News Categories: Tanzania News

AfCFTA promises to unlock the potential for African women to move to macro businesses

For decades, African women have been trapped in poverty cycles due to several underlying factors including unequal access to education, factors of production, and trade facilities; inequitable labour saving technologies; underpaid or unpaid labour; harmful cultural practices; and limited legal protection from gender inequality practices entrenched in society. To break the cycle of poverty and inequalities, the African Union continues to advocate for the development and implementation of policies and legal; frameworks that will create a wider array of opportunities for women, and which will lead to their economic empowerment at the national and regional levels, and ensuring that the development envisaged for Africa is inclusive and sustainable. With the launch of trading under the African Continental Free Trade Area (AfCFTA) in January 2021, the expectations are high as relates to the expanded business prospects for women-led businesses, which will unlock the potential for African women to grow their businesses from micro to macro enterprises. The Agreement establishing the AfCFTA recognises the need to build and improve the export capacity of both formal and informal service suppliers, with particular attention to micro, small and medium size enterprises in which women and youth actively participate. Furthermore, the AfCFTA Protocols on Trade in Goods, Trade in Services, Investment, Intellectual Property Rights and Competition Policy, provide clear guidelines to ensure emerging enterprises and infant industries are protected thus adding impetus to the Agenda 2063 goals of gender equality, women empowerment and youth development. Through the AfCFTA, informal and micro and small enterprises will...

Covid response deflates project spending across eastern Africa

Summary Sizeable drop in the number of projects and project value largely blamed on region’s inability to meet financing costs due to the effects of coronavirus. Eastern African countries cut $68.3 billion spending on infrastructure projects last year, the largest decline in number of projects and value of projects in sub-Saharan Africa in a year. This is as a result of the economic fallout from the Covid-19 pandemic sweeping across the region, hitting public finances and pushing governments into massive indebtedness. The Africa Construction Trends Report (2020) by consultancy firm Deloitte released last week shows that the number of infrastructure projects in the region covering Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Seychelles, Somalia, Tanzania and Uganda dropped by 35 per cent to 118 in 2020 from 182 in 2019 while the total value of the projects declined by 47 per cent to $77.7 billion from $146 billion in the same period. Infrastructure projects in the transport sector accounted for 51.5 per cent ($40 billion) of the region’s total projects, followed by energy and power (23.5 per cent) and the shipping and ports (21.5 per cent) sectors. According to the report, the sizable drop in the number of projects and project value largely resulted from the region’s inability to meet financing costs due to the effects of Covid-19 pandemic resulting in the suspension of several projects. For instance, the Ethiopian government’s interest in renegotiating payment schedules for the Addis Ababa-Djibouti Railway and Addis Ababa-Sebeta-Mieso-Dewale Road Project, led to thinned financing...

PODCAST | How have Sadc and East Africa performed during Covid-19?

In this edition of Business Day Spotlight, we talk about the performance of economies in the SA Development Community (Sadc) and East Africa regions. Host Mudiwa Gavaza is joined by Jacques Nel, head of macroeconomic research for Africa at NKC African Economics, to chat about the issues. Join the discussion: Starting with news from some of SA’s close neighbours, Nel says the muted performance of the local economy has had a negative effect on the growth prospects of the region. As an economy that anchors the Sadc region, Nel explains that the fortunes of SA’s economy have a direct effect on neighbouring economies. A drop or stagnation in local economic performance, therefore, weighs on the region. Business Day Spotlight host Mudiwa Gavaza. Picture: DOROTHY KGOSI. Heading into lockdown, SA was already expected to grow at less than 1%, seeing a huge contraction brought about by Covid-19 and subsequent lockdowns. Nel explains how neighbouring countries have performed, in the light of this apparent reliance on SA, focusing specifically on Botswana, Namibia and Mozambique. Shifting to East Africa, Nel says the region has been resilient, having entered lockdowns with good growth prospects. For now, he expects that momentum to continue with faster growth projected for the region. The discussion focuses on the economic performance of countries in the Sadc region, specifically Botswana, Namibia and Mozambique. It then looks at growth in East Africa, progress made in terms of vaccinations and an outlook for the two regions. Read original article

The revival of East Africa’s energy arena

Tanzania President Samia Suluhu Hassana’s first state visit to Uganda has signalled the revival of East Africa’s energy arena. President Samia made her first trip outside Tanzania as head of State on Sunday, April 11, since she took oath of office on March 19 following the death of her predecessor John Pombe Magufuli, who succumbed to heart disease last month. Samia met her Ugandan counterpart Yoweri Kaguta Museveni and agreed to support and show their commitment to the realisation and implementation of the strategic East African Crude Oil Pipeline (EACOP) project. The agreement was made on Sunday at the State House in Entebbe during the bilateral talks. Accelerating the Uganda-Tanzania Energy Relationship In May 2017, both countries signed the Intergovernmental Agreement (IGA) on the implementation of the project. The last meeting regarding the project was held in September 2020 between Museveni and the late Tanzania president John Magufuli at Chato, Tanzania, where they agreed that each party was to conclude the host project, commence negotiations of pending agreements, and expedite the implementation. The meeting between the two leaders is a sign of commitment to conclude the project that was well supported by Magufuli who died on March 17, 2021. In their agreements, they said that all the outstanding issues related to the project have been amicably resolved. The Shareholding Agreement was also signed by all the stakeholders during the meeting. That having concluded the Tariff and Transportation Agreement and the host Government Agreement for Uganda and the Shareholding Agreement for...

Private sector plays a vital role in implementation of AfCFTA- SACU Secretariat

With an enormous market presented by the African Continental Free Trade Area (AfCFTA), it is incumbent upon the Southern African Customs Union (SACU) private sector to seize and capitalise on the opportunities to grow their business through regional value chains and cross-border trade, SACU Executive Chair, Paulina Elago said. Elago said this when SACU Member States, Botswana, Eswatini, Lesotho, Namibia and South Africa came together for the first time since launch of the AfCFTA on 1 January 2021, to discuss issues related to the implementation of the trade bloc. During the virtual meeting attended by representatives from member states, the private sector and the Secretary General of the AfCFTA Secretariat, Wamkele Mene, Elago said without the participation of the business sector, efforts made towards increasing cross-border trade will be meaningless. She said the SACU Council of Ministers has agreed to prioritise industrialisation through the development of Regional Value Chains, Export and Investment promotion. “To that end, the region is currently undertaking technical work to outline a systematic approach and practical steps to scale up the region’s industrial base and to strategically positioning itself to take full advantage of the opportunities offered by the AfCFTA,” Elago said. She highlighted the importance of the Trade Facilitation component, expaling that SACU has, through its Customs Modernisation Programme, laid the groundwork that will enhance efficiency in Customs operations. SACU Member States Customs IT Management Systems are now linked to automatically exchange information. A full presentation on the SACU Customs Modernisation Programme will be given...

Clearing system at Dar es Salaam port hit by technical hitches

Summary The Electronic Single Window System (eSWS) which is used for lodging documents for cargo clearance is currently under maintenance after facing some technical challenges. Dar es Salaam. The Tanzania Freight Forwarders Association (Taffa) has expressed concerns over delays at the port of Dar es Salaam as they could not clear goods for some days now following technical hitches facing the electronic clearing system. The Electronic Single Window System (eSWS) which is used for lodging documents for cargo clearance is currently under maintenance after facing some technical challenges. The system at the port of Dar es Salaam is an integrated cargo clearance and payments system and also allows parties involved in international trade and transport to lodge standardized information and documents with a single entry point to fulfil all import, export and transit related regulatory requirements. Taffa president Edward Urio told The Citizen that following the hitches that had been experienced for about a week now at the Dar es Salaam Port, the freight forwarders were unable to clear goods, hence leading to congestion of goods. “Clearing agents could not lodge their manifesto in the system and therefore could not perform any transaction including paying the charges required for clearance of goods,” he said. Explaining, he said following the difficulties they were now faced with the burden of having to incur demurrage fees and other storage fees because the goods have over-stayed longer than required at the Port. When contacted for comments, Tanzania Revenue Authority (TRA) Commissioner General Alphayo Kidata...

Tanzania, Kenya cement ties

PRESIDENT Samia Suluhu Hassan has assured her Kenyan counterpart, Uhuru Kenyatta of a bold and continued cooperation from Tanzania, as part of efforts to push forward development agenda between the two countries. She has also directed the Joint Permanent Commission (JPC) of the two countries to convene a meeting that would work on different areas of the bilateral ties. The commission hasn’t met since 2016. The head of state made the assurance on Saturday after receiving a special delegation from the government of Kenya that was led by its Cabinet Secretary (Minister) for Sports, Culture and Heritage, Amb Dr Amina Mohammed at the Dar es Salaam State House. President Samia to pay an official visit to Kenya for the sake of cementing further the existing diplomatic cooperation. “He has also assured President Samia of Kenya’s determination to maintain and strengthen the bilateral ties for the greater interest of the two parts,” read further part of the statement. Apart from President Samia and Amb Amina Mohammed, others in attendance at the talks yesterday were the Kenyan High Commissioner to Tanzania Dan Kazungu, Tanzania’s Chief Secretary Amb Hussein Kattanga and the Minister for Foreign Affairs and East African Cooperation, Amb Liberata Mulamula. President Kenyatta who doubles as the Chairperson of the EAC was among heads of state who attended the state funeral of the late Dr Magufuli at the Jamhuri Stadium in Dodoma on March 22. In his speech, Mr Kenyatta said the two countries will continue working together. Speaking of the...

EAC to tap from German Hannover trade fair

THE East African region is gearing to tap into opportunities emerging from the upcoming German Hannover trade fair (Hannover Messe), slated for the 12th -16th April this year. Hannover Messe is the world’s largest and impactful trade fair for promoting industrial technologies, usually held annually in Hannover City, Germany. This year, the fair will sustain its innovative knack as a hybrid knowledge and networking platform, allowing East Africans to participate virtually. The East African Business Council (EABC) in partnership with GIZ- Business Scouts for Development Programme, funded by the German Ministry for Economic Cooperation, BMZ today held a webinar to explore challenges and risks inhibiting industrial transformation in the region and shared insights on opportunities that the bloc can benefit from participating in the fair and its huge conference programme. Additionally, the webinar acted as a kick-off for an upcoming virtual fair training for business organisations fair organisers slated beginning May, 2021; courtesy of Business Scouts for Development. Speaking during the event, EABC Chief Executive Officer (CEO), Dr Peter Mathuki called for digitalisation in the region and exploration of partnerships to diversify the manufacturing base. “Industries in East Africa have been able to repurpose and transform amid the pandemic. Strategic partnerships between Europe and East Africa should build the capacity of industries to tap into the opportunities of the EAC Common Market and African Continental Free Trade Area of 1.3 billion consumers,” Dr Mathuki said. Foreseen opportunities of the Hannover Fair include: exploration of latest developments and know-how within the...

Tanzania-Kenya redefining relations as President Samia seeks a new era for East Africa

Tanzanian President Samia Suluhu Hassan is set to redefine the Tanzania-Kenya relations. Bilateral ties between Kenya and Tanzania have been blowing hot and cold for decades now, with the row playing out publicly during the era of the late President John Pombe Magufuli. Disputes seem to be always never far from the surface and only a slight spark is enough to ignite a diplomatic tiff such as the one that was playing out during Magufuli’s era. However, President Samia is seeking to bring a solution, and maintain a good relationship between the two neighbouring countries. President Samia on Saturday, April 10, 2021, said that her administration is determined to solve some of the issues existing between Tanzania and Kenya. The Tanzanian head of state said this in a statement to the media after meeting a special envoy from President Uhuru Kenyatta of Kenya. She said that she will pick from where her predecessor the late Magufuli left. At the same time, Suluhu directed the Joint Permanent Commission (JPC) between the two countries to meet and come up with plans that can strengthen the Tanzania-Kenya relations. The commission met for the last time in 2016. President Kenyatta’s message Uhuru’s message to his counterpart was delivered by the Sports CS Amb. Amina Muhamed. In his message, Uhuru assured Suluhu that Kenya is ready for a bilateral talk that will strengthen the bond between them. Uhuru has also invited Suluhu to make her first visit to Kenya as the president. Also Read: How...

Kenya, Tanzania move to deepen relations

Tanzania’s President Samia Suluhu Hassan has agreed to revive formal interactions with Kenya, which would be done through a joint organ with representatives from the two countries. On Saturday, President Hassan received a message of goodwill and an invitation to visit Kenya from President Uhuru Kenyatta. But the matter at hand was to bring to life the Joint Co-operation Commission, seen as a better way of handling frequent trade spats between the two countries. Saturday’s event at State House Dar es Salaam came as the Tanzanian leader prepared for her maiden trip as Head of State to Uganda, where she is expected to sign a deal for the1,443km oil pipeline from Uganda’s Albertine Basin to Dar es Salaam; a transaction that is expected to boost relations between Dar and Kampala. The $3.5 billion (Sh374 billion) project that involves oil giants Total and China’s CNOOC could be a launchpad to more joint projects. The pipeline will need lots of electricity, attendant roads and railway and could provide jobs for the engineers and other related specialists. In Kenya, the pipeline project agreed in principle in 2016, is seen as a diplomatic coup by Tanzania, after Nairobi spent years courting Kampala for the project to pass through Kenya. Tanzanians pitched free land, enhanced security and a project that could cost $1 billion (Sh107 billion) less than what Kenya had proposed. First delegation On Saturday, President Kenyatta, who is the current chairman of the East African Community, sent veteran diplomat Amina Mohamed, the Sports...