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New telecom Bill sends shockwaves to investors

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by BAK, Jan 30, 2010.

  1. BAK

    BAK JF-Expert Member

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    2010-01-30 10:51:00
    New telecom Bill sends shockwaves to investorsBy The Citizen Reporters

    Parliament yesterday passed a communication bill that makes it mandatory for mobile companies to be listed on the Dar es Salaam Stock Exchange (DSE).

    But the bill has riled the companies, calling it retrogressive.
    "It takes the country back to the era of nationalisation when individuals were forced to sell their companies or shares to the government," said the legal and regulatory affairs head of Vodacom Tanzania Limited, Mr Godwin Ngwilimi.

    But debating the bill before they passed it, many MPs criticised mobile phone companies for unfairly treating customers and denying the government billions of shillings in taxes.

    Presenting the Electronic and Postal Communication Bill 2009, the minister for Communication, Science and Technology, Prof Peter Msola, said it was meant to set up a legal framework for providing comprehensive regulations for electronic communication service providers.

    Once the bill becomes a law, telecommunication companies will be required to offer shares to the public. Subsequently, they will also be required to list with the DSE within three years after the Act come into force, but subject to requirements of the Capital Market and Securities Act.

    In disposing of local shares listed or registered with the DSE, the companies will have to sell their local shares to Tanzanians according to procedures prescribed in the regulations.

    It emerged yesterday those officials of the cellphone companies were in Dodoma attempting to lobby MPs to block the passing of the provisions seen as a big threat to their operations and profits.

    In separate interviews the stakeholders continued with their criticisms of the Electronic and Postal Communications bill 2009.

    Mr Ngwilimi told The Citizen that by forcing mobile companies to be list on DSE the government was going against the constitutional rights of the parties involved.

    According to him, the Tanzanian constitution gives individuals the right to own private property and dispose it willingly without being pressured.

    "There is currently no law, not even the Companies Act 2002 nor the Capital Markets and Securities Act No. 5 of 1994 as amended by Act No 4 of 1997 that forces companies or individuals to list shares in the DSE," he said.

    DSE board chairman Peter Machunde said the bourse was opposed to the idea of the government forcing mobile companies to list with the DSE.

    �Representatives from the DSE participated in the Parliamentary committee for Infrastructure when they were discussing the (Electronic and Postal Communications) bill right from the beginning. We advised the committee to make the listing of shares optional not mandatory, but they ignored our advice,� he told The Citizen yesterday.

    He echoed Mr Ngwilimi�s sentiments that forcing the listing of shares would bring back sentiments that the country was shifting to the era of expropriation of private properties.

    He said what the government needed to do was to provide incentives to attract firms to list with the DSE.

    �There are rules that companies have to adhere to before listing, such as getting profits in two successive years prior to listing, but we are afraid that the capital intensive mobile firms might not be able to meet this and other requirements,� he said.

    But Nkasi MP Ponsiano Nyami (CCM) alleged that some MPs had been corrupted to block the law that makes it compulsory for the companies to list with the DSE.

    "I cannot hesitate to say that they (mobile phone firms) have been lobbying with some MPs and even corrupting them with money to achieve their goal; that they are not forced to list with the DSE," he told the House.

    A CCM insider confided to The Citizen that the issue had cropped up during a meeting of all CCM parliamentarians on Thursday night.

    He said some MPs vigorously fought to block the bill before they were overpowered by those in its favour.

    Mr Nyami yesterday said forcing the companies to join the DSE would mean that the government would be able to assess their revenues and collect taxes.

    "They are getting billions of shillings for which they were not paying taxes and that is why they fear joining the DSE. Nearly every Tanzanian owns a mobile phone. The business offers them super profits and joining the market will mean that their profits are known and tax is collected accordingly," said the MP.

    Mbozi East MP Godfrey Zambi (CCM) questioned the reason for the companies shunning to list with the DSE, while there was evidence that the same firms are listed with stock exchanges in foreign countries.

    "These companies fear that listing with the DSE means that there will be proper scrutiny of their revenues," he told the House.

    He wondered that the companies feared to join the DSE while they enjoy a waiver of corporation tax from 25 per cent to 30 per cent. Some mobile companies operating in Tanzania are listed on foreign stock exchanges.

    Vodacom is enlisted on the JSE Security Exchange of South Africa, Zain (MTC) on the Kuwait Stock Exchange and Tigo (MIC) on a US stock market.

    Same East MP Anne Kilango Malecela (CCM) said the enactment of the Communication Act would have significant benefits to the nation because it would curb capital flight.

    She said there were foreign companies that had enlisted with the DSE. She named Kenya Airways, East African Breweries Limited, Jubilee Holding Limited and Kenya Commercial Bank. She wondered why not for Tanzanian companies.

    "The listing of these companies on DSE will give opportunities for Tanzanians to have shares in them...and this is very important for our economy," she said.

    But the opposition spokesman for the Parliamentary Committee on Infrastructure, Mr Said Arfi (Chadema, said the provision was discriminatory for it only touches investors in the communications sector.

    "Investors are in many sectors, including those in the mining sector. Why shouldn't they also be targeted to join the markets?"he queried.

    Mwibara MP Charles Kajege (CCM) said it would be unfair to make it mandatory for the companies to join the market for this depends on the volume of their business.

    A former cabinet minister, Dr Juma Ngasongwa, said the law forcing mobile companies to list with the DSE was long overdue.

    "Compelling the companies to enlist with the DSE is crucial and there should not be a choice. The companies are earning a lot of money; so the taxes must go to the government and the people be empowered through buying of shares," he said.

    In his summation, Prof Msolla said mobile phone companies were posting a gross profit of Sh1.4 trillion annually.

    Reported by Bernard James, Dodoma and Damas Kanyabwoya, Dar
     
  2. b

    bnhai JF-Expert Member

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    Binafsi nauona huu ni upuuzi mwingine. Ni kweli kwamba hizi kampuni za simu zinapata faida kubwa, je hii ndiyo njia muafaka wa kudhibiti kuhamisha capital.
    Madhara ya mswada huu ni kutishia wawekezaji. Leo mwekezaji anakuja Tanzania anawekeza kesho mnapitisha mswada mnalazimisha listing. Nani atakuja. Ukweli kabisa sekta binafsi Tanzania hazipewi nafasi ya kutosha. Na ninaamini kama kutakuwa hakuna mazingira mazuri kwenye sekta binafsi basi tusitegemee kukua kwa uchumi. Dunia kote sekta binafsi zinaangaliwa vyema.
    Km serikali iliona kuna haja ya hawa jamaa kulisting binafsi nadhani walitakiwa watengeze mazingira. Soko letu la fedha ndio hilo tuliokuwa nalo, ukipitia ufanisi wake kwa miaka zaidi ya 15 sasa utagundua hakuna kinachoendelea. Jamani kulist si kulazimisha tuandae mazingira zitakuja kampuni nyingi kulist share zao.
     
  3. BAK

    BAK JF-Expert Member

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    Thubutu ukainvest kwenye nchi za magharibi halafu ukatae kuweka shares zako kwenye masoko ya hisa za nchi hizo ili wale wanaotaka kununua hisa hizo katika nchi hizo waweze kufanya hivyo kirahisi.

    Kama wanataka kuinvest Tanzania basi ni lazima Watanzania wanaotaka kununua shares zao waweze kununua shares hizo kirahisi na hili litawezekana tu kama shares hizo zinapatika katika Dar Stock Exchange na si vinginevyo.
     
  4. K

    Kimweri JF-Expert Member

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    Best Decision from Tanzanian parliament in a long time!!wasiishie kwa Telcos tu!! waendelee kwa Mining companies,na any company that has investment over $100M
     
  5. b

    bnhai JF-Expert Member

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    Hiyo inaweza kuwa observation yako ya upande mmoja. Binafsi sikatai wao kulist lakini mazingira yenyewe yako wapi. Naomba uipitie hoja yangu kwa makini.
    Pia kujilinganisha na West hatuna ubavu huo. Wao wana risk levels ndogo ranging from political, currency etc. Sasa huwezi kumlazimisha mtu kuwekeza kwenye soko lenye sera zisizoeleweka. Wataondoka halafu tuone kama hayo mapato yatakuwepo. Inaonekana wazi kabisa maoni yao hayakuzingatiwa.
    Ukweli sekta binafsi Tanzania haipewi nafasi inayostahili.
     
  6. BAK

    BAK JF-Expert Member

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    Thank you Mkuu, next should be mining companies, their shares too should be available on DSE as soon as possible.
     
  7. Kiranga

    Kiranga JF-Expert Member

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    Hivi hii ndiyo free trade?
     
  8. b

    bnhai JF-Expert Member

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    BAK hata tukiachana na impact kutokwa kwa foreign investors, hivi hao jamaa wakifloat share ni watanzania wangapi watanunua. Huu mfumo wa kucopy hauna maana. Uwezo hatuna na pia investors protection ni poor. We wait and see kwenye index next time tutakuwa wapi.
     
  9. BAK

    BAK JF-Expert Member

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    Kidogo kidogo Mkuu hata Rome haikujengwa kwa siku moja lakini huu uamuzi mimi nimeufurahia sana. Hata katika nchi za magharibi siyo Wananchi wote wa nchi hizo wana uwezo wa kununua hisa katika masoko ya hisa katika nchi hizo. Watanzania wanaweza kufahamishwa ili kufaidika basi wanunue hisa kupitia vyama vyao vya kuweka na kukopa "SACCOS" ambavyo vingi vinafanya vizuri sana na vina uwezo mkubwa kifedha badala ya Mtanzania mmoja mmoja hasa kwa wale wenye vipato vya chini. Na faida inayopatikana katika ununuzi na uuzaji wa hisa hizo basi inaweza kugawiwa kwa wanachama wa SACCOS na hivyo kuwaneemesha Watanzania walio wengi.

    Investors protection ni "very poor" hata katika nchi za magharibi. Kama ulifuatilia lile sakata la Eron miaka michache iliyopita na hili la karibuni la Madoff utaelewa what I am talking about, pamoja na hayo hatuna haja ya kusubiri hadi kila kitu kiwe perfect ili Watanzania wenye uwezo waruhusiwe kununua hisa katika mashirika makubwa duniani ambayo yamewekeza Tanzania na yanachuma faida kubwa sana na huku Watanzania wakiwa hawanufaiki kama wanavyostahili.
     
  10. K

    Kimweri JF-Expert Member

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    ku-list shares DSE that is just one step,they should take even more strong steps to secure outflow of investment,Mfano nchi nyingi za ASIA,ili ufanye investment locally unatakiwa utafute shareholder(s) ambaye ni mzawa,na yeye/wao awe na 51% of the shares.then that is when you can invest.ukikosa huyu investor mwenye uwezo wa kudeliver 51% their government(s) will be more than happy to give you a long list of companies you can choose from(80% of them are owned by their government organs through proxy ownerships and holdings)

    Kama hutaki then your company will be treated as a wholly owned foregn company,and TRUST ME,KODI NA USUMBUFU WA KUFANYA BIASHARA JUST TO MAINTAIN 100% wholly foreign company status utajuta kuchukua uamuzi huo!

    always the cheapest,most efficient way to go is the shareholding one..,na hilo halijazuia makampuni ya nje kuinvest in ASIA.na ndio sababu the higher the investment the better the economies in South east ASIA.wakati africa ni yale yale tu.

    Kama kampuni imeona Potential in our country shareholding will not stop it to do business,moreover ita-eliminate dad&mum companies posing as investors..,with such a law i do not expect a Chinese machinga!it is going to be better for them to just stay in their country,right now we have a safer,profitable environment for Chinese&other foreigners than they could ever dream of in their own countries..,i find this EXTREMELY RIDICULOUS.
     
  11. b

    bnhai JF-Expert Member

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    Tuweni wakweli nadhani hasa mswada huo unawalenga institutional investors kama Banks na pension funds. Kama issue za kufloat shares makampuni mengi ya Tanzania yanahitaji capital ila masharti ni magumu saana ya kulist kampuni zao. Tungeondoa ukiritimba na kuufanya mfumo wa soko letu uendane na mazingira yetu na si kukopi kwa nchi za magharibi.
    Mifani yako ya Enron na Madoff haionyeshi poor inevstor protection. Itazame marekani na idadi ya makampuni kule, hiyo haitoshi kusema protection ni weak. labda nikukumbushe Marekani shareholders ni strong kuliko nchi nyingine yoyote.
    Na pia ukizungumzi investor protection hii inaangalia sheria za nchi husika zinabadilikabadilika kiasi gani! Maana kwa nchi zinazoendelea akiingia rais mwingine naye anakuja na miswada yake, pia issue za kesi za kibiashara zinachukua muda gani na effectiveness ya judicial system.
    Kwahiyo Enron it was the issue of other supervisory body ila sheria zilikuwepo. Hebu itazame Tanzania inavikampuni vingapi na juzi NICCO ikachemsha.
    Tuboreshe mazingira yetu maendeleo watalist wenyewe tu. Hivi Kenya Airways tuliwalazimisha? Au mahitaji na wakati ndio uliowalazimu?
    Nchi km yakwetu assymetrical information ni common nani anaweza kurisk capital yake wakati kuna mijitu can play with insider information.
    Kuhusu Asia , unayaona maendeleo yao ya sasa ni matokeo ya liberalisation through relaxation of investment policy.
    We wait and see what gonna happen!
     
  12. b

    bnhai JF-Expert Member

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    Binafsi nadhani tunajilinganisha saana na tunapiga kelele, lakini hebu tuitazame nchi yetu kwenye kila aspect kuanzia GDP, GNI etc.
    Nchi za Asia km Thailand na Singapore nyingi from 1974 waliamua kuchukua hatua. Hii kung'ang'ania local na foreign wawe treated differently ni tatizo kubwa na nyingi katika emerging na developing countries zimeondoa upuuzi huu. Km mnakumbuka vyema we had a problem of double taxation, atleast sasa hivi hali shwari. Huna mtaji unalazimisha partnership. Waje wainvest watu wapate ajira, ujuzi nk. Tuanzia hapo na kuendelea.
     
  13. BAK

    BAK JF-Expert Member

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    Waje wainvest watu wapate ajira na ujuzi mara ngapi tena? Haya makampuni katika nchi za magharibi wala hayasubiri muda mrefu kiasi hicho kabla ya hisa zao kuwa listed katika masoko ya hisa katika nchi hizo kwanini yaone ugumu wa kulist hisa zao katika soko la hisa la DSE? au wanaona Watanzania hawastahili kuown hizo hisa zao? Wainvest Tanzania na kuvuna faida kubwa sana lakini Watanzania hao hao ambao wanatumia huduma za makampuni hayo na hivyo kuzipatia faida kubwa sana wazuiliwe na kampuni hizo kununua shares zao kitu ambacho mimi sielewi kabisa mantiki yake.

    Hiki ni kitu kizuri kabisa kitawawezesha Watanzania wenye uwezo kununua hisa hizo na hatimaye kufaidika pindi zitakapoappreciate in value. Hata wale ambao hawana uwezo wa kununua hisa hizo mmoja mmoja basi wanaweza kufanya hivyo kupitia katika makundi kama ya vyama vya kuweka na kukopa. Nashindwa kabisa kukuelewa unachopinga hapa.
     
  14. b

    bnhai JF-Expert Member

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    Ninachosisitiza listing si lazima. Mazingira yakiandaliwa kampuni zitalist. Nimetoa mfano wa Kenya Airways kwani walilazimishwa? Makampuni yanahitaji saana mtaji lakini soko lenyewe liko vipi? Ukiingia kwenye trading kwa nchi zetu ni utajiri wa watu wachache wengine wanakimbilia kununua shares bila hata kujua mechanisms ya Trading. Hoja kuu ni kuwa listing ya kulazimishana katika mazingira ya tanzania ni kufukuza wawekezaji.
    Soon wataenda kwenye madini na makampuni ya ndege yanayotua nchini. Hapo patakuwa patamu. Maana ni kituko.
     
  15. Semilong

    Semilong JF-Expert Member

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    nakubaliana ha wabunge, safaricom inamilikiwa na voadafone na wamelist NSE bila matatizo yeyote
    its a shame kuona wabunge wetu wanajua makampuni haya makubwa yanaiba kodi lakini wanakaa kimya.
     
  16. Masikini_Jeuri

    Masikini_Jeuri JF-Expert Member

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    Mazingira ni maandalizi binafis naona kuwa hili lilitakiwa kufanyika tangu hawa jamaa tulipowakaribisha; mfanow enzetu hapo jirani walivyofanya kwa safaricom! nasikitikia inabidi tusubiri miaka 3 mingine lakini ningekuwa ndo natoa amri ninge fast track hii kitu! Jmaa are reaping billions here ni kiasi gani wanarudisha kwetu; eti wanatukejeli na vi bahati nasibu uchwara!

    Kudos Bunge la Tanzania pamoja na kuchelewa lakini mmeandika historia; utaratibu huu uwekwe na kwenye secta nyingine pia kwa jinsi itakavyofaa!
     
  17. K

    Kimweri JF-Expert Member

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    Sasa ndugu wewe unaona sawa mazingaombwe yanayofanywa na VODACOM FOUNDATION?kuchukua fedha za wananchi ili kusaidia maafa!!ni sawa na kusikia gates foundation inaomba fedha za wagonjwa wa ukimwi kutoa vaccine!!

    makampuni mengi yanayofanya biashara TZ yamejisahau,TZ market ipo na potential is huge!we have seen the number of mobile subscribers growing from a few thousand to millions in just 10 years.

    Local na foreign investors LAZIMA wawe treated differently.i have had my fare share of business encounters in many ASIAN countries and all i can say is that,sometimes you wish you were their CITIZEN!

    Tunachohitaji Tanzania ni kuboresha mazingira ya uwekezaji,sio kuwapigia magoti wawekezaji na kuwapa zero pressure eti tu kwa sababu wataondoka.who in his right mind will leave a country where you can charge $0.3 for a phone call?!nada.

    Au ni sahihi haya makampuni kurudisha sehemu ya mapato yao kwa jamii kwa kutujengea vyoo..,kutoa msaada a madawati,kompyuta..,kutoa vyandarua...,aaaaaaaaaaaaaagh..,this is pathetic.

    i could care less what vodacom et al "give" to the community.as long as they have their shares listed in our local markets.NOW THIS IS GIVING BACK...,that is why it is called share-holding.
     
  18. b

    bnhai JF-Expert Member

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    Hivi kumbukumbu zinasema safaricom walilazimishwa na miswada au mahitaji ya mtaji?
     
  19. b

    bnhai JF-Expert Member

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    Nimeipenda hiyo na juhudi zimekuwa zikifanyika ila ninamashaka km tunaenda mbele au kurudi nyuma. Maana leo tunapitishwa miswada, wakati tunashindwa kuwahakikishia wawekezaji umeme wa uhakika na pia gharama kubwa za kuendeshwa makampuni zikiwa juu na millolongo mirefu kwenye kufanya investment.
    Hivi swali rahisi, ni kweli kwamba kampuni za nchini zimejitosheleza kwa mtaji kiasi cha kulazimisha kampuni za kigeni?
    Hiyo ya foreign na local investors, ninakuahidi kama utapenda nitakutafutia articles inavyoonesha kwanini nchi nyingine zime-emerge kutoka developing countries.
    Kuiba kodi hilo ni suala la mifumo yetu mibovu na si suala la listing. Itafika wakati hata kampuni za locals nazo zitaambiwa kwa kuwa unapata faida kubwa (eg Bakhressa) basi lazima ulist. Hivi unalist ili kutimiza matakwa ya sheria au unalist kwa sababu ya mahitaji ya kimtaji na awareness?
    Kwahiyo jamaa hata km hawahitaji mtaji lazima walist tena kwenye nchi ambao currency in fluctuate vibaya mno, ambapo monetary na fiscal policy zipo hovyo.
    Ukweli sidhani kama tulikuwa tunahitaji kulazimisha kiasi hicho.
     
  20. K

    Kimweri JF-Expert Member

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    Serikali yetu inaboronga kwenye mambo mengi,mfano uhakikishaji wa nishati nchini kw awawekezaji wa ndani na nje,uboreshaji wa miundombinu n.k.LAKINI hili la listing ni uamuzi mzuri sana..,

    Nchi nyingi za ASIA,ambazo ni asilimia kubwa ya nchi zilizotoka kwenye umasikini kwenda kwenye afadhali in the past 30 years ni kati ya zile zilizokuwa na UDHIBITI mkubwa sana kwa foreign incestment at the begining...,

    ngoja niikupe mfano..,ili yahoo iweze kuoperate china imeibidi iingie partnership na kampuni local,kwa 51%-49%(as all foreign companies in china have to).sio kwamba yahoo isingeweza kuopertae bila local company.nop it is because it is required by LAW.same applies to all famous companies you see in investing in CHINA.did they leave?no,why?market,demand and other factorrs..,ofcourse wapo walioondoka,wale walioshindwa.walioweza wanafanya biashara..,they are not very happy but they sure do get profits.

    we don;t need to mae investors HAPPY all the TIME.We have done enough of that.
     
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