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Canada and Tanzania Sign Investment Treaty

Source: In2EastAfrica Site

DAR ES SALAAM, Tanzania, May 16, 2013 – Foreign Affairs Minister John Baird and Bernard Membe, Tanzania’s Minister of Foreign Affairs and International Co-operation, today issued the following statement upon signing the Canada-Tanzania Foreign Investment Promotion and Protection Agreement (FIPA):

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“The agreement signed today will strengthen economic ties between our two countries and help our companies invest with greater confidence in our respective markets. Facilitating two-way investment helps generate jobs, growth and long-term prosperity for Canadians and Tanzanians.

“A FIPA is a treaty designed to protect and promote investment abroad through legally binding provisions, as well as to promote inward foreign investment. By ensuring greater protection against discriminatory and arbitrary practices, and by enhancing the market predictability, a FIPA provides businesses with greater investment confidence.

“We are committed to creating the right conditions for businesses to compete and succeed internationally, which in turn will contribute to jobs and economic growth in both Canada and Tanzania.

“Now that the agreement has been signed, both countries will proceed with their ratification processes. The agreement will come into force once each country’s domestic approval process is complete.

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Posted by on May 17, 2013 in Tanzania News

 

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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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Africa is still way too dependent on resources

REUTERS

Africa’s brisk economic growth over the past decade has been consumer driven, a much-hyped trend that masks the uncomfortable fact that the region remains far too reliant on commodities.

Sub-Saharan Africa’s growth has been second only to Asia and cracked along at 5.8 percent last year, according to a World Bank estimate, if South Africa, the continent’s biggest economy, is excluded.

About two-thirds of growth in the past decade has been driven by domestic demand, which has been stoked by a number of factors including the continent’s fast-growing and young population. Consumption has had multiplier effects into a range of services including banking and finance.

Yet unlike in Asia, Africa’s consumer boom has been financed mostly by income generated from the export of natural resources. Without developing a manufacturing sector the world’s poorest continent has effectively skipped, or missed out on, the industrial revolution that has powered China’s rise.

And that leaves it vulnerable to a sharp slowdown as the global commodities boom now looks to be faltering.

While commodities in the past decade only accounted for between a quarter and a third of African growth, depending on your measure, most of the $38 billion of Africa’s net foreign direct investment inflows in 2012 were into extractive industries.

Natural resources still account for three-quarters of sub-Sahara’s exports, according to the World Bank’s latest Africa’s Pulse analysis of the region’s economy.

It notes that the value of exports from the region soared to $420 billion from $100 billion between 2000 and 2011 – a promising trend that is also very much a double-edged sword.

“A lot of the growth in that value has been driven by the commodity boom rather than increased volumes or production,” said Russell Lamberti, chief strategist at Johannesburg-based economic consultancy ETM Analytics.

Signals abound that the commodity boom, which accompanied Africa’s fastest era of growth, is running out of steam. Having poured $400 billion into commodities over the past decade, many investors are now selling.

The lower airfare and cheaper food that may result will need a long lead time, while many African countries will feel pain in the meantime.

Take fast-growing Angola, Africa’s top crude producer after Nigeria. Its exports are worth around 65 percent of its GDP, and oil comprises 98 percent of total exports.

Consumption there has also been growing rapidly and the splurge has been on imports. So any sharp fall in oil production or prices could stymie that boom.

Government income in the big crude exporters would also take a massive hit. In Nigeria, oil and gas accounts for 80 percent of state revenue and 95 percent of foreign exchange.

“Any downturn in the oil price on the international market would certainly lead to lower fiscal revenues, and hence may have an impact on fiscal spending and economic growth,” said Thalma Corbett, head of research at NKC Independent Economists.

On the flip side, domestic demand in Africa has been supported by slowing inflation and falling oil prices will curb that further in the region’s many crude importers.

 
 

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TTCL yazindua huduma, yapunguza bei ya intaneti

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Meneja Masoko na Mauzo wa Kampuni ya Simu Tanzania (TTCL), Peter Ngota akionesha aina mpya ya Smart Phone wakati wa uzinduzi wa Huduma ya Bando na TTCL na kampeni ya punguzo kubwa la bei ya intaneti uliofanyika leo jijini Dar es Salaam. Kulia ni Mkuu wa Mauzo TTCL, Kisamba Tambwe. (Picha na Habari Mseto Blog)

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Meneja Masoko na Mauzo wa Kampuni ya Simu Tanzania (TTCL), Peter Ngota akizindua Huduma ya Bando na TTCL na kampeni ya punguzo kubwa la bei ya intaneti uliofanyika leo jijini Dar es Salaam. Kushoto ni Mkuu wa Bidhaa TTCL, Issaya Ernest.

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Posted by on April 3, 2013 in Tanzania News

 

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12 ways to eliminate stress at work

Source: , Forbes

The average business professional has 30 to 100 projects on their plate. Modern workers are interrupted seven times an hour and distracted up to 2.1 hours a day. And four out of 10 people working at large companies are experiencing a major corporate restructuring, and therefore facing uncertainty about their futures. This may be why more than 40 percent of adults say they lie awake at night plagued by the stressful events of the day.
“People are asking me for answers,” says Sharon Melnick, Ph.D, a business psychologist and author of just released Success Under Stress. “Everyone feels overwhelmed and overly.

Is there a way to maintain steady focus throughout the day? Is it possible to do everything that needs to get done and still have energy left over after work? How do you keep cool under so many demands? Informed by 10 years of Harvard research and field-tested by more than 6,000 clients and trainees, Melnick offers the following strategies to take your work stress down a peg, before it takes over your life.

Act rather than react

“We experience stress when we feel that situations are out of our control,” says Melnick. It activates the stress hormone and, if chronic, wears down confidence, concentration and well-being. She advises that you identify the aspects of the situation you can control and aspects you can’t. Typically, you’re in control of your actions and responses, but not in control of macro forces or someone else’s tone, for example. “Be impeccable for your 50 percent,” she advises. And try to let go of the rest.

Take a deep breath

If you’re feeling overwhelmed or are coming out of a tense meeting and need to clear your head, a few minutes of deep breathing will restore balance, says Melnick. Simply inhale for five seconds, hold and exhale in equal counts through the nose. “It’s like getting the calm and focus of a 90-minute yoga class in three minutes or less at your desk,” she says.

Eliminate interruptions

“Most of us are bombarded during the day,” says Melnick. Emails, phone calls, pop-ins, instant messages and sudden, urgent deadlines conspire to make today’s workers more distracted than ever. While you may not have control over the interrupters, you can control your response. Melnick advises responding in one of three ways: Accept the interruption, cut it off or diagnose its importance and make a plan. Many interruptions are recurring and can be anticipated.
“You want to have preset criteria for which response you want to make,” she says. You can also train those around you by answering email during certain windows, set up office hours to talk in person or close the door when you need to focus.
Schedule your day for energy and focus
Most of us go through the day using a “push, push, push” approach, thinking if we work the full eight to 10 hours, we’ll get more done. Instead, productivity goes down, stress levels go up and you have very little energy left over for your family, Melnick says. She advises scheduling breaks throughout the day to walk, stretch at your desk or do a breathing exercise. “Tony Schwartz of the Energy Project has shown that if we have intense concentration for about 90 minutes, followed by a brief period of recovery, we can clear the buildup of stress and rejuvenate ourselves,” she says.

Eat right and sleep well

“Eating badly will stress your system,” says Melnick, who advises eating a low-sugar, high-protein diet. “And when you’re not sleeping well, you’re not getting the rejuvenating effects.”

According to the CDC, an estimated 60 million Americans do not get sufficient sleep, which is a critical recovery period for the body. If racing thoughts keep you from falling asleep or you wake up in the night and can’t get back to sleep, Melnick suggests a simple breathing trick that will knock you out fast: Cover your right nostril and breathe through your left for three to five minutes.

Change your story

Your perspective of stressful office events is typically a subjective interpretation of the facts, often seen through the filter of your own self-doubt, says Melnick.
However, if you can step back and take a more objective view, you’ll be more effective and less likely to take things personally. She recalls one client who sent a request to human resources for more people on an important project. When she was denied, she immediately got angry and defensive, thinking they didn’t trust her to know what she needed. Yet she never stopped to even consider there might be budgetary issues on their end. Once she was able to remove herself from the situation, she called the HR director and said: Tell me where you’re coming from, I’ll tell you where I’m coming from and then let’s see if we can find a solution. Ultimately, it worked.

Cool down quickly

“When you feel frustrated or angry, it’s a heated feeling in your body that can cause you to react,” says Melnick. Instead of immediately reacting—and likely overreacting—she suggests trying a “cooling breath” technique: Breathe in through your mouth as if you are sipping through a straw, and then breathe out normally through your nose. Done right, you’ll feel a cooling, drying sensation over the top of your tongue. It’s like hitting the “pause” button, giving you time to think about your response. She says, “It’s so powerful it will even calm theotherperson down.”

Identify self-imposed stress

“Learn to stop self-imposing stress by building your own self-confidence rather than seeking other’s approval,” says Melnick. If you’re too caught up in others’ perceptions of you, which you can’t control, you become stressed out by the minutia or participate in avoidance behaviors like procrastination. Ironically, once you shift your focus from others’ perception of your work to the work itself, you’re more likely to impress them.

Prioritize your priorities

With competing deadlines and fast-changing priorities, it’s critical to define what’s truly important and why. That requires clarity, says Melnick. It’s important to understand your role in the organization, the company’s strategic priorities, and your personal goals and strengths. Cull your to-do list by focusing on those projects that will have the most impact and are best aligned with your goals.

Reset the panic button

For those who become panicked and short of breath before a presentation, Melnick says you can quickly reduce your anxiety with the right acupressure point. Positioning your thumb on the side of your middle finger and applying pressure instantly helps regulate your blood pressure.

Influence others

Even if you’re responsible for your behavior and outlook, you’re still left dealing with other people’s stressful behavior, Melnick notes. She advises confronting a problem coworker or employee by stating the bad behavior in a respectful tone, describing the impact on the team and the individual, and requesting a change. For example, constant negativity might be addressed in this way: “When you speak in a critical tone, it makes others uncomfortable and less likely to see you as a leader. I understand your frustration but request that you bring concerns directly to me, so we can talk them through.” By transferring the ownership of the problem, you’re more likely to resolve it.

Be your own best critic

Some 60,000 thoughts stream through your mind each day, Melnick says, and internal negativity is just as likely to stress you out as an external event. The fix? Instead of being harsh and critical of yourself, try pumping yourself up. Encouraging thoughts will help motivate you to achieve and ultimately train you to inspire others.

 
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Posted by on April 3, 2013 in Articles

 

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How to turn guilt into productivity at work

By Martha C. White
NBCnews.com

We all have them: those work tasks hanging over our head that we keep putting off even though doing so makes us feel even worse.

Tap into that guilt over unaccomplished tasks and use it to make you a more productive worker, said Nick Jehlen, partner at design consulting firm Action Mill.

Jehlen started an experiment he dubbed “guilt hour.” At a weekly meeting, workers publicly identified the undone task they felt the most guilty about putting off. Everyone spent the rest of the hour tackling the task they named. “It was instantly helpful,” Jehlen said.

Jehlen said that the “social aspect,” in which co-workers will offer to help out or share a burden, is one benefit, since tasks can be transferred but a person’s sense of guilt hanging over it doesn’t go along with it. “People feel guilty about something they’re not doing … but somebody else can take it off their plate and not feel guilty about it,” he said.

It’s possible to use guilt in a positive way to complete tasks even without group feedback, though. There are a couple of principles that anyone can apply to their own backlog of dreaded duties, Jehlen said.

One reason “guilt hour” works is because people spend an entire hour working on just their individual single tasks. “It’s a huge, huge part of it,” Jehlen said.

“Attention has become the most critical barrier today to high performance and productivity,” Louis S. Csoka, president and founder of APEX Performance, said via email.

“Multi-tasking and other things can diminish our productivity,” said Taya R. Cohen, assistant professor of organizational behavior and theory at the Tepper School of Business, Carnegie Mellon University. “With procrastination, often it’s just starting or carving out that time.”

Making the time is one catalyst to getting the job done. Another is saying you’ll do the task you’re putting off in front of other people.

“Accountability can be a really powerful tool,” said Mark Ellwood, president of Pace Productivity. He created a website called BuddyHive.com to help workers stuck in a rut on a personal or professional project. They can use the site to find like-minded people who will check in with them, offer advice and hold them accountable.

It’s also worth taking a look at what kinds of tasks you tend to put off, and which ones you feel the worst about shirking. “Anytime you’re asking somebody for a favor or advice, that’s the kind of thing that often comes up” in guilt hour, Jehlen said.

Ellwood said administrative tasks are often blamed for sapping productivity. “The sorts of things people are procrastinating are the things they don’t see as adding value to their jobs,” he said. But although we might not see them as valuable, paperwork and the like can prompt stronger feelings of guilt because these tasks often hold up someone else’s workflow if they’re left undone.

Cohen added that it’s also important to keep the guilt focused on a specific task. “Guilt can be good if if’s focused on specific behaviors you can then do something about.” Feeling bad about yourself as a person and your work overall, though, can be detrimental.
If done wrong, tapping workplace guilt can be bad for morale. “This is a negative approach to something that should be looked at it in a more positive and encouraging mode,” Csoka said. People would be better off just developing and executing a clear goal plan, he said.

But if an unfinished task is really putting a drag on productivity, acknowledging the feelings you have about it might not hurt. “The longer you don’t do it, the more guilty you feel about it and the harder it is to get done,” Jehlen said. So, block out an hour on your calendar and alleviate your guilt.

Source: CNBC news

 
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Posted by on March 27, 2013 in Articles

 

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