The Tanzania Foreign Exchange Regulations, Government Notice No. 294 published on 13/5/2022 (the “Tanzania Foreign Exchange Regulations”) are creating quite some noise in Tanzania amongst traders and investors. Given the efforts that the government of Tanzania has been undertaking to lure foreign investors to Tanzania (#RoyalTour) and reassure them of a conducive and easy business environment, the regulations come as a surprise since they seem to somehow contradict some of these efforts. Tanzania, being a member of the International Monetary Fund (IMF), has the obligation under Article VIII of the International Monetary Fund Articles of Agreement to enable currency convertibility for current transactions—goods, services, travel, interest, and dividend payment and this is a condition of its membership of good standing. The Articles of Agreement remain silent with regards to obligations of Member States and capital accounts. While the Tanzania Foreign Exchange Regulations do not prohibit current account transactions, the government has added Non-Tariff Barriers (“NTB”) making it more bureaucratic and therefore dissuasive to engage in certain types of transactions. I am going to focus on three areas: investment, trade and regional integration and the implications on these areas that the Tanzania Foreign Exchange Regulations have. Foreign Direct Investment Foreign Direct Investment is expressly referred to in Regulation 24 (2) which prohibits Equity to Debt Swaps. Equity/Debt swaps are a type of financing whereby specified class shareholders are given the right to convert their stock for a pre-determined amount of debt in the same company. The conversion is usually into corporate bonds. While an investor gets the...

...Afreximbank to grow fund to $3bn One year after the take-off of the African Continental Free Trade Agreement (AfCFTA), no fewer than 28 banks in Africa One year after the take-off of the African Continental Free Trade Agreement (AfCFTA), no fewer than 28 banks in Africa joined the Pan-African Payment and Settlement System (PAPSS), which took off with a $500m facility with an additional 24 banks on the… ...Afreximbank to grow fund to $3bn One year after the take-off of the African Continental Free Trade Agreement (AfCFTA), no fewer than 28 banks in Africa Thu, 09 Jun 2022 04:25:30 GMT…Afreximbank to grow fund to $3bnOne year after the take-off of the African Continental Free Trade Agreement (AfCFTA), no fewer than 28 banks in Africa joined the Pan-African Payment and Settlement System (PAPSS), which took off with a $500m facility with an additional 24 banks on the waiting list. PAPSS is a creation of the African Export-Import Bank (Afreximbank) to facilitate intra-African trades through the settlement of transactions in local currencies in the light of the AfCFTA take-off.Daily Trust reports that there are over 40 different currencies in the African continent and over time many traders within the continent would be demanding for payment in foreign currencies, especially dollars. By Thu, 09 Jun 2022 04:25:30 GMT …Afreximbank to grow fund to $3bn One year after the take-off of the African Continental Free Trade Agreement (AfCFTA), no fewer than 28 banks in Africa joined the Pan-African Payment and Settlement System (PAPSS), which...

TANZANIA is currently undergoing a significant food systems transformation. To ensure all the changes occurring, the livelihood for smallholder farmers continues to improve; accessibility of improved seeds is one of the essential factors. Seeds are the key to improving agricultural productivity-food security, and poverty reduction. Tanzania has come a long way in formulating policy and reforms for the greater good in the seed sub-sector. Since independence, the goal of all the initiatives has been to ensure the availability of quality seeds. The food sufficiency the nation has enjoyed for over a decade could not have been possible without reliable access to quality and affordable seeds. In the last decade and a half, Tanzania has introduced various policy and legal reforms in the seed sub-sector to ensure the availability of improved seeds to farmers at affordable prices. There have been remarkable achievements. However, some challenges remain. Alliance for a Green Revolution in Africa (AGRA) has been a dependable partner working with the government, the private sector, and non-state actors to make Tanzania's seed sub-sector self-sustainable for the good of smallholder farmers, who are the majority in our nation. Working with government-owned research institutions such as Tanzania Agricultural Research Institute (TARI) and Sokoine University of Agriculture (SUA), AGRA has played a crucial role in developing home-grown breeder seeds (over 30varieties), pivotal in sustainable food security. The Southern Agricultural Growth Corridor of Tanzania (SAGCOT) and partners have been privileged for years to partner with AGRA in the quest to contribute towards inclusive agriculture...

Before joining the field of public relations, Wangeci Kanyeki used to run a bakery. By her own standards, the business was doing well despite being a one-woman army affair where she played the role of the baker, server, marketer and accountant. She wanted the business to grow further and so she opted to get a loan from a bank to buy a professional kitchen oven. “They (the financier) wanted a Sh6 million turnover and other things. I was just baffled. I was only asking for about Sh200,000 but the requirements included a title deed,” she recalled. Ms Kanyeki says she felt that though the bank had positioned itself as supporting Small and Medium Enterprises (SMEs), they did not understand her needs, so she walked away. “Not helped and discouraged,” she said. Ms Kanyeki’s troubles, while being a challenge she experienced a few years ago, are still the case today for many SME owners going by the latest report. The report titled, SME Access to Financing says security is the most difficult requirement for small businesses to meet when seeking finance. The report unveiled last week by WYLDE International, a consulting firm for small businesses, reports that almost eight in 10 SMEs (76.6 per cent) cannot access funding as loans due to lack of collateral. The second reason is ‘startup hence no experience in running a business’ affects 34 per cent while low turnover as in the case as well for Kanyeki’s bakery business comes third with 31.9 per cent. As a result of this, of...

Summary Making collective agricultural transformation work is not an easy task and requires concerted efforts from diverse actors in the sector. Dar es Salaam. Sustainable food system transformation should go hand in hand with increased incomes for smallholder farmers in the rural areas, which translates into an improved livelihood. Rucodia has been working with Alliance for a Green Revolution in Africa (Agra) to catalyze food system transformation, which is essential for inclusive national development. Making collective agricultural transformation work is not an easy task and requires concerted efforts from diverse actors in the sector. Agra 2017-21 strategy for Tanzania implementation has been very supportive in enabling Rucodia to provide life-changing business development services to small farmers on the input distribution channel. Establishing workable input distribution networks has been a key in technology adoption for sustainable and improved food production. In implementing the Tanzanian PiATA-TIJA initiative, a part of a Pan-African Partnership for Inclusive Agricultural Transformation in Africa (PIATA), Rucodia was one of the five members of a consortium supported by Agra in Western regions. We recruited 803 agro-dealers in Kigoma and managed to reach 172,661 farmers along with different components of extension, access to market, access to finance, and distribution of agricultural technologies in around 300 villages. Similarly, in the Kagera region, the initiative supported and capacitated 596 agro-dealers to manage agro-inputs who managed to supply services to 257,921 farmers in 420 villages. Business development services are about imparting knowledge that becomes a power for the partakers. After we made...

Nairobi, June 2nd 2022: Her Royal Highness the Queen of England has today conferred TradeMark Africa (TMA) Chief Executive Officer, Frank Matsaert the Order of the British Empire (MBE) his trail blazing work in Trade and Economic Development in East Africa. On receiving the news, Frank noted that the award represents the collective work that has been accomplished by working closely with TMA key stakeholders. “I am deeply honoured by the Queen and UK Government for this recognition of TradeMark Africa’s work in supporting trade and economic development in Eastern Africa over the last twelve years. It has been a privilege and an honour to found and lead such a dynamic and impactful organisation.”  As the founding CEO of TMA, Mr. Matsaert, has steered the organisation to grow from a modest budget of US$ 42 million in 2010 to approximately US$1.2Billion by April this year.  The organisation has experienced robust growth over the decade to become the leading Aid for Trade agency globally, with remarkable results in reducing the time and costs of trading across EAC; through investments at the Port of Mombasa, 15 completed One Stop Border Posts across the EAC region, Customs systems at Uganda Revenue Authority, Kenya Revenue Authority, Burundi Revenue Authority and Rwanda Revenue Authority. Mr. Matsaert’ s vision has led TMA to partner with governments across the region to lay the building blocks for a digital trade and transport corridor. Starting out in only 5 countries in East Africa, TMA has grown to spread her footprint...

Nedbank’s John Hudson and Olebogeng Mogale discuss how digital technologies are making it easier for farmers to gain greater control over their route to market. JEANETTE CLARK: Digitisation and technology disruptions have picked up the pace over the last two years, necessitated by the pandemic and businesses having to find new ways of doing business. In the agricultural sector some of the many new ways that were found included agricultural e-commerce – or online trading of agricultural commodities, fresh produce, and even livestock. Joining me today is John Hudson, national head, Agriculture at Nedbank, and Olebogeng Mogale, executive, Digital Fast Lane at Nedbank, as we discuss the sector and ask whether agriculture has always been a good adopter of new technology. John, from a wider perspective, please can you tell us what technology innovation and digitisation mean for agriculture? JOHN HUDSON: Thank you, Jeanette. Quite honestly, agriculture is no different from many of the other sectors. I think it is playing a vital role and, as you said, we have seen [its] uptake just increase over the pandemic. But to be honest I think farmers have been really good adopters of technology and also digital solutions, and really this has been brought about by the cost-price squeeze effect. Farmers have been under pressure, margins have been squeezed all the time. I think one of the ways that farmers have stayed in the game is to take on technology, so in that sense, it is really, really important. What I do feel is...

The Private Sector Foundation Uganda (PSFU) has asked Uganda enterprises to ensure high quality standards of their products in order to benefit from the Africa Continental Free Trade Area (ACFTA). PSFU, in partnership with United Nations Development Program (UNDP), is conducting training of over 250 enterprises to benefit from exporting through ACFTA. The training brings together enterprises from various sectors of agriculture, manufacturing, trade and commerce, logistics and transport, tourism, ICT among others. The aim of the training is to provide technical support to equip export-ready enterprises in Uganda with knowledge, skills, and tools to enhance access to ACFTA market, regional market, and the global market. Speaking at the training workshop in Kampala, PSFU Executive Director, Stephen Asiimwe said Ugandan enterprises will lose if standards of their products are lacking. “The issue of standards is very vital when we talk about ACFTA. If we don’t ensure quality standards, we will lose a lot of money. When our products are of high quality, many buyers will have confidence in them,” he said The ACFTA, which went into force in January 2021, was created to form a single market for goods and services on the African continent, which allows for free movement of persons and investments. The Bloc has been touted as a game changer for economies like Uganda, as it promises larger market opportunities, triggering more trade and investment and allowing greater value addition, export diversification and productivity growth – leading to more and better jobs with greater social inclusion. ACFTA...

A regional competition watchdog is probing two major medical laboratories operating in Kenya as well as other markets over the high pricing of their Covid-19 tests. The Common Market for Eastern and Southern Africa (Comesa) Competition Commission said it had opened investigations on PathCare and Lancet on claims that the two firms could be engaging in restrictive trade practices and abusing their dominant status in the region. The companies are among the biggest pathology service providers in Kenya with operations in other markets in the region. “The commission has commenced investigations into potential violations of Articles 16 and 18 of the regulations by medical laboratories operating in the Common Market, namely… PathCare and… Lancet,” said the Comesa Commission in an April 1 statement. Consumer and other stakeholders have until May 2 to submit views to the commission on the matter. Article 16 of the Comesa Competition Regulations prohibits restrictive business practices, while Article 18 deals with abuse of dominance within the common market. In the statement, the commission said the probe was triggered by similar developments in South Africa, where medical laboratories were compelled to bring down the cost of PCR tests.PathCare and Lancet were among the firms that agreed to the demands of the South African competition authorities. “The commission has become aware that leading pathology laboratories in South Africa have submitted consent agreements to the South African Competition Tribunal following an investigation by the South African Competition Commission to reduce their prices for Covid-19 PCR tests and Covid-19...

The port of Mombasa has a capacity of 2.65m TEUs with 19 berths The Secretary-General of the AfCFTA Secretariat, Wamkele Mene, has paid a working visit to Kenya’s Port of Mombasa to witness first-hand improvements in ports infrastructure that has led to significant growth in the country’s trade within the East African region. Port Mombasa is a gateway port to most of the landlocked nations in East Africa and currently serves about eight states within the bloc including Burundi, Rwanda, Ethiopia, Uganda, and South Sudan. General Manager of Port Operations at Kenya Port Authority, Sudi Nwasinago, said the port has been able to overcome the challenge of congestion and doubled its container traffic. He said the port now has a cruise terminal which has turnaround the port’s fortunes and catapulted the nation’s tourism industry. “The cruise terminal is one area that has truly benefited the port authority and the country at large if we are to talk about tourism which is a big revenue earner to state,” he added. The Kenya Port Authority has for the past decade been working with Trademark East Africa, an organization funded by a range of development agencies with the aim of growing prosperity in East Africa through trade. In the past, cargo trucks spent 13days before completing clearance and exiting the Mombasa Port but they now take 3days. Cargo from Mombasa to Kampala, the capital of the landlocked nation of Uganda, which used to take 21days, now takes between five to six days. Mr....