My reading list today is on the business stories making headlines in Tanzania. In the midst of the war on drugs by Dar es Salaam Regional Commissioner Paul Makonda, it is important to read something other than the facade that is termed as war on drugs. I personally view the drug circus as a targeted fight on some few individuals to settle personal scores. Tanzania has been awash with the drama of arresting celebrities, business people, religious as well as politicians on allegation of being involved in drug related business. Well, as all this happens, the cost of living is high, the state of the economy is wanting and people are complaining of the increased cost of living. In January, we saw the government denying that there is a state of hunger in the country – but even with the little rain experienced in the past few days, crop harvest will continue to be low meaning that food prices will continue being high.
Amidst this gloom, Tanzania needs to attract more foreign direct investments (FDI) to realize its goal of attaining 7% economic growth. This is according to the Chinese envoy in Tanzania Dr. Lu Youqing. As this happens, Kenya Airways is seeking regulatory approval to discuss price setting and revenue sharing on certain routes with its Tanzanian partner, Precision Air. This story in the BusinessDaily, suggests that the two airlines want an exemption from competition regulations so that they can set ticket prices together; manage and market certain routes jointly; and at the end of the day share the money earned on these routes. Also in the BusinessDaily, Tanzania’s energy firm Lake Oil is set to acquire the petroleum retail business of Hashi Energy. The acquisition will add to Lake Oil’s existing gas distribution business in Kenya. While Equity Bank sets to expand its horizons to Zanzibar.