Good morning! The Chanzo is here with a rundown of major news stories reported in Tanzania over the weekend. 

Tanzania targets cryptocurrency in a new tax push: Here is why the country needs to build its capacity on cryptocurrency faster

In the new tax proposals for 2024/25, Tanzania has announced a 3 percent tax on digital assets transactions. The Finance Bill which is expected to be adopted by July 1, 2024, defines digital assets as anything of value that is intangible, including cryptocurrencies, token codes, and numbers held in digital form generated through cryptographic or other means.

This definition encompasses anything providing a digital representation of value exchanged with or without consideration that can be transferred, stored, or exchanged electronically.

The Act specifically targets non-resident individuals or entities that own platforms or facilitate the exchange or transfer of digital assets. This means from crypto exchange sites to brokers, the law will require these platform owners to register in Tanzania’s simplified tax system and withhold a tax rate of 3 percent when making payments to a resident as a result of transfer or exchange.

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CCM Zanzibar recommends extending the presidential term limit for Mwinyi to seven years

Members of the Secretariat of the Special Committee of the Chama cha Mapinduzi (CCM) Zanzibar have approved a proposal to advise the Special Committee to extend the term of President of Zanzibar, Dr. Hussein Mwinyi, to seven years instead of five for his first term.

Speaking on the matter, the Deputy Secretary General of CCM Zanzibar, Dr. Mohamed Dimwa, said that the decision was based on satisfaction with Mwinyi’s performance, having implemented the CCM Manifesto of 2020-2025 by more than 100% within three years.

“The members of the Secretariat have discussed and thoroughly evaluated President Mwinyi’s performance. We are convinced that there is no alternative to him and that he deserves to lead the country for seven years so that he can have ample time to make significant developmental changes in the economic and social sectors,” said Dr. Dimwa.

He added that CCM Zanzibar believes holding a General Election in 2025 would be a waste and misuse of taxpayers’ money, as the citizens need sustainable development.

The decision to amend term limits will need to go to a referendum.

Police and Government respond to Kariakoo strike saga

Following the online distribution of leaflets titled “Closing Our Businesses,” Dar es Salaam Regional Commissioner Albert Chalamila has responded, stating that strikes are not a solution.

“Matters concerning strikes by traders should not be taken collectively; everyone should reflect sufficiently before deciding to close their business,” Chalamila said regarding the strike planned for June 24, 2024.

He added, “I urge traders not to follow the trend. Anyone who may resort to bullying or not agreeing means that the government can also decide to do the same, which is not at all the philosophy of the President of Tanzania. We should all unite to build Dar es Salaam; strikes are not a solution, and we should not support them. The end of a strike could result in a small conflict that might affect even the innocent.”

There have been conflicting reports from the leaders of the Kariakoo traders. Kariakoo Traders’ Association Chairman Hamisi Livembe denied that the announcement came from the association and stated they have no information on who wrote the message.

“We truly do not know who wrote it, but we have learned that the government, through TCRA, is investigating its origin because it certainly did not come from among us,” he explained.

On the other hand, another Chairperson of the union of traders in Kariakoo, Martin Mbwana, said that the situation had been tense for days, leading them to seek intervention from the Minister of Finance and the Minister of Trade in Dodoma. He highlighted that the unrest originated from smaller groups and could escalate into a full strike.

The Tanzania Police Force stated that the leadership of the Kariakoo Market Traders’ Union clarified that the social media announcement about closing businesses from June 24, 2024, until traders’ challenges are resolved did not originate from them. Additionally, their national leadership has not confirmed the announcement.

Delivering a statement in Arusha, Deputy Commissioner of Police (DCP) David Misime assured traders and the general public that the Police Force would enhance security throughout the market areas. He emphasized that those who conspired, organized, and disseminated the strike announcement are being sought.

DCP Misime stated that although the origin of the announcement is unknown, it has escalated to violating national laws by threatening traders who disobey the directive, citing the part where it says where anyone would. He warned that anyone found responsible would face legal consequences.

The Police Force urged citizens to continue their activities as usual without fear and called on anyone facing challenges requiring resolution to follow proper channels to report them to the relevant authorities. They emphasized that breaking the law by issuing threats and forcing others to comply with directives they disagree with is unacceptable.

By the morning of June 24,2024, most of the shop have been closed and the strike was ongoing. This is not the first instance of a Kariakoo market strike. On May 15, 2023, a strike erupted among Kariakoo traders protesting issues they claimed were caused by the Tanzania Revenue Authority (TRA).

INEC explains reasons for postponing voter register updates

The Independent National Electoral Commission (INEC) has explained the reason for postponing the updates to the Permanent Voter Register until July 20 this year, citing the need to consider stakeholder feedback from meetings held in Dar es Salaam and Kigoma. Speaking to the press yesterday in Kigoma, INEC Chairman Judge Jacobs Mwambegele said the launch was initially scheduled for July 1 this year, but after the postponement, Prime Minister Kassim Majaliwa Majaliwa will inaugurate it.

“The Commission has considered the opinions and advice of stakeholders. Therefore, the exercise to update the Permanent Voter Register will commence from July 20 to July 26, 2024, instead of July 1 to July 7, 2024, in Kigoma region, and the launch will take place on July 20, 2024,” he said. He further explained that the commission held nine stakeholder meetings at the national level in Dar es Salaam between June 7 and June 15 this year, and that the stakeholder meeting at the regional level in Kigoma took place on June 19 this year.

He listed the stakeholders who met with the commission as including leaders of political parties, religious leaders, representatives of civil society organizations, media editors, journalists, information officers from regions and municipalities, representatives of various youth groups, people with disabilities, women, and traditional elders.

“Political parties provided feedback and advice requesting sufficient time to recruit registration agents so that these agents can fully participate in the exercise. Additionally, parties advised the commission to postpone the start of the improvement exercise to allow them to mobilize citizens and their supporters to participate in the exercise,” said Judge Mwambegele.

“Others include institutions and organizations that requested permission to conduct voter education during the improvement process. They mentioned that when the commission issues permission, it is usually close to the start of the improvement process. They advised the commission to consider granting permission for a longer period to allow them to secure funding from donors so that they can start providing this education when the exercise begins.”

Other stakeholders’ feedback that led the commission to reach the decision to postpone the start and launch date of the voter register improvement also included advice to give themselves enough time to provide voter education to stakeholders and citizens before starting the actual exercise. This way, many citizens would understand the relevant exercise, enabling them to turn out in large numbers when it begins.

Tanzania and Guinea Bissau sign MOU to cooperate economically

The Minister of Foreign Affairs and East African Cooperation of Tanzania, Hon. January Makamba (MP), and the Minister of Foreign Affairs of Guinea-Bissau, Hon. Caros Pinto Perreira, have signed a Memorandum of Understanding (MoU) to commence economic cooperation talks on behalf of their respective nations.

The MoU was signed on June 22, 2024, at the State House in Dar es Salaam, marking a significant achievement during the official visit of the President of Guinea Bissau, Hon. Umaro Embalo, who arrived in the country on June 22, 2024, for an official visit.

President Samia Suluhu Hassan stated that Tanzania and Guinea-Bissau have discussed cooperation in developing the blue economy and cashew farming, particularly in enhancing research and adding value to this crop, which is cultivated in both countries. Speaking to the press after welcoming the President of Guinea-Bissau to the State House in Dar es Salaam during his three-day visit, she said that the two nations will also collaborate in promoting free trade zones and investment.

Furthermore, she mentioned that Africa is rapidly working towards the establishment of the African Continental Free Trade Area (AfCFTA), with the goal of increasing trade between African countries. The establishment of this market is expected to stimulate industrial growth, add value to agricultural products, and create jobs for the youth.

Hon. President Umaro Embalo, who was officially welcomed at the State House on June 22, 2024, by his host, the President of the United Republic of Tanzania, Samia Suluhu Hassan, has several activities planned during his visit to the country. Among other things, he plans to visit various locations and different projects, including the Export Processing Zones Authority (EPZA), the Standard Gauge Railway (SGR), and the ALMA institution, where President Embalo serves as Chairman.

The sectors set to benefit from President Umaro Embalo’s visit include agriculture, especially in the enhancement of cashew farming and adding value to this crop, as Guinea-Bissau is also a significant producer of cashews.

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