TPA raises Rwanda market share on enhanced strategy

Dar es Salaam. The Tanzania Ports Authority’s market share in neighboring Rwanda has achieved a 90 percent annual increase, with Dar es Salaam and Tanga ports handling by at least 1.3 million metric tonnes this year compared to only 922,135 metric tonnes in the 2017/18 financial year.

The Tanzania Ports Authority (TPA) Director General, Mr Eric Hamissi, said this yesterday during a courtesy visit to the authority by Major General Charles Karamba, Rwanda’s Ambassador to Tanzania.

According to Mr Hamissi, the increased cargo volume is attributed by TPA’s market strategy for which much of the landlocked country’s import and export cargo go through Dar es Salaam and Tanga ports and thus plays a significant role in Kigali’s economy.

“In addition to our market strategy, we also thank Rwanda’s business communities for not only promoting our ports but also for making Dar es Salaam and Tanga as their preferred ports for their imports and export,” he noted.

According to him, TPA has massively devoted itself in, re-establishing and maintaining trade relationships between the authority and Rwanda’s business community so as not only to serve them better, but also to render its services efficiently.

He, therefore, promised the diplomat saying: “TPA will continue working on solving various challenges that the businesses might encounter and create a better environment in which better services will be provided, thus guaranteeing a smooth operation especially during cargo handling services.

For his part, the Rwanda diplomat commended the authority and added that: “As the diplomatic mission, we obviously need to be link with TPA leadership though its Director-General, this will help us in solving various challenges that our businesses might be facing.”

According to him, Rwanda’s cargo volumes through the said two ports have been increasing annually which is attributed to the finest services that we get as well as ongoing infrastructure improvement in the said ports.

He added: “Our economy is growing, we export more so as we import, and this is why there is such an increase in volume when it comes to Rwanda’s imports and exports in the ports of Dar es Salaam and Tanga.

According to him, the cargos are related to food stuff, electronic appliances and machinery, construction, agriculture, and the automobile.

Media reports indicate that with TPA’s innovation, Rwandan importers and exporters will no longer have to travel to Tanzania to clear their shipments.

This is due to the fact that TPA has opened a liaison office which is expected to operate as a one stop centre for traders to pay and clear their goods from Kigali without having to travel to Dar es Salaam.

This means that Rwandese traders will have the opportunity to clear their cargo just within their motherland, thus helping in cutting the cost of doing business and reducing the hurdles within the logistics and supply chain.

It is said that all are done in the name of ensuring TPA improves the business environment for its clients in neighboring Rwanda.

By The Citizen Reporter

Tanzania: Zanzibar Economy to Grow At 6.5 Per

ZANZIBAR economy is projected to grow at 6.5 per cent this year from last year’s 5.2 per cent, the House of Representatives was told on Tuesday.

Minister of State, President’s Office, Finance and Planning Dr Saada Mkuya Salum attributed the speedy economic growth to the International Monetary Fund (IMF) soft loan to mitigate the impacts of Covid-19; increased tourist arrivals; improved revenue collections as a result of intensified systems; increased industrial production; and improved commercial activities by small entrepreneurs, among other factors. Moving the Development Plan and 2022/2023 budget outlook in the house, Dr Mkuya said the government intends to further pursue the blue economy, strengthen infrastructure, tourism and social services to wananchi. Under the blue economy, the minister cited construction of the integrated Mangapwani Port, Kibweni Port backup as well as supportive infrastructure and maintenance facility; establishment of seaweed processing factory; and increased seaweed production as the main planned activities.

The government is also determined to strengthen maritime transport and trade, the minister said. Construction of Pemba airport, highways and feeder roads; improved human settlements; and improved digital network services are among the key budgetary targets under infrastructure development.

The minister said the government plans to collect 2,207.2bn/- for recurrent and development expenditures in the 2022/2023 fiscal year, a 19.6 per cent increase from the current budget of 1,845.6bn/-

According to the minister’s proposal, almost half of the envisaged revenues will be directed to development projects.

Minister Mkuya said development projects will consume 1,097bn/-, which is 49.7 per cent of the total budget, with 1,110.2bn/- channeled to recurrent expenditures.

She said the government spending will focus on flagship projects, with the blue economy; transport infrastructure; tourism; and social services as the priority sectors.

The budget outlook also focuses on improved water and electricity supply; improvement of industrial parks; and improved tourism sector.

The minister boasted of declining budget’s donor dependency, saying under the envisaged budget, dependency will drop to 1.6 from the current budget’s 4.3 per cent.

She further explained that fund allocation in the coming fiscal year will be determined by the national priority areas and special government directives, especially on allowance improvement for civil servants in health and education sectors.

New employments and procurement of essential drugs in the country’s hospitals and health facilities also appear high on the coming budget’s priorities.

On the country’s last year economic performance, Dr Mkuya said the service sector was the best performer with 46 per cent contribution to Gross Domestic Product (GDP), a great improvement from the previous 35.5 per cent.

The service sector entails accommodation and food services; trade and repairs; transport and warehousing; information and communication; financial institutions and insurance; public administration; education; and health.

Agricultural sector–fishing, livestock, produce and forests–accounted for 26.3 per cent, a decline from 29.5 per cent in the previous year, the minister informed the house, noting that the industrial sector’s–sand mining, construction, electricity, gas and industrial manufacturing–contribution to GDP dropped from 24 to 19.9 per cent over the period under review.

EABC Commends Dar On Treasury Bills, Bonds

THE East African Business Council (EABC) has lavished praise on President Samia Suluhu Hassan for allowing East Africans to invest in treasury bills and bonds security markets.

The apex body of the private sector in the region said in a statement that it appreciated such a bold and visionary move by Tanzania’s government, through the central bank on issuing the new Foreign Exchange Regulations 2022 under the Foreign Exchange Act Cap 271, which will attract and boost cross-border investments needed to generate capital and build the economy in Tanzania and the East African region at large.

According to EABC, the regulations permit residents of the East African Community (EAC) and Southern African Development Community (SADC), to invest in Treasury bills and bonds.

The regulations also permit a person residing in Tanzania to invest in the prescribed territory.

The EAC Monetary Union Protocol signed on November 30, 2013 provides for cooperation in monetary and fiscal matters to establish monetary stability and facilitate economic integration.

“The East African Business Council is dedicated to partnering with the Government of the United Republic of Tanzania to promote the free movement of capital and payments, as prescribed in the EAC Common Market Protocol (2010),” read part of the statement.

Treasury bills are short-term government securities, which are issued at discount and mature in less than a year. Treasury bills are used as a primary instrument for raising funds to meet temporary budget deficit and regulate money supply while treasury bonds are long-term debt instruments with a maturity period of more than one year and pay interest on semiannual basis. Treasury bonds issued by the Bank of Tanzania are in six maturities: 2, 5, 7, 10, 15 and 20 years. They are issued at fixed interest rate (coupon).



Swissport Tanzania Plc_unaudited half year financial results June 2021