A UK think-tank, Economist Intelligence Unit (EIU), has warned that the popularity of President Jakaya Kikwete’s government will likely suffer if prosecutions of high-level corruption cases do not happen sooner rather than later.
’’Although forced upon him by circumstances, the decision by the President, Jakaya Kikwete, to undertake a major cabinet reshuffle in February (and a mini-reshuffle in May) has given his popularity a boost, after his government seemed to be losing steam in the second half of 2007,’’ says the EIU’s latest country report on Tanzania.
The report cautions: ’’...despite the cabinet reshuffles, the continuing lack of a high-level prosecution means that the president has been unable to shake off the issue of corruption and demonstrate that he is not beholden to powerful factions within the (ruling Chama Cha Mapinduzi) CCM.’’
’’Moreover, allegations of corruption about senior members of the party (CCM) continue to circulate, creating a wider sense of crisis over the issue.’’
The EIU is part of The Economist Group, which has organized a business roundtable conference scheduled for Dar es Salaam next month.
The conference was recently thrown into controversy after the organizers declared businessman Yusuf Manji as one of the key players shaping Tanzania’s future.
Manji has since been forced to withdraw from the conference following growing public criticism of his involvement.
The EIU, which is a research and advisory company, says the recent Cabinet reshuffles have given President Kikwete the opportunity to announce a ’leaner and meaner’ cabinet and one that seems, to the public, ’’less beholden to powerful forces within the ruling party, Chama Cha Mapinduzi (CCM).’’
’’Mr Kikwete has also been able to present the resignation of the former prime minister, Edward Lowassa, and the earlier sacking of the governor of the Bank of Tanzania (BoT) as evidence that he is committed to fighting high-level corruption,’’ says the report.
’’Combined with the public perception of him as a dynamic individual with a popular touch, these developments place Mr Kikwete in a strong political position.’’
The EIU also sensationally declares that there is a campaign against former President Benjamin Mkapa within CCM.
The report says the ’’political whispering’’ against Mkapa gathered pace in recent weeks, when the former First Lady, Anna Mkapa, along with the former Chancellor of Mzumbe University, Ibrahim Kaduma, were named as owners of financial services company, Bayport Financial Services.
’’The key point of the saga is not that Mrs Mkapa or Bayport have done anything wrong, which seems unlikely; rather, following the corruption allegations that had been circulating in the Bunge, it indicates a growing anti-Mkapa campaign within the CCM,’’ says the report, adding: ’’Whether the (anti-Mkapa) campaign escalates further will only become apparent over time, but it is likely to fade away unless a major case with sufficient evidence, and few links to the current government, is found.’’
Other concerns about Kikwete’s presidency outlined by the UK think-tank include perceptions that the president ’’spends considerable time travelling overseas.’’
The report says high inflation rate in the first half of 2008, notably rising food and fuel prices, has raised questions over the government’s failure to act promptly and effectively.
According to the report, Kikwete is also suffering from the fact that, having centralized power around himself and his advisers, the government’s ability to make important decisions in his absence seems somewhat limited.
In its political outlook for 2008/09, the report cites the Zanzibar political situation as another area of concern.
’’It had seemed in mid-March that the ongoing muafaka talks between the CCM and the opposition Civic United Front (CUF) had reached an agreement on some form of power-sharing government. However, the CCM on Zanzibar rejected the deal, arguing that it could be ratified only by a referendum, something the CUF is deeply opposed to,’’ says the report.
It adds: ’’Although a breakthrough is possible, ’notably if the referendum is organized by an independent body, rather than by the Zanzibar Electoral Commission,’ this would probably require Mr Kikwete to intervene directly in the dispute, something he has been reluctant to do.’’
The report also notes that pressure on the CUF leadership from hard-liners seeking a radical solution will increase.
However, given the strong police and army presence on Zanzibar, any violent protests are likely to be defused quickly, says the report.
Saturday, October 25, 2008
Tuesday, October 21, 2008
Danish Queen to visit Tanzania
Her Majesty Queen Margret the II of Demmark and his Royal Highness Prince Consort will visit Tanzania on November 3 at the invitation of President Jakaya Kikwete.
The focus of the historic four-day state visit will be on development cooperation, investment opportunities and culture.
Since the earlier days of its independence Tanzania has enjoyed what many see as a �true friendship" with the Danish Government.
A business delegation of more than 40 companies will accompany Her Majesty and His Royal Highness. The companies mainly deal with agriculture and food, information technology and communication, industry and agriculture as well as infrastructure.
The companies, both small and medium, will try to line up with Tanzania counterparts in business.
The Danish ambassador to Tanzania, Mr Bjarne Sorensen, said he was very optimistic that the Danish companies will bring in not only capital but also markets for Tanzania businesses.
"It is my sincere hope that the visit will cater for many new business relations, investment opportunities and job creation," Mr Sorensen told journalists yesterday.
He continued: "Today our bilateral ties are focused on development assistance. I'm convinced that the state visit will also amplify the understanding on the importance of inter-cultural dialogue and the promotion of interaction between people in general and between our two peoples in particular." The ambassador said the visit signifies the long lasting friendship between the two nations.
Accompanying the royal couple is a delegation of 20 artistes. They will perform together with Tanzanian artistes and exchange ideas so as to strengthen cultural ties between Denmark and Tanzania.
On November 3, President Kikwete will officially welcome the Royal Couple at a ceremony to be held at Karimjee Hall in Dar es Salaam.
Later on the same day, the Royal Couple will attend the opening of a business seminar for Tanzanians and Danish business partners.
They are also scheduled to inaugurate cultural activities and participate in an open air concert in Dar es Salaam.
A famous Danish singer, Caroline Henderson, will perform together with Tanzania's up-and-coming star, Nakaaya and an established artiste, Banana Zorro.
The ambassador said the Royal Couple will also visit Morogoro to witness the success of development cooperation between Denmark and Tanzania. While there they will visit Dakawa village, the Tanzania Tree Seed Agency and Sokoine University of Agriculture.
The visit to Zanzibar will acquaint the Royal Couple with Danish support to the heath sector on the Island. They will also experience the cultural heritage of Stone Town.
The final leg of the state visit will be in Arusha where the Queen and her husband will visit a training centre for development cooperation and go to Ngorongoro where they will visit the Maasai village of Oloirobi.
The total Danish assistance to Tanzania is expected to amount $91 million annually until the end of the Joint Assistance Strategy in 2011
The focus of the historic four-day state visit will be on development cooperation, investment opportunities and culture.
Since the earlier days of its independence Tanzania has enjoyed what many see as a �true friendship" with the Danish Government.
A business delegation of more than 40 companies will accompany Her Majesty and His Royal Highness. The companies mainly deal with agriculture and food, information technology and communication, industry and agriculture as well as infrastructure.
The companies, both small and medium, will try to line up with Tanzania counterparts in business.
The Danish ambassador to Tanzania, Mr Bjarne Sorensen, said he was very optimistic that the Danish companies will bring in not only capital but also markets for Tanzania businesses.
"It is my sincere hope that the visit will cater for many new business relations, investment opportunities and job creation," Mr Sorensen told journalists yesterday.
He continued: "Today our bilateral ties are focused on development assistance. I'm convinced that the state visit will also amplify the understanding on the importance of inter-cultural dialogue and the promotion of interaction between people in general and between our two peoples in particular." The ambassador said the visit signifies the long lasting friendship between the two nations.
Accompanying the royal couple is a delegation of 20 artistes. They will perform together with Tanzanian artistes and exchange ideas so as to strengthen cultural ties between Denmark and Tanzania.
On November 3, President Kikwete will officially welcome the Royal Couple at a ceremony to be held at Karimjee Hall in Dar es Salaam.
Later on the same day, the Royal Couple will attend the opening of a business seminar for Tanzanians and Danish business partners.
They are also scheduled to inaugurate cultural activities and participate in an open air concert in Dar es Salaam.
A famous Danish singer, Caroline Henderson, will perform together with Tanzania's up-and-coming star, Nakaaya and an established artiste, Banana Zorro.
The ambassador said the Royal Couple will also visit Morogoro to witness the success of development cooperation between Denmark and Tanzania. While there they will visit Dakawa village, the Tanzania Tree Seed Agency and Sokoine University of Agriculture.
The visit to Zanzibar will acquaint the Royal Couple with Danish support to the heath sector on the Island. They will also experience the cultural heritage of Stone Town.
The final leg of the state visit will be in Arusha where the Queen and her husband will visit a training centre for development cooperation and go to Ngorongoro where they will visit the Maasai village of Oloirobi.
The total Danish assistance to Tanzania is expected to amount $91 million annually until the end of the Joint Assistance Strategy in 2011
Zimbabwe official wants to portray "true" political situation
HARARE, Oct. 21 (Xinhua) -- The head of the Zimbabwean delegation to the forthcoming Pan African Parliament's 10th Ordinary Session Joram Gumbo has said they will portray the true political situation in the country to counter exaggerations peddled by the hostile Western media, The Herald reported on Tuesday.
The PAP session, which begins this weekend, would discuss hot spots in Africa that include Sudan, Somalia and Kenya while Zimbabwe's March and June polls would be among subjects to be tabled for discussion, according to the state-owned newspaper's report.
PAP endorsed this year's March 29 harmonized elections but said the June 27 presidential run-off fell short of meeting continental standards.
Other members of the delegation include President of the Chiefs Council, Chief Fortune Charumbira and Mufakose Member of the House of Assembly, Ms Paurina Mpariwa.
Gumbo said he would go to Midrand, South Africa, the venue of the session, to tell the Zimbabwean story and not as what it has been portrayed by the hostile foreign media.
"We are going to give the true Zimbabwean situation and not what has been painted by CNN, BBC and SABC who do not really understand neither do they know what is really happening here," he said.
Gumbo is also ZANU-PF chief whip in Parliament and Mberengwa West Member of the House of Assembly.
"Zimbabwe held its elections in March and June and PAP sent its election observer team and this is why it would be on the agenda," he said.
Gumbo said the Zimbabwean delegation would apprise the continental body about the discussions aimed at constituting an inclusive government between ZANU-PF and the MDC formations.
He said this clearly demonstrated that there was no crisis in the country as Zimbabweans were capable of resolving their differences.
Some countries were facing worse problems than what Zimbabwe is experiencing, said Gumbo.
"Our situation is not the worst. There are worse situations than ours but people want to focus more on us because of our history, because we took away land and give it to black majority," he was quoted as saying.
Gumbo said it was critical that the local media take a robust stance in telling the Zimbabwean story. "Our problem is that our story is told by others," he said.
Head of PAP election observer team to Zimbabwe, Marwick Khumalois expected to table a report on the country's elections.
The PAP session, which begins this weekend, would discuss hot spots in Africa that include Sudan, Somalia and Kenya while Zimbabwe's March and June polls would be among subjects to be tabled for discussion, according to the state-owned newspaper's report.
PAP endorsed this year's March 29 harmonized elections but said the June 27 presidential run-off fell short of meeting continental standards.
Other members of the delegation include President of the Chiefs Council, Chief Fortune Charumbira and Mufakose Member of the House of Assembly, Ms Paurina Mpariwa.
Gumbo said he would go to Midrand, South Africa, the venue of the session, to tell the Zimbabwean story and not as what it has been portrayed by the hostile foreign media.
"We are going to give the true Zimbabwean situation and not what has been painted by CNN, BBC and SABC who do not really understand neither do they know what is really happening here," he said.
Gumbo is also ZANU-PF chief whip in Parliament and Mberengwa West Member of the House of Assembly.
"Zimbabwe held its elections in March and June and PAP sent its election observer team and this is why it would be on the agenda," he said.
Gumbo said the Zimbabwean delegation would apprise the continental body about the discussions aimed at constituting an inclusive government between ZANU-PF and the MDC formations.
He said this clearly demonstrated that there was no crisis in the country as Zimbabweans were capable of resolving their differences.
Some countries were facing worse problems than what Zimbabwe is experiencing, said Gumbo.
"Our situation is not the worst. There are worse situations than ours but people want to focus more on us because of our history, because we took away land and give it to black majority," he was quoted as saying.
Gumbo said it was critical that the local media take a robust stance in telling the Zimbabwean story. "Our problem is that our story is told by others," he said.
Head of PAP election observer team to Zimbabwe, Marwick Khumalois expected to table a report on the country's elections.
South Africa, Botswana in talks on military cooperation
JOHANNESBURG. Oct. 21 (Xinhua) -- Military cooperation between South Africa and Botswana will be high on the agenda at a four-day meeting between the two countries that starts in Cape Town on Tuesday.
The Joint Permanent Commission on Defense and Security (JPCDS) would also look at cooperation between the two countries to combat firearms and drug smuggling, and human trafficking, South Africa's defense ministry said in a statement on Monday.
Defense Minister Charles Nqakula and his Botswana counterpart, Dikgakgamatso Seretse, would lead their respective delegations at the 8th session of the JPCDS, which first met in 2000.
"It is further expected to discuss plans and security arrangements to ensure a successful hosting by South Africa of the2010 FIFA World Cup Soccer Tournament," the ministry said.
The Joint Permanent Commission on Defense and Security (JPCDS) would also look at cooperation between the two countries to combat firearms and drug smuggling, and human trafficking, South Africa's defense ministry said in a statement on Monday.
Defense Minister Charles Nqakula and his Botswana counterpart, Dikgakgamatso Seretse, would lead their respective delegations at the 8th session of the JPCDS, which first met in 2000.
"It is further expected to discuss plans and security arrangements to ensure a successful hosting by South Africa of the2010 FIFA World Cup Soccer Tournament," the ministry said.
Thai former PM Thaksin sentenced 2-year imprisonment
Thailand's Supreme Court Criminal Division for Holders of Political Positions pronounced on Tuesday a two-year sentence on a land purchase scandal against former Prime Minister Thaksin Shinawatra.
Thaksin is the first Thai prime minister who was adjudicated of imprisonment by the court.
The reading of the verdict started at 2:00 p.m. local time, while the former prime minister and his wife Khunying Potjaman were both absent. The Supreme Court ruled against Thaksin after reading the verdict for about two hours.
Thaksin was ousted in a September 2006 coup and is now in exile in Britain. The Supreme Court ruled 5 to 4 to say that former Prime Minister Thaksin Shinawatra knew about the land purchase by his wife from the Financial Institutions Development Fund (FIDF).
The court ruled that with the knowledge, Thaksin also carried out actions that constituted conflict of interest on part of Thaksin as a state official.
The jail term was given without suspension. However, because Thaksin is currently living in London of Britain, an arrest warrant was also issued for him.
The court ruled 7 to 2 to clear Thaksin's wife of all charges, citing that she was not a state official. Therefore the court revoked an arrest warrant on her of this trial.
Thaksin was found guilty of violating articles 4, 100 and 122 of the National Counter Corruption Commission Law which bars holders of public office and their spouses from entering into a contract with the state.
Before reaching the verdict, the Supreme Court said the Assets Examination Committee had the power to probe the Ratchadaphisek land case against Thaksin and his wife.
The Supreme Court ruled that the Financial Institutions Development Fund is a state agency so there is ground for trial in the Ratchadaphisek land case against Thaksin and his wife.
The court ruled down an agreement of Thaksin's defense team that the FIDF is not under state administration and that the Ratchadaphisek land purchase did not fall under Article 100 (3) of the National Counter Corruption Act, which covers state agencies.
Since the court ruled that the FIDF is state agency, the land purchase fell under the anti-graft act.
Immediately after the sentence, Thaksin spoke by telephone to the Reuters that he was not surprised, and had expected the jail term.
"I have been informed of the result. I had long anticipated that it would turn out this way," he was quoted as saying, adding that the case was politically motivated.
Anti-government group People's Alliance for Democracy (PAD) supporters at the Government House compound they have occupied since late August cheered loudly at the verdict.
Earlier, the government spokesman said the verdict would not cause any change to the current political situation because Thaksin no longer had a role in Thai politics.
The Supreme Court accepted the land case for trial in July 2007after which arrest warrants were issued for Thaksin and his wife, who were then residing in exile in Britain.
On Jan. 8, 2008, Khunying Potjaman returned to Thailand to report herself to the court and was released on bail. Then, Thaksin came back to Thailand and denied all charges during a court hearing on March 11, 2008.
On Aug. 11, both defendants jumped bail, while the court continued its hearings in absentia. The court was earlier scheduled to deliver its verdict on Sept. 17, but it was postponed to Oct. 21.
Thaksin is the first Thai prime minister who was adjudicated of imprisonment by the court.
The reading of the verdict started at 2:00 p.m. local time, while the former prime minister and his wife Khunying Potjaman were both absent. The Supreme Court ruled against Thaksin after reading the verdict for about two hours.
Thaksin was ousted in a September 2006 coup and is now in exile in Britain. The Supreme Court ruled 5 to 4 to say that former Prime Minister Thaksin Shinawatra knew about the land purchase by his wife from the Financial Institutions Development Fund (FIDF).
The court ruled that with the knowledge, Thaksin also carried out actions that constituted conflict of interest on part of Thaksin as a state official.
The jail term was given without suspension. However, because Thaksin is currently living in London of Britain, an arrest warrant was also issued for him.
The court ruled 7 to 2 to clear Thaksin's wife of all charges, citing that she was not a state official. Therefore the court revoked an arrest warrant on her of this trial.
Thaksin was found guilty of violating articles 4, 100 and 122 of the National Counter Corruption Commission Law which bars holders of public office and their spouses from entering into a contract with the state.
Before reaching the verdict, the Supreme Court said the Assets Examination Committee had the power to probe the Ratchadaphisek land case against Thaksin and his wife.
The Supreme Court ruled that the Financial Institutions Development Fund is a state agency so there is ground for trial in the Ratchadaphisek land case against Thaksin and his wife.
The court ruled down an agreement of Thaksin's defense team that the FIDF is not under state administration and that the Ratchadaphisek land purchase did not fall under Article 100 (3) of the National Counter Corruption Act, which covers state agencies.
Since the court ruled that the FIDF is state agency, the land purchase fell under the anti-graft act.
Immediately after the sentence, Thaksin spoke by telephone to the Reuters that he was not surprised, and had expected the jail term.
"I have been informed of the result. I had long anticipated that it would turn out this way," he was quoted as saying, adding that the case was politically motivated.
Anti-government group People's Alliance for Democracy (PAD) supporters at the Government House compound they have occupied since late August cheered loudly at the verdict.
Earlier, the government spokesman said the verdict would not cause any change to the current political situation because Thaksin no longer had a role in Thai politics.
The Supreme Court accepted the land case for trial in July 2007after which arrest warrants were issued for Thaksin and his wife, who were then residing in exile in Britain.
On Jan. 8, 2008, Khunying Potjaman returned to Thailand to report herself to the court and was released on bail. Then, Thaksin came back to Thailand and denied all charges during a court hearing on March 11, 2008.
On Aug. 11, both defendants jumped bail, while the court continued its hearings in absentia. The court was earlier scheduled to deliver its verdict on Sept. 17, but it was postponed to Oct. 21.
Sarkozy: World does not need Europe-Russia conflict
BRUSSELS, Oct. 21 (Xinhua) -- French President Nicolas Sarkozy told the European parliament Tuesday that the world does not need a crisis between Europe and Russia.
"Given the state of the world today, I don't believe the world needs a crisis between Europe and Russia," Sarkozy told a plenary session of the parliament in Strasbourg, France.
"We can defend our differences, human rights, but it would be irresponsible to create the conditions for a conflict for which we have no need," he said.
"Europe brought about peace...and Europe has brought about dialogue," he added.
Sarkozy, whose country currently holds the rotating EU presidency, brokered a ceasefire between Georgia and Russia in August after a brief military conflict between the two countries.
"It strikes me that it's been a long time since Europe has played this kind of role," he said.
The EU suspended negotiations with Russia because of the war with Georgia, citing "disproportionate action" by the Russians.
After Russia withdrew its troops from buffer zones around Georgia's breakaway regions of Abkhazia and South Ossetia, France, together with Germany, Italy and some other EU members, pushed for a resumption of the talks on a new agreement of cooperation and partnership with Moscow.
However, Poland, Britain and the Baltic nations, which proposed an " audit" of EU-Russia relations, opposed any hasty move.
"Given the state of the world today, I don't believe the world needs a crisis between Europe and Russia," Sarkozy told a plenary session of the parliament in Strasbourg, France.
"We can defend our differences, human rights, but it would be irresponsible to create the conditions for a conflict for which we have no need," he said.
"Europe brought about peace...and Europe has brought about dialogue," he added.
Sarkozy, whose country currently holds the rotating EU presidency, brokered a ceasefire between Georgia and Russia in August after a brief military conflict between the two countries.
"It strikes me that it's been a long time since Europe has played this kind of role," he said.
The EU suspended negotiations with Russia because of the war with Georgia, citing "disproportionate action" by the Russians.
After Russia withdrew its troops from buffer zones around Georgia's breakaway regions of Abkhazia and South Ossetia, France, together with Germany, Italy and some other EU members, pushed for a resumption of the talks on a new agreement of cooperation and partnership with Moscow.
However, Poland, Britain and the Baltic nations, which proposed an " audit" of EU-Russia relations, opposed any hasty move.
Thursday, October 16, 2008
RC DRILLING CONTINUES TO INTERSECT HIGH GRADE URANIUM MINERALISATION IN TANZANIA
Western Metals Limited (ASX:WMT) is pleased to announce that RC drilling in Southern Tanzania has been completed for 2008. The results received are encouraging and have continued to return significant high grade uranium intercepts. Mtonya - As of 15
th
September a total of 171 RC holes for 10,670m had been completed in
Southern Tanzania from the 2008 drilling programme. Of these, 152 holes for 9,288m were drilled into prospects along the Mtonya Corridor, including the recently discovered Grandfather Prospect. Results from this drilling continue to define and confirm tenor of mineralisation. New and previously unreported significant intercepts from the assay results received to date from 2008 RC drilling include:
For more please go to:
http://newsstore.smh.com.au/apps/previewDocument.ac?docID=GCA00891167WMT
th
September a total of 171 RC holes for 10,670m had been completed in
Southern Tanzania from the 2008 drilling programme. Of these, 152 holes for 9,288m were drilled into prospects along the Mtonya Corridor, including the recently discovered Grandfather Prospect. Results from this drilling continue to define and confirm tenor of mineralisation. New and previously unreported significant intercepts from the assay results received to date from 2008 RC drilling include:
For more please go to:
http://newsstore.smh.com.au/apps/previewDocument.ac?docID=GCA00891167WMT
SA minister calls for HIV vaccine
South Africa's new Health Minister, Barbara Hogan, has called for a renewed global effort to find a vaccine for HIV, which can lead to Aids.
Ms Hogan said it was unquestionable that HIV caused Aids and conventional medicines were the best treatment.
This comes in sharp contrast to her predecessor, Manto Tshabalala-Msimang, who spent years resisting the introduction of anti-retroviral drugs.
Some 5.5 million South Africans have HIV - more than in any other country.
Dr Tshabalala-Msimang earned the nickname "Dr Beetroot" for advocating healthy eating, as an alternative to ARV drugs.
Without directly criticising her predecessor, Ms Hogan told an international Aids vaccine conference in Cape Town on Monday that time had been wasted in the country's battle against Aids.
It was, she added, imperative that HIV prevention programmes were successful.
Ms Hogan's appointment as health minister has been welcomed by anti-Aids campaigners.
'Breath of fresh air'
"We know that HIV causes Aids," Ms Hogan said.
"It was imperative to get ahead of the curve of this epidemic 10 years ago. We all have lost ground. It's even more imperative now that we make HIV prevention work. We desperately need an effective HIV vaccine."
Commenting on her speech, Alan Bernstein, executive director of the Global HIV Vaccine Enterprise, said she was "a breath of fresh air".
Malegapuru Makgoba, vice-chancellor and principal of the University of KwaZulu-Natal, said that for the first time in years, South African academics were free to "state that HIV causes Aids without getting threats".
"It is a liberating experience," he said at the conference. "You don't know how long we suffered in bondage."
Former President Thabo Mbeki for many years suggested that HIV did not lead to Aids.
He resigned last month and his successor Kgalema Motlanthe quickly moved to name a new health minister.
Ms Hogan said it was unquestionable that HIV caused Aids and conventional medicines were the best treatment.
This comes in sharp contrast to her predecessor, Manto Tshabalala-Msimang, who spent years resisting the introduction of anti-retroviral drugs.
Some 5.5 million South Africans have HIV - more than in any other country.
Dr Tshabalala-Msimang earned the nickname "Dr Beetroot" for advocating healthy eating, as an alternative to ARV drugs.
Without directly criticising her predecessor, Ms Hogan told an international Aids vaccine conference in Cape Town on Monday that time had been wasted in the country's battle against Aids.
It was, she added, imperative that HIV prevention programmes were successful.
Ms Hogan's appointment as health minister has been welcomed by anti-Aids campaigners.
'Breath of fresh air'
"We know that HIV causes Aids," Ms Hogan said.
"It was imperative to get ahead of the curve of this epidemic 10 years ago. We all have lost ground. It's even more imperative now that we make HIV prevention work. We desperately need an effective HIV vaccine."
Commenting on her speech, Alan Bernstein, executive director of the Global HIV Vaccine Enterprise, said she was "a breath of fresh air".
Malegapuru Makgoba, vice-chancellor and principal of the University of KwaZulu-Natal, said that for the first time in years, South African academics were free to "state that HIV causes Aids without getting threats".
"It is a liberating experience," he said at the conference. "You don't know how long we suffered in bondage."
Former President Thabo Mbeki for many years suggested that HIV did not lead to Aids.
He resigned last month and his successor Kgalema Motlanthe quickly moved to name a new health minister.
Tanzania at extremely alarming level of hunger, Index reveals
Tanzania is among 33 countries in the world, which has extremely alarming levels of hunger. The 2008 Global Hunger Index indicates that the Democratic Republic of Congo scored the worst, followed by Eritrea, Burundi, Niger, Sierra Leone, Liberia and Ethiopia. According to the index released by the International Food Policy Research Institute (IFPRI) in conjunction with Welthungerhilfe and Concern Worldwide, the index ranks countries according to the prevalence of child malnutrition, rates of child mortality and the proportion of people who are calories deficient. The global Hunger Index has been released for the World Food Day which is marked today (October 16). IFPRI Director General Joachim von Braun said the world has made only slow progress in reducing hunger in past decades with dramatic differences among countries and regions. ``Population and income growth, high energy prices, bio-fuels, science and technology, climate change, globalisation and urbanisation are introducing drastic changes to food consumption, production and markets. ``The current financial crisis complicates the picture. It actually brings some short-term relief for hungry people, as it contributes to reduced commodity prices. But the credit crunch makes access to capital difficult, including for agriculture and that adds another obstacle for overcoming the food crisis.`` Braun said. He said IFPRI recommends three areas for high-priority policy actions to address the current food crisis and improve the long-term functioning of the world food system which are productivity and research, nutrition and social protection markets and trade. He noted that governments and the global community should begin to correct previous failures in agricultural policy by investing in agriculture and food production, setting up reliable systems for assisting the most vulnerable people in a timely way, and establishing a fair global trading system and a conductive investment environment.
Most of G7 in recession, more rate cuts ahead
G7 =Canada,France,German,Italy,Japan,United Kingdom, and United States
G8=G7 + Russia
LONDON (Reuters) - The world's richest nations are in or close to recession and further interest rate cuts are needed to stem off more rot from the worst financial crisis in nearly 80 years, Reuters polls of economists showed on Thursday.
Particularly worrying in a quarterly survey of about 250 analysts across the Group of Seven nations is the sharp deterioration in the outlook for the United States, which until very recently was seen only flirting with recession.
Now the consensus view is that the world's largest economy will shrink for three successive quarters, last seen in 1974-75. That, say economists, will require the Federal Reserve to cut rates even lower than their already rock-bottom 1.50 percent.
The polls were taken after governments across the G7 nationalized swathes of the ailing banking sector and after the world's major central banks slashed interest rates in unison in an unprecedented move that even involved China.
Central banks are still flooding money markets with billions of dollars in temporary cash and dropping restrictions on access to funds but banks remain very reluctant to lend to each other and market rates are coming down only gradually.
This leaves the world economy in its most dangerous spot in a very long time, say economists, who have all but abandoned concerns over inflation given the rapid falls in asset prices and a halving in crude oil prices in just a few months.
"With GDP in rapid decline, we look for recessionary conditions to produce a rapid rise in unemployment and worsening corporate profits," said Peter Kretzmer, U.S. economist at Bank of America in New York.
"The downturn is also being felt around the world."
The latest Reuters polls marked the largest downgrades to growth across the G7, with the exception of Japan, since June last year. Since the polls closed, U.S. and Asian stock markets staged their biggest falls since the crash of October 1987, but this time not on fears for the banking system.
Now financial markets and economists are fretting in unison about a global recession and the damage that would do to consumer and company balance sheets, setting the stage for higher unemployment and shrinking profits.
INFLATION FALL A BRIGHT SPOT
Given the conclusion that recession is now probably gripping almost the entire developed world, it is tough to find positive news in the latest set of polls. Even the consensus that Canada will escape recession, although barely, is clearly at risk given its huge exposure to the U.S. economy.
With the exception of Japan, where growth and inflation are already weak as the country has only recently emerged from more than a decade of deflation, full-year growth expectations for 2009 have been chopped in half or even more compared with the most recent previous poll.
The consensus for Britain is outright contraction next year and four straight quarters of negative GDP, which started in the second quarter of this year. That has not happened since 1991-92.
"The silver lining is that with monetary policy able and hopefully willing to respond more aggressively than was the case back then, the recession will be shorter," said Andrew Brigden at Fathom Consulting in London.
"But much depends on how quickly the UK housing market stabilizes, and equally as importantly, on how quickly global credit markets reopen."
That could as easily be said for the United States as for economies on this side of the Atlantic given that there are no signs yet of the end to an historic property market rout.
The Bank of England and the European Central Bank have come under harsh criticism this year for not cutting rates swiftly and aggressively as the Federal Reserve started to do more than a year ago at the outset of the credit crunch.
But inflation targets that have restricted them from doing so seem no longer the constraint they were. The polls show inflation is set to fall below the BoE's 2.0 percent target by the end of next year -- far from the 5.2 percent it clocked last month.
Inflation will fall to the European Central Bank's 2.0 ceiling again by the first quarter of 2010, according to median forecasts, and the latest figure of 3.6 percent is on a clear downtrend.
But that comes at a heavy price, with the first recession since monetary union for the now 15-member bloc and a grim outlook for its three largest economies, Germany, France and Italy.
Inflation is coming down in the United States as well, with the 2009 U.S. CPI view downgraded for the first time since February.
(Polling by Bangalore Polling Unit; Reporting by Wanfeng Zhou in New York, Tetsushi Kajimoto in Tokyo, Nigel Davies and Jonathan Cable in London, Cirsten Pahlke and Paul Carrel in Berlin, Brian Rohan in Paris, Viviana Venturi in Milan, Robin Pomeroy in Rome, Frank Pingue and Teresa Ruiz in Toronto; Editing by Ruth Pitchford )
G8=G7 + Russia
LONDON (Reuters) - The world's richest nations are in or close to recession and further interest rate cuts are needed to stem off more rot from the worst financial crisis in nearly 80 years, Reuters polls of economists showed on Thursday.
Particularly worrying in a quarterly survey of about 250 analysts across the Group of Seven nations is the sharp deterioration in the outlook for the United States, which until very recently was seen only flirting with recession.
Now the consensus view is that the world's largest economy will shrink for three successive quarters, last seen in 1974-75. That, say economists, will require the Federal Reserve to cut rates even lower than their already rock-bottom 1.50 percent.
The polls were taken after governments across the G7 nationalized swathes of the ailing banking sector and after the world's major central banks slashed interest rates in unison in an unprecedented move that even involved China.
Central banks are still flooding money markets with billions of dollars in temporary cash and dropping restrictions on access to funds but banks remain very reluctant to lend to each other and market rates are coming down only gradually.
This leaves the world economy in its most dangerous spot in a very long time, say economists, who have all but abandoned concerns over inflation given the rapid falls in asset prices and a halving in crude oil prices in just a few months.
"With GDP in rapid decline, we look for recessionary conditions to produce a rapid rise in unemployment and worsening corporate profits," said Peter Kretzmer, U.S. economist at Bank of America in New York.
"The downturn is also being felt around the world."
The latest Reuters polls marked the largest downgrades to growth across the G7, with the exception of Japan, since June last year. Since the polls closed, U.S. and Asian stock markets staged their biggest falls since the crash of October 1987, but this time not on fears for the banking system.
Now financial markets and economists are fretting in unison about a global recession and the damage that would do to consumer and company balance sheets, setting the stage for higher unemployment and shrinking profits.
INFLATION FALL A BRIGHT SPOT
Given the conclusion that recession is now probably gripping almost the entire developed world, it is tough to find positive news in the latest set of polls. Even the consensus that Canada will escape recession, although barely, is clearly at risk given its huge exposure to the U.S. economy.
With the exception of Japan, where growth and inflation are already weak as the country has only recently emerged from more than a decade of deflation, full-year growth expectations for 2009 have been chopped in half or even more compared with the most recent previous poll.
The consensus for Britain is outright contraction next year and four straight quarters of negative GDP, which started in the second quarter of this year. That has not happened since 1991-92.
"The silver lining is that with monetary policy able and hopefully willing to respond more aggressively than was the case back then, the recession will be shorter," said Andrew Brigden at Fathom Consulting in London.
"But much depends on how quickly the UK housing market stabilizes, and equally as importantly, on how quickly global credit markets reopen."
That could as easily be said for the United States as for economies on this side of the Atlantic given that there are no signs yet of the end to an historic property market rout.
The Bank of England and the European Central Bank have come under harsh criticism this year for not cutting rates swiftly and aggressively as the Federal Reserve started to do more than a year ago at the outset of the credit crunch.
But inflation targets that have restricted them from doing so seem no longer the constraint they were. The polls show inflation is set to fall below the BoE's 2.0 percent target by the end of next year -- far from the 5.2 percent it clocked last month.
Inflation will fall to the European Central Bank's 2.0 ceiling again by the first quarter of 2010, according to median forecasts, and the latest figure of 3.6 percent is on a clear downtrend.
But that comes at a heavy price, with the first recession since monetary union for the now 15-member bloc and a grim outlook for its three largest economies, Germany, France and Italy.
Inflation is coming down in the United States as well, with the 2009 U.S. CPI view downgraded for the first time since February.
(Polling by Bangalore Polling Unit; Reporting by Wanfeng Zhou in New York, Tetsushi Kajimoto in Tokyo, Nigel Davies and Jonathan Cable in London, Cirsten Pahlke and Paul Carrel in Berlin, Brian Rohan in Paris, Viviana Venturi in Milan, Robin Pomeroy in Rome, Frank Pingue and Teresa Ruiz in Toronto; Editing by Ruth Pitchford )
Ugandans ban female circumcision
A community in eastern Uganda has banned the deeply rooted practice of female genital mutilation (FGM), an official has said.
Kapchorwa district chairman Nelson Chelimo said it was "outmoded" and "not useful" for the community's women.
The Sabiny are the only group in Uganda that practises FGM, which involves cutting off a young girl's clitoris.
Mr Chelimo said the council had submitted legislation to parliament for the ban to become law nationwide.
"The community decided that it was not useful, that women were not getting anything out of it, so the district council decided to establish an ordinance banning it," Mr Chelimo told AFP news agency.
He said there was a local belief that women who married without circumcision would be stricken by illness, but that this was "really outmoded".
FGM is seen in some countries as a way to ensure virginity and to make a woman marriageable.
In Africa, about three million girls are at risk of FGM each year, according to the UN.
UN agencies have called for a major reduction in the practice by 2015.
They say it leads to bleeding, shock, infections and a higher rate of death for new-born babies.
Kapchorwa district chairman Nelson Chelimo said it was "outmoded" and "not useful" for the community's women.
The Sabiny are the only group in Uganda that practises FGM, which involves cutting off a young girl's clitoris.
Mr Chelimo said the council had submitted legislation to parliament for the ban to become law nationwide.
"The community decided that it was not useful, that women were not getting anything out of it, so the district council decided to establish an ordinance banning it," Mr Chelimo told AFP news agency.
He said there was a local belief that women who married without circumcision would be stricken by illness, but that this was "really outmoded".
FGM is seen in some countries as a way to ensure virginity and to make a woman marriageable.
In Africa, about three million girls are at risk of FGM each year, according to the UN.
UN agencies have called for a major reduction in the practice by 2015.
They say it leads to bleeding, shock, infections and a higher rate of death for new-born babies.
Somali group threatens to attack Kenya
MOGADISHU, Oct. 15 (Xinhua) -- A Somali Islamist group on Wednesday said it would attack Kenya if the country does not rescind its decision to train Somali government forces.
Sheik Muqtar Robow Abu Mansuur, spokesman for the Islamist Al-Shabaab group, threatened that the group would carry out attacks inside Kenya if the southwestern neighbor does not stop "interfering in Somalia."
"We heard that Kenya wants to train 10,000 Somali government forces, we can understand that is a pretext to wrongly invade our country," Abu Mansuur said in a telephone news briefing for local reporters.
"Peace (between us) is in the interest of both of us (Kenya and Al-Shabaab), so leave us alone but if you come to our country, the peace you purport to have would vanish."
This statement from the Al-Shabaab fighters in Somalia came days after media reports indicated that the Kenyan government plans to help train nearly 10,000 Somali government security forces.
Abu Mansuur said that his group would "humiliate Kenya and like Ethiopia" and "defend Somalia in any way possible". But he did not elaborate.
Al-Shabaab is accused by the United States of having links with Al-Qaida and of being involved in the 1998 bombing of U.S. embassy in Kenya.
The group, one of the major Somali insurgent factions, controls a number of important provinces in the south of Somalia particularly the two Jubba regions and a number of districts in Gedo at the border with Kenya.
Editor: Mu Xuequan
Sheik Muqtar Robow Abu Mansuur, spokesman for the Islamist Al-Shabaab group, threatened that the group would carry out attacks inside Kenya if the southwestern neighbor does not stop "interfering in Somalia."
"We heard that Kenya wants to train 10,000 Somali government forces, we can understand that is a pretext to wrongly invade our country," Abu Mansuur said in a telephone news briefing for local reporters.
"Peace (between us) is in the interest of both of us (Kenya and Al-Shabaab), so leave us alone but if you come to our country, the peace you purport to have would vanish."
This statement from the Al-Shabaab fighters in Somalia came days after media reports indicated that the Kenyan government plans to help train nearly 10,000 Somali government security forces.
Abu Mansuur said that his group would "humiliate Kenya and like Ethiopia" and "defend Somalia in any way possible". But he did not elaborate.
Al-Shabaab is accused by the United States of having links with Al-Qaida and of being involved in the 1998 bombing of U.S. embassy in Kenya.
The group, one of the major Somali insurgent factions, controls a number of important provinces in the south of Somalia particularly the two Jubba regions and a number of districts in Gedo at the border with Kenya.
Editor: Mu Xuequan
China, Pakistan sign 10-plus deals as Zardari makes first Beijing trip
BEIJING, Oct. 15 (Xinhua) -- China and Pakistan on Wednesday signed more than 10 deals ranging from trade and minerals to agriculture and satellites.
The package of agreements came out of a two-hour summit at Beijing's Great Hall of the People as China rolled out the red carpet for Pakistan President Asif Ali Zardari, who is on his first state visit to the country since taking office in September.
The package of agreements came out of a two-hour summit at Beijing's Great Hall of the People as China rolled out the red carpet for Pakistan President Asif Ali Zardari, who is on his first state visit to the country since taking office in September.
Zardari was welcomed by President Hu Jintao and received a 21-gun military salute at the Tian'anmen Square, festooned with the national flags of China and Pakistan.
During the meeting, Hu reviewed the close bilateral ties, particularly the days of the Bhutto family.
"Your entire family are old friends of the Chinese people," Hu told Zardari. "We will never forget the outstanding contribution Benazir Bhutto and Zulfikar Ali Bhutto had made to boosting ties with China."
Zardari's late wife, Benazir Bhutto, was assassinated in December 2007, and her late father, Zulfikar Ali Bhutto, had also served as Pakistan president.
While reviewing the 57-year-old diplomatic ties, Hu attributed its sound and smooth growth to the leadership of the two nations, among others.
He said China had always given priority to its relation with Pakistan, an important neighbor and strategic partner.
Zardari said he was grateful for "the warm welcome that you have shown us and the love and affection that I can feel from across the aisle."
"The only way I could do justice to the memory of my late wife and father-in-law was to make sure that I made my first presidential trip to China," the 53-year-old said.
"I am hoping to assist the Pakistan-China relationship and take it further along. It's a duty history has bestowed upon me."
On the economic front, Hu said the two countries were enjoying robust cooperation in economy and trade. They should continue to implement their free-trade pact, five-year trade program and other joint deals.
He also proposed the two nations create new areas and explore new ways of cooperation. "China and Pakistan should vigorously boost border trade so as to bring more substantive benefits to their citizens."
Zardari said the two should carry out big projects and work more closely in infrastructure, transport, environmental protection and finance, among others.
The two leaders agreed to step up people-to-people exchanges and cooperation in culture, education, health and journalism.
Hu thanked Pakistan for its support on issues concerning Taiwan and Tibet. He also appreciated Pakistani efforts in backing Beijing's hosting of the Olympic Games.
Zardari reaffirmed Pakistan's adherence to the one-China policy and support of China's peaceful reunification,
They also agreed on enhancing coordination and collaboration on international and regional issues, cooperating on addressing global challenges and ensuring peace, stability and development in the world.
As part of his four-day trip, Zardari is also scheduled to meet with other Chinese leaders, including top legislator Wu Bangguo, Premier Wen Jiabao and top advisor Jia Qinglin on Thursday.
During the meeting, Hu reviewed the close bilateral ties, particularly the days of the Bhutto family.
"Your entire family are old friends of the Chinese people," Hu told Zardari. "We will never forget the outstanding contribution Benazir Bhutto and Zulfikar Ali Bhutto had made to boosting ties with China."
Zardari's late wife, Benazir Bhutto, was assassinated in December 2007, and her late father, Zulfikar Ali Bhutto, had also served as Pakistan president.
While reviewing the 57-year-old diplomatic ties, Hu attributed its sound and smooth growth to the leadership of the two nations, among others.
He said China had always given priority to its relation with Pakistan, an important neighbor and strategic partner.
Zardari said he was grateful for "the warm welcome that you have shown us and the love and affection that I can feel from across the aisle."
"The only way I could do justice to the memory of my late wife and father-in-law was to make sure that I made my first presidential trip to China," the 53-year-old said.
"I am hoping to assist the Pakistan-China relationship and take it further along. It's a duty history has bestowed upon me."
On the economic front, Hu said the two countries were enjoying robust cooperation in economy and trade. They should continue to implement their free-trade pact, five-year trade program and other joint deals.
He also proposed the two nations create new areas and explore new ways of cooperation. "China and Pakistan should vigorously boost border trade so as to bring more substantive benefits to their citizens."
Zardari said the two should carry out big projects and work more closely in infrastructure, transport, environmental protection and finance, among others.
The two leaders agreed to step up people-to-people exchanges and cooperation in culture, education, health and journalism.
Hu thanked Pakistan for its support on issues concerning Taiwan and Tibet. He also appreciated Pakistani efforts in backing Beijing's hosting of the Olympic Games.
Zardari reaffirmed Pakistan's adherence to the one-China policy and support of China's peaceful reunification,
They also agreed on enhancing coordination and collaboration on international and regional issues, cooperating on addressing global challenges and ensuring peace, stability and development in the world.
As part of his four-day trip, Zardari is also scheduled to meet with other Chinese leaders, including top legislator Wu Bangguo, Premier Wen Jiabao and top advisor Jia Qinglin on Thursday.
Wednesday, October 15, 2008
Angry Teachers Clash With Police Over Stoppage Order
Riot police yesterday fired in the air to rescue Tanzania Teachers Union officials who came under attack by angry colleagues protesting against the cancellation of their strike that was scheduled to start today. TTU president Gratian Mukoba and the secretary general Yahya Msulwa were whisked away to safety in a police Land Rover amid a hail of missiles including stones and water bottles thrown at them. But efforts by the law enforcers could not stop hundreds of angry teachers from causing extensive damage by smashing furniture at the Diamond Jubilee Hall, the venue of the acrimonious meeting. "Why the heavy police presence. We are not criminals," shouted a sobbing woman teacher. She said teachers in the country have been marginalised, insulted and exploited for many years and were now fed up. "Enough is enough," she shouted. They also vandalised vehicles belonging to the union officials that were packed outside the meeting venue that was turned into a war zone. Some teachers pelted police officers with water bottles. Some teachers lay in the middle of the street to show their anger. Teachers' officials drawn form all over the country had met to plan today's strike. They arrived in the city before the Government won an urgent court injunction barring the strike action. But teachers vowed to press on with the strike despite the court order. The fracas started when Mr Mukoba attempted to persuade the teachers to obey the court order that stopped their strike. Chanting teachers jeered him and one snatched the microphone from the master of ceremony to declare they will not turn back. The TTU officials were branded traitors before a rain of bottles and chairs began flying around. The police arrived immediately to bring the situation under control. The teachers are demanding payment of Sh16 billion in allowance arrears and want the Government to implement a host of other demands. But Judge William Mandia of the Labour Division of the High Court on Monday halting the planned strike. TTU have lodged a counter appeal which comes up for hearing later this week. Meanwhile, teachers in Mwanza said they would proceed with the strike action today irrespective of the court order. Meeting in Shinyanga yesterday, the teachers said they will not be cowed by threats of sacking from education or regional government authorities. They said they will stay out of classrooms and suffer the consequences until the State addressed their plight, urging union leaders not to turn back. The said the strike could only be called off after a vote by the more than 2,500 teachers. "Teachers in Mwanza are set to strike today and expects their leaders to be in the frontline," a male teacher who wished not to be named said. Mwanza TTU chairman John Kafimbi who addressed the angry teachers, said the union agreed with them. He asked the teachers to meet today at Ghand Hall in the morning to chart the way forward. "The Government owes public servants about Sh23 billion out of which Sh16 billion is for teachers alone. This shows how insensitive our leaders are," the TTU official said. Lake zone Research and Academic Workers Union (Raawu) secretary general Ramadhan Mwendwa said teachers' demands will not come easily and asked members to be ready to suffer for it. Additional reporting by Paulina David in Mwanza.
Tuesday, October 14, 2008
Monday, October 13, 2008
Markets surge as govts unveil crisis packages
WASHINGTON (AFP) - Governments around the world launched multi-pronged attacks on the financial crisis Monday, sparking record gains on stock markets amid hopes of recovery in the humbled banking sector.
After spiralling relentlessly downwards in the last few weeks, stocks reacted to trillion-dollar rescue packages in Europe and news that the US would soon buy stakes in banks as part of its 700-billion-dollar bailout plan.
Frenetic meetings by world powers in Washington over the weekend, where finance chiefs pledged to protect the financial system and work together, had also helped restore confidence, dealers said.
"The market was encouraged by financial news on a number of fronts," said Al Goldman, an analyst at US brokerage Wachovia Securities.
The rescue package announced by Germany alone included 400 billion euros (545 dollars) in loan guarantees and 80 billion euros in fresh capital, while France said it would guarantee up to 320 billion euros of lending between banks.
Austria, the Netherlands, Italy and Spain also announced measures to help their lenders.
Australia's central bank pumped more money into the country's financial system and the Japanese government said it was considering guaranteeing all bank deposits.
Stock markets, which had failed to rally after the US announced its bailout plan last month, soared amid the deluge of announcements which included more details from Britain on its part-nationalisation of several leading banks.
On Wall Street, the leading Dow Jones Industrial Average closed with a gain of some 11 percent London FTSE 100 index of leading shares jumped 8.26 percent.
Markets in Paris, Frankfurt and Hong Kong posted gains of more than 10 percent, while the Saudi market, the largest in the Arab world, closed up 9.5 percent.
"We have had our first significant bounce in the markets for some time now," City Index market strategist Joshua Raymond said in London. "(But) it's a dangerous time to start believing we have hit a bottom in the markets."
Over the weekend, finance ministers from G7 rich countries and G20 emerging powers held emergency meetings in Washington in a bid to find a solution to the financial crisis.
The International Monetary Fund head had issued a chilling warning on Saturday that global financial system had been brought "to the brink of systemic meltdown."
Leaders from the 15 eurozone nations agreed the outline of the measures at the emergency summit in Paris on Sunday.
In addition to setting up funds to buy into banks, the model foresees money being set aside to guarantee interbank lending and free up credit markets that have been left reeling by the US subprime mortgage crisis.
In Washington on Monday, US President George W. Bush vowed to pursue "responsible, decisive action to restore credit and stability and return to vigorous growth" as he met Italian Prime Minister Silvio Berlusconi.
Meanwhile Neel Kashkari, the US Treasury's pointman on the massive bailout, said Washington was ready to buy equity in a "broad array" of financial institutions in a further bid to restore confidence.
"As with the other programs, the equity purchase program will be voluntary and designed with attractive terms to encourage participation from healthy institutions," he added.
Announcing details of the German rescue package Monday, Chancellor Angela Merkel said the measures being taken would only work if they were accompanied by improved international regulation that would end "market excesses."
"Today's measures are the first element of a new financial market charter ... but it can only be worthy of the name if it is followed by a second element, namely a change in international rules," she said after her cabinet approved the package.
French President Nicolas Sarkozy, who hosted a weekend summit for leaders of the 15-nation single currency eurozone, announced a 360-billion-euro rescue plan to pump capital into banks and underwrite loans between them.
France would guarantee up to 320 billion euros of interbank loans taken out until December 2009 and set aside up to 40 billion euros to recapitalize French banks, Sarkozy said.
"Money is not circulating anymore. We have to create the conditions to get it moving again," he said. "The greatest danger is not to take risks, it is to do nothing."
US economist Paul Krugman, who was awarded the Nobel Economics Prize on Monday, said he was "extremely terrified" by the crisis but his fears had been at least slightly allayed.
"I'm happier about it now than I was five days ago," said the Princeton University professor and New York Times columnist, a fierce critic of Bush's economic policy.
After spiralling relentlessly downwards in the last few weeks, stocks reacted to trillion-dollar rescue packages in Europe and news that the US would soon buy stakes in banks as part of its 700-billion-dollar bailout plan.
Frenetic meetings by world powers in Washington over the weekend, where finance chiefs pledged to protect the financial system and work together, had also helped restore confidence, dealers said.
"The market was encouraged by financial news on a number of fronts," said Al Goldman, an analyst at US brokerage Wachovia Securities.
The rescue package announced by Germany alone included 400 billion euros (545 dollars) in loan guarantees and 80 billion euros in fresh capital, while France said it would guarantee up to 320 billion euros of lending between banks.
Austria, the Netherlands, Italy and Spain also announced measures to help their lenders.
Australia's central bank pumped more money into the country's financial system and the Japanese government said it was considering guaranteeing all bank deposits.
Stock markets, which had failed to rally after the US announced its bailout plan last month, soared amid the deluge of announcements which included more details from Britain on its part-nationalisation of several leading banks.
On Wall Street, the leading Dow Jones Industrial Average closed with a gain of some 11 percent London FTSE 100 index of leading shares jumped 8.26 percent.
Markets in Paris, Frankfurt and Hong Kong posted gains of more than 10 percent, while the Saudi market, the largest in the Arab world, closed up 9.5 percent.
"We have had our first significant bounce in the markets for some time now," City Index market strategist Joshua Raymond said in London. "(But) it's a dangerous time to start believing we have hit a bottom in the markets."
Over the weekend, finance ministers from G7 rich countries and G20 emerging powers held emergency meetings in Washington in a bid to find a solution to the financial crisis.
The International Monetary Fund head had issued a chilling warning on Saturday that global financial system had been brought "to the brink of systemic meltdown."
Leaders from the 15 eurozone nations agreed the outline of the measures at the emergency summit in Paris on Sunday.
In addition to setting up funds to buy into banks, the model foresees money being set aside to guarantee interbank lending and free up credit markets that have been left reeling by the US subprime mortgage crisis.
In Washington on Monday, US President George W. Bush vowed to pursue "responsible, decisive action to restore credit and stability and return to vigorous growth" as he met Italian Prime Minister Silvio Berlusconi.
Meanwhile Neel Kashkari, the US Treasury's pointman on the massive bailout, said Washington was ready to buy equity in a "broad array" of financial institutions in a further bid to restore confidence.
"As with the other programs, the equity purchase program will be voluntary and designed with attractive terms to encourage participation from healthy institutions," he added.
Announcing details of the German rescue package Monday, Chancellor Angela Merkel said the measures being taken would only work if they were accompanied by improved international regulation that would end "market excesses."
"Today's measures are the first element of a new financial market charter ... but it can only be worthy of the name if it is followed by a second element, namely a change in international rules," she said after her cabinet approved the package.
French President Nicolas Sarkozy, who hosted a weekend summit for leaders of the 15-nation single currency eurozone, announced a 360-billion-euro rescue plan to pump capital into banks and underwrite loans between them.
France would guarantee up to 320 billion euros of interbank loans taken out until December 2009 and set aside up to 40 billion euros to recapitalize French banks, Sarkozy said.
"Money is not circulating anymore. We have to create the conditions to get it moving again," he said. "The greatest danger is not to take risks, it is to do nothing."
US economist Paul Krugman, who was awarded the Nobel Economics Prize on Monday, said he was "extremely terrified" by the crisis but his fears had been at least slightly allayed.
"I'm happier about it now than I was five days ago," said the Princeton University professor and New York Times columnist, a fierce critic of Bush's economic policy.
Bush critic Krugman wins 2008 Nobel for economics
STOCKHOLM (Reuters) - U.S. economist Paul Krugman, a fierce critic of the Bush administration for policies that he argues led to the current financial crisis, won the 2008 Nobel prize for economics on Monday.
The Nobel committee said the award was for Krugman's work that helps explain why some countries dominate international trade, starting with research published nearly 30 years ago.
A well-known economist who writes columns for the New York Times, Krugman has long featured among the favorites to win a Nobel. He is a professor of economics and international affairs at Princeton University in the United States.
Krugman, speaking by telephone to a news conference, was caught on the hop by the news.
"I rushed to take a shower so that I could take part in the press conference. I called my wife and I called my parents. I've not yet managed to get myself a cup of coffee," he said.
But lack of caffeine did not stop him offering an ad hoc diagnosis of how the world economy was faring.
"We are now witnessing a crisis that is as severe as the crisis that hit Asia in the 90's. This crisis bears some resemblance to the Great Depression."
Praising world leaders' efforts to staunch the financial bleeding, he added: "I'm slightly less terrified today than I was on Friday."
World policy makers met at the weekend, after a black Friday on financial markets, to agree radical measures to rescue banks, revive liquidity and tackle the risk of a global recession.
The prize committee dismissed any suggestion its choice was influenced by the current crisis or political considerations.
"I don't think the committee has ever taken a political stance," committee secretary Peter Englund told Reuters. "The real, dramatic crisis is an event of the last month or so, which is in practice after the committee took its decision."
Englund said Krugman was more than a great economist.
"Not only is he a stellar researcher ... but also he is an excellent expositor and that is clear both from textbooks but also, as many of you know, from his columns."
Krugman's latest column in the New York Times, published on Monday, praised Britain for thinking clearly and acting quickly to address the crisis, unlike the United States. He mused: Did British leader Gordon Brown just save world markets?
Britain unveiled a plan last week to bolster ailing banks and on Monday it waded in with 37 billion pounds ($64 billion) of capital, a move that could make the state their main owner.
TAKING BUSH TO TASK
Krugman has been heavily critical of U.S. President George W. Bush's administration, arguing its zeal for deregulation and loose fiscal policies helped spark the current banking meltdown.
The Royal Swedish Academy of Sciences said the prestigious 10 million crown ($1.4 million) award recognized Krugman's formulation of a new theory that addresses what drives worldwide urbanization.
"He has thereby integrated the previously disparate research fields of international trade and economic geography," the committee said.
"Krugman's approach is based on the premise that many goods and services can be produced more cheaply in a long series, a concept generally known as economies of scale," it said.
Krugman's theory clarifies why trade is dominated by countries that not only have similar conditions but also trade in similar products. The committee cited Sweden as an example as it both exports and imports cars.
Born in New York City in 1953, Krugman received a PhD at the Massachusetts Institute of Technology (MIT). He has taught at Princeton since 2000.
As well as writing for the New York Times, Krugman is the author of 20 books and more than 200 papers. He has taught at Yale, MIT and Stanford University. His current work centers on economic and currency crises.
The economics prize, officially called the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, was established in the late 1960s and is not part of the original group of awards set out in Alfred Nobel's 1895 will.
The Nobel committee said the award was for Krugman's work that helps explain why some countries dominate international trade, starting with research published nearly 30 years ago.
A well-known economist who writes columns for the New York Times, Krugman has long featured among the favorites to win a Nobel. He is a professor of economics and international affairs at Princeton University in the United States.
Krugman, speaking by telephone to a news conference, was caught on the hop by the news.
"I rushed to take a shower so that I could take part in the press conference. I called my wife and I called my parents. I've not yet managed to get myself a cup of coffee," he said.
But lack of caffeine did not stop him offering an ad hoc diagnosis of how the world economy was faring.
"We are now witnessing a crisis that is as severe as the crisis that hit Asia in the 90's. This crisis bears some resemblance to the Great Depression."
Praising world leaders' efforts to staunch the financial bleeding, he added: "I'm slightly less terrified today than I was on Friday."
World policy makers met at the weekend, after a black Friday on financial markets, to agree radical measures to rescue banks, revive liquidity and tackle the risk of a global recession.
The prize committee dismissed any suggestion its choice was influenced by the current crisis or political considerations.
"I don't think the committee has ever taken a political stance," committee secretary Peter Englund told Reuters. "The real, dramatic crisis is an event of the last month or so, which is in practice after the committee took its decision."
Englund said Krugman was more than a great economist.
"Not only is he a stellar researcher ... but also he is an excellent expositor and that is clear both from textbooks but also, as many of you know, from his columns."
Krugman's latest column in the New York Times, published on Monday, praised Britain for thinking clearly and acting quickly to address the crisis, unlike the United States. He mused: Did British leader Gordon Brown just save world markets?
Britain unveiled a plan last week to bolster ailing banks and on Monday it waded in with 37 billion pounds ($64 billion) of capital, a move that could make the state their main owner.
TAKING BUSH TO TASK
Krugman has been heavily critical of U.S. President George W. Bush's administration, arguing its zeal for deregulation and loose fiscal policies helped spark the current banking meltdown.
The Royal Swedish Academy of Sciences said the prestigious 10 million crown ($1.4 million) award recognized Krugman's formulation of a new theory that addresses what drives worldwide urbanization.
"He has thereby integrated the previously disparate research fields of international trade and economic geography," the committee said.
"Krugman's approach is based on the premise that many goods and services can be produced more cheaply in a long series, a concept generally known as economies of scale," it said.
Krugman's theory clarifies why trade is dominated by countries that not only have similar conditions but also trade in similar products. The committee cited Sweden as an example as it both exports and imports cars.
Born in New York City in 1953, Krugman received a PhD at the Massachusetts Institute of Technology (MIT). He has taught at Princeton since 2000.
As well as writing for the New York Times, Krugman is the author of 20 books and more than 200 papers. He has taught at Yale, MIT and Stanford University. His current work centers on economic and currency crises.
The economics prize, officially called the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, was established in the late 1960s and is not part of the original group of awards set out in Alfred Nobel's 1895 will.
Saturday, October 11, 2008
Indian firm shelves $500m soda ash project in Tanzania
THISDAY REPORTER & AGENCIES Dar es Salaam INDIA’S Tata Chemicals, which had planned to set up a controversial soda ash manufacturing plant, in joint venture with the Tanzanian government with an investment of around $500m, has decided to put the project on hold in the face of fierce opposition from environmentalists. ’’As far as we (Tata Chemicals) are concerned until they (Tanzania government) come back to us, we are not coming (to Tanzania),’’ Tata Chemicals Vice-Chairman R Gopalakrishnan is quoted as saying in latest media reports from India. Tata Chemicals had formed a joint venture ’Lake Natron Resources Ltd’ with the Tanzanian government for exploring the possibility of setting up a Soda-Ash manufacturing plant there which was opposed by environmentalists, who argued that the proposed plant may affect flamingos bird population there and affect the mineral balance of the Lake Natron. The Tanzanian government responded to it by shifting the location of the plant 35 kilometres away from the lake shore but the move was again opposed by the environmentalists as it comes under the Ramsar wetland area. ’’Tanzanian government invited us to come and prospect for soda ash in their Lake Norton Valley. So the joint venture was formed to investigate the possibility of doing so,’’ he said. Gopalakrishnan said Tata Chemicals would wait for the Tanzanian government to work on the opposition raised by environmentalists and get a clearance. ’’Otherwise we are not coming,’’ he added. The plant was put on hold last year and the government asked the Natron Resources to produce an environment management plan and consider other sites for soda ash extraction. The company has appointed Norconsult AS (Norway) to carry out a environmental and social impact study. According to Tata Chemicals Ltd together with officials of the state-run National Development Corporation (NDC), the initial environmental and social impact assessment (ESIA) report for the project had been discarded to pave way for a new assessment of the designated site. Lake Natron Resources Limited, a company jointly owned by the government of Tanzania and Tata Chemicals Limited of India, had proposed to develop a facility at Lake Natron to extract and process soda ash. But according to the chief executive officer and coordinator of the Wildlife Conservation Society of Tanzania (WCST), Lota Melamari, the project has the potential to damage and destroy the East African lesser Flamingo population through disrupting the birds� breeding at the lake. Located within the Longido and Ngorongoro Districts in Arusha Region and south of Kajiado District in Kenya, Lake Natron is the world’s most important breeding site for lesser Flamingos, accounting for 75 per cent of the global population. Globally there are between 2.2 to 3.3 million flamingos, with between 1.5 and 2.5 million located on East Africa�s Rift Valley lakes, said the WCST’s Melamari.
Experts: Oil discovery remains distant dream
Experts: Oil discovery remains distant dream
ALVAR MWAKYUSA Dar es Salaam SEVERAL months after Canada’s Artumas Group and the state-run Tanzania Petroleum Development Corporation (TPDC) publicly announced a significant discovery of high quality crude oil at Mnazi Bay area in Mtwara Region, there remains a mystery on whether or not actual commercial oil drilling will begin in the country. Artumas last year announced the discovery of hydrocarbons at Mnazi Bay, where it had drilled about 50 barrels for testing. According to exploration geologists, hydrocarbons are a good sign of the existence of oil. What is more, laboratory test results of the liquid hydrocarbons extracted by the company in the area last year established that there was high-quality crude oil in the area. The company said in a statement earlier this year that substantial crude oil potential has been observed in the Ruvuma basin lying midway between Tanzania and Mozambique. According to the announcement by Artumas Group Energy & Power, the Canadian-based parent company of Artumas Tanzania Limited, 50 barrels of liquid hydrocarbons from Mtwara Region had been sent abroad for evaluation. ’’In November (last year), Artumas successfully completed a $170m (over 170.025bn/-) financing enabling the next stage of exploration and development over the upcoming two years, with a proposed capital spending of $124m (approx. 124.018bn/-) on its upstream work programme for both Mozambique and Tanzania,’’ the company said. Artumas Tanzania Managing Director, Salvator Ntomola, told THISDAY in Dar es Salaam yesterday that his company was still carrying analysis by conducting seismic surveys of the area by drilling more wells to establish the amount of oil deposits. ’’The amount we discovered was of small quantities...the hydrocarbons are by-products of gas which is drilled at the area. Drilling oil is not like mining gold...there is heavy investment needed to drill the wells where it costs an average of $15m for a single well,’’ he said. Yet, Commissioner for Energy and Petroleum Affairs in the Ministry of Energy and Minerals, Eng. Bashir Mrindoko, made it clear yesterday that there are no traces of oil at the area so far. ’’There isn’t any discovery of oil for commercial value at present but more wells are still being drilled,’’ he told THISDAY in an interview. TPDC Managing Director, Yona Killagane, said during a news conference held at the Ministry of Energy and Minerals offices in Dar es Salaam late March, this year, that Artumas was studying whether there were enough reserves to warrant commercial exploitation. He was supported by the firm’s Chief Exploration Geologist, Herry Kajato, who said the company was still drilling more wells in the area to determine whether the oil deposits justify large investments required to commercially extract the commodity. ’’Hydrocarbons results from wells number 2, 3 and 4, which are licensed to Artumas, have showed positive results. However, in order to determine if the project is viable for commercial purposes, the company is currently undertaking further surveys and assessments,’’ said Kajato. He stated that after two months of assessment, the viability of the project for commercial purposes will be known. However, almost seven months after the announcement, the company is still said to be carrying analysis to establish commercial feasibility of the project. Artumas Group Chief Executive Officer, Stephen Mason, was quoted last year as saying that the 25,000-square kilometre land position that the company is operating in the Ruvuma basin is recognized as a ’highly potential deltaic basin’ and gives Artumas substantial room to run in growing its resource base. Artumas has also announced significant progress in power sales from its 12-megawatt Mtwara energy project increasing by 8.7 per cent over the second quarter average this year. An ’arranger agreement’ with Dutch FMO was completed to facilitate the financing of Artumas planned 300MW integrated power project also in Mtwara Region. FMO will act as arranger for two structured finance facilities for the power generation plant and the high-voltage transmission interconnect to the Tanzania grid, estimated at $225m and $400m respectively. Other Tanzanians, however, say it is perhaps a blessing in disguise that commercial oil drilling has not started in the country because of the fear of the so-called ’oil curse.’
ALVAR MWAKYUSA Dar es Salaam SEVERAL months after Canada’s Artumas Group and the state-run Tanzania Petroleum Development Corporation (TPDC) publicly announced a significant discovery of high quality crude oil at Mnazi Bay area in Mtwara Region, there remains a mystery on whether or not actual commercial oil drilling will begin in the country. Artumas last year announced the discovery of hydrocarbons at Mnazi Bay, where it had drilled about 50 barrels for testing. According to exploration geologists, hydrocarbons are a good sign of the existence of oil. What is more, laboratory test results of the liquid hydrocarbons extracted by the company in the area last year established that there was high-quality crude oil in the area. The company said in a statement earlier this year that substantial crude oil potential has been observed in the Ruvuma basin lying midway between Tanzania and Mozambique. According to the announcement by Artumas Group Energy & Power, the Canadian-based parent company of Artumas Tanzania Limited, 50 barrels of liquid hydrocarbons from Mtwara Region had been sent abroad for evaluation. ’’In November (last year), Artumas successfully completed a $170m (over 170.025bn/-) financing enabling the next stage of exploration and development over the upcoming two years, with a proposed capital spending of $124m (approx. 124.018bn/-) on its upstream work programme for both Mozambique and Tanzania,’’ the company said. Artumas Tanzania Managing Director, Salvator Ntomola, told THISDAY in Dar es Salaam yesterday that his company was still carrying analysis by conducting seismic surveys of the area by drilling more wells to establish the amount of oil deposits. ’’The amount we discovered was of small quantities...the hydrocarbons are by-products of gas which is drilled at the area. Drilling oil is not like mining gold...there is heavy investment needed to drill the wells where it costs an average of $15m for a single well,’’ he said. Yet, Commissioner for Energy and Petroleum Affairs in the Ministry of Energy and Minerals, Eng. Bashir Mrindoko, made it clear yesterday that there are no traces of oil at the area so far. ’’There isn’t any discovery of oil for commercial value at present but more wells are still being drilled,’’ he told THISDAY in an interview. TPDC Managing Director, Yona Killagane, said during a news conference held at the Ministry of Energy and Minerals offices in Dar es Salaam late March, this year, that Artumas was studying whether there were enough reserves to warrant commercial exploitation. He was supported by the firm’s Chief Exploration Geologist, Herry Kajato, who said the company was still drilling more wells in the area to determine whether the oil deposits justify large investments required to commercially extract the commodity. ’’Hydrocarbons results from wells number 2, 3 and 4, which are licensed to Artumas, have showed positive results. However, in order to determine if the project is viable for commercial purposes, the company is currently undertaking further surveys and assessments,’’ said Kajato. He stated that after two months of assessment, the viability of the project for commercial purposes will be known. However, almost seven months after the announcement, the company is still said to be carrying analysis to establish commercial feasibility of the project. Artumas Group Chief Executive Officer, Stephen Mason, was quoted last year as saying that the 25,000-square kilometre land position that the company is operating in the Ruvuma basin is recognized as a ’highly potential deltaic basin’ and gives Artumas substantial room to run in growing its resource base. Artumas has also announced significant progress in power sales from its 12-megawatt Mtwara energy project increasing by 8.7 per cent over the second quarter average this year. An ’arranger agreement’ with Dutch FMO was completed to facilitate the financing of Artumas planned 300MW integrated power project also in Mtwara Region. FMO will act as arranger for two structured finance facilities for the power generation plant and the high-voltage transmission interconnect to the Tanzania grid, estimated at $225m and $400m respectively. Other Tanzanians, however, say it is perhaps a blessing in disguise that commercial oil drilling has not started in the country because of the fear of the so-called ’oil curse.’
Thursday, October 9, 2008
Tanzania sees Eurobond next year after rating
LONDON (Reuters) - Tanzania expects a sovereign rating by March and will aim to issue a Eurobond but also fears a slight financial hit from the global economic crisis, a senior finance ministry official said on Wednesday.
Finance Ministry Commissioner for Policy Analysis Mugisha Kamugisha told Reuters the money borrowed would be used for infrastructure projects including transport, power and port facilities -- but that the Eurobond issue would be dependent on an improvement in global market conditions.
Ghana and Gabon last year became the first African countries outside South Africa to issue Eurobonds but issuance has been much reduced this year against the backdrop of the credit crunch, drying up completely in recent weeks as credit markets froze and economic turmoil worsened.
"We expect our rating by March next year," Kamugisha said on the sidelines of an investment conference in London. "The plan is then to have the bond issuance in the course of next year. We hope by then there will be calm in the markets. We have not yet decided how much it will be but probably more than $500 million."
Tanzania is among Africa's largest recipients of aid and received $336 million in debt relief from the International Monetary Fund under the Highly Indebted Poor Countries programme, helping it reached the point where it has been touted as one of Africa's more appealing frontier markets.
But with interest in emerging markets collapsing as Western investors dump any perceived risk from their portfolios and with Western governments forced to spend billions bailing out their own banks, Tanzania would feel a pinch from the economic crisis, he said.
"We think there will be an impact on overseas development aid, foreign direct investment and I'm also worried about tourism," he said. "We know that foreign governments will be using more of their own resources to stabilise their own financial systems."
Foreign aid made up 20 percent of Tanzania's budget and 10 percent of gross domestic product, he said, but still expected donors such as Britain's Department for International Development to meet existing commitments covering the next few years.
Tanzania still foresaw economic growth of more than 7 percent this year, he said, but now expected to not quite meet its previous prediction of 9.2 percent in 2009.
"But I would have thought we should still see maybe 8.7 percent," he said. "Certainly more than 8 percent. And we still hope for double digit growth in 2010."
Investor demand for gold as other assets crumbled in value would help support that part of the mining sector, he said, although it was only a small part of the wider economy.
Finance Ministry Commissioner for Policy Analysis Mugisha Kamugisha told Reuters the money borrowed would be used for infrastructure projects including transport, power and port facilities -- but that the Eurobond issue would be dependent on an improvement in global market conditions.
Ghana and Gabon last year became the first African countries outside South Africa to issue Eurobonds but issuance has been much reduced this year against the backdrop of the credit crunch, drying up completely in recent weeks as credit markets froze and economic turmoil worsened.
"We expect our rating by March next year," Kamugisha said on the sidelines of an investment conference in London. "The plan is then to have the bond issuance in the course of next year. We hope by then there will be calm in the markets. We have not yet decided how much it will be but probably more than $500 million."
Tanzania is among Africa's largest recipients of aid and received $336 million in debt relief from the International Monetary Fund under the Highly Indebted Poor Countries programme, helping it reached the point where it has been touted as one of Africa's more appealing frontier markets.
But with interest in emerging markets collapsing as Western investors dump any perceived risk from their portfolios and with Western governments forced to spend billions bailing out their own banks, Tanzania would feel a pinch from the economic crisis, he said.
"We think there will be an impact on overseas development aid, foreign direct investment and I'm also worried about tourism," he said. "We know that foreign governments will be using more of their own resources to stabilise their own financial systems."
Foreign aid made up 20 percent of Tanzania's budget and 10 percent of gross domestic product, he said, but still expected donors such as Britain's Department for International Development to meet existing commitments covering the next few years.
Tanzania still foresaw economic growth of more than 7 percent this year, he said, but now expected to not quite meet its previous prediction of 9.2 percent in 2009.
"But I would have thought we should still see maybe 8.7 percent," he said. "Certainly more than 8 percent. And we still hope for double digit growth in 2010."
Investor demand for gold as other assets crumbled in value would help support that part of the mining sector, he said, although it was only a small part of the wider economy.
Wednesday, October 8, 2008
TANESCO’S POWER SHEDDING BLUES: Songas to install new turbines
Two gas turbines capable of producing 35MW of electricity each could arrive today – and could be ready for on-site delivery tomorrow, in efforts to avert creeping power shedding in the city, it has been learnt. Messrs Songas placed an import order for the two gas turbines to replace defective ones shut down last month and the two new ones will get connected to the national grid by the end of this month, reliable sources told the 'Daily News' yesterday. Installation of the two gas turbine acquired on lease could take at least two weeks and a further week of commissioning, the sources said, adding that the utility firm, Tanesco, had been duly informed about these arrangements. The sources -- which declined to disclose costs of leasing the gas turbines – only said that one of them was from the Netherlands and the other from the United States. Songas was forced to import the two turbines because it does not know when two out of its three turbines which were grounded on September 22, this year, will return to service. The company grounded three gas turbines with a total capacity of 106MW last month, forcing the Tanzania Electric Supply Company Limited (Tanesco), to introduce power rationing last month -- before one of the 40-MW Songas turbines returned to service five days later. The sources said that the two defective gas turbines would be airlifted to yet an undisclosed destination and it was not immediately clear whether the two turbines would be repaired and later flown back to Dar es Salaam. Meanwhile, the Aggreko 20MW plant which developed some technical hiccups was resuscitated back to life last Tuesday night. According to a Tanesco statement yesterday, resumed power generation reduce the firm’s power deficit by at least 20MW. Tanesco announced earlier this week (Tuesday), that it was slapping back power rationing country-wide, following a sudden breakdown of the firm’s 100MW transformer at its Ubungo gas powered plant – causing a loss of 40MW. The 20MW Aggreko facility had also failed -- causing a further 60MW power deficit
Friday, October 3, 2008
Well done Tanzania
Last week, Tanzania eased restrictions on East African Community nationals working in that country. Tanzania has agreed that regional residents can stay in the country if they are employed or engaged in economically worthwhile activities. A high level task force from the partner states hammered out some of these concessions in an eight day meeting that ended last week in Bujumbura, Burundi. However, negotiations continue on issues of land acquisition, freedom of movement and establishment of business. Uganda and Rwanda lead the way in easing the movement of labour, goods and services through the region, which should be the case because both countries are only emerging out of conflict situations and recognise that they need help to reconstruct their economies. In Kenya and Tanzania, entrenched interests are keen to encourage protectionist policies to protect their turf. However, economic history shows that protectionist policies only work during the initial stages of building national industries but then become detrimental, dooming nationals of those protectionist states to expensive products produced by inefficient industries. Lowering of barriers is a useful weeding process and focuses nations on industries or enterprises in which they can build competitive advantage. Easing restrictions on movement and ownership of property between states encourages technology transfer and increases regional security. The opposition to this opening up — a knee jerk reaction born of worries that the richer nations will get a disproportionate benefit — are shortsighted and based on narrow self-interest. Freedom of movement across Europe has increased productivity, rationalised businesses and increased innovation. Fighting the natural course of things is like bashing ones head against a wall — it is injurious to the individual but leaves the wall largely undented. Tanzania has done the right thing and should be supported along with the other member countries in the region in overcoming the teething problems that will come with this transition.
Tanzania tea output seen 13 percent up in 2008/09
DAR ES SALAAM (Reuters) - Tanzania expects its tea harvest to rise by 13 percent year on year to 37 million kg in the year to June 2009 due to good weather and more plantings, the head of the country's Tea Board said on Friday.
"In 2007/08 we produced 32,698 tonnes. For the coming year, we are forecasting about 37,000 tonnes," Mathias Assenga, director general of Tea Board of Tanzania, told Reuters.
Assenga said he expects the country will earn $41 million in 2008/09 from the export of about 29 million kg of tea, up from $37 million in 2007/08 from the export of 26.9 million kg.
The east African nation, a comparatively smaller tea producer than northern neighbour Kenya, produced close to 35 million kg in 2006/07.
Assenga said production will also rise once the rehabilitation of some 2,000 hectares on estates in southern and northeastern Tanzania has been completed and at least three factories have been restored.
"These are now being developed. If these things go well and the weather conditions do not change, we can achieve that production," he said.
The board had forecast 2007/08 production at 35 million kg, but it fell short because of little rain in some areas.
In 2005/06 drought hit production, which topped just over 28 million kg, while the year previous it was 32 million kg.
Assenga said about 50 percent of Tanzania's tea exports were sold through an auction at the Kenyan port of Mombasa in 2007/08, while the rest was sold directly to buyers in South Africa, the United Kingdom and the Netherlands.
The east African economy has about 22,700 ha under tea, of which 11,300 ha are estates and the rest belongs to about 32,000 small-hold farmers, most of them owning less than 1 ha of land.
Tanzania plans to boost tea harvests to 44 million kg by 2010/11 by hiking the annual yield to 1,500 kg per ha from 800 kg currently for smallholder farmers and to 2,500 kg per hectare from just over 2,000 kg per hectare for estate farmers.
CHALLENGES
Among the challenges smallholder farmers face are expensive inputs and rigorous phytosanitary requirements, such as Maximum Residue Levels, needed for export to Europe.
Assenga said poor infrastructure, including roads that are impassable during rainy seasons when tea production is at its peak, was a big obstacle.
"That is the time the crop cannot be brought to the factory. Some of the farmers are forced to carry it on their heads and bring it to the factory," Assenga said.
The Tea Board chief said inadequate labour was another major issue and that some estates had started trials on mechanised tea harvesting to help combat the problem.
The country has 23 processing factories, of which 22 are private.
Most of Tanzania's tea is grown in the Usambara region in the North, and in southern areas bordering the Great Rift Valley and Lake Malawi.
The farms are in altitudes of between 900 metres and 2,300 metres and get annual rainfall of between 1,400 mm and 3,000 mm.
Assenga said that in 2008/09, the government planned to produce 10 million tea seedlings to distribute to farmers, up from 6.3 million plants handed out in the previous year.
"In 2007/08 we produced 32,698 tonnes. For the coming year, we are forecasting about 37,000 tonnes," Mathias Assenga, director general of Tea Board of Tanzania, told Reuters.
Assenga said he expects the country will earn $41 million in 2008/09 from the export of about 29 million kg of tea, up from $37 million in 2007/08 from the export of 26.9 million kg.
The east African nation, a comparatively smaller tea producer than northern neighbour Kenya, produced close to 35 million kg in 2006/07.
Assenga said production will also rise once the rehabilitation of some 2,000 hectares on estates in southern and northeastern Tanzania has been completed and at least three factories have been restored.
"These are now being developed. If these things go well and the weather conditions do not change, we can achieve that production," he said.
The board had forecast 2007/08 production at 35 million kg, but it fell short because of little rain in some areas.
In 2005/06 drought hit production, which topped just over 28 million kg, while the year previous it was 32 million kg.
Assenga said about 50 percent of Tanzania's tea exports were sold through an auction at the Kenyan port of Mombasa in 2007/08, while the rest was sold directly to buyers in South Africa, the United Kingdom and the Netherlands.
The east African economy has about 22,700 ha under tea, of which 11,300 ha are estates and the rest belongs to about 32,000 small-hold farmers, most of them owning less than 1 ha of land.
Tanzania plans to boost tea harvests to 44 million kg by 2010/11 by hiking the annual yield to 1,500 kg per ha from 800 kg currently for smallholder farmers and to 2,500 kg per hectare from just over 2,000 kg per hectare for estate farmers.
CHALLENGES
Among the challenges smallholder farmers face are expensive inputs and rigorous phytosanitary requirements, such as Maximum Residue Levels, needed for export to Europe.
Assenga said poor infrastructure, including roads that are impassable during rainy seasons when tea production is at its peak, was a big obstacle.
"That is the time the crop cannot be brought to the factory. Some of the farmers are forced to carry it on their heads and bring it to the factory," Assenga said.
The Tea Board chief said inadequate labour was another major issue and that some estates had started trials on mechanised tea harvesting to help combat the problem.
The country has 23 processing factories, of which 22 are private.
Most of Tanzania's tea is grown in the Usambara region in the North, and in southern areas bordering the Great Rift Valley and Lake Malawi.
The farms are in altitudes of between 900 metres and 2,300 metres and get annual rainfall of between 1,400 mm and 3,000 mm.
Assenga said that in 2008/09, the government planned to produce 10 million tea seedlings to distribute to farmers, up from 6.3 million plants handed out in the previous year.
Africa Focus: IMF lauds Kenya's economic recovery
NAIROBI, Oct. 3 (Xinhua) -- The International Monetary Fund (IMF) has commended the Kenyan government for maintaining economic stability in wake of post-election turmoil in early 2008, and for its sound macroeconomic policies and progress with economic reform in recent years.
According to an assessment report issued by IMF late Thursday, policies and progress made in process have virtually contributed to strong economic growth and poverty reduction in the east African country.
The IMF Executive Directors regretted interruption of economic activity that resulted from post-election turmoil, but were however encouraged that recovery seems to be underway following return to political stability.
"The directors regretted the interruption of economic activity that resulted from the post-election turmoil, but were encouraged that a recovery seems to be under way following the return to political stability," said the IMF.
The fund, however, faulted the government's approach to reforms undertaken over the last decade, terming them overly reactive and overloaded.
"Directors noted, however, that downside risks remain, particularly from rising food and fuel prices and weakening global demand. They underscored that sound policies and continued structural and governance reforms are essential to maintain macroeconomic stability, restore strong growth, and advance toward MDGs," report said.
The directors, who met in Washington on Sept. 10, recommended far-reaching structural reforms and infrastructure improvements to achieve Vision 2030 growth objectives.
"Priority reforms should include those in the financial sector, public financial management and the regulatory and trade regimes," said the report.
Public and private sector partnerships were said to be vital in building Kenya's infrastructure. IMF noted that directors supported focus of 2008/09 budget on removing growth bottlenecks and improving social cohesion.
The IMF board stressed importance of fiscal restraint in light of strong recovery and inflationary pressures, and urged authorities to accommodate spending priorities within a smaller-than-budgeted deficit.
It added that directors encouraged Kenyan authorities to adopt a fiscal anchor based on ratio of total public debt to GDP in light of planned sovereign bond issue.
"They advised that size, timing, and modalities of planned international sovereign bond issue be carefully considered to safeguard debt sustainability, and that proceeds be used for high-return infrastructure projects. In this context, directors stressed importance of establishing a comprehensive debt management strategy, and advised authorities to continue to seek concessional financing as best source for public investment," it says.
The report further showed that directors welcomed recent tightening of monetary policy and authorities' readiness to tighten further to prevent second-round effect of rising food and fuel prices.
The IMF welcomed improved ownership and performance in recent years and believed that the fund should continue to play a key role in helping the authorities design and implement sound policies.
Kenya's economy had been under threat by post election conflict, which started early this year, resulting in formation of a coalition government.
According to an assessment report issued by IMF late Thursday, policies and progress made in process have virtually contributed to strong economic growth and poverty reduction in the east African country.
The IMF Executive Directors regretted interruption of economic activity that resulted from post-election turmoil, but were however encouraged that recovery seems to be underway following return to political stability.
"The directors regretted the interruption of economic activity that resulted from the post-election turmoil, but were encouraged that a recovery seems to be under way following the return to political stability," said the IMF.
The fund, however, faulted the government's approach to reforms undertaken over the last decade, terming them overly reactive and overloaded.
"Directors noted, however, that downside risks remain, particularly from rising food and fuel prices and weakening global demand. They underscored that sound policies and continued structural and governance reforms are essential to maintain macroeconomic stability, restore strong growth, and advance toward MDGs," report said.
The directors, who met in Washington on Sept. 10, recommended far-reaching structural reforms and infrastructure improvements to achieve Vision 2030 growth objectives.
"Priority reforms should include those in the financial sector, public financial management and the regulatory and trade regimes," said the report.
Public and private sector partnerships were said to be vital in building Kenya's infrastructure. IMF noted that directors supported focus of 2008/09 budget on removing growth bottlenecks and improving social cohesion.
The IMF board stressed importance of fiscal restraint in light of strong recovery and inflationary pressures, and urged authorities to accommodate spending priorities within a smaller-than-budgeted deficit.
It added that directors encouraged Kenyan authorities to adopt a fiscal anchor based on ratio of total public debt to GDP in light of planned sovereign bond issue.
"They advised that size, timing, and modalities of planned international sovereign bond issue be carefully considered to safeguard debt sustainability, and that proceeds be used for high-return infrastructure projects. In this context, directors stressed importance of establishing a comprehensive debt management strategy, and advised authorities to continue to seek concessional financing as best source for public investment," it says.
The report further showed that directors welcomed recent tightening of monetary policy and authorities' readiness to tighten further to prevent second-round effect of rising food and fuel prices.
The IMF welcomed improved ownership and performance in recent years and believed that the fund should continue to play a key role in helping the authorities design and implement sound policies.
Kenya's economy had been under threat by post election conflict, which started early this year, resulting in formation of a coalition government.
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