Week 13 of 2025: 24th to 28th March 2025

24 March 2025by finandlaw-admin

24th March 2025
Source: The Citizen
CENTRAL BANK CLARIFIES TANZANIAN SHILLING PERFORMANCE

The Bank of Tanzania (BoT) has responded to recent reports regarding the performance of the Tanzanian Shilling, clarifying that while the currency depreciated by 3.6% over the past 12 months, it experienced a sharp appreciation of 9.51% between July and December 2024. This made it the best-performing currency globally during that period. BoT Governor, Mr. Emmanuel Tutuba, attributed the recent depreciation since January 2025 to the seasonal nature of foreign exchange flows and the country’s exchange rate policy, which allows flexibility based on market demand and supply with minimal central bank intervention. He stated that despite currency fluctuations, Tanzania’s macroeconomic indicators remain strong.

The economy grew by 5.4% in 2024, positioning it among the fastest-growing economies in Africa. He reiterated that under this policy regime, the exchange rate continues to be determined by the demand and supply of foreign exchange in the market, with BoT intervening only minimally. Tanzania’s macroeconomic indicators show stable prices, a narrowing current account deficit, and a resilient financial sector that supports the stability of the Shilling in the medium to long term. Inflation remains low, standing at 3.1% in February 2025, down from 4.6% in 2022.

Source: The Citizen
TANZANIA’S SGR FREIGHT TRAIN TO BEGIN OPERATIONS BY JUNE
Tanzania’s high-speed freight train is expected to begin operations through the standard gauge railway (SGR) by June 2025, following the completion of trial runs and approval from the Land Transport Regulatory Authority (LATRA). The Tanzania Railways Corporation (TRC) said at the weekend that it is fixing some issues with other government agencies before rolling out the train. Tanzania is building in phases some 2,561 kilometers of the SGR line, which will connect the Indian Ocean port of Dar es Salaam to Mwanza on Lake Victoria and Kigoma on Lake Tanganyika. The modern railway will eventually spur to Burundi, the Democratic Republic of Congo (DRC), and Rwanda. The three countries largely use the Tanzanian port to import and export goods. The section between Dar es Salaam and Dodoma is completed, and services between the cities commenced operations last June.

Source: The Citizen
GLOBAL METAL GIANTS EYE DAR PORT AS KEY AFRICA TRADE HUB
Three of the world’s leading metal giants have expressed interest in using the Dar es Salaam Port as a hub for African trade, citing improved efficiency and productivity at Tanzania’s main sea gateway. The companies China Metal Storage and Transport Company (CMST), Mercuria, and their jointly owned subsidiary, Henry Bath & Son Ltd, visited Tanzania at the invitation of DP World and the Tanzania Ports Authority (TPA) to explore potential partnerships. The TPA’s Acting Deputy Director-General, Dr. Baraka Mdima, detailed the delegation’s visit to Dar es Salaam and highlighted the port’s potential. The DP World Tanzania’s Chief Executive Officer, Mr. Martin Jacob, said the visit underscores Dar es Salaam Port’s growing significance in global trade. He noted that the companies’ interest would benefit the port and its stakeholders by enhancing the logistics chain not only within Tanzania but also for landlocked countries and consumers across the region.

Source: The Citizen
INDUSTRIAL OUTPUT: THE ZONE GIVING DAR A RUN FOR ITS MONEY
Southeastern Tanzania has become a surprising powerhouse in the country’s manufacturing sector, showing remarkable growth in 2024. The Southeastern Zone comprises the Coast, Lindi, Mtwara, and Ruvuma regions. According to the latest Consolidated Zonal Economic Performance Report for the quarter ended September 2024, manufacturing output in the zone surged by 30.8%, reaching TZS 930.9 billion and representing 19.4% of Tanzania’s total manufacturing output. This marks a significant shift in the country’s industrial landscape, as the Southeastern Zone’s rise contrasts sharply with the decline of Dar es Salaam’s manufacturing sector. While Dar es Salaam, traditionally Tanzania’s industrial hub, experienced a drastic 37.9% drop in manufacturing output, falling from TZS 3.6 trillion in September 2023 to TZS 2.2 trillion in September 2024, Southeastern saw explosive growth.

The zone’s success can be attributed to a combination of factors, with natural resources like the gas reserves in Mtwara playing a pivotal role. Energy-intensive industries, including cement manufacturing and agro-processing, are benefiting from the region’s rich energy supply, lowering production costs compared to other regions facing energy shortages. Infrastructure development has also been a major factor in the growth of Southeastern. The expansion of Mtwara Port and improvements in road networks have made the transportation of goods more efficient and affordable, helping manufacturers in the region reduce operating costs.

Source: The Citizen
TANZANIA FREEZES PARK ENTRY FEE INCREASES FOR THE NEXT 12 MONTHS
The Tanzanian government has assured both tourists and investors in the tourism sector that there will be no increase in park entry fees for the next 12 months, in a move aimed at stabilizing the sector and providing ample time for preparation for any future adjustments. Speaking during a meeting with key tourism stakeholders in the United Kingdom (UK), the Assistant Conservation Commissioner of the Tanzania National Parks (TANAPA), Ms. Jully Lyimo, confirmed the decision. While discussions surrounding potential park fee adjustments for 2026 are ongoing, Lyimo confirmed that the current rates will remain unchanged at least until March 2025.

Furthermore, the Tanzania Wildlife Management Authority (Tawa), through an official letter from Acting Conservation Commissioner Yussuf Kabange, has also frozen any new charges until March 2026. Earlier this year, the Tanzania Association of Tour Operators (Tato) raised concerns regarding significant fee hikes due to amendments in regulations concerning non-consumptive wildlife utilization and antiquities. The changes, introduced without prior notice, resulted in fee increases of up to 100%, a move that caused alarm within the tourism industry.

25th March 2025
Source: The Citizen
WHY POWER EXPORT DEAL COULD HERALD NEW ERA FOR TANZANIA
The ongoing electricity sale talks between the Tanzania Electric Supply Company (TANESCO) and Kanona Power Limited, a Zambian-Tanzanian consortium, are crucial for Tanzania’s economic growth, according to analysts. Experts said that electricity is a lucrative business, and Tanzania must capitalize on its surplus power by securing profitable export deals. With the 2,115-megawatt Julius Nyerere Hydropower Project (JNHPP) operational, Tanzania now produces more electricity than it needs, making exports a viable revenue source. Tanzania and Zambia already have an energy agreement for the Rukwa Region, which was signed when Tanzania lacked grid connection there.

However, with a new 400 kV transmission line linking Sumbawanga and Zambia and excess power from JNHPP, Tanzania is in a position to become a regional energy supplier. Zambia, facing electricity shortages in its mining sector, presents an immediate market. Private investors, including Kanona Power, are constructing new transmission lines to facilitate this trade. The partnership between TANESCO and Kanona Power Limited is expected to set a benchmark for future electricity exports to other neighboring countries, reinforcing Tanzania’s position in the regional energy market.

Source: The Citizen
TANZANIA TO EXTEND SGR TO NORTHERN REGIONS IN MAJOR EXPANSION DRIVE
The government has commenced plans to extend the Standard Gauge Railway (SGR) to connect the northern regions, the Director-General of the Tanzania Railways Corporation (TRC), Masanja Kadogosa, has announced. Speaking in Arusha on 25th March 2025, following a meeting with Regional Commissioner Mr. Paul Makonda, Mr. Kadogosa emphasized the strategic importance of expanding the railway network to the region. At present, the modern railway is operational from Dar es Salaam to Dodoma, with construction ongoing for the Dodoma to Mwanza section. Mr. Kadogosa underscored the economic significance of the northern extension, stating: “Arusha holds great importance, not just for the SGR project but also for economic reasons.” The region has substantial soda ash deposits that can sustain mining operations for over 100 years. Additionally, the planned crude oil pipeline from Uganda to Tanga is another key economic development for Tanzania. However, he did not specify when construction of the northern extension would commence. For his part, Mr. Makonda expressed gratitude to President Samia Suluhu Hassan for her commitment to Arusha’s development through key infrastructure projects.

Source: Daily News
CLAIMS ON SHILLINGS PERFORMANCE BASELESS
The Bank of Tanzania (BoT) has dismissed as misleading reports circulating in various media outlets which claim that the Tanzanian Shilling is the worst-performing currency globally. The false information inaccurately attributes this trend to increased imports, increased public debt, widening of the current account deficit, and the implementation of infrastructure projects, including the construction of the Bagamoyo Port, which has not started. The BoT Governor, Mr. Emmanuel Tutuba, said that over the past 12 months, the Tanzanian Shilling has depreciated by 3.6% against the United States Dollar. The Governor highlighted that, between July and December of the previous year, the Shilling sharply appreciated by 9.51%, becoming the best-performing currency globally. However, this trend reversed starting in January 2025.

He noted that this is consistent with the seasonal nature of foreign exchange flows in the country and the Bank’s foreign exchange policy, which allows exchange rate flexibility. He stressed that under this policy regime, the exchange rate continues to be determined by the demand and supply of foreign exchange in the market, with minimal intervention from the Bank. Tanzania’s macroeconomic indicators show strong growth, stable prices, a narrowing current account deficit, and a resilient financial sector that supports a stable Tanzanian Shilling in the medium to long term.

The economy grew by 5.4% in 2024, making it one of the fastest-growing economies in Africa. Inflation remains stable and low at 3.1% in February this year, decreasing from 4.6% in 2022. Contrary to the assertion made in the published article, Mr. Tutuba said the national debt is sustainable, with the debt-to-GDP ratio remaining low at 41.1% in 2023/24, below the IMF-recommended threshold of 50%. The current account deficit narrowed significantly from 3.7% in 2023 to 2.7% of GDP in 2024 due to improved exports, specifically from agriculture, mining, and tourism.

Additionally, the performance aligns with reports published by the World Bank, the Bank for International Settlements, the IMF, and global credit rating agencies. The Bank assures the public that it will continue to fulfill its core mandate of ensuring price stability by implementing monetary policy measures geared towards achieving macroeconomic stability, including Shilling stability. Analyst Mr. Kelvin Msangi explained why Western media is suddenly fixated on Tanzania’s currency, labeling it the worst-performing when the facts say otherwise. Expert analysis of the worst-performing currencies between February 2024 and February 2025 tells a different story.

26th March 2025
Source: The Citizen

MAN SENTENCED TO ONE YEAR OVER KILLING GIRLFRIEND AFTER BEING DENIED INTIMACY

The High Court, Mbeya Sub-Registry, has sentenced Mr. Hamphrey Ngogo to one year in prison after finding him guilty of unintentionally killing his girlfriend, Ms. Faraja Shabani. In Criminal Case No. 11 of 2023, the verdict was delivered on March 25th, 2025, by Judge Mussa Pomo, with a copy of the ruling available on the judiciary’s website. Initially, Mr. Ngogo was charged with murder under Section 196 of the Penal Code. However, it was alleged that at the time of the offense, he was 17 years old. The incident reportedly took place on September 2nd, 2022, in Mkuyu, Iganzo Ward, Mbeya Region. The prosecution claimed that Mr. Ngogo admitted to committing the offence, stating that on the day of the incident, he went to Faraja’s home intending to be intimate with her. However, when she refused, he strangled her to stop her from screaming. It was alleged that despite his attempt to silence her, she continued to scream, prompting him to grab an axe and strike her on the head. Upon realizing she was unresponsive, he fled the scene.

Source: The Citizen
TANESCO TO INTRODUCE AUTOMATIC LUKU METER SYSTEM
In a move to keep pace with rapidly advancing global technology, the Tanzania Electric Supply Company (TANESCO) is set to introduce a new prepaid electricity meter system aimed at enhancing convenience for consumers. The new system will allow users to purchase electricity that will be automatically loaded onto their meters without requiring manual entry, unlike the current system. This initiative is expected to eliminate inconveniences faced by customers, such as meter malfunctions and input errors. TANESCO’s Managing Director, Mr. Gissima Nyamo-Hanga, confirmed that a team of experts is already working on the project. He stated that to ensure that when a Tanzanian purchases electricity, the units are automatically loaded onto the meter without the need for manual entry, they aim to eliminate the challenges currently faced, including remote meters malfunctioning or failing to work at times.

Source: The Citizen
TANESCO URGES TANZANIANS TO SWITCH TO SWITCH TO ELECTRIC COOKING FOR COST SAVINGS
As the government continues to promote clean cooking energy, the Tanzania Electric Supply Company (TANESCO) has urged Tanzanians to embrace electricity for cooking, citing it as a more affordable and sustainable alternative to gas. Speaking in Dodoma on Wednesday, 26
th March 2025, during a press briefing on TANESCO’s progress over the past four years under President Samia Suluhu Hassan’s leadership, the company’s Managing Director, Mr. Gissima Nyamo-Hanga, introduced a new campaign under the slogan: “Electricity is the most affordable energy in the kitchen. Cook with electricity.”

The initiative aligns with the government’s broader efforts to promote sustainable energy solutions. Mr. Nyamo-Hanga noted that many Tanzanians have traditionally been hesitant to use electricity for cooking due to cost concerns. However, he reassured the public that technological advancements have led to the development of energy-efficient electric stoves, which consume minimal power and are now more cost-effective than gas. He stated that people used to fear cooking with electricity, thinking it was expensive. “But let me assure you that it is not.”

He mentioned that new technology has introduced electric stoves that use minimal electricity and are more affordable than gas. He further highlighted the safety benefits of electric stoves, explaining that they automatically switch off once cooking is complete, reducing the risk of food burning or fire hazards. TANESCO’s push for electricity-based cooking aligns with Hon. President Samia Suluhu Hassan’s strong advocacy for renewable energy, particularly in the cooking sector. Since assuming office, she has emphasized the need for Tanzania to transition to cleaner energy sources to reduce reliance on firewood, charcoal, and fossil fuels, which contribute to environmental degradation and health risks.

Source: The Citizen
TANZANIA’S SGR GETS SPECIAL ELECTRICITY STATUS AFTER POWER WOES
Tanzania Electric Supply Company (TANESCO) has established a special region along the standard gauge railway (SGR) to effectively and efficiently address the electricity challenges that have been disrupting its operations. A few days after commencing operations in July 2024, an electric train traveling between Dar es Salaam and Dodoma was forced to stop for two hours due to a power failure, with monkeys and owls blamed for the blackout. The second incident was reported on September 10
th, 2024, when an SGR train traveling from Dar es Salaam to Dodoma was delayed for several hours due to another power failure. Similar incidents were reported in December 2024 and February 2025, prompting fears about the project’s sustainability and reliability. However, TANESCO Managing Director, Mr. Gissima Nyamo-Hanga, said that these challenges have now been resolved. He stated that TANESCO has established a dedicated line for the SGR, with a regional manager overseeing the area and supported by a full team to ensure any issues are promptly addressed.

27th March 2025
Source: The Guardian

MINERALS PROCESSING: GEMSTONE CENTRE, SUNSET GEM SIGN MOU
The Tanzania Gemological Centre (TGC) has signed a memorandum of understanding (MoU) with Thailand’s Sunset Gem Co. to add value to gemstones before they are exported. Mr. Yahya Samamba, the Minerals Permanent Secretary, said at the signing ceremony here yesterday that the agreement addresses the requirements of the 2009 Mining Policy, stipulating that all minerals mined within the country be processed and have added value domestically before being exported. When minerals are processed, they contribute fully to the country’s economy while facilitating jobs in the gemstone industry by enhancing local expertise, he said, underlining that the agreement enables the transfer of new technologies in mineral value addition. It also uplifts the capacity of TGC, a key institution in the gemstone sub-sector, he noted, adding that the government seeks to ensure there is a clear process to implement the agreement, benefiting both parties.

It is the largest in East and Central Africa, with technology to ensure it has top-quality equipment, the right crop of students, and skilled professionals to run the facility. Processing minerals needs to meet the required standards for export, thus benefiting the miners, he stated, while Ally Maganga, the TGC acting coordinator, said the MoU has room for enabling students at the center to further their studies in Thailand to access skills in mineral value addition technologies. The MoU improves the chances of realizing the government’s commitment to ensuring the mining sector contributes 10% of the gross domestic product (GDP), and collaborating with advanced countries like Thailand is a step towards achieving this goal. The Sunset Gem Executive Director, Mr. Pukkapon Piantumdee, said the company specializes in cutting, polishing, and identifying gemstones. The firm’s management looks forward to using this opportunity to collaborate with Tanzania in exchanging knowledge and expertise.

Source: The Citizen
TANZANIA NEARS COMPLETION OF 758 COMMUNICATION TOWERS TO ENHANCE CONNECTIVITY
The construction of 758 new communication towers across Tanzania has reached 57% completion, according to the Universal Communications Service Access Fund (UCSAF). The initiative aims to improve telecommunications access for millions of Tanzanians, bridging the digital divide. In 2023, the government allocated a subsidy of TZS 126 billion to telecommunications companies to facilitate the construction of the towers. So far, 430 towers have been completed, significantly enhancing connectivity in underserved areas.

The UCSAF Chief Executive Officer, Mr. Peter Mwasalyanda, said the project is in its final stages, with new towers being completed daily. He noted that the substantial achievements made in recent years, particularly in tower construction, were vital for keeping pace with the digital age. UCSAF has invested massively in education in an effort to encourage girls to pursue science subjects. Mr. Mwasalyanda revealed that plans were in place to construct over 280 more towers to further strengthen Tanzania’s telecommunications infrastructure. The initiative will also improve radio signal reception and expand free public internet access.

Source: The Citizen
REGIONS WITH THE HIGHEST AND LOWEST INFLATION IN TANZANIA
Tanzania’s inflation landscape reveals significant regional disparities, with some areas grappling with sharp price hikes, while others remain relatively stable. According to the latest Consolidated Zonal Economic Performance Report for the quarter ended September 2024, Dar es Salaam and the Southern Highlands have been the hardest hit by rising inflation. While at the national level, the annual headline inflation rate stagnated at 3.1% in September and August 2024, in Dar es Salaam, inflation stood at 6.5% in September 2024, down from 8.2% in June 2024. This increase was driven by higher costs in personal care products, social protection services, and miscellaneous goods. Similarly, the Southern Highlands, including Njombe, Iringa, Rukwa, and Mbeya, saw a rise in inflation from 4.1% in June to 4.4% in September, largely due to higher prices in housing, water, gas, and fuels. In contrast, the Northern and Lake Zones recorded relatively low inflation rates.

The Lake Zone (Mwanza, Shinyanga, Simiyu, Kagera) saw the lowest inflation at just 1.1% in September, down from 1.6% in June. The Northern Zone (Arusha, Kilimanjaro, Tanga, Manyara) also experienced a slight rise from -0.3% in June to 1.4% in September but remained among the least affected regions. The economic stability in these regions can largely be attributed to the strength of the agricultural sector, which has helped shield them from the broader inflationary pressures affecting urban centres.

Source: The Citizen
TANZANIA ANTI-CORRUPTION BODY RECOVERS TZS 30 BILLION IN ONE YEAR THROUGH VARIOUS INVESTIGATIONS
The Prevention and Combating of Corruption Bureau (PCCB) has successfully recovered TZS 30.1 billion in the 2023/24 financial year through various investigative operations, Director General Mr. Crispin Chalamila has revealed. Presenting the bureau’s annual performance report to President Samia Suluhu Hassan at the State House in Dar es Salaam on Thursday, March 27th, 2025, Mr. Chalamila highlighted key investigations that led to the recoveries. He stated that one of the major recoveries was TZS 6.6 billion in unpaid loans from the Tanzania Investment Bank (TIB).

The funds were disbursed irregularly to Amboni Sisal Properties Ltd in Tanga without following proper procedures and criteria. This amount has now been returned to TIB. Another significant case involved TZS 6.8 billion in revenue collected from livestock auctions, markets, and other sources in Ilala Municipality. The funds were not deposited into the bank by revenue collectors but have since been restored to the municipality’s central fund account.

Additionally, PCCB investigations into development projects within local government authorities led to the recovery of TZS 3.1 billion. Of this amount, TZS 1.1 billion in cash was deposited into municipal accounts, while TZS 2 billion was safeguarded, along with equipment being returned to the respective projects. Mr. Chalamila also addressed tax evasion cases, revealing that TZS 2.4 billion was recovered, including TZS 281.4 million in unpaid taxes from various businesses in the Kigoma Region. Furthermore, TZS 2.1 billion was retrieved from withholding tax evasion.

Source: The Citizen
TANZANIAN GOVERNMENT DEBT APPROACHES TZS 100 TRILLION BUT REMAINS SUSTAINABLE
Tanzania’s national debt has risen to TZS 97.35 trillion as of June 30th, 2024, marking an increase of TZS 15.1 trillion from the TZS 82.25 trillion recorded in the 2022/23 financial year, according to the Controller and Auditor General (CAG), Mr. Charles Kichere. In a report presented to Hon. President Samia Suluhu Hassan at the State House on Thursday, March 27th, 2025, Mr. Kichere stated that, despite the significant rise, the government debt remains sustainable based on key economic indicators. He noted that the government’s debt reached TZS 97.35 trillion as of June 30th, 2024, which is an increase of 18.36% from the previous year. This consists of TZS 31.95 trillion in domestic debt and TZS 65.40 trillion in external debt.

The CAG said an assessment of debt sustainability showed that the country is in a manageable position, with critical metrics indicating a balanced approach to borrowing. External debt, as a percentage of Gross Domestic Product (GDP), stands at 23.6%, well below the 40% threshold. Total national debt is 41.1% of GDP, also under the 55% limit. According to Mr. Kichere, debt servicing, as a percentage of export earnings, was well within the manageable range. Similarly, debt servicing as a percentage of government revenue stands at 14.5%, significantly lower than the 18% threshold.

Source: The Citizen
TANZANIA RAILWAYS CORPORATION INCURRED TZS 224 BILLION LOSS IN ONE YEAR
The Controller and Auditor General (CAG), Mr. Charles Kichere, has reported that the Tanzania Railways Corporation (TRC) incurred a loss of TZS 224 billion in the 2023/2024 financial year, compared to TZS 102 billion the previous year. CAG Kichere attributed the loss to prolonged heavy rains that lasted nearly four months, which disrupted operations, along with a severe shortage of locomotives, engines, and carriages. He made these remarks on Thursday, March 27th, 2025, while presenting his report for the 2023/2024 financial year to Hon. President Samia Suluhu Hassan at State House in Dar es Salaam. He stated that the corporation utilized TZS 29 billion in government subsidies. Without this support, the corporation would have faced a loss of TZS 253 billion. The CAG also noted that the audit was carried out prior to the commencement of operations for the Standard Gauge Railway (SGR), which began in June 2024, potentially limiting the corporation’s revenue generation during the review period. He recommended that TRC focus on improving operational efficiency, reducing costs, and implementing a comprehensive plan to acquire locomotives and carriages to increase revenue generation.

Source: The Citizen
AIR TANZANIA’S ANNUAL LOSSES SURGE 62% TO TZS 91.8 BILLION
Air Tanzania Limited (ATCL) has reported a loss of TZS 91.8 billion for the financial year 2023/24, marking a significant 62% increase in losses compared to the previous year. This financial setback places the airline among the loss-making government entities. The Controller and Auditor General (CAG), Mr. Charles Kichere, presented the findings of his audit to Hon. President Samia Suluhu Hassan on Thursday, March 27th, 2025, at the State House in Dar es Salaam. Despite receiving a TZS 100 billion subsidy from the government, ATCL faced significant operational challenges that contributed to the mounting losses. Mr. Kichere attributed the airline’s financial troubles largely to the extended repair time for Airbus, which led to the grounding of planes for several months, severely affecting operations. The CAG emphasized the urgent need for ATCL to work closely with the government to explore more efficient operational strategies. He urged both parties to focus on improving financial management and economic factors to enhance the airline’s performance and ensure its long-term sustainability.

Source: The Citizen
TTCL AND TANZANIA POSTS CORPORATION RECORD BILLIONS IN ANNUAL LOSSES
The Controller and Auditor General (CAG), Mr. Charles Kichere, has revealed that Tanzania Telecommunications Corporation (TTCL) recorded a loss of TZS 27.7 billion for the 2023/2024 financial year. This represents a significant increase from the previous year’s loss of TZS 4.32 billion. The loss is largely attributed to rising operational costs following TTCL’s transfer to the National Backbone and the National Data Center. Despite generating TZS 24 billion in revenue from the national backbone, TTCL was unable to count it as part of its earnings, as the funds were redirected to settle the backbone debt. As a result, the corporation continued to face financial challenges. CAG Kichere has recommended that the government take responsibility for paying off the national backbone debt, with the revenues generated being reinvested to ensure the efficient operation of the corporation. In a related development, Tanzania Posts Corporation also reported a loss of TZS 23.6 billion, primarily due to a 20% drop in revenue.

Source: The Citizen
TANESCO’S DEBT TO IPTL HITS TZS 238.7 BILLION WITH MAJORITY BEING ACCUMULATED INTEREST
The Tanzania Electric Supply Company (TANESCO) owes TZS 238.7 billion to Independent Power Tanzania Limited (IPTL), an independent power producer, according to the latest report by the Controller and Auditor General (CAG), Mr. Charles Kichere. Presenting his 2023/2024 annual report to President Samia Suluhu Hassan at the State House in Dar es Salaam on Thursday, March 27th, 2025, Mr. Kichere detailed that the debt comprises TZS 111.4 billion in principal and TZS 127.2 billion in accumulated interest.

Despite a dispute over IPTL’s license renewal between 2017 and 2022, the company has lodged additional claims for compensation, production costs, and legal fees. However, TANESCO insists that the matter was already settled through case number 200 of 2015. In addition to TANESCO’s debt, IPTL itself owes the government USD 148 million (TZS 389.8 billion), a sum that has remained unpaid since February 2022. The CAG report states that this debt arose from agreements concerning Tegeta ESCROW funds and remains unresolved as of June 2024. To address these financial concerns, the CAG has recommended that the government conduct a thorough review of all outstanding claims related to IPTL to verify their legitimacy and accuracy. He further urged the government to recover USD 148 million owed by IPTL in line with the 2021 Tegeta Escrow agreement.

28th March 2025
Source: Daily News

ITA, TAFFA TO ENHANCE CUSTOMS AND FREIGHT FORWARDING TRAINING
The Institute of Tax Administration (ITA) and the Tanzania Freight Forwarders Association (TAFFA) have signed a five-year Memorandum of Understanding (MoU) to jointly manage the East African Customs and Freight Forwarding Practicing Certificate course. The partnership aims to equip TAFFA members with the necessary skills to enhance their professionalism and efficiency in customs brokerage. The MoU was signed on 27th March 2025 by ITA Rector Professor Isaya Jairo and TAFFA President Mr. Eric Urio at ITA in Dar es Salaam, in the presence of senior officials from both organizations. Speaking at the event, Prof. Jairo expressed optimism that the MoU would significantly benefit TAFFA members by modernizing their skills and improving operational efficiency, ultimately leading to increased revenue collection from customs.

The signing of this MoU reaffirms ITA’s reputation as a trusted provider of customs, taxation, and freight forwarding training for industry stakeholders and the general public. Prof. Jairo stated that the MoU presents a valuable opportunity for freight forwarding agents in Tanzania to expand their professional qualifications. This will enable them to work not only within Tanzania but also across East Africa and globally. He also noted the importance of having highly skilled freight forwarders within the East African Community to address industry challenges and improve the efficiency of customs processes.

Prof. Jairo reaffirmed ITA’s commitment to delivering high-quality training that meets national education standards set by regulatory bodies such as the Ministry of Education, the National Council for Technical and Vocational Education and Training (NACTVET), and the Tanzania Commission for Universities (TCU). He also suggested that the collaboration should extend beyond the EACFFPC course to include other customs-related programmes, such as industry research, to foster innovation and improve overall efficiency in customs operations. On his part, Mr. Urio underscored the critical role of ITA in building the capacity of tax and customs professionals to enhance efficiency and compliance in the industry. He noted that the MoU would significantly contribute to strengthening TAFFA members’ expertise, enabling them to operate at higher professional standards and improve service delivery in the freight forwarding sector.

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