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SAUT Business Times.Pmd 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 Tanzania 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.
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