Tanzania Foreign Investment News (Page 34)

Zanzibar — ZANZIBAR has launched campaign to promote domestic use of seaweed products as part of efforts to expand the market of the spices in the country.

The Acting Director of the Department of Policy, Planning and Research in the Ministry of Blue Economy and Fisheries, Mr Mohammed Said Khamis, said at the launch of a campaign on Monday that domestic use of the spices was low.

“We want people at home to consume seaweed hence increase the market,” Mr Khamis said.

He said that promoting domestic use of seaweed products was important both in Zanzibar and Tanzania mainland in improving the livelihood of farmers.

The Ministry of Blue Economy and Fisheries was out to encourage the use of seaweed through promotion of its benefits as they are rich in nutrients compared to many sea foods, he said.

“For over three decades, Zanzibar and other coastal areas in the Tanzania mainland have been growing seaweed just for export. Unfortunately not many people use it as food. We want this to change, in addition to economic benefits, it is also good for health,” he said.

The Acting Director said that in order also to boost seaweed production and improve the welfare of farmers, the ministry has been making various efforts including providing them with the farming inputs such as boats, and new farming technology.

He said the government has decided to revitalize seaweed production in response to farmer’s prolonged call for better price and value addition to boost their earnings and revenue to the government.

“The government is currently completing the construction of a seaweed processing factory at Chamanangwe, Pemba. This is a value addition. According to him, the factory will have the capacity of processing 30,000 tonnes per year.

The International Fund for Agricultural Development (IFAD), Coordinator, Ms Amina Ussi Khamis, said that the launch will help raise the value of the farmers’ sea products leading to income increase and value chain addition.

The Wakulima Hai Cooperative Society Secretary, Ms Semeni Mohammed Salum, said seaweed is one of the strategic crops and the government puts its effort into increasing productivity including the use of quality seeds that adapt to climate change. Ms Salum said that the one-year campaign to promote the use of seaweed will be implemented in five regions of Unguja and Pemba Islands, and also in other regions of Tanzania’s mainland.

Source: allafrica.com

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TANZANIA and the Republic of Somalia have agreed to strengthen their partnership on health matters. This was revealed over the weekend by Health Minister Ummy Mwalimu when the President of Somalia visited Tanzania on Saturday.

During the visit, they toured the Medical Stores Department (MSD), Muhimbili Orthopaedic Institute (MOI), and the Jakaya Kikwete Cardiac Institute (JKCI) to witness the capabilities of Tanzania’s healthcare sector.

“There are three areas that we have agreed to work together on. First, we will collaborate in providing specialised medical services. Second, we will work together in healthcare professional training. And third, we will collaborate in procuring and distributing pharmaceuticals through the MSD,” said Ms Mwalimu.

Minister Mwalimu highlighted that Tanzania has excelled in improving specialised and super-specialised services, particularly in institutions like the JKCI, Muhimbili National Hospital (MNH) and MOI.

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She informed the President of Somalia that Tanzania is well-equipped with modern medical facilities and specialist doctors who have been trained and have extensive experience in providing specialised medical care.

She also stated that in building capacity among healthcare professionals, they will provide specialised training through universities, especially Muhimbili University of Health and Allied Sciences (MUHAS).

The minister added that the MSD has extensive experience in purchasing, storing, and supplying drugs to over 8000 facilities across Tanzania.

“Additionally, the health ministers in SADC countries have entrusted the MSD with the duty of procuring drugs on behalf of other SADC member states. With Somalia’s recent membership in the East African Community, we see an opportunity to collaborate in ensuring the joint procurement of quality drugs at affordable prices and delivering them to Somalia,” she emphasised.

Furthermore, JKCI Director Dr Peter Kisenge expressed gratitude for hosting the President of Somalia, who came to witness the significant investment made by the sixth-phase government in the institution.

“As you may know, JKCI is one of the leading institutions in East and Central Africa and one of the best in Africa. He has come to see the progress of cardiac care in Tanzania and to facilitate the referral of patients from Somalia, especially for cardiac diseases and heart surgeries,” said Dr Kisenge.

Dr Kisenge revealed that Somalia has sent patients to various parts of the world, but due to the geographical proximity of Somalia and Tanzania, it will be easier to bring patients for treatment to JKCI.

He thanked President Samia Suluhu Hassan for the substantial investment in the institution and for continuing to strengthen relations with various countries in Africa and around the world. JKCI has been receiving many visitors; recently, they hosted the Prime Minister of China and ambassadors.

MOI Director, Prof Abel Makubi, stated that the visit was part of implementing President Samia’s directives to enhance relations with other international institutions. They discussed several areas of cooperation under the Ministry of Health.

Source: allafrica.com

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By THE CONVERSATION

Uganda, with a fiscal deficit of 5.6 percent in 2023, has increasingly turned to local resources to make up for its revenue shortfall since the World Bank suspended its funding on August 8, 2023 over the country’s anti-homosexuality law.

In early April 2024, traders in downtown Kampala protested against what they saw as high taxes and harsh enforcement tactics of the Uganda Revenue Authority.

Maria Jouste, who has researched Uganda’s tax system, including its taxing of small businesses, compliance rate and personal income taxes, answers four questions.

What were the recent protests about?

In early April 2024, traders in Kampala began protesting against high taxes and the enforcement strategies of the Uganda Revenue Authority.

Similar protests were seen in Dar es Salaam, Tanzania in May 2023 over high taxation and heavy-handed enforcement of levies on small businesses.

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Read: EA region traders cry foul over ‘too much taxes’

In Kampala, the protest has centred on the electronic receipting and invoicing solution, a new digital system designed to enhance value-added tax (VAT) collection by tracking and managing the invoices and receipts. Introduced in 2020, it was first enforced on large businesses. Enforcement for small and medium-sized businesses started in April 2024.

The revenue agency has not clearly stated how much it expects to collect from these measures but its actions are born out of high revenue targets which might be too ambitious. Overly ambitious revenue targets can do more harm than good in terms of the social contract and poverty.

The Uganda Revenue Authority (URA) turned its focus on traders and VAT law enforcement after the country faced a decline in development aid. It is not clear how much Uganda has lost as result of the World Bank funding freeze, but the government has recently indicated a plan to borrow $150 million from China’s Exim Bank.

What is Uganda’s tax base?

Compared to many other countries, Uganda has a narrow tax base, with tax collections totalling less than 14 percent of GDP. The average for Sub-Saharan countries is 18 percent. A large share of economic activity is informal and untaxed.

In developed countries, collection rates are much higher. The UK, for example, collects roughly 40 percent of its GDP annually.

According to Afrobarometer, a pan-African independent research network that measures public attitudes on economic, political and social matters in Africa, only 1 million Ugandans pay tax, though 3.5 million were registered as taxpayers at the end of 2022/2023 fiscal year. This is a very low number for a country with Uganda’s population at almost 50 million.

The reasons why most of those registered don’t remit taxes are varied. First, the Uganda Revenue Authority campaigns to register people but does not have the capacity to enforce tax laws. Second, not all registered taxpayers are liable for taxes. Third, there’s a lack of tax education.

Read: Uganda proposes new taxes on key products

The country’s top 1,000 taxpayers contribute more than three-quarters of all tax revenue collections. Most Ugandans are employed in the informal sector and the government has not developed efficient ways of collecting taxes from them.

The informal sector accounts for over half of GDP and over 80 percent of employment. Small and medium-sized businesses only pay the presumptive tax, which contributes less than 0.05 percent of tax revenues.

Hence the tax enforcement project targeting small and medium-sized businesses, employing the electronic system.

How effective is Uganda’s tax regime in raising money?

The Ugandan tax regime is less effective than many of its Sub-Saharan counterparts.

The largest domestic revenue sources are VAT and excise duty (22 percent), pay-as-you-earn income tax (Paye) (18 percent) and corporate income tax (8 percent).

A number of factors are at play:

• generous tax incentives and tax holidays. Recent estimates show that revenue losses due to several corporate tax incentives reached a peak of $42 million in 2020.

• difficulty in taxing the rich

• widespread tax avoidance. For example, multinational companies pay much less corporate income tax than large domestic firms (as a share of profits) due to profit shifting outside Uganda.

• widespread informality

• income distribution with a high share of low-income individuals (based on current tax law, most ordinary citizens are not liable for income taxes)

• inefficiencies and corruption in tax collection services.

How fair or unfair is it?

Ugandans perceive that their tax regime is unfair to ordinary citizens, that the government does not spend tax money fairly, and that tax officials are corrupt. The recent protests by traders illustrate how unfair small business owners believe the tax burden to be.

Read: Uganda traders close businesses in spat with taxman

Fairness in taxation varies widely by perspective. In general, a progressive tax system – where the rate is higher for the rich than for low-income earners – is widely argued to be a fair system. Uganda’s tax laws have elements of being progressive, particularly in personal income taxation.

We recently evaluated Uganda’s personal income tax and found it to be fairly progressive.

The Uganda Revenue Authority has tried to improve tax collection from wealthy individuals, but with uneven success.

A recent study documents many of the challenges in taxing the rich. This relative inability to enforce tax laws on the country’s wealthiest individuals suggests that the tax regime is somewhat unfair.

Generous tax incentives and holidays predominantly benefit large firms. Smaller businesses rarely qualify for these benefits. The corporate statutory tax rate is 30 percent, but the estimated effective tax rate averages 14 percent across all firms and drops for the largest firms.

What needs to be reformed?

Uganda faces serious challenges in raising sufficient funds for public services and economic development. Key tax policies have remained unchanged for a decade. Personal income tax rates have been the same since 2012 and the VAT threshold and presumptive tax thresholds since 2015.

Reforms on these issues should be considered to adjust for high inflation and the economic consequences of the Covid-19 pandemic.

Business taxation also needs to be reformed. Recent studies on Uganda’s presumptive tax and small businesses suggest the taxation should be simplified.

Bigger revenue gains might be accomplished by focusing on large corporate taxpayers. For example, tax incentives should be reconsidered.

And greater transparency in public spending and service delivery can improve taxpayer morale and compliance.

By Maria Jouste – Research Associate, United Nations University

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Serikali ya Tanzania na Russia zimejizatiti kushirikiana katika kujengeana uwezo na uzoefu wa kisheria katika kukabili uhalifu wa mtandao na ugaidiContinue Reading

DAR ES SALAAM —  KCB Bank has sponsored the Tanzania autism half marathon ‘Run4Autism’ to enhance awareness about autism disorder in the country.

The Bank has reiterated its commitment to supporting needy communities as a way to forge a sustainable future through strategic partnerships.

Gracing the event, Prime Minister of the United Republic of Tanzania, Kassim Majaliwa Majaliwa commended KCB Bank Tanzania for its unwavering commitment to supporting this noble cause.

Also read: KCB throws weight on youth employment

The Head of Marketing and Corporate Affairs, Christina Manyenye underscored the bank’s deep-rooted intentions to give back to the community, embodying our brand ethos of ‘For People. For Better.’

“KCB Bank is delighted to be part of this important initiative that will help to raise awareness about autism disorder. As KCB Bank Tanzania continues to champion causes that uplift and empower communities, we remain steadfast in our mission to build a brighter and more inclusive future for all,”

Beyond that, the bank is implementing several initiatives dedicated to bringing positive change under the 2jiajiri program which focuses on improving youths’ entrepreneurship skills to minimize unemployment challenges.

Source: allafrica.com

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Arusha — TANZANIA commemorated its 60th anniversary whilst proud of its critical role in establishing the East African Community (EAC).

The first EAC, which succeeded the East African Common Services Organisation on December 1, 1967, was established by the Treaty for East African Co-operation.

It was signed in June 1967 by the presidents of Kenya, Tanzania and Uganda. Although the organisation was dissolved in 1977, the three governments reaffirmed their links by creating the Permanent Tripartite Commission for East African Cooperation in November 1993.

The Treaty for the establishment of the East African Community was signed in Arusha on November 30, 1999. It entered into force on July 7, 2000, after the ratification process was completed by all three Partner States.

Tanzania, under the late President Benjamin Mkapa, worked with Kenya and Uganda to revive the EAC in 1999. The second incarnation of the EAC aimed to integrate its members more deeply, with the ultimate goal of establishing a regional political federation similar to the European Union.

Speaking to the ‘Daily News’ recently, Deputy Minister for Foreign Affairs and East Africa Cooperation in charge of East African Affairs, Mr Stephen Byabato noted that Tanzania is proud of its role in establishing the EAC in 1967 and 1999.

Byabato mentioned that all six government phases in Tanzania, from the nation’s founder Mwalimu Julius Nyerere to incumbent President Dr Samia Suluhu Hassan, have believed in unity and solidarity.

Tanzania was displeased by the dissolution of the first EAC in 1977, leading the country to cooperate with Kenya and Uganda to re-establish it in 1999.

By recognising Tanzania’s role in the establishment of the EAC, member states agreed to have the Headquarters in Arusha, Tanzania. Byabato emphasised that this is a significant credit to Tanzania and signifies its contribution to reviving the EAC.

“As we celebrate our 60th Union Anniversary, we in Tanzania are proud to be the champions and founders of the EAC. Since the EAC Headquarters are in Tanzania, we continue to be the host, demonstrating our significant contribution to the re-establishment of the EAC,” he said.

Source: allafrica.com

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Dodoma — DEPUTY Prime Minister and Minister for Energy, Dr Dotto Biteko, reiterated the importance of utilising natural gas as an alternative energy source for Tanzania to mitigate climate change and preserve its precious natural resources.

The Deputy Prime Minister also commended the work of journalists in raising awareness about environmental issues and the importance of sustainable energy practices.

Dr Biteko gave his commendation in Dodoma on Monday when officiating at the 13th Annual meeting of editors under the auspices of the Tanzania Editors Forum (TEF) held in the country’s capital, Dodoma.

He urged members of the Tanzania Editors Forum to continue reporting on these topics and to promote the use of natural gas as a cleaner and more environmentally friendly energy source.

The meeting brought together journalists, editors, and media professionals from across the country to discuss ways to promote environmental conservation and sustainable development through responsible journalism. During his keynote address, Dr Biteko highlighted the importance of using natural gas as a renewable energy source to protect Tanzania’s forests.

He emphasized that deforestation is a critical issue in the country, with many forests being destroyed for fuelwood and other purposes. Dr Biteko commended editors from across the country for a campaign that seeks to emphasize the use of gas for cooking in order to protect the country’s forests.

“I have been attracted by this year’s theme which says: Journalism that insists on the use of gas to protect forests, which seeks to emphasize the use of alternative cooking energy in joint efforts to rescue the country’s forests,” he noted, adding that Tanzania had enough gas to cater for domestic use.

According to the Deputy Prime Minister, President Samia Suluhu Hassan has been advocating the use of alternative energy to avoid the use of charcoal and is a good ambassador of gas use.

“Other countries are using gas in cooking and equally the gas is also used in motor vehicles, that is why in the ministry we have prepared a robust plan to intensify and create awareness on the use of gas in the country,” he added.

“While our President, Dr Samia Suluhu Hassan continues advocating for clean cooking in other countries from across the continent, we in the ministry want to see other countries coming to Tanzania to learn, that is why we already have a plan to distribute LPGs at all levels, in order to discourage the use of firewood,” he stated.

Attendees also had the opportunity to participate in workshops and panel discussions on topics such as climate change, renewable energy, and forest conservation.

The 13th Annual professional meeting of TEF was a successful event that highlighted the critical role of journalists in advocating for environmental protection and sustainable energy practices.

The Deputy Prime Minister’s presence at the meeting underscored the government’s commitment to addressing environmental challenges and promoting the use of natural gas to protect Tanzania’s forests.

Source: allafrica.com

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Zanzibar — TO the former Zanzibar president, Amani Karume, the idea of becoming a leader of the country never crossed his mind before because he did not like politics in the first place. Not that he doubted his ability to lead and perform. The first born to the founding and perform.

The first born to the founding President of Zanzibar, Abeid Amani Karume, is known for his political savvy and strong management skills when he worked in the Revolutionary Government of Zanzibar as Chief Treasurer and Principal Secretary in various ministries in the 1970.

He has been credited for hard work and dedication and for maintaining professional integrity in the workplace during that time.

Dr Karume told Tanzania Standard Newspapers Limited’s (TSN) editorial team in a recent exclusive interview in Unguja that it did not occur to him that he would become a politician simply because did not like politics and the government system with a lot of red tapes.

“I hate the excessive government bureaucracy. I have always enjoyed doing my things, freely,” he said in response to what was his inspiration for politics.

His dislike to politics contributed to his focus on private life after a tour of office in the 1970’s. He either did not fancy the idea of being president like his father. He preferred to lead private life and manage his businesses.

However, some elders had different ideas. An academic product of Unguja-based Lumumba Secondary School, the 76-year-old Karume joined the government in 1970 as an accountant and in one decade he rose through the ranks to become principal secretary in three different ministries.

The dockets he served with the years in brackets are finance (1971-1974); planning (1974-1978); and communications and transport (1978-1980).

“After ten years in the government, I willingly opted out to work privately where enjoyed my freedom. As I have said, I have issues with government overly bureaucracy,” Dr Karume said.

In the private sector, the former Isles leader worked for hardly five years before a group of elders whom he describes as “my late father’s friends,” approached him in 1985, asking him to stand for Raha Leo’s seat in the Zanzibar’s House of Representatives. “I initially refused but they insisted on me to rethink. I continued with my works unaware that they were serious about the proposal,” Dr Karume says, adding that the same group approached him with the same demand in the 1990 polls. “This time I agreed…I picked the form and thanks to their support and all voters, I entered the House of Representatives triumphantly with a landslide victory,” he said.

Dr Karume served as Raha Leo’s representative for two consecutive terms after he was re-elected in 1995. And, luckily, he was in the cabinet during all his periods in the House of Representatives.

His predecessor Dr Salmin Amour nominated him as Minister of Trade in 1990 through 1995 and Minister for Communications and Transportation from 1995 to 2000.

“Hopefully, I performed well in the eyes of my constituents. The same elders approached me in 2000, this time with a bigger proposal – the presidency,” Dr Karume recalls, adding: “I had never imagined the presidency.” He says he had no fear because he was familiar with the government operations and knew what was waiting ahead of him. “So, you can see again, it wasn’t me but elders and all Zanzibaris who wanted me into the presidency.

Otherwise, with my only one vote, there was nothing I could do to become president.” Yet, it was a hard and challenging time for Dr Karume to decide. While his father’s friends whom he said he respected craved for him to assume the presidency, his family was against it.

“My entire family – wife and children – opposed the idea of me vying for the presidency and sincerely speaking I assumed the office at the expense of my family,” he says, adding: “In my entire period of the presidency, my family was not very happy.

Happiness returned only after my retirement.” He became the president of the Indian ocean archipelago and was the only Zanzibar leader who did not sleep in the State House. “Of course, I slept in State House in my childhood, during my father’s reign (but) during my time (as a leader), I decided to stay at home to at least comfort the family.” He firmly believes that life at his own home was a relief to the family as compared to the tight security at the State House.

“Security was not as tight as State House. Remember this is my home, so unlike State House, I had discretion on some issues and my family members were relatively free.” Many parents wish their children to pursue their careers but not the former Isles leader who has discouraged his children from politics. “The least I would wish to see is one of my children entering politics,” he said.

“I discouraged all my children from politics and so far I haven’t seen any with that interest,” he says, noting that with his wife Shadya, God has blessed them with six children-two boys and four girls. During his leadership, Dr Karume groomed many leaders, with President Samia Suluhu Hassan being one of the products he is proud of. “I saw in her leadership talents and gladly I was right,” he said.

Who is Amani Abeid Karume?

Amani Abeid Karume was former president of Zanzibar holding the office from November 2000 to November 2010. He is the son of Zanzibar’s first president, Abeid Karume, and a member of the Chama Cha Mapinduzi (CCM) party.

Early life and career

A Muslim born in 1948, Karume was schooled at the Lumumba Secondary School until 1969 when he became an accountant.

During the 1970s he held various positions in the Revolutionary Government of Zanzibar including Chief Treasurer (1970-1971), Principal Secretary in the Ministry of Finance (1971-1974), Principal Secretary in the Ministry of Planning (1974-1978), and Principal Secretary in the Ministry of Communications and Transport (1978-1980). During the 1980s, he worked as a private consultant for a British-based business in Zanzibar.

Karume returned to government and politics in 1990 when he was elected to the Zanzibar House of Representatives from the Raha Leo constituency. In 1995, he was re-elected to that position in multiparty polls. He entered politics in 1990, running for Raha Leo constituency as a Zanzibar Member of Parliament.

He was thereafter nominated as the Minister of Trade from 1990-1995 by President Salmin Amour. In 1995, he was re-elected for the same constituency and thereafter nominated as the Minister of Communication and Transportation.

Karume ran as CCM presidential candidate for Zanzibar and won 67.04 per cent of the vote in an October 2000 election. He was re-elected in the 30 October 2005 election, winning by 53.18 per cent Karume is married and is the father of six adult children.

Source: allafrica.com

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