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.
Saturday, May 9, 2009
Bulk of Kariakoo imported good fake
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.
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
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.
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
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”.
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
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.
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
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.
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
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.
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.
Wednesday, May 6, 2009
TBS says it will give support to bonafide manufacturers
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.
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
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.
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
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”.
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”.
Friday, April 17, 2009
CONGRATULATION TFDA
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.
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
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
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
Monday, March 23, 2009
How Tanzania celebrated WCRD-2009
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
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
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
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
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