Dar es Salaam. The implementation of the petroleum bulk procurement system in purchasing fuel for the country has reduced losses by 0.2 percent from the previous 5 percent, surpassing the international requirement.
The system has significantly decreased the time for ships to offload petroleum from between 40 and 90 days to just three to four days, saving substantial waiting charges.
“Through this system and the executives who track it down to the warehouses, the loss has dropped to 0.2 percent and saved the cost of between $20,000 and $80,000 that ships charged a day for waiting,” said Mr. Bruno Tarimo, the head of petroleum inspection at the Petroleum Bulk Procurement Agency (PBPA).
Speaking at the ongoing 48th Dar es Salaam International Trade Fair (DITF), which started on June 28 and will run until July 13, Mr Tarimo said the system’s success in various areas, including an increase in demand for petroleum products in neighbouring countries,.
He also mentioned that before the system was established, monthly consumption was lower, with domestic fuel usage between 60 percent and 70 percent and external usage only 30 percent.
Currently, the fuel distribution is balanced, with an equal share going to domestic use and neighbouring countries, sometimes reaching up to 55 percent.
“We continue to urge Tanzanians to learn the system so that they can understand it and be able to use it, thereby attracting more investors to the supply chain.”
This system has also enabled small companies to enter the oil import business. Initially, only multinational companies had the financial capacity to import, which led to a lack of fair competition. But now, both large and small companies compete in the tender process under the same criteria.
In a nutshell, Mr Tarimo said the system has facilitated the growth of small companies and improved revenue collection by the Tanzania Revenue Authority (TRA), adding that taxmen can now project the amount that will be collected from imported oil, making it easier to organise funding for government projects.
In July, the agency expects ten ships, including three for diesel carrying 250,000 litres, four for petrol each carrying 36,000 litres, and others for jet fuel. The loading process has already begun.
Regarding quality, Mr Tarimo added that they are collaborating with the Tanzania Bureau of Standards (TBS) to ensure that the products entering the country meet the required standards.
He added that since the agency was established, it had returned three ships that did not meet the criteria, and the supply was required to pay a fine and bring another.
This year’s 48th DITF, 353,201 visitors are expected and 11,712 temporary jobs have been created.
A participant, Ms Adelina Komba, said this year there has been a big difference; the environment has improved more compared to last year.
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Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms
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Handing over the cheque in Dodoma, the compensation is part of the crop insurance service provided by NBC in collaboration with the National Insurance Corporation (NIC).
Furthermore, President Samia has also handed over health insurance coverage to members of the Lindi Mwambao Cooperative Union based in Lindi Region, through the Farmers’ Health Insurance service provided by the bank in partnership with Assurance Insurance Company.
While visiting the bank’s pavilion at the Nanenane Agricultural Exhibition and being received and briefed by the bank’s Managing Director, Mr. Theobald Sabi, she said: “This crop insurance is one of the crucial solutions in ensuring farmers have a reliable income, without fear of challenges such as natural disasters, including hailstorms.
“I call upon all farmers in the country to make the best use of this important opportunity by accessing these kinds of insurance services. I also highly commend NBC and all the stakeholders participating in this programme.”
Elaborating further on the crop insurance service, the Minister of Agriculture, Hussein Bashe, stated that it will help to recover the loss farmers incurred, especially in various calamities beyond their control.
Citing them as floods, fires, and hailstorms, which have significantly affected the well-being of farmers and caused some to be reluctant to invest in the crucial sector, Mr Bashe added: “However, our President, this step by NBC is just the beginning, as this is the second year since they started offering this service, and the results are already visible.
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“As the government, we promise to continue supporting the wider implementation of this service, with the goal of ensuring that this crop insurance service reaches more farmers.”
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On his part, Mr Sabi said that the farmers who benefited from the compensations are from 23 primary cooperative unions in the regions of Shinyanga, Geita, Tabora, Mbeya, Katavi, and Kigoma.
He added: “In addition to these insurance services, as a bank, through this exhibition, we have continued with our programme of providing financial education and various banking opportunities to farmers, alongside offering them various loans, including loans for agricultural equipment, particularly tractors, to eligible farmers.:
At the NBC booth, President Samia also had the opportunity to be briefed on the various services offered by the bank to the farmers namely crop insurance and health insurance services.
There, the President had the chance to speak with some of the beneficiaries of the services, including the Vice-Chairman of the Lindi Mwambao Primary Cooperative Union, Mr. Hassan Mnumbe, whose union has been provided with a health insurance card from the bank.
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