Africa's Infrastructure: A time for transformation

Africa Needs $93 Billion to Improve Infrastructure

A new report from the World Bank and African partners, Africa's Infrastructure: A Time for Transformation, highlights the findings of a 24-country study and urges increased investment in four critical areas: energy, transport, water, and information and communications technology.

For more on the report, visit http://go.worldbank.org/NGTDDHDDB0

Why Aid to Africa Must Increase

Given its massive development deficits and the effects of the global economic crisis, many observers, included me, are calling for increased aid to Africa. Most of these appeals are based on Africa’s need for more resources. But there is a different argument.

Aid to Africa is today as productive as it has ever been.

Craig Burnside and David Dollar identified a group of policies (including fiscal stability and low trade barriers) that strengthened the link between foreign aid and per capita income growth. These are the very policies that African governments have been improving over the past decade.

Even after the onset of the global economic crisis, and despite the fears that these

policies may be reversed, African governments have by and large been continuing to pursue prudent economic policies and, in some cases, even accelerating reforms.

In short, the policy environment to make aid productive in Africa has never been better.

To be sure, the Burnside-Dollar paper, like most seminal papers, has come under some criticism, mainly for its neglect of factors other than policy that make aid productive. One of those factors, championed by Hansen and Tarp, and elaborated on by Guillaumont and Chauvet, points out that, independently of the policy environment, aid is productive when countries have suffered a negative shock.

But this is what African countries have suffered in the recent past. So whether it’s because the policy environment has continued to improve, or because of adverse external shocks, there is a strong case that aid to Africa should increase because it is productive.

Submitted by Shanta on Thu, 2009-10-01 11:41

Swine flu outbreak dampens economy hopes, markets

LONDON (Reuters) - An outbreak of swine flu dampened tentative hopes for the global economy, sending markets lower on Monday and analysts fear a possible pandemic could force countries further into recession.

The virus, a new strain of swine flu, has killed 103 people in Mexico and spread to the United States. The World Health Organization said the outbreak was a "public health emergency of international concern" that could become a pandemic, or global outbreak of serious disease.

The World Bank estimated in 2008 that a flu pandemic could cost $3 trillion and result in a nearly 5 percent drop in world gross domestic product, damaging prospects of recovery in a world economy deep in financial crisis.

The SARS outbreak, which disrupted travel, trade and the workplace in 2003, cost the Asia Pacific region an estimated $40 billion. It lasted six months and killed 775 of the 8,000 people it infected in 25 countries.

"A nasty chill will run through the market with swine flu as people think back to the SARS virus," said Justin Urquhart Stewart, investment director at Seven Investment Management.

"The threat of the pandemic will add further weakness to global trade -- we saw with SARS tangible percentage points knocked off the index and that was in a buoyant time. Put that in a weaker time and it is likely to be more unpleasant."

European shares opened lower, with the FTSEurofirst 300 index down 1.11 percent at 0830 GMT. Airline stocks were hit by fears the outbreak would hurt travel but drugmakers were higher on vaccine hopes against the virus.

Japan's Nikkei average closed up just 0.2 percent on Monday, giving up earlier gains as the yen rose sharply and other Asian stocks fell on concerns over the flu outbreak.

Shares in Swiss drugmaker Roche Holding AG (ROG.VX) rose. The company said it was working on increasing production of Tamiflu, a drug shown to work against the new flu strain. But a company spokeswoman said the production lead time for the drug from synthesis of the product to packaging was eight months.

"We've always made it clear that this cannot happen overnight which is why it is so important that countries are prepared before the pandemic breaks out," she said.

'TRANSITORY'

Mexican Finance Minister Agustin Carstens tried to calm investors scared by the outbreak of flu, saying its impact on the economy will be "transitory.

The swine flu outbreak in Mexico came just when more world policymakers were proclaiming signs of a possible stabilization to the global economy.

"Six or eight weeks ago, there were no positive statistics to be found anywhere. The economy felt like it was falling vertically. Today, the picture is much more mixed. I think that sense of unremitting freefall that we had a month or two ago is not present today," Lawrence Summers , economic adviser to U.S. President Barack Obama, said on Sunday.

The delicate state of the global economy was underlined by the Japanese government which cut its economic forecasts on Monday, saying gross domestic product would shrink 3.3 percent over the next year, and a senior ruling party official said further stimulus would be needed.

The Bank of Japan is expected keep interest rates near zero when it meets on Thursday but cut its economic forecasts and maintain a cautious view on the global outlook. BOJ Governor Masaaki Sharakawa has signaled the BOJ's monthly policy review will predict a gradual recovery toward the end of this year or early in 2010.

In Europe, two European Central Bank Governing Council members suggested further reductions in the main refinancing rate.

Council member and Bundesbank President Axel Weber said cutting the rate to 1 percent from 1.25 percent was necessary as economic growth would continue to lag its potential for some time.

"I think 1 percent is a sensible lower limit, because you can't look just at the main refinancing rate. The deposit rate also plays a role," Weber told the Frankfurter Allgemeine Zeitung in an interview.

ECB Governing Council member Nout Wellink said the ECB should discuss lowering rates below 1 percent. Asked by Markets News International if the main refinancing rate should go below 1 percent, Wellink said: "This is part of a discussion we should have in the Governing Council. Of course that should be discussed.

Source(Reporting by Reuters correspondents worldwide; Writing by Guy Dresser; Editing by Sue Thomas)

Infolinks: Personal experience & Recommendation

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Transform economies to mitigate pain of global economic crisis - World Bank Vice President for Africa urges

Lusaka, April 4, 2009 — World Bank Vice President for Africa Obiageli Ezekwesili has challenged countries in Africa to use the global economic downturn as an opportunity to rapidly transform their economies through diversifying sources of growth, reforming policies, and strengthening governance.

Speaking at a national Indaba on the impact of the global economic crisis on Zambia, Ms. Ezekwesili said transforming economies requires political will at the highest levels, accountability for results by both leaders and citizens, and plans that are supported by the right policies.

“All too often I hear leaders tell me that their countries would develop faster if they had more resources. I believe that resources without the right policies will not work. If the policies are right, resources normally follow,” Ms. Ezekwesili said.

She said countries ought to reform to create an enabling environment for both local and foreign investors. “After this crisis ebbs, foreign investors will return but they will be cautious and invest first in those countries that have kept to the reforms they had initiated,” she said. Ms. Ezekwesili added that investors would also be interested in countries that have demonstrated a willingness to strengthen governance and embraced the rule of law.

Diversify sources of growth – agriculture and infrastructure key.

Ms. Ezekwesili noted that much as the global crisis did not originate from Africa, it has not left the continent unscathed. She said Africa has suffered the impact of the global crisis through different ways that include reduced investment and a rapid decline in commodity prices. It has been even tougher for countries that depend on one commodity. So, she said, African countries need to cushion themselves from future economic shocks by diversifying their economies. Basing her proposal on Zambia’s dependence on copper, and the country’s boom and bust experiences with the metal, Oby said diversifying sources of growth is a more certain way to sustainable development.

“Imagine a Zambia without copper?” she challenged.

She cited agriculture as an important source of growth that Zambia, just like many other countries, ought to refocus on to diversify economies. Growth originating from agriculture is four times more effective in raising incomes of the poor than growth from outside agriculture, according to the World Bank’s 2008 World Development Report. For example, even though copper has been a backbone of Zambia’s economy, it does not appear to have improved lives of the rural poor.

During the past five years, the rate of growth of agriculture in Zambia was less than one percent per year, despite large expenditure increases in a fertilizer support program. The World Bank Vice President noted that for agriculture to grow, much more is needed than fertilizer.

“Agriculture development is not just about agriculture – it must also be about roads, especially feeder roads that allow the rural farmer to access markets in Lusaka; about the farmer using mobile telephony to access market information that will ensure that she gets the best value for her products,” she said.

“It is also about access to energy if Zambia is to see an emergence of agribusiness; and it has also got to be about policies in the petroleum sector to help reduce the very high prices of fuel that have such a strong effect on transport costs,” she added.

To succeed in its diversification, Ms. Ezekwesili added that Zambia must also invest in its human capital.

Learning from Mauritius

Ms. Ezekwesili’s call on right policies and diversification were echoed by a representative of Mauritius at the Indaba who said timely policy changes and transparency in reforms were key to his country’s economic success. Mr. Dev Chamroo, Director of Policy and Planning at the Board of Investment of Mauritius said policies to consolidate and diversify from sugar business saw sugarcane’s contribution to GDP decline from 98 percent of GDP in 1998 to 3% in 2008. Mauritius has expanded growth drivers from sugar to ICT, tourism, and textiles, and amended legislation and policies to make doing business easier. The World Bank’s 2009 Doing Business 2009 Report ranks Mauritius as the top reformer in Africa.

Zambia determined

Dubbed the G500 after the number of delegates at the Indaba, the Zambian conference is the first of its kind in Africa to discuss the impact of the global economic downturn at national level. The Indaba was attended by Zambian President Rupiah Banda and the country’s two former presidents Kenneth Kaunda and Frederick Chiluba, and a cross section of Zambian stakeholders and foreign delegates.

President Banda outlined how the crisis has affected growth prospects in his country. The major impact point has been the mining sector where he said jobs have been lost resulting in income loss in households and rapid decline of the quality of life. He said Government’s ability to mobilize revenue has been affected, and the reduced foreign exchange was affecting procurement of fertiliser for agriculture. He however said Zambia was determined to use its collective wisdom and experiences from other countries to face the challenge and diversify the economy as a safety measure for the future.

###

Contact:
In Lusaka: Jumbe Jeremiah Ngoma
+260 21 125 2811
jngoma@worldbank.org

IMF crafts softer terms to help Africa...

IMF chief Dominique Strauss-Kahn admitted that the Fund's policy advice had not always been right, and promised more streamlined lending practices as economic crisis forces more countries to seek help.

Addressing students at the University of Dar es Salaam, the International Monetary Fund`s managing director said sub-Saharan Africa would be more affected by the slowdown in world growth than by the systematic banking crisis hurting advanced economies.

He said African exports would suffer from falling global demand, lower prices for oil and commodities, and a fall in the supply of international financing.

The prospect that some African countries may have to go to the IMF for increased or new aid has unnerved many in the region who, rightly or wrongly, say the fiscal and structural medicine that it prescribed did their economies more harm than good.

Strauss-Kahn said the IMF was moving fast to increase financial support to affected countries, step up technical assistance, and streamline its lending conditions.

``It is true to say that, until recently, the idea of the IMF was: `When countries ask for resources we should also fix all of the problems in the country,`` he said.

``What I am trying to change now is to focus on the problem the country is facing that day, and not all of the problems in the history of the country.``

If a country faces fiscal imbalances, IMF conditions should not also emphasise the need for land reform, he said.

An IMF conference starting on Tuesday in the Tanzanian capital under the banner ``Changes`` seeks to reassure policymakers that the Fund wants to help preserve the economic and social gains of the last 10 years.

``I want to have a kind of a partnership with African countries which is ... different from what we had in the past,`` Strauss-Kahn said. ``It will be such a pity to see all of this destroyed by the crisis.``

An IMF report last week estimated that 22 developing countries would need at least $25 billion in extra financing this year, and possibly as much as $140 billion if the crisis intensifies.

And on Sunday, the World Bank said all the world's developing countries would need between $270 billion and $700 billion to deal with the effects of the global economic crisis.

An IMF report to be released on Monday focuses on Africa, warning that risks from the crisis are increasing and will get worse the longer the crisis lasts.

``Risks to the outlook are serious and mostly on the downside,`` the report says. ``The effects may be more pronounced this time because the tightening of global credit compounds the impact of the slowdown, exacerbating risks for trade finance and other capital flows.``

The IMF says policymakers ``must walk a tightrope between not aggravating the shock in aggregate demand on the one hand, while protecting hard won gains in economic fundamentals on the other``.

``Any policy response must also take into account the impact on the poor and seek to incorporate social safety nets,`` it says, adding that countries with low debt levels and no financing constraints may have some scope for fiscal easing.

``But it is also clear that countries will depend critically on donors honouring their commitments to aid and even increasing aid, despite new competing demands on their own budgets,`` it adds.

Strauss-Kahn said he was concerned that increased aid flows from big donors such as the United States and Europe will become difficult, if not impossible, despite commitments at a summit in 2005 to double aid to Africa by 2010.

Asked why the IMF did not warn rich countries about problems in their economies, Strauss-Kahn acknowledged that its advice tended to be ignored by advanced economies.

``The problem with early warnings is that you don't need only to warn early but you also need to be listened to,`` he said.

The IMF chief had earlier expressed optimism that Tanzania`s strong fiscal policy background would help it weather the heavy storms of the global economic crisis wreaking havoc in Europe and America.

He said the fact that Tanzania followed advice from his institution over the last decade, helped it build strong fiscal policies.

``Tanzania has good fiscal monetary policy which has been sustained for the last decade and can now be used to support economic growth`` he said.

The IMF boss is in the country on the Invitation of President Jakaya Kikwete, who today, is scheduled to chair a two-day meeting to discuss how African countries could sustain their economic gains amid the global financial crisis.

Among other high-profile personalities at the meeting will be the UN deputy secretary general Dr Asha-Rose Migiro, former UN secretary-general Kofi Anan and world acclaimed entrepreneur Mo Ibrahim.

2009-03-10 11:28:55
By Guardian Reporter

Tanzania and China sign four economic agreements

2009-02-15 12:13:12
By Joyce Kisaka

Chinese President Hu Jintao arrived in Dar es Salaam last night, for a four-day official visit, leading a 140-strong delegation.

The Minister for Foreign Affairs and International Co-operation, Bernard Membe, told journalists in the city yesterday that the visit is aimed at consolidating relations between two countries, which date back to 1961, when Tanzania attained independence.

He said the visiting Chinese leader and his host, President Jakaya Kikwete, are scheduled to sign four economic agreements today, and also officiate at the inauguration of the new stadium built partly through Chinese government assistance.

Elaborating on the agreements, Minister Member cited areas to be covered as bilateral relations on economic issues between the two governments; bilateral relations on economic issues between the Chinese government and the Zanzibar government; initiation of a Youth Volunteer Programme between Tanzania and China; and bilateral relations between China`s Exim Bank and the Tanzania government.

The focus of the bank will be to provide credit for various local projects. The Minister said the Tanzania-Zambia Railway line (Tazara) will be one of the subjects of discussion between the two sides, partly as a follow-up to a pledge for assistance to the firm, made during President Kikwete`s visit to China last year.

Membe said Tanzania has 400 opportunities for exporting its products to China.

He explained that Tanzanian exports to China represent only 35 percent whereas it is 95 percent the other way round.

The Minister said later today, President Hu will meet Zanzibar President Amani Abeid Karume and tour the China cemetery at Majohe Gongolamboto. In the evening, he will attend a banquet hosted by President Kikwete in Dar es Salaam.

Tomorrow`s itinerary for the guest will include delivery of a speech on China`s co-operation with Africa, at the Diamond Jubilee Hall.

Football business: China president to launch new stadium Feb 15 in Dar es Salaam

THE new state-of-the-art stadium in Dar es Salaam is expected to be officially launched on February 15, the 'Daily News' has learnt. Impeccable sources say that Chinese President Hu Jintao is expected to grace the opening of the imposing facility during his forthcoming visit to Tanzania. A source told the 'Daily News' that organizers have planned colourful celebrations for the opening ceremony.

“The new facility would undoubtedly be a catalyst for sports renewal in the country, particularly in soccer and athletics. Not only will we have an all-purpose stadium, but there will also be additional economic benefits for the country,” he said, adding: “We are delighted that the Chinese leader will be here to join us in the celebrations,” said the source.

When reached for comments the Director of Sports in the Ministry of Information, Culture and Sports Leonard Thadeo could not confirm or deny the report. He said the Minister responsible for Sports was in better position to confirm the report.

Many sports enthusiasts believe that the completion of the ultra-modern 60,000-capacity sports stadium in the city, part of a new national sports complex, is expected to usher in an exciting and successful new era of sports tourism in Tanzania. The $56 million stadium (about 60bn/-) was funded largely by the government of China.

Beijing Construction and Engineering Group Company Limited are the main contractors of the facility. According to the stadium’s engineering consultant, Aloyce Mushi, the Chinese contractors are expected to finalise the cushioning of the running track on Tuesday. Mushi said the International Association of Athletics Federations (IAAF) envoy John Velzian, who is based in Nairobi, is expected to inspect the tartan that has been laid on the running track.

He will also cross check measurements for final certification. Velzian was in the country recently to inspect the tartan. He endorsed the material and the laying design, saying that the material conforms to IAAF specifications. “Certainly, everything will be fine because we have used ‘Electronic Distance Measure’ (EDM) device to take measurements. IAAF requires exact measurements be observed…if it is 100 metres, let it be that.

No room for approximation,” he said. Mushi further said that various athletics equipments that would be in use at the venue have arrived and would be on display during the official opening ceremony. “Equipments for field events such as javelin, hammer, shot put, high jump and long jump will all be on display,” said Mushi.

IAAF had refused to approve earlier material that was laid at the stadium, saying it was not of the required standard. This compelled the contractors to seek for the new approved material from China. However, the tartan delayed to arrive for almost one year, which led to an unanticipated delay in finishing the stadium.

China president visit Africa and Saudi Arabia

Chinese President Hu Jintao launches a whistlestop tour of Saudi Arabia and Africa Tuesday in a trip expected to focus more on shoring up political ties and less on securing energy supplies.

Hu's one-week trip takes him to Saudi Arabia, China's biggest source of oil imports, but the four countries that he will then visit in Africa -- Mali, Senegal, Tanzania and Mauritius.

"The top Chinese leadership has spent a lot of time visiting oil-rich countries in the past," said Barry Sautman, a China expert at the Hong Kong University of Science and Technology.

"But it also has a deliberate policy of trying to send its leaders everywhere (in Africa), because the political influence of all African countries is important to support China in international forums."

China has in recent years worked hard to cultivate closer partnerships with Africa -- a move that has caused concern in the West as Chinese influence on the continent has grown.

Much of the world's attention has focused on China's drive to secure natural resources from African states -- including those spurned by the West such as Sudan -- to meet its huge energy demands.

But assistant Chinese foreign minister Zhai Jun insisted that Hu's visit to Africa -- his fourth since he came to power in 2003 -- and China's interest in the continent, was not dominated by oil or natural resources.

"We have a very good and profound traditional friendship with African countries and our cooperation is not limited to energy or resources cooperation," he told reporters on Friday.

Zhai said Hu would announce fresh assistance to African states during his trip, and pledged that Beijing would meet its target of doubling aid to the continent in the three years to 2009.

China has never publicised exactly how much assistance this entails.

Some in the West have criticised China's "no-strings-attached" attitude towards aid, accusing the Asian giant of plundering Africa's resources with no regard for political, environmental or social consequences.

Adama Gaye, an associate researcher at John Hopkins University in the United States and author of a book on Sino-African relations, said China's approach could backfire if it didn't address some of these concerns.

"It must avoid appearing to be allied with the continent's retrograde forces, as (Africa's) civil society is looking for more transparency in its relations and the end of purely government-centered relations," he said.

Zhai defended China's role in Africa.

"Cooperation is based on mutual benefit, it serves the interests of both China and people in Africa who have benefited greatly from the cooperation," he said.

China's trade with Africa increased to 106.8 billion dollars last year from just under 40 billion dollars in 2005, according to the Chinese commerce ministry.

The World Bank has also spoken out in support of China, saying its increased presence in Africa had led to a massive infrastructure revolution there that was vital to reducing poverty.

Sautman said Hu's visit was also aimed at quelling rumours that China was going to retreat from Africa due to the global economic crisis.

"Some people actually say this provides an opportunity for China to further displace Western influence on Africa," he said.

The trip was also a "nudge and wink" to the four remaining African states -- Burkina Faso, Gambia, Swaziland and Sao Tome and Principe -- that recognised China's rival Taiwan, where the Nationalists fled after losing a civil war in 1949, Gaye said.

For Saudi Arabia, trade between the two has also increased substantially over the past few years, totalling 36 billion dollars for the first 10 months of 2008, compared with 16 billion dollars in 2005, official figures show.

Zhai said Friday that some energy documents with the Saudi Arabia could be signed if "negotiations went well."

Dar es Salaam set for major IMF conference

IMF Managing Director Dominque Strauss-Kahn discusses on the upcoming conference with a group of African ambassadors and diplomatic representatives at IMF Headquarters in Washington,last week. The conference,to be held on March 10 and 11, in Dar es Salaam,will focus on the continent's recent economic successes and on the impact of the financial crisis on Africa.(By courtesy of IMF)

STAFF WRITER, 6th February 2009 @ 02:31

TANZANIA will next month host a high-level conference scheduled to discuss the impact of the global financial crisis on the African continent. The conference being jointly organised by the International Monetary Fund (IMF) and the government of Tanzania, would be held in Dar es Salaam from March 10-11.

IMF Managing Director Dominique Strauss-Kahn said over the weekend that the theme of the conference is: "Changes: Successful Partnerships For Africa's Growth Challenge." He said the objective of the conference is to discuss the impact of the financial crisis on Africa and, at the same time, learn from the continent's successful economic experiences in recent years, especially in terms of macroeconomic stability and growth.

"The focus of the current financial crisis has been on the advanced and emerging economies, but the impact on Sub-Saharan Africa will be equally severe. "The crisis will affect African countries, but the region is in much better shape to weather the crisis than in the past, thanks to several years of responsible economic management," the IMF chief was quoted as saying in a statement made available to 'Business Standard'.

The conference is expected to attract finance ministers and central bank governors from all over Africa, prominent academics, the private sector and civil society. President Jakaya Kikwete and Mr Strauss-Kahn, would be among the key speakers at the conference, where strategies to strengthen the partnership between Africa and the IMF, are to be discussed.

"It will be an opportunity to assess what we have learned from past successes as well as what needs to be changed while going forward," Mr Strauss-Kahn said. In its World Economic Outlook (WEO) report released on Wednesday, IMF said growth in the world economy will fall to its lowest annual rate since World War II in 2009.

It said overall global growth will fall to 0.5 per cent this year with the world's most advanced economies -- in North America, Europe, and East Asia -- leading the plunge. The Fund said world economic growth should bounce back to three per cent in 2010, but warned that the possibility of a more severe decline of greater duration cannot be dismissed, according to the IMF's WEO for 2009.

"The uncertainty surrounding the outlook is unusually large," the report asserted. "Downside risks continue to dominate, as the scale and scope of the current financial crisis have taken the global economy into uncharted waters." One measure of that uncertainty was the steep downward projections of the new estimate itself, compared to the previous WEO issued by the IMF nearly two months after the collapse of the investment firm, Lehman Brothers, which sharply accelerated the crisis.

Average growth rates for all advanced economies will fall well into negative territory at minus two per cent on average, according to the WEO. Worst hit will be the newly industrialised Asian economies -- South Korea, Singapore, Hong Kong, and Taiwan -- whose combined growth rate will fall to minus 3.9 per cent, but Britain and Japan, at minus 2.8 per cent and minus 2.6 per cent, respectively, will not be far behind.

As for the United States, where most of the so-called "toxic" assets responsible for the ongoing financial crisis originated, the IMF predicted a negative 1.6 per cent growth rate this year before a revival to plus 1.6 per cent in 2010. Developing countries will also suffer due to the contraction of credit and demand brought on by the crisis, although their growth rates overall should remain in positive territory.

Sub-Saharan Africa should grow at a 3.5 rate this year, down from 5.4 per cent in 2008, while Latin America's growth in 2009 will be substantially more anemic, at just 1.1 per cent, down from 4.6 per cent last year. The latest report comes as governments around the world are trying to stimulate their economies in ways that will overcome the credit crunch resulting from the insolvency of banks or their reluctance to lend money at such an uncertain time.

According to a second report released by the IMF, global bank losses from toxic US assets may reach 2.2 trillion dollars, up from a 1.4 trillion-dollar estimate issued just three months ago. US President Barack Obama has spent much of his first week in office lobbying Congress for an 825-illion-dollar economic stimulus package that he hopes will restore the flow of credit and pull the economy out of what many have called the worst financial crisis since the Great Depression.

Some experts, however, say it is unlikely to be sufficient given the depth of the crisis and the rapid growth in unemployment, which could go as high as 10 per cent by next year, according to recent estimates.

The IMF, which is itself trying to carve out a bigger role as a source of quick lending to countries affected by the crisis, stressed in its report that efforts to date have only addressed the immediate threats to the financial system and "done little to resolve the uncertainty about the long-term solvency of financial institutions." It called for countries to set up public agencies to dispose of bad debts held by financial institutions in a definitive manner.

Tulawaka mine achieves record output

STAFF WRITER, 6th February 2009 @ 02:58
THE Tulawaka Gold Mine in Kagera Region produced a record 211,373 ounces of gold for the year ended December 31, 2008, which reflects an 18 per cent rise over 2007 output."This increase is particularly noteworthy given that it occurred during a year, in which the mine was transformed from an open pit to underground operations, a change usually associated with a decrease in production" said Paul Girard, Chairman and CEO of MDN in a statement.

He said for the year 2008, the mill processed 381,789 tonnes of ore at an average grade of 18 g/t gold and at a recovery rate of 95.5 per cent.Total cash costs for the year averaged 212 US dollars to produce an ounce of gold, compared with 271 US dollars in 2007. The Tulawaka gold production now totals 654,367 ounces since the beginning of operations in March 2005.

For the year 2008, a total of 212,913 ounces of gold have been sold, entirely in the spot market, at an average price of 880 US dolars per ounce compared to an average price of 709 per ounce in 2007, for total sales of 187.4 million US dollars.

Since the beginning of operations in March 2005, a total of 646,078 ounces of gold have been sold. For the fourth quarter 2008, which represents the first quarter of full production from the underground mine, Tulawaka produced 28,565 ounces of gold.

The mill processed 102,428 tonnes of ore at an average grade of 9.3 g/t gold and at a gold recovery rate of 93.3 per cent. Total cash costs averaged US$323 to produce an ounce of gold.For this first quarter of full underground production, operations and mining of the underground gold deposits were limited by the construction of the new underground access ramp.

During the fourth quarter, 30,153 ounces of gold were sold into the spot market at an average price of US$803 for total sales of US$24.2 million.The Tulawaka project is a joint-venture between MDN (30%) and Pangea Goldfields Inc. (70 per cent), a wholly owned indirect subsidiary of Barrick Gold Corporation and project operator through its Tanzanian subsidiary Pangea Minerals Ltd.

The information disclosed on the Tulawaka Gold Mine is based on information provided by the Operator.MDN Inc. is a Montreal-based Canadian exploration company that holds a 30 stake in the Tulawaka Gold Mine (Tanzania). Its main exploration activities are carried out in Quebec through gold and base metal interests and in Tanzania through a majority interest in 35 adjacent mineral licenses.

Customers up in arms after GTV closure

Tuesday, February 3, 2009

The Tanzania Communications Regulatory Authority (TCRA) has given GTV Tanzania up to 10.00 am today to explain how it is going to compensate its customers following the company’s liquidation. Reports in international media over the weekend had it that Gateway Television (GTV) of UK has closed down after going bust.

The abrupt termination of GTV leaves behind millions of angry subscribers and jobless people across 22 African countries, including Tanzania. TCRA directive has come at a time when a law firm, FB Attorneys, representing dozens of its customers, gave the GTV Tanzania limited 24 hours (from yesterday ) to pay 134m/- or face legal consequences.

Public Relations Manager of TCRA Innocent Mungy, said that the authority had summoned the company and given them the directive. “One of our responsibilities is to protect the rights of the consumers. We therefore summoned the company officials and demanded explanations from them on how are they going to compensate the consumers.

“We want the explanations by 10.00 am tomorrow (today),” Mr Mungy told the 'Daily News' over the phone yesterday. According to him, the officials of the company told TCRA that they were holding meetings to discuss the matter. GTV Tanzania is owned by Tanzanians (51 per cent) and GTV Holding Ltd from Mauritius (49 per cent).

Mr Mungy said that they had directed GTV to publish a statement to show how they would treat their customers and submit to TCRA the number of customers they had and how they would settle their claims. In another development, in a strongly worded demand notice, Advocates Fayaz Bhojani and Gaudiosus Ishengoma, made it very clear that if GTV does not respond within the said time, the matter would be taken to court for legal adjudications.

The advocates stated in the letter yesterday that GTV have been paid in advance 134m/- and despite repeated requests and follow-ups for refund of the liability, it failed, ignored or neglected to settle the liability. “Now upon the instruction of our said clients, we FB Attorneys for and on behalf of our clients, hereby demand from you payment of 134m/- together with accrued interest thereon, in accordance with commercial practices and recovery costs incurred by our client within 24 hours of the date of this letter,” the advocates said.

USD 1.5bn to cushion Africa`s banks - AfDB

2009-02-04 11:04:16
By Joyce Kisaka, Addis Ababa

The African Development Bank (AfDB) has set up a USD 1.5billion Emergency Facility to meet urgent liquidity needs of various sectors and institutions, which the global financial crunch will hit.

AfDB President Dr Donald Kaberuka told journalists here after giving a statement at the Assembly of the African Union on the Economic Impact of the Global Financial Crisis that, as a bank, they have taken several initiatives to rescue the continent`s financial sector in case of liquidity problems.

He said the Fund would be available to African banks facing liquidity problems.

Regarding the procedure to follow when applying for support, the AfDB boss said, the particular financial institution will be required to request from the bank specifically for ``rescue money.``

Kaberuka said the AfDB has also set aside a USD 1 billion trade financing facility, aimed at ensuring there is no disruption of operations of the sector taking into account that the global credit crunch has crippled the ability and appetite of international banks to finance trade in Africa and elsewhere in the world.

He said the bank has the capacity to scale up its activities because it has emerged from the on-going crisis as a strong institution, adding that over the next few months the bank will examine ways to stimulate global growth, get credit moving and ensure transparency.

``Its now widely accepted that in this process Africa must be a full partner to ensure that the debate is extended to those issues on which our countries have a stake,`` said Kaberuka.

He said African countries have done all the right things for two decades to reform their economies and that efforts were being made to overcome emerging challenges brought by globalization and international economic integration.

On growth of African economies in general, he said, the bank`s assessment is that in 2009 African economies as a whole will grow at about 4 per cent, with Sub Sahara Africa growing at around 1 per cent.

Are we ready to face the coming economic CHANGE, and how?

It is no longer a question of when, but question of how deep the current global economic meltdown will entrench itself. The meltdown is rooting itself deeper on the global economies, and the impact is unequivocally spreading amongst the economically elite, while hitting harder amongst the economically disadvantaged.

Not an American or the Western mantra anymore, it is global. Central Banks across all continents have pumped enormous amounts of money to stimulate their economies in vain; there is a slow growth across the board, and there is little a common man can do to avert or reverse the trend, except being able to adjust to this inevitable and unwanted change. Economic CHANGE, that is.

Multinationals are laying-off massively, across all sectors. Announcement of retrenchments have become a routine, as companies are no longer able to maintain expensive payrolls, which have in turn affected consumer spending (consumption) and battered economies around the globe. Basically, people are holding tight their savings to counter any eventualities, if at all they have anything to hold on to.

Healthcare sector which is normally resilient to most recessions has finally been infected by this economic virus. Merck, a global pharmaceuticals giant for example, is laying-off 15% of her workforce in order to adapt to the economic CHANGE -consumer reduction of non- essential spending must bear the blame- and this could just be the beginning of a long trend in the sector, caused by the shaken labor market which is tightening even more.

Around the month of October, 2008 a client and a friend, who ran a two generation family business he inherited 25 years ago from his father, had to shut the company doors, and letting go of his 56 loyal employees. 35million dollars, of the company that was invested through a hedge fund firm melted away.

The man could not live to reconcile with a reality of orchestrating the demise of once, a healthy and prosperous company. He shouldered the responsibilities and regarded himself as a traitor to his predecessors who handed him a growing company, and to his children who were the future heirs to the multimillion dollar company. He decided to take his own life this past weekend, becoming one of the casualties of the current economic crisis.

Recently, a Tanzanian living in West Virginia, wrote me a very convincing letter, in which he claimed to have known me and my family back in Tanzania, and was requesting a small help of $300 he needed –his two month portion- to pitch into the monthly pool of $750 shared amongst five roommates. I made an effort and visited him; and his story could not be more painful.

His family in Tanzania including his mother who is ailing from diabetes, kissed goodbye the monthly allowance of $500 he has been sending for the past 4 years, 3 months ago. The Youngman is now worried not only for his mother who may die at any time, but also for his own future.

With his four other roommates hailing from West African nation of Gambia, they are bonded and supporting each other under the umbrella of African brotherhood, in the middle of racially sensitive town of Kay moor. These five African immigrants share something in common; they are all jobless, and none has a prospect of securing a job any time soon, despite the fact that, they are able, and ready to do any kind of work.

They were laid-off 5 months ago, from a coal plant where they met and worked. They have now depleted their savings, and neither one is in position to send money back to Tanzania or Gambia. All they are doing at this point is finding how to survive, and adapting to the new CHANGE of economic hardship.

Similar stories are everywhere. In Mumbai India, once lucrative American service centers that employed hundreds of thousands are closing. In New-York, and elsewhere within the US, joblessness, and homelessness among undocumented immigrants and Americans is Intimidating; some of the once highly paid professionals in different sectors are also in the jobless pack.

In Japan, the so called economic elites are struggling to pay their bills, in South Africa, the poor are sinking deeper into economic quandary, even in Dar es Salaam, I believe millions are experiencing the pain, and things are not getting any better.

There is no need to panic; things are going to turn around in not too distant future, but in the meantime, we need to make adjustments necessary to cope with this inevitable and unprecedented economic CHANGE.

Tanzanians in Diaspora remits millions of dollars a year back home to support their families, and at this time when some of their Western employers are worried about themselves too, cloud of uncertainty hangs over their employment future. As such, need to prepare psychologically for the inevitable is a matter of urgency.

Negative effects of either reduction or a complete halt to the remittance, may have some undesirable consequences to the people of Tanzania and the economy as a whole. In reality, I tend to see a dwindling and perhaps economic hardship of different proportion both to our fellow citizens abroad and those at home. Lifestyles across all social divides are going to be affected, because we all depend on each other for one reason or another.

I am therefore, counseling my people to adjust to the impending economic CHANGE by re-aligning their spending habits. Unnecessary spending must be avoided. Extreme extravagancy and flashy lifestyles must be controlled or put be put on hold for the time being. Nonetheless, we must not stop from going about our daily business while holding tight whatever little we may have. This should be the time for our national motto of brotherhood to shine by holding each other wherever we are, especially the economically vulnerable.

Although the current hardship bear hallmarks of a 1930 great depression, it will be far fetched to describe the current economic debacle as a depression, because there are some elements missing to call it a full blown depression. However, should the matter continue in the same pace, we will soon enter into a depression, whose effects will be tragic and devastating.

The 1930’s, great depression shook both rich and poor, it wiped savings, trimmed earning power of millions, and shut down well established businesses. Government agencies across the world suffered acute revenue shortages. The depression brought about horror and hopelessness amongst millions of pensioners in different nations, while thousands committed suicide because they could not bear the brunt, and never prepared themselves psychologically to deal with the harsh economic CHANGE.

Naturally, change is received with mixed feelings; in normal circumstances, some will resist it, while some will embrace it, depending on whose interest is at stake. But in extreme “situations” such as now, everybody willingly or unwillingly, MUST accept it. No one can resist it.

While I remain optimistic on the economic recovery, I am at the same time, cautioning those who believe that Tanzania is immune to these challenges to think twice; it is a matter of time before every single person directly or indirectly, feels the pain of the economic dilemma we are in. We must also be mindful of the fact that, whatever affects one directly, for some reasons, affects all of us indirectly, especially economically.

Even though I categorically acknowledge, and respect the existence of legitimate, ideological and philosophical differences, I am rather, urging prudence and rational reasoning from all us while debating this issue based on its substance and national importance, as opposed to personal differences that may exist.


Mungu Ibariki Tanzania
By John Mashaka
Mashaka.john@yahoo.com

US Pres. Barack Obama letter to East African Presidents: Accountablity brings development

Dear Sirs,
Thank you for your support during my campaign and the kind words of encouragement and counsel in the last few weeks.

Kenya is the home of my father and I am not averse to being called a Kenyan- American and by extension an East African-American, it is with this background that I write to you gentlemen.

Gentlemen, we stand on the cusp of history.

Our region is a much more peaceful place than it was 20, 10 or even five years ago, but unrepaired hearts continue to simmer under the surface.
This has allowed the region to begin to harness the minds of its sons and daughters to drive progress and yet poverty continues to dog our every step. We are only just beginning to appreciate the true potential under our soils but our efforts to exploit these may be scuttled by greedy bureaucrats and corrupt businessmen.

Gentlemen, we need to reassess our ambitions and reposition our legacy.
I write to you in salute of your efforts at East African Cooperation and also to lend my hand in furthering this cause that will bring us together as brothers and do away with the artificial boundaries that have no basis in culture or logic.

Beyond sentimentality, the reestablishment of the East African Community is our best hope of maintaining our relevance in a world that is moving and changing fast, leaving the weak nations behind and enriching the people of organised, determined and focused nations.

We need to inject a sense of urgency into forging our people together as one common market with no barriers to the movement of labour, capital or ownership of property and land.

I have at least four years, at most eight, in office, I have inherited an economy on its knees and a country groping to regain its preeminence in world affairs, but even with these limitations America can still do good for East Africa.

American capital can help extend your infrastructure – road, railway, power and communication networks, the key ingredients necessary to meld a people into one, to set the engines of commerce in motion and bring wealth and prosperity to our people.

American science and technology can help in boosting your agriculture, improving the health of our people and widening the scope of your education system, because after all what is a nation without its people.

Given an unfettered market the size of which you aspire to, American entrepreneurship can fire up your manufacturing sector and power up your service industries creating hundreds, thousands even hundreds of thousands of jobs for our people.

Gentlemen the lifting up of our people out of the desperation of poverty and ignorance should be our ultimate goal. That is what will ensure that our legacy will endure beyond our children and our children’s children.

But gentlemen this dream can only come about through clean and accountable government.

Without clean governments the costs of doing business will rise and make East Africa unattractive for commerce and trade.

Whereas America, through its various agencies may send money to your countries, it is harnessing the power of corporate America that will have a more lasting and sustainable impact on our people.

The curve of history has not been kind to our region. We have suffered brutal dictators, kleptocratic despots and genocidal generals but we are still here.
That should count for something.

Gentlemen it is your duty, in fact your obligation to turn things around to clean your houses of corruption, nurture and oversee efficient governments that can deliver the services that will see our people to the promised land.

America and I, can help you in this historic mission but I need you to help me to hel you.

God Bless America. God Bless East Africa.

Barack Obama
President of the United States of America
CC President Mwai Kibaki
CCPresident Yoweri Kaguta Museveni
CC President Jakaya Kikwete
CC President Paul Kagame

We will not refund radar cash, says UK

y Christopher Kidanka

The United Kingdom will not compensate Tanzania for the loss incurred in the controversial 28 million sterling pounds (about Sh50 billion) radar purchase deal, its High Commissioner said yesterday.

Speaking in an exclusive interview with The Citizen in Dar es Salaam, the outgoing UK High Commissioner to Tanzania, Mr Phillip Parham, said though his country was aware that the price of the radar had been inflated, it would not entertain Tanzania�s plea for compensation.

Mr Parham, who is leaving next week after serving in Tanzania for three years, said the extra money was paid out as commission and bribes to the officers who were involved in the deal and "they are the ones who should repay the money."

He added: "Britain's Serious Fraud Office (SFO) is investigating the matter and the PCCB (Prevention and Combating of Corruption Bureau) is doing the same in Tanzania, but the two are cooperating. If it is proved that these people were paid the money, they are the ones who should pay it back and not the UK Government."

The envoy's revelation is a blow to the hopes of Tanzanians, including President Jakaya Kikwete, who had indicated that the Government would press for the return to the money paid out in the inflated commission.

Speaking in early 2007, President Kikwete said his Government was following with keen interest the investigations into the fraudulent radar purchase deal and would ask the UK to refund an equivalent of Sh15 billion.

"We are especially interested in two areas. One, we would like to know who was involved in the shady deal. But once this is confirmed we will lodge a formal request for compensation," the President said in response to questions at a meeting he held with senior newspaper editors at State House, Dar es Salaam.

A number of officials, including former Infrastructure minister Andrew Chenge, are being investigated for their alleged roles in the dubious deal.

Mr Chenge resigned following media reports that he was being investigated over the corrupt radar deal. In his spirited defence of himself, he caused a stir and became a talking point countrywide when he referred to $1 million reportedly found in his offshore account as "vijisenti" (pocket change).

The SFO is investigating the Sh50 billion deal involving a UK arms dealer, BAE Systems, which is alleged to have paid some middlemen a staggering $12 million (Sh15 billion).

Britain�s The Guardian newspaper reported last year that Mr Chenge had denied during its own investigations that the more than $1 million (�507,500) found in his offshore account had been paid to him by BAE.

Investigators involved in a three-year inquiry following the controversial deal to sell Tanzania a �28 million radar system traced the money to Jersey accounts reportedly held by Mr Chenge.

But he told the newspaper: "The obvious inference [of the investigation] is that I have received for my benefit 'corrupt payments' from BAE. This is untrue."

The former minister's American lawyer, Mr J. Lewis Madorsky, added: "While the matters in question took place a number of years ago, we can state ... that any and all allegations of illegality, impropriety, misconduct and unethical behaviour made against our client are categorically and vigorously denied".

According to The Guardian, the investigators had said that Mr Chenge could be a valuable witness. The target of their investigation was not him but BAE.

The arms company made the commission payments to a local agent in Tanzania to push through the �28 million radar sale, in an elaborate chain of offshore companies and a Swiss bank.

The SFO investigators also reportedly searched Mr Chenge�s residence in Dar es Salaam, in connection with the claims. He has not refuted the allegation.

According to media reports, a lengthy SFO investigation in the UK discovered that 31 per cent of the deal's contract price had been paid via Switzerland.

BAE Systems transferred the money to its subsidiary, Red Diamond Trading, which is registered in the British Virgin Islands.

Red Diamond then moved the cash to a Swiss account in the name of a Panama company, Envers Trading Corporation. This entity had two Panamanian nominee directors. But it was said to be secretly controlled by a Tanzanian middleman, Mr Shailesh Vithlani.

The SFO and PCCB investigators were checking whether Mr Vithlani passed on any of the money to Tanzanian politicians and officials.

According to President Kikwete, the UK investigation team had been given "all necessary support" by Tanzania's Directorate of Criminal Investigations.

The radar saga, which had earlier caused a storm in the UK House of Commons, took another turn after The Guardian reported that the SFO had confirmed to former British International Development minister Clare Short that it had seen documents showing that the �28 million sale of radar equipment to Tanzania by BAE Systems was corrupt.

Ms Short told a Tory-initiated debate in the House of Commons on the controversial 2002 sale that the issue had split the cabinet.

The newspaper further quoted Ms Short as describing the deal as "squalid", and calling for cross-party support to tighten the rules on arms sales to developing countries.

She also said the Tanzanian Government would have been happy had Britain blocked the deal by refusing to issue an export licence on the grounds that it would hinder the country's development.

During the debate, the report further notes, the current International Development Secretary, Mr Hilary Benn, revealed that as Ms Short's deputy at the time, he had also opposed the granting of the export licence. But he suggested that with hindsight the deal might have been worthwhile.

However, he said it would not be appropriate for him to comment on reports that a payment of $12 million (�6.1m) had been made to middlemen by BAE to clear the deal.

Barack Obama inauguration speach is hope for better world economy

Full text: Obama inauguration speech

Barack Obama has been sworn in as the 44th US president. Here is his inauguration speech in full.

My fellow citizens:

I stand here today humbled by the task before us, grateful for the trust you have bestowed, mindful of the sacrifices borne by our ancestors. I thank President Bush for his service to our nation, as well as the generosity and co-operation he has shown throughout this transition.

Forty-four Americans have now taken the presidential oath. The words have been spoken during rising tides of prosperity and the still waters of peace. Yet, every so often the oath is taken amidst gathering clouds and raging storms. At these moments, America has carried on not simply because of the skill or vision of those in high office, but because We the People have remained faithful to the ideals of our forbearers, and true to our founding documents.

So it has been. So it must be with this generation of Americans.

That we are in the midst of crisis is now well understood. Our nation is at war, against a far-reaching network of violence and hatred. Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age. Homes have been lost; jobs shed; businesses shuttered. Our health care is too costly; our schools fail too many; and each day brings further evidence that the ways we use energy strengthen our adversaries and threaten our planet.

These are the indicators of crisis, subject to data and statistics. Less measurable but no less profound is a sapping of confidence across our land - a nagging fear that America's decline is inevitable, and that the next generation must lower its sights.

Today I say to you that the challenges we face are real. They are serious and they are many. They will not be met easily or in a short span of time. But know this, America - they will be met.

On this day, we gather because we have chosen hope over fear, unity of purpose over conflict and discord.

On this day, we come to proclaim an end to the petty grievances and false promises, the recriminations and worn out dogmas, that for far too long have strangled our politics.

We remain a young nation, but in the words of scripture, the time has come to set aside childish things. The time has come to reaffirm our enduring spirit; to choose our better history; to carry forward that precious gift, that noble idea, passed on from generation to generation: the God-given promise that all are equal, all are free, and all deserve a chance to pursue their full measure of happiness.

In reaffirming the greatness of our nation, we understand that greatness is never a given. It must be earned. Our journey has never been one of short-cuts or settling for less. It has not been the path for the faint-hearted - for those who prefer leisure over work, or seek only the pleasures of riches and fame. Rather, it has been the risk-takers, the doers, the makers of things - some celebrated but more often men and women obscure in their labour, who have carried us up the long, rugged path towards prosperity and freedom.

For us, they packed up their few worldly possessions and travelled across oceans in search of a new life.

For us, they toiled in sweatshops and settled the West; endured the lash of the whip and ploughed the hard earth.

For us, they fought and died, in places like Concord and Gettysburg; Normandy and Khe Sahn.

Time and again these men and women struggled and sacrificed and worked till their hands were raw so that we might live a better life. They saw America as bigger than the sum of our individual ambitions; greater than all the differences of birth or wealth or faction.

This is the journey we continue today. We remain the most prosperous, powerful nation on earth. Our workers are no less productive than when this crisis began. Our minds are no less inventive, our goods and services no less needed than they were last week or last month or last year. Our capacity remains undiminished. But our time of standing pat, of protecting narrow interests and putting off unpleasant decisions - that time has surely passed. Starting today, we must pick ourselves up, dust ourselves off, and begin again the work of remaking America.

For everywhere we look, there is work to be done. The state of the economy calls for action, bold and swift, and we will act - not only to create new jobs, but to lay a new foundation for growth. We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together. We will restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost. We will harness the sun and the winds and the soil to fuel our cars and run our factories. And we will transform our schools and colleges and universities to meet the demands of a new age. All this we can do. All this we will do.

Now, there are some who question the scale of our ambitions - who suggest that our system cannot tolerate too many big plans. Their memories are short. For they have forgotten what this country has already done; what free men and women can achieve when imagination is joined to common purpose, and necessity to courage.

What the cynics fail to understand is that the ground has shifted beneath them - that the stale political arguments that have consumed us for so long no longer apply. The question we ask today is not whether our government is too big or too small, but whether it works - whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified. Where the answer is yes, we intend to move forward. Where the answer is no, programs will end. And those of us who manage the public's dollars will be held to account - to spend wisely, reform bad habits, and do our business in the light of day - because only then can we restore the vital trust between a people and their government.

Nor is the question before us whether the market is a force for good or ill. Its power to generate wealth and expand freedom is unmatched, but this crisis has reminded us that without a watchful eye, the market can spin out of control - that a nation cannot prosper long when it favours only the prosperous. The success of our economy has always depended not just on the size of our gross domestic product, but on the reach of our prosperity; on the ability to extend opportunity to every willing heart - not out of charity, but because it is the surest route to our common good.

As for our common defence, we reject as false the choice between our safety and our ideals. Our founding fathers, faced with perils we can scarcely imagine, drafted a charter to assure the rule of law and the rights of man, a charter expanded by the blood of generations. Those ideals still light the world, and we will not give them up for expedience's sake. And so to all other peoples and governments who are watching today, from the grandest capitals to the small village where my father was born: know that America is a friend of each nation and every man, woman, and child who seeks a future of peace and dignity, and we are ready to lead once more.

Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with the sturdy alliances and enduring convictions. They understood that our power alone cannot protect us, nor does it entitle us to do as we please. Instead, they knew that our power grows through its prudent use; our security emanates from the justness of our cause, the force of our example, the tempering qualities of humility and restraint.

We are the keepers of this legacy. Guided by these principles once more, we can meet those new threats that demand even greater effort - even greater cooperation and understanding between nations. We will begin to responsibly leave Iraq to its people, and forge a hard-earned peace in Afghanistan. With old friends and former foes, we will work tirelessly to lessen the nuclear threat, and roll back the spectre of a warming planet. We will not apologize for our way of life, nor will we waver in its defence, and for those who seek to advance their aims by inducing terror and slaughtering innocents, we say to you now that our spirit is stronger and cannot be broken; you cannot outlast us, and we will defeat you.

For we know that our patchwork heritage is a strength, not a weakness. We are a nation of Christians and Muslims, Jews and Hindus - and non-believers. We are shaped by every language and culture, drawn from every end of this earth; and because we have tasted the bitter swill of civil war and segregation, and emerged from that dark chapter stronger and more united, we cannot help but believe that the old hatreds shall someday pass; that the lines of tribe shall soon dissolve; that as the world grows smaller, our common humanity shall reveal itself; and that America must play its role in ushering in a new era of peace.

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West - know that your people will judge you on what you can build, not what you destroy. To those who cling to power through corruption and deceit and the silencing of dissent, know that you are on the wrong side of history; but that we will extend a hand if you are willing to unclench your fist.

To the people of poor nations, we pledge to work alongside you to make your farms flourish and let clean waters flow; to nourish starved bodies and feed hungry minds. And to those nations like ours that enjoy relative plenty, we say we can no longer afford indifference to suffering outside our borders; nor can we consume the world's resources without regard to effect. For the world has changed, and we must change with it.

As we consider the road that unfolds before us, we remember with humble gratitude those brave Americans who, at this very hour, patrol far-off deserts and distant mountains. They have something to tell us, just as the fallen heroes who lie in Arlington whisper through the ages. We honour them not only because they are guardians of our liberty, but because they embody the spirit of service; a willingness to find meaning in something greater than themselves. And yet, at this moment - a moment that will define a generation - it is precisely this spirit that must inhabit us all.

For as much as government can do and must do, it is ultimately the faith and determination of the American people upon which this nation relies. It is the kindness to take in a stranger when the levees break, the selflessness of workers who would rather cut their hours than see a friend lose their job which sees us through our darkest hours. It is the firefighter's courage to storm a stairway filled with smoke, but also a parent's willingness to nurture a child, that finally decides our fate.

Our challenges may be new. The instruments with which we meet them may be new. But those values upon which our success depends - honesty and hard work, courage and fair play, tolerance and curiosity, loyalty and patriotism - these things are old. These things are true. They have been the quiet force of progress throughout our history. What is demanded then is a return to these truths. What is required of us now is a new era of responsibility - a recognition, on the part of every American, that we have duties to ourselves, our nation, and the world, duties that we do not grudgingly accept but rather seize gladly, firm in the knowledge that there is nothing so satisfying to the spirit, so defining of our character, than giving our all to a difficult task.

This is the price and the promise of citizenship.

This is the source of our confidence - the knowledge that God calls on us to shape an uncertain destiny.

This is the meaning of our liberty and our creed - why men and women and children of every race and every faith can join in celebration across this magnificent mall, and why a man whose father less than 60 years ago might not have been served at a local restaurant can now stand before you to take a most sacred oath.

So let us mark this day with remembrance, of who we are and how far we have travelled. In the year of America's birth, in the coldest of months, a small band of patriots huddled by dying campfires on the shores of an icy river. The capital was abandoned. The enemy was advancing. The snow was stained with blood. At a moment when the outcome of our revolution was most in doubt, the father of our nation ordered these words be read to the people:

"Let it be told to the future world...that in the depth of winter, when nothing but hope and virtue could survive...that the city and the country, alarmed at one common danger, came forth to meet [it]."

America. In the face of our common dangers, in this winter of our hardship, let us remember these timeless words. With hope and virtue, let us brave once more the icy currents, and endure what storms may come. Let it be said by our children's children that when we were tested we refused to let this journey end, that we did not turn back nor did we falter; and with eyes fixed on the horizon and God's grace upon us, we carried forth that great gift of freedom and delivered it safely to future generations.

Thank you. God bless you. And God bless the United States of America.

Kilimanjaro starts weekly flower flights

Written by EABW CORRESPONDENT
Monday, 19 January 2009
DAR ES SALAAM, TANZANIA - The Tanzania Horticultural Association (TAHA) and its newly formed growers-owned logistics firm, TAHA Fresh Handling Limited (TFHL), have announced the successful inaugural flight of a Boeing 747-200 cargo aircraft from Kilimanjaro International Airport (KIA).



The US government through USAID was fundamental in focusing TAHA and the government of Tanzania on various initiatives into a reality.

Through the USAID support initiative, diverse stakeholders and industry professionals came together under the auspices of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) managed Tanzania Air Freight Programme (TAP).

In an interview with EABW recently, the Executive Director for TAHA, Jacqueline Mkindi said the flight took off on December 7, 2008 loaded with flowers, cuttings and vegetables from Tanzania to markets in Europe.

"This is the first of what will be a weekly service from JRO to Ostend in Belgium operated by MK Airlines. The second flight also took off in the night of Saturday December 13, 2008 uplifting almost 30 tonnes of horticultural produce," she said.


She said the route by MK cargo plane has a viable entry to Amsterdam and other destinations including USA, UK and Asia. "It's really competitive route, which starts from Belgium to South Africa en-route Entebbe and Kilimanjaro. Ostend in Belgium is a hub whereby cargo is lifted to other destinations," she said.

Mkindi said the development will facilitate growth of the horticulture industry but currently TAHA is making efforts to make sure the cargo plane lands at KIA three times a week.

"We are organizing ourselves to make sure the plane is coming at KIA three times a week because our growers still transport their flowers through Jomo Kenyatta International Airport (JKIA)," she said.According to Mkindi, the capacity of income generation of Kenya's horticultural is US$1.7 billion against Tanzania's earnings of US$140 million. Kenya outshines Tanzania in horticultural earnings since Kenya started the business a long time ago.

The outgoing US ambassador to Tanzania Mark Green; the USAID Mission Director, Robert Cunnane; the Vice President of the MK Airlines and other stakeholders held very constructive discussions with the growers and exporters of horticultural products at TAHA premises on December 11, 2008.

Ambassador Green pointed out that the access to reliable cargo space will create great vegetable and horticulture export opportunities for thousands of small and medium holder growers.

TAHA represents growers, exporters, processors and other service providers in the horticultural industry and seeks to promote the industry for its growth and sustainability.

Two years ago during its launching, Qatar Airways announced its eagerness to start a direct flight from the Kilimanjaro International Airport (KIA) to Doha specifically for transporting cut-flowers and passengers.

CAN TANZANIA SURVIVE WITHOUT AGRICULTURE?

Tanzania as a country that depends on agriculture as the main contributor to the Gross Domestic Product (GDP), and the main source of International trade, may need to rethink her economic future in the wake of 2008 oil crisis, in which a barrel of oil reached an historic high of $147 just to slide back to $36.2, a barrel in less than six months. Sending shockwave of fear to countries that relied on this commodity as their main source of economic vitality.

Oil producing countries such as Venezuela, and Iran just to name a few whose economies relies heavily on this single commodity, ripped massive profits and used their earnings not to diversify their economies, but to further their ideological beliefs. Both countries neglected their potential economic vulnerability based on oil dependence despite decades of huge profits. They are now not only in the same financial debacle, but also in potential social quandary of a different magnitude; they relied heavily on now devalued oil as their main source of economic lifeline.

Energy prices have tumbled across the board; with oil plummeting to its historical low of $36.2, a barrel at the New-York Mercantile Exchange (NYMEX) as of January 16th; A figure far below budget projections of $60 a barrel in the cases of Iran, and Venezuela. Countries whose leaders ascended to power, based on promises of ambitious, social programs transformation .The two countries must shelve some of their ambitious social projects for the time being, due to the impending budget deficits, and perhaps social problems, when some of the already existing services will have to be curtailed.

Oil accounts for more than 90% of Venezuela exports, while Iran depends on oil to account for 85% of the government’s revenues. Whilst this is the reality, Hugo Chavez of Venezuela, has used oil money to make thumb his nose towards the west; he has used the petrodollars to further his socialist and revolutionary causes of being a defender of the Latin America, against the American Empire Influence.

His Iranian counterpart Mohamoud Ahmadinejad, on the other hand, has used oil profits to wag his finger, and heralding his determination to wipe Israel off the map. Iran, spent millions of her petrodollars promoting itself as the sole defender of Islam across the Islamic world; She is fighting for hegemony on geopolitical and economic fronts across the Middle East. Not only that, Iran, has used her oil wealth to fend off the western efforts to block her nuclear drive, and this is still going on in the face of rising unemployment, and sky high inflation. The bottom line is that, both Iran and Venezuela failed to look at the broader picture, which is Iran, and Venezuela without oil.

Thanks to speculation in the financial markets, the countries racked-in massive profits, but then their leaders ignored the laws of economics, and called the $147 a barrel an insult. Iranian leader arrogantly suggested that, $200 a barrel would not be a fair price either. Even after the financial crisis started, they forgot that mere speculation was not sufficient to reverse Economic Law of Elasticity.

Gasoline being one of the modern day necessities, many believed it was not going to undergo a price shock ; the economic boom in India and China, and increasing demand in the United States, led many to perceive oil as insensitive to price changes (inelastic), because consumers would continue to demand it despite price increases.

Economic theories have disapproved those who were convinced that, oil prices would never fall. Prices have plunged sharply globally, except in Tanzania; one of the few countries where merchants can impose upon the people their own prices. Sadly enough, In the United States, some are currently paying equivalent of $.55cents a liter, whereby many paid roughly $1.50 a liter, less than six months ago.

In the face of economic hardship, characterized by the rise of unemployment, and declining earning power, oil become less of a necessity; need for food and shelter precedes the need for oil. However, availability of alternative forms of transportation, amount of income to spend on gasoline, and time factors have driven oil prices to their current low levels.

Just like Iran and Venezuela cannot breathe without oil, Tanzania has no economic vitality without agriculture. Agriculture accounts for 42.5% of the Gross Domestic Product (GDP) and more than 80% of the exports, and this puts our country in the same line of vulnerability, and insecurity as that of the oil producing countries which are now facing economic uncertainty because they did not properly plan for economic continuity without oil (reduced oil demand characterized by lower revenues).

An economy without agricultural dependence should be Tanzania’s motto. This ambition should take into consideration country’s massive wealth of natural resources. Just like Dubai, a tiny U.A.E country which solely relies on maritime and tourism for her survival, Tanzania should think 100 years from now by laying plans in place on how to exploit her massive wealth, such as the inexhaustible, and price insensitive Indian Ocean; making maritime services through port of Dar es salaam easily accessible, efficient and inexpensive for both domestic and to foreign customers such as Zambians, Congolese, Ugandans etc who are using Kenyan ports for the most part.

Massive advertisement campaign of our beaches as a focal point for attraction, for both domestic and foreign tourists would yield unprecedented positive results, just like it has in the cases of Mauritius and Morocco. Our historical wealth such as the famous Zanzibar, Bagamoyo and Mafia Islands are enough to shift the economic pendulum from agricultural dependence to a more balanced economy. Aggressive marketing of Mt. Kilimanjaro and other tourist attractions as parts of Tanzania and not Kenya, will definitely provide Tanzania with the missing link to full economic diversification.

Economists, financial experts, and scholars both in public and private sectors, should study the feasibility of balancing the economy from agricultural dependence to agricultural independence considering the country’s untapped wealth. In the face of climatic uncertainty of prolonged droughts, tsunamis, unfair agricultural subsidization by wealthy countries, Tanzania’s may find her competitive ability in the international commodity markets hampered by these factors. And possibly, chocking the economic lifeline out of the country.

There is no question, such ambitious move would be time consuming, expensive, complicated and very hard to accomplish. But in today’s dynamic and less predictable global economy, there is no other alternative. Tanzania MUST have economic diversification strategy. Massive wealth in the hands of a few could be channeled towards the feasible study of economic diversification for the good of the country’s majority riddled with poverty.

Tanzania, government must strengthen the country’s infrastructure, and use foreign resources in the form of investment to support the transformation. The law for attracting and protecting foreign investments must be enforced diligently, and foreign investors must be given assurances regarding the safety of their investments. Red tape and bureaucracy at government agencies MUST be ended.

The focus must be on the qualitative aspect of manpower by streamlining the government in such a way that quality becomes the highest priority, at the same time recognizing human talent and capability within the workforce. Rewarding employees to enable them release their full potential must be a common practice, and also retaining already developed talents to encourage innovation, which will in turn curb the current wave of brain drain.

With a young energetic population, Tanzania will enjoy an inexpensive labor force, should it adopt a broader industrialization project, which will reduce dependence on importation of unnecessary products, some of which are substandard and hazardous to the population. Domestic production of Industrial goods will translate into cheaper prices, as well as employment to the currently idle young population. These goods will not only be consumed domestically, but will also find demand in the Southern, Central, and East African economic blocs in which Tanzania’s influence is growing.

To fully diversify Tanzanian economy, the current government expenditure must be shifted to major development and construction projects to guarantee that in the future, the country’s infrastructure; will be able to sustain growth in all sectors of the economy, which will in turn shift the economic pendulum from agricultural dependence to agricultural independence.

We cannot wait until a crisis emerges for us to be able to start preparedness, the current economic and energy crisis are perhaps some of the best lessons we can learn in our generation. We do not want to go the Iranian or Venezuela routes. Now is the time to shove aside politics, rhetoric, and rattling, and think deeply on where the country is going to be hundred years from today.

The question is, can we see our country surviving without agriculture?

Mungu Ibariki Tanzania

John Mashaka,
Mashaka.john@yahoo.com
The Writer is a US based Banker, & Social Activist

Tanzanite price falls by 80 percent, WHY?

2009-01-11 14:08:47
By Adam Ihucha, Arusha

First it was cotton, then followed coffee, Nile Perch, tourism and this week tanzanite joined the list of the latest casualties of global economic meltdown, when the price of the rare gemstone plummeted by 79 percent at the global market.

The situation has prompted thousands of tanzanite miners as well as brokers to suspend production, pending the stability of the global market for the uniquely Tanzanian gemstone which generates about $500million (Sh575 billion) annually.

The government`s share of the earnings is about $20million in taxes and royalties, the big chunk of which is paid by local miners, while foreign investors continue to enjoy the huge tax exemption granted to them under the controversial Mining Act of 1998.

In Mererani, the owners of the nearly 200 tanzanite mining pits reportedly opted to suspend their operations between October 2008 and January 2009 rather than operate at a loss.

Closure of the mines will leave 45,000 tanzanite diggers and brokers jobless, according to statistics provided by the Manyara Regional Miners Association (MAREMIA).

But, surprisingly, the tanzanite sub-sector employs about 250,000 people in Jaypur India; where the unprocessed gemstone is cut and polished for re-export.

By the end of this week, in a small town popularly known as `Zaire village` - that used to shelter about 60,000 people - the number has fallen dramatically to only 20,000 residents, during the past few months, following the plummeting of tanzanite prices at the global market.

The situation fuelled also by the recent Thailand political unrest has almost brought the price of the rare tanzanite to its knees, after a lull of nearly six years. Thailand is one of the leading markets for tanzanite gem.

The major price falls comes at the time when the sector was already recovering from a major setback of the September 11 terrorist attacks in US, whereby it was claimed that the revenues generated from tanzanite was used to finance Al-Qaeda activities around the globe.

During that period, tanzanite price fell drastically, after a celebrity lawyer Ed Hayes` multi-billion dollar litigation lawsuit against tanzanite traders, who were alleged to be trading with Al-Qaeda fugitives.

After the announcement of the lawsuit, panicky traders in Thailand and India dropped the price to as low as $120 a carat for high quality pieces from November 2001 until the Tucson Tanzanite conference in spring 2002.

Miners puzzled, left at the crossroads
Leonard Shayo and Lemali Bayani have been prominent tanzanite dealers for several years, operating in Arusha city, but with the latest major price cut for the rare gems, they don`t know what the future holds for them.

According to them, a top colour gramme of raw tanzanite is currently trading at between Sh170,000 from the previous Sh800,000.

Local dealers told The Guardian on Sunday, that a single polished carat of Tanzanite top colour, currently trades at Sh180,000 down from Sh400,000 recorded in mid last year.

``The global credit crisis plus the unrest in Thailand have contributed greatly to the drastic price cut for tanzanite…we are puzzled.” Shayo told The Guardian on Sunday.

Following the `collapse of tanzanite market`, hundreds of tanzanite brokers, who used to flock to the famous Pangani Street at the heart of Arusha city, have vanished, casting a bleak future to the city whose major source of revenue tourism - is also said to be the latest victim of economic recession.

Back to Mererani, hundreds of small scale miners have downed their tools, pending the stability of the world`s market for tanzanite, according to MAREMIA Secretary Abubakari Mollel.

``It is a disaster as hundreds of our members suspend mining activities due to the collapse of the tanzanite market, `` Mollel told this reporter over the phone yesterday.

``Mining is the core business here, others such as hotels, lodges and retail shops are all dependent on it, now there is no more tanzanite and therefore people are leaving.`` chipped in Rajabu Abdallah, a resident of Zaire.

The once vibrant mining vicinity is slowly, but surely transforming into a ghost territory empty houses, deserted bus stations and relatively sad faces of the few remaining residents who have lost all hope of survival.

Discovered by one Ali Juwa Watu in 1967 at what is now known as Block `C` area in Mererani hills, about 70km South East of Arusha, tanzanite gems will clock 42 years next year.

Tanzanite gems were named by Tiffany as, ``the most important gemstone discovery in 2000 years``, and have lived up to expectations. It is now one of the most sought after gemstones in the world, especially in the US market.