TANZANIA CONSUMER ADVOCACY SOCIETY

Barclays increases charges on basic accounts

2011-12-09T04:42:00.000-08:00

By James Hall, 6:26, Thursday 8 December 2011 Yahoo News
Barclays Bank (NYSE: BCS-PA - news) has trebled the potential fines that around a million of its poorest customers will pay if they try to withdraw money they do not have.

Under changes that will come into force next March, holders of Barclays’ most basic Cash Card bank accounts will be charged up to £24 a day if they have insufficient funds to cover direct debit withdrawals from their account. The maximum daily fine is currently £8.

Consumer groups said that the new rules could put people off opening bank accounts and mark a “backward step” for hard-pressed savers.

The bank’s Cash Card account is a no-frills account designed for savers on low incomes. The accounts do not have an overdraft facility. Although Barclays does not disclose how many Cash Card customers it has, industry experts estimate the figure to be around 1 million.

Under current rules, a customer is charged £8 a day if there are insufficient funds to cover direct debit payments going out of his or her account. This £8 is the daily maximum fine, no matter how many direct debit withdrawal attempts are made on the account.

From the spring, Barclays (LSE: BARC.L - news) will lift the cap so that customers are charged £8 every time that a withdrawal is attempted, up to a maximum of three times. This takes the total possible daily fine to £24.

In other changes, Barclays will stop sending out monthly paper statements and replace them with statements four times a year. However at the same time it will stop charging for text message alerts telling customers when they are running out of money. At the moment these cost £2 a month.

Oliver Morgans, financial services expert at Consumer Focus, the watchdog, said that the changes are a “backward step” that could increase financial exclusion among the poorest people in society.

“The Government already faces an uphill struggle to persuade customers to sign up to a bank account when many people distrust banks and the charges they make. These changes will make that hill even harder to climb,” said Mr Morgans.
“Living without a bank account can make it hard to live in the twenty-first century and can create financial penalties for the households who can least afford it,” he said.
Consumer Focus said that banks need to introduce minimum standards on their basic accounts to stop the UK’s poorest savers being hit by further changes. Recently Royal Bank of Scotland changed its policy so that its 1.1 million basic bank account customers can only withdraw cash at RBS’s cashpoints and not those of other banks.
A Barclays spokesman said that the changes have been made so that running the accounts remain “financially sustainable” from a business point of view.
The spokesman said: “Barclays Cash Card account is and remains the leading basic bank account in the market across the range of features it offers and levels of charging. We want to ensure this product remains financially sustainable so that we can continue to help those at risk of financial exclusion gain access to banking.”
He added that the changes it is making are based on “solid research of our customer base and Citizens Advice Bureau clients”.

More finance stories from telegraph.co.uk

19th CI WORLD CONGRESS 3rd-6th MAY, 2011- HONG KONG

2011-06-22T12:16:00.000-07:00

TCAS’S APPRECIATION FOR RECEIVED SPONSORSHIP TO ATTEND

I Bernard Elia Kihiyo, the Executive Director of Tanzania Consumer Advocacy Society (TCAS); would like to take this opportunity to sincerely thank the CI, Finnish Ministry of Foreign Affairs and the Hong Kong Consumer Council (HKCC) for paving the way for my organization to attend the 19th CI World Congress (CIWC) in Hong Kong. Personally I felt honored to have been selected for this sponsorship and profoundly humbled to meet Consumer leaders from over 700 delegates from more than 60 countries.

The generosity of the host (HKCC) and the dedication to train, support and empower professionals in the field of “Empowering Tomorrow’s Consumers’’ by all facilitators were beyond compare, to me the experience at CIWC is fantastic!, so powerful, so growthful in-me, in a way it is indescribable and hard to compare to other experiences I had on consumer movement since TCAS was established in July.2007.

For instance I attended various hot topics/fringe sessions/key addresses/ plenary/sub plenary; and I learned so much from observing and being a part of a wide variety of discussions as per below;-

1. Empowering consumers in the green economy
2. Sustainable Consumption - Time for action
3. National campaigning workshop on junk food
4. Should all roads lead to Rio 2012?
5. Consumer rights and corporate responsibility
6. Safe and nutritious food for all
7. Food safety: defining our campaign targets
8. The role of standards in providing consumer protection
9. How ISO 26000 can be used by consumer groups
10. The fight for fair financial services
11. Consumer over-indebtedness: the search for effective solutions
12. Consumer rights in the digital world: privacy, access and activism
13. CIWC Gala dinner

Since this was my first CIWC I thought I didn’t know more of what to expect, but maybe I should have guessed because CIWC defies expectation and that is “Empowering Tomorrow’s Consumers’’ and truly, It proved to be a learning experience I could have never predicted, with this I can proudly say I have been empowered hence I will transform/share the same to TCAS’s staff, put the same into day to day engagements and campaigns; definitely tomorrow consumers in Tanzania will be empowered too.

Throughout the CIWC-Hong Kong I met unique individuals from all over the world with various perspectives and ideas different than my own, pushing me to think and feel in ways unforeseen. For instance the unforgotten keynote addresses from the former CI’s president Samuel Ochieng, the current CI President Jim Guest, and CEO of Consumers Union of USA, M/s Connie Lau the CEO of Hong Kong Consumer Council (HKCC), Acting Director General – M/S Helen McCallum, speech by Anthony Cheung - HKCC Chairman, speech by Chief Executive Hon Donald Tsang of HK SAR, the video address by the French Finance Minister and chair of the G20 finance ministers in 2011, Christine Lagarde, Susan L. Rutledge-Consumer Protection WB, Norma McCormick, Chair of COPOLCO, Gerd Leonhard, CEO of The Futures Agency, Former CI President Anwar Fazal, and many others the list is too long.

The price of the CIWC is quantifiable, yet my time in Hong Kong could not be so well defined, I believe the value is beyond the time and the dollars that were typically associated with the Congress. The former CI President Anwar Fazal said "train new people or you will have no future," Thank you for sharing your experience at Congress; this does not go unnoticed or unappreciated; because of this opportunity I will look back upon my adulthood as an old man grateful to you for making me the person I wanted to become a better consumer activist in Tanzania and the world at large.

While CI, Consumers Union of USA, and CHOICE -Australia are 50years and beyond, SNNC – Sweden is 100 years old while TCAS is approaching 5 years old in 12th.July.2011 in TCAS, we still have a feeling that we will never get these types of opportunity in Tanzania, Africa, Europe, America or elsewhere than under the parasol of CI; please accept our utmost gratitude for the opportunity given and for accepting TCAS into CI affiliate membership; TCAS management is working so hard to qualify for a full CI’s membership.

Kindly continue to be essential partners and supporters for TCAS for years to come hopeful, ‘’Tanzania Consumer Advocacy Society’’ will celebrate 50 years in consumer movement in year 2057.

Regards
Bernard E. Kihiyo

TANZANIA CONSUMER ADVOCACY SOCIETY: £1 Stores Can Cost You More

2011-04-24T02:34:00.000-07:00

TANZANIA CONSUMER ADVOCACY SOCIETY: £1 Stores Can Cost You More

£1 Stores Can Cost You More

2011-04-24T02:27:00.000-07:00

By; Amanda Hall-Davis, 14:14, Thursday 21 April 2011
Yahoo News

More than 700 £1 shops have appeared on the high streets in the UK, but are you really getting value for your coin? These shops are getting plenty of publicity: High-profile footballers like Frank Lampard have been spotted browsing £1 shop aisles; Wag Alex Gerrard wants to work in one and the Feltham branch even has an alcohol licence.

But are consumers just being mislead with inferior products and poor-quality imported brands? Are they even getting value for money? A look at current prices shows a string of products — including Carex hand wash and Radox shower gel — are cheaper at Tescos than Poundland, thanks to discounts at the supermarket. While that's temporary reduction at Tesco, supermarkets always have something discount — and you can check offers online.

So we took 10 top everyday grocery products and compared their value (on both quality and price) in the £1 shops to the major high-street supermarkets.

[See also 17 things you should never spend more than £1 on]

£1 shop price comparisons

The price of groceries is soaring at an alarming pace, and this may be part of what's sending consumers to discount stores. As pound stores continue to expand their selection of goods, battle lines are drawn against the high street supermarkets.

Shoppers at Poundland noted good bargains on items like washing powder and branded shampoo, but many were unconvinced about buying fresh food, produce and clothing.

We compared 10 everyday grocery items in both branded and non-branded products at Poundland against a major high street supermarket. We also compared the quantity, the branding, the sourcing and use-by dates for products at each store.

Selection

In shopping at Poundland for staple products like milk, eggs, bacon, bread and cheese, we found selection to be a problem; it was limited to only two choices of semi-skimmed and full fat two litre milk, compared with 49 varieties in the major supermarket.

In Poundland, one non-branded type of egg was sold as nine in a box compared with 21 varieties and the minimum being six in a box at the supermarket. In the supermarket aisles, there was a selection of 38 types of bacon whereas only one type was on the shelves in Poundland - although it cost only about third of what you would pay at the supermarket.

Similarly, more than 300 types of cheese and 200 kinds of bread are on sale in the supermarket. There is one type on offer in Poundland. Sugar and tea bags come in one variety at Poundland - although the teabags are branded. On the supermarket shelves there are 44 types of sugar and more than 70 choices of teabags.

Any major supermarket offers much more variety than Poundland; however, this level of selection may be more than most people need.

[See also: 10 ways to save at the supermarket]

Branding

In addition, all the staple products in Poundland come from lesser-known UK — you won't see many of the major brands that are advertised on TV or found in the supermarket.

Use-by dates

In addition to limited variety, the use by dates were slightly shorter at Poundland, although the goods were fresh and the eggs marked with the British Lion Quality stamp, ensuring the highest standards of food safety. Because Poundland tends to put more emphasis on packaged goods, these dates are less of an issue for shoppers.

Price

Assuming that shoppers bought weekly staple items including two litres of milk, one box of eggs, bacon, bread, cheese and teabags, the total difference in price for staple items between the average supermarket and Poundland was around £3.77.

This means that if you were to swap your weekly supermarket staples for Poundland goods you would save more than £190 a year.

Household products from toilet rolls, toothpaste and washing powder were comparable, although the branded toothpaste was over twice the price in the major supermarket.

Better value?

If you aren't too picky about what you buy, Poundland can definitely provide value on grocery items. This comes at the cost of selection and branding, but for budget shoppers who are looking to buy their staples at the lowest possible price, this should not be an issue, as items at store were still of comparable quality and freshness to supermarket items.

David Coxon, trading director of Poundland said that the store "offers its customers value for just £1, on over 10,000 products", including everyday essentials and seasonal products, along with some top brands.

He also noted that Poundland would be opening at least 50 more stores in 2011 to 2012. This suggests that consumers are finding value at these stores as well.

The bottom line

Don't just assume that prices are cheaper at the pound stores. In some cases, it could pay to shop around for supermarket reductions and special offers to compare with pound store items — particularly if you are looking for a specific product or brand.

Pound stores may be a new addition to a budget-conscious shopper's arsenal, but not every item was cheaper or of comparable quality to what you would find at a supermarket, so you still need to keep your wits about you.

Source: http://uk.finance.yahoo.com/news/-1-stores-cost-yahoofinanceuk-1810927014.html

Petrol prices surpass £6 per gallon

2011-03-09T06:46:00.000-08:00

YAHOO NEWS

Average petrol prices have gone past the 132p a litre mark, meaning that for the first time the cost has reached £6 a gallon in UK, the AA president Edmund King said.

The average price of petrol at the pumps is now 132.12p a litre, while diesel has also hit a new record at 137.92p a litre. The cost of petrol has risen 6.93p a litre since the start of the year, and 1.68p a litre in the past week, said the AA.

A year ago, a litre of petrol on average cost 114.30p and diesel was 115.31p. For a family with two petrol cars, the monthly cost of fuel has risen from £242.70 in March 2010 to £280.54 now. In the same period, the price of oil has risen from around 85 US dollars (£52.4) a barrel to 113 US dollars (£69.7).

AA president Edmund King said: "£6 a gallon is not just another milestone along the road to higher fuel prices; it marks the point at which the wheels start to come off mobility in 21st-century UK.”Lower-income drivers, poorer rural residents, volunteer drivers, youngsters looking to their first jobs are some of the vulnerable groups struggling to stay on the road.

"The Government must act urgently to reduce the burden of high fuel duty and VAT. In the meantime, drivers are going to have to manage as best as they can, by cutting out journeys, driving more economically and hoping that a stronger pound will cushion some of the blow.

"But these high prices are already leaving casualties among drivers, consumers and business."

Source:
http://uk.news.yahoo.com/21/20110309/tuk-petrol-prices-surpass-6-per-gallon-6323e80.html

How to Protect Yourself from Unwanted Phone Calls

2011-02-05T02:33:00.000-08:00

04th.Feb.2011, 04:27 pm

Yahoo! News

Unwanted phone calls or cold calls are a pain and one of the most despised marketing tactics. Under government regulation, it is illegal for a UK company to call any individual who has indicated that they don't want the calls.

On 1 February, new rules by Ofcom came into force to prevent consumers being harassed by repeated silent calls from the same company. To protect yourself even more, here are six practical measures you can take to prevent both silent and nuisance calls.

1) Get removed from sales call lists
This may seem the obvious way to prevent you from being contacted by cowboy companies, but when an unwanted caller contacts you, don't immediately say 'sorry, I'm not interested' and then slam the phone down. Remember that the first and last thing you should firmly ask them is to be removed from the company's sales call list.

Under the Data Protection Act, a company is by law prohibited from calling you again for marketing purposes if you've made a request not to be called, even if you're one of their customers.

2) Join the Telephone Preference Service
British communications regulator Ofcom advises that a victim of unsolicited and silent calls should register with the Telephone Preference Service. This is the official central opt-out service, which means it is illegal for unsolicited sales and telemarketing companies to call you once you're registered. The service covers landlines as well as mobile telephone numbers.

Companies have a responsibility to check whether the people on their call lists are signed up to the TPS. According to research, consumer watchdog, Which? found that signing up for free to the TPS cuts the cold calls people receive on average by one third.

The Telephone Preference Service recommends that before registering it is worth reflecting on the fact that doing so may well prevent you from receiving relevant and worthwhile information. So make sure you contact the companies who you do not wish to hear from and ask them to remove your details from their call lists. However, the service doesn't cover companies contacting you for market research purposes, or not-for-profit organisations, like charities or political parties.

Click here to register with the Telephone Preference Service, or phone 0845 0700707. It takes about 28 days after registering for all calls to be stopped. The service is completely free so if a company ever tries to scam you by making you pay for this service, refuse and inform the TPS.

3) Make your telephone number ex-directory
Companies may add phone numbers that are publicly listed in the phone book or listed online to their call lists. This is the easiest way for them to find potential customers and target their annoying sales calls. By getting your number excluded from these directories, rogue marketing companies will find it more difficult to obtain your details.

4) Make a formal complaint
When it's absolutely necessary, complain to Ofcom via their online complaints form or by phone on 0300 123 3000. Report the name and number of the company that is making the calls, plus any other details you may have (including how many times you have been called by the same number and over what period of time). If you are unable to identify the caller you should contact your phone company which can trace the caller.

Ofcom continually monitors complaints about silent calls, and has the power to investigate any company which it believes may not be complying with its guidelines. Ofcom can fine companies that are found to be leaving silent and abandoned calls. For example, one of the worst silent call offenders, Barclaycard, was fined a maximum penalty of £50,000.

As of 1 February, Ofcom said it intended to use the full extent of the new financial penalty of £2 million on a company responsible for silent calls. Ofcom's chief executive, Ed Richards, warned: "Silent and abandoned calls can cause significant consumer harm. Ofcom has given sufficient warnings to companies about silent calls and is ready to take appropriate action against those companies which continue to break the rules."

You can also report problem calls, such as silent calls, to your phone provider which is responsible for tackling them. Most phone companies have a nuisance or malicious calls team, who will be able to give you advice on what to do.

Report TPS rule breaches to the TPS, who will contact the company and pass complaints to the Information Commissioner's Office (ICO), which can take action against repeat offenders.

5) Blocking and screening calls
Phone companies can offer their customers a variety of services such as call blocking and anonymous call rejection to help them deal with unwanted calls. Contact your provider to subscribe to a call barring service for unwanted phone calls. However, you may be charged for using this service.

Many cold calls come from abroad, so unless you need to receive international calls, ask your phone provider to block calls from international numbers. You can also block calls from withheld numbers, though this may prevent some calls you want to receive, such as a friend or relative calling you from their workplace on a withheld number.

If you have caller display and an answer phone, consider only answering calls from numbers you recognise. Legitimate callers are likely to leave you a message.

There are also call screening devices you can invest in, for example Truecall (as seen on 'Dragon's Den') is a £99 unit designed to reduce the number of nuisance and telemarketing calls that you receive. It plugs into your regular home phone, and is able to create lists of welcome and unwelcome callers.

6) Be sparing with your personal details
Become a proactive consumer and carefully manage the way you distribute your personal information. Be wary of how much information you give out during consumer transactions, and read the privacy policies of each company or organisation you deal with. Inform companies that you do not want your personal information distributed. There are certain companies which gather personal information for databases and sell them onto a third party for purposes of B2B data, mailing lists and sales leads for marketing purposes.

Opt out of as many lists as you can, including those companies you deal with on a frequent basis.

Written by Gaby Leslie

Source: http://uk.news.yahoo.com/38/20110204/ttc-how-to-protect-yourself-from-unwante-f0c422d.html

What is the situation in Tanzania - Your comment Please info@tcas-tz.org

Do Banks Routinely Take Unfair Advantage of Their Clients’ Ignorance?

2011-01-19T04:42:00.000-08:00

Written by Admin
The Business Times: Friday, 24 December 2010 06:23

CONSUMERS in the financial sector can only get their own voice and protection against abuse from product-and-service providers in the sector if the Government will suitably amend the Bank of Tanzania Act 2003, which established the central bank (BoT), the Tanzania Consumer Advocacy Society Society (TCAS) has observed.

Speaking to Business Times through wire communication this week, the Society's executive director, Bernard Kihiyo, said there is a real need to amend the Act. This is with a view to making clear the rights and responsibilities of banks – and also the rights and responsibilities of consumers of financial products and services.

"This means that every person should get his right, and whenever a problem arises we would be able to monitor where and who is responsible," Kihiyo said.

Noting that “there are a number of cases of violation that are done by commercial banks against their customers, mainly in on-line banking,” Kihiyo said this was in large measure due to consumers signing contracts without having full knowledge of their implications.

Asked if a consumer can take legal action against a bank for violation of his rights, Kihiyo said "it depends on the line of violation; it may be something to do with transfer of money – may be money has been transacted without the customer's authority – or a violation which happens in the area of loans..."

Speaking on the matter, the chief executive officer of Twiga Bancorp, Hussein Mbululo, said “there is a need to look at this issue of violation of consumer rights because they are many (such violations). Consumer organizations overseas know about their rights, and they protect their people well. I do not know much about the BoT Act (2003); but, once I have gone through it. I will be able to point out the problems in it. ”

All that notwithstanding, Mbululo mentioned some of the challenges that consumers are faced with include unilateral and arbitrary changes in interest rates; high bank charges, service charges, funds transfer etc without prior knowledge or acquiescence of account holders!

James Guest is the president and CEO of Consumers Union of US Inc, the vice-president for Consumer Organizations in G-20 countries – and also Consumers International (CI). Speaking to Business Times on the issue, Guest said there is a need of commitment from the most powerful nations in the world to protect citizens from abusive financial services and other industry malpractices.

"The global nature of banking means that countries around the world are now facing the same challenges. It is common sense that they work together to develop solutions," he said.

In the event, CI urgently wants to see the establishment of an Experts Group on Consumer Financial Protection which would report to the G20 Summit in 2011.

This would be a first step to ensuring that consumers from both developed and developing nations have access to stable, fair and competitive financial services. Samuel Ochieng, the CEO for CIN-Kenya says "getting this right is not only vital to consumers, but also to the ongoing stability of the world economy."

In that regard, Ochieng says “Consumers International – which represents 220 consumer organisations in 115 countries – is urgently calling for the needs of everyday consumer of financial services to be pushed to the top of the agenda.”

Furthermore, “poor financial consumer protection – as exemplified by US sub-prime mortgages – was a key catalyst for the financial crisis... “The interconnected nature of global banking then spread the crisis rapidly from country to country, threatening livelihoods, savings and social stability.”

According to Ricardo Nasio, president of ProConsumer in Argentina, said people around the world will live with the consequences for years to come. "For many consumer organisations, the financial crisis highlighted what is an ongoing emergency in financial services. Consumers International members in large and small, rich and poor countries are dealing with complaints about financial products and services every day...

"And, each year, the global economy creates up to 150 million new consumers of financial services, many of whom are in countries where consumer protection and financial literacy are woefully inadequate," Nasio noted. “Last month, the G-20 finance ministers and central bank governors issued a statement detailing the progress they have made in finding “policies conducive to reducing excessive imbalances and maintaining current account imbalances at sustainable levels,” Nick Stace, CEO for Choice of Australia, says.

“This is, of course, important; but, once again, there is barely a mention of the consumer – a crucial element that remains conspicuous by its absence from these international discussions.”

Seasonal Greetings from TCAS - 2011 Thank You for Your Support

2010-12-24T06:36:00.000-08:00

It’s the holiday season—the time of year when we count our blessings and think about helping consumers whose rights had been violated. For those of us in the nonprofit organizations, helping others is not a once a year phenomenon—it is the heart of the work we do every day of the year.

Even in these difficult economic times, we have much to be thankful for. We are thankful we get to do meaningful work that helps make our community a better place to live, businesses to strive and consumers to get better value to money spent on goods and services.

At Tanzania Consumer Advocacy Society (TCAS), we are proud to work with you for fair and equitable Tanzania and the world at large. It is enormously gratifying to know that through our consumer public education campaigns, one-to-one advisory service, web resources and publications, we are partnering with you to make a real difference at the community, national and international level.

If you’ve supported or attended one of program, received direct assistance from one of our staff, or visited our offices or just been part of our supporter in year 2010, we want to take this opportunity to thank you. Thank you for all you did to make your communities and our world a better place live. Next year-2011, we plan to continue and expand our work to encourage and support consumer advocacy by individuals, nonprofit organizations, the foundations, government agencies and development partners. We hope you will continue to be our partner in this work.

This past year, TCAS expanded its work across different sectors and activities as consumers issues are cross cutting by nature, while continuing to work intensively with groups working for improved public education, legal reform, consumer’s rights, environmental protection, financial education, competition and standards issues and we hosted on other issues which were of critical importance to social and economic justice to consumers.

Our special thanks for year 2010 go to;-

1. Our esteemed members and volunteers under VOICE - TZ

2. Anne Fransen Fund - Netherlands

3. Department of International Development – UK

4. Financial Education Fund –SA

5. The Foundation for Civil society-TZ

6. Swedish Society for Nature Conservation – Sweden

7. Aim for Human Rights – Netherlands

8. Consumer Information Network – Kenya

9. Consumers International – UK

10. UNICEF – Food Fortification

11. International Telecommunication Union - Switzerland

12. Sectoral Regulatory Authorities;- Bank of Tanzania, Tanzania Bureau of Standards, TFDA, TCRA, EWURA and SUMATRA

13. Media Houses;-IPP media, Business Times, Mwananchi, Majira, Daily News, Star TV, Radio Uhuru, radio one, EATV, Capital TV

14. and many others the list is endless

We promise to do even more in 2011; TCAS management hopes to count on you as a continuing partner in this work. On behalf of TCAS’s management, staffs, volunteers and members, we wish you happy holidays and a New Year filled with peace and justice for all.

Bernard E. Kihiyo

Executive Director

Tanzania Consumer Advocacy Society
Kindly visit Our Website for more infomation: http://www.tcas-tz.org/

How the US Government Guaranteed the coming food crisis

2010-12-11T23:12:00.000-08:00

Friday, 10 December 2010 07:07

BY PORTER STANSBERRY & BRADEN COPELAND
OVER the last several years, I've written constantly on the growing likelihood of a global currency collapse.The Governments of Europe and the United States have accumulated debts so large they can't ever hope to repay them, except with currencies whose value will be inflated away by money-printing.

That's led me to recommend inflation hedges like railroads, gold, silver, and various forms of energy. Owning these "real assets" is the single best way to protect yourself from the inflationary crisis. But make sure you don't forget the most important inflation hedge of all: food.

If you've been reading the financial press for the past few months, you know the prices of vital food commodities are soaring. The price of corn is up 47 per cent since this summer. Soybeans are up 30 per cent. Wheat is up 43 per cent.

I expect this trend of higher food prices to continue for years as the U.S government intentionally debases the dollar while lying to you the whole time about wanting a "strong currency." (Make sure to read our essay here about this great lie.) There's also a good supply/demand case to be made for owning agricultural assets. Let's start with the largest crop in the United States, corn...

In 2009, US farmers grew 39 per cent of the world's corn – 307.4 million metric tons. The crop was worth US$48 billion. Our corn exports totaled $8.7 billion.

Most harvested corn in the US is used to feed livestock – 43 per cent of 2009 production. Almost as much (41 per cent) was used for food, consumer, and industrial products (toothpaste, adhesives, cosmetics, starches, sweeteners, oils, beverages, industrial alcohol, fuel ethanol, etc.). The remainder was exported. The US sent most of its corn to Japan, Mexico, and South Korea.

The second-largest corn grower, China, produced 165.9 million metric tons, or half the US production. The European Union was a distant third, harvesting 62.7 million metric tons. Brazil checked in fourth, at 51 million metric tons.

In 2009, a severe drought in China killed millions of bushels of corn. Stockpiles dwindled to alarming levels as the government sold corn to keep the price from rocketing higher. Into 2010, the situation hasn't improved. The Chinese have become net importers of corn for the first time in 16 years. Experts predict China will require 6-to-8 million metric tons of corn this year.

The Chinese corn crunch reminds the world of the food shortages of 2006-2008. Average global prices for wheat, corn, and soybeans spiked more than 100 per cent. Rice prices surged more than 200 per cent.

The PowerShares Agriculture Fund (DBA) noted that there was a sharp rise in agricultural commodity prices from 2007 to 2008...

This price rise resulted from changing diets in developing countries and the US's move to use corn as a fuel source (ethanol). From 2006 to 2008, total global grain consumption increased three per cent per year, up from two per cent per year from 2000 to 2006. People were eating more meat. You need seven pounds of feed grain to produce one pound of beef.

Increasing affluence leads to a desire for greater luxury in everything, including food. Developing and developed countries are now competing for what they want to eat. And that means prices are going up again.

Notice the right edge of the chart. The price of the DBA basket of agricultural commodities is breaking higher. A large component of this fund is the United State's second largest crop, soybeans.

The U.S. produced $31 billion worth of soybeans in 2009. It's our largest agricultural export. Total exports in 2009 exceeded $16 billion, setting a record.

The US produced almost one-third of the world's soybeans in 2009 (91.4 million metric tons). Brazil and Argentina combined for 50% more of the globe's production. China produced seven per cent, and India produced four per cent.

Soybeans are also used for animal feed. They have twice as much protein content as any other major vegetable or grain. Their protein also makes up many common meat and dairy substitutes, including soymilk and tofu. Soybean oil is used for food and industrial applications.

When it comes to soy consumption, the story has changed in recent years. China has overtaken the US as the leader...

In 2005, China was second, consuming 45 million metric tons of soybeans compared with the US's 51 million metric tons. Last year, China consumed at least 60 million metric tons. The US consumed less than 50 million metric tons.

Unfortunately for China, its domestic production can't begin to satisfy its growing soybean consumption. In 2009, the Chinese imported more than 45 million metric tons of soybeans. Almost half came from the United States. Chinese producers harvested a little more than 15 million metric tons on their own.

The China National Grain and Oils Information Center is projecting total Chinese imports for 2010 will total 60 million metric tons. That would be a 33 per cent increase over 2009. The US will likely supply half of this. This demand is already driving soybean prices back toward their record 2008 levels of $16 per bushel...

The combination of increasing global demand coupled with the Fed's quantitative easing makes a huge move higher in these commodities (and funds like the DBA) likely. Prices could soar high enough to trigger a global crisis.

When you read about this in the next year or two, don't say you weren't warned... and don't say you aren't prepared.

Whatever the temporary political solution to the looming food crisis is, the ultimate answer is more production. The only way to substantially increase farm productivity is better technology. [DailyWealth].

Source; http://www.marketoracle.co.uk/Article24601.html

Financial Products to Avoid

2010-11-07T03:55:00.000-08:00

By Ray Martin Nov 4, 2010

The financial industry sells a lot of products that most folks should just avoid. Often these products are high cost versions of the same product available at a lower cost, offer a benefit you simply don’t need or expose you to additional risks. In short, they are a waste of your money. Here are three of the worst offenders.

Life insurance policies on children: Life insurance should cover people on whom others are financially dependent. In other words, you should buy life insurance on the family breadwinners but not on the people who are dependent on them. Since you don’t rely on your young children for income, you don’t need a large death benefit if they die. Insurance companies make a lot of money on a child’s policy because it’s pretty unlikely that the policy will ever be collected. Although it’s heavily marketed, this product is not as heavily bought. The American Council of Life Insurers reports that only about 15 percent of children in the U.S. under the age of 18 are currently covered by life insurance with policies generally providing only a few thousand dollars in coverage.

Grandparents in particular seem to like giving life insurance policies as gifts to grandchildren. I encourage them to put money into a 529 education account instead.

Co-signed credit cards: Under the new credit card rules, anyone under 21 can’t get a credit card unless they have sufficient income OR some over age 21 agrees to co-sign on the account. Unfortunately there are many loopholes so this restriction is unlikly to stop younger folks from getting theier own credit cards.

You should NEVER agree to be a co-signer on anyone’s credit card. Yes folks, that means you should never co-sign a credit card for your kids or siblings. Co-signing puts your own credit score on the line. For instance, if the other person on the account is late with a payment, that will reflect negatively on your credit report and that could lower your credit score. For parents with kids in college, instead of using a co-signed card, consider using a prepaid or bank credit card or a debit card.

Mutual funds that charge sales commission: These are called LOAD mutual funds. Sales charges on the front-end take four to six percent of your initial investment off the top to pay this sales charge. Funds with deferred sales charges (called back-end or deferred sales charges) come with additional ongoing fees that eat away at the fund’s performance while you own it. These load mutual funds will then need to outperform no-load mutual funds to make up for their extra fees. There’s not much to support that load funds sold by brokers can outperform no-load funds.

Companies say that sales commissions on mutual funds are a fee you pay in exchange for advice from a financial advisor. If you’re looking for investment advice, find an advisor that charges a fee for their advice, and then ask them to recommend no-load funds where your purchase of any funds recommended does not result in any additional compensation for the advisor.

Source: http://moneywatch.bnet.com/retirement-planning/blog/what-works/financial-products-to-avoid/557/

HERE ARE THE CHALLENGES FACING TANZANIA CONSUMERS WHEN USING INSURANCE SERVICES

2010-09-01T08:02:00.000-07:00

By Jehovaness Zacharia; FE Project Consumer Advisor(Legal).
Tanzania like most of the African countries have a long history as far as financial services to the consumers is concerned. I analyzing the issue above, I find it important looking at where the country was to where we are today. Soon after independence, Tanzania adopted socialism and things were run communally. All the financial services were under the government. There was one Insurance company which was National Insurance Company owned by the government as well.

HERE ARE CHALLENGES
The consumers of insurance services in Tanzania had and still are facing a number of challenges which some of them are historically oriented (legacy). With this I find the consumers themselves bring challenge in the insurance market in Tanzania.

During colonialism, the Tanzania (Tanganyika by then) consumers believed that the Insurance policy is bought by the rich people only. And this was the case since the colonized had nothing to insure apart from his own life of which still even if he knew he was not economically well to do it.

Soon after independence, though there was communalism but still there was gap between the haves and have-nots, and the earlier who are the minority are the ones who had been using insurance services. The later would be in the position to but they wouldn’t since majority of Tanzanians were uneducated and financially illiterate.

In late 1990s Tanzania government reformed its financial sector and it allowed private entities to operate in financial sector and this includes insurance sector. These apart from increasing the number of players in provision of insurance services, it also widen the consumers field of choice when it comes to choosing which product to purchase, on my view this is as well a challenge in an illiterate market.

Though Tanzania financial sector is still in its early stage of development, there is rapid recent growth in the supply of financial services including insurance services; this means that consumers are increasingly faced with complex set of options and decisions. To me, all these pose a number of challenges in the insurance market in Tanzania.

The Tanzania consumers are faced with number of challenges when using insurance services. I can group the challenges into two categories. One if challenges from the service provider plus the regulators so the market point of view and from consumers themselves.

In my own view, I see challenges from consumers themselves include lack of knowledge regarding insurance. The 2009 FinScope report reveals to me the facts that, 14% of people who do not use insurance said that they do not know at all what insurance is, 12% said they do not know how to go about it, 16% do not know how to buy it.

Therefore, the know-how in using insurance among Tanzania consumers has been of great essence. And since they lack this, this brings in a great challenge to consumers.

Again with FinScope report on 2009, depicts that 17.4% of Tanzania consumers never heard of insurance phrase at all while the 39.0% heard the word but they do not know what it is and 43.5% heard about it and know what it is! Therefore, more than 50% lack knowledge of insurance.

Another challenge I see with the consumers is bad belief concerning Insurance in general. For few Tanzanians who have little knowledge of insurance who despite of the little knowledge they have, are still not using it believing that insurance services are meant for rich people and since they are not rich, they belief that it was never meant for them.

Also due to religious belief people who have been taught to keep their faith to their God and not in human beings and so buying insurance policy means keeping your faith in insurance companies which is a sin. Also buying insurance policy is believed to predict ones death (for life insurance) or loss/damage (for property) and so doing so is calling a bad lack to oneself. I see this as a challenge which face consumers when use insurance services and this particular challenge hinder them from utilize the services.

There is also a bad look/ conception of insurance companies by the consumers. Some consumers see the companies as “conning” companies and so by no means do they want to buy insurance policy. They think asking someone to insure the house against fire accident for instance and what will happen to their money if their house doesn’t get fire outbreak?! To me, this seems as, these consumers believe that, the companies want them to insure over things which the possibility of them happening is either not there or zero point zero zero one something, and therefore getting money from them (consumers) is like conning them.

All these, but to mention a few, on my view, are some of the Tanzania consumers’ beliefs when thinking of using insurance services.

Understanding of terminologies used in insurance policy has as well being a big challenge among Tanzania consumers who utilize insurance services in Tanzania. Due to this problem, some have found themselves buying the policy they actually never intended to buy. For example in failure to understand the terms used, one may decide to buy a cheaper policy which will not cover all that s/he wants it to and when this person incur an accident and the insurance company refuses to pay off on the ground that the policy does not cover the loss incurred, the policy holder complains. But all is due to misunderstanding of the terminologies and to me this is a crucial challenge to consumers.

On the other hand, there are challenges from the market side. I have included the challenge from the insurance providers, the regulatory bodies and other market players. These challenges include but not limited to the following;

Non disclosure of information by the insurance brokers, when the consumers buy the insurance policy there are information which may make the insured think twice on whether to buy the policy or not, these info are not well explained to the consumers. Also I see the possibility of consumer hiding some information but on my view, if consumers would be well informed of the effects of non disclosure, they would act differently.

On my view, there is an issue of delay in meeting the claims of consumers who are entitled to redress from the insurer. There is a time frame prescribed for insurance claims to be met, but due to already mentioned lack of information to consumers, the insurance service providers do not comply with such requirement.

According to the new Insurance Act, s.131 the insurer is required to pay the claim within 45 days from the date of receipt of executed discharge.

Nonpayment of insurance claims is yet another challenge facing Tanzania consumers using insurance services. I am distinguishing between delay in making payments/redress and total refusal to pay. Some consumers who incur losses which are covered by their insurance policy but the companies find a way to abstain from paying the insured. This is challenge to insurance service users and a discouragement to others who are yet to use the services. On my view, this might be the sole reason why other consumers view these service providers as con companies.

As far as legal position is concerned, most of the insurance service consumers are not aware of their legal rights and responsibilities under the insurance law and policy. The concerned body has so far put into place the program which will be helping the consumers understand this law and the regulatory body established under it, and this is none other than the Tanzania Insurance Regulatory Authority (TIRA).

Since the law is not known to the insurance service users, the one who are aware of the service and utilize it are no aware of where to go in case the insurance contract seem to be ambiguous to him or more beneficial to the insurer than the policy holder. They think having an option to go choose another insurer, automatic discharges his right to complain over the unfair terms of contract offered to him by the insurer.

The law clearly explain that the commissioner of TIRA has power to delete or amend obscure or ambiguous terms in contracts of insurance [s.11 (d) ii], or items and conditions in the contract which are unfair or oppressive to the policy holder/consumer [s.11 (d) iii]. To simplify and clarify the terms and conditions of insurance contract can as well be done by the commissioner. I can see the challenge to the consumers is the fact that these and more other things of their favour provided in the new Insurance Act are not known to them.

Tanzania Consumer Advocacy Society (TCAS) as the only consumer private organization in Tanzania is doing all it can to ensure consumers are protected and with regard to insurance service consumers, TCAS is running a big campaign which was preceded my consumer need assessment which had revealed most of the issues raised here. The need assessment has enabled the organization to identify the need of insurance service users.

The campaign supported by DFID under the Financial Education Fund, TCAS together with the London based organization known as Consumers International (CI) and other financial education experts like Microfinance Opportunities as well as ESF Apex Strategies are providing financial education to Dar es Salaam consumers as well as providing free consumer advice in the center established known as Consumer Advice Centre (CAC).

This campaign among other things will help the consumers of financial services in Dar es Salaam and neighboring regions to understand the challenges ahead of them and how to go through, the law, policy, and regulation as well as to know regulating bodies in place and what are the consumers’ position.

TCAS campaign will go hand in hand with the establishment of Consumer Advice Center which will be providing free consumer advice on financial matter, and this will not exclude consumers who visit CAC for other non financial related matters.

All that TCAS is doing is to supplement what the government has started or is doing in ensuring that consumers who are utilizing insurance services are protected and informed. The Insurance Supervisory Department launched financial education program in 2009 adhering with the Second Generation Financial Sector Reform Program (SGFSP)’s advice on the same.

CONCLUSION
On my personal view, as TCAS project consumer advisor on legal matter, with regard to challenges facing Tanzania consumers when utilizing insurance services are as outlined above. The challenges show that all market players are concerned in one way or another. This is because, all players have their role to play in ensuring that the market practices are not abused by any of them.

Legal and institutional frameworks are important reforms in encounter these challenges. Having legal and institution frameworks reformed but not known to the people to me is an incomplete action taken.

The work of making the institution known not necessary have solely be done by the creator of the said frameworks. Other stakeholders need to put in their efforts in making these known to consumer. Taking an example of the better enacted law and the authority made under it which is hardly known to consumers! The service providers focus on making profits and so they care less on whether the consumer’s rights are adhered to or not.

Therefore, I am calling upon other players; these include the service provider to support consumer movements which aim at helping out consumers to understand their position in the market. This not only will reduce the number of complaints arising between the consumer and the service provider, but also will increase the number of consumers who will be using the insurance services and this will result into increase of profit it the service provider as well as increase national income which in turn will come back to the consumers in the form of social services.

I believe the say “together we stand, and separate we fall” with this in mind, let’s all players join our efforts together in helping the consumers overcome the market challenges since, together, at the end of the day, all of us are going to be beneficiaries of whatever efforts we are putting in.

Importation of counterfeit products in Tanzania: What should be done?

2010-08-27T06:50:00.000-07:00

By Japhet Makongo –
He Shared his feeling through the Foundation for Civil Society mail page on 26th.Aug.2010

This is a very good and timely topic. Timely in the sense that we shall soon get a new government in place by the end of the year. It is my expectations that views given on this topic can be usefull for whoever comes into the decision making ring box.

I have three observations on what need to be done.

First, we know that this is global challenge and it goes beyond one country strategy. One of the reason why we all fall victims of counterfeit products is the price competitiveness. Unless we provide alternative quality products at affordable prices we shall not entangle ourselves from the web. My suggetion is for the government to become serious in implementing the East Africa Protocal on Trade and make joint efforts to produce and market similar products with quality but at cheaper prices. All what the governments need to do is to import the techonology from wherever these products are coming.... and I am sure we can provider even cheaper labour force. with the technology in our hands, we can use the qualtiy assurance and regulatory systems to improve what our consumers need. It may seem a far fetched idea, but serious governments can do it!

Second, we need some immediate actions to the matter. I do not understand why those who are involved in the game even when caught are left to enjoy their harvest with a token punishment? What does it cost the government to wipe out 100 entrusted and selfish business giants for the benefit of the populace? In China, the very country where these products are believed to come gave a death sentenced to whoever was found to sell poisoned milk for children! We may not want to kill, but we can merely ask these people to stop what they are doing by extracting their business licenses and asking them to help build the nation at segerea and elsewhere. I guess this comes down to having a committed and accountable government. I need to be advised...what is wrong with our rules and regulations? Are our institutions that have been mandated to implement these regulations toothless barking dogs or are they part of the game? HADITHI YA KARUME KENGE inanijia kila mara.

Third, it all comes to what people know about the effects of the counterfeit products. Unfortunately we have created the "I Do not Care Society" so selfish and self-centered individuals. We all want to show off to other that we are different even if it means sacrificing other people’s health. I appeal to the leading Civil Society Organisations and professional associations-engineers, doctors, accountants, environmental activities etc to give priority on educating the people about these products. In my opinion, professionals have not done enough to inform the public about the effects of having tons of counterfeit products on our soil. Take the example of low quality of the dry battery cells. You need to buys several pieces to finish shaving your beard and some do not even kick start the shaving machine.

We do not have proper disposal facilities and knowledge and as result they are thrown every where. We all know what it means when they are buried in the soil or come into contact with fire....they effects are is detrimental and yet these batteries are in all retail shops ...kule ambako watu wenye kipato cha chini wanaumia.... ni hatari

We should be aware that, there is not good governance, quality education, sound environment and climate change workshops if people are eating poison and dying! My wit is that lets all go Civic Education and Awareness on morals, ethics and making the people to take responsibility start seeing "us as well as seeing me"

One last comment........ I was optimistic with Jakaya Mrisho's call some months ago to help the political parties to distinguish "politics and business", but as long as these tycoons are still in the political arena we have slim chances of getting through-they are the ones behind counterfeit products including kuchakachua mafuta!
God protect Tanzania

Makongo

Days of sub-standard imports numbered - TBS

2010-08-25T00:26:00.000-07:00

BY LYDIA SHEKIGHENDA
25th August 2010

The government is determined to curb current massive importation of sub-standard products into the country by ensuring that all imports are verified at the point of origin to determine whether they meet the requisite quality standards, Tanzania Bureau of Standards (TBS) Director General Charles Ekelege said yesterday.

He told a press conference at the TBS premises in Dar rs Salaam that, the exercise would be undertaken through a ‘Pre- shipment Verification of Conformity to Standards programme’ to be managed by the bureau together with other local and international partners.

The TBS chief executive said the process of securing the local and international partners were currently underway to enable timely take-off of the exercise.

“We are going to announce the international tender basing on the Public Procurement Act next month to get partners who will implement the programme,’ Ekelege told participants to the International Organization for Standardisation (ISO) Regional Workshop on Conformity Assessment from 20 eastern and southern Africa countries.

He added that once implemented there would be no sub-standard goods which would be imported into the country because companies that would be contracted to execute the programme would be liable for any imported poor quality products.

According to Ekelege, the international accepted programme was already being implemented by other African countries including Kenya, Uganda and Botswana.

He said the programme would involve all the commodities countrywide and the tender was open to both local and international companies.

Ekelege said the workshop was a starting point as a forum for discussing harmonisation of the conformity assessment procedures in the region with the aim of facilitating the smooth flow and exchange of goods and services in the region.

For his part, Deputy Permanent Secretary of the Ministry of Industry, Trade and Marketing, Shaaban Mwinjaka said implementation of international standards and conformity assessment practices provided excellent means of technology transfer to developing countries while assisting in overcoming technology gaps.

“International standards are important in improving our developing countries’ access to international markets and to strengthening ability to implement international trade obligations,” he said.

“Consumers shall have more confidence in products bearing a mark of certificate of conformity that attest to quality, safety or other desirable characteristics,” Mwinjaka said, adding that manufacturers needed to make sure that their products met the requirements specified in the relevant standards.

He said assessing products to see whether they met relevant standards further helped manufacturers to avoid costs of product failures in the market.

According to the Deputy PS, Tanzania had already moved a positive step by actively participating in the process of harmonising regional procedures on conformity assessment in both the East African Community and the Southern Africa Development Community.

SOURCE: THE GUARDIAN

http://www.ippmedia.com/

Automatic Overdraft Protection: Just Say No

2010-08-19T11:47:00.000-07:00

By Jane Bryant Quinn Aug 16, 2010

Just say no, when your bank or credit union asks if you want “courtesy” overdraft protection for purchases made with your debit card. This so-called service damages your finances and handed the banks $37.1 billion in fees last year, Moebs Services reports. Most of that money was drained from the accounts of people living paycheck to paycheck.

New regulations, effective August 15, stopped the lenders from hitting you with debit-card overdraft fees automatically. Now you have to specifically agree to the charges, either when you open an account or by signing up for the program later. But who would agree to these abusive fees if he or she knew all the facts? There are cheaper ways than this one of getting the protection you want.

The automatic overdraft started about a decade ago. Until then, banks turned down debit-card purchases if you didn’t have enough money in your checking account to cover the bill. The same was true if you tried to overdraw your account at an ATM. “Sorry,” the screen said, “you don’t have the scratch.” That’s the way prudent money management is supposed to work.

Then the banks had a Eureka moment. Instead of turning you down, they let you overspend and charged you a “courtesy fee” for letting the transaction go through. Moebs puts the median fee at $27 for every overdraft, even if the bill runs just $1 or $5 over the amount you have in your account. Some banks charge the fee if you’re a penny over. Effectively, you’re getting very short-term credit at effective interest rates that reach the high triple digits.

At the big banks that allow overdrafts, the median fee is $35. They charge another $7 to $36 if you don’t repay the overdraft within a few days, according to a 2010 survey by the Consumer Federation of America. (Citibank never allowed debit-card overdrafts unless you arranged for some sort of backup line. Bank of America recently ended them.)

There are much better ways of getting overdraft protection from banks, which are detailed below. But don’t expect banks to volunteer that information. They’re engaged in aggressive marketing campaigns to sell you on the “courtesy” program that will cost you the most.

In their marketing calls, emails and brochures, they grab you with anecdotes. For example, they warn that — without the program — you might have a debit card refused at the grocery checkout because you’re overdrawn by the cost of a $1.50 tin of tuna. Ooooo, that sounds bad, so you sign up.

Personally, I’d rather put the tuna fish back than pay a $35 overdraft charge.

The tuna fish is the least of it. If you left the grocer and used your debit card for coffee and donuts on the way home, that’s another $35 in overdraft fees. A stop at the drugstore for vitamins and aspirin would cost you another $35. You’ve just racked up $105 in penalties, for minor expenditures that you wouldn’t have made if you’d known about the fees. And you won’t know they were overdrafts until you log into your online account or get a letter or email from the bank.

The banks mislead you by saying things like, “Act now, or your debit card transactions will be denied,” according to Linda Sherry, spokesperson for Consumer Action. “You think you’ll be in trouble if you don’t sign up. They don’t explain that the reason for the denial is that you don’t have the money in your account.”

They also say, “Sign up, if you like the way your account is working now.” Most customers rarely experience overdrafts, so they might accept the program without realizing the size of the fees they’re potentially exposed to.

If you want overdraft protection, and many of us do, there are three cheaper ways of getting it. First, put money into a savings account and link it to your checking account. If you overdraw, the bank will take the needed money out of your savings, charging perhaps $5 for the transfer. Alternatively, sign up for a personal line of credit to be used for overdrafts, or link your checking account to a line of credit on your credit card. These are all better choices than the “courtesy” overdrafts that drill into your wallet.

What if you have no savings and don’t qualify for a line of credit? You’re better off having excessive transactions turned down, says Rebecca Borne, senior policy counsel at the Center for Responsible Lending. Serial overdraft fees just make it harder to pay future bills.

The new regulations cover only debit-card purchases and ATM withdrawals. Banks and credit unions still levy expensive overdraft fees if they honor a check that you wrote for more money than you have in your account. The same is true if you’ve signed up for automatic bill payments and can’t cover the debit when it’s due. To opt out of these fees — and still have protection — you have to call the bank and say that you want one of the three cheaper options instead.

You might think that you can avoid overdrafts by keeping your check register up to date or monitoring your account online. But it’s not that easy. There’s another piece to this story of abuse — and another reason to say no to automatic debit-card overdrafts.

About half of the banks (and most of the big ones) “engineer” the way they cover debits, to make it more likely that you’ll have to pay multiple fees. As a result, you can rack up 10 or more $35 fees in a single day, from a string of small purchases that you thought you had enough money to cover.

A recent court decision, in a class action lawsuit, called this bank practice “gouging and profiteering.” That’s a story for next time.

More on MoneyWatch:

Five Ways the Financial Reform Law Changes Your Money Habits

Financial Reform: A Big Win for Consumers, a Big Loss for Investors

The Dangers of Using a Debit Card

U.N. Affirms Human Right to Water

2010-08-04T10:20:00.000-07:00

For Immediate Release:
July 29, 2010

Contact: Christina Rossi, 617-447-2540

NEW YORK, NY– In a historic vote, the United Nations General Assembly affirmed the human right to water and sanitation, citing concerns that nearly 900 million people worldwide lack access to clean water.

The 192-member Assembly also called on United Nations Member States and international organizations to offer funding, technology and other resources to help developing countries scale up their efforts to provide clean, accessible and affordable drinking water and sanitation for everyone.

The Assembly resolution, championed by Bolivia with over 40 cosponsors, received 122 votes in favor and zero votes against, while 41 countries abstained from voting. The United States abstained, but issued a statement in support of the overall effort to realize the human right to water.

“The General Assembly vote is a clear victory for the water justice movement and will help ensure that international regulatory bodies and national governments fully recognize the human right to water and begin to work towards fulfilling their obligations with respect to providing clean water and sanitation to those lacking,” said Kelle Louaillier, executive director of Corporate Accountability International.

The text of the resolution expresses deep concern that an estimated 884 million people lack access to safe drinking water and a total of more than 2.6 billion people do not have access to basic sanitation. Studies also indicate about 1.5 million children under the age of five die each year because of water- and sanitation-related diseases.

The resolution states that “the right to safe and clean drinking water and sanitation is a human right that is essential for the full enjoyment of the right to life.”
The resolution also welcomes the U.N. Human Rights Council’s request that Catarina de Albuquerque, the U.N. Independent Expert on the issue of human rights obligations related to access to safe drinking water and sanitation, report annually to the General Assembly as well.
“The right to drinking water and sanitation are independent rights that should be recognized as such,” said Plurinational State of Bolivia Ambassador Pablo Solon. “It is not sufficient to urge States to comply with their human rights obligations relative to access to drinking water and sanitation. Instead, it is necessary to call on states to promote and protect the human right to drinking water and sanitation.”

List of sponsoring countries :
Angola, Antigua and Barbuda, Azerbaijan, Bahrain, Bangladesh, Benin, The Plurinational State of Bolivia, Burundi, Central African Republic, Congo, Cuba, Dominica, Dominican Republic, Ecuador, El Salvador, Eritrea, Fiji, Georgia, Guinea, Haiti, Madagascar, Maldives, Mauritius, Nicaragua, Nigeria, Paraguay, Saint Lucia, Saint Vincent and the Grenadines, Samoa, Saudi Arabia, Serbia, Seychelles, The Solomon Islands, Sri Lanka, Tuvalu, Uruguay, Vanuatu, The Bolivarian Republic of Venezuela, and Yemen.

Source; http://www.stopcorporateabuse.org/un-affirms-human-right-water

Consumer Advocacy Group Roots for Secondary Schools Financial Education Project.

2010-07-29T04:29:00.000-07:00

The Business Times July.23-29.2010
The Tanzania Consumer Advocacy society (TCAS) has argued various companies to support its effort to raise financial knowledge and capability in secondary schools in the county.

Last month TCAS launched one year project on financial education to secondary schools in Ilala municipality. TCAS is working in collaboration with Consumer International and launched by Anne Fansen Fund, and is undertaking that initiative to support teachers to be able to integrate consumer financial education in their teaching and outdoor activities. This is virtual to boost student’s ability to handle financial issues after they finish school.
TCAS executive director Bernard Kihiyo said in an interview that sake holders such as mobile banking operators, insurance firms, capital market firms and others need to participate in this effort. The mater is immense interest and its merits effort of various stakeholders, he said.

The project aims at boosting students’ financial capability when utilizing financial service in future. Among the benefiting schools are Al-Haramain ,Azania ,Benjamin Mkapa ,Dar es salaam, Jangwani ,Kisutu girls ,Mchanganyiko ,Mnazi Mmoja , Tambaza and Zanaki girls .

Flora Mwaikenda a Jangwani secondary school teacher praised the program as helpful for teachers. Another teacher named Flavian Samari said the program help to eliminate gaps in the curriculum, like the new technology of Online banking (E banking), and Electronic Business (E business).
The current curriculum has inadequate information which needs to be updated for instance the role of Bank Of Tanzania (BoT), noting that training must include how consumers benefit from the presence of BoT, he said. Kihiyo said the teaching kit describes the key knowledge bits, understandings, skills and value in consumer and financial literacy the student can acquire through studies in commerce, booking, economics and accountancy.

That way they would acquire basic skills related to earning, financial discipline, spending, budgeting, saving borrowing, and other basic consumer education. ‘More so there is also lack of advice regarding alignment financial market challenges and the content with the exist curricular in Tanzania education system .Lack of up to date advice to teachers around strategies to introduce financial education or to break the content by logical and sequential steps in the class room is a problem ‘.he said .

There is also a lack of advice around of appropriate students activities and classroom task to enable students to engage with the content and to demonstrate relevant educational out comes with the financial market challenges on the ground ‘ he said .

The training courses also aim to build teachers’ ability to provide an effective form of disseminating financial education so that student can understand and know what is available in consumer’s rights protection.
When students know what to expect from individual level to institution protection and can integrate these skills to issues of relevance to classrooms review on the subject, it would add students understanding, draw student’s interests connecting with future day to day life experience on the area of financial matters.

Another objective is that provide awareness of financial opportunities, to know where to go for help, to make informed choices, and to take effective action to improve their financial well being. This would hence improve understanding managing financial matters and risks, deal effectively with market complexity and take advantage of increased competition toward the building of sustainable finance sector in Tanzania.

Consumers’ Habits and Dental Health

2010-07-22T04:51:00.000-07:00

From ''Medical News Today ''
Website; http://www.medicalnewstoday.com/articles/8881.php

1. What do we mean by dental health?
Dental health refers to all aspects of the health and functioning of our mouth especially the teeth and gums. Apart from working properly to enable us to eat, speak, laugh (look nice), teeth and gums should be free from infection, which can cause dental caries, inflammation of gums, tooth loss and bad breath.

Dental caries, also known as tooth decay or cavities, is the most common disorder affecting the teeth. The main factors controlling the risk of dental caries are oral hygiene, exposure to fluoride and a moderate frequency of consumption of cariogenic foods.

Teeth are also affected by “tooth wear” or erosion. This condition is a normal part of aging where tooth enamel is lost due to exposure from acids other than those produced by plaque.

Attrition and abrasion are other forms of tooth wear. Attrition occurs when teeth are eroded by tooth-to-tooth contact such as teeth grinding. Abrasion is caused by external mechanical factors such as incorrect tooth brushing.

Periodontal disease, also known as gum disease, is caused by infection and inflammation of the gingiva (gum), the periodontal connective tissues and the alveolar bone. Periodontal disease can lead to tooth loss.

2. Why is dental health important for general health and well being?
The health of our teeth and mouth are linked to overall health and well-being in a number of ways. The ability to chew and swallow our food is essential for obtaining the nutrients we need for good health. Apart from the impact on nutritional status, poor dental health can also adversely affect speech and self-esteem. Dental diseases impose both financial and social burdens as treatment is costly and both children and adults may miss time from school or work because of dental pain.

3. Individual factors on Dental health
Susceptibility to dental caries varies between individuals and between different teeth within one person’s mouth. The shape of the jaw and oral cavity, tooth structure and the quantity and quality of saliva are all important in determining why some teeth are simply more susceptible to decay than others. For example, some teeth may have pits, small cracks or fissures that allow bacteria and acids to infiltrate more easily. In some cases, the structure of the jaw/dentition renders teeth more difficult to clean or floss.

The quantity and quality of saliva determines the extent to which teeth remineralise. For example relatively fewer caries are generally found in the lower front part of the mouth where teeth are more exposed to saliva.

The type and number of caries-causing bacteria present in the mouth is also relevant. All bacteria can turn carbohydrates into acids but certain families of bacteria such as Streptococci and Lactobacilli are more powerful acid producers. The presence of this type of bacteria in plaque increases the risk of decay. Some people have higher levels of decay-causing bacteria than others due to neglected or inappropriate oral hygiene.

4. Oral hygiene and use of fluoride
In recent years there has been a reduction in the incidence of dental caries in most European countries. An increase in oral hygiene including regular brushing and flossing to remove plaque and the use of fluoridated toothpaste, combined with regular dental check-ups, is thought to be responsible for the improvement.

Fluoride inhibits demineralisation, encourages remineralisation and increases the hardness of the tooth enamel making it less acid soluble. The proper amount of fluoride helps prevent and control caries. Fluoride can be supplied systemically through fluoridated community drinking water, other fluoridated beverages or by supplementation. Alternatively it can be provided topically direct to the tooth surface via toothpaste, mouth rinses, gels and varnishes.

In some countries, salt, milk or other beverages have fluoride added and supplements in the form of tablets or liquid are also available. The level of fluoride in drinking water and food needs to be taken into account when assessing the need for fluoride supplementation. This is especially important in young children under the age of 6 whose teeth are still developing. Excessive intakes of fluoride may eventually cause a mottling of the teeth known as "fluorosis".

Tooth brushing with fluoridated toothpaste is thought to be the most important factor in the observed decline in dental caries in many countries. Brushing and flossing helps concomitantly to the fluoride application to remove bacteria from the mouth and reduce the risk of both caries and periodontal disease.

The regular application of fluoride varnishes by dental practitioners is an established caries preventive measure in many countries. This practice is especially suitable for children at high risk of dental caries.

Regular dental check-ups can help detect and monitor potential problems. Regular plaque control and removal can help diminish the incidence of dental caries. If very little plaque is present, the amount of acid formed is insignificant and decay cannot occur.

Dietary factors

Although the decline in tooth decay in many countries has been largely linked to fluoride exposure and improved dental hygiene, eating habits still affect the risk of tooth decay.

Fermentable carbohydrates
For many years the simplified message to prevent tooth decay was ‘don’t eat too much sugar and sugary foods’. Over the last few decades sugar intake in many countries has remained constant whilst caries levels have declined. This suggests that where appropriate oral hygiene is practiced (i.e. regular tooth brushing using fluoride toothpaste) the role of sugars in tooth decay is less manifest.

Advice to replace sugar with starchy foods to avoid tooth decay is of questionable value. It is now known that any food containing fermentable carbohydrates can contribute to tooth decay. This means that as well as sweets and confectionery, pasta, rice, potato crisps, fruits, and even bread can set the scene for demineralisation. For example, a study testing the acid-producing potential of various starchy foods including pasta, rice and bread, found that these foods produced the same amount of acid as a 10% sucrose (table sugar) solution. Another study found that acid formation in plaque after eating soft bread or potato chips was greater and lasted longer than after eating sucrose.

Food characteristics
The physical characteristics of a food, particularly how much it clings to the teeth also influence the tooth decay equation. Foods that adhere to the teeth increase the risk of tooth decay compared to foods that clear from the mouth quickly. For example crisps and biscuits stick to teeth for longer periods than foods such as caramels and jelly beans. This may be because caramels and jellybeans contain soluble sugars that are washed away more quickly by saliva. The longer carbohydrate-containing foods are around the teeth, the more time bacteria have to produce acid and the greater the chance of demineralisation.

Frequency of eating
There is some debate over the relative importance of the frequency of consuming carbohydrate foods and its link with dental caries. As with the relationship between diet and caries, the link appears to have been weakened with the adoption of good oral hygiene and fluoride.

Each time we nibble a food or sip a drink containing carbohydrates, any decay-causing bacteria present on the teeth start to produce acid and demineralisation commences. This continues for 20 to 30 minutes after eating or drinking, longer if food debris is locally entrapped or remains in the mouth. In between periods of eating and drinking saliva works to neutralise the acids and assist in the process of remineralisation. If food or drink is taken too frequently the tooth enamel does not have a chance to remineralise completely and caries can start to occur. This is why nibbling or sipping continuously throughout the day should be discouraged. The best advice is to limit the consumption of food and drink containing carbohydrates to no more than 6 occasions per day and ensure teeth are brushed with fluoride toothpaste twice a day.

Baby bottle caries or nursing caries is a condition in which infants’ teeth are damaged by prolonged frequent exposure to drinks containing sugars usually via a baby feeding bottle. In particular, problems arise when infants are put to sleep with a bottle of formula or juice. The flow of saliva is greatly reduced during sleep and the sweet liquid pools around the teeth for extended periods of time. This provides the perfect environment for tooth decay to develop.

Protective foods
Some foods help protect against tooth decay. For example hard cheese increases the flow of saliva. Cheese also contains calcium, phosphate and casein, a milk protein, which protects against demineralisation. Finishing a meal with a piece of cheese helps counteract acids produced from carbohydrate foods eaten at the same meal. Milk also contains calcium, phosphate and casein, and the milk sugar, lactose, is less cariogenic (caries causing) than other sugars. Nevertheless caries have been found in children breastfed frequently on demand.

Tooth friendly products
Tooth friendly products are formulated using sweetening ingredients that cannot be fermented by the mouth bacteria. Intense sweeteners such as saccharin, cyclamate, acesulfame-K and aspartame, and sugar substitutes such as isomalt, sorbitol and xylitol fall into this category.

Sugar-free chewing gums use these sweeteners. Both the sweet taste and chewing stimulate salivary flow, which contributes to the prevention of caries. Such chewing gums may also contain minerals such as calcium, phosphate and fluoride to enhance the repair process. Studies have reported that chewing sugar-free gum after a meal accelerates the clearance of food debris and reduces the rate of caries development in children.

Toothfriendly products have to comply with a specific test regimen in order to get ‘safe for teeth’ approval.

What is tooth erosion?
Tooth erosion is the loss of dental hard tissue from the tooth surface by chemical processes, usually acid, without involving plaque bacteria. There are many acidic foods and drinks in our diet and it is possible that in a susceptible individual in certain circumstances, for example, a higher frequency of exposure to acidic foods and/or drinks, erosion may occur. This increased frequency of exposure may override the natural buffering capacity of the mouth, which varies between individuals.

It is advised to avoid frequent nibbling and sipping of acidic foods and drinks throughout the day, restricting their consumption preferably to main meals, and to clean teeth at least twice per day using fluoride toothpaste. It has been suggested that cleaning teeth immediately after consuming an acidic food or drink should be avoided as this can result in physical wear to the teeth resulting from tooth brushing in the presence of acid. Chewing sugar free chewing gum to stimulate salivary secretion following an acid challenge helps neutralize the acid effects.

How can we ensure dental health?
Good oral hygiene and the use of fluoride are now considered the main factors responsible for preventing tooth decay and promoting good oral health. The following advice is also important for keeping teeth caries-free.

• Start dental care early, brush baby’s teeth with a fluoride toothpaste as soon as they appear in the mouth. Do not habitually allow infants to fall asleep while drinking from a bottle of milk, formula, juice or sweetened drink. These sweet liquids pool around the baby’s teeth for long periods of time and can lead to “baby bottle tooth decay”.

• Brush teeth twice a day with fluoride toothpaste. And if possible, clean between the teeth with dental floss or toothpicks once a day. Do not eat after cleaning teeth at bedtime as salivary flow decreases as we sleep.

• Visit the dentist about every 6 months for a check-up. And seek dentist's advice before using aesthetic products (e.g: teeth whiteners) that could have a deleterious effect on the teeth.

• Do not nibble food or sip drinks continuously. Allow time between eating occasions for saliva to neutralise acids and repair the teeth.

• People at high risk from tooth wear and erosion should take special precautions, such as:

o decrease frequency and contact with acidic foods and drinks;

o avoid brushing teeth immediately after consuming acidic foods, drinks, citrus fruits and juices. This allows time for remineralisation to occur.

Fluoride mouthwashes and sugar-free chewing gum may be useful after taking acidic food or drinks as they encourage remineralisation.

• Sugar-free chewing gum is “toothfriendly” as it helps increase saliva flow and clears food debris from the mouth.

Good dental health is the responsibility of individuals, communities and governments although their relative importance varies. For example in some European countries water fluoridation is not yet publicly acceptable and so responsibility for preventing tooth decay lies largely with the individual.

Dental professionals play an essential role in monitoring dental health and treating or preventing any problems. Access to good dental care, including regular check-ups is vital. For some people, especially those from lower socio-economic groups, access to dental professionals may be limited. These groups are important targets for dental health education programmes. Schools also play an important role in educating children on the importance of good oral hygiene and diet.

Women to control $15 trillion of global consumer spend by 2014

2010-07-20T05:09:00.000-07:00

United Arab Emirates: Thursday, June 03 - 2010 at 14:00
The financial power of women globally is rising at a faster rate than at any other time in history. According to the World Bank the global earning power of women is forecast to reach $18 trillion by 2014.

At the same time they will control $15 trillion - 70% - of total global consumer spend says the Boston Consulting Group…………….. the story continues; for more details click to below link……
http://www.ameinfo.com/234370.html?keepThis=true&TB_iframe=true&height=650&width=850

AFRICA: Diabetes cases to double by 2030

2010-06-30T23:58:00.000-07:00

DAKAR, 28 June 2010 (IRIN) - Without a major breakthrough in preventing and treating diabetes, the number of cases in sub-Saharan Africa is projected to double, reaching 24 million by 2030, according to the Brussels-based International Diabetes Federation (IDF).

A recent study, Diabetes in sub-Saharan Africa, led by the University of Yaoundé in Cameroon and published in the British medical journal, The Lancet, said inadequate donor attention and national prevention programmes were creating a global "public health and socioeconomic time bomb".

Diabetes is caused by inherited genetic factors and lifestyle choices, and manifests when the body does not produce enough insulin, or cannot break down sugar in the blood, according to the World Health Organization. The disease usually requires long-term treatment and can lead to costly and serious health complications, including heart failure.

In the 34 poorest African countries, the cost of diabetes per person is more than double their average income. In 2010 an estimated 6 percent of total mortality in sub-Saharan Africa will probably be caused by diabetes - a three-fold increase in the past 10 years, the IDF noted.

Jean Claude Mbanya, IDF president and the study's lead researcher, told IRIN that diabetes had been misunderstood as a rich country problem, despite medical data compiled by IDF showing that 70 percent of cases were reported in low- and middle-income countries.

"There is also the perception that when diabetes does affect people in low-income countries, it only affects those who are the wealthy elite. This is absolutely not the case - diabetes is devastating for the poor, affecting breadwinners," he told IRIN.

Researchers acknowledged that data was scarce in Africa and estimates were based on a limited number of studies. "More studies would increase our confidence in the numbers, but this does not mean they are wrong ... Most people in Africa who have diabetes are undiagnosed and, therefore, even when statistics are available from health systems, they will always underestimate the size of the problem."

Insulin
Sophie Sar, 29, was diagnosed with diabetes in Dakar, capital of Senegal, when she was nine years old. Doctors prescribed insulin, the main anti-diabetic drug, three times a day, costing her almost US$3 per dose. "Every penny I earn as a hairdresser goes to insulin," she told IRIN.

She earns around $6 a day if she has three clients; when she falls short, an uncle lends her money. Her medically approved diet is unaffordable: "We eat mostly rice here in Senegal, but I can only have a few cups of it a day. I am supposed to eat more vegetables but they are so much more expensive."

The authors call for diabetes treatment to be funded in the same way as HIV/AIDS drugs are, along with "support for delivery mechanisms and chronic disease education and care models".

Also needed are "socio-culturally appropriate health promotion campaigns" to address health beliefs in African, mostly rural, settings, that raise the risk of diabetes – such as obesity being a sign of "good living", and a preference for foods with a high saturated fat content, as well as improved access to care and affordable treatment.

"Late diagnosis of diabetes, coupled with inequalities in access to major anti-diabetes drugs ... leads to early presentation of diabetic complications and premature deaths," the study noted.

"HIV/AIDS, malaria and tuberculosis are important conditions, but they are not the only conditions," IDF's Mbanya told IRIN, questioning donor spending priorities that appeared to overlook "chronic non-communicable diseases", or non-infectious diseases requiring long-term treatment.

According to UNAIDS, 6 percent of patients infected with HIV died in 2008 - roughly the same percentage of global patient deaths IDF estimates will be caused by diabetes in 2010.

Source; http://www.irinnews.org/report.aspx?ReportID=89660

[ENDS]

A Compliment from one of the stakeholders on Financial Education in Tanzania

2010-06-29T02:44:00.000-07:00

From: Emilian Busara

Sent: Tuesday, June 29, 2010 12:11 AM
To: 'consint@consint.org'
Subject: Financial Skills Project in Tanzania

Dear colleagues,

I read an interesting article from Business Times newspaper, about financial skills project in Tanzania , in collaboration with Tanzania Consumer Advocacy Society. (TCAS). I also read it from you website. I missed email address of TCAS but please forward this message to them in case you have their email address. They are doing a good job by setting such an initiative in this lovely country of Tanzania .

In that regard, I would like to congratulate you -Consumers International, (Anne Fransen Fund and TCAS) for initiating such a wonder financial capacity building project. As an accountant, administrator and stock investor, I feel that such a project may help by setting the right financial skills at the secondary level.

I would like to bring to your attention that I authored a Kiswahili book about cultivating a culture of saving and investing for financial and economic prosperity (Wekeza Akiba – Jifunze Kuweka Akiba na Kuwekeza Ufanikiwe Kiuchumi na Kifedha). Details and book cover are attached.

Given that we are sharing same vision and mission in promoting financial education in our country, I wonder if you would have time to read and comment and see if such book could be an instrumental to educating Tanzanians and East African about key financial aspect.

Best regards

Emilian Busara, CPA.,MBA.

Director of Finance and Administration

EngenderHealth/CHAMPION

Plot No. 277 Chato Street , Regent Estates

P O Box 105410
Dar es Salaam

ADVOCACY GROUP UNVEILS SCHOOLS FINACIAL SKILLS PROJECT

2010-06-29T02:33:00.000-07:00

The Business Times Reporter

Friday; June 25th-July.1st.2010

A ONE-year project to raise the financial knowledge and capability for ten secondary schools in Ilala municipality in Dar-es-salaam was flagged off last month. The Tanzania Consumer Advocacy Society (TCAS), working in collaboration with Consumers International and Banked by the Anne Fransen Fund is undertaking that initiative to support teachers to be able to integrate consumer financial education in their teaching and outdoor activities to boost students’ ability to handle financial issues.
The picture above shows teachers following the session

The project is geared to impart teachers with the necessary consumer financial education topics and use this acquired skill by imparting it to students. That would make those leaving secondary school to be capable of handling matters, thus literate enough to participate in initiatives involving financial opportunities. They need to know where to go for help and to make informed choices, project officials said.

Bernard Kihiyo, executive director for TCAS, said in an interview last week that the project aims to improve students’ and teachers’ financial well being, by a better understanding and ability to manage risks, dealing with market complexity and increased credit sector competition. “That would help them to take part in building a sustainable finance sector in the country”, he said.

The project, ‘Teaching for financial education’, will encourage financial education in the selected school as entry point across the country, where it will also enable the recognition of well performing teachers, students and schools, he said.

The initiative challenges youth to take control of their financial future by learning more about personal finance, as well as teachers and schools to incorporate vital information and topics into day to day education activities. “The teaching kit describes key knowledge, understanding, skills and values in consumer and financial literacy that students can acquire through studies in commerce, bookkeeping, economics, and accounts”. The director noted that.

Those benefiting from the project are Al-Haramain secondary school, Azania secondary school, Benjamin Mkapa secondary school, Dar es salaam secondary school, Jangwani secondary school, Kisutu girls’ secondary school, Mchanganyiko secondary school, Mnazi Mmoja secondary school, Tambaza secondary school and Zanaki girls secondary school.

Kihiyo said that the initiatives is basically aimed at developing skills in financial education and build on consumer financial literacy which is still low in the country compared with other countries in the East African Community (EAC) and the Southern Africa Development Community(SADC).

The director, who heads Parasol Real Estate & Developer Agent Ltd, said that there is growing concern on violations of consumer rights, rising consumer debt, reduced household savings, lower Pension and retirement coverage.

There is also a problem of low levels of financial literacy and basic skills, negative charges in the marketing and delivery of financial services with increased reliance on alternative financial services under informal systems, he said.

Growing concern was also being registered on changes in the delivery of government services and benefits, he said, arguing that all these features show the rising importance of the provision of financial education. “This would help to increase the financial capability of consumers, in this case secondary school students”, he further noted.

On the left is a group picture of teachers participated on the two days training

THERE IS NO FREE LUNCH… IT SHOULDN’T RESULT TO PREDATORY GAME

2010-05-08T13:12:00.000-07:00

By Jehovaness Zacharia- LLB (Hon) UDSM -TCAS Program Officer

Past years till 1980s, Tanzanians communicated through letters and messengers, almost every office had a messenger who was there to be sent from one office to another, staff collogues could communicate through short written messages known as memos. From memo we developed and start using desktop phones. Thanks to globalization which brought us development including cellular phones which has became the cheapest mean of communication that is easier and faster.

This has well developed business sectors whereby one can easily make communications wherever he is and move on the business. It has even go further to roaming service whereupon cross boarders businessmen who can move from Tanzania to other countries with the same chip card and recharge with the local vouchers.

Increase on the number of service providers in this sector has necessitated intensive competition amongst players resulting to decrease on tariff charges. But…there is a say that, there is no free lunch, that is to say when one gives you something freely, it is not free indeed, there must be the other way s/he is going to get back whatever he has spent on you. Practice shows that what s/he gets back is in most cases greater than what he had spent on you.

In capitalism and trade liberalization, “predatory pricing” is not a new phenomenon. And it has always been the duty of the government-Competition Commission, Service providers and Civil Societies to ensure that there are healthy checks and balances and fair competition not to amount to malpractices. The enactment of Fair Competition Act 2003 (FCA) which put in place Fair Competition Commission (FCC) put in place the checks and balances for Tanzania.

Currently, all telecommunication companies struggle to conquer the market share, we have witness amazing lower prices never experience before. It started from 30Tshs to 10Tshs, 6Tsh per sec to 3Tsh to 1Tsh per sec few days ago we heard 0.50Tsh per second, and now enjoying below 25cents per second.

We may all be happy with the astounding offers and forget to think of our future as consumers of these important services which might be at stake. One may view this in form of predatory pricing or cartel which is a form of anti-competitive arrangement that occurs when a group of firms or companies agree to fix prices, shape geographic markets between themselves or jointly determine other market experience.

But due to lack of experience in combating predatory and cartel activities in most of developing countries Tanzania being among them, most of predatory and cartel activities go un-noticed. Under these practices, one or few service providers may sacrifice to go below company’s overhead costs for a certain period whereby, during this time, the dominant firm will keep surviving while others will not and therefore withdraw themselves out of the market as they cannot sustain the predatory pricing war.

Similar situation was experienced by Namibians who in couple of years back were celebrating the lowest cement price in history. The cement market dominancy were between Holcim, a South African company and Cheetah a Brazilian which imported cement from Brazil with the intention of building cement industry in near future.

When Cheetah got into market the price of 50kg cement bag was US8$, soon it went down to US4.5$per 50kg bag, in 2006, it went down to US3.5$per 50kg bag. At the end of the same year Cheetah could not sustain its activities in Namibia and ended its operation whereas Holcim become the sole cement provider whereby they later made an extraordinary change of price from USD 3.5 to US9.5$ per 50kg bag. Therefore Tanzania Consumers and all other key stakeholders including TCRA and FCC need to be on alert as this shouldn’t be the case on telecommunication industry, since not all what glitters is gold.

With the ongoing so called “promotions” by some of the telecommunication companies in Tanzania, a thorough immediate check on is required to ensure that they do not amount to go below recovering their overhead cost or ending up with anti-competitive practices. TCAS therefore calls upon professionals, academicians and relevant government organs to check on this and ensure service provider survival and consumer protection guaranteed.

Tanzania Consumer Advocacy Society (TCAS) wouldn’t wish to see incumbent operators with dominant market position are pushing other mobile phone companies out of the market and later the hunter (consumer) turns to be the hunted. The more the players in the market the better as it gives consumers a wide range of choices.

World Economic Forum for Africa : any real, long-term gains for Africa, Tanzania?

2010-05-08T11:41:00.000-07:00

Friday, 07 May 2010 08:46
BY ERIC TOROKA
TODAY, May 7, 2010, one of the more important events in Tanzania's post-Independence history comes to a close in the nation's de facto capital and commercial metropolis Dar es Salaam. For three days beginning May 5, Tanzania was the cynosure of world attention as the capital bustled with activity generated by the 20th World Economic Forum for Africa (WEF-Africa), the first to be staged in the region.

Most of the past 19 events were staged in the Republic of South Africa. This latest event brought together about 1,000 participants from 85 different countries of the world to the scenic Mlimani City Business Complex on the outskirts of sprawling Dar es Salaam where they deliberated upon, and rethought, Africa's social and economic growth strategy.

The Forum was graced by a myriad dignitaries who included a goodly dozen Heads of State and/or Government, as well as scores of public officials and world business leaders of considerable renown.

The event was organised by WEF, a task in which it was ably partnered by – among others – ABB, CITI, ArcelorMittal, CISCO, Dow's, KPMG, Ernst & Young, Microsoft, HP and UNILEVER.

It is still very much early days yet to know with much certitude what impact the Forum will have upon Africa and its nearly-one-billion people – or upon Tanzania and its 44 million population...

But, activists are already saying that the country will not particularly benefit from this Forum – or, indeed any other for a in the foreseeable future, citing a number of reasons for that gloomy view.

For starters, they glumly note that, more than 40 years after the 'Mother WEF' was launched in Davos, Switzerland – and 20 years after the African Edition of the event was introduced – Tanzania is yet to make its mark upon the WEF Map!

Not a single company from Tanzania is among the 300 or so leading companies from over 50 countries which have been formally admitted into the WEF fold as 'family' of the first water!

The selection criteria for WEF membership are yet to be attained by any company in Tanzania. For instance, to be eligible for consideration, a company must register – and be seen to register – an “annual growth rate exceeding industry-and-regional average by 15 per cent; minimum turnover of between US$100 million and US$5 billion (depending on the industry); demonstrated growth potential, capacity and intent to build a global business; as well as exemplary executive leadership.”

WEF membership 'earns' a company the right to enjoy the following opportunities and benefits... “New business opportunities across industries and regions from weak and dependent economies such as Tanzania; networking with the world’s leading business and policy experts; peer-to-peer collaboration and experience exchange, as well as industry-specific and cross-industry knowledge sharing.”

Commenting on the matter, the chairman of the Tanzania Consumer Advocacy Society (TCAS), Daimon Mwakyembe, wondered “how many Tanzanian firms can be classified into the above criteria – especially with regard to turnover?

“How well-prepared are Tanzanian companies to use the world market potentials that are available...? Or, how vulnerable is Tanzania to being used by other global industries with maximum quest to expand? How prepared are Tanzanians, and Tanzanian firms, in this? Are there any deliberate efforts to empower them?”

Mwakyembe said “there must be deliberate efforts in ten-twenty years to come to have self-made Tanzanian billionaires in US dollars, so as to enable them enter into joint ventures in Tanzania and all over the world... This is what WEF is all about!”

Noting that “deliberate moves must be made to have a stable middle class with a lifestyle, education levels and social etiquette with strong ethical consumerism in mind,” Mwakyembe said “this culture – if it can adopted – could improve the quality of our people, build our brand and have our billionaires in USD who can drive the world economy as per 'World Economic Forum' visionary principals... But, as of now, Tanzania is here only to provide new business opportunities for the existing WEF members!”

But, this is not for lack of natural endowments, the Chairman stated...

“Tanzania has quite a unique number of strong assets to be taken as comparative advantage vis-a-vis other countries in Africa and the world,” Mwakyembe says.

“Tanzania is said to have peace and stability; abundant natural resources; stable macroeconomic performance; a good fiscal regime – and, lately, improved infrastructure facilities connecting all parts of Tanzania...

“The three major ports of Dar es Salaam, Tanga and Mtwara function as hubs for traffic emanating from, and destined to, the landlocked neighbouring countries of Uganda, Burundi, Rwanda, Zambia, Malawi and the Democratic Republic of Congo (DRC),” he said.

Moreover, “Tanzania is not a unique investment destination without its own resources... How best can these resources be tapped and used for the benefit of Tanzanians – and investors in general?

“This is purely a policy issue. I do advise our Government to make a provision for investors to partner with Tanzanians – both individuals and companies – in joint ventures. The Government and private sector companies need to mobilize their own internal resources to stimulate short- and long-term development of our resources,” he stressed.

For his part, the executive director of the Consumer Society (TCAS), Bernard Kihiyo, said “Tanzania beyond WEF should be changing its mindset regarding the responsibility and ownership of our own development.

“The situation we have adopted for now will not get us anywhere. Lack of self-confidence is apparently one of the greatest problems facing Tanzanians today. A survey conducted upon one thousand students from five Tanzanian Universities sought to establish their most difficult personal problem.

“Eighty five per cent listed 'lack of confidence' as the greatest stumbling block for them. It can safely be assumed that the case is the same for an equally large proportion of the general population,” Kihiyo stated.

“Everywhere you go, you encounter people – be they politicians, workers, farmers, men and women – who are inwardly afraid; who shrink from life; who suffer from a deep sense of inadequacy and insecurity; who doubt their own powers and capacity. Deep within themselves, they mistrust their ability to meet responsibilities – or to grasp opportunities!”

An economist by profession, Kihiyo said “Tanzanians are always beset by the vague and sinister fear that something is not going to be quite right. They don’t believe they have it in them to be what they what to be – and, so, they try to make themselves content with something less than that of which they are capable... And in most cases, such frustration of powerlessness is unnecessary.”

According to Kihiyo, “Tanzania’s entire education system, as well as Government institutions, civil societies and politicians, should work toward building confidence in Tanzanians. The Government should stop preaching the 'dependence approach' so as to remove the growing dependency attitude, overcome the inadequacy attitude, avoid superficial solutions, and work on speed and quantitative expansion while ignoring quality!

“To that end, the government will have to work with strategic partners such as WEF – but only for stronger reasons i.e. technology transfer, cross-industry knowledge sharing and the like.

“We have to seriously work on promoting intellectual engagement and innovation, to catalyze links between industry and universities which intend to help expand industry through creative innovation, to support all self-groomed talents and innovation...

“This is so as to provide a soul of the nation’s advancement and the everlasting driving power of national prosperity. We don’t have this for now; it might sound childish... But it is very important for Tanzania in order to be competitive,” he concluded

Source; http://www.businesstimes.co.tz/index.php?option=com_content&view=article&id=93:world-economic-forum-for-africa-any-real-long-term-&catid=1:latest-news&Itemid=50

How Care-free Attitude is Source of Consumer Woes

2010-03-18T03:36:00.001-07:00

Speak no evil, How unquestioning attitude of Tanzania consumers is source of shoddy services
By Sharifa Kalokola

When Nicodemus Masanji, 50, discovered that he had bought a fake pesticide for his crops, he felt hopeless. For weeks, he watched helplessly as his once fertile three-acre cotton field in Geita District was reduced to worthless grassland.

“I don’t understand what really happened because it was the same pesticide that I have been using for years, except that this time it worked against me,” says Masanji. A month before he bought the pesticide at a local dealership last year, he had a promising cotton yield.

But all was gone in a flash. “The pesticide was fake, but there was nothing I could do about it,” notes the former farmer, who is now selling second hand clothes and Chinese sandals he orders from Kariakoo.

Masanji is disillusioned with the process of seeking recourse against the trader for the losses he incurred. Like the majority of Tanzanian consumers, he sees his case as something “that happens”. He argues: “Even if I were to complain, who would listen to me? Going to court will waste your time and money.”

A recent study conducted by the Tanzania Consumer Advocacy society (TCAS) shows that over 90 per cent of Tanzanians are not aware of their consumer rights.

The majority of the victims cited in the study did not know they had the legal right to demand compensation for market abuses.

And according to the study that was conducted in five regions - Kilimanjaro, Dar es Salaam, Coast, Arusha and Mwanza – most of the affected are women.

“Many people do not know when their consumer rights are violated, and the few who seem to understand do not file complaints against their service providers with relevant authorities,” Bernard Kihiyo the Executive Director of TCAS says.

The study is part of a baseline survey aimed at assessing the extent of the problem, he adds, noting that there are plans to establish a non-governmental organisation to protect consumers from shoddy services, as well as fake and risky products.

Uncritical “We have a lot of work to do to convince local consumers to know their rights, and seek recourse with relevant authorities when their rights have been violated,” he says.

Generally, the idea of complaining against shoddy services or when one discovers that they have bought a fake or dangerous product is not common among local consumers.

“A lot of people tend to be uncritical when it comes to what kind of service or product they get from a supplier,” says Kihiyo. The problem is rampant in the hospitality sector, where most hotels tend to take advantage of ‘uncomplaining customers’ to get away with shoddy services.

“It begins with the belief among too many people that they are at the mercy of providers of services – ironically, here the supplier is given the status of benefactor, or a boss who is supposed to be feared,” observes Andrew Chove, a Dar es Salaam hotel manager.

Several cases of people who are hospitalised after consuming toxic foods or buying fake or expired drugs remain with the victims.

In January this year, over 40 people from two families were admitted to Maweni hospital in Kigoma Region after eating poisoned food. They told the police that they started feeling unwell after having ‘ugali’ for lunch.

Both families had earlier bought maize flour from the same shop. The incident brought back memories of the tragedy that struck Kagunga Village in the same region 10 years ago when 10 people died after eating ugali prepared from poisonous cassava flour. ‘Talking to deaf ears’

There are more similar cases that go unreported. Ms Blandina Ilas, a chef with a Dar es Salaam hotel, says she is still recovering from the side effects of a prescribed malaria drug she bought from a local hospital pharmacy but was not told it contained sulphur, which she is allergic to.

“What I fail to understand is that I bought this from a pharmacy in the same hospital that I had been admitted, and these people could not read the prescription or medical report to see what allergies I have,” says the 32-year-old.

However, she didn’t report the case or file a complaint, even after she was readmitted to the same institution and paid extra costs.

“I don’t believe complaining would have changed much because in most cases you will be talking to deaf ears, and they usually do nothing,” she says.

But consumer rights group, TCAS, says the problem is not simply with providers of services. “When a case is presented to us we fight for the consumer, but we have noted that people don’t complain even in worst-case situations,” notes Mr Kihiyo.

In addition, the TCAS boss blames widespread complacency among Tanzanian consumers on socialism.

According to him, nobody would dare complain against shoddy services during the era of socialism because the government was the sole supplier and distributors of most goods and services.

“Everything was under state control, and it was inconceivable for an ordinary person to complain against a government service provider; apparently, the majority Tanzanians are yet to shed this culture in this free market economy.”

But Dr Semboja Haji, an economic researcher at the University of Dar es Salaam, does not see it that way. He blames the complacency on lack of competition in several sectors. “The problem of consumers fearing to speak out and demanding their rights is not just in Tanzania, but also in many poor nations,” he says, adding:

“We still have fewer service providers in many areas compared to the high number of consumers, who are mostly uneducated.” Corroborating, Dr Fortunatus Sunghwa, a laboratory scientist who lived in Japan for two years, says in the developed world where competition is high “the consumer’s voice is heard.”

“The services there are almost perfect, except that sometimes you encounter long queues on two open counters instead of, say, five available.” A programme officer with TCAS, Jehovaness Zacharia, attributes the “see no evil, say no evil” attitude among most local consumers to their “quest for cheap products and services.”

“Most people want to buy the cheapest thing they can lay their hands on, and at the end it doesn’t come that cheap,” she notes. However, she says the consumer body will use this year’s World Consumer Rights Day tomorrow (March 15), to highlight the rights of consumers; lobby support for those rights to be respected and protected and provides a forum for exposing the market abuses and social
injustices, which undermine those rights.

“This year, our theme is: 'Our Money, Our Rights', and the message we want people to get is that they have both the right to go for cheaper items and to bring up any form of market abuse that undermines their rights,” she says.

http://www.thecitizen.co.tz/sunday-citizen/38-sunday-magazine/715-how-carefree-attitude-is-source-of-consumer-woes

Consumer Rights Directive might not feature UK right to reject, says Reding

2010-03-18T02:00:00.000-07:00

OUT-LAW News, 15/03/2010
The European Commissioner's consumer law chief has promised a 'breakthrough' on plans for a new Europe-wide consumer law but has said that existing UK rights cannot be safeguarded.

The Commission's proposed Consumer Rights Directive faced opposition in the UK because the process of harmonising law across the EU actually reduced UK consumers' rights to reject goods.

Vivian Reding, EU Commissioner for Justice, Fundamental Rights and Citizenship, who is responsible for consumer law, said that she plans to resurrect the Directive.

"This legislation needs to be the cornerstone for consumer protection in the Single Market in the coming years," she said. "It is therefore my priority to work with the European Parliament and Member State governments to make a breakthrough on this important legislation. The proposed law must balance businesses' need for legal certainty with a guarantee for the highest level of consumer protection."

eding said that while she would address the problem of an erosion of consumer rights in some countries, such as the UK, it may not be possible to protect existing rights, and that the remedies for defective goods that UK consumers are guaranteed might not form a part of an eventual EU-wide law.

"The relationship between the consumer remedies and the national contract law remedies is not always clear," she said. "In the UK, there is a right to reject a product. In France, consumers can have a guarantee for hidden defects in a product. These are typical examples. I do not yet know whether the prospect of achieving full harmonisation of all the remedies for defective products is realistic."

"Full harmonisation of these cross-border rights means that EU countries may have to adjust some national rules that go further than the proposal," she said. "This has led to concerns among Member States, consumer organisations and European Parliament members that the level of protection would decline and that consumers would be worse off. There are also concerns that full harmonisation makes consumer protection inflexible and curtails the national legislators' ability to react quickly and appropriately to new market developments."

"These are legitimate concerns, and I will address them. In my view, consistently basing the proposal on the most stringent rules that already exist in the 27 Member States is not necessarily the most proportionate way to help consumers," she said.
Reding said that one way to address the complex issues would be to introduce two-tier regulation, differentiating between different kinds of consumer sales.

"I am … going to look at whether the harmonisation in the Commission's 2008 proposal is sufficiently targeted towards those issues that have the most benefit from a Single Market point of view," she said. "A possibility could be to go for fully harmonised rules on distance contracts and allow diverging national rules for face-to-face contracts. Workable fully harmonised rules for the online world could then pave the way for more harmonisation for off-line contracts at a later stage."

The Directive which Reding wants to put back on the political negotiating table was controversial in the UK and is still opposed by UK consumer rights body Consumer Focus.

"Hopefully it won’t progress in anything like its current form," Lola Bello, senior policy advocate at Consumer Focus, said last month. "Along with other nations with strong consumer rights, the UK has been lobbying hard for changes to this Directive."

Government legal reform bodies the Law Commission and the Scottish Law Commission were asked to examine the issue last year and advised the Government to oppose the abolition of the right to reject.

UK Market Abuse “Unacceptably High”, Says Financial Watchdog Chief

2010-03-18T01:53:00.001-07:00

Jennifer Thompson
Hector Sants, chief executive of the Financial Services Authority (FSA), has said that market abuse in the financial services sector is at an “unacceptably high level.”

Although he said that there was no evidence abuse was worse in the UK than in other major financial centres, he called for more action in tackling the problems of insider dealing and other examples of malpractice.

"Our benchmark should seek to have a market that participants really believe to be clean and fair," Mr Sants told the Sunday Telegraph. "I think that if you were to ask the market participants, they would share my view that there is too much market abuse," the former investment banker added.

The FSA is set to increase its workforce with an extra 460 members of staff, taking the total number to 3,700. The increase in employees, whose roles are expected to be elaborated on in an FSA strategy paper later this week, underlines the more proactive role the organization wishes to play in regulating the UK financial services industry.

Last week it announced the successful prosecution of a former employee at stockbroker Cazenove who was found guilty of insider dealing. An investment banker and his wife were today charged with insider dealing with the FSA currently seeking the extradition of a third suspect in the French overseas territory of Mayotte.

Source; - http://www.newstatesman.com/...and.../financial-services-market - United Kingdom

Know Your Consumer Rights: 10 Top Tips

2010-03-11T07:30:00.000-08:00

Posted by Ally Seleman Goronya
1st.March.2010
The following are 10 top tips when shopping
1. Not my style: You might be surprised to learn that, if you buy something in a shop, you do not have the right to a refund if you later decide you do not like it.

2. Six month rule: It’s worth being aware that if you make a claim for the repair or replacement of faulty goods within six months of purchasing them, it is actually up to the retailer to prove the item was not faulty when it was originally sold to you.

3. No receipt required: Contrary to popular belief, you do not actually need a receipt to obtain a refund for faulty goods. What you are likely to need is proof of purchase – but a bank statement, cheque stub or credit card slip should be sufficient.

4. Online is fine: If you buy goods over the internet, you have the right to a seven-day ‘cooling off period’ from the date they are received. You can send your items back in return for a full refund, no matter why you have rejected them – and even if it’s because you have simply changed your mind.

5. Returning items to a retailer: When you buy something, your ‘contract’ is always with the retailer, not the manufacturer. Therefore, you should always take a faulty item back to the shop where you originally purchased it.

6. Fit for purpose: Any goods you buy from a retailer should be fit for purpose and of satisfactory quality. If they are not, you are legally entitled to claim for a refund, repair or replacement.
7. Act quickly: If your goods are faulty and you wish to claim a full refund, you must return them to the retailer within a reasonable period of time.

8. Smarter sales shopping: You are not entitled to a refund on sale goods if you were made aware by the retailer that the goods were faulty or if the fault you are concerned about was obvious at the time of purchase. Also, if you decide you no longer like the goods, you are not entitled to a refund.

9. Nearly new: If you buy ‘nearly new’ second hand items, your rights to a refund, repair or replacement are similar to those you would have for new goods. However, the law will not expect second hand goods to be of the same quality as brand new ones.

10. Stick up for your rights: If a retailer is failing to acknowledge or respond to your consumer rights and you live in England or Wales, you can file a claim against with the small claims court (provided your claim is for under £5,000).

Source;
http://www.which.co.uk/news/2010/03/10-crucial-consumer-rights-facts--204877Consumer rights guides

It's National Consumer Protection Week in USA

2010-03-11T07:16:00.000-08:00

March 7-13 is National Consumer Protection Week (NCPW) 2010. It's a week the government will devote to providing free resources and information to better inform consumers how and where to spend their money.

President Obama's "Presidential Proclamation" in a March 5 White House Press Release explained that NCPW "gives all Americans an opportunity to become better-informed consumers."

From the president's proclamation:
"I call upon government officials, industry leaders, and consumer advocates across our Nation to share information about consumer protection; and I encourage all Americans to learn more about marketing and business, whether they are shopping at their local store or in the global online marketplace."

Obama said his administration is committed to protecting American consumers. Because of that, he signed into law the CARD Act, which went into effect last month, and he also recently established the President's Advisory Council on Financial Capability, "which is looking for new ways to help individuals make informed financial decisions," according to the press release.

CONSUMERS ''UNAWARE'' OF RIGHTS TO RETURN ONLINE GOODS

2010-03-11T07:03:00.000-08:00

Despite online purchases accounting for 10% of total retail sales, UK consumers are unaware of their right to return goods, a government survey shows. Consumers are unaware of additional online shopping rights.
UK consumers may be the biggest online shoppers in Europe, but we are less inclined to return goods bought via the internet than those purchased on the high street, research reveals today.

A survey for the government found that more than 60% of shoppers were less likely to take back goods purchased online, compared with items purchased direct from shops.

Tellingly, consumers also showed their ignorance and confusion about their legal rights for both types of purchase when it comes to refunds. Many did not realise, for example, that those buying online had the extra right of a seven-day cooling-off period.

UK consumers are ranked as Europe's biggest online shoppers, having spent £38bn last year, which accounts for 10% of total UK retail sales.
The research was carried out by the Department for Business, Innovation and Skills for a Know Your Rights campaign run by the government-funded Consumer Direct.

It found that three-quarters (77%) of UK consumers did not know there were differences between online and high street consumer rights, while more than one in 10 (13%) admitted to not being sure of their consumer rights when making online purchases.

The consumer minister, Kevin Brennan, said: "It is important we all know that most online goods can be returned with no questions asked within seven days. We want confident consumers who can assert their rights and get a good deal."

The survey revealed that consumers were just as confused when shopping on the high street. Two-fifths thought that retailers always had a right to refuse a refund if they didn't have a receipt, and one in 10 believed goods could not be returned once they have left the store.

Michele Shambrook, operations manager for Consumer Direct, said: "We want consumers to be more confident when shopping on the high street or online. People who are knowledgeable about their rights are more likely to get a fair deal, save money and resolve problems when things go wrong."

Consumer rights: top tips
1. If you buy goods on the internet you have the same rights as if you were shopping on the high street. In addition, you have the right to a seven-day cooling-off period from the date you receive the goods, with the right to a full refund regardless of the reason for return. However, this doesn't apply in some situations, for example if the goods were personalised for you, were perishable, or are not in the same condition as when they were delivered.

2. When you buy goods your contract is with the retailer not the manufacturer, and you should always go back to the retailer in the first instance to request an exchange or refund. If you have a manufacturer's warranty you can contact them as well as the retailer. And don't delay – act as soon as you discover the fault.

3. You do not need a receipt to obtain a refund for faulty goods. However, you may be required to show proof of purchase with a credit card slip or bank or credit card statement.

4. Although you do not have the legal right to take back goods bought on the high street just because you have changed your mind, many stores do offer a "no questions asked" refund or exchange policy. Check the store policy when you buy.

SOURCE; Telegraph.co.uk

ONLINE BANK FRAUD DOUBLES IN TWO YEARS IN UK

2010-03-11T06:48:00.000-08:00

By Harry Wallop, Consumer Affairs Editor
Published: 7:30AM GMT 10 Mar 2010
Online banking fraud has doubled in the last two years, with customers losing £60 million from criminals last year. Official figures from the trade body UK Payments Association indicated that online banking fraud increased to £59.7 million last year. This was an 18 per cent increase on the year before and more than a doubling since 2007 when there were £22.6 million of losses.

As more and more consumers are persuaded to go online by their banks, criminals have followed them. Most of the fraud has happened by criminals – usually based overseas – attacking consumers' computers without their knowledge.

The most common technique is for criminals to install malware into a consumers' computer – a piece of software that can sense a users' keystrokes. This means that a criminal, despite sitting on the other side of the world, can tell the password and account number of an online bank account that a customer is typing in.

Malware is installed invariably without the consumers' knowledge when they click on a link to a website or an attachment to an email.
Graham Cluley, a leading expert on internet fraud at Sophos, a security firm, said: "Every day we see 50,000 new pieces of malware from around the world coming into our labs. The criminals are always creating new, ever more sophisticated ways of attacking people's computers."

The figures were published alongside data indicating that credit card fraud fell significantly last year, thanks to chip and pin technology and more secure retail websites. The padlock system and "verified by Visa" scheme, which requires shoppers to tap in a password when paying for items on a website, helped overall card fraud fall from £610 million to £440 million.

Despite the fall, this still equates to £10 for every adult in the country. The UK Payments Association said it remained concerned about the increase in online banking fraud. As bank branches close, banks are persuading consumers to opt for online banking, which costs less for the banks to operate. The number of customers that use online bank accounts has increased from 15 million in 2005 to 22 million last year.

David Cooper, chairman of the fraud control steering group, the payment industry’s leading fraud prevention group, said: "The industry remains committed to containing and reducing all areas of fraud. To this end, we will continue our partnership approach – working with law enforcement, retailers, consumers and the Home Office – to tackle fraud head-on.”

Source; http://www.telegraph.co.uk/finance/personalfinance/consumertips/banking/7405586/Online-bank-fraud-doubles-in-two-years.html?utm_source=tmg&utm_medium=TD_fraud&utm_campaign=pf1003pm

Calls for regulation on traditional Chinese medicines - UK

2010-02-20T01:15:00.000-08:00

UK PRESS
An Old Bailey judge has called for new regulation on traditional Chinese medicines as a "doctor" who sold cancer-causing pills walked free from court. Ying "Susan" Wu sold the tiny brown "Xie Gan Wan" tablets to Patricia Booth for more than five years from a shop in Chelmsford, Essex. Mrs Booth, 58, began taking the pills three times a day to treat a skin condition but they ended up destroying her kidneys and giving her cancer.

But Judge Jeremy Roberts ruled that, as the sale of traditional Chinese medicines was totally unregulated, there was no evidence that Wu knew of the potential harm.

The judge threw out a charge of "administering a noxious substance" against the 48-year-old, of Holland-on-Sea, Essex, and she pleaded guilty to five lesser counts and was given a two-year conditional discharge.

Giving his ruling he said: "It is an unfortunate fact that there is no system in this country to regulate Chinese herbal medicine retailers like Ms Wu by requiring them to be registered with an appropriate professional body or trade association.

"Somebody like Ms Wu is entitled to set up shop as a herbal medicine retailer and to operate entirely unsupervised.There may be a gap in our law here which the Government might wish to address."

The court heard that Mrs Booth took the medicine, which she bought from the Chinese Herbal Medical Centre in Chelmsford, from February 1997 to November 2002. She said she believed it was a "safe and natural alternative" to the antibiotics she had previously been taking for her skin condition - and which she feared could damage her long-term health.A months after she stopped taking the Chinese pills, she was taken seriously ill and had to undergo an urgent blood transfusion.

An analysis of the pills showed they contained a banned substance, aristolochic acid. Her health deteriorated to such an extent that her kidneys were "destroyed" and she had to have them removed, she contracted urinary tract cancer, and she later suffered a heart attack.

The Register of Chinese Herbal Medicine, which represents more than 450 practitioners, said the case highlighted "the urgent need for the statutory regulation of herbal medicine in the UK".

Source; http://www.google.com/hostednews/ukpress/article/ALeqM5hxjPS1wJu0UH_xzBY-IsioYSt9og

Ouestion to Ask ourselves
What is the current situation regarding the above in Tanzania ? kindly discuss

Millions of Britons Losing Money on Savings

2010-02-20T01:04:00.000-08:00

The Telegraph-UK
Millions of savers are losing money by putting their cash into a savings account due to poor investment returns and the increasing cost of living, it has been disclosed. Savers are suffering despite Barclays, Britain third-largest bank, reporting profits of £11.6 billion for 2009.

Rising inflation is eroding the spending power of savers’ cash and, combined with historically low interest rates, is leaving them with less money than when they started. Savers have already been badly hit by shrinking rates of return following Bank of England interest rates dropping to 0.5 per cent.

But the jump in inflation to 3.5 per cent, released in official figures yesterday, came as a fresh blow to hard-pressed pensioners and those trying to live off their savings. Politicians and financial experts said it will leave millions of savers "devastated".

With the consumer prices index rising to 3.5 per cent, basic rate taxpayers now need to earn a rate of 4.38 per cent on their savings before they begin to see a real return, while higher rate tax payers need to earn 5.83 per cent.

But with typical rates on a no notice savings account dropping to 0.02 per cent to 0.73 per cent in the past month, it means basic rate taxpayers are losing the equivalent of 2.92 per cent a year, with higher rate tax payers losing 3.06 per cent, according to the figures from personal finance statisticians Moneyfacts.

Just two accounts out of a total of 1,101 savings accounts produce a real rate of return for higher tax payers once tax and inflation are taken into account. However, these accounts are only for regular savers and not for those with a lump sum to invest, according to the data produced exclusively for The Daily Telegraph. And total of only 52 accounts produce a real return for basic rate taxpayers.
S
avers are suffering despite Barclays, Britain’s third-largest bank, reporting profits of £11.6 billion for 2009 and speculation that the excessive bonus culture is returning to the City. Vince Cable of the Liberal Democrats, said: “Negative real interest rates are a killer for savers.

“It will not make it possible for Britain to switch from being a nation that is excessively in debt to a society based on prudent saving.” Darren Cook, a spokesman for Moneyfacts said: “Each month, inflation is cutting deeper into people’s spending power and lower savings interest rates are creating an even bitterer pill to swallow.

“Those who are relying on their savings pot to subsidise other income are seeing their savings being eroded. “Savers are hoping that this is just a short spike in inflation, but will lead to further aggravating issues if inflation does not fall as quickly as it is going up.”

David Black, a banking expert at personal finance researchers Defaqto, said: “Those reliant on savings interest to supplement inadequate income will be devastated by this double whammy of rising inflation and low interest rates.” The Consumer Prices Index, the Government’s preferred measure of inflation, jumped to a 14-month high of 3.5 per cent last month, the Office for National Statistics disclosed.

The rise was blamed on the return of Value Added Tax to 17.5 per cent. The Government had previously reduced VAT to 15 per cent on a temporary basis until last month to try to boost consumer spending and ease the recession. The Retail Prices Index – which includes the cost of mortgages and housing - also rose sharply in January to 3.7 per cent.

Economists said the rise in inflation increases the prospect that the Bank of England will maintain the Bank Rate its current level. Howard Archer, an economist at Global Insight said: “When interest rates finally do start to rise the increases are likely to be gradual.”

Individual Savings Accounts offer an additional small glimmer of hope for basic rate taxpayers, but there is nothing available to higher rate taxpayers. National Savings & Investments offer three and five year Index Linked Certificates that are tax free and pay 1 per cent above RPI inflation.

http://www.telegraph.co.uk/

UK Government invests £4.3m in crackdown on Cyber Crime

2010-02-17T05:54:00.000-08:00

By Warwick Ashford
Monday 15 February 2010
The government is to invest £4.3m to fight criminals who use e-mails and websites to con UK consumers out of £3.5bn a year. Some 73% of adults in the UK received a scam e-mail and three million consumers were victims of online scams in the past year, according to the Office of Fair Trading (OFT).

The money will be invested over three years in an OFT specialist cyber enforcement team to fight online crime and restore consumer confidence in online shopping. Some of the money will also be used to provide funding for Trading Standards.

The government's Digital Britain Report published in June 2009 highlighted the need to ensure consumers are protected and confident when shopping online."Our investment will help the OFT and Trading Standards to put in place new specialist teams, training and technology to take the fight to these criminals," said consumer minister Kevin Brennan. The OFT team has begun training with an international expert, working in a new laboratory with specialist equipment to support the OFT's enforcement work.

The government initiative will also see new highly trained Trading Standards enforcers with specialist equipment in England, Scotland and Wales. Enforcers will focus on fake products and traders, counterfeit ticket sales and scam websites aimed at duping consumers into paying for

"The enforcement team will be looking at the activities of a wide range of commercial websites and taking action in cases where consumer rights are abused," said Heather Clayton, senior director for the OFT. The OFT will coordinate which enforcer is best placed to take action on a particular issue and will focus on the most serious cyber scams.

Where appropriate, cases will be passed on to the Police Central eCrime Unit and the Serious and Organised Crime Agency, as well as the Companies Investigations Branch of the Department for Business, Innovation & Skills (BIS).

Source; http://www.computerweekly.com/Articles/2010/02/15/240299/Government-invests-1634.3m-in-crackdown-on-cybercrime.htm

Tanzania: financial reforms fail on consumer protection

2010-02-01T04:49:00.000-08:00

From the Business Times issue of Friday, 27 November 2009 11:51
By MNAKU MBANI & ERIC TOROKA

ALTHOUGH Tanzania has taken major efforts to reform the banking and financial institutions sector over the last two decades, the issue of consumer protection has remained virtually untouched by the 'reforms.'

This situation has led to increasing abuse of good business practices by many of the financial institutions and banks, as well as a singular lack of fairness and transparency in dealing with customers.

"The providers of financial services in Tanzania need to understand that, as long as they continue to gain unfairly from their customers.... they are nonetheless sowing the seeds of their own destruction...," said Daimon Mwakyembe, chairman of the Tanzania Consumer Advocacy Society (TCAS).

Presenting a paper recently on 'The Quality of Financial Services: a Critique From Consumers' Perspective,' Mwakyembe cited as an example of bad practice the banks and financial institutions which “have continued to overcharge consumers in terms of fees, interest rates and commissions – while others reject low income consumers out of hand as 'unbankable.'”

The occasion was a forum organized by the Government Controller & Auditor-General (CAG) in the nation's commercial capital, Dar es Salaam.

TCAS is a private, voluntary nongovernmental, non-partisan and nonprofit making organization that was registered as a company limited by guarantee in July 2007 under the Companies Act of 2002 (Chapter 212 of the Laws of Tanzania).

The Society’s mission is to provide an advocacy platform that would make consumers' voices heard, raise consumers' awareness of their rights, build consumers' ability to claim their rights, as well as make markets accountable and more responsive to consumers' needs and interests.

Observers say most of the banks and financial institutions operating in Tanzania siphon billions of shillings off their customers as a matter of course. This is partly because
of the latter's ignorance of their rights and dues, and partly because the reforms and extant legislation are silent on the matter.

Mwakyembe – who is a former director-general of the Tanzania Bureau of Standards (TBS) – said despite the reforms, fairness and transparency in the treatment of customers is not always ensured... And lack of capability on the part of customers is still being exploited negatively.

As a result, there is no mechanisms on how to curb abusive business practices by financial institutions at the national and international levels, and which adversely affect consumers.

Mwakyembe suggested that the (central) Bank of Tanzania and other relevant authorities need to urgently review the extant financial regulatory policies and legislation. The main objective this time should be to ensure that they – among things – reflect a wide view of consumer protection on ensuring proper business conduct.

It is noted that the Bank of Tanzania, which has the mandate to supervise the banking and financial industry as a whole, has no straightforward consumer protection guidelines.

He said this situation will not favour the survival of financial institutions in the long run.

"Good quality service is a product of right consumer protection and is, thus, the new paradigm that is defining – and, indeed, influencing – the entire economic sector and economic relations," he said.

The International Monetary Fund's review of regulatory systems in 2004 did (among other things) advise on “stipulation and clear identification of common regulatory themes for consumer rights promotion and protection,” Mwakyembe noted.

"Despite efforts in addressing the competitiveness of the financial sector, consumer abuse and rights violation are on the rise, and are directly affecting the economic welfare of many consumers," he stressed.

Noting that gthe main part of poor services in Tanzania's financial market is contributed to mainly by lack of consumers' awareness on their rights when making choices,h Mwakyembe stressed that "inadequate consumer awareness on their rights and obligations is the main stumbling block for realization of good services...

"Yet, if there is one area that the financial sector could use to address its economic malaise and ensure its sustainable future, it is through the provision of financial education to consumers.h

This would be in line with the implementation of the United Nations Consumer Protection Guidelines of 1999 which encourage Governments and institutions to work out clear, fair, guidelines that protect the interest of consumers.h

A research conducted in 2007 by the Finscope Group showed that, gin order to strengthen financial institutions in any country (including Tanzania), there is a need to promote financial capability to consumers.h

This includes gempowering people to be capable of managing their financial assets and liabilities, to understand their rights and responsibilities vis-a-vis financial institutions.h

Mwakyembe: "in my view, financial education to consumers should focus on building financial discipline, managing their incomes, boosting their saving behaviour and the promotion of risk mitigation," he concluded.

In another development, auditor-general of Sweden, Eva Lindstrom, commended the National Audit Office of Tanzania for taking the initiative to organise the forum which, she said, was پgrelevant and timely.پh

In these times of financial crisis, Lindstrom said, “Supreme Audit Institutions in many countries are challenged to properly address the audit of financial supervisory agencies that are aiming at consumer protection and mitigating the risks that large sums of taxpayers' money will have to be used for the rescue of the financial system.”

Noting that gthe events of the past year have highlighted the significance of financial supervision,h she said that financial markets and their institutions must operate in a highly competitive environment – and there will always be efforts made to circumvent the regulations.

gA strong, independently-organized financial supervisory authority is, therefore, of the highest importance for the stability of the economy and taxpayers.”

The global financial crisis also pointed to the importance of supervision of not only separate financial institutions, but also of the entire financial system.

Moreover, the Swede said, new regulations on financial markets will need to be introduced in the years to come, globally.

Supervision of cross-border banks will have to be improved – which will most certainly mean more cooperation between financial supervisory agencies in different countries.

Lindstrom observed that central banks failed to foresee the effects of the deterioration of markets that led to liquidity problems. To that effect, monetary policies need to take into account financial stability... And it is within the mandate of central bank to monitor and handle monetary conditions.

“The Supreme Audit Institutions have an important role to play in monitoring the operations of the financial supervisory agencies. Those agencies make up a vital part of the financial infrastructure, and when that infrastructure fails, the costs of that failure are most often transferred to the taxpayers,” she elaborated.

gThus we, as auditors, must make sure that we have the knowledge and competence required to audit these agencies.h

According to her, gauditing will create confidence in the system, an asset which is vital in promoting effective financial markets and stable economic growth.h

AS EAC COMMON MARKET LOOMS UP LARGE... Activists in Tanzania cry out for consumer protection

2010-01-27T06:17:00.000-08:00

The Business Times of Friday, 15 January 2010 10:53
BY ERIC TOROKA
A FULL Customs Union became a reality within the East African Community on January 1 this year ... And – as the Community hurtles into a Common Market regime that is tentatively slated to become operational come next July – activists in Tanzania have come to the fore in the fight for consumer protection in ways more than one.

In the looming advent of a Common Market, deliberate efforts need to be taken sooner than later to ensure effective protection of the interests of consumers as a whole.

Steps must also be taken to promote and enforce fair competition at the marketplace wherever and whenever possible, with the interrelated objectives of driving prices down, as well as improving the quality goods and services.

This should be in a win-win situation in which all stakeholders benefit: businesses and consumers in particular, and the economy at large.

The envisaged EAC Common Market – whose Establishment Protocol was signed by the Heads of State of the five EAC member countries in Arusha on November 20, 2009 – will come into effect across the entire Community on July 1, 2010... But only – and if only – the National Legislatures of the five States: Kenya, Uganda, Rwanda, Burundi and Tanzania ratify the Protocol in the interim.

In the event, certain quarters in Tanzania consider it prudent for the relevant authorities and economic moguls – including the Government and players in the private sector – to urgently put in place the requisite mechanisms for ensuring that Tanzania benefits maximally from the dual arrangements of a Customs Union and a Common Market.

Speaking to Business Times in an exclusive interview held in Dar es Salaam this week, the executive director of the Tanzania Consumer Advocacy Society (TCAS), Bernard Kihiyo, said Tanzania requires to identify, prepare and adopt a serious approach that would ensure smooth, 'mortise-and-tenon' entry of the country into what is a relatively new economic and financial regime.

"We are having a laissez-faire approach on very important issues and, as such, need to remove all barriers to creative thinking sooner than later,” Kihiyo said, further counseling against negativisms like “ 'the Customs Union, Common Market won't work;' 'we don’t have capital;' 'why change;' 'we can't get there;' 'we are better off as it is'; 'may be in 20-30 years to come...' As Mwalimu Nyerere always said: 'it can be done play; just your part,'" Kihiyo elaborated.

In his view, the executive director says, “Tanzania will certainly benefit a lot from the envisaged Common Market. For starters, the country has a considerable store of comparative advantages that include a phenomenal endowment of natural resources which the other member countries don't have.

“These include precious minerals, swathes of forestry and fisheries, livestock, water resources, large tracts of arable land; a reasonably good climate, human capital, and socio-political stability/security.

“Then, its geographical location that puts Tanzania in an entrepot trading advantage vis-a-vis the six landlocked 'neighbouring' countries of Uganda, Rwanda, Burundi, Eastern DRC, Malawi and Zambia,” Kihiyo says.

But, all that notwithstanding, he says, “there still is a real need for the Government in Dar to invest heavily in the country's infrastructure and logistics. Among these are the need to revamp and otherwise put in place transport and transportation (including port and warehousing facilities), state-of-the-art telecommunications, as well as stable and adequate utility supplies (power, water, etc).

“If we want to excel under the proposed Customs Union and Common Market conditions, we must also revamp the country's legal and other regulatory/procedural frameworks; hospitality industry facilities; insurance and financial services; a highly educated/skilled workforce, and many other supporting facilities,” he enumerated.

“ There is indeed a need to invest heavily in the quality of labour that can produce goods and services for the expanded, more competitive regional market. We need to train lots of service providers on the concept of consumerism so as to enable them
render excellent customer services as a matter of course.

“We have to establish good policies that allow businesses and consumers alike to enjoy in full the benefits of a Common Market.

"Our business entities must undergo transformation in the way they regard, handle and treat customers. The conception of who a consumer is in the business context has to be changed from one of what is now regarded as a 'human cash dispenser' into an essential element for the healthy existence of businesses. Such a transformation has far-reaching effect on the provision of goods and services to customers, so that the servicing of the requirements of customers will be at the heart of market philosophy in all sectors of the economy.

'Politically-motivated slogans won't get us far in the socio- economic developmental stakes... We must leave no loopholes for unscrupulous players to take unfair advantage of the Common Market at the expense of 126m East Africans.'

“Not only would knowledge and practice of this concept aid in
improving the provision of quality services that would, in turn, lead to increased success in business at the coming regional Common market; it would also spell greater success in the local market as well," Kihiyo stated.

Noting that the Common Market will bring together about 126.2 million consumers with a combined purchasing power of about US$60 billion, Kihiyo said this “will certainly stimulate economic growth for the entire region... However, a lot of changes must be made in the way business is currently done.

"This is a big market which no business worth its name can ignore. There will be free movement of persons, labour, goods, services, and capital. There will be rights of residence.

There will be fewer or no market restrictions against any registered/licensed business entity to conduct business in any of five member states. But the most critical question one has to ask is, how far prepared are consumers and businesses in the region to meet the challenges of the EAC Common Market – and, in the event reap to the maximum possible the benefits of the new regime," he said, adding emphatically that “the region must be looked at – and seen – as a Bigger Picture!”

For his part, the chairman for Consumer Society, Daimon Mwakyembe, told Business Times that "part of the reasons which led to the collapse of the former EAC in 1977 was ideological differences. This shouldn’t be the reason this time!”

Noting that the 'new' EAC was officially revived on July 7, 2000, Mwakyembe said “all the five EAC member states are practising free market economy whereby the prices of goods and services are determined in a free market pricing system governed by the laws of supply and demand.

“However, a Common Market alone may not guarantee outcomes that are efficient and in the public interest. In the real world, the benefits of a Common Market do not exist in pure form – due to human nature of greed,” he said.

Nonetheless, consumers are likely to benefit more in a Common Market that outside one, he argued.

"For one, there will be more business players competing for custom and consumers' money. Hopefully enough, there might be certain improvements in the quality of goods and services supplied at a reasonable and competitive market prices," he said.

Nonetheless, Mwakyembe – a former director-general of the Tanzania Bureau of Standards – said one main worry is likely to remain: how violations of consumer rights can be curbed within the Common Market...

“ As of now, consumer rights violation at the single country level are on the raise with the passage of time... The respective Governments seriously need to formulate and adopt legislation, mechanisms and programmes that are designed to effectively regulate, sensitize and popularize among the EAC citizenry
regarding their rights and responsibilities as we rush along
and into a Common Market in a matter of a few months,” the chairman counselled.

Mwakyembe admits that “remarkable efforts have been taken in Tanzania in recent years that led to the adoption of important statutes for consumer protection and regulation of a free market economy.”

This was accomplished with considerable cooperation and help in cash and in kind from the World Bank, the Tanzania Government and Parliament, as well as other stakeholders.

Mwakyembe named the important extant statutes on consumer affairs adopted in this decade as including the Energy & Water Utility Regulatory Authority Act (2001); the Surface & Marine Transport Regulatory Authority Act (2001); the Fair Competition Act (2003); the Tanzania Communications Regulatory Authority Act (2003), and the Tanzania Civil Aviation Authority Act (2003).

Others are the Tanzania Food & Drugs Authority Act (2003); the Bank of Tanzania Act (2006), “and many other written laws.”

Among the earlier ones are, of course, the Tanzania Bureau of Standards Act (1975, revised in 2009 – although not yet adopted!); and the Weights and Measures Act (1982).

Commenting upon the matter, a former director-general of the Small Industries Development Organization, Epaineto Toroka, said “there is also a need to have central bodies to regulate the Common Market if and when it comes into effect.

Noting that "the EAC countries already have so many bodies regulating labour, services, goods and rights of residence at the country level,” Toroka said “if we go into the Common Market, we will need to have central bodies to regulate it, too... Market weaknesses and loopholes within the EAC will need to be addressed and dealt with accordingly, as no one country can do it alone," Toroka stressed.

“The most appropriate way forward for the EAC member states is to go into a Common Market bloc. However, there must be intensive advocacy on what is the Common Market will all be about; what are the benefits in it for ordinary Tanzanians, Kenyans, Ugandans, Rwandans and Burundians – and what the disadvantages are!”

The PR, Media & Communications Manager for the Dar es Salaam-based Serengeti Breweries Ltd, Teddy Mapunda, told this write that, “if Tanzanians – and, indeed the other EAC members – really want to have a positive outcome in the coming years, beginning especially in 2010, then consumer protection within the Common Market must feature prominently in it...

“But this requires strong political will and commitment from those in power; they should undertake what we in the trade call 'consumer protection crusade' for the betterment of individual consumers, citizens and other stakeholders as a whole.

Noting that mere slogans – mostly politically-motivated – will not get us far in the socio-economic developmental stakes, Mapunda called for the powers-that-be “to make sure that there will not be loopholes which would enable unscrupulous players to take unfair advantage of the Common Market – and at the expense of 126 million East Africans.”

Backers Fight for US Consumer Agency's Survival

2010-01-20T02:45:00.000-08:00

Fri Jan 15, 2010 5:12pm EST
Dodd may scrap consumer protection agency - sources
REGULATORY NEWS | BONDS
* U.S. business lobby wary, still concerned
By Kevin Drawbaugh and Rachelle Younglai

WASHINGTON, Jan 15 (Reuters) - Consumer groups urged the chairman of the U.S. Senate Banking Committee not to buckle to Republicans and bank lobbyists trying to kill the creation of an independent agency to protect Americans from risky financial products.

In an effort to win bipartisan support for a financial reform bill, committee chairman Christopher Dodd may scrap plans for an independent regulator to oversee mortgages and other financial products, sources have said.

The Consumer Financial Protection Agency (CFPA) is a central element of a financial industry overhaul that the Obama administration proposed last year. Watering down the agency would represent a major setback for the White House and big win for the slew of U.S. business groups that are firmly opposed to such a plan.

As reported by Reuters on Tuesday, support for the proposal is fast fading among committee members. [ID: nN12211768]
"We urge Chairman Dodd not to cave to the big banks and their army of lobbyists who have made killing the CFPA one of their top priorities," said Heather Booth, the director of consumer lobbying group Americans for Financial Reform. "If the big banks win, the consumers will lose," she said in a statement.

Late last year, Dodd introduced a sweeping draft bill to regulate everything from banks to the $450 trillion over-the-counter derivatives market.Senate Republicans immediately rejected his proposal. Now lawmakers from both parties are negotiating the draft's most controversial provisions, such as the consumer agency and how to handle troubled financial firms.

Dodd, who as chairman of the banking committee is leading negotiations over the bill, may reduce the scope of the consumer agency and instead make it a division of a new systemic risk regulator or a new super-cop for banks, sources have said.
Watering down the consumer agency could win Republican support for his entire financial reform bill -- a piece of legislation that Dodd could add to his legacy when he retires from the Senate at the end of the year.

INDUSTRY STILL WARY
Industry lobbyists remained wary of the potential changes. Opponents of the consumer group have said it will stifle financial innovation and raise regulatory costs. Meanwhile supporters say it is needed to protect consumers from dubious practices and products of financial services firms.

As proposed by the White House, and in the draft bill Dodd introduced last year, the CFPA would strip existing agencies such as the Federal Reserve of their consumer protection duties and centralize them in one organization.The U.S. House of Representatives last month passed a regulation bill that includes an independent consumer agency.

Consumer advocacy group Consumers Union also urged the Senate to preserve the new agency. "Consumers Union urges you not to allow these institutions to profit from their reckless behavior and then destroy any hope for legislation that would protect consumers from the kind of abusive financial practices that helped trigger our current economic crisis," the group said in a letter to U.S. senators. (Reporting by Kevin Drawbaugh and Rachelle Younglai; Editing by Tim Dobbyn)
Source; http://www.reuters.com/article/idUSN1521623920100115

Loan Sharks Force 100,000 Families into Debt This Year

2010-01-20T02:42:00.000-08:00

Households in £82 million debt to illegal lenders after taking out doorstep loans to fund Christmas
Laura Whateley
More than 100,000 of the UK’s poorest families will be crippled with £82 million of debt this year, after borrowing from loan sharks to fund Christmas, research has found.

Families took out an estimated £29 million in illegal doorstep loans over the festive period, at an average of nearly £300 per household. With interest rates on illegal loans averaging 825 per cent, households can expect to pay back over £800 during 2010. This suggests many families will still be paying off their debt next Christmas.

The Real Cost of Christmas report, authored by the think tank the Financial Inclusion Centre, was commissioned by Circle Anglia, an affordable housing provider, after it noticed an increase in the number of its residents being targeted by loan sharks. The report also found that the number of people using loan sharks has grown over the last three years from an estimated 165,000 to 200,000 a year in 2009, a 22 per cent rise.

Andy Doylend, of Circle Anglia said: “These figures are very concerning and demonstrate the scale of illegal lending across the UK. We hope that by turning the spotlight on loan shark activity we can help more people to seek help and get sound financial advice.

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“A simple step such as borrowing from a credit union or a community finance organisation instead of a loan shark could have saved the typical low income household £500 in debt repayments- more than enough to fund the whole of Christmas 2010 as well.”

Separate research carried out by Wherry Housing Association in Norfolk found that one in four tenants had been offered a cash loan. But 5 per cent said they were not given any paperwork showing how much they had borrowed or how much they owed, while 9 per cent said the amount they owed kept growing even through they made repayments and 3 per cent said they had been threatened with violence when they could not repay the money.

Faisel Rahman, of Fair Finance, the ethical lender, said: “Millions of pounds are being taken out of the pockets of the poor by illegal and extortionate lenders every year. As the credit crunch continues, more people are being left behind by mainstream financial services. This, coupled with the downturn on the economy, means 2010 promises to be a very difficult year for low income and vulnerable communities.”

Those who have borrowed money from a loan shark are under no legal obligation to repay the debt, which is why loan sharks often resort to violence and intimidation to force borrowers to pay up.

The Government has created specialist teams at Trading Standards to tackle illegal money lending, which Kevin Brennan, the consumer minister, said has already helped more than 10,000 loan shark victims write off £30million of illegal debt.
He said: “I’d encourage anyone who feels trapped by a loan shark to get help and advice as soon as possible.”

The Trading Standards Illegal Money Lending team offer a 24 hour confidential hotline on 0300 555 2222 for anyone who has been targeted by a loan shark, or believes illegal lenders are operating in their community.

Source; http://www.timesonline.co.uk/tol/money/borrowing/article6989378.ece

Consumer Rank Best, Worst Auto Brands

2010-01-18T00:47:00.000-08:00

January 18, 2010

Source; Yahoo
Toyota stays on top in consumers' eyes, but the lowest-scoring brands are already on the chopping block. Chevrolet, Ford, and Subaru jump in brand perception

For More Information;
http://autos.yahoo.com/articles/autos_content_landing_pages/1242/chevrolet-ford-and-subaru-jump-in-brand-perception/

FCC PRESS STATEMENT ON TBL AND SBL SAGA

2010-01-07T01:25:00.000-08:00

The Fair Competition Commission (FCC) wishes to confirm and clarify the statement made by the Honourable Prime Minister, Mizengo K. P. Pinda (MP) in the Parliament while responding to the impromptu question by Busega MP, Dr. Raphael Chegeni (CCM) Member of Parliament for Busega on Thursday, 29th October, 2009, as reported by the media. The question by the Honourable Member of Parliament was whether the Government was aware of the on-going beer wars between Tanzania Breweries Limited (TBL) and Serengeti Breweries Limited (SBL) and what the Government was doing to prevent the continuation of the nasty acts between the two.

The FCC wishes to confirm the answers by the Honourable Prime Minister that the Government is aware of the wrangle and that the FCC, which is the appropriate institution for dealing with competition issues, is handling the problem.

A. THE WRANGLE BETWEEN TBL AND SBL IS AT THREE LEVELS:
1. TBL and East African Breweries (EABL)
In 2002 TBL and EABL agreed to divide up the beer market between Kenya and Tanzania so that they do not compete in their respective areas of dominance. This union was blessed by Government even though there was no merit except that of monopolizing their respective markets. As a result of that union, there ensued many negative effects: Kibo Breweries Limited closed down with employees in excess of 800 being made redundant in Moshi; TBL had about 96% of the Tanzania beer market and the consumer had to suffer several increases of beer prices.

Meanwhile, SBL, which had about 4% of the Tanzania beer market share, was increasing their production capacity. At the moment they have about 16% of the Tanzania beer market which is nearly the market share which Kibo Breweries Limited held before they were closed down.

2.SBL and EABL
EABL and SBL have been trying to enter into agreement which is similar to the TBL/EABL agreement. The attempted EABL and SBL has been the bone of contention between TBL and EABL. This dispute is being dealt with outside Tanzania.

3.TBL and SBL
SBL through their advocate filed a complaint against TBL with FCC in September 2009 accusing the latter for abuse of dominant position in the market. Upon receipt of the said Complaint, FCC immediately wrote to TBL attaching SBL’s Complaint and requesting them to respond to SBL’S allegations.

TBL through the services of their Advocates responded to the allegations.
The FCC is still investigating the facts of the case. However, this is a matter pending before the Commission and therefore, under the sub-judice rule, it will not be proper to comment on it as this will interfere with the judicial process.

Suffice is to state that once the case has been determined, FCC will give a statement of the facts and whosoever is aggrieved with the decision of the Commission will be at liberty to appeal to the Fair Competition Tribunal.

B. REMOVAL OF SBL ADVERTISEMENTS
There is another important issue, which FCC wishes to clarify as matter of urgency. This is about the removal of SBL advertisements or anybody’s advertisements for that matter.

The unlawful removal of advertisement in public place is a destruction of somebody’s property. This is an offence under the Penal Code Act (Cap 16 Re 2002).

Section 326(1) of Penal Code states as follows:- “any person who willfully and unlawfully destroys or damages any property is guilty of an offence, which, unless otherwise stated, is a misdemeanor, and he is liable, if no other punishment is provided, to imprisonment for seven years.”

This is a criminal offense which is penal and should not await the FCC determination of the competition issue. Therefore the unlawful removal of advertisement should be reported to the appropriate authorities and the necessary action taken immediately in order to maintain peace and order in society.

C.ROLE OF CONSUMER
Further, it is important to state here that the Tanzanian beer consumer has a role here. What is being fought here is their custom. Consumers have the right to choose and the obligation to make their views heard through their respective consumer associations/organisations and thereupon take up the challenge of defending their right to choose the beers of their preference in the marketplace.

Therefore it is upon them to decide who is serving their long term interests, the one who is allowing the last consumer to choose what to drink or the one who is curtailing even the display of goods for consumers to choose.

D.ROLE OF WHOLE SELLERS, DISTRIBUTORS AND RETAILERS
The whole-sellers and beer retailers also should show leadership and genuine service to consumers. They should not accept monetary incentives not to stock competitors’ products when they know by so doing they are annoying some of their consumers and also are helping to break the law.

E.THE ROLE OF COMPETITION IN A MARKET ECONOMY
The ultimate goal of effective competition in the market is to enhance efficiency at all levels of production and distribution of goods and services. It is through competition that prices, services and consumer choices can be assured. Also it is through competition that innovation in production, distribution and management is automatically generated. Therefore, any efforts which curtail competition pressure in a given economy affect sustainable development of that economy. Such efforts affect even the sustainability of Government revenues. In short the social welfare is highly compromised. Tanzanians need not go further to learn the effects of rampant monopolies in the economy because that is where we have just come from.

Business community should strive to serve the wider consumer interests and uphold to competition rules rather than inclining to serving the narrow interests of the competitors.

The choices of consumers strongly affect business behavior and their products. Consumers respond negatively to corporations involved in malpractice.

Godfrey E. Mkocha
DIRECTOR GENERAL
Saturday, 31st October, 2009

Thank you for being TCAS Supporter in year 2009

2010-01-06T05:18:00.000-08:00

Dear Colleagues and Supporters,

On my behalf and on behalf of everybody at Tanzania Consumer Advocacy Society (TCAS. I would like to convey to you personally, a warm new year greetings and regards from our entire TCAS family.

We thank you very much for being TCAS’s supporter, as you stood by our side as we faced challenges and victories, battles and successes. Without your support we could not continue to fight and work for a good course in favor of Tanzania Consumers and world at large.

Thank you for making year 2009 a memorable one. We are looking forward to celebrate many more successes in 2010.

Holidays are over; business as usual in 2010. Let us all strive to compliment government's efforts on improving the situation of consumers all around Tanzania and the world at large.

Once again thank you very much

Best Regards

===================================
Bernard E. Kihiyo
Executive Director
Tanzania Consumer Advocacy Society
Affiliate Member of Consumers International
Red Star Building 2nd.Floor Kongo – Kariakoo
P.O. Box 76950,
Dar es Salaam, Tanzania
: +255-22 5507804
: +255 757 170 555; +255 715 170 555; +255 783 170 555
: consumeradvocacytz@yahoo.co.uk
http://tanzaniaconsumer.blogspot.com
We Promote, Disseminate, Advocate for Consumer’s rights
Drafted By Ally S. Goronya
====================================

TZ private sector lauds US$ 1.5 billion stimulus

2009-12-31T23:55:00.000-08:00

Written by MBONEA ISRAEL
Saturday, 12 December 2009
DAR ES SALAAM, TANZANIA - The private sector in Tanzania has applauded the seven trillion (about $1.5 billion) economic stimulus package that was put in place by President Jakaya Kikwete to support exporters of agriculture commodities.
The money was given by the government in order to mitigate the effects of the global financial crisis.

"The central bank (BoT) Governor and his committee are working on the assessment of the impact of the stimulus package, expect that by mid January next year the report will be published," Tanzania's Minister for Finance & Economic Affairs Mustafa Mkullo noted.

The financial year 2009/2010 package ending in June 2010 was given to commercial banks to bail out exporters.Banks were given the package to save them from losses caused by the fall in prices and the demand for agricultural commodities due to the global financial crisis.

The major effects of the crisis included the reduction in the number of tourist arrivals, falls in exports demand in the world markets, a fall in remittances, reduction in government revenue among others.

Information from the Bank of Tanzania indicates that the economy growth declined to between 2.4% and 5% this year from the 7.5% recorded last year.The Executive Director for Tanzania Consumer Advocacy Society (TCAS), Bernard Kihiyo, said the stimulus package has helped to strengthen the banking institutions which are lending to the productive sectors of the economy. The Director General for Small Industries Development Organization (SIDO), Mike Laizer, said that the package has been instrumental in reviving the financial and agriculture sectors.

"The package was a must for Tanzania's financial sector because without the backing up for the financial sector, the businesses in marketing and packaging of agricultural goods would have collapsed," Laizer said.

He called for a review of the taxation regime especially taxes applied to small producers, including the counterproductive six per cent training levy,"

Source; a href="http://www.busiweek.com/index.php?option=com_content&task=view&id=2847&Itemid=2">http://www.busiweek.com/index.php?option=com_content&task=view&id=2847&Itemid=2

Tanzania: financial reforms fail on consumer protection

2009-12-11T01:27:00.001-08:00

Friday, 27 November 2009 11:51 Written by Administrator
By MNAKU MBANI
ALTHOUGH Tanzania has taken major efforts to reform the banking and financial institutions sector over the last two decades, the issue of consumer protection has remained virtually untouched by the 'reforms.

'This situation has led to increasing abuse of good business practices by many of the financial institutions and banks, as well as a singular lack of fairness and transparency in dealing with customers."The providers of financial services in Tanzania need to understand that, as long as they continue to gain unfairly from their customers.... they are nonetheless sowing the seeds of their own destruction...," said Daimon Mwakyembe, chairman of the Tanzania Consumer Advocacy Society (TCAS).

Presenting a paper recently on 'The Quality of Financial Services: a Critique From Consumers' Perspective,' Mwakyembe cited as an example of bad practice the banks and financial institutions which “have continued to overcharge consumers in terms of fees, interest rates and commissions – while others reject low income consumers out of hand as 'unbankable.'”The occasion was a forum organized by the Government Controller & Auditor-General (CAG) in the nation's commercial capital, Dar es Salaam.

TCAS is a private, voluntary nongovernmental, non-partisan and nonprofit making organization that was registered as a company limited by guarantee in July 2007 under the Companies Act of 2002 (Chapter 212 of the Laws of Tanzania). The Society’s mission is to provide an advocacy platform that would make consumers' voices heard, raise consumers' awareness of their rights, build consumers' ability to claim their rights, as well as make markets accountable and more responsive to consumers' needs and interests.

Observers say most of the banks and financial institutions operating in Tanzania siphon billions of shillings off their customers as a matter of course. This is partly becauseof the latter's ignorance of their rights and dues, and partly because the reforms and extant legislation are silent on the matter.

Mwakyembe – who is a former director-general of the Tanzania Bureau of Standards (TBS) – said despite the reforms, fairness and transparency in the treatment of customers is not always ensured... And lack of capability on the part of customers is still being exploited negatively.As a result, there is no mechanisms on how to curb abusive business practices by financial institutions at the national and international levels, and which adversely affect consumers.

Mwakyembe suggested that the (central) Bank of Tanzania and other relevant authorities need to urgently review the extant financial regulatory policies and legislation. The main objective this time should be to ensure that they – among things – reflect a wide view of consumer protection on ensuring proper business conduct.

It is noted that the Bank of Tanzania, which has the mandate to supervise the banking and financial industry as a whole, has no straightforward consumer protection guidelines.He said this situation will not favour the survival of financial institutions in the long run."Good quality service is a product of right consumer protection and is, thus, the new paradigm that is defining – and, indeed, influencing – the entire economic sector and economic relations," he said.

The International Monetary Fund's review of regulatory systems in 2004 did (among other things) advise on “stipulation and clear identification of common regulatory themes for consumer rights promotion and protection,” Mwakyembe noted.

"Despite efforts in addressing the competitiveness of the financial sector, consumer abuse and rights violation are on the rise, and are directly affecting the economic welfare of many consumers," he stressed.

Noting that ''the main part of poor services in Tanzania's financial market is contributed to mainly by lack of consumers' awareness on their rights when making choices'', Mwakyembe stressed that "inadequate consumer awareness on their rights and obligations is the main stumbling block for realization of good services..."Yet, if there is one area that the financial sector could use to address its economic malaise and ensure its sustainable future, it is through the provision of financial education to consumers.

This would be in line with the implementation of the United Nations Consumer Protection Guidelines of 1999 which encourage Governments and institutions to work out clear, fair, guidelines that protect the interest of consumers.A research conducted in 2007 by the Finscope Group showed that, in order to strengthen financial institutions in any country (including Tanzania), there is a need to promote financial capability to consumers.

This includes empowering people to be capable of managing their financial assets and liabilities, to understand their rights and responsibilities vis-a-vis financial institutions.Mwakyembe: "in my view, financial education to consumers should focus on building financial discipline, managing their incomes, boosting their saving behaviour and the promotion of risk mitigation," he concluded.

In another development, auditor-general of Sweden, Eva Lindstrom, commended the National Audit Office of Tanzania for taking the initiative to organise the forum which, she said, was relevant and timely. In these times of financial crisis, Lindstrom said, “Supreme Audit Institutions in many countries are challenged to properly address the audit of financial supervisory agencies that are aiming at consumer protection and mitigating the risks that large sums of taxpayers' money will have to be used for the rescue of the financial system.”

Noting that the events of the past year have highlighted the significance of financial supervision, she said that financial markets and their institutions must operate in a highly competitive environment – and there will always be efforts made to circumvent the regulations. A strong, independently-organized financial supervisory authority is, therefore, of the highest importance for the stability of the economy and taxpayers.”

The global financial crisis also pointed to the importance of supervision of not only separate financial institutions, but also of the entire financial system. Moreover, the Swede said, new regulations on financial markets will need to be introduced in the years to come, globally. Supervision of cross-border banks will have to be improved – which will most certainly mean more cooperation between financial supervisory agencies in different countries.

Lindstrom observed that central banks failed to foresee the effects of the deterioration of markets that led to liquidity problems. To that effect, monetary policies need to take into account financial stability... And it is within the mandate of central bank to monitor and handle monetary conditions.“The Supreme Audit Institutions have an important role to play in monitoring the operations of the financial supervisory agencies.

Those agencies make up a vital part of the financial infrastructure, and when that infrastructure fails, the costs of that failure are most often transferred to the taxpayers,” she elaborated. Thus we, as auditors, must make sure that we have the knowledge and competence required to audit these agencies. According to her, auditing will create confidence in the system, an asset which is vital in promoting effective financial markets and stable economic growth.

Source; www.businesstimes.co.tz/index.php?...tanzania...consumer

Beer market: players urged to uphold spirit of competition

2009-12-11T01:20:00.000-08:00

Thursday, 01 October 2009 16:23 Written by Administrator
TIMES REPORTER

The beer market war going on in the country is most likely not to have any negative impact on revenue collection, Tanzania Revenue Authority (TRA) has said.

The beer market war that have been prompted by the East African Breweries Limited's (EABL) interest to buy major stake in Serengeti Breweries (SBL) and in doing so to quit its partnership with Tanzania Breweries (TBL) will not affect the inflows of the government revenue.

According to Tanzania Revenue Authority (TRA) commissioner-general, Harry Kitillya, “as long as the volume of beer consumption in Tanzania does not decrease, the country's economy will not be adversely affected in terms of revenues.”

Kitillya stressed that the Revenue Authority is looking for growth in beer consumption regardless of who teams up with who in the industry. Growth in consumption will consequently increase production and sales thereby enabling TRA to collect more revenue.

Daimon Mwakyembe, a former director-general of the Tanzania Bureau of Standards (TBS), is of the opinion that application of the rules of competition in respect of anti-competitive cross-border business conduct should be looked into.

Mwakyembe, who is also the chairman of the Tanzania Consumer Advocacy Society (TCAS), said while consumer groups need to support and encourage action to raise public awareness of competition issues, the proactive contribution which consumers can make through their shopping choices and their rights if they are the victims of restrictive practices.

Furthermore, he said that there are two things one needs to take note in analyzing the merger between SBL and EABL; one is the fallout between EABL and TBL with their contractual obligation; the second thing is the market impact on the merger between EABL and SBL.

“When it comes to the pros and cons of the merger between SBL and EABL,” Mwakyembe stressed, “Tanzanians have all the rights to share their feelings on the issue as at the end of the day consumers are the ones going to benefit or suffer based on decisions going to be made.”

Speaking in a different vein, the TCAS chief, Bernard Kihiyo, told this paper that, in a free market economy, competition with other players in the market is not an option; what matters is fairness of the competition – no matter how big or small the player is.

Kihiyo – who is also the CEO for Parasol Real Estate Agent & Developer Ltd – that countries which are in the East African Community (EAC) should establish a sub-regional competition tribunal that would enforce harmonized competition legislation.

Kihiyo nonetheless says “consumers are aware of TBL’s strong dominance in the beer market in Tanzania, which is believed to be more than 60 per cent. Any merger now would further reduce competition in the industry – and increase beer prices.”

In any case, observers are of the general view that beer prices in Tanzania “are no longer determined by market forces – but at the whim of company accountants. prices have increased threefold since the wars started,” Kihiyo elaborated.

Source; http://www.businesstimes.co.tz/index.php?option=com_content&view=article&id=530:beer-market-players-urged-to-uphold-spirit-of-competition&catid=34:national-business-news&Itemid=62

Consumer Education

2009-09-25T11:10:00.000-07:00

The Guardian of 24th.Sept.2009
It has been noted that lack of consumer education from the lower levels of learning institutions has meant that few Tanzanians are conversant with it, hence the government has been advised to incorporate it in the basic school curriculum.

Speaking in Dar es Salaam this week, Seif Hamis Simba, a programme officer with the Tanzania Consumer Advocacy Society (TCAS), said consumer education is often not clearly and easily understood as it means different things from person to person.

He said, both children and adults should grow into becoming well-informed and critical consumers of products, commercial services, and public service. According to Simba, the process entails not so much the provision of consumer information regarding products, services, the environment and other considerations but rather the continuous cultivation and development of living skills.

He expands on this that the skills would include such cognitive powers as critical and conceptual thinking, knowledge and understanding the impact of individual, business and government decisions on consumers. “Consumer Education involves the development of abilities to make decisions in the purchase of goods and services in the light of personal values, maximum utilization of resources, available alternatives, and ecological considerations,” he said.

He said consumer education at school level is essential to provide the skills and knowledge to empower consumers and enable them use their resources effectively and increase their awareness of their wider role in society.

According to him, consumer education addresses not only the problems of consumers individually but also of sustainable consumption, social justice, human rights, ethical values and overcoming poverty. Consumer education contributes towards the formation of a participative, critical and competent citizenship.

He said specifically, consumer education enables individuals to develop the ability to possess a critical, consumer-reasoned appraisal. Reasoned appraisal could include the overall implications, both to the individual and society, of consuming that particular product or service.

“Through consumer education, consumers are equipped with knowledge, skills and understanding of the market. Consumer education enables consumers to judge and make competent decisions about their financial transactions”, he said.

It also stimulates the nation’s social and economic development. Consumers, who exercise free choice based on knowledge of the facts will be able to make the best use of resources within their sphere of influence.

In his comments, consumer advocate Bernard Kihiyo said that there are four aspects of consumer education. The first aspect is informed choice where consumers must learn to obtain information about goods and services.

Also to distinguish between different sources of information, understand the psychology of selling and advertising, learn to shop wisely, distinguish between needs and wants, understand the alternatives of conserving and saving rather than buying and consuming.

TBL, EABL battle: Call for establishment of East African Competition Tribunal

2009-09-21T10:07:00.000-07:00

DAILY NEWS Reporter, 20th September 2009 @ 14:34
THE Tanzania Consumers Advocacy Society (TCAS), has recommended for establishment of East African Competition Tribunal which will harmonise the regional competition legislation, following the legal wrangle between the East African Breweries Limited (EABL) and the Tanzania Breweries Limited (TBL).

The TCAS chairman, Mr Damon Mwakyembe, said there was no need for companies in the region to go to UK for competition dispute arbitration. The two beer companies are seeking arbitration in the UK, following the decision by EABL to buy substantial shares in Serengeti Breweries Limited (SBL). “Such tribunal will apply rules of competition, in respect of anti-competitive cross border business and promote and protect competition in the community.

We do not have to go to UK for competition dispute arbitration in future,” said Mwakyembe, the former Director General of Tanzania Bureau Service (TBS). He said while consumer groups need to support and encourage public awareness of competition issues, still restrictive practices could affect consumers when making shopping choices.

On the EABL/TBL dispute, Mr Mwakyembe said the possible divorce of the two should respect contractual obligations of the two companies.

He, however, said that Tanzanians have the right to discuss possible merger between SBL and EABL, because eventually consumers would be the ones to benefit or suffer by such decision.

The Chief Executive Officer for Parasol Real Estate Agent & Developers Limited, Mr Bernard Kihiyo, said that fairness was key in the free market economy.

Mr Kihiyo who is also the Executive Director for TCAS, said in April 2007; his organisation, conducted a survey to 3,000 respondents in five regions of Arusha, Kilimanjaro, Coastal, Mwanza and Dar es Salaam on competition.

He said 33 per cent of respondents said the merger of TBL and Kibo Breweries in 2002, had some anti-competitive arrangements that had serious consequences on beer prices.

Source; http://dailynews.co.tz/home/?n=3891

Ghana hosts conference on consumer protection in Africa

2009-09-09T01:12:00.000-07:00

More than 250 policy makers, regulators, journalists and representatives from financial institutions and their apex organizations, the education sector, consumer protection agencies, and development partners from over 30 countries will participate in an international conference scheduled for 8 to 9 September 2009 in Accra.
The conference would be hosted in collaboration with the Partnership for Making Finance Work for Africa (MFW4A on the theme “Promoting Financial Capability and Consumer Protection – A Step Forward Towards Financial Inclusion in Africa.”
A statement from the Ministry of Finance and Economic Planning issued in Accra on Thursday, quoted Dr Kwabena Duffuor, Minister of Finance and Economic Planning saying” Promoting financial capability is about raising awareness, promoting knowledge, building trust, and changing behaviour.”
“And it is not limited to educating consumers and enabling them to take informed decisions on saving, loan and investment products.
Additionally, management and staff of financial institutions need to be trained to become more responsive to the needs of their clients, and supervisors need the capacity to protect the consumers against fraud and other bad business practices.”
It is being organised against the background that low-income households in Africa often have limited access to demand-oriented and affordable financial services.
They include savings, loans, and insurance, which means that they have to revert to more expensive and less secure traditional alternatives of saving and borrowing and remain vulnerable to adverse shocks.
Research has shown that in order to strengthen financial institutions in Africa, there is the need to promote financial capability, to empower people to be capable of managing their financial assets and liabilities and to better understand their rights and responsibilities vis-a-vis financial institutions.
However, strengthening the financial capability of the population is not sufficient since governments also have a role to play in protecting consumers by ensuring that financial institutions apply recognized standards and suitable codes of conducts.
In order to create sustainable ‘win-win situations’ in this long-run, it is believed that financial capability measures need to go hand in hand with responsible, transparent and reliable services provided by financial institutions.
In moderated regional and national working groups, participants will have the chance to develop ideas and proposals as to what they think should be done in their country or region to improve financial capability.
A panel on social marketing will show films and discuss which marketing channels can be used best to address the different target groups of financial capability campaigns.
The Government of Ghana, together with the Ghana Microfinance Institutions Network (GHAMFIN), will hold as a prelude to the conference, a day’s Pre-Conference on “Promoting Financial Capability and Consumer Protection in Ghana” on September 7, 2009.
According to Mr Seth Terkper, Deputy Minister of Finance and Economic Planning, “Financial capability is very high on the political agenda of the Government.”
He said “Ghana is one of the first countries in Africa that has developed and started to implement a National Strategy for Financial Literacy and Consumer Protection in the Microfinance Sector”.
Over the past two years, “financial literacy road shows” have been carried out in all 10 regions of Ghana, easy-to-understand educational materials have been developed and distributed, high school quizzes have been organized, and radio programs on saving and responsible borrowing as well as television sitcoms on insurance have been telecast.
All activities will culminate at the Ghana Financial Literacy Week, which will take place from 28 September 28 to October 3, 2009.
Against this background, over 150 Ghanaian and international financial sector champions from the public sector and the financial sector as well as representatives from academia, consumer protection agencies, non-governmental organizations and development partners will discuss and evaluate whether “Ghana is on track and set the right priorities in financial capability and consumer protection”.
Additionally, innovative topics such as “Integrating Financial Capability into High Schools” and “Promoting Financial Capability through Mass Media” will be addressed.
Source: GNA; http://ghanabusinessnews.com/2009/09/04/ghana-hosts-conference-on-consumer-protection-in-africa/
http://ghanabusinessnews.com/2009/09/04/ghana-hosts-conference-on-consumer-protection-in-africa/

Mobile Phone Money Transfer: Consumer Education is of Paramount Importance.

2009-09-06T05:55:00.000-07:00

Tanzania has seen remarkable gains on mobile phone service uses; there had been rapid uptake of various services key among them the mobile phone based solution for money transfer.

Mobile phone banking is mainly used for money transfer and information sharing, this system frees up consumer from traditional banking system, mobile phone money transfer needs customer to register with service provider once, set up user ID/password hence allowing a customer send, receive money, and pay bills while on-the-move and anywhere in Tanzania anytime s/he pleases.

Mobile money banking started with the creation of services by the banks which could enable bank account holder to access certain information through his/her mobile phone. These facilities aimed to enable customers to access information relating to their accounts or transfer money.

According to Financial Sector Deepening Trust for Tanzania (FSDT), the most recent data available indicates that less than 10% of adult Tanzanians reported having access to a formal banking such as having a bank account; this leaves a percentage of more than 90% outside the bracket out of reach for mainstream banking such as conventional tellers or ATM networks of banks.

So to say mobile phone money transfer such as NBC mobile service, Zap for Zain and M-Pesa for Vodacom are essential opportunities for consumers to narrow down the gaps left by traditional banking systems. This service already reaches unbanked persons in rural and urban areas in Tanzania, most agents happen to be air time distributors or retail outlets for handsets that manage cash transactions during money transfer.

Availability of multiple outlets across the country implies more points of contact with customers as opposed to the traditional banking hall set up. Additionally, the flexible operating hours of the mobile phone agents leaves them with greater opportunities to satisfy banking requirements that may arise at any time. On the contrary banks operate for an average of eight hours per day. The supplementary Automated Teller Machines (ATMs) do not have a sufficient outreach since they are only available in major towns.

While the fees charged for transactions are largely below those levied by traditional banks for similar services, low incomes amongst the vast proportions of the population tends to reduce the levels of affordability, I presume that prices are expected to decline over time as competition intensifies.

Observably population categories with lower levels of education happen to be the larger user category. The capacity for unschooled and semi illiterate persons to quickly capture the skills of manipulating the considerably sophisticated mobile phone menu items is still questionable.

Though not seriously impaired, the capacity of a wider population of Tanzania users is fairly curtailed by not being fully conversant with all that they can accomplish through the mobile. Deliberate interventions must be undertaken to successfully ensure that the targeted persons particularly the rural residents and females are empowered not only with technology but with skills and finance as well.

To prevent these communities from lagging behind they must be familiarized with the benefits and opportunities of mobile banking. Calculated strategies to overcome hindrances require exploration so that these groupings can be converted into meaningful participants who will utilize this technology for economic take off. Mobile phone money transfer signifies is the fact that M-banking has created a formidable avenue for income redistribution.

Other challenge is, rural areas are faced with numerous challenges including how to manage the float (Cash) in light of prospected demand. Operators have tended to focus mainly on the densely populated economic zones; more so increase in local and international money transfers services with maximum consumer protection; against risks of fraud, loss of privacy and even loss of service is extremely critical for growth of m-banking.

The fair and transparent treatment of customers is not always ensured and the lack of financial capability is still being exploited negatively. The providers of financial services need to understand that they stand to gain themselves from an informed customer decision.

This sort of service revolution should led to make finance work for Tanzania, we should ask ourselves ‘’did we set the right priorities in financial literacy and consumer protection?’’ “What do we need to do (better) right now to make finance work for Tanzania and Africa as a whole?”, things such as to empower people to be capable of managing their financial assets and liabilities by better understanding their rights and responsibilities.

In order to protect consumers it is inevitably not to do; awareness creation and social marketing to behavioral change, increasing consumers’ financial capability which aims at empowering consumer. The government thorough sectoral regulatory authorities (in this case Bank of Tanzania and Tanzania Communication Regulatory Authority) also have a role to play in protecting consumers by ensuring that financial institutions, business firms, fund raiser through mobile phone and mobile phone service providers; provide regular reliable information and apply recognized standards and suitable codes of conducts.

We need to develop a national strategy on consumer education and financial capability. These strategies aim, among other things, at including financial capability into schools, to educate the public on financial capability and to design training programmes for financial service providers.

We need to prepare a clear money transfer laws to clarify the responsibility of service provider in order to strengthen consumer protection in Tanzania as well as establishing appropriate safety net procedures which immediately provide remedies if consumer involved into controversial deal. Failing to plan today is planning to fail in future, it is now or never.

We are making a special request to strengthen collaboration among relevant organizations through establishment of a liaison committee on a regular and on-going basis consisting of banks, service provider, regulatory authorities, consumer groups, lawyers, Tanzania private Sector Foundation, Tanzania National Business Council, Confederation of Tanzania Industries, Tanzania Chamber of Commerce and others to join us to prepare joint operations for consumer protection.

Only when there is knowledgeable consumer in place and thereby strengthening institutions and building capacity for sound decision making, proper progress can be made in the other areas of democratic governance, including agriculture, economic and social development, welfare, and many others.

Fight Against Fake Products on Track

2009-08-26T09:12:00.000-07:00

The Guardian Editorial; 26th.Aug.2009

FINNALY East African Community (EAC) countries have unanimously decided fight the growing menace of counterfeit products as one regional entity. We join the Tanzania Consumer Advocacy Society (TCAS) in hailing the move as we believe it will help bring the dirty business to a halt.

It is globally acknowledged that while a free and open marketplace is fundamental to improve competitiveness, increasing investment, generating jobs and improving the economies of any region illicit trade, especially counterfeit had been undermining each of these goals in the East
African region and has been a growing menace in the region market.

Counterfeit and other form of illicit trade are mainly facilitated weak border controls (especially contributing to smuggling); inadequate sanctions (which are sufficient as deterrent because the balance of risk and reward is not weighted more against the offenders); and corruption, which weakens enforcement of existing regulations and undermines any controls put in place.

Another facilitators is consumer behavior as in many markets, consumers are aware (from appearance, price and place of sale) that they are purchasing smuggled or counterfeit goods, but are happy to buy, because of the lower price.

In Tanzania alone, authoritative research shows that counterfeit constitute about 38 per cent of all the imported products. This grossly affects not only the consumer but also the government.
The move by the EAC countries to jointly criminalize counterfeits deserves support because studies have shown that the business of importing fake products is complicated by the fact that it is supported and perpetrated by a sophisticated network of people who know how to evade law enforcement organs.

We are informed that the EAC is in the final stages of drafting the crucial legislation which is expected to be tabled at the November East African Legislative Assembly (EALA) session before being passed into law and ratified by the parliaments of the respective five EAC member states.

While we look forward to the swift passage of the all important legislation, we would like to call on member states to prepare and implement a mass sensitization campaign that would enable people of the region to actively participate in fighting against the menace. Without people’s support, the fight against this growing problem is bound to hit a hard rock, the good intentions of the legislation notwithstanding.

Partner states should also put in place measures to combat illicit trade including reducing the economic incentives to engage in the trade strengthen controls at the border points; enforce existing national and regional laws; introduce punitive measures against the culprits, including seizing and destroying illicit goods and machinery.

It is also crucial that the regional seek the active support of countries which are notorious for being major sources of counterfeit imports.

Here we have in mind countries like the People Republic of China, widely known for being a friend and supporter of third world countries, including Tanzania in their development aspirations. If China is to be seen as a true friend in the real sense, it should crusade its businesspersons who are the main source of counterfeit. Together we can fight this menace and win.

Consumers’ society hails EAC for criminalizing counterfeit imports

2009-08-26T09:05:00.000-07:00

The Guardian; Tuesday; 25th.Aug.2009
By Correspondent; Felix Andrew

Tanzania Consumer Advocacy Society (TCAS) has hailed the recent decision by the East African Community to criminalizing the importation of counterfeits saying the move would bring the dirt business to a halt.

Speaking in Dar es Salaam at the weekend, the society’s executive director, Bernard Kihiyo, said the decision taken by EAC would help to reduce the ever increasing importation of fake products to the region.

He said counterfeit goods would stop flowing into any of the member states only after the EAC governments destroyed the well-knit syndicate behind the importation, distribution and the sale of sub-standard goods. Authoritative research shows that counterfeit constitutes about 38 percent of all products imported into the country, adding that fake products adversely affect both consumers and the government.

He urged the EAC to take stem measures against culprits importing counterfeits into the region. According to Kihiyo, controlling the importation of counterfeit goods was not an easy task ‘’because most importers are Tanzanians who deliberately order cheap products from outside the country so as to reap a windfall upon selling them.

He warned that the business of importing fake products was further complicated by the fact that it was supported and perpetrated by a sophisticated network of people who know how to evade law-enforcement organs’’.

‘’It is a strong network that only the combined force of all relevant government organs can beat’’ he noted, adding that some members of Tanzania business community had made it a culture of import counterfeits to their country.

Kihiyo said domestic markets were flooded with low quality products including edible oil and spare parts. Apart from foodstuffs, there are several imported products that are below standards, thereby threatening the lives and health of consumers, he said.

Speaking to members of the press last week, the EAC General Secretary Ambassador Juma Mwapachu said the community is in the final stage of enacting a legislation to criminalize importation of counterfeit goods in all the five partner states.
The legislation is expected to be ready before November’s East African legislative assembly (EALA) whereby it will be discussed before being passed into law and ratified by respective national parliaments.

He said the counterfeit are targeting East African markets where law enforcement on imports is not strict and resources to do so are scarce. The counterfeit legislation will help harmonize laws in the EAC partner states and impose much stricter penalties including confiscation of the goods and imprisonment for their importers. The legislation is being drafted with the assistance of Investment Climate for Africa (ICA).

He warned that if unchecked, counterfeit will negatively impact on the region’s economy and concerted efforts for economic growth will roll backwards. He further said that apart from costing government in terms of revenue loss, the counterfeits will kill local and emerging regional industries, which are crucial to the regional economic sustainability competitiveness and job creation.

Education on financial savings importance

2009-07-03T02:32:00.001-07:00

BUSINESS TIMES: FRIDAY, 12 - 18 JUNE 2009
BY ERIC TOROKA

The Tanzania Consumer Advocacy Society (TCAS) is a non governmental, independent consumer’s organisation, which has been established with interest to promote, protect, disseminate, and advocate for consumers’ right in Tanzania. Our reporter, Erick Toroka had an interview with the Executive Director for TCAS, Bernard Kihiyo, on the importance of education on financial savings.

Kihiyo says TCAS would like to be a Bank of Tanzania (BoT) advocacy implementing partner, on supplementing BoT’s honourable efforts in controlling and regulating banking industry and financial institutions in Tanzania to have sound financial management and financial accountability.

It has been habitual for most of the banks and financial institutions in Tanzania to favour big business on capital investment and ignore the poor (low-income consumers) due to their lack of security; however with the government project like MKURABITA this is not going to be an obstacle any more.

In recent years a number of good achievements happened in financial market in Tanzania; one being an abrupt increase in the number of Banks, SACCOS, and other financial lending institutions in Tanzania.

As the world is in the era of globalised economy, banking and financial customers all over the world (including Tanzania) are forced to be competent with; e-banking, e-business, e-commerce, international banking; which associate with the high degree of fraudsters and money laundry.

And it has been revealed that more than 80 per cent of consumers (including those of banking and financial services) in Tanzania suffer from lack of understanding of their consumers rights. They remain unaware, vulnerable, with no ability to fight or claim for their rights.

It is against this background whereby his organisation’s management feels that it is equally important to establish viable campaigns on raising customers awareness on several banking and financial issue under the partnership between BoT and TCAS.

“This campaign will provide information and capacity-building support to the customers to realize their potential and actively take part in country economy development in this foreseeable expanding financial market in Tanzania,” he states.

For instance, Ally Goronya says, there is a need for fraud prevention campaigns; we think personal customer safety is of paramount importance; the campaign should revolve around importance of chip and pin on fighting credit or debit card fraud, advocate for several different ways of reducing fraud and risk of identity theft.

there must be an intensive advocacy to money lenders on their rights and obligation that aim to raise borrower’s awareness on the true rate of interest being charged, loan’s terms and conditions, default, borrower’s right to restate, foreclosure procedures; arming preventing customers from being unfairly penalized or exploited unknowingly.

The campaign should also involve lobbying and advocacy on introduction of common money-lenders payment protection scheme; TCAS would like to work hand in hand with BoT, and the government on having fair insurance cover scheme that meet the demands and needs of those customers who wish to ensure that their payment protection needs are met.

The TCAS boss also notes that the scheme should cover any failure of moneylender to service his/her loan due to unforeseeable accident or sickness, involuntary unemployment, loss of business, hospitalization, death and general calamities like war, riot, commotion or other similar events.

Other unforeseeable like; case of theft-fraud, money laundering, loss acquired through misuse of e-banking card by someone else without holders permission should also be considered on the cover.

“We think the campaign should also advocate for responsible lending practices, issues such as minimum payment while serving a loan; frequent sharing of information on loan servicing, banks interest rates, default charges and insist on the banks/financial institution to have court order during enforcement on a customer who bleached a contact,” he says.

Other rights and obligation to be emphasized during the campaign are; what if someone is getting unsatisfactory services from the banks which lead to failure on paying the loan and interest in time – can the borrower sue the banker? Customer’s right to cancel loan agreements, complaint procedures, Rights to take legal proceeding, confidentiality on customer’s information.

Overall objectives of this proposed; TCAS/BoT Advocacy campaign are;- To raise customers’ awareness on banking and financial rights, increase customers familiarity with banking and financial services, inform customers about specific feature of a financial services, indicate distinctive features and/or benefit of a service, establish credibility of financial product or services, and Encourage potential customers to use such service.

Others are; to maintain loyalty of existing customers, Expand the reach of financial market, Overall enhancement of investment climate; with required necessary financial support and schemes, Catalyze effective competition in financial market, Raise customers’ financial discipline.

there is no way one can talk of citizens economic empowerment in this globalised economy without having plans in place on raising consumers’ awareness on their consumers rights, and consumers awareness is the back born of country’s sustainable economic growth.

“Let us work together to achieve the fundamental trust of the government in power to bring the benefits of banking and financial institutions to the poor people”, Kihiyo concludes.

Tanzania crippled by corporate social Irresponsibility – Study

2009-07-03T02:29:00.000-07:00

Business Times; Friday, 7-13 Dec, 2007
By Eric Toroka
A Consumer survey conducted by the Tanzania Consumer Advocacy Society (TCAS) has levered that the lever of consumer awareness in Tanzania is “very low” – particularly on consumer’s rights, perception and attitudes with respect to businesses accountability and responsiveness to consumer needs and interests in Tanzania.

The survey was conducted in five regions of Tanzania mainland – namely Dar es Salaam, Kilimanjaro, Arusha, Coast and Mwanza – between February 1 and 27, 2007.

Speaking to Business Times in Dar es Salaam recently, Daimon Mwakyembe, and its executive director, Bernard Kihiyo, said the survey revealed that “there is very low Corporate Social Responsibility (CSR) in Tanzania”.

Mwakyembe defined Corporate Social Responsibility as the continuing commitment by business to behave ethically responsive and accountable to consumers’ needs and interests. This concept generally entails about how companies manage the business processes to produce an overall positive impact on society.

The survey revealed that there is poor public transportation system characterised by: congestion and delays; uncomfortable travelling conditions; poor vehicle condition; poor customer services; increased road accidents. Mwakyembe explained.

Moreover, it found out that there had been wrong overestimated, inflated bills from electricity and water utility bodies. The two are giving unreliable services characterized by frequent services characterized by frequent service breakdowns in most case without a notice. These include unregulated electric frequency; un- guaranteed water supply, poor quality of water which leads to the spread of water born diseases like typhoid and cholera.

The presences of counterfeit goods with are not durable, poor in quality, unsafe, false labelling and changing of expiry dates on products – food, cosmetics and medicine are also on the raise. It is believe that 40 per cent of the products in Tanzania markets are counterfeits, Mwakyembe added. Bernard Kihiyo added other forms of unethical business conducts seemed to look new while in reality they were not, giving the example of mobile phone on sale in most of the shop in Tanzania.

The survey revealed that in same cases human and animal drugs dispenses and managed by unprofessional personnel were very dangerous to the health of consumers.

Moreover, the study revealed that there were unjustifiable excessive high prices of goods and services in Tanzania market. For instance, early this year consumers experienced a sudden hike in the prices of petrol and petroleum products. It appears that dealers in oil are forming a cartel to fix prices in order to exploit consumers.

Mwakyembe clarified that the worst scenario of the survey can be viewed on the following; - Health Care with the concept of CSR; 1829 respondents have seen complex medical cases of alleged negligence by the way of consultation, diagnosis and treatment (cross infection), both medicinal and surgical that led to severe suffering of service recipient like the recent MOI theatre scandal and in some instance death occurred. The most difficulty question is how far medical/pharmaceutical practitioners be held responsible for their professional negligence?

Transport and transportation with the concept of CSR; 1279 respondents complained of the sharp increase in road accidents. Last year alone more than 2838 people lost their lives due to road accidents, leaving 155,000 others with permanent disabilities and without forgetting those who lost their properties.
In most cases accidents are caused by drivers’ negligence including operating with un-serviced cars, operating without having proper insurances to cover customers and their properties. The most difficulty question is how far should transport operators be held responsible for professional negligence? Mwakyembe queried, showing his shock

Media have important role to play, says Mengi

2009-07-03T02:24:00.000-07:00

Business Times; Friday 25-31Jan, 2008
By Allen Mushatsi

The executive chairman of IPP Ltd and chairman of media Owners Association of Tanzania (MOAT), Reginald Mengi, has said that media have an important role to play in empowering citizens. His remark came on Monday this week when addressing journalists during the opening of a regional training course organized by the commonwealth press union (CPU).

The chairman said that by covering issue and activities of public interest, journalists can help create awareness among the people regarding what is taking place in society. The other thing, he said that the media was capable of sensitizing the public through analytical journalism, involving a critical approach to issue taking place in society.

Mengi went further, saying the media can empower society by setting the right agenda aimed at enlightening the public. “Indeed, the media potential to empower citizens is there. The challenge of how to make use if such potential is on the shoulders of journalists”, he stressed.

Making a point on a training course named ‘Empowering citizens through reader-friendly newspaper;’ he said trainees would brainstorm on a number of topical issues in society, apart from improving their writing skills.

“An enlightened or empowered citizen knows his/her rights and will thus strive to liberate himself/herself socially and economically. Empowered citizens are not likely to tolerate bad governance in society reflected in lack of freedom of movement and expression, or corruption, the worst forms of which are seen in plundering national resources…realize the power of their vote during election times and use it to bring peaceful and morally acceptable leadership changes,” Mengi explained.

The training course has brought together journalists from Kenya, Uganda, Malawi and Mozambique and the host country. Tanzania for the whole of this week, they covered on some strategies the media can use in order to interact with and empower citizens. Together with other speakers, Rob jamieson acted as a training course consultant

Matatani kwa kuuza Coca-Cola Fanta feki

2009-07-03T02:22:00.000-07:00

Nipashe; 9 Novemba , 2007

Na Aisha Hamza, PST, Arusha

Mkazi wa Majengo mjini Arusha John Mwasapi (40) aliuza bidhaa Coco cola na Fanta ambazo ni bandia kwa kutumia nembo ya kiwanda cha Bonite Bottlers cha mjini Moshi, Mahakama ya Hakimu Mkazi Arusha imeambiwa.

Akisoma shitako hilo, Mwendesha Mashitaka, Zuberi Mkakatu, alidai mbele ya Hakimu Mkama Abdallah kuwa Mwasapi alitenda kosa hilo Oktoba 20 mwaka huu, huko Mbauda.

Alizidi kudai kuwa mshitakiwa alifika katika duka la Bw. Mtega Shayo na kumuuzia mkewe kreti mbili za soda kwa bei ya Sh 5,000 kwa kreti badala ya bei ya kiwandani ya Sh 6,100 akidai kuwa alipewa na kaka yake ambaye ni mwanajeshi.

Mtuhumiwa alipoondoka mwanamke huyo aliweka vinywaji hivyo kwenye jokofu na badala ya muda mteja aliyetaka Coco cola, alikuja dukani na kupatiwa kinywaji hicho.

Alidai baada ya kunywa mteja alihisi harufu isiyompendeza inayofanana na ya ndizi na kuirudisha soda hiyo, hivyo muuzaji huyo akalazimika kumfungulia mteja huyo soda nyingine ambayo nayo ilitoa gesi kasha ikamwagika yote na mteja kubakiwa na chupa tupu.

Baada ya tukio hilo mwanamke huyo alimpigia simu mumewe na kuumweleza juu ya kuuziwa chafu lakini Bw. Shayo akamshauri kuwa anunue soda nyingine kutoka kwa Mwasapi ili iwe rahisi kumnasa.

Mwendesha Mashitaka alisema siku mbili baadaye, alirudi kuuliza kama wangehitaji soda na akaagizwa alete kreti mbili na alipozileta alikamatwa kwa kushirikiana na wananchi ambao walianza walianza kumshushia kipigo.

Mwasapi alifikishwa katika kituo kidogo cha polisi Chemchemu Mbauda na kuhojiwa kisha alipekuliwa nyumbani kwake na kukutwa na kreti tupu nyingi za soda za kampuni ya Bonite.

Pia polisi walimkamata na paketi nyingi za juisi aina ya Drink O-pop pamoja na Coke ambazo alikuwa akizitumia kutengeneza kinywaji hivyo n akuweka katika chupa hizo na kusambaza sehemu mbalimbali jijini Arusha.

Mshitakiwa alikana shitaka na kurudishwa rumande baada ya kukosa wadhamini. Kesi yake imehairishwa hadi Novemba 20.

Akizungumzia tukio hilo, mkuu wa usalama wa kituo kiwanda cha Bonite Bottlers, Bw Kundaeli Kuyata alisema, alipigiwa simu na polisi ili kwenda kukagua jinsi mtuhumiwa huyo alivyokuwa akitengeneza soda.

Alisema aligundua kuwa alikuwa anaweka unga wa juisi za Coke na Fanta kutengeneza vinywaji na unga huo ulikuwa umebaki chini ya chupa.

“Huwezi kugundua haraka ujanja wake kama si mchuuzi ndiyo maanaalikuwa anawatapeli wateja wengi. Ule unga hata ukichanganywa vipi lazima kuna chengachenga zinabaki chini ya chupa alifahamisha.

Alienda kueleza kuwa alichofanya mtuhumiwa Mwasapi ni kosa kubwa kwani alitumia nembo ya biashara ya kampuni hiyo badala ya kubuni ya kwake mwenyewe.

JK slams Sumatra for failure to check marine accidents

2009-07-03T02:17:00.001-07:00

The Guardian: Friday, June 5, 2009
By Joyce Kisaka
President Jakaya Kikwete yesterday slammed the Surface and Marine transport Regulatory Authority (Sumatra) for its failure to prevent marine accident.

He sounded the blame in Dar es Salaam at the official inauguration of new ‘Mv Magogoni’ ferry, which has the capacity of carrying 50,000 passengers a day together with 1,000-2,500 cars. The cost of the pontoon is 8.6bn/-

President Kikwete said last year, 28 accidents occurred whereby 49 people died, while 240 were rescued, adding that analysis showed that carrying large numbers of passengers than authorised, cargo, poor sea vessel maintenance, weather and failure to do regular inspections were the main causes of accidents.

“Sumatra should do regular inspections, failure to do so will cause more disasters, he insisted.

Speaking on the issue of the ferry, he said despite the government efforts to have more ferries, construction of Kigamboni Bridge was in pipeline. The president said the National Social Security Fund (NSSF) which is undertaking the project was in the tendering process.

The president mentioned other ferries as ‘MV Kigamboni’ expected to start in September.

Speaking about the new ferry, President Kikwete said he was happy with the achievements made in facilitating sea transport, because the vessel was Tanzania made.

About 30 people got employment and ferry building technology during its construction, and would not continue to work on other ferries like ‘MV Kigamboni’ he said.

President Kikwete however, denied allegations that Kigamboni area had been sold to business in the US and the Arab world, saying all was mere fabrication.

“There is nothing like selling this area, but what I know is that Ilala Municipality will collaboration with the Ministry for Lands and Human Settlements to survey the area,” he said.

Earlier, infrastructure Development permanent secretary Engineer Omary Chambo said the government signed a contract with a Germany company for construction of the ferry in November 2006 at the cost 8.6bn/-

He said Sumatra will do regular inspection in order to maintain the standard of the ferry and avoid accidents.

He said the government will continue with construction of ferries all over the country as it now has money from the World Bank.

TBS calls on other govt agencies to educate public on their functions.

2009-07-03T02:14:00.000-07:00

The Guardian: Friday 19, June 2009
By Correspondent; Gadiosa Lamtey

The Tanzania Bureau of Standard (TBS) has called on each government agency dealing with control and management of good to educate the public on its functions.

The call was made on Wednesday by TBS Head Marketing Unit Daudi Mbaga at the on-going Africa Public Services Week being held at the Mnazi mmoja ground in Dar es Salaam.

He was responding to questions from the public that several government agencies were duplicating duties.

“People are confusing between TBS duties with those done by other government agencies such as the Fair Competition Commission and Tanzania Food and Drugs Authority, but we are operating different constitutional establishments,” he said.

Mbaga called on people to view all agencies as important because all were created as per respective laws and have the force of law to operate.

“The public should not misunderstand our roles. We all target to reach at one specific point and that is quality of goods for the consumer and for the betterment of the nation,” he said.

He said there had been several questions from the public in regard to counterfeit products as many people think that it is only TBS which deals with the issue.

Mbaga called on the public to use the week as a way of learning different issues that have been perturbing them regarding the functionality of government agencies.

Meanwhile Fair Competition Commission Head of Consumer Complaints and Education Department Martha Kisyombe said that counterfeit products worth 1.6bn/- had been destroyed since the commission was established in 2007.

She said FCC would continue to destroy fake products whenever they are found.

She called on the public to report once they suspect that a certain product is fake.

Kisyombe added that FCC was aimed at reducing counterfeit products to ensure that all imported goods meet required quality and standards.

The Africa Public Services Week which started on Monday this week involves more than 160 government institutions and other institutions from some other African countries.

The decision to have public service day was reached by the ministers of Africa responsible for public service who met in Windhoek Namibia in 2000.

The African public day is celebrated at the continental level in one of the African countries once every two years.

Over 200 companies to mark CSR Day on May 22

2009-07-03T01:43:00.000-07:00

The Guardian; Thursday 7, May 2009
By Immaculate Njalangi

The corporate sector in Tanzania will, for the first time, mark Corporate Social Responsibility Day (CSR) on Monday 22, this year.

Briefing journalists in Dar es Salaam, events coordinator Elly Kimbwereza, urged firms and institution which considered CSR as good business practise not to reduce workforce but rather sacrifice profit margins.

Kimbwereza said that Tanzania faced a number of challenges, among them being unemployment compounded by the ongoing world economic crisis.

He said most companies, when faced with the problems they rushed to reduce the workforce, while CSR emphasised that they should consider reducing profits and maintain staffs.

Kimbwereza said that since 80 per cent of the country’s population depended on agriculture, more CSR activities would be directed on it.

He however added that the CSR day will gather high level delegation from various firms and organisations active in CSR activities.

“CSR requires a commitment to social development principles that provide several advantages to communities to help them avoid negative economic, social and environment impacts,” said Kimbwereza.

He clarified that the day would also champion for corporate citizens to become a sustainable model of excellence in offering corporate social responsibility to communities found in the vicinity of their working stations.

The coordinator of the event, Anthony John, said that more than 200 firms are expected to take part in marking the day.

He said CSR goes beyond donations to projects, development programmes and charities.

Budget 2009/10; more of burden to consumers, taxpayers

2009-07-03T01:40:00.000-07:00

THE BUSINESS TIME: FRIDAY, JUNE 12 – 18, 2009
BY; YAKOBE CHIWAMBO, CHERU MATUZYA & ERIC TOROKA

The budget as presented Finance Minister Mustafa Mkulo has been dismissed as burdensome as it takes more that what consumers can pay.

Responding on the 2009/10 Budget, the Executive Director for Tanzania Consumer Advocacy Society (TCAS), Bernard Kihiyo, told Business Times yesterday that at the end of the day consumers would be the ones to foot for the budget.

He said customers would foot, government duties, fees, and taxes, either directly or indirectly. Dismissing the budget, he said it was asking the most vulnerable people in the society to tighten their belts so that to foot for government spending, which in one way or another was politically motivated.

“Regardless or how one views the specifics; government spending on development projects is focused on the quantity say number of schools, dispensaries, hospitals, and kilometres of roads under tarmac built but not on the quality and sustainability on every invested government funds onto those social development projects. It is evidently on the kind of primary, secondary schools, dispensaries, roads which had been built under other budgets” he said…

He said some politicians assume that spending comes from nothing and that any increase in government spending is good because it helps the people.

“There is cost it”, he said, adding it comes in the form of higher payroll taxes, government fees, higher commodity and services prices which cut into family budgets.

He called on the government to improve the tax base-streamlining the private sector to be an engine of the economy while focus on reduction of unnecessary spending.

For his part, opposition MP John Cheyo said the Government should empower a local bank to cater for farmers to moderise cotton farming which had been adversely affected by the global financial crunch. He said the budget was not fair to consumers of hard beverages.

Another MP Nafael Chegeni said he was happy about the budget as it shows how the nation will handle the global financial crisis. He said President Jakaya Kikwete had explained the foundations on how to handle the crisis.

CCM MP Christian Mzindakaya praised the budget for being agro oriented as that was what the majority populace was looking for.

Ignorance drives people into pyramid schemes – Economists

2009-05-23T03:16:00.000-07:00

By Perege Gumbo
The guardian; Saturday 16, may 2009

The emerging and re-emerging of pyramid schemes that have been collecting huge amount of money from common Tanzanians calls for intensification of public awareness campaign over the importance of investing in company shares currently being traded at the Dar es Salaam Stock Exchange, economists have said.

A cross section of economists in Dar es Salaam said yesterday that lack of awareness over the importance of investing in shares at both primary and secondary markets had been driving people to join pyramid schemes, some of them with interest rates as high as 200 per cent.

Chief Executive Officer of Core Securities Limited George Fumbuka said what happened with the controversial Development Entrepreneurship Community Initiative (DECI) signified high liquidity within the community.

“The fact that for the short period that DECI has existed manage to spread all over the country acquiring more than 700,000 members who contributed more than 50bn/- should be taken as an eye opener for the government to embark on strategic awareness campaigns over the importance of investing in the shares,” he said.

About 11 years since the Dar es Salaam Stock Exchange started business, the highest number of investors in the shares has been less that 30,000.

Fumbuka said players in share trading seemed to have excluded the common man by targeting higher and middle class people.

He has re-examination of the mode of awareness plans to the Tanzanians to enable them participate in their economy through buying company shares was needed to reverse the current trend particularly after revealing ordinary people had enough liquidity.

An officer with the Tanzania Securities Limited said the Dar es Salaam Stock Exchange in collaboration with the Capital Markets and Securities Authority needed to embark on intensive awareness programmes.

The officer who sought anonymity said the awareness programmes would increase the level of understanding among Tanzanians on the role and importance of investing in company shares traded at the DSE and other products available at the market.

He said in essence brokers had no funds to undertake such awareness programmes which he termed as critically important for the people to make informed decisions before they invest in the shares and other stocks.

The officer said he believe if the people would be informed they would not risk their monies in pyramid scheme but would rather invest in share stocks.
The government closed DECI operating early this year accusing it of operating illegally by accepting deposits, role reserved for banking institutions only.

THE OBAMA ADMINISTRATION AND ANTITRUST

2009-05-17T05:41:00.000-07:00

By Bert Foer, President, the American Antitrust Institute; May 15, 2009

With the Obama Administration now at least partially in place, it is becoming possible to say some things - but not very specific because there have as yet been no cases - about how the new regime will affect antitrust.

During the campaign, candidate Obama released a statement to the American Antitrust Institute which was highly critical of the Bush Administration' s lack of activity outside of the cartel area.

The statement gives the impression that President Obama is personally on top of the antitrust laws and of an interventionist persuasion. Whether this is true or a result of good staff work is yet to be established. Rarely in US history has a President involved himself in antitrust issues.
President Obama has now made three relevant appointments apart from Professor Cass Sunstein. First, the new Attorney General is Eric Holder and Christine Varney for the key position of Assistant Attorney General for Antitrust. At the Federal Trade Commission, the President nominated a sitting Commissioner, Jon Leibowitz, to be Chairman.

However, activist the new Administration will turn out to be, it will have to deal with one key fact-on-the- ground: the US courts, as a generality, are now quite conservative and hostile to antitrust enforcement, a legacy of the Bush years.

They will not suddenly become more favourably disposed toward antitrust, although it is likely that the Department of Justice's advocacy positions before the courts will be more favourable.

Abstract from the fothcoming issue of ReguLetter, i.e. April-June 2009

To read more, please visit: http://www.cuts- ccier.org

Mwakyembe: haikuwa rahisi kuipa chati TBS

2009-05-09T06:00:00.000-07:00

Na Sarah Mossi
Rai; Alhamis 15-21, Mei 2008

§ Ni maabara ya kwanza Tanzania Kujulikana kimataifa
§ Hata baada ya kustaafu amebaki kuwa kama chapa yake
§ Ni mtaalamu wa viwango, na alivisimamia mwenyewe
§ Sasa aanzisha TCAS kutetea haki na sauti za walaji wote

Leo hii ukiyaangalia mafanikio ya Shirika la Viwango Tanzania (TBS), hukosi kumhusisha na maendeleo hayo aliyekuwa Mkurugenzi Mkuu, Daimon Mwakyembe, ambaye sasa amestaafu.

Mwakyembe (61) amestaafu lakini atabaki kuwa ni kielelezo kizuri cha mafanikio yaliyopatikana ndani ya shirika hili kongwe nchini, alisukuma vyema maabara, alijituma na kubuni mikakati mbalimbali kuhakikisha TBS inakuja juu.

Huyu ni mmoja wa wale wazee waliotumikia taifa hili miaka mingi, tena kwa uaminifu, hii ni hazina ya taifa kwa maneno mengine. Ukiitaja TBS leo hii kwenye kundi la watu, wengine watakuuliza ni ile ya Mwakyembe? Wakimaanisha kwamba iliyokuwa inaongozwa na mwakyembe. Kumbe basi tunaweza kusema lwamba Mwakyembe ni sawa na chapa ya TBS.

Kutokana na umuhimu wake kwa Taifa hili, baada ya kustaafu mwaka 2006, Rai ilimtafuta Mwakyembe kwa mahojiano maalumu, hata hivyo aliomba aachwe kwa wakati huo apumzike. Mwakyembe alikataa kufanya mahojiano wakati huo kwa kigezo kuwa asije kuonekana ‘kimbelembele’au kwamba alikuwa anataka umaarufu. Bahati nzuri tulimuelewa.

Baada ya kipindi kirefu cha ukimya, Rai ilimtafuta tena mwakyembe na kumsihi akubali kufanya mahojiano, akakubali na Mei 7 mwaka huu alifanya hivyo kwa lengo la kuielezea jamii anafanya nini sasa baada ya kulitumikia Taifa miaka mingi kiasi hicho.

“Nilijiunga na TBS mwaka 1979, nikitokea TIPER ambapo nilifanya kazi kwa miaka saba, kule ndiko nilikojifunzia mambo ya viwango.”

Hii ndiyo kauli aliyoanza nayo Mwakyembe katika mahojiano yetu, akieleza namna alivyopata ujuzi wa kuelewa masuala ya viwango vya bidhaa. Anasema kwamba alipojiunga TBS, moja kwa moja akafanya kazi ndani ya maabara, akiwa na mtaalamu wa kuangalia viwango vya petrol na gesi mbalimbali, kama oksijeni, naitrojeni na kaboni dayoksaidi.

Mwakyembe anasema kwamba alifanya kazi hiyo kwa muda na baada ya kutangazwa nafasi za utawala, akapandishwa cheo na kuwa meneja viwango. Aidha anasema mwaka 1992 walistaafu wakurugenzi wengi ndani ya TBS, akiwamo aliyekuwa Mkurugenzi mkuu, Benedict Mwobahe, hapa ndipo alipokabidhiwa jukumu la kuliendesha shirika hilo.

“Unajua mimi nilitoka kiwandani, nilijua kusukuma maabara za TBS na viwango navielewa, kuna International Accreditation, hii nidyo najivunia, nimeandika viwango na kusimamia maabara mwenyewe, TBS ni maabara ya kwanza Tanzania kujulikana kimataifa na kupata sifa, hili nimesimamia mwenyewe.

“Kabla ilikuwa haijulikani kimataifa, lakini sasa viwango vya TBS vinajulikana kimataifa kama kwenye vyakula, bidhaa hata kwenye minofu ya samaki.

Anasema viwango vya TBS vilianza kujulikana kimataifa, Novemba 1996 na kusisitiza sheria za kimataifa za viwango zinasema ili maabara ijulikane kimataifa ni lazima watalamu wa kimataifa waangalie hali ya maabara, ujuzi wa wataalamu, kemikali zinazotumika, pamoja na vyombo vinavyotumika kama vinakubalika kimataifa.

“Sisi kwetu walikuja wataalmu kutoka South Africa National Accreditation System, waliangalia ujuzi wetu, wataalamu, hali ya maabara yetu, vyombo vianavyotumika na kemikali, wakaafiki na kutuma cheti cha kiamataifa,” anasema Mwakyembe.

Lakini anaongeza kwamba, kazi ya kulifikisha shirika hilo hapo lilipo na viwango vyake kujulikana kimataifa haikuwa rahisi kama wanavyodhani, hasa baada ya kukabidhiwa kuliongoza mwaka 1992.

Anasema alipewa kazi ya kuongoza shirika hilo huku likiwa likikabiliwa na ukapa mkubwa wa fedha za kujiendesha. Anasema serikali wakati huo ilikuwa haitoi fedha za kuendesha maabara.

Hata hivyo, anabainisha kwamba hakukata tama, hivyo alianza kubuni mikakati ya kutafuta fedha za kujiendesha, akafanikiwa kukopa Sh milioni 15 kutoka mfuko wa Taifa wa Hifadhi ya Jamii (NSSF).

Anasema kwamba fedha hizo zilitumika kujenga baadhi ya majengo ya utawala, lakini kutokana na uhaba wa fedha wakashindwa kurejesha mkopo huo na NSSF wakakamata gari na vifaa vyote vya shirika.

Kwa mujibu wa Mwakyembe, tatizo lingine alilokumbana nalo alipoteuliwa kuwa Mkurugenzi mkuu ni kutokaguliwa ipasavyo hesabu za TBS. Anasema kipindi hicho ajira pia zilisimama.

Aidha, anasema kwamba kutokana n akuwa na uongozi wa pamoja ndani ya shirika hilo, waliweza kubuni mikakati ya kurejesha fedha hizo na kufanikiwa kulipa deni pamoja na kununua magari ya ofisi pamoja na vifaa vya ofisi.

“Miaka mitano ya mwanzo, mara baada ya kukabidhiwa shirika ilikuwa ni migumu kwangu lakini baada ya miaka 10 tutaweza kujikwamua na sasa wananchi wanajua 0.
umuhimu wa viwango, sasa maabara inatambuliwa kimataifa, TBS inatambuliwa na wananchi, hesabu za TBS zilikuwa hazikaguliwi ipasavyo, lakini baada ya miaka 10 hadi naondoka hesabu zinakwenda vizuri,”anasisistiza.

Mwakyembe anasema kwamba wakatai akiwa madarakani ya kuajiri na kutoa mafunzo kwa vijana wapya kwa kuamini kuwa wakati atakapostaafu bila shaka angefuatiwa na wengine ambao walitakiwa kustaafu kwa mujibu wa sheria na hiyo ingewapa wakati mgumu kutafuta watu wa kushika nafasi zao.

Mwanzoni tuliacha kuajiri, lakini nikaona mara nitakostaafu ningefuatiwa na wengine 10 waliotakiwa kustaafu, tukaanza kuajiri vijana ili tukiondoka wachukue nafasi zetu.

Mwakyembe anajivunia uongozi wa pamoja uliokuwapo ndani ya TBS, wakati akiwa mkurugenzi mkuu a hiyo anasema ilikuwa ni furaha yake kubwa.

“Sikumbuki kuchukua uamuzipekee bila kushirikisha mameneja au wafanyakazi, kama ni makosatulifanya wote, tulifanya kitu kwa uwazi na uongozi wa pamoja. Tumeweza kuboresha maslahi ya wafanyakazi, kuongeza marupurupu, tuliamini wafanyakazi wakilipwa vizuri wataweza kuepuka rushwa, najivunia mno kuboresha maslahi ya wafanyakazi,”anasema.

Mwakyembe pia anajivunia kurejesha uhusiano uliovunjika kati ya Jumuiya ya Wafanyakazi wa TBS na menejimenti, ambao ulizua migogoro ya mara kwa mara kwenye shirika.

“Nakumbuka wakati nachukua shirika mwaka 1992, kulikuwa na uhasama mkubwa kati ya wafanyakazi na menejimenti, nikayamaliza kwa pamoja na sasa uhusiano kati ya menejimenti na jumuiya yao umerudi.”

Mwakyembe anashukuru bodi ya Wakurugenzi ya TBS pamoja na aliyekuwa waziri wa viwanda na biashara wakati huo, Cleopa Msuya kwa kumuunga mkono wakati wote akiwa mkurugenzi mkuu na kusimama kidete kuhakikisha shirika linapata wafadhili mbalimbali kuweza kujiendesha, tofauti na miaka ya nyuma.

“Nazishukuru bodi tatu za mwisho zilitusapoti na kwa kutumia bodi hizi shirika sasa linakwenda vizuri, tukapata wafadhili, David Cleopa Msuya alipokuwa waziri wa Viwanda alitafuta wafadhili SIDA ambao wamejenga yale majengo, kupitia Bodi, serikali ilitusaidia. Lakini nawashukuru mawaziri wote baadae kwa ujumla walitusaidia,” anasisitiza.

Wahenga walisema ujuzi hauzeeki, msemo huo Mwakyembe anautumia ipasavyo na anasema kuwa bado anaendeleza taaluma yake na hayupo mbali na alichokuwa akifanya TBS. Anasema mwanadamu anaweza kuzeeka lakini ujuzi hauzeeki na sasa ameamua kuanzisha Sharika binafsi la kujitolea litakalokuwa na jukumu la kumlinda mlaji (mtumiaji wa bidhaa nchini). Analitaja shirika lenyewe kwamba litajulikana kama Shirika la kutetea Haki za Mlaji Tanzania (TCAS).

Anafafanua kwa kusema kuwa katika utengenezaji bidhaa, kunahitajika mambo matatu ambayo ni mzalishaji, viwango na mlaji.

Anasema katika nchi zilizoendelea kama Marekani, Uingereza, mlaji au mtumiaji wa bidhaa ana sauti katika viwango na kupima. Anasema kwa Tanzania mambo ni kinyume kwa mtengenezaji kuwa na sauti dhidi ya mlaji.

Anaongeza kwamba hali hiyo imemsukuma kuanzisha shirika hilo litakalokuwa na jukumu la kutetea haki za mlaji pamoja na kuyafanya matakwa yake kufanyiwa kazi na watengenezaji bidhaa.

“Hapa kwetu mlaji anamtegemea TBS tu, hajui haki zake na hii tunataka Tanzania mlaji ajue haki zake, nimeanzisha shirika hili mwaka jana, nipo na wenzangu, ndio kwanza tunatafuta wafadhili,”anasema.

Hakuna ubishi kwamba kazi nyingi za TBS kabla zilikuwa hazijulikani na ilifikia wakati wananchi wakawa na maswali mengi yasiyo na majibu juu ya utendaji wa kazi wa shirika hilo.

Mwakyembe katika hilo anakiri na kusema hali hiyo ilitokana na shughuli nyingi za shirika kufanywa kimya kimya na pengine kinyemela zaidi. Anasema mara baada ya kukabidhiwa shirika alipata kuhudhuria moja ya kozi zilizoendeshwa na Taasisi ya Menejimenti ya Ireland, katika programu ya maofisa wakuu wa mashirika kwa ajili ya kuwezesha kuendesha mashirika yao.

“Ilikuwa nzuri, katika programu moja ya marketing (masoko) Mwalimu akasema lazima kila siku ufanye ubunifu, uunde na usherehekee, sasa nikasema kumbe ni lazima usherehekee. Hivi vyeti vya ubora wa bidhaa tulikuwa tunatoa kinyemela, niliporudi nikasema, kumbe lazima hivi vyeti tuvitoe kwenye sherehe na watu wakutusaidia ni media (vyombo vya habari).

“Nikasema bila Media huwezi ku celebrate na wananchi wakakusikia, nikasema Media wakijua watatutangaza nchi nzima tena bila malipo, ulikuwa ni umbumbumbu wetu, lakini training ilini alert. Baad aya hapo tukaweza kwenda juu kutokana na msaada wa Media, hawa wamenisaidia sana kufanya TBS ijulikane na wananchi kuelewa umuhimu wa shirika hili kwao,” anabainisha.

Tofauti na wataalamu wengine mara wanapostaafu au hata kabla ya kufikia muda wa kustaafu hujitumbukiza kwenye siasa kwa ajili ya kutafuta umaarufu zaidi na kuacha fani zao, lakini si hivyo kwa Mwakyembe ambaye alipoulizwa iwapo ataingia kwenye siasa kwa kuwa sasa amestaafu TBS, ilimchukua nusu sekunde tu kujibu, akisema, “Hapana si yupo bwana mdogo,” anajibu bila kumtaja, lakini Mwakyembe aliyepo kwenye siasa juu kwa sasa ni Mbunge wa Kyela, Dk. Harison Mwakyembe mwenye undugu na mkurugenzi huyu mstaafu.

Mwakyembe anatoa mwito kwa uongozi wa TBS kuhakikisha hali ya kifedha inakuwa nzuri na wananchi wanaelimishwa juu ya umuhimu wa viwango katika bidhaa wanazotumia.

“Zipo bidhaa nyingi ukimuuliza mlaji atakwambia anataka nini, kwenye kutengeneza bidhaa tumuulize mlaji anataka nini, kama kukiwa na uelewa mzuri wa mlaji, bidhaa feki zisingekuwepo,” asisistiza Mwakyembe.

‘Syndicate behind fake imports’

2009-05-09T05:59:00.000-07:00

By Patrick Kisembo
The Guardian; Monday 8, October 2007

Counterfeit goods will stop flooring the country only after the government destroys the well-knit syndicate behind their importation, distribution and sale, highly regarded Tanzanian business consultant Nikubuka Shimwela has warned.

Shimwela, once an expert with the National Institute of productivity in Dar es Salaam and now CEO and lead con-suitant with Kasuto Company Ltd Economic and Business Consultants, issued the warming at a workshop on Consultation of Church Leaders on Economic Partnership Agreements (EPAs) held in the city at the weekend.

He said authoritative research shows that counterfeit constitute about 38 per cent of all the products imported into the country, adding that fake products adversely affect both consumers and the government when it comes to destroying them.

“It is very expensive destroying counterfeit products, as clearly seen from the consignment of fake Kiwi shoe polish recently destroyed at Wazo Hill in Dar es Salaam because one has to pay the destruction teams heavily,” he stated.

According to the consultant, it is no easy task controlling the importation of counterfeit goods “because most importers are Tanzanians who deliberately order cheap products from outside so as to reap a windfall upon selling them in the local market”.

“It is not easy to control these products because we local businesspersons form the bulk of the people who import the goods in order to get super profits,” he said.

Shimwela, a member of the Tanzania Ecumenical Dialogue Group (TEDG) warmed that raining in people fond of importing fake products was further complicated by the fact that the whole business is supported and perpetrated by a sophisticated network of people who know how to evade law-enforcement agents.

“It is a very strong network that only the combined strength and force of all relevant government organs can beat,” he noted, adding that many members of the Tanzanian business community had made it a culture to import counterfeit goods.

“It is a very serious problem because they are the same ones who have created a virtual national culture of loving foreign things even if they are if poor quality,” he said.

Participants of the workshop had earlier wanted to know what the authorities overseeing the quality of imports and goods made locally were doing when the country was fast turning into a dumping site for fake goods, mostly foreign junk.

Grace Masalakulangwa of the African Evangelistic Enterprise questioned the government’s capacity to check the importation of counterfeits, regardless of the fact that the country is in a liberal market situation.

She said it was sad for local supermarkets to be fully stocked with foreign products.

“I once saw a heavy duty truck with a container full of substandard light bulbs. When I asked the owner about the origin of the products, he said he had paid all the relevant taxes and duties for their importation,” she explained.

A visibly upset Masalakulangwa said the owner of the container told people who had surrounded the truck of contact the Tanzania Revenue Authority commissioner general it their cared to so as confirm if the container had not gone through all the clearance stages.

“But all the contents in the container were fake and people knew that before it went through the ‘proper’ government channels,” she said.

She challenged government and other authorities “not to gamble with people’s lives by accepting bribers from a few unscrupulous and greedy elements.”

Another participant, Prof Francis Matambalya, named the Tanzania Bureau of Standards as the authority officially charged with ensuring conformity to certified standard and added that the academic world to which he belonged was there merely to educate and sensitise people on such matters.

Problems associated with controlling counterfeit products do not have to do only with the absence of presence or proper mechanisms but also with the manner in which the relevant state organs deals with corruption, he argued.

Chipping in to clarify on some issues after the debate had especially heated, Shimwela said the Government enacted the Fair Competition Act in 2004 and later set up the Fair Competition Commission to deal with counterfeits.

“But as you may be aware, the competition is practically toothless. It only has powers to conduct inspections in godowns and other retail outlets to impound counterfeit products,” he observed, adding that the government is reviewing the law governing FCC to give it legal teeth that bite.

Last month police and FCC personnel impounded large consignments of imitation goods in Dar es Salaam, including Hitachi television sets and Kiwi shoe polish, which sources said were imported from China.

Recently, FCC said half of all consignment of Chinese made goods sold in Dar es Salaam markets are fakes. However, China struck back shortly later, denying the charges and instead heaping the blame on dishonest traders using the Far Eastern country as a transit route for their exports to Tanzania.

Over 200 companies to mark CSR Day on May 22

2009-05-09T05:57:00.000-07:00

By Immaculate Njalangi
The Guardian; Thursday 7, May 2009

The corporate sector in Tanzania will, for the first time, mark Corporate Social Responsibility Day (CSR) on Monday 22, this year. Briefing journalists in Dar es Salaam, events coordinator Elly Kimbwereza, urged firms and institution which considered CSR as good business practise not to reduce workforce but rather sacrifice profit margins.

Kimbwereza said that Tanzania faced a number of challenges, among them being unemployment compounded by the ongoing world economic crisis. He said most companies, when faced with the problems they rushed to reduce the workforce, while CSR emphasised that they should consider reducing profits and maintain staffs.

Kimbwereza said that since 80 per cent of the country’s population depended on agriculture, more CSR activities would be directed on it. He however added that the CSR day will gather high level delegation from various firms and organisations active in CSR activities.

“CSR requires a commitment to social development principles that provide several advantages to communities to help them avoid negative economic, social and environment impacts,” said Kimbwereza.

He clarified that the day would also champion for corporate citizens to become a sustainable model of excellence in offering corporate social responsibility to communities found in the vicinity of their working stations.

The coordinator of the event, Anthony John, said that more than 200 firms are expected to take part in marking the day. He said CSR goes beyond donations to projects, development programmes and charities.

Education key to sustainable future, says global consumer body

2009-05-09T05:55:00.000-07:00

By Allen Mushatsi
Business Times; Friday 17 – 23, October 2008

Consumer organizations round the world have called on national governments to implement the UNEP Guidelines on Education for Sustainable Consumption in formal education. The message has been put forward by consumer international body which organized Consumer Action Day recently worldwide.

The Tanzania Consumer Advocacy Society (TCAS) under its Executive Director Bernard Kihiyo, joined global consumer movement in call for education for sustainable consumption. The coordinate day of action has bee organized by the global consumer movement as a means of empowering consumer to make responsible decisions from a young age.

As outlined in UNEP’s here and now: Education for Sustainable Consumption, sustainable consumer choices are crucial to social development and environment protection. Sustainable consumption is also a key theme within the UN Decade of Education for Sustainable Development.

“This is why Consumers International member organizations around the world, including Tanzania Consumer Advocacy Society, are calling on ministries of environment to endorse the UNEP Guidelines and asking ministries of education to incorporate the recommendations on sustainable consumption within the national curriculum”, said Kihiyo.

According to the organisers, the aim of the consumer action day is to draw attention to the importance of Education for Sustainable Consumption and the Guidelines. Moreover, it gives ministries the opportunity to publicly voice their support for the adoption of the Guidelines on national level as part of formal education in the national curricula and on international lever as part of 10YFP.

During the event, Samuel Ochieng, president of Consumer International, said, “The world recognises the need for sustainable choices if we are to meet our development goals and secure a fair and just future for our children. Consumers, government and corporations must all take responsibility here, and we believe teaching our younger generations about sustainable consumption practise is the best way to help realise that responsibility in the long term.”

On his part Daimon Mwakyembe, Chairman of Tanzania Consumer Advocacy Society said, “it is only when Tanzania consumers are fully aware of their rights and responsibilities that Tanzania can attain sustainable development, which covers all people from all walks of lives.”

Consumer International (CI) is the only independent global campaigning voice for consumers. With over 220 member organization in 115 countries, CI builds a powerful international consumer movement to help protect and empower consumers everywhere.

Tanzania Consumer advocacy Society is a support member of consumes International’s activities. It is an independent consumers’ voice whose intention is to forge a strong Consumers-Private-Public-Partnership with all sectoral regulatory authorities existing in Tanzania, local and international non-governmental organizations to supplement government efforts on promotion and protection of consumers’ rights in Tanzania.

Bulk of Kariakoo imported good fake

2009-05-09T05:52:00.001-07:00

By Angel Navuri
The Guardian; Wednesday 12, September 2007

The fair Competition Commission (FCC) has said that about 50 per cent of all imported goods from China and sold in Kariakoo shops in Dar es Salaam are counterfeit. Speaking to the Guardian yesterday, the FCC Director of Consumer Affairs and Administration, Michael Shilla, said many local traders took sample of specific products to China where fake brands were manufactured.

“Traders take the samples and fly with them to China to have substandard goods manufactured for them. They then sell them in the local market at a cheaper price compared to that of original goods,” said Shilla

Shilla said that counterfeit goods had a negative effect on the country’s economy as well as genuine entrepreneurs. “Imitation goods, whose quality is poor, are widely sold in Tanzania market at low price. Most of them pose harm to human beings,” he said.

Electronics are among the leading phone goods overwhelming the Tanzania’s chief market location – Kariakoo in Dar es Salaam. He said dealers in genuine goods were incurring losses as customers opted for cheaper items, causing the government to lose projected revenue.

Shilla said bogus products were a major problem in the country at the moment. He said the commission was waiting for the government to amend the law regulating its functions so as to give it more teeth. “At the moment, we are only allowed to inspect goods at the port and not otherwise. We can only inspect the shops with a court order in hand,” he said.

He said in most cases, they got court orders rather late, only to find out that the suspected dealers had already hidden the counterfeit goods. “We can catch the fake items but we are normally required to get a court order, which, in most cases, takes too long to allow us nab the culprits,” he said.

Asked why FCC preferred burning counterfeits to burying them, the official said: “Environmentalists have advised us to burn them because some have chemicals which are a health hazard. Burying them could result into some irresponsible individuals digging them out and injecting them into the market.”

Asked how they differentiate between an original and fake brand, the official said they normally collaborated with the manufacturer’s representative of a specific product. Responding to a question on measures taken against the illegal dealers, the Commissions legal officer Laiton Mhesa those caught were required to foot the cost of destroying the condemned merchandise or risk a three-year jail sentence or a 5m/ - fine.

On whether such action had helped to curb the flow of given goods, Mhesa said the punishment had in a way helped to reduce the number of those involved in the illegal business.

At least 300 cartons of fake Kiwi shoe polish products worth 21m/- were recently impounded during a crackdown against counterfeit products, which have saturated the country’s markets.
Source from business circles have revealed that most if the counterfeit products originate from China.

In an exclusive interview with the Guardian yesterday, FCC Consumer Complaints Officer Frank Mdimi confirmed that a consignment of imitated Kiwi shoe was impounded two weeks ago by the Tanzania Ports Authority (TPA) following a tip-off from a Good Samaritan.

The 261 cartons-each containing 30 boxes and the 42 others cartons, each with 20 boxes, were imported from China, being property of Nkumba Amon Kitula and Nchikichi Trading Company, respectively. The fake Kiwi cartons were destroyed yesterday at Wazo Hill on the outskirts of Dar es Salaam.

“We got a tip off from a Good Samaritan that there was a bogus Kiwi stock at the port. After the alert, we carried investigations and unearthed the consignment,” said Mdimi. He said that normally, before the commission destroyed the products, quality inspectors were supposed to verify that the goods were counterfeit.

“People always think that we are not doing our work. However, the Merchandise Marks Act of 1963 doesn’t give us the power to seize fake products that are already on the market,” he said.

Police on Sunday impounded a large number of alleged counterfeit Hitachi TV sets, which were also imported from China, impeccable sources told The Guardian.

World must work on violations of consumers’ rights

2009-05-09T05:51:00.000-07:00

By Eric Toroka
Business Times; Friday 30 may – 5 June, 2007

The issue of violation of consumers’ rights has not been given due weight by a number of countries in the world and therefore urged action is needed to tackle the problem as contrary to that many states will fall short of realising their MDGs, says executive director for Tanzania Consumer Advocacy Society (TCAS), Bernard Kihiyo.

He said if we real want countries to make progress in reducing poverty and attaining the MDGs Tanzanians have a think twice and analyse the trend of events with the intention to help countries realise the intended goals.

In 2000 the UN Millennium Declaration, adopted at the largest-even gathering of heads of state and governments, committed countries (rich and poor).

The TCAS executive director elaborated, he should acknowledge; this strategy as one of the best ever being adopted by the UN and agreed that by 2015 all 191 United Nations member state should have:
· Eradicated extreme poverty and hunger,
· Achieved universal primary education;
· Promoted gender equality and empower women;
· Reduced child mortality;
· Improved maternal health;
· Combated HIV/Aids, Malaria and other diseases;
· Ensured environmental sustainability;
· Developed a global partnership for development “We are almost half way to 2015; however, I have the feeling that so many countries around the world (including Tanzania) will far short the Millennium Development Goals if the world will not urgently take into account consumers’ rights violation as the matter of concern” he said.

For instance, how can a country eradicate extreme poverty and hunger, if the market is full of counterfeit products, poor services and unfair charges?

How can a country eradicate poverty while business form cartels to reap more profit out of the little income/resource of the poor especial on food, fuel, essential human drugs, building materials, farming equipment and the like?

How can a country reduce child mortality; improve maternal health; combat HIV/Aids, Malaria and other diseases; while the market is full of fake drugs of all sorts with very poor customer services characterized with unprofessional conducts; with millennium checks and balance by consumers themselves and other stakeholders?

How can a country ensure environment sustainability while consumes and producers don’t know their responsibilities to attain sustainable consumption and production? For instance, the demand for safe sanitation and environment depends far more on hygiene education.

“How can the countries develop a global partnership for development while trade polices in developed countries remain highly discriminatory against developing country exports at the same time encourage sabotage on economies of weaker partners (unfair contracts, counterfeit goods) as a result, we found in our countries more globalization losers than winners”, Kihiyo noted.

Others factors such as declining lever of aid pledge were made by rich countries to allocate at least 0.7 per cent of their gross national income to development by 2015 but; many countries are by far behind this, how can MDGs be attained under these worlds must be backed these circumstances?

Rich countries have made promises to support MDG but these worlds must be backed by deeds.

It is not about hard work, support or individual efforts that will reduce poverty, but also it is about all potential opportunities to eradicate poverty; should be part of the system with ensure equal rewarding to the hard work or opportunity gained or given to individuals especially the poor.

Thus, to achieve a higher rate of successful national strategic program interventions to achieve MDGs, consumer rights protection and a promotion program is of paramount importance.

Section IV 1999-Un Consumer Protection guidelines, underscores the need for governments and international organizations to promote and facilitate capacity-building in the area of consumerism.

Tanzania to Commemorate Consumers’ Rghts Day

2009-05-09T05:48:00.000-07:00

By the Express reporter, Singida
The express; 21-27 February, 2008

Tanzania will join other countries in the world to commemorate the world Consumers’ Rights day, which will be held on 15th of next mouth.

Speaking at in interview in Dar es Salaam on Tuesday, the Executive Director of Tanzania Consumer Advocacy Society, Bernard Kihiyo, said the commemoration day was set to address consumer rights violation challenges in the world, including Tanzania.

This years World Consumer Right Day theme is ‘Junk food generation - to the marketing of unhealthy food’.

Junk foods are foods high in sugar, salt and fat content, and as result of confusing labelling and extensive promotion it can be difficult to tell apart what food of drink is healthy or not healthy.

He said TCAS intend to organize consumers’ week, eventful consumers’ rights related activities days, before the climax of commemorating the World Consumers Rights Day.

On 13th, March, TCAS will convene a round table meeting to sensitize people about marking the WCRD on 15th march.

The society also plants to hold a press conference to extend an invitation to members of the general public, media houses, and members of professional bodies, like medical doctors from Muhimbili, Tanzania Bureau of Standards personnel and Tanzania Food and Drugs Authority personnel, to take about their efforts to curb junk food generation, and to determine a way forward for this campaign.

Others activities include conducting a Round table meeting to celebrate WCRD with the focus on consumers’ empowerment, and awareness creation on consumers’ rights and remedies on the one hand, and on the other way sounding a note of warning about junk Food Generation.

During the day, TCAS will hold a peaceful rally from Kariakoo to Mnazi Mmoja grounds, in the morning, later to make a key word on World Consumers’ Rights Day at Mnazi Mmoja grounds, where TCAS management group representatives and key government officials will deliver speeches.

The main message to mark the day will focus on awareness creation of junk food Generation, throughout the final event and through media coverage by newspapers, radio and Television.

World Consumers’ rights Day have its origins in former US President John F. Kennedy, in his 15th March 1962 declaration to the US Congress.

World Consumers’ rights Day was first observed on 15th March 1983 in the US and UK, later in the developed world, Egypt, Kenya, Zimbabwe, Nigeria, Ghana, South Africa, just to mention a few, and has since become an important occasion for mobilising citizen action under the leadership of the world consumers’ organization body know as “Consumers International”.

Lease financing and Tanzania’s economy

2009-05-09T05:46:00.000-07:00

By Eric Toroka
Business Times; Friday, 7-13 march,2008

The economy of Tanzania is said to be missing the multiple effects that are associated with the lease financing business. It is general agreed that lease financing is a significant financial marketing product. This is in the sense that is furthers capital investment, SME development, domestic production, industrial diversification and proper people welfare and infrastructure improvements – thus overall contributing to national economic growth.

Speaking in an interview with Business Times in Dar es Salaam Tuesday last week, an expert in the field, Bernard Elia Kihiyo, said “Tanzania was missing the multiple effects of the leasing finance business”, adding that” leasing can provide additional marketing channels for financial services”.

Kihiyo, who is the executive director of the Tanzania Consumer advocacy Society (TCAS0, we want on: “Equipment suppliers can link customers to leasing companies and banks …these can also provide credit lines to independent leasing companies once these are established”.

Finance lease is similar to capital lease. This is when a financial institution effectively allows a firm or an individual to acquire or use an asset or equipment, even if the firm never owns the asset.

Typically, a finance lease will give the lessee control over any asset for a large proportion of the assets useful life, providing the lessee with the benefits-and risks-of ownership.

Kihiyo said one of the effects of lack of access to leasing finance is that doing business will require huge sums of money.

“This is because a lot of capital would be tied up in equipment, installation, freight, consulting and software, living fewer funds available for items such as inventory, safety improvement, advertising consumer’s education, marketing and personnel,” he explained.

Usually, “banks want a 20 – 40 per cent down payment instead of upfront 100 per cent costs of not with leasing finance support”, he said, noting that “buying or selling a house, for example, was going to be a difficult task, as the country would be having the so-called stagnant economy with idle or dormant capital assets.

“Without leasing finance”, Kihiyo went on, “business and individuals would not be protected from obsolete equipment, and the costs associated with property disposition of outdated equipment.

“Certain lease structures are 100 per cent tax-deductible. The full cost of leasing can often be treated as an expense item for income tax purpose, and may result in a large tax deduction. The opposite is true-as business or individuals have to pay a substantial amount on tax,” he stressed.

“Without a proper legal framework, financial institutions and service users operate in fear-also creating a great chance for banks and other financial institutions to give loans with fear”.

Financial leasing is a system which allows people to access financial services from banks through hiring equipment of assets. This is done through the so called hiring or contractual purchase of items such as production equipment, working tools, cars and homes mortgage.

People in developed and stable economies routinely enjoy the benefits of leasing finance – especially in electronic goods such mobile phones. When selling or buying houses, and also for business, lease financing is one of the keys to success.

“We would like to see companies in Tanzania – such as Vodacom, Celtel, Tigo, and Zantel – assisting local and poorer customers in acquiring durable and reliable mobile handsets. The real estate industry could also get into similar arrangement in selling and buying homes – thereby stimulating the dormant capital on housing,” Kihiyo stated.

In regard to the treatment of leasing for local financing banks – a majority of whom are not doing leasing finance – he said:

“Leasing finance is one of the most difficult forms of financial business especially in a turbulent economy like Tanzania’s with unstable currency and an inflation rate that sometimes reached double digits …. That is one of the reasons why a majority of the local banks are not investing in this venture”.

A part from the tax benefit, Kihiyo said the lack of legal and regulatory frameworks that are necessary for financial leasing development, mobilization and proper channel of available financial resources into leasing operations is one of the limitations that prevent most of the local banks from venturing into finance leasing.

“Nonetheless, TCAS believes there should be proper protection of interests of financiers, the government and customers … There should also be clearly laid out rules and regulations, such as the right and obligations of parties, as well as the allocation of financial risks … these are not present in Tanzania”.

Recently, the programmes manage of the International Finance Corporation (IFC) under the SECO-IFC Tanzania leasing programme, Moyo Violet Ndonde, mentioned some of the achievements recorded in Tanzania since its inception towards the end of 2005.

These include increasing understanding and awareness of finance leasing, as well as its importance and benefits to the national economy and SMEs amongst stakeholders.

“During the year under review, various programme initiatives supported by Switzerland included the publication of a quarterly newsletter and the launch of a public website, as well as sensitization seminars reaching over 4500 stakeholders in Tanzania,” Ndonde noted.

The first reading of the Finance Leasing Bill had already been gone through in the National assembly, and it was expected that the Bill would be enacted by the Parliament during the next sitting this year.

She explained that the Bill includes proposals for amendments of other laws affecting leasing, as well as for the clear application of the extant tax laws on finance leasing development in Tanzania.

“About six new independent leasing firms, both domestic and international, were in the process of being established – with the expectation of more players in the future”, she noted.

Consumer Education Essential to Curb Unfair Trade Practices

2009-05-09T05:45:00.000-07:00

By Eric Toroka
Business Times; Friday, 10-16 October, 2008

For quiet sometime, fuel consumers in Tanzania have bee victims of unfair practice by thieving traders who temper with scales and measurements in various petroleum stations. And on several occasions they never notice that hey are being robbed, and even when they know, they don’t know where to go assistance.

Another problem faced by consumers is adulteration-mixing fuel with kerosene, which compromises quality, leading to increased costs of maintenance and repair of vehicles. In response to such situations, some fuel consumers have opted to purchases fuel in light containers to avoid being cheated.

Worse still, there are about four government sect oral regulatory authorities and agencies in controlling and coordination of fuel and fuel business. These include Tanzania Bureau of Standards, Energy Water and Utility Regulatory Authority (UWURA), Weight and Measurement Agency (WMA) and Fair Competition Commission (FCC).

Despite the existence of the above regulatory bodies, consumer abuse and violation of their rights is still on the rise and is affecting dearly the economic welfare of many consumers in the country.

According to Tanzania Consumer Advocacy Society (TCAS), Executive Director, Bernard Kihiyo, most of these regulatory bodies lack the capacity to investigate, litigate and monitor the increasing consumer abuses among fuel suppliers and service providers in the market. He says that all of them are still understaffed and lack resources to perform their duties such as consumer protection all over this country.

TBS for instance, he said that TBS deals with quality control in this respect, EWURA with fuel business regulation, weight and measurement agency with monitoring of calibration in support of EWURA, FCC ensure fair conducts such on the part of consumers and deals in the market.

He warned that no matter how strict the inspection on quality, regulation, and measurement could be, it is impossible to inspect all the time given the weaknesses still prevailing in the regulatory bodies.

“The only best backup solution to this is to build a society of well-informed and knowledgeable consumers who can report for any problem to the respective authorities for action, he said.

He said that all the above authorities are not well known to the majority of consumers, whom he said are also ignorant of the roles these regulatory bodies play in protecting their rights.

“These authorities should give relevant consumer education and sensitise the public on complaint procedures and give contact information in case consumers needs their assistance,” he said.

His advice that telephone numbers of these authorities’ consumer complaints departments must be placed at each dispensing station. Through this way consumers will supplement the gaps of most of these authorities by reporting any discrepancy found in the market.

TCAS is working toward supplementing government efforts by giving consumer education on changing consumer behaviour and altitude toward their feeling of powerlessness through advocating for economic justice and their consumer rights.

He said that his organization (TCAS) is in support of the idea that fuel traders at petrol stations be obliged to apply transparent pipes instead of the current black ones that are a majority source of cheating.

Additionally, he said there must be deliberate efforts by the government to strengthen regulatory institutions and building their capacity to deliver the intended goals. If these authorities work to their full capacities, they will contribute enormously to reduction in acts which lead to the marginalization of the poor to acquire their economic potentials and hence help to alleviate poverty.

TCAS works on promoting access of citizens to information on product safety, and advises them on where to go fight for their rights, as well as promoting wide public discussion on challenges facing consumers in Tanzania. “TCAS works on supplementing government efforts of working toward emergence of knowledgeable consumers in the market.”

Kihiyo said that its only when consumers are educated, treated equally and fairly into all economic forums and there be equitable growth, that the problem of consumer exploitation will be solved.

Students support consumers against counterfeits

2009-05-09T05:43:00.000-07:00

By Eric Toroka
Business Times; Friday, 20-26 June, 2008

More than 200 students from local higher learning institutions have formed a group that will drum-up support for consumers against sub-standard products being sold in the country.

Speaking to this paper during the first meeting on consumer rights held in Dar es Salaam last week, Ally Suleiman, a second year student from the University of Dar es Salaam (UDSM), said that the student team would also educate the public on the effects of substandard products.

The students are from the University of Dar es Salaam, Ardhi University, the Institute of Finance Management, the College of Business Education (CBE) and the Dodoma University. The meeting was organized by the Dar es Salaam based Tanzania Consumer Advocacy Society (TCAS), attracting more than 150 students.

He said the violation of consumer’s right had been on the increase and in that case they were intending to educate consumers on their rights. “We have been witnessing a lot of violation of consumer right in almost every thing starting from food, Many people do not take trouble to red the expiry dates of product or cannot even distinguish between fake and genuine ones, so we want provide them with education to clothes, unfortunately they do not have a place to deliver their complaints”, he said.

Suleiman said the student had planned to be part of consumer’s voice especially in protecting their rights once violated. Speaking in the same meeting, Dr. Rose Shayo, from the Institute of Development Studies at UDSM, thanked the students for their decision, but insisted that the move should be based on education about fake goods.

She said a number of consumers across the country failed to identify fake goods, therefore, there was a need for launching an intensive education campaign to help them. “Many people do not fake trouble to read the expiry date of product or cannot even distinguish between fake and genuine ones, so we to provide them with education,” she said.

She revealed further that even the victims of those fake products failed to exactly know they should lodge their complaints and instead up lamenting for incurring unnecessary costs. Dr. Shayo urged all academicians from higher learning institute in the country to climb on the bandwagon.

For this part, the TCAS chairman, Daimon Mwakyembe, said his society had planned to conduct more campaigns on educating the public about the effects of sub-standard products through various ways.

The lobby group claims that 80 per of consumers in Tanzania do suffer from lack of awareness on what rights they really entitled to enjoy from the suppliers of goods and services. In recent years, he said, investors were apparently becoming more concerned to invest in companies that were seen to be acting in a socially responsible manner.

According him, transparency and a commitment to responsible business could give a company an advantage in securing public contracts. Mwakyembe, the immediate past Director General of the Tanzania Bureau of Standards (TBS), said the goal was to work toward addressing consumer’s rights for quality products as well as getting best deals for the value their money.

TCAS, which has been in operation since 2005, provides an advocacy platform that makes the voice of consumers be heard, hence making markets work better for both urban and rural consumers in Tanzania.

TBS says it will give support to bonafide manufacturers

2009-05-06T06:56:00.001-07:00

By Mgeta Mganga
The Guardian; 3.March.2009

The Tanzania Bureau of standards (TBS) has said it will always stand alongside manufactures whose products have been competition with counterfeit products. This was revealed last week in Dar es Salaam by TBS Director Charles Ekelege, soon after granting standards mark licences to manufactures whose product have been proved to conform to required standards

“We will happy you by leading the fight against substandard products in the local markets”, he said, adding that one of the Bureau’s statutory function was to implement standards and to promote standardisation and quality assurance services in the country.

He said through destination, entry point, surveillance inspections and the on- track Pre-shipment Verification of Conformity to Standards (PVoC) programme scheduled for launched In March; TBS has enhanced the war against substandard products.

However, he called upon manufactures whose products have been certified not to let TBS down by taking quality for granted. We will make follow-ups to ensure that you keep producing according to the standards against with your products have been certified,” he insisted.

A total of 10 manufactures had their products certified to use the TBS standards mark of quality. Explaining the success story of TBS, he said it has enhanced its standardisation and quality assurance activities through sensitisation seminars throughout the country, and destination, entry point and surveillance inspections.

He said the Pre-shipment Verification of Conformity to Standards (PVoC) programme is on track and will be launched in March. He mentioned other areas of success as the functioning of the Packaging Technology Centre (PTC), accreditation of labs and the on-track Client Service Charter, which due to be finalised by July.

Meanwhile, Industry, Trade and Marketing minister Dr. Mary Nagu said there was no reason whatsoever, for the country to have substandard and counterfeit products in the local market.

Speaking during inauguration of TBS Executive Council (EC) recently, she urged the standards body to educate student on quality matters, and to improve the nation’s ability to compete internationally.

EWURA NOT PROTECTING CONSUMERS

2009-05-06T06:50:00.000-07:00

By Sunday Moshi
The Guardian; 27.January.2009

Many people had the feeling long before December 11, when Yona Killagane, the director of the Tanzania Petroleum Development Corporation was quoted by a news paper saying oils dealers have been robbing consumers for a long time.

He explained that there was no competition but only about four oligopolistic companies that were importing petroleum products and then selling it to others at price that best suited interests and passed the heavy load on to the consumers. Regarding the quantity they imported, the senior official said it was not true that they were importing large stocks that lasted for over three or months, hence sold it at the high price.

In support of the director’s affirmation, the deputy minister for Energy and Minerals, Adam Malima, said the oil dealers were importing small amount of oil, fearing further price decline in the world market. “The availability of the commodity as from today (December 29, 2008) is satisfactory since we have stocks to last for month demand,” the deputy minister had said.

However, contrary to the deputy minister’s statement, oil dealers including BP, Gapco, Oilcom and Oryx in separate interview by the press, said they could not lower the prices since they were still clearing the old stock. It should be remembered that the deputy minister said that this after there had been a brief scarcity of oil in the country, particularly petrol. One BP official further confused the public when he said that the government should not pressure oil dealers to slash down prices as it was aware of the real situation.

One wonders what that real situation the government was aware of: was there another situation than the global oil price decline and availability of the commodity in the country? Were there authorized parties flourishing in the high oil sale’s proceeds as benefactors? Or was it merely the policy of privatization or free trade which should indeed be left free to strangle the Wananchi? This needs clarification because heavy clouds of doubt still hang in the air and there are a number of unanswered questions. Nevertheless, what was clear was that President Jakaya Kikwete called upon EWURA to regulate the prices. There would be no way out of the problem.

As we have seen, the deputy minister for minerals and energy said he dealers were importing small amounts fearing global price decline. This minister was also quoted by a daily English language newspaper of January 1st, as saying that Somali piracy was did not have a hand in the fluctuating oil price. However the EWURA communications and public relations officer, Titus Kaguo, said the commodity’s shortage had been caused by delayed arrivals of tankers in Dar es Salaam port,

Citing security reasons linked to increased piracy of the Indian Ocean cost of Somalia. This is reported in an English language daily newspaper of December 29th - the same day the minister dismissed such allegations.

After the dealers had been fleecing the public for a long time the TPDC director then hit hard on oil dealers stressing that indeed they had been unfairly milking the public. EWURA still kept silent until a month later when it acted by slightly slashing the price, but not coming to even a quarter of the world price decline.

A Swahili language daily newspaper of January 2nd, this year reported that new prices were to be 1,166/- per litre of petrol and 1,271/- for diesel. Before these prices were announced, petrol was selling at between 1,400/- and 1,600/- per litre, while diesel was selling at 1,300/- and 1,400/-

If we turn to the price of the commodity in the world market in July, 2008, we find that it had reached USD 150 per barrel of crude oil. Pump prices in the country were then at 1,500/- per litre of diesel. Today as the world price has dropped to USD 36 a barrel, EWURA has slashed the retail price of diesel to 1,271- and petrol to 1,166/-

The authority has also set the price of kerosene to 814/- and 875 for Morogoro and Dar es Salaam respectively. Only about three weeks ago the commodity was selling at 770/- per litre in Morogoro. So are the new prices in favour of dealers or consumers? Is the reduction effected by EWURA really significant?

To elaborate my point, let us play with figures: Is the ratio of 150: 1500 equivalents to 36: 1166? Is it not 36: 360? Oil dealers might laugh at this figure, claiming oil cannot be sold at 360/- per litre. They may even call the figure a daydreamer’s wishful thinking as they enumerate a number of costs like flight, insurance and many others.

However, their argument is wrong because the costs they are talking about have always been there regardless of price fluctuation. These costs did not emerge from the price decline and under circumstances, the price cannot came down to 360/- , but cannot be above 1,000/- either.

To be sincere, may I point out this: EWURA is an organ comprising of people like oil dealers and consumer as well, but there is a 1 per cent levy imposed on every litre of oil for EWURA – a point which makes EWURA more like dealers than consumers

President Jakaya Kikwete said EWURA was quick to accept pump rises announced by dealers who justified them to rises in world prices, while they were silent on the drastic drops of the world prises. One editor of an English language daily recently wrote that EWURA and the oil importers have formed a cartel. Indeed it is! I wonder why majority of Tanzania do not see the truth in this opinion because the former is not doing enough to protect the consumer.

A columnist in a weekly newspaper of January 3rd – 4th has written that EWURA lacks a full mandate to order or instruct any oil dealer to reduce the price at the pump even if the oil bought at zero cost. If it really can’t do this, how can it serve as a mediator between consumers and the dealers? Moreover, EWURA has something to lose by lowering the oil prices.

Under these circumstances, world oil price drop will not benefit Tanzanians as a nation, but a few who stick on high prices and those who keep such people in the business. It is hard to say why these dealers are not restrained.

A daily English language newspaper of December 27th 2008, reported that Zambia which is landlocked and imports its oil through Tanzania, imposed an oil price reduction of 24 per cent, due to the sharp decline of global oil prices. Considering the huge transport costs above those of our country, it’s a pity that the Tanzania Government which preaches better life to every Tanzanian, has been waiting for its agencies to have mercy on its poor and voiceless population, as it is being fleeced by the greedy, unscrupulous and wealthy minority.

It’s my pleasure to remind the secular authority that the sharp price decline of petroleum product in the world market should bring relief to the whole nation as fares and freights are lowered by Sumatra.

Against Sumatra might say there are several factors which account for the high fares and freights, as one official claimed that oil counts for only 45 per cent of vehicles running costs.
But when the 20 per cent raise was imposed on bus fares in July 2008, it was attributed solely on oil. What about this drastic decline of 60 per cent and above in oil price?

Moreover, do the authorities want to tell the mass that the global oil price decline benefits consumers? This cannot be; may be if the government is a sleep, or has neglected its subjects. I know this government is neither a sleep nor has its forgotten its subjects.

Consumer Society declares war on low quality products

2009-05-06T06:47:00.000-07:00

By Mgeta Mganga
The Guardian; 01.April.2009

Tanzania Consumers Advocacy Society, TCAS which has received affiliation membership to the world Consumer International, has wowed to be more active in protecting consumers against poor quality product,

Speaking in an interview in Dar es Salaam on Monday, the TCAS executive director Bernard Kihiyo said: “it is good to let consumers know that; since March, 2009; Tanzania Consumer Advocacy Society had been accepted by a very reputable world consumers association known as it’s affiliated member”, he said.

Kihiyo said the move had been possible after collective efforts by all TCAS members for the past two years. “This will allow TCAS to join about 255 other consumer associations in fighting for consumer rights in Tanzania and the world over”, he said.

He noted TCAS will be pushing for the enforcement of product standards and quality laws to protect consumers from consumption of products of poor quality. He asked the government to put in place a mechanism to enhance the enforcement of standard and laws in the wake of massive circulation of low-quality products in the country.

He said enforcement of legal procedures and regulations to protect consumer against poor-quality products was difficult as many consumers were still unaware of their rights. Kihiyo said domestic markets were flooded with low-quality products, including edible oil and spare parts.

“Apart from foodstuffs, there several imported products with are below standard, lives and health of consumers,” he said. In addition to that he said “It’s high time the government, through relevant authorities and organs, started protecting consumers against the dangers posed by poor-quality products imported into the country”.

CONGRATULATION TFDA

2009-04-17T02:15:00.000-07:00

I, the chairman of Tanzania Consumer Advocacy Society, Mr Daimon Jim Mwakyembe would like to take this opportunity to congratulate TFDA team for their tremendous job of testing, identify, and inform the general public on the problem of fake medicines in our market. These TFDA efforts have helped consumers to be well informed and protected if the recommended efforts; including the calling back all fake identified medicine will be implemented in full force. TFDA have to make sure they keep up the good work they have started.

Based on the efforts done by individual consumers from Moshi, Mwanza, Dar es Salaam, Mbeya and Arusha of reporting some violation cases to the authority, these have shown that; if consumers will be informed, educated on their rights and responsibilities the war against substandard goods and consumer’s rights violation will be easier. If consumers are at the forefront of this war; they can be the best protectors of their rights.

This is a very serious war, as we still have, so many substandard goods including so many fake medicines and worst enough unscrupulous traders are continuing importing substandard goods into our markets; with the results of consumers not getting back actual value for their money and on the worst scenario, killing of innocent consumers through these products. For instance TFDA has proved that; some of malaria drug has only 0.4% of substances required (sulphametropyrazine) instead of 90% to 110%; one can see how fatal and serious this war of fighting for substandard medicine in our market is to our country.

These unscrupulous traders should be regarded as killers of innocent people; their charges among others, should all include killing charges.

Tanzania Consumer Advocacy Society is as an independent non governmental consumer organization; will always work hand in hand with all sectoral regulatory authorities, including TFDA to promote, protect, advocate, for consumers’ rights and responsibilities including the spirit of reporting any irregularities found in our markets.

CUTS International proposes adoption of World Competition Day

2009-04-17T01:58:00.000-07:00

National governments, international agencies, donors and the global policy community are increasingly realising the need for effective implementation of competition policy and law (especially in the developing and least developed countries) in order to derive the benefits of trade and economic liberalisation, and evolve well-functioning markets. In addition to stimulating efficient and equitable growth patterns in an economy, a healthy competition regime helps preserve consumers’ interests.

Given that the history of competition administration in most developed countries has been longer as compared to that in most developing and least developed countries (where competition regimes are at an extremely juvenile stage in many countries), it is imperative that the more experienced ‘Northern’ countries commit to cooperate with the less experienced ‘Southern’ countries to provide technical assistance and capacity building support for evolution and implementation of competition legislations therein.

For the advanced countries, the outcomes of such cooperation would be helpful to raise the confidence of their investors to invest in these developing (and least developed) countries; while for the developing (and least developed) countries such cooperation would help them have access to higher levels of understanding and better skills to implement their national competition regimes. It would therefore be a ‘win-win’ situation for both the cooperating parties.

It is however important that the framework for such cooperation and the road map for its implementation is carefully constructed. For this to happen, it is critical that the norms of such international cooperation are developed under the auspices of an international organisation. CUTS proposes this function be attributed to the International Competition Network (ICN), and that it features as a permanent element in all ICN annual conferences.

In order to ensure continuity in this process of cooperation on competition and to facilitate its formal endorsement/ adoption by the international community, it would be useful to announce the initiation of such a process on a date that is recognised as World Competition Day.
Given ICN’s engagement with this process, this date could be earmarked for kick-starting the annual ICN conference, every year.

ICN is the biggest gathering of competition practitioners from across the globe. World Competition Day, each year would therefore mark an occasion when elements of global competition governance are discussed and determined.
It would be befitting for such a landmark decision (pertaining to international cooperation on competition) is taken in Switzerland – the venue of the forthcoming ICN Conference (2009).

Having a day assigned as World Competition Day would provide an occasion to celebrate and propagate the needs and benefits of a functional competition regime, worldwide, and build up an impetus for competition reforms globally.

World Competition Day would be an occasion for civil society organisations and international development partners to announce their solidarity to continue raising public understanding and support for implementation of competition regimes, globally. It would also be an occasion for national governments to pledge their commitment for integrating competition policy into their national development plans.

COMMENTS INVITED

How Tanzania celebrated WCRD-2009

2009-03-23T01:04:00.000-07:00

For the second time after celebrating WCRD in 2008; Tanzania Consumer Advocacy Society (TCAS) celebrated WCRD-2009 in style, this time we collaborated with five government sectoral regulatory authorities, including their attached Consumer Consultative Councils-CCC; these include, Surface and Marine Transport Regulatory Authority (SUMATRA)-CCC, Energy, Water and Utility Regulatory Authority (EWURA)-CCC, Tanzania Communication Regulatory Authority (TCRA), and Fair Competition Commission with its National Consumer Advocacy Council to mark the event.

Among other things, there had been a one day seminar on 13th.March.2009 which involved 150 participants, whereby three nutritionists presented papers on the magnitude of junk food problems in Tanzania; they gave facts and figures on the matter. At the end of the seminar, we came-up with a way forward of involving school children so that the campaign to have a long term impact.

13th.03.2009 seminar on Junk food; Participants of the seminar in a group pictures and on the left cross-section of a venue.

There had been high media coverage from; news papers, radio and TV stations about this year’s theme Junk food Generation-Cause for Action against marketing of junk food to children and more so consumer rights issues in general were addressed. For instance; seventeen articles were published in all local newspapers depicting the WCRD theme and were written in both English and Swahili languages, 30 minutes TV talk show conducted depicting the WCRD-2009 theme.

At the pick of it all; we had covered a four kilometres street rally from Mnazi Moja to Karimjee Hall at Dar es Salaam, Deputy minister of industry, marketing and Trade; Dr Cylian Chami was the guest of honour. While addressing the rally in his speech, he gave government support and willingness to support the campaign on junk foods as well as war against substandard goods in our markets.

Tanzania Consumers on street rally to mark WCRD-15th.March.2009

This year we have involved about 105 primary school pupils of the ages between 8 to 13 years old; they participated on commemorating the event as well as getting to know the concept, dangers of junk foods, and consequences of junk foods to their health; now and during their adult hood.

On the left a group picture of deputy minister, with school pupils and on the right consumers listening the message from deputy minister

This is how Tanzania Consumer Advocacy Society in collaboration with other five Sectoral regulatory Authorities and their Consumers’ Councils celebrated WCRD-2009.

Best Regards
Bernard E Kihiyo
Executive Director
Tanzania Consumer Advocacy Society

TCAS is now an affiliate member of Consumers International

2009-03-23T00:42:00.000-07:00

It is good to let you know that; Since 6th.March.2009; Tanzania Consumer Advocacy Society had been accepted by a very reputable world consumers association known as Consumers International as it's affiliate member. This had been possible after collective efforts of all TCAS members for the past two years.

TCAS is now the first active Non governmental organization to be CI member from Tanzania. This will allow TCAS to join other consumers' associations about 255 in fighting for consumer rights in Tanzania and world over.

Within TCAS this is a great achievement toward building a strong consumer's association in Tanzania.

Regards

Bernard Kihiyo
Executive Director
Tanzania Consumer advocacy Society

How can Tanzania develop its horticultural Industry?

2009-02-21T03:54:00.000-08:00

By Bernard Kihiyo
Tanzania practiced socialism policy for about twenty years 1967-1987; due to this it hadn’t took economic advantage on most of its resources due to presence of a weak private sector to support the current open market economy without the support of foreign direct investments (FDI) and expertise; we had been used to have state controlled economy; where government was the provider of social services at the same time doing business, horticultural industry was not one of the government priorities.

For several years; Tanzania flowers growers were using Jomo Kenyatta international Airport and not Kilimanjaro was purely caused by lack of enough cargo of fresh flowers for a commercial charter to land at Kilimanjaro International Airport

Hopefully; with the inauguration of flight - Boeing 747-200 cargo aircraft from Kilimanjaro International Airport to lift the flower has gone hand in hand with increases in production which led to have enough cargo of fresh flowers. I believe there are long term strategies in place with the support of US government to make this dream to come true.

Viewing the idea from all points of views; it has a great impact to our economy as it is going to increase the number of employment opportunities to Tanzanians, it will increase foreign currency from the export earnings; however there must be tight control on what had been exported and what is the actual income from those exports; let us not repeat the same mistake on what happened to our minerals auditing (Alex Stuart Scandals and the like)

We; Tanzania Consumer Advocacy Society (TCAS) see the future of horticulture industry to be more of export oriented rather than been for domestic production, as the economic welfare of most of Tanzania consumers continue to struggle to attain certain basic needs and not wants, very few will afford to buy flowers for their loved ones, as majority will prioritize their little income to satisfy their basic ‘’needs’’ or necessary goods or services for their survival. These include things that if not met will jeopardize health, safety or their well being.

Whereas flowers are goods that make our lives more comfortable and enjoyable, they provide lifestyle for people whom think so, therefore flowers are just ‘’wants’’. Majority of Tanzania consumers might wish to have and acquire flowers as a personal affection and to have social identity but any human being can survive even without them.

I have a very little advice to make to all concern in horticultural industry in Tanzania; to focus and diversify their attention to; some nice tropical flowers and herbs production, as there are several pharmaceutical industries looking for herbs especially from African tropical countries. This sort of creativity will boost the horticultural industry to have more competitive advantage over other flowers growers in the world.

Kenya private sector had been doing and develop the horticultural industry over years even before independence, there had been long term strategies to exploit and acquire the world market share over flowers to Kenya’s advantages, for instance focusing on flowers which other big growers could not produce due to weather barrier; Kenya managed to create its own brand in terms of flowers.

If Tanzania would like to invest onto horticultural industry it should be able to demonstrate strong firm-level capabilities on the supply side to market products and services worldwide, in order to win willingness of sophisticated consumers on the demand side, whom will be ready to pay for Tanzania firm’s flowers and it should not operates under the shadow of Kenya.

To elaborate more on the above; competition over flowers production has been massive from other growers and even artificial flowers have acquired a significant world market share. I believe Tanzania has all necessary potentials to enable the industry to grow, one being having ample and arable land, supportive climate, ample natural resources, enough skilled and cheap labour.

What is missing in our mix is seriousness on using these potentials for our economic development. Tanzania will only leap more than Kenya only if it takes a triple-bottom-line approach to their performance that is: sensitivity to international standards, quality and business best practice should be on our finger tips if we real want to survive in this new era of globalized economy-horticultural industry if one is to be more specific.

Do telecommunication operators in the country exploit consumers?

2009-02-21T03:34:00.000-08:00

By Bernard Kihiyo
Since the establishment of cellular firms in Tanzania; this sector is one of the fast growing service industry in Tanzania. I do have the feeling that; service users (consumers) are enjoying the services of telecommunication operators as it has been very easy to communicate amongst themselves any where in Tanzania, some in very rural areas and charges for telecommunication services in Tanzania had been a bit cheaper when one compares the figures/charges from the past five years; this has been caused by the presence of several operators competing to acquire significant percent of a market share.

However the marketing strategy in use by some telecommunication operators when selling their products; on some occasions appears to be unethical.

I believe telecommunication companies are moneymaking corporations just like any other: they exist to create profit. The overarching aim of corporate telecom promotion, therefore, is to increase profits by raising consumer demand for telecommunication products as effective ways to influence consumer opinion.

But; this approach fuels unethical service promotion in several ways; the most common violations include: promoting misleading or false claims about a telecommunication services, and deliberately suppressing risks such as radioactive effects of some telecommunication devises by using product awareness campaigns for service promotion rather than consumer’s health promotion.

For instance; you might be told; you will be given free minutes or text messages but you have to pay a certain amount of money as one of the condition; in other words this is not free service but a discounted charges for a service. This approach and many others lead to irrational use of some services by consumers and cause exploitation on consumer income and consumer receives less value for their money in return.

What is the way forward?
First and foremost one has to ask this question; ‘’who regulates telecommunication service promotion in Tanzania?’’ One could say Tanzania Communication Regulatory Authority (TCRA) but unfortunate the answer to this question is predominantly the telecommunication companies themselves, TCRA and the government are not highly active in monitoring corporate abuses with this note consumers are the one to suffer.

Prevailing issues such as having; weak consumer associations, low awareness of consumers themselves on their rights and obligations, weak regulations make our markets an easy target for unethical marketing, TCRA’s lack of equipment and technology to prove a point on unethical conducts are added constraints in the monitoring of corporate unethical promotion activities in Tanzania.

Countries with self regulatory promotional strategy such as Europe and America do have strong consumers’ movements which can check and balance the market but not for Tanzania. The current market situation is clear evidence that self regulation does not protect consumers against unethical and sometimes illegal promotion tactics.

Consumers have a strong interest in effective competition policy and regulation. Rules are needed to control anti-competitive behaviour in all market economies, whatever their mix of private and state enterprise, to ensure lower prices, better choice and quality, and access to essential goods and services

Tanzania Consumer Advocacy Society wants regulation that fully covers all areas of telecommunication and we also want to see telecommunication service information is regulated on its genuineness by an independent, accountable watch dog. A deliberate effort should be done by all sectoral regulatory authorities; in this case Tanzania Communication Regulatory Authority (TCRA) and other key stakeholders to raise consumer awareness on their rights and obligations.

TCAS believes the best way to ensure service users in Tanzania get rational, impartial treatment from telecommunication operators is for consumer to be able to understand easily the call cost of each call s/he is making whenever s/he wants for self cost control.

There should be a national campaign aims to reduce undue risks to consumer health and safety posed by radioactive effects of telecommunication devises. Moreover Telecommunication operators should be hold accountable for compliance with global codes for ethical product promotion

We have to hold TCRA accountable for rigorous enforcement of regulations on telecommunication services product promotion in order to uphold consumer rights to safety and information. There must be deliberated efforts to improve consumer access to credible, reliable and transparent service information.

Many Tanzania consumers today want to behave sustainably, but find it is not easy to translate that aim into action. There is often a gap between the consumer’s interest and their everyday action, TCAS is hereby to complement government and other key stakeholders efforts to bridge the gap.

BOAT FARES PROBLEMS

2009-02-19T22:21:00.000-08:00

Currently, am residing in Zanzibar (Unguja), but my permanent home is in Dar es salaam. I wish to draw your attention concerning the frequent rise in BOAT FARE as if there is no regulating body. Normally a boat fare ranges from TSHS 10,000 to 35,000/=. The boat owners just decide to raise the fares without considering the ability of passengers to pay.

email:laumagudo@yahoo.com

Banking fees / levies are too high in Tanzania

2009-02-12T05:37:00.000-08:00

By Patrick Kinemo.

I am concerned by the level of fees and other levies charged by our banks. The banking sector is a unique and important sector of the economy as a whole, i am concerned with what i think is excessive fees charged to customer/consumers particularly depositors & savers.

The banks use our deposit to buy treasury bills & other financials instruments where they make a lot of money & pass on very little to its savers; whilst at the same time charging for withdrawals, balance statements, monthly account maintaining fees etc.
I think these fees need to be regulated to ensure that they are fair!!Who protects the depositors/ savers?

Phone no:+255712930648
email:kinemo@aol.com

Tanzania has weak real estate firms

2009-01-23T09:19:00.000-08:00

By Robert Hozza.
Tanzania has apple land and people are building their properties without streact monitoring in terms of the quality of the buildings and arrangement hence we end up having poor building as well as unplanned cities and villages.

The plans by the newly established real estate firm known as Parasol Real Estate Agent and Developer (Tz) ltd can help to compliment government efforts on the same.

Keep it up the good work; consumers on the same are happy with the charity work they are going.

REGULATION NECESSARY TO ENHANCE BENEFITS FROM LIBERALISATION, SAYS RANGARAJAN

2009-01-18T01:42:00.000-08:00

New Delhi, 16 January, 2009
“In the reformed Indian economy where the stress is on efficiency maximisation, competition law and market correcting regulation have assumed great importance, particularly in the infrastructure sectors which constitute the backbone of the economy. The new CUTS Centre dealing with training and research in these issues will therefore play a major role in this modern setup.”

These were the words of C. Rangarajan, Member of Parliament and President, Governing Council of the newly minted CUTS Institute for Regulation and Competition (CIRC), while presiding over the Roundtable on Developing Infrastructure through an Ideal Regulatory Framework organised by CIRC at the Russian Culture Centre, New Delhi .

Rangarajan laid stress on the need to achieve the right balance between overregulation and under regulation.

In his opening address Pradeep S. Mehta, Founder Secretary General of CUTS and Secretary, CIRC traced the evolution of CUTS from a consumer protection organisation at its initiation in 1983-84 to a Southern NGO working on a wide gamut of issues from the empowerment of women to international trade.

According to Mehta, it was only natural then that this involvement in international trade issues would result in a corresponding interest in competition and regulation, culminating in the establishment of CIRC in 2005.

Mehta informed the audience that this centre would engage in training and research in three fields: infrastructure regulation, competition law and policy and commercial and economic diplomacy. He expressed great happiness over the former Commerce Secretary, Dipak Chatterjee assuming office as the Director General of CIRC .

Moderating the discussion, Vinayak Chatterjee, Chairman, CII National Council of Infrastructure cited various steps taken by the UPA government in developing general and then sector-specific regulatory norms.

N. K. Singh, Member of Parliament who was the first panellist raised several important issues in his speech: political mindset in the country lagging far behind the literature on regulatory issues; delineation of regulatory functions among the executive, legislature and judiciary; cultivation of an arm’s length relationship between the line ministry and the regulators; human capital formation for regulatory purposes, etc.

Nandan Nilekani, Co-chairperson, Infosys Technologies stressed that regulatory design in each sector should be determined by the specifics of both market structure and the network structure of supply. He also said that regulatory systems all over the country had to evolve from being providers of indirect subsidies to that of direct benefits. According to Nilekani, this would result in profitability of investment and yet serve redistributive goals.

Nripendra Mishra, Chairman, TRAI stressed that regulatory powers allocated to regulators by the government are a key determinant of economic outcomes. He pointed out how many technologically progressive steps such as ‘number portability’ and ‘3G reforms’ recommended by TRAI had been stalled because of the influence exerted by powerful vested interest groups.
Vikram S. Mehta, Chairman, Shell focussed on the issue of regulatory mandate and opined that the regulator was a law keeper rather than a policy maker. He also called for greater specialisation among regulators.

Arvind Mayaram, Additional Secretary, Government of India highlighted the very different problem of how rural/urban infrastructure such as water/sewerage/ roads has to be regulated so that it becomes a sustainable driver of development – the most essential regulatory function here is how competitive outcomes can be attained without open competition.

Pramod Deo, Chairman CERC drew attention to the limitations faced by regulators, particularly those in the electricity sector, in preventing the flouting of regulatory laws.
The initial speeches by the panellists were followed by a lively interaction session and a succinct summary by Dipak Chatterjee in the concluding address.

In summary, the deliberations of the afternoon were very fruitful and quite successful in highlighting the intricacies of competition and regulation of infrastructure, a much misunderstood subject in this country.

For more information, please contact: Pradeep S Mehta: +91.9829013131, psm@cuts.orgBipul Chaterjee: +91.9871995921, bc@circ.in