Govt runs 300 billion/- budget surplus as spending cuts mount

THE government ran a budget surplus of over 300 billion/- in the third quarter of this year (July-September) despite growing concerns that drastic spending cuts being implemented by the state are now threatening to slow down the country's economic growth
The far-reaching cost-cutting measures announced by President John Magufuli's administration since coming into office in November last year have become widely blamed for causing a liquidity squeeze in the economy that appears to be getting tighter by the day.
This has in turn had a ripple effect on the private sector - the engine of the country’s economic growth - leading to a decline in revenues and profits for various small, medium and large-scale businesses across several industries and sectors, according to analysts.
But the extent of the public spending cuts have now been exposed by the latest economic bulletin report issued by the Bank of Tanzania (BoT) yesterday for the third quarter of the year (Q3 2016).
"During the quarter ending September 2016, the resource envelope — revenue and grants — amounted to 4.058 trillion shillings, while expenditure amounted to 3.856 trillion shillings. Therefore, a surplus of 326.2 billion shillings was realised," said the BoT report.
A budget surplus occurs in government when there is either an increase in income through an increase in tax collection or a decrease in government expenditure - or both.
While some economists say such a surplus is an indication that the government is being effectively managed, other analysts warn that it may be the result of over-zealous public spending cuts, and could hurt the economy as a whole in the long run.
According to the BoT report, the government used the cash windfall to repay domestic and foreign obligations amounting to 212.8bn/- and 113.4bn/-, respectively.
While the government ran a budget surplus in Q3 2016, it recorded fiscal deficits in both the first and second quarters of the year, which were financed through both domestic and foreign loan sources.
The central bank says while government budgetary operations during the quarter ending March 2016 ran a deficit of 95.5bn/-, this drastically increased to a staggering 1.175 trillion/- deficit in the second quarter (April-June).
Although the government expects the economy to grow by 7.2 per cent this year from 7 per cent last year, there are several warning signs that all is not well.
The fifth phase government kicked off with an all-out campaign to cut wasteful government spending, crack down aggressively on tax evasion, step up the fight against high-level corruption, and withdraw hundreds of billions of shillings of public funds 'parked' in commercial banks.
But one year down the line, the indications are steadily growing that the nation’s entire economy could be either in a deep state of anxiety or on the cusp of a slowdown, according to analysts.
Commercial banks have recently reported high levels of non-performing loans (NPLs) at unprecedented levels as individual and company borrowers find it more and more difficult to repay their loans against a backdrop of subdued consumer demand and purchasing power across several sectors.
An increasing number of businesses are reporting declining revenues with some companies resorting to downsizing and laying off employees.
Although official figures are hard to come by, some business leaders claim there have been job cuts and slower rises in the creation of new jobs over the past year, while the ordinary man and woman on the street complains that the amount of money circulating out there has become drastically curtailed.
Some analysts say the raft of severe cost-cutting initiatives embraced by President Magufuli's administration now resemble outright austerity measures, with the economy suffering from a 'paradox of thrift.'
The paradox of thrift refers to an increase in saving which leads to a decrease in aggregate demand, and thus a decrease in gross output which will in turn lower total saving.
The International Monetary Fund (IMF) warned the government in October about the ongoing liquidity tightness and noted that the state was actually spending less money than it collected, hence resulting in a general business slowdown.
“We are almost halfway through the 2016/17 financial year, but very little development expenditure budget has been released,” Razack Lokina, professor of economics at the University of Dar es Salaam (UDSM), told The Guardian in an interview.
“Usually, the major driver of economic growth is government expenditure itself... so to stimulate the economy, the government should increase spending,” Lokina added.
Analysts have advised the government to ‘prime the pump’ and stimulate an economy through increased public spending and tax reductions.
Prof Lokina said one way to stimulate the economy would be for the government to settle its mounting domestic debts which topped 10 trillion/- at the end of September; a move that would allow businesses to settle their obligations with commercial banks.

Azam, Mtibwa share spoils in friendly

MAINLAND Premier League teams of Azam FC and Mtibwa Sugar battled to a 2-2 draw in a pre mid-season friendly played at the former's venue, Azam Complex, in Dar es Salaam on Saturday.
The two teams used the game to prepare for the second half of season which is scheduled to kickoff at the weekend.
Azam coach Zeben Hernandez, swapped two squads during the game with the first played in the opening 45 minutes and the other featured in the remaining part of the game.
Ghanaian import Enock Atta Agyei, opened the scoring for Azam FC on the 14th minute through a penalty after Mtibwa Sugar keeper, Said Mohamed, had fouled Azam striker, Francisco Zekumbawira, inside the penalty area.
Azam put stellar displays in the opening half but conceded an equaliser on the 28th minute when Mtibwa’s experienced midfielder, Shaaban Nditi, banged the ball in for his team. The two sides were locked to the 1-1 draw at the end of the opening half.
Azam striker Yahaya Mohammed, who replaced Agyei on the 61st minute, notched the second goal for the hosts but Mtibwa Sugar midfielder, Ibrahim Rajab ‘Jeba’, who had played for Azam’s junior outfit in the past, equalised through a penalty kick on the 90th minute.
Agyei, who is among Azam FC’s newly recruited players, enjoyed plenty of acclaim from fans when he was substituted for Mohamed, thanks to the former’s impressive showing in the game.
Azam technical bench used the game to, as well, assess the performance of two other new players, defensive midfielder, and Cameroonian Stephane Kingue and Ghanaian defender, Yakubu Mohamed, who crossed over from Ghana’s Aduana Stars.
Azam will kick off the second half of the season by facing another Dar es Salaam outfit of African Lyon at the Uhuru Stadium on December 18.
In Mtibwa Sugar’s opening game, the squad will travel to Coast Region to face the latter’s outfit, Ruvu Shooting, at the Mabatini ground, a day before.

LUGALO LADY EXCELS IN DARTS TOURNEY

BEATRICE Petro of Lugalo Darts Club has proved she is still the player to beat in club competitions in Dar es Salaam after winning the singles event of a special tournament for women staged in the city on Saturday
Dar es Salaam Darts Association (Dada) organised the one-day event held at Smart Park Lounge under sponsorship from several members of the region’s darts fraternity.
Petro showcased her prowess on the dartboard, tormenting opponents with ease in the singles event to qualify for the best of five legs’ final and eventually, won silverware with victory over teammate, Sophia Seif.
The doubles’ event of the tournament also saw Petro hold sway as she teamed up with Seif to overcome Ibukoni Club’s Mariam Mgonja and Joyce Laizer in the final, also played in the best of five legs’ format, to lay hands on the top honour.
Lugalo Club, again, had the last laugh in the tournament’s team event, in which Petro and Seif emerged as champions with victory over team mates, Anna Saidia and Elizabeth Musa, in the final.
Ibukoni Club’s Mgonja and Laizer won the third position in the event with victory over Lugalo’s Pendo Mbogo and Calvary Emily in a playoff.
A total of six teams took part in the event, which was played in round robin format in the early stages and the top four teams then progressed to the knockout stage.
Petro received 60,000/- for emerging as champion in the singles event, Seif took 40,000/- for securing the runners-up spot, third-placed Laizer got 30,000/- and Irene Kihupi, who finished fourth, walked away with 25,000/-.
Petro and Seif were awarded 70,000/- for emerging as champions in the doubles event, runners-up Mgonja and Lazier took 50,000/-, third-placed Saidia and Musa received 30,000/- and 15,000/- went to fourth-placed Mbogo and Emily.
A trophy and 80,000/- were presented to Petro and Seif for winning the team event, runners-up Saidia and Musa received 60,000/-, third-placed Mgonja and Laizer 40,000/- and 20,000/- was presented to fourth-placed Mbogo and Emily.
Petro’s triumph in the tournament has seen her maintain impressive showing in recent competitions as she also won the women’s singles event of this year’s Dar es Salaam regional club championship played at the same venue from December 3 to 4.
Dada chairman, Azim Haji Mohamed, who was the special tournament for women’s guest of honour, expressed his appreciation to all of the participating players for honouring the event and insisted on the need for the latter to step up their game.
“In most of the games I have seen, female darts players have been too hasty when aiming darts at the dartboard and that is why the players have been getting poor scores. The players need to exercise patience and concentration, if they are to excel in games,” he said.
Redempta Mwebesa, who serves as Tanzania Darts Association (TADA) vice chairperson and was also among the competition’s sponsors, said the event geared towards attracting more women to the sport.
“We, as well, want to insist on the need for each of the darts outfits in the city to have at least two female players. Dar es Salaam is lately the region with the big number of darts clubs in the country but the region, surprisingly, has very few female players,” Mwebesa said.
“All in all, I’m pleased with stiff competition and enthusiasm showcased by the players in the event.”
She expressed sincere regards to Eliuter Mtenga, who is Dada vice-chairman, and Smart Park Lounge’s owner, Straton Mtei, who also offered financial support for the tournament, for their willingness to play an active role in promotion of darts among women.
She said members of the darts fraternity are looking into the possibility of hosting the next edition of the tournament in Moshi, in a bid to step up efforts to promote the game among women in the rest of the country.

Africa urged to eradicate barriers to aviation growth

African governments have been urged to facilitate the sustainable development of the aviation industry, as well as recognise and appreciate the critical social and economic value of the industry
Speaking at the African Airlines Association (AFRAA) 48th annual general assembly on Wednesday, Dr Jorum Gumbo, the Zimbabwe Minister for Transport and Infrastructure Development, said the aviation sector is critical to the continent’s development efforts.
Dr Elijah Chingosho, the African Airlines Association (AFRAA) secretary, called on governments to open up skies to ease cost of operation and facilitate the growth of the industry on the continent. According to Chingosho, this will help boost connectivity and enhance intra-Africa trade and, therefore, help foster sustainable development on the continent.
“The move will spur the development of African aviation which currently accounts for less than three per cent of global traffic,” he said at the meeting in Victoria Falls, Zimbamwe, adding that intercontinental traffic is dominated by non-African carriers.
“African governments should, therefore, remove non-physical bottlenecks to the movement of people and goods, such as restrictive visa regimes and tedious customs clearance procedures,” he said.
The expert noted that there is also need for policies that will help reduce the high industry costs, protect the continent’s rich bio-diversity, as well as promote infrastructure development to cope with the growing needs of the airline industry and the realisation of a single African air transport market next years.
Michael Madanha, an aviation expert, said industry players must work together to address the challenges facing the aviation sector in Africa to help make it more profitable and sustainable.
Meanwhile, Rwanda was selected to host the 49th African Airline Association annual general assembly in November 2017. The two-day conference and exhibition is expected to attract up to 500 delegates from across Africa.

Singer reveals why she officially introduced her South African ex as her boyfriend and not her other Kenyan exes

In mid-February there were rumours that Avril has split up with her long-time boyfriend, a South African man by the name Tinashe Leslie Mugadza.

This was after the two lovebirds spent Valentine’s Day away from each other triggering the tasteless hashtag #poleAvril. A hashtag that came at a wrong time because at that point, Avril’s late dad had been admitted to the Intensive Care Unit (I.C.U.)

A few months after the hashtag Avril confirmed the break-up and disclosed that they had broken up since they had started getting distant after her father’s tragic passing.

But despite their relationship not making it to the aisle, Avril admits that Tinashe was a serious man and that is why she officially introduced him to the public. Unlike her other celebrity exes like DJ Crème and non-celebrity exes.

It’s only with my ex that I officially came out and introduced as my man. All these other times I’ve never ever revealed anything to anyone. If I’m dating someone it’s probably on the low-low, because I really don’t like that attention .I’ve always been that artiste if you see me in the club it’s probably twice in a month or twice a year.” She said

Apart from her reserved nature Avril disclosed that Tinashe was introduced to the public because he gave her a ring, which symbolised something deeper.

“People that I dated before were not very serious.” She said in regards to her Kenyan exes , “I cannot profess you are my man if your clearly are not sure if you are my man or not.”

This is because she didn’t want that awkward situation of introducing her boyfriend and yet he is a boyfriend to many other girls.

2: Former mother-in-law actress ditches the ‘mbalas’ (weaves) for a well-shaven and dyed look

Sometimes showing your commitment to a role takes more than a wardrobe change, it takes a lifestyle change, weight loss or weight gain. And that is something many Hollywood actresses and actors have done in award-winning movies.

Charlize Theron gained 30 pounds (which is ALOT by Hollywood's standards) for ‘Monster’, a movie that won her an Oscar, a Golden Globe Award for Best Actress in a Drama and a SAG Award. In the movie, Theron a South-African-based-in-Hollywood had the massive weight gain to perform the role of Aileen Wuornos; one of the world’s most prolific female serial killers.

Aileen, the killer Charlize portrayed gained notoriety because women are generally not serial killers, most murders committed by women are rarely of random strangers, its mostly to a person they are close to.

But Charlize is not the only one who experienced a massive weight change. In 2010; Mila Kunis lived on cigarettes and 1,200 calories a day to portray the role of ‘Lily’ a ballerina in 'Black Swan'.

Aside from Mila losing so much weight, 50 cent lost about 25 Kgs in 2 months thanks to a strict liquid diet for his starring role of a cancer patient in 'Things Fall Apart'.

Closer home, actresses are also making a few changes in their lives for the sake of their roles. Thankfully its not losing 25 Kgs in a few months (which is dangerous by the way) but with subtle yet significant changes like a hair change.

Like Catherine Kamau who let go of her precious weaves for this Carol -Odero like look in an upcoming production with Phil-it-Productions.