Tanzania: TCC Boosts Samia’s Clean Cooking Campaign

Tanzania: TCC Boosts Samia’s Clean Cooking Campaign

Temeke Municipal Counci Mayor, Abdallah Mtinika (in black coat) handing over a gas cylinder to one of the beneficiaries of gas cylinders donated by Tanzania Cigarette Public Limited Company ( TCC Plc) to women entreprenuers from Temeke.

The donation, is part of TCC’s countrywide campaign to distribute over 2000 gas cylinders to women entrepreneurs as a way of encouraging the use of clean cooking energy.

At the centre is TCC’s Corporate Affairs and Communications Director, Patricia Mhondo and other dignitaries.

Source: allafrica.com

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What new investment schemes are doing to attract unit trust clients

New entrants in the budding collective investment schemes industry have leveraged technology and low entry thresholds to drive greater retail participation while taking the fight to legacy fund managers.

The newbies, who include Kuza Asset Management, Enwealth Capital and Etica Capital, have for instance grown assets under management (AUM) in the collective schemes to a total of Sh1.6 billion as of March 2024 in just over a year since setting up shop, according to data from the Capital Markets Authority (CMA).

The new breed of fund managers have multiplied their assets under management in an industry already controlled by legacy players including insurers CIC, Britam, Sanlam and asset manager ICEA.

 In the quarter to March, Etica Capital saw its unit trust assets rise the highest, tripling to Sh1 billion from just Sh275.5 million in December 2023.

 In contrast, CIC, the largest collective investment scheme with a market share of 27.5 percent, saw a 2.2 percent drop in assets under management to Sh61.9 billion from Sh63.3 billion.

Britam and ICEA also marked a 5.3 percent and 1.9 percent contraction in assets respectively in the same quarter.

 According to Kenneth Maina, the co-founder of Etica Capital, technology including a paperless onboarding process and round the clock customer support has played a central role in the growth.

“A client can onboard from anywhere without needing forms. They can come in, deposit and even upload their know your customer credentials online and also withdraw without ever speaking to anyone. We also offer customer service 24/7 even on weekends and holidays which the big boys often don’t,” he noted.

He added: “We have also targeted a mass market with an entry level of as low as Sh100. Those individuals were not served before and that’s why after 15 months we have over 36,000 clients.”

The CMA has so far approved 36 collective investment schemes made up of 150 funds.

Despite the seemingly saturation of the market, the assets under management of the funds have grown from Sh56.6 billion in March 2018 to Sh255.4 billion as of March 31, 2024.

At the same time, the industry has continued to draw in more players with CMA issuing a record number of licences in the past year.

Xeno Investment Management is one such licensee set to debut its unit trust scheme later this year which shall comprise of a money market fund, an equity fund and a fixed income fund with the minimum investment amount set at Sh500.

Xeno CEO and founder Aeko Ongodia said he sees the potential to still tap new participants despite the saturation of players by going for the mass market which he terms as underserved.

 According to Mr Ongondia, new entrants can find success by focusing on financial inclusion and reaching the highest number of retail clients as opposed to legacy fund managers who might view unit trusts as just another revenue line for a larger business.

“There has been a publicising of returns and AUM but not as much emphasis on the number of participants. When you look into the number of participants, there are just about 200,000 unique accounts. This means there is still very low coverage given the size of the Kenyan population,” he said.

Collective investment schemes are pools of funds that are managed on behalf of investors by a professional fund manager.

In return for putting money into these funds, the investor receives units that represent their pro-rata share of the pool of funds assets.

The unit trusts may take the form of equity funds, bond/fixed income funds, balanced funds, money market funds and special funds.

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Serikali bado inachunguza kesi ya waliokuwa ‘vigogo wa bandari’

Dar es salaam. Serikali imesema bado inaendelea na uchunguzi dhidi ya aliyekuwa Mkurugenzi Mkuu wa Mamlaka ya Bandari Tanzania( TPA) Madeni Kipande (66) na wenzake watano wanaokabiliwa kesi ya uhujumu uchumi.

Kipande na wenzake wakikabiliwa na mashitaka matatu likiwemo la kuisababishia mamlaka hiyo hasara ya dola za Marekani 1.85 milioni sawa na Sh4.2 bilioni.

Wakili wa Serikali, Winiwa Samson ameieleza Mahakama ya Hakimu Mkazi Kisutu, leo Mei 29, 2024, wakati kesi hiyo ilipoitwa kwa ajili ya kutajwa.

Samson amesema hayo mbele ya Hakimu Mkazi Mkuu, Anna Mabutu, wakati shauri hilo lilipoitwa kwa ajili ya kutajwa.

Hata hivyo, kutokana upelelezi wa shauri hilo kutokukamilika, aliomba mahakama ipange tarehe nyingine kwa ajili ya kutajwa na kuangalia kama umekamilika.

Hakimu Mabutu alikubaliana na maelezo hayo na kuahirisha kesi hiyo hadi Juni 27, 2024, itakapotajwa na washtakiwa wapo nje kwa dhamana.

Mbali na Kipande, washtakiwa wengine katika kesi hiyo ya uhujumu uchumi namba 38/2022 ni Peter Gawile (58) aliyekuwa Ofisa Rasilimali Watu wa TPA na mkazi wa Mianzini, Casmily Lujegi (65) mkazi wa Mbezi Juu na Mwenyekiti wa Bodi ya Manunuzi wa TPA, Mashaka Kisanta (59) Mkurugenzi wa Idara ya Manunuzi, Kilian Chale (51) Kaimu Mkurugenzi Idara ya Teknolojia ya Habari na Mawasiliano pamoja na Andrew John.

Kwa mujibu wa hati ya mashitaka, washtakiwa wanadaiwa kati ya Oktoba Mosi, 2014 na Oktoba Mosi 2020 Dar es Salaam, walikula njama ya kutenda kosa la kuisababishia TPA hasara ya Sh4.2 bilioni.

Pia, kati ya Januari Mosi, 2015 hadi Februari 17,2015 washitakiwa kwa pamoja wakiwa maofisa wa TPA, walitumia madaraka yao vibaya kwa kutangaza zabuni namba AE/016/2014-15/CTB/G/39 kwa nia ya kujipatia dola za Marekani 1,857,908.04 .

Shitaka la tatu, inadaiwa kati ya Oktoba Mosi, 2014 na Oktoba Mosi, 2020 eneo la TPA na maeneo mengine ya Dar es Salaam, washtakiwa kwa makusudi walitangaza zabuni ya Enterprises Planning Resources (ERP) bila kupata kibali cha bodi ya zabuni ya mamlaka hiyo na kushindwa kufuata kanuni za zabuni, hivyo kutoa malipo ya awali ya asilimia 40 bila idhini ya bodi hiyo, jambo lililosababisha TPA hasara ya dola za Marekani 1.8 milioni ambazo ni sawa na Sh4.2 bilioni.Continue Reading

Tanzania’s Dams – Flood Risk Depends On How They’re Planned and Operated

The Rufiji River, which drains into Tanzania’s south-east coast, experienced a major wave of flooding in April 2024. The flooding caused tragic loss of life and affected at least 88,000 individuals. More than 28,000 hectares of crops were damaged.

There has been much debate in Tanzania on the causes of this disaster, particularly the presumed role of the new Julius Nyerere Dam, which is built on the river. Barnaby Dye has studied the development and funding of dams, including those in Tanzania. He provides some insights into the potential risks and solutions.

What are the large dams in Tanzania and what were they built for?

Tanzania has a long history of dam building, from its early independence days in 1961. The country’s founding leader, Julius Nyerere, inaugurated the small Nyumba Ya Mungu hydroelectric plant in 1968. A steady programme of large dams followed. These included the dual Kidatu and Mtera dams completed between 1975 and 1988. The New Pangani Falls dam and Kihansi were completed in the mid to late 1990s.

The primary goal for all these dams was hydropower, which has historically dominated Tanzania’s electricity mix.

The 20th century also saw the dominance of an ideology trumpeting the power of these dams – and their electricity – to transform Tanzania’s economy into an industrialised society. The long-planned Stiegler’s Gorge Dam, in particular, which was recently renamed the Julius Nyerere Hydropower Project, captured these development dreams. They were part of Nyerere’s socialist vision for creating a so-called modern developed country.

However, a reliance on hydropower in the 21st century has plunged the country into repeated power cuts during droughts. Hydropower is also being questioned, given long build times, and environmental and social costs. There was a fall in dam building as the government prioritised quicker-win, and sometimes deeply corrupt, gas and oil plants.

This changed with the arrival of President John Magufuli (2015-2021), who decided that the Julius Nyerere 2.1 gigawatt megadam was the answer to Tanzania’s development and electricity needs. He refocused stagnant planning efforts and construction started in 2018.

Six years later, the dam is nearing completion, with the main dam wall and reservoir in place and first turbines operational.

Do any of these dams pose particular risks in the event of flooding?

Dams can prevent floods, storing water in large reservoirs and slowly releasing it downstream. But they can also make flooding worse, or trigger a disaster.

Dam collapses caused by poor maintenance, incorrect operation, or inadequate planning and construction quality are among the worst human-made disasters. The 2019 collapse of a Brazilian dam, for example, killed at least 250 people. China’s 1975 dam disaster killed 240,000 people after heavy rainfall overwhelmed a series of dam walls.

None of Tanzania’s dams have been built primarily for flood control. Most 20th Century dams operate more like run-of-river projects, meaning that they are built to constantly produce electricity and not to store significant volumes of water from the rainy season for drier spells. Therefore, with the exception of Mtera Dam, Tanzania has not historically had the storage reservoirs to prevent significant flooding.

The Julius Nyerere Dam could be different given its large reservoir. However, some media reports blamed the Julius Nyerere Dam for the 2024 floods,, as the new hydropower project sits directly upstream of the area that flooded in April. Other reports argued that it prevented a worse flood. It’s difficult to judge as little has been released about the current design and operation of the nearly-complete dam.

Earlier versions of the design envisaged a large storage dam. So it’s plausible that the dam is benign, as the government has claimed. Official spokespeople insisted that it prevented flooding in 2023 when the reservoir was being filled.

Without the necessary information, though, it’s impossible to reject arguments that the dam caused the destructive flooding. Tanzania has endured painful and constant power cuts. Thus, it is plausible that the government sought to maximise electricity generation from the new dam. Such a strategy would involve keeping the reservoir at its highest level over time. This could leave authorities ill prepared to store water from abnormally heavy rains like those experienced across east Africa in 2024.

As the reservoir approached dangerously high levels, dam operators would need to suddenly release as much water as possible to prevent it from overflowing and breaking the dam wall. Such actions, while preventing a worse dam collapse, would have caused severe flooding. Indeed, officials from the state-owned electricity utility reportedly stated that a release from the Julius Nyerere Dam caused April’s floods.

Thus, Tanzania’s dams, like others around the world, constitute a flood risk whose likelihood depends on how the dams are planned and operated.

What are some solutions to the flood risk?

Climate change models predict increased rainfall variability, and therefore more floods, in Tanzania’s future. Given the inherent risk of emergency dam releases in the short term, the government needs an effective early warning system to alert those downstream when water releases occur. Such a system seems to have failed this year.

Longer-term solutions should focus on slowing water and addressing the ultimate cause of flooding: having too much water in too short a time.

The government’s proposal involves construction of more dams. In my view, this approach to flood control seems shortsighted. These dams could worsen, rather than solve, extreme floods. And planned dams are designed only for hydropower – they leave little storage for flood prevention.

New dams on the Rufiji River come with major trade-offs as they pose a risk for other economic mainstays:

Natural infrastructure that slows water movement, like wetland or groundwater capture, holds the best potential. It is a cheaper, more effective solution, with economic opportunities for livelihood diversification. Equally, adaptation may hold the key, as researchers Stéphanie Duvail, Olivier Hamerlynck and colleagues found in thier participatory study. Changing housing and agriculture to cope with periodic flooding would allow Tanzania to enjoy the economic benefits that natural river floods bring.

Barnaby Joseph Dye, Lecturer, University of York

Source: allafrica.com

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Tanzania: How Dr Mwinyi Successfully Tackles Youth Unemployment in Zanzibar

LESS than two years remain before President Hussein Ali Mwinyi concludes his initial five-year term in office, leading up to another general election for Zanzibaris in late 2025.

When he started his term on November 3, 2020, he was tasked by his political party, Chama Cha Mapinduzi (CCM), among other assignments, to generate at least 300,000 job opportunities for the youth, as outlined in the party’s 2020/2025 election manifesto.

Preliminary results following a study about employment status, for both formal and informal sectors, show that the total number of jobs generated from November 2020 to September 2023 is 187,651, with women grabbing the biggest share – 94,622 (50.4 percent) while men 93,029 (49.6 percent).

Briefing journalists about the development of his office since Dr. Mwinyi assumed office, the Minister of State – Office of the President (Labour, Economy, and Investments), Mr Sharif Ali Sharif, said the President is almost beating the job creation target.

The Minister commended Dr. Samia Suluhu Hassan, President of the United Republic of Tanzania, and Dr Mwinyi for their efforts in creating an enabling environment to increase job opportunities that contribute to building the country’s economy and uplifting people’s lives by promoting Tanzania internationally, leading to job creation.

“I urge my fellow Tanzanians to maintain the existing peace and stability, prerequisites in achieving all development goals,” he said, adding that having a new Zanzibar Investment Law No. 10 of 2023, as well as the amendment of the labor law No. 11 of 2005, has also helped promote investment and create a conducive working environment on the isles.

Mr Sharif explained that Dr. Mwinyi has been sparing no effort in finding opportunities for his citizens and that the people of Zanzibar have witnessed great progress, especially in strengthening investment and economic empowerment, which also leads to economic growth of Zanzibar, which has grown from 6.8 per cent in 2022 to 7.1 per cent in 2023.

Improving the ability of entrepreneurship, promoting internal and external investment, and promoting access to decent jobs, along with empowering young people to be self-employed by providing loans, training, and connecting them with markets, has helped many youths,” Sharif said.

He said that in addition, his ministry in 2023/2024 successfully increased jobs by 65.9 percent due to confirmed contracts from 6,348 jobs in 2022/2023 to 9,630 in 2023/2024 employed in private schools, hotels, and the industry sector.

The availability of employment abroad has also been increasing from 1,080 jobs in 2022/2023 to 3,078 jobs for the fiscal year 2023/2024. Youth are helped to acquire jobs abroad, particularly in Middle Eastern countries.

“This increase is due to growing good relations with foreign countries and also strengthening Public-Private Partnership (PPP) and economic diplomacy.

“The government also has provided loans to 9,123 beneficiaries in 2022/2023 worth about 15.8bn/- and 2,045 others worth more than 7.9bn/- in both Unguja and Pemba,” he said youth get self-employed by establishing projects and businesses of their choice.

He said another opportunity for job creation is by the implementation of distribution funds collected from Local Government Authorities (LGA) to women, youth, and people with disabilities at the ratio of 4:4:2.

Last year, a total of 2.1bn/- was collected, but it is not enough to meet the big demand for the youth to get loans, “Fortunately, the World Bank has agreed to top-up by providing funds for the youth support program.”

In additional development in increasing job opportunities for youths and women, the Ministry registered 1,822 cooperative associations in the year 2022/2023 and 1,560 associations for the year 2023/2024 with the aim of promoting efficiency so that they can operate well and contribute to the economic growth of the country.

He explained that they also provided training to entrepreneurial cooperatives engaged in beekeeping, fruit and vegetable farming, solar power equipment manufacturing, marketing, and bakery, and they have been getting training.

The entrepreneurs were connected with various markets through exhibitions including East African trade exhibitions, Sabasaba international trade fair, and Mapinduzi exhibitions, where the number of entrepreneurs connected to markets has increased from 148 entrepreneurs in 2022/2023 to 194 in 2023/2024.

The executive director of the Zanzibar Investment Promotion Agency (ZIPA), Mr. Saleh Saad Mohammed, said that the registration of 63 investment projects with capital worth US1,499 million dollars and expects to provide about 4,392 jobs.

In addition, he said that more projects are being registered and that 12 major investment projects were launched by laying the foundation stone during the celebration of the 60th anniversary of the Zanzibar Revolution.

He said his office has signed agreements for the establishment of huge projects in the Telecommunications, Transportation, and Infrastructure Sector worth US302 Million Dollars and also coordinated the signing of four Memorandum of Understanding (MoU) in the Energy Sector, Telecommunication Sector, and Banks including NMB and NBC.

The issuance of work permits to 2,960 foreign workers, which is 148 per cent of the target, has led to the collection of more than 2.6bn/- “This is due to changes made on both investment and immigration laws, extending the permit period from one year to two years, and other incentives.”

He said that in the 2024/2025 fiscal year, which starts in July this year, the office will coordinate the availability of 3,500 jobs abroad and 15,000 jobs in the local formal sector as well as developing skills for 110 young people to be self-employed.

Source: allafrica.com

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Mabadiliko tabianchi yanavyowakimbiza jamii ya wafugaji

Arusha/Manyara. “Tulikuwa na ng’ombe watano na mbuzi 10. Ukame ulipozidi ng’ombe wote walikufa na kubakiwa na mbuzi watano pekee.”
Ni kauli ya Helena Leiyan, mama wa watoto wanne aliyeachwa na mume wake tangu mwaka 2019.

Helena, anayeishi katika Kijiji cha Terrat wilayani Simanjiro, Mkoa wa Manyara anasema hali ya ukame ilipozidi, mume wake aliuza mbuzi waliosalia kisha kutoweka.
“Maisha yalizidi kuwa magumu baada ya baba kuondoka.

Awali alikuwa akifanya kazi za vibarua kwenye mashamba ya watu na shughuli nyingine, lakini haikutosha. Ilibidi aondoke bila kuaga. Hatujui kama yuko hai au amekufa, hajawahi kuwasiliana nasi,” anasema Helena, ambaye watoto wake wana umri wa miaka tisa, 11, 16, na 17.

Helena anasema mume wake, Leiyan Nelukendo alipoondoka aliendelea kulea wanawe kwa shida hadi mwaka 2023 hali ilipozidi kuwa ngumu zaidi, akatafuta msaada kwa ndugu wa mume wake.

“Tulikuwa wake wawili, mwenzangu na watoto wake wawili walirudi kwao baada ya mume kuondoka. Nilikaa hadi mwaka jana nilipokuja hapa, walinikaribisha,” anasema.
Helena na watoto wake wanaishi kwa kaka wa mume wake, Isaya Nelukendo.
Watoto wawili walikuwa shuleni wakati huo, ingawa ilikuwa Jumamosi kwa sababu wanajiandaa kwa mtihani wa Taifa.

“Tunashukuru kuwa na mahali pa kuishi, lakini nahitaji kuwa na shamba au mifugo. Mume wangu hakuacha, lakini kama nikipata nitampunguzia mzigo huyu baba,” anaeleza.

Isaya anasema, “Hatujui alipo (Leiyan), niliwahi kusikia yuko Mirerani. Hii ni familia yake (Helena na watoto wake), kwa hivyo ni yangu pia, na nina wajibu wa kuwasaidia.”

Akizungumzia kuhusu kumpatia Helena ardhi au mifugo, Isaya anasema angefanya hivyo kama angekuwa navyo, lakini alichonacho hakitoshi.

“Tutakula tulicho nacho Mungu atakavyojalia. Pia watakaa hapa hadi watakapoweza kujitegemea,” amesema.

Kuondoka kwa wanaume na kuacha familia zao si jambo geni katika maeneo haya. Nilikutana na mama wa makamo aliyejitambulisha kwa jina la Naitapuaki Lukas anayeishi katika Kijiji cha Oloswaki.

Naitapuaki, anayeishi na mume wake mzee anasema: “Tulikuwa na watoto wawili, walipokua waliondoka na hatujui walipo.”

Anaamini wanawe wapo mjini akisema, “Sijui kama wako Mirerani au Dar es Salaam. Hawajawasiliana nasi kabisa tangu walipoondoka.”

Naitapuaki na wanawake wengine sita wanaeleza si kijiji chao pekee, wanaume wameondoka kutoka vijiji jirani pia.
Kuna wanaume ambao licha ya ugumu wa maisha, wameendelea kujihusisha na shughuli nyingine.

Nilikutana na Noah Lukas katika Kijiji cha Oloswaki, anayejishughulisha na kilimo cha umwagiliaji na ufugaji.

“Ufugaji umekuwa mgumu kutokana na kupungua ardhi ya malisho. Ingawa nina mbuzi wachache, lengo langu kuu ni kilimo. Tunashukuru Serikali kuleta maji karibu. Nauza mboga na naweza kusaidia familia yangu,” anasema.

Wamasai mijini

Katika maeneo mengine ya mijini kama vile Dar es Salaam na Zanzibar, kuna watu wa Kabila la Masai wanaojihusisha na biashara ndogondogo, kazi za ulinzi na wengine wanajihusisha na ususi wa nywele.

Katika eneo la Mwenge, Dar es Salaam, nilikutana na Naranda Saling’o, anayefanya biashara ndogo ndogo za kuuza pochi, mikanda, vikatakucha na vitambaa katika maeneo ya jirani.
Licha ya kuishi Dar es Salaam kwa zaidi ya miaka saba tangu alipoondoka nyumbani kwao Engarenaibor wilayani Longido, Mkoa wa Arusha, anakiri kupoteza mawasiliano na ndugu zake.

“Sina simu,” anasema kijana huyo, anayedai maisha yake hayajabadilika sana kwa sababu fedha anazopata hazitoshi kumudu maisha yake, ikiwemo kupata mahali pa kulala.
“Usiku ukiingia, ninalala popote. Hata nguo hii ndiyo pekee niliyonayo, naifua na kusubiri ikauke nivae.

Naoga mtoni na maeneo ninayoona kuwa ni safi,” anasema Naranda.
Akiwa na umri wa miaka 25, hana mipango ya kuanzisha familia kwa sababu hana mahali pa kumweka mwenza. Anasema hawezi kumudu mahitaji yake ya kila siku.

“Sina pesa, familia inahitaji pesa. Na ataishi wapi?” anahoji.
Kijana mwingine Joseph Nendukai, mlinzi wa moja ya majengo katika mitaa ya Sinza anasema alikuja Dar es Salaam mwaka 2017 kutafuta riziki.

“Nilikuwa na ng’ombe 20 na mbuzi 50, walikufa wakaacha ndama watatu tu na mbuzi 10. Hakukuwa na malisho na wengine walipata magonjwa,” anasema kijana huyo kutoka Kijiji cha Nanja, wilayani Monduli.

Nendukai anasema alimuacha mke na watoto wake wawili nyumbani chini ya uangalizi wa kaka yake. Anaeleza huwasiliana nao na huwasaidia.
Anasema huwa akiwatembelea angalau mara moja kwa mwaka au baada ya miaka miwili.

“Jamii zetu zimeathiriwa na ukame, mifugo mingi ilikufa, ndiyo maana wengi wetu tuliondoka nyumbani kutafuta riziki ili kusaidia familia,” anasema.

Viongozi wa vijiji

Kukiwa na matukio ya baadhi ya wanaume kuondoka na kuacha familia zao, viongozi wanasema si kwa kiwango kikubwa.

Mwenyekiti wa Kijiji cha Terrat, Kone Medukenya, anasema shughuli kuu za wakazi wa kijiji hicho ni kilimo na ufugaji.

Anasema kilimo kimekuwa kikienea zaidi kutokana na hali ngumu kwa ufugaji.
Anasema ukame umeathiri upatikanaji wa malisho na ustawi wa kaya nyingi.

“Kuna kesi nyingi tunazoshughulikia zinazohusu migogoro ya kifamilia inayosababishwa na ugumu wa maisha, watu wanahangaika kutafuta chakula na mifugo yao inakufa… wengine wameondoka na kuacha familia zao, ingawa si kwa kiwango kikubwa,” anasema.

Kiongozi wa kimila wa Kimasai, maarufu kama Laigwanani, Lesira Samburi anasema kuna kesi nyingi za watu kuondoka, hasa vijana.

“Watu wanakimbia kaya, hasa vijana. Unajua, maisha yamebadilika sana. Licha ya kuwapo kwa ukame siku hizi, mifumo ya maisha imeathiri vijana,” anasema.
Anaeleza kuwapo kwa vifaa vya mawasiliano na ukosefu wa maadili miongoni mwa vijana waliosoma ni sababu nyingine ya wao kuhama.
Samburi anasema vijana wengi waliosoma wanasahau walikotoka.

“Nawaambia vijana wasisahau walikotoka, hapa ni nyumbani kwao,” anasema.
Kuhusu wanaume kukimbia kaya na familia zao kutokana na ugumu wa maisha, Laigwanani huyo anasema:

“Kamati ya kijiji, kwa kushirikiana na jamaa wa karibu wa mume, inajadili suala hilo, na wale wasio na mifugo wanapewa kiasi kidogo ili waendelee kukaa na familia zao.”

Kauli za wataalamu

Takwimu kutoka Kituo cha Ufuatiliaji wa Uhamaji wa Ndani Duniani (IDMC) zilionyesha kufikia mwaka 2020 hali mbaya ya hewa ilisababisha zaidi ya watu milioni 24 kuhama makazi yao, wakati Shirika la Kimataifa la Uhamiaji (IOM) lilitabiri kufikia mwaka 2050, athari za mabadiliko ya tabianchi, ikiwa mabadiliko makubwa hayatafanyika sasa yatasababisha mamilioni ya watu zaidi kuhama.

Wakati huohuo, mtandao wa Groundswell unakadiria zaidi ya watu milioni 216 watahama, watatu kati ya watano watatoka Bara la Afrika.

Mhadhiri katika Kituo cha Mafunzo ya Mabadiliko ya Tabianchi cha Chuo Kikuu cha Dar es Salaam, Profesa Pius Yanda, anasema katika maeneo yanayoathiriwa na ukame, mafuriko au ukosefu wa malisho ya mifugo, watu wanalazimika kuhama kwenda mengine.

Profesa Yanda anasisitiza umuhimu wa kuhakikisha mazingira ambayo watu wanahama yawe na miundombinu ya kuwasaidia, hivyo kuzuia migogoro katika maeneo wanakohamia.

“Miradi kama vile BBT – Jenga Kesho iliyo Bora inatoa msaada mkubwa, lakini inahitaji kupanuliwa ili kufikia maeneo mengi zaidi. Miundombinu ya umwagiliaji na utafiti wa kusaidia kilimo endelevu ni muhimu,” anasema.

Dk Wessam El Beih kutoka Kituo cha IDMC alisema baadhi ya sera zinazoweza kuwalinda watu walio katika hatari kubwa ya kuhamishwa ni kuimarisha mazingira ya watu kustahimili, hasa kwa jamii za vijijini.

Anasema hilo linaweza kufanikiwa kwa kuwezesha upatikanaji wa huduma za msingi, fursa za kujipatia kipato na hatua za kupunguza athari za majanga kama vile mafuriko na ukame.

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Post-Covid, China is back in Africa and doubling down on minerals

By REUTERS

China’s flagship economic cooperation programme is bouncing back after a lull during the global pandemic, with Africa a primary focus, according to a Reuters analysis of lending, investment and trade data.

Chinese leaders have been citing the billions of dollars committed to new construction projects and record two-way trade as evidence of their commitment to assist with the continent’s modernisation and foster “win-win” cooperation.

But the data reveals a more complex relationship, one that is still largely extractive and has so far failed to live up to some of Beijing’s rhetoric about the Belt and Road Initiative, President Xi Jinping’s strategy to build an infrastructure network connecting China to the world.

While new Chinese investment in Africa increased 114 percent last year, according to the Griffith Asia Institute at Australia’s Griffith University, it was heavily focused on minerals essential to the global energy transition and China’s plans to revive its own flagging economy.

Those minerals and oil also dominated trade. As efforts falter to boost other imports from Africa, including agricultural products and manufactured goods, the continent’s trade deficit with China has ballooned.

Read: How Africa can deal with global rush for its minerals

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Chinese sovereign lending, once the main source of financing for Africa’s infrastructure, is at its lowest level in two decades. And public-private partnerships (PPPs), which China has touted as its new preferred investment vehicle globally, have yet to gain traction in Africa.

The result is a more one-sided relationship than China says it wants, one that is dominated by imports of Africa’s raw materials and that some analysts argue contains echoes of colonial-era Europe’s economic relations with the continent.

“This is something late-19th century Britain would recognise,” said Eric Olander, co-founder of the China-Global South Project website and podcast.

China rejects such assertions.

“Africa has the right, capacity and wisdom to develop its external relations and choose its partners,” China’s foreign ministry wrote in response to Reuters’ questions.

“China’s practical support for Africa’s path of modernisation in accordance with its own characteristics has been welcomed by an increasing number of African countries.”

A worker checks their mobile phone as Zimbabwe's President Emmerson Mnangagwa commissions the Prospect Lithium mine

The Prospect Lithium mine and processing plant in Goromonzi, Zimbabwe on July 5, 2023. REUTERS

Unprofitable projects

China’s engagement in Africa, a focus of the Belt and Road Initiative (BRI), grew rapidly in the two decades before the Covid-19 pandemic. Chinese companies built ports, hydropower plants and railways across the continent, financed mainly through sovereign loans. Annual lending commitments peaked at $28.4 billion in 2016, according to the Global China Initiative at Boston University.

But many projects proved unprofitable. As some governments struggled to repay loans, China cut lending. Covid-19 then pushed it to turn inward, and Chinese construction projects in Africa fell.

A rebound in sovereign lending is not expected.

Policymakers in Beijing have instead been pushing Chinese companies to take equity stakes and operate infrastructure they build for foreign governments. The aim, China analysts say, is to help companies win higher-value contracts and, by giving them skin in the game, ensure the projects are economically viable.

Lending to Special Purpose Vehicles (SPVs), perhaps the most common means of PPP infrastructure investment, has been growing as a proportion of China’s overseas loans, according to figures shared exclusively with Reuters by AidData, a research centre at U.S. university William & Mary.

Read: China: The ‘other player’ in 2024 Afcon tournament

The $668-million Nairobi Expressway, a public-private partnership built and run by the state-owned China Road and Bridge Corporation (CRBC), could be proof of concept for the model in Africa.

Since it opened in August 2022, the toll road has been allowing commuters to speed above the Kenyan capital’s notorious traffic snarls, beating revenue and usage targets.

A view shows the cityscape on the Nairobi Expressway

The view of the cityscape on the Nairobi Expressway undertaken by the China Road and Bridge Corporation (CRBC) on a public-private partnership (PPP) basis, along Uhuru highway in Nairobi, Kenya on May 7, 2023. REUTERS

Daily average use in March was already 57,000 vehicles, exceeding a 2049 target of around 55,000 set by CRBC in a 2019 presentation on the project’s economic viability seen by Reuters.

But few companies are following CRBC’s example in Africa. While globally some 45 per cent of Chinese non-emergency lending was to SPVs from 2018 to 2021, the most recent year for which AidData figures are available, the figure was only 27 per cent for Africa.

Analysts point to a number of likely reasons, including a lack of legal frameworks for PPPs in many African countries and the view among some Chinese companies – many of them relative newcomers to PPPs – that African markets are risky.

China’s foreign ministry did not directly address a request for comment on the lower SPV figures for Africa. But it said the government encourages Chinese companies to “actively develop new modes of cooperation” such as PPPs to bring more private investment to Africa.

Growing engagement

The Griffith Asia Institute put China’s total engagement in Africa – a combination of construction contracts and investment commitments – at $21.7 billion last year, making it the largest regional recipient.

Data from the American Enterprise Institute, a Washington-based think tank, showed investments hitting nearly $11 billion in 2023, the highest level since it began tracking Chinese economic activity in Africa in 2005.

Some $7.8 billion of that went to mining, like Botswana’s Khoemacau copper mine, which China’s MMG Ltd bought for $1.9 billion, and cobalt and lithium mines in countries including Namibia, Zambia and Zimbabwe.

The hunt for critical minerals is driving infrastructure construction as well. In January, for example, Chinese companies pledged up to $7 billion in infrastructure investment under a revision of their copper and cobalt joint venture agreement with Democratic Republic of Congo.

Western and Gulf powers are also racing to lead the world’s energy transition, with the United States and European governments backing the Lobito Corridor, a rail link to bring metals from Zambia and Congo to Africa’s Atlantic coast.

African leaders have struggled, however, to raise financing for some other priority projects.

Despite the success of the Nairobi Expressway, for example, work on several Kenyan roads stalled when the government ran out of money to pay the Chinese construction firms.

During a visit to Beijing last October, President William Ruto asked for a $1 billion loan to complete the projects.

Read: US: Kenya pawn in China’s supremacy agenda

A Chinese foreign ministry spokesman, Wang Wenbin, said discussions about the request were ongoing. Kenya’s finance ministry did not respond to a request for comment.

The final phase of a railway line intended to traverse Kenya from its main port to the border with Uganda has been in similar limbo since Chinese financing dried up in 2019. Uganda cancelled the contract for its portion of the line in 2022, after Chinese backers pulled out.

When asked about the decline in lending for African infrastructure, Chinese officials point to a pivot to trade and investment, arguing that BRI-generated trade boosts Africa’s wealth and development.

Two-way trade reached a record $282 billion last year, according to Chinese customs data. But at the same time, the value of Africa’s exports to China fell 7 per cent, mainly due to a decline in oil prices, and its trade deficit widened 46 per cent.

Chinese officials have sought to assuage the concerns of some African leaders.

At a summit in Johannesburg last August, Xi said Beijing would launch initiatives to support the continent’s manufacturing and agricultural modernisation – sectors African policymakers consider key to closing trade gaps, diversifying their economies and creating jobs.

China has also pledged to increase agricultural imports from Africa.

Such efforts, for now, are coming up short.

Read: Why China is hesitant to finance Africa energy projects

With one of Africa’s largest trade deficits to China, Kenya has been pushing to increase access to the world’s second-largest consumer market, recently gaining it for avocados and seafood. But cumbersome health and hygiene regulations mean Chinese consumers remain out of reach for many producers.

“The Chinese market is a new one,” said Ernest Muthomi, CEO of the Avocado Society of Kenya. “It was a challenge because you have to install the equipment for fumigation.”

Of 20 billion shillings ($150.94 million) worth of avocados exported last year, just 10 per cent went to China.

Overall, Kenyan exports to China fell over 15 per cent to $228 million, Chinese customs data showed, as a decline in titanium production led to a drop in shipments of the metal – a key export to China.

But Chinese manufactured goods kept coming.

That’s not sustainable, said Francis Mangeni, an advisor at the Secretariat of the African Continental Free Trade Area.

Unless African nations can add value to their exports through increased processing and manufacturing, he said, “we are just exporting raw minerals to fuel their economy.”

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Tanzania: Morogoro Rural Residents Benefit From Clean Energy Campaign

Tanzania: Morogoro Rural Residents Benefit From Clean Energy Campaign

IN a continued move to support the government’s efforts of encouraging the use of clean cooking energy, the Oryx Gas Tanzania Ltd yesterday donated 800 gas cylinders and stoves to residents in Morogoro Rural constituency.

The handing over of the donation in collaboration with an MP for the area, Mr Hamisi Taletale, was done at the sideline of the CCM’s regional conference.

The meeting, graced by the party’s national vice chairman (mainland), Mr Abdulrahman Kinana, was attended by different leaders.

Speaking on behalf of the OGTL’s Managing Director Benoit Araman, company’s Head of Bulk Consumer Sales, Mr Richard Sawere said the donation was meant to support efforts by President Samia Suluhu Hassan who envisions that by the year 2030, she wants to see 80 per cent of Tanzanians use clean energy for cooking. Mr Sawere noted that their company donated the gas cylinders and stoves in order to save the environment and protect people’s health from the charcoal and firewood.

“Our wish is to ensure that all Tanzanians abandon the use of firewood and charcoal,” he said.

Initially, when providing education on safe use of gas, Sales Manager Peter Ndomba said the company recognizes the importance of using gas for cooking. “This is a national campaign which President Samia launched with the aim of making many Tanzanians use clean energy for cooking,” Mr Ndomba stated.

He appealed to citizens to ensure they follow instructions on proper use of the gas stoves to prevent fire accidents triggered by the cooking gas.

Source: allafrica.com

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Credit Bank in stake sale talks with foreign private equity firm

Credit Bank Plc has opened talks with a foreign private equity (PE) firm to sell an additional 25 percent stake ahead of its listing on the Nairobi Securities Exchange.

Reliable sources from the bank disclosed that discussions are ongoing to bring in another deep-pocketed investor as part of a major turnaround plan seeking to propel the bank into a medium-sized lender by next year (2025).

Last year, the Tier 3 lender sold its 20 percent shareholding to a Mauritius-based private equity fund, Shorecap III, after they struck a deal in April following approvals from the Competition Authority of Kenya and the Central Bank of Kenya.

“We are speaking to a potential investor who is willing to take up a further 25 percent stake in the bank. There are prospects that another investor will come into the bank. It is a foreign private equity firm,” said the source.

The source further disclosed that new shares would be created to accommodate the new investor as the existing shareholders are now ready to dispose of their shares.

If the deal is successful the bank, which is majority owned by the family of the late politician Simeon Nyachae, will be 45 percent jointly owned by two foreign PE firms.

The foreign investor interest in Credit Bank is crucial in laying the groundwork for the proposed listing as it serves as an indicator of investor confidence in the lender’s growth prospects.

“Company growth remains a key focus for the board, and we were pleased that the efforts to attract investment have succeeded, boosting our strategic ability to grow our balance sheet sustainably,” said the bank’s chairman, Mr Moses Mwendwa, in the 2022 annual report.

“As we embark on a new journey of growth, be rest assured that the lessons and resilience built into Credit Bank over the last year will help us navigate business risks to deliver on our promise of sustainable returns.”

Credit Bank is seeking more funding to implement its aggressive five-year (2021-2025) growth plan with hopes of achieving an asset base of Sh49 billion and Tier II status by 2025.

The proposed share sale could also boost the lender’s capital and liquidity ratios, which are under pressure.

Its core capital to total risk-weighted assets increased to 11.8 percent in 2023 from 7.4 percent in 2022, compared to the statutory minimum ratio of 10.5 percent, resulting in the capital buffer (excess capital) turning to 1.3 percent from negative 3.1 percent, according to the lender’s audited financial statements.

The total capital to total risk-weighted assets improved to 16.3 percent from 14.9 percent against the minimum statutory ratio of 14.5 percent, resulting in the capital buffer increasing to 1.8 percent from 0.4 percent.

On the other hand, the lender’s liquidity ratio declined to 20.01 percent from 20.5 percent during the period under review against the minimum statutory ratio of 20 percent translating to excess liquidity declining to 0.01 percent from 0.5 percent.

As at 31 December 2022, the Banks authorised share capital was 75,000,000 ordinary shares of Sh 100 each of which 29,159,714 shares are issued and fully paid.

Credit bank began operations in 1986 as a non-bank financial institution before securing a commercial banking licence in 1995.

Between 1995 and 2010, the lender served a niche market, mainly large businesses, before the strategy review in 2010 which positioned it as retail-facing bank.

The lender announced in August last year that it plans to raise at least Sh1 billion from the Nairobi Securities Exchange (NSE) through an initial public offering (IPO).

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