Tanzania has been ranked the leading country in East Africa and sub-Saharan Africa in 2016 in terms of having an enabling environment for financial inclusion, the latest survey shows.

According to The Economist Intelligence Unit’s Global Microscope 2016 overall scores and rankings, Tanzania is ranked 9th out of 55 countries in the world. The ranking was assessed using 12 indicators in determining global progress and challenges facing financial inclusion.

According to the survey, Tanzania has been recognised again because of its continued progress in achieving financial inclusion goals and improving the regulatory environment.

“The main developments in the past year have been the National Payment Systems Act (NPSA) and the Electronic Money Regulations (EMR), both enacted in 2015, which extend financial consumer protection,” the Global Microscope 2016 survey partly reads.

It notes that the NPSA and its attendant regulations and the EMR have extended the range of institutions covered by the Bank of Tanzania’s policy on disclosure, notably mobile money operators.

The report notes further that the new Microfinance Act is in the draft stage and that there are other activities taking place like increasing the number of players in the insurance market in order to increase coverage of the services to members of the public. The survey mentions the Bank of Tanzania’s mandate to enforce consumer financial protection and its decision to set up a customers’ complaint desk.

Also to require all banks and financial institutions under its supervision to submit quarterly reports on complaints received and resolutions achieved as another positive measure to enhance financial inclusion.

The country has been occupying the first position in financial inclusion in sub- Saharan Africa for three consecutive years since 2014, thanks to the various measures that are being implemented over the years to increase access, affordability and usage of financial services among people.

The Economist Intelligence Unit’s Global Microscope analyses the overall regulatory and institutional environment for financial inclusion in more than 50 countries.

It examines the policy and institutional environment that enables providers to offer financial products and services and employ new technologies to deliver them and ensure safe coverage of low-income populations.

It is intended to support practitioners, policymakers, investors and other stakeholders in advancing financial inclusion–to help them evaluate countries’ progress in the area and to identify further targets that will yield additional benefits.

Compared to the 2015 Global Microscope survey, Tanzania did not move in the rankings; however, Kenya and Rwanda are catching up due to significant improvements in their financial inclusion rankings based on regulatory environment and implementation of initiatives. Kenya moved three ranks above and Rwanda eight ranks above their 2015 rankings.

It is the second time within the past three months for Tanzania to be recognized internationally for its financial inclusion measures.

During the September 2016 Alliance for Financial Inclusion (AFI) Global Policy Forum in Nadi, Fiji, Tanzania through the Bank of Tanzania clinched two awards from AFI- Leadership and Peer Review awardsfor outstanding work in promoting financial inclusion.

By Tapiwa Zivira

For months, the introduction of bond notes as a measure to curtail the cash shortages seemed to be the usual empty talk by a cornered government.

Without a consensus among government officials and financial experts on whether or not the bond notes would be good for Zimbabwe’s ailing economy, and with civic groups strongly opposing their introduction, it appeared the Reserve Bank of Zimbabwe (RBZ) would relent on the decision to bring the notes.

For those pessimistic about bond notes — understandably so because of the 2008 hyperinflation ghost that still haunts Zimbabwe — they would rather struggle to access the United States dollar than have a currency they fear would bring back the ghost of hyperinflation, “money burning” and food shortages, among other troubles Zimbabweans went through eight years ago.

In conformity with the cash crisis, stranded Zimbabweans resorted to spending nights in bank queues to access their money, and keeping a keen eye on the developments related to the introduction of bond notes, which looked like they would never see the light of day considering the contestations around them.

It was only last week when reality dawned on many Zimbabweans after President Robert Mugabe invoked his presidential powers and gazetted Statutory Instrument 133 of 2016 paving the way for the introduction of bond notes as legal tender.

Showing no signs of going back, the RBZ immediately began an aggressive media campaign in the face of vagueness on where the notes would be printed after Germany recently turned down the job.

For many Zimbabweans, it sounded like the return of the 2008 money-printing and hyperinflationary era, and those with savings immediately started withdrawing them from the already cash-strained banks.

The banks, in turn, appeared to fail to meet the rising cash demand, with some limiting withdrawals to as low as $20 a day, forcing depositors to return to the bank on a daily basis until they exhausted the cash in their accounts.

In a survey in Harare’s central business district and the city’s outskirts last week, it was established that several banks had hundreds of people queuing outside from as early as 5pm the previous day and the queues grew with each hour.

For some of those who have day jobs, they join the queue soon after work, while others travel from home, armed with blankets and food.

At the CABS Fourth Street branch, where there is noticeably a higher number of people sleeping in queues, people line up the pavement, wrapped in their blankets.

The young and the old — showing all signs of desperation and fatigue — brave the rain showers and stay put in their positions.

Any movement from their position could render them out of the queue, a waste of the sacrifice they would have made.

One 46-year-old woman from Epworth who identified herself only as Mai Tafadzwa on Thursday said she was spending the night in the queue.

“After spending the night in the queue, I only got $100 at around 3pm so I decided to stay put so that tomorrow I may be lucky to get another $100,” she said.

“Maybe I can meet my cash demands for now, but I will resume on Monday till I have all my money as cash,” she added, disclosing that she had $500 in her account, an amount one could get in one withdrawal before the cash crisis started.

A mother of three, Mai Tafadzwa is afraid that despite assurances from government and the RBZ, the bond notes may not have the same value as the US dollar.

“I lost all my money in 2008 and I cannot afford to do that this time, so I have to get the last of my money before the bond notes come and we will see about the rest when the bond notes come,” she said, before joining a conversation with other women in the queue.

Typical of any gatherings, bank queues have become melting pots for political and social discourse.

This paper established during the small survey carried that unlike the fear that characterises many public forums in the country, there is an atmosphere of free speech and Zimbabweans appear to express themselves without fear of any consequences in the overnight queues.

This reporter listened to groups of people huddled together discussing — in unrestrained tones — the disappearance of human rights activist Itai Dzamara, the arrest of Higher and Tertiary Education minister Jonathan Moyo, President Robert Mugabe’s advanced age and his wife’s alleged interference in the running of the State.

They also spoke freely about corruption, election rigging and other hot topics in Zimbabwe.

But it is not just serious political and social issues that are discussed in the queues, humour and jokes also make part of the conversations.

As the night wears on, one by one, people would settle to their place, wrap themselves in blankets and doze off to wait for yet another day.

It is at this time, according to some in the queue at CABS Park Lane branch, that thieves are likely to take advantage.

“So some of us stay awake to make sure that we look out for thieves and street children who may want to steal, and we take turns to do that,” said one of the men who remained awake as others slept.

In addition to the risk of being robbed, depositors also face, among other challenges, the unavailability of ablution facilities, with women bearing the biggest burden as they have to relieve themselves in public spaces in full view of others.

“We just go around the corner, but it is always embarrassing because the city always has people walking around all the time, but there is nothing we can do, you cannot hold it until the morning,” said one middle-aged woman.

In the struggle to access their money, some are making a killing as they stand in the queue and sell their positions for $1 to those who come in the morning.

One young man, a self-confessed street person, said he can get up to $5 per day if he manages to hold five positions throughout the night.

Night vendors also pass by the banks, selling food stuffs that range from soft drinks to buns and snacks.

For all this struggle, the quest is simply to get the money that one would have worked so hard for.

Zimbabwe has experienced a number of cash shortages since the turn of the millennium resulting in the closure of many banks.

The worst cash crisis was between 2008 and 2009 leading to the death of the local currency.

Analysts say Zimbabwe cannot sustain its own currency owing to the collapse of the local economy and the introduction of the bond notes would be a temporary measure.

COLUMNBy Andrew Mwenda

Lesson for Central Bank from the experience of the takeover of Crane Bank

This week, the government injected Shs 200 billion into Crane Bank to bolster its liquidity position. This is only 40% of the Shs 500 billion needed to bring the bank into a healthy liquidity position. Yet, even if an extra Shs 300 billion is pumped into the bank, it is unlikely to be enough to ensure its turnaround. This situation could have been avoided had Bank of Uganda (BoU) exercised its powers with foresight.

At the beginning of July, BoU warned Crane Bank that its nonperforming loans portfolio had eroded the bank’s capital base and asked shareholders to inject $25m (Shs 85 billion), later reduced to $10m (Shs 34 billion). The main shareholder, Sudhir Ruparelia, promised to put in this money over three months. BoU stopped Crane Bank from issuing Letters of Credit, Bid Bonds, Performance Guarantees, new loans, overdrafts and credit cards. Yet this was the third largest bank in the country with huge overheads

Between January and June, Crane had been making Shs 6 billion in profit per month. Beginning July, the new restrictions caused the bank to make losses of Shs 2 billion per month. Besides, Crane was a bank of the business community. When all these people could not get overdrafts, Bank Guarantees, Bid Bonds, Letters of Credit, new loans etc, they began shifting their businesses to other banks, which could provide them thus leading to loss of deposits.

As many of Crane’s business customers could not get the services, they began suspecting that something was amiss. They told their friends who told their friends and business partners in turn. This caused many other people to withdraw their money. By mid October when social media began saying Crane was in trouble (causing frantic withdraws), the bank was already facing a severe liquidity problem.

Restricting Crane from doing business while keeping it open for three months was a recipe for disaster given its size and overheads. BoU should have anticipated the rumors of trouble and withdrawal of deposits. In August, Sudhir offered to borrow from BoU and mortgage some of his buildings. BoU refused this offer, a position it accepted two months later in mid-October. Thus by the time BoU took over the bank, the liquidity shortage (Shs 500 billion) was far larger than the money initially needed for recapitalisation.

BoU should have given Sudhir three months to raise the Shs 34 billion while keeping the bank running normally without the said restrictions or accepted to give him a loan against collateral of his buildings. This would have kept the bank profitable while avoiding the risks of rumors and loss of deposits that led to the liquidity crisis. Consequently, the taxpayer would not have had to fork out Shs 200 billion to inject liquidity into the bank. Yet, even Shs 500 billion may not be enough to bring Crane back to health. Why?

Crane was successful because of Sudhir’s personal intimate knowledge of the local business community and the kind of service it offered them. Whoever buys Crane Bank will not attract Sudhir’s customers. This is because they went to Crane Bank for a very specific service. Worse still, the local business community who were being served by Crane is now in a quandary.

The new owner would have bought a shell that would require many years to build public confidence. This means the new owner would have to cut the number of branches from 46 to about five, cut down employees by more than 60% and prepare to make losses for the next five years. Yet giving the bank back to Sudhir cannot be an option either because his personal reputation has been gravely damaged. And we did not need to get to this. Based on its history, there was little reason for BoU to enforce its rules with the kind of rigidity they did especially given the size and role of Crane Bank.

By end of March 2015, Crane Bank had grown from zero in 1995 into the third-largest bank in terms of shareholder funds, assets and deposits. The question for the Central bank, Uganda’s policy makers and those interested in banking policy, is: how did one man, Sudhir, do this? This is especially intriguing because Sudhir performed this feat in circumstances where the market is dominated by multinational banks – Stanbic Bank, Standard Chartered Bank, Barclays Bank and Bank of Baroda plus one institutional bank, Centenary Bank owned by the Catholic Church. Therefore one local individual had the least chance to succeed.

Crane Bank succeeded in large part because Sudhir understood the concerns of Ugandans, especially the business community. He therefore designed banking practices that very well resonated with local people. This not only allowed the bank to grow rapidly and out-compete its multinational rivals, but it also helped local businesses to grow and expand. Without Crane Bank, many local businesses with great potential would never have succeeded, a factor I outlined in my last column using this newspaper as an example.

Some readers wrote to me suggesting that Crane’s loose lending practices like the example of this newspaper are the ones that brought it into trouble. This is totally wrong. Over the last 20 years when it was using these lending methods, Crane Bank has had the least ratio of nonperforming loans – fluctuating between 0.25% and 1.76%. But for most years, it has been below 1%. This is one of the best positions any bank in the world could dream of. Therefore, in terms of managing its loans, Crane had proved its excellence. The 2015 failure was widespread across all banks in Uganda, writing off huge amounts of loans and most of them have had to recapitalise.

This brings us to the government policy in the management of banks. Uganda officially surrendered its banking sector to the ideas of IMF and World Bank. These two institutions insist that poor countries should not have national policies specifically aimed at ensuring local control of the national banking sector. In their view, this should be left to market forces. This argument is not merely theoretical. It has a lot of self-interest as well because it allows multinational banks to enter local markets, eliminate local ones, make tones of money and ship it abroad as dividends to their shareholders.

I do not know of any country that has transformed from poverty to riches with the largest share of its banking sector controlled by multinational capital. In South Korea and Singapore (as in China today), local control was over 90% during their intense period of transformation. It is unlikely that Uganda will be the first exception.

Luanda — The World Bank will release USD 230 million for the country’s agricultural and commercial projects in the context of economic diversification.

The information was released on Friday by the World Bank’s representative in Angola, Clara de Sousa, at the end of a debate on “mechanisms to access international financing lines” in the framework of the 49th edition of First Friday Club.

This event is promoted on the first Fridays of each month by the United States – Angola Chamber of Commerce (USACC).

According to her, World Bank loans are granted through the state, which later direct the funds to business institutions and entrepreneurs who submit viable projects.

On his turn, the representative of the African Development Bank (AfDB), Martin Septime, announced that the institution has several ongoing projects with the initial value of USD 1.6 billion for funding.

Among the projects, he highlighted the projects of the productive sector, such as in the fields of energy, water and sanitation, artisanal fishing, environment and institutional capacity building.

He also said that the AfDB has the mission to promote the sustainable economic development of its member countries and since 2011 it has opened an office in Angola that has facilitated relations with the Angolan government.

In turn, the executive director of the USACC in Angola, Pedro Godinho, said that it is important that companies are more daring and able to discover sources of international financing.

“Currently to get a financing from the local banks is much more expensive and difficult due to the crisis due to the drop in the price of oil in the international market”, he said.

To the US ambassador to Angola, Helen La Lime praised the event that aimed to raise awareness of the mechanisms for accessing international financing lines.

Helen La Lime called for greater dissemination of programmes to support the various sectors of the country.

PRESS RELEASE

Department of Agriculture, Forestry and Fisheries provides much needed drought relief assistance

South Africa is battling the worst drought since 1992 which has led to seven provinces (Free State, KwaZulu-Natal, Limpopo, Mpumalanga, North West, Northern Cape and Eastern Cape) declaring a provincial state of drought disaster. The Western Cape Province has declared a local state of disaster in three municipalities (Central Karoo, Eden and the West Coast). The Gauteng Province is the only province that has not yet declared a state of drought disaster.

In responding to the situation, the Department of Agriculture, Forestry and Fisheries (DAFF) and the Provincial Departments of Agriculture (PDA). In the 2015/2016 financial year that ended on 31 March 2016, allocated R263 million towards drought relief through reprioritising the Comprehensive Agricultural Support Programme (CASP); while provinces have made R198 million available through their equitable share funding. These funds were utilised to assist affected farmers with animal feed and water reticulation for livestock.

For the 2016/2017 financial year, the DAFF further requested for drought relief assistance from the National Treasury through the National Disaster Management Centre, of which R212 million has been made available for the provision of animal feed for the remaining three months of 2016 (October, November and December 2016).

The drought’s devastating effects are quite palpable and pose a risk of social upheavals. While some parts of the country are experiencing some rain, the country in its entirety is receiving below average rainfall as compared to previous seasons due to the El Nino phenomenon. Most rivers are not flowing normally and dam levels are at their lowest in a decade.

DAFF is committed to engaging and providing the necessary support to farmers during this difficult period of drought.

Issued by: Department of Agriculture, Forestry and Fisheries

By Elita Chikwati

Government has suspended import duty on Semi-Knocked Down (SKD) kits for single and double cab trucks imported by approved local car assemblers. These regulations will be for a period of three years, a move likely to bring down the price of locally assembled light trucks.”It is hereby notified that the Minister of Finance and Economic Development has in terms of Section 235 as read with Section 120 of the Customs and Excise Act [Chapter 23:02] made the following regulations.

“Customs duty is suspended on SKD single and double cab motor vehicle kits imported by approved assemblers in terms of these regulations,” reads a notice in yesterday’s Government Gazette.

According to the regulations, an assembler means any person who is registered as an assembler of single and double-cab motor vehicles in terms of Section 6.

Semi-knocked down single and double cab motor vehicle kits mean assembly kits for motor vehicles described under tariff code 8704.2120, 8704.2130, 8704.2140., 8704.3120,8704. 3130, 8704.3140 being imported by an approved assembler entirely for completion of the process of assembling single and double cab motor vehicles.

“Subject to these regulations, a suspension of duty shall be granted on SKD single and double cab motor vehicle kits imported or taken out of bond by an assembler for use in the assembly of single and double cab motor vehicles.

“No suspension of duty shall be granted on built-up single and double cab motor vehicle bodies,” reads the Gazette.

According to the Statutory Instrument, the approved assembler shall import the SKD single and double cab motor vehicle kits at a rate of duty of 10 percent ad valorem.

The major assemblers of single and double cabs on the local market are Quest Motors in Mutare, and Harare’s Willowvale Madza Motor Industries (WMMI)..

By Kwame Dankwah

Ghana has more arable land than most Western European countries yet we import agricultural products from these countries. That’s according to the General Agriculture Workers Union.

Despite the fact that agriculture contributes about 34 per cent of the Gross Domestic Product of most African countries’ economies, and shoulders the greatest part of the labour force, it is always inexplicably maligned.

A lot has been said about Ghana’s economy and the need to boost agricultural production to feed the nation, provide jobs for our people, reduce poverty and enhance the nutritional needs of our people.

However the general secretary of the General Agriculture Workers Union, Edward Kareweh has raised concerns about the need for government to put in place subsidies to enhance food production and security in the country.

According to him, it is incumbent on governments not to only provide enough financing for agricultural activities and lay down proper policies in the disbursement of these monies, but also to directly move in to help the farmer at the grassroots with subsidized seeds, fertilizers, pesticides, storage facilities, transport, machinery, and other services that will raise agricultural productivity, and render it more worthwhile both to the farmers and their governments.

He is therefore urging government to provide subsidies for agriculture. This, he argues, will increase the sector’s investment opportunities, which will then stimulate productivity.

“Nothing can be truer than this. It is now the trend the world over for governments to give subsidies to farmers to increase output”.

He also added that it is not enough for the government to expect commercial banks to fill the gap, as these institutions have their business interests to look after and will not invest in agricultural activities that might threaten their investments.

Edward concluded by calling on government to help create ready market for agricultural product to prevent post harvest losses.

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ANALYSIS

Tanzanian President John Pombe Magufuli has finally made his maiden visit to Kenya, only his third official state visit to a foreign country since he took office a year ago. All his previous visits were short trips to neighbouring countries Rwanda, twice, and Uganda.

That all his engagements have been within the East African Community seems to underline a foreign policy shift re-positioning Tanzania as a leading regional actor. His predecessor, President Jakaya Kikwete, was less enthusiastic about regional integration. Tanzania’s apparent aloofness under Kikwete gave rise to the formation of a so-called “coalition of the willing”. This saw Kenya, Uganda and Rwanda acting together to fast track regional development projects.

Magufuli’s visit to Kenya is therefore being seen as as an attempt to reaffirm Tanzania’s place within the East African Community. Just as importantly, it is also being seen as an attempt to reset bilateral relations with Kenya which, at best, have been lukewarm under his watch.

The talks between Kenyan President Uhuru Kenyatta and Magufuli appear designed to put to one side their perceived personal and ideological differences. This will not only have an impact on the two countries but also regional integration efforts.

Tetchy times

Relations got off to a rocky start early in Magufuli’s term when he disrupted Kenya’s stewardship role in the “coalition of the willing”. He did so by working with Uganda’s President Yoweri Museveni to re-route Uganda’s planned oil pipeline through Tanzania after Kenyaappeared to have secured it.

The celebrations that followed in Dar es Salaam were matched in their intensity only by the bitterness felt in Nairobi. Many commentators felt that the move undermined Kenya’s economic plans which were partly hinged on the large scale regional infrastructural projects. These also included the expansion of ports and a brand new standard gauge railway.

Diplomatic relations were brought to boiling point during negotiations to finalise a trade deal between the European Union and the East Africa Community. Kenya signed the final agreement but Tanzania flatly refused citing national interest. Many in the Kenyan government and the business sector saw this as an attempt to undermine Kenya’s economic growth and development

“Winner takes all” mentality

For a start, both countries need to avoid the “winner takes all” mentality that has defined competition between them for regional trade and infrastructure projects.

For instance, after Magufuli’s visits to Rwanda and Uganda, both countries agreed to drop earlier plans of a joint railway with Kenya connecting them to Mombasa. Instead they agreed to work with Tanzania on a railway line connecting to Tanzania’s port city of Dar as Salaam.

Another project to come out of the “coalition of the willing” was a Uganda oil pipeline that would pass through Kenya to Lamu. After intense diplomatic lobbying by Tanzania, Uganda opted to pump its crude exports to the small port of Tanga north of Dar es Salaam.

Mistrust between the two countries has also revolved around bilateral and regional trade negotiations and agreements. At the bilateral level,Kenya has regularly complained about non-tariff barriers on its exports to Tanzania. It has also accused Tanzanian officials of being complicit in the mistreatment of Kenyan business owners through punitive measures such as cancellation of work permits.

In return Kenya has at times reciprocated with debilitating consequences. An example was Nairobi’s decision to bar Tanzanian tour vans from accessing Jomo Kenyatta airport.

Towards a common agenda

Magufuli’s grand posturing has positioned Tanzania as an alternative regional economic powerhouse. This has been seen by some in Kenya as a threat to Kenya’s traditional geostrategic advantage as the gateway to the region.

The result has been Kenya’s attempts to strengthen its trade and diplomatic engagements with its northern neighbours. Just hours before Magufuli’s visit, President Kenyatta was in Sudan on an official trip in what was seen as an effort to strengthen bilateral trade agreements. Diplomatic and trade ties have also been stepped up with Ethiopia and South Sudan.

The strained relationship is unproductive and unnecessary given the significant trade relations between the two countries. This is explained by the fact that Tanzania is currently one of Kenya’s largest export markets within the region. For its part Tanzania relies heavily on Kenyan industries and businesses companies for foreign investments. These provide revenue and employment opportunities as was reiterated by Magufuli during his two day state visit.

In addition to close trade relations, both countries are also partners within the common East Africa Community market, with a set of economic growth and development policies as their priorities. It would therefore be expected that they should jointly try and create a conducive environment for regional and foreign investment.

The two countries should take a common stand in pushing to end the political instability in Burundi and South Sudan. Both are East Africa Community member states. They should also cooperate on strengthening regional trade agreements to ensure sharing of regional public goods. These include the European Union Economic Partnership Agreement with the regional common market countries.

Closer cooperation between Kenya and Tanzania will have two major likely outcomes. The first is bringing to an end divisions among East Africa Community members. The second is to invigorate collective efforts aimed at deepening integration as well as the protection of common interests.

The first example of this is the decision by Tanzania and other regional member states to endorse the candidature of Amina Mohamed for the African Union chairperson.

The renewed commitment to speed up a planned joint commission between Kenya and Tanzania is another. This forum is expected to formulate future areas of cooperation between the two states. It would also provide a framework for avoiding diplomatic tensions that have at times characterised relations between the two countries.

Disclosure statement

Sekou Toure Otondi does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond the academic appointment above.

ANALYSISBy Maka Angola

Employees at the Angolan oil giant have flushed out some startling news about Sonangol’s continued decline. Since President José Eduardo dos Santos put his daughter, Isabel (Africa’s first female billionaire), in charge the oil giant’s fortunes “are in the toilet”.

At the company’s headquarters, in a custom luxury US $400 million building, in which over-invoicing reached hallucinatory levels, officials are confronted with a stark reality. Apparently, Angola’s most important enterprise can’t afford to supply its own washrooms.

“Every worker has to bring their own toilet paper from home because Sonangol has been unable to pay its suppliers and we have a toilet paper crisis,” one official resignedly told Maka Angola.

Staff fear they’ll become the butt of jokes. They say the situation is out of hand. Only the denizens of the 18th, 19th and 20th floors – where Isabel and her coterie of expatriate ‘consultants’ have their dens – are spared the embarrassment.

Sonangol has been the primary support for the regime of President José Eduardo dos Santos and the mono-product economy of a state wholly dependent on oil. Angola rivals Nigeria as Africa’s largest oil-producing nation. You would think, that even with the plummeting price of crude, there’d be enough loose change to ensure their employees can wipe their backsides.

“It’s really hard. We are totally out of it. Is it a strategy to force a switch of suppliers? Surely it can’t be a lack of money?” says our source (who for obvious reasons wishes their identity to remain concealed).

“The former administration ‘ate’ well. Now I suppose it’s the turn of the new administration.”

Smarting from the humiliation of being denied the wherewithal to clean up, a group of Sonangol employees has been using the Whatsapp social media platform to discuss the mess. The group named itself “There is no toilet paper” and is using the site to examine the company’s state of health, with at least one wag noting drily: “there isn’t enough toilet paper in the whole country to wipe the regime’s arse clean.”

By Habel Chidawali

Dodoma — The government on Thursday failed to say exactly when the General Tyre factory that was closed in 2009 will resume operations. The minister for Trade, Industries and Investments Charles Mwijage told the Parliament that the government still acknowledges the importance of the factory, which is located in Arusha, but he could not say when it would resume production.

The Member of Parliament for Arusha Urban Godbless Lema (Chadema) had asked a question wanting to know when the government would fulfil its promise of re-opening the factory. Mr Lema whose question was asked on his behalf by Cecilia Paresso (Chadema-Special seats) also wanted to know the fate of hundreds of workers who have not been paid salary arrears.

The factory was closed in after serious operational problems caused by loss-making and a mounting debts. By the time it was shut down in 2009, the government, which is the main shareholder (74 per cent), was feuding with the minor shareholder, Continental AG, which has had 26 per cent ownership. In August 2015 the government acquired 100 per cent shares in the factory after buying back the shares in an undisclosed amount.

The closure of the factory left about 400 workers stranded and a $20 million (Sh42 billion) debt.

Responding to Mr Lema’s question the minister said all workers who have not been paid salaries should forward their claims to the Treasury.

The General Tyre was established in 1969 as a joint venture capacity with an annual production capacity of 320000 tyres. It started operation in 1971. It changed ownership several times before the German-based Continental AG company came in.

The National Development Corporation, which holds the General Tyre shares on behalf of the government, is said to be looking for a potential strategic investor or consortium of investors to partner and revive and resume tyres manufacturing operations at the factory.

“The partnership would also include including carry out plant expansion. The partner will be required to come up with the Tyre Brand that has an international,” a document prepared by NDC says.