The Chanzo Morning Briefing – May 11, 2022. 

In our briefing today: Minister explains eight measures government will take to address fuel price hike; Here’s what Samia agreed with Museveni during the former’s latest visit to Uganda; Second Vodacom Tanzania CEO steps down in less than a year; Tanzania plans to end sugar, edible oil imports by 2025.    
The Chanzo Reporter11 May 20226 min

Dar es Salaam. Good morning! The Chanzo is here with a rundown of major news stories reported in Tanzania on Tuesday, May 10, 2022.

Minister explains eight measures government will take to address fuel price hike

Energy Minister January Makamba on Tuesday outlined eight measures that the government is planning to take to address the ongoing fuel crisis that continues to wreak havoc on many economies globally, including that of Tanzania.

Mr Makamba’s announcement was preceded by that of President Samia Suluhu Hassan who told Tanzanians on Monday via the national address that the government has heard citizens’ concerns about the increasing cost of living, directing Mr Makamba to outline measures to be taken to alleviate pains stemming from the fuel price hike.

The measures announced by Mr Makamba include the establishment of an Sh100 billion fuel subsidy programme, which will be released before the starting of the next financial year of 2022/2023.

The fund will be generated by reducing government expenditures in the remaining period of the previous financial year, Makamba said, pointing out that the release of the money will not affect the ongoing development projects currently under implementation.

Another measure that the government will take is allowing people with the interest and capacity to import petroleum products into Tanzania to do so as suggested earlier by others, including members of parliament.

Mr Makamba also said the government has bought the idea of establishing a fuel price stabilization fund, which many stakeholders, including lawmakers, have repeatedly suggested since the crisis started.

Other measures that the government is planning to take are to establish national strategic petroleum reserves; establish a petroleum hub; and establish a single receiving terminal through the Tanzania International Petroleum Reserves Limited (TIPER) warehouses.

The government will also improve the capacity of the Tanzania Petroleum Development Corporation (TPDC) so that it can be able to trade petroleum products, a practice it had stopped doing for 20 years.

Mr Makamba also said the government will improve the efficiency of its institutions responsible for regulating petroleum products in Tanzania, including the Energy and Water Utilities Regulatory Authority (EWURA) and the Petroleum Bulk Procurement Agency (PBPA).

“These measures will be elaborated on in detail and lawmakers will have the opportunity to share their views and their advice on them in the coming three weeks during the tabling of the budget of the ministry of energy,” Mr Makamba told the parliament.

The Bumbuli MP (Chama cha Mapinduzi – CCM) said that despite the price hike, the management of the petroleum sector has been stable in Tanzania and done in a very careful manner.

“This is not accidental,” Mr Makamba said. “It is thanks to deliberate efforts taken by the government in close collaboration with the private sector.”

According to him, the fuel price hike is undoubtedly a tragedy but the greatest national security danger lies in the absence of fuel altogether.

“As a country, we have not reached that stage,” Mr Makamba said assuredly. “As we speak, we have the amount of diesel enough to cater for our needs for 27 days. Petrol for 34 days. Kerosene for 81 days. And aviation gasoline for 26 days.”

Here’s what Samia agreed with Museveni during the former’s latest visit to Uganda

A number of issues were raised and agreed upon by Tanzania and Uganda on Tuesday during President Samia Suluhu Hassan’s latest two-day state visit to the neighbouring East African nation at the invitation of her counterpart President Yoweri Museveni of Uganda.

A joint communique issued yesterday explained the need for the two countries to address the remaining non-tariff barriers and find solutions to challenges related to trade in order to boost the volume of trade between Uganda and Tanzania. The two leaders directed that these directives be implemented by respective ministries within one month.

The two leaders also witnessed the signing of two Memoranda of Understanding (MoU), one in the 400kV overhead line with a length of 30km from Kyaka, Kagera, Tanzania, to Masaka, Uganda border. The other MoU was on defence and security cooperation.

The two Heads of State also agreed on a pathogenic economy, specifically on collaboration in the development of vaccines between Tanzania and Uganda. It was also agreed that Tanzania shall buy antiretroviral drugs from Uganda.

President Samia and her host were also briefed on the joint cooperation on the security of the East African Crude Oil Pipeline (EACOP). It was agreed that Tanzania shall charge $10 per 100 kilometres per truck from Mutukula to Dar es Salaam, starting from the 2022/2023 financial year.

It was also agreed that Uganda shall supply 10,000 tons of sugar to Tanzania.

On education, it was agreed that Uganda shall identify a sister school in Uganda to partner with Museveni Nursery and Primary School located in Nyabirezi Village, Chato District, Geita region.  

Second Vodacom Tanzania CEO steps down in less than a year

Vodacom Tanzania announced Tuesday that its Managing Director, the South African Sitholizwe Mdlalose, was resigning with effect from June 2022.  Mdlalose returns to Vodacom (Pty) Limited as the new Managing Director, according to a statement by the telco issued yesterday.

Mdlalose’s resignation comes less than a year since Hisham Hendi resigned as the company’s managing director on November 1, 2021, taking a new role as the commercial lead at Vodaphone Spain.

Vodacom’s Board Chairman Thomas Mihayo said in a statement on Tuesday that the company acknowledges the talent and experience that Sitho brought into the organisation. 

“True to his abilities, and in the short period that he served at the helm of the company, he formulated a robust strategy that we all believe will serve to consolidate our leadership position in the market for the mid to long term,” the statement quoted Mihayo who is a retired Justice.

Mdlalose said it was a great honour to serve as the managing director of Vodacom Tanzania PLC where he enjoyed immense support and a fair share of challenges during his time. 

“All of which have contributed to setting solid foundations for the organisation as it recovers from the effects of the pandemic and pivots to a future-ready technology company,” the statement quoted Mdlalose as saying. “I leave behind a strong leadership team that will continue to lead Tanzania well into the digital age and change lives through technology.”

Tanzania plans to end sugar, edible oil imports by 2025

The government of Tanzania on Monday announced plans aimed at ending sugar and edible oil imports by 2025.

The plans were announced by the Minister for Agriculture Hussein Bashe and the Minister for Investment, Industry and Trade Dr Ashatu Kijaji when they addressed parliament in the capital Dodoma.

Bashe said short-term measures to end edible oil imports in the next three years included the distribution of subsidized certified sunflower seeds to small-scale growers.

Long-term measures, added Bashe, included the introduction of tax incentives to large-scale investors in oil palm estates.

The short-term plan on edible oil intervention has started with the distribution of the initial 3,000 tons of certified sunflower seeds to smallholder farmers, he told the House.

Bashe said the government has already allocated 10,000 hectares to one oil palm investor in Kigoma region in western Tanzania.

For her part, Kijaji said the government is making efforts to create an enabling environment for investments in the sugar and edible oil cultivation and processing industries.

Kijaji said sugar milling is one of the top investments in the industrial parks being created in various parts of the country.

Tanzania’s annual consumption of edible oil is 650,000 tons but the local production capacity is 290,000 tons annually, according to official statistics.

The country’s demand for domestic sugar is 470,000 tons annually while the current total production of sugar is 378,000 tons.

This is it for today and we hope you enjoyed our briefing. Please consider subscribing to our newsletter (see below) or following us on Twitter (here) as that is the best way to make sure you do not miss any of these briefings.  And in case you have any questions or comments, please consider dropping a word to our editors at editor@thechanzo.com

 

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