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The Chanzo Morning Briefing – August 8, 2023. 

In our briefing today: After the review, 10 pc local council loans will now cater for both individuals and groups;  Unravelling the DP World deal – the anatomy of the scandal; Govt, US Embassy marks 25th anniversary of US Embassy bombings in Dar; Human Rights Watch wants Tanzania to end ‘arbitrary arrests’ of controversial port deal critics; John Ulanga appointed TPSF’s new CEO

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Dar es Salaam. Good morning! The Chanzo is here with a rundown of major news stories reported in Tanzania on Monday, August 7, 2023.

After the review, 10pc local council loans will now cater for both individuals and groups

The government of the United Republic of Tanzania has announced that it has finished reviewing the procedures and modalities for disbursing the 10 percent local council  loan scheme for women, youth and person with disabilities. This follows the suspension of the loans earlier this year after a CAG report revealed some queries.

The Local Government Financial Act of 1982, CAP 290, Section 37A as amended in 2018 requires  local government councils to set aside 10 percent of revenue from their own sources as no-interest empowerment loans for special groups. These loans are distributed using the 4-4-2 formula for Youth, Women, and People with Disabilities respectively.

Speaking at the Youth Conference in the capital city of Dodoma yesterday, Deputy Minister of State in the President’s Office – Regional Administration and Local Government, Deogratius Dejembi, revealed that the government will soon proceed to offer the loans after the review exercise is completed.

“The team of experts has already completed the review and submitted the report to the Ministry of State in the President’s Office – Regional Administration and Local Government,” said Dugande, who also serves as the Member of Parliament for the Chamwino constituency.

“After that, it will be submitted to the  President for authorization of issuing these 10 percent local government loans again,” added Dugange.

From July 2018 to March 2023, the government has managed to disburse about 233 billion Tanzanian Shillings to special groups. However, the scheme has encountered problems related to allocation, procedures, and the timely recovery of disbursed loans by local authorities.

Addressing these challenges, President Samia Suluhu Hassan suggested that the government should consider using banks as a substitute for the local government councils, as required by the regulations. This suggestion was left to the review team.

In another way, the challenge of a procedure that requires loan applicants to apply in a group will be addressed according to the report submitted to the Ministry, as per the Deputy Minister’s remarks.

“So now we expect to see if there is  young man with good ideas that can increase productivity and efficiency in our nation. He will be able to be get this 10 percent loan without having to be in a group,” underscored Dugange.

Unravelling the DP World deal – the anatomy of the scandal

When examining government projects, differentiating legitimate projects from fraudulent ones demands keen observation. Identifying patterns in dishonest deals allows us to unveil their true nature and take necessary corrective measures before falling prey to well-laid schemes.

The first time I saw the anatomy of a corrupt scheme before it morphed into a public scandal was in 2015. Dege Eco Village was going to create the first modern neighbourhood in Tanzania. I was exuberant about the idea.

Yet, when a seemingly innocuous post surfaced in one group, I could clearly see the game being played. I reasoned that I would not have approved that deal in a million years.

Questionable deals often exhibit five distinct features: simulated urgency, avoidance of procurement processes, illusion of value, opportunistic exploitation, and bad contracts. These tactics have wreaked havoc before – we need to comprehend them well, apply them to the DP World scenario, and learn from the results.

Full analysis here.

Govt, US Embassy marks 25th anniversary of US Embassy bombings in Dar

Deputy Permanent Secretary for Home Affairs Maduhu Kazi Monday joined US Ambassador to Tanzania Michael Battle in marking the 25th anniversary of US Embassy bombings in Dar es Salaam on August 7, 1998, by al-Qaeda, a global terrorist organisation.

The bombings happened on the same date at the US Embassy in Nairobi, Kenya. The bombings killed 224 people, Americans and Africans, wounding over 40,500 others. Among them were ten Tanzanians who lost their lives.

Mohammed Sadeek Odeh and Mohammed Rashed Daoud al-Owhali were arrested in Kenya within 20 days of the bombings and rendered to the U.S. shortly thereafter.

Both were convicted for their roles in the bombing and sentenced to life in prison in October 2001. Many others would be arrested in connection with the incidents.

In his remarks Monday, Ambassador Battle said the attacks aimed at weakening the US-Tanzania relations but failed because the ties between the two countries are very strong.

“The United States government remains steadfast in our commitment to protect American officials and locally employed staff who dutifully serve our nation in jobs, embassies, and consulates worldwide.

“We are resolute in working with our partners to combat terrorism and violent acts of extremism in East Africa, around the region and, indeed, around the world. We are committed to peace and stability.

“Tanzania’s greatest gift and greatest example for the world is its peace, cooperation, and presentation of a United Republic, where diversity in religion and ethnic groups is respected and deeply honoured,” Mr Battle said.

The investigations into the bombings, dubbed KENBOM and TANBOM by the Federal Bureau of Investigation (FBI), the US law enforcement agency, represented the largest deployment in its history.

They led to ramped-up anti-terror efforts by the US government, including an expanded FBI’s overseas presence that can quickly respond to acts of terrorism that involve Americans.

Human Rights Watch wants Tanzania to end ‘arbitrary arrests’ of controversial port deal critics

Human Rights Watch, the world’s leading human rights organisation, reported Monday that authorities in Tanzania “have detained or threatened” at least 22 people since June 10, 2023, for what the organisation believes is the people’s decision to criticise the controversial Tanzania-Dubai intergovernmental agreement.

The agreement, which the parliament approved on June 10, 2023, will allow DP World, an Emirati logistic company, to take over Dar es Salaam port operations. While authorities have defended the deal as “life-changing” for Tanzania’s economy, critics have slammed it as an equivalent to “selling off the country to foreigners.”

But in their analysis published Monday, Human Rights Watch notes that since the deal’s approval, authorities have cracked down harshly on protesters and activists who criticised the agreement for giving another country excessive control of Tanzania’s ports.

On June 19, police arrested and detained 18 people for two days during a protest in Dar es Salaam, the organisation said. It also mentions cases of critics being ordered to report to the police following their statements concerning the deal.

These include lawyers Rugemeleza Nshala and  Boniface Mwabukusi as well CHADEMA Deputy Chairperson (Tanzania Mainland) Tundu Lissu, who on several occasions have been summoned by the Director of Criminal Investigation (DCI) following their public criticisms of the deal.

Oryem Nyeko, a Tanzania researcher at Human Rights Watch, described the suppression of the government’s critics as “troubling,” calling it a “sign of [the government’s] low tolerance for dissenting views.”

“Instead of clamping down on critics, the government should respect the right to freedom of expression and assembly and listen to them,” Nyeko wrote for Human Rights Watch.

“The Tanzanian government should end these arbitrary arrests and take further steps to address the challenges to freedom of expression,” he added. “[Samia’s] government has made important progress on rights, and instead of falling back to the previous government’s stance, it should stem this tide of repression.”

John Ulanga appointed TPSF’s new CEO

Tanzania Private Sector Foundation (TPSF) announced Monday that it appointed Mr John Ulanga as its new Chief Executive Officer effective August 7, 2023. He is succeeding Mr Raphael Maganga, who had been acting in the role.

Before Monday’s appointment, Mr Ulanga was the Regional Director of TradeMark East Africa (TMEA), now TradeMark Africa (TMA), an aid-for-trade organisation established in 2010 to grow prosperity through increased trade.

Announcing the appointment Monday, TPSF Board Chairperson Angelina Ngalula said the organisation hopes that Mr Ulanga will continue to contribute towards the growth of the private sector, enhance employment, and enhance sources of national revenue.

“Mr Ulanga brings a wealth of experience and expertise,” she said. “TPSF and private sector shareholders hereby welcome Mr Ulanga to TPSF. We have full confidence in his leadership abilities and look forward to witnessing the continued growth and success of the organisation under his guidance.”

Among other roles that he has served, Mr Ulanga served as the Vice President, External Affairs and Sustainability for BG Group, a major oil and energy company acquired by Royal Dutch Shell in 2015.

He has been chairman of the Board of Serengeti Breweries Limited; KCB Bank Tanzania Limited, and the University Council of the Hubert Kairuki Memorial University, Dar es Salaam.

Speaking on his appointment, Mr Ulanga said: “As I come on board, I look forward to utilising my expertise and experience in engaging with the private sector to grow this institution further and foster our position as an umbrella for the private sector, eager to promote private sector development and the ease of doing business in Tanzania.”

Mr Ulanga holds a Bachelor of Commerce in accounting from the University of Dar es Salaam and an Executive Master’s in Development Policies and Practices from the Graduate Institute of International and Development Studies in Geneva. He is also a Certified Public Accountant (CPA Tanzania).

As an apex and focal private sector organisation, TPSF serves as the voice of the private sector in Tanzania and the umbrella body for private sector associations and corporate bodies in all sectors of the economy, including trade associations.

It provides a platform for the private sector to engage in public-private local, national and international dialogues.

This is it for today, and we hope you enjoyed our briefing. Please consider subscribing to our newsletter (see below) or follow us on Twitter (here), or joining us on Telegram (here). And in case you have any questions or comments, please drop a word to our editors at editor@thechanzo.com.

One Response

  1. “From July 2018 to March 2023, the government has managed to disburse about 233 billion Tanzanian Shillings to special groups. However, the scheme has encountered problems related to allocation, procedures, and the timely recovery of disbursed loans by local authorities.”
    Was anyone made accountable for this embezzlement and loss of funds? Instead we try to brush the scandal under the carpet. Shameful.

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