Thank you for being TCAS Supporter in year 2009

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

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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
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TZ private sector lauds US$ 1.5 billion stimulus

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

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

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

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

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

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.

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

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

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

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

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

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

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.