Singapore, Tanzania deepen economic ties in push for trade and investment growth

Dar es Salaam. Singapore and Tanzania have pledged to deepen economic cooperation, with leaders and business executives from both countries identifying trade, investment, logistics, tourism and the digital economy as priority areas for future collaboration.

Speaking at the Tanzania-Singapore Business Forum on Tuesday, June 09, 2026, Singapore President Tharman Shanmugaratnam said the two countries were building on long-standing ties rooted in centuries of Indian Ocean trade. Although geographically distant, he said Tanzania and Singapore share a history of exchange that can be leveraged to strengthen economic partnerships in an increasingly uncertain global environment.

“We know the international trading order is not what it used to be. It is more uncertain, and that uncertainty is likely to endure.

In such a world, the answer must be to diversify, build new corridors of opportunity and create more resilient supply chains,” he said. President Shanmugaratnam described Tanzania as a country of immense promise, pointing to its youthful population, abundant natural resources, expanding investment opportunities and strategic location linking regional and global markets.

He said sectors such as agribusiness, tourism, infrastructure, logistics and the digital economy present strong prospects for collaboration between Tanzanian and Singaporean firms. “From sectors like agribusiness to tourism, there is real potential for meaningful partnership, combining Tanzania’s advantages with Singapore’s experience in efficient systems, advanced supply chain management, high-value services and the digital economy,” he said.

He said that stronger cooperation would help create jobs, enhance skills and support inclusive growth in both countries. During the visit, the two governments signed an agreement on the avoidance of double taxation and a memorandum of understanding on carbon credit cooperation.

President Shanmugaratnam said the tax agreement would reduce the cost and risk of doing business while boosting investor confidence. “We signed an avoidance of double taxation agreement, which will lower the cost of doing business, reduce the risks of doing business and thereby give investors greater confidence,” he said.

The two countries are also working towards a bilateral framework to facilitate carbon credit transactions and climate-related investments. On her part, President Samia Suluhu Hassan described the visit as historic, marking the first state visit by a Singaporean Head of State to Tanzania, coinciding with 45 years of diplomatic relations between the two countries.

She said talks between the two leaders had resulted in agreements aimed at elevating bilateral relations and expanding economic cooperation. President Hassan noted that Singapore’s experience in economic transformation, port development, technology and investment management offers valuable lessons for Tanzania as it advances its industrialisation agenda.

She said Tanzania remains one of Africa’s fastest-growing and most stable economies, strategically positioned as a gateway to East and Southern Africa and the wider African market of more than 1.4 billion people.

“Despite strong diplomatic ties, significant opportunities remain untapped, particularly in trade, logistics, tourism, infrastructure and digital services,” she said. The President added that both countries should work towards building resilient supply chains and diversifying economic partnerships amid growing uncertainty in the global trading environment.

Tanzania Private Sector Foundation (TPSF) chairperson Angelina Ngalula said the long-standing friendship between the two countries should now translate into concrete commercial partnerships, joint ventures and investments. She said Tanzania offers growing opportunities in agriculture, agro-processing, mining, transport and logistics, energy and infrastructure.

According to her, Singapore’s strengths in technology, financial services, logistics, engineering and skills development align closely with Tanzania’s development priorities. “Governments can create an enabling environment and open doors, but it is the private sector that must drive trade and investment.

The real deals will be made by businesses,” she said. Ms Ngalula urged companies from both countries to use business-to-business engagements to identify investment opportunities and commit to practical follow-up actions.

Meanwhile, the Singapore Business Federation (SBF) said it plans to expand its presence in Tanzania and across Africa as part of efforts to deepen commercial ties with the continent. SBF Vice Chairman Mark Lee said Africa is increasingly seen as a strategic growth market, with Tanzania emerging as one of the region’s most attractive investment destinations.

“We believe in Africa and we aspire to do considerably more on this continent than we have done to date,” he said, citing Tanzania’s strategic location, East African Community membership, investment reforms and expanding logistics infrastructure as key attractions for Singaporean investors. He said Singapore has registered 36 investment projects in Tanzania since 1997, valued at more than $500 million and creating over 3,000 jobs.

“Our role is to translate political momentum into commercial substance, into trade, investment and partnerships that endure beyond the headlines of a state visit,” he said. A delegation of 15 Singaporean companies is currently exploring opportunities in industrial logistics, consumer goods, green technology, digital solutions and tourism, signalling growing interest in Tanzania as a gateway to East Africa.

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Chadema denies it has reinstated former lawmaker Mdee

Dar es Salaam. The opposition party, Chadema, has dismissed viral social media reports claiming it has reinstated former firebrand legislator Halima Mdee to bolster its ranks ahead of a renewed political contest with the ruling CCM.

Speaking in a telephone interview with The Citizen yesterday, Chadema secretary-general John Mnyika clarified that the party’s constitution and regulations prescribe a specific procedure for any expelled member seeking readmission. He emphasised that the process requires the individual to formally apply for membership through a written letter.

“After they have applied, the specific meeting or organ that expelled them must convene to deliberate on the letter and decide whether the membership is to be accepted or not,” said Mr Mnyika. He noted that the procedure differs significantly from that of members who resign voluntarily, as expelled individuals must have their reinstatement considered by the same body that removed them.

Mr Mnyika maintained that if such a process had taken place, it would already be a matter of public record. “If all those processes had been conducted, it would have been public knowledge by now,” he added, insisting that such reports are false.

The controversy dates back to November 27, 2020, when Chadema stripped 19 cadres of their membership after they were sworn in as Special Seats Members of Parliament in Dodoma without the party’s authorisation. The legislators included Halima Mdee, Esther Matiko, Grace Tendega, Cecilia Pareso, Ester Bulaya, Agnesta Lambert, Nusrati Hanje and Jesca Kishoa.

Others were Hawa Mwaifunga, Tunza Malapo, Asia Mohammed, Felister Njau, Naghenjwa Kaboyoka, Sophia Mwakagenda, Kunti Majala, Stella Fiao, Anatropia Theonest, Salome Makamba and Conchesta Rwamlaza. The group was expelled for allegedly acting contrary to the party’s position and failing to honour a summons issued by the National Council.

Following their expulsion, the MPs appealed to the party’s Governing Council, which upheld the decision. They subsequently sought legal redress in the High Court in an attempt to challenge the party’s move.

However, their legal battle hit a snag when High Court Judge John Mgetta dismissed their application on a technicality. The court sided with Chadema advocate Peter Kibatala, who argued that the MPs had sued a non-existent institution by naming the ‘Board of Trustees’ instead of ‘The Registered Trustees, Chama cha Demokrasia na Maendeleo-Chadema’.

Judge Mgetta ruled that the defect was substantial enough to warrant dismissal. Following the dissolution of Parliament in June 2025, the political landscape shifted as the 19 former legislators sought new political homes ahead of the October 29, 2025, General Election.

By late 2025, the ruling CCM, ACT-Wazalendo and Chaumma had emerged as the new platforms for at least 11 of the former Chadema members. While several, including Sophia Mwakagenda and Naghenjwa Kaboyoka, had previously held leadership or committee positions in the House, others actively sought CCM’s endorsement for the 2025 polls.

At the time of the realignments, Ms Mdee was among eight former members who had yet to publicly declare a new political affiliation and maintained that she wouldn’t join any other political party. She had previously criticised the process that led to her expulsion as being “clouded by intrigue and lacking transparency.

” As reports of her return continue to circulate in 2026, the lingering question remains whether the time is right for Ms Mdee to rejoin the party she once served with such vigour. For now, however, Chadema insists that its constitutional doors remain closed until a formal application is submitted and duly considered.

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Tanzania, Singapore sign agreements to deepen ties

Dar es Salaam. Tanzania and Singapore have signed a series of agreements aimed at strengthening cooperation in trade, investment and development, marking a new chapter in relations between the two countries.

The agreements were signed during a three-day state visit by Singapore President Tharman Shanmugaratnam, who held talks with President Hassan at State House in Dar es Salaam on Tuesday. The two leaders agreed to expand cooperation in economic development, digital transformation, agriculture, health and skills development, while enhancing collaboration between government institutions.

President Hassan said Tanzania had invited Singapore to establish a diplomatic mission in the country. She added that both nations had agreed to promote trade and investment, particularly in the digital economy, as Tanzania implements its Digital Economy Strategy 20242034. President Shanmugaratnam said the discussions also covered cooperation in tackling sickle cell disease, increasing investment in agriculture and supporting efforts to advance trade integration across Africa.

President Samia Suluhu Hassan leads the Tanzanian delegation during bilateral talks with a Singaporean delegation led by President Tharman Shanmugaratnam in Dar es Salaam on June 9, 2026. PHOTO | STATE HOUSE Five agreements and memoranda of understanding were signed during the visit. They cover the avoidance of double taxation, prevention of tax evasion, public service capacity building, trade facilitation and policy consultations between the foreign ministries of the two countries.

The visit is the first by a Singaporean president since Tanzania and Singapore established diplomatic relations in 1980. It comes as the two countries mark 45 years of diplomatic ties. The visit, which runs from June 8 to 10, is part of Tanzania’s efforts to strengthen economic diplomacy and attract investment, technology and expertise.

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Return of national players boosts Yanga, Simba, Azam

Dar es Salaam. Mainland Premier League giants Young Africans (Yanga), Simba and Azam FC have received a timely boost ahead of the resumption of the league on Friday following the return of several key players who had joined their respective national teams for the FIFA international window.

The league resumes with three matches on Friday, with Azam FC taking on Fountain Gate FC at the Sheikh Amri Abeid Stadium. In other fixtures, KMC will host TRA United at the KMC Complex from 6:30 pm, while Coastal Union will entertain Namungo FC at the Mkwakwani Stadium from 9 pm.

The return of international players is expected to strengthen the title-chasing sides as the season enters a crucial stage. The Tanzania national football team, Taifa Stars, returned home yesterday from Marrakesh, Morocco, where they had planned to play two international friendly matches against Uganda and Rwanda.

However, both matches were postponed due to sanitary and public health considerations. Yanga, who are defending the league title, had three players in the Taifa Stars squad: Ibrahim “Bacca” Hamad, Bakari Mwamnyeto and Mudathir Yahya.

Their return comes as a welcome relief to the technical bench ahead of the club’s remaining fixtures. Apart from the Taifa Stars trio, Yanga also had several foreign-based internationals away on national duty.

First-choice goalkeeper Djigui Diarra was with the Mali national team, striker Prince Dube joined Zimbabwe, while midfielder Allan Okello linked up with Uganda’s national team. The Cranes Reports from the club indicate that all the players are expected to rejoin training sessions today and tomorrow as preparations intensify for the league run-in.

Simba also had three representatives in the Taifa Stars squad namely Seleman Mwalimu, Nickson Kibabage and Vedastus Masinde. The trio are expected to join their teammates in training today as the Msimbazi Street side continues preparations for its upcoming assignments.

Azam FC, meanwhile, released four players to Taifa Stars. The quartet of Zuberi Foba, Aishi Manula, Elias Lawi and Pascal Msindo are expected to rejoin the squad between yesterday and today ahead of Friday’s encounter against Fountain Gate.

Other clubs will also welcome back their international representatives. Pamba Jiji goalkeeper Yona Amos, Namungo midfielder Abdulkarim Kiswanya, Mashujaa defender Mohammed Mussa and Coastal Union’s Bakari Msimu are all expected to return to training today.

Their return is set to add quality and depth to their respective squads as the race for league points resumes across the country. .

Zanzibar Heroes to tackle Uganda Friday in friendly

Dar es Salaam. The Zanzibar national football team, popularly known as the Zanzibar Heroes, is set to face Uganda, nicknamed The Cranes, in an international friendly match on Friday at the New Amaan Complex.

The match is scheduled to kick off at 8:15 pm, according to Zanzibar Football Federation (ZFF) Secretary-General Hussein Ahmada Vuai, who described the fixture as a key part of preparations for both teams ahead of upcoming international assignments. Uganda were originally scheduled to face the Tanzania national football team (Taifa Stars) in Marakesh, Morocco on June 5, but that match was postponed following a decision by Moroccan authorities due to sanitary and public health considerations.

The friendly against Zanzibar now provides Uganda an opportunity to regain competitive momentum ahead of future fixtures. Uganda is set to arrive in Zanzibar today, while the Zanzibar Heroes will also begin their training camp today in preparation for the match.

Head coach Hemed Suleiman “Morocco” has named a strong squad that includes goalkeepers, defenders, midfielders, and forwards. Goalkeepers selected are Ahmed Issa Haji “Bolo” (JKU SC), Hamad Ubwa “Baro” (Mlandege FC), and Suleiman Said Abraham (Namungo FC).

Defenders called up for the match include Salum Khamis “Gado” (JKT Tanzania FC), Said Mussa “Mbeki” (Mlandege FC), Mukrim Issa “Miranda” (Singida BS), Ibrahim Abdallah Hamad “Baka” (Yanga SC), Abdulmalik Adam “Agreiy” (Singida BS), Hussein Ali “Mbegu” (Simba SC), Abdallah Kheir “Sebo” (Singida BS), Mohamed Mussa Salum (Mashujaa FC), and Abubakar Nizar “Ninju” (Yanga SC). The midfield comprises Jamal Saleh “Jaku” (Mlandege FC), Fahad Msham Said (Meridiana Spain), Abdulnasir Mohamed “Casemiro” (Yanga SC), Abdulnassir Asaa “Gamal” (Mashujaa FC), Sheikhan Khamis Ibrahim (Yanga SC), Mudathir Yahya Abass (Yanga SC), Abdallah Yassin “Kundana” (Mbeya City), and Feisal Salum Abdallah “Feitoto” (Azam FC).

Leading the attack, the Heroes will field Mzee Hassan Mzee (Azam FC), Aimar Hafidh Abubakar (Azam FC), Mansour Omar Kombo (Black Sailor FC), Ali Khamis “Kokoro” (Fufuni FC), Mussa Hassan Salum (Mlandege FC), Ali Khatib “Inzaghi” (Uhamiaji FC), and Muslih Simai Ameir “Morata” (Kipanga FC). Coach Hemed “Morocco” Suleiman expressed confidence in his squad, describing the friendly as a platform to assess team readiness, build cohesion, and showcase Zanzibar’s football talent on the international stage.

Fans and football enthusiasts are expected to flock to the New Amaan Complex for what promises to be a thrilling night of competitive football, tactical battles, and a celebration of community and sport. .

Revealed: Shinyanga charcoal smugglers’ underhand tactics

Dar/Shinyanga. Every evening in Tinde, Samuye, Ishina Bulaindi and neighbouring villages in Shinyanga Region, long convoys of bicycles and motorcycles loaded with sacks of charcoal move along narrow bush paths cutting through farms and woodland.

Transporters avoid main roads where Tanzania Forest Services (TFS) checkpoints are stationed, instead using informal village tracks locally known as “njia za panya” (rat paths), which have become an alternative transport network. Residents describe the flow as organised, predictable and largely uninterrupted despite patrols.

Demand from Shinyanga Municipality and surrounding urban centres continues to fuel the movement, forming part of a wider regional charcoal supply chain serving households and small businesses. The trade is sustained by seasonal dry conditions that make rural forest access easier and by informal networks linking producers, transporters and traders.

Under the Forest Act (Cap. 323 R.

E. 2023), commercial harvesting requires permits, while transport of illegally harvested forest products is prohibited.

Regulations require Transit Passes to be verified at checkpoints under TFS and that offenders risk fines, seizure of equipment and prosecution under forest legislation. Enforcement duties rest with forest officers mandated to inspect consignments and confiscate illegal products.

TFS operations also include roadside patrols and intelligence gathering in hotspot areas. In practice, however, field observations suggest that significant movement occurs outside this framework as many consignments reportedly change routes repeatedly to avoid detection points.

Transporters say avoiding checkpoints is a deliberate strategy. “We avoid checkpoints because, without documents, you are stopped and get comprehensive questioning,” said Mr Dotto Leonard (not his real name).

“We use bush routes and know all stations,” he added, as transporters say coordination is essential for navigating rough terrain and avoiding interception. Bicycles carry up to four sacks while motorcycles move in groups, feeding urban demand.

Accidents are also common on poorly maintained bush paths, especially at night, as night convoys rely on scouts who monitor road conditions ahead. Movements begin in the evening when visibility drops and patrols are fewer.

Occasionally, enforcement officers chase transporters and confiscate bicycles, motorcycles and charcoal. Officers face challenges of evasion and occasional hostility during operations.

Despite risks, many remain in the trade due to limited livelihood options and difficult access to permits. Many young people depend on the charcoal trade as a primary source of income due to limited employment opportunities in rural areas.

Charcoal is aggregated at village points before being transported to urban markets. Some middlemen finance production and control supply chains linking rural producers to urban traders.

At Usanda gate, traders pay about S,000 per sack to proceed to Shinyanga. Leaders say the arrangement creates an appearance of regulation but leaves movement outside proper verification.

Village leaders say they are rarely involved in enforcement coordination and the lack of inclusion weakens cooperation mechanisms. Communities say they receive no benefit despite handling large volumes of charcoal.

Village authorities say limited resources hinder effective monitoring of forest product movement. Deforestation is visible with declining tree cover, kiln sites and expanding bare land.

Experts warn that continued tree loss may worsen soil erosion and biodiversity decline. Smoke from charcoal kilns also contributes to local air pollution, affecting nearby settlements, with health workers linking exposure to respiratory problems in nearby communities.

“We used to have many trees, but now the heat is rising and the rainfall pattern is changing,” said Ms Rebeka Hamduni, adding that trees are disappearing because charcoal has become the main business, affecting the soil. TFS says it conducts checkpoints and uses digital systems to verify consignments.

Digital verification systems include scanning of Transit Pass documents at checkpoints. Despite measures, violations continue across the harvesting and transport chain as Shinyanga is also a transit corridor, complicating enforcement.

Officers inspect documents, verify Transit Passes and confiscate illegal consignments. Authorities say success depends on cooperation from communities and stakeholders.

As informal village routes continue to undermine checkpoint enforcement, authorities continue awareness campaigns, but the challenge remains structural. Cross-agency coordination between forest and police units is ongoing but inconsistent.

Authorities say long-term solutions require balancing enforcement with alternative livelihoods. Sustainable forest management initiatives are being explored alongside stricter enforcement measures to curb illegal charcoal trade.

However, implementation challenges continue to slow progress across production and transport networks in the Shinyanga Region framework, which remains under pressure today. .

Tanzania targets expanded investment, trade ties as Singapore’s President visits

Dar es Salaam. Tanzania and Singapore have taken steps to deepen trade and investment ties as Singaporean President Tharman Shanmugaratnam began a three-day state visit aimed at unlocking fresh economic opportunities and strengthening bilateral cooperation between the two nations.

The visit, which commenced on Monday, June 08, 2026, and is scheduled to run to June 10, 2026 at the invitation of President Samia Suluhu Hassan, came as both nations sought to strengthen cooperation in trade, investment, logistics, industrialisation and skills development amid expanding economic links between Africa and Asia. President Shanmugaratnam was accompanied by a high-level delegation comprising cabinet ministers, senior government officials and business leaders.

The Ministry of Foreign Affairs and East African Cooperation said in a statement that the visit marked a new chapter in relations between the two countries, which established diplomatic ties in December 1980 and celebrated 45 years of cooperation last year. Economic cooperation has emerged as one of the fastest-growing pillars of the bilateral relationship.

Trade between Tanzania and Singapore expanded significantly over the past decade, with Tanzanian exports to Singapore rising from $43 million in 2020 to nearly $183 million in 2022 before easing to $142 million in 2023, according to figures cited by the ministry. Major Tanzanian exports included cocoa beans, coffee, cloves, copper, precious stones and frozen fish.

Imports from Singapore consisted mainly of fuels, machinery, electrical equipment, medical products, chemicals and other manufactured goods. “As Tanzania advances its ambitions for industrialization, digital transformation, infrastructure modernisation, and economic diversification, Singapore’s expertise in governance, logistics, urban development, innovation, and skills training offers valuable partnership opportunities,” the ministry said in the statement.

The ministry noted that the visit was expected to provide a platform for business leaders from both countries to explore new commercial partnerships and investment opportunities across key sectors of the economy. Singaporean investment has already established a notable presence in Tanzania’s energy, manufacturing, transport, construction and natural resources sectors.

According to the Tanzania Investment and Special Economic Zones Authority (Tiseza), 36 projects worth $535 million involving Singaporean investors had been registered between 1997 and July 2025. The projects were expected to create more than 3,200 jobs. Manufacturing accounted for the largest share of these investments, followed by construction, transport, agriculture, infrastructure development and natural resources.

Among the most significant investments was that of Singapore-based energy company Pavilion Energy, which acquired a 20 percent stake in offshore gas Blocks 1, 3 and 4, highlighting investor confidence in Tanzania’s energy sector. The visit was also expected to culminate in the signing of a Memorandum of Understanding establishing a framework for bilateral consultations between Tanzania’s Ministry of Foreign Affairs and East African Cooperation and Singapore’s Ministry of Foreign Affairs.

The arrangement would create a structured mechanism for regular political and economic dialogue, enabling the two governments to monitor progress and identify new areas of cooperation. Beyond trade and investment, Tanzania has benefited from Singapore’s technical assistance programmes, including scholarships, professional training and capacity-building initiatives.

The recently launched SingaporeAfrica Partnership Leading to Growth and Sustainability (SAPLINGS) programme for 20262028 is expected to support African countries, including Tanzania, in areas such as digitalisation, governance, port management, financial technology, healthcare, smart cities and trade facilitation. .

Cross-border mobile money inflows rise 33 percent to Sh698 billion

Dar es Salaam. Tanzania recorded a sharp increase in cross-border mobile money inflows in 2025, with the value of incoming transactions rising by 33.45 percent to Sh698 billion, in the wake of growing digital payments in regional trade and remittance flows.

According to the Bank of Tanzania (BoT), the volume of incoming cross-border mobile money transactions also increased by 32.76 percent to 5.73 million transactions, signalling greater reliance on mobile platforms for international money transfers within the East African Community (EAC), the Southern African Development Community (SADC) and beyond.

BoT Governor, Emmanuel Tutuba, attributed the growth to the continued expansion of the country’s digital payments ecosystem, driven by new market entrants, product innovation and a supportive regulatory environment. “The payment ecosystem continued to expand with the entry of new participants and innovative products, supported by a conducive regulatory and operating environment,” he said.

Mr Tutuba noted that the central bank had strengthened oversight through enhanced surveillance systems, improved risk management frameworks and closer engagement with industry players to safeguard financial system stability. He added that Tanzania was working closely with EAC and SADC member states to harmonise regulatory frameworks and deepen regional integration of payment systems.

While inbound transactions recorded strong growth, outgoing payments presented a mixed picture. The volume of outward transactions rose by 13.77 percent to 2.

52 million, but their value fell by 19.17 percent to Sh275.19 billion from Sh340.45 billion in 2024, suggesting a decline in average transaction sizes. The widening gap between inflows and outflows points to changing usage patterns, with mobile money increasingly being used for high-frequency, low-value cross-border payments, informal trade settlements and remittances.

“The trend reflects the increasing importance of mobile payments in facilitating cross-border payments within the EAC and SADC regions,” the central bank said in its National Payment Systems Annual Report 2025. The growth comes as Tanzania intensifies efforts to modernise its payments infrastructure and align with the G20 roadmap aimed at making cross-border payments faster, cheaper, more transparent and more accessible. The roadmap seeks to address longstanding challenges that have made international money transfers costly and slow, particularly for individuals and small businesses.

Under the framework, countries are targeting a reduction in the average cost of cross-border remittances to between one and three percent by 2027, while ensuring that at least 75 percent of transactions are credited within one hour and that fee structures and foreign exchange rates are more transparent. Although Tanzania has made progress in expanding digital payment infrastructure, the report notes that improvements for end users remain uneven, highlighting the need for further reforms to meet the 2027 targets.

The Bank for International Settlements (BIS) has identified harmonised data standards, stronger interoperability and broader access models as key enablers of more efficient cross-border payment systems. To accelerate progress, Tanzania has stepped up collaboration with regional partners through the EAC Cross-Border Payment System Masterplan 2025, which aims to lower transaction costs, promote settlements in local currencies and improve real-time interoperability among member states.

The BoT has also continued to strengthen cross-border payment capabilities through the Tanzania Instant Payment System (TIPS), which enables seamless transfers between banks, mobile money operators and other financial service providers. TIPS complements regional payment platforms such as the East African Payment System (EAPS) and the SADC Real-Time Gross Settlement (SADC-RTGS) system, both of which facilitate cross-border transactions among participating countries.

In addition, Tanzania is progressively adopting the Pan-African Payment and Settlement System (PAPSS), a continental platform designed to support intra-African trade by enabling transactions in local currencies. The system is expected to reduce reliance on offshore correspondent banking arrangements, which often increase transaction costs and settlement times.

The expansion of cross-border mobile money services is a key driver of regional trade, labour mobility, particularly in EAC. .

Governance changes key to sustaining state-owned firms

This is a continuation from last week’s article, which shone a light on outside interference that undermines the authority of those put in charge of state-owned enterprises. When these firms are regarded as departments within ministries, it gives certain individuals within the government a sense of entitlement and the mistaken belief that they can freely expend the resources of these entities.

A former colleague once shared that the entity he led had purchased vehicles for essential service delivery to customers, only to be asked by the ministry to provide two cars from the purchase for its own use. He was bold enough and declined.

Unfortunately, this is a common occurrence. Despite the need for these entities to deliver vital services to customers, they are routinely asked to let go of their vehicles as though they are redundant.

When managements send inquiries about these requests to higher authorities, they are sometimes told that the individuals making such demands were not even authorised to do so. It is crucial to establish a law that explicitly states that these entities are independent and governed by their respective boards of directors.

To enable these entities to compete effectively, it is essential to empower those responsible with the ability to act without interference. The government should ensure that state-owned enterprises operate without unnecessary encumbrances.

Issues concerning shareholders should be addressed during annual general meeting. If the results are unsatisfactory, the board, chairperson, or managing director can be replaced.

Constant interference flies in the face of the principle of good governance and undermines managements and boards, which are ultimately responsible and accountable for running these institutions. Another aspect that adversely affects performance is the procurement process.

Many state-owned enterprises are subjected to the same procurement procedures as those followed by other government departments despite facing stiff competition. Their competitors, on the other hand, finalise decisions swiftly and start offering services without delay.

In some cases, tender advertising alone can take up to two months, followed by tender board meetings, approvals from commissions and contract vetting by the Office of the Attorney General. These processes come with costs and if the CEO is not bold enough, memos and external interferences can further complicate matters.

As a result, these entities experience delays in project implementation, which, in turn, increase costs. Another key factor is the appointment process for board chairpersons, members and CEOs of these organisations.

In most privately-owned firms, these appointments are made through competitive processes, which often involve headhunting a few qualified individuals and subjecting them to rigorous interviews conducted by industry experts. This process typically ensures that the best candidates are taken on board.

However, the procedures in state-owned enterprises are quite different. Appointments are often made without interviews or competition among candidates, which can undermine the selection of qualified individuals.

While it is understandable if an appointee comes from a similar position in another company, the lack of competition can hinder the on-boarding of the best possible candidates. If we want meaningful changes, we must replace the current appointment process with one that fosters competition.

Positions should be advertised, allowing individuals to apply, or in cases of headhunting/poaching, a few suitable candidates should be selected on meritocracy based on their qualifications and then subjected to rigorous interviews. These processes will ensure that these institutions are led by competent individuals.

By adopting such procedures, we can avoid situations where CEOs or board chairpersons are appointed without any industry knowledge or leadership experience. This approach will also help prevent the appointment of board members who lack industry expertise and leadership backgrounds, ensuring that those in decision-making roles are qualified and prepared for their responsibilities.

When it comes to budgeting, in private companies boards of directors typically have the final say on budget approvals, but in state-owned firms, final decisions often require ministerial approval. While the ministry represents the main shareholder, in this case the government, and appoints the board to safeguard its interest, it is the board’s role to oversee management, set targets through the budget and ensure management executes these budgets in the best interest of the shareholder.

Instead of interfering during the process, the main shareholder (government) should raise any concerns during the AGM, allowing the board and management to operate effectively and independently in the interim. In the next and the last instalment of this series, more will be shared with regard to those entrusted with running these institutions being reduced to mere figureheads and conclusions and recommendations for improvement will be provided.

Dr Muhsin Salim Masoud is a seasoned banker and academic, who has also served as managing director of the People’s Bank of Zanzibar and Amana Bank. [email protected] .

Colonisation and the death of cultural systems: Is the impact reversible?

Though colonisation and slave trade are considered by some as things of the past, they remain subjects of conversation due to their impact on the continent of Africa. Africa as a whole was colonised by Western countries for over a century, though the slave trade had persisted for over four centuries.

Tanganyika was colonised by Germany from 1884 to 1919, and by Britain from 1919 to 1961. Zanzibar was colonised by the Portuguese from 1498 to 1698, then by the Omani Sultanate from 1868 to 1890, and by the British from 1890 to 1963. Colonisation impacted the entire societal life of African communities as it brought about not only new ways of doing things, but also of thinking, believing, and living. A large-scale impact on how people live is, in other words, an impact on their ‘culture’ which sociologists define as ‘a people’s way of life.

‘ The time of colonisation ‘proper’ spans a century, about three to four generations if we consider a generation to be 25 to 30 years. This period severely disrupted cultural continuity, creating a significant disconnect between pre-colonial ways of life and today’s traditions and history.

It has also only been 110 years since the abolition of slave trade in our land in 1916, just four generations before the young adults of today. Rather than assign blame, it is important to recognise that, continent-wide, the most distressing years in African history are the epochs of slavery and colonisation.

We can begin by critiquing the labelling of cultures as “primitive.” A saying goes, “If you want to kill a dog, give it a bad name!” This was exactly what happened.

Indigenous industries, artworks, artefacts, customs, beliefs, and languages were all labelled as “primitive”, meaning meaningless, “uncivilized,” and not worth anything. However, reason defeats such a position, as cultural worth is accorded equal dignity across cultures.

The measure of technological and social progress was what the colonisers had in Europe; it is a man-made ideal. Moreover, colonisation suppressed and devalued the already developed systems of knowledge, self-governance, religion, trade, law, and sustainability practices that had evolved over centuries and were deeply rooted in the communities in question.

Young people learnt the best trade secrets of their traditional communities, which in turn assured the community not only its sustenance, but its sustainability. In place of all these functional and systemic legacies, they (colonisers/colonialists) took it as their duty to “civilise” the African societies.

This disruption, among other things, has endured as a legacy of those complicated years, which have left only thin and weak threads linking the generation today with the historical, linguistic, artistic, and cultural corpus that existed among our people ten generations ago. The question now comes: Can the young generation today maintain the integrity of what they received in fragile parts, and hand it over as a meaningful legacy to those who are yet to come? When we look at African governance, despite its variety, we see one thing in common: instability and fragility.

Why is it this way? I believe it is because we are learning a new way to govern ourselves, a way that has no organic roots with who we are or with our cultures. This is not a justification of the chaotic socio-political state in most African countries, but a call for a deeper look into the fundamental causes of the chaos and an ‘almost-anarchy’ violent state of affairs all over the continent.

In history, monarchies thrived in African kingdoms, with some emerging even as threats to European kingdoms of the time. But the moment democracy was introduced, the chaos rather thrived, proving it to be a system that only works after a long time when the independence of the legal system has matured enough to safeguard the democratic principles chosen to guide the socio-political space without bias.

Even deeper questions can be asked regarding the authenticity of African states’ sovereignty as independent states that first manage their affairs for the good of their people, as their first priority. The wave of neo-colonialism embedded in the global economy hits hard on African states, making us not truly free due to debts, alliances, etc.

, without which our affairs in the global space can be even more complicated. The death of our cultural systems, be it organic or enforced, hits hard on society today, as we would be better off living in a framework engineered inside out by our ancestors, as such systems mature with time.

Today, most of our education excludes what we need to know about our roots; we tend to go more global. We use a curriculum built by people who do not even use the same one in their countries; a stumbling block many African countries will take time to surpass.

What changes a nation and brings genuine growth is the worldview of who they are as a people in the genuine sense, and that is impossible without a deeper grasp of history and rootedness in their cultural systems. Shimbo Pastory is an advocate for positive social transformation and a student of the Loyola School of Theology, Ateneo de Manila University, Philippines.

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