DAR-BEIJING PLEDGE SCALING TIES UP TO GREATER HEIGHTS

The Minister for Foreign Affairs and East African Cooperation, Ambassador Augustine Mahiga, welcomes his Chinese counterpart, Mr. Wang Yi, at Julius Nyerere International Airport (JNIA) in Dar es Salaam on Monday.

The Prime Minister, Mr Kassim Majaliwa, has pledged continued cooperation between Tanzania and China in various fields through investments in industries, energy and infrastructure.

The premier made the pledge on Monday at his Oysterbay residence in Dar es Salaam when he met with China’s Foreign Affairs Minister, Mr Wang Yi, on behalf of President John Magufuli.

Mr Majaliwa stated that cooperation between the two countries was historical and, therefore, ensured the Government of China that the cooperation would be cemented for the mutual benefit of the two nations. He used the opportunity to invite investors from China to invest in various sectors including agriculture, infrastructure, industries and energy.

TANZANIA MORTGAGE MARKET UPDATE AS AT 30 SEPT. 2016

IMF EXECUTIVE BOARD COMPLETES THE FIFTH REVIEW UNDER THE POLICY SUPPORT INSTRUMENT FOR TANZANIA

• Most program assessment criteria and indicative targets were met, though implementation of structural measures lagged
• Recent economic performance has been strong with high growth, moderate inflation, and a narrowing of the external current account deficit
• Authorities should ease the current tight stance of macroeconomic policies and redouble reform efforts to achieve targets in the medium-term development plan

On January 9, 2017, the Executive Board of the International Monetary Fund (IMF) completed the fifth review of Tanzania’s economic performance under the program supported by a three-year Policy Support Instrument (PSI). [1] The Board’s decision was taken on a lapse of time basis. [2]

In completing the review, the Board also granted waivers for the non-observance of the end-June 2016 assessment criteria on the overall fiscal deficit and the non-accumulation of domestic expenditure arrears on the grounds that the slippages were minor. The PSI for Tanzania was approved by the Board on July 16, 2014 (see Press Release No. 14/350).

CHINA PLEDGES TO BACK TANZANIA'S INDUSTRIALIZATION

Prime Minister Kassim Majaliwa (right) and Foreign Affairs and East African Cooperation Minister Dr Augustine Mahiga (left) during talks with Chinese Foreign Minister Wang Yi (second right) and his delegation in Dar es Salaam yesterday. Second (left) is the Chinese ambassador to Tanzania, Mr Lu Youqing. Wang Yi was in the country for a one-day working visit. 

Summary

• The Chinese minister of Foreign Affairs, Mr Wang Yi, issued the promise during official talks with his Tanzanian counterpart, Dr Augustine Mahiga in the city. Mr Yi had paid a day-long official visit.
• He said, China was ready to assist Tanzania in its development projects particularly roads, railway and the construction of ports in Bagamoyo and Zanzibar.

Dar es salaam. China has pledged more development support for Tanzania to enable the country meet targets set in the 2016/20 National Development Plan and achieve the ambition to build the industrial economy.

The Chinese minister of Foreign Affairs, Mr Wang Yi, issued the promise during official talks with his Tanzanian counterpart, Dr Augustine Mahiga in the city. Mr Yi had paid a day-long official visit.

He said, China was ready to assist Tanzania in its development projects particularly roads, railway and the construction of ports in Bagamoyo and Zanzibar.

“The cooperation will continue to go deeper and extensively, and China will always stand shoulder to shoulder in the making of Tanzania development and for the well being of it’s people,” he said.

SEFA TO SUPPORT TANZANIA IN ESTABLISHING A RENEWABLE ENERGY INVESTMENT FACILITY TO FINANCE RURAL ENERGY ACCESS PROJECTS

The African Development Bank-hosted Sustainable Energy Fund for Africa (SEFA) approved on November 29, 2016 a US $870,000 preparation grant for Tanzania’s the Rural Energy Agency (REA) to structure the Renewable Energy Investment Facility (REIF), which will provide affordable finance to private sector clean energy projects providing energy access to rural communities in Tanzania. Specifically, the SEFA grant will include advisory support, development of operational guidelines, risk mitigation framework, fund manager identification, technical and institutional support for the REA towards the establishment of REIF and capacity building for relevant public sector institutions/agencies and private sector project developers.

Tanzania’s national electricity coverage is estimated at just over 20% with transmission grid covering a minor part of the country and leaving out most of the territory. Access is even lower for the rural population at 7% thus nearly 30 million people lack a connection to the electricity grid. The vastness of the country, coupled with low population densities, makes grid extension too expensive, creating a significant market potential for off-grid electrification schemes.

Within this context and the country’s considerable and untapped renewable energy potential, the Government of Tanzania (GoT) has set an objective of increasing access to electricity by promoting renewable energy powered off-grid/mini-grid electrification schemes. GoT estimates that about half of the country’s rural population could be served by off-grid options in a cost-effective manner, and that mini-grids could benefit 9.1 million people in the country. GoT plans to achieve about 1.3 million connections in rural areas (including public facilities) and increase the average access rate to electricity (both urban and rural) to 35% by 2022. The REIF will thus contribute to expanding rural electrification and increase access to energy services by channelling appropriately tenured and priced finance to private sector companies developing and operating energy access projects in rural areas based on renewable energy technologies.

AFRICAN BILLIOAIRE FORTUNES DECLINE ON NEW FORBES LIST OF THE CONTINENT'S RICHEST

Billionaire Aliko Dangote is Africa's richest person.

The number of billionaires in Africa and the size of their fortunes continues to drop. On this year's list, FORBES is only including African billionaires living in Africa, instead of featuring Africa's 50 richest people. There are 21 billionaires on this year’s list, worth a combined $70 billion. On the November 2015 Africa Rich List, there were 23 African billionaires worth a combined $79.8 billion. That in turn was down from 28 African billionaires in 2014.

Nigerian cement tycoon Aliko Dangote remains Africa’s richest person for the sixth year running with a $12.1 billion fortune, despite a nearly $5 billion drop in his net worth for the second year in a row. Dangote is joined by just two other Nigerian billionaires on this year’s list, telecom tycoon Mike Adenuga, who is Africa’s third richest person with an estimated $5.8 billion fortune, and oil billionaire Folorunsho Alakija, who has an estimated net worth of $1.6 billion. Two Nigerians dropped off the Billionaires List this year, oil marketer Femi Otedola, whose net worth dropped from $1.6 billion in November 2015 to just $330 million today, and sugar billionaire Abdulsamad Rabiu, whose net worth dropped below $1 billion in the wake of a weakened Nigerian currency.

ANGOLAN PRESIDENT'S POWERFUL DAUGHTER TAKES OVER LARGEST BANK

Isabel dos Santos.

Isabel dos Santos, daughter of Angolan President Jose Eduardo dos Santos has reportedly taken over the country’s largest bank, Banco de Fomento Angola (BFA).

Isabel, who heads the country’s oil firm Sonangol, is reputed to be the wealthiest woman on the continent. Forbes reports that she had nearly 19% of Banco BPI shares, Portugals’s fourth-largest bank.

BBC reports that BFA’s controlling stake was bought from a Portuguese bank by Angola’s largest phone operator Unitel which is run by Ms dos Santos. As at today, she is listed as one of two Vice-President of the bank’s board of directors.

Portuguese bank, BPI, accepted to relinquish its stake in the bank as a result of pressure from the European Central bank. According to the ECB, BPI’s exposure to Angolan government debt was too risky under new European banking laws.

Forbes pegs her current worth at $3.2 billion largely made from investments. In Angola’s former colony, Portugal, she owns a nearly 7% chunk of oil and gas firm Galp Energia (alongside Portuguese billionaire Americo Amorim).

‘‘She is also a controlling shareholder of Portuguese cable TV and telecom firm Nos SGPS (formerly called Zon). In June 2015, media reported that she spent slightly more than $200 million to buy a stake in Portuguese electric power equipment firm Efacec Power Solutions,’‘ Forbes said.

MEGHEMBE KEEN TO SEE TOURIST ATTRACTIONS ON BILLBOARDS

All Tanzania’s highways are dotted by large commercial billboards on either side; some extra-large other featuring full High Definition Videos and GIFs but none seems to promote the country’s many natural attractions.

Such things has irked the Natural Resources and Tourism Minister, Professor Jumanne Maghembe, who issued an order to the Tanzania National Parks, the Ngorongoro Conservation Area Authority and the Tanzania Tourist Board to start installing planting billboards and neon signs that advertise the country’s national parks, conservation area and other attractions fit for tourists.

“It is rather a shame that when foreign visitors land into the country, they are welcomed by billboards advertising cellular phone services providing firms instead of what Tanzania has to offer,” pointed out Prof Maghembe. He added that neighbouring countries took advantage of Tanzania’s ‘lying back’ attitude to virtually profit from local features.

ZANZIBAR BEGINS BRANDING ITS CLOVES, OTHER SPICES TO WIN MARKET

Spices grown in Zanzibar, including cloves, are set to increase their competitiveness in the world market following the inauguration of its branding under the name ‘Zanzibar Exotic Original.’

Isles President Ali Mohamed Shein graced the inauguration of the branded spices, noting that Zanzibar cloves remain the world’s best, asking the people to maintain the standard.

“We took the best decision not to privatise cloves; it would be under threat of collapse with low price. Branding will definitely raise their standard, farmers’ income and protect our property,” said Dr Shein.

The inauguration of the branding exercise was among activities lined-up to mark this year’s 53rd anniversary of the Zanzibar Revolution. The event was held at Saateni, which is Zanzibar State Trading Corporation (ZSTC) protected area zone, where black pepper, cinnamon, and chilli are also parked and branded.

NEW THRUST FOR INDUSTRIAL PARKS

Executive Director of the Tanzania Private Sector
Foundation (TPSF), Mr Godfrey Simbeye.

Private sector players in the country have appealed to the government to amend the Special Economic Zone Act and the Tanzania Investment Act to enable the country set up modern industrial parks to attract more investments, particularly from China.

The Executive Director of the Tanzania Private Sector Foundation (TPSF), Mr Godfrey Simbeye, made the call in Dar es Salaam yesterday ahead of one-day working visit by China’s Foreign Affairs Minister, Wang Yi, who is expected in the country today.

“The current model of Special Economic Zones in Tanzania is not suitable for attracting massive investments in terms of industries from China which has proved to boast of immense capital to invest in other countries,” Mr Simbeye noted.

Mr Simbeye as well urged the government to form a team of facilitators from the Ministry of Industry and Trade and the Ministry of Finance and Planning to formulate business models of successful industrial parks from China.

AIRTEL PICKS COMMERCIAL EXECUTIVE FOR AFRICA DUTIES

Dar es Salaam. Bharti Airtel, which trades as Airtel has appointed Rajeev Sethi (pictured) as the new Chief Commercial Officer for its Africa operations.

A statement issued yesterday to the media, said Mr Rajeev will be responsible for the formulation and implementation of customer-centric commercial strategies across the 15 African countries where Airtel operates.

“His key focus will be across consumer and enterprise businesses covering products and pricing, distribution, brand and customer experience,” reads part of the statement.

Announcing the appointment, Mr Raghunath Mandava, Managing Director and CEO, Airtel Africa, said: “With his vast experience across a range of developing markets, Rajeev will contribute immensely in accelerating our growth journey.

CHINESE FOREIGN MINISTER JETS INTO DAR TODAY

Chinese Foreign Affairs Minister, Wang Yi

Chinese Foreign Affairs Minister Wang Yi is expected in the country today for a one-day working visit. During his visit, Mr Wang will meet and hold official talks with his host, the Minister for Foreign Affairs and East African Cooperation, Dr Augustine Mahiga, on cooperation between the two countries and later hold a joint press conference.

The two ministers will discuss in detail China’s plan on assisting Tanzania realize its industrialization dream. Aside from the country's industrial development plan, the two ministers will also discuss other infrastructure projects that China has committed its support, including improvement of Tanzania- Zambia Railway Authority (TAZARA), construction of Bagamoyo Port and the Central Line to Standard Gauge Railway standards.

WAZIRI WA MAMBO YA NJE WA CHINA KUFANYA ZIARA NCHINI

Mkuu wa Kitengo cha Mawasiliano na Msemaji wa Wizara ya Mambo ya Nje na Ushirikiano wa Afrika Mashariki, Bi. Mindi Kasiga akizungumza katika mkutano na waandishi wa habari kuhusu ziara ya Waziri wa Mambo ya Nje wa Jamhuri ya Watu wa China atakayoifanya hapanchini tarehe 09 Januari, 2017. Mkutano huo ulifanyika katika Ukumbi wa Mikutano wa Kimataifa wa JNICC Jijini Dar es Salaam hivi karibuni.

Waziri wa Mambo ya Nje wa Jamhuri ya Watu wa China, Mhe. WANG Yi anatarajiwa kufanya ziara ya kikazi nchini tarehe 09 Januari 2017. Mhe. Waziri Wang Yi atapokelewa na mwenyeji wake Waziri wa Mambo ya Nje na Ushirikiano wa Afrika Mashariki, Mhe. Balozi Dkt. Augustine Mahiga.

Madhumuni ya ziara hiyo ni kukuza mahusiano mazuri na ya kihistoria baina ya China na Tanzania ambayo yamedumu kwa zaidi ya miaka hamsini tangu kuanzishwa kwake pamoja ‎na kuangalia maeneo mapya ya ushirikiano wa kiuchumi baina ya Tanzania na China.

SALES SURGE FOR GLOBAL CARMAKERS IN CHINA, HONDA OVERTAKES RIVALS

BEIJING, Jan 6 (Reuters) - Sales surged for global automakers in China in 2016 as consumers rushed to buy cars to make the most of a tax incentive, with Honda Motor Co Ltd seeing a particularly brisk pace of business ahead of Ford and Toyota Motor Corp.

Toyota has traditionally led Honda in China - the world's largest auto market - but last year Honda sped past with a year-on-year sales growth of 24 percent to 1.25 million vehicles, helped by a steady stream of fresh models particularly in the hot sport-utility vehicle segment.

Toyota reported an 8.2 percent rise in 2016 sales. The automaker expects to sell at least 1.2 million vehicles this year, roughly flat with 2016.

Ford reported a growth in China sales of 11.9 percent to 1.24 million vehicles in 2016, not including sales of its premium Lincoln brand, according to a Reuters calculation.

All three companies, however, continued to lag sales by Nissan in China. Nissan's sales grew 8.4 percent to 1.35 million vehicles in the country last year.

DR. MPANGO: TAX COLLECTION NOT BEHIND BUSINESS CLOSURE

Minister for Finance and Planning, Dr. Philip Mpango.

Minister for Finance and Planning, Dr Philip Mpango has refuted reports that tax collection was behind closure of some businesses and decrease of tenants in various buildings.

However, the Minister said that after making a follow up, his office realized that some traders have been closing businesses but it was difficult to know the reasons behind their move.

Dr Mpango was speaking to reporters recently on country’s state of economy between July and December 2016. He said between August and October 2016, a total of 1,076 businesses were closed in Ilala District, 443 in Kinondoni and 222 in Temeke while in Arusha a total of 131 businesses were closed. According to Dr Mpango, most of business that were closed were in the construction sector, whole and retails businesses as well as transportation services.

“We have made a follow up on the reports that some traders have been closing businesses, it is true to some extent because there are some businesses, which have been closed between July and December 2016,” said Dr Mpango.

However, the Minister said the government has failed to identify reasons behind the closure of the businesses and that it was difficult and unprofessional to associate the move with tax collection.

PETROL PRICES SLIGHTLY UP AS DIESEL, KEROSENE PRICES LOWERED

The Energy and Water Utilities Regulatory Authority (EWURA) has lowered cap prices for diesel and kerosene and slightly increased petrol prices for January in line with changes in prices of petroleum products in the world market.

The energy regulator announced on Wednesday that retail prices for diesel and kerosene have decreased by 66/- per litre or 3.68 per cent and 37/- per litre or 2.11 per cent respectively to provide huge relief to the transport industry and domestic users.

The price for petrol price has slightly increased by ten cents per litre or 0.01 per cent. Similarly compared to the last month publications, wholesale prices for diesel and kerosene have decreased by 66/- per litre or 3.91 per cent and 37/- per litre or 2.25 per cent respectively, while petrol price has increased by per cent per litre or 0.01 per cent, the authority said. Road transport is the most widely used form of transport in Tanzania, carrying over 90 per cent of the passengers and 75 per cent of the freight traffic in the country.

7-YEAR DEBT SECURITIES UNDERSUBSCRIBED

The first long term debt instrument to be auctioned this year was received on a low note, ending up undersubscribed.

The Bank of Tanzania (BoT) auctioned seven-year treasury bonds with a quest to raise 138.46bn/- but 57.53bn/- mobilised, which is equivalent to 41.54 per cent of the amount sought. At the end, a total of 53.11bn/- was retained as successful amount.

Normally, proceeds from the bonds instrument are used to finance long term infrastructure projects and settle some maturing debts.

The auction results explain the situation that still affect the money and equity markets where most investors reduced their investment to fulfill social and quarterly tax obligations during year end.

Some of the key local investors in the long term government paper are commercial banks, insurance companies, pension funds and some microfinance institutions. Similarly, the fourth and last sevenyear bond to be auctioned held in October last year was greeted by low appetite from investors due to tight liquidity in the market.

FINALLY TELECOMS INITIATE SHARE LISTING PROCESS ON THE DAR ES SALAAM STOCK EXCHANGE

Mid last year the National Assembly passed the Finance Bill, 2016 compelling registered electronic communication companies to float their stakes on the Dar es Salaam Stock Exchange (DSE) within a period of six months.

The mandatory requirement to have the firms list on the DSE is not a new aspect, it is also contained in the Electronic and Postal Communication Act (EPOCA) of 2010 which required the firms to offer shares to the public and subsequently list with the stock exchange within three years from the commencement of the Act, something that the firms didn’t comply.

Before the enactment of the Finance Act of 2016, the telecommunication firms tried to wiggle out of the EPOCA requirement. Government tried to consult with the mobile phone firms who protested the requirement saying the stock market performance could impact negatively on the share price.

None of the telecoms operating in Tanzania listed at the DSE then. The Finance Act of 2016 which makes the requirement compulsory, gave until December 31st of 2016 for the firms to have prepared their prospectuses for listing at the DSE.

200 FACTORIES ON TANZANIA-CHINA PLAN

Ms. Mindi Kasiga.

At least 200 factories are planned for launching in the country within the next three years with China’s support, a move that will boost Tanzania’s drive to become an industrial nation.

The Head of Communications in the Ministry of Foreign Affairs and East African Cooperation, Ms Mindi Kasiga, told reporters in Dar es Salaam on Thursday that the factories were expected to generate 200,000 employment opportunities.

Ms Kasiga was briefing reporters about a one-day working visit by China’s Foreign Affairs Minister, Wang Yi, next Monday. She said during his visit, Mr Wang will meet with President John Magufuli and hold official talks with his host, the Minister for Foreign Affairs and East African Cooperation, Dr Augustine Mahiga, on cooperation between the two countries. Ms Kasiga said the two ministers will discuss China’s plan on assisting Tanzania to realise its industrialisation dream.

She explained that in December 2015, during the Sixth Forum on China-Africa Cooperation (FOCAC) summit held in Johannesburg, Tanzania was selected among four countries in Africa to be supported by China in realising industrialisation.

Other countries are Kenya, Ethiopia ad South Africa. “Under the Sixth FOCAC action plan at least 200 factories are expected to be set up before 2020 and will generate 200,000 employments,” she said.

DR SHEIN OPENS FIRST EVER MILK PROCESSING FACTORY

Zanzibar President, Dr. Ali Mohamed Shein.

President Ali Mohamed Shein has officially opened ‘Zanzibar’s only’ milk processing factory named ‘Azam Diary’ expressing concern over low milk consumption in the islands.

“People should be encouraged to drink milk. It is unfortunate that Zanzibar remains of the countries with lowest milk consumption. Let us change this trend,” Dr Shein said here at the opening of the Azam Dairy Production Limited (ADPL).

The facility is the result of USD 20 million, investment by ‘Bakhressa Group of Companies’, creating hundreds of jobs including 130 direct employments.

Dr Shein used the gathering, among events listed to mark the 53rd Anniversary of the revolution climaxing next Thursday promising to promote growth of industries as stipulated by the Industry policy.

He commended Bakhressa Group of Companies for establishing the Milk factory in Zanzibar as the Minister of Finance, Dr Khalid Salum Mohamed said it was a milestone in current government’s plans to have many industries.

TANZANIA JOINS CHINA LED ECONOMIC STRATEGY

Tanzania has been selected among seven countries to join China One Belt, One Road strategy. The move is in line with the fifth phase government’s initiatives to link the country with big business strategies in Asia, Europe and Africa.

Other countries that have been selected along with Tanzania include Malaysia, Sri Lanka and Nepal. Others in the list include Bangladesh, Pakistan and Thailand. Following the selection of Tanzania, the Vice- President, Ms Samia Suluhu Hassan, has met top officials with Tanzania Private Sector Foundation (TPSF), Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) and Confederation of Tanzania Industries (CTI) to discuss the importance of joining the strategy.

The VC said Tanzania has been selected member of the strategy after she met with Chinese mineral dealer, Dr Helen Lau in China. She said the two discussed various issues regarding the importance of the strategy to the Tanzanian economy.

According to Ms Hassan, she asked Dr Lau to involve Tanzania in the China One Belt, One Road Strategy and that her request has been accepted. She said in September there was a meeting in Guangdong, China, to discuss various requests for joining the strategy.

INDICATIVE MEDICAL COSTS COMING

The government is finalising essential procedures for harmonising medical treatment costs in both private and public hospitals as one of the key measures to ensure fair and quality in offering medical services.

The Permanent Secretary (PS) in the Ministry of Health, Community, Development, Gender, Elders and Children, Dr Mpoki Ulisubisya, said yesterday that the government will soon announce indicative medical costs for both public and private hospitals in the country. He was speaking during a television interview programme on the performance of his ministry for the past one year.

He said the government is committed to offering quality and reliable health services, but at the same time there should be no form of exploitation in offering such services. “We are carefully reviewing medical costs in our hospitals. We want to make sure all people enjoy quality and affordable services,” said the PS. According to Dr Ulisubisya, the ministry will be offering indicative medical services costs according to the actual changes of services and time.

“We want to review and announce indicative medical costs like it happens with fuel prices, there have been announcement of indicative prices for fuel from time to time,” he noted. He said health stakeholders are involved in all procedures and that they look forward to reaching a consensus soon.

HEIDELBERGCEMENT GROUP MANAGING BOARD VISIT TWIGA CEMENT PLANT AT WAZO HILL, TEGETA

HeidelbergCement Group Managing Board Member Mr. Hakan Gurdal tests Twiga Cements Defensive Truck Driving Simulator Training equipment after inaugurating the new cement plants H&S Training Facility. Looking on from right Twiga Cement’s OHSS Manager Mr. Jerome Mwakabaga, and other HeidelbergCement Managing officials.

Twiga Cement’s Plant Manager Mr. Tom Dijkstra (Center) gestures during a recent HeidelbergCement Group Managing Board visit at Twiga Cement Plant located at Wazo Hill-Tegeta. HeidelbergCement Managing Board Team where on an Africa official tour recently, in countries where HeidelbergCement Group has operations.

WAZIRI MAHIGA AKUTANA KWA MAZUNGUMZO NA BALOZI WA CHINA NCHINIi

Waziri wa Mambo ya Nje na Ushirikiano wa Afrika Mashariki, Mhe. Dkt. Augustine Mahiga akizungumza na Balozi wa China nchini, Mhe. Lu Youqing alipofika Wizarani kwa ajili ya mazungumzo kuhusu ushirikiano kati ya Tanzania na China.

Sehemu ya Ujumbe kutoka Wizara ya Mambo ya Nje na Ushirikiano wa Afrika Mashariki wakifuatilia mazungumzo kati ya Mhe. Mahiga na Balozi Lu (hawapo pichani). Kutoka kushoto ni Mkurugenzi wa Idara ya Asia na Australasia, Balozi Mbelwa Kairuki, Mkuu wa Kitengo cha Mawasiliano ya Serikali, Bi. Mindi Kasiga, Maafisa Mambo ya Nje, Bw. Emmanuel Luangisa na Bw. Benedict Msuya.

Ujumbe kutoka Ubalozi wa China.

Mhe. Dkt. Mahiga akiagana na Balozi Lu mara baada ya mazungumzo yao.

VACANCY ANNOUNCEMENT - EXECUTIVE DIRECTOR, PETROLEUM BULK PROCUREMENT AGENCY (PBPA)

MOST EDUCATION LOAN DEFAULTERS STILL 'HIDING’

HESLB Executive Director, Mr Abdul-Razaq Badru.

As the Higher Education Student’s Loans Board (HESLB) finalises preparations to publish names and pictures of education loan defaulters, only 31.6 per cent have so far come out and started repayment.

The HESLB Executive Director, Mr Abdul-Razaq Badru, told the ‘Daily News’ that by yesterday, only 45,000 defaulters out of 142,470 had heeded to the instruction. Late last year, HESLB instructed the defaulters to clear their debts within 30 days or face legal action.

They owed loan’s board about 239.3bn/- After 30-day ultimatum expiry, HESLB announced that it will start publishing names and pictures of chronic defaulters who graduated in the last ten years effective this month.

A taskforce formed by loan’s board has also started visiting employers for verification on deductions, remittances and names of the institutions’ graduate employees who benefitted from the education loans.

TELECOM FIRMS WHOSE SHARES AREN'T YET LISTED AT THE DAR ES SALAAM STOCK EXCHANGE FACE PENALTY

The Tanzania Communications Regulatory Authority (TCRA) is set to penalise telecommunications companies that have not completed the process of listing their shares at the Dar es Salaam Stock Exchange (DSE).

Speaking to the press yesterday, TCRA Director General Engineer James Kilaba said among penalties that will be taken against the telecommunication companies that have not complied with requirements stipulated in the law include suspension or cancellation of their licences. Eng Kilaba said under the Electronic and Postal Communications Act (EPOCA) amended by the Finance Act of 2016 set the deadline for the firms to complete the process of listing at the DSE on 31st December last year.

“We are waiting for a list of companies from the Capital Markets and Securities Authority (CMSA) that failed to comply with the directives as required by the laws so they can be brought to task. Penalties stipulated in the law include suspension or cancellation of the licences,” he explained.

EAST AFRICAN COMMUNITY'S POSITIONING FOR 2017 AND BEYOND

It recently emerged that, in February, a sub-committee of ministers responsible for East African Community affairs agreed on a confederation model instead of a political federation as the last stage of EAC integration.

As Judy Njeru, senior assistant director for political affairs in Kenya’s state department of EAC integration said recently, a confederation is a union of political units for common action in relation to other units.

Confederations tend to be established for dealing with critical issues such as defence and security, foreign affairs, a common currency, immigration and labour movement, infrastructure, and education, science and technology development.

Njeru said measures toward this form of cooperation, including harmonisation of education systems and curricula, cooperation in health, sports, defence, peace and security, trade and customs, standards and environment, are already taking place.

“Confederation allows for the transitional stages to be used as building blocks towards the achievement of a full political federation,” she said.

“The idea of a confederation as a transitional phase toward the political federation is desirable, particularly since partner states will retain their sovereignty and only transfer some capacity in identified areas.”

MOODY'S PREACHES OIL AND GAS OVER DIVERSIFICATION FOR NIGERIA RECOVERY

Since the onset of the recession last year, the Federal Government (FG) has been proclaiming that the way out of the economic crisis remains diversification of the nation’s economy from its over-dependence on the oil and gas sector, which it said was partly responsible for the recession.

Despite all the cries for diversification of the economy, credit ratings agency, Moody’s, has affirmed that oil and gas remains Nigeria’s best hope of lifting its economy from the dredges it currently finds itself. The agency acknowledged the potency of the capital market as a reliable and captive source of liquidity and funding for the government but however, indicated that the oil and gas sector would play a significant role in getting Nigeria out of recession this year.

Giving its reasons for this assertion, it said: “Nigeria’s large hydrocarbons reserves remain a key credit support: it has an estimated 37 billion barrels of oil (about 28% of total African reserves) and nearly 34 billion of oil-equivalent in gas. Oil and gas exports tend to account for over 90 percent of goods exports and a significant share of fiscal revenue (60-70% prior to the current oil shock).

‘‘Our current oil price forecast are $45 per barrel in 2017 and $50 in 2018, compared to prices above $100 on average between 2010 and 2014”.

UMEME ACQUIRES $46 MILLION LOAN FOR EXPANSION (UGANDA)

Power distributor Umeme has approved additional borrowing of $45m (Shs165b) to further expansion around the country.

Daily Monitor understands that the loan was approved as part of an extension of the line of credit offered by International Finance Corporation (IFC), Stanbic Bank and Standard Chartered Bank. Umeme had by May 2016 utilised the entire $170m (Shs612b) loan facility from the three institutions.

In its 2015 annual report, Umeme notified shareholders that it would have to raise additional funding over the next five years. Daily Monitor understands that at least $25m (Shs90b) was immediately extended to Umeme from Standard Chartered Bank and Stanbic Bank.

On December 9, IFC also approved lending a balance of about $20m (Shs72b) in addition to what the two Ugandan commercial banks had provided. The money from the IFC is now pending disbursement.

“The additional financing will be used to support the company’s capital investment programme, including expansion and reinforcement of the distribution network, the rollout of pre-payment metering, reduction of commercial and technical losses and increasing customer grid connections,” reads a note seen by Daily Monitor.

KENYA AIRWAYS AMONG FIRMS EYEING AIR MADAGASCAR STAKE

National carrier Kenya Airways has been shortlisted among seven airlines interested in acquiring a minority stake in Air Madagascar, which is looking for a strategic partner to help turn around its fortunes.

The management of the cash-strapped Air Madagascar recently disclosed that Kenya Airways, Air Austral, Ethiopian Airlines, Air Mauritius and South African Airlink are some of the carriers gunning for a stake of up to 49 per cent.

The government of Madagascar, with financing from the World Bank, is seeking a strategic investor “willing to invest in the company by taking minority equity shares and by bringing know-how to the airline as well as committing to run it.”

Kenya Airways’ interest in owning a piece of the Madagascar national carrier, and helping to revive it, comes at a time when it is itself in desperate need of about Sh60 billion to recapitalise the loss-making business.

EARNINGS FROM RWANDA MINERAL SECTOR GROW BY 40%

Earnings for Rwanda’s mineral sector are looking up after prices for Rwanda’s second most important mineral export by revenues, tin, shot up by 40 per cent on the London Metal Exchange.

Prices for tin rose from $13,000 per tonne at the end of October to $21,000 per tonne in November, a trend that has held through the first two weeks of December, raising hopes for an industry that has endured a steady decline in revenues for the past three years in a row.

Prices for tin had fallen by 38 per cent over the past three years, while prices for coltan and wolfram had fallen by 25 per cent and 22 per cent respectively bringing down $226 million in 2013 to $149 million last year.

This year, Rwanda expects $152 million from mineral revenues, representing a slight increase from $149 million collected in 2015, according to projections from the ministry of natural resources.

The increase is partly attributed to the exportation of new minerals like iron ore, gold and gemstones, which have supplemented the country’s principal minerals of tin, coltan and wolfram — whose prices have been in decline for a while now.

“Price fluctuation is a real big problem, and that is why we are now looking at value addition. We are in the process of acquiring a certificate for smelting conflict-free minerals at our Karuruma smelter. This will enable us to increase production of processed minerals which fetch more on the international market,” minister of natural resources, Vincent Biruta, said Wednesday.

TANZANIA AND BURUNDI RISK LOSING EUROPEAN UNION AID OVER EPAs

Tanzania and Burundi risk losing development aid from the European Union for refusing to append their signatures to the trade agreement between the region and the European economic bloc.

Dar es Salaam and Bujumbura have declined to sign the Economic Partnership Agreement of the EAC with the EU. Being a single Customs territory, all EAC members need to sign the pact before it is enforced.

However, Tanzania argues that signing the trade deal in its current form will have negative implications for its industrialisation strategy.

Speaking during the 32nd Conference of African Caribbean and Pacific Group of States (ACP) and the European Union (EU) in Nairobi, Patrick Gomes, the secretary-general of ACP, said that aid to the countries must be tied to trade agreements for the mutual benefit of both economic blocs.

“We need to understand that EPAs come not only with trade opportunities with Europe, but development aid as well. As it is, Tanzania, Uganda and Burundi, which have been dragging their feet in signing the trade pact, could end up losing important development aid from the EU,” Mr Gomes said.

The ACP is composed of 79 African, Caribbean and Pacific states that are signatories to the Cotonou Agreement, which binds them to the EU.

UGANDA'S ECONOMY AFFECTED BY ELECTIONS, DOWNTURN IN BANKING

Drought, the war in South Sudan and an election at the beginning of the year impacted Uganda’s economy, sending shockwaves through the real estate market, the stock exchange and trade.

The biggest upset was in the banking sector, where the country’s third largest bank, Crane Bank, was put under receivership.

Executives now wait to see how the Bank of Uganda (BoU) handles the troubled Crane Bank as the decision is likely to shape the regulator’s stance towards failing banks in the future.

Fears of runaway inflation anticipated in the aftermath of the February general election prompted BoU to pursue tight policy actions in an effort to preempt a repeat of gloomy economic indicators experienced during the post-election period in 2011.

EAST AFRICA FASTEST GROWING REGION, SAYS UK LOBBY

East Africa is the fastest growing region on the continent and its development prospects remain positive, a UK-based accountant’s body says.

The Institute of Chartered Accountants in England and Wales (ICAEW) say in its latest report that the more diversified East African economies are faring better than those of southern, central and western Africa.

“Growth prospects remain divergent by region, with Central and West African economies struggling with weak commodity demand,” the Economic Insight: Africa Q4 2016 report says.

The report produced in partnership with Oxford Economics provides a snapshot of the continent’s economic performance. ICAEW notes that the Central Bank of Kenya has been able to ease monetary policy in recent months through legal changes that could help fuel further economic growth.

It says Kenya’s growth outlook has improved in recent months, with the tourism sector recovering from the effects of previous terror attacks and travel advisory warnings.

2016 IN REVIEW: A NEW CHAPTER OPENS AT THE AFRICAN DEVELOPMENT BANK

At the African Development Bank, 2016 was a transformative year. It was a year of operational accomplishment and institutional renewal.

At the institutional level, the Bank made significant progress in moving its transformation agenda forward. The year started with the launch of the New Deal on Energy for Africa, and a Transformative Partnership on Energy at the World Economic Forum in Davos. The Board discussed and approved four of the High 5 strategies. The Board also approved the New Development and Business Delivery Model (DBDM) and an updated decentralization action plan. 

With these approvals, the Bank is now ready to fully roll out its new Development and Business Delivery Model (DBDM) to achieve greater developmental impacts. The DBDM will move the Bank closer to its clients and streamline the business processes as well as improve institutional effectiveness and financial performance. In addition, the approval of a competitive salary structure for both internationally and locally recruited staff and the establishment of performance contracts and completion of the recruitment of the new senior management team were among the key milestones.

VISA EXEMPTION FOR TANZANIAN DIPLOMATIC AND OFFICIAL / SERVICE PASSPORT HOLDERS

The United Republic of Tanzania and the Republic of India have started to implement the agreement signed by the two Governments on 10 July, 2016 on visa exemption for each other’s diplomats and official/service passport holders.

The agreement became effective on 26 December 2016.

The agreement states that, holders of diplomatic and official/service passports of the two countries do not require visa to travel to the other country from 26 December 2016, except when employed in each other’s country.

Issued by: 

Government Communication Unit,
Ministry of Foreign Affairs and East African Cooperation,
Dar es Salaam.

2nd January, 2017

RAIS DKT. JOHN POMBE MAGUFULI ATEMBELEA MAENEO YALIOATHIRIKA NA TETEMEKO NA KUWEKA JIWE LA MSINGI UJENZI WA SHULE YA SEKONDARI IHUNGO MKOANI KAGERA JANUARI 02, 2017

Rais wa Jamhuri ya Muungano wa Tanzania Dkt. John Pombe Magufuli akiwa pamoja na balozi wa Uingereza hapa nchini Sarah Cooke (kushoto) wakiweka jiwe la msingi katika ujenzi wa Shule ya Sekondari ya Wavulana Ihungo mkoani Kagera. Shule hiyo inajengwa upya kufatia kuathirika na tetemeko la Ardhi lililotokea mkoani humo.

Rais wa Jamhuri ya Muungano wa Tanzania Dkt. John Pombe Magufuli akitazama wakati Balozi wa Uingereza hapa nchini Sarah Cooke alipokuwa akibonyeza kitufe kuashiria uzinduzi wa mradi wa ujenzi wa Shule ya Sekondari ya Wavulana Ihungo mkoani Kagera. Wakwanza kushoto ni Waziri wa Elimu Profesa Joyce Ndalichako.

Rais wa Jamhuri ya Muungano wa Tanzania Dkt. John Pombe Magufuli akiwa na Balozi wa uingereza hapa nchi Sarah Cooke wakikagua ujenzi wa majengo ya Shule ya Sekondari ya Wavulana Ihungo mkoani Kagera.

Mtendaji Mkuu wa Wakala wa Majengo nchini (TBA) Elius Mwakalinga akitoa maelezo ya mradi huo kwa Rais wa Jamhuri ya Muungano wa Tanzania Dkt. John Pombe Magufuli wakati wa ukaguzi.

Mtendaji Mkuu wa Wakala wa Majengo nchini Elius Mwakalinga akitoa maelezo ya mradi huo kwa Rais wa Jamhuri ya Muungano wa Tanzania Dkt. John Pombe Magufuli wakati wa ukaguzi.

AZANIA BANK LTD VACANCY ANNOUNCEMENT

EWURA INCUR PRESIDENT MAGUFULI'S WRATH, AS TANESCO MD ENGINEER MRAMBA SHOWN EXIT DOOR

Former TANESCO’s Managing Director, Engineer Felchesmi Mramba.

President John Magufuli has blasted officials of the Energy and Water Utilities Regulatory Authority (EWURA) for arbitrarily raising electricity tariff by an average of 8.5 per cent.

He has at the same time also revoked the appointment of TANESCO’s Managing Director, Engineer Felchesmi Mramba, and appointed Dr Tito Mwinuka, former lecturer at the University of Dar es Salaam, as TANESCO’s Acting MD with immediate effect.

Dr Magufuli’s reaction comes a day after the Minister for Energy and Minerals, Professor Sospeter Muhongo, wrote a letter (dated December 31, 2016) directing the EWURA Director General to stop implementation of the new tariffs (planned to start yesterday) until when the government has thoroughly scrutinised the formal report it would receive from the regulator.

Speaking yesterday during a Holy Mass at the Mater Misericordiae Cathedral in Bukoba Municipality, President Magufuli assured Tanzanians that the new tariffs would not come into effect despite EWURA’s announcement.