Tanzania court adjourns Sim tax case to 31 October. 2013

Wednesday 23 October 2013 | 11:56 CET | News

 

Tanzania's High Court has adjourned the case filed by the Tanzania Consumer Advocacy Society (TCAS) and mobile operator against the TZS 1,000 Sim tax imposed by the government to 31 October. On 09 October, the court allowed mobile operators to join TCAS in a petition lodged against the tax, the Daily News reported.

TCAS asked the court to nullify the legislation passed by the parliament requiring every mobile user to pay a TZS 1,000 monthly tax, claiming that the majority of phone users in the country cannot afford the amount. According to the petition, the legislation goes against the country's mother law and especially the right to information.

Entrepreneurs in Dar es Salaam have been given training on financial services and investment

By BiztechAfrica - Oct. 23, 2012, 7:45 a.m.

By Hudson Kazonta, Dar es Salaam, Tanzania

Entrepreneurs in Dar es Salaam have been given training on financial services and investment, aimed at helping them increase their investment and proper management of finance in their daily activities.
The event, run over four days, was held at Mnazi Mmoja’s grounds. Zantel, through its EzyPesa brand, partnered with Neubrand Event Company to make sure the campaign succeeded.

The event was organized jointly by Nuebrand Events Limited, the Centre for Microfinance Enterprise Development, Tanzania Private Sector Foundation, Tanzania Consumers Advocacy Society (TCAS) and Tanzania Microfinance Association.

Speaking at the launch of the event, Zantel Chief Commercial Officer, Sajid Khan, said his company recognized how innovative telecommunications solutions have the power to transform communities.
“Employment is a rare commodity in the country-leading majority of Tanzanians opting to become entrepreneurs to make ends meet, thus Zantel has taken keen interest in this group” he said.

Ezano Mabonde, Deputy Director at Prime Minister’s Office, said the government commends all the organizers of the event as business training is very important to entrepreneurs, and many studies suggest they are denied these rare opportunities.

He said all players in the financial sector, including banks, insurance firms, social security institutions and mobile money operators as well as supporting institutions such as regulators, stock brokers, investment promoters and many others, are involved, offering free financial services.

Sugar cartel blamed for abnormally high prices

Dar es Salaam:  Consumers want authorities to probe monopolistic tendencies in the sugar supply in the country, which keep prices higher than normal, hurting the low income earners the most. The Executive Director of the Tanzania Consumer Advocacy Society, Mr Bernard Kihiyo, said the possibility of a cartel is high because the sugar supply business is controlled by a few powerful, food trading firms.
“There are only five major dealers allowed to purchase sugar in bulk and distribute it to wholesale traders. These dealers, according to allegations, collude to fix prices. Now this issue needs to be probed,” he said.
Despite the government efforts to allow duty-free importation of sugar to bridge the supply gap sugar prices keep on increasing. Retail sugar prices in the major urban centres in the country currently range between Sh1,800 and Sh2,000 and could reach Sh2,500 per kilo in remote areas. Wholesale prices range between Sh85,000 and Sh90,000 for a 50kg bag.
Consumers say this is still too high and should have had a bigger difference margin than that of Sh2,000 for retail and Sh5,000 for wholesale had the prices been free-float .The Fair Competition Commission (FCC) also agrees that a cartel in sugar business in the country is a possibility but it cannot intervene.
A senior official who requested for anonymity because he is not the spokesperson of the Commission said price fixing could be a result of inadequate laws that guide the sector, and which vest the Sugar Board of Tanzania (SBT) with too much powers to appoint suppliers.
As the SBT is the regulator in the sector the FCC has no mandate whatsoever to intervene. Efforts to find the director general of FCC to clarify the issue proved futile. But in a prompt response the SBT said the problem is inadequate sugar production in the country, which cannot meet demands.
“In simple economics sugar prices cannot decline in a situation where demand exceeds production, and hence, supply. And to make matters worse, our neighbours face chronic sugar deficits that have fuelled smuggling across the borders. It is too early to speak of cartels,” said SBT project manager Mr Abdul Mwankemwa.
The annual sugar demand is about 480,000 tonnes against production of about 300,000 tonnes. Sugar factories, on the other hand, complain that the collusion in the supply business has most often created artificial shortages and dictated how much sugar the factories can sell in the local market. 
The factories say they cannot sell their stock because the market is oversaturated with cheap, imported sugar, which, unfortunately does not retail below Sh1,800 and Sh2,500 a kilo.
According to FCC the Sugar Industry Act No 26 of 2001, which established the Sugar Board of Tanzania (SBT) as an autonomous regulatory authority under the Ministry of Agriculture, Food Security and Cooperatives provided loopholes that lead to monopolistic tendencies within the sugar market.
This is because the law gives the powers only to SBT to appoint main sugar distributors and importers, but lack of capacity to oversee their activities oblige them to deal with only a few players. Mr Kihiyo urges the government to look at the law to ensure it helps in boosting competition in the sector.
Tabling the 2012/13 budget in Parliament last week the minister for Agriculture, Food Security and Co-operatives, Mr Christopher Chiza said in the 2011/12 financial year the country had a shortage of 117,945 tonnes of sugar forcing the prices to rise up to an average of Sh2,500 per kg until June this year. Despite the government’s directive to dealers to import 200,000 tonnes of sugar still the retail prices of sugar ranged between Sh1,800 and Sh2,500 in the country.

According to him, the major solution is to encourage more investments in the sugar sub-sector for guaranteeing fair prices. The executive secretary of Tanzania Sugarcane Growers Association (Tasga), Sam Msimbira on his part blames spiraling inflation and power problems for higher sugar prices. Tanzania has four sugar production companies – Kilombero, Mtibwa, TPC and Kagera.

SOURCE Bernard Kihiyo Executive Director - TCAS

Research by the World Bank on responsible finance in Tanzania

If you what to read a report on the research conducted by the World Bank on ''responsible finance in Tanzania'' kindly follow this link

AFRICAN DIALOGUE PRINCIPLES ON COOPERATION IN CONSUMER PROTECTION ENFORCEMENT

On September 10 -12, 2013, agencies responsible for enforcing consumer protection and related laws in 20 countries, having worked together in connection with the African Consumer Protection Dialogue (“African Dialogue”), met in Livingstone, Zambia, to address enforcement cooperation on consumer protection matters. 

Misleading advertising, fraud, illegal spam, and other unfair and deceptive commercial practices undermine the integrity of both domestic and global markets, to the detriment of businesses and consumers, and undermine consumer confidence in those markets.

The enforcement challenges that exist go beyond national frontiers.  Cooperation between public authorities responsible for the enforcement of consumer protection laws is essential to fight such practices. Moreover, cooperation between consumer agencies and criminal enforcement agencies on matters of mutual concern, such as fraud, also helps protect consumers against such practices.

A. Representatives of the participating agencies listed below are government or public agencies with investigative and/or enforcement authority, whether civil, criminal, or administrative, to enforce some or all consumer protection laws in their respective countries.Consumer protection laws here means laws against misleading advertising, fraud, spam, and other unfair and deceptive commercial practices affecting consumers.  The participating agencies may also have enforcement authority in other areas, such as competition, product safety, and food safety.

B. The participating agencies recognize that with respect to the enforcement of consumer protection laws, it is in their common interest:

1.   To have the authority and discretion to cooperate on appropriate investigations and cases, both those involving domestic practices targeting foreign consumers and those involving foreign practices targeting domestic consumers;

2.   To encourage communication, coordination, and reciprocal exchange of information and expertise among the participating agencies;

3.   To have amongst the authorities in each country the ability to obtain evidence to investigate and take action in a timely manner against consumer protection law violations;

4.   To each examine their respective laws to identify obstacles to effective cross-border co-operation;

5.   To promote a better understanding by all participating agencies of economic and legal issues relevant to such enforcement; and

6.   To inform each other of developments in their respective countries that relate to these Principles.

C. In furtherance of these common interests, the participating agencies further recognize the value of working together:

1.   to prioritize the most serious problems for coordinated action;

2.   to exchange information and evidence, including complaint information, with other participating agencies in appropriate particular investigations and enforcement matters;

3.   to provide investigative assistance in appropriate cases, including obtaining evidence under the Participants’ respective legal authorities, on behalf of another participating agency;

4.   to designate a contact point within each participating agency to further enforcement communication as part of an African Dialogue joint enforcement committee;

5.   to identify a contact point for a criminal enforcement authority within each country with a participating agency, if such authority is not already itself a participating agency;

6.   to participate in periodic teleconferences of the joint enforcement committee to discuss ongoing and future opportunities for cooperation, capacity building, training, staff exchanges, and best practices for consumer protection enforcement;

7.   to explore systematic complaint and trend sharing;

8.   to periodically review of the impact of these Principles, and when appropriate, consider additions and modifications.

D. In connection with the sharing of information and evidence, participating agencies cooperating with each other recognize the value, to the fullest extent possible and consistent with applicable laws, of:

1.   maintaining the confidentiality of information shared , and the existence of any investigation to which the shared information relates, when requested to do so by the other agency;

2.   using the information only for official purposes, and for the purposes agreed to with the other agency;

3.   retaining the information shared only for so long as is reasonably required to fulfill the purpose for which it was shared, or is required by the laws of the country of the participating agency receiving the information; and

4.   communicating to a participating agency with which they are cooperating any limits placed on their ability to cooperate in accordance with these Principles.

F. Participating agencies are expected to give at least 30 days prior written notice to the other agencies if they no longer intend to work towards cooperation consistent with these Principles. Other authorities are also invited to endorse these Principles.

G. The participating agencies recognize that nothing in these Principles is intended to:

1.   Create binding obligations, or affect existing obligations, under international or domestic law.

2.   Prevent a participating agency from seeking assistance from or providing assistance to the other participating agencies pursuant to other agreements, arrangements, or practices.

3.   Affect any right of a participating agency to seek information on a lawful basis from a Person located in the territory of another participating agency's country, or preclude any individual or entity from voluntarily providing legally obtained information to a participating agency.

4.   Create a commitment that conflicts with any participating agency’s national laws, court orders, or any applicable international legal instruments.

5.   Create expectations of cooperation beyond a participating agency's jurisdiction, or suggest that each participating agency already has the legal authority to act in accordance with every Principle above.

 Participating agencies (List to be updated and modified):

           

Angola National Institute of Consumer Protection

Botswana Competition Authority

Botswana Department of Trade and Consumer Affairs, Ministry of Trade and Industry

Cape Verde Consumer Defense Association

ChadAssociation pour la Défense des Droits des Consommateurs

COMESA    

Egypt Consumer Protection Agency

Egypt National Telecommunications Regulatory Authority

Gabon Ministere De L'Economie, De L'Emploi, and Du Development Durable

Gambia Consumer Protection Association of the Gambia

Ghana Ministry of Trade and Industry

INTERPOL

Kenya Competition Authority

Malawi Competition and Fair Trading Commission

Namibia Department of Trade and Industry - Office of Consumer Protection

Namibia Competition Commission

Namibian Consumers' Association

Niger Association des Consommateurs du Niger

Nigeria Consumer Protection Council

Nigeria Consumer Protection Organization of Nigeria

Nigeria Economic and Financial Crimes Commission

Rwanda Ad Unguem Consultancies

Rwanda Consumers' Rights Protection Agency

Senegal Association pour la Défense de l'Environnement et des Consommateurs

Seychelles Fair Trading Commission

South Africa National Consumer Commission

South Africa National Consumer Forum

South Africa National Credit Regulator

South Africa Nelson Mandela Metropolitan University

South Africa RBB Economics

South Africa National Consumer Tribunal

Swaziland Competition Commission

UNCTAD

Tanzania Department of Consumer Education

Tanzania Energy and Water Regulatory Authority - Consumer Consultative Council

Tanzania Fair Competition Commission

Tanzania Surface and Marine Transport Regulatory Authority - Consumer Consultative Council

Tanzania Civil Aviation Authority - Consumer Consultative Council

Tanzania Communication Regulatory Authority - Consumer Consultative Council

Tanzania Consumer Advocacy Society

Togolese Consumer Association - Association Togolaise des Consommateurs

Uganda Consumer Education Trust

Uganda  Communications Commission

United States Federal Trade Commission

Zambia  Competition and Consumer Protection Commission

Zambia Centre for Trade Policy

Zambia Consumer Unity Trust Society

Zambia  Zambia Consumer Association

Zambia  Zambia Information & Communication Technology Authority

Zimbabwe   Competition and Tariff Commission

Tanzanian networks join consumers in SIM card tax battle

Susan Mwenesi; 10th.October.2013
The High Court of Tanzania has allowed five major network operators to join the constitutional case brought by the the Tanzania Consumers Advocacy Society (TCAS) petitioning against the law requiring monthly deductions of TZS1,000 (US$0.62) from subscribers.

HumanIPO reported in July the Tanzanian government had approved the new monthly tax on SIM card users. The Daily News now reports a panel of judges were in favour of Vodacom Tanzania, Airtel Tanzania, MIC Tanzania, Zanzibar Telecommunications and Tanzania Telecommunications Company being included in the case already lodged by TCAS.

The decision overruled the previous objection over their inclusion by the attorney general.
“We overrule the preliminary objection and hereby order the applicants (five companies) be added in the petition as prayed,” judges Aloycius Mujulizi, Lawrence Kaduri and Salvatory Bongole ruled.
TCAS is challenging the 2013 Finance Act, which requires subscribers to pay the monthly fee for services, with the group saying the law is unconstitutional. The attorney general and the minister for finance are the respondents in the case.
Following the court’s ruling, the judges adjourned the matter until October 21.2013

Source;

'PHONE INTERCEPTIONS: TANZANIA TO LAND IN COURT?

Written by MNAKU MBANI

Friday, 27 June 2014 13:27

THE Tanzania Consumer Advocacy Society (TCAS) says that it is expected to collect enough evidence to sue the Government in Dar for intercepting customers data and voice in the mobile telecommunications sub-sector. The TCAS executive director, Bernard Kihiyo, told Business Times that the Society is preparing to issue a 90-day notice of the intended legal proceedings to the Government accordingly, while it proceeds to collect evidence from at least 30 victims of the alleged interceptions. Kihiyo was responding to a recent report by the UK-based Vodafone which revealed that Tanzania was fourth in the number of 'phone interceptions among the reported countries with many data and voice interceptions! The British company said wires had been connected directly to its networks and those of other telecoms groups, thereby enabling agencies to listen to and/or record live conversations – and, in certain cases, track the whereabouts of a customer. In the event, British privacy campaigners said the revelations were a "nightmare scenario" that confirmed their worst fears on the extent of snooping. “For governments to access phone calls at the flick of a switch is unprecedented and terrifying,” they said. In about six of the countries in which Vodafone operates, local laws either oblige telecoms operators to install direct access pipes, or allow governments to do so. The company – which owns mobile and fixed broadband networks, including the former Cable & Wireless business – has not named the countries involved because certain regimes could retaliate by imprisoning its staff! “However, in every country in which we operate, we have to abide by the laws of those countries requiring us to disclose information about our customers to law enforcement agencies or other government authorities, or to block or restrict access to certain services,” says Vodafone. Published earlier this month, the Vodafone report further reveals that, during last year alone, Tanzania reported 75,938 interceptions of contents, which included both voice and data communications! “We are expecting to serve the 90-day notice and invite victims of interception before proceeding to the Attorney-General (AG),” TCAS's Kihiyo  told Business Times in a telephone interview. “If the 90-day period will pass without the Government giving out clear reasons why it is violating the (national) Constitution, we will log our demands at the High Court” of Tanzania, he said. Kihiyo further stated that data and voice interception was against Article 16, Sections 1 and 2 of the Constitution of the United Republic and, as such, this was of great concern to consumers. Article 16 provides that 'every person is entitled to respect and protection of his person, the privacy of his own person, his family and of his matrimonial life, and respect and protection of his residence and private communications.’ This protection of private communications would include emails, short-message services (SMSs), mail and telephone conversations. “This is the ticking time-bomb expected to explode,” Kihiyo stresses. However, Tanzania is allowed to intercept customers’ data and voice communications in accordance with the The National Security Act; the Prevention of Terrorism Act, and the Criminal Procedure Act. “All of these laws have been enacted against Article 16 of the Constitution, which protects personal privacy, and we need to look on the other side of the coin,” he stated. Surprisingly, though, the Electronic & Postal Communications Act (EPoCA-2010) does not specifically make provision for interception of customer communications. However, the existence of interception powers can be implied from Section 120 of the Act which states that 'no person, without lawful authority under the EPOCA or any other written law, can intercept, attempt to intercept, or procure any other person to intercept or attempt to intercept any communications.' 'An application must be made under ‘any other law’ to the Director of Public Prosecutions (DPP) for authorization to intercept or listen to any customer communication transmitted or received,' the EPOCA elaborates. Only public officers, or an officer appointed by the Tanzania Telecommunications Regulatory Authority (TCRA) and authorized by the Ministry of Science & Technology, as well as the Ministry of Home Affairs, may be permitted to intercept such communications. The EPOCA stipulates that subscriber information be kept within the TCRA. The TCRA shall take charge of the monitoring and supervising of the information so stored. The Tanzania Intelligence & Security Services Act [Cap 406 of the Laws of Tanzania, Revised Edition 2002] charges the Tanzania Intelligence & Security Service with the duty to collect information by investigation or otherwise, to the extent that it is strictly necessary, and analyze and retain, information and intelligence in respect of activities that may on reasonable grounds be suspected of constituting a threat to the security of Tanzania, or any part of it. The 1977 Constitution of the United Republic of Tanzania as amended from time to time provides the Parliament with the power to enact and enable measures to be taken during a state of emergency or in normal times in relation to persons who are believed to engage in activities which endanger or prejudice the security of the nation. However, Vodafone has admitted that these laws are designed to protect national security and public safety; to prevent or investigate crime and terrorism. In any case, the agencies and authorities that invoke those laws insist that the information demanded from communications operators such as Vodafone is essential to their work. “Refusal to comply with a country’s laws is not an option. If we do not comply with a lawful demand for assistance, Governments can revoke our license to operate, thus preventing us from providing services to our customers,” Vodafone says in its report. “Our employees who live and work in the country concerned may also be at risk of criminal sanctions, including imprisonment. We, therefore, have to balance our responsibilities between respecting our customers’ right to privacy against our legal obligation to respond to the authorities’ lawful demands... As well as our duty of care to our employees – recognizing throughout our broader responsibilities as a corporate citizen to protect the public and prevent harm. SOURCE; @ The Business Times

Govt set to review consumer standards contracts

By The guardian reporte; 9th July 2014

The government has said it is set to review regulations that govern consumer standard forms contracts in order to protect the rights of its people.

Speaking to this paper at the 38th Dar es Salaam International Trade Fair (DITF) Joshua Msoma, Senior Consumer Protection Officer at the Fair Competition Commission (FCC) said the exercise will be carried out soon after the Industry and Trade minister has endorsed the regulations.

He said once reviewed, the forms would protect the consumers against the violations they encounter when purchasing goods and services. “There are some businessmen who tell their consumers that goods once sold they are not returnable. This is absolutely not fair," he said.

According to him, consumers have the right to question or get from the seller anything they purchase without any restrictions. Consumer protection is derived from articles 11, 14 and 18 of the Constitution of Tanzania, 1977 which recognize consumers’ rights and their protection roles.

There are legislation enacted to serve various matters but also protect the consumers, he said. He mentioned them as the Fair Competition Act 2003, Merchandise Marks Act 1963, Standards Act 1975, Weights and Measures Act 1982, Occupational Health and Safety and the Food, Drugs and Cosmetics Act 2003. The FCC official said the consumer is obliged to understand the Fair Competition Act and how it can help him in pursuing their rights and remedies.

He urged consumers to be alert and question the price and quality of goods and services availed to ensure that they are fairly treated in business transactions.

Msoma said consumers need to search and use available information before any purchase to ensure they always make informed and responsible decisions pertaining to their choice of goods and services. He added that they have to fight for quality through effective complaints and refuse to accept shoddy workmanship.

According to him, there are a number of consumer protections provision in the Fair Completion Act which need to be adhered to. Some of them are protection against price fixing, output restrictions and collective boycotts between competitors, which might affect their rights.

According to Benard Elia Kihiyo, a consumer activist, the government in collaboration with consumer advocacy organizations must educate the public on consumers’ rights which are awfully low. He said such a campaign should be conducted in primary and secondary schools because students are rightly placed to deliver the message to other people on the rights of consumers, including policy makers.

Kihiyo, who is also the executive director of Tanzania Consumer Advocacy Society (TCAS) said few years ago the organization conducted a survey in five regions which showed that the level of awareness of consumers’ rights in Tanzania was very low. Dar es Salaam, which is the most populous urban area, he said, is leading in lack of the consumers’ rights awareness.

“We believe these campaigns, will increase consumers’ understanding of their rights and will build their ability to claim for them,” he noted. “On the other hand, their efforts will make their voices to be heard, and because there will be high awareness among them, this would attract responsiveness on their needs and interests,” he said.
Source; The Guardian http://www.ippmedia.com/frontend/index.php?l=69773