SIDO running short of funds

While calls for the empowerment of rural communities’ Small and Medium Enterprises amass, a key institute charged with the task is reporting a dire shortage of funds to conduct its duties.

Small Industries Development Organisation (SIDO) says it is facing an acute shortage of funds to establish centers in rural areas for youth entrepreneurship trainings.

SIDO Marketing Manager, Henric Mdede told The Guardian in an interview early this week in Dar es Salaam that the government has already provided them with the land plots but they have failed to implement the project due to financial constraints.

“We are very limited when it comes to funding for the rural projects…we need support to raise our capital capacity if the project is to take off and be sustained,” he said.

Mdede admitted that almost all the district councils have allocated land for the project however he said the financial constraints are worsened by the fact that in some districts, the land allocation is on residential plots forcing SIDO to pay compensation that they do not have.

“We appreciate what the government has done so far but we need the funds to compensate people living in the earmarked areas if we are to start implementing the project,” Mdede said.

Nonetheless, he said that despite the financial limitations, they have started constructing training centres in Kongowe District, Coast Region.

 He said the training will focus on among other things, entrepreneurship and technical skills on how to improve the quality of products, processing and business skills.

“Such kind of training will help youth employ themselves,” said Mdede adding that SIDO is also keen to link them with banks and financial institutions so that they access loans.

He said that since SIDO’s establishment in 1973 it has been strongly committed to support people centered development programs.

He said the trainings are offered to grass root communities with the aim of supporting the government’s efforts on poverty reduction through creation of jobs.

Chinese envoy: We don’t use prisoners....

The Chinese government says Tanzania has enough qualified and affordable skilled labour and doesn’t therefore need to bring into the country, prisoners to work in Chinese projects.

It’s ambassador to Tanzania, Dr Lu Youqing,  told The Citizen that, Chinese engineering projects have so far provided jobs to over 150,000 people.

He said the China National Petroleum Corporation (CNPC),  which is currently constructing the Mtwara gas pipe line project trained about 2,500 Tanzanian technicians.

Ambassador Lu was responding to a news story published last week by The Citizen, which quoted some local contractors saying  that Chinese companies, through the use of cheap labour, had overtaken local and Western companies in winning major construction and other investment projects

“I am very convinced that such baseless allegations are fabricated lies from the ‘Western teachers’…In fact, such lies are as old as a decade. They are caused by the insecurity the West feels about stiff competition the Chinese companies have been posing,” Dr Lu said.

He noted that the report by ‘Engineering News-Record’, an authoritative publication in the sector released in September, last year, pointed  out that among 250 largest international contractors, 49 were from Chinese mainland, with five among the global top ten.

This, the envoy said, was testimony to Chinese companies’ adherence to professionalism and a high state of competence.

According to data from the Tanzania National Roads Agency (Tanroads),  14 Chinese companies  did, over the last decade, win 58 contracts  worth $ 1.75 billion and covering 3,140.85 kilometres.  China Henan International Cooperation Group Co., Ltd. (CHICO) from Henan Province which was awarded a $206 million contract by the Road Development Agency of Zambia to design and construct the 175km Mansa-Luwingu road, has alone sealed 13 contracts with Tanzania with a total of 705.2km,  worth $ 490.26 billion. These include the 34km Package 1 Singida-Iguguno ($ 11.75 million); 42km Package 2 Singida-Iguguno ($ 8.8 million); 33km Package 3 Sekenke-Shelui ($ 12.51 million); 60km Mwandiga-Manyovu ($ 32.54 million); 35.7km Kigoma-Kidahwe ($ 19.56 million); 19.20km Bonga-Babati ($ 11.95 million); 42km Tabora-Urambo ($ 31.17 million); 59.1km Kyaka-Bugene ($ 51.6 million); 84.6km Dareda-Minjingu ($ 51.6 million); 76.6km Kidahwe-Uvinza-Ilunde ($ 47.5 million); 132km Isaka-Ushirombo ($ 88.223 million); 1.5km Widening for Kilwa Road Phase III ($ 3.4 million); 85.5km Nyanguse-Musoma ($ 3.3 million); and the 154km long Kagoma-Lusahunga joint venture contract with CRSG worth $ 116.2 million.

The China Sichuan International Cooperation Co., Ltd (SIETCO) has a total of 283.9km long worth $ 123.03 million, namely the 63km Isuna-Singida ($ 18.5 million); 32km Tarakea-Rongai-Kamwanga ($ 8.8 million); 95.1km Iringa-Migori ($ 51.123 million); and 93.8km Migori-Fufu Escarpment ($ 44.7 million), while CICO is constructing the 95km long Nangurukuru-Mbwemkuru ($ 23.82 million).

China Geo-Engineering Corporation International Ltd (CGC INT’L) with offices in Niger, Burkina Faso, Mauritania, Senegal, Gabon, Congo (Brazzaville), Morocco, Tunisia, Sierra Leone, Laos and project departments in Ghana, Chad and Central Africa, has a total of 525.9km long road projects in Tanzania worth $ 151.2 million. These roads include the 112km Shelui-Nzega ($ 12.6 million); 120km Kyamorwa-Buzirayombo ($ 29.822 million); 54km Manyoni-Isuna ($ 18.4 million); 104.2km Arusha-Namanga ($ 49.64 million); 125km Chalinze-Tanga Phase I ($ 25.9 million) and the 10.7km Umoja ‘Unity’ Bridge ($ 14.9 million) bordering Tanzania and Mozambique.

Earlier this year, this paper quoted a report by Imara Equity Research suggesting that China’s total direct investment in Tanzania soared from $700 million in 2011 to $2.1 billion last year, turning the world’s second biggest economy into the biggest foreign investor in the East African country .

It said this investment is focused on railways, ports, buildings, road construction, gas pipelines and wind power farms. The investment, the report further said, has not only boosted economic growth in Tanzania, but has also created more than 150,000 direct jobs.

How I became a Freemason

They have been the subject of all kinds of rumours. We have seen advertisements inviting people to join them if they want to get rich and powerful. Yet the Freemasons remain a mysterious society in the eyes of most Tanzanians. Now we can bring you the story of a prominent Tanzanian, who opened up on how he joined the world’s oldest fraternity.

Testimonies of a desperate search for wealth have been aired on some radio stations locally, especially after the death of movie star Stephen Kanumba in 2012. Adverts bearing a contact number have been posted on electricity poles—supposedly inviting those who want to join the Freemasons to call for details on how to do so.

Some have fallen into the trap and many more are still willing to take a gamble in the pursuit of wealth and, perhaps, magic powers.

Now one man, Jayantilal Keshavji Chande, popularly known as Sir Andy Chande, who joined the fraternity on October 25, 1954, after rigorous vetting, opens up on how he rose from an ordinary family man to become the Grandmaster of the Masonic brethren in Eastern Africa.

Sir Andy Chande, who has been a member for nearly six decades, reveals how he was recruited and ended up at the highest level in the organisation’s hierarchy. Sir Andy was born in Mombasa in Kenya, on May 7, 1928, though his parents lived in Bukene town in Tabora Region in western Tanzania.

To understand the Order more clearly, he writes in his book, A Night in Africa—a Journey from Bukene, and thus perhaps to start to close that gap between perception and reality, one must return to the guiding principles of Freemasonry.

The tenets of morality and virtue drew him into his first discussions on organised philanthropy with Messrs Campbell Ritchie and McLean back in early 1950s.

“At that time, I began to realise that Freemasonry is, at its heart, a science of life whose purpose is to spiritualise man and make him what he must become—an integrated individual,” Sir Andy writes in his 207-page memoir.

Much of this underlying purpose, writes Sir Andy, is veiled in allegory—which perhaps goes some way to explain the mythology attached to the Order’s workings.

Sir Andy reveals three key Freemason principles in the book printed in Canada by Penumbra Press.

He writes: “Thus, in the first degree toward initiation, the guiding principles of moral truth and virtue upon which Freemasonry is based are suitably impressed on the mind of the aspirant member or suitable candidate. The second degree of the Order stresses the development of talents and skills in the arts and sciences in order to play as useful a role in life as possible.”

The third degree provides an opportunity to contemplate the last few hours of one’s existence, however fanciful or far-off this might actually seem.

The three principles are summed up as Brotherly Love, Relief and Truth.  “By these means,  the initiate is taught how to live life to its fullest potential in a manner consistent with the Order’s three guiding principles—Brotherly Love, Relief and Truth—while at the same time recognising, and thereby beginning to come to terms with the inevitability of death,” he writes.

 These three principles,  adds Sir Andy, once unwrapped from the symbolism of the builder’s art that enshrouds so much of Masonic ritual, were what intrigued him most when he first got to know some of the final details about the Ancient Order. He is the head of Freemasons in Eastern Africa.

What do the Masonic principles teach?

In the Masonic scheme of things, writes Sir Andy, the principle of Brotherly Love teaches all brethren to regard the entire human species as a single family created by an Almighty Being.

“Relief, meanwhile, brings home the  message that mirrors the creed passed down to me by my father, namely that the relief of the distressed, whether it be the relief of material poverty or the soothing of troubled and unhappy minds, is a duty incumbent upon us all,” writes Sir Andy.

Truth,  the third and perhaps most important principle, is a divine attribute and, to a Mason, the foundation of every human virtue…to be a good man and true is the lesson that is taught to each and every initiate  at an early stage—a time honoured saying of the broadest applicability, which is put forward as a means of regulating and, if necessary, reordering the course of one’s life and actions on the basis of the Order’s four cardinal virtues: temperance, fortitude, prudence and justice.

Freemasonry is not a tool of religion, he adds, but neither is it anti-religious. Indeed, he explains, Freemasons explicitly welcome all men irrespective of their religious creed, and make no effort to change their faith or influence their worship.

 “It simply tries to make them better men,” writes Sir Andy.  “This, then, was the world that I was initiated into in 1954, and it has been a significant part of my life ever since…my spirit, my mind, and my soul have been enriched by my involvement in Freemasonry, and this enrichment stands in stark contradiction to the assumptions one finds in the Western popular press.

How did the Masonic fraternity become private and secretive? How did Sir Jayantilal Andy Keshavji Chande join the fraternity? What were the challenges of being a member of the Masonic brotherhood for over five decades? Is there a political conspiracy among the Masons?

Don’t miss Part Two of Sir Andy’s life inside the Freemasons on Monday.

Museveni’s gung-ho foray into South Sudan conflict

Uganda's President Museveni speaking in Juba, South Sudan in December 30, 2013. Photo/AFP  

As the only country with boots on the ground, Uganda finds itself at the centre of controversy over the conflict in South Sudan — especially after President Yoweri Museveni became the only leader in the region to warn that his army will take sides in the three-week-old fighting that has so far claimed the lives of over 1,000 people.

On December 19, 2013 — four days after the fighting broke out — Uganda acted, deploying a small group of Special Forces to “facilitate” evacuation of its nationals from the South Sudan capital.

READ: Uganda now steps in, sends troops to South Sudan

Then, last week, president Museveni made a cowboy-like foray into the conflict, publicly warning Riek Machar who is one of the protagonists, to cease hostilities or face defeat at the hands of a regional military intervention force.

Until July 23 last year, Dr Machar was South Sudan’s vice president but was sacked along with the entire Cabinet when President Salva Kiir dissolved his executive on that date.

Dr Machar was not reinstated in the next Cabinet, which triggered ethnic sentiments and disquiet, leading to an alleged failed coup attempt on December 15 that has since become a full-scale war, compelling regional states and the international community to call for ceasefire.

An Inter Governmental Authority on Development meeting on December 26 agreed on a military option but did not discuss its modalities.

However, President Museveni, an ally of Salva Kiir, seemingly jumped the gun and took it upon himself to warn that a military intervention was imminent even though the mode, deployment and composition of this force are details that are yet to be thrashed out.

There seems to be a disconnect between president Museveni’s warning and the position of other key Igad states like Kenya, which says it will not rush into a military intervention as an option in South Sudan, and appears to favour a negotiated political solution.

“I think president Museveni spoke on the strength of Uganda’s responsibility as the lead country on South Sudan, even before and leading up to the CPA [2005 Comprehensive Peace Agreement]. Uganda has a stake in the development of South Sudan right from its long war with Sudan up to the time John Garang took over. Uganda was a guarantor of the CPA and its aftermath,” said Ugandan legislator Simon Mulongo in an interview with The EastAfrican.

Mr Mulongo, who is a former director of the Eastern Africa Standby Brigade, argued that on that account, of all the Igad states, Uganda is the frontline state whose immediate security interests are most at jeopardy from an unstable South Sudan.

Because of his past record of falling in and out with the leadership of the Sudanese People’s Liberation Movement, then under John Garang, and alliances with the Khartoum government, Dr Machar represents a security threat to Kampala should he rekindle his alliance with Khartoum in the case of Salva Kiir’s government collapsing and Dr Machar taking state power.

But this raises some intriguing questions: If Igad discussed a military option, why would president Museveni take it upon himself to articulate the bloc’s position, yet personalise it, well aware of the inherent risks that such a move brings to Uganda and its citizens, some of whom are still trapped in South Sudan?

Plus, for Dr Machar to respect Igad’s call for cessation of hostilities, there had to be a more subtle and quiet diplomatic engagement with his side, rather than the confrontational stance that president Museveni has taken, to the point of stating that he does not sleep because he is monitoring the South Sudan conflict 24 hours a day.

Moreover, it is not clear what alliances, if any, are being built for this operation

EAC sets its calendar for 2014 projects, policies...

Finance Ministers Henry Rotich of Kenya and Uganda’s Maria Kiwanuka sign an agreement on the East African Monetary Union. FILE

As the new year starts, the EAC is preparing to roll out integration projects that are likely to test the region’s unity and commitment.  

At least five projects are set for implementation this month, among them a common defence, security and foreign policy that will see Kenya, Uganda, Rwanda, Burundi and Tanzania jointly strengthen their military capabilities for conflict prevention and crisis management.

Simiyu Werunga, the director of the African Centre for Security and Strategic Studies, said having a common EAC security, defense and foreign policy is important for regional security as it will ensure that partner states rarely fight amongst themselves.

“With combined security resources, this will deter countries from attacking each other,” said Mr Werunga. “It is good for the stability and economic growth of the region.”

He said if the policies violate international law or human rights, or are disrespectful of the rule of law or democratic principles within the three partner states, the pact has the right to issue diplomatic or economic sanctions.

Under the arrangement, the armed forces of partner states are expected to work as a team in maritime patrols to ensure that the region’s international waters are free of piracy. Kenya, Uganda and Rwanda are expected to sign the defence, security and foreign policy pact this month, and establish common foreign policy by October 2014.

Kenya, Rwanda and Uganda already launched the Single Customs Territory (SCT) last week. Burundi and Tanzania are not part of the initial roll out process because two countries rely on the Central Corridor, which is served by the port of Dar es Salaam.

Meshack Kipturgo, managing director at freight logistics firm Siginon, said implementation of the SCT could reduce cargo clearing costs by half, since the transit bond fees along the corridor will be scrapped.

EAC member states had set a January 2014 deadline to implement the single tourist visa and to facilitate the use of IDs as travel documents for its citizens. By January 1, Rwandans were already reportedly using their national ID’s to cross into Uganda.

In the first quarter of 2014, integration officials are also expected to fast-track the implementation of the political federation, the Customs Union, and the Common Market Protocol.

The EAC Common Market Protocol has led to an increase in exports to the region. The protocol came into effect in 2010, and is being implemented over a five-year period with a deadline of 2015.

“The Common Market Protocol can work better if all the five partner states take the required steps to ensure that it is fully implemented,” said Kenya Association of Manufacturers chief executive Betty Maina.

Partner states are expected to conclude the ratification of the East African Monetary Union Protocol, signed in November 2013, by July 2014. It is expected to be implemented in 10 years by member states.

The EAC member states also plan to implement infrastructure projects focusing on energy generation and distribution, oil pipeline development, railways, road and air services.

In an earlier interview, EAC Secretary General Richard Sezibera said poor infrastructure in the region had led to congestion at the main ports of Dar es Salaam and Mombasa, and had increased the cost of doing business in the region.

MF spells out new roadmap for Kenya’s faster economic growth

PHOTO | BILY MUTAI IMF managing director Ms Christine Lagarde (left) speaking when she met National Treasury Cabinet Secretary Henry Rotich at the Treasury Building in Nairobi on January 6, 2014. She praised Kenya for bold economic reforms in the past few years.  DAILY NATION

Successful completion of the devolution process, investment in infrastructure and regional integration are the three factors that will boost Kenya’s quest for economic transformation.

This was the message from the International Monetary Fund managing director Christine Lagarde as she began her maiden three-day visit to the country on Monday.

Meeting members of the Kenyan business community in Nairobi, Ms Lagarde said the country has made remarkable economic gains over the past few years on the back of bold reforms that have laid the foundations to lift the economy to middle-income status within the next decade.

BUILD ON MOMENTUM

"Kenya has indeed come a long way over the past few years. The key is now to build on this momentum, with emphasis in the following areas. We might call them the ‘Three C’s’: completing fiscal devolution; closing infrastructure gaps; and continuing regional integration,” Ms Lagarde.

During her visit, she will be hosted by President Kenyatta and other top government officials to meetings at which new partnerships between the IMF and Kenya will be assessed.

In his brief to the President, National Treasury Cabinet Secretary Henry Rotich said the government will be seeking access to bigger credit facilities to help cushion the country against unexpected external and internal shocks that it remains vulnerable to.

“Considering that we have almost exhausted our Poverty Reduction and Growth Trust (PGRT) window, we need to make a strong case to the IMF MD for a bland precautionary facility that involves both PGRT and the General Resources Account which is non-concessional,” Mr Rotich said.

The new facility, Mr Rotich said, would serve as an insurance policy in the event of unexpected shocks.

“This should be a facility of last resort and should only be used when it is clear that policy actions alone are not sufficient to effectively respond to the ensuing shocks,” the statement reads.

GOVT PRAISED

In her speech, Ms Lagarde lauded the government for adopting policies that have helped anchor the conditions for a strong and stable growth but also acknowledged the external shocks the country is likely to suffer as it opens its financial markets to the globe.

“Kenya has built a strong external position and is now in a favourable condition to tap international financial markets with the planned Eurobond issue. Going forward, as Kenya becomes more integrated in the global economy, it is bound to be exposed to external shocks through spillovers from trading partners’ economies or volatility in international financial markets,” she said.

“Further bolstering its foreign reserve position and lowering its debt burden will ensure that the country is resilient to these shocks.”

But the economic gains the country has made in the past, Ms Lagarde said, will only be sustainable if the government maintains its reform agenda, invests more in infrastructure and complete the fiscal devolution process.

AVOIDING DUPLICATION

“It is imperative that devolution is done right. That means spending needs to remain within the available envelope of public resources — and be transparent. It also means avoiding duplication of functions between the central and local government,” Lagarde said.

“Proper management of public resources is very important. Transparency, accountability and publication of information cannot be over-emphasized, especially with minerals such as oil and gas.”

While encouraging foreign investment in the country’s infrastructure development, the IMF chief cautioned that the financing agreements must remain consistent with a sustainable debt position.

She called for a deeper integration of the East African Community in order for the countries to continue enjoying the opening up of new markets, emergence of a middle class and enhanced domestic demand which have become an engine for growth.

“In that context, the heads of state of the EAC recently agreed on a roadmap toward a monetary union. This is an opportunity but also a major challenge. It will be important to draw upon the experience and lessons learned from other regions and to manage the process carefully,” she said.

Kenya Private Sector Alliance chairman Vimal Shah called on international investors to take advantage of the economic gains the country has made in the past few years, emerging from a poverty-stricken country to being a key business hub in the continent.

“Kenya is investible, it is an open economy and a fertile ground for investors,” Mr Shah said.

Spanish court summons king's daughter over fraud case

A file photo taken on June 20, 2013 shows Spanish Princess Cristina attending a mass commemorating the centenary of the birth of Don Juan de Borbon at the chapel of the Royal Palace in Madrid . AFP PHOTO / POOL / JUAN CARLOS HIDALGO  

A Spanish court summoned King Juan Carlos' youngest daughter Cristina as a suspect over tax and money-laundering crimes Tuesday, a first for a direct relative of the monarch.

Cristina, 48, has been linked to the business affairs of her husband, former Olympic handball player Inaki Urdangarin, who is under investigation for alleged embezzlement of public funds.

The decision by a court in Majorca is a major blow against the prestige of the 76-year-old Spanish king, who became head of state after the death in 1975 of General Francisco Franco and helped guide the country's transition to democracy.

His popularity sliding because of royal scandals, Juan Carlos appeared tired Monday as he presided over a military parade while supported on crutches, his first public appearance since undergoing an operation to replace his left hip on November 21.

HUSBAND'S CORRUPTION CASE

The judge in Majorca, Jose Castro, has been investigating the corruption allegations against Cristina's husband since 2010. In summoning Cristina, he overruled opposition by the public prosecutor.

In his written ruling, the judge said he had decided to hear Cristina's testimony "about alleged tax and money laundering crimes", summoning her to appear on March 8 as part of an investigation that could lead to formal charges.

Manos Limpias, a litigious far-right pressure group, lodged the suit against Cristina alleging tax evasion and money laundering, although tax authorities have not brought any charges and public prosecutors have said there is no case to answer.

The judge in the Majorca court is investigating allegations that Urdangarin and a former business partner embezzled six million euros ($8 million) in public funds via the Noos Institute, a charitable foundation that he chaired.

Cristina was a member of the board of Noos and with her husband jointly owned another company, Aizoon, which investigators suspect served as a front for laundering the embezzled funds.

DEATH OF FRANCO

The Majorca judge had summoned Cristina on suspicion of corruption once before, in spring 2012, but that decision was overruled following an appeal by the prosecutor.

Juan Carlos is widely respected for his role in Spain's transition to democracy after the death of Franco.

But his standing among Spaniards has been damaged by the corruption scandal, and outrage over a luxury African elephant-hunting safari he took in 2012.

His health problems together with the scandals have raised speculation about the future of his reign.

The number of people with a high or very high opinion of the king fell nine points over 2013 to 41 percent, according to a poll published on Sunday in daily newspaper El Mundo.

The number of people wanting him to abdicate in favour of Prince Felipe, 45, surged by 17 percent to 62 percent, according to the study by pollster Sigma Dos carried out in late December.

Sixty-six percent had a positive view of the prince and 56 percent thought he could improve the royals' image if he took over.

General support for the monarchy as an institution, however, fell below half to 49.9 percent, according to the poll.

The royal palace and the king have firmly denied any thoughts of an abdication.

"I want to express to you, as king of Spain, my determination to continue the faithful fulfilment of the mandate and the powers attributed to me," the king said in his annual televised Christmas Eve address last month.