News Tag: Tanzania

East Africa: Burundi Now Safe for Us, Says EAC

After a year of uncertainty since protests against President Pierre Nkurunziza's decision to run for a third term in office began, the East African Community has now declared Burundi safe to host its activities. The EAC suspended its activities in Bujumbura in the run-up to the June 2015 elections at the height of protests by activists who insisted that Nkurunziza's candidacy violated the Constitution, even though the country's highest court had cleared him to run for the presidency. Last week, an EAC security mission comprising representatives from the other four partner states was in Burundi for four days to assess the situation. The team released a report showing that they were satisfied that the security in Burundi "is satisfactory for continuation of activities with minimal risk to staff and delegates." The mission comprised the assistant director in Tanzania's Ministry of Foreign Affairs and EAC, Aman Mwatonoka, Uganda's director of strategic intelligence at the military headquarters, Lt-Col David Lumumba, advisor on EAC Affairs in Burundi's Ministry of Public Security, Emmanuel Niyonizigiye, and the director of political affairs in Kenya's State Department for EAC Ministry, David Njoka. According to the delegation, Burundi has returned to normalcy especially in the capital which has been a hotspot for violence that claimed more than 500 lives and led to thousands fleeing the country. Kenya's ambassador to Burundi Ken Vitisia, asked the East African countries to support the country end the political crisis. "Burundi has a lot to give back to the Community especially in the...

Blow for flower exporters as Dar stabs Kenya where it hurts most

The decision by Dar to bolt out of the comprehensive Economic Partnership Agreement (EPA) between East African Community (EAC) and the EU leaves Kenya’s exports exposed to heavy taxes. These taxes have been estimated to range from eight to 12 per cent of the value. Kenya exports tea, coffee and flowers to the 28-member market which has lately been pushed into a fire-fighting mode after citizens of one of its members, Britain, voted to leave the union. The decision which has come as a shocker to other members of the EAC might also spell doom to more than 600,000 workers mainly in the flower farms and fresh foods producers. Friday, Tanzania’s Permanent Secretary for foreign Affairs Dr Aziz Mlima said his country would not sign the EAC-EU EPA citing ‘turmoil’ in the EU occasioned by the impending exit of the United Kingdom. Apart from Kenya, the other four EAC member States - Tanzania, Rwanda, Burundi and Uganda- which are still classified as least developed countries (LDCs) will not be affected by this development as their low economic status allows them to access the EU market tax-free. “Tanzania has been proving difficult and slow in firming up the new deal, which if not actualised by end of September, it will have serious implications,” said a senior government official, who asked not to be named. He added, “Tanzania’s decision is not surprising, going by her behaviour lately.” President Uhuru Kenyatta informed the African, Caribbean and Pacific (ACP) ambassadors in Brussels, Belgium recently...

Tanzania backs out of EAC deal with EU over Brexit

Tanzania has said it will not sign an economic partnership agreement (EPA) between East Africa Community (EAC) and European Union (EU) following Brexit. The announcement caused anguish and shock at the EAC headquarters in Arusha. A number of officials at the Secretariat were apparently at a loss on Friday on learning of the country's U-turn as announced in Dar es Salaam by Foreign Affairs permanent secretary Aziz Mlima. "Has the Tanzania government withdrawn?" inquired a surprised official who said if it was true, the move would be a setback to the negotiations which have been going on for years between EAC and EU. On Friday, Dr Mlima told reporters in Dar es Salaam that Tanzania had decided to halt the signing because of “turmoil” that the EU is experiencing following Britain’s exit. The agreement between the EU and EAC was scheduled to be signed on July 18. Dr Mlima said signing the pact would risk exposing young EAC countries to harsh economic conditions given the prevailing conditions in Europe. The official said Tanzania’s Parliament would first peruse and advise the government before committing to the deal. “Our experts have established that the way it has been crafted, the EPA will not benefit local industries in East Africa. Instead it will lead to their destruction as developed countries are likely to dominate the market,” Dr Mlima said. Dr Mlima's remarks echoed strong criticism of the pact by former president Mkapa who warned EAC not to rush to sign the pact because...

More investors wooed as Tanzania-India Business Forum inaugurated

The Premier was speaking during the launching of the Tanzania- India Business Forum, which aimed at promoting partnerships to accelerate investment and trade between the two countries. He said Tanzania invites investors in plantations and food processing industries. The forum brought together 50 big investors from India and Tanzanian businessmen. The Indian investors arrived in the country on Saturday with Prime Minister Modi. “We have opened doors for both local and international investors. Indian investors are warmly invited to invest in various areas in the country,” he said. He mentioned some potential areas for investment as industries, infrastructure, tourism, mining and agriculture. According to Mr Majaliwa, promotion of industries will boost agriculture production in the country since Tanzanian farmers will be able to enjoy reliable market for agriculture products. “It is obvious that the revival and growth of industries will promote agriculture and boost economic growth for both the government and farmers,” said Mr Majaliwa. He assured his audience that the Tanzania Investment Centre (TIC) was so far performing well in its role as a one-stop-centre for investors. “Officials from the Ministry for Industry and Trade, Business Registration and Licensing Agency (BRELA) and Tanzania Revenue Authority (TRA) are all available at TIC’s head offices. They are stationed there to offer quick services to both local and international investors”, he stated. The Minister for Industry, Trade and Industries, Mr Charles Mwijage, said the government was doing everything in its power to learn from successful countries, mentioning India and Vietnam as among...

India, Tanzania to broaden ties on agriculture, manufacturing and small scale industries

India and Tanzania on Sunday pledged to broaden cooperation to include areas of potential such as manufacturing, development of small scale industries for rural developmental needs and in food and agricultural sectors. "The two leaders agreed that it was imperative to broaden cooperation to include potential areas such as gas exploration, manufacturing, development of small scale industries for rural developmental needs, power production and distribution, infrastructure development, agriculture especially in crops like pulses," said a joint statement issued at the end of high-level talks led by Prime Minister Narendra Modi and Tanzanian President John Magufuli. Both leaders sought to ensure "greater cooperation" in the area of scientific cooperation between the two countries besides in areas like power production and distribution, gas exploration and usage, mining and information technology. Recognizing that development partnership is an important facet of bilateral relations, Tanzania side expressed appreciation for India's continued commitment towards supporting its development efforts through providing technical and capacity building training and extension of developmental projects using grants and concessional credits. President Magufuli appreciated India's consistent support in the provision of training slots offered annually to Tanzanian officials and specialists in multiple fields including information technology, entrepreneurship, management, SMEs, rural development, agriculture, defence, and parliamentary studies. Prime Minister Modi affirmed India's continued readiness to extend further support towards development objectives of the government of Tanzania in line with its development vision, the joint statement said. He also announced the donation of a radiation therapy machine 'Bhabhatron' to Bugando Medical Centre, Mwanza. The...

Magufuli and Kagame pledge to address challenges along the Central Corridor

PRESIDENTS John Pombe Magufuli (Tanzania) and Paul Kagame (Rwanda) have pledged to continue taking swift measures that are meant to eradicate non-tariff barriers in order to spur trade between the two countries and the East African region at large. The Heads of State have concurred that removing barriers to trade could increase more benefits to the people of the two countries, who already enjoy historic brotherhood relationship. Speaking during the Official visit of President Kagame in Dar es Salaam on 1st July, 2016, President Magufuli outlined measures taken by Tanzania to improve the Dar es Salaam Port and road network along the central corridor. President Magufuli said in the past there were some challenges of bureaucracy at the Dar es Salaam Port and huddles along the corridor but now a lot has changed thanks to government interventions. “We are making sure that our port become more efficient. I would like to assure businessmen that the Dar Port is now peaceful, just like its name (Dar es Salaam means the port of peace). Other measures he said were reduction of weighbridges for transit trucks and buses from eight to just three from Dar es Salaam to the borders with Rwanda, Burundi and DR Congo. According to President Magufuli, the two Presidents bi-laterally agreed that Tanzania should set aside land for the construction of an Inland Container Terminal for all transit goods destined to Rwanda to reduce bureaucracy. Tanzania will also station in Rwanda liaison officers from Tanzania Port Authority (TPA) to...

East Africa: Uganda-Tanga Oil Pipeline Stakeholders Mull Holding Company

Stakeholders in the envisaged 4-billion- US dollar crude oil pipeline from Kabale in Uganda to Tanga Port in Tanzania are finalising drafting contracts to establish a company that would oversee implementation of the mega project, it has been learnt. Parties in the scheme include the governments of Tanzania and Uganda as well as Total E&P of France, Tullow Oil of the United Kingdom and China National Offshore Oil Corporation (CNOOC). The Managing Director of the Tanzania Petroleum Development Corporation (TPDC), Dr James Mataragio, told the 'Daily News' at the ongoing 40th Dar es Salaam International Trade Fair (DITF) that the company will be known as Pipeline Company (PIPECO). According to the TPDC boss, PIPECO will be charged with seeking funds, procuring goods and services and operating the oil pipeline. "In essence the project has already started but physical work will kick-off after final investment decision is reached by mid next year," he explained. He added; "The envisaged company will have to seek 60 per cent of the funds to implement the project while the involved stakeholders will foot the remaining 40 per cent." Tanzania will charge Uganda 12.5 US dollars for a barrel of oil while the former has also been invited to own 8 per cent shares in an oil refinery to be set up in Hoima to refine oil for countries in the East African region. Asked whether Tanzania had plans to set up a refinery in Tanga, Mr Mataragio said the country is not considering setting up the...

East Africa: Zimbabwe Traders Target Tanzania, East Africa Market

Tanzania's market, with close to 50 million consumers, has caught the attention of Zimbabwe investors who now plan to grab the opportunities to boost intraregional trade. A recent survey by Zim Trade reveals Tanzania market presents an opportunity for locally manufactured products in pharmaceuticals, agricultural supplies, construction, engineering, safari clothing and footwear, Zimbabwe's daily newspaper, The Herald reported. According to the findings, Tanzania's pharmaceutical market has an annual budget of more than 500m US dollars and the investors are now planning to venture into the market with pharmaceutical products basing on the findings that Tanzania and Zimbabwe have more or less similar disease pattern. While disseminating the results to local companies in both Harare and Bulawayo, Africa Corporate Adivisors Director, Malverin Rusike underscored the need to tap into the sector. "We have the capacity to tap into the Tanzanian market pharmaceuticals sector and this is the time to do so. Our local companies could engage key buying institutions such as the Medical Stores Department (MSD) which has a 60 per cent market share," he said. Opportunities were also identified in the agricultural sector, which is largely subsistence but contributes more than 25 per cent to the economic output. ZimTrade Chief Executive Officer, Ms Sithembile Pilime, urged local companies in Zimbabwe to venture into Tanzania's market taking advantage of the country's booming economy. Tanzania's economy is expected to grow by 20 basis points to 7.4 per cent in 2017, the Central Bank said in its recent monetary policy statement. According to...

Uganda-Tanzania Pipeline Project Starts January

Hoima — Construction of the Uganda-Tanzania crude oil export pipeline is planned to start in January next year, Uganda's Energy minister Irene Muloni has said. Ms Muloni, who led a Ugandan team that held closed door discussions with the Tanzanian delegation in Hoima Town on Tuesday, told the media that the two countries had agreed to fast-track the project which will cover 1,443 kilometres. The construction of the pipeline, meant to export the Ugandan crude oil to the international market, is planned to be finalised by 2020. Oil explorers have discovered more than 6.5 billion barrels of crude oil reserves from about 40 per cent of the Albertine basin in western Uganda. Uganda's new round of oil exploration licensing may see the country increasing its petroleum reserves, if the surveys prove positive. "Every activity in respect to the project will be done in a fast tracking mode. We have agreed to meet in Tanga (Tanzania) in October this year to launch the front-end-engineering-design for the project," Ms Muloni told the press at Miika Eco Resort and Hotel, where the meeting was held. She added that feasibility studies estimate the project to cost $3.55 billion. Land acquisition assessments, surveys, environmental and social impact studies will be conducted before construction starts. She said a pipeline company will be set up and Uganda, Tanzania and other interested East African states will have shares in it. "The pipeline is very attractive and viable. Securing financing will be explored in much detail. Contacts are being...

East Africa: Tanzania-Rwanda – How to Be Good Friends, Again

Dar es Salaam — With Tanzanian President John Magufuli having hosted his Rwandan counterpart, President Paul Kagame, on a recent two-day state visit that began on July 1, it's now time for the two countries to inject useful supplementary ingredients into their good neighbourliness, friendship and cooperation. After the frosty diplomatic relations that seemed to go downhill during the Kikwete administration, Tanzania and Rwanda are walking out of the woods. That President Magufuli visited Rwanda in his first official trip abroad in April this year and President Kagame has - within a space of just three months - made effort to reciprocate the visit points to a turning point in the recent history of Tanzania and Rwanda, two of the five member countries of the East African Community (EAC). By President Magufuli publicly extending his thanks to President Kagame at a joint press conference in Dar es Salaam for advice offered on how Tanzania could, for example, acquire good planes for its national carrier Air Tanzania in a brief period of time, the two leaders sent a clear signal that, Tanzanians and Rwandans were opening a "new chapter" in diplomatic relations, bilateral trade and economic cooperation, espousing the wider cause of reinforcing the EAC, whose current chair is President Magufuli. During his two-day visit, President Kagame officially inaugurated the 40th Dar es Salaam International Trade Fair (DITF), held annually at the Saba Saba grounds in Dar es Salaam. Besides this, the Rwandan president also charted with his host, President Magufuli,...