Last Week Lessons from Dubai and Geneva... are we learning anything?

[Rev. Kishoka]

Dubai economic crisis due to heavy investment from external finance to elephant projects.

Riots in Geneva protesting against capitalism, WTO and free market economy (aka Utandawazi, Uwekezaji, Ubepari).

What have we Tanzanian learn from these events as we are hardly working on becoming self sufficient?

 

[Masanja]

Dubai economic crisis due to heavy investment from external finance to elephant projects.

Riots in Geneva protesting against capitalism, WTO and free market economy (aka Utandawazi, Uwekezaji, Ubepari).

What have we Tanzanian learn from these events as we are hardly working on becoming self sufficient?

Mchungaji,

you want us to dance faster than the music!

Tanzania na nchi nyingine za dunia ya tatu..inabidi tupange priorities zetu kisawa sawa...hatuna uchumi huo wa kuwa exposed kwenye financial crisis za Dubai.

The truth is, leo tunasema kwamba financial crisis imetuaffect kwa sababu sana sana tutakosa misaada! Not otherwise.

Hivi kweli nchi ambayo bado watoto hawana uhakika wa kwenda shule, wale wanaokwenda hawana madawati wanakaa chini..tunakuwa na audacity ya kuongelea financial crisis ya Dubai na kwingineko?

Perhaps I am missing something some where..

Yours sincerely,

Masanja,

 

[Rev. Kishoka]

Mchungaji,

you want us to dance faster than the music!

Tanzania na nchi nyingine za dunia ya tatu..inabidi tupange priorities zetu kisawa sawa...hatuna uchumi huo wa kuwa exposed kwenye financial crisis za Dubai.

The truth is, leo tunasema kwamba financial crisis imetuaffect kwa sababu sana sana tutakosa misaada! Not otherwise.

Hivi kweli nchi ambayo bado watoto hawana uhakika wa kwenda shule, wale wanaokwenda hawana madawati wanakaa chini..tunakuwa na audacity ya kuongelea financial crisis ya Dubai na kwingineko?

Perhaps I am missing something some where..

Yours sincerely,

Masanja,

We are allowing each Tom, Dick and Harry to come and invest. we do not have home grown economy that is strong.

Mfano, SEKAB walikuja na kupewa ardhi wafanye BioFuel, lakini bei ya mafuta imeshuka, uchumi umedoda, sasa SEKAB wamechomoa wanarudi kwao!

Same thing will happen to Barrick na wengine hata Kilimo kwanza, kujenga uchumi kwa kutegemea wengine watutengezee mazingira hayo.

That is what Dubai did on about 60% of its economic boom, it was due to foreign investment mpaka watu kama Halliburton wakahamisha makao makuu kutoka Houston Texas na kuhamia Dubai!

 

[Game Theory]

Mchungaji,

you want us to dance faster than the music!

Tanzania na nchi nyingine za dunia ya tatu..inabidi tupange priorities zetu kisawa sawa...hatuna uchumi huo wa kuwa exposed kwenye financial crisis za Dubai.

The truth is, leo tunasema kwamba financial crisis imetuaffect kwa sababu sana sana tutakosa misaada! Not otherwise.

Hivi kweli nchi ambayo bado watoto hawana uhakika wa kwenda shule, wale wanaokwenda hawana madawati wanakaa chini..tunakuwa na audacity ya kuongelea financial crisis ya Dubai na kwingineko?

Perhaps I am missing something some where..

Yours sincerely,

Masanja,

Pigeon Stuffer 1. Crapitalism 0.


What went wrong the most? I'd say it was the attempt to build a modern city based on a medieval system. Also, thinking that Europeans would be prepared to fly to the Gulf instead of Spain in large numbers.

 

[Ndahani]

Kwa vichwa hivi vinavvyojua kazi ni kuamka asubuhi kwenda ofisini, kufanya lile litakalojitokeza atakapokuwa ofisini na kisha kurudi nyumbani hakuna lolote tunaweza kujifunza. Tunafanya mambo kwa mazoea na kulindana sana. I dont believe haya mambo ya wawekezaji ndio suluhu ya kujenga uchumi wetu.Lakini ndio hivyo bwana! Up there our leaders think that is the only way forward. Wanazunguka dunia yote kuwaita wale wanaowaita bila hata kujari ni kina nani! Kuna siku tunakuja kuchekwa baada ya kugundua tumejaza kina Dick Tom and Harry na comedy zao

 

[Bobby]

Kwa vichwa hivi vinavvyojua kazi ni kuamka asubuhi kwenda ofisini, kufanya lile litakalojitokeza atakapokuwa ofisini na kisha kurudi nyumbani hakuna lolote tunaweza kujifunza. Tunafanya mambo kwa mazoea na kulindana sana. I dont believe haya mambo ya wawekezaji ndio suluhu ya kujenga uchumi wetu.Lakini ndio hivyo bwana! Up there our leaders think that is the only way forward. Wanazunguka dunia yote kuwaita wale wanaowaita bila hata kujari ni kina nani! Kuna siku tunakuja kuchekwa baada ya kugundua tumejaza kina Dick Tom and Harry na comedy zao

This will definitely happen na hatuko mbali sana na hili anguko jamani inatia uchungu tena sana. Wewe kweli jamani mtu anafunga safari mpaka Jamaica na kuwaomba wawekezaji waje wawekeze Tanzania kweli?!!? Of all the countries jamani hata Jamaica? waje wafanye nini au walime ndizi? Au ndio waje wajenge bembea ili kusiwe na haja ya kulifuata mpaka Jamaica??! Siku si nyingi tutasikia wameenda kuwafuata wawekezaji Bangladesh na Malawi. Tanzania nakupenda lakini pole yako kubwa sana sasa.

 

[Game Theory]

We are allowing each Tom, Dick and Harry to come and invest. we do not have home grown economy that is strong.

Mfano, SEKAB walikuja na kupewa ardhi wafanye BioFuel, lakini bei ya mafuta imeshuka, uchumi umedoda, sasa SEKAB wamechomoa wanarudi kwao!

Same thing will happen to Barrick na wengine hata Kilimo kwanza, kujenga uchumi kwa kutegemea wengine watutengezee mazingira hayo.

That is what Dubai did on about 60% of its economic boom, it was due to foreign investment mpaka watu kama Halliburton wakahamisha makao makuu kutoka Houston Texas na kuhamia Dubai!

2 issues:

1.SEKAB
Inaelekea uko nyuma kwenye news...

nimegoogle kuhusu huo mradi wa SEKAB nimepata hii:

http://www.wazalendonline.com/index...ugar-production&catid=1:latest-news&Itemid=50


by the look of things hii ni habari ya siku 2 zilizopita


2.DUBAI
What is never reported is that wealthy local residents never, never, never keep their own money in Dubai banks. The reasons are obvious - there are no assets to support the vast borrowings that have accumulated. i would not keep anything more than a tenner in a Dubai bank for this reason. If the situation is bad now it will only get far worse in 2010 when more loans fall due for repayment...who knows maybe inaweza ikawa ni opportunity kwetu sie wengine ambao tunataka kuoa wanawakew wa KiEmarati

 

[Rev. Kishoka]

GT,

I am not out of touch brother! SEKAB walikuja kulima miwa ya mafuta, sasa wanageuka wanasema wanalima miwa ya Sukari, wapi na wapi?

Bio-fuel production takes root as SEKAB readies for
sugar production

LEVINA KATO, 28th November 2009 Sunday News

THE envisaged multi-billion ethanol production investments in Bagamoyo and Rufiji districts will now be integrated with sugar production, the 'Sunday News' can confirm.

Ethanol fuel is a gasoline alternative that is manufactured from the conversion of carbon based feed stocks such as sugar cane, sugar beets, switch grass, corn, and barley. It is an alternative from petroleum based fuels and it is said to be better for the environment.

After striving for almost two years, in bid to develop the agro-energy projects in the country amid strong criticism by local and international experts, Sekab BioEnergy Tanzania Limited intends to set up a flex factory to offset local sugar shortage.

The company's Managing Director, Mr Anders Bergfors, said during an exclusive interview in Dar es Salaam on Friday that the new component of their project would see an addition of some 56,000 tonnes supplemented to total country's sugar estates capacity.

There are four main sugar companies in Tanzania: Mtibwa, Kagera, Kilombero and the Moshi-based TPC. The four have a total production capacity of 300,000 tonnes annually. The country also has smaller factories like Manyara, which produces 2,000 tonnes annually.

However, the country is facing a sugar deficit of about 50,000 tonnes, according to statistics from the Sugar Board of Tanzania.

"Our planned Greenfield sugar production is in response to the government's request to Sekab to offset sugar deficit," Mr Bergfors said.

Apart from sugar shortage, the company's chief believes that their new project plan would smoothen the change from ethanol and sugar production, based on market price trends.

"Agro energy is still new in Africa and Tanzania in particular. We intend to mitigate some commercial risks which might arise as a result of price fluctuation. Flex factories have worked well in Brazil," he said.

The investment in sugar production, he said, would run parallel with ethanol production which has been delayed for a year due to financial constraints.

"The aim is to start work in June next year. We are looking for partners in developing the company as well as the project," he said.

Negotiations on partnership are at different levels and a Mauritius-based company, has been identified. Mr Bergfors however, declined to mention the name of the company.

Due to pending negotiations on partnership and financing, he said the company expects to deliver its first ethanol and sugar products in 2012.

Mr Bergfors also revealed that efforts to borrow from local banks in order to finance the company's operations in Tanzania had hit a snag due to high interest rates.

He said the company was working out possibilities to borrow from International institutions such as the International Finance Corporation (IFC).

Sekab BioEnergy project plans suffered a big blow following the withdrawal of its majority owners, namely the three municipalities in Northern Sweden with 70 per cent share holding, and the global financial crunch.

"We are glad, that minority shareholders -- Eco Development in Europe have interest and will take forward investment ventures in Africa from SEKAB International," the MD said.

In July this year, Sekab applied to the Swedish International Development Agency (SIDA), for a Credit Enhancement Guarantee to secure funds from local banks.

However, the application bounced due to what the Swedish Embassy's First Secretary, who is also the Programme officer for Energy, Mr Goran Haag described as failure to meet requirements in the regulations for the SIDA credit instrument.

"The Project development costs are not eligible and procurement of services and goods shall be performed in international competition," Mr Haag had revealed, explaining why his office could not award the Credit Enhancement Guarantee to SEKAB.

He said SIDA was only allowed to issue a credit guarantee to a project that is developed and ready for implementation and where services and equipment will be procured in international competition.

"What SEKAB applied for was a credit guarantee that would be used to facilitate commercial loans for financing of continued project development activities," he said.

The Government of Sweden had cautioned and recommended that renewable fuels like ethanol and bio diesel be produced in a sustainable way by professional and responsible companies like SEKAB international.

Meanwhile, the Government of Tanzania has expressed full commitment to support Sekab Bio Energy Tanzania Limited investments in Bagamoyo and Rufiji districts.

The Commissioner for Energy and Petroleum Affairs, Mr Bashir Mrindoko, said the Government is interested in investing in Sekab projects because of bio fuels potentials to the country.

Sekab is a consortium of BioAlcohol Fuel Foundation (BAFF) of Sweden, Svensk EthanolKemi AB (SEKAB) of Sweden and Community Finance Company Ltd (CFC) of Tanzania.

 

[Teamo]

mnajifunzia DUBAI?!
nah!the hell place is so far....!mnaweza kugrasp kitu fulani hata hapa rwanda tu!the guys are running economically bwana!

 

[Rev. Kishoka]

mnajifunzia DUBAI?!
nah!the hell place is so far....!mnaweza kugrasp kitu fulani hata hapa rwanda tu!the guys are running economically bwana!

Geoff,

Je umesoma na kuelewa ,maana ya kusema somo kutoka Dubai?

 

[Nzokanhyilu]

Like GT points out, Dubai had no assets to support its extreme investments. Dubai produces less than 2-3% (= 80,000 barrels of oil/day) of UAE's daily production of oil, that is nothing. They can be bailed out by other emirates such as AbuDhabi and the problem will be gone. The problem is; other emirates wont pump money into a dark hole! Dubai is in deep doo doo!!

We cant compare ourselves to them, but the lesson is, we shouldnt jump into Elephant projects we can not support.

On a smaller scale, things like creating an artificial property bubble in Tanzania wont help. But then again, I think most people in TZ dont rely on mortgages to finance their property projects.

I think what will screw us the most is the reliance of importing finished foreign products and the lack of developing our own industries.

Reverend, kwani what drives our economy? Maana mimi huwa naona nchi kama yetu tunakwenda kwenda tu. Maybe that might help answer ur question.

 

[Zakumi]

Dubai will be fine, read my lips. Challenges associated with business cycles ni lazima ziwepo, lakini uchumi mzuri ni lazima uwe resilient na challenges hizo.

 

[Rev. Kishoka]

Nzoka,

The comparison with Dubai is not about real estate, but the influx of Foreign investment even though the likelyhood of Investors to stay in Dubai in comparison to Tanzania is that Dubai is more lucrative and it is modernised.

Tanzania is still on stoneage and there is no internal push to revolutionize local ownership or production wwhich may result to greater prospects.

We lack capital, we do not have plans and we are exremey dependent.

Even though Dubai is strong, but the fear out of investors on state of Dubai last week, it is not something to overlook if push come to shove in Tanzania.

Unfortunatelly, Tanzania has nothing to offer once all the elephants, lions, gold and uranium has vanished. we are bow trying to force and create any means and ways for anyone with money to come and "Invest" in Tanzania, while the environment is clogged up with bureaucracy, corruption and primitive infrustructure in addition to high nymber of unskilled labor.

So the lesson from Dubai is this, if investors confidence sways for a second, where will Dar Es Salaam have a Godfather like Abu Dhabi to the rescue?

 

[Fundi Mchundo]

Even in real estate. Tuko busy kuigeza Kigamboni another Dubai! Tunawaondoa wenyeji ili tuwajengee wageni maghorofa!

Amandla......

 

[Hashim Mohamed]

Hili ndugu wajumbe si lakulibeza, athali ipo hata kama haionekani kwa macho ya kawaida