Magufuli becomes furious against telecom firms over listing in DSE

In unprecedented move, President John Magufuli has turned against telecom firms in the country over what is described reluctance for them to list in the Dar es Salaam Stock Exchange (DSE). In views of this, he yesterday ordered licence revocation for mobile phone companies, which are reluctant to list on the Dar es Salaam Stock Exchange (DSE). President Magufuli directed the Tanzania Communications Regulatory Authority (TCRA) to act tough against the stubborn companies, emphasising that all mobile phone firms should float shares on the bourse. He issued the directive at the launch of the Electronic Revenue Collection System (e-RCS), which will be operated by Tanzania Revenue Authority (TRA) and Zanzibar Revenue Board (ZRB). The system is designed to track and directly collect Value Added Tax (VAT) and Excise duty on all electronic transactions by communication companies and financial institutions, with the views of enhancing efficiency in the collection of government revenues. “It is not enough to just subject the mobile phone companies to fines of 300m/- and allow them to continue minting billions of money in profits... they will not list because they are capable of paying the fines,” charged Dr Magufuli. The Electronic and Postal Communications Act of 2010 (EPOCA) requires all telecommunication companies in Tanzania to list on DSE. But, so far, only Vodacom Tanzania has adhered to the legislation and embarked on the process to float shares on the bourse through an initial public offering (IPO). “Listing at the bourse will enhance transparency and enable the government to collect its fair share of revenues,” said the Head of State. He asked the telecommunication companies and financial institutions to join the e-RCS to allow the government to track and monitor their electronic transactions like mobile money transfers, data, voice and all payments made, electronically. “It is an open and transparent system with no human errors, companies should join voluntarily or otherwise we will amend the law to compel mobile companies and financial institutions to join the scheme,” he declared. Adding; “In Ethiopia, they have only one mobile phone operator and it is performing well, last year it recorded 1.5 billion US dollars (over 3tri/-) profit out of between 30 and 35 million subscribers.” Dr Magufuli was of a view that since Tanzania has more subscribers, mobile phone companies ought to contribute more to the economy from the profits they generate in their lucrative business. The President was vividly perturbed by the fact that the Tanzania Telecommunications Company Limited (TTCL) has not paid out dividends to the government since its shares were sold to the foreign investors in the 1990s. “Before privatization, the company used to pay 1bn/- dividends in each year and that was a lot of money at that time... why is it not paying the same after privatization,” he wondered. Earlier, TRA Commissioner General Charles Kichere informed the President that only three companies -- Halotel, Smart and state-owned TTCL --have so far joined e-RCS, the system he described as an efficient tool for tracking and collecting revenues through electronic payments without human intervention. The TRA boss explained further that the e-RCS was a follow-up to cargo tracking system designed in 2012, Revenue Gateway System of 2013 and the Tanzania Customs System of 2014. “It should as well be understood that the system does not impose additional taxes to the companies and their customers,” he explained. At the event, Zanzibar President Dr Ali Mohammed Shein hailed the state-of-theart system, which he said will enable the government to boost its revenues. “Everyone must pay tax and the one collecting the revenue should be very organised since some taxpayers are fond of cheating,” he stated.

Smelting plant for minerals to be constructed in Tanzania

CONSTRUCTION of mineral concentrate smelter is scheduled to start soon to discourage export of raw minerals, Prime Minister Kassim Majaliwa said here yesterday. He told the National Assembly that there are investors who have expressed interest in construction of the smelters in the country, affirming that the government is determined to either invite them or construct the facility on its own. “Within a short time, we will start construction of mineral concentrate smelters or invite investors,” he said during the instant questions to the premier session, as he answered a question from Emmanuel Mwakasaka (Tabora Urban- CCM) who sought to know whether a recent ban on the export of mineral concentrates will not damage Tanzania’s relationship with other countries and international companies. The government banned the export of mineral concentrates and ores for metallic minerals like gold, copper, nickel and silver last March, with a view to promote value addition in the country in line with the Mineral Policy of 2009 and Mining Act of 2010. President John Magufuli halted the exports of Acacia Mining owned concentrates at the Dar es Salaam port, citing irregularities in the process and formed a committee to investigate the value of the resources. The eight-person team came up with an appalling report, revealing that the value of the minerals within the concentrates in containers was over 10 times the declared amount. Acacia Mining immediately disapproved the audit, describing it as inaccurate. The Premier said investors need not worry as the government was committed to protect their rights as it deals with the dispute with Acacia Mining over its mineral concentrates. He told the parliament that the government wanted to ascertain the value of the exported mineral concentrates following concerns that the value had been under declared. “I am asking investors not to worry. The government’s intention is to ascertain the value of the concentrates,” he said. The Premier said the latest development in the mining sector was part of government’s efforts to ensure that the nation gets its fair share of the natural resources. Tanzania is Africa’s fourth largest gold producer.

Master plan for gas ready by this year, says the government

NATURAL Gas Utilisation Master Plan (NGUMP) is ready for implementation effective this year, the government announced here yesterday.  The Japan International Cooperation Agency (JICA) funded 30-year master plan has been accomplished through collaborative efforts by various institutions and team of experts from Japan, Trinidad and Tobago. NGUMP is an integral part of the strategy to implement the National Energy Policy, 2015 on resource utilisation, infrastructure improvement and human capital development in the country. Industry, Trade and Investment Minister Charles Mwijage said that as the country inches closer to the gas economy, the document primarily focuses on promoting inter-sectoral coordination in the design and execution of natural gas development activities. Presenting the Ministry of Energy and Minerals’ budget estimates for the 2017/2018 fiscal year, Mr Mwijage told the august House that while the government envisages coordinated uses of gas, detailed technical and economic analyses were vital to enable the country select the best project that will address mutual interest of the nation and investors, for implementation. He noted that in its approach, the master plan takes into account the country’s reality and the energy sector, saying Tanzania still lacks adequate infrastructure and qualified labour to support gas development. “With this plan, the development of the natural gas industry will contribute significantly to the Gross Domestic Product (GDP) growth and stimulate balanced economic and social development,” said the minister. He informed the House that the document will help in identifying the current and future demand as well as supply of natural gas for local and foreign markets. It will also set financing strategy for gas utilisation projects. According to the minister, within the 30-year period, it is expected that 18.7trl Tcf of natural gas will be used in the domestic market, with the top priority being the use of natural gas for production of electricity. The country is also about to embark on the execution of the mega Liquefied Natural Gas plant project, the minister affirmed, saying about 13bn/- has been allocated in the next fiscal year to compensate residents who will surrender their land for the project. The 30 billion US dollar (over 60tri/-) project, planned to sit on Lindi region’s land, according to the minister, has entered the negotiation stage of the Host Government Agreement (HGA). The HGA is a legal agreement between the foreign investor and host government, governing the rights and obligations of each party regarding development, construction and operation of the foreign investor-run project. International oil and gas companies Statoil, BG Group, ExxonMobil and Ophir Energy will construct the plant in partnership with Tanzania Petroleum Development Corporation (TPDC). This year’s energy and minerals ministry budget has been pegged at 938bn/- down from last year’s 1.12tri/-. Minister Mwijage said that 94 per cent of the budget will be directed to implementation of development projects. He further noted that the government in this financial year has revoked 2,153 mining licences whose owners failed to honour their obligations, reminding all licensees to adhere to the conditions stipulated in their permits. The Parliamentary Committee on Energy and Minerals, Opposition Camp and a section of legislators who debated the budget estimates yesterday were perceptibly divided on the recent move by President John Magufuli on the exports of mineral concentrates. Dr Magufuli indefinitely banned the mineral sand export following an eight-person probe team report that uncovered massive thievery in the mining sector, denying the government billions of shillings in revenue. While Opposition Camp through its Minerals and Energy Shadow Minister John Mnyika criticized the government over the matter, the committee’s chairman Dotto Biteko described it as “a commendable move aimed at safeguarding the country’s resources which have been plundered for decades”. Mbinga Urban MP on CCM ticket Sixtus Mapunda praised the president for the bold move that will enable the country to benefit fully from its resources.

Tax revenue collection surpasses almost reach targeting point

THE Minister for Finance and Planning, Dr Phillip Mpango said in Parliament on Tuesday that tax revenue collection for the period ending March in the current financial year reached 95 per cent of the target after Tanzania Revenue Authority collected 10.626tri/- against the target of 11.227tri/-. Tabling budget estimates for the ministry for the 2017/2018 financial year, the Minister said collection of up to March in the current financial year was up by 15 per cent compared to collections of the corresponding period in the 2015/2016 financial year. The government had set a target of collecting 15.105tri/- as tax revenue for the 2016/2017 financial year which ends on 30th of June, he said. Dr Mpango said tax revenue collection in the current financial year picked up over the previous year and is estimated to reach 15.105tri/- equivalent to 21.7 per cent above the levels of the 2015/2016 financial year. From non-tax sources, the Minister said revenue collection from non-tax sources up to March this year reached 500.13bn/- against estimates of 412.23bn/- which is equivalent to 121.32 per cent of the estimates. He said the nontax sources included 352.69bn/- dividend to the government from the Bank of Tanzania (BoT), Inflight Catering Service Limited, National Housing Corporation, IPS, TANICA, TCC, TLLPPL, and TPC. The Minister said other non-tax sources was 136.48bn/- from public parastatals which sent 15 per cent of their gross profit margin to the Treasury. According to the minister, the parastatals which issued the 15 per cent of their gross profit are Business Registration and Licensing Agency (BRELA), Capital Market and Securities Authorities (CMSA), Dar es Salaam Water & Sewerage Authority (DAWASA) and Energy and Water Utility Regulatory Authority  EWURA). Others are Gaming Board, Ngorongoro Conservation Area Authority, Sugar Board, Social Security Regulatory Authority (SSRA), Surface and marine Transport Regulatory Authority (SUMATRA), Tanzania National Parks Authority (TANAPA), TANTRADE, Tanzania Building Agency (TBA), Tanzania Bureau of Standards (TBS), Tanzania Civil Aviation Authority (TCAA), Tanzania Communications Regulatory Authority (TCRA), Tanzania Food and Drugs Authority (TFDA). Others are Tanzania Insurance Regulatory Authority (TIRA), Tanzania Ports Authority (TPA), TPRI, UTT AMIS, NACTE, NECTA, Mzinga, Osha, Forest Authority, and Weighs and measures Agency. Dr Mpango said another non-tax sources also included 10.96bn/- as revenue from Telecommunication Traffic Monitoring System (TTMS).

Maasai communities living in Ngorongora Crater thanks Majaliwa

THE Maasai communities in Ngorongoro Crater have hailed the Prime Minister of the United Republic of Tanzania for resolving their long standing water woes in their region. Their congratulations comes at a time when the Premier Kassim Majaliwa issued directives that the Ngorongoro Conservation Area Authority (NCAA) is now pumping enough water into local Maasai villages to save the residents from taking their cattle down the crater for watering. The new cattle water trough constructed at the cost of 231 million/- in a project which took four months, was officially inaugurated over the weekend at Ndepes Village by the Arusha Regional Commissioner (RC), Mr Mrisho Gambo. “We had to lay pipes for more than 11 kilometres from the natural sources into this watering station here at Ndepes Village,” explained the Conservator, Dr Freddy Manongi, adding that the facility can serve at least 120 cattle at a time, with 60 cows dipping through the trough the left and 60 others drinking from the right. The large water trough will provide constant, regular and reliable water for all the livestock in the Ngorongoro Division as directed by the prime minister during the latter’s tour in the area late last December. 

Tanzania's Prime Minister Mr. Kassim Majaliwa in Parliament responding questions from law makers during an impromptu answers and questions session.

“The Maasai residents of Ngorongoro have complied with the government order restraining them from driving their cattle into the Crater under the pretext of searching for after the precious liquid became scarce in most other parts of the Conservation Area,” explained the Chairman of the Ngorongoro Pastoralists Council, Mr Edward Maura. Mr Maura who is also the Ward Representative for Nainokanoka area, lauded the NCAA for executing the premier’s directives but reminded the authorities that the Maasai cattle also needed supplementary salts and minerals that also caused the grazers to take their animals into the crater basin to feed. It is estimated that nearly 90,000 people, mostly Maasai pastoralists, currently live within the multiple land-use conservation area, keeping around 125,000 livestock between them, mainly cattle, sheep and goats –all of which in turn compete for scarce water and other resources with the teeming wildlife found within the popular tourist destination. In another development, the Ngorongoro Conservation Area Authority (NCAA) has also completed the construction of a new and modern cattle dip at the Mokilal Village whose facility is big enough to serve the three villages of Mokilal, Misigiyo and Oloirobi in the Oloirobi Ward. The Chairman of the Ngorongoro Pastoralist Council, Mr Edward Maura said the NPC would work closely with the government because it was sensitive to the native Maasai problems. “We are glad that the prime minister’s visit to Ngorongoro is bearing fruit but apart from water and cattle dip, there many other problems that need to be solved here,” he said, adding that the premier needs to make regular visits to the area.