Category Archives: Finance,Taxation and Investment


Here is the last part of the 2014 Tanzania National Budget review. Fiscal measures The proposed fiscal changes are as follows:

•• Reduce duty rate on:
– Buses under HS Code 8702.10.99 carrying more than
25 passengers, from 25% to 10% for a period of 1 year.
– Papers under HS Codes, 4805.12.00 and
4805.30.00 only, from 25 % to 10 %.
•• Increase duty rate on:
– Chemical based (petroleum) aerosol spray under HS Code
3808.91.39 from 10% to 25%.
•• Grant duty exemption on:
– Machinery spares and inputs for use in development and
generation of wind and solar energy.
– Importation of Electronic Fiscal Devices for a period of one
year (Tanzania only).
– Importation of goods used in the manufacture of gas
•• CET rate:
– Extend the stay of application of the CET rate of 35% on
wheat grain under HS Codes 1001.90.10 and 1001.99.90,
and apply a CET rate of 10 % for the period of one year.
•• Continue to grant duty remission to:
– Soap manufacturers using LABSA raw materials under HS
Code 3402.11.00; HS Code 3402.12.00 and HS Code
3402.19.00, from 10% to 0% for a period of one year.
– The Armed Forces Canteen Organisation for another year.
•• Duty exemption
– Remove duty exemption on splints used in manufacturing
•• Taxes due on the importation of petroleum products must be
remitted on importation, rather than 45 days later.
•• The removal of cement from the list of deemed capital goods
which are tax exempted under the Tanzania Investment Centre.
•• An increase in the minimum capital requirement for foreign
investors through Tanzania Investment Center from US$ 20
million to US$ 50 million.
•• The amendment of the Business Licensing Act, No. 25 of 1972 to
enable the Government to impose new business licensing fees.
•• Reductions of the export levy on raw hides and skins from
90% or TZS 900 per kilogram to 60% or TZS 600 per kilogram,
whichever is the higher.
•• The amendment of the Vocational Education and Training Act,
CAP 82, in order to include additional institutions in the list of

Financial Sector
•• Launching of the National Financial Inclusion Framework (NFIF).
•• Tanzania Agricultural Development Bank (TADB) is established.
It’s operationalization is in progress.
•• Growth in the number of Banks from 51 in 2013 to 53 in 2014.
and insurance companies from 28 in 2013 to 30 in April 2014.
•• Capital requirement for community and commercial banks
remain unchanged – compliance is expected by 2015.

Infrastructure Development
Transport infrastructure
•• Total budget of TZS 2,109.0 billion has been set aside for
procurement of wagons, rehabilitation of the central railway line
and for the construction and rehabilitation of roads and bridges.
•• Infrastructure development is geared towards reducing
congestion in urban areas, costs of transport and transportation
of goods and services.
•• TZS 90 billion set for construction of Kinyerezi I gas fired
electricity generation plant.
•• TZS 290.2 billion is for Rural Electrification Agency (REA) for
distribution of electricity in rural areas.
Oil and Gas
•• TZS151billion set for the completion of gas pipeline from Mtwara
to Dar es Salaam.
•• Introduction of new natural gas laws.
•• Agriculture created 130,974 jobs.
•• Budget set aside a total of TZS 1,084.7 billion for strengthening
irrigation infrastructure, construction of warehouses and markets
and to create available loans for promotion of food and cash
crops production.
Human Resource Development
•• Government plans to support youth skills development in oil and
gas courses in the country and abroad. Currently 124 students
will be financed by the Government and 35 students will be
awarded scholarships by Development Partners.
•• Total of TZS 1,588.2 billion has been set aside for procurement
of medicines, prevention of epidemic diseases, and immunization
for children, construction of hospitals and dispensaries and HIV
and malaria control.
Water and sanitation
•• Total of TZS 665.1 billion has been set aside to improve urban
and rural water infrastructure which includes continuing with
the construction of 10 water wells in every Local Authority.


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Credit card myths busted

Credit card myths busted When it comes to credit cards, there are a lot of nasty myths and misconceptions passed around. These can often scare off first-time applicants for standard and balance transfer credit cards, but most are untrue and are not worth paying attention to.To clear things up, let’s bust some credit card myths.Myth

via Credit card myths busted.


Clarification on 5% Withholding Tax on Services – Pracice Note No. 01/2013

Following the issue of Practice Note No. 01/2013  for Withholding Tax on Payments of Service Fee to a Resident Person under Section 83(1) (c) of the Income Tax Act, Cap. 332 was issued in  August 2013, a lot of issues have been  raised by various groups who are affected by the it.


Some people Confuse when the Law says Resident Person  Whether the Practice Note is applicable to Zanzibar residents or not;

The Practice Not number 01/2013 on withholding tax on service fee paid to a resident person under section 83 (1) (c) of the Income Tax Act, Cap 332 was made under Section 130 of the Act. Income tax is a Union matter, therefore the practice Note is applicable to all parts of the Union.


This Practice Note is issued under Section 130 of the Income Tax Act, Cap. 332 as amended from time to time.

 This practice note was intended to address administrative problems arising from the wide scope of the recently introduced withholding tax on any service fee payable by a resident person to another resident person.

I will try to clarify on Some of issues Raised , This is to my Understanding of the practice as published by Tanzania Revenue Authority.

a)       Lack of clarity between paragraphs and about types of services subject to withholding tax

Generally, the services whose payments are subject to withholding tax are professional services or consulting services of independent business character. The practice note under paragraph has gone further to list these services to be those of scientific, literary, artistic, educational or training activities of physicians, surgeon lawyers, engineers, architects, surveyors, dentists, accountants and auditors. This list represents services falling under ‘’professional or consulting ‘’. The objective of the practice note is to cover service whose payments are subject to withholding tax under section 83 © of the Income Tax Act, Cap 332.

(b) Are services not listed in paragraphs and are subject to withholding tax.

The intention of the practice Note is to narrow down the scope of the application of Section 83(1)(c) to professional or consulting service only where a resident person pays service fees to another person. Paragraph of the Practice Note provides for the service that are of professional or consultancy nature which were intended to be subject of the withholding tax. This paragraph has listed some of the professional or consultancy services. However, this paragraph has only some of The professional or consultancy services falling within the withholding tax net and hence the list is not exhaustive. In so far as the service is a professional service or a consultancy service it falls within the ambit of paragraph

Paragraph has provided a list of payments that are excluded from the scope of the 5% withholding tax that would have otherwise been subjected to the tax by virtue of Section 83 (1) (c).

Therefore, in order to determine whether a service fee payment is subject to withholding tax of 5%, one has to check whether the service fee is of a professional or consulting in nature. If the service is not professional or consulting in nature then the payment in respect of the service is not subject to withholding tax deduction. On the other hand, if the service is professional or consulting in nature and it is not specifically listed under paragraph then the payment is subject to withholding tax.

List of  Services Not Applicable to WT Deduction:

SN                Type of Service Applicability of withholding tax
1 Hotel/ accommodation Not applicable
2 Security services Not applicable
3 Clearing Services Not applicable
4 Loading and offloading services Not applicable
5 Storage services Not applicable
6 Packaging Services Not applicable
7 Vehicle Rental Not applicable
8 Equipment rental Not applicable
9 Supply of agency staff Not applicable
10 Telephone Services Not applicable


Blessed Sunday ALL



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Dar es Salaam Stock Exchange Updates: weak performance compared to Last week results

THE Dar es Salaam Stock Exchange (DSE) performed dismally in both turnover and activity levels last week
as compared to the previous week’s trading.

Turnover amounted to 879m/-, a 92.3 per cent decline compared to 11.3bn/- of the previous week while activity
level shrunk, with shares traded declining to 1,344,490 from last week’s 34,679,010.

The weekly market commentary by Tanzania Securities Limited (TSL) shows that the DSE All Share Index (DSEI) gained grounds by 0.22 per cent to settle at 1,611.15.

The Tanzania Share Index (TSI) closed at 1,961.23, mainly contributed DCB, NMB and TBL counters that closed the week at 500/-, 1,760/- and 3,340/- share prices, respectively.

Both Indices strengthened with the banking segment Index gaining 2.32 per cent to close at 2,084.77 points, buoyed by gains made on the DCB and NMB counters.The Industrial and Allied Index closed at 2,063.09 points, thanks to gains on TBL counter.

Banks accounted for 94 per cent of the week’s total volume traded and 76 per cent of the market value. Mainly local investors dominated in CRDB counter trading during the week, with a mere one per cent of the counter turnover coming from foreigners.

The counter traded 851,308 shares at a price of between 320/- and 325/-. NMB transacted 151,528 shares at
between 1,740/- and 1,760/- per share.

Twiga was the most active counter among the Industrial and Allied sector during the week, moving 59,011 shares
at a price of 2,700/- each. Simba followed with 14,400 shares transacted at 2,400/- per share while TBL closed the week at 3,340/- per share having moved 7,700 shares.

A total of 3,553 shares of Swissport changed hands at 2,240/- each while TCC moved 100 shares at 6,800/-.

The PAL counter moved 400 shares at 475/- and TTP moved 50 shares at 600/- each share as TOL counter remained
dormant for the whole of the week.



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Gold outlook worst in commodity survey

Gold outlook worst in commodity survey



Gold has the worst 12-month outlook among commodities and will trade below $1,400 an ounce in a year, according to an investor poll by Credit Suisse Group AG.

Sixty percent of respondents named bullion as having the worst outlook, 18 percent picked copper and 16 percent selected corn, the bank said in an e-mailed report today. Fifty-one percent predicted gold will fall under $1,400 in 12 months, it said. The bank polled 185 investors including hedge funds, pension funds and family offices on May 15 in London.


Gold has the worst 12-month outlook among commodities and will trade below $1,400 an ounce in a year, according to an investor poll by Credit Suisse Group AG.

Sixty percent of respondents named bullion as having the worst outlook, 18 percent picked copper and 16 percent selected corn, the bank said in an e-mailed report today. Fifty-one percent predicted gold will fall under $1,400 in 12 months, it said. The bank polled 185 investors including hedge funds, pension funds and family offices on May 15 in London.

“Bearishness for gold was a very clear consensus,” said Kamal Naqvi, the head of commodities sales for Europe, Middle East and Africa at Credit Suisse. “It’s not about just not buying gold, it’s about shorting it,” or wagering on a drop.

Gold slumped into a bear market last month as investors lost faith in the metal as a store of value. Bullion is down 17 percent this year, compared with the 2.9 percent drop for the Standard & Poor’s GSCI gauge of raw materials.

Fifty-three percent of investors expect commodity prices to stay near current levels, Credit Suisse said. Most were underweight raw materials or had zero exposure, while they expected to be overweight or neutral in 12 months, the bank said. Investors named relative value trades, fundamentally based directional trades and volatility as the best ways to extract value from commodities.





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Press Release:Dun & Bradstreet Promises Most Comprehensive Credit Bureau in Tanzania

L-R Adrian Pillay (GM Business Development), Adebowale Atobatele (GM Tanzania Bureau) Miguel Llenas (C.E.O) at the Dun & Bradstreet Credit Bureau Workshop in Dar es Salaam recently.

Participants at the Dun & Bradstreet Credit Bureau (T) Limited Workshop

Press Release

Dun & Bradstreet Promises Most Comprehensive Credit Bureau in Tanzania

FINANCIAL institutions in Tanzania are set to enjoy better protection from loan defaulters following the announcement that Dun & Bradstreet Credit Bureau, a company licensed by the bank of Tanzania to provide credit reference services in Tanzania announced that it will commence operations in a few weeks.

The workshop which was attended by Senior Executives of Banks and Financial Institutions in Tanzania, also had in attendance representatives of the Bank of Tanzania, and the International Finance Corporation who graced the event as observers and promoters of the credit reference system in Tanzania.

Speaking at the workshop, General Manager, Dun & Bradstreet Credit Bureau Tanzania Limited Mr. Adebowale Atobatele, explained that with the use of a credit report in the assessment of loan applicants, banks and financial institutions can easily estimate the credit worthiness of loan applicants thereby ensuring that they approve the loans of only those who they (banks) consider to have the propensity to repay based on their credit history.

Speaking further on the benefit of credit reporting, Mr. Adebowale Atobatele said, “The benefits of credit reporting are multi-dimensional. For example, banks and financial institutions, they can expect to make accurate risk predictions, prevent loss, reduce their NPL ratio and increase their ability to lend to a broader risk segment, Also, with a good credit report, consumers can expect to have their loan applications objectively reviewed, they can expect to have easy access to credit and build a strong reputation collateral.”

Speaking during the opening of the workshop D&B Chief Executive Officer (CEO) Miguel Llenas said, “Our aim is to build the most comprehensive Credit Bureau in Tanzania thereby playing a significant role in boosting Tanzania’s economy and financial soundness. We are in Tanzania to help improve the lending culture. We want to see a situation where people develop a culture of repayment not only because it is morally right to repay loans but because it is in the best interest of the economy.”

Credit bureaus, established by Dun & Bradstreet, have reduced the information asymmetry between lenders and borrowers thereby creating transparent and efficient credit information system.

Dun and Bradstreet Credit Bureaus Tanzania Ltd. will work closely with Central Banks, commercial banks, financial institutions, insurance companies, economic development boards and various government entities and to build a robust credit information infrastructure for Tanzania.

Nevertheless Mr. Adrian Pillay General Manager Dun and Bradstreet Credit Limited named some D&B Credit Bureaus implementations as Credit bureau of Nepal, CRB that is in Sri Lanka, Emcredit that is in Dubai, Credit Reference Company that is in Nigeria and iScore in Egypt.

Participants at the workshop expressed hope, that with the presence of Dun & Bradstreet Credit Bureau in Tanzania, the country’s financial sector will be further protected from collapse.


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Understanding The Real Value of Gold

Understanding The Real Value of Gold

Investments, although very difficult for most of us to theoretically understand, practically apply and emotionally stick to as to what asset allocation to follow or what time frame to adhere to, there is one investment which most of us, particularly Indians, love and also believe they understand — gold.

A layman may not understand the benefits of investing in stocks or bonds or hoarding cash but the same person might easily understand and believe that he knows the value of gold.

Besides traditional options like purchasing jewellery or investing in gold bars and coins, there are now a plethora of new options available like the National Spot Exchange, Gold ETFs and also Gold Fund of Funds.

The gold bulls made a killing over the past decade with gold prices multiplying more than seven times in 11 years from USD 80/10 gm in 2001 to USD 600/10 gm by 2012.

However, the recent unprecedented crash in gold prices by a nearly 20 per cent in few days have left the most convinced gold bull question the yellow metal as a good investment option.

What do we mean by an investment asset? It would mean an asset which puts money in our pockets by generating income. For example, a bond gives interest, equities give dividends, house gives rent. But what cash flow does gold give? Probably nothing.

Therefore, gold cannot be termed as investment asset but merely a “speculative item” because the person buying gold is speculating that the price of the gold will rise in future and he will be able to sell it at a higher profit — there is simply no interim income from it.

Most assets like steel, oil, copper have industrial use but what use does gold have besides making golden tooth? If the industrial use of gold is practically nothing, why is it so costly?

Its value is high because governments and Central Banks (led by the US Fed) are running their money printing machines continuously, relentlessly and at a brisk speed.

The US Dollar has lost 97 per cent of its value against gold over the past 40 years. Hence, its not gold which has gone up but it’s the USD which has gone down because of the indiscriminate money printing by the US Fed.

Now, has gold risen consistently over the past few decades? No, not at all. International gold prices crashed from $850 per ounce in 1981 to $250 per ounce in 2001, negative return over a 20-year long period. However, the “rupee value” of gold was up during the same period, simply because the Rupee which was Rs 8 per USD in 1981 crashed to Rs 45 by 2001.

Hence, because the Indian currency lost significant value against the USD Indian gold prices in rupee terms went up while actual international gold prices in USD crashed during the same period. And has gold given great returns over a 20-year period? No.

Indian gold prices are up by 8.9 per cent CAGR over the last 20 years while the BSE Sensex has given returns of 15.3 per cent CAGR over the same period. In fact, over the past 20 years, bank FD might have given better returns than gold.
Lot of the so called financial experts will educate you that gold is a hedge against inflation.

However, that may not necessarily be the case. Its not directly related to inflation but to “real interest rates” of USD denominated assets like US Treasuries.

When the real interest rate is down and close to inflation, gold is likely to appreciate in value because to hold gold (which does not give any cash flow), the investor has to forego interest on his investments and hence real interest rates have to be low or negative so as to induce the investor to hold onto something which does not give any real cash flow.

Till the US Fed continues to print money, the USD will remain weak. Till there is uncertainty in the global economy, the money printing will continue.

Till the USD remains weak, some shift from Asian Central Banks like China, India will happen from USD denominated securities to hard asset like gold.

Till there is uncertainty, people will move to the so called safe heaven of gold. Till the rupee remains structurally weak against the USD over the long term, Indian gold prices would be supported in rupee terms. Till women in India love gold ornaments, its demand will rise.

So, the next time you invest in gold, weigh all these factors and remember that gold is not an income producing investment asset but merely a speculative item whose price may go up or down depending on the conditions which determine its value.

What makes gold dearer

Value of the US Dollar: Since gold is internationally quoted in US Dollar, the weaker the US Dollar, the higher the price of gold and vice versa

Real Interest Rates in US Dollar denominated assets: Low or negative real interest rates results in higher gold prices and vice versa
Indian rupee vis-a-vis US Dollar: Since Indians buy gold in rupees, the weaker the rupee against the US Dollar, the higher will be the price of gold and vice versa


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BoT chief: Shilling remains relatively stable

Prof Ndulu

The Tanzania shilling has been the most stable currency in the Eastern African region, but since the beginning of this year, it fails to hold against the US dollar and currencies of the country’s other major trading partners.

The shilling currently trades at 1,620/- for the greenback, up from last year’s average of 1,580/-. Staff Writer ABDUEL ELINAZA had an interview with the Central Bank Governor, BENNO NDULU, on the issue. Excerpts…

QUESTION: Why is the shilling sliding down against the US dollar to reach 1,620/- by mid-last month?

ANSWER: The movement of the shilling to the US dollar to exchange at 1,620/- is the outcome of normal market forces as opposed to failure of country’s monetary policy. For the past 14 months, since December 2011, the exchange rate of the shilling against the US dollar has remained stable in comparison to the depreciation for the previous year and in comparison with many currencies including those of our major trading partners.

The annual depreciation of the shilling against the US dollar at the end of January 2013, was only one per cent. In the 12 months to December 2011, the shilling had depreciated by nearly 15 per cent, but the measures we took have considerably slowed down the rate of depreciation.

Q: Has the tight monetary policies failed?

A: No. Not at all. Actually, the data shows that while Tanzania Shilling depreciated by 1 per cent in the 12 months ending January 2013, the Kenyan shilling depreciated by 4.6 per cent and the Ugandan shilling by 11.7 per cent. At the same time the exchange rate of the South African Rand against the US dollar depreciated by 11.8 per cent, while that of Indian Rupee depreciated by 6.8 per cent and that of Japanese yen by 18.6 per cent during the same period. There has been significant increase in the demand for the dollar among non-typical users.

Typically we pay for power generation in shillings. Currently the Independent Power Producers (IPPs) — other than TANESCO are mostly paid in foreign exchange — since they have to meet their obligations in foreign currency. The weekly demand for US dollars by TANESCO to purchase power from the IPPs and to pay for their fuel import bill is substantial and at present in excess of four million US dollars, putting additional pressure on the amount spent on importing expensive fuel for transportation and industrial use.

The annual bill for importing expensive oil still stands at more than 3,300 million US dollars a year. Furthermore, foreign contractors building roads and other infrastructure projects funded by domestic revenue have to be paid and they typically externalise their revenues adding to the demand pressure for foreign exchange.

Q: Tanzania is now taking the IMF Standby Credit Facility loan of about 117 million US dollars. Is this because we have failed to boost exports and thus the foreign exchange inflow?

A: The decision by Tanzania to take the IMF’s Standby Credit Facility of about 117 million US dollars is not unusual. This decision is based on our assessment of the balance of payment needs, external debt sustainability position and concessionality of the loan. Tanzania has been borrowing from external concessional sources such as the World Bank and the African Development Bank to finance various development projects and programmes in order to boost economic growth and expedite poverty reduction.

It has also borrowed from the IMF from time to time for balance of payments purposes. In its endeavour to expedite implementation of development projects, including transport infrastructure, power generation and the gas pipeline, the government has decided to borrow from nonconcessional sources.

This decision has been taken with careful consideration of the country’s debt sustainability status. In 2011, the government borrowed 221.8 million US dollars for power generation. In 2012, some 213.5 million US dollars was borrowed for construction of the gas pipeline.

Source: The Daily News,


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Tanzania Money Market Updates


The Tanzanian shilling was stable against the US Dollar on Wednesday as there were fewer inflows of US Dollar in the market.

Commercial banks quoted the local unit at 1621/1631 against the dollar, which was the same as Tuesday’s close of 1621/1631.


Wednesday, Today, DSE recorded a total turnover of TZS 44.13 mln from 72,388 shares traded in 33 deals in comparison to the previous session which recorded a turnover of TZS 34.30 mln from 150,702 shares traded in 39 deals.

CRDB counter had 1,469 shares traded at weighted average price of TZS 160 per share in 18 deals.

SIMBA counter had 20 shares traded at weighted average price of TZS 2,400 per share in 1 deal. SWISSPORT counter had 5,100 shares traded at weighted average price of TZS 1,820 per share in 3 deals.

TBL counter had 3,199 shares traded at weighted average price of TZS 3,100 ex dividend per share in 7 deals.

Today foreign investors generated a total turnover of TZS 24.65 mln for the purchase of 49,300 CRDB shares and 13,300 NMB shares. Meanwhile on AON Board there were 810,100 TBL shares on offer at TZS 3,100 per share.


On Wednesday, the interbank money market recorded a total volume of TZS 36.70 billion whereas the shilling was exchanged at the levels of between 7.00% and 3.00%.

Source: The CRDB BANK



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African Cities Become Next Frontier For Business

African cities are the next big markets for investors thanks to the rising consumer spending and massive infrastructure investments.

According to a new report by the Economist Intelligence Unit, eight of the world’s 20 fastest growing economies will be African.
Tanzania not in the list.

“A recent survey conducted by The Economist Group of 217 global companies based in 45 countries revealed that expansion in Africa is a priority for two thirds of them within the next decade,” notes the report released last week.

The report notes that although Africa’s growth story has revolved around commodities, Africa’s growth is now becoming more diverse because of the “peace dividend” being realised after years of armed conflict and military rule that has given way to democracy.
rapid urbanisation

There is also rapid urbanisation as half of all Africans are under 20 and are rapidly moving to cities. According to the Habitat, more than 40 per cent of Africans now live in urban areas.

Other growth drivers include improved governance because of greater accountability that comes hand-in-hand with democracy, and the slow strengthening of institutions; growing trade that is replacing aid, thanks to the growing trade relations with China.They also include the rise of technology exemplified by the rise in the number of mobile subscribers in Africa that exceeded the 0.5 billion mark in 2010, allowing companies greater access to consumers.

The infrastructure investment largely by Chinese companies is improving the state of roads, airports, and railway lines, fixing critical infrastructure component that is attracting foreign investors and sparking more domestic investment.
highetst potential

MasterCard African Cities Growth Index 2013 indicates that Accra, Lusaka and Luanda, the capital cities of Ghana, Zambia and Angola respectively, as the Sub-Saharan African cities that have the highest potential for growth over the next five years.

The index was developed in the final quarter of last year and analysed 19 cities across Sub-Saharan Africa ranking them according to their growth potential between last year and 2017.

“Growing urbanisation, combined with the fact that the center of global economic gravity is shifting to dynamic emerging markets such as those found in Africa, means that the continent’s cities will play a much bigger role in driving the economic growth of their respective countries,” said Michael Miebach, president, MasterCard Middle East and Africa.

Among the 25 cities that the Economist Intelligence Unit’s report identifies as being the growth frontiers include Cape Town, Durban, Johannesburg, Nairobi, Tunis, Dakar, Cairo, Tripoli, Addis Ababa and Casablanca among others.

And as for Dar ES Salaam. Let us hope for the best. I would love to see it on the list.


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By Savita Iyer-Ahrestani on Financial Planning

I just read this article on FP site and found it very true and informative.

To all Financial institutions and advisors , women and Finances should be your target for 2013. The study was done on US market but can equally relate to our markets.

Financial advisors who think of women as a minority market segment probably need to think again.

Studies indicate that women are becoming a majority rather than a minority and represent one of the fastest growing client segments in the U.S.—a segment that both large financial firms and independent financial advisors cannot afford to ignore going forward.

Consider that 53% of women who participated in a recent Prudential Financial survey entitled “Financial Experience & Behaviors Among Women” are now the primary breadwinners for their families.

“Whether it’s because of their partners losing their jobs, because of divorce or because they’re deciding to marry later, women are increasingly becoming the major breadwinners in their households,” says Caroline Feeney, president of agency distribution at Prudential Financial. “We expect that this trend will continue as women are also graduating from school at a higher rate than men, successfully getting into the workforce and then succeeding at their jobs and rising in the ranks.”

All these social shifts have resulted in a sharp increase in women’s earning power and wealth creation power, says Teresa Dentino, founder and CEO of The Financial 411, a financial educationfirm in Woodside, Calif. Women today make up just under half of the nation’s millionaires, she says, and some have forecasted that they will hold two-thirds of the nation’s wealth by 2030.

Although many firms have recognized the great business potential that women represent and have begun to make serious efforts to better understand women and cater to them in a more productive and profitable way, Dentino believes that most still have a long way to go before they get a proper handle on how to really connect with women.

“While many firms are definitely taking note of the importance of women today, they still don’t quite know how to approach women in a meaningful way and to really understand women’s requirements,” she says.

Dentino believes that women need education more than anything else. As much as they may hold the wealth, most women have not had the direct experience needed to understand finance and financial planning, she says, so the onus is on financial professionals to give them the knowledge and understanding they need so that “women can connect the dots.”

“By educating women, you include them and this helps mitigate the lack of trust and fear they hold,” she says. “Education equals engagement plus empowerment.”

However, there’s a way to educate. More than anything, women don’t want to be talked down to, Dentino says, and the majority of financial advisors still feel like they have to “dumb things down” in order for women to understand them. Finding the right balance between bombarding women with technical jargon, graphs and numbers, on one hand, and “talking with them about their grandchildren or their kid’s school bake sale,” on the other, is the biggest challenge for advisors who want to reach out to women, Dentino says.

According to the Prudential survey, one in three women do not have a financial advisor but they are eager to work with an advisor to gain the tools and knowledge that they need.

“Advisors therefore need move from a transactional-based model to more of a relationship-based model, with a greater focus on education,” Feeney says. “The only way that women can become more confident about themselves and their financial planning abilities is when they get the knowledge they need and when they feel they can trust their advisor.”

According to Feeney, trust is at the core of what a woman wants from a financial advisor and is paramount in the female-advisor relationship.

“Our study showed that women are more apt to stick with an advisor once they have that trust in place, and they are more likely to place multiple products and service with one advisor,” Feeney says. “So while it may be additional work upfront in terms of education – both educating advisors on the importance of recognizing women as a potential market opportunity and then teaching them how to approach women correctly – I do believe that at the end of the day, it will be more than worth it for advisors to help female clients.”

That’s what Dentino believes, too, and she’s working with numerous financial firms to help them develop programs and train their sales staff on the many levels of adjustments they can make to better engage and serve their female clients.


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Submission of VAT returns Electronically Starts this October

Tanzania Revenue Authority in modernizing its operations as envisaged in its Third Corporate Plan has developed a web-based application which is to be accessed and used in filing tax returns and statements. The web-based return e- filing System has been developed with the prime objective of easing documents filing by Taxpayers. The System offers the following benefits:

  • Taxpayers will      interact with TRA while at their houses or offices.

  • Elimination or      reduction of queues at TRA offices during return filing days.

  • E-filing will      result in fewer errors and creates simple and quicker processing of      documents.

  • Taxpayers can save their records in their e-mail boxes or print       hard copies for future reference

The requirements for filing VAT returns electronically will be effective October 2012 and all Registered Taxpayers are required to register for Electronic Filing in order to be able to use the e-filing system.

Visit and click on the e-filing hyperlink to start the process.


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3 Ways You Can Evaluate Country Risk

For many investors, investing  internationally is an attractive way to gain additional diversification  and increased return for their portfolios. At the same time, however, many find  it hard to invest abroad due to lack of experience, unfamiliarity with the  foreign country and excessive amounts of information to analyze. To alleviate  some of these difficulties, we’ll look at a couple ways to help you more easily evaluate  the degree of risk in a country’s fundamentals.

Where  Does Sovereign Risk Fit?
Analyzing sovereign  risk factors is beneficial for both equity and bond investors, but perhaps more directly  beneficial to bond investors. When investing in equity of specific companies  within a foreign country, a sovereign risk analysis can aid in creating a macroeconomic picture of the operating  environment, but the bulk of research and analysis would need to be done at the  company level.
On the other hand, if you’re investing directly into a  country’s bonds, evaluating the economic condition and strength of the country  with these methods can be a good way to evaluate a potential investment in  bonds. After all, the underlying asset for  a bond is the country itself and its ability to grow and generate revenue.

Often, the most common method used by  investors, with time or resource restrictions that don’t allow them to do the  analysis themselves, is to rely on experts who spend all their time doing that  type of analysis. Calculating debt  service ratios, import/export ratios, money supply changes and all those other  fundamental aspects of a country, and attempting to incorporate them all into  the big picture, requires a significant commitment if you do it by yourself.  Thus, it is recommended against in favor of a number of easy-to-understand  indicators. Sourcing these tools from organizations focused on analyzing country risk allows more energy to be  focused on investing.

Euromoney Country Risk The  first tool that can be used to evaluate sovereign and political risk is the  Euromoney Country Risk survey. The ECR survey covers 186 countries and gives a  comprehensive picture of a country’s investment risk. The rating is given on a  100-point scale, with a score of 100 representing virtually zero risk.

In  general, the calculation of the ECR rankings is split between two overall  factors – qualitative (70%  weighting) and quantitative (30%  weighting). The qualitative factors are derived from experts who assess the  political risk, structure and economic performance of the country. The  quantitative factors are based on debt indicators, capital market access and  credit ratings. The rating for the qualitative and quantitative factors are  available separately, so if you believe the weighting importance to be different  than 70/30, you have the flexibility to manually adjust the weighting  yourself.

The Economist Intelligence Unit
The next popular credit rating information source is the  Economist Intelligence Unit (EIU). The EIU is the research arm of The  Economist and one of its best offerings is its Country Risk  Service ratings. These ratings cover over 100 countries, with an emphasis  on “emerging and highly indebted”  markets. The rating analyzes factors similar to the ECR rating, such as economic  and political risk, and provides a rating on a 100-point scale; however, unlike  the ECR rating, higher scores mean higher sovereign risk.

A benefit of the EIU ratings is that they  are updated on a monthly basis so trends can be caught much earlier than other,  less frequently updated methods. In addition, the EIU format offers investors  more analysis and provides an outlook for the country as well as two-year  forecasts for several key variables. So if you want to get a sense of the  direction a particular country is headed in for in the near future, this may  prove to be a useful tool.
Below is an example of the EIU ratings of a  handful of high-risk countries in early 2011.

Data source:, August 2012

Country Credit Survey ( The third  method, the Country Credit Survey, is also a rating service based on a survey of  senior economists and analysts at large international banks. The uniqueness of  this approach is appealing because it surveys people from companies that are at  the ground level, lending and providing capital directly to these countries. In  a sense, this adds a degree of credibility to the ratings because major  international banks typically do a significant amount of due  diligence before exposing themselves to certain countries.

Similar to  the other approaches, this rating is based on a scale of 0 to 100, with 100  being virtually risk-free and zero being equivalent to certain default. For  example, in March 2011, economists and analysts surveyed at major banks and  securities firms assessed that Norway was the country with the lowest  probability of default, with a score of 95.2. Meanwhile, they also assessed that  Somalia had the largest probability of default, with a score of  3.9.

The Bottom Line is
For investors  who have limited time and resources but want to diversify internationally, these  methods can be a great help to create a short list of countries that you may  want to invest in. Each method has its strengths and weaknesses, but it might be  best to use a combination or all of these popular data sources for country risk.  Each method can provide a unique perspective for the  investor.


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What Tim Cook didn’t tell you about the iPhone 5…

SOURCE: The Motley Fool

By now, you probably know almost everything there is to know about the iPhone 5…

And you’ve most likely already heard that:

check  Apple sold TWO MILLION iPhone 5s in the first 24 hours it was available for pre-order — which is more than double the number of first-day orders it saw for the iPhone 4S…

check  AT&T has set an all-time record for iPhone sales less than a day after making the iPhone 5 available for pre-order…

check  Industry experts, like Pipar Jaffray’s Senior Apple analyst, Gene Munster, estimate that Apple could sell as many as 170 million iPhones in the coming year — and say that 80 million sales are already “in the bag”…

check  J.P. Morgan’s Chief Economist, Michael Feroli, has gone so far as to predict that sales of the iPhone 5 could boost our country’s GDP by as much 0.5% in the fourth quarter, and…

check  A recent Wells Fargo report projects that the phone’s release will be the single-biggest consumer electronics launch in history — trumping any TV, PC, cell phone, CD player, or VCR to ever hit the shelves…

But there’s one very surprising thing you probably haven’t heard about the new iPhone…

And while it may not change your mind about whether or not to buy one, it does explain why our top technology analysts say this historic launch could lead to a unique millionaire-making opportunity — the likes of which haven’t been seen since Ronald Reagan was in office.

Yet very few investors know anything about this obscure “backdoor” opportunity — and even fewer are taking advantage of it.  

Which is why we’ve put together a special in-depth presentation that explains everything you need to know about this cash generating opportunity. Plus, shows you how you can save up to $399 on what we believe to be a cutting-edge, first-rate product – if you act in the next 35 hours.

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Posted by on September 19, 2012 in Finance,Taxation and Investment


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The odyssey of retirement planning

Retirement planning, in a financial context, refers to the allocation of finances for retirement. This normally means the setting aside of or other to obtain a steady at retirement. The goal of retirement planning is to achieve financial independence, so that the need to be gainfully employed is optional rather than a necessity.

The process of retirement planning aims to:
1.Assess readiness-to-retire given a desired retirement age and lifestyle, i.e. whether one has enough money to retire; and
2.Identify actions to improve readiness-to-retire.

In July 2012 Tanzania Social Security Regulatory Authority (SSRA) amended the social security Laws, I suggest you read this article to have an idea of Retirements Planning and benefits… MJ

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Posted by on September 17, 2012 in Finance,Taxation and Investment


10 Books Worth Investing In

The financial services area is so deep and  so broad, there are enough good  books written about it to keep investors busy for a lifetime. If you are an  avid reader, here are 10 books you’ll want to add to your reading list. If it  has been a while since you last picked up a good book, any one of these  recommendations is well worth a trip to the bookstore or library.

“The Battle for the Soul of Capitalism” (2005) by John C.  Bogle John Bogle, a mutual  fund giant and long-time advocate for the little person, takes a  hard-hitting look at everything that ails the financial system in the United  States. From overcompensated CEOs and overpriced  mutual funds to Wall Street research scandals and the focus on short-term  results over long-term gains, Bogle lays bare the truth behind what went wrong  with capitalism. He also highlights the impact that mutual funds and their  boards of directors have on the corporate policies of the companies that they  run, and he provides a prescription for how stockholders can exercise their  will, reclaim the companies they own and put the financial system back on  track.

“Conspiracy of Fools: A True Story”  (2005) by Kurt Eichenwald Written by a senior investigative reporter  at The New York Times, this entertaining look at the Enron  meltdown introduces readers to the rogues’ gallery behind the biggest failure in  corporate history. From influencing the nation’s energy policy to misleading  investors and analysts, the audacity, arrogance and greed of these  characters is presented in a novelistic style that will keep you reading from  the first page to the last.
SEE: Business Owners: Avoid Enron-esque  Retirement Plans

“Freakonomics” (2005) by Steven D. Levitt  and Stephen J. Dubner Popular, thought-provoking and controversial  are all good words to describe this look at how a self-proclaimed rogue  economist “explores the hidden side of everything.” This is an economics text  written for the average reader, not for Rhodes scholars, and it explores a host  of real-world topics ranging from violent crime and the hierarchy of drug  dealers’ networks to backyard swimming pools and baby-naming patterns.  “Freakonomics” and its 2009 sequel, “SuperFreakonomics”are interesting  departures from the financial services genre’s usual fare.

“Fooled by Randomness” (2004) Nassim Nicholas  Taleb Taleb draws on his experiences as a professional trader and  math professor to provide an intellectual look at the role of luck in achieving  financial success. He provides food for thought to anyone curious about the role  of skill in stock picking and the value of psychology in decision making.  Whether you believe that great fortunes are made through hard work and  persistence or merely via the fickle hand of fate, this book will bring a new  perspective to your ruminations. Fortune declared it one of “the  smartest books of all time.”

“Bull’s Eye Investing” (2004) by  John Mauldin When John Mauldin looked at the future, he didn’t see  the traditional buy-and-hold methodology  as a viable stock market strategy. Mauldin highlights the virtues of absolute  return investment vehicles, such as hedge  funds and old standbys like gold, as ways to make money in a decade that he  predicts will be marked by stagnant markets. Citing factors such as new  accounting standards and rising pension  costs, he paints a bleak vision of the future and uses a variety of studies to  make a compelling argument for his outlook and investment approach.

“A Mathematician Plays the Stock  Market” (2003) by John Allen Paulos

Most people know that numbers  play a huge role in stock market analysis, and they assume that mathematical  genius provides some hidden insight that mere mortals cannot hope to match.  Using personal insight from his own efforts to beat the Street, Paulos provides  a humorous and entertaining look at the mathematical theories and technical  analysis methods that all too often fail. If you like math, you will love  this book.

“Value Investing Today” (2003) by Charles H.  Brandes

Benjamin Graham, Warren  Buffett and Charles Brandes are all giants in the field of value  investing. Their stock screening, portfolio construction and insight into  the markets made them all famous – and rich. Brandes introduces the strategies  behind the success of the value approach. The third edition of this book,  originally published in 1989, updates supporting data and adds several new  chapters, including strategies to capitalize on international markets.

“The Millionaire Mind” (2000) by Thomas J.  Stanley

In his earlier book, “The Millionaire Next Door,” Thomas J.  Stanley collaborated with William D. Danko to provide a profile of the “average”  millionaire. In “The Millionaire Mind”, Stanley provides a detailed look at the  type of thinking that helped these millionaires amass  their wealth. Everyone who aspires to millionaire status shouldn’t just read  this book, they should study it.

“John Neff on Investing” (1999)  by John Neff The legendary manager of Vanguard’s Windsor Fund built  his reputation as a bargain  hunter extraordinaire. With a contrarian approach to picking stocks, Neff  bought low and sold high. For investors who count themselves among Neff’s many  fans, this account of how he got the job done is well worth the read. That said,  anyone reading this book in hopes of finding a shortcut to making a few bucks  will likely be disappointed – there are no quick fixes offered  here.

“The Millionaire Next Door” (1996) by Thomas J. Stanley and  William D. Danko

If you have ever had a burning desire to know “how  the other half lives,” this is the book for you. When looking for the rich, “The  Millionaire Next Door” advises us to forget the Lamborghinis, yachts and  personal helicopters and focus instead on the people who live across the street,  because the average millionaire isn’t who you might expect it to be. Many of the  folks with seven-figure bankbooks live in average suburban neighborhoods, drive  average cars and live just like the rest of us!


This list  of books is sure to broaden your perspective and may even make you question what  you already know. Regardless of which book you choose to read, when it comes to  finance and investing, a little knowledge can go a long way.

Source Investopedia


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Posted by on September 17, 2012 in Finance,Taxation and Investment


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Africa’s 100 Largest Frontier Stocks



You may not hear much about them in the pages of the Wall Street Journal or Financial Times, but Sub-Saharan Africa has its own set of blue-chip companies.

It’s important for investors to be aware of these giants of African commerce and industry because they tend to be less risky than their smaller counterparts.

The table below lists Sub-Saharan Africa’s 100 largest stocks (excluding those listed on the Johannesburg Stock Exchange).

They are ranked in order of US$ market capitalization as of July 20, 2012.

Note that Nigerian and Kenyan companies dominate the list, as do banks, breweries, and cement companies.

100 Largest Companies in Sub-Saharan Africa (ex S.A.)

RankCompanyCountryMarket Cap ($ millions)Industry
1.Dangote CementNigeria11,978Cement
2.Nigerian BreweriesNigeria5,456Brewery
3.Guaranty Trust BankNigeria3,158Bank
4.Zenith BankNigeria2,926Bank
5.First Bank of NigeriaNigeria2,394Bank
6.East African BreweriesKenya2,142Brewery
8.Guinness NigeriaNigeria2,082Brewery
9.Nestle NigeriaNigeria2,066Food
11.Mauritius Commercial BankMauritius1,450Bank
12.First National Bank of BotswanaBotswana984Bank
13.Equity BankKenya972Bank
14.Ecobank Transnational (Cote d’Ivoire Listing)Togo962Bank
15.Barclays Bank KenyaKenya901Bank
16.United Bank for AfricaNigeria881Bank
17.Access BankNigeria873Bank
18.State Bank of MauritiusMauritius860Bank
19.Kenya Commercial BankKenya832Bank
20.Lafarge WAPCONigeria809Cement
21.Stanbic IBTC BankNigeria805Bank
22.Delta CorpZimbabwe803Brewery
23.Barclays Bank BotswanaBotswana795Bank
24.Bamburi CementKenya775Cement
25.Unilever NigeriaNigeria761Household Products
26.Econet WirelessZimbabwe693Telecom
27.Standard Chartered Bank of KenyaKenya665Bank
28.Flour Mills of NigeriaNigeria634Food
29.Stanbic Bank UgandaUganda561Bank
30.PZ Cussons NigeriaNigeria511Home Furnishings
31.FNB NamibiaNamibia495Bank
32.Co-operative Bank of KenyaKenya479Bank
33.Tanzania BreweriesTanzania466Brewery
34.Standard Chartered Bank of GhanaGhana444Bank
35.British American Tobacco KenyaKenya442Tobacco
36.Illovo Sugar MalawiMalawi396Sugar
37.Botswana Insurance HoldingsBotswana380Insurance
38.Standard Chartered Bank of ZambiaZambia380Bank
39.Zambia SugarZambia369Sugar
40.Golden Star ResourcesGhana360Mining
41.Kenya Power & LightingKenya354Electric
42.Ecobank GhanaGhana351Bank
43.Standard Chartered Bank BotswanaBotswana349Bank
44.UAC of NigeriaNigeria341Retail
45.Union Bank of NigeriaNigeria340Bank
46.Dangote Sugar RefineryNigeria337Sugar
47.LetshegoBotswana335Financial Services
48.First City Monument BankNigeria335Bank
49.New Mauritius HotelsMauritius333Lodging
50.Lafarge Cement ZambiaZambia327Cement
51.Nation Media GroupKenya321Media
52.Namibia BreweriesNamibia306Brewery
53.Innscor AfricaZimbabwe303Conglomerate
54.Societe Africaine de Plantations d’HeveasCote d’Ivoire300Rubber
55.National Microfinance BankTanzania297Bank
56.Zambian BreweriesZambia296Brewery
58.Societe de Limonaderies et BrasseriesCote d’Ivoire289Brewery
59.PALM-CICote d’Ivoire288Palm Oil
60.Cadbury NigeriaNigeria286Food
61.Terra MauriciaMauritius286Conglomerate
62.Tanzania Portland CementTanzania278Cement
63.Bidvest NamibiaNamibia278Fishing
64.KenolKobilKenya275Petrol Retail
65.Total NigeriaNigeria274Petrol Retail
66.Ghana Commercial BankGhana273Bank
67.Zambia National Commercial BankZambia271Bank
68.Bramer Banking CorpMauritius270Bank
69.Unilever GhanaGhana266Household Products
70.Societe Generale de Banques en Cote d’IvoireCote d’Ivoire261Bank
71.Guinness GhanaGhana254Brewery
72.Skye BankNigeria250Bank
73.Kenya AirwaysKenya250Airline
74.Choppies EnterprisesBotswana249Retail
75.Rogers and CompanyMauritius248Conglomerate
76.OnatelBurkina Faso247Telecom
77.Societe de Caoutchoucs de Grand-BerebyCote d’Ivoire244Rubber
78.Athi River MiningKenya234Cement
79.Fidelity BankNigeria233Bank
80.Mobil NigeriaNigeria233Petrol Retail
81.Sechaba BreweriesBotswana227Brewery
82.Diamond Trust Bank KenyaKenya221Bank
83.Kenya Electricity Generating CompanyKenya218Electricity
84.Diamond BankNigeria215Bank
85.Tanzania Cigarette CompanyTanzania212Tobacco
86.Dangote Flour MillsNigeria211Food
87.OandoNigeria206Petrol Retail
88.Julius BergerNigeria205Construction
89.Hippo Valley EstatesZimbabwe193Sugar
90.Scan GroupKenya182Advertising
91.Ireland BlythMauritius181Conglomerate
92.New Africa PropertiesBotswana181Real Estate
93.NIC BankKenya172Bank
94.Seed CompanyZimbabwe168Agriculture
95.CRDB BankTanzania165Bank
97.Vivo Energy MauritiusMauritius161Petrol Retail
98.7 Up Bottling CompanyNigeria160Beverages
99.GlaxoSmithKline NigeriaNigeria152Pharmaceuticals
100.British American Investments CompanyKenya144Insurance


Money-Savers That Turn Into Money-Wasters

Frugal living has become the mantra for people  since the rise of costs of living and Great recession started,  although some of people have been wisely frugal for their whole lives. However,  all money-saving tips are not equal. Sure, taking your lunch to work is a quick ways to save about Tshs. 5,000 to Tshs. 10,000  every weekday, but some other  methods for saving your pennies could end up costing you more than you  realize.

Skimping or Cheating on  Insurance
Before you cancel your insurance policy, you need to think  hard about the consequences. A damaged third part insured vehicle or a damaged home could cost a  lot more than the money you save on your insurance premiums. Raising your  deductible through a bank could be a better way to save, but make sure you can really pay that  deductible without incurring costly debt and bank charges. 
Buying  Things Just Because They’re on Sale
Frugal shoppers live for sales  and discount coupons, but don’t get so caught up in the sale that you end up  buying things you don’t need. Stock up on items you really use when they’re on  sale, but never buy something you wouldn’t purchase if it wasn’t on sale. You’ll  end up with a houseful of unwanted items and then may not have the money  available for something you really need. Ladies you know what I mean, we ran to buy discounted shoes and clothes that we do not even need.
Driving Extra for a  Discount
Sometimes you can’t see the forest because of the trees. If  you are focused so much on saving a few shillings per litre of gas, using a  coupon at a distant store or finding a better price at a store 20 miles away  defeats the purpose. Don’t forget to calculate how much you are spending on the  extra gas needed to get there. You’re also adding miles to your possibly  overworked car. A friend of mine drive all the way to town from Mikocheni to buy Us dollars for her DSTV bill because she claims DSTV exchange rates are bad, by a 5 shilling per dollar, you are driving to town to save TShs.400/- for a Usd 80 monthly DSTV bill. Not so clever!
Skipping  Car Maintenance
Car maintenance is one expense many people like to  skip, but the lack of routine maintenance can end up costing thousands of shillings in car repairs. You may even have to replace your damaged  car.
Not Funding Your  Retirement Account
If you’re scrimping and living from paycheck to  paycheck, the idea of skimming money off that check for a far-off retirement can  be daunting. We all know the Social Security fund  saga going on in our country.
Think about this: if you put away a few shillings everymonth for  years, those shillings will eventually turn into thousands. Plus, you may be  reducing your tax burden by using pre-tax shillings for the social security contribution (Employee’s share of contribution). If you  have an employer who’s matching your contributions you are throwing money away  by not at least saving the maximum match amount.Employer might convice you to get more by avoiding NSSF he is saving while you are losing his part of contribution.


Buying Cheap  Items

Cheap clothes, cheap shoes, cheap hardware items and cheap  electronics are all readily available, but if you find yourself replacing them  often you may end up spending more money than if you had bought a good quality  item in the first place. Your better choice is to look for good quality items on  sale. Chinese items are playing a big part into this category! selling good looking bad quality items at a lower price!

Living Cash Poor
If you try to  save money by keeping only a small amount of cash in your wallet, you may end up  wasting money on ATMs. If you go to your bank and avoid ATM fees, that’s fine,  but many people end up spending around Tshs. 5000 every few days to pull out Tshs. 50,000 out of  their accounts.
Buying the  Wrong Groceries
While bulk grocery shopping can seem like a great  bargain, if you end up throwing away tomatoes that’s gone bad, you’ve  simply wasted money and food. Some people skip buying expensive fruits and  vegetables, but they could pay for that later on because they’ll need extra  vitamins and possibly have health issues.
The Bottom  Line While saving money on small things can add up to big benefits,  make sure the initial savings won’t result in unforeseen consequences in the  long run.

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Investors rush for 10-year treasury bonds‏

Daily News

THE 10-year bond by the Bank of Tanzania (BoT) was oversubscribed by 19.49bn/-, an equivalent of 65 per cent.

According to the results of the tender floated last week, despite the  oversubscription, the central bank accepted only 30bn/- sought to be  mobilised after bidders demanded for high prices.

“The highest  and lowest bids were valued at 84.10 and 70.06, respectively while the  average price for successful bids was 81.56,” stated the report. The  continued oversubscription testifies to stability of the liquidity  stance in the market.

The BoT interventions to either ease or  tight liquidity stance in the market is done cautiously without  disturbing interest rates of the money instruments.

In the  10-year tender, only 24 out of 31 bids received emerged successful, an  indication that some investors tendered below the price offered at the  market.

In the preceding auction deal, the government accepted  more funds and concentrated on bond issuance to finance its development  expenditures.

In the meantime, interest rates was 15.06 per cent  lower than the rates offered in the previous 10-year deal, it did not  prevent investors from injecting massive funds.

Furthermore  according to the central bank’s monthly economic review for the year  ending June 2012, auctioned Treasury bonds worth 30bn/- and 15bn/- of  2-year and 10-year maturities, respectively.

The auctions were  oversubscribed and dominated by commercial banks, pension funds,  insurance and few micro-finance institutions firms which are among the  key players in the long term fixed instruments.

The BoT accepted bids amounting to 20bn/- and 15bn/ for the 2-year and 10-year Treasury bond, respectively.

The weighted average yields for the treasury bonds increased when compared to the rates recorded in the preceding auctions.


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DSE to Benefit from SADC Countries Linking Stock Exchanges

THE Committee of Southern Africa Stock Exchanges says it will explore technological ways of linking trading and order systems of Sadc stock markets, committee chairperson Mrs Beatrice Nkanza has said.

This would help to increase the effectiveness of Sadc’s 10 stock exchanges including DSE.

Other CoSSE members apart from  Dar es Salaam Stock Exchange of Tanzania are Botswana Stock Exchange, Malawi Stock Exchange, Stock Exchange of Mauritius, Bolsa de Valores de Mozambique, Namibian Stock Exchange, South Africa’s JSE Ltd, Swaziland Stock Exchange, Zambia’s Lusaka Stock Exchange, and the Zimbabwe Stock Exchange.

Mrs Nkanza, who is also the chief executive of Lusaka Stock Exchange, said the committee was working closely with various Sadc institutions to support development of regional systems, including payment and was expected to boost visibility of trading data and enhance its joint website.

The Dar es Salaam Stock Exchange (winner of The Best Sustainable Stock Exchange of the Year 2011, Africa” by the World Finance ) have joined nine other stock exchanges in the Southern African Development (SADC) to adopt a digital platform. This will hopefully increase productivity and efficiency for smooth functioning and growth of market operations in completing cross border transactions.

Technology is opening doors and is the basis for changes in investor behavior and expectations. Considering the number of companies in Dar es Salaam there aren’t anywhere as many listed on the Dar es Salaam Stock Exchange.

Through meticulous planning and a well thought out implementation of the process, there are numerous benefits to listing your company on the stock exchange. For example, it creates a market for the company’s shares enhancing the status and financial standing of your company.
You increase market exposure, public awareness and interest in the company along with your services and products. It boosts the companies’ corporate profile as there will be an added element of trust and credibility.


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Financing Tips for Small Business

One of the greatest challenges facing small business owners in Tanzania is the availability of funds for starting and operating the business.

When banks decline financing for the new business, as they mostly do, entrepreneurs may feel the need to resort to creative financing options. With some persistence and an open-minded approach, almost any business can receive additional funding through creative means. These options including taking a loan from a retirement account, taking on a partner, and using home equity as capital financing, Cash Floats

1. Take on a partner.   Ask a former co-worker, boss or friend about accepting a business venture. Speak to him about providing startup capital and offer what you can afford, plus sweat equity — which is work put into the business and repaid through the company’s earnings. Draw up a partnership agreement that details each partner’s role and financial commitment along with a buy-out option.

2. Cash Floats. In this technique an entrepreneurs  rely heavily on OPM (Other People’s Money) when they don’t have any of their own to launch a business with. It makes sense to use OPM even
when you do have your own money to mitigate risk–your risk.  One of the greatest American industrial companies was launched using cash float financing technique. I’m referring to the Ford Motor

Ford knew he could never afford to pay for all the materials needed to build a car up-front. So instead, he negotiated deals with dealers obligating them to pay cash for his cars. Then, he convinced suppliers to let him pay for the materials 30 days after receiving them. In this way, Ford could get his parts right away, build his cars and sell them to dealers at a profit before any of his expenses came due.

3. Silent Partners or Angel Investors : Another creative financing technique at your disposal is to seek out a silent partner. A silent partner is any investor who puts money into your business in exchange for future profits but does not have a voice in decision-making. This could be a wealthy relative, a co-worker or anyone else you can persuade to invest. Be careful, though, not to accept silent partner investment from just anyone. The ideal scenario is taking a little from someone who has a lot, as such people are unlikely to freak out about the inevitable ups and downs of a new business venture.

4.  Consulting Work: consulting work can help provide early seed money for new businesses,In his essay  How To Fund a Startup, Paul Graham wrote,

“Another way to fund a startup is to get a job. The best sort of job is a consulting project in which you can build whatever software you wanted to sell as a startup. Then you can gradually transform yourself from a consulting company into a product company, and have your clients pay your development expenses.”

Graham’s advice was admittedly tailored to technology startups, But one can envision the same model being applicable to other service businesses. Someone looking to start a small to medium-sized accounting firm, for instance, can take on freelance jobs in the early going and resolve to put most or all of that money toward growing his company. Different types of services businesses could conceivably do the same.

5. Hard Money Lenders: If your business is in a pinch and absolutely needs money by yesterday to capitalize on an opportunity, there are always hard money lenders. Payday lenders, for instance, make short-term loans at high interest rates. You get these loans  from SACCOS, small Microfinances at a rate of 10 to 30 percent per month!

But beware: there are very few circumstances when going to this type of lending establishment makes sense. The correct time to utilize a payday lender for business purposes is when you face a money-making opportunity that is certain, but fleeting, and which requires cash at once. If you can get the money quickly and use it for a deal that returns Tshs. 50,000,000  what does it matter that you paid Tshs. 5,000,000  in interest to get it? Then again, consider this your last resort for financing, to be approached only if you’ve exhausted all other options listed above.

Bottom Line

Its your call, If you’re failing at raising outside money but determined to take your project
from concept to operating company, you have a choice. One, you can continue
wasting more time chasing after disinterested investors and banks. Two, you can start to
make some headway today towards traction by learning from the elite
entrepreneurs who understand how to exploit entrepreneurial finance techniques
such as cash floats and others explained above.

Share with us If you know of any other Financing technique for a small business that worked for you or someone you know.




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Tanzania Individual Income Tax Rates with effect from 1/7/2012

Resident Individual Income Tax Rates with effect  from 1/7/2012 as per Finance Bill of 2012
Monthly Income Tax Rate
Where total income does not exceed shs 170,000/= NIL
Where total income exceeds shs 170,000/= but does not exceed 360,000/= 14% of the amount in excess of shs 170,000/=
Where total income exceeds shs. 360,000/= but does not exceed 540,000/= 26,600/= plus 20% of the amount in excess of shs 360,000/=
Where total income exceeds 540,000/= but does not exceed 720,000/= Shs 62,600/= plus 25% of the amount in excess of shs 540,000/=
Where total income exceeds shs 720,000/=

Shs 107,600/= plus 30% of the amount in excess of shs 720,000/=

1.      The monthly income include basic salary, overtime, bonus, commission, allowances e.g. house allowance or transport allowance  and benefits in kind received in lieu of employment but after deducting the contribution to the approved retirement Fund (NSSF or PPF)      2. Threshold per annum: Income Shs 2,040,000 /=       3. Rates applicable to Zanzibar: The Minister may in consultation with the Minister responsible for finance of the Revolutionary Government of Zanzibar, determine the rates applicable in Tanzania Zanzibar 


Posted by on July 31, 2012 in Finance,Taxation and Investment


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Tanzania Monetary Policy Statement – June 2012

Monetary Policy Statement of the Bank of Tanzania for the year 2012/13.

The Statement reviews monetary policy implementation and macroeconomic

developments during 2011/12. It then outlines the monetary policy stance and

measures that the Bank of Tanzania intends to pursue in 2012/13, aimed at

maintaining price stability and ensuring integrity of the financial system, with a

view to promoting high and sustainable economic growth.

Issued by: Prof. Benno J. Ndulu –   GOVERNOR   BANK OF TANZANIA

Click below to Access the Statement:

2012-JUNE-Monetary Policy Statement


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Tanzania Banking Sector Performance Review -2011

In may 2012 Ernst &Young published a fifth issue of the Report on Banking Sector Performance and launched it to the Banking Community. The 2011 report comes with a special topic on Mortgage Financing.

Thanks to Joseph Sheffu – EY Country Leader for sharing the report with us.


The sector’s Total Assets increased by 16% (26% in 2010, 19% in 2009, 20% in 2008 and 30% in 2007).

The ratio of earning assets to Total Assets decreased to 78.6% (80% in 2010, 79% in 2009, 83% for both 2008 and 2007).

On the Funding Structure side, deposits increased  by 16% (25% in 2010, 24% in 2009, 22% in 2008 and 23% in 2007)

Shareholders’ funds increased by 14% (22% in 2010, 28% in 2009, 25% in 2008 and 48% in 2007).

Paid up capital recorded  an increase of 21% (31% in 2010, 39% in 2009, 15% in 2008 and 44% in 2007).

The Banking Liquidity was by and large satisfactory, with the ratio of liquid assets to deposits at 54%% ( (59% in 2010, 58% in 2009, 54% in 2008 and 65% in 2007.

Click the Link below to Read the Full Report.

2011 Tanzania Banking Sector Performance Review Final

Courtesy of: Ernst & Young


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Exchange Rate: Tanzania Shilling Vs. US Dollar – as of JULY 2012

USDTZS – Tanzania Shilling Exchange rate

The USDTZS spot exchange rate appreciated 5.0000 or 0.32 percent during the last 30 days. Historically, from 2009 until 2012, the USDTZS averaged 1476.3800  reaching an all time high of 1813.5000  in October of 2011  and a record low of 1277.9000  in June of 2009. The USDTZS spot exchange rate specifies how much one currency, the USD, is currently worth in terms of the other, the TZS. While the USDTZS spot exchange rate is quoted and exchanged in the same day, the USDTZS forward rate is quoted today but for delivery and payment on a specific future date. This page includes a chart with historical data for USDTZS – Tanzania Shilling Exchange rate.



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IMF expects the world economy to expand 3.5% in 2012

IMF says it expects the world economy to expand 3.5%  in 2012 down slightly from its previous estimate of 3.6% in April. In a quarterly update to its World Economic Outlook issued Monday, the IMF also cut its  forecast to 3.9% in 2013, from 4.1% three months ago.

The Fund cut its US growth  forecast to 2% this year from its previous estimate in April of 2.1% and kept  Eurozone performance in 2012 unchanged at a contraction of 0.3% and down from a  growth of 0.9% in 2013 to 0.7%. For 2013, it expects US growth of 2.3%, down from 2.4%.

An already sluggish global recovery shows signs of further weakness,  mainly because of continuing financial problems in Europe and  slower-than-expected growth in emerging economies, the IMF said in a regular  update to its World Economic Outlook (WEO).

Two other IMF reports were also released July 16. The update to theGlobal  Financial Stability Report (GFSR)  said that risks to financial stability increased in the second quarter of 2012  because of the continued slow global recovery and fears about the quality of  bank assets in Europe.

An update to the IMF’sFiscal  Monitor said that fiscal  adjustment in both advanced and emerging economies is proceeding as expected.

The latest World  Economic Outlookprojects that  the global economy will grow 3.5% this year, down 0.1%age points  from the April forecast, and 3.9% in 2012, 0.2%age points lower  (see table).

“More worrisome than these revisions to the baseline forecast is the increase in  downside risks,” said Olivier Blanchard, the IMF chief economist and director of  the IMF’s Research Department, which prepares the WEO. The IMF emphasised that the relatively minor setback to the global outlook under  its baseline projections is based on three important assumptions:

  • that there will be enough policy action for financial conditions in the  so-called euro area periphery, which includes Greece and Spain, to ease  gradually through 2013;
  • that US fiscal policy does not tighten sharply in 2013; and
  • that steps by some major emerging markets to stimulate growth gain traction.

The IMF said the most immediate risk to the global recovery is that delayed or  insufficient policy action will further escalate the euro area crisis. “Simply  put, the Eurozone periphery countries have to succeed,” said Blanchard.

The report  cited agreements at the June 28 eurozone summit as a step in the right  direction. It said the summit actions should help break the “adverse links  between sovereigns and banks and create a banking union. ”

But the recent  deterioration in sovereign debt markets demonstrates that timely implementation  of these measures, together with further progress on banking and fiscal unions,  must be a priority.

The WEO update also cited the possibility that growth in the United States would  stall because of excessive fiscal tightening caused by political gridlock. “In  the extreme, if policymakers fail to reach consensus on extending some temporary  tax cuts and reversing deep automatic spending cuts,” the US economy could  face a steep decline of more than 4% of GDP in its fiscal deficit in  2013.

That so-called fiscal cliff would cause a severe decline in US growth,  with “significant spillovers to the rest of the world.” Moreover, if the United  States does not act promptly to raise its federal debt ceiling, there will be  increased risk of financial market disruption and loss in consumer and business  confidence.

Growth has slowed in a number of major emerging economies, especially Brazil,  China, and India. This was due both to a weaker external environment and a sharp  deceleration in domestic demand in response to capacity constraints and policy  tightening.

Overall, though, emerging markets have weathered the crisis well. In contrast to the broad trends in the rest of the world, growth in the Middle  East and North Africa will be stronger, as key oil exporters continue to boost  oil production and drive up domestic demand, while activity in Libya rebounds  after the 2011 unrest. Sub-Saharan Africa, which has been insulated from  external financial shocks, is also expected to enjoy relatively robust growth in  2012–13.

Related Link


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Excerpts of Budget 2012/2013

Excerpts of Budget 2012/2013

Tanzania Budget Speech 2012/2013


World EconomyAccording to International Monetary Fund, the world economy grew by 3.9 percent in 2011, compared to 5.3 percent in 2010. the low growth was due to the economic crisis in the Euro area caused by financial fragilities, particularly, losses in the banking sector, rising fiscal deficits and instabilities in the Arab countries.

Africa’s economic growth slowed down to 2.7 percent in 2011 compare to 4.6 percent in 2010, mainly due to political unrest in the North African countries. Growth in the Sub-Sahara  African countries slowed to 5.1 percent in 2011 compared to 5.3 in 2010.




National Economy

The real GDP grew by 6.4 percent in 2011 compared to 7.0 percent in 2010. The slowdown in growth is largely attributed to drought conditions in some parts of the country which adversely affected agricultural production. Electricity outage contributed to low performance in manufacturing and other economic activities that rely on electricity. Despite the slowdown in overall growth, communication, financial intermediation, construction and education sub-sector recorded higher growth rates ranging between 6 percent and 19 percent.

The growth rate of the agriculture sector, which employs about 75 percent of the labour force declined from 4.2 percent in 2010 to 3.6 percent in 2011, whereas population growth rate continued to be high at 2.9 percent.

In the 2011 the GDP was Tshs 37.5 trillion at current prices. With an estimated population 0f 43.2 million people for Mainland Tanzania in 2010 and 44.5 million people in 2011 per capita income for 2011 was Tshs 869,437.3 compared to Tshs 770,464.3 in 2010 equivalent to an increase of 12.8 percent in per capita income.

The annual average inflation rate rose from 5.5 percent in 2010 to 12.7 percent in 2011.

The annual inflation rate which excludes food and energy for the year ended April 2012 rose to 9.0 percent compared to 5.7 percent in April 2011. This is attributed to the rise in the price of oil, transport costs and imported inflation from the trading partners particularly China and India. The annual inflation rate for food increased to 24 percent in the year ended April 2012 compared to 9.2 percent in year ended April 2011. The annual inflation rate for energy increased from 22.1 percent registered in year ended April 2011 to 24.9 percent in April 2012.

Overall the average lending rate charged by commercial banks decreased slightly to 14.21 percent in December 2011 from 14.92 percent in December 2010.

Exchange rates

The value of the Tanzanian shillings in 2011 declined by 10.3 percent to an average of Tshs 1,579.5 per US Dollar compare to Tshs 1,432.3 in 2010. At the end of December 2011, the exchange rate was Tshs 1,587.6 compared to Tshs 1,469.9 in December 2010.

By March 2012 the exchange rate stood at Tshs 1,588 to 1 US Dollar.

Foreign Direct Investment

In 2011, the value of  Foreign Direct Investment increased by 97 percent to USD 854.2 million compared to USD 433.9 million in 2010. This increase was attributed to large investments on exploration of gas in Mtwara and Coast Regions amounting to more than USD 300 million. Sectors that received large number of foreign investment projects were manufacturing, tourism, commercial building and transport.


Based on the Population and Housing Census of 2002, the population of Tanzania in 2011 was estimated at 44.5 million as compared to 43.2 million in 2010.


As for electricity projects, resources have been allocated for construction of natural gas pipeline (Mtwara – Dar es Salaam) and power generation plants at Kinyerezi (150 MW & 240 MW). In terms of transmission, funds have be allocated for the construction and  strengthening of transmission  lines (220kV North – West Grid, 400kV Iringa – Shinyanga and 132kV Makambako – Songea). in addition, resources have been allocated for promoting rural electrification.


During the period of July 2011 – March 2012, total domestic revenue collections (including collections from LGAs) amounted to Tshs5,180.6 billion, equivalent to 98 percent of estimates of Tshs 5,217.2 billion for the period. Out of that, tax revenue collections amounted to Tshs 4,765.5 billion, equivalent to 104 percent of estimates of Tshs 4,585.5 billion for the period. The increase in Tax revenue collections was a result of administrative taken by Tanzania Revenue Authority.

During the period July 011 – March 2012, non-tax revenue collections reached Tshs 272.1 billion equivalent to 57 percent of estimates of collecting Tshs 473.5 billion. Collection by LGAs amounted to Tshs 143 billon, equivalent to 60 percent of estimated of Tshs 237.8 billion for the period. The underperformance of non tax revenue was due to low contribution of executive agencies, regulatory authorities and institutions to the Consolidated Fund. The Government intends to review non-tax collection by the Ministries, Departments and Agencies in order to improve collection o this important source of revenue.


Government expenditure for 2010/11 amounted to Tshs 9,439.4 billion, equivalent to 87.0 percent of estimates. Total expenditure for the first three quarters of 2011/12 (up to March 2012) was Tshs 8.676.8 billion, equivalent to 97.5 percent of the period estimates of Tshs 8,895.8 billion.

National Debt

The national debt stock increased to Tshs 20,276.6 billion during the period ending March 2012 from Tshs 17,578.9 billion during the corresponding period in 2011, equivalent to an increase of 15.4 percent. Out of that, Tshs 15,306.9 billion was external debt, of which Tshs 12,342.5 billion was public debt and the remaining amount was private debt. As of March 2012, domestic debt amounted to Tshs 4,969.7 billion compared to Tshs 4,496.5 billion.

Macroeconomic targets and assumptions for 2012/2013

Attain real GDP growth of 6.8 percent in 2012 and continue to grow persistently to 8.5, by 2016.

  • Reduce inflation and maintain it at single digit in the medium term.
  • Increase domestic revenue collection as a ratio of GDP to 18.0 percent in 2012/13 from the likely outturn of 16.9 percent in June 2012.
  • Contain the growth of M3 to the tune of 18.0 (percent by June 2013 consistent with GDP growth and inflation targets.
  • Maintain official foreign reserves sufficient to cover a minimum of 4.5 months’ worth of imports of goods and non-factor services.
  • The ratio of export of goods to GDP in 2011/12 is projected at 23.1 percent and further up to 24.3 percent of GDP in 2012/13.
  • Reduce interest rate spread.
  • The growth of credit to the private sector is projected at 20.0 percent by June 2013.
  • Maintain a market determined exchange rate

Key national strategic investment projects

Major strategic projects that will be implemented include construction of the Kurasini Logistical/Trade Hub and strengthening the Central Railway Line. In additional, funds have been allocated for finalising a feasibility study of railway construction in strategic area namely Mtwara-Mbamba Bay/Mchuchuma and Liganga railway line, Dar Es Salaam-Isaka-Kigala-Keza/Geita-Msongati railway line and the Tanga (Mwambani)-Arusha-Musoma railway line.

As for electricity project, resources have been allocated for construction of natural gas pipeline (Mtwara- Dar es Salaam) and power generation plants at Kinyerezi (150 MW & 240 MW). In terms of transmission, funds have been allocated for the construction and strengthening of transmission line (220kV North-West Grid, 400kV Iringa-Shinyanga and 132kV Makambako-Songea). In additional, resources have been allocated for promoting rural electrification.

For the road sector, strategic projects include construction of roads which open up economic opportunities, link Tanzania with neighboring countries and reduce traffic congestion in cities as well as construction of bridge and ferries.

With regard to agriculture and industry, projects that will be implemented include cultivation of sugarcane and paddy in Wami, Ruvu, Kagera, Kilombero and Malagalasi basins, projects under SAGCOT, ASDP and other irrigation projects. Projects in industry will include Mchuchuma coal and Liganga iron ore, completion of Biolarvicide Plant at Kibaha, Soda ash in the Engaruka Basin and development of Special Economic Zones and Export processing Zones (SEZs and EPZs).

Other Projects

Priority projects in the education sector will include construction of lecture rooms, libraries and hostels at Dar es salaam, Sokoine, Dodoma, mzumbe and Ardhi Universities, MUCCOBS, DUCE and MUCE, development of vocational education training colleges (VETA), construction of Muhimbili University campus at Mlonganzila, facilitating implementation of Secondary Education Development Programme (SEDP), rehabilitation of infrastructure in five teachers’ training colleges and rehabilitation of Dodoma regional library. Further, the Government will provide for training in specialized fields namely gas and oil, and uranium.

In the health sector, programmes and projects that will be implemented include, the health sector management plan, facilitation of reduction of maternal mortality, construction and rehabilitation of health facilities including Muhimbili National Hospital, Ocean Road Cancer Institute, Cardiac centre at Muhimbili National Hospital and rehabilitationof Mtwara, Lindi and Mara regional hospitals.

For livestock and fisheries, priority programmes and projects in2012/13 will include continued implementation of ASDP, establishment of livestock identification and traceability framework and implementation of environmental management for marine organisms in coastal areas.

For forests and wildlife, projects that will be implemented include promotion of investment in value-addition for bee-keeping products, wildlife and forests products and building institutional capacity for management of carbon emission.

For energy and minerals, projects that will be implemented are construction of the regional mining offices at Mtwara, Dodoma, Geita and Arusha, construction of the Tanzania Mineral Audit Agency, Rural Electrification Agency offices and strengthening of exploration and mining research institution.

Forelands, housing and human settlement, projects that will be implemented include development of Kigamboni Satellite City, whereby Government will compensate land and properties and establishment of the land bank for agricultural activities particularly food production.

For air and marine transport, projects that will be implemented include rehabilitation of Kigoma, Mafia, Tabora, Songwe, Mpanda, Arusha and Bukoba airports, development of berth number eight on Lake Tanganyika and maintenance of Government aircrafts. Moreover, in the area of weather forecasting, activities that will be implemented include purchase of equipment and radar for the Tanzania Meteorological Agency and provision of modern equipment to the meteorological information centres.

For technology and innovation development, projects that will be implemented include promotion and innovation of farm implements through strengthening of the Centre for Agriculture Mechanisation and Rural Technology (CAMARTEC) and strengthening capacity of Tanzania Industrial Research development Organization (TIRDO) for quality and standards of products needed in the market.

With the regards to good governance, activities that will be implemented in 2012/13 include provision of infrastructure and working facilities for the Ethics Secretariat and PCCB, building legal sector professional capacity and improving the working environment and procurement of facilities for institutions of maintaining law and order.

The Government will continue to register Tanzania citizens and enable them to acquire national identity cards.

In relation to labor and employment in 2012/13 more support will be given to micro credit schemes to better enable them to advance soft loans to youth, women and special groups and so foster opportunity for self employment.

SOURCE: Tanzania 2012/2013 Budget Speech –   Related Link


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Buffett Says Buying Facebook for a Pop Was Terrible Idea‏

Billionaire investor Warren Buffett said Facebook Inc. (FB) investors frustrated with the stock’s decline since its public offering are paying the price for betting on a short-term rally.

“You shouldn’t buy a farm because you think you’re going to sell it the next day for more money,” Buffett said in an interview yesterday on Bloomberg Television’s “In the Loop with Betty Liu” program. “That’s a terrible reason to buy a stock.”

JPMorgan's Reputation Intact for Him, Buffett Says

Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc.,  talks about JPMorgan Chase & Co.’s $4.4 billion trading loss at its  chief investment office and the U.S. banking industry.

Buffett also discusses his investment strategy and holdings, the  U.S. economy and housing market, and the outlook for the euro. He speaks with Betty Liu at the the Allen & Co. media conference in Sun  Valley, Idaho, on Bloomberg Television’s “In the Loop.” (Source:  Bloomberg)

Facebook  began trading on May 18 after selling shares in an initial public offering for $38 apiece, valuing the Menlo Park, California-based social network at $104.2 billion at the time. The shares have fallen 19 percent from the IPO price.

“A very high percentage of the people that bought it initially bought it because they thought it was going to go up the next day,” said Buffett, whose firm’s equity portfolio was valued at about $89.1 billion as of March 31. “I’ve never bought a stock in my life with that in mind.”

Buffett built Omaha, Nebraska-based Berkshire over four decades by acquiring businesses including car insurer Geico Corp. and betting on stocks like Coca-Cola Co.

Buffett oversees the largest stake in the Atlanta-based soft-drink maker and began acquiring the shares in 1988.

Buffett usually avoids investing in technology companies like Facebook because he isn’t well-equipped to evaluate the businesses, he said.

Investors should consider the long-term value of Facebook as they choose whether to buy stock, he said.

“All kinds of stocks go down,” Buffett said. “The question is whether Facebook is worth $100 billion or $50 billion or $200 billion.”


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Manchester United ‘ditches Asia for US IPO‏‏

Manchester United has ditched its plans for an Asian listing and is preparing   to list in the US, according to reports.

Manchester United's English forward Wayne Rooney celebrates after scoring the fourth goal during the English Premier League football match between Manchester United and Everton at Old Trafford in Manchester, north-west EnglandManchester United claims to have 325m in Asia but just 34m fans in North America

After first eyeing a £1.7bn Hong Kong IPO, it had planned to float up to 30pc   of the club in Singapore in the second half of last year. With a 30pc stake   of the club valued at around £600m, the overall value of United would be in   the region of £2bn.
As a result of its change of listing location, Manchester United is expected   to make changes to its bookrunning syndicate. Credit Suisse, JP Morgan and   Morgan Stanley were originally mandated as  bookrunners for the Singapore   listing, but sources told Reuters said  that this line-up could change.
Jefferies has also joined the deal, the sources said.
The banks working on the deal and a Manchester United spokesperson did not   respond to Reuters’ requests for comment.
One of the sources said Manchester United had always planned to position    itself as a global media business rather than a sports franchise,  suggesting   that a US listing would make more sense. shopping centres. Conversely, they are   extremely unpopular in the UK, which could have made a London listing   difficult.
US investors are also familiar with the dual-class share structure that  was   under discussion for Manchester United’s Singapore listing, having seen it   used by household names such as Google and Facebook.
 The Glazers are understood to have wanted to sell Class B shares with  limited   or no voting rights to maintain a level of control of 95pc to  100pc. That structure was said to be one reason why they opted  for Singapore in the   first place, as, unlike Hong Kong, the exchange  was happy to agree to the   format, and for the club’s Class A shares to be quoted but not traded.
However, the issuer is understood to have become frustrated with long delays   in approval from the  Singapore Exchange, even after it had indicated it   would have no  problems with a dual-class share issue.
A US listing might earn the company a better valuation as a media business,   since it has  contracts for broadcasting rights as well as its own television    channel. However, it is unlikely to achieve the original goal  of putting shares in the   hands of a wide base of United fans.
A source told Reuters that the original   aim of the Singapore listing was to  create “a pan-regional platform for   retail investors”. Singapore had seemed the ideal location, as it provided a way to reach retail    investors in one of its biggest fan bases, Indonesia.
When the  Singapore   listing was still under consideration, the importance of  Asia to the   company, with much of its growth coming from Asian  merchandise sales, had   been heavily emphasised during marketing to  investors.
The club claims to have 659m supporters worldwide, of which 325m are in Asia   Pacific and 55m in Indonesia. It counts just 34m fans in North America,   where soccer has yet to build a significant supporter base. Last year the club posted a record full-year operating profit of £110.9m to   June 30.

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Tanzania Yaruhusiwa Kuchimba Madini ya Urani Selous

SERIKALI imeruhusiwa kurekebisha mpaka wa Pori la Akiba la Selous ambalo ni eneo  la urithi wa dunia kwa ajili ya kuruhusu uchimbaji wa madini aina ya urani.

A Uranium Mine

Waziri wa Maliasili na Utalii, Balozi Khamis Kagasheki ameyasema hayo Dar  es Salam wakati anazungumzia kikao cha 36 kinachoendelea katika Jiji la Saint  Petersburg nchini Urusi kilichokutanisha Kamati ya Urithi wa Dunia ya Shirika la  Umoja wa Mataifa la Elimu, Sayansi na Utamaduni (UNESCO).

Balozi Kagasheki amesema katika kikao hicho, Tanzania iliwasilisha tena ombi  lake la kutaka kurekebisha mpaka wa Pori hilo la Selous ambalo lina ukubwa wa  asilimia 0.8 sawa na kilometa 200.

Balozi Kagasheki amesema kutokana na kukubaliwa ombi hilo, itakuwa ni fursa  nzuri ya kutimiza malengo ya taifa kiuchumi na kijamii kwa wananchi pamoja na  kulihifadhi eneo litakalobaki na kuliendeleza.

Pori hilo la Akiba la Selous lina ukubwa wa kilometa za mraba 50,000, na ni  mojawapo ya hifadhi kubwa duniani zenye viumbe mbalimbali.

Ni eneo maarufu kwa nyanda kubwa za tambarare zenye nyasi na misitu ya miombo  pamoja na aina nyingi za wanyamapori.

Wakati huo huo, Wizara ya Maliasili na Utalii imesema Tanzania inatarajiwa  kuwa mwenyeji wa kongamano la kimataifa juu ya utalii endelevu pamoja na kulinda  maeneo ya hifadhi ambalo litafanyika Oktoba 15 hadi 19 mkoani Arusha.


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Utajiri wa gesi Tanzania sawa na bajeti ya Miaka 40

TANZANIA ina gesi yenye thamani ya Sh trilioni 626.71, fedha ambazo zinaweza kutosheleza bajeti ya nchi kwa zaidi ya miaka 40 ijayo.

Fedha hizo zinatosha kwa bajeti kuu kwa miaka hiyo iwapo itakuwa Sh trilioni 15 kama ilivyo bajeti ya mwaka huu wa fedha unaoanza Julai mwaka huu.

Waziri wa Nishati na Madini, Profesa Sospeter Muhongo akijibu hoja mbalimbali za wabunge kuhusiana na Bajeti ya Ofisi ya Waziri Mkuu , alisema Tanzania ina gesi za ujazo wa futi trilioni 26.99 hadi sasa ambayo ni sawa na mapipa ya mafuta bilioni 4.86.

“Mapipa hayo nikipiga hesabu kwa pipa moja dola za Kimarekani 86 ni sawa na thamani ya gesi yetu dola za kimarekani bilioni 400.81 ambazo ni sawa na Sh trilioni 626.71 ikiwa dola moja ya Kimarekani Sh 1,500 ilivyo sasa,” alisema Waziri huyo.

Alisema hadi sasa zimeshatumika dola za Kimarekani milioni 840 kwa ajili ya utafiti, majaribio na malipo ya mshauri kuhusiana na uchimbaji wa gesi.

Muhongo alisema kabla ya mwisho wa mwaka huu Serikali italeta bungeni muswada wa sheria ya gesi na pia sera ya gesi kwa sasa inatengenezwa ambapo alisisitiza kuwa wataenda katika mikoa ya Lindi na Mtwara kukusanya maoni ya wananchi.

Akizungumzia kuhusu mgodi wa makaa ya mawe wa Kiwira, alisema Serikali imetenga Sh bilioni 40 kwa ajili ya kuuchukua mgodi huo moja kwa moja.

Hadi Novemba mwaka jana mkopo wa mgodi huo ulikuwa Sh bilioni 32.24. Mgodi huo una makaa ya mawe tani milioni 50.94.


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Viwango Vikubwa Vya Riba za Mikopo Zinazotozwa na Mabenki ya Biashara ni Changamoto Kwa Sekta ya Fedha Nchini

WAZIRI Mkuu, Mizengo Pinda amesema, viwango vikubwa vya riba kwenye mikopo katika benki za biashara ikilinganishwa na riba ndogo inayolipwa kwa amana ni changamoto kubwa katika sekta ya fedha nchini.
“Serikali inazitambua changamoto hizo na tayari mikakati inaandaliwa kukabiliana nazo hususan kuanzisha dirisha la kilimo katika Benki ya Rasilimali Tanzania na kukamilisha mchakato wa kuanzisha Benki ya Maendeleo ya kilimo” amesema Pinda bungeni mjini Dodoma wakati anasoma hotuba kuhusu mapitio na mwelekeo wa kazi za Serikali na makadirio ya matumizi ya fedha ya ofisi ya Waziri Mkuu na Ofisi ya Bunge kwa mwaka 2012/2013.
Amesema, Serikali inaendelea kuboresha mazingira ya uwekezaji pamoja, kuanzisha mfumo wa kuwatambua wakopaji na imetoa msukumo wa uanzishaji wa huduma za kifedha kupitia Vyama vya Kuweka na Kukopa (SACCOS).
Kwa mujibu wa Pinda, hadi sasa kuna jumla ya SACCOS 5,346 na vimetoa mikopo yenye thamani ya shilingi bilioni 627.2.
Amesema, Serikali kupitia Baraza la Taifa la Uwezeshaji Wananchi Kiuchumi imeendelea kusimamia na kuratibu utekelezaji wa Sera ya Taifa ya Uwezeshaji Wananchi Kiuchumi ya mwaka 2004 kupitia programu na mifuko mbalimbali.
“Hadi kufikia mwezi Aprili 2012, Mfuko wa Uwezeshaji Wananchi Kiuchumi umetoa mikopo yenye thamani ya shilingi bilioni 7.3 kwa wajasiriamali 7,187 katika mikoa ya Dodoma, Lindi, Manyara, Mtwara, Pwani, Rukwa, Ruvuma, Singida na Tanga” amesema.
Kwa mujibu wa Waziri Mkuu, sehemu kubwa ya mikopo iliyotolewa ilitumika kugharamia shughuli za kilimo ikijumuisha ununuzi wa pembejeo na zana za kisasa za kilimo na umwagiliaji.
“Serikali imeendelea kuweka mazingira wezeshi kwa sekta binafsi ili iweze kushiriki kikamilifu katika shughuli za uzalishaji mali na kufanya biashara na hatimaye kuwa injini ya ukuaji wa uchumi”amesema.
Amesema, Serikali inasimamia utekelezaji wa mpango kazi wa kuboresha mazingira  ya biashara na uwekezaji nchini wenye lengo la kurekebisha mifumo iliyopo ili kupunguza gharama za kufanya biashara na kuwekeza nchini.
“Hatua zilizochukuliwa ni pamoja na uanzishaji wa kituo kimoja cha utoaji wa huduma kwenye Bandari ya Dar es Salaam, ambapo muda wa mizigo kukaa bandarini umepungua kutoka wastani wa siku 25 mwaka 2009 hadi kufikia wastani wa siku 9 mwezi Mei 2012” amesema.
Pinda pia amewaeleza wabunge kuwa, katika mwaka 2011/2012, Serikali imefanya juhudi kubwa za kuhamasisha na kuvutia wawekezaji wa ndani na nje na kwamba, Kituo cha Uwekezeji (TIC) kilisajili jumla ya miradi 681 yenye thamani ya shilingi trilioni 11.6, na ilitoa fursa 89,803 ya ajira.
Amewaeleza wabunge kuwa, miradi 356, sawa na asilimia 52.3 ni ya wawekezaji wa ndani, miradi 166, sawa na asilimia 24.4 ni ya ubia kati ya wawekezaji wa ndani na nje na miradi 159, sawa na asilimia 23.3 ni ya wawekezaji wa nje.
“Mitaji ya moja kwa moja kwa moja ya wawekezaji wa nje (FDI), iliyoingizwa nchini imeongezeka kutoka shilingi bilioni 681.2 mwaka 2010 hadi trilioni 1.3 mwaka 2011” amesema.
Pinda amesema, Serikali imeanza kuona matunda mazuri yaliyotokana na ushirikiano kati ya wawekezaji wakubwa na wakulima wadogo katika kuongeza uzalishaji na tija.
“Maandalizi ya kuainisha miradi itakayotekelezwa na wawekezaji wa ndani na nje katika ukanda wa SAGGOT yameanza. Kutokana na ukubwa wa ukanda huo wa kilimo, miradi itakayoainishwa itatekelezwa kwa mfumo wa wa kongano (clusters) ambapo wakulima wadogo watashirikishwa na wawekezaji wakubwa kuendeleza kilimo”amesema.
Waziri Mkuu ametoa wito kwa Watanzania kuona uwekezaji mkubwa katika kilimo kuwa ni fursa muhimu ya kuongeza uzalishaji na tija.
“Jambo la msingi ni kuhakikisha kwamba, maslahi ya wakulima wadogo yanalindwa kwa kuwekeana mikataba mizuri na kufuatilia utekelezaji wake. Ni imani yangu kwamba, tukiitumia vizuri ardhi yenye rutuba tuliyonayo tutaweza kuongeza ukuaji kwenye sekta ya kilimo ambayo ni tegemeo kwa Watanzania wengi na hatimaye kupunguza umasikini wa kipato” amesema.
Pinda amesema, ushirikiano baina ya Serikali na sekta binafsi ni nguzo muhimu ya kuleta mapinduzi ya kilimo, na kwamba, katika kipindi cha mwaka 2011/2012, Serikali iliimarisha upatikanaji wa pembejeo za kilimo hasa mbolea, mbegu bora na daza za mimea.
“Serikali inatambua kuwa, mkakati wa kuhimiza kilimo cha kisasa kinachotumia kanuni bora za kilimo, zana za kisasa na msukumo kwenye kilimo cha umwagiliaji ndiyo njia ya uhakika ya kuongeza uzalishaji na tija katika kilimo” amesema.

Posted by MJ


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Tanzania LGAs Revenues: City Service Levy

Every March, June, September and December my company pays 0.3% of Total Turnover to the municipal for City service Levy.And All Companies operating in Tanzania should be doing the same.

Service Levy is one of the sources of Local Government Own Revenues. LGAs tax collections is the responsibility of the councils and is completely separated from the central government.

In District Councils Revenue collection is organised around 3 levels; Council Headquaters, the wards and Village levels.

City Service Levy is imposed to Corporates at a rate 0.3% of turnover payable quaterly.

My Question; Do all Companies operating in Tanzania pay City Service Levy? In Time? I bet most of them do not even know this tax exist.



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Fund managers give up on prospect for global growth‏

Fears of a global economic slowdown have come  sharply back into focus, and expectations of decisive action by policy makers  have grown, according to the BofA Merrill Lynch Survey of Fund  Managers for June.

A net 11% of the global panel believes that the  global economy will deteriorate in the coming 12 months – the weakest reading  since      December 2011.

Last month, a net 15% believed the economy  would strengthen and the negative swing of 26%age points is the biggest since  July-August 2011 as the sovereign crisis built. The outlook for  corporate profits has suffered a similarly negative swing. A net 19% of the  panel believes that corporate profits will fall in the coming 12 months. Last  month, a net 1% predicted improving corporate profits.

Investors have adopted aggressively “risk off” positions. Average cash balances are at their highest level since the depth of  the credit crisis in January 2009 at 5.3% of portfolios, up from  4.7% in May. The Risk & Liquidity Composite Indicator fell to 30 points, versus  an average of 40.


Asset allocators have moved to a net underweight position in  global equities and increased bond allocations. Support for policy stimulus has grown. The  majority of the panel now believes that global monetary policy is “too  restrictive.” A net 6% take that view, the highest since December 2008. A net 15% said policy was “too stimulative” in May. The proportion of global  investors saying global fiscal policy is “too restrictive” has continued to rise  to a net 28% from a net 23% in May. “Investors have taken extreme ‘risk off’ positions and equities are oversold, but we have yet to see full capitulation.

Low allocations in      Europe are in line  with perceptions of growing risk levels in the Eurozone,” said Gary  Baker, head of European Equities strategy at BofA  Merrill Lynch Global Research. “Hopes expressed last month of a policy  response have now become expectations. Markets are keenly anticipating decisive  action from key policy meetings in June,” said Michael Hartnett,  chief Global Equity strategist at BofA Merrill Lynch Global  Research.

Global equity under-valuations match  all-time low
Global equities are at their most undervalued  since August 2011. A net 48% of the global panel believes global  equities are undervalued, matching the lowest level since the survey began.The  reading is up from a net 35% in May and a net 22% in April. At the same time, a  net 83% of the panel says that bonds are overvalued – also an all-time high and  up from a net 74% a month ago.The view is even more concentrated in  Europe. A net 45% of the global panel sees  Europe as the most undervalued region – an all-time high reading and  up from 27% in May. Asset allocators moved out of global equities  with a net 4% underweight the asset class, compared with a net 16% overweight  equities last month. They reduced their underweight position in bonds to a net  23%, down from a net 33% in May.Global investors have reached their closest  position to being equal weight equities and bonds since November 2011. Fears resurge of Chinese hard landing
Last month’s growing optimism about China’s  economy has halted in June’s survey. The panel is equally split about whether  China’s economy will get stronger or weaker in the year ahead; last month, a net  10% predicted it would strengthen. Significantly, 16% of respondents now believe  China’s economy faces a “hard landing” – up from 9% in May. Broadly, sentiment towards emerging markets has  softened. A net 17% of global asset allocators are overweight Global Emerging  Market equities – down from a net 34% in May.Commodities have also lost favor.  A net 8% of the panel is underweight the asset class, the lowest reading since  February 2009. Allocation by global asset allocators to U.S.  equities improved with a net 31% overweight U.S. stocks, up five%age points  month-on-month. In contrast, domestic investors have turned bearish. A net 36%  of U.S. respondents to the Regional Survey expect the U.S. economy to  deteriorate in the coming 12 months.

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Tanzania Budget 2012/2013 – An Overview


  • Increase Domestic revenues to 18% of GDP in 2012/2013 compared to the likely outturn of 16.9 percent in 2011/2012;
  • Continue with efforts to curb inflation to a single Digit;
  • Maintain a stable and market determinedexchange rate;
  •  Increase Access to Financial Services;
  • Increase real GDP growth rate of 6.8 percent in 2012 from 6.4 percent of 2011;
  •  Increase Credit to private sector to 20% of GDP by end  June 2013 in line with measures to curb inflation;
  •  Improve economic infrastructure, including electricity, roads, railways and ports;
  • Safeguard and sustain achievements realised in the social sector;
  • Maintain foreign reserves to cover 4.5 months of import of goods and services;
  •  Develop the country’s capability to endure economic and financial crisis and effective participation in regional and international arrangement;
  • Strengthen public and pricate partneship (PPP) arrangement with the view to widen opportunities for increamenting development projects;
  • Improve business enviroment for small and medium entreprises and;
  • Strengthen good governance and counterbility.


REVENUE                                                                     Shillings (in Millions)

A. Domestic Revenue                                                   8,714,671

B. Local Govt Auth. (LGAs Own source)                     362,206

C. General Budget Support                                          842,487

D. Foreign Loans and Grants                                      2,314,231

E. Domestic Borrowing                                                1,631,957

F. Non-Concessional Borrowing                                   1,254,092

TOTAL REVENUE                                                        15,119,644


G. Recurrent Expenditure -                                            10,591,805

                       - Services                      2,745,056

                       -Wages and salaries     3,781,100

                      - Other Charges              4,065,649

                      – Ministries                       3,311,399

                       – Regions                            49,701

      - LGAs                               704,549
H. Development Expenditure  -                                               4,527,839
    – Local        2,213,608
    – Foreign    2,314,231

TOTAL EXPENDITURE                                                         15,119,644


The Government targets to collect domestic revenues (excluding LGA’s own source) amounting to Shillings 8,714.7 billion equivalent to 18% of GDP.


1. Infrastructure

  • Electricity; Alocating Tshs.498.9 billion and impremetation of gas pipeline construction project from Mtwara to Dar es Salaam.
  • Transportation; Strengthening Central railways which involve renovation of the train engnes and wagons and development of the port of Lake Tanganyika.
  •  Cean and safe water.
  • Information and Comunications Technology (ICT)
2. Agriculture, Fisheries and Livestock
  • Strengthen the implementation of Kilimo kwanza policy.
  • Industrial Development.
  • Human resources and social services development.
  • Tourism.
  • Financial Services.

3. High Inflation

    • Tanzania is facing several challenges including high inflation rates which declined from 19.8% in december, 2011 to n18.7% in April, 2012. the main causes of high inflation rates are high eectricity tarrif, high prices of oil and food- especially rice and sugar prices. For example during April 2012 food contributed 24.7% while electricity and fuel contributed 24.9% of inflation. Core Inflation, which includes food and enery prices, is still at singledigit of 8.8%


1. The Value Added Tax (VAT) Act, Cap 148

  • Introduction of VAT rate at 10% for selected VAT relieved beneficiaries enjoying special relief under the third schedule of the Value Added Tax Act. To effect private companies, individuals and TIC Certificate holders except those who are enjoying exemptions under the existing agreements. Also to affect Non-Governmental Organizations except those which are providing donations such as food supplies and medicaments to children and orphanage care centers and schools.
  • Electronic Fiscal devices (EFDs) to be VAT exempt.
  • Exempt VAT on various equipments  that will be used for storage, transportation, and distribution of natural gas (Compressed Natural Gas and piped Natural Gas)

2.  The Income Tax Act, Cap 332

  • Complete income tax exemption provided to individuals with turnover of Tshs. 3,000,000 or less;
  • Interest earned by non-residents from banks will now be subject to 10% withholding tax. The proposed measure is intended to create a fair playing field to all taxpayers.
  • Imposing Capital gains Tax on sale of shares of a local company by its parent company or any offshore company. this measure is intended to control tax avoidance malpractice.
  • Exempting Income tax to Holders of Gaming licences in respect of incomes on which tax has been paid under Gaming Act. Abolishing the exemption that is currently provided under section 54(2) of the Income Tax Act to a resident corporation which holds 25% shares or more so that dividends of the corporation will now be taxed at a reduced rate of 5%.
  • Adjust PAYE threshold as a result of enhancement of salary scales from Tshs. 135,000 to Tshs. 170,000. Introduce exemption of Income Tax to the Dar es Salaam Stock exchange (DSE)

3. The Excise (Management and Tariff) Act, Cap 147

      • Abolish Excise duty on Heavy Furnance oil.
      •  introduce Excise Duty on Music and films products (Effective from 1st January, 2013).
      • Abolish exemption of Excise duty on imported non-utily motor vehicles for all beneficiaries. To introduce excise duty of Tshs.83 per liter on imported fruit juices while locally produced fruit juices will attract excise duty of Tshs.8 per liter.
      • Amend the fuel levy exemption that was granted during the 2011/2012 budget for the fuel to be used by the oil and gas explorers to introduce to ntroduce excise duty as it was intended.
      • Soft drinks, beers, spirit, cigarettes and wine duties going up. Excise duty on Natural gas for industrial use at the rate of Tshs. 0.35 per cubic feet.
      • Increase in Excise duty on Airtime from 10% to 12%

4. The Export Levy Act, Cap 196

  • Increasingan export duty on raw hides from 40% or Shillings 400 per kilogram to 90% or Shillings 900 per each kilogram, whicheveris greater.

5. The Gaming Act, Cap 41

  • Increase Gaming Tax for casino from shillings 13% of gross gaming revenue to 15 per cent of gross gaming revenue.
  •  Introduce gaming tax on sports betting at a rate f 6% of the total stakes.
  •  Introduce  gaming tax on ‘SMS Lotteries” at a rate 0f 43%
  • Introduce gaming tax of 15% on internet casino.
  •  Establish clause in the Game of Chance Act which will explicitly state that the Gaming Tax shall be a final tax

6. The Motor Vehicle Registration and Transfer Act, Cap 124

  • Introduce personalised plate numbers for shillings 5,000,000 for 3 years.
  • Registration and transfer charges becomes expensive.
  • Importation of motor vehicles older than 8 years from the year of manufacturer will now be subject to the excise duty of 20%

7. The Airport Departure Service Charges Act, Cap 365

  • Increase in Airport Service Charges; From USD 30 to USD 40 for International travel and from Tshs. 5,000 to Tshs. 10,000 for local travel.

8. East African Develpment Bank (EADB) Act, Cap 231

  • Provide immunity status to the properties owned by the bank including houses, deposits, monies, and bank account against legal proceedings, court decisions and nationalizations/acquisitions acts.
  • Providing corporate status.
  • Empower the Minister for Finance to implement the decisions of the EADB’s governing board, by amending the schedule to this Act through the Government Notice.
  • Define the bank’s properties as including its houses, financial deposits entrusted to EADB for supervision.

9. The East African Community Customs management Act, 2004

These are to be implemented across the EAC partner states. The main Objective of the proposed changes is to enhance industrial production, improve transportation, health services, livestock development and communicationn sectors.

    • Extend the stay of application of CET rate of 35% on wheat grain and apply the CET rate of 0% for the period of one year.
    • Increase the CET rate on galvanized wire from 0% to 10%.
    • Split the tarrif line under HS Code 2106.90.91 in order to grant exemption of import duty to nfood supplements and mineral premix used in fortification of food supplements for feeding infants.
    • Redue the CET rate on set Top Boxes from 25% to 0%.
    • Reduce the CET rate on electricity from 10% to 0%.
    • Reduce the CET rate on inner glass flask used in thermos
    • Split the tariff line under HS Code 8523.80.00 in order to apply the CET rate of 0% on software instead of 25%.
    •  Grant duty remission to soap manufacturers using Palm Stearin, RDB by charging a duty rate of 0% instead of 10%.
    • Grant duty remission to soap manufacturers using LABSA as raw materials  from 10% to 0% for a period of one year.
    • Reduce the CET rate from 10% to 0% on cathodes and selections of cathodes.
    • Coninue applying the CET rate of 25% instead of 35% on cement for the period of one year.
    • Grant duty remission to lubricants producers using castor oil and its fractions as raw material from the CET rate of 10% to 0%.
    • Split HS Code 7308.90.90 to provide for the road guards rils and apply the CET rate of 10% instead of 25%.
    • Introduction of exemption of import duty tomachinery and spare parts used in mining activities.
    • Excludes spare parts of motor vehicles that will be imported by the mining companies.
    • Refridgerated trailers to be accorded same treatment as refrigirated trucks which are exempt from import duty to encourage distribution of fresh products like milk and meat.
    •  Grant duty remission to producers/manufacturer of medical diagnostic kits.
    • Grant Exemption of import duty to honey refiners, honey strainers,honey pumps, hive tols, queen rearing equipments and protective gears.
    • Continue granting exemption of import duty to Armed forces Canteen Orgnization for the period of one year.
    • Provide duty remission to producers of nutritious food/profducts for feeding infants facing malnutrition and persons suffering from HIV/AIDS in the country.

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Taxation of Benefit In kind – Tanzania Income Tax Law

Kuna Mtu aliniuliza swali, amepewa nyumba ya kuishi pamoja na gari vya kampuni. Kila mwezi wanamkata kodi inajumuishwa kwenye PAYE haelewi kwa nini;

Benefit In kind inatokea pale muajiri anapofanya malipo kwa mahitaji binafsi ya muajiriwa kwa kumpatia bidhaa au huduma. (sio kwa kumpa pesa). Mfano ni Muajiri kumpatia muajiriwa Nyumba, kulipia ada za watoto wa muajiriwa,gari au kumpatia bidhaa au huduma bure au kwa bei ya chini.

Kuthaminisha kodi ya benefit in kind.

kwa ujumla kiwango cha benefit in kind kinapatikana kwa kulinganisha ile huduma uliyopatiwa na thamani yake kwenye soko. Kwa maana nyingine kama muajiri asingempa nyumba angeilipia kiasi gani?

Sheria ya Kodi tanzania inatoa maelekezo ya jumla ya kiasi cha pesa inayotakiwa kukatwa kodi kwa kupewa gari, Nyumba na Mikopo nafuu inayotokewa na kampuni kwa wafanyakazi wake.

Mfano wa Kuthaminisha Gari:  hii inategemea na saizi ya injini na umri wa gari. kiasi cha malipo kwa mwaka unagawa kwa miezi 12 na kukiongeza kwenye Taxable income of employment ya mwezi. ANGALIA CHATI CHINI.

Natumaini rafiki  umepata mwanga kwa ile kodi unayokatwa ya gari! kwa mifano zaidi ya jinsi ya kupata thamani ya riba kwa mikopo na nyumba tembelea tovuti ya TRA.



ISIYOZIDI 1000CC SHS. 250,000 SHS. 125,000
ZAIDI YA 1000CC LAKINI ISIYOZIDI 2000CC SHS. 500,000 SHS. 250,000
ZAIDI YA 2000CC LAKINI ISIYOZIDI 3000CC SHS. 1,000,000 SHS. 500,000 
JUU YA 3000CC SHS. 1,500,000 SHS. 750,000

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Finance term: Macaroni Defence


An approach taken by a company that does not want to be taken over. The company issues a large number of bonds with the condition they must be redeemed at a high price if the company is taken over.

It is called macaroni defence because  if a company is in danger, the  redemption price of the bonds expands like Macaroni in a pot!


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Economic Term ‘A Prisoner’s Dilemma

A paradox in decision analysis in which two individuals acting in their own best  interest pursue a course of action that does not result in the ideal outcome.  The typical prisoner’s dilemma is set up in such a way that both parties choose  to protect themselves at the expense of the other participant. As a result of  following a purely logical thought process to help oneself, both participants  find themselves in a worse state than if they had cooperated with each other in  the decision-making process.

An example of a Prisoner Dilemma;

Suppose two friends, Ally and Baker are suspected of committing a crime and are  being interrogated in separate rooms. Both individuals want to minimize their  jail sentence. Both of them face the same scenario: Ally has the option of  pleading guilty or not guilty. If he pleads not guilty, Baker can plead not  guilty and get a two-year sentence, or he can plead guilty and get a one-year  sentence. It is in Baker’s best interest to plead guilty if Ally pleads not  guilty. If Ally pleads guilty, Baker can plead not guilty and receive a  five-year sentence. Otherwise he can plead guilty and get a three-year sentence.  It is in Baker’s best interest to plead guilty if Ally pleads guilty. Ally faces  the same decision matrix and follows the same logic as Baker. As a result, both  parties plead guilty and spend three years in jail although through cooperation  they could have served only two. A true prisoner’s dilemma is typically “played”  only once; otherwise it is classified as an iterated prisoner’s dilemma.


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Hot Waitress Economic Index

What Does it Mean?

An index that indicates the state of the economy by measuring the number of attractive people working as waiters/waitresses. According to the hot waitress index, the higher the number of good looking servers, the weaker the current state of the economy. It is assumed that attractive individuals do not tend to have trouble finding high-paying jobs during good economics times. During poor economic times, these jobs will be more difficult to find and therefore more attractive people will be forced to work in lower paying jobs such as being waiters/waitresses.

According to ; Hot Waitress Economic Index is a Traditional economic theory contends that employment tends to be a lagging indicator for economic recovery. However, the hot waitress economic index could be a coincident or even a leading indicator for economic recovery because  attractive people may be the first group of individuals to find better paying  jobs when a bad economy begins to turn around.

Do you think this applies to Developing countries like Tanzania where Unemployent is a huge problem?  I will appreaciate your contribution.



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Breaking News: Facebook Shares open at $42.05

Facebook shares open at $42.05, an 11% increase from the company’s $38 IPO price.

Facebook’s IPO, the third largest in U.S. history, is on track to raise $16 billion and give the company a valuation as high as $107 billion.

Founder Mark Zuckerberg raised $1.1 billion in the offering and holds a remaining stake worth around $19.1 billion.

Read More about IPO investment here:

Source: CNN Breaking News.



Tanzania to seal a 1.6 Trillion – Eurobond Deal with HSBC


By A.Elinaza

Addis Ababa – TANZANIA may soon issue a debut Eurobond of between US$700 million (about 1.1trn/-) and US$1,000 (about 1.6trn/-) to finance infrastructure projects, especially roads.

The Head of the Directorate of Presidential Communication, Mr Salvatory Rweyemamu, said here yesterday that HSBC, Europe’s largest bank, has agreed in principle to facilitate the process.

The agreement on issuing of the Eurobond with pay-back period of between 50 and 60 years was reached during talks between President Jakaya Kikwete and HSBC Chief Executive Officer (CEO) for South Africa and co-head of Africa sovereigns, Mr Andrew Dell.

The bilateral talks were held on the sidelines of the three-day World Economic Forum (WEF) on Africa that opened in this beautiful Ethiopian capital on Wednesday. The bond will be issued once the Bank of Tanzania and other relevant institutions have laid-down the conducive environment for securing the loan, including rating.

“The president has directed the Central Bank Governor (Prof Benno Ndulu) to complete all relevant conditions that will lead to the issuance of the bond as soon as possible,” Mr Rweyemamu told the ‘Daily News’. Prof Ndulu is also attending the WEF meeting.

Mr Rweyemamu said the government was currently allocating over a half of monthly revenue collection for the road fund. Monthly revenue collection is around 500bn/-.

“This is a big burden… which leaves other development projects without funds,” he said. At the moment about 11,000 kilometres of roads are under construction. In 2008, the country shelved its plans to issue a eurobond following global financial crisis.

In January, BoT’s Director of Economic Research and Policy Joe Masawe said talks between the government and IMF resulted into permission for the country to go for non-concessional loans because of the country’s modest debt ratio to GDP.

BoT picked Citigroup as its lead advisor on facilitating the issuance of 500 million US dollars Eurobond for infrastructure development.

A source in the Treasury had earlier this year said that it would take between one year or 24 months until the Eurobond is finally issued.

“We don’t think we can go below category B in the credit rating,” he said. However, some financial analysts say the country’s large fiscal deficit and significant structural current account shortfall present downside risks to the rating process.

Tanzania has been criticised for lacking market openness by imposing foreign exchange restrictions and for not allowing foreign investors to purchase domestic fixed income securities.

Meanwhile, the Administrator of the United States Agency for International Development (USAID), Dr Rajiv Shah, told the President that US and Obama administration are committed to see SAGCOT (Southern Agricultural Growth Corridor of Tanzania) becomes successful and an example in Africa.

Dr Shah also proposed that SAGCOT should be reviewed after every six months by Tanzania, Ethiopia, Ghana, Mozambique, Kenya and Burkina Faso, development partners and private sector. The review should centre on parties commitment, especially on funding.

He also suggested establishment of a small secretariat to oversee SAGCOT which will be launched at the G8 summit in the United States later this month. US is among the first supporters of SAGCOT’s Catalytic Fund which have so far agreed to provide 60 million US dollars (about 96bn/-). SAGCOT target to lift about 2 million smallholder farmers out of poverty. FOR:


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Should you Pay in Cash instead of credit Card?

Should you Pay in Cash instead of credit Card?

In this article i will focus on just one technique to improve your finances by  taking a close look at how making purchases with cash can contribute to your ability to budget, save and invest.

A Plastic Affair

 With the proliferation of plastic  alternatives to hard currency, some people consider carrying cash a  throwback.
To be fair, plastic is much sexier than a piece of colored  paper with a dead president staring vaguely into the distance. Some banks even  allow you to customize the graphics that appear on the credit  card/debit card or choose from a range  of designs and colors the company is marketing.
There  is also the security advantage with debit and credit cards. Debit cards are  protected by your personal identification number (PIN) and credit cards by your  signature (and for some cards, a PIN number too). Cash is only protected by your  ability to defend it should someone else want to take it from you.
Moreover, nowadays cards are as widely accepted as cash shops. And yet, from a personal  finance view, cash is almost always the better choice for making a purchase.  Here’s why:
1. Overpaying

One of the drawbacks of credit and debit cards  is that they encourage you to spend more than you intend to by giving you easy  access to more capital. With cash, spending more than you intended requires  going to a bank or ATM to get more and then going back to the store to complete  the purchase. For most people, this provides time to reconsider whether their  budgets can handle any extra strain.
Generally speaking, only carrying  the cash you are prepared to pay for a given product will prevent you from  buying the next level up and paying for features you don’t need. This works for  small-scale purchases, but buying a computer or a car can involve large amounts  of cash that probably shouldn’t be carried around. If a check  can’t be used, a debit card is better  than a credit card because you are spending money you have rather than money you  don’t.

2. Over-Shopping
Just as  cards encourage overpaying for one item, they also allow you to buy more items  than you mean to. Stores are set up to make products appealing in order to  persuade shoppers to buy more. Sometimes a shopping list isn’t enough to protect  you from impulse buys.

According to the  Dunn & Bradstreet study found that people spend 12-18% more when using credit  cards than when using cash. And McDonald’s found that the average transaction  rose from $4.50 to $7 when customers used plastic instead of cash.
So  what can you do to avoid this? Only carrying enough cash to buy the things on  your list can limit the damage. This is  the best way to keep shopping within your budget. If you are motivated, you  will find discounts or cheaper alternatives to your regular brands to make that  cash go further and maybe earn yourself a luxury item.
3. Cash Vs. Credit Cards
 Cash in this article, is strictly limited to money you have already earned and is sitting  there for you to use. Using your Visa to take a cash  advance and then carrying the cash with you will not solve the essential  problem of using high-interest debt to cover your expenses.
Cash has one  very clear advantage over using a credit card: If you buy something on your  credit card and end up carrying a balance, or only make the minimum payment each  month, you will incur interest at a rate of 20% or more of your purchase (which  can have you paying Tsh.20,000/- or more for every Tshs.100,000/-  you spend). If you save up enough  cash for the same purchase, you are giving yourself the equivalent of a 20%  discount by not using your card. Before  you even sign up for a card, make sure you know what you’re getting into.
4. Cash Vs. Debit Cards
If this article were only  dealing with cash as a better alternative to credit cards, no one would dispute  it. In contrast, debit cards seem to enjoy a protected status despite the  overkill on ATM fees and foreign ATM fees. Forgetting the fees, a debit card’s  main failure is that is trivializes purchases. Being a square of plastic, it is  hard to tell how much of your money is flowing through your debit card.
For most people it becomes a matter of 10,000 shillings here, 100,000 Shillings there, another 40,000  over here and so on until  they give up keeping track of how much has been spent in a day – let alone a  month. Then it’s a shock to their systems when the monthly statement comes  and it’s far too late to do any good. With cash, you can see the damage as it is  done and hopefully curtail your spending before it gets out of  control.
The Bottom Line Using a credit or debit card  offers more security than cash in most cases. For large purchases, carrying cash  is often not an option and writing a check or getting a bank  draft  may be more trouble than it is worth for some. Furthermore, if a debit  card is used responsibly, it is an ideal replacement for cash. A credit card can  also be a convenient tool, but it’s only a fair substitute for cash when the  balance is paid in full at the end of each month. Otherwise, your ultimate  reward for paying with your credit card will be paying off an even bigger  debt.
If you struggle to avoid overspending, shopping with cash is one  way to stick to your budget and limit impulsive spending.
For more Saving and Budgeting Tips check Out My article here:



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Loss leader Strategy


What Is a Loss Leader?

A business strategy in which a business offers a product or  service at a price that is not profitable for the sake of offering another  product/service at a greater profit or to attract new customers. This is a  common practice when a business first enters a market; a loss leader introduces  new customers to a service or product in the hope of building a customer  base and securing future recurring revenue.

The loss leader strategy is more than just a nifty business trick – it is a  successful strategy if executed properly. A classic example is that of mobile phone company giving away a free network Locked Mobile phone knowing that you will need to use their network only on that Mobile phone. Cool huh!?

This startegy can be used for retail shops as well, At the shop kwa Mpemba he offers a kilo of Sembe at half a price; and doubles prices on other products, we all run kwa mpemba cause sembe price is very low and assumes everything else is cheaper at Mpemba’s shop, more sales and more profits for mpemba.

On International marketing; The Lower price of Amazon kindle Fire is one of the the Loss Leader strategy; Even if Amazon pays more to build the $79 Kindle than it sells it for, the company has several other ways to bring in money from the device. This Kindle model includes ads that show up as screensavers and at the bottom of the device’s home screen. And Amazon sees all the devices in the Kindle family — and the free Kindle apps it offers for mobile devices and computers — as a way to spur more sales of its digital e-books, music, games and apps. Definately It is making its money back through media content.



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Africa Energy

African energy Eastern El Dorado? ( The Economist Paper – Apr 07th 2012)

At long last east Africa is beginning to realise its energy potential.

Symbion Power Plant. Picture by

Symbion Power Plant. Picture by

IN ENERGY terms, east Africa has long been the continent’s poor cousin. Until last year it was thought to have no more than 6 billion barrels of proven oil reserves, compared with 60 billion in west Africa and even more in the north. Since a third of the region’s imports are oil-related, it has been especially vulnerable to oil shocks. The World Bank says that, after poor governance, high energy costs are the biggest drag on east Africa’s economy.All that may be about to change. Kenya, the region’s biggest economy, was sent into delirium on March 26th by the announcement of a big oil strike in its wild north. A British oil firm, Tullow, now compares prospects in the Turkana region and across the border in Ethiopia to Britain’s bonanza from the North Sea. More wells will now be drilled across Kenya, which also holds out hopes for offshore exploration blocs.
Kenya’s find raised less joy in Uganda, where oil was first struck in 2006. Tullow, together with China’s CNOOC and Total of France, will start pumping it next year, initially at a paltry rate of 5,000 barrels a day (b/d). But the Lake Albert basin, which straddles the border between Uganda and Congo, holds over a billion barrels of proven reserves and possibly twice that in potential finds. Uganda has always played Oklahoma to Kenya’s Texas. It believed its bonanza had for once put it at an advantage: instead of importing oil through the Kenyan port of Mombasa, it would build a refinery and export petroleum products to Kenya at a premium. Uganda still has a head start, but Kenyan officials now see their country as a regional hub that combines geographical advantages, and its own newly discovered energy resources, with tax breaks, skills and services.

South Sudan, for years the largest oil producer in the region and locked in an oil dispute with Sudan, now wants to send crude out through Kenya on a pipeline to a proposed new port in Lamu (see map). Such a channel could also serve Ethiopia, which shares Kenya’s joy about their joint oil prospects. But their winnings pale next to those farther south. Tanzania has done well out of gold, earning record receipts of $2.1 billion last year, a 33% increase on 2010. It will do even better from gas. The past month has seen the discovery of enormous gas fields in Tanzanian offshore waters. That of Britain’s BG Group is big, Another, by Norway’s Statoil, is bigger. Statoil’s recent gas find alone is estimated to hold almost a billion barrels of oil equivalent (boe).

Happily, Tanzania’s gasfield extends south to Mozambique, where Italy’s Eni last month unveiled a find of 1.3 billion boe, matching similar finds by an American firm, Andarko. With plans to build a liquefied natural gas (LNG) terminal, Mozambique could be a big exporter within a decade. At least the vast and impoverished south of Tanzania and north of Mozambique will be opened up to much-needed investment.

Yet the region is not just excited about fossil fuels; a parallel push towards alternative energy is under way. Several east African countries are keen to realise the Rift Valley’s geothermal prospects. One of the world’s largest wind farms is being built-in Kenya not far from the new-found oil in Turkana. Its backers say it will produce 300MW, three times the total output of Rwanda.

That is a drop in the bucket for Ethiopia. Its rivers, plunging from well-watered highlands into deep canyons, have hydropower potential. Meles Zenawi, the prime minister, has ordered the construction of a series of dams at a total cost of over $8 billion. The jewel is the $4.7 billion Grand Ethiopian Renaissance Dam on the Blue Nile. This should generate 5,250MW when finished, increasing electricity production in the country fivefold, providing a surplus for export and allowing Ethiopia to open up as a manufacturer.

The arrival of potential energy wealth comes with risks. Instead of bringing the region together, petro-rivalry could drive it apart. The continued dispute between South Sudan and Sudan should serve as a warning. South Sudan has cut off its supply of 300,000 b/d to Sudan, most of which is destined for China, complaining that transit fees to Sudan’s export terminal are too high. The South Sudanese say Sudan has bombed its oil wells in recent weeks. Sudan whispers that South Sudan wants to replace Chinese oil companies with European ones. This is a sensitive point for Beijing: the Europeans have done especially well in the new scramble for oil in Africa.

Security is another potential problem, underscored by deadly grenade attacks in the Kenyan port of Mombasa this week by jihadists connected with Somalia’s al-Qaeda-linked Shabab militia. Heavily armed pastoralists like Kenya’s Turkana are unlikely to respect oil-company property. Ethiopia has hit gas in the Ogaden desert, and aChinese company, PetroTrans, wants to invest $4 billion there. But Mr Zenawi will have to win over the region’s restive ethnic Somali population. Many oilmen suspect that Somalia itself may contain the region’s energy mother-lode; war and piracy put it beyond reach.

Management is another test. Few of the region’s governments have the capacity to strike fair deals with big oil companies. Tanzania is not alone in limping along with out-of-date and unsuitable laws. Nor do many have a good record of managing public accounts for the general good. Uganda’s president, Yoweri Museveni, looks increasingly like a dynastic ruler bent on enriching his clan. Still, the region’s millions of struggling poor are likely to be better off even if, as usual, the rich skim off the cream.

My Views:

We must be thankful to God for endowing us with such wealth of energy.  However we need to learn from our past mistakes what happened in the mineral sector shouldnt happen in the energy sector.

First of all, we should ensure that we have technical expertise talking of energy experts, legal and financial experts who will safeguard our national interests.
 We wouldn’t want to go back in the days where we enter lopsided contracts that see us getting nothing and investors benefit to our detriment.

In the areas where we don’t have expertise let us outsource such services to international consulting firms with good reputation, definitely there is no free lunch in today’s world, we should pay for such expertise. This is what Dubai is doing…and they are far away.

And last but not least, let us learn from the countries that have been there before…..for gas deals, let us learn from Qatar…the leading gas producer. we should also learn from Ghana when it comes to oil.

Tukifanya haya, kweli Tanzania yenye neema tele inawezekana.


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Richer East African Community with poor people‏

The EAC charter puts people at the centre of integration efforts, but the welfare of East Africans themselves has not improved dramatically
By Christine Mungai  (published in the East African)
Posted  Saturday, April 7  2012 at  12:09

Richer East Africa

Richer East Africa

The East African Community is experiencing steady growth in trade volumes among member countries in a context of deepening integration and increased international investor interest, but this is not necessarily translating into a better standard of living of the people of East Africa. This is the fundamental message of the State of East Africa 2012 report, a comprehensive new survey by global think-tank Society for International Development (SID) that examines key trends in the region’s economy, demographics, infrastructure, human development and governance.
The report highlights the fact that, in the past decade, every economy in the EAC grew at a faster pace than its population, implying a collective rise in per capita income. But in truth, the number of East Africans living below the poverty line actually increased from 44 million to 53 million.

“We should all be getting richer, but the reality is, we aren’t,”

“We should all be getting richer, but the reality is, we aren’t,” says Aidan Eyakuze, SID programme director. “The reason for this is that inequality is both deepening and widening. Fewer people are enjoying the benefits of economic growth.”
EAC Secretary-General Dr Richard Sezibera, speaking at the report’s launch in Nairobi, said that equity and inclusion are critical. “The question we need to ask as a region is how can we benefit from the demographic dividend that an increased population bring us. We have to increase the skills base and entrepreneurial capacity. We can look to Asia for lessons, which did reap the benefits of the demographic dividend, or to Latin America, which failed to do so,” he added. “But we’ve made headway in these conversations. Now we are discussing how we should share the wealth. Ten years ago, we were discussing how to get out of poverty,” said Dr Sezibera.
Trade between the EAC countries almost doubled from $2.2 billion in 2005 to $4.1 billion in 2010, although regional trade with the rest of the world expanded faster, meaning that the relative share of intra-EAC trade has stayed around 21 per cent since 2005. “Europe enjoys 64 per cent internal trade; our 21 per cent is better than we thought, but we have to make efforts to do better,” said Betty Maina, chairperson of the Kenya Association of Manufacturers.
The region’s oil consumption rose from 96,000 barrels per day in 2003 to 144,000 barrels per day in 2010, with Kenya consuming more than all the other EAC countries put together. East Africa now accounts for 10 per cent of all mobile subscribers in Africa, with the number of mobile subscribers surging from just three million in 2002 to a staggering 64 million in 2010.
There has also been implicit integration of policy across the member states, such as drive for universal primary education, increase in healthcare spending, and an urgent new focus on infrastructure projects both within countries and across borders.
The EAC’s international profile has also been growing — the discovery of oil and gas in recent years, along with piracy off the Somali coast and the Al Qaeda terror link, make it an important geostrategic location. In recent months, at least three other countries in the wider East African region have expressed interest in joining the EAC — Sudan, South Sudan and Somalia.
“More countries have been knocking on the EAC’s door, because they see value in being part of the community,” said Mr Eyakuze.
But SID warns that despite deepening integration, the challenges facing the East African people have been intensifying. “The EAC charter puts people at the centre of integration efforts,” said Mr Eyakuze. “But the welfare of East Africans themselves has not improved dramatically.”
This is not to say that there have not been marked improvements in some areas. The region’s healthcare expenditure, for example, has risen dramatically in the past decade — Rwanda increased its spending fivefold from the year 2000 to $48 per capita in 2010. Uganda tripled its expenditure to $43 per capita; Kenya and Tanzania both doubled their healthcare spending to $33 and $25 per capita respectively. The statistics show that all the EAC countries record a significant improvement in the number of deliveries by a skilled birth attendant, from an average of 40 per cent in 2005 to 53 per cent in 2010. Maternal mortality too, has fallen in the region since 2000, from a high of 1,188 deaths per 100,000 births to 577 deaths.
“The health statistics show a better access to healthcare. But there is a very serious problem of chronic malnutrition in the EAC,” said Mr Eyakuze. “A quarter to a third of East African children are underweight or stunted, and this will affect them intellectually for life. So we are keeping them alive, but what kind of life are we condemning them to? What kind of future will the EAC have if a third of its citizens are intellectual underperformers?”
According to the Global Hunger Index published by the International Food Policy Research Institute, Burundi’s hunger situation has been classified as “extremely alarming” since 1990. Tanzania’s situation is “alarming,” while Uganda and Kenya are just marginally better at “serious.”
“High food prices are linked to a 62 per cent increase in cases of acute malnutrition in health centres and hospitals in Nairobi among young children between January and May 2011,” states the report. Education, too, apparently suffers from this lack of long-term strategic planning. “Universal primary education has been the focus, and countries have made great efforts. But it seems everyone is caught flat-footed after primary. There is a dramatic drop in enrolment at secondary level — Kenya is the highest at just 45 per cent,” said Ahmed Salim, principal author of the report. The researchers say that there needs to be deeper reflection on the real reason for integration, in order to put the welfare of East Africans at the heart of integration. “What these two examples suggest is that the focus has been on the immediate without investing in the less slightly dramatic but crucial long-term changes needed for East Africans to have a better life,” says Mr Salim.


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Facebook buys Instagram for $1 billion

Facebook buys Instagram for $1 billion

Mark Zuckerberg posted this in his page 22hours ago “I’m excited to share the news that we’ve agreed to acquire Instagram and that their talented team will be joining Facebook. For years, we’ve focused on building the best experience for sharing photos with your friends and family. Now, we’ll be able to work even more closely with the Instagram team to also offer the best experiences for sharing beautiful mobile photos with people based on your interests….”Being a huge fan of Instagram this caught my attention, Why did Facebook pay such a massive price for Instagram a company with a life of less than 2 years!!

Facebook users already upload an average of more than 250 million images daily, making it the most popular photo-sharing service on the Web; Not the best though. ” But it’s not the best by far and not the most mobile, which is Facebook’s biggest weakness — that has been accomplished many others, especially Instagram, the favorite of power users who scoffed at Facebook’s weak tools. (The horror of no filters!)” ~Kara Swisher, All Things D.



Facebook and Instagram are two distinct companies with two distinct personalities. Instagram has what Facebook craves – passionate community. People like Facebook. People use Facebook. People love Instagram. It is my single most-used app. followed by Twitter and BBM :)   I spend an hour a day on Instagram. I have made friends based on photos they share. I know how they feel, and how they see the world. Facebook lacks soul. Instagram is all soul and emotion. Facebook promises no kill, but will Instagram make it stronger? i hope they remain separate apps altogether.

On the business side point of view; Seeing the Instagram acquisition as merely quashing a potential competitor to one aspect of Facebook’s offering is far too narrow an outlook, though. Better, surely to view the deal against the increasingly familiar backdrop of Facebook’s “It’s complicated” relationship with Google and Apple. One of the things people like most about the Google+ social network is its photo-sharing features. Buying Instagram not only bolsters Facebook’s capabilities on that front – photo filters in its official app within a few months, anyone? – but also keeps the startup out of Google’s clutches, should it have been tempted to make its own acquisition bid.  says Stuart Dredge, The Guardian

Goodluck to Mark Zuckerberg, I think its a smart move. if you can not bet them join them.. at a huge cost!.




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Financial Planning tip; Create or Update your Will




Creating a Will is not our Culture; Majority of Tanzanians  don’t have a will and do not see the importance of having one. Many people think creating  a will is bad omen!

If you have dependents, no matter how little or how much you own, you need a will. If your situation isn’t too complicated you can even do your own with and find a lawyer to legalise it. Protect your loved ones. Write a will.

Who needs a Will?

1. Do you care who gets your property if you die?

2. Do you care who gets your money if you die?

3. Do you care who is appointed guardian of your minor children if you die?

Wills are not just for the rich. Regardless of how much or how little money you have, a will ensures that whatever personal belongings and assets you do have will go to family or beneficiaries you designate. Without a will, the court makes these decisions.

If you have children, a will is a must, to ensure that you get to choose your children’s guardian. Few people plan to die in the near future, but if you die suddenly without a will, you’ll be subjecting your family and loved ones to confusion and anxiety at what is already a difficult time.

Note that the best of wills won’t be any good if nobody knows how to find it. Make sure your family members and your executor know where your will is kept.

I will find a lawyer to guide us on how to go about creating a Will and share.  


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Finance Tip before You Walk Down the Aisle

Finance Tip before You Walk Down the Aisle
Though it  might be an exciting time when you’re considering taking the plunge and getting  married, don’t  forget that you really need to have a serious talk with your new partner about  money before you get married. Though this may be an awkward discussion to  have, especially in our African Culture, this may sound really bad,especially for men.  What kind of man who cannot provide for his Woman!

” Mwanamke Matunzo”

before you commit yourself into “Till death do us part” contract you need to know what that person earns, what debts they owe and what  their financial plans are for the future. When  you make those vows, you’re also agreeing to a financial partnership with your  beloved. You will need to know that their goals and spending habits are  compatible with yours and that you’re not marrying someone who will drain you  financially, destroying all the hard work you’ve done to create a financially  secure life for yourself.

 I say Long gone are the days of considering  single women to be spinsters. Women  are becoming more and more comfortable in taking control of their own  finances, shaping their financial futures and turning their goals into  realities.

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