Tanzania: USA Commends Tanzania for Leveraging ICT to Drive Development

By:
On:
In: Tanzania Foreign Investment News

DAR ES SALAAM — The United States Ambassador to Tanzania, Dr Michael Battle, has praised the country for capitalising on Information and Communication Technology (ICT) to promote social and economic development.

Speaking at a gala organised in Dar es Salaam to announce the top three winners of the US-Tanzania Tech Challenge on Thursday night, the diplomat emphasised the importance of ICT, stating that “everything is online.”

The envoy encouraged the winners to leverage their ICT skills and use digital platforms to inform the public about available online resources for the betterment of the country.

“This is the possibility in front of you, a dream I challenge you to pursue. Don’t settle for small dreams. If you have small dreams, find someone with big dreams to motivate you, and together you can change the world. Aim to transform the world; you have the power to make that change,” he said.

On his part, Innovation and Technology Manager Dr. Gerald Kafuku noted that the government is increasingly investing in this sector to support ICT innovators and unlock economic opportunities.

He highlighted that the Commission for Science and Technology (COSTECH) is collaborating with development partners to support young innovators, with the goal of driving positive changes across various sectors.

Over 100 participants showcased their innovative ICT projects in the Tech Challenge, with eight advancing to the finals.

Jamii Forums emerged as the winner, receiving $100,000, while Smart Foundry came in second with $80,000, and LaunchPad Tanzania took third place, walking away with $70,000.

Source: allafrica.com

Continue Reading

Help! I have a Sh50,000 job, don’t pay rent and have nothing to show for it

By:
On:
In: Tanzania Foreign Investment News

I have not paid rent since August 2021, and I have nothing to show for it. I live alone in my sister’s house. Work opportunities have been rare and sometimes I go more than two months without work.

In March, I got a short-term contract that paid Sh35,000. I worked for two months. I got another job in June that paid Sh34,000 for one month. In July, I didn’t have a job. In August, I got a job that paid me Sh50,000. Out of the Sh50,000, I would receive a daily allowance of Sh1,000.

After one month, I had received a total of Sh25,000 daily allowance. I managed to save Sh5,300 from the Sh1,000 daily allowance. We travel a lot and out of the Sh1,000 per day, I take around Sh500 to get a decent lodge without bedbugs, then about Sh200 for food. The rest is for airtime and family. As I didn’t start work on August 1, the salary was slashed by five days. I have a debt. I repay Sh2,200 and I send my parents Sh2,000.

My sister is moving in this November so I will soon start paying rent. I have been using the 50/30/20 model to save and have managed to keep Sh62,000 in an MMF (money market fund). I was using a different MMF as my emergency fund, but I have now depleted that account.

I always keep track of my money, but I don’t see where I wasted it. I have a daughter in Grade Three and paying for her school fees is a challenge. How can I invest my Sh60,000 savings? I am looking for short-term returns of at least three months that I can use for growth. We are on a two-week break, and I don’t know how long my current job will run. I might not even be recalled.

Dominic Karanja, a financial and investments consultant

You need to determine why you are struggling to manage your finances despite having a job and trying to save. You can apply the ‘5 Whys’ technique to dig deeper into the root cause of your financial challenges.

The technique focuses on asking why a problem is occurring and then repeating “why?” four more times until you find the root cause.

From my analysis, it seems that the root cause of your financial challenges is a lack of stable, long-term employment, which could be partly due to gaps in skills or qualifications.

Addressing this root cause could involve investing in skills development or education that aligns with stable job opportunities.

It is commendable that you have identified your challenges, which include unstable income, high cost of living, debt and limited savings.

Your income has been inconsistent, with periods of unemployment and low-paying jobs.

Your daily expenses for accommodation, food, and transport are significant and consume a large portion of your income. You have existing debts and school fees to take care of.

Your savings have been depleted, and you’re struggling to build up an emergency fund.

Although you have not provided a breakdown of all your expenses, such as the amount of your child’s school fees, I would urge you to carefully track all your expenses to identify areas where you can cut back.

Consult a financial advisor to discuss debt management strategies, such as debt consolidation or repayment plans. The financial advisor can also provide personalised guidance on budgeting and saving.

Even in tough times, try to build up an emergency fund. Be cautious about borrowing additional debt unless it’s for essential needs.

Don’t hesitate to reach out to friends, family or professionals for help and advice. Assisting your parents is a good idea but you need to do it within your means. Have a candid discussion with all your dependents so that they can understand your precarious financial situation.

Consider having additional income streams to supplement your income. Explore opportunities like selling items online or providing services that match your skills.

There are various investment options that you can utilise to invest the amount of money that you are holding now. However, it’s important to consider your risk profile and the timeframe of your investment. It is good that you already have some experience with money market funds (MMFs).

The MMF ensures a return on your investment while protecting your capital. You can also grow your portfolio by making regular contributions, and the funds are readily available if you need to make a withdrawal.

By saving the Sh60,000 in an MMF at a 14 percent per annum rate, net of tax and management fees, you will have at least Sh69,000 within one year. Given your need for short-term returns and safety, the MMF might be the most suitable option for you to invest the funds.

A fixed deposit account is also an option as it can offer a safe and guaranteed return on your savings, although the returns are low.

Treasury bills and bonds and commercial papers are other investment options you can consider in the short to medium term.

You need a minimum of Sh100,000 and Sh50,000 to invest in Treasury bills and Treasury bonds respectively. However, for the infrastructure bond you require a minimum of Sh100,000.

You can invest in a 91-day Treasury bill, which is safe and typically offers higher returns than MMFs, but you will need to increase the amount you have so that you can meet the minimum amount threshold.

The average interest rate of the latest 91-day Treasury bill was 15.7502 percent and the latest infrastructure bond tap sale issue had a coupon rate of 14.3990 percent.

If you are a risk taker and don’t mind holding your money in long-term investment, you can consider investing in stocks.

If you’re open to entrepreneurship, you could consider a small-scale venture that doesn’t require a huge upfront cost but can turn profits within three months.

You need to consider joining a Sacco because they offer savings, loans, and investment products. I would encourage you to always remember to capitalise your Sacco dividends to deposits to help increase your borrowing power and earning of high dividends in the subsequent years.

Saccos are a good source of development loans because they can advance you a loan amount that is three time your savings.

However, your income sources need to be enough to afford the monthly loan instalments.

If you have any money problems, send us an email at [email protected] and leave your number for contact. Money questions will be answered on this column

Continue Reading

We won’t back down, US envoy tells President Samia on Tanzania abductions

By:
On:
In: Tanzania Foreign Investment News

By BOB KARASHANI

The United States Ambassador to Tanzania, Michael Battle, said on Thursday that his country had no intention of retreating from its push for strict adherence to democratic rights and principles as a key aspect of its partnership with Dodoma.

This came after President Samia Suluhu Hassan earlier this week pointedly criticised the US Embassy for leading Western diplomats in Tanzania in condemning a wave of mysterious abductions and killings that has swept the country in the run-up to local elections in November.  

President Samia warned other countries to desist from interfering in Tanzania’s domestic affairs and violating the 1961 Vienna Convention on Diplomatic Relations by trying to dictate how Dodoma should handle investigations into the trend of abductions, which has heightened security concerns across the country ahead of the upcoming civic elections. 

Although she did not name any mission in particular, the President singled out two recently reported assassination attempts on US presidential candidate Donald Trump as “proof” that incidents of pre-election violence were also prevalent in the West.   

But, addressing a democracy conference in Dar es Salaam on Thursday, Mr Battle acknowledged that the US was not “immune to challenges and imperfections” in maintaining democratic standards as it prepares for its own presidential election this year, but remained adamant that Washington’s support for Tanzania, which he said has so far resulted in about $7.5 billion in aid commitments over the years, would remain hinged on respect for democracy and human rights.

“As long as we remain Tanzania’s partner, we will always speak openly and honestly on these principles. We will not back away or hold back. It is an obligation fundamental and paramount to human dignity and human respect,” he said.

Advertisement

The US mission in Dar was the first to issue a formal statement denouncing the brazen abduction and brutal killing of opposition Chadema party official Ali Mohamed Kibao two weeks ago.  

Read: Ally Kibao, abducted Tanzanian opposition leader found dead, acid poured on face

In its strongly worded statement on September 9, the embassy described the incident and other recent disappearances, detentions and beatings involving political and human rights activists in Tanzania as “efforts to disenfranchise citizens ahead of (the) elections,” and called for an “independent, transparent, and prompt investigation.” 

The European Union, the British and Canadian High Commissions, and Norway and Switzerland embassies followed up with a joint statement on September 10, calling for a “thorough inquiry.”

President Samia responded on September 17 in a televised speech insisting that such interventions by the diplomatic corps were not welcome and that no “outsiders” should claim to be more pained by the events than Tanzanians themselves.

“It is our own responsibility to find out why they are happening at this moment in time. We know what we need to do as a sovereign nation and do not appreciate other countries telling us to do one, two, three,” the President asserted.

Read: Tanzania abductions: Samia tells foreign envoys to keep off probe

She also questioned whether the statements had been sanctioned by the heads of State of those countries, stating: “I have my own ways of checking with my fellow presidents and will lodge formal complaints with them once I confirm that they, indeed, were.”

Representatives of the British, Canadian, Norway and Switzerland missions, who were part of the joint EU-led statement, were also present at Thursday’s forum in Dar es Salaam hosted by the Tanzania Centre for Democracy (TCD), alongside the Netherlands, France, Belgium, Sweden, Denmark, Ireland and South Africa. 

The event, marking the International Day of Democracy, saw the launch of TCD’s first assessment report on the state of democracy in Tanzania, which the centre says will be published annually.

The recent upsurge in politically-linked violence has cast a long shadow over the November 28 local government elections, which are expected to provide the template for next year’s general election, in which President Samia will defend her incumbency and the ruling CCM party its majority legislative control until 2030.

Continue Reading

Tanzania: Samia Hassan Demands Major Improvements in Airports

By:
On:
In: Tanzania Foreign Investment News
Tanzania: Samia Hassan Demands Major Improvements in Airports

PRESIDENT Samia Suluhu Hassan has issued directives to the newly appointed leadership of Tanzania’s airports, demanding significant improvements in both infrastructure and operations.

Speaking at a swearing-in ceremony for various government officials at State House in Dar es Salaam yesterday, President Samia expressed dissatisfaction at the current state of the country’s airports, particularly in terms of passenger experience and system reliability.

The President instructed, the newly appointed Abdul Mombokaleo, the Director of the Tanzania Airports Authority (TAA), who took an integrity oath yesterday, saying: “Operationally and in terms of infrastructure, there have been recent issues with systems at our airports, which our international visitors often use.

I have received complaints, so you must address these problems to ensure our visitors have a comfortable experience.

Elaborating, she highlighted complaints from international visitors about operational issues and outdated infrastructure.

ALSO READ: Samia calls for unified action against crimes

The Head of State said there is still significant work to be done at Tanzania’s airports, despite the progress made so far.

She urged the officials to be innovative and ensure that the revenue generated from the airports is utilised efficiently to improve the services that visitors expect when they arrive.

President Samia also mentioned the inconsistent functionality of the fast-track system, which is frequently used by government officials.

“Many tourists also want to use fast-track services because they have travelled long distances and are exhausted, but delays dampen their spirits. Ensure that all airports receiving international visitors are in top condition.”

In addition to these appointments, Nenelwa Mwihambi was sworn in as a Judge of the High Court of Tanzania, having previously served as the Clerk of the National Assembly.

Her former position has been taken over by Idelphonce Leonard, who was also sworn in at the State House. Other officials who took oath of integrity include Mombokaleo as the Director of TAA, Mr Salim Msangi as the Director General of the Tanzania Civil Aviation Authority (TCAA) and Macrice Mbodo as the Postmaster General.

Source: allafrica.com

Continue Reading

Mpox is not under control in continent, warns Africa CDC

By:
On:
In: Tanzania Foreign Investment News
New Content Item (1)

By REUTERS

The mpox outbreak in Africa is still not under control, the Africa Centres for Disease Control and Prevention (Africa CDC) warned on Thursday, adding that cases were still increasing in several countries.

The World Health Organisation (WHO) declared the recent outbreak of the disease a public health emergency of international concern after the new variant was identified.

Countries in the continent are struggling to respond to another major outbreak coming at the heels of the Covid-19 pandemic that exposed weak health systems that were unprepared to deal with a major public health crisis.

Read: Gavi gives Africa 0.5m doses of newly approved Mpox vaccine

The number of mpox cases in Africa has surged 177 percent, and deaths have increased 38.5 percent compared with the same period a year ago, data from the Africa CDC showed.

“We can say today that mpox is not under control in Africa. We still have this increase of cases that is worrying for all of us,” Jean Kaseya, director general of Africa CDC, told a weekly briefing on the outbreak.

Advertisement

In one week, 2,912 new cases were reported compared with the previous week including a new country, Morocco, where a case was reported, confirming the spread of the disease in all four regions of the continent.

So far, 15 of the 55 member states of the African Union have reported cases, Africa CDC said.

“We still have people dying from mpox in Africa. In one week, we lost 14 people,” Kaseya added.

Read: Mpox vaccines: Where do they come from?

He added in some countries, such as Cameroon and the Democratic Republic of Congo, two strains of the disease were in circulation, but because surveillance and testing systems were not robust enough, it was impossible to tell if that was the case in other countries.

Kaseya said Rwanda had started its vaccination campaign, while the Democratic Republic of Congo, the epicentre of the outbreak, is set to start vaccinations in early October.

Continue Reading

Sasra chief executive Peter Njuguna on addressing pain points in Sacco industry

By:
On:
In: Tanzania Foreign Investment News

The Sacco Societies Regulatory Authority (Sasra) recently published its annual supervision report on operations of 357 deposit-taking and large non-withdrawable deposit-taking saccos.

Sasra chief executive Peter Njuguna spoke to the Business Daily on the state of the industry, including steps being taken to address sticky pain points such as loss of deposits, governance lapses, non-remittances and continued lack of insurance for deposits.

The loan book continues to open a gap with savings. To what extent is this a concern given that the deposits serve as collateral?

A loan to deposit (LTD) ratio exceeding 100 percent in the Sacco industry is inherent in the Kenya Sacco business model where most members save to improve their borrowing ability while also earning a return on the deposits. Hence, it is not a new phenomenon.

This is the reason the authority has proposed policy and legal amendments to effect the deposit guarantee fund and facilitate shared services amongst saccos to enhance savings mobilisation capabilities with safety as a central proposition.

Secondly, while deposits form the bulk of loan collateral, saccos have increasingly expanded collateral choices including registrable properties such as motor vehicles, land and buildings.

Thirdly, in lending, high consideration is placed on repayment ability hence the reason that non-performing loans ratio (NPLs) has remained below 10 percent in spite of the difficult economic situation.

Fourthly, loan contracts are member-centric hence LTD ratio would not be an appropriate indicator for quality of loan security in a financial institution.

Finally, the capital reserves form part of the loanable funds depending on the asset structure and policies of a Sacco and this explains why the external borrowing as a source of funding loans has remained at about three percent on average. Therefore, when deposits and reserves are put together it exceeds the loan at over 112 percent ratio.

The supervision report shows the number of dormant members in saccos continues to rise and its share in total membership crossed 20 percent last year. What is driving this trend?

Dormant members as a proportion of total members hit a peak of 25 percent during [the first year of Covid-19 in 2020 and it has averaged 20 percent since then, reaching 21 percent in 2023.

This in our view is due to the nature of the economic situation where Sacco members are unable to sustain monthly or regular savings with the Sacco due to diminished household incomes and sustained high cost of living.

This is evident from the sustained high proportion of loans to members for education and consumption financing over the last three years. These are social sectors that in practice should be funded from household earnings and not borrowed funds.

What can saccos do to ensure they rally members to continue saving so as to narrow the gap between savings and loan book?

The traditional Sacco business model is that the value proposition is partly based on borrowing as a multiple of non-withdrawable deposits and the return on deposits in the Sacco.

This has the unintended consequences of permanently having an LTD ratio greater than 100 percent as saccos have increased loan amounts to multiple of five to retain members as the liquidity rises.

In itself, this is good from a financial intermediation viewpoint since it addresses the challenge of access to credit to households and micro-small and medium sized enterprises in the economy. But it is a concern from a financial stability viewpoint.

Saccos have invested heavily in payment solutions to make it convenient and efficient in cashing in and out; and thus enhancing deposit mobilising capabilities.

On the policy front, we have made proposals to address the safety concerns through operationalisation of the deposit guarantee fund and a structured management of liquidity in the Sacco industry akin to what happens in other deposit taking institutions world-wide.

Several saccos under Sasra supervision have hit members with loss of deposits mainly due to weaknesses in management. What is Sasra doing to improve the governance of saccos?

SASRA mandate places good governance of saccos at the centre of its work. This is the reason that Sasra, beyond its administrative role, has powers to remove officers from office; and has collaborated with other agencies like Directorate of Criminal Investigations to take up suspected criminal offenses for investigation and prosecution.

This is important in affirming that there are consequences for bad governance in saccos. In addition, Sasra has continued to issue guidelines on good governance practices and has put before Parliament amendments to strengthen the criteria for determining the suitability of officers in Saccos.

Moreover, saccos employ a unique business and ownership model, where members are indeed the owners of the saccos and equally the customers who trade with their entity.

Their role in entrenching good governance should therefore be strengthened through appropriate education initiatives and active participation in the governance processes, which Sasra is facilitating, together with other national cooperative organisations.

Sasra has been planning on introducing a deposit insurance fund just as is the case with banks. Why is this taking so long? What is the latest on this plan?

DGF is a major pillar in enhancing financial stability of the Sacco industry and the proposed amendments to the Sacco Societies Act to enable its operationalisation are under consideration in the office of the Cabinet secretary.

This is a priority policy agenda of the government, and we expect that it will be concluded in this fiscal year.

The issue of non-remittances continues to hurt members. What is Sasra doing about it? How can this be made punishable?

The non-remittance challenge has persisted to the detriment of the affected saccos. While Cooperative Societies Act (Section 35) provides a legal mechanism on non-remittances; it is certainly not adequate.

Sasra is encouraging saccos to look at this as a business strategy where members remit directly through the front office services activity (Fosa), or direct debit as opposed to having the employer act as a collecting agent.

This calls for saccos to invest in appropriate capacity in payments processing and member education as non-remittance is becoming an existential threat to some saccos.

Continue Reading