in Tanzania’s domestic market economy is still in dire need of air transportation so as to make business people and tourists to visit far flung areas. “Due to the big size of our country and lack of other adequate and reliable transport services particularly road transport in rural areas, air transport holds as central role in country’s development efforts”, he said. However, he added that, the public reliance on the air transport will always remain eminent due to its ability to effect quick, fat and secure deliveries, especially of perishables or high value products which are abundant in the country. The deputy minister gave the concern during the inaugural ceremony of the air maiden flight schedule of the Precision Air to Lusaka-Lumbumbashi route in his speech read on his behalf as a guest of honour by the Permanent Secretary of the ministry John .T.J.Mngodo. According to him, in the case of social services, air transport assists swift movement of the sick from remote areas to places where medical facilities can quickly be availed. Air transport is also important for search and rescue services. In view of this, he reminds stakeholders of the aviation industry that, the government would continue to improve air transport infrastructure in the country notably the airports and the air navigation equipment and services to promote development of the airlines. He noted that, the construction of airports in the country such as Mpanda, Songwe and the on-going rehabilitation of Bukoba, Tabora, Mafia and Kigoma is a milestone for the development of the aviation industry in the country. Plans are underway to build a third passenger terminal building at Julius Nyerere International Airport after having completed major rehabilitation of the airport infrastructure. The government will also continue to review the existing bilateral air services agreements (BASAs) with differently countries to attract more airlines to offer services between those states and Tanzania as well as providing opportunity for Tanzanian airlines to offer services to those states.

Hard time for some Gongo La Mboto bomb victims

A house that belongs to Juma Mohammed of Markaz area at Ukonga ward which was destroyed by bomb on 16th February 2011

IT is hard time for Juma Mohammed a resident of Markaz area, Ukonga ward in Ilala district, Dar es Salaam region one of the severely and most affected victims of the Gongo La Mboto bomb blasts whose house was completely destroyed. He is currently living in hardship following the tent on which he temporarily sought for refuge is currently leaking at this time of the occasional rains. The dilapidated tent on which he is still living in, is not in good condition due to physical weathering.  Speaking in an interview early this week, he said that, he is not happy with the life especially during risky time of night hours as the tent has become old an aspect that he doesn’t have a night rest and his children gets difficulties while doing some school home works and studying at night. He has been living in a tent now for 16 months since the bomb blasts incident occurred at  Gongo la Mboto Military camp (511 KJ) on 16^th of February 2011. According to him, the tent is damaged and water permeates from its roofing thus causing inconveniences while he is asleep with his family. He blames the government for not quickening the pace of construction of their houses it earlier promised to build as compensation for the victims, and instead the delays caused by the government makes his family to live uncomfortably.  Three weeks ago, the government through the Dar es Salaam Regional Commissioner’s office announced the development step it had taken so far as a promise it had issued of building houses for the Gongo La Mboto bomb blasts victims. The RC for Dar es Salaam region, Sadik Mecky Sadik said in Dar es Salaam that, the government is expected to hand over the newly built houses for the victims in early June. He said when placing the foundation stone for a total of 35 new houses to be built at Msongola village in Ilala district, about 40 kilometers away from the city.  The houses under construction would be finished in June and currently the technicians are putting the final touches on them as a sign of nearing their completion. Some 71 families were left homeless following the blasts that occurred at the KJ 511 military camp on February 16 this year, the incident also claimed lives of about 22 people and many others were injured. A spot check by this paper at the construction scene last week can reveal that, the possibility of handing over the houses as earlier promised by the government to be done in this June, is very little as very few houses have been built to the level of a rental, while others are still in the foundation stage. The early assessment of the houses which were completely destroyed during the disaster which was done by the government evaluator on compensation on 24 houses were placed in the list of those houses to be reconstructed and later found to be fit for rehabilitation. According to Sadik, the government formed a task force team responsible for he assessment to the claims of 168 and was handed over to the Chief government evaluator so that they might be paid little compensation to their claims. Despite of the government’s efforts to help the bomb victims, an unnonymous victim who was cornered by this writer said that, he was not happy with the area where their houses are being constructed, saying that the located area is so far and not yet developed. Commenting on the RC’s development report about their houses, he refuted his saying noting that the time frame for handing over of their houses is likely to take longer as the government keeps the pace of construction at a snail’s pace than what they had expected before, adding that there is a lot to be done on final touches. However, he has also noted that, unless the government should allocate close to their new settlements important social facilities such as dispensaries or health centres, electricity and water supplies to the area, an aspect which he commended would be more pleasing. Responding their claims, the RC has assured them of other social services such as the road infrastructure which would be constructed as soon as possible, and this he said would be ready before they immigrate to their new settlements. In order to accomplish this need, the Ilala Municipal Council Director, Gabriel Fuime has assured the victims that his municipal council will place culverts on the road leading to the area, the work which he has promised would be executed between his council workers who will be collaborating by the RC’s office.