Why our informal sector needs more recognition

The recently published report on Dar es Salaam’s environment, which was initiated by the Environment Division of the Vice President’s office, had more other findings apart from the revelation that the city is seriously polluted. For example what is also unearthed about the informal sector is too important to be taken lightly.

The data in the report show that about 46% of Dar residents are unemployed, while 95% of those working are in the informal sector. A mere 5% of those working are in formal employment.

Given the fact that much is being said about informal employment, most of us today understand what kind of people belong to this category. They include tailors, welders, small traders, food vendors, cobblers, freelance photographers, brick makers, saloon operators and musicians.

The list of informal sector activities which most urban dwellers engage in for the sake of survival is as long as it is interesting.

Informal employment is not just an urban practice. There are all sorts of self employed workers in rural areas, including primary and secondary school leavers who prefer petty trading to farming, and other informal sector undertakings. The rural informal sector seems to grow significantly year after year, as is the case in the urban environment.

What does this kind of scenario imply? To put it simply, all signs indicate that the sector has a unique role to play in the development of underdeveloped countries like ours. Research has established that the contribution of the informal sector to the total national wealth produced and services provided is substantial.

We are told that in Tanzania the sector contributes above 32% to the country’s GDP. The rising youth unemployment is still somehow manageable today, thanks to the informal sector window.

What would be happening in a city like Dar es Salaam or Mwanza today if thousands of youths who are earning a living by offering motorcycle passenger services, running kiosks, selling ‘mitumba’ in open markets etc., were completely idle?

Your guess on the above question is probably as good as mine, but chances are that the rate of urban crime in our midst would have been worse in the absence of the informal sector safety valve.

One would argue that this is another major reason why informal sector activities must be taken seriously, for the good of those who earn an income from it, those who benefit from the services provided, as well as the wider public which enjoy more security as an indirect benefit.

Yet more questions on the informal sector still arise, and beg urgent answers. Is the informal sector really recognised and appreciated? If it is, are adequate efforts being made to improve it in the interest of those engaged in it and society as a whole?

Admittedly, some research on its magnitude and impact to our society has been conducted by several institutions, including the Research on Poverty Alleviation Programme (REPOA), as well as academicians in other local universities. These deserve a pat on the back for taking time to study this vital area involving people determined to employ their energy and determination in order to survive or get out of poverty - if conditions allow.

Recommendations have been given on how to improve the sector but, unfortunately, there are no visible signs to show that it is improving appreciably. Most of those engaged in it are not making much progress and its potential to country’s development is not fully harnessed.

The informal sector continues to experience the same problems they have had for decades. Lack of capital continues to haunt small entrepreneurs, despite the fact that they are not normally asking for a big amount to promote their small businesses. It is due to this poor funding that the International Labour Organization (ILO) consider most informal sector activities as survival one with no future

Some face licensing setbacks when they decide to be more formal in their business approach. Being unnecessarily harassed is part of life for some citizens who depend on informal sector activities for their livelihood. The list is long.

You have those who suggest that may be there is need to have a full ministry to handle and promote the informal sector. Probably they have a point

Ophir Energy agent threatens Zitto Kabwe

Kigoma North Member of Parliament Kabwe Zuberi Zitto has received a demand notice from one Moto Mabanga – commonly known as a fixer -- ordering the legislator to refute allegations he made in Parliament last November.

The demand notice comes about two months since the outspoken MP tabled in Parliament a private motion calling for investigations on some Tanzanians believed to have stashed away billions of shillings abroad -- especially in Switzerland, New Jersey and Cayman Islands as well as Mauritius.

In his private motion, Zitto said he believed some Tanzanians with offshore bank accounts made money from corruption deals and tax evasion.

According to Zitto, the yet unnamed individuals made ill-gotten money through procurement of military hardware, as well as energy and mineral deals.

But Mabanga wasn’t amused when the MP specifically nemed Ophir Energy, an oil exploration firm, as one of the companies that dished out hefty bribes to government officials so that it could be awarded three oil and gas exploration blocks between 2004, 2006 and 2007 -- and that he (Moto Mabanga) was the fixer who facilitated the award of licences for the oil explorations.

In his private motion, Zitto had said that in 2004 an 2005 a prominent South African politician, Tokyo Sexwale, made a business trip to Tanzania bringing with him two friends before he set up a firm known as Ophir Energy Tanzania Limited – which now owns blocks 1, 3 and 4 off the Indian Ocean in the Southern parts of the country.

He further stated that Sexwale was introduced in the country by a Congolese fixer known as Moto Mabanga, but in the demand notice issued to the opposition MP, Mabanga claims that Zitto lied about the man’s nationality.

According to Zitto, in his notice, Mabanga agrees that he indeed facilitated Ophir Energy to get oil exploration licenses in the country but insists that the deals were clean.

Mabanga asserts further that he never bribed any government officials to secure the oil deals in Tanzania.

However, Zitto raises serious doubts, saying, “if indeed he ( Mabanga) did facilitate Ophir Ernegy to strike oil deals in the country why then doen’t he have any shares in any of the oil companies now?”

However, The Guardian on Sunday has not been able see the copy of the demand notice issued to the opposition legislator.

But asked if he would bow down to Mabanga’s demands that he refute the allegations, he brushed it aside and retorted via an email message, “I won’t … this guy’s dealings must be investigated.”

However, Zitto says that the Clerk to the National Assembly had since informed Mabanga’s lawyers about the immunity granted to Tanzanian MPs when discharging their responsilities in the House.

This means that even if Mabanga were to take the matter to court he may hit a snag due to the immunity that Tanzania MPs enjoy.

“What is clear now is that Moto mabanga has confirmed through his demand notice he was a ‘deal sweetner’ for oil blocks in Tanzania. Authorities in Tanzania must investigate the dealings of this person,” Zitto added.

When tabling the private motion last November in Dodoma, Zitto told the House that the Global Financial Integrity (GFI) report of 2008 showed a total of US$8 billion had been stashed in foreign banks abroad between 1970 and 2008.

In June, 2011 the National Bank of Switzeland released details of people holding bank accounts in which it was revealed that Tanzanian individuals stashed away some US $196 million (Sh 314 billion) there.

It was then that the government conduct thorough investigation to establish the identity of Tanzanian personalities holding offshore bank accounts and the amounts preserved.

The government agreed to carry out the assignment and report back to the parliament in April this year.

Moto Mabanga is a well known fixer in Africa who has played many roles in enabling multinational investors to secure ‘smooth’ investments in many countries -- including Tanzania and the Democratic Republic of Congo

Govt given Stiegler`s Gorge power proposal

Implementation of a huge Stiegler’s Gorge Power is becoming a reality after a report and proposal of development of the project being presented to the government at the weekend.

The proposal presented in Dar es Salaam follows a Memorandum of Understanding (MoU) of the long awaited project between the Rufiji Basin Development Authority (RUBADA) and Odebrecht International, a reputable dam construction company in the world six months ago.

“This is a very crucial stage,” the RUBADA Director General, Aloyce Masanja told journalists after receiving the proposal at the event witnessed by top Odebrecht officials, government of Tanzania officials and RUBADA management and members of the Board of Directors.

According to Masanja, the proposal will now give a clear picture on the implementation of the project.

The proposal touches mainly on Power Market Overview, Engineering Studies and Technical Proposal, Preliminary Social-Environmental Evaluation, Key Stakeholders, Stage 1 Risk Analysis and Financial Structure and Proposed Business Plan.

According to Masanja, the project financial requirement is over USD 2 billion, but the figure may vary depending on the technology to be agreed at a later stage.

RUBADA, as a public institution is allowed by law to generate and supply hydroelectric power in the basin and will partner with Odebrecht, a private entity in a form of Public Private Partnership (PPP).

“The project is a multipurpose by nature in the sectors of agriculture, energy, fisheries, flood control and tourism,” he said.

Once completed, the project will have the potential to produce 2100 MW.

The Brazilian company reviewed Feasibility Studies that were earlier done by a Norwegian company, NORCONSULT in 1980 on a similar project but shelved.

The next stage after reviewing the proposal will be designing and doing Environmental Impact Assessment (EIA) while the third stage will be commencement of construction.

For his part, the company’s New Business Director, Fernando Soares said that his company understands the importance of the project, not only for Tanzania but for the whole region.

“We are proud to be part of such important endeavor,” he said.

He said that Odebrecht can provide great value to their clients bringing the necessary engineering, and construction expertise, as well as proven local knowledge and motivation to pursue a well-balanced contractual relationship.

The Chairman of the RUBADA Board of Directors, Prof Raphael Mwalyosi said the Brazilian company has done a great job.

“We are very happy, they have done a great job according to our expectations,” he said.

For his part, the Brazilian Ambassador to Tanzania, Fransisco Luz said that his country is very proud that Tanzania has decided to have a Brazilian experience in the area of dam construction.

It is estimated that the Stiegler’s electricity will be among the least costly in Africa, standing at 4 USD cents per a kilowatt hour, including tax.

“There are more than enough reasons for stakeholders to support this project,” he said.

Odebrecht Company Limited is reputed to be involved in big and successful construction of big hydropower projects in the world. It was involved in construction of the world’s second power project found in Brazil with the capacity to produce 14,000 MW. The whole of the Rufiji Basin has the potential to produce 4,000 MW.

Brazil is said to have transformed her economy for the past 30 years from the low income country to a middle economy today. More than 85 per cent of the country’s power comes from hydro sources.

Its portfolio includes more than 58,500 MW in construction works and services in the power sector.



With more than 65 years of experience, developing projects in 25 countries in 4 continents. Odebrecht which has been working in Africa since 1984 employs more than 20,000 people and has successfully delivered projects in nine countries.

Gesi kuiangusha CCM

• Wabunge wakamia mjadala bungeni

NEEMA ya gesi iliyovumbuliwa Mtwara, na wananchi kutaka ibaki mkoani humo badala ya kuisafirisha kwenda jijini Dar es Salaam, imegeuka laana, na sasa inaweza kukiangusha Chama Cha Mapinduzi (CCM) mwaka 2015 baada ya wananchi kuanza kupoteza imani nacho, Tanzania Daima Jumapili limebaini.

Mbunge wa Mtwara Mjini, Hasnain Murji (CCM) na Mwenyekiti wa CCM Manispaa ya Mikindani, Ali Chinkawene ndio vinara wa kampeni za kupinga gesi hiyo kusafirishwa kwenda Dar es Salaam, na wamejitokeza hadharani kupinga kauli ya Rais Jakaya Kikwete kwamba wakazi wa Mkoa wa Mtwara hawapaswi kuzuia.

Uchunguzi uliofanywa na gazeti hili kwa wiki nzima sasa, umebaini kuwa wananchi wa mikoa ya Lindi na Mtwara ambao wengi ni wafuasi wa CCM, wamepoteza imani na chama hicho.

Baadhi ya wabunge wa mikoa ya Mtwara na Lindi ambao wako jijini Dar es Salaam wakihudhuria vikao vya kamati za Bunge, waliliambia Tanzania Daima Jumapili kwamba wana-CCM katika mikoa hiyo, wamepoteza imani na chama hicho kutokana na kauli za viongozi wao wanaotumia vitisho kutaka gesi hiyo isafirishwe kwenda Dar es Salaam.

Mbunge wa Mtwara Mjini, Murji, alisema juzi kuwa msimamo wake wa kupingana na Rais Kikwete uko pale pale na kusisitiza kuwa yuko tayari kutimuliwa ubunge kuliko kuachia mradi huo wa gesi upelekwe Dar es Salaam.

Rais Kikwete katika salamu zake za mwaka mpya wa 2013, alisema Mtwara hawana haki kuzuia gesi hiyo kwani rasilimali inayopatikana popote katika nchi hii ni mali ya taifa, na hutumika kwa manufaa ya taifa na si mali ya watu wa pale ilipogundulika au pale shughuli inapofanyika.

Akionesha dhahiri kupingana na Rais Kikwete, Murji alisema serikali inapaswa kujenga mitambo ya kuzalisha umeme mkoani Mtwara badala ya Dar es Salaam.

Alisema: “Tulipoona hali inakuwa tete, niliitisha kikao cha Kamati ya Siasa kujadili nini msimamo wa chama katika hili. Kamati ya Siasa wakasema hawawezi kukisemea chama kwa sababu chama ni wanachama, hivyo nikaitisha kikao cha Halmashauri Kuu ambapo pia tuliwaalika mabalozi wa mitaa.

“Katika kikao hicho, wajumbe walipinga kwa nguvu zote suala la gesi kupelekwa Dar es Salaam. Wakaniambia niseme msimamo wao kuwa hawataki gesi iende Dar es Salaam hadi pale masilahi ya wana-Mtwara yatakapowekwa wazi na serikali na huo ndio msimamo.”

Alisema msimamo huo si wake binafsi, bali ni maazimio ya vikao halali vya chama hicho vinavyowakilisha wanachama, na kwamba historia ya mikoa ya kusini jinsi ilivyonyimwa maendeleo, ilitumiwa na wajumbe kujenga hoja hiyo.

“Wakati sisi hatuna umeme, hakuna aliyefikiria kutuunganisha kwenye gridi ya taifa… Barabara ya kutoka Mtwara kwenda Dar es Salaam miaka 51 ya uhuru sasa haijakamilika. Lakini bomba wanataka kujenga kwa miezi 18. Hivi kuna Watanzania muhimu zaidi ya wengine?” alihoji mbunge huyo.

Duru za siasa zilidokeza kuwa, kauli za viongozi hao ndio msimamo wa wana CCM ambao baadhi wameapa kwamba kama serikali haitabadilisha msimamo wake, chama hicho kisahau kushinda uchaguzi wowote katika mikoa hiyo.

Wabunge wengine ambao waliomba majina yao yahifadhiwe, walisema wanasubiri kwa hamu mkutano wa Bunge unaotarajiwa kuanza hivi karibuni mjini Dodoma, kwani wamepanga kuzungumzia msimamo wao kuhusu suala hilo.

“Sisi wengine mtatusikia Dodoma. Tumeamua kutetea maslahi yetu na kizazi chetu kijacho kwani kusini hatukuwa na cha kuwaachia, lakini leo tuna gesi. Haitoki Mtwara,” alisema mbunge huyo.

Wakati wabunge hao wakiweka msimamo huo, jana na juzi, wananchi wa wilaya zote za Mkoa wa Mtwara walifanya maandamano kwa lengo la kuendeleza kilio chao cha kupinga gesi yao kusafirishwa kwenda jijini Dar es Salaam.

Akizungumzia suala hilo, Mbunge wa Kigamboni, Dar es Salaam, Faustine Ndungulile, alisema kuwa lilionekana dogo, lakini kadiri muda unavyokwenda, badala ya kuwa kipele linaekelea kuwa jipu na mwisho linaweza kusababisha kansa itakayosambaa mwili mzima.

Alisema: “Nimefuatilia kwa makini kuhusu hoja ya wananchi wa Mtwara, lakini vile vile nimefuatilia kwa makini majibu yanayotolewa na viongozi mbalimbali. Kinachoonekana ni kwamba, viongozi hawajipanga vizuri. Kila mtu anasema lake na kila mtu anafanya lake.

“Kwa mtazamo wangu, katika sakata hili kuna mambo mawili makubwa ya msingi. Mosi, maendeleo duni katika mikoa ya kusini ikiwa ni pamoja na Mtwara. Pili, tatizo la ajira kwa vijana,” alisema Ndungulile.

Mbunge huyo alishauri elimu itolewe kuwashibisha wananchi wa Mtwara jinsi gani watanufaika kimaendeleo na kwa upande wa ajira kwa vijana.

“Kubeza na kutumia hoja za nguvu havitasaidia, badala yake tunahitaji nguvu za hoja zitakazowaelimisha na kuwashawishi wananchi wa Mtwara katika maeneo yafuatayo:

“Ni vigezo gani vilitumika kufikia uamuzi wa kujenga bomba la gesi toka Mtwara hadi Dar es Salaam? Kwanini mtambo wa kuzalisha umeme usijengwe Mtwara na kusambazwa kuja Dar es Salaam? Je, mchanganuo wa gharama ukoje?

“Je, upatikanaji wa gesi hii utakuwa na manufaa gani kwa wananchi wa eneo husika? Je, kutakuwa na viwanda vya kusindika gesi vitakavyojengwa huko Mtwara? Je, mikoa inayozalisha itapata asilimia ya mapato ya gesi inayozalishwa katika eneo hilo?

“Je, ajira ngapi zitakazozalishwa na sekta hii, na asilimia ngapi ya ajira zitakuwa kwa ajili ya wakazi wa eneo hili?”

Mbunge huyo alisema suala hili linapaswa kushughulikiwa mapema na kwa haraka wakati likiwa bado ni kipele kwani likishakuwa jipu au kansa, gharama za kulishughulikia zitakuwa kubwa.

Alisema wananchi kuhoji si dhambi wala uhaini kwani uelewa wao umekua na wanahitaji kushirikishwa na kupewa majibu ya kina

Wildlife authority to be set up in Nov this year.

The Ministry of Natural Resources and Tourism has reaffirmed government commitments towards establishing a state owned wildlife authority later this year.

Deputy Minister Lazaro Nyalandu disclosed the government plan over the weekend, noting that the authority will come into operation in November.

The minister said upon its establishment, the authority will compliment anti-poaching efforts in the country.

Last year the government acknowledged in the House that it was putting final touches on plans to set up the authority, including earmarking its responsibilities.

He said that a task-force on the establishment of the authority had visited the Tanzania National Parks Authority (TANAPA) and Ngorongoro Conservation Authority (NCA) to learn how they operate.

According to Nyalandu, the task-force was able to review operational structures of the two authorities which would enable it to advise on how the new authority should be set up and operate. Responsibilities and structure of the authority would be ready by September, this year.

He said drafting of a bill on establishment of the authority started in October and was completed by December last year.

He explained further that section 8 of the Wildlife Conservation Act of 2009 gives power to the Minister of Natural Resources and Tourism to establish the wildlife authority.

The envisaged law and eventually the establishment of the authority are expected to increase revenues from forests, national parks and game reserves countrywide

Mtwara to receive 0.3 percent of gas revenues

Gas reserves in the country are already causing domestic upheaval even before actual extraction as residents of Mtwara raise concern that they were being ignored in the development project in favour of Dar es Salaam where the Mtwara extracted gas is to be piped to.

However, addressing journalists yesterday in Arusha, the deputy minister for Energy and Minerals George Simbachawene said: “I don’t see the reason as why people are opposing the project despite the myriads of benefit the country is expected to get…”

The minister added that upon its completion, Mtwara will receive 0.3 percent of the total income that will be collected from the project.

“This is a huge amount of money and there are lots of investors who are waiting for the completion of the project to set up new industries that will employ many of the Mtwara residents…” he affirmed, giving the gas processing plant, cement and fertilizers factories as some of the plants to be built in the region.

According to the minister, the government has all financial resources needed for the project which is to be completed within eight months and a contractor for the project is already on the working site.

“We are interested to see this project start and be completed as soon as possible…” he asserted and asked Tanzanians to be patient.

He described the protest against the project as a politically motivated venture, without any national development agenda, only seeking to cause destruction.

Recently people from Mtwara staged a demonstration against the government’s plan to pump the natural gas to Dar es Salaam.

The protest themed: ‘Natural gas comes before political affiliations’ was organised by eight opposition political parties. Their sympathisers called for the industrial investment to be made in Mtwara and not in Dar es Salaam.

The minister explained that once piped to Dar es Salaam, the natural gas will serve the nation as a whole in a host of development projects including, domestic use as well as to power various production plants and is expected to reduce the cost incurred in importing fuel.

“With these unprecedented climatic changes, natural gas is the most economical and viable way to go…” the minister said noting that upon completion of the project, the country will enjoy about 2,780 megawatts which will have a positive impact on growth.

“It is time we Tanzanians put aside our political differences and built our nation…” the Minister asserted

Mwakyembe to ease Tunduma truck flow.

From right: Trade and Industry minister Dr Abdallah Kigoda, Transport minister Dr Harrison Mwakyembe and Finance Minister Dr William Mgimwa with their host, Tanzania Truck Owners Association Chairman Seif Ali Seif, head to conference room at Ubungo Plaza in Dar es Salaam at the weekend where Dr Mwakyembe was chief guest to the TATOA annual general meeting. (Photo: Khalfan Said)

Transport Minister Dr Harrison Mwakyembe has assured members of the Tanzania Truck Owners Association (TATOA) that he will take action against the slow pace of truck movement at Tunduma border post.

He was responding to remarks made by TATOA chairman, Seif Ali Seif at the annual general meeting of the association held over the weekend in Dar es Salaam.

The TATOA chairman said, truck movement remained one of the major hurdles in the transport sector, saying: “Initially Tunduma border post was designed to serve approximately 40 to 50 trucks per day at that time, but currently more than 400 to 500 trucks are crossing that point daily,” noted Seif.

He further said trucks bound for Zambia and DRC spent more than six days to cross the border due to the heavy traffic and documentation procedures adding that, the infrastructure at Tunduma border post is outdated and overwhelmed by the influx of trucks.

Minister Mwakyembe, who was the chief guest said: “I have received your critical concern on truck dwell time at the border post. I promise that I will make a close follow up in collaboration with other parties to make sure this hitch is sorted out.”

On August 29, last year during the meeting between the minister for Trade and Industries, Dr Abdallah Kigoda and TATOA executive committee, the association proposed opening ten gates at Tunduma border point instead of the current single gate. “Among the 10 gates, we propose that two be for passengers, three for dangerous goods such as petroleum products which by their nature are not allowed to stay for long hours and the remaining five gates for containerized cargo,” TATOA told Dr Kigoda.

Meanwhile, Dr Mwakyembe has praised TATOA for being one of the leading players in the country’s economic development, noting that last year, a total of 40 million tons of cargo were transported, three million being transit cargo to or from the neighboring countries.

“Statistics show that there has been an increase of 400 percent of cargo transported to the neighboring countries from 2006 up to 2012. This achievement is the outcome of the good leadership of TATOA and they deserve member’s recognition and on behalf of the government I would like to congratulate you for your commendable leadership,” applaud Mwakyembe.

Dr Mwakyembe also had promised to take into consideration the stalemate request from TATOA, asking the government to hand over the Kihonda Driving Institute in Morogoro to be run by TATOA. “I have received by two hands your request to run Kihonda driving institute, I personally believe that, it is important to have competent drivers who have attended proper driving training, I will sit with your chairman to see what we can do and also to meet with the concern minister,” he said.

The minister for Industries and Trade Dr Abdallah Kigoda concurred with TATOA that the challenges facing the transport sector need an urgent intervention. “Surely these weighbridges and roadblocks are among the Non Tariff Barriers (NTBs). They should be reduced to increase efficiency and save time in transportation of goods,” he said

Dr Kigoda also advised TATOA to come up with cost-effective analysis if they want their proposal on the abolition of bothersome levies such as city service levy. “We need a win-win situation without harming any side. The government needs tax and you need profit,” he stressed.

For his part, the minister for Finance, Dr William Mgimwa praised TATOA, for their commendable role in the country’s economy. “Statistics show that, transport sector plays a pivotal role in providing employment for our people, as well as being a large contributor in taxes, ” he said.

According to Dr Mgimwa, the transport sector is very important in implementation of the economic development of the country and the government recognised the role of TATOA in this fact.

Meanwhile, TATOA general meeting has elected eight new members to serve as the executive committee,

According to TATOA’s constitution, the executive members have also re-elected the former chairman, Seif Ali Seif to the post, and Angelina Ngalula as the vice chairperson.

Other executive members include Zacharia Hans Pope, Elias Lukumay, Omar Kiponza, Alkarim Dawood, Alistair James and Ally Azim Dewji.