Britam half-year net profit hits Sh2bn on higher investment income

Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.

The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.

“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.

“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”

The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.

Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.

The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.

Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.

The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.

Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.

“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.

Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.

Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.

CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.

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Tanzania: Samia Suluhu Hassan Confers Medals As TPDF Marks 60th Anniversary

PRESIDENT Samia Suluhu Hassan, the Commander-in-Chief of the Armed Forces, has awarded medals to 15 military officers and soldiers for their distinguished service during the celebration to mark the 60th anniversary of the Tanzania People’s Defence Force (TPDF).

The medals were conferred yesterday during a brief ceremony at Magogoni State House in Dar es Salaam.

Among the award recipients were General Jacob Mkunda, Lieutenant General Salum Haji Othman, Major General Amri Salim Mwami, Major General Fadhili Omari Nondo and Rear Admiral Amiri Ramadhan Hassan.

Other honorees included Major General Jackson Mwasoba, Brigadier General Achila Kagombola, Brigadier General Erick Mlewa, Colonel Kizito Mswada, Colonel Mussa Hamimu Ally, Major Laji Temba, Lieutenant Navy Silvia Lolo, Senior Officer First Class Reginard Kadimba, Corporal Judith Ndekela and Private Selemani Mngoni.

The medals symbolise recognition of the officers’ exceptional service and dedication within the TPDF.

The 60th anniversary of the TPDF not only commemorates its history but also reinforces the critical role of a strong defence force in safeguarding Tanzania’s future.

The ceremony was attended by senior military officials and distinguished guests, including former President Jakaya Kikwete, Zanzibar President Dr Hussein Mwinyi, Vice-President Dr Philip Mpango, former Zanzibar President Amani Abeid Karume, Zanzibar Second Vice-President Hemed Suleiman Abdulla, Chief Justice Professor Ibrahim Juma and Deputy Speaker Mussa Zungu.

ALSO READ: Samia orders TR to assess institutions and companies

In another ceremony on Wednesday, President Samia handed over training aircraft and transport buses to the TPDF during an event at the Military Transport Unit in Dar es Salaam as part of the ongoing anniversary celebrations.

During the conclusion of a military field exercise last Saturday in the Coast Region, President Samia pledged to continue strengthening the TPDF with highly trained personnel and modern equipment, emphasising the importance of building a professional and motivated military.

“A stronger military will be achieved through genuine commitment, dedication and a robust economy,” she was quoted as saying, urging the military to uphold discipline, loyalty, and courage as key values of the TPDF.

The President also lauded the TPDF for its exemplary service both within Tanzania and globally, praising its professionalism and discipline.

In her remarks, President Samia thanked the Chinese government for its collaboration during the recent field exercises, which included naval and land drills.

During the event held in the Coast Region, the Head of State also highlighted the Peace Ark hospital ship, which provided medical services to nearly 8,000 citizens, underscoring the importance of such partnerships in enhancing military readiness.

This joint exercise allowed the TPDF to share experiences and strategies in combating terrorism, illegal fishing, piracy, human trafficking and drug smuggling.

It marked the fourth joint exercise between Tanzania and China, following similar drills held in 2014, 2019/2020 and last September.

This year’s exercise was unique, as it involved all branches of the TPDF – air force, navy and ground forces – whereas previous drills had focused on specific units.

Source: allafrica.com

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Tanzania: U.S. Set to Extend African Railway Project Through Tanzania

Nairobi, Kenya — The U.S. government says it is set to expand the Lobito Corridor – a railway project that runs from Angola to Zambia through the Democratic Republic of the Congo – all the way to the Indian Ocean through Tanzania. The railway would connect African countries to global markets and enhance regional trade and economic growth, supporters say.

Speaking to reporters online Wednesday, Helaina Matza, the U.S. acting special coordinator for the Partnership for Global Infrastructure and Investment, spoke about progress made on upgrading and extending the Lobito Corridor.

Matza, who just finished a weeklong trip to the DRC and Tanzania, said the trip focused on “relaunching our partnership with the DRC and engaging with the Tanzanian government and private sector on next steps towards extending the economic corridor to the Indian Ocean. As President [Joe] Biden has said from day one of the launch of this flagship effort, this corridor has never just been about building infrastructure. It’s about offering high-quality, sustainable infrastructure projects that deliver lasting economic growth.”

The U.S. government, with the support of the European Union, African financial institutions, and the governments of Angola, the DRC and Zambia, is working to rebuild and revive the Benguela railway line that the countries used to export materials and minerals even before independence.

The project will be financed by $250 million supplied by the U.S. International Development Finance Corporation.

U.S. officials say the improved railway line is meant to enhance export possibilities for Angola, the DRC and Zambia. The partly refurbished railway has already carried shipments of Congolese copper to Angola’s Lobito port for shipment to the city of Baltimore on the U.S. East Coast.

Erastus Mwencha, former deputy chairperson of the African Union Commission, said transport systems like the Lobito Corridor can help improve trade among African countries.

“One of the reasons intra-Africa trade is low is because of poor transport networks,” Mwencha said, adding that goods can sometimes be brought from Europe to Africa at more competitive rates than goods being moved from one African country to another.

But Mwencha is worried that the ports and railways used to export Africa’s raw materials remain largely the same as they were during colonial times, and that Africa is also still operating on a colonial-era business model.

“Are we going to follow the colonial model of just bringing these raw materials and minerals and exporting them, or are we going to add value?” he said. “To me, that’s the more important aspect.”

Studies show that a poor transportation network in Africa adds 30 percent to 40 percent to the cost of goods traded among African countries, hampering the development of the private sector.

Matza said the Lobito project would benefit not only the U.S. but also African countries and would facilitate business on the continent.

“When you bring trade routes down from 45 days to 36 hours,” she said, “it opens up a whole new world for markets, and that’s what we’re testing here today: How can we help new agribusiness develop? What are the right places to think about cold storage, warehousing, logistics? What local food producers can we help support along the way?”

In addition to refurbishing existing lines, the project envisions adding 1,300 kilometers of railway from Zambia to Tanzania. The project is slated to be finished by 2029.

Source: allafrica.com

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Baloobhai adds Sh474m Bamburi shareholding

Billionaire investor Baloobhai Patel and Standard Investment Bank’s Mansa X Fund bought 10.23 million Bamburi shares in July in the wake of Tanzanian conglomerate Amsons Group’s buyout offer of the cement maker, eyeing capital gains and a potential special dividend payout.

Amsons offer triggered a rise in the trading price of Bamburi shares on the Nairobi Securities Exchange (NSE) —from Sh45 to an average of Sh62 since the July 10 publication of the firm’s offer documents.

The Tanzanian firm offered to buy the shares at Sh65 each —or Sh23.59 billion in total— hoping that the premium would entice shareholders to look at its bid favourably.

On Wednesday, Bamburi shareholders received a counteroffer from Kenyan firm Savannah Clinker Limited at a price of Sh70 per share, or Sh25.41 billion in total. The Bamburi share price closed at Sh65.75 on Wednesday.

Amsons filings showed that Mr Patel, through his investment vehicle Aksaya Investment Holdings Limited, held 30.52 million Bamburi shares as at June 30, 2024, equivalent to an 8.41 percent stake in the company.

The acquisition notice published by Savannah shows that by July 31, his stake had climbed to 37.73 million shares, indicating an acquisition of an additional 7.21 million shares during July.

As per Wednesday’s closing price, the additional stake is valued at Sh474 million, with his total holding now valued at Sh2.48 billion.
His share in the company has now more than doubled since the beginning of the year, when he held 14.96 million units.

The filings by Savannah also show that SIB’s Mansa X Fund now holds 3.02 million Bamburi shares, with a current value of Sh198.9 million. The fund was not listed among Bamburi’s top 10 shareholders in the June 30 register.

The shares acquired by Mr Patel and Mansa X were mainly supplied by retail investors, whose collective stake in Bamburi dropped by 8.2 million shares in July to 32.72 million units.

NSE data shows that between July 10 and July 31, investors traded a total of 10.23 million Bamburi shares.

The price increase when the Amsons offer was disclosed provided an incentive for retail shareholders to cash in on their stock, especially when the NSE market price nearly matched the offer price.

The price appreciation effectively gave investors a chance to book their offer profit early without waiting for the conclusion of the Amsons deal, whose timelines are dependent on regulatory approval with a long-stop date of November 2025.

For those buying the shares, the incentive lay in the potential of further capital gains upon the progression of the deal, with the counteroffer now opening an additional avenue for further hikes in the offer price as the parties compete to convince shareholders to favour their deal.

Bamburi shareholders are also eyeing a potential special dividend from the Sh12 billion sale of the company’s stake in its Ugandan subsidiary Hima Cement earlier this year.

Both the Amsons and Savannah offers acknowledge the right of the existing shareholders to receive the special dividend if and when it is announced by Bamburi.

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Tanzania’s Faustine Ndugulile elected WHO Africa Regional Director

By APOLINARI TAIRO

Dr Faustine Ndugulile of Tanzania was elected as the World Health Organisation’s (WHO) Regional Director for Africa on Tuesday at the ongoing session of the WHO Regional Committee for Africa in Brazzaville, Congo.

He received 25 out of 46 votes, defeating candidates from Rwanda, Niger and Senegal. He was supported by 25 African countries, including Kenya.

A former deputy minister of Health in Tanzania, Dr Ndugulile will succeed Dr Matshidiso Rebecca Moeti of Botswana, whose two five-year terms end at the session.

Dr Ndugulile, a medical doctor specialising in microbiology, has extensive experience in public health.

Read: Tanzania speaker to lead global parliamentary body

In his campaigns for the position, he said his priorities include transforming African health systems to achieve universal health coverage, improving maternal and child health and strengthening health security, innovation and research.

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“My candidacy represents a collective effort to transform the health landscape of Africa. By prioritising universal health coverage, maternal and child health,” he had told The EastAfrican earlier.

He also said he would aim at strengthening partnerships between African governments and health institutions.

Dr Ndugulile emphasised the need to improve the service index for universal health coverage, which remains below 50 percent in many African countries.

Dr Ndugulile is currently the Member of Parliament for Kigamboni Constituency in Dar es Salaam and serves as Vice-Chair of the Parliamentary Committee on Health and HIV/AIDS in Tanzania, the Inter-Parliamentary Union (IPU) and NEAPACOH.

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Africa: Tanzania’s Dr Faustine Engelbert Ndugulile Tapped for WHO Africa Leadership

Africa: Tanzania’s Dr Faustine Engelbert Ndugulile Tapped for WHO Africa Leadership

Brazzaville — Dr Faustine Engelbert Ndugulile has been nominated as the next Regional Director for the World Health Organization (WHO) African Region, taking the reins from Dr Matshidiso Moeti, who has served two five-year terms at the helm.

African Member States voted to nominate Dr Ndugulile during the Seventy-fourth session of the WHO Regional Committee for Africa, held in Brazzaville, Republic of the Congo. Other candidates were Dr Boureima Hama Sambo (proposed by Niger,) Dr Ibrahima Socé Fall (proposed by Senegal) and Dr Richard Mihigo (proposed by Rwanda).

Dr Ndugulile’s nomination will be submitted for appointment by the 156th session of the WHO Executive Board, which takes place in February 2025 in Geneva, Switzerland. The newly appointed Regional Director will take office thereafter for a five-year term and be eligible for reappointment once.

In his acceptance remarks, Dr Ndugulile expressed commitment to advancing health of the people of the region. “I’m truly honoured and humbled to be elected to the position of WHO Regional Director for Africa. I thank Member States for the trust shown in me. I promise to work with you and I believe that together we can build a healthier Africa,” said Dr Ndugulile.

Dr Tedros Adhanom Ghebreyesus, WHO Director-General, congratulated Dr Ndugulile on his election as Regional Director for Africa, and praised Dr Sambo, Dr Fall and Dr Mihigo on their campaigns.

“Dr Ndugulile has earned the confidence and trust of the Member States of the region to be elected the next Regional Director for WHO Africa. This is a great privilege, and a very great responsibility,” said Dr Tedros. “I and the entire WHO family in Africa and around the world will support you every step of the way.”

Dr Tedros also thanked Dr Moeti, the outgoing WHO Regional Director, for 10 years of commitment and excellence in service of the countries and people of Africa.

“I thank my sister Dr Moeti for everything she has done for the health of the people of Africa, but also for who she is,” said Dr Tedros. “I thank her for the example she has set, and the legacy she has left.”

Dr Moeti congratulated Dr Ndugulile and wished him success. “I would like to congratulate you for being elected as the Regional Director for Africa. This is an extremely fulfilling role. Despite the many challenges, I know you will take the baton and go on to accelerate the gains already made, putting the health and well-being of the people of Africa at the centre,” said Dr Moeti.

Source: allafrica.com

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Raila Odinga: ‘My heart is ready, my hands are steady’ for AUC top job

By JUSTUS OCHIENG

Kenya on Tuesday unveiled the candidature of its former Prime Minister Raila Odinga for chairperson of the African Union Commission (AUC) at a colourful ceremony graced by several East African Community (EAC) heads of State.

President William Ruto led the launch at State House, Nairobi, where he hosted East African Community (EAC) Chairman Salva Kiir Mayardit, who is also the president of South Sudan, Presidents Samia Suluhu Hassan (Tanzania) and Yoweri Museveni of Uganda.

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Tanzanian President Samia Suluhu Hassan is greeted by President William Ruto after delivering her speech during the launch of Kenyan candidate Raila Odinga’s bid for the African Union Commission (AU) chairmanship at State House Nairobi on August 27, 2024. Francis Nderitu | Nation Media Group

Also in attendance were Burundi Prime Minister Gervais Ndirakobuca, Rwanda State Minister for Foreign Affairs James Kabarebe, former Tanzania President Jakaya Kikwete and his Nigeria counterpart Olusegun Obasanjo, among other dignitaries.

Read: EAC leaders in Nairobi for Raila AUC bid launch

Speaking at the event, Dr Ruto said Mr Odinga enjoys a positive reputation as a zealous Pan-African who has consistently demonstrated strong faith in Africa’s possibilities, and exemplary commitment to the cause of laying a robust foundation for Africa’s transformation.

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The head of State showered Mr Odinga with praises, noting that he is the best candidate for the position and that he would do all it takes to make him win the February 2025 election.

“I know that Raila Odinga not only possesses the requisite credentials but he is also the ideal candidate to lead the AUC. Accordingly, Kenya endorses his candidature unreservedly and we commit wholeheartedly to support his candidature, vision and leadership,” he said.

“Mr Odinga’s remarkable leadership and exemplary career make him a perfect fit to sit at the helm of the AUC and drive Africa’s transformation and Agenda 2063. He is an ardent champion of African unity, African Integration, infrastructural connectivity and youth empowerment.”

Mr Odinga’s strategic focus, he said, is to harness Africa’s rich and vast human and natural resources for the benefit of Africa’s peoples— making him the “optimal choice” for this position.

“I therefore welcome the continent to rally behind Mr Odinga’s candidature to propel Africa to sustainable peace and a new era of shared prosperity.”

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Kenyan candidate for the African Union Commission chairmanship, Raila Odinga, speaks during the launch of his bid at State House Nairobi on August 27, 2024. Francis Nderitu | Nation Media Group

Campaign secretariat

During the State House event, Dr Ruto launched Mr Odinga’s campaign secretariat, which will be jointly led by Foreign Affairs Principal Secretary Korir Sing’oei and former US Ambassador to the United States Elkanah Odembo.

Mr Odinga said that he was ready to serve Africa.

“My heart is ready, my hands are steady and with your support, I shall get the opportunity to be of service to Africa, the cradle of mankind. I am made in Eastern Africa for Africa,” he said.

He exuded confidence that he would win the seat in the first round of the elections.

Mr Odinga will contest against Djibouti Foreign Minister Mahmoud Ali Youssouf, former Mauritius Foreign Minister Anil Kumarsingh Gayan and Richard James Randriamandrato, a former Madagascar Foreign Minister.

Read: Youssouf: My pledge to Africa as AUC chair

Mr Odinga pledged to push for scrapping of visa for intra-Africa travel and removal of trade barriers as he spelled out his vision of a united continent characterised by peace and prosperity for all.

“As a lifelong Pan-Africanist, I will offer participatory leadership to ensure delivery on the priorities of the African people as envisioned in the African Union Agenda 2063,” he said.

“This is Africa’s century… We must harness our vast human and natural resources, and integrate the energy of our youth with the vision and wisdom of our leaders.”

Read: AUC top seat contenders face age-old problems

He added: “Kindly buy my vision, the charge is 34 plus votes in the first round. I particularly appeal to fellow East Africans, that we walk this journey together and go to Addis as a team in February 2025.”

Kenya’s Deputy President Rigathi Gachagua, an arch-rival of Mr Odinga on Kenya’s political scene, described the launch as a “great moment for our country.”

“We are here to unveil Kenya’s finest to go and lead Africa. The people of Kenya have been united behind Raila to be AUC chair and Africa, our motherland deserves the best,” he said.

Read: Odinga AU ambitions halt his local moves

President Suluhu lauded Mr Odinga, saying “he is not only a wise statesman but one who can make a strong case for Africa”.

“With Raila Odinga, we envision an ever strong and growing Africa and the Republic of Tanzania assures Kenya of its for support. Tanzania says Baba anatosha achaguliwe (Raila fits the bill and should be elected).”

kiir

South Sudan President Salva Kiir arrives at State House Nairobi for the launch Kenyan candidate Raila Odinga’s bid for the African Union Commission (AU) chairmanship on August 27, 2024. Francis Nderitu | Nation Media Group

President Kiir said his presence in the country was to confirm South Sudan’s endorsement of Mr Odinga.

“As chairman of EAC, I strongly appeal to the region to rally behind Raila as the region’s candidate. Let us talk to our friends across the continent to enable Raila be the next chairman of African Union Commission,” he said.

Mr Museveni described Mr Odinga as a Pan-Africanist who is not just a job seeker but qualified for the post.

“He is the one to lead us in that big battle for prosperity and is the candidate who is fit for this job,” he said.

museveni

Uganda’s President Yoweri Museveni speaks during the launch Raila Odinga’s bid for the African Union Commission (AU) chairmanship held at State House Nairobi on August 27, 2024. Francis Nderitu | Nation Media Group

He said he was glad that President Ruto, DP Gachagua and other Kenyan leaders had united for the sake of Mr Odinga’s candidacy.

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Tanzania: Mwinyi Awards Best Performing Students

Zanzibar — A total of sixty best performing students in Pemba Island who scored Division I in this year’s Form VI National Examination have been awarded undergraduate scholarships.

The announcement was made by President Hussein Mwinyi during a luncheon hosted at the State House at Pagali in Pemba for the best performing students in Form VI and Form IV national examinations for 2023/2024 academic year.

He said that the government will continue motivating students to work hard by awarding scholarships, laptops and money to those who score Division I “Because we want to eliminate failures and target to produce experts in different fields including science, technology and art.”

He said that currently when the country faces shortage of teachers for science subjects, the government will continue hiring teachers to fill the gaps.

Also read: Zanzibar records current account surplus

Regarding school infrastructure development, Dr Mwinyi said his government is already implementing its plan of building new primary and secondary schools, including renovating the old ones.

He expressed his happiness following the records that for the first time, Pemba has made history by eliminating Division Zero in the Form VI results this year.

According to the Zanzibar Minister for Education and Vocational Training, Ms Lela Mohamed Mussa, Form IV students who scored Division I are 175 and Form VI are 220, making a total of 395 students.

Escorted by their teachers the students attended a special luncheon event, where the minister promised to encourage parents, teachers and students to strengthen collaboration to maintain and improve students’ good performance.

Last year, during a ceremony to award best students President Mwinyi said that his government would continue to prioritise education due to its significance in development.

“We cannot execute development projects without enough experts; therefore, education must be priority number one,” Dr Mwinyi stressed.

He said the government will continue to build high rise buildings in primary and secondary school infrastructure to end the system in which students attend classes in shifts.

“We want one classroom to accommodate 45 students only.”

The president added that this year, the government expects to construct 2,000 additional classrooms and employ more teachers for Mathematics and Science subjects for secondary schools.

He also instructed the Ministry of Education to continue with school’s inspections programme so that teachers can follow the stipulated guidelines and teaching procedures carefully.

Source: allafrica.com

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East Africa: Tanzania, Japan for Stronger Ties

East Africa: Tanzania, Japan for Stronger Ties

Tanzania and Japan have agreed to continue working closely to strengthen their existing relationship and cooperation for mutual benefits.

The two countries reached the agreement during a bilateral meeting held between the Deputy Minister for Foreign Affairs and East African Cooperation, Cosato Chumi and the Deputy State Minister of Japan Kyoto Tsuji, at his office in Tokyo.

The two leaders agreed to continue working closely to strengthen the existing bilateral relationship and cooperation for the mutual benefits.

Also read: Sacred diplomacy: Tanzania, Vatican diplomatic future

Speaking during the meeting, Chumi expressed his gratitude to the Japanese government for its contribution to the Tanzania’s development in various sectors, including infrastructure, investment, education and health.

He said Tanzania is committed to increasing trade and investment levels between the two countries, thereby fostering economic and social development for the mutual benefits.

In response, Tsuji reaffirmed Japan’s readiness to continue collaborating with Tanzania and strengthening the existing relations for the benefit of both nations, adding that Japan would continue to partner with Tanzania and other African countries so as to expand trade with the African continent to help and facilitate development in the continent.

Chumi is in Japan to attend the 9th Ministerial level of Tokyo International Conference on African Development (TICAD) that started yesterday and ends today in Tokyo.

Source: allafrica.com

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Tanzania: Chief Secretary Kusiluka – Building Digital Economy Is a Collective Duty

On July 29, this year, President Samia Suluhu Hassan launched the Tanzania Digital Economy Strategic Framework.

The framework names the pillars of any digital economy as an enabling digital infrastructure, governance and enabling environment, digital literacy and skills development, digital innovation culture and enabling technologies, nurturing digital inclusion and accessibility and digital financial services. Correspondent PETER KEASI recently held an exclusive interview and briefly discussed the strategy with the Chief Secretary, Ambassador Dr Moses Kusiluka. The Chief Secretary said the government is encouraging the private sector to rise to all emerging opportunities. He said that since the framework has been launched by the president, all Tanzanians and people living in Tanzania, more so the youth, have the duty of building an economy driven by digital technologies and the internet…

QUESTION: Tanzania’s 10-year Digital Economic Strategic Framework was launched by President Samia Hassan on July 29, 2024, is that right?.

ANSWER: Correct. The president launched the strategy during the 15th meeting of the Tanzania National Business Council (TNBC). The meeting was held at the State House in Dar es Salaam.

QUESTION. But some people argue that not much light has been shed on this development of national importance. How do you, very briefly, describe the context of this strategy? How did it come about?

ANSWER: Tanzania belongs to a transformative world. I have had an opportunity in the recent past to state that the entire world is fast moving towards digital transformation. I said Tanzania cannot afford to remain behind. World economies of the future will be propelled and indeed economies are already being driven by digital technologies and the internet. That is why I said Tanzania cannot afford to remain behind.

That fact appreciated, we had to do some homework to achieve the goal of having Tanzania’s economy being part of that kind of emerging world economy. TNBC has working groups of experts that sits over identified subjects and come up with expert proposals or solutions. So the council appointed the TNBC Digital Transformation Working Group. It did a wonderful job. The working group drew Tanzania Digital Economic Strategic Framework that was finally adopted by the government. What I want to emphasise here is the fact that the government cooperated fully with the private sector in formulating this strategy. It adopted it and endorsed its use so that Tanzania can build a competitive economy.

This is the background against which the Tanzania Digital Economic Strategic Framework 2024-34 was conceived, adopted by the government and finally launched by President Samia Suluhu Hassan on July 29, 2024.

QUESTION: Can you, in simple terms, explain what a digital economy framework would mean in any country?

ANSWER: It would mean a theoretical design or model of principles of a digital economy. When you want to build a digital economy, you have to have a model to refer to. In the digital economy package, you will find on one side the Information Communications Technology (ICT) and on the other the digital media and the content on those media. The TNBC working group put it well to answer your question. It said a digital economy framework refers to a conceptual model or structure that describes the key components and principles of an economy driven by digital technologies and the internet.

One will realise that digital technologies and the internet are of paramount importance in driving a digital economy.

In our case, the digital economy framework outlines how Tanzania can harness the power of digital technologies to boost economic growth, create jobs and improve the lives of its citizens.

QUESTION: In a recent interview with journalists, you were emphatic about involvement of the Tanzanian youth in implementing the digital economic framework.

ANSWER: Yes I was. This framework is about transformation; it is about seeing our economy growing healthily, it is about unearthing job opportunities; in short, it is about improving lives of Tanzanians. Young people are the majority of Tanzanians; they need jobs. We need to have an economy that is creating jobs for them. That economy has to be a ticking economy. If you want to have a healthy, growing economy, majority of participants must be young people who are capable of using and benefiting from digital technologies and can use the internet. This is what we are saying. We are encouraging the private sector to rise to this opportunity, to harness the power of digital technologies so that our economy grows fast, in a healthy manner and it creates jobs for young people.

But young people are not expected to sit by, idle around and complain. They need support, alright, but they too have to rise to opportunities; they have an inescapable duty of searching for and using affordable digital literacy and digital technologies; they have to struggle to acquire requisite skills to be employable, employ themselves and creating jobs for others.

In short, we are saying the government has presented the framework and it is encouraging the private sector to rise to all emerging opportunities; the framework has now been launched by the president, all of us, more so the youth, have the duty of building an economy driven by digital technologies and the internet. This is important for us all.

QUESTION: The President’s Office, Local Government and Regional Administration (TAMISEMI), as a ministry, has a unique position in strengthening regional and district TNBC councils. We are told it is using its position positively to ensure TNBC councils promote robust businesses and investment. Is this what is happening on the ground?

ANSWER: Yes, because as you have said, TAMISEMI has a special position that can be used to strengthen TNBC councils at district and regional levels. The meeting adopted a resolution relating the urgent need and importance of strengthening our councils at those two levels.

QUESTION: What would you want to see being done to accommodate the urgency and the importance the TNBC meetings called for?

ANSWER: I would want to see many things done and in a better way. Meetings are of paramount importance. Councils must meet in a scheduled manner. Every district, every region is unique in its own way. The kind of businesses and investment opportunities in one district are different from those you find in the next district or next region. So investment and business challenges in districts and regions can be best addressed right there in TNBC meetings that bring together representatives of private and public sectors. I would want to see one stop centres established, in all districts, to serve the private sector. I would like to see by-laws that are friendly to and promote businesses in every district. Nuisance by-laws do not promote doing business; they undermine investment efforts. It is not only important to have stable and predictable policies and laws at national level, but it is also important to have by-laws in districts that serve our central national mission.

I would like to see TAMISEMI encouraging every district and every region to work towards getting the annual presidential award. The award is given to a region that has done well in creating a helpful and favourable environment for doing business and in attracting investments. The award is a big honour to a recipient region.

ALSO READ: Youth key players in digital economy, says Dr Kusiluka

I would like to see TAMISEMI helping regions and districts which have underperformed in creating conducive environment for doing business and attracting investments. This can be done by way of appropriate facilitation: giving training and requisite resources to leaders of our TNBC councils so that they can perform their duties efficiently. Maybe there is a need now for exploring ways of punishing underperforming regional and district leaders on this particular issue.

I would like to see all districts and regions being enabled by TAMISEMI to provide online services in order to cut down the cost of doing business. Similarly, I would like to see digital collection of revenue from the private sector in all districts and regions.

I would like to see robust cross-border trade in border districts and regions. It is in our national interest to eliminate all obstacles to healthy cross-border trade. We need to increase exports and earn foreign currency. We shall succeed by reducing permit application costs, licence rates and by building strategic border markets.

In November 2019, TNBC published an interesting study report titled ‘Best Practices and Lesson from Regional and District Level Public Private Dialogues’. This publication is still very relevant and important for all of us to read.

QUESTION: You underscore the need for increased exports in order to increase foreign currency. Ports are important in increasing exports?

ANSWER: That is correct. The meeting called for proper supervision relating to consolidation and de-consolidation in our ports.

QUESTION: Was there a resolution on tax administration and laws relating to incentives between Zanzibar and Mainland?

ANSWER: There was one. It called for having fresh look on the two aspects and remove hindrances.

QUESTION: What did the meeting say on tourism?

ANSWER: The meeting called for diversification of tourism products. It also called for a convincing strategy that will help Tanzania promote coastal tourism. It also called for promotion of southern circuit tourism.

Source: allafrica.com

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