No apartheid memorabilia or flags would be welcomed at an anti-farm murder gathering in Klapmuts, Cape Town, on Monday morning.

The gathering will rather focus on unity among all South Africans, ‘Genoeg is Genoeg’ [Enough is Enough] organiser Talita Basson told News24.

“We are against everything that is a part of the old South Africa. We won’t be singing Die Stem , we won’t be carrying the apartheid flag and we won’t allow any hate speech.”

“What we are doing is about the new South Africa, from the farmer to the farm worker.”

She said farm workers have been approached to do one of the prayers at the gathering.

“We are doing everything in the name of the Lord.”

Between 500 to 1500 people are expected to gather at Kanonkop, Klapmuts, from 06:00.

From there at 08:00, participants would drive along the R44 to the Cape Town Green Point Park where a prayer gathering will be held.

On Facebook, 1 400 people indicated that they’ll be attending the gathering.

Basson, 21, an education student at Stellenbosch University said she was inspired to organise the event after she drove past Joubert Conradie’s farm.

Conradie died on Tuesday last week after he was shot on his farm in Klapmuts.

“At first I wanted to just ignore it and drive away, but when I saw people praying I decided to stop. I knew I wanted to do something; I needed to do something.”

Basson said farm manager Chris Loubser is also in support of the gathering.

A video of Loubser was widely shared on social media the past week where he made an emotional plea for South Africans to stand together against farm murders.

A separate gathering by Johan Willemse is being held in front of the National Assembly on Monday morning, but Basson said ‘Genoeg is Genoeg’ is not aligned with Willemse.

Willemse previously chained himself to a Jan van Riebeeck statue in the Cape Town CBD over concerns of its removal.

“We are strictly a non-political gathering,” Basson said.

Western Cape Police Spokesperson Colonel Andrè Traut said police are aware of the ‘Genoeg is Genoeg’ gathering and will deploy an “adequate number of police officers”.

Basson and her co-organiser Daniel Briers approached the City of Cape Town for event approval, but on Friday afternoon it had not yet been granted.

Briers, 44, a farmer outside Paarl said the gathering is “not a call for chaos, but a call for love”.

“We are wearing black on Monday for every daughter [who] is raped on a field, for every murder that occurs in this country. We are saying enough is enough,” he said.

“We are not calling for division, but we are calling everyone to unite for love, joy and peace for this country.”

News24

By Kingsley Opurum

Abuja — The Russian Federation is without a shadow of doubt, an economic powerhouse in Europe and the world at large as well as Nigeria is the giant of Africa, which means that the bilateral cooperation of both continental giants will position properly in the comity of nations especially Nigeria that is still a developing nation.

But in spite of these underlying similarities between the two nations, their trade relations have continued to be up against a brick wall due to the inability to ratify some frameworks that will streamline and enhance the trade cooperation between Russia and Nigeria.

Pundits have already started calling on the Federal Government of Nigeria to waste no time and ratify the agreement on the promotion of investment with a view to strengthening bilateral trade relations with the former Soviet Union nation.

Apparently, the inability of the Federal Government of Nigeria to ratify the framework, which it signed with the Russian Federation some years ago, has continued to hamper the growth of trade between the two countries.

Reports have shown that lack of political will and support by both governments, are also some reasons for the low volume of trade. Trade volume between the two countries currently stands at 400 million US dollars, which authorities in both countries have repeatedly said that it should be many times larger, given that Russia is the biggest market in Europe and Nigeria the biggest market in Africa.

Foreign affairs commentators have stressed the need for the speedy expansion of bilateral trade, adding that both countries have enjoyed very cordial relations over the past 50 years with cooperation in education and other technical areas.

Emphasizing Russian hospitality and friendliness, A Russian-based Nigerian scholar, Dr. Charles Peters, said that many Nigerians have benefited from Russian training programmes and scholarship, and that Russia has a prison exchange agreement “which allows Nigerians, who violate its laws, to be repatriated”.

“Today, there is no Nigerian serving jail term in any part of Russia. More than 5,000 Nigerians reside in Russia peacefully,” Dr. Peters said.

Early this year, Russia affirmed that Nigeria was one of its strongest trade partners and hoped to strengthen such relationship in the coming years.

During the Russian Federation National Day celebration at the Russian embassy in Abuja, Russian Ambassador to Nigeria, Nikolay Udovichenko, said that the country hopes to strengthen bilateral trade and investment cooperation with Nigeria.

He also said that Russia would continue its educational programme to Nigerian students on scholarship basis.

“Nigeria is one of our greatest trading partners and we have had a strong relationship in the last years but hope to strengthen it and do a lot more together in the future.

“We would continue to support Nigeria in achieving economic and social development by helping Nigeria to utilise its resources in more effective ways.

“We are glad that we can celebrate our national day in a country that has been very supportive.

“The Russian government has offered many Nigerians scholarships to study in Russia and we extend our gratitude to those who have studied in Russia for always being supportive and cooperative,” he said.

Russia and Nigeria had taken steps to deepen their economic and political ties when on May 30, Geoffrey Onyeama, Nigeria’s minister of foreign affairs, held diplomatic talks with Sergei Lavrov, his Russian counterpart, during an official working visit to Moscow.

The foreign ministers had discussed issues pertaining to the steady development of bilateral ties in political, trade, economic and humanitarian areas.

Analysts described Onyeama’s official working visit to Moscow as a step in the right direction and more concerted efforts should be made towards bolstering up diplomatic ties of both countries.

Also, Udovichenko said that his country would build a strong economic relationship with Nigeria.

Receiving the Managing Director, News Agency of Nigeria (NAN), Mr Bayo Onanuga, at the embassy, Udovichenko said Russia was ready to partner with Nigeria in its efforts to rebuild its economy.

He said that a Russian delegation, to be led by the Minister of Agriculture, was due in Nigeria in November to discuss areas of cooperation between the two countries.

The envoy said similarly, Russian major oil company, Gazprom, had entered into a joint venture partnership with the Nigeria National Petroleum Corporation (NNPC) to exploit abundant gas resources in the country.

Udovichenko also recalled the agreement signed between the two countries for the setting up of a nuclear research centre in Nigeria which would eventually lead to the building of a nuclear plant within the next seven years.

He said that Russian companies were ready to give more favourable terms to Nigeria and work toward transferring technology to build the capacity of Nigerians.

The envoy said 10 Nigerians were receiving training in Russia in nuclear technology as part of the agreement signed in June.

He stressed the need for closer cooperation between the media of the two countries so as to create better understanding and protect the image of both countries.

Analysts have also recalled when Nigeria was seriously grappling with the fight against Boko Haram, which hit its nadir, and turned to supposed allies for assistance but was abandoned to its fate; Russia was the only available country to render that much needed assistance by selling arms, tanks and helicopter to the Boko Haram-ridden country.

Nigeria is considered the economic powerhouse in the West Africa region. It is one of Africa’s fastest growing economies and has the largest population in the continent, which is why the giant of Africa should strain every sinew to take practical steps to bolster economic and strategic ties with Russia.

However, Ibrahim Usman Gafai, Charge d’Affairs at the Embassy of the Federal Republic of Nigeria in Moscow, said in an interview that economic relations between both countries have steadily developed during the past few years with a number of leading Russian companies establishing their presence in Nigeria.

Russian investment in Nigeria covers such areas as energy, iron and steel and hydro carbon. Over the years, the diplomatic relationships have also witnessed the establishment of Russia-Nigeria Business Council (RNBC) which oversees economic activities between the two countries.

So far, the two countries have held three meetings of the Joint Commission, the last being in 2009. The Joint Commission is the platform for the two countries to sit down and draw up agreements and Memorandum of Understanding (MoU) on how to conduct businesses and investment in each other’s country.

One of the strategies is to encourage trade promotion through solo exhibitions of good made in each other’s country. Nigeria businesses are encouraged to carry out such solo exhibitions in Russian cities such as Moscow, Saint Petersburg, Krasnodar and Kuzbas regions.

On the other hand, Russian businesses are also encouraged to participate in various annual trade fairs organized by different Chambers of Commerce in Nigeria. In addition, the Moscow’s Nigerian Embassy will continue to call on the two countries to create an investment forum to showcase their potentialities in each other’s territory. The major challenge facing investors from both sides of the divide is dearth of information on each other’s business environment. This has, over the years, created a condition of uncertainty and misgivings among prospective investors.

As part of the initiatives to contribute to revamping the Nigerian economy, Nigerians under the auspices of Nigerians in Diaspora Organization in Europe (NIDOE), the Russian Chapter in collaboration with Russia-Nigeria Business Council, Institute of African Studies and Russian ministries and agencies have adopted corporate strategies in identifying and wooing potential Russian businesses and industry directors to invest in Nigeria.

By Emmanuel Addeh

Yenagoa — The Nigerian Army at the weekend rounded off its Crocodile Smile II Operation in the Niger Delta with the rehabilitation of the abandoned Oloibiri Oil Well 1 in Ogbia Local Government Area, Bayelsa State, where crude oil was first discovered in the country in 1956.

Shell Darcy, now Shell Petroleum Development Company, (SPDC), had started the drilling of 5,000 barrels per day at the oilfield, but was abandoned after it stopped flowing about two decades ago.

The event which was conducted by 16 Brigade, Yenagoa, led by Brig. Gen Kevin Aligbe, had earlier witnessed the cleaning of major streets in the state capital and donation of hospital equipment to the Federal Medical Centre, Yenagoa.

The Chief of Army Staff (COAS), Lt Gen. Tukur Buratai, who was represented by the Commander, 6 Division of the Nigerian Army, Maj Gen. Enobong Udoh, said the operation was part of the efforts at making sure that the army was ready and fit to respond to any threat, whether economic or criminal.

“The Nigerian army in consonance with the vision of the current Chief of Army staff to have a professionally responsive army in the discharge of its constitutional role continues to conduct these operations and training exercises in order to position itself to be able to respond to the threats that we have across the country.

“There are so many of them: Cattle rustling, kidnapping, cultism, militancy, pipeline vandalism, oil theft and the rest. We had Operation Harbin Kunama in the North West, Egwu eke ( python dance) in the South-east and we have been running operation crocodile smile 11.

“All these operations are conducted to position the Nigerian army so that we can have a conducive environment for business activities and for law-abiding citizens to go around without let or hindrance,” the military chief said.

He said the operations also afford the army the opportunity to move closer to the people and carry out community relations exercise, including the environment where the oil well is located so as to make it viable for tourism and to “keep the bad boys away.”

In his comments , Brig Gen Aligbe, said the job of the military in the region remains to protect critical oil and gas infrastructure in the Niger Delta, ending illegal oil bunkering, sea piracy and sundry crimes.

He said: “We sought permission to touch base in a symbolic manner in Oloibiri Oil Well 1, being the first commercial oil well in this country. What we are doing today will add tourist value to this iconic monument and encourage tourism enthusiasts in the country and outside and make here a destination of first choice.”

Governor Seriake Dickson, who was represented by his deputy, Rear Admiral John Jonah (rtd), noted that the military will continue to soar despite all the distractions and praised them for their resilience under very difficult terrains where they work.

“Tourism is one area that can generate funds. This is an area we are very interested in because it can generate funds. The army has taken the initiative.”

While defending the military on the rumoured deadly injection, he added: “Let me use this time to dispel rumours of (a deadly) vaccination. The Nigerian army as constituted now can never, because I will always speak for them, can never indulge in such a thing. This is not the first time the army is carrying out its medical outreach.

“Let’s not allow some disgruntled elements in our society to tarnish the image of those that are fighting so hard trying to keep the country together and making sure there is peace for businesses to prosper.”

By Alawi Masare

Dar es Salaam — Barrick Gold Corporation has reported a net loss of $11 million in the third quarter after increasing a tax provision related to the “good will” payoff of $300 million agreed with Tanzania.

The mining giant made a net income of $175 million over the same period last year. Barrick produced 1.243 million ounces of gold in the third quarter, at a cost of sales of $820 per ounce compared to 1.381 million ounces, at a cost of sales of $766 per ounce in the prior-year period.

Barrick blamed the decrease in net earnings on the impact of the concentrate export ban by the government and also lower gold production and prices.

The company’s existing tax provision was $128 million but the financial results announced on Wednesday night indicated to have increased by $172 million to $300 million – the amount it agreed would be paid by its subsidiary Acacia to Tanzania as part of the proposed framework reached last week.

Barrick’s move is proof of securing the money due to the government and puts to rest any fear that the funds may not be released. However, the mining company appeared to place a catch on the release of the funds, tying it with Acacia’s business flow and the outcome of talks to lift the ban on concentrate export.

“Given Acacia’s current financial position, these payments would be made over time, using Acacia’s ongoing cash flows. As such, payment would be also conditional on Acacia’s ability to sell doré (gold bars) and concentrate,” Barrick said in its statement.

Shares in Acacia were up 3 per cent to 190.14p on Thursday morning, still down more than two thirds since 1 March when the concentrate ban was imposed by the government to push for negotiations of several tax income and other economic benefit issues.

Barrick’s tax provision announcement drew the now familiar wait and see approach from its subsidiary in London and who will be expected to shoulder part of the cost to pay Tanzania. Barrack owns 63.9 per cent stake in Acacia.

In its rejoinder, Acacia which operates Buzwagi, North Mara and Bulyankulu mines said it does not intend to make any changes to its own provision of $128 million in likely back tax charges as a result of Barrick’s own announcement.

“Once Acacia has received and had the opportunity to assess a detailed proposal, Acacia will also be able to assess the potential impact on Acacia’s historical uncertain tax positions,” the London Stock Exchange-listed company said in its market updates.

Barrack Gold was locked in negotiations with the government for about three months since two presidential committees accused Acacia of cheating in taxes and reportedly operating illegally in Tanzania.

In July this year, Tanzania Revenue Authority (TRA) slapped Acacia with a jaw-dropping $190 billion (Sh418 trillion) in revised taxes, interests, and fines following the committees’ reports.

The two negotiating teams led by the Minister for Justice and Constitutional Affairs Prof Palamagamba Kabudi on the side of Tanzania and Barrick executive chairman John Thornton on the other side, came out last week announcing to have struck a deal.

The Toronto-based company said it will pay the government $300 million as part of the deal, give the government a 16 per cent stake in its mines, and will equally split “economic benefits” from the mining operations.

Under the proposed 50/50 economic benefit sharing, the government’s portion will be delivered in the form of royalties, taxes, and a 16 per cent free carried interest in Acacia’s Tanzanian operations, in line with the country’s new mining law, Barrick noted in continuation of a line that is starkly different from that of the government. Prof Kabudi has proffered that Tanzania’s share will be received after all taxes, royalty and all other payments due are made.

The two parties have created a working group to resolve outstanding tax matters relating to Acacia’s operations even as the London-based firm says it will also push on with the arbitration case it has filed at the international court against Tanzania move to ban concentrate export.

“Barrick and the Government of Tanzania will now work to complete detailed documentation and final agreements for review and approval by Acacia. We expect this work to be completed in the first half of 2018. Barrick has engaged with independent directors of Acacia during this process, and will continue to do so,” Acacia said in the statement.

Chiefs are demanding powers to issue gold mining permits in areas which fall under their jurisdiction as well inclusion in various indigenisation boards.

Speaking at the just ended chiefs’ annual conference in Bulawayo, Chiefs Council leader, Fortune Charumbira said the Mines and Minerals Act should be repealed so that chiefs are also involved in the process of granting gold mining licences to prospective miners within the chiefs’ respective areas.

According to the current Mines and Minerals Act, mining licences are applied for through the Mining Commissioners from the mining districts in which the resource is located.

“As custodians of the land, chiefs are the ones who are supposed to allocate mining claims. We are not happy with the current situation where gold prospectors just invade our areas armed with licences from the ministry of mines without our knowledge. As chiefs, we own that gold and we should be consulted,” said Charumbira.

He also claimed that several gold prospectors were living in constant conflict with the local communities because chiefs were not involved in the issuance of gold claims processes.

Charumbira also demanded the inclusion of chiefs and headmen in indigenisation and economic empowerment boards under the community share ownership trust scheme which was set up by the government through sourcing funds from foreign-owned mining companies operating in various parts of the country.

“Chiefs are left out in community share ownership trust. Only one mining company, Ngezi platinum, has embraced chiefs in this project. We all want our chiefs to be directors of the community share ownership trust scheme. These companies should be forced to accept us as the trustees,” said Charumbira.

Officially opening the chiefs’ indaba on Saturday, President Robert Mugabe promised the chiefs farms and other luxuries, saying the traditional leaders deserved to be pampered with all kinds of niceties because they play a very “important role”.

The president also assured the chiefs that within a fortnight the chiefs will take delivery of brand new Isuzu Double Cab vehicles.

“If we promise people, we always make sure that the promises are fulfilled and in two week’s time, the chiefs will be coming to get their vehicles in Harare. (Kasukuwere) make sure these chiefs are given their cars. These cars should be quality cars that are in good condition so that they carry out their duties,” said Mugabe amid unrestrained cheers from the chiefs and their spouses.

By Tsegay Hagos

Small and Medium Enterprises are contributing to the import substitution efforts.

Obviously, most sophisticated private industries which sell their brand products in almost all parts of the globe had once been confined to small manufacturing sheds and at a local market.

The silver bullet to the success of these businesses might be a mix of two factors – the hard work of the individuals or the team that has started the businesses and the enabling ground their governments created. For instance, governments that have paid due attention to Small and Medium Scale Enterprises (MSEs) have championed in nurturing private innovations to a high-tech based industrialization.

The government of Ethiopia has recognized the role of MSEs in the socio-economic development of the society. Hence, due to its increased supports to the Enterprises, a number of MSEs have transformed themselves to large scale industries.

Availing the required finance to entrepreneurs and innovators is the pillar to the translation of the innovations from a business proposal to real business activities.

Ethiopia, with its 70 percent young demographic base, has bright ambitions of becoming stable and strong nation in Africa both economically and politically. Its huge youth population is, therefore, the main driver of the attainment of the ambition. That is why it has established microfinance institutions which enable the youth businesses to flex their muscles financially.

The MSEs and the financial institutions have also been made to feed on one another.

Federal Micro and Small Development Enterprises Agency (FMESDA) as well as many other micro-finance institutions are supporting the youth entrepreneurship to come to fruition.

The loan and saving services are benefiting the youth, including women, who have limited financial access. These segments of the society have in turn secured jobs to themselves and other fellow citizens as well.

Owing to this, the youth have been engaging in a range of sectors such as manufacturing, service, and industry. And the amount of finance needed to set up the enterprises also varies.

Micro scale business enterprises in the industrial sector–manufacturing, construction and mining–comprise up to five persons including the owner and/or has total asset not exceeding Birr 100,000.

Similarly, if the enterprise operates in the service sector–retailer, transport, hotel, tourism, Information Communication Technology (ICT) and maintenance–five persons can establish it while the asset cannot exceed 50,000 Birr. If it operates in the industrial sector, it can employ from 6 to 30 persons or can have a paid-up capital or total asset not exceeding 1.5 million Birr.

A small service sector enterprise is one that has between 6 and 30 persons and or has total asset or paid-up capital of 500,000 Birr.

Nowadays, the number of MSEs is increasing at a faster pace in Ethiopia. When we see the production of MSEs in Addis Ababa, it is accounted for over 15.2 % of Ethiopia’s total GTP employment opportunity plan in 2015/16 fiscal year, FMESDA discloses.

The unbearable collateral requirement of private and state banks used to discourage small business from thriving. But, the loaning systems of the financial institutions have helped to bridge this gap.

Numerous SMEs which operate throughout the country have created over 1.7 million jobs to citizens, discloses Abozenech Negash, Deputy Public Relations Coordination Office with the Federal Urban Job Creation and Food Security Agency.

The institutions played a huge role in curbing poverty and unemployment says Mesfin Fituma, Business Development Head of Addis Credit and Saving Institution (ADCSI). “Quite many of the operators have transformed both their enterprises and lives.”

The linkage between SMEs and micro-finance institutions has also grown meaningfully. Many of them have built good reputations in repaying their debts and growing their savings, he adds.

“For instance, 250,000 customers have saved seven billion Birr. This saving in turn has also gone to the enterprises in the form of loan.”

In a nutshell, the micro-finance institutions have been playing massive roles in baking the youths to realize their vision. MSEs have been proven to be very important in many ways like promoting youth innovation, creating employment, diversifying businesses and increasing youth income as well as in fostering asset creation, import substitution, among others, he explains.

“We have understood that our clients are changing their livelihood. We always inspect and supervise micro and small enterprises. Based on that, most of them have achieved great success; even there are MSEs which have transformed their business into industry level. Not only this, there are enterprises that employs 50-60 people,” the manager discloses.

To back his assertion, Mesfin indicates as quite many of the MSEs have already started exporting their products. “Especially those who involved in leather and leather products have penetrated the international market. There are also people who bake Injera (staple food made from Teff flour.) and export it to the Ethiopian Diaspora communities in North American and European countries.”

In addition, Saudi-repatriates have also created their own business in their country.

Besides exporting products, enterprises are enjoying the local market opportunity.

The construction sector’s huge appetite has become the largest local market opportunity to the enterprises, he points out, mentioning the massive construction of industrial parks, condominium houses as well as mega projects’ undertakings.

As a result, enterprises, which previously took small amount of loans, have dramatically scaled up their loan demands. “We are striving to satisfy their growing demands.”

Amara Credit and Saving Institution (ACSI), General Manager Mekonnen Yelewumwosen for his part notes as the micro-finance institutions have become reliable financial source to MSEs which operate in the areas of agriculture and trade activities.

ACSI was founded in 2006 to create financial access to urban and rural low income society, he says. “The enterprises’ growth has increased the financial capacity of our institution too.”

Various segments of the society such as the youth, women, elderly people and people with disabilities have got the opportunity to run their own businesses. Beekeeping, animal fattening, poultry production, and retail businesses are some of the areas the MSEs operators have engaged, Mesfin adds.

The General Manager indicates that ACSI has enhanced the number of its clients to five million. Customers have also saved 350 million Birr only in 2016.

Apart from providing loan and saving services, ACSI also consults its customers on the feasibility of their business plans, he adds.

“We often go to the business areas and witness their day-to-day activities first hand.”

Regarding the major challenges facing the micro-finance institutions, he says that some operators fail to repay loans timely. On top of this, most micro-finance institutions are subjected to extra expenses for office rent.

Having realized this, state banks and Ethiopian Microfinance Institutions (AEMFI) are applying various endeavors.

The government is also providing every necessary support to step up the efforts of micro-finance institutions.

The government envisions increasing the accessibility of micro- finance institution during the second growth and transformation plan (GTP II). During this period, the institutions attempt to reach 50 percent of the rural community. By so doing, the rural community will have reliable access to finance to run on-farm and off-farm business. Side by side with this, the effort will help the same community to nurture its culture of saving, which in turn will put its impact on the domestic saving at national level.

Econet Wireless’ mobile money platform, EcoCash has launched a ‘Swipe into EcoCash’ service that enables customers whose banks have not integrated with EcoCash to be able to swipe their monies from their bank account into their EcoCash accounts. All ZimSwitch enabled cards can access the facility. At present, only five banks are yet to connect on EcoCash platform.

The service will be available at selected merchants as well as agents and customers can swipe up to $2 000 per transaction. However, the number of swipes and limits depend on individual bank’s terms and conditions. EcoCash general manager Natalie Jabangwe Morris, said this was part of the firm’s efforts to enhance inter-operability and convenience at a time the country is facing cash shortages and relying on electronic platforms for transacting.

“Our idea is to go beyond mobile money. This is about improving on payment systems,” she said during the launch of the service today. As at June 30, 2017 an estimated 6, 8 million customers were active on the EcoCash platform as it remains the largest mobile money service provider. The mobile money platform is now driving an estimated 90 percent of mobile money in the country ahead competition from Telecel and NetOne’s mobile money platforms.

Reserve Bank of Zimbabwe (RBZ) national payments systems deputy director Josphat Mutepfa, who officially launched the swipe service said this a commendable innovation at a time consumers seek convenience. He, however, implored on the financial services sector to be on the lookout for risks associated with digital payment systems as customers also need security.

“This will bring convenience to the banking community. Over the years, we have witnessed collaboration between banks and mobile networks which has resulted improved inter-operability,” he said. A recent report by the Posts and Telecommunications Regulatory Authority of Zimbabwe (Potraz), outlining the industry’s performance in the second quarter of 2017, gave Ecocash’s market share (as at the end of June 2017) at 98,7 percent, confirming its leadership position in the mobile money sector. Ecocash is managed by Econet Wireless’ Cassava business unit, and has been leading the mobile money market since its inception in 2011.

The Potraz report said $836 million worth of transactions had been conducted via mobile money in the second quarter of this year alone (from April to June 2017). The launch of Ecocash Swipe is expected to further strengthen Ecocash’s leading market position by broadening the base of customers that can use the service through the integration with ZimSwitch. Mr Mutepfa however issued a word of caution to all financial institutions and service providers regarding security of transactions and robustness of their platforms.

“The Issues of risk and security must be diligently addressed and managed by all banks, operators and payment systems suppliers”, he said, stressing the importance of continuous investment and on-going co-operation between the financial services players and the Central Bank, which supervises all banks and financial technology (fintech) companies and solution providers in the country.

By Mnaku Mbani

Dar es Salaam — Tanzania’s public debt rose by 15 per cent during the 2016/17 financial year even as the government grapples with own sources of development financing amid growing unpredictability of funds disbursements from development partners.

Latest figures show that the debt had reached Sh53.3 trillion (about $24.514 billion) during the financial year that ended on June 30, 2017.

Among the mega projects which President John Magufuli’s administration is currently executing are the standard gauge railway that will connect Tanzania to the landlocked neighbouring countries of the Democratic Republic of Congo, Zambia, Rwanda, Burundi and Uganda.

Construction of the first phase of the railway project – a 205-kilometre stretch from Dar es Salaam on the Indian Ocean coast to Morogoro – is already ongoing, whereby part of the funding was sourced as a loan from the Turkish state-owned Export Credit Bank of Turkey (Exim Bank).

In a related development, the government announced earlier this month that a Turkish firm, Yapi Merkezi – which is building the first phase Dar es Salaam and Morogoro stretch – has also won the tender to construct the second phase connecting Morogoro to Makutupora in Dodoma region. The contract is worth $1.92 billion.

Alongside the standard gauge railway project, the government is also implementing road projects in other parts of the country. One that readily comes to mind is the much-anticipated Ubungo Interchange which is being constructed using funds from local and foreign sources.

Then again, the government has been purchasing airplanes for the national flag carrier Air Tanzania Company Limited (ATCL) even as it continues to implement a number of other socio-economic development projects across the country.

Put in perspective, the Sh53.3 trillion national debt is roughly the equivalent of half the country’s gross domestic product (GDP), which hit the Sh103.7 trillion mark in 2016.

That aside, the debt growth rate for 2016/17 was the lowest to have been registered in recent years. During the 2015/16 financial year, the debt jumped by 20 per cent, reaching Sh46 trillion in June 2016 – up from Sh38.2 trillion as of June 2015.

In June this year, the central government borrowed a total of $505.0 million from Switzerland’s Credit Suisse.

The central government debt accounted for the largest share, reaching $14.948 billion as of June 2017.

The country report of the International Monetary Fund (IMF) in June revealed that the debt sustainability analysis (DSA) conducted in June 2016 suggested that Tanzania could afford a higher fiscal deficit of up to 4.5 per cent of Gross Domestic Product (GDP) for a few years – and still maintain a low risk of debt distress.

The IMF analysis indicated that all the three debt stock indicators (relative-to-GDP, exports, and revenue) increased slightly in the medium-term before declining to below initial levels by the end of the projection period – and remained well below their policy-dependent thresholds under the baseline and all shock scenarios.

The debt service-to-revenue ratio, however, increased over the medium-term and remained slightly above initial levels at the end of the projection period.

“Under the most extreme stress test, external debt service as a ratio-to-revenue slightly breached its threshold in 2020/23 in the event of a one-time 30 per cent depreciation in the nominal exchange rate,” the IMF states in its assessment report.

The Fund also said that, in such a borderline case, the results show that – under this approach – Tanzania’s risk of debt distress remains low for all external debt indicators.

A Bank of Tanzania (BOT) analysis conducted in late-2016 revealed that matured external debt repayment using domestic revenue had reached 11.5 per cent, against the desired 20 per cent. External debt repayment using exports was found to stand at 7.8 per cent – also against the desired level of 20 per cent.

The central bank noted that a large portion of Tanzania’s debt is payable under ‘long term maturity’ agreements – with the average time to maturity set at 11.9 years.

This means that effects of debt repayment on the government budget are ‘low refinance risk.’ Also, according to the ‘Economic Development in Africa Report-2016’ by the United Nations Conference on Trade and Development (Unctad), a higher level of domestic debt in Tanzania is likely to be sustained without compromising the country’s economic growth.

President Muhammadu Buhari on Tuesday in Niamey, Niger, urged members of the Economic Community of West African States (ECOWAS) to tread carefully in pushing for a single currency in the sub-region by 2020, drawing attention to the challenges faced by the European Union (EU) in realising the same goal.

In his speech at the fourth meeting of the Presidential Task Force on the ECOWAS Currency Programme, President Buhari said the necessary economic fundamentals among countries continue to differ over the years, making it more difficult to pull through with the project by 2020.

“Nigeria advises that we proceed cautiously with the integration agenda, taking into consideration the above concerns and the lessons currently unfolding in the EU. To that end, Nigeria will caution against any position that pushes for a fast-track approach to monetary union, while neglecting fundamentals and other pertinent issues,” he said.

President Buhari, according to Premium Times, noted that some of the obstacles to realising the roadmap for the implementation of a single currency include diverse and uncertain macro-economic fundamentals of many countries, unrealistic inflation targeting based on flexible exchange rate regime and inconsistency with the African Monetary Co-operation Programme.

The president said domestic issues in ECOWAS member countries relating to their constitutions and dependence on aid continue to affect the framework for implementing the single currency in the sub-region.

He said: “Although the ECOWAS Commission has anchored its pursuit of the new impetus to monetary integration on “the information presented to the Heads of State which were the basis for their recommendations,” we are concerned that we have not properly articulated and analysed a comprehensive picture of the state of preparedness of individual countries for monetary integration in ECOWAS by 2020.

“In previous meetings, we had specifically raised observations on the state of preparedness of the member states, the credibility of the union if anchored on watered down criteria, and the continuing disparities between macroeconomic conditions in ECOWAS countries, amongst others. And I would like to reiterate this concerns.”

The president told the Heads of State that the conditions that pushed Nigeria into withdrawing from the process in the past had not changed.

“Nigeria had earlier withdrawn from the process because its key questions and concerns were ignored and till date, none of the issues has come up as an agenda issue to be considered by the taskforce. Consequently, the Roadmap which did not involve widespread consultation with national stakeholders is not sufficiently inclusive,” he added.

Going forward with the project, President Buhari suggested a thorough review of the convergence roadmap and the constitution of an expert committee on each of the subject areas to come up with acceptable time frame, defined cost and funding sources identified.

“This should also consider stakeholders such as the Ministries of Finance, customs, parliamentary groups, tax authorities, immigration authorities to achieve comprehensiveness,” he said.

The president said there should be a push towards ratification and domestication of legal instruments and related protocols, while fiscal, trade and monetary policies and statistical systems, which had not gone far, could be harmonised.

Buhari noted that the West African Economic and Monetary Union, UEMOA, countries should make a presentation on a clear roadmap towards delinking from the French Treasury.

He also advised an examination of the African Union position on the same issue, which the African Central Bank Governors, in line with the African Union programme of monetary convergence, recommended a convergence deadline of 2034 for the establishment of Regional Central Banks in all sub-regions.

In his remarks, the President of the ECOWAS Commission, Marcel Alain de Souza, said the single currency for the West African sub-region was a laudable and historical project, but regretted that it had taken too long to be actualised.

The president said the creation of a Central Bank for the West Coast would accelerate the process.

He noted that Nigeria constitutes more than 70 per cent of the GDP of the West African region, with a population of 180 million, and would play a significant role in facilitating the process of realising a single currency for the sub-region.