Saturday, May 9, 2009

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.

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.

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.

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.

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”.

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.

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

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

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

Saturday, February 21, 2009

How can Tanzania develop its horticultural Industry?

By Bernard Kihiyo
Tanzania practiced socialism policy for about twenty years 1967-1987; due to this it hadn’t took economic advantage on most of its resources due to presence of a weak private sector to support the current open market economy without the support of foreign direct investments (FDI) and expertise; we had been used to have state controlled economy; where government was the provider of social services at the same time doing business, horticultural industry was not one of the government priorities.

For several years; Tanzania flowers growers were using Jomo Kenyatta international Airport and not Kilimanjaro was purely caused by lack of enough cargo of fresh flowers for a commercial charter to land at Kilimanjaro International Airport

Hopefully; with the inauguration of flight - Boeing 747-200 cargo aircraft from Kilimanjaro International Airport to lift the flower has gone hand in hand with increases in production which led to have enough cargo of fresh flowers. I believe there are long term strategies in place with the support of US government to make this dream to come true.

Viewing the idea from all points of views; it has a great impact to our economy as it is going to increase the number of employment opportunities to Tanzanians, it will increase foreign currency from the export earnings; however there must be tight control on what had been exported and what is the actual income from those exports; let us not repeat the same mistake on what happened to our minerals auditing (Alex Stuart Scandals and the like)

We; Tanzania Consumer Advocacy Society (TCAS) see the future of horticulture industry to be more of export oriented rather than been for domestic production, as the economic welfare of most of Tanzania consumers continue to struggle to attain certain basic needs and not wants, very few will afford to buy flowers for their loved ones, as majority will prioritize their little income to satisfy their basic ‘’needs’’ or necessary goods or services for their survival. These include things that if not met will jeopardize health, safety or their well being.

Whereas flowers are goods that make our lives more comfortable and enjoyable, they provide lifestyle for people whom think so, therefore flowers are just ‘’wants’’. Majority of Tanzania consumers might wish to have and acquire flowers as a personal affection and to have social identity but any human being can survive even without them.

I have a very little advice to make to all concern in horticultural industry in Tanzania; to focus and diversify their attention to; some nice tropical flowers and herbs production, as there are several pharmaceutical industries looking for herbs especially from African tropical countries. This sort of creativity will boost the horticultural industry to have more competitive advantage over other flowers growers in the world.

Kenya private sector had been doing and develop the horticultural industry over years even before independence, there had been long term strategies to exploit and acquire the world market share over flowers to Kenya’s advantages, for instance focusing on flowers which other big growers could not produce due to weather barrier; Kenya managed to create its own brand in terms of flowers.

If Tanzania would like to invest onto horticultural industry it should be able to demonstrate strong firm-level capabilities on the supply side to market products and services worldwide, in order to win willingness of sophisticated consumers on the demand side, whom will be ready to pay for Tanzania firm’s flowers and it should not operates under the shadow of Kenya.

To elaborate more on the above; competition over flowers production has been massive from other growers and even artificial flowers have acquired a significant world market share. I believe Tanzania has all necessary potentials to enable the industry to grow, one being having ample and arable land, supportive climate, ample natural resources, enough skilled and cheap labour.

What is missing in our mix is seriousness on using these potentials for our economic development. Tanzania will only leap more than Kenya only if it takes a triple-bottom-line approach to their performance that is: sensitivity to international standards, quality and business best practice should be on our finger tips if we real want to survive in this new era of globalized economy-horticultural industry if one is to be more specific.

Do telecommunication operators in the country exploit consumers?

By Bernard Kihiyo
Since the establishment of cellular firms in Tanzania; this sector is one of the fast growing service industry in Tanzania. I do have the feeling that; service users (consumers) are enjoying the services of telecommunication operators as it has been very easy to communicate amongst themselves any where in Tanzania, some in very rural areas and charges for telecommunication services in Tanzania had been a bit cheaper when one compares the figures/charges from the past five years; this has been caused by the presence of several operators competing to acquire significant percent of a market share.

However the marketing strategy in use by some telecommunication operators when selling their products; on some occasions appears to be unethical.

I believe telecommunication companies are moneymaking corporations just like any other: they exist to create profit. The overarching aim of corporate telecom promotion, therefore, is to increase profits by raising consumer demand for telecommunication products as effective ways to influence consumer opinion.

But; this approach fuels unethical service promotion in several ways; the most common violations include: promoting misleading or false claims about a telecommunication services, and deliberately suppressing risks such as radioactive effects of some telecommunication devises by using product awareness campaigns for service promotion rather than consumer’s health promotion.

For instance; you might be told; you will be given free minutes or text messages but you have to pay a certain amount of money as one of the condition; in other words this is not free service but a discounted charges for a service. This approach and many others lead to irrational use of some services by consumers and cause exploitation on consumer income and consumer receives less value for their money in return.

What is the way forward?
First and foremost one has to ask this question; ‘’who regulates telecommunication service promotion in Tanzania?’’ One could say Tanzania Communication Regulatory Authority (TCRA) but unfortunate the answer to this question is predominantly the telecommunication companies themselves, TCRA and the government are not highly active in monitoring corporate abuses with this note consumers are the one to suffer.

Prevailing issues such as having; weak consumer associations, low awareness of consumers themselves on their rights and obligations, weak regulations make our markets an easy target for unethical marketing, TCRA’s lack of equipment and technology to prove a point on unethical conducts are added constraints in the monitoring of corporate unethical promotion activities in Tanzania.

Countries with self regulatory promotional strategy such as Europe and America do have strong consumers’ movements which can check and balance the market but not for Tanzania. The current market situation is clear evidence that self regulation does not protect consumers against unethical and sometimes illegal promotion tactics.

Consumers have a strong interest in effective competition policy and regulation. Rules are needed to control anti-competitive behaviour in all market economies, whatever their mix of private and state enterprise, to ensure lower prices, better choice and quality, and access to essential goods and services

Tanzania Consumer Advocacy Society wants regulation that fully covers all areas of telecommunication and we also want to see telecommunication service information is regulated on its genuineness by an independent, accountable watch dog. A deliberate effort should be done by all sectoral regulatory authorities; in this case Tanzania Communication Regulatory Authority (TCRA) and other key stakeholders to raise consumer awareness on their rights and obligations.

TCAS believes the best way to ensure service users in Tanzania get rational, impartial treatment from telecommunication operators is for consumer to be able to understand easily the call cost of each call s/he is making whenever s/he wants for self cost control.

There should be a national campaign aims to reduce undue risks to consumer health and safety posed by radioactive effects of telecommunication devises. Moreover Telecommunication operators should be hold accountable for compliance with global codes for ethical product promotion

We have to hold TCRA accountable for rigorous enforcement of regulations on telecommunication services product promotion in order to uphold consumer rights to safety and information. There must be deliberated efforts to improve consumer access to credible, reliable and transparent service information.

Many Tanzania consumers today want to behave sustainably, but find it is not easy to translate that aim into action. There is often a gap between the consumer’s interest and their everyday action, TCAS is hereby to complement government and other key stakeholders efforts to bridge the gap.

Thursday, February 19, 2009

BOAT FARES PROBLEMS

Currently, am residing in Zanzibar (Unguja), but my permanent home is in Dar es salaam. I wish to draw your attention concerning the frequent rise in BOAT FARE as if there is no regulating body. Normally a boat fare ranges from TSHS 10,000 to 35,000/=. The boat owners just decide to raise the fares without considering the ability of passengers to pay.

email:laumagudo@yahoo.com

Thursday, February 12, 2009

Banking fees / levies are too high in Tanzania

By Patrick Kinemo.

I am concerned by the level of fees and other levies charged by our banks. The banking sector is a unique and important sector of the economy as a whole, i am concerned with what i think is excessive fees charged to customer/consumers particularly depositors & savers.

The banks use our deposit to buy treasury bills & other financials instruments where they make a lot of money & pass on very little to its savers; whilst at the same time charging for withdrawals, balance statements, monthly account maintaining fees etc.
I think these fees need to be regulated to ensure that they are fair!!Who protects the depositors/ savers?

Phone no:+255712930648
email:kinemo@aol.com

Friday, January 23, 2009

Tanzania has weak real estate firms

By Robert Hozza.
Tanzania has apple land and people are building their properties without streact monitoring in terms of the quality of the buildings and arrangement hence we end up having poor building as well as unplanned cities and villages.

The plans by the newly established real estate firm known as Parasol Real Estate Agent and Developer (Tz) ltd can help to compliment government efforts on the same.

Keep it up the good work; consumers on the same are happy with the charity work they are going.