SAUT Business Times July, 2012 www.saut.ac.tz SAUT Business Times

ISSN 000-000 No. 01 ports News News Feature Data capture device damages Government calls on fishermen Need to curb fish depletion in local revenue to form co-operative society Lake Victoria

Pg. 2 Pg. 3 Pg. 6 Fish stock depletion tea faces stiff needs concerted competition in EA By DICKSON NG’HILY Ministry of Agriculture, Food Security and efforts Cooperatives for approval anzania tea is unlikely to lead the Mombasa “We have just finished our meeting with weekly tea auction, despite an increased By DEUS BUGAYWA stakeholders in the industry, and after being done with by 46 percent of the country’s tea packages you, we will be visited by Rungwe district sold last month. he government and other players need to T commissioner to discuss some issues concerning tea Statistics available at Africa Tea Brokers take decisive measures to address a sub sector, since Rungwe is a major tea producer in Limited (ATB) indicates that Tanzania made an offer relentless decrease of fish stock in the the country,” Assenga said. of about 420 tones (equivalents 8353 packages), Lake Victoria basin. According to the TBT boss, tea growers and T whereby 388 tones (equivalents 7752 packages) Officials say that although there has in recent past other stakeholders in the tea industry are yet to enjoy were sold, leaving behind 7 percent of the package been a slight increase of the Nile Perch stock in the tea development and marketing strategy that is to offered unsold. Lake, notably from 227,305 in 2008 to to 324, be implemented in the near future is expected to The market, however, does not favor 391 over the last year, yet more needs to be done increase employment in the sub-sector as well as Tanzania tea due to the fact that the auction settings to addressing the situation. Reliable sources indicate country’s foreign earnings. which include the lodging of 10/-m deposits and a that in the year 1999, for example, the Nile Perch Speaking over the phone, Salome requirement to invest in warehousing yet with no stock stood at 1.2 tones, but for the past ten years, Mwambigija a small farmer from Rugwe said that guarantee of future licensing of operations, favor it has been constantly dwindling up to 227, 305 they are not certain of the crop’s future as they are Kenyan tea. tons. not earning much yet the production has been Though tea is economically important for Speaking to fish stakeholders in Mwanza increasing” Tanzania, the country produces less than 1 percent just a few weeks ago, the Minister for Livestock “Tea blenders are telling us that our tea is not (25,000 tons) of estimated world tea production of and Fishery Development Dr David Mathayo of quality and if that is the truth then we need the 3 million tons. attributed the situation to over fishing, environmental government to intervene, “she said. “Tea board of Three months ago, Tanzania and Malawi degradation,, and illegal fishing. “The Ministry has Tanzania should help us because our lives depend on threatened to withdraw their supplies from Mombasa not failed, what we are insisting now is for all the crop.” auction due to unleveled ground that dominated the stakeholders to abide by the laws… We need to Mwambigija noted that the government’s auction. find a lasting solution for this problem and also save failure to intervene would be translated as a setback According to media reports, farmers would lives of over one million population that depend towards the fight to end poverty in the country with like to exploit benefits of Everything But Arms son this Lake,” says Dr Mathayo. the emphasis on ‘Kilimo Kwanza’ revival of Agreement (EBA), a trade agreement that the two He called on stakeholders to form agriculture sector. countries have adopted. However a trend comes at partnership committees with a government to Patrick Alfred who works with African a time when the viability of the auction floor is also prepare budget in order to stage a special operation Research and Resource Forum once said: “To end threatened by the increasing purchases of the crop to curtail illegal fishing. If the operation fails the poverty a concerted effort must be made in the outside the auction system. Minister hinted, the government would think of other agricultural sector; there is an unmistakable link It is said that tea purchased outside the options such as to introduce a seasonal fishing to between increased investment in agriculture targeting auction system has risen from 20 percent of sales to give room for fishes to reproduce. smallholder farmer and improved wellbeing of 30 percent, and auction has witnessed only 30 out of A chairperson of Tanzania Fisheries grassroots communities.” 70 registered exporters transacting at the auction, a Industries Processors (TFP), Harko Bhagatt According to him, Tanzania and other African move that has resulted into about 18 percent of unsold reiterated the Lake Victoria is the backbone of the countries enjoy great yields from the agricultural sector tea each week. Lake Zone economy and the country at large and as a result of growth in exports. It is likely that Reached for comment, Mathias Assenga, hence drastic measures were essential to halt the improved investment in such area would also result Tanzania Tea Board Director General (TBT) situation. in economic growth, more specifically, inclusive and explained that they have been working on strategies In the year 1992, about 5 tons of fishes equitable growth that ensures greater participation that will improve development of the crop to make it were obtained, while in 2008 the number stood at of grassroots households. the leader in tea markets. 400 tons. The country procured a profit of about As such, there are moral, political and Assenga pointed out that plans that would 500,000 US dollars a day from the fish purchase economic reasons for improved focus on the increase the internal and external market are yet to in the Lake, say officials. agriculture sector by African governments. be revealed, as they are first be to presented to the Continue pg. 2 This Newspaper is Produced by Investigative Business Journalism Trainees at SAUT SAUT Business Times 2 Local News July, 2012 Tax incentives hurts economic Data capture device damages growth, say experts local revenue By MARTHA MAJURA incentives whereas in the Export By DICKSON NG’HILY xperts have called on the Processing Zones (EPZs) and Special anzania loses over 8.7bn per market by adding value and thus Tanzania government to Economic Zone (SEZ) Companies are annum as a result using a provide assurance to global refrain from removing tax exempted for first ten years from paying TKenyan ‘barcode,’ an consumers of the safety and traceability incentives as a prerequisite to Corporate income tax and all taxes and automatic identification and data of products produced and supplied E levies imposed by Local Government support its development and recurrent capture device on her products. from Tanzania. budgets. Authorities. The barcode is a data capture The system logic guarantees Experts say that can also play While the Government that provides information to consumers that data captured from GS1 endorsed a decisive role to promote, attract and seems indecisive to remove the by identifying the product, its bar code symbols produce retain the Foreign Direct Investments incentives, a 2006 report by the African manufacturer and a country of origin. unambiguous electronic messages such (FDI).According to the report titled Department of the International Speaking to SAUT Business that any changes to the system ‘Tax Competition in East Africa issued Monetary Fund (IMF) Focusing on Times, Mabamba Maregesi, a Barcode introduced would not affect users. jointly Tax Justice Network-Africa, East Africa, insisted that the system Executive with GS1 Tanzania Limited The GS1 barcode executive Action Aid International and Policy should be abolished if Tanzania wanted said that the amount could increase further noted that, barcode system of Forum’, Tanzania is purportedly to realize true and quick economic since more than 50 Tanzania companies identification is trusted providing loosing approximately 1.8 trillion growth. “Investment incentives , are using South African barcode while enormous benefits to the world and it shillings through these incentives. particularly tax incentives is not an over 40 use barcode of different continues to provide a revolutionary “Revenue loses from all tax important factor of attracting foreign countries around the globe. leap forward for the world every time inceptions and incentives may be as investments,” The IMF says, and Maregesi explained that apart the barcode goes ‘beep’. high as Tsh 1.8 trillion (USD 1.23 added that more important factors are; from losing money, the usage of foreign An expert in Information billion) in 2008 and the minimum good infrastructure, low administrative barcodes to Tanzanian products causes Technology Pius Mikongoti said that, revenue loss from tax incentives costs of setting up and running business the country’s products to lose their apart from serving product identity as granted to the companies alone is and predictable macro economic country of origin since the product value addition, barcodes increase around Tsh 381 billion (USD 174 policy. would be identified with the country that traceability of the value chain system million) a year, for the year2008/2009 Commenting on the situation, issued the barcode. in the country. – 2009/10” said the report. a renowned Economist at the Saint “We Tanzanians have been told Mikongoti explained that the It further added that for the University (SAUT), Edward Range that we have not been utilising the move would increase access to fiscal year 2011/2012, exemptions also shared same sentiments as saying opportunity with AGOA market, but to domestic and global markets of locally amounted to about 18 percent of total the tax incentives have adverse effects be honest, we have been using the produced products, product identity, taxes collections, this makes an increase on the national economy. market only that most of the Tanzanian value addition, and increase traceability of 3 percent compared to the ratio of ‘The government should produces are registered with Kenyan of the value chain system in Tanzania. exemption to total revenue for the invest on creating favorable business GS1 system hence making products He further said that any 2009/2010 financial year, says the environment so as to attract foreign being identified as Kenyan,” he company, organisation or individual report. investors. Providing tax incentives is explained. who want the benefits from the world’s Economic experts say the destructive and wont at all boost the “Tanzanian business only open global standard for product country provides a wide range of tax economy’, he said. community will not have to travel to identification and bar-coding should Kenya and South Africa as well as make use of GS1 system. Imported goods threatens local economy other parts of the world for barcodes, “With the growth of electronic By MONICA JOHN at higher prices and thus lower the price since the GS1 Tanzania is currently commerce, the GS1 system is growing he fact that citizens prefer of our local goods. issuing Tanzania barcode ‘620’ which rapidly beyond its retail base. Virtually imported goods to local “This policy will encourage is expected to increase access to everyone in the supply chain, including goods poses a challenge in the production of local goods in large domestic and global markets of locally the transport operators and packaging the national economy for the quantity and thus, protecting our produced products,” he said. manufacturers should consider GS1 T industries as well as our economy,” He He revealed that since August membership to improve efficiency and foreigners become benefactors rather than the nation. insisted. last year Tanzania managed to register to maintain their competitive edge,” Dr. Odass Bilame , the Dr. Odass challenged the about 180 local companies with over Mikongoti explained. economics Lecturer at St Augustine participants to dig deep as to why 2800 local products. “We are still Barcodes system was University of Tanzania (SAUT) raised Tanzanians do prefer the imported working hard to make sure all developed thirty years ago in United this during his presentation on skills goods to local goods. Tanzanian companies as well as local States after advances in computing demand and supply in Tanzania One, among the reasons products are registered with our opened the way for it to be used as an Business Environment in one of the given by participants, is that despite system,” he observed. alternative to having a cashier ring up Investigative Business the leaders encouraging citizens to According to Maregesi, the pricing information on a register by Journalism(IBJ)training sessions held make use of the local products yet they move would promote local hand. at SAUT this month. are the ones who consume imported manufactured products to the global “There has been an increase goods the most, something which in demand of imported goods due to demoralizes citizens in consuming the ..Tanzania tea faces stiff competition the low production of local goods,”he local goods. From pg. 1 said. “Our currency is devalued as the They further said that our . result of importing more” produces are of low quality and so Tea contributes more than Kenya, Uganda, Rwanda and Burundi. However, one of the when it comes to free market economy, USD30 million to the country’s export Statistics reveal that Tanzania produces participants of the training Mr. George they fail to compete even within the earnings, making it the fifth largest about 32000 tons per annum, and Ramadhani noted that due to low nation. export crop after cashews, coffee, constitutes about 1 percent of World production, the price of local goods is Dr Bilame challenged cotton, and tobacco. Tea production thus rank it as number very high as compared to the imported Tanzanians to be patriotic by preferring More than three-quarters of 19 major producers at the World level. goods. local produces to imported ones in a Tanzania’s tea is exported and it The country has a total area of With the observation from the view to improve national economy as provides employment to more than tea plantations of 22721 hectors of participants, Dr.Bilame suggested the well as the currency value. “To have 50,000 families and directly or indirectly which 11,272 hectors are estates and protectionism policy for our industries progress economically, the demand and affects as many as 2 million Tanzanians. while 11,449 hectors of land are owned through the imposition of high taxes to supply in Tanzanian business Currently Tanzania is the fifth by small farmers . the imported goods for them to be sold environment should be measured by the major tea producer in Africa after local produces,”he concluded. This Newspaper is Produced by Investigative Business Journalism Trainees at SAUT SAUT Business Times 3 Local News July, 2012 Government calls on fishermen Overfishing threatens Lake to form co-operative society

By POLYCARP MACHIRA By DICKSON NG’HILY stocks, degrade nursery areas and ishermen in the Lake Victoria eliminate agents as industries declined ver-fishing has been produce wasteful bycatch. need to form a cooperative to increase prices. identified as the major “All of the recent studies on union as a requisite to uphold “This is the only alternative factor that pose an overfishing problems recommend a welfare amongst its as other stakeholders have refused to increasing threat to the comprehensive, ecologically based O approach to fisheries management, not F heed the government’s proposal that sustainability of fishery resources in members. Lake Tanganyika just simply trying to limit catch they increase prices or compensate Observers say that a lack of According Lake Tanganyika numbers,” he said. “Let us hope that strong cooperative has provided a fishermen for the losses incurred” said Fisheries expert, John Mwanga fishing our government will have the wisdom room for unscrupulous middlemen to Mr Chamoto. practice has become more efficient and to follow our advice”. temper with prices at the expense of In the past three weeks, a consequently more destructive. Apart from overfishing, fishermen. Fish processors have in price of one kilogram of Nile Perch It is said that the use of Mwagama mentioned other factors as recent past claimed that the world fish paid to fishermen has been reduced destructive fishing gears and over the unintentional removal of non- fishing threaten to deplete the fish targeted species during fishing prices have dropped, and thus affected from 5000/ to 2700/-, a move that stocks. operations (bi-catch), destruction of has been vehemently opposed by the the local prices. The LTA maintains that since coastal and ocean-floor breeding However, it was also fishermen. Sources say that in the lake suffers from uncontrolled and habitats, pollution, as well as the climate reported that processors from other Uganda the price has dropped from unplanned development the changes. East African Countries, Kenya and Ush 6, 000 to Ush 4000 ,which is management of fisheries and activities Estimates suggest that there is Uganda get better prices as compared equivalent to 2600/- while in Kenya affecting the lake basin should be done no other place on Earth that holds such their Tanzanian counterparts. the prices went down from KSh220 under the regional planning frame a variety of life. Lake Tanganyika An official from the National harbors over 2000 different species, of The decision follows to KSh210 which is equivalent to Action Plan (NAP), Gaspard which more than half are found 3000/-. stalemate between the stakeholders in Ntakimazi said that Fisheries nowhere else. the fish industry, just a week after a An official from the Tanzania Management Frame Plan should be Its jellyfish, fish and molluscs deadlocked meeting chaired by minister Industrial Fishing & Processors reviewed and updated as an resemble marine species that early for Livestock Development and Association (TIFPA) who preferred intervention to the sustainability of researchers assumed was connected to Fisheries, David Mathayo in Mwanza anonymity acknowledged that the fisheries development of Lake the sea. The fisheries of Lake last week. move by fishermen to form a Tanganyika. According to Ntakimazi, Tanganyika are based on only six of A fishermen representative in Mwanza cooperative society would provide a interventions proposed for developing those species; two sardine fish and four solution to the current problem. Juma Chamoto argues that nothing has sustainable fisheries in the lake include latest species. The catch is nonetheless been achieved so far since the meeting Currently, each factory has reviewing and updating the national enormous, providing direct took place in last week. The fishermen agreed with its agents as per their components of the Fisheries employment to 100,000 people and a contracts, for example, Tanzania Fish are now contemplating boycott selling Management Frame Plan, developing livelihood to ten times that many. Processors to buy a kg of fish between the products to the processors. and implementing fishing license Lake Tanganyika is 3000/- and 3100/- “There is need to process, improving the involvement of internationally recognized as a global The envisaged find an amicable solution to the local communities in fisheries hotspot of biodiversity, representing move to establish the cooperative problem which will take into account management and promotion of some of the most diverse aquatic society is among key proposals made the interests of both parties concerned sustainable fisheries alternative ecosystems in the world. by the government in its endeavour to in the business” he said. livelihoods. The lake’s valuable aquatic “The question is how long the ecosystem and the many natural World market price threatens lake will remain the source of life for its resources found in its Basin provide species and people if action is not essential sources of livelihood and local cotton production taken,” he said. income for over 10 million riparian BY GEORGE RAMADHAN, GERALD A Fisheries expert John population around the lake, and LUMANYIKA and FAUSTINE KASALA Mwagama said that the numbers of fish contribute to the growing economies of otton growers are no government intervention. within many prime species have surrounding countries of Burundi, threatening to stop He said that decreased due to the use of high-tech Democratic Republic of Congo (DR production unless the this season’s directive price which have fishing practices that deplete fish Congo), Zambia and Tanzania. Cgovernment reviews its been set by the crops stakeholders is neutral stance on the fibers price. A Tsh.660, and that if the cotton growers from $1.1 per kg in April to 70.53 cent on the verge of collapse, unless the sudden decrease in the world market are not satisfied with it, they had the per kg last week. government takes swift measures to price has infuriated growers option of not selling to the market now The unpredictable trends mitigate the problem. countrywide who are now ominous to and wait until the price is increased‘. of the prices at the world market the “If the government stop the production. According to private buyers of cotton are now fails to issue a stand on subsidizing the The growers’ Bwahama, TCB would not promise offering payments which do not exceed farmers, they will give up and that will disappointment noted recently after the much to the farmers, that the 520/- per kilogram. mean nothing but a total collapse of government through Tanzania Cotton organization is not in the position to Elias Zinzi, Tanzania the entire sector.” He said. Board (TCB) announced the start of perform any miracles, and urged for Cotton Growers Association According to Zinzi, for nd cotton buying season on 2 July this farmers to stay hopeful that the cotton (TACOGA) chairperson, told this some times now, a debate on directive year, in Bukombe district Geita region price stabilize at the world market. newspaper that it is high time the price between farmers and cotton revealing that farmers will not be This government intervened to rescue the buyers, has reached to critical stage. offered new price this season. season farmers’ anticipate selling their situation to rescue the cotton sector An agreement has been reached for Speaking to SAUT produce at a minimum price of 1000/- development in the country. the matter to be tabled before President Business Times Jones Bwahama, the per kg, as price predicted by He added that for the concrete Director of TCB, Western Zone indexmundi.com. However the site that Tanzania’s cotton sub-sector, which solution. confirmed the cotton season have posts the worldly crop prices has since employs 14 million people, about 40 already been inaugurated without revealed that the market has per cent of the country’s population, is Continue pg. 5 changes to the last season price and experienced an acute cotton price drop This Newspaper is Produced by Investigative Business Journalism Trainees at SAUT SAUT Business Times 4 Local News July, 2012 Experts warn over increased official Increased levy per diems to lower local

By POLYCARP MACHIRA skin prices was never enforced. Following s the debate on the 2012/ This is for accommodation and amendment of the Income Tax Act in By POLYCARP MACHIRA 13 budget estimates allowances for him and his entourage. 2011, allowances are now legally tax continues in Dodoma, a They argue that normally such exempt. rices of skin and hides in the new report shows that per trips involve 15 to 22 people who Commenting on the report, Dr local market are likely to drop A accompany the Head of State; each of diem stretches the government wage Odass Bilame, an Economist at the St. due to the increased bill. them pockets $ 350 to $ 500 as per Augustine University of Tanzania exportation levy on raw hides While these allowances are diem. (SAUT) noted that the government P and skin, only meant to be compensatory, they This paper has been told that was loosing a lot of money that would tend to assume the character of President Kikwete has to be have been spent on other important In the 2012/2013 budget, the additional salary payment in a country accommodated in hotels ‘fitting’ his national projects. government intends to amend the like Tanzania where salary levels are status, which means $ 800 to $ 1200 Export Levy Act by increasing an generally low, reads the report. per night. He said it was high time the export duty on raw hides from 40 per The phenomenon of per diem Again, they say four other government learnt a lesson from cent or Sh.400 per kilogram to 90 per abuse is not new. For a couple of people have to check in at the same developed partners who despite having cent or Sh.900 per each kilogram. decades at least, development hotel with him. Taking an example of stable economies, abolished the culture This measure is intended to partners have complained about the one trip, from 12 to 26 May 2006 the of per diem. promote local processing of hides and difficulty of attracting civil servants to President travelled to Uganda, UAE, “It is a shame that the skins as well as value addition to the their seminars without offering France and USA the bill came up to government cannot learn from country’s exports and also increase something extra. Sh 273 million, it is believed. development partners who really employment, hence earn revenue to the The report titled Hunting for Tanzanians are agitating that regulate such allowances” he noted. government. Per Diem, the Uses and Abuses of President Kikwete’s trips abroad be But the report warns that per Increase in export duty would Travel Compensation in Three probed after he left for Britain diem irregularities and fraud could result discourage exportation of raw skin and Developing Countries, says per accompanied by 40 people. As of from inadequate or ineffective controls. hides leading to oversupply of raw diems are intended to compensate 9/9/2011, when the President toured The rules regulating travel- materials for the local tanneries. employees of public and private Kenya, he had already made 316 tours related allowances in Tanzania must be Tabling the 2012/2013 budget organizations for extra expenses abroad since coming to power in 2005. considered as part of a larger set of estimates in Dodoma recently, Minister incurred when on work-related But effort to get state house allowances offered to civil servants. for Finance, said the assignments away from normal duty confirm this information was not fruitful Allowances linked to a specific export levy measures are expected to station. as e-mails message sent to the position are referred to as remunerative increase government revenue by Sh. “The compensation offered is statehouse went unanswered , and the allowances, while others are 26,431.8 million. set at standardized rates, payable director of communication, Salva discretionary benefits referred to as But some players in the sub- according to stipulated rules and Rweyemamu did not pick his phone duty-facilitating allowances. sector have experienced change in regulations” reads the report authored when this reporter tried to reach him Per diems are considered a prices since the move became by the Norwegian Agency for on phone. form of duty-facilitating (i.e. operational this month.Some skin and Development Cooperation. Official per diem rates for other discretionary) allowance since they hides traders at the Mwanza abattoirs In Tanzania the total civil servants see assistant directors and depend on a manager’s approval of told the reporter this week that prices government wage bill accounted for above get Sh 80,000, Sh 65,000 and participation in a meeting, seminar or have already stumbled and are likely 32 percent of the 2010/2011 budget. Sh 45,000 respectively while on city trip. to fall further. Its stake in the 2012/2013 financial & municipality, regional& district cities The purpose of the per diems They argued that those who year is yet to be known. and other areas visits. should be to reimburse travel expenses used to export raw materials outside Allowances accounted for Professional or administrative only. Extra emoluments to boost civil the country used to offer favourable 16.2 percent of the total wage bill, of and senior clerical officers get Sh 65, servant motivation or secure them a prices compared to what the local which duty-facilitating allowances 000, Sh45, 000 and Sh 35,000 decent wage should not be offered via tanneries offer. made up 10.2 per cent, remunerative respectively on trips on areas as above. the travel compensation system, “This is just the second week allowances 6 percent and domestic The lowest in this category, the according to the authors. since the measure was announced by per diems 4 per cent. The total absolute executive secretaries and below get Sh Standardized per diem rates the Minister for Finance, but the local allocation for allowances amounted to 45,000, Sh 30,000 and Sh 25,000 should be calculated on the basis of tanners have now issued new lower Sh 269 billion (USD 165 million). respectively. surveys of hotels, restaurants and prices” said Juma Thomas, adding that The report comes at a time These comparisons to ordinary conference centres across the country the situation is likely to worsen. when there is great public concern on citizens’ expenses and wage levels concerned. The government imposed 20 the amount of money spent by the state indicate how much the per diem Per diem rates should not be percent or Sh 200 per kilogram of hides on President Jakaya Kikwete’s visits payments may matter to the individual differentiated by staff seniority or salary in 2003/2004 which was later abroad. civil servant. level. This recommendation appears to increased to 40 percent in the 2007/ Some sources that sought Moreover, the report points to violate the principle especially when 2008 fiscal year. Tanzania can easily anonymity point out those presidential the particularly high rates for trips applied uncritically or mechanically. produce 2.8 million cattle hides, trips abroad need to be investigated abroad, for which the rates range from “Regardless of rank, staffs stay 3.8million goat skin and 1.0m sheep for huge expenses. TZS 403,000 (USD 253) per day and in similar hotels and eat similar meals. skin a year. Their investigation revealed up to TZS 546,000 (USD 343) for the Rank is reflected in the regular salary Stakeholders say that foreign travels of President Jakaya ranks listed in the table above. system and should not be reinforced improvements in hides and skins Kikwete spent a total of 120 days A civil servant going on a five- by the travel compensation system.” handling can enhance the role of the overseas by 2009 alone. day overseas trip easily doubles his or states the report. leather in national food security, This means in the first four her monthly salary, even at the highest Reimbursement should be poverty alleviation and rural years since taking office until the end level of pay. provided only when expenses have employment. of 2009, he spent four months outside Previously, allowances were actually been incurred. There should be Continue pg. 5 the country, at a cost of Sh 2.4 billion. taxable in principle although this rule full transparency about the rates provided.

This Newspaper is Produced by Investigative Business Journalism Trainees at SAUT SAUT Business Times 5 Feature story/News July, 2012 Women vendors need support to boost businesses in Mwanza By NASHON KENNEDY

t is now obvious that women are 600,000/-.Apart from selling food to attempt was to find a place in the from financial institutions which in most no longer willing to stay at home, the Mwanza City dwellers, she also market. Business was not so bad in cases subject us to harsh and and therefore they are looking for used to the loans to do other business her early days there, she narrates. The unbearable conditions,” says Ms Iways to support their lives. They such as buying and selling grain related profit of the new business was Rahabu. think they have the ability to embark produce and other related food crops. potentially low, but sometimes she was Ms Rahabu represents other on various economic ventures that can “The repayment schedule was luck enough as she got a profit of thousand women entrepreneurs who provide economic security to them supposed to be on weekly basis. Each between 7,000 and 8,000/- a day venture into various economic without having heavily relying on their week, I was supposed to return about particularly from selling the vegetables, activities to support their lives and that husbands. 4000/- with a profit of Shillings 1,000/ she says. of dependants. Gender experts say One of the food vendors Ms -This wasn’t an easy for me , but I “The business here is substantially that women have the potential to make Rahabu Manga (52), who is doing her had to do everything I could to repay good because I used to meet a a gigantic contribution in the national business at the Mwanza main market, it,” she recalls. number of customers who came to buy development. had this to say, “As a widow, I came According to her, any failure to my products. Generally speaking, I’m The only thing they have to do is to realize that life was too tough to repay the loans could be met with other a lot bit enjoying a current business as to show a high level of commitment support my four children…I decided harsh measures, and these include, compared to the time when I was in and determination in fulfilling their to do this business in order to support confiscating the belongings of the Musoma”, she explains. goals. A recent study conducted by the to feed, take to school and also meet purported defaulter. “I thank God that However, she also faces a new National Strategy for Gender other daily expenses.” I finally made it and hence I was freed challenge as the vegetables are Development (NSGD) found among Ms Rahabu, a widow who hails from the looming threat of being perishable products, and therefore the other things, the women’s attitudes from Butuguri village in Musoma Rural confiscated of my belongings,” she loss is sometimes inevitable, “This toward businesses and employments district, and she has been doing small says. problem, however, isn’t a frequent are now changing, and more women -scale related economic activities over After sometimes, she thought of phenomenon. The only thing I have are being appointed to higher decision three years, and now she says things taking another loan from the learnt is just for us to be patient and making positions. are no longer the same as, “I have been microfinance institutions though the creative in dealing with business At household level, men are still able to pay the school fees for my conditions, she says were challenges,” she says. portrayed as only family heads and children, one of them has just comparatively tough, “I saw it was Local experts say that many small great breadwinners. Experience also completed ordinary level education.” better to go for another business and scale entrepreneurs in the country also indicates that this perception is slightly One of the challenges facing the I decided to come here in Mwanza to experience hardship in businesses and changing as a significant number of women entrepreneurs is the meager try my luck…Although starting a new this is partly due to a lack of co- them are taking charges in providing capital to run their businesses, and Ms business wasn’t an easy task at all,” operation amongst them, “I think it is economic support to their many Rahabu says that she had decided to she says. also important for women business families. take loans from one of the microfinance Eventually, she spotted an idea of vendors it is high time to unite and form “Challenges should not institutions to boost her business. She starting a small business of selling small credit organizations such as discourage women from fighting for started by taking a loan of about vegetables and fruits, and her first saccos, rather than just taking loans better life as well as that of their families,” says Ms Rahabu. ..Levy, skin prices ..Price threatens local

From pg. 4 The Parliamentary Committee on leather products at extremely high Trade and Industries meeting in Dar es prices. Salaam recently suggested for an When reached for comments From pg. 3 increase in levy to 90 percent from the the Association Chairman, Onorato current 40 per cent charged or a total Garavaglia said it was to that the Tacoga chairperson said A Recently, during the cotton ban on export. tanners have started receiving a lot of Meeting with the President may come sector meeting in Mwanza, Members Hides and skins collections raw materials following the increased out with a long term plan whereby the of Parliament from the cotton producing average only 50 per cent of potential supply, but the situation may improve government will grant bond to local regions in Tanzania warned the slaughter; that is: 2.4 million cattle hides, soon. investors. This will enable them obtain government on the instability in the 900,000 goatskins and 400,000 Speaking to this reporter on loans from financial institutions to price of cotton at the world market was sheepskins. phone from Dar es Salaam, he said the establish lint textiles as a way of likely to seriously affect local crop But almost all skin and hides is tanners are currently working hard to promoting the local industry and a more growers. exported outside the country by traders increase production, thus absorbing all stable market. The MPs explained that who are on record of evading tax. the available raw materials. The factory manager with regular excuses of price falling in the The tanners say they invariably “Such a situation normally Lamadi ginnery in Magu district, John World market have been worrying haggle for the lowest possible price and arises but with time everything will Shinyela confirmed that his company farmers to the extent that they have seldom agree as illegal Pakistan traders stabilize..it is true we currently receive is among those hesitating to buy cotton threatened to stop the cultivation the pay local suppliers higher prices, only more than what we demand” said Mr. at Tsh.660/kg because the amount crop once labeled ‘the white gold’ all to cheat on duty payment to the Onorato. would not pay back if the price at the together. government, allowing them better world market remains stagnant. prices in their countries. But the Minister for Trade and The Tanzania Tanner Industry, Abdallah Kigoda told this Association wanted an immediate ban paper that the government was working on the export of raw hides and skins, hard to revive all the non-operational which are normally processed for tanneries in effort to create more making shoes and other imported employment for Tanzanians. This Newspaper is Produced by Investigative Business Journalism Trainees at SAUT SAUT Business Times 6 Local feature stories July, 2012 Need to curb fish depletion Piracy leads to 17 per cent in Lake Victoria drop in EU vessels in Tanzania By MARTHA MAJURA By DICKSON NG’HILY xperts are increasingly other source of income to pay school The UK Foreign and worried about a dwindling fees for his dependants. And he now iracy in Indian Ocean has caused Commonwealth office issued a warning fish stock along the Lake realizes that his life was attached to a drop by 17 per cent of the to her citizens and urged them to take Victoria basin. The trend fishing in the Lake, Life is so hard as P fishing vessels from the E European Union in Tanzania over the appropriate measures. The statement has a potential to plunge the entire my bottom for income generation is also called on shipping operators to regional economy in tatters. almost diminishing,” last few years. Reliable sources say that the adhere to the stipulated best practises Gone are the days when a Experts say that in the year in the shipping industry. glory of Tilapia, and Nile perch 1999, the Nile Perch had a stock of European Union (EU) vessel owners are no longer interested in fishing in the Observers say that a relentless production, for example, was in plenty. 1.2million tones. However, in less than areas they consider to be not conducive piracy attacks, mostly orchestrated It is from this background that some a decade, the amount of stock to their business. using gunfire, has targeted smaller local observers think the situation is drastically dropped from 227, 305 British High Commissioner to vessels, fishing vessels and tourists. not conducive to the public good. They tones, while in last year the stock Tanzania, Diane Corner, was recently Business experts have also say that if the situation continues increased only by 42.3 per cent. This quoted through the local media as expressed concern as saying the unabated, the lives of over three means it has gone as high up to 324, saying piracy had in recent past increasing wave of piracy has a million people whose lives depend on 391 tons. increased along the Oceans along in the potential to jeopardize commercial fishery industry, across the Lake According to a study Horn of Africa. shipping in the affected areas. Victoria will; be in jeopardy. conducted by the Tanzania Fisheries “This scares our people to come A report by the International Sources say that a 56 Processing Association (TFPA) and fish in the country because they Chamber of Commerce’s International years old angler at Namasabo landing (1992-2000) , the annual export from have been seeing fishing vessel as well Maritime Bureau (IMB) indicates beach, in Bukanda ward, Ukerewe the Nile Perch alone earned a profit as the massive oil tankers being taken Somali pirates intensified attacks away district, for example, has recently of8.7 bn/- hostage,” says the British from their own coast and were experienced a high cost of decline as The major factors Commissioner. responsible for 44 percent of the 289 piracy incidents on the world’s seas in compared to five years back. In the contributing to this state of affair Ms Diane says that piracy the last year. last two decades the beach was include, over fishing, water pollution, problem is no longer confined to one The IMB figures show that in the reported to enjoy a bumper harvest illegal fishing, just to mention a few. A area as it has pervaded to a large past nine months pirates boarded 128 of Nile perch and other species found number of countries in the world. TFPA chairperson Harko Bhagatt ships and fired at 52 and a total of 70 in the Lake. She noted that piracy is no expressed a need for relevant vessels reported thwarting attacks. “Back in 2007, we used authorities to take decisive measures longer a problem limited to one country or a small area but rather one that is According to recent media reports, to weigh between 1.5 and 2 tons of to address the situation.” By the year growing and it affects a very large South Africa, Mozambique and the Nile perches from the Lake 1992, only 5 tons of fishes were number of countries. Tanzania, have held an anti-piracy Victoria, but at this juncture the record obtained, and about 400 tons were also operation, which resulted in the arrest has become substantially a lower .In procured in 2008.The industry made of 12 pirates targeting oil exploration may 2010, for example, the catch a profit of 500,000 US dollars between vessels in the Indian Ocean. stood at 5 kilograms,” explains one the year 2005 and 2008. resident Mr Nalubi Mukama (55). It is also important to note that Tanzania He recalls the time during was the second country in Africa to be when the area used to fetch a p plenty accepted in the EU market. A Director of fish species in the Lake, and he of fisheries Hoseah Mbilinyi called “This scares our people to come and adds that even fishing itself was not upon the fish industry owners and other fish in the country because they have that costly. He blames the decrease key players to take all necessary been seeing fishing vessel as well as of fish stock to what he described as measures to contain the situation. indiscriminate fishing practices, such the massive oil tankers being taken as illegal fishing, deforestation and “I think we need to face the hostage,” says the British other manifestations of climate change. reality….The Lake is now being “During the 1960s, for threatened by rampant pollution, this Commissioner. example, there were many trees that kind of environment would ultimately lead to sufficient rainy season, also ruin the fish business in the region,” he and ensured that the Lake had remarked. enjoyed a constant supply of water Fish industries produce from her water sources. This situation used to produce about 30 per cent has now changed into a worst (2005-2008).More than one million scenario that threatens people’s people in Mwanza region alone depend survival in the proximity,” says Mr on fishing related activities along the Mukama. Lake Victoria. The fishing sector used With the perishing of fish to contribute 7 percent of the Mwanza yields, Mr Mukama’s life remains region annual revenues, uncertain. He has yet to secure the

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