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Tuesday, September 30, 2008

'Shoot-out' aboard hijacked ship

Somali pirates on board a hijacked ship are reported to have been involved in a shoot-out over what to do with the vessel's cargo of tanks and weapons.
An East African maritime group, which is monitoring the situation, told the BBC that three men were shot but the extent of their injuries was unclear.
Pirates seized the Ukrainian ship last week, demanding a $20m (£11m) ransom.
They dismissed the claim of infighting as "cheap propaganda", in a phone call to the BBC Somali Service.
"There has been no exchange of fire at all. We're in good shape," spokesman Sugule Ali told the BBC.
"This is cheap propaganda being spread by people not aware of our situation."
He added that the pirates were participating in dialogue, without going into detail.
"I am optimistic this can be resolved peacefully," he said.
In a separate development, the state-owned Malaysian shipping firm, MISC Berhad, said two of its ships had been recovered after it paid a ransom to pirates.
A spokesman said paying ransoms was against company policy, but had been necessary to obtain the release of its crew.

S Africa's ANC 'will not split'

South Africa's Finance Minister Trevor Manuel has dismissed the possibility of a split within the governing party.
He told the BBC there would be continuity despite some government resignations following ex-President Thabo Mbeki's controversial ouster.
Earlier, the head of Gauteng province also resigned over the decision by the African National Congress to force Mr Mbeki to leave office last week.
New leader Kgalema Motlanthe has been trying to ensure a smooth transition.
Mr Mbeki quit after a court ruling suggested he had tried to influence the prosecution on corruption charges of Jacob Zuma, head of the ANC. He denies interfering in the case.
Mr Zuma, who is favourite to become president in elections due next year, has been locked in a power struggle with Mr Mbeki and there have been rumours of the ANC splitting.
Meanwhile, prosecutors say they have filed papers asking for the right to appeal against a ruling that dismissed the corruption charges against Mr Zuma.
'Shock'
Mr Manuel told the BBC's Hardtalk programme that he has had an "unequivocal assurance" from Mr Motlanthe that South Africa's economic strategy and policy would not change.

Sunday, September 28, 2008

Private sector advocacy gets 13bn/- boost

BUSINESS Environment Strengthening for Tanzania-Advocacy Component (BEST-AC) has disbursed 12.5 million US dollars (over 13bn/-) for advocacy in improving private sector environment in the next five years with effect from July, this year. BEST-AC Team Leader, Mr Joseph Burke told reporters in Dar es Salaam over the weekend that the amount is a follow up to 5.7 million US dollars, that was released during implementation of the first phase of the programme. BEST-AC is managed by a Danish firm COWI A/S and its continued support for advocacy programmes is based on the good performance of its four year first phase which ran from November, 2004 to June 2008. During the first phase, 25 membership based organisations representing interests of businesses in Tanzania were supported and received support for 38 advocacy initiatives. Mr Burke said that Denmark, Sweden, Britain and Holland have allocated the funds through BEST-AC, to enable the private sector to advocate for their best interests. Mr Burke said despite growing co-operation between the government and private sector there were legal, regulatory and policy constraints. It is good, he said, for challenges to be brought to the government’s attention to be resolved for the benefit of the country’s economy. According to Mr Burke, BEST –AC is a programme that provides grants and technical assistance to private sector organisations (PSOs’) to help them engage more effectively in advocacy for better business and investment climate in Tanzania. “BEST-AC projects aim at supporting private entities to professionally advocate for their members' interests and improve business environment, that may enable businesses to flourish, create more jobs, increase peoples’ incomes and help reduce poverty,” he said. BEST-AC, he added, also assists business development service providers (BDSPs) training to enable them offer more support to private sector organizations. He said that the University of Dar es Salaam Entrepreneurship Centre (UDEC) has been working with BEST-AC, both as a training beneficiary and as a trainer of BDSPs and PSOs in various disciplines related to organizational capacity and advocacy techniques. Some of the organizations that have benefited include Tanzania Private Sector Foundation (TPSF), Zanzibar Chamber of Commerce, Industry and Agriculture (ZNCCIA) and Tanzania Horticulture Association (TAHA). Others are Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), VIBINDO, Tanzania Association of Tour Operators (TATO), Tourism Confederation of Tanzania (TCT) and the CEO Roundtable. Other benefactors are Rulu Arts Promoters, Confederation of Tanzania Industry (CTI), Tanzania Milk Processors Association (TAMPA), Tanzania Women Miners Association (TAWOMA), Association of People with Disability (CHAWATA) and Tanzania Air Operators Association (TAOA).

US destroyer nears Somali pirates

A US Navy destroyer has made visual contact with a Ukrainian ship which was seized by pirates last week and is now moored off the Somali coast.

There is no indication that the USS Howard intends to approach the ship, which is carrying 72 battle tanks destined for Kenya's government.
The pirates' ransom demand for the ship and its 21 crew has fallen from $35m to $20m (£10.9m), their spokesman said.
A man on the ship also told the BBC that one of the crew members had died.
The man, who the pirates said was the captain of the MV Faina, was speaking via a satellite phone handed to him by one of the pirates.
He said the dead sailor was Russian and had died as the result of an illness. The report could not be confirmed by independent sources.
He also said the other crew members were fine and that he could see three ships about a mile away, including one carrying an US flag.
International concern
In an earlier interview with the BBC, a spokesman for the US Navy's 5th Fleet, Lt Nathan Christensen, said the USS Howard was within 8km (5 miles) from the Ukrainian vessel, but refused to say whether an intervention was likely.

Saturday, September 27, 2008

Chinese astronaut takes historic walk in space

BEIJING (Reuters) - Astronaut Zhai Zhigang became the first Chinese man to walk in space on Saturday, clambering out of China's Shenzhou VII spacecraft in a technological feat that Beijing wants the world to marvel at.
"I'm feeling quite well. I greet the Chinese people and the people of the world," Zhai said as he climbed out of the craft, his historic achievement carried live on state television.
Zhai, the 41-year-old son of a snack-seller, unveiled a small Chinese flag, helped by colleague Liu Boming, who also briefly popped his head out of the capsule.
Zhai re-entered the spacecraft safely after a walk of about 15 minutes, marking the high point of China's third manned space flight, which has received blanket media coverage.
He wore a $4.4 million Chinese-made suit weighing 120 kg (265lb). Liu wore a Russian-made suit and acted as a back-up.
Zhai, tethered to the ship, slowly made his way toward a chunk of solid lubricant outside the capsule, took a sample and handed it to Liu, the official Xinhua news agency said, in an experiment aimed at improving the durability of the materials.

Tanzania short of labour inspectors

Inadequacy of labour inspectors has been cited as a major reason behind the incessant worst forms of child labour in the country. Director of the International Labour Organisation (ILO) office for Kenya, Somalia, Tanzania and Uganda, Jurgen Schwettmann, told a press conference yesterday that child labour was still a problem in the region and remained the organisation’s priority. “Tanzania has one of the most up to date labour laws in the world but child labour continues to thrive because there are no means of enforcing the law and the fact that labour inspectors are not enough to cover the whole country. Mr Schwettmann said he was, however, commending the country for registering steady progress particularly through the National Time Bound Programme to eliminate the worst forms of child labour in the country by 2010, including child labour in commercial agriculture, domestic service, mining, and commercial sexual exploitation of children. The Deputy Minister for Labour, Employment and Youth Development, Dr Makongoro Mahanga, said lack of labour inspectors was one of the challenges facing the country. Dr Mahanga attributed the situation to unattractive salary packages and working environment but maintained that the creation of the Commission for Mediation and Arbitration (CMA) had motivated labour officers who left for greener pastures elsewhere to come back. “The challenge that lies ahead at the moment is to create favourable salary packages and better working environment to enable us get back all our officers,” he explained. He said that the ministry had put in place strategies for recruiting new employees as well as convincing the government to increase its budget to enable it expand its workforce. Mr Schwettmann said Tanzania’s political will and commitment in combating child labour provided greater chances of eliminating the problem. So far 17,000 children have been reached for withdrawal or prevention. He revealed that the Ministry of Labour, Employment and Youth Development in collaboration with ILo was preparing a National Action Plan to speed up efforts to combat the problem and that a direct monitoring and reporting system had already been established.

Round 1 in debates goes to Obama, poll says

OXFORD, Mississippi (CNN) -- A national poll of people who watched the first presidential debate suggests that Barack Obama came out on top, but there was overwhelming agreement that both Obama and John McCain would be able to handle the job of president if elected.

Most debate watchers agreed both McCain and Obama would be able to handle the job of president if elected.
more photos »

The CNN/Opinion Research Corp. survey is not a measurement of the views of all Americans, since only people who watched the debate were questioned and the audience included more Democrats than Republicans.
Fifty-one percent of those polled thought Obama did the better job in Friday night's debate, while 38 percent said John McCain did better.
Men were nearly evenly split between the two candidates, with 46 percent giving the win to McCain and 43 percent to Obama. But women voters tended to give Obama higher marks, with 59 percent calling him the night's winner, while just 31 percent said McCain won.
"It can be reasonably concluded, especially after accounting for the slight Democratic bias in the survey, that we witnessed a tie in Mississippi tonight," CNN Senior Political Researcher Alan Silverleib said. "But given the direction of the campaign over the last couple of weeks, a tie translates to a win for Obama."

Thursday, September 25, 2008

Motlanthe sworn in as S African interim president

JOHANNESBURG, Sept 25 (Xinhua) -- Kgalema Motlanthe, deputy leader of the South African ruling African National Congress (ANC)was sworn in Thursday afternoon as the country's interim president.
The South African parliaemtn elected Motlanthe as president earlier in the day. The swearing-in came immediately after the election.
Motlanthe was elected by a majority of the votes of MPs in the National Assembly.
Accepting his election, he said he was humbled and honoured by the faith and confidence placed in him.
"I undertake this responsibility fully cognizant of the duties and responsibilities that are attached to this high office and the expectations the people of this nation rightly have of the head of state," he said.
The swearing-in was attended by a number of Cabinet ministers and VIP guests.
Motlanthe is to make a further statement in the House around 5 p.m. local time (1500GMT).
Motlanthe, 59, was elected as the general secretary of the National Union of Mine workers in 1992.
He was elected as secretary general of the ANC in 1997, and was named to cabinet in July this year.

US TEAM TO HELP RESTORE POWER

A GROUP of technicians from the US multinational General Electric (GE) are expected to arrive in Dar es Salaam today to fix the grounded Songas generators that have led to power rationing in the country, the Minister for Energy and Minerals, Mr William Ngeleja, has said. Mr Ngeleja told the 'Daily News' yesterday in Dar es Salaam that the Songas generators which used to generate180MW were now generating just over a third of it capacity (a mere 74MW). He said that three of the six generators at the Songas plant in Dar es Salaam could not work properly and GE’s technicians have advised the Tanzania Electric Supply Company (TANESCO) to stop them until the damage was examined. “People should understand that what happened is not a total failure of the generators but rather there were technical problems that forced the authorities to switch off the generators,” Mr Ngeleja said. He said that Songas had been working with GE from the initial stages of generator installations and that they were (GE) the ones to consult in case of any technical problems with their generators. Mr Ngeleja said that the ministry was vigilant in ensuring that power rationing was carefully handled to reduce unnecessary inconveniences to consumers, and assured Dar es Salaam residents that the city would not be affected by the exercise. He said that the ministry has decided to schedule the power rationing during night hours to give room to economic activities to take place uninterruptedly. The minister said that Tanesco does not depend on Songas’s 180-megawatt on daily basis but rather the demand differs from time to time. Tanesco started a countrywide power rationing effective Wednesday night following an abrupt breakdown of three generators at the Songas plant in Dar es Salaam. According to Tanesco, despite all efforts to stem the deficit through the use of natural gas and hydroelectric plants, the shortfall would remain, therefore, necessitating a daily 40-megawatt load shedding from 6:00pm to 11:00pm.

President Hu celebrates successful Shenzhou-7 launch


JIUQUAN, Gansu, Sept. 25 (Xinhua) -- Chinese President Hu Jintao congratulated the country's space scientists and taikonauts on the successful launch of the manned spacecraft Shenzhou-7 at the Jiuquan Satellite Launch Center on Thursday.
"The successful launch marked the first victory of the Shenzhou-7 mission," Hu told Chinese experts and other work staff at the center after officials declared the spacecraft entered the preset orbit.
"On behalf of the (Communist) Party Central Committee, the State Council and the Central Military Commission, I'd like to extend warm congratulations to all work staff and army forces participating in the mission," said Hu.
"The Shenzhou-7 mission is the most representative and influential scientific and research practice of our country this year," said Hu. "It's another feat on the Chinese people's journey to ascend the peak of science and technology."
He noted the country's first attempt of extra-vehicular activity entailed greater technical difficulty and urged the staff to continue their efforts.
"I hope you carry on your work unremittingly and focus on the following jobs to achieve a full-scale triumph," said Hu.
The Shenzhou-7 blasted off on a Long March II-F carrier rocket from the launch center in the northwestern Gansu Province at 9:10 p.m..

OBAMA WONT POSTPONE FRIDAY'S DEBATE

"It is the moment when Americans need to hear the person who, within about 40 days, will be responsible for dealing with this disaster," Obama told reporters at press conference.

MCCAIN BAIL OUT ON A DEBATE!!!

IN WHAT SEEMS TO BE VERY ODD TO EVERYONE, THE REP PRESIDENTIAL NOMINEE SEN. JOHN MCCAIN IS BAILING OUT FROM THE PLANNED FIRST DEBATE WHICH IS SCHEDULED FOR FRIDAY...

Wednesday, September 24, 2008

Nigeria activates nuclear accelerator

LAGOS, Sept. 23 (Xinhua) -- Nigeria inaugurated a nuclear accelerator last weekend at the Obafemi Awolowo University located in its south west Osun State, the Ministry of Science and Technology said in a statement on Tuesday.
The nuclear facility would be used for basic and applied researches in food, agriculture, environmental studies and material science, the News Agency of Nigeria (NAN) quoted the statement as saying.
Grace Ekpiwhre, minister of science and technology, said the facility, commenced after 25 years of preparations, was to help improve the nation's application of nuclear technology, according to the statement.
Ekpiwhre also said that the activation would support the government's resolve to establish a nuclear power plant.
Nigeria and Iran have signed an agreement on nuclear cooperation in Abuja last month. According to the deal, Iran will provide civil nuclear technology to Nigeria.
The Foreign Ministry of Nigeria has acclaimed that the nuclear technology acquired would not be used for military purpose.
Nigeria, the largest oil producing country in Africa, has suffered electricity supply strains over recent years due to poor infrastructure construction and aging facilities.

Monday, September 22, 2008

Dar needs 63bn/- for airport expansion


CONSTRUCTION of terminal three and expansion of terminal two at Mwalimu Julius Nyerere International Airport in Dar es Salaam has stalled due to lack of 55 million US dollars (63bn/-) needed for compensation of people living around the area. About 30 million US dollars (34.8bn/-) is for compensation to people living around the airport at Kipawa who are required to vacate to pave way for construction of terminal three. Tanzania Airports Authority (TAA) also requires, as a matter of urgency, some 25m US dollars (about 30bn/-) for expansion of the highly congested terminal two, a factor that dents the country’s good image. Strategies to increase the number of tourists to one million by 2010 are bearing fruits but the terminal buildings at points of entry and departure as well as the state of the national flag carrier taint the good image of Tanzania as a tourist destination. Industry watchers claim that Tanzania as a tourist destination was not competitive in the region and if things would not be improved tourists might land at a neighbouring country and come to view the country’s attractions by road. Terminal two at the Mwalimu Julius Nyerere International Airport was designed for one million passengers a year, but the facility handles 1.5 million people hence the congestion resulting into long queues at checking in and immigration counters. The national flag carrier, Air Tanzania Corporation (ATC), has unreliable schedule due to a number of factors including few aircraft and when any develop a snag spares are not readily available, not even a back-up plane. Officials with the Ministry of Infrastructure Development, Tanzania Airport Authorities (TAA) and Tanzania Civil Aviation Authority (TCAA) expressed concern over the status of the terminal saying lack of funds to expand it was a major setback. The Director of Transport in the Ministry, Dr Bartholomew Lufunjo, said that the government was scouting for an appropriate strategic investor to undertake expansion programmes at the Mwalimu Julius Nyerere International Airport. He said that recently the government held discussions with one prospective investor from the Far East who has developed interest on expansion of the airport and ATC. “The truth is that we are seeing the increasing number of tourists coming while the Mwalimu Julius Nyerere International Airport is yet to be expanded. The government has no funds. The only way out is to go Private Public Partnership (PPP),” he said. The Director General of TAA, Mr Prosper Tesha, simply said: “The lounges at terminal two have become too small. The number of travellers has increased. Revenue collected by TAA was spent on maintaining other airports including the non-economical viable ones hence not having cash to carry out expansion programme at the terminal whose demand was on the increase, he said. The Executive Secretary of Tanzania Association of Tour Operators (TATO), Mr Mustapha Akunaay, says in 2005 some 612,754 tourists brought in 825.5 m US dollars and the following year the number grew to 641,124 and the country earned 862m US dollars from them. Last year some 719,031 tourist came to Tanzania bringing in 1bn US dollars. This year the number is expected to reach 800,000 and the money to be earned is about 1.3bn/-. The Director General of TCAA, Ms Magret Munyagi, said that terminal two and that of Zanzibar were not in conformity with civil aviation standards because they were too small to handle passengers flown there by bigger aircraft. TCAA would have closed the terminals if they were privately owned but since they belong to the government some mercy has been applied because efforts were underway to improve the situation.

NMB workers go on strike today

WORKERS of the National Microfinance Bank (NMB) will go on strike effective today, protesting non-payment of their benefits. “During the strike NMB will do its utmost to ensure crucial services are provided including those through ATM (automated teller machines),” NMB Chief Executive Officer, Mr Ben Christiaanse, said. Mr Christiaanse, however, declared the strike as illegal, pointing out that there is an order of the High Court that outlaws the strike. He also said that the matter was still being discussed by the government and NMB management. The NMB Branch Chairman of the Tanzania Union of Industrial and Commercial Workers (TUICO), Mr Joseph Masana, told the 'Daily News' that the workers would go on strike effective 8:00am today. “We have given the management 48-hour notice after failure to co-operate despite protracted negotiations,” Mr Masana said. NMB, the largest commercial bank, has almost 2,000 workers in its 121 branches across the country. Mr Masana said the government and the NMB management have reneged on an agreement reached at a joint meeting in Dodoma. He said while in Dodoma they met a Deputy Minister for Finance and Economic Affairs, Mr Jeremiah Sumari and Minister for Labour, Employment and Youth Development, Mr Juma Kapuya. Masana said they were pursuing their demands as per the country's labour laws. He said the employees through TUICO were asking for better working conditions which are being ignored by the management of the bank. Last month the government offered for sale 21 per cent out of its 51 per cent shares in NMB, out of which five per cent of the shares will go to the bank's employees. A consortium led by the Rabobank of the Netherlands owns 49 per cent stake in NMB.

Saturday, September 20, 2008

Kikwete’s date with UN General Assembly

PRESIDENT Jakaya Kikwete is expected to address the United Nations General Assembly on Tuesday, the Presidential Communications Directorate announced yesterday. He will address the Assembly in his capacity as the Chairman of African Union (AU). According to a statement issued by the directorate, the president was yesterday expected to leave for United States, where he would attend and address the UN General Assembly. Apart from addressing the Assembly, President Kikwete is expected to attend other important conferences, including Africa’s Development Requirements. The conference will discuss pledges of rich nations to Africa and how they are fulfilled. The president will also address the opening of Millenium Development Goals (MDGs) meeting for leaders – as well as participate in various forums, including mother and child health and malaria diseases, both forums being key parts of MDGs. On Friday, President Kikwete will fly to Washington where he will deliver a keynote address at the opening session of the Annual Africa-Asian Parliamentarians session in the US Congress. He will also address the US business leaders meeting. Apart from the meetings which he will attend or address, President Kikwete will also meet and hold talks with world leaders within the United States and elsewhere. Among world leaders whom he is scheduled to hold talks with are President of Iran, Mohmoud Ahmedinajad; the Secretary General of European Union Council, Mr Javier Solana and the Chairman and Chief Software Architect of Microsoft, Mr Bill Gates. President Kikwete will also meet Denmark’s Prime Minister, Mr Anders Fogh Rasmussen and the Director General of the International Labour Organization (ILO), Mr Juan Somavia. He will also hold a joint meeting with the UN Secretary General Mr, Ban Ki- Moon and Sudan’s Vice-President Ali Osman on situation in Darfur region, Sudan. During his recent two-day working tour in Sudan, the AU Chairman promised Sudan’s president Omar Bashir that he would hold a joint meeting with the UN Secretary General and Sudan’s representative on Darfur situation during UN General Assembly. The meeting will examine the possibility of speeding up the plan of deploying UN and AU peace keeping troops to Darfur and possibility of postponing the warrant of prosecuting president Bashir, as issued by International Crime Court (ICC).

BREAKING NEWS:SA's Mbeki says he will step down


South African President Thabo Mbeki will accept a call to resign by the governing African National Congress (ANC), his spokesman has said.

"Following the decision of the national executive committee of the African National Congress to recall President Thabo Mbeki, the president has obliged and will step down after all constitutional requirements have been met," the presidency said.The move could collapse the government and prompt early elections.Mbeki has been mired in accusations that he conspired to undermine ANC leader Jacob Zuma.“Our movement has been through a trying period and we are determined to heal the rift that might exist. In light of this and after a long and difficult discussion, the ANC has decided to recall the president of the republic before his term of office expires," ANC secretary general Gwede Mantashe told reporters inKempton Park on the East Rand."Our decision has been communicated to him," said Mantashe.Mantashe said that Mbeki's reaction to the news was "normal"."He didn't display shock or any depression. He welcomed the news and agreed that he is going to participate in the parliamentary process. If I said he was excited I would be exaggerating."Presidency spokesperson Mukoni Ratshitanga said Mbeki had accepted the decision.





Friday, September 19, 2008

Tanzania / Statement by an IMF Staff Mission at the Conclusion of a Visit to Tanzania

DAR ES SALAAM, Tanzania, September 19, 2008/African Press Organization (APO)/ - An International Monetary Fund (IMF) mission led by Mr. Roger Nord visited Tanzania September 9-19, 2008 to conduct the fourth review under the Policy Support Instrument (PSI). The mission met with Minister of Finance and Economic Affairs, Hon. Mustafa Mkulo; Governor of the Bank of Tanzania, Prof. Benno Ndulu; other senior government officials; private sector representatives; and members of civil society.
The mission issued the following statement in Dar es Salaam today:
“Tanzania’s economy continued to perform strongly in 2007/08. Economic growth reached 7¼ percent, fueled by a robust expansion in the manufacturing, construction, and services sectors. Exports grew by 30 percent, contributing to a further increase in international reserves of the Bank of Tanzania; fiscal policy remained prudent, anchored by strong revenue performance; and credit to the private sector continued to expand at a healthy pace.
“However, inflation has risen sharply over the past nine months and has remained persistently above the Bank of Tanzania’s target. Pressures from the international fuel and food price surge have played an important part in this. As global pressures subside, the key challenge for Tanzania is to ensure that domestic inflation also retreats. This is not automatic: it will require active support from both monetary and fiscal policy.
“The outlook for 2008/09 is for continued strong economic growth, drawing on robust export performance and continued dynamism in construction. So far, Tanzania has remained unaffected by the global financial market turmoil. But should tumultuous global financial conditions persist, or should global growth prospects deteriorate significantly, low-income countries may not remain immune. In particular, reduced access to foreign capital and slower export market growth may also dampen economic activity in Tanzania.
“In the short term, this calls for a judicious economic policy mix:
• The Bank of Tanzania will need to continue to pursue an active monetary policy aimed at combating inflation. The mission welcomed the steps taken so far to improve liquidity management. Looking ahead, with the objective of bringing inflation back down to below 7 percent by mid-2009, the Bank of Tanzania will need to use all the instruments at its disposal to rein in excessive growth in monetary aggregates.
• Successful disinflation will also require a continued supportive fiscal policy stance. The 2008/09 budget appropriately maintains a zero net domestic financing target. However, the ambitious revenue target leaves little room for slippage. It will be important to ensure that a shortfall in revenue is matched by expenditure restraint and avoid unwarranted recourse to domestic borrowing, which could prove costly and place further unwelcome strain on monetary policy.
“Longer-term policies should continue to aim at raising economic growth while maintaining the economic stability that has served Tanzania so well over the past decade.
“In particular, further financial sector development is a critical ingredient for long-term economic growth. Tanzania has developed a vibrant banking sector which is providing vital lending to the private sector. The challenge now is to improve access to banking services, and the legal reforms currently underway promise to provide a welcome boost to the residential mortgage market. The nonbank financial sector is also growing rapidly. The mission welcomes the intention to establish a single regulatory agency for the fast-expanding pension funds. It will be important to ensure that the new agency can become effective as soon as possible and for the Bank of Tanzania to exercise its oversight as a guarantor of financial stability.
“Increased public investment, including in critical infrastructure projects, can make an important contribution to long-term economic and social development in Tanzania. And over the past decade, increased fiscal space, stemming in equal parts from raising domestic revenue and securing more assistance from development partners, has allowed Tanzania to scale up public spending from 16 percent to a budgeted 27 percent of GDP, or from US$38 to US$150 per capita. The key priority now is to ensure value for money by further reinforcing public financial management. Long-term fiscal stability hinges on a continued prudent public debt strategy and when considering access to commercial borrowing, all available options need to be carefully weighed so as to minimize the long-term burden on public finances.
“The mission welcomes the action taken by the Tanzanian authorities to address the recommendations of the special audit of the External Payment Arrears (EPA) account at the Bank of Tanzania. This is an ongoing process and the mission looks forward to the continued implementation of the authorities’ action plan. Much has been done to begin to restore the credibility of the Bank of Tanzania. Looking ahead, priorities are to further strengthen the internal controls of the central bank, refocusing it on the core functions of inflation control and financial supervision.
“It is expected that the IMF’s Executive Board will discuss the fourth review of Tanzania’s economic program under the PSI by end-December 2008.”

Ukraine's PM blames president for poor relations with Russia


Ukraine's PM blames president for poor relations with Russia


KIEV, September 17 (RIA Novosti) - Ukrainian Prime Minister Yulia Tymoshenko sharply criticized the pro-Western president on Wednesday for damaging the country's relations with Russia.
The premier's scathing comments on her former ally, Viktor Yushchenko, came a day after the ruling coalition officially split amid political infighting and disagreements over Ukraine's stance on the recent Russia-Georgia conflict.
"Viktor Yushchenko is personally responsible for all negative trends in relations between Russia and Ukraine," Tymoshenko told a news conference in Kiev. Her statement effectively ended any hopes that the coalition will reunite.
The ongoing dispute has seen the presidential Our Ukraine party's popularity plummet, while the Tymoshenko bloc and the pro-Russian opposition Party of Regions have gained ground.
However, Tymoshenko spoke against the idea of early parliamentary elections, saying they would be devastating for the country in light of the ongoing global financial crisis.
Parliamentary Speaker Arseny Yatsenyuk announced collapse of the ruling pro-Western coalition on Tuesday, paving the way for possible early parliamentary polls.
Yushchenko and Tymoshenko were allies in the 2004 "Orange Revolution," but have since drifted apart on a host of issues, including over a recent parliamentary vote to slash the president's powers, and the premier's refusal to back the president's condemnation of the Russian military operation in Georgia.
The legislature now has 30 days to form a new coalition or face an early parliamentary election, the third since Yushchenko came to power. The president has already confirmed his determination to dissolve parliament if the current crisis is not resolved by the deadline.
Tymoshenko is widely expected to run against Yushchenko in presidential elections to be held in 2009 or 2010.

Ten die in shelling duel as military aircraft lands Mogadishu airport

MOGADISHU, Sept. 19 (Xinhua) -- Ten civilians have been killed and more than fifteen others wounded Friday after shells were exchanged between insurgent fighters and African Union peacekeepers at the airport following the arrival of an aircraft carrying supplies for the peacekeepers landed, local media and spokesman for the peacekeepers said.
"A plane carrying supplies for our forces arrived at the airport then several mortar shells were fired against the airport," Barigye Ba-Hoku, spokesman for the African Union mission for Somalia (AMISOM) told Xinhua. "We responded to these attacks since we have the right to self defense."
A number of shells landed in different neighborhoods in the south of the capital where ten people have been separately killed while fifteen others were wounded, local media reported.
Islamist insurgents have this week threatened to target airplanes coming to the Mogadishu airport which they say is being used by what they described as "enemy forces".
No commercial plane has since landed at the airport. The military plane for AMISOM is the first to use the airport since the insurgent issued their warning on a website posting.
Ba-Hoku said that none of their troops were hurt in the attack and that the plane safely landed.
The airport is a base for the Ugandan contingent of the African Union peacekeepers and is used by both civilian and military planes.
The airport is also being used by a number of locally chartered planes that do daily flights to and from neighboring countries and to United Arab Emirates and Saudi Arabia