Benno Ndulu & Mustafa Mkulo= Dumb & Dumber

G

Game Theory

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Sep 5, 2006
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According to East Africa la leo ambalo lina kichwa cha habari kinachosema hivi:

Some two years ago, Tanzanian investors interested in buying into the massive initial public offering of Kenya's largest mobile telecommunications company, Safaricom, were locked out by their country's regulations and could only look on as their counterparts in Rwanda and Uganda took part.


A year later, the National Microfinance Bank of Tanzania also had an IPO on the Dar-es-Salaam Stock Exchange but investors from other East African Community partner states - Kenya, Uganda, Rwanda and Burundi - were not allowed to buy the shares.

The country's capital account regime prohibits flow of foreign investments into the country.

It is these regulations that have landed the country's financial sector with the unenviable tag of the most rigid in the region, in a new study by International Monetary Fund that also delivers a harsh indictment of its stultifying effect on the region's efforts towards monetary integration.


Ripoti ya IMF yenye kichwa hichi cha habari:

‘Measuring financial barriers among the three EAC founder member states'


Ripoti hii ambyo DUMB&DUMBER wanafikiri kuwa huwezi ukapata access nayo hii hapa:

http://www.imf.org/external/pubs/ft/wp/2010/wp10194.pdf


Ripoti hiyo ime toa ranking kwa ncho 3 za Africa Mashariki na imeconclude kuwa Kenya's financial sector as the most flexible and open in the region, followed by Uganda, and finally Tanzania.

Waandishi wa Gazeti la East African wanaendelea kwa kusema hivi:

With the coming into force of the Common Market protocol, the EAC now has its sights trained on the Monetary Union expected to come into force in 2012, which requires openness in the partner states' financial systems.


Formula waliotumia waandishi wa hii ripoti ni:

covered interest rate parity (CIP) pamoja na forward foreign exchange (FFE) systems katika kufanya uchanganuzi kuona jinsi gani eneo hili la Africa Mashariki lilivyo wazi kibiashara:

According to East Africa waandishi wamegundua kuwa:

1. Tanzania contains a number of explicit capital movement restrictions that may impede CIP's functioning.

e.g Tanzania restricts non-residents from borrowing abroad and restricts the participation of non-residents in the domestic money market.

2. Available data indicate that Tanzania is the only country in EAC that restricts outward direct investment.


3. The same applies to the aspect of purchase of foreign securities by residents, whereby Tanzania only allows purchasing of foreign securities using externally generated funds.


4.This is not the case in Kenya, Uganda and Rwanda, while in Burundi it only requires the approval of the central bank.


5. In the same vein, Tanzania restricts its citizens' participation in foreign capital markets, including in IPOs floated across the border.


5. The sale or issue of securities abroad by residents is also restricted, unless approved by the Capital Markets and Securities Authority (CSMA), while in Kenya and Uganda there is no such bureaucracy.


6. The purchase of bonds and other debt instruments locally by non-residents is restricted in Tanzania but not in other partner states.


7. Tanzania does not allow non-residents to sell or issue debt securities in the domestic market but the same is allowed in other partner states.



8. To achieve financial integration, barriers to international movement of capital across national boundaries need to be removed.



9. Free capital movement across national borders among countries with different currencies requires the integration of foreign exchange and money markets.




DUMBER aka Mr NDULU last week Arusha baada ya kuulizwa majibu yake ni:

Tanzania will liberalise its capital account within the East African trading bloc by 2012 and 2015 for the rest of the world.


According to Prof Ndulu, the Tanzanian position on the capital account was underpinned by fears of capital flight but now the situation has changed as investments into Tanzania from the region grow rapidly.



EDWIN MTEI naye aka chip in kwa kusema hivi:

CA liberalisation delay is "absolutely absurd."Mr Mtei said in the current situation, virtual capital flight cannot be controlled, while local investors can use agents to buy shares across the borders.



In otherwords wakati wenzetu wanaendelea mbele sisi tunasema mambo haya hayana umuhimu. Na haya yasingefikiwa kama SI Ndulu na Mwenzie Mkulo hawajaridhia


JK its about time ukawaita hawa vijana na kuwauliza if they are have interest za nchi hii at heart or not. Ikishindikana Tangaza nafasi za kazi shortlist then wape ma BULLDOZERS uoneka kama kutakuwa na urasimu usioeleweka


But then again: BENO NDULU alumni mwenzie wa kule Northwestern ni Charles Henston wa NRA wakati Mustafa Mkulo Alumni mwenzie kule ALMEDA university ni MBWA na ushahidi huu hapa:

Almeda University - Wikipedia, the free encyclopedia

The East African: *- News*|Tanzania financial sector most rigid in East Africa, new IMF study reveals
 
Slidingroof,

I can care less the kind of school these two attended. My prblem is that these two have never come up with anything tangible to change positively the direction of our economy.

Our currency is loosing value and rather than working hard to restore its purchasing power, they have resorted in printing additional paper and dump into circulation.

They have
  • failed to be creative in reducing National Debt (both internal and external),
  • failed in creating good micro and macro economic programs,
  • failed to create effective short term and long term economic goals that can focus on increase productivity and revenues to Serikali and Wananchi,
  • failed to curb spending and reducing costs of operationgo ur government resulting in heavy debts and imbalance budget.
Basically, they are USELESS !
 
Bwana SLINDINGO Thanks sana. Hizi reports ni nzuri sana. Hawa jamaa kwani wanazo vichwani basi Mkulo sina kitu kabisa. Ndulu labda tu ni ulevi umemzidi lakini kidogo mwanzoni alikuwa hajambo
 
Hivi kuna mtu keshawahi kuingia mle BOT akaona ofisi zilivyo?


Yaani ofisi zao mle ndani utafikiri mtu uko kwenye ofisi za GOLDMAN SACHS
 
The issue is very interesting though is written by the East African News Paper. Its true that people want to see relaxation to liberalisation rules/regulations, but deeply there is no trusts between our Nations. The issue of Safari Com was kind of conning. Alot of things about the company have known after the IPOs. Thinking of the implications and what happened, I definetly side with the Government on the decision not to allow Tanzanians to buy the said shares. Have you ever tried to make follow up on what happened on the share prices and the massive debt that the was not being validated/disclosed when going into IPO's. There is a lack of transparency between our organisations thus in some cases issuing shares means defrauding people.
On the NMB, the government had its own motives; empowering its citizens and not beyond that. With the lack of knowledge on the mode of operandi of capital market, the Government feels it has the duty of care to its citizens by protecting the limited resources possesed by its citizen.
Writing this, does not mean, I am opposing to these trading but its the matter of time and we will be there.
 
Rev. Kishoka said:
Slidingroof,

I can care less the kind of school these two attended. My prblem is that these two have never come up with anything tangible to change positively the direction of our economy.

Our currency is loosing value and rather than working hard to restore its purchasing power, they have resorted in printing additional paper and dump into circulation.

They have
  • failed to be creative in reducing National Debt (both internal and external),
  • failed in creating good micro and macro economic programs,
  • failed to create effective short term and long term economic goals that can focus on increase productivity and revenues to Serikali and Wananchi,
  • failed to curb spending and reducing costs of operationgo ur government resulting in heavy debts and imbalance budget.
Basically, they are USELESS !
Click to expand...
Mkuu hivi currency ikiloose value ni hasara tu hamna faida?
 
capital flight through total liberalization of our capital account is the panacea for economic development?
 
MTEI kazungumzapoint moja hapo ambayo nyie naona hamja iona

pili in this globalised world kweli utaweka ukuta mpaka wapi?
 
Punguza jazba.
I dont believe on you that our currency is loosing value every time!!
Do you know the advantage of devalue our currency against Kenyan Shilling? Do you know the advantage of restricting capital outflow in our balance of payment account? It seems that you are economist but probably you forget. Ni somo refu ila kwa kifupi ni kwamba kwa sasa uchumi wa kenya una viwanda vingi sana maana wao walijiandaa siku nyingi so tutakapofanya mistake na ku uplift currency yetu ikaribie thamani na yao tutakua tumeliwa maana viwanda vyao vitakua vinauza bidhaa kwetu kwa sana na viwanda vyetu vitazidi kufa. Kwa sasa sisi tuna advantages coz export ni rahisi kwa EAC kuliko import so inatusaidia ku protect our infant industries pamoja na ku maintain balance of payment.
Nadhani kwa hilo somo dogo litakupa mwanga.
Ila asante kwa report.
 
Anfaal said:
The issue is very interesting though is written by the East African News Paper. Its true that people want to see relaxation to liberalisation rules/regulations, but deeply there is no trusts between our Nations. The issue of Safari Com was kind of conning. Alot of things about the company have known after the IPOs. Thinking of the implications and what happened, I definetly side with the Government on the decision not to allow Tanzanians to buy the said shares. Have you ever tried to make follow up on what happened on the share prices and the massive debt that the was not being validated/disclosed when going into IPO's. There is a lack of transparency between our organisations thus in some cases issuing shares means defrauding people.
On the NMB, the government had its own motives; empowering its citizens and not beyond that. With the lack of knowledge on the mode of operandi of capital market, the Government feels it has the duty of care to its citizens by protecting the limited resources possesed by its citizen.
Writing this, does not mean, I am opposing to these trading but its the matter of time and we will be there.
Click to expand...

It is a great arguement you have presesnted. The other true side is that: are our citizens capable of exploiting these opportunities? or we want to abjugate these opportunities to foreigners?. The example of NMB is typical and the debate that went by reminds some of us our nationals stakes.

Just to draw your attension to mention a frudulent misinformation of the famous celtel come zain come airtel; our government has a 40% share but we (the public) are deliberately shelved off from knowing the changing hands and the actual transactions of these shares.

That is why some of us espcialy me I get confused as the what economic policies and strategies are pursued transparently. Its true we have dump headed leadership who are failing to cease opportunities, but what can we do under the current setup?
 
mmh IMF, agent la mabeberu nalo ni shirika la kulisikiliza na ku refer to? SLIDINGROOF ACHA HIZO!!
 
Upon first glance, it seems to me that blaming the two gentlemen is ok. They might be incompetent to hold their posts; however, they have been at their respective positions for three years to say the least. Therefore, accusations against them might not serve the purpose of helping our national financial institutions. This is because building financial institutions, and for that matter any national institutions, takes time and collective responsibility.

One might argue that it's almost 50 years since the country gained its independence from colonial power, and we should have done better by now. That's entirely correct. However, financial policies that the country took between 1967 and 90s didn't foster strong financial institutions and expertise that are essential in current settings. Therefore, instead of blaming the two gentlemen, it's time to take collective responsibility and strategize correct approaches that will move the country in the right direction.

The typical example that shed the light that this is not a personal issue is the failure of former NBC and other state controlled banks to live to their full potentials. NBC was created in 1967, after the nationalization of several private banks with the goal of empowering people in mind. However, taking into account the level of mediocrity in the bank, bad economic policies, and other factors, the former bank exemplifies the debacle of the state owned institutions.

Mind you, this was the bank that once stood as the corner stone of the Arusha Declaration. It received massive financial injections from the government, and unconditional support from the founding father. Today, government share has been reduced from 100% to 30%.

Now with regard to Kenyans domination in financial sector in EA, I guess it's time we give them credits for their efforts. We always blame Kenyans for unfair advantage. For example, we blame them for advertising that Mt. Kilimanjaro is in Kenyan side in order to attract tourists. However, despite their biter ethnic divisions, Kenyans have done a better job to solidify their financial institutions. And the typical example is the domination of KCB in East Africa.

Like NBC, KCB was established in similar fashion. In late 60s, the government of Kenya confiscated several banks to form a nation commercial bank which had similar goals as those of NBC, to empower its people. By 1970, the Kenyan government controlled 100% of the shares.

Today the government has reduced its share to 17%. Nonetheless, the bank has branches in Sudan, Uganda, Rwanda, Tanzania, and Burundi. In addition, it's listed on Uganda Securities Exchange (USE) and Nairobi Stock Exchange (NSE).

KCB is a successful story, and when I compare it to NBC, I feel that our collective responsibility as a nation has left much to be desired.
 
Mkulo is a jock, we shouldn't even talk about him. Ndulu is a IMF/World Bank product, which shares the believe that more aid equal to prosperity. Those are the fox whose recommended to us to reduce subsidy to our farmers, eliminate universal primary education and privatize everything.


Tanzania economy is still in shambles, few people are enjoying prosperity while over 80% are in deep poverty. Ndulu became part of fiscal policies instead of focus in monetary policies. Tanzania shilling is still in toilet, the devaluation didn't boost FDI because of poor policies inside the country.
 
Anfaal nakupa tano mkuu. Watu wanaposoma hili gazeti la East African ni vyema wakajua ni nchi gani wao hupenda kuipigia chapuo. Matatizo ya Safaricom's IPO ndiyo yanazidi kujionyesha. Kwa kuanzia zilikuwa oversubscribed kama ilivyo kawaida kwa IPOs nyingi za kampuni kubwa na kwenye kurejeshewa fedha kuna watu mpaka leo wanalia machozi na "brokers" wao. IPO ya NMB ilikuwa so oversubscribed hata pamoja na kuwanyima wageni kushiriki. Beneficiaries wa IPO ya NMB yalikuwa ni mashirika ya umma ya pensheni na mifuko ya jamii kitu ambacho kingekuwa kikubwa maradufu kama milango ingefunguliwa kwa "wanajumuiya".

Jamani tusilalamike kwa kila kitu, financial liberalization ina merits zake in principle lakini in practice maafa yake tumeshayaona na kuanzia na madeni ya serikali za Ireland, Greece, Portugal, Spain na kabla ya hapo msukosuko wa mfumo wa fedha na benki dunia nzima.
 
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