debate of impact on economic meltdown in TZ rages on

THE ECONOMIC MELT DOWN

-Effects on Tanzania Trade Financing

By Diaspora writer
I would like to write a response to my good learned friends Dr Shayo and Mashaka about the economic meltdown debate in Tanzania, First of all I would like to use this opportunity to commend them on the great insight that they have shown in their debate and also commend the good work of the adminstartor of our blog ya Jamii which has given a voice to the voice less.

This is my case:The current Economic crisis reflects a general movement of disinvestment on a global scale .This is due to so many factors including the collapse of confidence in the Banking sector that followed the crisis in the USA subprime property market which sent a shock waves across the entire system globally. As in Africa terms including Tanzania this has led to damage in Trade .The situation is so bad that the African Development Bank devoted its last AGM almost exclusively to this issue.

As Mr Mashaka and Dr shayo wish to suggest, this is not a Tanzania problem alone as the case of MPs having a lavish lifestyle. Let’s look at the case of Kenya Flower industry. Not only does the Kenya farmer had to contend with drought around Mt Kenya , but also had to juggle currency fluctuations that eroded their earnings.

To make matters worse, due to this crisis , the consumers in the west have ditched discretionary purchases, prompting the flower industry to shrink by 35% .also farmers access to trade finance – the low risk short term borrowing where assets or goods are secured as collateral that tides a business over until payment-is being hit as banks reduce their credit lines.Do you still wish to be a Kenyan?

Over the past year all over Africa credit crunch is affecting the cost , volumes and modalities of international Trade finance. The cost of trade finance has soared , volumes have plunged and Banks have moved away from the Funded open account facilities to an increasingly ‘cash Terms’ basis as counterparty risks rose rapidly.

This confirms the fact that the global economy is complex and interlinked –there is no turning back on Globalisation which Tanzania is Part of .Global Trade ,Finance and investment bind nations together for better or for worse.
Despite these difficult times , Statistics show that there is a sustained economic growth above 5% in many African Nations including Tanzania .Even though those rates are expected to slow down in the near term, however the pace of growth will out pace the levels that are likely to be achieved in the developed economies like Tanzania

What is very important for our leaders is to focus on the Tasks ahead and work out what they can do to the best of their knowledge and belief to manage this turbulence, and create sustainable growth which improves the lives of the wanainchi .

Mashaka and Shayo remember very well the case of south Africa. When the prospects of achieving the goal of democracy. Seemed distant, and the obstacles at times insuperable, sticking to the task delivered success. The lessons learnt is that you cannot as a leader anticipate everything , but what matters is our leaders to keep our house in order , so that they are best placed to face whatever opportunities or instabilities.

Remember that this fourth phase of presidency has inherited an almost bankrupt treasury and a society broken by Mafisadis .They have almost inherited an economy that has been brought low by external forces and an impatient population tired of living In Poverty and also a small but rowing group that lives on the internet and think that they know it all.

The challenge and Task that I give Mashaka and Dr Shayo is that they know that in Tanzania ,Trade financing is channelled via either top tier local Banks –with established relationship with foreign correspondent Banks like Barclays Bank.

Reports show that these foreign Banks are not rolling over existing credit lines and a few have cancelled funded over draft facilities without prior warning and this is hurting our nations. Since most of the headquarters of these Banks are based abroad where BOTH Dr Shayo and Mashaka live, how can they help?
Tanzania is an independent country.

This independence gives it the right to govern , campaign for elections as early as practically possible , doze in the seats in Dodoma and make their own mistakes .Our neighbours who don’t doze in tyheir parliamentary seats are busy fighting each other and busy making laws to attack their neighbour over a small barren island called migiro.

Dr Mashaka and Dr shayo , I believe you are not well placed to know the MPs that are not good for their people since you live abroad. Let the local people decide who is good for them .

Does the British MP salaries and expense

scandal make you proud about western democracy and transparency?

Long live Tanzania