BANK OF TANZANIA NOTICE TO THE GENERAL PUBLIC

This is to inform the general public that Bank of Tanzania has issued a banking license to a new Microfinance Company named VisionFund Tanzania M.F.C Limited. The license allows the company to carry out banking business as a Microfinance company operating in Tanzania. The company's head office is located at Blue Plaza Building, India Street, Arusha.

Bank of Tanzania

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BANK OF TANZANIA NOTICE TO THE GENERAL PUBLIC

This is to inform the general public that the Bank of Tanzania has issued a financial leasing license to a company named Alios Finance (Tanzania) Limited. The license allows the company to carry out finance leasing business as a financial leasing company operating in Tanzania. The company's head office is located at Amani Place Building, Ohio Street, Dar es Salaam.

Bank of Tanzania

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CALL FOR TENDER: CONSULTANCY SERVICES FOR DRAFTING SIMPLIFIED FINANCIAL REPORTING STANDARDS FOR MICRO ENTITIES IN TANZANIA

PRIVATE SECTOR COMPETITIVE PROJECT (PSCP) – ACCESS TO FINANCE COMPONENT 

CREDIT NO.5326 - TA 

EXPRESSION OF INTEREST 

CONSULTANCY SERVICES FOR DRAFTING SIMPLIFIED FINANCIAL REPORTING STANDARDS FOR MICRO ENTITIES IN TANZANIA

1. This request for expression of interest follows the General Procurement Notice for 

this project that appeared online in Development Business (UNDB) issue number 

10944 of July 3rd, 2013. 

2. The Government of United Republic of Tanzania has received a credit from 

International Development Association (IDA) towards the cost of the Private 

Sector Competitive Project (PSCP), and intends to apply part of the proceeds of 

this credit to payment under the contract for consulting services for Drafting 

Simplified Financial Reporting Standards for Micro Entities in Tanzania. 

3. The objectives for this study is to assist National Board of Accountants and 

Auditors (NBAA) with developing and drafting simplified financial reporting 

standards and guidelines for Micro entities in Tanzania. The simplified financial 

reporting requirements should be consistent with the standards/guidelines issued 

by International Accounting Standards Board. It will be a third tier of the 

accounting standards applicable in Tanzania after the full IFRSs and IFRSs for 

SMEs.

4. The Bank of Tanzania (Client) as an implementing entity of PSCP – Access to 

Finance Component now invites eligible consultants to indicate their interest in 

providing the services. Interested consultants must provide information indicating that they are qualified to perform the services. Such information may include 

brochures, description of similar assignments, experience in similar conditions and 

availability of appropriate skills among proposed staff. Consultants may 

associate to enhance their qualifications. 

5. A short list of consulting firms will be prepared on the basis of Expressions of 

Interest submitted to Bank of Tanzania in writing. The selection method will be in 

accordance with procedures set out by the World Bank Guidelines; Selection 

and Employment of Consultants by World Bank Borrowers, January 2011. 

6. Interested consultants may obtain further information at the address given below 

between 0830 hours and 1630 hours, Monday – Friday inclusive, exclusive of 

public holidays, before the deadline for the submission of Expression of Interest. 

7. Expressions of Interest in writing, with corporate capability statement should be 

sent to:- 

Postal: Secretary 

BOT Tender Board 

Bank of Tanzania, 

P.O. Box 2939, 

Dar es Salaam, Tanzania. 

Physical: 2nd Floor, South Tower, 

2 Mirambo Street, 

11884 Dar es Salaam. 

E-mail: PMU@bot.go.tz 

Telephone No.: +255 22 2235194/5 

Fax No.: +255 22 2234053 

8. Deadline for submission of Expression of Interest is on Friday, 11th 

July, 2014 at 11.00 hours local time. 

Governor, 

Bank of Tanzania, 

11884 Dar es Salaam, 

Tanzania. 

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RISING FOOD AND ENERGY PRICES PUSHES TANZANIA'S INFLATION RATE HIGHER TO 6.5%

Rising food and energy prices pushed Tanzania's year-on-year inflation rate higher to 6.5 percent in May from 6.3 percent the previous month.

According Ephraim Kwesigabo, Director at state-run National Bureau of Statistics (NBS), the food and non-alcoholic beverages inflation rate increased to 8.5 percent in May from 7.8 percent recorded in the previous month, the statistics office said.

"The rise of the annual inflation rate in May was caused by higher price increases in food and non-food items such as fuel. There have been higher increases in the prices of a number of non-food commodity items such as charcoal and cooking gas in the year to May," he said.

The NBS said that month on month inflation tumbled to -0.4 percent from 0.7 percent in April.

"The fact that the monthly inflation rate declined in May compared to April could be an indication that the inflation rate could decline in the coming months," said Kwesigabo.

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M-PAWA ATTRACTS 250,000 USERS

Just three weeks since the M-Pawa service was launched in Dar es Salaam, Over 250,000 Tanzanians have been attracted to use the platform, a brainchild of Vodacom’s M-Pesa and Commercial Bank of Africa.

According to a statement by Vodacom, some 50,000 customers are making a total of Tshs 1.2 billion savings via the platform.

“This is a very encouraging trend which we believe will go from strength to strength,” Vodacom Tanzania Managing Director Rene Meza said in the statement.

He said the service had enabled some people, who previously were excluded from the banking services to save their money.

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UCHUMI SUPERMARKETS SET TO CROSS-LIST ON DSE

The Dar es Salaam Stock Exchange is poised to welcome a new entrant with the impending cross-listing of Kenya’s Uchumi Supermarkets, the largest retailer chain in the East African Community region.

The retailer outlet has applied to the stock exchange regulator, the Capital Markets and Securities Authority (CMSA) to cross-list at the Dar es Salaam Stock Exchange.

The CMSA Public Relations Manager, Mr Charles Shirima told the Business Standard that the retailer was until Friday still sorting out some cross-listing requirements.

He however would not go into details about the requirements. The DSE Chief Executive Officer, Mr Moremi Marwa said they were looking forward to welcome the new entrant at the bourse as its admission would boost market activities at the bourse.

He said the cross-listing of Uchumi Supermarkets would move market capitalisation at the bourse a notch higher and provide an opportunity for Tanzanians to invest in one of the largest retail outlet in the region.

“We are very enthusiastic of this development which is also in line with our objective to integrate our markets’ regulations and infrastructure in the East African region that will also enable investors in the region to invest in our markets in a way that is efficient and effective,” he told the Business Standard.

Uchumi Supermarkets Chief Executive Officer, Mr Jonathan Ciano, said they had applied to cross-list at the DSE to make the outlet have a regional look and increase the number of its shareholders in the region.

“We applied for the approval barely two weeks ago with the aim to expand and increase the shareholders’ base across the East African Community countries.

We want to market Uchumi more as an East African company rather than a Kenyan firm, to expand and increase our footprint in different markets outside Kenya,” Chief Executive Officer, Jonathan Ciano said.

The retailer is already cross-listed on the Uganda Securities Exchange (USE), where it has subsidiaries, and on the Rwanda bourse. Uchumi already has three outlets in Tanzania and is weighing options to open more outlets by next year. “We will be expanding in the region given the conducive business environment in the regional markets.

We are planning to issue new shares in a rights issue to finance our expansion plans,” said Mr Ciano. Uchumi Supermarkets last year became the third company to cross-list its shares on Kigali bourse after Nation Media Group (NMG) and KCB Group.

NMG, KCB Group, East African Breweries (EABL), Kenya Airways and Jubilee Holdings which are primarily listed on the NSE are also cross-listed on the Uganda Securities Exchange and the Dar es Salaam Stock Exchange.

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PATERNITY LEAVE: MEN VALUE IT, BUT ARE CONFLICTED

Most professional men place an incredible value on paternity leave, according to two new studies. But why are some men so reluctant to take it ?

Most dads think a man should get respect for taking a few days off after his child is born. Many also think the operative phrase there is "a few days," a new TODAY survey shows.

Researchers say Americans' conflicted views over paternity leave are a potent symbol of how tough it is to figure out what it means to be a good man, and a good dad, these days. That became evident two months ago, when New York Mets' player Daniel Murphy sparked a national debate by taking a few days of paternity leave.

"The definition of what is a real man is really very much still in flux," said Brad Harrington, executive director of the Boston College Center for Work & Family.

Harrington's new research, also released Monday, finds that most professional men place an incredible value on paternity leave. Nearly all-99 percent of the approximately 1,000 well-educated, white-collar dads the center studied-said companies should offer paid paternity leave.

Also, 60 percent of the dads, who all had at least one child under age 18, said paternity leave is a very or extremely important consideration when evaluating a new employer.

And yet, the Boston College study also showed that many of these professional men are wary of giving up their breadwinning duties to be home with their partner and child. About half said they would require to be paid in full to take their paternity leave.

Harrington said that shows that many families simply can't afford to have both mom and dad take time off to be parents without bringing in a paycheck. He noted that the United States is an outlier among both developed and developing countries in not offering paid maternity leave for new moms.

Read More More dads stay at home, not necessarily by choice

It's also further proof that dads are caught between their aspirations to share child care duties and their responsibility to provide financially.

"I think we're in a state of transition," he said. "We're clearly moving toward a much more engaged father-much more hands-on, much more likely to aspire to a shared caregiving ... but we aren't there yet," he said.

'I needed to be there for my family'

Lance Stewart, 37, is all too familiar with the conflicting duties of being a dad, husband and breadwinner.

A few years ago, his family was pushed to the brink of financial ruin when he was forced to quit his job after his wife suffered such severe postpartum depression that she had to be hospitalized.

"I just left the job that I loved because I needed to be there for my family," he said.

Stewart, had taken 10 days of vacation from his job in the IT industry following the birth of his second child. His wife, Jamie, needed gallbladder surgery directly after the birth, and complications left her with a difficult recovery.

Meanwhile, Stewart had to return to work because he didn't have any more paid leave, and his job required him to travel for up to six days at a time.

One day, Jamie said she called Lance at work.

"I said, 'You have to come home. You have to take me to the hospital," she said. "I was extremely suicidal at the time. I was really scared."

It took about a year for Jamie to get healthy again, and Lance said he wasn't able to keep his job and attend to the needs of his family. He took a job that paid less and didn't require any travel, but his hours were soon cut to almost nothing. The family ended up selling their possessions to stay afloat.

Read More Work-life balance is stressing us out-at home

Lance recently returned to the company he left when his wife got sick, and he is once again traveling up to six days a week. Jamie, 32, is doing well and is a stay-at-home mom to the couple's three children in League City, Texas.

Lance doesn't blame his employer for not having been able to give him more paid paternity leave during the family's dark period, because he said the small company just didn't have the resources to do so.

But, he said, if he had been able to take a longer paid paternity leave, it might have helped prevent the cascade of problems.

"That would have made the world of difference. I wouldn't have to have left the secure, stable job that was taking care of us," Lance said. "I could have taken care of my family and have the security of knowing that I had a job to come back to."

Stewart's case is extreme, but experts say that most dads don't have the luxury of taking very much time off after the birth of a child, and many appear conflicted about what the right balance is.

The TODAY survey, which included about 900 dads with kids under age 18, found that 70 percent of dads thought men should be respected for taking a paternity leave, but 37 percent of the same dads surveyed also said a man should be respected for going right back to work.

Read More Stay-at-home dads struggle to shake Mr. Mom image

The survey also found that 68 percent of dads who took paternity leave took two weeks or less, and most dads surveyed thought that amount of time was appropriate.

Harrington noted that most dads don't likely have much of a choice - very few dads have paid paternity leave.

"The idea that we're one major health issue from potentially ruining a family's situation is very real," Harrington said.

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TOP FIRM'S INVESTMENT BANKING BOSS FOCUSSED ON REDUCING COSTS

'Laser focussed' on reducing costs.

JPMorgan's new solo head of its investment bank said he would be 'laser focussed' on reducing costs as the industry is likely to face a tough couple of years in terms of growing revenues.

'For the next year or two the industry's top-line will probably struggle. The long-term trends are good, but in the short term we need to adjust to the new reality', said Daniel Pinto, chief executive of the corporate and investment bank (CIB) at JPMorgan Chase.

Reuters reports that rivals including Barclays and UBS are in the process of shrinking their investment banks in a bid to slash costs, after a slump in trading revenues over the past year and tougher regulations are forcing banks to hold more capital and making some areas unprofitable.

But Pinto, who took sole charge of CIB in March after running it for two years with Michael Cavanagh, said there would be no big change in strategy.

To access the complete Reuters article hit the link below:

JPM investment bank boss says 'laser focus' on costs cuts 

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EX-BNP PARIBAS MD SUES AFTER ALLEGEDLY BEING FIRED OVER RELIGIOUS BELIEFS

He claims that he was terminated for his religious beliefs after complaining about Nazi imagery in a training video.

An Orthodox Jew who was fired from his position as a Managing Director at BNP Paribas North America has sued the firm, saying he was terminated for his religious beliefs after complaining about Nazi imagery in a training video.

Reuters reports that the lawsuit was filed in Manhattan federal court by Jean-Marc Orlando, an Orthodox Jew who said he had worked for the bank for 18 years until he was terminated in May 2012. Orlando was a Managing Director in the bank's fixed-income division in New York, and had previously worked for the bank in France, the lawsuit said.

The lawsuit alleges that the company eventually fired Orlando from the New York office in a retaliatory move after he complained about a training video he and other managers were shown during a training session in Amsterdam in 2011.

The video, created by BNP employees, was a parody of the 2004 film Downfall, which depicted the final days of Adolf Hitler's Nazi regime in Germany, the lawsuit said. The film portrayed the head of BNP competitor Deutsche Bank as Hitler, the lawsuit said.

To access the complete Reuters article hit the link below:

Ex-director sues BNP Paribas NA, says he was fired over religion

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DAR ES SALAAM STOCK EXCHANGE MARKET REPORT FOR THE WEEK ENDING FRIDAY, 6 JUNE 2014

Today, DSE recorded a total turnover of TZS 104.33 mln from 72,126 shares traded in 59 deals compared to yesterday’s session which 

recorded a turnover of TZS 30.84 mln from 12,732 shares traded in 39 deals. 

CRDB counter had 43,600 shares traded at weighted average price of TZS 320 ex-dividend per share in 5 deals. NMB counter had 23,816 shares traded at weighted average price of TZS 3,360 ex-dividend per share in 32 deals. TBL counter had 100 shares traded at weighted average price of TZS 8,580 per share in 1 deal. NMG counter had 400 shares traded at weighted average price of TZS 3,100 per share in 2 deals. DCB counter had 6,236 shares traded at weighted average price of TZS 480 ex-dividend per share in 7 deals. SIMBA counter had 1,810 shares traded at weighted average price of TZS 2,380 per share in 3 deals. SWISSPORT counter had 400 shares traded at weighted average price of TZS 2,660 per share in 1 deal. TCC counter had 100 shares traded in 1 deal at average weighted price of TZS 10,100 per share.

Click here to read the full report, courtesy of DSE.

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DAR ES SALAAM STOCK EXCHANGE MARKET SUMMARY

MARKET SUMMARY

Indices	9 Jun 2014
TSI	3,236.06	+23.35
DSEI	2,076.04	+8.42

TRADING STATS

Market Cap (bln)	18,061.18
Equity Turnover	209,343,980.00
Total Volume	355,691
Total Deals	55

Top Movers

Company	Price	Volume
CRDB	315	262,303
TOL	500	75,031
NMB	3,400	6,957

GAINERS & LOSERS

Company	Price	Change
NMG	5,880	-0.68%
ABG	6,100	+1.16%
CRDB	315	-1.56%
KCB	930	+1.09%
JHL	6,670	+3.09%
EABL	5,290	-0.56%
KA	200	-4.76%
NMB	3,400	+1.19%
TWIGA	2,400	-1.64%
TBL	8,740	+1.86%

EXCHANGE RATES

Currency	Buying	Selling
EUR	2,240.27	2,263.01
USD	1,639.66	1,656.06
KES	18.75	18.92
GBP	2,758.90	2,786.98

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THE TZS/USD EXCHANGE RATE HAS FALLEN TO THE LOWEST LEVELS FOR 8 CONSECUTIVE WEEKS

The shilling suffered again this week against the dollar after failing to recover the exchange rate ground it lost for eight consecutive weeks.

The exchange rate has fallen to the lowest levels so far this year during the period with the Bank of Tanzania (BOT) indicative rate for dollar buyers being above Tshs 1,650 the whole week.

Poor performance for the ninth week was also largely due to the limited supply of the greenback against its high demand by mostly oil importers and manufacturers.

The shilling hit the all-time low on October 28, 2011 when buying dollars reached over Sh 1,800 in some outlets. BOT’s indicative rates for buying and selling the US currency on that day were Sh 1,667 and Sh 1,692 respectively.

According to BOT, shilling lost ground against the greenback on Monday, with large demand seen from the oil and manufacturing sectors. This demand is seen placing added pressure on the local currency in the near-term, although liquidity tightness in the shilling money market could tame the dollar rally.

“The Tanzania shilling closed the week on a weaker footing, trading at 1,656/1,692, as market sentiment remained bearish of the local currency,” NMB Bank said in a market report on Friday.

“Sizeable demand from the manufacturing sector is seen putting pressure on the shilling well into next week, although a reversal is likely as we progress closer to the quarter-end, tax-payment period,” it added.

BOT’s indicative rates for buying and selling the greenback on Friday were Sh 1,640 and Sh 1,657 respectively. They were Sh 1,636 and Sh 1,652 last week and Sh 1,637 and Sh 1,654 on Monday.

Some banks had quoted it at Sh 1,621 and Sh 1,717 on Wednesday. Others had it at Sh 1,622 and Sh 1,718 on Thursday and Sh 1,620 and Sh 1,725 on Tuesday. In money shops, the highest buying rate was Sh 1,690 and the lowest Sh 1,675.

Exim Bank said in its foreign exchange and money market report that the current depreciation of the shilling against the dollar is temporary and that would be offset by earnings from the tourism season that starts this month.

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TANZANIA TO PROMOTE INDUSTRIES

Tanzania Deputy Minister for Finance, Ms Janeth Mbene

The government has stressed its resolve to continue creating enabling environment for investors in the country as a requisite for sustainable development.

Speaking at the fifth anniversary since the establishment of Mazava Fabrics Produce, the Deputy Minister for Industries and Trade, Ms Janeth Mbene said that investment and especially manufacturing sub sector was one of the government’s priorities.

Mazava Fabrics Produce licenced in Tanzania by the Export Processing Zones Authority (EPZA) is part of the Winds Group. The Morogoro based Mazava Fabrics Produce deals with sports and corporate wear manufacturing.

“We will continue to create enabling environment and support manufacturing industries in the country for the mutual benefit of both sides,” she said.

Since its establishment in 2009, Tanzania exports to the United States through the Africa Growth Opportunity Act (AGOA) arrangement have considerably increased to the value of 8 million dollars up from 3 million dollars per annum.

AGOA is a legislation that was approved by the US Congress in May 2000 with a purpose to assist the economies of sub-Saharan Africa and to improve economic relations between the United States and the region.

“I would like to commend them for the job well done since they started operations,” Ms Mbene told journalists over the weekend in the event held in Dar es Salaam.

Mazava produce various sports wear such as football, baseball, athletics and exports mainly to the United States. The Deputy Minister urged other manufacturers to work hard and smarter to meet required standards for exports and local consumption.

The EPZA Director General, Dr Adelhelm Meru, said the sports textile factory has been able to invest USD 7 million since its establishment.

“This is a significant investment,” he said, adding that the factory has increased employment from 1,000 people five years ago to 2,100 this year.

Dr Meru explained that the factory plans to expand in EPZA area in Bagamoyo district, Coast region, to increase production and exports.

He urged cotton farmers in the country to increase production that will be utilised by the factory and vocational training centres to continue train youths who will be able to be absorbed by the factory.

On his part, the Founder and Chief Executive Officer (CEO) of Winds Group, Mr Urban Geiwald said he was relieved to witness the fifth anniversary of the factory in Tanzania and was looking forward for the best.

In Africa, the Group also operates in Madagascar and Mauritius.

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TANZANIA KEEN ON DAR PORT EXPANSION PROGRAMME

Tanzania Minister for Transport, Dr Harrison Mwakyembe

The government through the Ministry of Transport has allocated land that will be used as a dry port to serve land-locked countries using Dar es Salaam port.

The decision to allocate 160 hectares of land along Mandela Expressway in Dar es Salaam aims at increasing efficiency of the port.

The Minister for Transport, Dr Harrison Mwakyembe, revealed this over the weekend when talking in a meeting to finalise the tour of a delegation of government and business representatives from the Province of Katanga in the Democratic Republic of Congo (DRC).

The delegation led by Katanga Province Vice Governor, Mr Guibert Tshibal and its Transport Minister, Mr Laurent Kahozi Sumba was on a five-day tour in the country as a way of strengthening bilateral trade relations between Tanzania and DR Congo.

Dr Mwakyembe told journalists that part of that land has been apportioned for DRC business community. “We are doing this as part of strengthening our port and business relations with our neighbours,” he said.

DRC is the second largest transit user of the port of Dar es Salaam accounting for 25 per cent of the total transit traffic. DRC traffic has been increasing at an average of 24 per cent per annum since 2004 from 155,611 tons and reached 1,117,249 tonnes in 2013.

While in the country the DRC delegation visited the designated area and the port of Dar es Salaam among other places. The Minister explained that the joint technical committee formed by members between the two countries has agreed to deal with all barriers hampering business between them.

On his part, Mr Kahozi Sumba hailed the government for taking measures to improve services at the port. “We will increase traffic through this port,” he said.

He said that since the port is the main gateway for DRC, its improvement means a lot to the people of his Province and DRC at large.

The Acting Director General of Tanzania Ports Authority (TPA), Eng. Madeni Kipande noted that the two parties agreed to have a list of recommended clearing and forwarding companies in each country so as to avoid theft and other unnecessary problems.

“Having the list of trustworthy companies will help running the business smoothly for the benefit of all countries,” he said. Also agreed was to establish a dry port at Kasumbalesa, at the DRC-Zambia border to solve congestion problem and ease transportation of goods.

Mr Tshibal hailed Dr Mwakyembe and the government at large for efforts to revamp transport sector in Tanzania. “Dr Mwakyembe is a treasure for Tanzania…he is a man of action,” the Vice Governor said.

He noted that they will honour and work on all agreed matters for the benefit of all countries and business development.

The DRC delegation tour follows the one by their counterparts in Tanzania who visited Katanga Province in early May this year where a TPA liaison office was opened in Lubumbashi town.

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TANZANIANS TO DIG DEEPER INTO THEIR POCKETS IN $12B BUDGET

Tanzania households and businesses are bracing themselves for higher taxes, as the Treasury seeks funds to finance an expanded budget to be unveiled on Thursday.

The government has raised the budget ceiling, from Tsh18.2 trillion ($11.3 billion) to Tsh19.4 trillion ($12.2 billion) for the next financial year as it seeks to offset dependence on donors to finance its economic plans.

Out of the total budget, Tsh14.2 trillion ($8.8 billion) is to finance recurrent expenditure while Tsh5.4 trillion ($3.3 billion) will be allocated for development projects, according to Finance Minister Saada Mkuya.

An increase in taxes and introduction of new ones will increase the burden on the already overtaxed taxpayers, unless the government moves to widen the tax base.

The government will also have to borrow heavily to meet its recurrent and development obligations.

During budget sessions, a number of ministers reported that they did not receive all the money allocated for their dockets for 2013/14.

But Ms Mkuya said the government would ensure all the monies allocated for the ending budget would be disbursed before the end of the month.

She said the government was optimistic that the gap in 2013/14 budget would be filled through the availability of foreign loans and capital gain tax revenue from Ophir, Shoprite and Vodacom.

Priority expenditure areas for 2014/15 financial year will fall in line with sectors outlined in the Big Results Now (BRN) initiative, which are water, education, agriculture, health, infrastructure and energy.

The minister announced that the state would use private learning institutions to provide education to students in Form Five and Six.

The State Minister in the President’s Office, Stephen Wassira, told a pre-budget session last month that the government would also bank on contributions from the private sector for execution of some plans.

Following pressure from the MPs, the government has also agreed to reduce tax exemptions to at least 1 per cent of GDP. Last week, the government tabled a Bill seeking to amend some financial laws, notably on the area of tax exemptions.

In East Africa, Tanzania has the highest rate of tax exemptions, above 2.5 per cent of its GDP.

Ms Mkuya said the law on VAT that is presently pegged at 18 per cent of the product value will also be amended to contribute more to the state coffers. Plans are also underway to introduce a Budget Act as a way of instilling a sense of financial accountability and boosting revenue collections.

Budget figures given by the government earlier show that it plans to collect Tsh19.9 trillion ($12.4 billion) out of which Tsh11.7 trillion ($7.3 billion) will be local revenues. Tax revenue will account for Tsh10.9 trillion ($6.8 billion).

Non-tax revenue will account for Tsh722.7 billion ($451.2 million) and Tsh377.9 billion ($236.2 million) will be raised by Local Government Authorities from their own sources. Some Tsh3.7 trillion ($2.3 billion) is expected from development partners in form of grants and concessional loans.

To fill the gap, the government plans to borrow Tsh4 trillion ($2.5 billion).

Commenting on the budget outlook, Dr Lunogela Bohelo of the Economic and Social Research Foundation (ESRF) noted that the government would succeed in its budget proposals if it focused on long term plans to improve infrastructure.

“Improvement of water, electricity and roads will attract many investors and this will, in turn, spur economic growth,” he said.

He gave the government a thumbs-up for its rural electrification as well as improvement of rural roads initiatives noting that will enable the majority of Tanzanians to participate in economic activities.

But a professor of economics from the University of Dar es Salaam, Haji Semboja, noted that the budget has been drafted like many others that have come a year before election.

“In the recent past we have seen a tendency of expenditure outpacing revenue collections. This was mooted as a way of stimulating economic activities but the problem is that we don’t collect more as we spend,” he said.

On whether the budget would enable the private sector to play its role as the engine of the economy, Prof Semboja noted that it depends on which sectors receive the government money.

“About 70 per cent of the budget will go to procurement, and government procures from the private sector. But it depends on, first, which private sector receives the money and second, how that private sector is organised to reinvest that money,” he said.

He said people should not expect any tangible changes through this budget because the government’s priorities have remained virtually the same and new initiatives such as much touted BRN, would not introduce any drastic changes if the government continues doing things the same way.

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