Suellem Rocha was invited to stand by the National Labour Party in Brazil election for 2010 and she is campagning that she will help the youth in order to bring innovation in the legislative body
Monday, September 20, 2010
Friday, July 2, 2010
TAZARA Should Provde Transport to Dar Residents
The Tanzania Zambia Railways Authority (TAZARA) should get out and design strategies allowing it to provide passangers transport to Dar residents. TAZARA should be able to operate passangers route to residents living in Dar surbs of Kiwalani, Gongo la Mboto and Pugu, there is no immediate reasons as to why residents of these areas should suffer while a railway line passing through these areas is there , just the management is sleeping!
TAZARA shoud be able to operate fast and reliable transport ferrying passngers to Dar central up to Kurasini from these areas. There is potentail resource but is not used, let us use it to stimulate our economy and easy transport probles facing residents in this part of the city. there no need for money here, the infrastructures are there only change of mind set and will by TAZARA and some others involved. We can manage, let us start from here.
TAZARA shoud be able to operate fast and reliable transport ferrying passngers to Dar central up to Kurasini from these areas. There is potentail resource but is not used, let us use it to stimulate our economy and easy transport probles facing residents in this part of the city. there no need for money here, the infrastructures are there only change of mind set and will by TAZARA and some others involved. We can manage, let us start from here.
Introduction of Islamic Banking in Tanzania
Islamic Banking: Tax Implications
In recent days banks in Tanzania have introduced Islamic banking as one their key products now being offered to clinets. As the new financing products will positively contribute to diversifying financing instruments in the economy and facilitate economic growth, there are some implicit challenges that will requires immediate attention of policy makers. The immediate challenges will relate to tax treatment especially given the fact that in some cases existing tax laws do not cater for the basic Islamic banking sales or profit sharing principles.
In real sense, there are basically two fundamental tax policy challenges raised by the various Islamic contracts as applied in finance. The first is that many of the Islamic finance tools are sales contracts. Depending on the jurisdiction, this may give rise to both value added and transfer taxes. Some countries where Islamic banking operates have provided explicit tax exemptions for certain types of Islamic transactions to give them tax neutrality. In our case, this is already a challenge and it could only take months not years to see request for tax exemptions coming to us, can we now get prepared!
The other challenges relate to the treatment of income from the profit – sharing modes of the Islamic finance, it basically generates capital gains taxes and taxes on dividends. If TRA will treat Islamic financing in this way, it will restrict the availability or cost of Musharakah and Mudarabah to banks customers.
by Kabakaki
In recent days banks in Tanzania have introduced Islamic banking as one their key products now being offered to clinets. As the new financing products will positively contribute to diversifying financing instruments in the economy and facilitate economic growth, there are some implicit challenges that will requires immediate attention of policy makers. The immediate challenges will relate to tax treatment especially given the fact that in some cases existing tax laws do not cater for the basic Islamic banking sales or profit sharing principles.
In real sense, there are basically two fundamental tax policy challenges raised by the various Islamic contracts as applied in finance. The first is that many of the Islamic finance tools are sales contracts. Depending on the jurisdiction, this may give rise to both value added and transfer taxes. Some countries where Islamic banking operates have provided explicit tax exemptions for certain types of Islamic transactions to give them tax neutrality. In our case, this is already a challenge and it could only take months not years to see request for tax exemptions coming to us, can we now get prepared!
The other challenges relate to the treatment of income from the profit – sharing modes of the Islamic finance, it basically generates capital gains taxes and taxes on dividends. If TRA will treat Islamic financing in this way, it will restrict the availability or cost of Musharakah and Mudarabah to banks customers.
by Kabakaki
Tuesday, March 30, 2010
Improvind the JK Uwezeshaji Fund
Community Investment Tax Credit
The Government is committed itself to promoting enterprise for all in the country through providing affordable credits. The KJ Uwezeshaji Fund and others are designed to advance this initiative. In order the initiatives to provide affordable credits to economic activities of the disadvantaged Tanzanians, private sector participation is very important.
Due to the high need for credits from SMEs, the JK Uwezedshaji Fund is not enough to carter for the credit requirement by Tanzanians. The Government only can not afford to provide enough fund, so we need to design measures that will attract private sector to contribute to the Uwezeshaji Fund.
In order to attract private sector to contributing seed funds to the JK Uwezeshaji Fund, the Government should design specific policy to enable commercial banks and other companies to contribute to the fund.
For example we can design what is called Community Investment Tax Credit for banks and other companies that will contribute to the Uwezeshaji Fund. In this respect one option could be that funds that private companies will contribute to the Uwezeshaji Fund will not be included in the calculation of the companies’ taxable profit.
Proposal
Can we in this financial year design a tax measure that could attract private sector to contribute money to the JK Uwezesdhaji Fund. One of the tax intervention measures is to provide for the contributed amount when calculating a company’s taxable profit, called Community Investment Tax Credit.
Your views and comments are welcome
The Government is committed itself to promoting enterprise for all in the country through providing affordable credits. The KJ Uwezeshaji Fund and others are designed to advance this initiative. In order the initiatives to provide affordable credits to economic activities of the disadvantaged Tanzanians, private sector participation is very important.
Due to the high need for credits from SMEs, the JK Uwezedshaji Fund is not enough to carter for the credit requirement by Tanzanians. The Government only can not afford to provide enough fund, so we need to design measures that will attract private sector to contribute to the Uwezeshaji Fund.
In order to attract private sector to contributing seed funds to the JK Uwezeshaji Fund, the Government should design specific policy to enable commercial banks and other companies to contribute to the fund.
For example we can design what is called Community Investment Tax Credit for banks and other companies that will contribute to the Uwezeshaji Fund. In this respect one option could be that funds that private companies will contribute to the Uwezeshaji Fund will not be included in the calculation of the companies’ taxable profit.
Proposal
Can we in this financial year design a tax measure that could attract private sector to contribute money to the JK Uwezesdhaji Fund. One of the tax intervention measures is to provide for the contributed amount when calculating a company’s taxable profit, called Community Investment Tax Credit.
Your views and comments are welcome
Business Process Outsourcing
BPO, Tanzanians where are we on this important business? no good news comingout explicitly detailing out on how Tanzania can take advantage of the newly introduced Fibre - Optic Cables, only it has been introduced into EAC countries but i am not sure if we are on target like our neighbour, Kenya.
While BPO generates employment and is an incurbator for developing business class in a country, we in Tz we are still taking it for granted. BPO currently in Kenya generate 8,000 employment, and since the introduction of the optical fibres Kenyans are planing by 2020 BPo to emply 120,000 Kenyans. Already they have plans to consolidate the existing ones into larger call centres, the only challenge is the political risk in the event of election crisis expected by 2012.
Now what are are plans in Tz in faciliating the development of Call centres in the country to encourage the develoment of BPO.
By Kabakaki
While BPO generates employment and is an incurbator for developing business class in a country, we in Tz we are still taking it for granted. BPO currently in Kenya generate 8,000 employment, and since the introduction of the optical fibres Kenyans are planing by 2020 BPo to emply 120,000 Kenyans. Already they have plans to consolidate the existing ones into larger call centres, the only challenge is the political risk in the event of election crisis expected by 2012.
Now what are are plans in Tz in faciliating the development of Call centres in the country to encourage the develoment of BPO.
By Kabakaki
Friday, March 19, 2010
Rais Jakaya M. Kikwete Ampongeza Askofu Mkuu N. Rugambwa
JK ampongeza Monsinyori Novatus Rugambwa kwa kuteuliwa kuwa Askofu Mkuu wa Angola na Sao Tome na Principe
Mheshimiwa Jakaya Mrisho Kikwete, Rais wa Jamhuri ya Muungano wa Tanzania, leo, Alhamisi, Machi 18, 2010, ametuma salamu za pongezi kwa Monsinyori Novatus Rugambwa, Mtanzania, ambaye ameteuliwa na Papa Benedict wa 16 kuwa Askofu Mkuu wa Kanisa Katoliki na Balozi wa Papa katika nchi mbili za Afrika za Angola, na Sao Tome na Principe.Monsinyori Rugambwa amesimikwa kushika daraja la uaskofu mchana wa leo na Mwadhama Kardinali Tarcisio Bertone, Katibu Mkuu wa Nchi wa Baba Mtakatifu, katika Misa maalumu ya kuwekewa wakfu iliyofanyika katika Kanisa Kuu la Mtakatifu Petro, Vatican.“Baba Askofu, nimepokea kwa furaha nyingi na faraja kubwa habari za uteuzi wako wa kuwa Askofu Mkuu wa Kanisa Katoliki na Balozi wa Papa katika nchi za Angola, na Sao Tome na Principe,” Mheshimiwa Rais Kikwete amesema katika salamu hizo za pongezi na kuongeza:“Kwa niaba ya Watanzania wenzako, kwa niaba ya Serikali yangu na kwa niaba yangu binafsi, napenda kukupongeza sana kwa uteuzi huo. Uteuzi huo ni heshima kwa nchi yako, ni heshima kwa Watanzania wenzako na ni matokeo ya utumishi wako uliotukuka katika Kanisa. Ni nafasi unayoistahili.”Amesisitiza Mheshimiwa Rais Kikwete: “Napenda kuchukua nafasi hii kukutakia kila la heri katika utumishi wako kwenye nafasi hizi mpya. Aidha, napenda kukuhakikishia kuwa Watanzania wenzako na mimi tutaendelea kukuombea kwa Mwenyezi Mungu akupe nguvu na afya njema ili uweze kumudu nafasi hizo.”Monsinyori Rugambwa mwenye umri wa miaka 52 anakuwa Mtanzania wa kwanza kuteuliwa kuwa Balozi wa Papa.Kabla ya uteuzi wake, Monsinyori Rugambwa alikuwa Msaidizi wa Katibu katika Baraza la Wakimbizi la Serikali ya Vatican – Ponticifal Council for the Pastoral Care of Mingrant and Itinerant People, nafasi aliyoishikilia tokea Juni 28, 2007.Kabla ya hapo alikuwa mshauri wa Balozi wa Papa nchini Indonesia. Awali alikuwa mtumishi wa Balozi za Papa katika Panama, Jamhuri ya Congo, Pakistan na New Zealand.Alijiunga na Utumishi wa Nchi za Nje wa Serikali ya Vatican mwaka 1999. Ana Shahada ya Uzamivu ya Sheria za Kanisa na anazungumza vizuri lugha za Kiingereza, Kifaransa, Kihispanishi na Kijerumani. Alipata daraja la upadre mwaka 1986.Imetolewa na:Kurugenzi ya Mawasiliano ya Rais,Ikulu,DAR ES SALAAM.18 Machi, 2010
Mheshimiwa Jakaya Mrisho Kikwete, Rais wa Jamhuri ya Muungano wa Tanzania, leo, Alhamisi, Machi 18, 2010, ametuma salamu za pongezi kwa Monsinyori Novatus Rugambwa, Mtanzania, ambaye ameteuliwa na Papa Benedict wa 16 kuwa Askofu Mkuu wa Kanisa Katoliki na Balozi wa Papa katika nchi mbili za Afrika za Angola, na Sao Tome na Principe.Monsinyori Rugambwa amesimikwa kushika daraja la uaskofu mchana wa leo na Mwadhama Kardinali Tarcisio Bertone, Katibu Mkuu wa Nchi wa Baba Mtakatifu, katika Misa maalumu ya kuwekewa wakfu iliyofanyika katika Kanisa Kuu la Mtakatifu Petro, Vatican.“Baba Askofu, nimepokea kwa furaha nyingi na faraja kubwa habari za uteuzi wako wa kuwa Askofu Mkuu wa Kanisa Katoliki na Balozi wa Papa katika nchi za Angola, na Sao Tome na Principe,” Mheshimiwa Rais Kikwete amesema katika salamu hizo za pongezi na kuongeza:“Kwa niaba ya Watanzania wenzako, kwa niaba ya Serikali yangu na kwa niaba yangu binafsi, napenda kukupongeza sana kwa uteuzi huo. Uteuzi huo ni heshima kwa nchi yako, ni heshima kwa Watanzania wenzako na ni matokeo ya utumishi wako uliotukuka katika Kanisa. Ni nafasi unayoistahili.”Amesisitiza Mheshimiwa Rais Kikwete: “Napenda kuchukua nafasi hii kukutakia kila la heri katika utumishi wako kwenye nafasi hizi mpya. Aidha, napenda kukuhakikishia kuwa Watanzania wenzako na mimi tutaendelea kukuombea kwa Mwenyezi Mungu akupe nguvu na afya njema ili uweze kumudu nafasi hizo.”Monsinyori Rugambwa mwenye umri wa miaka 52 anakuwa Mtanzania wa kwanza kuteuliwa kuwa Balozi wa Papa.Kabla ya uteuzi wake, Monsinyori Rugambwa alikuwa Msaidizi wa Katibu katika Baraza la Wakimbizi la Serikali ya Vatican – Ponticifal Council for the Pastoral Care of Mingrant and Itinerant People, nafasi aliyoishikilia tokea Juni 28, 2007.Kabla ya hapo alikuwa mshauri wa Balozi wa Papa nchini Indonesia. Awali alikuwa mtumishi wa Balozi za Papa katika Panama, Jamhuri ya Congo, Pakistan na New Zealand.Alijiunga na Utumishi wa Nchi za Nje wa Serikali ya Vatican mwaka 1999. Ana Shahada ya Uzamivu ya Sheria za Kanisa na anazungumza vizuri lugha za Kiingereza, Kifaransa, Kihispanishi na Kijerumani. Alipata daraja la upadre mwaka 1986.Imetolewa na:Kurugenzi ya Mawasiliano ya Rais,Ikulu,DAR ES SALAAM.18 Machi, 2010
Management of the Foreign Currency Exposoure
Exposure management
Once the importer or exporter has a fixed contract for the import or
export of goods or services, foreign currency exposure of the local
currency versus the foreign currency commences and becomes an
issue. The issues are:
· denomination of the foreign currency payable or receivable, i.e.
euro, US dollar, yen, etc.,
· amount,
· due date.
Consideration of whether to eliminate (hedge) the exposure now
becomes necessary. Taking action at this stage of the import/export
process enables the business to:
· eliminate possible losses due to exchange rate fluctuation,
· price the goods or commodity in advance, and
· avoid speculation.
In order to eliminate all foreign exchange risk, hedging is
recommended. The simplest and most usual form of forex hedge is the
“forward exchange contract”. A forward exchange contract is an
agreement between a bank and a counterpart:
· to exchange a fixed amount of one currency for another,
· at an agreed rate,
· for value at a fixed date in the future.
This gives business the opportunity to hedge against possible losses
due to future fluctuations in foreign exchange rates. This will enable:
· the importer to fix costs of imports, materials or capital goods at
agreed rates on due date and determine pricing strategy in
advance,
· the exporter to fix local currency proceeds of export sales and
possibly to obtain exchange rates better than spot if interest
differentials permit.
In practice, this requires some familiarity, but the rule is actually quite
simple. Where the interest rate of the local currency is higher than the
interest rate of the foreign currency, the foreign currency will sell at a
premium to the local currency in the forward market versus the spot
market. That is, the importer who has to buy foreign currency forward will, in
this case, have to pay more local currency for the foreign currency in
the forward market (a premium) than in the spot market.
For the exporter who wishes to sell this foreign currency forward, the
case is the opposite. He will receive more local currency in the
forward market than by selling it spot. The difference will of course be
equal to the interest rate differential between the two currencies.
Taking the above example, the importer will have to pay $1.0421 per
euro forward, compared to $1.0350 spot, a premium of $0.0071.
Similarly, the exporter to Eurozone, who will be receiving euro, will
be able to enter a forward sale of euro at a rate of $1.0421, a premium
of $0.0071 over spot.
The opposite of the above is, of course, also true; that is, where the
interest rate of the local currency is lower than the interest rate of the
foreign currency, the foreign currency will sell at a discount to the
local currency in the forward market versus the spot market.
By remembering this simple relationship, businessmen will be able to
determine fairly easily whether forward cover of foreign currency
exposures will be available at a premium or discount versus spot
cover.
Other hedging alternatives
As mentioned above, the simplest and most usual form of forex hedge
is the forward contract. This of course fixes the exchange rate between
the parties and is a commitment to exchange currencies at a future
date at an agreed rate.
Other forms of hedging are possible where more flexibility is required,
but this usually involves the use of “currency options” which give the
buyer the right rather than the obligation to exchange currencies at an
agreed rate. For this flexibility and privilege there is usually a fee.
Furthermore, there is usually the need for a fairly sophisticated
banking system to deliver such products, so the availability and
suitability is best discussed with the company’s bankers.
Once the importer or exporter has a fixed contract for the import or
export of goods or services, foreign currency exposure of the local
currency versus the foreign currency commences and becomes an
issue. The issues are:
· denomination of the foreign currency payable or receivable, i.e.
euro, US dollar, yen, etc.,
· amount,
· due date.
Consideration of whether to eliminate (hedge) the exposure now
becomes necessary. Taking action at this stage of the import/export
process enables the business to:
· eliminate possible losses due to exchange rate fluctuation,
· price the goods or commodity in advance, and
· avoid speculation.
In order to eliminate all foreign exchange risk, hedging is
recommended. The simplest and most usual form of forex hedge is the
“forward exchange contract”. A forward exchange contract is an
agreement between a bank and a counterpart:
· to exchange a fixed amount of one currency for another,
· at an agreed rate,
· for value at a fixed date in the future.
This gives business the opportunity to hedge against possible losses
due to future fluctuations in foreign exchange rates. This will enable:
· the importer to fix costs of imports, materials or capital goods at
agreed rates on due date and determine pricing strategy in
advance,
· the exporter to fix local currency proceeds of export sales and
possibly to obtain exchange rates better than spot if interest
differentials permit.
In practice, this requires some familiarity, but the rule is actually quite
simple. Where the interest rate of the local currency is higher than the
interest rate of the foreign currency, the foreign currency will sell at a
premium to the local currency in the forward market versus the spot
market. That is, the importer who has to buy foreign currency forward will, in
this case, have to pay more local currency for the foreign currency in
the forward market (a premium) than in the spot market.
For the exporter who wishes to sell this foreign currency forward, the
case is the opposite. He will receive more local currency in the
forward market than by selling it spot. The difference will of course be
equal to the interest rate differential between the two currencies.
Taking the above example, the importer will have to pay $1.0421 per
euro forward, compared to $1.0350 spot, a premium of $0.0071.
Similarly, the exporter to Eurozone, who will be receiving euro, will
be able to enter a forward sale of euro at a rate of $1.0421, a premium
of $0.0071 over spot.
The opposite of the above is, of course, also true; that is, where the
interest rate of the local currency is lower than the interest rate of the
foreign currency, the foreign currency will sell at a discount to the
local currency in the forward market versus the spot market.
By remembering this simple relationship, businessmen will be able to
determine fairly easily whether forward cover of foreign currency
exposures will be available at a premium or discount versus spot
cover.
Other hedging alternatives
As mentioned above, the simplest and most usual form of forex hedge
is the forward contract. This of course fixes the exchange rate between
the parties and is a commitment to exchange currencies at a future
date at an agreed rate.
Other forms of hedging are possible where more flexibility is required,
but this usually involves the use of “currency options” which give the
buyer the right rather than the obligation to exchange currencies at an
agreed rate. For this flexibility and privilege there is usually a fee.
Furthermore, there is usually the need for a fairly sophisticated
banking system to deliver such products, so the availability and
suitability is best discussed with the company’s bankers.
Thursday, March 18, 2010
The Economics of Exchange Rates
Factors influencing Exchange Rates of Any Currency
A number of factors can affect exchange rate trends and volatility, but
broadly speaking the following represent the primary determinants of
exchange rate direction:
· economic growth rate differentials,
· interest rate differentials,
· balance-of-payments surplus or deficits,
· political issues,
· speculative flows or technical factors.
Given the complexity of these factors and the potential impact of
negative exchange rate movements (which often exceed 15% per
annum against the dollar) on business performance, prudent
businessmen should seek to lessen or eliminate the negatives of
foreign exchange volatility whenever possible. This can be achieved
by appropriate foreign exchange hedging.
Next time a discussion will be on different strategies for foreign exchange risk hedging; please do not miss make sure you visit this blog everyday
A number of factors can affect exchange rate trends and volatility, but
broadly speaking the following represent the primary determinants of
exchange rate direction:
· economic growth rate differentials,
· interest rate differentials,
· balance-of-payments surplus or deficits,
· political issues,
· speculative flows or technical factors.
Given the complexity of these factors and the potential impact of
negative exchange rate movements (which often exceed 15% per
annum against the dollar) on business performance, prudent
businessmen should seek to lessen or eliminate the negatives of
foreign exchange volatility whenever possible. This can be achieved
by appropriate foreign exchange hedging.
Next time a discussion will be on different strategies for foreign exchange risk hedging; please do not miss make sure you visit this blog everyday
Wednesday, March 3, 2010
African Land Scramble of the 21st Century
Dear Leaders
Why do Africans are failling to get use of their land instead they are seeking external users on this very important resources? Is it true that this generation is failling Africa like what our ancestors did? Can we dare to say that Africa is failling its generation with such huge resources endowed with it?
Why do Africans are failling to get use of their land instead they are seeking external users on this very important resources? Is it true that this generation is failling Africa like what our ancestors did? Can we dare to say that Africa is failling its generation with such huge resources endowed with it?
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