BUSINESS

Mbeya businesses complain over high taxes on imported goods

Big business owners in Mbeya Region have threatened that they are not going to transport goods to Mbeya Region due to high taxation rate imposed on imported goods in the region.

They said taxes charged Tanzania Revenue Authority (TRA) in the region are so exorbitant in such a way that they surpass the price of the products.

Speaking to journalists on Sunday, the businessmen said they are tired with the TRA officers in the region who impose high taxes on imported goods, adding that was not the experience in other regions.

The practice also discourages us to import goods from neighbouring countries, they said.

Mbeya Region which is located in the south west of the country imports some products from neghbouring Zambia, Malawi and sometimes South Africa and Zimbabwe.

Giving an example, Protence Chrispin Mpora, a businessman from Mbeya Region said in January this year, he imported two vehicles from Malawi, adding that he was so expensively taxed that the amount even surpassed the purchase price.

The complaints come hardly a month after the Tanzania Investment Centre in South Western zone blamed TRA for undermining efforts by businessmen to invest in the area.

TIC Zone manager Daudi Riukanda speaking during a training seminar said ever since he arrived in the region, he has been receiving complaints over TRA officers performance from businessmen.

Responding, TRA regional manager Frank Mkwe said he was surprised by the complaints, particularly because the tax agency has been working to see that its operations with businesses are in decorum.

BUSINESS

Allocate special hunting zones to check species extinction, govt told

Hatari Lodge

The government has been told to review the issuing of hunting licences and if necessary stake out special hunting zones in view of the decreasing number of wild animals in many blocks.

The advice was given by Lt (rtd) Lepilal ole Moleiment, at Hatari Lodge on Saturday while presenting animal engravings carved by students of schools found near Arusha National Park (ANAPA) in a move to motivate them to protect wildlife and preserve the environment.

With its headquarters at Momela village bordering the park, Hatari Lodge deals with livestock keepers, game wardens and environmental presevation.

The retired Lieutenant said that some hunters were misusing given licences to kill animals, including pregnant females and young males, a practice which is not only prohibited by law, but also resulted in extinction of species.

He mentioned some of the disappearing species as gazelle, ostrich, rhino, antelope, duma, impala, thompson’s, grant’s, pongo, dama and dorcas.

He advised the government to devise special hunting zones, so that it could easily check against the malpractice instead of the current system where hunters are allowed to practice in any block.

Besides, he suggested that the government should introduce a syllabus in schools on wildlife management and environmental preservation, so that students are sensitised on the importance of conserving wildlife and the environment for the benefit of the coming generations.

''Tanzania is naturally an endowed country—with many wildlife and geographical diversity. These, unlike commodities such as oil, do not need factories to manufacture them. Wildlife have one more advantage, if well guarded, they will ever last,'' Moleiment observed.

For his part, Hatari Lodge managing director Marlies Gabriel, said his company has been cooperating with villagers living around the park to protect animals as well as the environment.

He said the firm works to educate Tanzanians, particularly, the youth on environmental preservation for the benefit of future generations.

Anapa director Domician Njau said they have been working together with the villages surrounding the park to check the poachers who invade the park.

Established in 1960, the park no longer has tuskers or rhinos because of poaching, he said.

BUSINESS

`Tanzania can become ICT hub by utilising competitive advantages`

Executive Director of the Tanzania Investment Centre, Emmanuel Ole Naiko

With a fully utilisation of the country’s competitive advantages, Tanzania can attract more investments and become a regional leader in Information and Communication Technology (ICT) sector.

This is according to Emmanuel Ole Naiko, Executive Director of the Tanzania Investment Centre (TIC) in his remarks during the Sixth International Conference on ICT for Development, Education and Training held in Dar es Salaam recently.

“With the combination of the other strength Tanzania has, we are able of attracting a lot of investments in this sector and Tanzania become their hub and convince them to set their head offices here,” Naiko said.

He said the Economic Agenda on ICT Development creates a win-win situation for investors and the country.

Talking on the competitive advantage Tanzania has over others, he mentioned a strategic geographical position and its connectivity to the global markets, a 44 million ha of arable land, agri-business, extractive industries, power generation, and tourism among others.

“To facilitate investments in all these sectors we have enacted enabling legislations and regulations,” he noted.

He explained that Tanzania has several ICT investment from various companies such as Seacom; Easy Cable and the National Cable, adding that along with them are telecom projects which have brought telecommunication facility which a few years ago was reserved for the haves only.

He said to date ICT projects registered by TIC have reached 133 projects between 1990 and 2010 or 2.2 percent of all projects registered by TIC. The ICT investment in Tanzania created a total investment of USD4,527m and employment of 32,600 people between 1990 and 2010.

Giving examples of countries that have done well by choosing ICT as the backbone of their economy Naiko pointed out Mauritius which started as a sugarcane economy in the 1970s moving to tourism in 1980s and 90s and is now an ICT economy.

“This decision has made wonders to the economy of Mauritius which reduced the Income Tax from 30 percent to 15 percent an act which widened tax base and tripled the tax collection,” he noted.

BUSINESS

Multichoice wants more women trained as dish installers

More than 400 local satellite dish installers have been trained by Multichoice Africa Limited for the past four years, but the firm keen in expanding its share in the local market wants more women trained on the trade.

Speaking at the opening of the satellite dish installers’ training in Dar es Salaam recently, Multichoice Tanzania Limited sales manager Salum S. Salum said for the past four years the number of installers has been on the increase.

“In the past we had a limited number of satellite dish installers which compelled us to introduce the training programme to local technicians,” he said.

The training has enabled the number of installers to increase and improved both the level of customer service as well as transfer of the new technology.

He said since the training programme was introduced more than 400 Tanzanians have been trained countrywide on how to install satellite dishes in homes, hotels and offices.

Those trained came from Arusha, Mwanza, Mbeya, Dodoma, Kondoa, Zanzibar, Mtwara and Dar es Salaam.

Highlighting the need for Tanzanian installers to undergo training and support, Salum said the technology has been constantly changing and improving.

Explaining further, he said the training was also introduced to improve services of Multichoice company and expand the installers’ network.

Through the training, 79 Tanzanians have been officially certified to be Digital Satellite Television (DSTV) satellite installers, he added.

“As you know satellite technology is always changing, so we have to make sure that we train more people to cater for our customers,” he said.

He also encouraged women to apply for the training which is provided free of charge.

“The number of women who apply for the training is very small compared to men and we are making deliberate efforts to increase it,” he said.

For their part, the course participants thanked the company for providing them training free of charge, saying it has improved their efficiency.

“This is my first time to attend this course. I learnt a lot of things which will help me in installing satellite dishes,” one of the participants, Francis Mwakalonge said.

Citing one development, he said a newer decoder model using HD-PVR technology (High Definition Personal Video Recorder) is now also used.

Another participant, Hosea Mwainyekule, urged women to study science subjects which would enable them to become good satellite dish installers.

Citing an example, he said the number of women satellite dish installers in South Africa is bigger than that of men, hence it helps them in earning more from the trade.

Multichoice Africa which manages DSTV services has its headquarters in South Africa and has operations in 48 African countries.

Its branch in Tanzania manages subscription services for DSTV and facilitates the training of certified installers as one part of a wider programme to improve customer experience for Tanzanians.

The new installers expect to be busy in the coming months as DSTV launches new channels and customers take advantage of discounted offers.

BUSINESS

Devise better strategy to lure domestic tourists - call

Ngorongoro Crater

Regional and districts tourism officers have been blamed for failure to come up with a comprehensive tourism strategy to attract domestic visitors, who are said to be potentially many.

Risasi Mwaulanga of Universal Peace Federation, who recently toured wide range of tourist attractions Ngorongoro Crater, Manyara, Olduvai Gorge, Snake Park, Arusha National Park and those in Singida and Iringa region observed that many tourism officers are not creative enough to attract visitors, particularly the local ones.

“Tourism officers in Iringa and Singida regions are not creative. They don’t play their roles accordingly, thus deny local visitors to build the culture of visiting the tourist attractions,” he said.

Apart from that they don’t organise seminars or promotional campaigns to educate people on the sector and how they could benefit from this, he said.

“Most of them don’t undertake special tourism campaigns in their respective areas to attract local communities to explore the country’s exceptional blend of scenery of wildlife and human culture,” he added.

He said most of them spend much of their time in offices, while much of their work is supposed to be done outside of the office.

“Instead of depending on foreign tourists they should also make some efforts to sensitise local visitors, who also know little about the attractions, he said.

Their work is necessary because that is the support the government needs in order to expand the local market, and hence add more to the country’s GDP, he observed.

He said although the tourist board and the ministry of tourism have intensified efforts to attract more visitors of recent, still there are many Tanzanians who do not know how rich their country is in terms of tourism, he said.

“As experts engaged in this sector play your role accordingly give them clear information on the tourist attractions that we have so that they can visit, help TTB to market Tanzania as a tourist destination in the world and make tourist agencies to be specialists for destination Tanzania,” he said.

With 17.2 per cent contribution to the GDP, tourism is booming at present. Tanzania has always stressed for quality tourism that hinges much on the safari experience whereby land and wildlife conservation considered most rather than looking for mass tourism.

“Being the largest country in East Africa, Tanzania can accommodate increased numbers of travellers and still maintain the prevailing high standards of ecological conservation,” he observed.

Approximately 25 per cent of Tanzania’s land is protected by the government, while the country boasts 15 national parks and 32 game reserves and it is the home of the tallest mountain in Africa, the legendary Mt Kilimanjaro and sensational islands of Zanzibar.

BUSINESS

NMB now leading in terms of profit

NMB Board Chairman Misheck Ngatunga (C) opening the bank`s annual general meeting in Dar es Salaam at the weekend.

The National Microfinance Bank (NMB) annual general meeting at the weekend was all smiles after the shareholders approved 18bn/- to be given to them as dividends. Each share is worth 36/-.

The NMB Board Chairman Misheck Ngatunga, speaking to shareholders said the bank did very well last year despite threats, including the global economic crunch, adding that its profit rose to 53.9bn/-.

The bank remitted 25bn/- to the government in tax payment, he said, adding that they are looking forward to a brighter future.

Strong loans and advances, customer deposits and transactional volumes growth were the main contributors to the bank’s good results, the chairman stated.

He said NMB’s earning per share improved from 95.10/- in 2009 to 107.96/- in 2010.

In that respect the annual general meeting approved a dividend of 36/- per share, or a total amount of 18bn/-, up by 15 per cent over 2009 for its shareholders.

He said, the bank will continue to further improve customer service through all its channels, while continuing to control costs and mange credit and other risks prudently with a view to improving on its performance , both operationally and financially. He added that the bank will continue to invest in technology and cut over to a new core system in the course of this year.

“While the outlook remains favourable, the bank’s future performance remains dependent on interest rate developments and competitive pressures while the risk of adverse developments on loan portifolios is an inherent part of our business,” he concluded.

For his part, the bank’s Chief Executive Officer Mark Wiessing said with 19 percent market share and a loan portfolio of 16 per cent, the prospects of the bank are encouragin, thanks to the bank’s efforts made to reach out to the people.

He said the bank is now the leader in the country in terms of profit, but added that profits should not be the only thing to rely on to sustain a financial institution.

Reacting to journalists question on a report to the bank’s third annual general meeting since it was listed on the Dar es Salaam Stock Exchange in 2008 Wiessing said the year 2010 was “another notable year for NMB”.

“We have produced good financial results and continue with the strategy to provide affordable banking services to the Tanzanian population, in rural as well as in urban areas, and to key segments of the economy,” he said.

Earlier, Wiessing highlighted the growth of the branch network from 100 to almost 140 branches and the launch of Automatic Teller Money with now over one million cards in circulation.

He said the growth of the customer base from 600,000 to 1.4 million, the ATM network from nil to over 400 machines nationwide, the pioneering launch of NMB mobile with over 400,000 active mobile banking customers and the recent launch of Pesa Fasta (card less ATM service) reaching out to the unbanked factored into the bank’s success last year.

He clarified that they operated in a favorable economic environment, with GDP for 2010 growing at around 7 per cent, while inflation remained in the 5 to 6 per cent range.

“In the money markets, Treasury bond rates remained on the low side; despite the adverse impact of reducing market interest rates, the bank’s profit before tax has grown to 78bn/-, and its profit after tax reached 54bn/-” he noted.

BUSINESS

High tariffs on timber force furniture makers to import materials

Investors in the furniture making industry have started importing timber and other raw materials from Mozambique, Gabon, Democratic Republic of Congo and Ivory Coast to avoid high tariff charged on local timber.

Speaking in Dar es Salaam yesterday at a meeting with the Parliamentary Committee on Industry and Trade, they called on the government to review tariff charges on wood and other forest products which have now doubled by 300 percent.

They said that operating the industries using imported wood is even cheaper than using timber harvested locally.

Issa Rwabusimbi, Director of Maridadi Timberworks, who represented other stakeholders, said the cost of importing timber is between USD500 and USD600 per cubic meter, while the government sells hardwood First Grade at between USD800 and USD1000 per cubic meter.

Rwabusimbi advised the government to reduce tariff charges to 80,000/- per cubic meter as it was the case in the previous years.

He said the move would help them to penetrate the international market and create more employment locally.

“Due to high tariff, most of the carpentry factories have been closed whereby more than 400 workers have been retrenched since 2009.

“We would like the government to increase excise duty on imported furniture so as to protect the local wood using industries,” he said.

According to him, most furniture making industries taken by investors from the Tanzania Wood Industry Cooperation (TWICO) have become dysfunctional.

He mentioned them as Sawmill in Morogoro, Sawmill Co ltd in Tanga, Mingoyo Sawmill Company Limited in Lindi, Tabora Misitu, Sikh Sawmill (Tanzania) Limited in Tanga and Kili-Timber in Moshi.

Parliamentary Committee on Industry and Trade, Mahmoud Mgimwa chairman speaking at the occasion said the increase in levy has resulted in the mushrooming of illegal businesses.

He said despite the government ban on forest products exportation, still dishonest businesspeople have been exporting them through illegal (panya) routes.

Mgimwa, who is also the MP for Mufindi North, said his committee will meet with ministers of Natural Resources and Tourism; Industry, Trade and Market and Finance on the matter.

“We are going to discuss these problems with the ministers, we love our industries and we have the obligation to preserve them,” he said.

Committee vice-chairperson Stella Manyanya, however, said that responsible authorities should avoid bureaucracy to facilitate availability of raw materials. She said the government should be extra careful in handling forest industry products, because they help create employment to Tanzanian youths.

BUSINESS

Address missing link in `Kilimo Kwanza` - tool impoters

Most farmers, particularly those in rural areas are not likely to benefit from Kilimo Kwanza, if serious steps will not be taken to make them aware of the programme needs.

This was revealed on Friday by Anver Rajpar, an agricultural implements importer, who was speaking during a symposium on Kilimo Kwanza (Agriculture First). The symposium was organised by Tanzania-India Friendship Association (TIFA).

“There is need for the government to support these people because they are the ones who will bear the brunt of agricultural transformation,” he said.

Also it is estimated that 80 per cent of Tanzania’s population lives in the rural areas and it is engaged in farming activities.

Apart from that majority of them don’t have enough capital to purchase farming tools, are not familiar with the benefits of the new farming and they do not have mechanical and farming equipment like tractors to work with them, he said.

Although the government has already encouraged importation of tractors, tillers and other farming equipment by waving the duty, but presently machinery spare parts are not duty free, he noted.

“As government and stakeholders engaged in this sector, we need to help these farmers so that they can benefit from farming, achieve food self-sufficiency for sustained stability and development as well as change their mindset and produce value added exports,” he said.

Although private firms have managed to clear their goods from ports in reasonable time, semi-autonomous bodies have not, he said, noting that in such circumstance it is difficult to help these people move from outdated farming to modern farming

He also noted that although district councils have bought power tillers, presently many of them have not yet been distributed to farmers in many parts of the country, he said noting that more efforts ought to be put in this area.

“As businessmen we thank the Indian government for the assistance,” he said, adding, “although India has supported Tanzania to meet its plans, these tractors are yet to reach the farmers and I understand that this is due to mismanagement or negligence of the importer.”

He said: “It is sad to see that those tractors are lying at the port area uncleared since October 2010, incurring heavy charges.”

“Perhaps, the High Commissioner of India may find it necessary to take an interest and assist the authorities in ensuring that something is done to facilitate their clearance without any further delay,” he said.

He also noted that although the government encourages agriculture through Kilimo Kwanza, still farmers are at the mercy of rain seasons which are at best unreliable.

Due to this, more efforts are needed to have proper irritation systems and water preservation methods so that farmers can embark on agricultural activities more effectively.

“Zimbabwe is a good example of this, Tanzania can learn from this and other countries,” he said.

The government should also put in place banking institution such as the agricultural bank to support farmers who are facing problems of capital, he said.

COLUMNIST

Pregnant women bear the brunt of Mpiji River floods

This week Gerald Kitabu interviewed, Ali Masesa, the ruling Chama Cha Mapinduzi party economic affairs leader for Pangani Ward, Kibaha District, on Mpiji River floods which killed people recently. Excerpts:

QUESTION: When did you start experiencing floods?

ANSWER: Quite long, but this year has been the worst. In fact, this year’s rains have caused more havoc compared to the past. The ward lost a woman in the name of Cesilia Thomas Kipengele after she drowned in Mpiji River. Her body was found lying along the river bank four days later. She was discovered by her son.

A student of Mpiji Magohe Secondary School in Kinondoni district, Ali Kudra, escaped death after drowning in the same river. He was rescued. Sometimes when you wake up early in the morning, you would see some clothes, bags of charcoal and bicycles floating on the river, an indication that some other people outside Pangani Ward may have been affected by the flooding river.

Q: Who are the other people affected by the floods apart from students?

A: The other risky group is pregnant women. As you can see, we don’t have a single dispensary in our area; all health services are found at Magohe in Kinondoni District. There are incidents where some women have been forced to deliver by the river side due to heavy floods.

Q: Can you name them?

A: They are Salima Hamad, Amina Said and Grace Ludgell just to name a few. All are residents of Pangani. They delivered at different occasions after all means to ferry them to Magohe dispensary failed.

Q: Why don’t you go to Kibaha town for your daily needs and other social services?

A: Mpiji River separates Kibaha and Kinondoni districts. Although this ward is located in Kibaha District, it is easier for the residents to get services at Magohe in Kinondoni District which is quite near than Kibaha -- more than 12 kilometres away. That’s why Pangani Ward residents find it easier to get their social services at Magohe in Kinondoni.

Q: What is the population of Pangani ward?

A: The ward has more than 140,000 residents according to the last census, and many more people are still coming in to live here. During heavy rains sometimes the river harbours crocodiles.

Q: What steps have you taken?

A: We’ve several times asked government to build a permanent bridge for us but our efforts haven’t paid off. All relevant authorities are aware of this problem including the Kibaha Urban Member of Parliament. During campaigns in the last year’s general election, the MP promised to build a bridge. So far, the promise remains unfulfilled.

Q: What is your call?

A: I call upon government and other stakeholders to build the Mpiji River bridge because we’re losing lives during the rain season. We also need the bridge to ease transport problems.

NEWS

Pyrethrum has ready market in the US - board

Residents of Njombe District have been urged to cultivate more pyrethrum now that the government has improved access to international markets for this lucrative cash crop.

The call was made on Friday by Pyrethrum Board chairman Dr Binilith Mahenge at a rally held at Mabehewani in Makete District following questions from farmers.

The farmers had wanted to know how reliable the crop was as a source of income.

“Medicine to control various disease agents, including malaria parasites, and other pesticides all require pyrethrum as raw material,” Mahenge said.

He went on, “Cultivate the crop in large quantities; you’ll overcome poverty and enhance your living standards (as) there is a ready market.”

According to the chairman, US-based pesticide manufacturer McLaughlin Gormley King (MGK) alone has a strategy to buy 80 percent of global pyrethrum, providing a sure market for Tanzanian farmers, among others.

He said that financial institutions are willing to support pyrethrum farmers as they sit on a very valuable asset.

“People are ready to invest in pyrethrum, banks are ready to offer you loans,” Mahenge said, adding that these institutions will provide farmers with assistance provided they put their farms up as collateral.

Earlier, speaking to agents from Iringa and Mbeya, Mufindi Pyrethrum Factory manager Martin Oweka, said during the 2010/2011 agricultural season, his factory spent over 300m/- distributing pyrethrum seeds to farmers across the country.