SAMSUNG TO OBSOLETE GALAXY NOTE 7 WITH SOFTWARE UPDATE

The update will start on December 19 to prevent batteries of Note 7 from charging and actually turn the electronic products into bricks. 

According to Samsung, 93 per cent of Note 7 owners have returned their devices in the United States because of fire catching and exploding accidents.

Seoul. Samsung decided at the weekend to render a software update to stop the remaining Galaxy Note 7 phones from working for safety concerns.

The update will start on December 19 to prevent batteries of Note 7 from charging and actually turn the electronic products into bricks.

ETIHAD AIRWAYS WINS ‘WORLD’S LEADING AIRLINE’ AWARD FOR EIGHTH CONSECUTIVE YEAR

Linda Celestino, Etihad Airways' Vice President Guest Services and Abdulrahman Al-Hadhrami, Manager Marketing Communications, accept the awards for ‘World's Leading Airline’ and ‘World's Leading Airline - First Class’ during the 23th World Travel Awards held in the Maldives.

• Airline also picks up coveted accolade for 2016 World’s Leading Airline – First Class at the World Travel Awards

Male, MALDIVES – Etihad Airways has once again collected the ‘World’s Leading Airline’ award at the 23rd annual World Travel Awards (WTA) Grand Final Gala Ceremony 2016. This marks the eighth consecutive year that the airline has received the prestigious accolade. Last night’s beachside event was held before an audience of the industry's leading luminaries and international media at the idyllic Sun Siyam Iru Fushi Beach Resort in the Maldives.

Etihad Airways also received the award for ‘World’s Leading First Class’. The airline’s First Class service and hospitality offering has consistently been voted best in the world by leading publications, research consultancies and customer satisfaction surveys. The World Travel Awards are considered the Oscars of the travel industry and hundreds of thousands of WTA voters, both from within the hospitality industry and among the public at large, cast more than 1.2 million votes during the Grand Tour 2016.

AIRLINES PANIC AS NIGERIA, GHANA RUN OUT OF AVIATION FUEL

Murtala Muhammed Airport in Lagos

Foreign airlines operating in Nigeria are panicking over current fuel shortage on the West African coast that may affect their operations especially as the Yuletide season beckons.

While Nigeria, which is the major market on the continent, is running short of supply to airlines, neighbouring Ghana that has lately become the aviation fuel hub for most airlines, is facing a similar challenge.

The Guardian yesterday learnt that the development was already a major source of concern to operations, as some airlines with Nigerian passengers have begun to make a detour in Libreville, Gabon, for fuel. Aviation sources say airlines may begin to ration flights to Nigeria during the festive season, especially when there is no guarantee of getting fuel in neighbouring countries for top-up - and this could frustrate business tourism by jacking up cost of domestic and international travels.

COAL DEBATE LINGERS DESPITE DANGOTE'S ASSURANCE TO JPM

Africa’s richest man and the owner of Mtwara-based Dangote cement factory, Mr. Aliko Dangote

According to Africa’s richest man, importing goods that are locally available amounts to importing poverty into Tanzania and exporting jobs outside the country, adding that his company is not going to be part of that.

Dar es Salaam. The owner of the Mtwara-based Dangote cement factory, Mr Aliko Dngote, says he is against his company’s decision to import coal and gypsum for use at the factory.

According to Africa’s richest man, importing goods that are locally available amounts to importing poverty into Tanzania and exporting jobs outside the country, adding that his company is not going to be part of that.

“We will utilise whatever we have locally, and already we have been assured of getting the amount of coal that we want…I also gave the President my firm commitment for further investments, and we are looking into other areas like agriculture and coal,” the Nigerian billionaire said after holding talks with President John Magufuli at State House on Saturday.

BARCODE TECHNOLOGY USE INCREASES

THE number of domestic manufacturers using the barcode technology has increased to over 1,000 companies and 15,000 products after discovering wide range of benefits.

The GS1 TZ National Limited Marketing Manager Mr Oscar Ruhasha said on ongoing industry expo at the Julius Nyerere Trade Fair Grounds along Kilwa Road yesterday that there is increased awareness over the benefits of using the barcode.

“Majority of business people particularly small and medium entrepreneurs have been acquiring the Barcode technology for their products to compete in the market,” he said.

He said also that the emphasis put by some top government leaders on the use of the barcode technology has helped increasing awareness with some small, medium and large companies moved to acquire the barcode.

SOUTH AFRICAN HIGH COMMISSION OFFICE RELOCATION

BARCLAYS AFRICA GROUP INVESTS TZS 32 BILLION INTO BARCLAYS BANK TANZANIA

Barclays Bank Tanzania Managing
Director, Mr. Abdi Mohamed.

As part of its commitment to the growth of Barclays Bank Tanzania Limited, Barclays Africa Group Ltd has invested TZS 32 billion as new capital into the Bank.

“The recapitalisation demonstrates Barclays Africa Group’s confidence in the Tanzanian market and the opportunity for growth and expansion,” Barclays Bank Tanzania Managing Director, Mr. Abdi Mohamed said.

The recapitalisation is an investment aimed at positioning the business for growth in the market.

As part of the Barclays Africa Group, Barclays Bank Tanzania has ambitious goals for 2017 and beyond, both for the business in Tanzania and as a Group. The capital is needed to grow the business even further and, in so doing, to take advantage of the many opportunities in Tanzania.

Among others, the recapitalisation will also enable Barclays Bank Tanzania to extend its Single Borrower’s Limit to support development of the corporate business and to invest in employees.

Further, it will allow the Bank to invest in improving services and offering convenience to the customers.

“Barclays Africa Group Ltd believes in the opportunity of the Tanzanian market and is demonstrating its renewed commitment through this recapitalisation of Barclays Bank Tanzania.

According to the Managing Director, the new recapitalization will have no effect on the existing products. “In fact, we are investing in technology and alternate channels to ensure that customers have ready access to our services and products. We are further investing in the development of a full Corporate and Business Banking proposition in the market.

As a business, we are fully committed to ensuring that our products pricing remain competitive on the market. As always, any revision of product pricing will be communicated in a timely and transparent manner,” he said.

FOREIGN CURRENCY EXCHANGE RATES, COURTESY OF NMB

FUEL PRICES UP AS CHEAP PETROL HONEYMOON IS OVER

Motorists should brace for more expensive fuel as the Energy and Water Utilities Regulatory Authority (EWURA) hiked retail and wholesale prices for petrol, diesel and kerosene due to soaring global prices for petroleum products.

Effective today retail prices for petrol in Dar es Salaam will be sold at 1,890/- per litre up from 1,860/- while prices for diesel will be 1,798/- per litre from 1,720/-. Kerosene prices have also gone up to 1,737/- per litre from 1,663/-, the energy regulator announced yesterday.

To a large extent, the continued increases in the local market prices have been caused by the increase of prices of petroleum products in the world market, Ewura said in a public notice. The authority said retail prices for petrol have gone up by 29/- per litre or 1.59 per cent, diesel by 78/- per litre or by 4.53 per cent and kerosene by 68/- per litre or 4.8 per cent.

PRESIDENT JOHN MAGUFULI STOPS 'MACHINGA' EVICTION

Street hawkers and petty traders, popularly known as ‘machinga’, must have sighed with relief yesterday after President John Magufuli put a stop to the ongoing operation to evict them from urban centres.

At the same time, the president has directed the Ministry of Energy and Minerals to immediately shelve the exercise to expel artisanal miners from Nyaligongo village, Mwakitolyo Ward in Shinyanga Region.

Instead, he said, the small miners should be left to continue with their activities while an investor claiming to own the area should have his/her licence revoked.

Dr Magufuli told the Deputy Minister for Regional Administration and Local Governments, Mr Selemani Jafo and his Permanent Secretary, Mr Mussa Iyombe, to implement his directive by immediately stopping the plan to evict the machinga in Mwanza and other regions until responsible authorities complete preparing alternative sites for relocating the latter through a participatory approach.

TANGA CEMENT EMERGES OVERALL WINNER OF THE BEST PRESENTED FINANCIAL STATEMENT AWARDS

National Board of Accountants and Auditors (NBAA) Executive Director, Pius Maneno (left), congratulates Tanga Cement PLC Chief Financial Officer, Pieter De Jager after his cement firm emerged the best overall winner of the National Board of Accountants and Auditors (NBAA), Best Presented Financial Statements for the year 2015, at a function held in Dar ers Salaam recently. TCPLC were also emerged first winner in manufacturing category. Second left are NBAA Board Chairman, Prof. Isaya Jairo and Ministry of Finance and Planning Commissioner of Fiscal Policy, Shogholo Msangi who was Guest of Honor.

Tanga Cement Company Limited has emerged the overall winner of the best presented financial statement for 2015 at an award gala organized by the National Board of Accountants and Auditors (NBAA) in Dar es Salaam recently.

The cement manufacturer also beat other entities such as the Tanzania Breweries Limited (TBL) which took second position and Tanzania Cigarette Company (TCC) which became third in the manufacturing category.

The Award was a reflection that the company puts quality above the rest, Tanga Cement Chief Financial Officer, Pieter de Jager said.

This creates the much-needed trust when these institutions want to conduct business with local and international investors. The award seeks to promote integrated reporting through enhancing accountability, transparency and integrity in compliance with appropriate financial reporting framework, according to the National Board of Accounts and Auditors (NBAA).

BARCLAYS BANK TANZANIA AFFIRMS YOUTHS LIVING IN FEAR OF UNEMPLOYMENT

Barclays Bank Tanzania Marketing Manager, Joe Bendera (centre) being interviewed by the media after his meeting with Univesity of Dar es Salaam (UDSM) students where he was introducing the Barclays "Ready to Work"   Education, skills training and employability program targeting university and higher learning students. A brief occasion was held at the university compounds in Dar es Salaam over the weekend.

Although a tough jobs market has left more than half of young people feeling worried about finding work, Barclays bank Tanzania sees it right to support and advise them to get on the job ladder.

A three years “ready to work program” backed by Barclays bank, will offer workshops and drop-in advice services for young people aged 15 to 35. This online initiative has been launched in eight institutions of higher learning, and will be extended to cover 3,000 graduates in other institutions across the country.

Some of the institutions of higher learning to be involved are the University of Dar es Salaam (Udsm), University of Dodoma (Udom), Institute of Accountancy Arusha (IAA), Institute of Finance Management (IFM), College of Business Education (CBE) Dar es Salaam campus, Tanzania Institute of Accountancy (TIA) and the Morogoro-based Mzumbe University.

UNIVERSITY OF DAR ES SALAAM COUNCIL RETAINS PROF. RWEKAZA MUKANDALA

Prof Rwekaza Mukandala.

University of Dar es Salaam Council yesterday announced that Prof Rwekaza Mukandala will stay on as the Vice-Chancellor for an additional year after his term expired early this month.

An official statement issued by the Council Chairman Peter Ngumbulu said the 63-year-old political scientist will continue leading the country’s oldest academic institution for 12 months effective last week.

"The University Chancellor Dr Jakaya Kikwete after consultation with President John Magufuli agreed that Prof Rwekaza Sympho Mukandala be given an extra year in office," said the statement. Prof Mukandala declined comment yesterday when this paper sought his reaction.

However, officials privy to the Vice- Chancellor said the former Research and Education for Democracy in Tanzania (REDET) Chairman was in office.

The statement which also went viral on social media Monday said Prof Mukandala will hold the office from December 5, 2016 to December 4, 2017. Born in Bukoba, Prof Mukandala took his primary education in Bukoba and secondary education at Tabora School and Musoma Secondary School.

DAR ES SALAAM THIRD MOST EXPENSIVE CITY TO LIVE IN EAC, NAIROBI LEADS

Kenya's biggest city, Nairobi, is the most expensive place to live in East Africa, according to Mercer, a global HR, company.

The 2016 City Rankings places Nairobi at position 116 on globe but is the highest rank comparing to its peers in the region. In EAC, the second on list is Kigali, Rwanda that falls on 139 on international position, then Dar es Salaam, Tanzania on 174 slot.

The last on list for EAC member states is Kampala on globe position 187. Other two members Burundi and South Sudan are not featured at all on the list of 209 cities in the world. At the tail is Windhoek, Namibia.

DAR ES SALAAM STOCK EXCHANGE ACTIVITIES SLOW DOWN AS YEAR END HOLIDAY SEASON BEGINS

The Dar es Salaam Stock Exchange (DSE) continued to experience the year end hangover after weakening by 61 percent to 198.59m/-last week compared to 512m/- posted on the preceding period.

According to the DSE weekly report, the volume of share traded increased to 262,598 compared to 101,809 of the previous week.

The weekly wrap-ups by Z an Securities shows TBL, CRDB, Swissport and DSE emerged the top trading equities that dominated the market during the week under review at 35 percent, 24 percent, 21 percent and 14 percent respectively.

None of the domestic equities appreciated or depreciated in value per share compared to last week. The total market capitalisation decreased by 2.22 percent, to close at 19.90tri/-while domestic market capitalisation remained constant at 8.15tri/-compared to last week.

PRESIDENT JOHN MAGUFULI TO OFFICIATE FIRST UHURU DAY GALA IN OFFICE

President John Magufuli.

President John Magufuli is expected to officiate at this year’s Independence Day celebrations on December 9, the first time since he assumed the presidency on November 5, 2015.

Dr Magufuli cancelled fanfares for his first Independence Day in office last year, serving the 4bn/- budget, which he directed to the expansion of a Dar es Salaam road.

The Minister of State in the Prime Minister’s Office, Policy, Parliamentary Affairs, Labour, Employment, Youth and Disabled, Ms Jenista Mhagama, said in a statement yesterday that the country will on Friday celebrate the 55th independence anniversary with pomp, colour and style at Uhuru Stadium in the city.

The minister said President Magufuli is scheduled to grace the celebrations, which will be coloured by various activities, including a military parade, choirs and traditional dances.

BANCABC LAUNCHES FESTIVE SEASON GIFT FOR CUSTOMERS

BancABC Head of Marketing and Treasury, Mr. Barton Mwasamengo (left), flanked by Head of Retail and Business Banking, Ms. Joyce Malai (right), speak to reporters during the  launch of a special festive season gift of up to 16 per cent interest upfront, on structured fixed deposit accounts in Dar es Salaam recently.

BancABC has launched a special festive season gift of up to 16 per cent interest upfront, on structured fixed deposit accounts.

Speaking in Dar es Salaam recently, the BancABC Head of Retail and Business Banking Mrs Joyce Malai said they are introducing an annual interest rate of up to 16 per cent for customers who will open fixed deposit accounts during December and will be paid upfront interest as a gift to use for all their festive needs while their principal amounts remain secure until maturity.

“This is the best offer in the market so far and we want to encourage our customers and even those who do not have accounts with us to take advantage of this festive season offer,” she said.

LONG-RANGE PLANES TO LIFT TOURISM IN TANZANIA

President John Magufuli looks at a catalogue displayed by Boeing Director of Sales, Jim Deboo at State House in Dar es Salaam yesterday.

President John Magufuli yesterday reaffirmed his willpower to acquire additional four aircrafts in efforts to introduce tourism supporting direct international flights.

Dr Magufuli, in his talks with Boeing’s Director of Sales Jim Deboo, said the government wants to buy three long-range aircrafts out of the envisaged four, adding that his administration was determined to acquire large planes from the US airplane manufacturer.

“We receive hardly two million tourists annually in Tanzania against other countries like Morocco that get over 12 million back-packers and this is mainly because we lack a vibrant national carrier to transport tourists directly from their countries.

Tanzania is among the five countries globally with attractive tourist attractions and yet tourists are forced to make flight connections through other countries before arriving here,” Dr Magufuli noted, regrettably.

FOREIGN CURRENCY EXCHANGE RATES, COURTESY OF NMB

VACANCIES - EAST AFRICAN DEVELOPMENT BANK

The East African Development Bank (EADB) is an international development finance institution that has been in existence for close to 50 years and has a diverse loan portfolio with more than 60% of its lending going to projects in health and education, finance and banking, construction and building, electricity and water, and agriculture, all of which are central to the current and future prosperity of the East African region and its people. The Bank is seeking competent, professional and experienced individuals, committed to the development of East Africa to take up the positions below.

• Senior Investment Officers – Project Appraisal
• Environmental and Social Management Specialist
• Procurement Officer
• Security Officer

Detailed job profiles and information can be accessed at www.eadb.org and www.adeptsystems.co.ke

How to Apply:

PRIVATE SECTOR TO SHAPE ECONOMIC PARTNERSHIP AGREEMENT (EPA) DEAL

Industry, Trade and Investments Minister Charles Mwijage.

The government will take the views of the private sector in deliberation of its position on the Economic Partnership Agreement (EPA) between the European Union (EU) and the East African Community (EAC), a cabinet minister has said.

Industry, Trade and Investments Minister Charles Mwijage told members of the private sector at the CEO Roundtable gala dinner in Dar es Salaam on Saturday that the government would take on board their views in reaching a position on the protracted negotiations of the trade deal with the EU.

“You will be invited when we deliberate on the government position on EPAs,” the minister told a number of heads of businesses at the 8th Annual gala dinner, which is a policy dialogue forum and a platform for captains of industry to engage with the government on the issues affecting the business environment in the country.

He said although the government did not consult them when it decided not to sign the trade deal, it had their interests at heart to make sure the local businesses were protected from any deal that may have negative impacts on them.

Leaders of the East African Community (EAC) postponed EPA with the EU when they met in Dar es Salaam in September and demanded more time to assess the impact of the agreements before the actual signing takes place.

MAJOR ENERGY FORUM BEGINS IN DAR TOMORROW

Dar es Salaam will host a stellar line up of participants active in Africa’s off grid energy space, to discuss opportunities for project partnerships at the Africa Energy Forum: Off the Grid conference which takes off tomorrow.

The conference comes to Dar es Salaam following a high interest in off grid ventures and technologies at this year’s Africa Energy Forum in London, as well as in-depth study of over 100 local community commissioners from across Kenya and Tanzania.

According to EnergyNet’s Managing Director, Simon Gosling, small scale renewable investors are already penetrating these markets in a far more dynamic and profitable way than ever before.

Involvement of companies such as Solar Turtle, PowerHive, Off- Grid Energy, Genesis Energy, M-Kopa, ShakeYourPower, Airon, Off Grid Electric and Zoetic Global is growing daily.

TANZANIA CEOs CALL FOR INCLUSIVE POLICIES AND DECISIONS

The Minister of Industry, Trade and Investment, Mr Charles Mwijage (right), answers journalists’ questions during the eighth CEO Roundtable of Tanzania (CEOrt) Annual Gala Dinner held in Dar es Salaam on Saturday. With him is CEOrt Chairman, Ali Mufuruki (left). 

In Summary

• Addressing the eighth CEOrt Annual Gala Dinner in Dar es Salaam on Saturday, the organisation’s chairman, Mr Ali Mufuruki, listed six issues of concern, including destabilisation of the financial sector in the wake of the banking sub-sector’s weak performance in recent months. 
• He said there was an urgent need for the government to convene a stakeholders’ meeting to discuss problems currently dogging the country’s financial sector. 

Dar es Salaam. The CEO Roundtable of Tanzania (CEOrt) has voiced its concern at what it says is the exclusion of the private sector from formulation and implementation of policies aimed at building an industrial economy.

Addressing the eighth CEOrt Annual Gala Dinner in Dar es Salaam on Saturday, the organisation’s chairman, Mr Ali Mufuruki, listed six issues of concern, including destabilisation of the financial sector in the wake of the banking sub-sector’s weak performance in recent months.

He said there was an urgent need for the government to convene a stakeholders’ meeting to discuss problems currently dogging the country’s financial sector.

“The government should not ignore this problem because it is the first time a major bank has declared a big loss. If destabilisation of the financial sector continues the industrialisation goal will never be attained.”

ETIHAD CELEBRATES A SUCCESSFUL YEAR IN TANZANIA

Grace Kijo, Etihad Airways Marketing Coordinator in Tanzania, hands outs chocolates to passengers as the airline celebrates its first year of operations in Tanzania.

Etihad Airways, the national airline of the United Arab Emirates, marks its first year of operations in Tanzania, as it continues to support the growing two-way flow of business and leisure travellers flying between Dar es Salaam and the UAE capital, Abu Dhabi.

Over 60,000 guests have flown with the airline on this route since it launched daily services linking both capital cities on 1 December 2015, with many passengers choosing to travel onwards over Etihad Airways’ hub to popular destinations in Europe and Asia.

The service is operated by a two-class Airbus A320 aircraft with 16 Business Class and 120 Economy Class seats. Dar es Salaam is the airline’s third departure point in East Africa, along with Nairobi in Kenya, and Entebbe in Uganda.

LOW-COST CARRIER FASTJET EXITS KENYA AFTER 11 MONTHS

Low cost carrier Fastjet has exited the Kenyan market after just 11 months of operation on low demand.

The UK budget airline will from Monday also suspend Dar es Salaam-Entebbe flights as well as between Victoria Falls in Zimbabwe and Johannesburg in South Africa for similar financial reasons.

Fastjet launched daily flights from Dar es Salaam and Kilimanjaro to the Jomo Kenyatta International Airport in Nairobi on January 11 at prices relatively lower than those offered by Kenya Airways and its associate Precision Air.

The budget carrier has faced a hard time on its Kenya routes and was soon after launch forced to end Kilimanjaro flights and reduce the Dar es Salaam ones to twice a week.

“After careful consideration of all possible options, Fastjet has regrettably made the difficult decision that a small number of route suspensions still needed to be effected,” Fastjet said in a statement.

“The specific routes to be suspended were chosen due to low passenger demand, as well as inefficient utilisation of Fastjet’s existing and planned aircraft fleet. They were not commercially viable in the present economic environments of both Tanzania and Zimbabwe.”

BUSINESSMAN CHARGED WITH SH1BN FRAUD

·   

•  Mr Hussein Shaban Ndama, who is a resident of Mbezi Beach, Dar es Salaam, before resident magistrate Victoria Nongwa denied the charges and was remanded in custody until December 13, when the case will come up for another mention. Public Posecutor Christopher Msigwa assisted by Leonard Chalo, alleged that, the accused committed the offences between February and March 2014 in Dar es Salaam.

Dar es Salaam. A prominent businessman, Mr Ndama Shaban Hussein, popularly known as “Ndama Mtoto wa Ng’ombe” was yesterday charged at the Kisutu Resident Magistrates’ Court with several counts, including forgery and over Sh1 billion money laundering.

Mr Hussein, who is from Mbezi Beach, Dar es Salaam, before resident magistrate Victoria Nongwa denied the charges and was remanded in custody until December 13, when the case will come up for another mention. Public Posecutor Christopher Msigwa assisted by Leonard Chalo, alleged that, the accused committed the offences between February and March 2014 in Dar es Salaam.

PRODUCTION STOPPAGE AT DANGOTE CEMENT

STANCHART TO CUT 10% OF CORPORATE, INSTITUTIONAL BANKING STAFF: SOURCES

Standard Chartered is set to cut about a tenth of its global corporate and institutional banking headcount, sources with direct knowledge of the matter said on Monday, as the bank steps up an aggressive drive to cut costs.

Standard Chartered Chief Executive Bill Winters this month branded the bank's income and profit unacceptable, as below-forecast third-quarter results underlined the challenges facing his overhaul.

The job cuts will be rolled out beginning this week across all the bank's major business centers including in Singapore and Hong Kong, one of the sources told Reuters. All the sources declined to be named as they were not authorized to speak to the media.

"We are making our corporate and institutional banking division more efficient," a Standard Chartered spokesman said, without revealing how many jobs are to be axed.

"Removing duplication in roles and managing our costs to protect planned investments in technology and people means that a small number of existing roles will be impacted."

It was not immediately clear how many employees the British bank has in its corporate and institutional banking division globally.

FASTJET SUSPENDS REGIONAL ROUTES AS IT STRUGGLES TO SURVIVE

FASTJET Tanzania has announced suspension of routes from Dar es Salaam to Entebbe in Uganda and Nairobi in Kenya, effective as of Monday next week.

The suspension of the routes is part of the company’s ongoing turnaround programme in pursuit of long term sustainable financial structures for its business in Tanzania.

The turnaround programme - under the guidance of recently appointed fastjet plc CEO, Nico Bezuidenhout - included a review of the fastjet fleet, both the size and type of aircraft operated, the frequency of flights on specific routes, as well as the actual routes flown.

Under the direction of fastjet management, the turnaround programme for fastjet is progressing well, with a reduction of operating costs and overheads, fleet realignment, and flight frequency on identified routes, all yielding financial benefits.

After careful consideration of all possible options, fastjet has regrettably made the difficult decision that a small number of route suspensions still needed to be effected.

The routes to be suspended were chosen due to low passenger demand, as well as inefficient utilisation of fastjet’s existing and planned aircraft fleet; and as such they were not commercially viable.

ZIMBABWE INTRODUCES 'BOND NOTES' TO EASE CASH CRUNCH

Nov 28 Zimbabwe launched a new currency on Monday, issuing $10 million of 'bond notes' that the authorities hope will ease a severe cash crunch but which critics fear will erase their savings less than a decade after a hyperinflationary economic meltdown.

The Reserve Bank of Zimbabwe (RBZ) first announced the plan in May to address chronic cash shortages and supplement the dwindling U.S. dollars that have been in circulation for the past seven years.

However, the announcement triggered a run on the banks as Zimbabweans tried to empty their accounts of hard currency.

The notes have also fuelled some of the largest protests in a decade against President Robert Mugabe, Zimbabwe's leader since independence 36 years ago, and led to suggestions they could cause the 92-year-old's downfall.

FOREIGN CURRENCY EXCHANGE RATES, COURTESY OF NMB

KENYA, UGANDA LAUNCH NORTHERN ECONOMIC CORRIDOR MASTER PLAN

NAIROBI - Kenya and Uganda on Monday launched the Northern Economic Corridor Master Plan that provides the blueprint for the development of infrastructure that interconnects the East African region.

Kenya's Ministry of Transport Infrastructure, Housing and Urban Development, Infrastructure Secretary Francis Gitau told a forum in Nairobi that the corridor will link Kenya's sea port of Mombasa to Uganda, Burundi, Democratic Republic of Congo and South Sudan.

"The Northern Economic Corridor has several large bottlenecks in logistics which cause inefficiency of logistics and therefore hinders growth in the region," Gitau said.

"The aim of the master plan is to ensure that landlocked countries that depend on Kenya's sea port can easily and conveniently access the rest of the world," Gitau said during the International Seminar on the Northern Economic Corridor.

PRESIDENTS MAGUFULI, LUNGU FOR VIBRANT TAZARA

President John Magufuli speaks after official talks with his guest, President Edgar Lungu of Zambia (right) at State House in Dar es Salaam on Monday.

President John Magufuli and his Zambian counterpart Edgar Lungu have vowed to transform the Tanzania Zambia Railway Authority (TAZARA) into business oriented and profit focused entity.

The two leaders have also resolved to work hard on increased efficiency at the Tanzania-Zambia Mafuta (TAZAMA) pipeline, directing their respective Attorney Generals (AGs) to meet immediately to look on the possibilities of making crucial and overdue amendments in all provisions that are seen as a stumbling block in the operations of the ailing railway authority.

Dr Magufuli and his guest met at State House on Monday for a closed door meeting before briefing the media, few minutes after their conversations. Mr Lungu who is expected to leave for Zambia on Tuesday, is in the country for a three-day state visit on the invitation of his host.

President Magufuli said the two Heads of State focused more on the future of the once strong but now crippled railway firm, concluding that poor management was among the critical problems bedevilling the company.

INDIAN CEMENT MANUFACTURER PLANS TO SET UP A NEW FACTORY IN BAGAMOYO

Bagamoyo. Cement makers should brace for cutthroat competition as an Indian cement manufacturer plans to set up a new factory in Bagamoyo, Coast Region.

Armed with a $150 million (about Sh320 billion at the prevailing exchange rate) investment, Lake Cement Limited – which is already manufacturing the product at its Kimbiji plant in Kigamboni District – says it has what it takes to do better in the market.

The company’s ‘Nyati Cement’ brand has been in the market for two years.

From its Kimbiji plant, the company is already manufacturing one million tonnes of cement per year which is sold countrywide and exported to Rwanda, Burundi and the Democratic Republic of Congo.

VODACOM TO ISSUE SH500BN SHARES

In Summary

The amount – the highest in the history of IPOs in Tanzania – will help to stimulate trading activities at the Dar es Salaam Stock Exchange (DSE) as the government seeks to build an inclusive economic growth.

Currently, the net asset value (NAV) for Vodacom Tanzania is estimated to be around Sh750 billion.

Dar es Salaam. Vodacom Tanzania Limited is to issue shares worth up to Sh500 billion in its planned initial public offer (IPO), The Citizen has reliably learnt.

The amount – the highest in the history of IPOs in Tanzania – will help to stimulate trading activities at the Dar es Salaam Stock Exchange (DSE) as the government seeks to build an inclusive economic growth.

Currently, the net asset value (NAV) for Vodacom Tanzania is estimated to be around Sh750 billion.

However, stock market experts are of the view that since Vodacom is a well established company, its actual value would be more than what is prescribed in the company’s Balance Sheet.

VODACOM PREPARES TO LIST ON DAR ES SALAAM STOCK EXCHANGE

Vodacom Tanzania Managing Director Ian Ferrao said in a statement yesterday that the company had submitted the draft prospectus and was ready to work with the regulators in preparation for the IPO. 

Dar es Salaam. Vodacom Tanzania has taken the first steps towards offloading 25 per cent of the company through an initial public offering (IPO).

Vodacom has submitted a prospectus to the Capital Markets and Securities Authority (CMSA) ahead of its envisaged listing at the Dar es Salaam Stock Exchange (DSE) as the telecommunications firm seeks to abide by the Electronic Postal and Communications Act, 2010.

Vodacom Tanzania managing director Ian Ferrao said in a statement yesterday that the company had submitted the draft prospectus and was ready to work with the regulators in preparation for the IPO.

“We are pleased to announce that we have filed our application and draft prospectus for consideration by the CMSA. This document sets out our proposals on the structure and timetable for the listing,” he said, adding that the company expected the draft prospectus to evolve over time.

ZAMBIA, CHAD LEADERS IN DAR ON STATE VISITS

In Summary

While Chadian President Idris Deby, who was the first to arrive, came for a two-day working visit as AU chairman, his Zambian counterpart Edgar Lungu is in the country for a three-day state visit.

Mr Deby, an incumbent chairman of the African Union, arrived at the Julius Nyerere International Airport (JNIA) at 2.55pm.

Dar es Salaam. President John Magufuli yesterday received two Heads of State who are in the country on official visists.

While Chadian President Idris Deby, who was the first to arrive, came for a two-day working visit as AU chairman, his Zambian counterpart Edgar Lungu is in the country for a three-day state visit.

Mr Deby, an incumbent chairman of the African Union , arrived at the Julius Nyerere International Airport (JNIA) at 2.55pm.

President Magufuli was accompanied by Vice President Samia Suluhu Hassan and Prime Minister Kassim Majaliwa.

There were also senior government officials, including Chief Secretary John Kijazi, the minister for Foreign Affairs and East African Cooperation, Dr Augustine Mahiga, and heads of security organs. He left the airport for his hotel accompanied by Mr Majaliwa.

The plane carrying President Lungu landed at the airport at 5.15pm and was received by his host Dr Magufuli, the Zambian High Commissioner to Tanzania, Ms Grace Mujuma, and senior government officials.

TOSHIBA LAUNCHES `GO AFRICA’ PROJECT IN TANZANIA

TOSHIBA has launched `Go Africa’ project to expand its storage business in the country.

Launching the project, Toshiba General Manager for Middle East and Africa Digital Products and Services, Mr Santosh Varghese Toshiba, has been investing on an average 6 per cent of their revenue in research and development for innovating new products and technologies.

“We are happy to be launching our ‘Go Africa’ initiatives in Tanzania to enhance customer experience for Toshiba storage products by offering the latest technology and product by empowering our channel partners with the necessary product and sales skills,” Mr Varghese said.

THERE’S ENOUGH LIQUIDITY: BOT CHIEF

 

In a speech at a bankers’ meeting here, Prof Ndulu said there was a vast amount of liquidity (cash) outside the banking system that was enough to enable banks to fulfil their role of “greasing” the growth of the private sector, which is the engine of the Tanzanian economy.

Arusha. Bank of Tanzania governor Benno Ndulu (pictured) yesterday advised bankers to work harder and attract deposits from customers and potential customers instead of depending excessively on public sector deposits.

In a speech at a bankers’ meeting here, Prof Ndulu said there was a vast amount of liquidity (cash) outside the banking system that was enough to enable banks to fulfil their role of “greasing” the growth of the private sector, which is the engine of the Tanzanian economy.

“Six out of every ten shillings held in cash is outside the banking system. 

Deposit drive would tap into that resource base for lending to those in need of credit and reduce the current excessive dependence on public sector deposits,” Prof Ndulu said yesterday.

Prof Ndulu’s advice to banks yesterday comes at a period when these institutions have reduced lending considerably, citing a liquidity crunch. Figures show that in the year ending September 2016, banks issued slightly more than a half of what they had issued to the private sector in the year that ended in September 2015.

JPM: WHY I SACKED THE TRA BOARD

President John Pombe Magufuli speaking when officiating the 31st graduation ceremony of the Open University of Tanzania (OUT) in Kibaha, Coast Region yesterday.

In Summary

• ·         Dr Magufuli made the revelation yesterday when officiating at the 31st graduation ceremony of the Open University of Tanzania (OUT) in Kibaha, Coast Region.
• ·         He said the board, chaired by Mr Bernard Mchomvu, authorised TRA to deposit money meant for the authority’s recurrent expenses in fixed deposit accounts in order to generate interest, which was to be shared among the agency’s top brass.

Kibaha. President John Magufuli dissolved the Tanzania Revenue Authority board (TRA) and sacked its chairman after the board approved the depositing of Sh26 billion in fixed deposit accounts in three different banks.

Dr Magufuli made the revelation yesterday when officiating at the 31st graduation ceremony of the Open University of Tanzania (OUT) in Kibaha, Coast Region.

He said the board, chaired by Mr Bernard Mchomvu, authorised TRA to deposit money meant for the authority’s recurrent expenses in fixed deposit accounts in order to generate interest, which was to be shared among the agency’s top brass.