John Mashaka |
Major economies, large investors, and wealthy individuals are diverting their attention from once lucrative and profitable companies, to gold –yellow metal- investments. Tanzania is Africa’s third largest gold producer, after South Africa and Ghana. According to Business Week Magazine, in the year 2010, Tanzania total gold output was 44.6 tons or 1573.219 ounces, and I am not sure how the country benefited out of this natural resource.
In a perfect world, the above figures would have fetched $2,831,793,665.31 enough money to prop-up our collapsing economy, and the drainage bound currency (Tsh). In recent months, Investors have become extremely jittery, while the financial markets continue with their volatility caused by the fear of the American economic uncertainty, and the European debt crisis. Both of which could potentially devalue some of the major global currencies, such as the American dollar, Euro and the British Pound. Gold is now the “safe haven” for the millions of worried investors.
Our previous economic discussions touched on gold, as being one of the potentially safer alternatives -insurance policy- to saving our country’s ailing economy. Tanzania gold output alone was enough to end the chronic energy (electricity) curse. Backed by gold bars, our currency would not have been where it is today. In today’s electronic trading, gold traded at $1,817 an ounce, and the demand which is an opportunity for Tanzania is steadily growing. Most analysts see gold at around $2,000 an ounce towards the end of 2011 or before summer of 2012. Unfortunately, Tanzania’s gold has not done the country any good but continued curse to the natives, whose land is producing gold, to say the least.
Many investors who previously made fortune in the prime-mortgage, have shifted their focus, and now trying to play it safe, by converting both of their liquid and fixed assets into golden bars. With the obvious subsiding of the global markets and economies, and inflation set to soar, gold is becoming the option of last resort; purchase of gold future contracts, swaps and even physical bars of the yellow metal, is becoming a rush for many investors across the globe with enough disposable income, and not sure of Tanzania’s strategic approach on this opportunity?
In the past, gold investment disappointed many investors due to the fact that, people did not necessarily trust the dollar, but had faith in the US government which backed up the currency. And this has been the case for other major currencies. Today, the matter is totally different. From investment point of view, the current gold rush is fear, and uncertainty driven, and no currency can stop its demand. Tanzania is producing and shipping tons of gold; a rare metal richest nations, world wealthiest individuals, and corporations are dying to have.
Despite the fact that, our land is producing a lot of gold, it is shameful to say, that the country’s –Tanzania- economy and currency have been inadequately backed by this precious metal. The demand for gold is not profit driven, but a way to save some of the most liquid assets in longer terms. Investors are not running into gold and other precious metals to make a fortune, many are running into this precious metal with hopes of simply saving their most liquid assets (cash) from further damage. Gold is the best alternative to the fluctuating currencies, deteriorating treasuries, corporate, municipals bonds and other forms of investments.
Those in gold purchasing frenzy believe that, debt or over borrowing by many nations trying to stabilize their economies, will lead to overspending and consequently explosion of inflation which could help gold to rise in prices. It is imperative to say therefore, that, gold is Tanzania’s strategic weapon and asset that could starve off economic nightmare the country is faced with. The Parliament and the executive branch of the government must now review and perhaps nullify most of the existing gold related contracts benefiting foreigners more than the country itself.
These are extremely difficult, economic times, which need extra ordinary measures and decisions. Considering Tanzania’s wealth, both human and natural, one can only wonder why a country so rich; sitting on gold, to remain a charity case in the eyes of the world. It is my hope therefore, that our “leaders” reading and monitoring the global economic progress, will or have strategized on how our country can immensely benefit from this gold rush. We hope our government can use this precious metal to her advantage. The government of Tanzania must shift/increase its reserves with domestically produced gold, as opposed to the United States Dollar, Euro and the British pound. The country needs to wake up, it is a gold RUSH!
Mungu Ibariki Tanzania
John Mashaka,
John.mashaka@yahoo.com
John.mashaka@yahoo.com
Tanzania sold it's gold mines to foreign investors fulfilling the IMF condition namely structural adjustment. As such the real beneficiary of high gold price are foreign investors who own gold mines. Let's hope they will start to declare profit So that we can earn the 5% royalties and corporation tax.
ReplyDeleteAsante Sana John for the insight, this is very touching indeed
ReplyDeleteww mashaka subiri wabeba boxi waamke wakute atiko yako..nasubiri kuanza kucheka.
ReplyDeletehii sirikali ya wakina magamba na masaburi wanaofikiri kutumia nyuma zao. wasubiri nguvu ya.....siku ya wakina ben ali na wanao kuingia tanzania
ReplyDeleteNullify contracts?! Contacts that benefit those in the gold rush and desperately seeking for more gold?
ReplyDeleteJaman,hizi microfinance za kibongo na riba zao. waalimu na wanajeshi/polisi ndio wanaumizwa. riba zinaenda mpaka asilimia mia mbili. serikali iko wapi?wabunge kimya? inasemekana baybort ni ya mke wa rais mstaafu na pia akina warioba nao wamo. hawana huruma? NSSF walishapewa dhamana ya kuanzisha microfinance kwa ajili ya wanachama wake,lakini kimya!! ni makusudi tu ili wa tz tuzuid kunyonywa. Tunawaomba wabunge wetu wa cdm watusaidie. Regulations katika riba kumlinda mkopaji, na nssf nao watueleze kulikoni? nssf wangeweza kuajiri watu wengi sana kwa kutekeleza hili,na ingekua msaada mkubwa kwani wanachama wangeweza kopa pesa zao ambazo zipo nssf wakati wao walia na ada za watoto. Waheshimiwa,msaada
ReplyDeleteWaraka huu ni kwako wewe hasidi wa upendo, utulivu, na amani ya taifa letu la Tanzania unayejiita Eliakim Mallya na wapuuzi wenzako. Sina uhakika kama kweli jina hilo ulilotoa ni lako, maana kina cha woga na ujinga ulionao, havikuwezeshi wewe kuwa na ushujaa wa kutoa jina lako la kweli. Ninasikitika kwamba imebidi watu wenye heshima zetu tukae chini kutoa kauli kuhusiana na upumbavu uliowekwa kwenye mtandao na mtu asiyekuwa na heshima wala adabu kama wewe, na wapuuzi wenzako wengine mlioko katika kapu moja.
ReplyDeleteKwanza, tendo la kumvunjia heshima kiongozi wa taifa letu kwa kutoa kashifa iliyotolewa, pia ni tendo la kulivunjia heshima taifa letu na watu wake, jambo ambalo linakufanya wewe Eliakim Mallya na wote mnaohusika na kashifa hii kuwa mahayawani, maana hayawani hana aibu.
Pili, ukosefu wa utimamu wa akili yenu nyie mhusikao na kashifa hii, pia unajidhihirisha kwa jinsi mlivyojaribu kukosea heshima Watanzania tunaoishi Marekani kwa kujifanya kutuwakilisha wakati nyie ni vivuli. Ni mtu gani awezaye kusikiliza maneno yatokayo kwenye vinywa vya wapumbavu? Ninawajutia kuwa mmesoma kwa kiasi fulani lakini hamkuelimika hata kidogo.
Tatu, ninyi ni viumbe msiokuwa na tone la shukurani kwani pamoja na kwamba Tanzania iliwasomesha na kuwafikisha hapo mlipo (hamwezi kulikataa hilo), mnaanza kuisaliti na kuibeza. Hali kadhalika ninyi ni wasaliti wa utamaduni, mila na desturi za taifa letu na watu wake. Hadhi ya Watanzania iko katika kauli zao njema nyumbani na hata ughaibuni-mahali popote walipo. Taifa letu limepata sifa kubwa sana kutokana na ubora na mwenendo wa tabia za watu wake dunia nzima. Leo hii, watu wachache mliochanganyikiwa mnataka kuupaka matope ubora wetu; hatutaruhusu wala kukubali vitendo na mienendo ya kihuni.
Nne, wahenga walisema debe shinda haliachi kutika, na debe tupu haliachi kuvuma; ninyi mlionena na kuchapisha uvundo wenu huu, ni mifafano dhahiri ya methali hizo. Kwa vile Eliakim Mallya na wenzako mmetota, endeleeni kutota katika tope la ujinga na utovu wa adabu kama walivyo wahaini wa aina yenu.
Mwesigwa. Blandesi
mashaka, very good idea. you are a brilliant man. That should tackle inflation, giving strong backing to the tanzania currency
ReplyDeletemaoni yako bwana mashaka kama kawaida ni mazuri mno, ila sasa serikali kama ya tanzania unategemea nini? nyie mnapoteza mawazo yenu, kwa maana serikali hii ya kishikaji ni heri wakacheze kiduku kuliko kuumiza vichwa vyao kufikiri. ni serikali iliyolaaniwa. wewe bebe boxi utulie marekani badala kuangaika na hili shamba la bibi. hii nchi wanaofaidika ni wazungu na wageni
ReplyDeletemashaka. let me ask you a question, is our president expert in gold mines, banks, telecommunications, oil field and others? How he will run different kinds of businesses under the umbrella of the bureaucratic apparatus of his government? Of course, this initiative will create more jobs for his friends and the friends of his friends.as usual in tanzania
ReplyDeletemyonge mnyongeni lakini mpeni haki yake. huyu kijana anaandikaga vitu vya maana sana ambavyo vingetafsiriwa kwa ksiwahili vingegusa watu wengi sana. hii makala ni nzuri kweli kweli. serikali kusema kweli inabidi itoke usingizini
ReplyDeleteMASHAKA WAIT, FREEDOM IS COMING TOMORROW AND OUR GOLD AND LAND WILL BE FREE FROM SULTANIS AND MA MWINYI. WATU WASIOELEWA NCHI INAELEKWA WAPI
ReplyDeletemashaka kweli unakipaji, ila haya maandiko yako yanawagusa sana watawala. hawapendi kusoma maneno kama haya, hasa mafisadi wanaotumia masaburi yao kufikiri.
ReplyDeletegood job jonhn you are very cleaver and good thinker for our country of tanzania that is dying because of selfshi readers who only think of themselves and the countery is very rich. thank you for skeaping on our behalf . may god blss you jon
this government dont care of the gold. dont waste your time writing about it
ReplyDeleteJAMANI NAPENDA KUULIZA. HILI SWALA LA DIASPORA LA KUWATAFUTA WAWEKEZAJI NA WATU KUJA KUFANYA KAZI FULANI HUMU NCHINI, VIJANA KAMA HAWA WENYE UELEWA MKUBWA UCHUMI W DUNIA UNAVYOENDESHWA WAKILETWA HAPA NCHINI SERIKALI INASHINDWA KUWALIPA? MBONA WAZUNGU WANALIPWA MABILIONI. NASHANGAA SANA HII SERIKALI. SASA HAWA WANAFANYA KAZI HUKO UINGEREZA WAKATI NCHI INATAFUNWA. KWELI TUNAHITAJI MABADILIKO YA KWELI. TUMECHOKA
ReplyDeleteTANZANIA has no use of brilliant people
ReplyDeletebecause the government has no brilliant
people in the first place, anyway.
mashaka you can save these for later
when dr. wa ukweli comes in power
i love mashaka john. this is good shit
ReplyDeleteMawazo mazuri tena yenye kusisimua na kufungua akili za watu hasa wale wanaotaka kufikiri. Mie sina shaka na maoni kama haya na ninampongeza john mashaka.
ReplyDeleteOmbi langu kubwa "fimbo ya mbali haiuwi nyoka", pamoja na ukweli kuwa siku hizi si lamza uwe pale Tanzania ili kusaidia kurekebisha mambo. ningekuomba uungane na akina Hildebrand na wengine wengi ambao waliona kuna umuhimu wa kurudi Tanzania na kufanya au kutoa mchango wao kama watanzania. Nikuhakikishie kuwa endapo mtaungana kama vijana wetu na kutoa nguvu moja mtaweza kuwasaidia viongozi wetu nao wajisike kuwa vijana wao wameelimika na wapo tayari kulisaidia taifa lao. we need you on the "ground"
nawapongeza wote wale ambao wameona umuhimu wa kurudi tanzania kuja kulijenga taifa lao
mungu ibariki tanzania
Mashaka,mambo unayoandika ni mazuri sana ,ila naomba uwe unatoa kwa kiingereza na kiswahili pia ,ili kila mtanzania asome na kukuelewa .Kwa kutumia lugha ya kiingereza tu,ujumbe wako hauwafikii watanzania wengi ambao hawakupata bahati ya kujifunza lugha hiyo kwa kiwango chako.
ReplyDeleteZingatia hili Neno,mimi ni mtoa Neno.
@manka liwale. ni kweli huyu kijana is very brilliant, lakini itakuwa vizuri akirudi tanzania. kweli fimbo ya mbali haiui nyoka. mashaka uthubutu wake angeingia bungeni akaungane na vijana wenzake wakina mnyika wanapigania maswala ya madini yetu
ReplyDeleteHivi mnacheza na John Mashaka wakati mkisema yuko wallstreat nilidhani utani ila niliamini wakati akifafanua mwenendo wa uchumi ndani ya BBC na wakasema yuko soko la hisa so huyu anaweza akawashinda hata akina Ndulu ambao shilingi imewakataa wanakalia mijengo isiyolingana na uchumi.Tanzania ingekuwa na akili ingewaajili kutoa ushauri tuuu nadhani ingefanya vizuri zaidi yaani serikali iliyopo ni kama uchumi umeikataa kabisa.God bless this young chap.Michuzi vyombo vyenu ni rasmi hakikisha ujumbe unafika washindwe wenyewe mpaka tutakapoipa CDM
ReplyDeletethis is an excellent article. no wonder michuzi loves this guy. indeed it is well written and a timely piece. i am proud of this guy, and do hope the government of tanzainia can make good use of such good talents
ReplyDeletei am ready to take on mr. mashaka head on. how can i do it. this article is the whole truth about tanzania. i need to get in touch with this guy, very good.yaani nimeipenda hii atiko mno kusema kweli.kuna kaka mmoja ambaye makala yake yalikuwa yanasissimua hivi, dr. shayo mbona yeye haandiki tena? hau ndo ka staafu?
ReplyDelete