BoT warns of hard times as inflation bites

[BAK]

What!? huh!?

Watanzania wamekuwa wakilalamika hali ngumu ya maisha tangu JK alipoingia madarakani, na katika muda wote huo BoT walikuwa kimya leo ndio wanaamua kutoa onyo kwa wananchi!

BoT warns of hard times as inflation bites

By WILFRED EDWIN
THE EAST AFRICAN
Special Correspondent

Increases in the prices of food, fuel, electricity and water are hampering government efforts to contain inflationary pressures, spelling tougher economic times ahead.

These four crucial items have faced an increase in inflation of 10.1 per cent in January 2008 as compared with a December 2007 rise of 6.6 per cent.

National Bureau of Statistics data shows that annual inflation rate for the year ended January 2008 increased to 8.6 per cent compared with 6.4 per cent registered for the year ended December 2007.

The overall index increased from 135.7 per cent in January 2007 to 147.4 per cent in January 2008.

Inflation for the month of January 2008 rose by 3.4 per cent as compared with 1.3 per cent registered during December 2007.

According to NBS, the overall index increased from 142.5 per cent in December 2007 to 147.4 per cent in January 2008.

These increase was driven by the increase of food prices by 5.2 per cent and fuel power and water by 1.9 per cent.

Food items that contributed to such price increases included cereals, potatoes, cooking bananas, vegetables, fruits, meat, chicken, fish, beans, cowpeas, sugar and milk.

Non-food items that saw such increase in prices were electricity, kerosene and charcoal, and petrol, diesel and car batteries.

Prices for educational needs such as school fees and notebooks, mineral water and other bottled drinks, rents, furniture, shaving creams, cough syrup, radio and radio cassettes and handbags also contributed to the inflationary pressure.

However, the Bank of Tanzania has warned that in the coming months, inflationary pressures should also be expected to be driven by the recent increase in electricity tariffs, the rise in wages and salaries, and the persistent increase of international oil prices.

In addition, the recent upward pressure on international food prices due to increased demand for bio-fuels, will take its toll on imported food prices, which will in turn exert an upward pressure on domestic inflation.

BoT said in its mid-term review of the monetary policy statement that it is determined to implement prudent policies to ensure that money supply in the economy is in line with the production of goods and services. Otherwise, too much liquidity will create an upward pressure on domestic prices leading to inflation.

The central bank says that the government is taking measures to address the looming food shortages in the country.

It first conducted an in-depth assessment of the food supply situation in the country.

This indicated that 21 districts were experiencing shortages and would need immediate supply of food relief.

By the end of January 2008, the government had supplied a total of 625.8 million tonnes of food.

Secondly, import tariffs on food grains were waived to promote food imports by the private sector in a bid to strengthen domestic food supply.

Plans are underway to import 300,000 tonnes of cereals to ensure that the strategic grain reserve is adequate.

The review indicates that the overall fiscal performance for Tanzania mainland during the first six months of 2007/08 was on track, with strong growth in revenue collections.

BoT says that Tanzania has to promote export-led economic growth as an effective poverty-reduction strategy.

In the past several decades, countries that have grown rapidly and reduced poverty sharply are those that have pursued export expansion, particularly of processed and manufactured products.

 

[Augustine Moshi]

If the BoT people really cared about Tanzanians, they would have stopped the massive theft of public funds that took place there. Balali needed a lot of BoT people to siphon off 12.5% of the total budget (I am agreeing with Dr. Slaa that 500bn/=, and not just 150bn/=, was stolen from the BoT).

I note with concern that the current leadership of the BoT consists of Balali's closest aides. They are guilty of aiding and abetting crime. They have lost any right to warn us. After all, they are obscurantists who have all this time tried to do their best to convince us that JK's management of the economy was superb!

They can blame the current inflationary pressure on external factors but I will blame it on their habit of constantly stealing from us.

 

[Mahesabu]

TAHADHARI NI TAHADHARI........TUJIANDAE KWA KUWA TAHADHARI HII INATUHUSU TULIOMO NCHINI......TUJIANDAE KWA HIZO HARD TIMES ZILIZOTAHADHARISHWA NA BOT.....!ON THE OTHER HAND.....DIDN'T BOT CHANGIA KTK HALI HII.....?

 

[Mtanganyika]

Swalazima la Inflation bado halifahamiki kwa kina nchini Tanzania. I still have dought with the number given. Naamini ya kwamba inflation rate in Tanzania is more than 10%, sababu hakuna specific indicator walizoziweka hapo ambazo majority ya watanzania wanazitumia in dail basis.

Swala la energy need kufanyanyiwa its own analysis na kuonyesha ni % ngapi inflation inachangiwa na hike up of umeme price. Then BoT need to explain what measures they will take to reduce that nightmare. Jee tatizo ni nini? Slow economic growth? More money in circulation? Poor monetery system? Ni nini hasa chanzo?

 

[Pundit]

If the BoT people really cared about Tanzanians, they would have stopped the massive theft of public funds that took place there. Balali needed a lot of BoT people to siphon off 12.5% of the total budget (I am agreeing with Dr. Slaa that 500bn/=, and not just 150bn/=, was stolen from the BoT).

I note with concern that the current leadership of the BoT consists of Balali’s closest aides. They are guilty of aiding and abetting crime. They have lost any right to warn us. After all, they are obscurantists who have all this time tried to do their best to convince us that JK’s management of the economy was superb!

They can blame the current inflationary pressure on external factors but I will blame it on their habit of constantly stealing from us.

I am with you Moshi,

At the end of the day the buck stops at JK.He is the one parading himself as a reformist only to recycle these old bags who most certainly had a hand in the massive siphoning of funds.To me if you replace Balali with his number two the scenario most likely is that the president is spinning the issue in a PR move, not really caring about results but interested in a cover up.I will not at all be surprised to learn that Kikwete himself is involved.The new governor either as number two knew what was going on and pprobably participated in the heist himself and now is doing laundry for the whole process of Nazi gold acquisition, if not, and he really had no idea that this happenned then he is sooooooo dumb to have such a heist taking place right under his nose without him knowing it is scary to have him as our governor now.Why, another heist could be taking place now, whats to stop that if the "Professor" is so absent minded?

 

[Injinia]

Basically they are now telling us what we Tanzanians have been trying to tell THEM for the past 10 or so years! And all along, up until last week, even, they been filling us with crap about how well the economy is doing!
Wamezoea kudanganya majumbani kwao wanadhani bado rahisi kuwadanganya waTZ!

 

[Lunyungu]

What!? huh!?

Watanzania wamekuwa wakilalamika hali ngumu ya maisha tangu JK alipoingia madarakani, na katika muda wote huo BoT walikuwa kimya leo ndio wanaamua kutoa onyo kwa wananchi!

BoT warns of hard times as inflation bites

By WILFRED EDWIN
THE EAST AFRICAN
Special Correspondent

Increases in the prices of food, fuel, electricity and water are hampering government efforts to contain inflationary pressures, spelling tougher economic times ahead.

These four crucial items have faced an increase in inflation of 10.1 per cent in January 2008 as compared with a December 2007 rise of 6.6 per cent.

National Bureau of Statistics data shows that annual inflation rate for the year ended January 2008 increased to 8.6 per cent compared with 6.4 per cent registered for the year ended December 2007.

The overall index increased from 135.7 per cent in January 2007 to 147.4 per cent in January 2008.

Inflation for the month of January 2008 rose by 3.4 per cent as compared with 1.3 per cent registered during December 2007.

According to NBS, the overall index increased from 142.5 per cent in December 2007 to 147.4 per cent in January 2008.

These increase was driven by the increase of food prices by 5.2 per cent and fuel power and water by 1.9 per cent.

Food items that contributed to such price increases included cereals, potatoes, cooking bananas, vegetables, fruits, meat, chicken, fish, beans, cowpeas, sugar and milk.

Non-food items that saw such increase in prices were electricity, kerosene and charcoal, and petrol, diesel and car batteries.

Prices for educational needs such as school fees and notebooks, mineral water and other bottled drinks, rents, furniture, shaving creams, cough syrup, radio and radio cassettes and handbags also contributed to the inflationary pressure.

However, the Bank of Tanzania has warned that in the coming months, inflationary pressures should also be expected to be driven by the recent increase in electricity tariffs, the rise in wages and salaries, and the persistent increase of international oil prices.

In addition, the recent upward pressure on international food prices due to increased demand for bio-fuels, will take its toll on imported food prices, which will in turn exert an upward pressure on domestic inflation.

BoT said in its mid-term review of the monetary policy statement that it is determined to implement prudent policies to ensure that money supply in the economy is in line with the production of goods and services. Otherwise, too much liquidity will create an upward pressure on domestic prices leading to inflation.

The central bank says that the government is taking measures to address the looming food shortages in the country.

It first conducted an in-depth assessment of the food supply situation in the country.

This indicated that 21 districts were experiencing shortages and would need immediate supply of food relief.

By the end of January 2008, the government had supplied a total of 625.8 million tonnes of food.

Secondly, import tariffs on food grains were waived to promote food imports by the private sector in a bid to strengthen domestic food supply.

Plans are underway to import 300,000 tonnes of cereals to ensure that the strategic grain reserve is adequate.

The review indicates that the overall fiscal performance for Tanzania mainland during the first six months of 2007/08 was on track, with strong growth in revenue collections.

BoT says that Tanzania has to promote export-led economic growth as an effective poverty-reduction strategy.

In the past several decades, countries that have grown rapidly and reduced poverty sharply are those that have pursued export expansion, particularly of processed and manufactured products.

What a twist now .Majuzi Gavana went Public na kusifia the economy growth na shilling gain is about 2 weeks leo anasemaje ? Mimi nilihoji matamshi yake nakusema yalikuwa ya kisiasa nikapigwa .Alisema shilingi ime gain dhidi ya dola na hakusema tangia lini .Hakusema kigezo cha Uchumi kukua aliongea juu juu na kuingia mtini leo wanasema ? Ama kweli Tanzania .

 

[Kitila Mkumbo]

This the problem with the truth; you can't hide it for so long. So, finally they are able to admit what a common mwananchi told them since 2006 and before. They are useless complicit professionals turned political spin doctors. They kept on telling the mwananchi the situation's not as bad as opposition parties heralded, now they are telling us it is actually worse than they told us. They should first apologise before we accept their belated revealation of the obvious!

 

[Lunyungu]

This the problem with the truth; you can't hide it for so long. So, finally they are able to admit what a common mwananchi told them since 2006 and before. They are useless complicit professionals turned political spin doctors. They kept on telling the mwananchi the situation's not as bad as opposition parties heralded, now they are telling us it is actually worse than they told us. They should first apologise before we accept their belated revealation of the obvious!

Kitila I have been at the fore front kuwapinga hawa na nilimpiga Gavana moja kwa moja .Watu wakanivaa leo wanarudi na kusema haya .What a shame mtu una PhD bado unataka kuleta longo longo hata kwenye hali halisi ?

 

[DAR si LAMU]

This the problem with the truth; you can't hide it for so long. So, finally they are able to admit what a common mwananchi told them since 2006 and before. They are useless complicit professionals turned political spin doctors. They kept on telling the mwananchi the situation's not as bad as opposition parties heralded, now they are telling us it is actually worse than they told us. They should first apologise before we accept their belated revealation of the obvious!

..kitila,

..na bado,subiri utayaona ya firauni. haya ni ya musa tu!

..tuliona moshi,watu wakasema hakuna moto. sasa paa limeanza kuungua kwa ndani na punde moto utatoka nje!. na kwa uzimaji moto wetu,hii nyumba itaungua kwa 70%!

 

[Field Marshall ES]

1. Ni kweli baadhi ya viongozi wetu wa taifa ni wabovu sana, alipoingia huyu Ndulu, tuliambiwa ni kichwa akajaribu ku-spin maneno ya uchumi in politics, sasa huyooooooo yamemshinda.

2. Mimi sielewi ni wakati gani bongo tuliwahi kuwa na uchumi safi, au ni lini hatukuwa na inflation, au toka tupate uhuru, mimi ninajionea kuwa mambo ni yale yale tu, waya mkali na sasa ndio worse kuliko anytime in the past.

3. Uchumi wa dunia nzima sasa ni noma, leo huko ma-US, kampuni kubwa kama Bear Sterns, ambayo mwaka jana tu share zake zilikuwa ni $170, leo imenunuliwa na JP Morgan kwa only $2 shares, sasa huyo aliyekuwa anakataa kuwa bongo uchumi si mbaya alikuwa anasema nini?

Ninaamini uchumi wetu ni mbovu, toka tuwe huru haujwahi kuwa sawa, na sasa hivi ndio kabisaa unazidi kwenda chini zaidi, labda hatuna wachumi wanaofaaa au wanaingiliwa na wanasiasa kwenye mamauzi yao, lakini something is not right huko BOT na watengeneza uchumi wetu kwa ujumla, ingawa pia cha kushangaza ni kwamba viongozi wetu wakiwa kwenye power wanakuwa na biashara nzito na zinafanikiwa, lakini wakitoka kwenye power tu biashara zinaanza kufa WHY?

 

[DAR si LAMU]

..fmes,

..nimesoma post yako nikakumbuka bush aliposema vita ya irak imefanikiwa na dunia ni sehemu yenye amani zaidi sasa!

..what a joke!

..siasa zikitumiwa vibaya,zina madhara makubwa kuliko!

 

[BAK]

1. Ni kweli baadhi ya viongozi wetu wa taifa ni wabovu sana, alipoingia huyu Ndulu, tuliambiwa ni kichwa akajaribu ku-spin maneno ya uchumi in politics, sasa huyooooooo yamemshinda.

2. Mimi sielewi ni wakati gani bongo tuliwahi kuwa na uchumi safi, au ni lini hatukuwa na inflation, au toka tupate uhuru, mimi ninajionea kuwa mambo ni yale yale tu, waya mkali na sasa ndio worse kuliko anytime in the past.

3. Uchumi wa dunia nzima sasa ni noma, leo huko ma-US, kampuni kubwa kama Bear Sterns, ambayo mwaka jana tu share zake zilikuwa ni $170, leo imenunuliwa na JP Morgan kwa only $2 shares, sasa huyo aliyekuwa anakataa kuwa bongo uchumi si mbaya alikuwa anasema nini?

Ninaamini uchumi wetu ni mbovu, toka tuwe huru haujwahi kuwa sawa, na sasa hivi ndio kabisaa unazidi kwenda chini zaidi, labda hatuna wachumi wanaofaaa au wanaingiliwa na wanasiasa kwenye mamauzi yao, lakini something is not right huko BOT na watengeneza uchumi wetu kwa ujumla, ingawa pia cha kushangaza ni kwamba viongozi wetu wakiwa kwenye power wanakuwa na biashara nzito na zinafanikiwa, lakini wakitoka kwenye power tu biashara zinaanza kufa WHY?

Kwa kifupi BoT kumejaa uozo na huyu Ndulu aliyekuwepo wakati ufisadi ukifanywa ndani ya BoT ameshasema uwongo tangu alipoteuliwa zaidi ya mara moja ambao unamuonyesha kwamba yuko radhi kuwadanganya Watanzania ili alinde kitumbua chake badala ya kusema ukweli kama unavyofahamika kwa Watanzania. Alipoteuliwa kushika nafasi ya Ugavana tuliambiwa na wanaomfahamu kwamba ni kichwa kweli na ni mchapa kazi mzuri, lakini hadi hii leo anaonekana anafuata mstari wa waliomteua ili aendelee kuwa madarakani, si ajabu anayajua mengi kuhusiana na ufisadi wa EPA.

 

[Field Marshall ES]

Nilijua tu kuwa huyu Ndulu, hana lolote ukweli ni kwamba uchafu wote umefanyika BOT, Ndulu akiwepo pale BOT, na hatukusikia akisema anything about it, sasa tulitegemea nini huko, eti mabadiliko kwa faida ya taifa?

 

[BAK]

Nilijua tu kuwa huyu Ndulu, hana lolote ukweli ni wakmba uchafu wote umefanyika BOT, Ndulu akiwepo pale BOT, na hatukusikia akisema anything about it, sasa tulitegemea nini huko, eti mabadiliko kwa faida ya taifa?

Mkuu, ukweli ni kwamba kama Muungwana angekuwa na nia ya kweli kuisafisha BoT basi nafasi zote za utendaji za juu pamoja na nafasi ya Gavana zingetakiwa zijazwe na watendaji toka nje ya BoT siyo wale wale waliokuwemo ndani ya BoT ambao kwa namna moja au nyingine walifahamu ufisadi ukitendeka lakini hawakutia neno.

 

[Kapinga]

1. Ni kweli baadhi ya viongozi wetu wa taifa ni wabovu sana, alipoingia huyu Ndulu, tuliambiwa ni kichwa akajaribu ku-spin maneno ya uchumi in politics, sasa huyooooooo yamemshinda.

2. Mimi sielewi ni wakati gani bongo tuliwahi kuwa na uchumi safi, au ni lini hatukuwa na inflation, au toka tupate uhuru, mimi ninajionea kuwa mambo ni yale yale tu, waya mkali na sasa ndio worse kuliko anytime in the past.

3. Uchumi wa dunia nzima sasa ni noma, leo huko ma-US, kampuni kubwa kama Bear Sterns, ambayo mwaka jana tu share zake zilikuwa ni $170, leo imenunuliwa na JP Morgan kwa only $2 shares, sasa huyo aliyekuwa anakataa kuwa bongo uchumi si mbaya alikuwa anasema nini?

Ninaamini uchumi wetu ni mbovu, toka tuwe huru haujwahi kuwa sawa, na sasa hivi ndio kabisaa unazidi kwenda chini zaidi, labda hatuna wachumi wanaofaaa au wanaingiliwa na wanasiasa kwenye mamauzi yao, lakini something is not right huko BOT na watengeneza uchumi wetu kwa ujumla, ingawa pia cha kushangaza ni kwamba viongozi wetu wakiwa kwenye power wanakuwa na biashara nzito na zinafanikiwa, lakini wakitoka kwenye power tu biashara zinaanza kufa WHY?

Biashara zao zinategemea tenda za serikali! the longer you in government the more contracts you get...Binafsi si mfahamu Mengi but in my view and the way i see things, Mpaka kesho wanasiasa bongo watamchukia Mengi...im sure if Mengi akigombea ubunge anywhere in bongo..he can easily get it..sema ndo hivyo he seems to be helping our communities without being an MP. Its sad kwa kweli...mpaka kesho ntaendelea kusema kwamba Kikwete has the chance to surpass Nyerere's legacy if he plays his cards right..too bad homeboys wake hawatamwelewa na watamwaga!! the sad truth..

 

[Pundit]

Central Bank Issues First Balance Sheet

East African Business Week (Kampala)

NEWS
24 March 2008
Posted to the web 24 March 2008

By Mohamed Said

Tanzania's central bank has issued its first known balance sheet to be made public, last week prompting speculation that it has embarked on a move to increase its visibility.

The Bank's reputation plummeted after it was linked to the External Payment Arrears (EPA) funds loss worth about US$133million which economists say could have built 1,500 km of tarmac roads, early this year.

The healthy balance sheet shows that the Bank's reserves have drastically jumped from Tsh277.9 billion ($277millions) it had in its coffers by the end of last year to Tanzanian shillings 493.6 billion ($493million) when by last January.

No explanation has been made the reason behind this sudden increase in reserves at the state-owned bank.

Bank sources said the balance sheet is part of public obligations which the institution had to deliver "pursuant to section 21(20 of the Bank of Tanzania Act, 2006."

The report shows that its assets increased from Tsh5,182 billion ($5,180m) by last December to Tanzania shillings 5,401 billion ($5,400m) by end of last January.

The increase had been due to the appreciation of the Bank's "property, plant and equipment", its quota at the International Monetary Fund (IMF) and its foreign currency marketable securities which by the January under review were worth about $1,645million.

In that month, Tanzanian currency in circulation was worth $1,300million, approximately including notes and coins.

The preliminary balance sheet appeared without auditors' comment however.

It is understood that Controller and Auditor General Offices are responsible for the Bank's accounts. Private auditing firms like the Ernst and Young had a stint also which unveiled the EPA anomalies which had grabbed headlines here.

 

[COMRADE44]

Central Bank Issues First Balance Sheet

East African Business Week (Kampala)

NEWS
24 March 2008
Posted to the web 24 March 2008

By Mohamed Said

Tanzania's central bank has issued its first known balance sheet to be made public, last week prompting speculation that it has embarked on a move to increase its visibility.

The Bank's reputation plummeted after it was linked to the External Payment Arrears (EPA) funds loss worth about US$133million which economists say could have built 1,500 km of tarmac roads, early this year.

The healthy balance sheet shows that the Bank's reserves have drastically jumped from Tsh277.9 billion ($277millions) it had in its coffers by the end of last year to Tanzanian shillings 493.6 billion ($493million) when by last January.

No explanation has been made the reason behind this sudden increase in reserves at the state-owned ban

Is this the foreign reserves the bank holds as of Jan 2008? And is anYone in a position to tell us after the "RIGHTING OFF" OF OUR EXTERNAL DEBTS,what are the benifits to the country ?
And how much do we still owe?

 

[Mwafrika wa Kike]

Mkuu, ukweli ni kwamba kama Muungwana angekuwa na nia ya kweli kuisafisha BoT basi nafasi zote za utendaji za juu pamoja na nafasi ya Gavana zingetakiwa zijazwe na watendaji toka nje ya BoT siyo wale wale waliokuwemo ndani ya BoT ambao kwa namna moja au nyingine walifahamu ufisadi ukitendeka lakini hawakutia neno.

Kila nikisema hapa kuwa Kikwete anahusika moja kwa moja na hawa mafisadi basi watu wengine wanaona kama ninamfuata presidaa wa nchi bila sababu!

Kikwete alikuwa na kila sababu ya kusafisha BoT na kufanya the right kwa vile nchi yote ilikuwa nyuma yake lakini akaamua kumweka Ndulu (ambaye alihusika na upotevu wa hizo pesa in the first place).

Kitendo pia cha kuzuia report ya ukaguzi wa EPA isiwekwe hadharani inaita kwa maswali makubwa dhidi ya Kikwete kwenye hii vita ya kumaliza ufisadi!

 

[Mwafrika wa Kike]

Central Bank Issues First Balance Sheet

East African Business Week (Kampala)

NEWS
24 March 2008
Posted to the web 24 March 2008

By Mohamed Said

Tanzania's central bank has issued its first known balance sheet to be made public, last week prompting speculation that it has embarked on a move to increase its visibility.

The Bank's reputation plummeted after it was linked to the External Payment Arrears (EPA) funds loss worth about US$133million which economists say could have built 1,500 km of tarmac roads, early this year.

The healthy balance sheet shows that the Bank's reserves have drastically jumped from Tsh277.9 billion ($277millions) it had in its coffers by the end of last year to Tanzanian shillings 493.6 billion ($493million) when by last January.

No explanation has been made the reason behind this sudden increase in reserves at the state-owned bank.

Bank sources said the balance sheet is part of public obligations which the institution had to deliver "pursuant to section 21(20 of the Bank of Tanzania Act, 2006."

The report shows that its assets increased from Tsh5,182 billion ($5,180m) by last December to Tanzania shillings 5,401 billion ($5,400m) by end of last January.

The increase had been due to the appreciation of the Bank's "property, plant and equipment", its quota at the International Monetary Fund (IMF) and its foreign currency marketable securities which by the January under review were worth about $1,645million.

In that month, Tanzanian currency in circulation was worth $1,300million, approximately including notes and coins.

The preliminary balance sheet appeared without auditors' comment however.

It is understood that Controller and Auditor General Offices are responsible for the Bank's accounts. Private auditing firms like the Ernst and Young had a stint also which unveiled the EPA anomalies which had grabbed headlines here.

Taratibu wataanza kukusanya pesa za kodi na kuziweka BoT ili kuwadanganya kina mzee Nkhwanlulu kule Kahama kuwa pesa za BoT zimerudishwa kwa hiyo mambo ni safi!