TANZANIA RAILWAYS

Train services from Dar-es-Salaam to Kigoma resumed in June, although limited to only one serice per week. Photo Jackson Odoyo

The problems facing Tanzania Railways Ltd (TRL) have not been resolved (they have been described in several issues of TA) but a number of new developments have been reported during recent months.

In May it was revealed that the India-based firm RITES was demanding $86 million (about Shs 125billion) as the cost of ending the 25-year deal it had signed with Tanzania three years earlier. However, the Guardian on Sunday claimed that the company hadn’t invested any money in the railways during all this time. The paper alleged that RITES had expected to use the TRL’s shares and assets it acquired in order to borrow $400 million from the International Finance Corporation/World Bank. As the quality of service on the main lines declined, the paper said, the government eventually agreed to buy back the 51% of shares RITES owns. Then, alarmed by the financial report presented by RITES, the government’s negotiation team was said to have asked for an independent auditor to verify the books of accounts, before any compensation deal could be reached. RITES apparently did not agree to this.

On June 8 the Daily News reported that the government had formed an interim management team to run Tanzania Railways Limited (TRL) while the government looked for a reliable and serious investor. RITES management had agreed to hand over the assets and operations of TRL as a decision to this end had been made by shareholders on both sides of the partnership.

TAZARA

The Tanzania Zambia Railway Authority (TAZARA), a company built with $500 million Chinese aid in the 1971’s and jointly owned by Zambia and Tanzania, is also in serious operational and financial trouble due to a fall in traffic and the old age of its locomotives, which have not been well maintained. The railway line runs some 1, 870 kilometers from Dar-es-Salaam to Zambia’s Kapiri Mposhi.

New Managing Director Akashambatwa Mbikusita-Lewanika, who was appointed in 2010 has said that the management is determined on turning around the company. It had developed a 2010 action plan which indicated what should be done to bring efficiency to the company. The company was expected to spend about $520, 000 on repairing 500 defective commercial wagons this year. The company currently had 1, 853 commercial wagons, of which only 988 were running. This rehabilitation exercise would see the company increasing its volume of cargo from the current 15, 000 to at least 72, 000 tons per month. The company’s liquidity problems had resulted in it accruing a huge debt which it was currently trying to off-set.

In 2008 the two governments had signed an agreement with the Chinese which would cover the provision of equipment, materials and other technical services valued at $40million and, in 2010, the Chinese gave the company a $39 million interest-free loan to revive its operations.

The Daily News (August 8) published a highly critical article saying that TAZARA’s low cargo load represented nothing but death itself. This view was in contrast to a TV documentary shown on British TV which was surprisingly up-beat. The programme showed a very open management struggling with great determination and remarkable resourcefulness. Among the suggestions made in the Daily News was that TAZARA should open its CEO position to international competition. ‘They should just borrow a leaf from the success of Kenya Airways (KQ) which employs the service of foreign experts in some of its important departments.’ It quoted a number of companies wanting to use the line including Tanzania Breweries, Mbeya Cement, Mufindi Paper Mills, plus the Chinese company mining coal in Chunya.

AIR TANZANIA CORPORATION LTD

Minister for Infrastructure Dr Shukuru Kawambwa, has revealed some of the problems facing Air Tanzania (ATCL).

He said for several years government has been trying to bail it out by pumping in more and more capital, but it continued limping. As a result it was decided that as from June this year the airline would be restructured. “It is not enough to do minor jobs. We intend to transform ATCL into a new airline with the cooperation of the private sector,” the Minister said – Nipashe.

He said efforts by the government to find a reliable investor for the cash-strapped airline were continuing. The Chinese firm China Sanangol International Limited (CSIL), which had earlier shown interest, appeared to be withdrawing.
The Minister said that ATCL was spending more than it earns. The firm’s revenue between July 2009 and March 2010 was Shs 7.8 billion while its expenditure stood at Shs 26 billion. During this period ATCL had carried a total of 63,362 passengers and 253 tonnes of cargo.

The Communication and Transport Workers’ Union (COTWU) has also registered its concern over the plight of ATCL, which they said they saw collapsing unless concerted efforts were made to resuscitate it.

Air Tanzania Corporation Limited (ACTL) management stated in April that it could not repair the B737-200 aircraft that crash landed at Mwanza airport in February since the cost of doing so would be too high. The Corporation would be referring the matter to its insurance company – Guardian on Sunday.

KILIMO KWANZA

One of the main features of the new government policy of Kilimo Kwanza (Agriculture First) is that certain unused government-owned land and other land not being adequately farmed might be leased out to local and foreign firms to use for large scale farming. But this idea is coming under increased criticism in Tanzania and amongst NGO’s and other activists abroad. They point out that China has secured land in the Democratic Republic of Congo roughly the size of Belgium to set up the world’s largest palm tree plantation and that Rwanda has signed a $250 million investment deal to produce 20 million litres of biodiesel per year from jatropha, a hardy ‘wonder plant’ that can grow in low-quality soil. They claim that all over Africa what they describe as ‘land grabbing’ is speeding up. They warn of possible water shortages, evictions of farmers and corruption.

Tanzania is being criticised for its lack of policy to guide biofuel investment. According to the Tanzania Investment Centre, the country has over 33 million hectares of uncultivated, arable land. But ‘uncultivated’ doesn’t mean ‘unused.’ For many villagers such land is a source of firewood, medicinal herbs and building materials. When foreign investors come, locals get displaced. Moreover, loss of economic opportunities is rarely included in compensation for land legally belonging to a village. In Kilwa District villagers were paid less than $10 per hectare by a biofuel company for giving up their right to their farms. The International Institute for Environment and Development, a London-based think-tank, calculated that in some cases the value of timber harvested from such land each year is higher than the compensation the villagers receive.

JUSTICE FOR ALBINO KILLERS

Vicky Ntetema has written to TA from Dar es Salaam to describe the continuing persecution of Albinos in various parts of Tanzania and the punishment being doled out it the courts for those found guilty. Among the recent cases she mentions are the following:

– Kenyan Nathan Mutei was sentenced to 17 years in prison with hard labour after admitting in a Mwanza court that he wanted to sell a fellow Kenyan Albino, Robinson Mkwama, for $260,000. Mutei pleaded guilty on 18th August. Almost 50% of the murders of persons with albinism between 2006 and 2010 were committed in Mwanza region. Mutei will serve the jail term in Kenya. In his plea of mitigation Mutei explained to the court that he arrived in Tanzania in June this year with the intention of seeking a witchdoctor for his personal problems. But the witchdoctor told him that he had to bring albino organs. On August 10th he left to find a person with albinism in Kenya. Two days later he was back in Mwanza and ready to sell Mkwama but walked into a police trap.

– Three men are on death row after the Kahama High Court found them guilty of brutally killing a 13-year-old boy in Shinyanga region in December 2008. The men, including a witchdoctor, severed the legs and took them to the home of the sangoma.

– Also in Kahama, in April 2010, a thirteen year old girl narrowly escaped death after three men severed her right arm. The men broke into her home where she was sleeping with her mother, terrorised the occupiers of the compound using hand grenades and shooting in the air and ordered the family to pour kerosene on the girl’s severed arm ‘to stop the bleeding’. When they could not find kerosene, they broke into a shop nearby, stole the liquid and handed it to the family members before speeding off.

– In April 2010 a four-year-old child in Kigoma Region had her left leg and left arm chopped off and was left to die just 200 metres from her home compound.

– Four men including village leaders are to hang for the brutal slaughter of 54-year-old Lyaku Willy in November 2009 in Shinyanga Region. Lyaku’s headless body was fished out from the River Kidamlida. His head and legs were recovered from the home of one of the killers.

– Kazamiri Mashauri is facing the hangman’s noose for the ferocious slaughter of five-year-old Mariamu Emmanuel on 21st January 2008 in Misungwi District, Mwanza region. The fifty-year-old man was convicted by the Mwanza High Court in July. Kazimiri and three others entered the house, slashing Mariamu’s throat open, drinking her blood before severing her legs and vanishing in the darkness.

The Tanzania Red Cross Society, UNICEF and local authorities in the Shinyanga region have received $25,000 to help set up camps for ‘Internally Displaced Persons with Albinism.’

THE NILE – STILL NO RESOLUTION

After ten years of talks there is still no resolution in sight to the controversy over the use of the waters of the River Nile, according to an analysis published by the UN’s IRIN. Extracts:

“The problem is lack of cooperation in water management,” Debay Tadesse, senior researcher at the Institute for Security Studies in Addis Ababa, said. “There is enough water for all the riparian states and an agreement singed in Entebbe on May 14 opens the way for more equitable management.”

This new agreement, the ‘Nile River Basin Cooperative Framework’ was signed by Ethiopia, Rwanda, Tanzania and Uganda, but was left open for a year in the hope that others among the nine states involved, in particular Egypt and Sudan, would join later. The agreement also transformed the ‘Nile Basin Initiative’ into a permanent ‘Nile River Basin Commission.’ Kenya signed on 19 May.

Egypt’s Water Minister said: “Any project that takes away from the river’s flow has to be approved by Egypt and Sudan in accordance with international treaties.” But, according to Kithure Kindiki of the School of Law at the University of Nairobi, neither the unilateral claims of Egypt on maintaining the status quo on the Nile, nor the threat by upstream states such as Tanzania, to obstruct the Nile-Victoria system, are supportable in law.

The new agreement attempts to review two deals signed in 1929 between Egypt and its former colonial power, Britain, and in 1959 with Sudan. The accords gave Egypt and Sudan up to 87% of the Nile’s flow. Egypt was also given the power to veto dams and other water projects in upstream countries. To monitor the water levels, it maintains teams of engineers along the river. “Egypt’s historic rights to Nile waters are a matter of life and death. We will not compromise” said the Egyptian Minister of Legal and Assembly Affairs. The Sudan indicated that it would not sign the agreement until all the nine states reached a solution to the issues in dispute. But this position could change if Southern Sudan voted for independence in a 2011 referendum.

Ethiopia wants to build more dams on the Blue Nile, Sudan has promised foreign farmers vast pieces of land, in Kenya farmers want to expand irrigation and Tanzania intends to build a 170 km pipeline from Lake Victoria to supply dry areas.

Uganda’s ‘New Vision’ described the Entebbe meeting: ‘The heat intensified and tempers flared and became as hot as the desert sun.’ The upper Nile countries say they were never consulted when the agreements were made and that climate change has disrupted the rainfall patterns.”

On July 27 Egypt offered an olive branch by offering to dig 230 water wells including 30 in Tanzania as part of its development assistance programme.

Eventually it was decided to try again at an emergency meeting to be held in Nairobi between September and November 2010 but Ethiopia, Uganda, Tanzania, Rwanda and Kenya reiterated that they would not backtrack from the framework agreement which they had signed and which seemed to give them a chance to obtain greater access to the Nile waters.

FAITH NEWS

Presidents Kikwete and Museveni attended prayers for Mwalimu Nyerere’s proposed beatification in Kampala on June 1. President Kikwete thanked Ugandans for ‘owning’ the process of beatification, a vital stage towards canonisation or his proclamation as a saint by the Catholic Church. Kikwete said that by doing so, the Catholics in Uganda had “in actual fact owned a process that was essentially Tanzanian”.

President Museveni said that Tanzania was the only peaceful country in the whole of East Africa, thanks to the good foundations laid by Mwalimu Nyerere. He pointed out that good people would always be judged by their deeds and not words, giving as an example a reference to the injured person who was helped by a Good Samaritan after a priest and a Pharisee passed him without offering any help.

The Association of Imams in Zanzibar (JUMAZA), with 18 other Muslim organisations, called upon people to vote ‘yes’ in the Zanzibar referendum on a government of national unity. It was the only way in which the people of the Isles could get rid of the political animosity that had been dogging the islands for decades – Nipashe.

Following news that a conference organised by the American Political Science Association (APSA) might be held at Dar es Salaam University, and that gay people would be attending, several Muslim clerics were quoted as saying that this would be tantamount to provoking disorder. They said that the people would not sit quiet while their country was turned into a ‘centre of debauchery’. “If this protest is ignored we shall stop them physically” they said – An-Nuur.

The Association of Imams in Zanzibar (JUMAZA) has called upon Muslims to protest at the Child Act 2010, as it contradicts the Islamic Sheria. JUMAZA Secretary General Maalim Zubeir issued a statement saying that the Act would not be applicable as it was contrary to the ‘customs and traditions’ of Muslims in the Isles. For example, he said, “The Act criminalises corporal punishment while in Islam it is allowed as long as it doesn’t cause physical injury to the child. Caning a child is allowed when he/she refuses to pray” – An-Nuur.

NEW MINING BILL PASSED

Parliament passed the new Mining Bill following heated debate in the National Assembly in April. Prime Minister Mizengo Pinda, Attorney General, Frederick Werema, and Minister for Energy and Minerals William Ngeleja, had to hear hours of critical contributions by MP’s. The Citizen reported that CHADEMA MP Zitto Kabwe, Speaker Samuel Sitta, newly nominated Zanzibar CUF MP Ismail Jussa, and Bumbuli CCM MP William Shelukindo were among those who kept the front bench on its toes, constantly seeking clarification on issues.

The MPs took issue with the inadequate compensation paid to villagers whose land is acquired for mining and also called for more transparency in operations in the industry. Some 84 MPs contributed to the Bill which became the most debated Bill during the 19th parliamentary session.

The Bill provides for:
– the setting up of a new Mining Authority
– the government to effectively manage and supervise the sector
– five year reviews of mining contracts
– setting aside specific areas for small-scale miners to avert conflicts between artisanal miners and big mining companies.
– gemstones to be processed locally; foreigners wishing to mine gemstones will be required to enter into joint ventures with locals.

The Africa Report (No 23 of 23.06.10) commented that this Bill marked an attempt to increase government revenue and ease fierce public hostility towards foreign mining companies. New investors in Tanzania’s mining sector will now be charged 4% rather than 3% royalties for precious and base metals (gross rather than net); they will have to list on the Dar es Salaam Stock Exchange; and, the government will have a stake in any new mining project. Gemstone companies will have to be at least 50% Tanzanian.

The proposed changes are expected to raise mining revenue from $57m in 2009 to $110m in 2010.

THE CONTROVERSIAL HUNTING BLOCK

For many months Tanzanian Affairs has been receiving a great deal of information from environmentalists, human rights activists and others concerning the allocation, in 1992, of a large block of land (4,000 sq kms) in Loliondo, Arusha to a game hunting firm. This firm, the Ortello Business Company, is owned by the Deputy Minister of Defence of the United Arab Emirates and his associates, some of whom are believed to be members of the royal family of the UAE. Much of the information alleges that these foreign leaseholders are guilty of various hunting malpractices.

In 2006 some of the Maasai resident in the area were said to have started constructing new biomass farming and bringing in large numbers of cattle during the hunting season. In 2009 it was reported that the government had evicted up to 3,000 Maasai villagers with their cattle.

The original hunting licence has now expired and the company is preparing an application to renew it.

According to the East African, quoting the company, Ortello has been paying its annual dues of $560,000 to the government, plus $150,000 to the villages around the Loliondo Game Controlled Area as well as $109,000 to the Ngorongoro District Council. The article concludes by saying that no other district in Tanzania containing hunting areas received this level of funding for community development from the hunting business.

TORTOISE SMUGGLING UP

Illegal trafficking of live tortoises, snakes and lizards is on the rise according to an article in the Guardian: “After finding it difficult to deal with elephant tusks, leopard skins and rhino horns, poachers have now shifted their attention to smaller animals that can be moved in briefcases or sent as mail,” said Theotimos Rwegasira, a senior conservation official. “Last year 300 live tortoises from Tanzania were seized in Hong Kong.” They had been sent via the Post Office’s ordinary mail, something said to have been going on for years.

Mr Rwegasira said that apart from live tortoises and turtles, other creatures targeted by poachers were frogs and their eggs, snakes and lizards. He said there were also insects that were in demand abroad.

TANZANIA IN THE INTERNATIONAL MEDIA

Compiled by Donovan Mc Grath

Tanzania: Mixing elections with gold mining – New African (July 2010, No. 497)

According to reporter Sakina Zainul Datoo, ‘President Jakaya Kikwete’s ruling CCM party . . . is facing (in the elections) its stiffest electoral competition.’ Apparently, civil servants have ‘threatened to go on strike if their minimum monthly wage of Tsh60,000 ($43) is not increased to Tsh315,000 ($224).’ They also ‘threatened to shift their voting allegiance elsewhere too.’

The President responded with a harsh tone, saying that the country could not afford such a demand, and the minimum salary could only be increased to Tsh105,000 ($75) this year. Furthermore, ‘he warned the civil servants that they would be replaced if they went on strike.’

There is the feeling that if the government tightened the loopholes in the mining contracts it issues to foreign companies, through the substantial revenue incurred, it would be able to afford its civil servants a reasonable salary.

Extract continues: ‘Tanzania is endowed with riches beyond imagination under its soil [gold, diamonds, silver, tantalite, coltan, steel, iron ore, emeralds and sapphires. There are also deposits of cobalt, copper, natural gas, nickel and titanium]. . . ‘But despite all this wealth, which has made foreign mining companies super-rich, most Tanzanians still live in the agony of poverty.’

As a response to media criticism at the way the mining sector has been handled, President Kikwete formed a commission in 2007 ‘chaired by Judge Mark Bomani to probe accusations of “theft” of natural resources and human rights violations. This Commission found that Tanzania did not benefit sufficiently from the multitude of natural resources under its soil.’ A new Mining Act was passed on 23 April 2010 as a result of the Commission’s findings. ‘However, for all the goodwill that went into reviewing the mining sector, the new law still does not offer any significant changes. One major component absent from the new law is an extremely important “windfall tax” clause. . ‘Of the seven gold mining companies operating in Tanzania, only one, Geita Gold Mine (GGM), owned by Anglo Gold Ashanti, has paid any corporate tax. . .’

In what can be described as a ‘lost opportunity’, a joint 2008 report titled: “A Golden Opportunity” by the Christian Council of Tanzania (CCT), the National Muslim Council (BAKWATA) and the Tanzania Episcopal Conference (TEC) in collaboration with Christian Aid (UK) and Norwegian Church Aid showed that the government had incurred great losses of tax revenue from mining. “We calculate that Tanzania has lost at least $265.5m in recent years as a result of an excessively low royalty rate, and government tax concessions that allow companies to avoid paying corporate tax”…’

The report also shows that ‘over the last five years, Tanzania exported gold worth more than $2.5bn but only received $21.7m a year in royalties and taxes while the expectation was to get $100m annually.’


Presidents support Nyerere beatification
– The Tablet 12.06.10

‘Two African leaders have voiced support for the canonisation of Julius Nyerere, Tanzania’s founding president . . .’

Extract: ‘On 1 June, speaking at the Catholic Martyrs’ Shrine at Namugongo, in Uganda, the Ugandan President Yoweri Museveni paid tribute to the man known in neighbouring Tanzania as “Mwalimu” (teacher) or “Baba wa Taifa” (Father of the Nation). . . “We should continue praying that [Nyerere] reaches a stage where he could be declared a blessing of God” [said Mr Museveni].

‘President Jakaya Kikwete of Tanzania echoed Mr Museveni’s words…

‘The campaign to canonise Nyrere began on 26 January 2006 when the Vatican accepted a request from the Bishop of Musoma in northern Tanzania to consider his cause. The Vatican then granted him the title of “Servant of God”.’

Sea Turtles: Tanzania – The [London] Guardian 22.05.10

‘Sea turtles on Tanzania’s Mafia Island have surged since local people were paid to stop eating them. Anybody who finds and reports a nest gets payment up front, followed by a second payment depending on how many eggs hatch. When the scheme began in 2001, every one of the 150 nests on the island of 41,000 people suffered poaching – a figure which fell to less than 1% in 2004. Over that time the number of hatchlings increased from 1,200 to more than 10,000, although this probably includes the effect of higher discovery rates too.’

Game for anything: safari that thinks it’s a beach holiday
– The Observer 14.02.10

As East Africa’s only coastal game reserve, Saadani National Park is in a unique location. Nicola Iseard entices readers to experience the excitement and beauty of the surrounding area, and the warmth of the local people.

Extract: ‘. . . The beauty of the Saadani Safari Lodge: it is as much about the people, the locals, as it is the wildlife. . . [here] you live with the locals. . . When national parks are proclaimed, communities are often resettled outside the park in an endeavour to control human/wildlife conflict. But at Saadani the wildlife and the village, which is one of the oldest settlements in Tanzania (dating from the sixth century), manage to co-exist. . . The lodge . . . the only safari camp inside the park . . . is considered part of the community . . .’

Tanzania: [Commercial Bank Launch] – The Tablet 10.04.10

Extract: ‘The Catholic Church in Tanzania has officially launched its Mkombozi Commercial Bank in a bid to alleviate poverty and boost its own self-sufficiency . . . The bank, which operates from the premises of St Joseph’s Catholic Cathedral . . . Dar es Salaam, pledges to accept clients of all faiths, with an emphasis on “the lower income segment” of society. . . The bank, which has been operational since August [2009], offered financial education and business management training, and pledged to make loans available to small-scale farmers. . .’ Thank you Doreen E. Woodford for this item – Editor.

HIV prevention – Martlet (Spring 2010) [Pembroke College, Cambridge, newsletter]

The following is a short extract of a report by Francesca Woodburn, who founded the charity Empuaan which aims to reduce the spread of HIV in northern Tanzania.

‘. . . In East Africa the Maasai are now experiencing the early stages of what is likely to be a catastrophic epidemic. To the Maasai, HIV is a “new” disease and a new threat, and most remain uniformed, unprepared and unprotected. . . When I took a job at a newly established secondary school for Maasai students in Tanzania . . . I saw . . . lovely young people enjoying all the pleasures of youth completely unaware of the danger to which they were exposed. . .’ As a result, Woodburn founded Empuaan (‘Survival’ in Maasai). ‘A key element of Empuaan’s work is to provide reliable, up-to-date information on HIV in a culturally accessible way and to provide forums for critical thinking and decision-making through discussion of social issues relating to HIV, its transmission and impact. . . Empuaan liaises with both governmental and non-governmental agencies to distribute condoms in rural areas. . . Empuaan’s most recent initiative is [their] Youth Literature Project [HIV awareness booklets distributed freely] . . . written in both Swahili and Maasai. . .’

Tanzania: The illegal trade in ivory

March 29 issue of The East African included two articles by Mike Mande highlighting the March 2010 report issued by the London-based Environmental Investigation Agency (EIA) and the Journalists’ Environmental Association of Tanzania following a joint investigation into poaching and the illegal trade in ivory.

The first article is headed: ‘Organised poaching, illegal trade – why Tanzania lost out at Cites meet’.

Extract: ‘A new investigation by a panel of international and local experts that implicated senior government officials in the illegal ivory trade and the rise of elephant poaching in Tanzania is believed to have led to the country being denied permission for a one-off sale of its $20 million ivory stockpile [see TA No 96 for a related article]. ‘The report . . . says the illegal international trade in ivory is conducted by organised criminal syndicates with the collusion of corrupt Tanzanian officials. . .

The report . . . says the most recent Elephant Trade Information System (ETIS) analysis reveals that the country’s scale of its involvement is second only to that of China . . .’

Mande’s second article is entitled: ‘Tusks flooding out of Selous during the rainy season’. Extract: ‘. . . Investigations conducted by the [EIA and the Journalists’ Environmental Association of Tanzania] have found that the price for raw ivory at the village level at Mloka stands at $19 per kilogramme, with buyers often being retired army, police and government officials, who also help provide firearms to the poachers. . . The Executive Director of the association, John Chikomo said that local villagers told them that from Mloka, the ivory is transported to Dar es Salaam in small consignments, sometimes by public bus but also concealed in government vehicles that are never stopped at checkpoints . . . The investigations confirm that ivory is flowing out of the Selous, with the connivance of rangers working in the reserve. . .’

Press handouts can save the lives of children – The Independent 12.04.10

‘Western subsidies help Tanzanian reporters expose health risks to babies and the fight against Aids . . .’

Extract continues: ‘Over 1.8 million adults in Tanzania are infected with HIV and when the government declared Aids a national disaster Simon Kivamwo set up AJAAT [Association of Journalists Against Aids in Tanzania] which was founded in 2003 with the primary objective of improving reporting about Aids. . . With a grant from the newly established Tanzania Media Fund , AJAAT has organised training workshops for journalists and is now publishing a weekly newsletter. . .

‘For Pendo Ndovie a grant to hire a car was the means to exposing a scandal involving fake baby food affecting babies throughout Tanzania. . . A small grant gave her the means to develop the story and she eventually accumulated sufficient evidence to publish a series of articles which led to the product being banned from sale. One of the objectives of the media fund is to encourage independent journalism which roots out corruption in public life. ‘ Thank you Elsbeth Court and Julian Marcus for this item – Editor.

BG Group buys into 3 Tanzania offshore gas blocks in Mtwara – The East African (14-20 Jun 10)

Extract: ‘British energy firm BG Group, has acquired a 60 per cent stake in Ophir Energy Ltd, a company licensed to explore and produce liquefied natural gas in Tanzania. The Tanzania government has approved the deal . . . The three blocks cover more than 27,000 square kilometres of the Mafia Deep Offshore basin and the northern portion of the Ruvuma basin located in water depths ranging from about 100 metres to 3,000 metres. . . Alan Stein, the managing director of Ophir Energy plc told The EastAfrican . . . that after completion of the initial work programme, BG Group may withdraw from each of the production sharing agreements or it may assume control and continue to fund 85 per cent of all costs through to the completion of an extended work programme which will involve drilling several more wells.’

Dar bans export of raw tanzanite – The East African (14 June)

Extract: ‘Tanzania has banned the export of raw tanzanite gemstone. Minister of Energy and Minerals William Ngeleja announced the embargo saying the action was taken to spur development of the local processing industry, thereby boosting the economy and recouping profits. . . This is a blow to India’s second largest city of Jaipur, the main importer of the mineral. Tanzanite accounts for one-third of the annual gem imports of Jaipur and employs nearly 250,000 people in cutting and polishing the raw gem for re-export. Industry players in India fear Tanzania may extend the ban to the export of all raw material including diamonds, emeralds, rubies, sapphires, turquoise and topaz. . . According to Jagdish Tambi of KL Tambi of Jaipur, Tanzania’s move is ill-advised as the country does not have the capacity to cut and polish the gemstone.

However, Tanzania Mineral Dealers Association (Tamida) chairman Sammy Mollel disputes this, saying the country has over 400 qualified experts in cutting and polishing tanzanite. “Cutting tanzanite locally will minimise smuggling, create employment for local people, help the industry and contribute more to the government in terms of revenue he said. . . . It is estimated the tanzanite nets about $100 million annually while the finished gems are sold for over $500 million annually. . .’

Elections in Tanzania: What’s the hurry? – The Economist (05.06.10)

‘The president is trying, without much luck, to gee things up.’ Extract: The World Bank now ranks Tanzania a lacklustre 131st in the world, dropping steadily down the league as a place for doing business. Neighbouring Uganda comes in at 112th, with Kenya in 95th place. Tanzania is the laggard in a poor field. A local brand of socialism first promoted by Tanzania’s founding president, Julius Nyerere, helped give its 44m people a sense of unity but failed to equip them for the 21st century. The country still feels elephantine, its infrastructure is rickety, its electricity patchy, most of its roads unpaved and potholed. . . Tanzania’s economy is ticking along. This year it may grow by 6%. . .

President Kikwete has at least tried to give the appearance of curbing corruption. . . Visiting businessmen, however, say they are still deterred by red tape, a weak legal system and lack of skilled labour. Above all, they say, Tanzanians seem to lack a sense of urgency.’ Thank you David Leishman for this item – Editor.

Climate change heating up Lake Tanganyika, fish catches dropping – The East African (31 May-6 Jun 10)

Extract: ‘Lake Tanganyika, East Africa’s second biggest inland water mass, is at its warmest in at least 1,500 years, threatening its ecosystem. This is according to a new scientific study published in Nature Geoscience.

‘Scientists say the lake has been heating up in the past 90 years, which means that in future, the 200,000 tonnes of fish caught annually . . . could be under threat.

‘The lake, which straddles the border between Tanzania, Burundi, Zambia and Democratic Republic of Congo, is a vital source of protein for the thousands of people living on its shores. It is also a source of employment for the hundreds of fishermen who take their boats out each day.

‘The scientific journal says that there is already evidence that the lake has become less productive, while analyses of lake sediment show that the unprecedented warming could be attributed to climate change. . . Scientific experts also acknowledge that other factors, like excessive fishing, may be doing more harm than any global warming at present.’