MINING companies in Tanzania are anxiously assessing potential impact of new developments in Tanzania where Members of Parliament approved proposed legislation to govern the natural resources sector.

The bills, which will enable the government to renegotiate contracts with mining and energy companies, are part of a major overhaul of the mining and energy sectors to provide the state with a greater share of revenue from the country’s natural resources.

Shanta Gold Limited holds three projects in Tanzania, New Luika, Nkuluwisi and Singida, as well as exporation licences over a number of additional properties in the country, announced yesterday it was seeking advice on legislation, assessing potential impact.

Shanta Gold Limited is gold mining company, registered in Guernsey in the Channel Islands and is listed on AIM on the London Stock Exchange. Edenville Energy PLC said it was monitoring the situation in regards to its Rukwa coal project in the country.

It stressed that it had recently “gone through a comprehensive and complete permitting process for the project with both state and local government organisations, along with the local community, and has received widespread support to develop the project to provide both energy and employment opportunities to the people of Tanzania”.

Another mining company, Graphex Mining Ltd has been granted a trading halt by the Australian Stock Exchange on Monday as lawmakers in Tanzania were debating the new changes in the proposed bills.

Graphex requested the halt pending draft changes to mining legislation proposed by the government. The halt was expected to remain in place until the opening of trade yesterday, or earlier if an announcement is made to the market.

Anglogold Ashanti said it would, in context of its existing mine development agreement, analyse the new changes in the laws. AngloGold Ashanti has one wholly owned and managed operation in Tanzania, Geita, the largest single gold mining operation within the group.

Major overhaul of the mining industry began in March, when the government banned export of mineral concentrates and ores for metallic minerals such as gold, copper, nickel and silver and established two special committees to examine the extent, types and values of minerals contained in mineral sand in containers for export in various locations in the country.

The committees found the value of minerals within concentrates in containers at the port city of Dar es Salaam was more than 10 times the amount declared by Acacia. It also accused the largest mining company of operating illegally.

The mining company refuted the committee’s findings, saying that if they were correct it would imply that Acacia “is the world’s third largest gold miner” and “produces more gold from just three mines than companies like AngloGold Ashanti from 19 mines, Goldcorp from 11 mines, and Kinross from their 9 mines.”

However, last month Barrick Gold Chairman, John Thornton flew into the country to meet President John Magufuli where they reached agreement for negotiation to resolve the dispute.

Barrick Gold holds majority stake in Acacia Mining. But in another twist of event, Acacia Mining said on Tuesday that notices of arbitration were served to the government on behalf of companies that own its Bulyanhulu and Buzwagi mines, which have been hit by an export ban.

By Homa Mulisa

Ethiopian textile sector is attracting top international firms amid nation’s bid to industrialize. The incumbent believes, textile would benefit large number of people and paves the way for nation to join middle income status in the very near future.

Textile is a preferable gateway for developing countries in their quest to step into industrialization because of the ease in entry. The industry was apparently one of the few key drivers of the industrial revolution in Britain and Germany. The textile industries in these countires not only were the driving forces behind the Industrial Revolution, but also revolutionized the world economy in the 18th century.

The country has launched a strategy to make the most of its potential in the textile sector. On top of the industry’s innate behavior of marketability that would suffice to ensure speedy growth, electric power abundance and a growing human and material capital are seen as advantages to reinforce textile industry in Ethiopia, Bantihun Gesese, Corporate Communications Director at Textile Industry Development Institute told The Ethiopian Herald.

Accordingly, the industry is witnessing rapid growth, as a number of domestic and multinational firms are being engaged in productions of textile, garments and apparel for domestic and global markets, added Bantihun.

The sector would facilitate technology transfer and capacity development through training, and experience sharing. It is also considered as a springboard to boost the manufacturing sector and export trade.

In the path to industrialize Ethiopia, the textile is considered to be prominent in boosting export, creating job opportunities, and accruing great deal of knowledge and experience as a model to other sectors as well, Industrial Parks Corporation CEO Sisay Gemechu stated during a press briefing for launching Hawassa Industrial Park.

For instance, he added, Africa’s largest industrial park set up in Hawassa, which is exclusively reserved for textile and apparel manufacturing is expected to remarkably boost hard currency earnings and employment.

This flagship industrial park is designed to make it capable of hosting gigantic multinational firms. The experiences gained from its operation would be used as baseline for the nation’s ongoing industrial efforts, asserted Sisay.

The Hawassa industrial park is a testimony that textile has been given due attention by the government. “The other impressive matter in this industrial park is the zero-liquid-discharge policy employed in line with the nation’s Climate Resilient Green Economy strategy. The state-of-the-art waste treatment plant, which is the first of its kind in Africa, is installed in the textile industries at Hawassa and will be expanded to other industrial zones too”, according to Sisay.

At the moment a number of other industrial parks are nearing completion, and the successes gained in the textile industry in terms of attracting anchor investors would be important for other manufacturing industries as well, not only in reinforcing nation’s industrialization but also ensuring climate resilience.

For Ethiopian Investment Commission Commissioner Fitsum Arega penetrating into the “insanely competitive” global market requires the availability of strong domestic and international manufacturers. “Hence, to successfully make our way to the international market, it is crucial to attract multinational companies. Especially companies that have established their profile in the global market are vital, as the move marked a special status for the country creating wonder among the business community” underscored Fitsum.

With the favorable conditions created at Hawassa for textile and apparel production about 18 high profile companies have entered the hub, and six has already begun exporting. The rest are also gearing up to kick off either production or export.

The other striking thing in this industrial park, according to Fitsum is the integration of the products in a complementary manner. For instance, there are companies like PVH that manufacture readymade apparels and its firms get their textile inputs from a gigantic Chinese textile manufacturer in the same premises.

As these companies are providing training to their newly recruited staff at different levels inside the country and abroad, a huge deal of knowledge and experience could be drawn from the operation that eventually guarantees an accumulated know-how for the infant industrialization.

In support of Ethiopia’s ongoing industrialization, German Development Agency, GIZ has launched a program that focuses on safeguarding better and fair conditions for industrial parks’ employees while at the same time introducing new and forward looking perspectives for nation’s industrialization process, GIZ Country Director Matthias Rompel told The Ethiopian Herald.

“The program will launch a number of capacity building training for workers in the textile industry mainly in industrial parks as well as the host communities where the projects reside, creating awareness regarding environmental and social protections”, said Rompel, ensuring GIZ’s commitment to strive in sustaining nation’s industrialization efforts through technical support.

The contribution of the manufacturing sector to the economy has been lagging behind, barely creating job opportunities contrary to its potential in overhauling the agricultural sector, said Arkebe Oqubay, speaking at the same press briefing.

This, according to him, highlights the importance of focusing on transforming the manufacturing sector. “Maintaining the economic growth that has been attested requires structural change on key areas of the economy in a way it secures value addition, boost export and create adequate jobs”, said Arkebe.

Arkebe added, letting the sector of textile lead the way to the much needed industrialization is the best way as the sector is labor intensive with excellent market value products and ample raw materials in the country.

With about 194 medium and high level textile and apparel manufacturers gone operational so far in the country, the sector has created job opportunities to nearly 90,000 citizens and secured hard currency revenue of 81 million USD in the last eleven months only.

By Muthoni Waweru

Nairobi — The nurses’ strike has now clocked a month with the care givers vowing not to return to work until the signing and implementation of their CBA by the Council of Governors and the Salaries and Remuneration Commission.

In a phone interview with Capital FM News, union’s Secretary General Seth Panyako said the government has failed to give an ear to the matter and they will not relent.

“The strike will continue for as long as our concerns are not met,” said Panyako.

Nurses have cited frustration with the government’a non-implementation of the deal made with both the National and County Governments last month.

National Chairman of the union John Bii however said that the strike is illegal citing that the nurses have to go back to the negotiating table before eventually signing the CBA.

“It is not in dispute that nurses in the public sector were awarded nursing service allowance of Sh20,000 last year during the negotiated return-to-work formula, which was paid in January and February in most counties and national facilities. This was, however, stopped after the nurses, through the Secretary-General demanded health service allowance, which was the preserve of other health care cadres,” Bii said.

He added that some counties have resorted to withholding June salary for some of the striking nurses, a measure that might soon be replicated in other counties.

The Council of Governors has termed the ongoing nurses’ strike illegal as the right procedure was not followed for industrial action as stipulated in law.

Council of Governors Chairman Josphat Nanok says even as the strike continues, no County Government has received any legal notice of the strike from the Kenya National Union of Nurses.

Nanok says the nurses have gone on strike prematurely as negotiations to conclude the CBA were at an advanced stage.

“Fruitful negotiations can only be concluded once the nurses report back to work,” Nanok insisted urging the nurses to resume duty as they await conclusion of the negotiations.

He insists that there was no Collective Bargaining Agreement (CBA) signed between the Council of Governors and the nurses union explaining that negotiations were still ongoing.

According to the Council of Governors, the financial implications of the current draft CBA stands at Sh40 billion over a period of four years which translates to Sh10 billion per year which they term as unsustainable.

In the current financial year, the County Governments have made increments of Sh3.4 billion to nurses to be paid every financial year.

By Gadiosa Lamtey

Dar es Salaam — Tanzania Private Sector Foundation (TPSF) said investment in facilities like hotels at Mwalimu Julius Nyerere grounds commonly known as Saba Saba should be left to the private sector.

TPSF executive director Mr Godfrey Simbeye said yesterday that the private sector was ready to partner with Tanzania Trade Development Authority (TanTrade) towards improving the grounds.

His comment comes a day after President John Magufuli turned down a proposal by TanTrade which among other things targeted building a five-star-hotel in the grounds.

When opening the ongoing 41st Dar es Salaam International Trade Fair (DITF) on Saturday, Dr Magufuli said TanTrade should utilize the money for setting up a model industry. Mr Simbeye said that TPSF requested Tantrade to allow the private sector to improve the fairgrounds through Public Private Partnership (PPP) some years back but their request was turned-down.

“This is a bold move for the private sector because we had this idea for many years. We sent our proposal to TanTrade but it did not go through,” said Mr Simbeye.

He added the private sector is ready to improve the fair and attract more foreign and local companies to participate and showcase their products and technologies.

“It is time for TPSF and TanTrade to sit down and see how we can improve the fairgrounds,” he said.

By David Mwere

The National Cohesion and Integration Commission (NCIC) has drafted guidelines which will restrict the use of social media on political messaging before and after the August 8 elections to avoid instability in the country.

The guidelines released by the commission chair Francis Kaparo, seek to prevent the transmission of undesirable political content using text messages and social media posts.

Coming at a time of heightened political activity in the country ahead of next month’s polls, the guidelines also bar political messages that are offensive, abusive, insulting, misleading, confusing, obscene or profane language.

Mobile phone operators have been given the power to stop circulation of the messages deemed to be inflammatory.

IN VERNACULAR

“The message shall not contain inciting, threatening or discriminatory language that may or is intended to expose an individual or group of individuals to violence, hatred, hostility, discrimination or ridicule on the basis of ethnicity, tribe, race, colour, religion, gender or disability,” the guidelines state.

The rules also dictate that no bulk text messages will be in vernacular. In 2008, over 1,300 lives were lost due to post-election related violence that was largely blamed on hate speech.

Information and Communication Technology Cabinet Secretary Joe Mucheru was upbeat with the guidelines noting that his ministry will work closely with that of Interior to deal with “issues very fast.”

“We have held several consultative meetings and have ensured we have both online and offline teams monitoring the political messaging,” Mr Mucheru said.

LEGAL PROCESS

The CS also dismissed fears on why parliament had not been involved in the adoption of the regulations and whether it was an attempt to introduce censorship through the backdoor, saying that those found to have violated the law will be dealt with fairly.

“It is clear that the guidelines are dealing with what is not allowed. This is our country and we want to ensure that we have a country that is safe.

“If someone is caught, they will be taken through the legal process. The judiciary enforces the law, so there is nothing sinister about this,” he said.

Those who violate the guidelines will be punished in line with the NCIC Act, the penal code and other relevant laws.

WHAT TO AVOID

The NCIC Act provides a minimum of Sh1 million fine or a jail term of not exceeding three years or both.

Those sending the messages are required to avoid a tone and words that constitute hate speech, ethnic contempt and incitement to violence, harassment, abuse, violence, defamation or intimidation.

“The rules provide that it shall be the responsibility of the content author to authenticate, validate the source and truthfulness of their content prior to publishing,” the guidelines say.

Prior to sending a political message, the content service providers are required to make a request to a mobile network operator at least 48 hours before sending the message.

VET CONTENT

The request shall include verbatim content of the political message, signed authorisation letter from the political party or individual sponsoring the message.

Content shall then be vetted by the mobile network operator to ensure compliance and notify the requesting entity within 18 hours of submission of the request.

However, the network operator has the right to refuse the transmission of a proposed message it views does not comply with the set guidelines.

By Florence Mugarula

Dodoma — The ongoing Parliamentary sessions are set to be extended till next Wednesday to give Members of Parliament more time to work on three bills as requested by President John Magufuli.

Parliament Speaker Mr Job Ndugai informed MPs yesterday after question-time that the president had officially written to Parliament asking MPs to debate and endorse three bills under a Certificate of Urgency – prompting the House to ex tend its sessions to July 5, this year.

The bills in question include the Written Laws (Miscellaneous Amendments) Act, 2017; the Natural Wealth and Contracts (Review and Renegotiation of Unconscionable terms) Act, 2017; and the Natural Wealth and Resources (Permanent Sovereignty) Act 2017.

According to Mr Ndugai, the Parliamentary Steering Committee met on Wednesday and discussed President Magufuli’s letter, complete with the reasons behind tabling the laws on a Certificate of Urgency Terms and consented.

Mr Ndugai said he had already directed the Parliamentary Constitutional and Legal Affairs Commit tee to immediately start working on one of the bills immediately; the two committees would also start working on the other bills from yesterday, hopefully bringing them safely to harbour this Sunday – and invited other MPs to join these committees to come, listen, learn and gain knowledge from their deliberations.

“The committee will start working on the bills from today till Sunday … debating and (hopefully) endorse the bills between Monday and Wednesday,” the Speaker explained.

However, the proposal to extend parliamentary sessions was challenged by Kibamba MP (Chadema), Mr John Mnyika, who said it was difficult for the MPs to discuss and endorse three bills within such a short time, alleging that the current discussion on bad mining contracts were also a result of endorsing bills under ‘certificates of urgency.’

“In 1997, this House endorsed mining laws on a Certificate of Urgency which have brought us several challenges … including the ongoing mineral concentrates saga. “In 2005, this House also endorsed three bills on Certificate of Urgency … the bills dealt with natural gas and revenues. As a people’s representative, I request that this proposal be debated in this House,” he said.

However, the Minister of State in the Prime Minister’s Office (Policy, Parliamentary Affairs, Labour, Employment, Youth and the Disabled), Ms Jenista Mhagama, countered Mr Mnyika’s statement, arguing that the government had followed all the procedures before bringing the bill to Parliament.

By Elias Mambo and Obey Manayiti

Even though President Robert Mugabe accuses the Chinese of looting US$15 billion in diamond proceeds, we can exclusively reveal that his wife received US$7 million from one of the Chinese mining companies to finance the construction of the Grace Mugabe Junior School.

Anjin Investments, a joint venture between China’s Anhui Foreign Economic Construction (Group) Co Ltd (Afec), and Matt Bronze Enterprises — a front for the Defence ministry and the Zimbabwe Defence Forces through Glass Finish Investments (Pvt) Ltd — built the US$7 million state-of-the-art school, the Zimbabwe Independent has established.

Investigations revealed that Afec’s subsidiary company, Sogecoa Zimbabwe Limited, was used to fund the construction of the school under a US$7 million grant.

According to the loan agreement, the funding was requested in 2008 and the construction commenced on November 4 2011 and was completed in February 2013.

This news article is part of an ongoing ground-breaking investigation into the Marange alluvial diamonds discovery and subsequent plunder at various stages by state and non-state actors. The special series is supported by the Investigative Journalism Fund.

The school in Mazowe is built on a 7 720-square metre plot and features 27 classrooms, a library, an art room, music room, computer room and auxiliary equipment rooms.

The institution has four classes with 24 pupils each from Grade 1 to 7 and caters for orphans drawn from Grace Mugabe Children’s Home.

Anjin used its subsidiary, Sogecoa, to engage in activities outside mining. The company concentrated on investing the mining proceeds in the construction of hotels and shopping malls.

“Money was transferred from Anjin to Sogecoa to be invested in other business ventures other than mining,” the source said.

“Sogecoa facilitated the construction of Peacock Mutare Hotel, Peacock Harare and Long Chen (Plaza) shopping mall.”

Anjin is a joint venture between Afec, a large construction company which sources say is connected to the military-industrial complex in China, and Matt Bronze Enterprises, which was formed by the Defence ministry and the Zimbabwe Defence Forces through Glass Finish Investments (Pvt) Ltd.

The agreement to form a joint venture was signed by Brigadier-General Charles Tarumbwa for Matt Bronze (Pvt) Ltd and Peng Zheng on behalf of Anhui.

Fresh investigations by this paper revealed that government through the Zimbabwe Mining Development Corporation (ZMDC) held 50% shareholding with Afec owning the other 50%.

“The 50% share which government held was composed of the military which had a 30% stake, police (10%), while ZMDC had 10%,” a source said.

As reported by this paper, the military is the biggest local beneficiary of Anjin’s diamond mining revenues. Bank statements seen by this paper show that Anjin and Jinan, both Chinese companies, deposited millions of dollars into the subsidiary company’s account before the money was used and electronically transferred to banks outside Zimbabwe.

The school, built in a record 11 months, opened its doors at the beginning of the year with 97 children and 11 teachers, marking the Grace Mugabe Foundation’s second project in Mazowe after the orphanage which now houses over 50 children.

At the official handover ceremony in January 2013, Mugabe said: “This intervention by the Grace Mugabe Foundation is a welcome complement to government’s plans to build more schools, or at least make those already in existence more accessible.

“As head of state and government, I am naturally pleased that the work which is taking place here places Zimbabwe firmly on the path to addressing some of the challenges given to United Nations member states through the Millennium Development Goals.”

He also commended the Chinese people for the hard work and speed with which they undertook the task, saying Zimbabweans should draw lessons from the Chinese by doing their business timeously and meticulously.

KNAUF Gypsum, which is one of the leading firms in the world in gypsum making, is planning to invest more than 15 million US dollars in Tanzania in the next few years.

Speaking in Dar es Salaam this week, the firm’s Managing Director for East Africa, Zachopoulos Georgios, said that so far they have invested close to 10 million US dollars into their operations and expect to reach 15m US dollars in the next few years.

KNAUF Gypsum started its operation in Tanzania nearly three years ago employing directly more than 150 in which 99 per cent are locals. “KNAUF is operating in more than 200 countries around the world but Tanzania is the first in Sub- Saharan Africa.

We picked Tanzania because of its strategic position in the Great Lakes Region where it has the potential to be door into African hinterland,” he said. He said Tanzania was also an attractive investment destination due to peace and tranquillity and its rapid growing population which will expand the consumer base.

“The country is peaceful and has a huge number of people which is projected to grow even more in the next few years. KNAUF is here to stay for a long time and we expect to be one of the country’s strategic investor very soon,” he said.

According to him most of the raw material is acquired locally and that they mine their own gypsum stone in the South of Tanzania. He said their gypsum products are according to their customer’s taste but said initially, for the East African region, they have earmarked gypsum boards of 9 and 12 mm regular board and 12.5mm for moister resistance and fire resistance system to match the requirements.

According to the MD, they have technology which can replace wood usage in gypsum installation with metal section (metal profile) and the same is produced in Tanzania with the state of art modern facility at Mkuranga of sizes 50mm, 64mm, 75mm and 100mm to construct dry wall to match the customer requirement, furring channel, main channel, GI angle and other accessories for ceiling work.

Other products they are planning for the region are gypsum powder for joint filling and skimming with new improvement Geo Plaster to reach even the low cost housing with an affordable pricing to the user, gypsum Screws with high strength of various sizes 25, 35, 45 and 55mm length and gypsum tape for board to board joint reinforcement.

He said they are also keen in giving back to the community and one of the ways they have done this is though training local construction technicians so they are able to produce the right standards of work required.

“All of them get non accredited certificates that are recognized in most of the countries within construction sector, to ensure competitive advantages for the trainees when they opt overseas employment. The MD urged the government to continue improving the business environment to all investors.

“We are not asking for favours but just a conducive environment which we can operate,” he said, adding that currently they export eight per cent and planning to grow between 20 to 30 per cent in the next few years KNAUF is one of the world’s leading manufacturers of modern insulation materials, dry lining systems, plasters and accessories, thermal insulation composite systems, paints, floor screed, floor systems, and construction equipment and tools.

KNAUF Tanzania is owned by KNAUF Group, a German multinational, familyowned company known for drywall gypsum boards. It operates 150 production facilities and sales organisations in over 60 countries, 26,000 employees worldwide, and sales of 6.27 billion Euro (in 2013)

By Nyemudzai Kakore

Over 90 percent of the country’s close to 100 000km of road network are in bad state with an estimated $5,5 billion required for maintenance and rehabilitation, a Road Conditions and Inventory Report has revealed.

The report noted the existence of 310 000 features on 97 000km of road network, which include road signs, bridges and street lights.

Addressing delegates after receiving the report yesterday, Transport and Infrastructural Development Minister Dr Joram Gumbo said road authorities had an obligation to protect the initial investment in the country’s road network.

“It is important to note that a credible database has a direct bearing on the future success of Government in terms of planned necessary interventions. I need not to overemphasise that success or failure in road infrastructure is measured by the impact it has on the economy and upon the lives of the ordinary people,” he said.

“It is my hope that the database will provide an appropriate opportunity for road authorities and Zimbabwe National Roads Authority to interact on the basis of equality, partnership and common good to develop new strategies to steer the institutions in the cause of infrastructural development in line with Zim-Asset Infrastructure Cluster.”

The survey was done by the Zimbabwe Local Government Association (ZILGA) and ZINARA.

It cost an estimated $1,7 million.

The report indicates that the District Development Fund has 25 034km and the Department of Roads 18 431km.

Rural District Councils have 40 205 km, Urban Council 11 333 km while 3 046km was not owner classified.

The report also indicated that 29 100km of the road network is in very poor condition, 37 967 in fair condition, 16 557 km was good condition and 7 913km in very good condition while 6 510km of roads were not computed because of lack of information.

ANALYSIS

On a day when South Africa’s biggest gold mine, Anglo Gold Ashanti, announced that it was considering retrenching some 8,500 workers, miners from North West province marched on the Johannesburg Stock Exchange (JSE) to demand an end to retrenchments and a fairer share of the economic wealth being extracted by the mining companies operating in the area. By IHSAAN HAFFEJEE.

Sello Seemela estimates that the last time he held formal employment was over 10 year ago. The 40-year-old father of three resides in the town of Bapong in North West. On Wednesday he joined hundreds of fellow miners from mining communities situated along the province’s platinum belt as they embarked on a protest march to the Johannesburg Stock Exchange (JSE) where they demanded an end to retrenchments.

“These mining companies make promises saying they will employ locals to work in the mines but what we find is that they are bringing in people from far away and the locals are suffering,” said Seemela. “The mining companies are getting rich off the land on which we live but we have nothing. Not even jobs. There is so much unemployment. That is why people could come to this march today – because…