Prime Minister calls for action to combat escalating unlicensed fishing

Prime Minister calls for action to combat escalating unlicensed fishing

Dar es Salaam. With the Controller and Auditor General (CAG) revealing several lapses in the management of fisheries resources in Tanzania, the Prime Minister, Mr Kassim Majaliwa, now wants government officials to take measures to combat illegal fishing.

In his latest performance audit report on the management of fisheries resources in Tanzania, the CAG, Mr Charles Kichere, says the government has lost about Sh15.162 billion in potential revenue during the past five years due to fishermen’s use of unregistered and unlicensed fishing vessels.

According to Mr Kichere, for the past five years (from 2018 to 2023), a total of 28,615 vessels have been deployed in Tanzanian water bodies to conduct fishing activities, but only 7,730 have been registered or licenced.

“The presence of both unregistered and unlicenced vessels has led to a potential cumulative loss of Sh15.162 billion, which would have been generated through the fisher’s registration licence fee, the Tanzania Shipping Agencies Corporation (Tasac) fee, and tax revenues. The local government contributes about 75 percent to this overall amount,” said the CAG, Mr Charles Kichere, in the report.

But against that background, Mr Majaliwa has instructed ministries to allocate funds in the upcoming fiscal budget to combat illegal fishing.

He said this on Sunday at the official launch and handover ceremony of the patrol boat to aid in tackling illegal maritime activities in the country.

The boat, valued at more than Sh1.3 billion, was acquired with support from the United Nations Development Programme (UNDP) in collaboration with the Japanese government and is a milestone of a pivotal project aimed at combating illegal, unreported, and unregulated (IUU) fishing and maritime activities in Tanzania.

“Illegal fishing is still a challenge on both Zanzibar and the mainland,” he said.

He further urged the relevant authorities to make provisions for ongoing maintenance of the boat to prolong the boat’s life span.

The premier emphasised that the use of this boat should take into account the priorities that are included and listed in the national guidelines dealing with criminal activities.

He urged managers who will manage the boat to prepare a specific communication plan for both sides of the union.

By doing so, it will strengthen and control illegal activities on the seaside on the mainland and Zanzibar and take care of them.

UNDP resident presentative in Tanzania, Shigeki Komatsubara, said that UNDP was looking forward to working with all countries’s stakeholders for the peaceful and prosperous future of Tanzania and Africa.

“UNDP reaffirms its steadfast commitment to maintaining close collaboration with the government to achieve the sustainable development goals and vision for 2050 and propel forward the blue economy sector for the prosperity of all Tanzanians,” he noted.

Mr Komatsubara explained that fishing poses a great threat to maritime ecosystems, with global economic losses estimated at $50 billion and substantial financial losses.

He recognised the critical role of maritime security in sustainable economic development, environmental preservation, and national security.

“I cannot stress enough that investment in robust maritime security is essential to safeguarding the coastal areas and ensuring our sustainable and inclusive growth,” he said.

According to the CAG, illegal, unregulated, and unreported fishing poses a severe threat to the fisheries resources in Tanzania.

In Lake Victoria, the second-largest freshwater body in the world, it has been reported that 76 percent of fish species are currently facing extinction.

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Britam half-year net profit hits Sh2bn on higher investment income
Tanzania Foreign Investment News
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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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