Thursday, May 18, 2017
Friday, May 12, 2017
Four key critical research areas identified by TPSF
THE Tanzania Private Sector Foundation
(TPSF) has identified four key areas in which higher learning institutions can
conduct research and come up with results that can facilitate the
implementation of the country’s industrialization plan. These include
affordable and reliable power, human capital, business regulatory framework and
financing. Presenting his paper titled, “Industrialization and Middle income
Economy for Tanzania: Contribution of Research and Higher Learning
Institutions” in Dar es Salaam yesterday during an industrialisation symposium,
TPSF representative Salum Awadh said that the institutions were central to
promoting industrialization in the country. The symposium organized by the
University of Dar es Salaam is part of the activities of the Third Research
Week with a theme “Research Towards Industrialisation and Middle income Economy
for Tanzania.” He said that there were still gaps in the market in which higher
learning institutions could come up with solutions through research. “Most of
the gaps existing in the market have not been addressed … therefore the way
forward is for higher learning institutions to conduct research aimed at
providing solutions,” he argued. He said one of the constraints facing
industries in Tanzania is high price and unreliable power saying it will be
difficult for the country to industrialise if the investors will continue to
get unreliable power. Mr Awadh said according to the Energy and Water Utility
Regulatory Authority (EWURA), the average price of power in Tanzania stands at
$0.17 per kilowatt- hour while according to the African Development Bank data
the average price for power for the African continent is $0.14 per
kilowatt-hour and $0.07 in East Asia. On finance, he said, higher learning institutions
should develop debt management models that will de-risk lending and lower
credit costs and insurance models to manage risks. “The research should also
prepare people to meet new finance industry needs,” he added. He said Tanzania
has about 58 banks, predominantly commercial with strictly commercial terms
such as limited credit tenor, high interest rates, and stringent collateral
requirements. “This type of capital is irrelevant for industrialization capital
investment, which requires affordable and long-term capital, he said.” Mr Awadh
further said that industrialization requires a competitive business environment
to attract more capital investment, reduce the costs of doing business, and
promote the role of private sector as the engine of industrialization. “Despite
great reforms instituted by the government, the regularity environment is still
prohibitive in many ways, these include multiplicity of regulators, taxes,
levies, permits, and policy uncertainties,” Mr Awadh said. Researchers should
come up with solutions on how to improve regulations that have impact on
industrialization and regulatory models that can reduce compliance costs, he
said. He pointed out that the issue of skills was also important area which
needed to be addressed particularly on skills deficit and relevance. “Some
players end up importing skills, which in some cases could be expensive and add
costs on industrialization thus the need to provide skills that are badly
needed by the industries. We should put an end to import skill. University of
Dar es Salaam’s Innovation and Entrepreneurship Centre Prof Abraham Temu said
that his institutions are currently conducting various researches that aimed at
supporting the country’s industrialization drive. He said that UDSM will also
continue working on the gaps identified by the private sector such as
conducting research that can be applied directly on our industries as well as
producing enough experts with relevant skills. He further said that the
research by his institutions will also help to address the constraints faced by
small scale industries to help them graduate to large scale industries.
Majaliwa relieves Tanzanians on the impending sugar shortage
Following the increased sugar shortage
which has faced Tanzania, the country’s Prime Minister Mr. Kassim Majaliwa yesterday
assured Tanzanians that the government is determined to handle the scarcity. The
premier however warned unscrupulous traders whom he accused of unnecessarily
hiking sugar prices, especially during the fasting period, threatening stern
legal measures against them. He said the government is aware of the shortage,
which he blamed on the country’s low capacity to produce the essential
commodity. Mr Majaliwa told the National Assembly during an on spot question-answer
session here that at least 130 tons of sugar will be imported in this year to
curb the shortage. The country has an annual deficit of 100,000 tonnes of sugar
annually, with all the four sugar manufacturers producing only 320,000 tonnes
against the national demand of 420,000 tons. The sugar manufacturers in the
country are Moshi-based Tanganyika Planting Company, Kagera Sugar Limited in
Kagera, Mtibwa Sugar Ltd and Kilombero Sugar Company, both in Morogoro. He said
plans are underway to ensure that the sugar manufacturing companies in the
country are increasing their production, adding that the government has already
met all the manufacturers to strategize on increased production. The premier
explained that import permits were issued and so far 80,000 tonnes have been
ordered, with 35,000 tonnes already distributed across the country. He assured
Muslims that there would be plenty of sugar during the Ramadhan fasting, noting
that the government plans to import more sugar, especially in the Holy Month. He
said TPC plans to increase production to 120,000 tonnes this year from the
previous year’s 100,000. Plans are also underway to establish new sugar
factories in Mbigiri and Mkulazi areas in Morogoro region, said Premier
Majaliwa, hinting that the Mbigiri factory will be constructed under support
from the National Service while Mkulazi factory is a joint project between the
pension funds and investors.
Tanzania and South Africa for a joint business ties
Tanzania
government has underscored the need to strengthen the bilateral relations with
South Africa country for economic co-operation and partnership for prosperity
of the two countries. The Minister for Foreign Affairs and East African Co-operation,
Dr Augustine Mahiga said yesterday that
the government has enjoyed cordial and historic relations dating back to founding
fathers of Tanzania’s Mwalimu Julius Nyerere and Nelson Mandela of South
Africa. The relations should now be translated to improved economic ties. “Not
only that, there is need for the two partners to pass on the heritage of this
historic relations and liberation struggles to future generations in Tanzania
and South Africa,” he remarked. Dr Mahiga was speaking during a ministerial
session with South African Minister for Foreign Affairs and International
Relations, Ms MaiteNkoana-Mashabane, ahead of the inaugural session of
Bi-National Commission (BNC), The BNC is a unique forum established between two
countries to allow regular exchanges at cabinet level on a wide range of
issues, critical to them. Tanzania and South Africa agreed on the arrangement
during a visit by former Tanzania President Jakaya Kikwete to South Africa, in
Pretoria, way back in 2012, but it was yet to be put into action. President
Jacob Zuma of South Africa, who jetted in Dar es Salaam yesterday and his host
President John Magufuli are today expected to witness signing of an agreement
and Memorandum of Understanding (MoU) on co-operation in transport,
bio-diversity and conservation. Speaking at the session yesterday, the Minister
said it was high time the two countries aimed higher in areas of trade,
investment and interactions for common interests. “We have both recorded
impressive figures in trade and investment, but we must aim higher, the
existing opportunities ought to be scaled-up. The BNC sets the stage for a
properly structured modality to achieve this,” he stressed. Dr Mahiga said the
ministerial session had as well set out priorities and implementation plan for
agreements to be signed today, in addition to 14 others, which were inked in
the past between Dar es Salaam and Pretoria.
Dar bans forest product export to curb deforestation
Threatened by imminent total destruction
of its forests, Tanzania has embarked on a programme to
strengthen conservation of some of its key natural vegetation that are
overwhelmed with the wantonly tree felling for timber and wood fuel. Under the programme, the government has finally
banned with immediate effect the exportation of wood and charcoal with a view
to restore forestation so as to protect the East African nation from turning
into desert. The move is to curb the increased phenomenon of the wanton tree
felling which continues unabatedly with exporters not adhering to country’s
policies. The continued random cutting of trees for timber and charcoal are
among the major drivers that causes deforestation. Statistics by the Tanzania
Forests Services Agency (TFSA), a government agency responsible for monitoring
the country's forestry activities, shows that, more than 370,000 hectares
(915,000 acres) of forests are being cut annually in the country to burn
charcoal. The Natural Resources and Tourism Minister, Prof Jumanne Maghembe
says that the new directives would end commercial exploitation of wood which has
already threatened sustainability of forest and nature in the country. The
Ministry’s report shows that Tanzania has 33.5 million hectares of forests, of
which about 13 million hectares have been gazetted as national game reserves. “From
now onwards no one is allowed to cut and transport wood or charcoal outside the
district of origin,” Prof Maghembe directed the Tanzanian Forest Service (TFS),
a semi-autonomous government Executive Agency mandated to manage the national
forest reserves. Prof. Maghembe further directed TSF officials to collaborate
with district commissioners countrywide in supervising the execution of the
directive as Tanzania is witnessing environmental burdens as a result of
excessive tree cutting. Some charcoal traders in the city of Dar es Salaam have
raised a grave concern saying that the government’s plan, however, would affect
many thousands of people who use charcoal as their main source of cooking
energy or earn a living from producing or selling it.
"If the government
doesn't want people to use charcoal, what else should we use for cooking?"
asked one famous charcoal trader Bakari Mwenda based in Gongo La Mboto on the
outskirts of the city. Many poor households across Tanzania’s main cities and
towns look to forests as a source of income, harvesting trees to supply growing
markets for charcoal and timber. Available statistics shows that, two million
tonnes of charcoal are being consumed in Tanzania each year, roughly half of it
is being supplied in most Dar es Salaam’s markets. Statistics by the World Bank
shows that, charcoal industry in Tanzania generates an estimated $ 650 million
a year, employing hundreds of thousands of people as producers and
transporters, as well as manufacturers and retailers of charcoal stoves. The
National Energy Policy 2015 says that, although Tanzania has many energy sources,
including natural gas and solar power, charcoal, firewood and other biomass
sources still account for 85 percent of total cooking energy consumption. The
policy has affirmed that, the increased charcoal consumption which is high
particularly in urban areas, has nearly doubled over the past decade as a
result of rapid urbanization and scarcity of affordable alternatives for other
energy uses. The policy further says that, the demand of charcoal fuel in the
country is expected to double from the current 2.3 million tonnes a year by
2030. A government push over the last decade to use more natural gas for
cooking has had some successes, with demand increasing from about 24,000 metric
tonnes in 2011 to 69,000 in 2015. The country uses over one million tonnes of
charcoal annually, half of which is consumed by households in Dar es Salaam.
Tanzania has been using approximately 87 million cubic metres of trees for
charcoal and firewood when only 64 million cubic metres per year is allowed.
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