Tanzania: Domestic and Foreign Investments Spur Eco-Growth

ACCORDING to the Bank of Tanzania, economic growth in Q1-24 is estimated at 5.1 per cent, backed by increased domestic and foreign investments.

This was underpinned by the notable private sector credit growth which remained in double digits for the last two years. Headline inflation saw a slight increase of 10bps in the year ending April 2024, standing at 3.1 per cent, from 3.0 per cent in March.

Despite the slight increase, inflation remains with the central bank’s target range of between 3.0 per cent and 5.0 per cent. Stable inflation stems from stabilised food prices as the non-core inflation stood at 1.4 per cent, 50bps higher than February.

The Unprocessed Food Index saw a slight annual deflation of 0.5 per cent in April from 0.6 per cent in March and 0.1 per cent in February. However, the index saw a 1.0 per cent inflation on a monthly basis, down from 1.9 per cent for March 2024 due to seasonal movements.

The period between February and April is historically known to have the highest monthly food inflation being far from harvest seasons.

Considering the weight and significance of food products in the consumption basket of the Tanzanian community, along with significance of agriculture as a sector in the balance of payment, employment, and its share to GDP, the government has been taking a number of initiatives to improve the agriculture sector and domestic food security, partially leading to the recent stability in food prices.

Some of government’s initiatives include providing a 1.0tri/- agriculture facility at the central bank available to commercial banks, to lend to the sector at less than 9.0 per cent since 2021. In the same vein, the Bank of Tanzania further waived the statutory minimum reserve requirement for credit extended to agricultural activities.

The government also provided subsidies in agriculture inputs such as fertilizers to alleviate input prices during the pandemic and global supply shock experienced since the end of 2021. Moreover, in 2023, the Ministry of Agriculture oversaw the establishment of the Tanzania Agriculture Insurance Consortium (TAIC) which is a collaboration between the government, agriculture stakeholders, and insurance companies.

The primary objective is to empower farmers against the risks surrounding agricultural activities, while simultaneously attract financing into the sector.

Furthermore, in his budget speech, the Minister for Agriculture hinted on the Ministry finalizing talks with NBC Bank in regards to the National Food Reserve Authority (NFRA) issuing a Food Security Bond so as to ensure sufficient domestic food supply.

Despite this being a notable development for the sector, and a demonstrator of how capital markets can be utilized for economic development, generation of NFRA’s cashflows for debt service is a crucial question to be poised, so as to avoid addition of debt burden. We wait for the final structure of the programme.

While non-core inflation was minimal, energy inflation was flaming as the Energy, Fuel and Utilities Index went up 9.3 per cent in the year ending April 2024, the highest pace among all inflation consumption basket segments. This follows rising fuel prices following geopolitical tensions in the Middle East and Europe. Notably, the index’s annual inflation rose from 5.1 per cent in December 2023.

Energy inflation is backed by the 16 per cent approximated increase of domestic fuel prices as published by EWURA. On a monthly basis prices went up 1.7 per cent and 4.0 per cent since the beginning of the year. The annual increase is echoed by the 11 per cent global crude oil price increase according to Trading Economics.

Global fuel prices have seen slight volatility in the last few weeks as increased global supply suppresses prices, while geopolitical tensions, especially in the middle east push prices higher. Core inflation stood at 3.9 per cent, highly influenced by personal care, social protection, and miscellaneous goods and services segment which was up 7.5 per cent in the year ending April.

Other influential segments in the core inflation were Transport (4.35 per cent) lifted by the rise of fuel prices, and Restaurants and Accommodation Services segment (4.05 per cent) as tourism sours following the government’s promotion and continued recovery from the pandemic.

Despite subdued inflation, the Bank of Tanzania raised the central bank policy rate (CBR) by 50bps to 6.0 per cent in April, as a pre-emptive measure against lingering inflationary pressures mostly stemming from persistent foreign exchange challenges facing developing countries.

The Federal Open Market Committee (FOMC) in the meeting held on 1st May 2024, maintained interest rates at 23-year high amid stubborn inflationary data in February and March. This is contrast to expectations in the beginning of the year when markets anticipated at least three rate cuts in 2024.

Despite elevation of the CBR by the Bank of Tanzania, it is still the lowest rate in the region, demonstrating relatively subdued inflation and diversified sources of foreign inflows. Moreover, the central bank has suppressed Treasury yields throughout the month of April, by accepting less than target amounts, despite hefty oversubscriptions, especially in the long-term tenor auctions.

Suppression of Treasury yields is crucial in the maintenance of sufficient liquidity in the banking sector as government’s efforts to encourage investments have elevated the demand for credit, while the overall loans to deposits ratio remains above 90 per cent for the last eight quarters.

The demand for credit is demonstrated by the banking sector performance which saw the overall net loan portfolio grow by 22 per cent y-o-y in Q1- 24 while total assets went up 17 per cent. Similarly, the overall net profit for the quarter grew by 51 per cent compared to Q1-23.

Source: allafrica.com

Continue Reading

Africa: President Ruto Roots for Local Manufacturing of Vaccines in Africa

Atlanta, U.S. — President William Ruto is rooting for the local manufacturing of vaccines in Africa.

He said coronavirus pandemic exposed the acute state of the continent’s pharmaceutical production.

President Ruto said during this trying time, Africa was denied timely access to Covid-19 vaccines.

“We suffered (greatly) from this vaccine nationalism,” he stated.

He was speaking on Monday at the Centre for Disease Control (CDC) Headquarters in Atlanta, Georgia, United States of America.

He also witnessed the signing of three key MoUs.

One between CDC and Kenya Medical Research Institute that will deepen partnership on the cutting-edge research to answer the most important public health questions of our time and launch of the Applied Science Hub

The second pact focussed on the collaborative efforts between the Ministry of Health and the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR) in developing a Sustainability Roadmap for Kenya’s HIV Programme which is slated for completion in December.

Also signed was the joint proclamation between CDC and Kenya that ushers in the operationalisation of the Kenya National Public Health Institute to strengthen health security globally.

The President maintained that solid research will boost Africa’s capacity to locally produce vaccines.

He lauded the United States of America for being Kenya’s true ally in healthcare.

He said Kenya will broaden its partnership with the U.S. beyond health infrastructure, research and the tackling of infectious diseases.

“We want to work closely, transform the U.S.-Kenya health cooperation, for the wellbeing of everyone.”

The President, who is America for a three-day State Visit, earlier spoke at the Jimmy Carter Library and Museum and toured The Martin Luther King, Jr. Centre for Nonviolent Social Change.

He paid homage to Martin Luther King Jr. and Jimmy Carter, stating the two left behind a lasting legacy.

“We are reminded of the impact that individuals can have in shaping history and advancing democracy and justice.”

Later on, the President met the Kenyan Diaspora where he insisted that the Government will keep engaging with Kenyans abroad.

He pointed out that the Government has intensified diaspora registration and mapping for skills and expertise.

“We are developing the Global Labour Market Strategy that targets safe, secure and orderly placement of Kenyans in employment opportunities abroad,” he said.

He argued that the Government is fast-tracking Bilateral Labour Agreements to expose Kenyans to a diverse and broad range of opportunities.

Source: allafrica.com

Continue Reading

ACT Wazalendo warns of infiltration of dirty cash into opposition politics in Zanzibar

Without explicitly naming the source of the external financial interference, both the party’s National Chairman, Mr Othman Masoud Othman, and the Vice Chairman (Zanzibar), Mr Ismail Jussa Ladhu, highlighted several attempts to use illicit funds to infiltrate ACT Wazalendo’s hierarchyContinue Reading

Tanzania: Zanzibar Records Admirable Improvement in Aviation – Mwinyi

President Hussein Mwinyi has said Zanzibar through improved efficiency has recorded admirable achievements in meeting the growing demands in aviation sector, which in turn boost the growth of tourism.

Dr Mwinyi made the remarks at the opening of the 6th EAC Aviation Symposium here, saying successful implementation of workable reforms on air transportation has enabled the isles to attain its goals.

In his speech themed “The Future of Aviation: Maintaining Resilient, Sustainable, Innovative, Safe and Secure Aviation Systems,” he added that a lot of reforms undertaken by his government have shown good results.

Some of the major reforms implemented by the Zanzibar government included Public, Private Partnership (PPP) in providing services at the airport, and improving/or expanding both Zanzibar and Pemba airports.

“Since we now heavily rely on tourism for the country’s economic development, aviation is the main driver of these economic growths, which have led to the increase in the number of tourists and in turn boost trade,” Dr Mwinyi pointed out.

He noted that the construction of a new passenger Terminal building (Terminal 3) at the Abeid Amani Karume International Airport (AAKIA) is now working with great efficiency to provide air travel services in Zanzibar.

He further explained that his government has started the reconstruction and development of the passenger Terminal two building (Terminal 2) with a size of 16,000 square metres.

He added: “Built in 1974, it will have the capacity to serve more than 1,300,000 passengers per year and it now needs major renovations, along with the construction of a parking lot capable of accommodating more than 200 vehicles at a time.”

Elaborating, Dr Mwinyi said, the government is implementing a project for the renovation and improvement of the old building (Terminal 1) originally built in the 1950s at the Abeid Amani Karume International Airport.

“The project includes the construction of a business centre: shops, restaurants, banking and office services, construction of a food storage, car parking, and construction of new aviation fuel service centres for Oilcom, GBP and Lake Oil companies,” he said.

Likewise, the President explained that the construction and expansion of the Pemba Airport included the extension of the length of the runway from 1,525 metres to 2,510 metres, airport apron capable of accommodating two large airplanes Code C (B 737-800) and 8 small Code B aircraft.

Construction of a new passenger terminal building with a size of 9,170 square meters will also be included in the Pemba airport construction, and Nungwi Airport is also being built with the aim of serving the increasing number of tourists and other businesses on the Islands.

In a related development, Dr Mwinyi explained that Tanzania (Mainland) complies with all international aviation agreements to ensure the growth of the sector is continuous and safe.

He also explained that Tanzania is proud of the achievements made so far in the aviation as it strengthens cooperation with other partners including the Civil Aviation Safety and Security Oversight Agency (COSSOA) to harmonise aviation regulations in enhancing security and efficiency.

Dr Mwinyi pointed out that the ‘Very High Frequency (VHF)’ project which includes the installation radio systems, recorders and the instrument landing system (ILS) at Abeid Aman Karume International Airport will improve services and communications.

In addition, Dr Mwinyi explained that last year Tanzania scored 87 per cent in ensuring safety and efficiency in the ‘International Safety Audit’ conducted by the International Civil Aviation Organisation (ICAO).

Hence, he called upon the stakeholders and partners in the aviation industry to strengthen cooperation to ensure growth and safety.

Reinforcing, Zanzibar Minister for Infrastructure, Communications and Transport, Dr Khalid Muhamed Salum asked participants of the conference to discuss issues of safety, cost and efficiency in services delivery in airports.

Source: allafrica.com

Continue Reading

Tanzania’s Greener Future – Reducing Methane in Waste and Livestock Sectors

Did you know that nearly 60% of the waste in Dar es Salaam, Tanzania is food waste? It ends up in waste disposal sites where it produces methane, a potent greenhouse gas whose reduction is critically necessary to reduce global warming.

Tanzania is embarking on a journey to address methane emissions, through collaborative efforts aimed at enhancing urban resilience and tackling climate change. Tanzania will be one of 15 countries to be included in a global methane initiative spearheaded by the World Bank, that aims to reduce emissions of this potent greenhouse gas. As part of the World Bank Climate Action Plan, reducing methane emissions was identified as a cost-effective way to reduce the rise in global temperatures and its impacts.

Methane is a strong greenhouse gas that stands out for being 80 times more potent and dangerous than carbon dioxide over a 20-year period. Addressing it is a significant challenge and but one that has major benefits in the fight against global warming.

Tanzania will focus on reducing methane produced from its livestock and agriculture sectors, and from solid waste produced in the country’s largest city, Dar es Salaam. It will be a collaborative effort among the Government of Tanzania, private sector, civil society, communities, and households. The British High Commission, Government of Sweden, Ministry of Foreign Affairs of the Government of the Netherlands, and the World Bank have joined the effort as part of a broader push to improve solid waste in Dar es Salaam. Livestock emissions will be supported as part of the Global Methane Reduction Platform for Development in Tanzania and proposed World Bank financing that would improve the competitiveness of livestock operations.

Livestock and Methane

The livestock sector contributes 14.5% of all man-made greenhouse gas emissions globally, with the largest contribution from the methane produced coming from animal digestive systems. In Tanzania, a single cow emits over 80 kg of methane per year and Tanzania’s livestock sub-sector, which is home to 36.6 million cattle, is a significant source of greenhouse gas emissions. As populations grow and the demand for livestock products rises, mitigation strategies are crucial for the livelihoods of smallholder farmers, who rely heavily on livestock. These strategies include optimizing feeding practices and implementing efficient manure management practices that reduce emission intensity while improving production. Analysis shows that mitigation interventions, along with control of animal numbers over the next six years, could reduce emissions by 13%, while increasing production by 29%.

The World Bank is developing a Results Framework for monitoring methane emissions in livestock operations in Tanzania, helping track progress and foster consistent project assessments and accurate emission baselines, enhancing the efficiency of methane emission reduction efforts.

Solid Waste and Methane

In Dar es Salaam, solid waste is the largest emitter of methane, accounting for 55% of methane emissions from the city. Between 2024 and 2040, these emissions are projected to increase further by over 90%. However, it can be managed; by deploying established technologies at scale, it is possible to reduce up to 80% of the emissions from solid waste.

“Dar es Salaam boasts numerous innovative programs tackling food waste, with vast potential to mitigate the city’s impact on global climate change; the World Bank initiative aims to collaborate with these groups, leveraging their expertise and local insights on climate change to scale them at a city level,” says John Morton, Senior Urban Specialist at the World Bank.

Nipe Fagio, a local environmental organization, is utilizing insects (black soldier fly larvae) for food waste processing, converting food waste into compost and insect protein. Kinondoni Municipality’s Mabwepande Composting facility, is also processing food waste from the city’s markets. Scaling both initiatives could result in a significant reduction in methane emissions. Reducing food waste during distribution and at households also has a large potential to reduce emissions and will be targeted under the initiative.

Investing in Methane Mitigation

Tanzania’s methane mitigation will be supported by the Dar es Salaam Metropolitan Development Project (DMDP), aiming to modernize the city’s waste management infrastructure, focusing on reduction, reuse, recycling, and treatment. Nyariri Nanai, the DMDP Coordinator, emphasized “Tanzania is committed to methane reduction through comprehensive waste management strategies as part of the DMDP, ensuring a cleaner, more sustainable future for all Tanzanians.”

While efforts aim to reduce emissions they also aim to increase production, and the planned Tanzania Livestock Resilience and Competitiveness Project will help transform the livestock sector, focusing on building economic growth and ensuring a sustainable future capable of meeting global food demands while addressing climate change.

The global imperative to reduce climate change is generating international interest in contributing to the initiative. “The UK’s vision is to work with partners to mitigate, adapt and build resilience to climate change, and protect nature. Through this project, we have the opportunity to work with Dar es Salaam city authorities and the World Bank, to simultaneously improve urban resilience and the city’s waste management systems,” said Kemi Williams, Development Director, British High Commission, Tanzania.

The success of the methane initiative hinges on the collective efforts of various stakeholders including government, NGOs, the private sector, the informal sector, financiers and donors, and the community at large. Through united efforts, the initiative aims to set a benchmark for sustainable urban development and climate resilience in Tanzania.

Source: allafrica.com

Continue Reading

Tanzania: Canada Injects 38 Billion to Support ‘Smart Agriculture’ in Tanzania

Canada, through Global Affairs Canada, has injected a total of 20 million Canadian Dollars (approximately 38bn/-) to empower women and youth in the agriculture sector to combat the consequences of climate change in three regions.

This was revealed in Mkuranga District in the Coast Region on Wednesday when Canadian Minister of International Development, Ahmed Hussen, launched the ambitious groundbreaking ‘Her Resilience, Our Planet’ project aimed at empowering the mentioned groups in adaptation, mitigation, and transition to renewable energy.

The six-year project will be coordinated in the country by Care Tanzania in collaboration with five other partners: WWF, SAGCOT, TGNP Mtandao, Shahidi wa Maji, and the Conservation Farming Unit.

Also read: Over 500 BBT youths pass out military training

Addressing the launching ceremony, the Canadian Minister said the unveiled project will reach over 175,000 smallholder farmers, particularly women, to deal with the effects of climate change in the agricultural sector.

He noted that women and youth are among the groups most affected by climate change; hence Canada has released the funds to enable them to “adapt, mitigate, and transition to renewable energy.”

On his part, the Deputy Minister of Agriculture, Mr. David Silinde, thanked the government of Canada for the grant, saying that the project to support Tanzanian smallholder farmers reflects the existing strong partnership between the two countries.

He added that the project comes at a crucial time when Tanzania is executing various agricultural programs geared towards feeding Africa and the world.

According to the Deputy Minister, Tanzania is currently implementing Building Better Tomorrow (BBT), which involves graduates, an initiative that, in most aspects, aligns with the ambitious groundbreaking project, Her Resilience, Our Planet. The project is expected to uplift women and youth economically as well as contribute to saving the planet.

On his part, the Coast Regional Commissioner, Abubakar Kunenge, said Tanzania is capitalizing on the value chain in the sector; hence the project has come at an appropriate time.

The project will be implemented in the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) clusters, which involve Iringa, Kilolo, Wanging’ombe, Mufindi, and Mbarali districts. These areas are linked to the Ruaha Basin.

Care Tanzania has adopted a comprehensive approach to climate justice that integrates environmental sustainability, gender equality, and social inclusion.

It works towards building resilience, reducing vulnerabilities, and promoting adaptive capacities of communities while ensuring the protection of human rights and addressing systemic inequalities.

As the global climate emergency intensifies, it is estimated that an additional 132 million people will be pushed into poverty by 2030 due to climate change.

Source: allafrica.com

Continue Reading

Tanzania: Saudi Arabia’s Donation to Boost WFP Refugees Response in Tanzania

Tanzania: Saudi Arabia’s Donation to Boost WFP Refugees Response in Tanzania

Dar es Salaam — The United Nations World Food Programme (WFP) is pleased to announce a donation of 25 metric tons of nutritious dates from the Kingdom of Saudi Arabia through the King Salman Humanitarian Aid and Relief Centre (KSrelief) to support 200,000 refugees in Tanzania. The contribution of dates will enhance the nutritional value of WFP’s food assistance to vulnerable groups such as pregnant and breastfeeding women and hospital patients, ensuring they receive the necessary nutrients for their well-being.

“The donation from KSrelief comes at a critical time as WFP is currently facing funding challenges,” said WFP Country Director and Representative Sarah Gordon-Gibson. “We extend our sincere gratitude to KSrelief for their donation, which will help provide much-needed support to those who need it most,” she added.

WFP provides monthly food assistance, consisting of fortified cereals, pulses, salt, and vegetable oil, to refugees in Nduta and Nyarugusu camps in the Kigoma region to meet their basic food and nutrition needs.

Between now and November 2024, WFP Tanzania will face a USD 23 million funding shortfall for its refugee operations.

Source: allafrica.com

Continue Reading

Tanzania: Afrika Muye Muye! Tanzanian Rumba & Muziki Wa Dansi 1968-70

Note: If you yearn to experience classic and modern African music in person on the continent, consider joining Afropop Worldwide’s, February 2025 Music and Culture Tour of Tanzania and Zanzibar. Details here!

The early rumba bands of East Africa, particularly Tanzania, have often been overlooked in the wave of classic Afropop reissues in recent decades. (Fine collections by Douglas Patterson and Werner Graebner are clear exceptions, but they are few in comparison to volumes of early Congolese rumba or West African funk reissues.) This scarcity is partly due to the fact that Tanzania in the Independence era (1950s and 60s) did not have a real recording industry. Most of the recordings made by these exceptional bands were done in state radio stations, and most of those tapes have long since been lost to history. So here comes a set of 17 commercially recorded Tanzanian tracks from the late ’60s to help fill in the gap, and it could not be more welcome.

Politics helped to keep this delightful music obscure. Julius Nyerere’s Ujamaa (Swahili for “fraternity”) philosophy emphasized social, even socialist, cohesion over commercial development. Though Ujamaa would ultimately prove an economic failure, its early years were peaceful, and that easy going vibe is one thing that distinguishes these recordings from Congolese rumba of the same era. These bands did not rely on recordings, but rather on frequent, live performances, and later, government and other official sponsorship. They played constantly, and the tightness and polish we hear on these tracks can’t be achieved any other way.

As compilation producer Rob Allingham–a longtime friend of Afropop Worldwide based in Johannesburg–explains in the sleeve notes, Cuban son and cha-cha-cha recordings made a big splash in Tanzania starting in the 1930s, just as they did in West and Central Africa. Local imitations blending Tanzanian traditions and sung in Swahili began immediately, well before Congolese rumba swept the continent. It was only after 1960 that prominent Congolese musicians like Remy Ongala fled war and chaos to establish bands in Dar Es Salaam, Kampala, Nairobi and other East African cities. These Tanzanian recordings from the late ’60s emphasize the local sound, a genre often called muziki wa dansi (dance music), though some connoisseurs prefer the more descriptive term Swahili rumba.

Allingham organizes these tracks as a kind of “battle of the bands” with six bands each taking turns with two to five tracks. They are all gems, but if I had to pick a winner, it be Nuta Jazz, with Atomic Jazz Band as the runner-up. But let’s go through them.

Salum Abdalla got his start as a singer in Koranic school, but soon fell for Cuban son, and formed his band Cuban Marimba in 1952. By the time of these recordings, Abdalla had died in a car crash, and Juma Kilaza was leading the band. Organic arrangements, beginning in one tempo and pivoting mid-way to a faster tempo, is a feature of Cuban dance music that gets developed in many varieties of African rumba. Here, in the stinging guitar work, we can tease out the phrasing of marimba traditions from the Mogorogoro region where this band was formed. The song “Afrika Muye Muye,” from which this compilation takes its title, is particularly lively in both its tempos. A song lamenting division in Africa–“We don’t even know how to work together”–this is the most serious of all these tunes from a lyrical perspective. It’s a theme with a long history in African music ever since. Elsewhere, we mostly get angst-ridden love stories, about which more later.

Next, we have Tanzania Jazz Band and L’Orchestre Spear, each with two sharp, spare tracks featuring lyrical melodies and tricky guitar work. The interplay between lead and rhythm guitar parts is notably prominent in these tracks; nothing gets buried. Vocals are generally delivered by two or more singers in unison. Might this be an influence from Arabic music, where unison singing is common? In any case, it’s a characteristic feature.

Nuta Jazz, with five tracks here, marks the beginning of the era of state-sponsored bands. Named for the national trade union association, this band added brass to the lineup and became hugely influential. The band’s name changed three times over the years, as the national politics evolved. Since 1979, they’ve been an independent outfit under the name Msondo Ngoma. From the start, Nuta incorporated musical influences from the Zaramo ethnic group around Dar Es Salaam. The brass work on the first three tracks here is particularly tasty. By the way this is the only band from the early Swahili rumba era to survive today, with excellent young players continually refreshing the sound.

By the way, you can experience Msondo Ngoma and contemporary Swahili rumba bands live in Dar Es Salaam as part of Afropop Worldwide’s, February 2025 Music and Culture Tour of Tanzania and Zanzibar. Details here!

Morogoro Jazz Band gets four tracks. This outfit grew in popularity through the ’50s and ’60s, and in the ’70s it was joined by Mbaraka Mwinshehe, destined to become the most popular singer in East Africa. In these recordings, he’s the singer, composer and lead guitarist. Unison saxophone and lead guitar adds a distinctive touch to these tracks, although the lyrics tend to the dark side of romance: “I’m tired of you,” “You will destroy me.” On “Sitaki Tena,” Mwinshehe sings, “She was like an itch on my mind/Now I don’t feel anything anymore/Let me just be on my own, catering for myself/Enough! I don’t want anymore.” A bitter pill in a sweet sauce! On “Lucia Rudi (Lucia come back),” both the vocal and guitar performances palpably plead for the return of a lost lover.

Finally, we get two crisply recorded tracks from Atomic Jazz Band formed by Haj Juma and Julius Kiluwa in Tanga’s Swahili Street quarters in 1954. The fact that this band had its own club helped to make it one of the most popular combos of the era. All these years later, the jousting between tart guitar and sax lines and those passionate unison vocals give us a potent echo of a glorious time.

Source: allafrica.com

Continue Reading