Kikwete to announce stimulus for economy

[MwanaFalsafa1]

President Jakaya Kikwete is set to announce a bail out package worth billions of shillings to rescue local companies that have been hit hard by the global economic crisis.

The Government's stimulus package, which awaits cabinet approval on Thursday, could be unveiled by Saturday, Finance and Economic Affairs minister Mustafa Mkulo said yesterday.

He said the bail out plan, compiled by a team of experts led by Bank of Tanzania (BoT) governor Prof Benno Ndulu, would be the major point in President Kikwete's address to the Parliament next week.

The Citizen has established that the package primarily seeks to keep the current economic growth on track and provide a form of social security amid fears of massive job losses due to looming company closures.

Addressing members of the Parliamentary Committee on Finance and Economy yesterday, Mr Mkulo said the stimulus package was critical "given the weight and importance of the current situation".

"The stimulus plan will target companies-mainly banks - to help them sustain their operations for a period of between six months and two years,"the minister said.

He also announced the approval of a $224 million (approx. Sh292 billion) advance from the $336 million (over Sh436 billion) released to the Government by the International Monetary Fund (IMF) to help fight the adverse effects of the global crisis.

Treasury officials, who spoke on condition of anonymity since they were not allowed to divulge details of the rescue package to the media, said the plan also targeted to control food prices.

And Prof Ndulu said the Government was trying to boost the economy amid concerns the slowdown could reverse nearly a decade of buoyant economic growth in the country.

He said Tanzania would do whatever was possible to "protect the hard-earned macroeconomic stability".

"The most crucial thing for us to do is to minimise the possible interruption in the growth process during the 2009/10 financial year, and cushion workers against lay offs and high costs of food," the central bank chief said early this year in a presentation on the crisis.

Prof Ndulu urged cooperation between the private sector and Government saying the downturn posed a real challenge to the country's economy and food security.

This was despite earlier remarks by the Government that the recession would not have any major effect on Tanzania since the country was remotely linked to the global economic system.

But there seems to be consensus now between key economic stakeholders in the country that the downturn is a major threat to Tanzania's economy.

However, some economic analysts criticise the Government for "dragging its feet" and taking too long to wake up to the reality of the magnitude of the economic crisis.

Dr Honest Ngowi, a lecturer at Mzumbe University warned that if not properly administered, the bail out plan could spark massive spending, which could lead to hyperinflation.

"While it is important to stimulate the economy through bailing out specific key industries, there is need to guard against the negative implications of such interventions," he said.

Prof Ndulu, who headed the team that drew up the stimulus package, said the Government, which had poor revenue collections this year, would seek collaboration with banks in its response to the crisis.

The banks would be encouraged to open lines of credit, especially to local horticultural, cotton, coffee and sisal farmers, whose exports have plunged due to falling demand from the traditional European markets.

The other major focus area of the rescue plan would be promoting infrastructure investments to boost agricultural production, which is projected to decline to 2.4 per cent in 2009 from 3.6 per cent in 2008.

Prof Ndulu also said there were efforts to eliminate red tape, aimed at attracting investments at a time some foreign investors are either rescheduling or cancelling their projects.

In a paper titled The Global Financial and Economic Crisis: Challenges and Responses, the central bank chief said the Government would not bail out companies that had solvency problems, which only got worse due to the crisis.

"Beneficiaries of the stimulus package should be sectors, projects and organisations with systematic risks and whose demise will negatively affect the economy and lives of ordinary people," he said.

Source: The Citizen

 

[Steve Dii]

Prof Ndulu urged cooperation between the private sector and Government saying the downturn posed a real challenge to the country's economy and food security.

This was despite earlier remarks by the Government that the recession would not have any major effect on Tanzania since the country was remotely linked to the global economic system.

But there seems to be consensus now between key economic stakeholders in the country that the downturn is a major threat to Tanzania's economy.

.....duuuh!! Finally, hela za kampeni za uchaguzi zimepatikana!
.....maana za vitambulisho zimeleta mizengwe kibao!
.....Angalieni figure inayotajwa, Dowans iliyokataliwa nayo ina hover just around the same amount!

.....Cha kujiuliza - iwapo Bunge lingeshirikishwa, je hoja ingepingwa au kukubalika?

 

[Kiroroma]

Mbwembwe tu za kuiga Marekani si lolote si chochote.Uchumi wetu ni zaidi ya mfu aliyeko wodini kabla ya kwenda kuzikwa.

Sasa kusema kuufufua ni kiini macho tuu, sawa na kuwapa pikipiki maafisa utendaji ambao hawana shughuli zaidi ya kuendea vilabuni na nyumba za wageni na wake za walalahoi walio wengi.

Kikwete wala asidiriki kuwalaghai watanzania tena kwa ahadi hewa kwani zile ahadi za maisha bora kwa watanzania ni kama ndoto za mwenda wazimu tu.

 

[Kachero]

Mbwembwe tu za kuiga Marekani si lolote si chochote.Uchumi wetu ni zaidi ya mfu aliyeko wodini kabla ya kwenda kuzikwa.

Sasa kusema kuufufua ni kiini macho tuu, sawa na kuwapa pikipiki maafisa utendaji ambao hawana shughuli zaidi ya kuendea vilabuni na nyumba za wageni na wake za walalahoi walio wengi.

Kikwete wala asidiriki kuwalaghai watanzania tena kwa ahadi hewa kwani zile ahadi za maisha bora kwa watanzania ni kama ndoto za mwenda wazimu tu.

Lakini si unajua mambo ya kuiga yana mwisho,kwa mtazamo wangu uchumi wa Tanzania unahitaji zaidi ya stimulus plan.Kunahitajika vichwa vipya kuupanga upya na kuutoa mikononi mwa mafisadi.Bila hilo kufanyika mkakati wa JK ni mchezo wa kuigiza tena mchana kweupe.

 

[Mpita Njia]

Mbwembwe tu za kuiga Marekani si lolote si chochote.Uchumi wetu ni zaidi ya mfu aliyeko wodini kabla ya kwenda kuzikwa.

Na si ajabu hata hiyo stimulus package tukawa tunategemea tupatiwe na hao hao

 

[Mtanzania]

Na si ajabu hata hiyo stimulus package tukawa tunategemea tupatiwe na hao hao

Ndio ukweli wenyewe unafikiri hizo pesa JK atatoa wapi?

 

[Mazingira]

.....duuuh!! Finally, hela za kampeni za uchaguzi zimepatikana!
.....maana za vitambulisho zimeleta mizengwe kibao!
.....Angalieni figure inayotajwa, Dowans iliyokataliwa nayo ina hover just around the same amount!

Yaani CCM sijui lini wataacha kuifisadi hii nchi. Umeona TANESCO nao wanataka bilioni 312 kabla ya Juni mwakani, eti ni kwa ajli ya kununua mitambo ya kuzalisha umeme ili nchi isije ikaingia gizani. Yaani unaona kabisa jinsi CCM wanavyotafuta kila namna ya kutuibia tena kwa ajili ya kampeni zao chafu.

 

[WildCard]

Waliiuza NBC kwa nini pamoja na ushauri mzuri wa MWALIMU?

 

[ZeMarcopolo]

He also announced the approval of a $224 million (approx. Sh292 billion) advance from the $336 million (over Sh436 billion) released to the Government by the International Monetary Fund (IMF) to help fight the adverse effects of the global crisis.



The banks would be encouraged to open lines of credit, especially to local horticultural, cotton, coffee and sisal farmers, whose exports have plunged due to falling demand from the traditional European markets.


Source: The Citizen

Released??? c'mon, at least put a line about the conditions za hiyo release. Hakuna pesa inayokuwa released hivihivi!!!


Encouraged??? that means no ties, just hoping that the banks would respond positively!!?When you bail-out a company you dont just encourage it to do what you want, you demand that it does it or else you dont bail it out.

 

[ZeMarcopolo]

Bail-out si bail-out mpaka itakapoelezewa pesa zilipotoka na zimepatikana kwa masharti gani, la sivyo tunaweza kujikuta tunatatua short term perspects where as in long term we put the economy in jeorpady!

 

[Tatu]

What? Bailout to the bank?

I thought all the banks here makes big profits every year. OR may be they meant BANK M.

OK, Can the minister tell us in specifics where or what industries will the money be directed to? High cost of food? So the money will be used to bailout food vendors/suppliers, so who are those vendors/suppliers?

There are so many questions which need to be answered. My guess is, BRELA is going to get some bailout money too.

 

[Froida]

Itakuwa bora kama atawekeza kwenye kuifufua njia kuu za kukuza uchumi badala ya stimulus package ambayo kaambiwa aseme ili apewe misaada ya muda mfupi nini kinamkataza asiwashughulike TICTs,wahindi wa reli,Barricki wanaoua wananchi na mifugo huko kwa kumwaga uchafu mitoni,wezi wa samaki bahari kuu na ziwani,wanaoua wanyama wa pori,vijiji vinavyouzwa kwa wahindi wachina na waarabu,akazane kubadili mfumo uwe na tija asituzeveze sisi kutuambia stimulus package kwenye monthly speaches zake mojawapo alisema hatuko hatarini sasa yametoka wapi hayo.

 

[Mpita Njia]

Yaani CCM sijui lini wataacha kuifisadi hii nchi. Umeona TANESCO nao wanataka bilioni 312 kabla ya Juni mwakani, eti ni kwa ajli ya kununua mitambo ya kuzalisha umeme ili nchi isije ikaingia gizani. Yaani unaona kabisa jinsi CCM wanavyotafuta kila namna ya kutuibia tena kwa ajili ya kampeni zao chafu.

Hiyo gia kuwa 'tutaingia gizani' kwa upande wangu. Dr rashid alishatutishia hivyo wakati wa mjadala wa kununua Dowans, lakini Dowans haijanunuliwa mpaka leo na hilo giza hatulioni.

Pia, wao wameajiriwa kwa ajili ya kazi ya kuhakikisha kuwa hatuingiaa gizani bila kuwa ombaomba, walipaswa kuwa na mipango ya kuzuia majanga kama hayo yasitokaa.

Mwaka jana serikali ilikubali kuwadhamini wakapata mkopo wa mabilioni kutoka katika mabenki lengo kuu likiwa ni kuhakikisha kuwa wanakarabati mfumo wa uzalishaji na usambazaji umeme ili kuhakikisha upatikanaji wa nishati ya uhakika. Leo, kabla hawajatueleza ule mkopo umefanya nini hadi hivi sasa, wanarudi wakituonyesha kuwa tatizo ni kubwa zaidi. bado tuendelee kuwaamini hawa?

 

[Eric Cartman]

kwanini atu-ulizagi the obvious question katika hizi sera zao ni nani atakae faidika katika hiyo stimulus yao, na-ni makampuni gani yata qualify na what is the return for the government. isije stimulus package ikaenda kusaidia RA companies au companies ambazo zilikua zinafeli anyway because of poor products and bad management.

na-ni kampuni zipi hizo ambazo zime afektiwa sana kwani tuna export industrial goods outside kiasi cha kusema tumeathirika kutokana na kushuka kwa uchumi duniani, sera iwe ku-improve maisha ya mtanzania na sio kuiga kila kitu, ungesema wakulima peke labda ningeelewa kwani watakua wameathirikaa kwani wao huu export na wana depend on world price, makampuni kwa tanzania hayo ndio yamefaidika raw material zimekua rahisi vitu kama havi nunuliwi sio kwa sababu ya kushuka uchumi wa dunia bali watanzania hawana hela na hayo makampuni yalioathirika na uchumi embu muyataje basi na vitabu vyao tuvione vimeathirika vipi mmh Jamani.

mmmh sijui but it sounds like a fraud plan endorsed by the Professor

Mungu Ibariki Tanzania

 

[Mshiiri]

Recesssion haiwezi kutatuliwa with local efforts namna hiyo. This is really deepest poor thinking. Tanzania haijawa General Motors au Chrysler Motors kwamba ukiinjct funds itasaidia kuokoa kampuni kutokan a na madeni na kusaidia gharama za uendeshaji pamoja mtaji. Say in tourism indusrty; injection of the fund will not increase volume of tourists, which is now very minimal. Just to start with.

Ni njama za kutafuta fedha za ufisadi kwa kuwa BOT kuingia this time itakuwa ngumu. Hatutaki CCM bali kiongozi bora. Kama watatoka CCm basi sawa kama watakuwa CHADEMA ni vyema pia. They must put this in their mindset. Wizi tu kila kukicha wizi tu. Sasa tatizo ni wananchi; quality za kila kiongozi hivi sasa ziko wazi na pumba na mchele unajulikana. Nitajisikia kuuza uraia wangu pale bado tutapopiga kura kuwachagua hawa hawa majambazi. Tutakuwa sisi ni wajinga sana.

Let me see but mimi na myself wangu tutakuja kutokupigia kura kiongozi mchafu. Ardhi tunayo, siasa safi tunayo na tunakos tu viongozi bora Tanzania si MASKINI YA KUOMBA OMBA HUKO NA HUKO. Nachukia kabisa.

Unajua ingekuwa huyu jamaa yetu sijui kama anaujua uchumi vizuri, na kama alisoma labda application inampa taabu sana. Hii kwangu ingepewa jina "Kikwete to announce SUBSIDY for economy" ingeleta maana kiduuuchu!

 

[MPadmire]

Sawa Kuiga Stimulus au Bailout kama Marekani. Muiga tembo kunya ****** hupasuka!!!

Tumejiandaaje au ni kukurupuka hatimae pesa ziishie kwa makampuni mafisadi.

Jamani watuambie hizo pesa wamepata wapi?

Pia hiyo stimulus itainuaje uchumi.

Inatakiwa kama kuna pesa zipelekwe kwenye CRDB, NMB,NBC,TIB ili wajasiriamali wadogo wapate sio zikopeshwe kwa makampuni makubwa iwe kama EPA au Import Support Bil 216 ambazo hazilipiki.

Kwa nini NSSF,NPF inakopesha viongozi na watu wengine Lakini wafanyakazi wanaochangia Hawakopeshwi???

Wafanyakazi wanaochangia NSSF wanatakiwa wapewe nafasi ya kukopa hela zao.

Nafikiri Stimulus package ingepelekwa Kilimo, mbolea ya ruzuku ikaongezwa, mbegu, matrekta.

Hakuna dili hapo, ni wizi tu

 

[Moelex23]

Habari za ndani ni kuwa matajiri wenye makampuni makubwa especially ya pembejeo za kilimo, mashamba nk watakula bingo kubwa mno kutoka mabenki, maana Mkullo na mwenzake Ndulu wanawapa local Banks govt guarantee kukopesha makampuni.

Matajiri ni kiasi cha kwenda bank na kuchukua mabilioni kama wahindi walivyofanya kwa Kagera Sugar, bank wanajua serikali italipa kukiwa na default, na matajiri wanajua serikali italipa.

Transfer ya wealth kama EPA ndio mkuu atakayotangaza, na hizo hela zinatoka IMF, na Tanzania govt itakuwa inadaiwa na IMF, wakati matajiri wakitajirika zaidi, na mabank ambayo mengi ni private companies kupata interest kubwa with ABSOLUTE NO RISK, sababu TZ govt mwishoni ndio italipa.

Ingekuwa vizuri JK aulizwe, hivi zile hela za EPA zilizorudishwa, zimeleta faida gani huko kwenye kilimo ambayo inaweza kupimwa au?? Usanii kwa kwenda mbele bongo


ONLY in TZ

 

[Nyani Ngabu]

Bongo kuna stimulus package? Naaaaah...

 

[Rev. Kishoka]

Unfreakingbelievable!

How does Tanzania need bail out funds? Infact sasa hivi we should be dominating world markets and mark up our prices to compete with those who are yet to leverage the demand due to this fiasco!

Our main exports is food and raw materials, everywhere in developed world, they still need food and raw materials. Why don't we capture the market and become supreme supplier? Then we will boost our reserves and have enough cash flow for imports of necessary things.

We have significant low output on our exports and thus imbalance between imports and exports. I believe our exports are barely 20% of what we spend in imports!

What can we do different to boost our exports?

THese handouts may sound great but they are detremental to our economy and reinforce the dependency and kills any hopes of Kujitegemea!

 

[Mpita Njia]

What? Bailout to the bank?

I thought all the banks here makes big profits every year. OR may be they meant BANK M.

OK, Can the minister tell us in specifics where or what industries will the money be directed to? High cost of food? So the money will be used to bailout food vendors/suppliers, so who are those vendors/suppliers?

There are so many questions which need to be answered. My guess is, BRELA is going to get some bailout money too.

And the 2010 campaigns will get a bail out too