Dar es Salaam. Good morning! The Chanzo is here with a rundown of major news stories reported in Tanzania on May 21,2024.
Professor Mukandala: The original sin behind the MV Bukoba tragedy—procurement violations and bad loan terms
On Tuesday, May 21, 2024, Professor Rwekaza Sympho Mukandala asserted that the original sin behind the MV Bukoba tragedy was the violation of procurement process during the selection of the shipbuilding contractor.
Mukandala a renowned scholar in the country said this during his Professorial Inaugural Lecture at the Nkurumah Hall in the University of Dar es Salaam, Mukandala’s remarks coincided with the anniversary of the MV Bukoba disaster, which occurred twenty-eight years prior on May 21, 1996.
During his lecture, Prof. Mukandala delved into the historical context, noting that Tanzania’s need for a vessel stemmed from the dissolution of the East Africa Community. With most of the community’s ships remaining on the Kenyan side, Tanzania had to acquire a new ship for Lake Victoria.
Constrained by limited financial resources, Tanzania secured a 500 million franc loan from the Belgian government. However, this financial arrangement came with conditions regarding the procurement of the ship.
“The original sin in the MV Bukoba tragedy was failing to adhere to the basic procurement processes. The process was noncompetitive, the tender was not floated to invite different companies,” argued Mukandala
He added: “The loan came with shackles; it had very stringent conditions. The ship and its anchors had to be purchased from Belgium. Moreover, there was no competition even in Belgium. The Belgian government appointed the company to build the ship, leaving the Tanzanian government with no say in the arrangement.”
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Strandline to sell its Tanzania mineral assets to China-based Shenghe Resources Holding Co., Ltd (Shenghe)
Australian-based miner Strandline Resources Limited has announced that it’s going to sell its Tanznaia’s mineral assets to Shenghe Resources Holding Co., Ltd (Shenghe) for a total consideration of USD 28.7.
The transaction will involve four projects including Tajiri Project in Tanga Region, Fungoni Project in Dar Es Salaam Region, Bagamoyo Project in Coastal Region, Sudi Project in Mtwara Region.
Shenghe is a company listed in the Shanghai Stock Exchange (SHA: 600392) with its operation divided into three categories; rare earth industrial chain, mineral sands industrial chain and recyclable economy industrial chain.
The news comes two months after March 21, 2024, when Tanzania awarded Strandline a special mining license for its projects in Tanga with the company committing to investing about USD 127 Million in the mines. The transaction is subject to legal and regulatory approvals by both the Tanzanian and Chinese governments.
Mkapa legacy summit set for July 2024
The Benjamin William Mkapa Foundation has announced that the Mkapa Legacy Summit is scheduled to take place from July 29th to 31st, 2024, at the Julius Nyerere International Convention Centre.
This summit, dedicated to the memory of Tanzania’s third president, Benjamin William Mkapa, will center around the theme: “Mkapa’s Legacy: Taking Local Sustainability to New Horizons.”
The first two days of the summit will revolve around a national dialogue titled the National Human Resource for Health (HRH) Conference.
Dr. Samia Suluhu Hassan, the President of the United Republic of Tanzania, is anticipated to grace the Mkapa Legacy Summit as the guest of honor on July 31st, 2024.
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