Browsing: Development

The falling price of crude oil spells good favour for importers in Africa. The price of crude has been on a steady drop despite attempts by producers to cut output. As a result, many African countries are taking advantage of the situation and stock piling their reserves.

Take for instance the case of East Africa, crude oil represents more than 20 percent of Tanzania’s annual imports. So a drop in price of crude means the country can afford to buy more and reserve for future use. However no official report has been issued as to the government policy on the matter.

The issue that arises here is the matter of crude versus refined oil. Africa, Tanzania included, imports refined oil which is more costly than crude but with falling prices of crude then follows that  even the price of refined oil has taken a dive

As such, the country is …

Countries neighbouring Tanzania including Uganda, Rwanda and Zambia have barred truck drivers from the country to cross their borders. The development comes as cases of the COVID-19 in Tanzania now reach 480 with 196 new cases reported both on the mainland and on the island of Zanzibar.

Of these, 174 are from Tanzania Mainland and the other 22 are from spice isles of Zanzibar. The grim news gets only worse with the announcement of six more deaths bringing the total number of deaths to 16.

Not all is doom and gloom, there are reports of 167 people recovering from the virus and of these, 36 are from Zanzibar and 83 are from the Mainland.

Meanwhile, truck drivers are protesting the strict border measures placed on transit vehicles. For example, at the Mutukula border with Uganda, it is reported that several drivers have tested positive for the coronavirus and been denied …

Rwanda is poised to launch what it refers to as the ‘COVID-19 recovery fund’ that will serve to finance economic recovery efforts post the virus pandemic.

Among the sectors slated to benefit from the recovery fund is the country’s tourism sector. It only makes sense since, the tourism sector is one of the most affected sectors along with the catering and hospitality sectors as well.

In so doing Rwanda, which actually called for an emergency East Africa Community (EAC)  Heads of State meeting to deliberate regional response to the coronavirus pandemic, has again set precedent been the first country in the region to set aside recovery funds for the coronavirus aftermath.

The affected businesses across various economic sectors will be afforded access to low interest and even interest free loans. The loans are expected to help the business get back on their feet serving as operating capital.

Of these, it …

Most businesses are looking for digital options to conduct their businesses and banks are no exception. Already the economy was tipping towards digitizing most all its activities but with the onslaught of the coronavirus, digitizing is no longer optional but a must.

Banks are now pushing for 100 percent digital migration of their customers seeking at least 90 percent of their services to be offered remotely. In Tanzania, CRDB Bank has announced that it is aiming to increase online and simbanking to 90 percent by the end of the year.

To achieve this goal, the bank has launched a campaign to mobilize online and mobile phone services for all their customers. The bank is now working to raise public awareness and increase use on online services rather than going with the traditional way of standing in line at the bank.

The press release quotes a high ranking bank official, the …

The price for crude oil is down 60 percent since the year started and it is only tumbling further, global oil news reports.

On the one hand, analysts blame the ongoing coronavirus pandemic and on the other the price war between Saudi Arabia and Russia is said to have contributed to the sharp drop.

Even the movers and shakers are feeling the pinch, oil in the US plummeted 34%, crude oil falling by 26%, and brent oil falling 24%. Associated Press reports that prices this week dropped to an 18 year all time low of under USD20 a barrel for the US.

Speculators say it is the best time to invest, pessimists would have you shy away from taking the risk.

The idea is a simple business law, buy when prices are low and sell when prices peak, so technically, the advice to buy into the oil business now is …

As the number of new coronavirus infections reaches 53, the government of Tanzania has ordered schools to stay closed indefinitely, evidence of the uncertainty that haunts these murky coronavirus times.

It is the crowded commercial port city of Dar es Salaam that is most affected, in fact all the  53 new Covid-19 reported cases are in the city of 6 million plus people.

There are 4 new cases since the last new infection was reported on Monday making it 4 new cases in just 3 days, that is a rate of almost one new infection per day this week.

The development comes inspight of all precautionary measures that the city has taken including having hand sanitizers in every store, government office, market place and even public transport vehicles.

Union & Labour Day cancelled days from annual celebrations

With the exponential increase in rate of infections, and the spicy Islands …

The construction industry in Tanzania contributed an average of 13.6% to Tanzania’s GDP over the last two years representing a whopping USD6billion.

The government of Tanzania has dedicated more than a quarter (25.4%) of its annual national budget to infrastructure development projects. With such high stakes, the construction sector now offers new investment and employment opportunities for Tanzanian youth.

Meet Michael Kimei, the 33 year old young entrepreneur and born again Christian. Mr. Kimei is Owner and Manager of Aggregate Crushing Ltd, a construction company in Tanzania, the epitome of youth self employment.

“I have had passion for business ever since I was a child, and as a God fearing man and a firm believer of the gospel of Jesus Christ, my work is centered around living a God ordained life and putting hard work towards setting up my own business and taking it to golden heights for the glory …

Micro financing is the go to solution for small businesses as banks tighten lending conditions to stifle Non Performing Loans (NPLs). In Tanzania, as elsewhere, NPLs are no longer a problem for individual banks, rather a national economic problem managed by the Central Bank.

The Bank of Tanzania (BoT) now provides guidelines for banks to curb NPLs and to help, it has created what is referred to as Credit Reference Bureaus. These bureaus are meant to protect banks against bad credit or more directly, to protect them against bad debtors.

In Tanzania, there are now two credit reference bureaus both meant to protect banks from crippling NPLs. Rather than deal with recovery of bad loans, the bureaus are meant to keep banks from lending to potentially ‘bad debtors.’

Unchecked NPLs could bring a bank to closure, that means affecting all other bank customers, now multiply that across several banks and …

There is need for Tanzania to involve the private sector to help it fight against illegal fishing if the country is to curb the devastating economic sabotage.

The country is now grappling with illegal fishing, but with the ever depleting amount fish in Lake Victoria and other inland water masses as well, it seems to be a losing battle this far.

The already trouble sector, contributing an average of 2.2 per cent to the Gross Domestic Product (GDP) is taking more hits from illegal fishing.

So bad is the crisis that last month, while addressing the nation from the Lake City of Mwanza, the country’s President John Magufuli made a public appeal in to end the detrimental practice.

The president described illegal fishing as economic sabotage and warned that the nation is losing a vital natural resource, a key economic activity that provides daily livelihood for many and is a …

The deadly coronavirus has brought the World to a standstill, spread through touch, African financial institutions are now going cashless to beat the virus.

The exchange of money, in cash, risky further spread of the virus, an obvious solution is to go cashless, use digital payments only. However is Africa ready?

In the face of this global tragedy, Africa’s fast digital penetration seems to have come in the nick of time. Led by the telecom companies, Africa leads the globe in use of mobile transactions.

Even in the most remotest corners of the continent, peasant farmers, pastoralists herding cows, all can be found with a mobile phone registered for mobile money transactions. Even the smallest shops accept mobile money payment for even the smallest purchases. The only limitation has always been the expensive cost of the service, however that cost is irrelevant if the money is not withdrawn to cash.…