Dar es Salaam. Good morning! The Chanzo is here with a rundown of major news stories reported in Tanzania on Wednesday, August 9, 2023.
Former CAG Assad weighs in on DP World deal: ‘Long overdue’
Former Controller and Auditor General (CAG) Mussa Assad has backed the intergovernmental agreement between Tanzania and Dubai that will see the latter’s logistics company DP World taking over some operations at the Dar es Salaam port.
Prof Assad, currently the Deputy Vice-Chancellor – Administration and Finance at the Muslim University of Morogoro (MUM), expressed his support for the controversial deal on August 8 during a Dira ya Uchumi programme broadcasted by the ruling Chama cha Mapinduzi-owned television station, Channel Ten.
During the programme, Prof Assad, who was unceremoniously and unconstitutionally removed from office in 2019 after serving since 2014, said Tanzania does not have the luxury to shirk foreign investments, saying the country lacks much of what it takes to build a prosperous economy.
Full story here.
Tanzania coal export continue to rise hitting a 297pc revenue increase
Tanzania’s coal export to neighboring countries and the rest of the world has continued to increase, the latest figure from the Bank of Tanzania shows coal export has soared to USD 229 million in the year ending to June 2022 compared to USD 57.6 million recorded in the year ending June 2022.
The increase in export revenue is because of the rising demand for alternative sources of energy caused by the geopolitical tension that ensued after the Russian invasion of Ukraine. Tanzania’s coal export destinations include African markets such as Kenya, DRC, Rwanda, Senegal and Uganda as well as other global players such as Poland, Hong Kong and India.
Key players in the Tanzania coal businesses include Tancoal Energy Limited which is a joint venture between the state-owned National Development Corporation of Tanzania and Australian-based Intra Energy Corporation, Edenville International, Ruvuma Coal mine, Market Insight Limited, and state-owned Kiwira coal mine and the ruling party (CCM) owned company Jitegemee Holding.
Abu Dhabi finances $30m project to enhance energy security in Kagera
The Abu Dhabi Fund for Development (ADFD), a foreign aid agency of the Abu Dhabi government, signed a loan agreement with the government worth US$30 million to enhance energy security in Tanzania.
A press statement said yesterday that the project’s objective is to fully connect the Kagera administrative region with the national electricity grid, reducing dependency on energy imports from Uganda and providing sustainable and safe electricity sources to communities, economic areas, and service facilities.
The agreement was signed by Mohamed Saif Al Suwaidi, ADFD Director-General, and Minister for Finance Mwigulu Nchemba, in the presence of Khalifa Abdullah Al Qubaisi, Deputy Director-General of ADFD, and other officials from both sides.
Al Suwaidi said that this strategic project was a significant step towards developing Tanzania’s energy sector and ensuring sufficient electricity supplies to meet the population’s needs sustainably.
“The Fund will collaborate with Tanzanian partners to support their development programs and work towards the United Arab Emirates’ future aspirations and the Fund’s strategic objectives of accelerating energy projects globally for the betterment of developing countries’ societies,” he said.
Dr Nchemba praised the longstanding relationship between the Abu Dhabi Fund for Development and Tanzania since 1977, which has played a vital role in implementing development projects and contributing to economic and social progress in the country.
He emphasised that the project’s financing will reduce energy import dependency, stimulate economic activities, develop existing industries, and create job opportunities for the population.
The Abu Dhabi Fund for Development has previously financed six development projects in Tanzania, including the Kidaho-Uvinza Road and the Kagera Sugar Project, contributing to the development process and improving the quality of life for Tanzanian communities.
Stakeholders ponder strategies to increase women’s participation in leadership
The government has been advised to come up with effective strategies that will help deal with violence and abuses against women, especially those involved in politics. Stakeholders believe that doing so will increase women’s participation in political leadership, especially at lower levels.
The call was made yesterday, August 9, 2023, at a meeting held in Dodoma organized by the Ministry of Community Development, Gender, Women, and Special Groups with the aim of bringing together various stakeholders to discuss important strategies to deal with the issue.
The participation of women in politics in Tanzania is reported to be low, especially at the local and ward levels. This situation is related, among other reasons, to an inequivalent ratio of participation between men and women at those levels.
Statistics show that at the hamlet level, there are 4,117 female leaders out of 58,441 leaders, equivalent to 7 percent. At the street level, women leaders are mentioned as 528 out of 4,117, equivalent to 12.6 percent.
Speaking at the session, Special Seat MP, Neema Lugangira related the situation to the lack of gender policies in political parties, “having gender policies in political parties is crucial, these policies set systems which provide a room for complaints in cases of abuses,” underscored Lugakingira.
On the other hand, the Resident Director of the National Democratic Institute (NDI), Sandy Quimbaya, said it’s important to research these issues so as to plan effectively, she highlighted that NDI is ready to undertake studies to assess the full scope of violence against women in politics.
Tanzania is expected to undertake its civic election in mid-2024, ahead of the general election which is expected by the end of 2025.
Peak Rare Earths inks Tanzania supply deal with China’s Shenghe
Australia’s Peak Rare Earths Ltd said on Wednesday it would supply all of the rare earths concentrate from its Ngualla project in Tanzania to the Singapore-based unit of China’s Shenghe Resources.
The company said in a statement that its agreement with Shenghe Singapore, which owns about 19.8 per cent of the Australian-listed rare earths firm, will be for an initial term of seven years.
The companies also signed a memorandum of understanding to negotiate a fixed price for the supply deal while working on a funding solution for the project, which according to a bankable feasibility study published last year, would cost $321 million to develop.
The Ngualla project is expected to begin construction by the end of May 2024, with completion eyed in early 2026.
“Peak and Shenghe have also agreed to co-operate around opportunities to optimise further the Ngualla project concerning capital expenditure, operating costs, and concentrate grade and recoveries,” Peak said in a statement.
The MoU has an option for Shenghe to buy a non-controlling stake in the project to reduce Peak’s funding requirements substantially.
“Shenghe regards the Ngualla project as the premier undeveloped rare earth project in the world,” said Huang Ping, deputy executive chairman of Shenghe Resources.
Shenghe, the largest importer of rare earths in China, told the Shanghai Stock Exchange it was committed to ensuring stable supply and that the agreement with Peak would positively accelerate the development of the Ngualla project.
Why Tanzanians should be against military coups
Military coups have been in the minds of many these past few weeks after West Africa experienced its third one in as many years. On July 26, 2023, the Presidential Guard in Niger launched a coup and detained President Mohamed Bazoum and his family.
Senior officers from various defence and security forces branches formed a junta named the National Council for the Safeguarding of the Homeland (CNSP). They announced the seizure of power on a televised broadcast.
While the coup has been condemned by governments in the United States, France, the European Union (EU), and ECOWAS, they have also seen support from military governments in Mali, Guinea, and Burkina Faso, as well as many people in Niger.
In fact, Mali and Burkina Faso have gone further by stating that any military intervention in Niger by ECOWAS and other foreign parties will also be considered a declaration of war against their own countries!
What is concerning, however, is seeing some Tanzanians, especially the youth, supporting military coups and regimes. Most of these people are driven by naivety and a hatred for the old colonial systems which still haunt former French colonies today.
Read the full analysis here to discover why cheering on military coups is concerning.
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