The World Bank Board has today approved an International Development Association (IDA) credit of $100m as direct budget support to improve Tanzania's investment climate and promote shared growth through sound public finance management. - According to a statement emailed to BusinesslinkTZ.blogspot.com, the Ninth Poverty Reduction Support Credit (PRSC-9) is the first in a series of three annual operations (PRSC-9/11) supporting the implementation of Tanzania's Second National Strategy for Growth and Reduction of Poverty (known as MKUKUTA II), complemented by the first Five Year Development Plan. "The new PRSC series is a very practical and convenient way to Tanzania's g…

The World Bank has approved an additional financing of $59 million to support the improvement of Tanzania's transport infrastructure. This is in addition to the original amount of $270 m that was approved for the Transport Sector Support Project (TSSP) in May 2010. - According to John Murray McIntire, the World Bank Country Director for Tanzania, Uganda, and Burundi, the institution’s support was in line with accelerating growth and welfare improvement. “We are pleased to continue supporting the transport sector, which remains an impediment to accelerating growth and welfare improvement in Tanzania “This additional financing is proof of our shared commitment to …

The World Bank's Board of Executive Directors has approved an additional International Development Association credit (IDA) worth $27.88m to support Tanzania's Energy Development and Expansion Project (TEDAP). - The support comes a few days after a 16 hour (per day) power rationing scheme that hit the country a few weeks causing tension among the business community mostly the small and Medium Enterprises (SMEs). According to the World Bank’s Africa Infrastructure Diagnostic study, load shedding and emergency generation cost Tanzania over five percent of the Gross Domestic Product (GDP) with the burden hitting hard on the private sector. Speaking to reporters in Dar es …

Fifty per cent of Tanzanians do not know their HIV/AIDS status, the Chairperson of the Tanzania Commission for AIDS (TACAIDS) Fatuma Mrisho said. The country with a population of over 40 million people officially launched the National HIV testing campaign in 2007 with an intention of seeing more people test for their statuses in the country's initiative of zero tolerance to HIV/AIDS. - Research has, however, shown that voluntary testing has been failed by men who have resorted to using their wives as HIV/AIDS test kits in knowing their statuses with many depending on results given to their wives upon starting antenatal clinics. According to Mrisho, the country needs a 1.1 trillion …

Tanzania inflation rate has continued to take an upward trend this time rising to 8.6 percent for the month of April as compared to an eight percent inflation that was recorded the month before. According to the consumer Price Index (CPI) report released by the National Bureau of Standards (NBS), food and fuel price have continued to exert pressure on the country’s inflation. - The Bureau of Standards is, however, optimistic that the situation will soon normalize with the start of the harvest season that is expected to fall soon during the end of this month. Speaking during the release of the report on Monday, the NBS Director of Population Ephraim Kwesigabo said the increase in…

Oil is the most traded commodity, with world exports averaging to US$1.8 trillion annually during 2007 - 09 roughly 10 percent of total world exports in that period. This means declining oil availability typically reflects technological and geological constraints. - Tanzanians and East Africans at large will have to dig deeper into their pockets thus falling into extreme poverty following the increase of various fuel products to a historic high across the region. A litre of fuel in many parts of East Africa’s biggest country, Tanzania is presently selling beyond Tsh 2000 ( 1USD =1460 Tsh). The Tanzanian National Bureau of Standards (NBS) in its March Consumer Price Index (CPI) repor…

- By GEOFFREY NANGAI THE Tanzanian Parliamentary Select Committee on Lands, Natural Resources and Environment has called for punitive action against the Minister for Tourism and National Resources, Ezekiel Maige for his alleged involvement in the controversial sale of two giraffes and mishandling of distribution of hunting blocks last year. Reading the statement of the committee’s performance report between April 2011 and April this year, the team’s chairman, James Lembeli also urged the Government to take disciplinary actions against the Former Permanent Secretary, Dr Ladislaus Komba for issuing a hunting permit to the Jungle International company to transport the animals (nat…

- By Geoffrey Nangai THE East African Community will at the end of this month officially launch the Medicines Registration Harmonization (EAC-MRH) Project that will ensure access to medicines of assured quality across the region. The project, to cost $10m, is part of the African Medicines Regulatory Harmonization (AMRH) Programme which came into being three years ago that aims at ensuring quality, efficacy and safety of medicines by collaborating with nine Regional Economic Communities (RECs) and 40 National Medicines Regulatory Authorities to create a simplified and transparent regulatory system. Speaking ahead of the official launch that will be held at Ngurdoto Mountain Lodge and Golf…

- BY GEOFFREY NANGAI FUEL and food prices have for the tenth month in a row pushed the country’s inflation this time rising to 14.1 percent according to the latest figures by the country’s statistics body yesterday. Inflation in July however stood at 13 percent in July drawing sentiments from politicians and economic analysts with a cross section of people calling for Government’s direct intervention to save the situation. The country’s Inflation recorded double digit figures in June for the first time since January last year but analysts predict that the figures may rise further in the coming months. According to a statement by the National Bureau of Stan…

- BY GEOFFREY NANGAI STANBIC bank has announced that it will now begin to trading Chinese currency Renminbi in a bid to facilitate the increasing trading opportunities between Africa and China. Records indicate that the Chinese Renminbi (RMB; currency sign: ¥) is poised to become the world's reserve currency in the 21st century. The RMB has currently given a platform to both traders and suppliers in China to trade in one currency that gives them better negotiation opportunities with suppliers in China. According to a statement availed to this paper by the Stanbic Bank Tanzania Head of Global Markets Zainul Chandoo “China is already the world's biggest exporter and s…

- Report: EAC could match Japan in doing business BY GEOFFREY NANGAI EAST African states could match Japan in the ease of doing business, if the region’s business regulations and procedures are implemented across the board, according to the IFC -World Bank report launched yesterday. The EAC countries that include Rwanda, Kenya, Uganda, Tanzania and Burundi ranked in the 58th, 98th 122nd 128th and 181st globally respectively in the Doing Business report 2011. The report dubbed, ‘Doing Business in the East African Community 2011,’ that takes a detailed look at business regulations in Burundi, Kenya, Rwanda, Tanzania, and Uganda notes that East African Countries co…

- Tanzania’s inflation hits 13pct BY GEOFFREY NANGAI HIGH fuel and food prices have continue to exert pressure on the Tanzania’s economy for the ninth consecutive months now with the July statistics released by the National Bureau of Statistics (NBS) yesterday indicating a further increase to 13 percent. Tanzania’s inflation jumped to double digits in June settling at 13 percent but authorities maintained that the situation would normalize following the harvest period. The new inflationary figures come out just a day after the Energy and Water Utilities Regulatory Authority (EWURA) announced an increase in the prices of petrol, diesel and kerosene attributing the increa…

- BY GEOFFREY NANGAI THE Tanzanian Government has secured a $250m seven-year loan facility from a consortium of local and global financiers, led by Stanbic Bank Tanzania that will be used to fund development projects such as road and rural electrification. This may be good news to the Infrastructure Ministry that risked rejection of the ministry’s 2011/12 budget last week as Government through the Prime Minister Mizengo Pinda stepped in and announced injection of an additional 95bn/-funding. Speaking during the signing ceremony for the loan facility agreement in Dar-es-Salaam yesterday, the Minister for Finance Mustafa Mkulo said “The deal is a first of its kind for…

- BY GEOFFREY NANGAI TANZANIA has finally agreed to sell its 50 percent stake in British Petroleum (BP) to Puma Energy, a subsidiary of Dutch commodity trader Trafigura according the country’s Fair Completion Commission (FCC). The Puma Energy Corporate Affairs Manager Mark Eadie however told a press conference last year during a visit to intensify talks with the Tanzanian Government on the company’s acquisition of BP Tanzania that re-branding of BP to Puma Energy would be done six months after the sealing of the acquisition deal. Eadie however maintained that there would be no job losses during the company’s take over of BP Tanzania on grounds that the company had…

- BY GEOFFREY NANGAI THE Tanzania telecommunication sector is set to introduce a system of Mobile Number Portability geared towards improving efficiency in the sector that will be implemented towards the end of this year, the Tanzania Communications Regulatory Authority (TCRA) has said. The system will put pressure on telecoms to improve their quality of service and firm up their value added services to attract and retain new subscribers. Number portability allows users to change their mobile phone service providers without losing their phone numbers with mobile consumers required to inform their current and new operator of their intention to switch. The subscriber will be required to s…

- REPORT: Tanzania among Africa’s fastest growing economies BY GEOFFREY NANGAI TANZANIA has notched a place in the top ten fast growing nations on the African continent according to the new African Economic Outlook (AEO) launched in Dar es Salaam yesterday. The report that cited declining performance in North Africa where there are political uncertainties predicted Tanzania’s economy to grow at 6.9 percent in 2011 and 7.3 percent next year. President Jakaya Kikwete predicted in May this year that the country’s economy would grow by between 8 percent and 10 percent annually over the next five years citing country’s five years development plan. “Our…

- Tanzania inflation hits double digits in June BY GEOFFREY NANGAI HIGH fuel and food prices have continued to exert pressure Tanzania's inflation for eight consecutive months with the latest National Bureau of Statistics figures released yesterday the figures to have crossed double digit. The statistics body during the release of the June Consumer Price Index (CPI) indicated that the country's year-on-year inflation stood at 10.9 percent from 9.7 percent that was reported in May. Economic experts had however warned in the past that the country's inflation may cross double digits if Government does not react. According to NBS, food and non-alcoholic beverages inflation r…

- Tanzania’s sick health systems as MDG target draw near By Geoffrey Nangai 4O year - old Sofia Elinalo a resident of Uyogo village in Kahama District, Shinyanga region will never forget the day she was dismissed from the area’s dispensary because it did not have adequate facilities. This was shortly after she made it to the Uyogo dispensary located over 12 km from her home place. Elinalo after going through severe labor pains was ferried to Uyogo dispensary that caters for over six villages that include Manungu, Kalama, Mitonga, Ngunga, Uyogo and Bugoshi by his husband on a bicycle thinking the dispensary could be the best option for her 15th born. No doubt…

- Why the 2011/2012 Tanzanian Budget did not have much for the common man Given the fact that the many of the employed have a single income, lowering PAYE in this year’s financial year budget would bring a lot of life and meaning to the common man hence improving the cost of living. BY GEOFFREY NANGAI IT is exactly a week today after the reading of what was perceived to be a colorful budget by the Tanzanian Finance and Economic Affairs Mustapha Mkulo. Mkulo during the reading of the budget last week said the 2011/2012 budget would continue improving domestic tax administration, improve investment climate to attract local and foreign investors and develop private sector p…

- Alarm as Tanzania's inflation hits 9.7percent BY GEOFFREY NANGAI RISING food and fuel prices have continued to put pressure on the country's year-on-year inflation rising with the latest figures released by the National Bureau of Standards (NBS) yesterday indicating an upward trend of the country's inflation to 9.7 percent in May as compared to 8.6 percent that was recorded in April. The East African country's inflation has been increasing for the last seven months with economic analysts warning that the figures may soon cross to double digits. The Tanzanian Government is alarmed by the increasing figures and has vowed to put in place the necessary control mea…

- Need for an independent oversight body on corruption BY GEOFFREY NANGAI POLITICAL analysts have called for the formation of an independent oversight body that will help to over see operations of Tanzania's Prevention and Combating of Corruption Bureau (PCCB) in a bid to win the fight against corruption. Speaking during the African Peer Review Mechanism (APRM TANZANIA) Technical Experts Workshop that was held in Dar es Salaam on Friday, Dr.Mohammed Bakari a lecturer of Political Science at the University of Dar es Salaam (UDSM) said corruption cases are at times not prosecuted because of the conflict of interest between the PCCB and the Director of Public Prosecution (DPP). “…

- World Bank in favour of sale of Tanzania’s national airline BY Geoffrey Nangai THE World Bank has supported the sale of the country’s national flag carrier, Air Tanzania Corporation Limited (ATCL) saying this would be the only option especially at this time when the corporation is non functional. The World Bank Country Director for Tanzania, Uganda and Burundi John McIntire during a meeting with journalists this week said “The country’s flag carrier has had no regular flights. It cannot even satisfy the domestic service delivery. Government has to let ATCL disappear just like it has been for other unsuccessful airlines across the world have done. …

- 2011/2012 Tanzania budget exempts tax on agricultural machinery By Geoffrey Nangai THE Tanzanian Minister for Finance and Economic Planning Mustapha Mkulo yesterday presented the 2011/2012 that may be a relief to the country. This year’s budget comes at a time when the country’s inflation has increased to 8 percent according to the country’s latest figures from the National Bureau of Standards (NBS) sparking tension among various nationals. The situation has even been worse for the country’s fuel supply with a litre of petrol and diesel rising to a record 2000/- mark in the last six months. During the presentation of the 11.9 1trillion budget yester…

- The 2011/2012 should centre on improving business enviroment,says Tanzania's private sector BY GEOFFREY NANGAI AS the country braces for the 2011/2012 Budget reading this wednesday, the private sector’s biggest dream would be to see the budget address issues related to improving doing business in Tanzania. The Tanzania Private Sector Foundation Executive Director Dr.Evans Rweikiza during a telephone yesterday said, the high costs of doing business has a direct impact on investements, trade and the country’s competitiveness in relation to other countries within the region. The 2011 Doing Business Report 2011 released by the World Bank a few months ago ranked Tanzania…

- Tanzania’s state - run Power Company to be divided into three entities BY GEOFFREY NANGAI GOVERNMENT has finally agreed to divide the Tanzania Electric Supply Company (TANESCO) into three different entities that will be responsible for generation, transmission and distribution it has been confirmed. According to the Acting Commissioner for Energy and Petroleum Affairs in the Ministry of Energy and Minerals Theophillo Buahea, the initiative is geared towards the institution’s competitiveness and service delivery. Buahea who failed to decline on when the initiative was to start added that the three entities would be put at an Initial Public Offering (IPO) at a later d…

- Tanzania's EPZA in search for potential energy investors as power blues begin to bite By Geoffrey Nangai WITH a 16- hr power rationing scheme announced by the state-run power company, Tanzania Electric Supply Company (TANESCO) starting to bite, the country’s Export Processing Zones Authority (EPZA) is in search of would - be investors in the energy sector to complement production activities in various export processing zones, the EPZA Investment Facilitation Manager Lamau Mpolo said. The 16 - hour power cuts that kicked off on Thursday following shortfall of about 350 megawatts (MW) on the national grid has already increased production costs for various industries since…

- Tanzania’s NGos up on arms against GMO pressure BY GEOFFREY NANGAI THE Tanzania Alliance for Biodiversity (TABIO) in collaboration with other international Non Governmental Organisations (NGOs) have called upon the Tanzanian Government to resist pressure by Genetically Modified Organisms’ (GMO) campaigners to remove safety legislation. This comes amidst reports by some NGOs that Government is under pressure to relax biosafety regulations and guidelines thus abandoning the precautionary principle of reducing the liability of seed companies in case of harm, loss or damage to the environment. The Water Efficient Maize for Africa (WEMA) has already expressed interest of investi…

- DO we need price controls to check the increasing food prices? BY GEOFFREY NANGAI THE prices of various food items in various African countries and the world as a whole have been escalating sparking tension in recent months. According to the recently released International Monetary Fund (IMF) Sub-Saharan Africa World Economic Out look, food prices in countries that include Ethiopia, Guinea, Kenya, Sierraleon and Kenya among others have increased sharply. Tanzania has not been spared though. The country’s inflation rate has continued to take an upward trend this time rising to 8.6 percent for the month of April as compared to an 8 percent inflation that was recorded in March. A…

- Samsung profits up by 31pct BY GEOFFREY NANGAI, NAIROBI SAMSUNG recorded a $ 135.8bn revenue globally last year with the African continent accounting for $1.23bn roughly an increase of 31 percent in the company’s profits as compared to the 2009 financial year the company said yesterday. The company is however committed to becoming a $ 10bn investment company come 2016 the company’s Chief Operating Officer (Africa) George Ferreira said. “This is our objective for this continent. We are just getting started, our vision is bold intend to build our business every year. “This means we have to double our revenue every year between now and 2005,” he said. Spea…