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CORPORATE FINANCEECONOMIC & PUBLIC POLICY MEDIA
 JUNE 2009
President Jakaya Kikwete was the first African head of State to visit the White House under the Obama administration, an event that did notgo unnoticed. Meanwhile, residents of Mbagala have been trying topiece their lives back together in the aftermath of the armoury disasterthat has been rocking the area with explosions. On the competitiveside of things, the NECTA Form VI results are in, and the Busandaby-election brought about another face-off between CCM and theopposition.In the Business Notes section, The East African comments on thequiet collapse of Tanzania’s fledgeling dairy industry, while TheBusiness Times ponders a report on the implications of EU-EACEconomic Partnership Agreements. To wrap things up, Yellow Couchraided the news stands, picked up a few local magazines and settleddown for a cozy read.
MEDIA REPORT: MAY 2009
Headline News Analysis Top-Ranking Headline Stories
 Military/Society: Mbagala bomb blasts 
 At the very end of April, a number of bombs exploded at theMbagala barracks during what turned out to be a routine exercise atthe armoury. A number of military personnel and civilians lost theirlives, and properties close to the blast site suffered some damage. Theround-up of the full story can be read on page 4.
Politics: The Busanda by-election 
 The campaign for the parliament seat left open after the passing of Mr. Faustin Kabuzi Rwilomba (CCM-Busanda) in March kickedoff on the 3rd of the month. The opposition parties, Chadema inparticular, have been giving the ruling party significant pressure and visible competition whenever a seat in the legislature comes free-‘Chadema yazindua kampeni kwa kisukuma’ [ 
Chadema launches campaign in KiSukuma 
 ]
 Majira Jumapili,
3rd May), ‘Chadema, CUF vyaikamiaCCM jimboni Busanda’ [ 
Chadema, CUF a menace to CCM in Busanda constituency 
 ]
 Mwananchi,
3rd May). However, CCM’s greatest threatseemed to come from within the party as reports exposed internaldivisions and general party member dissatisfaction in Geita whichmight cause them to perform badly at the polls: ‘CCM yahofia kilioBusanda’ [ 
CCM fears defeat in Busanda 
 ]
 Majira,
8th May), ‘Waziri Ngelejaawekwa kiti moto Busanda’ [ 
 Minister Ngeleja put in the hot seat in busanda 
 ]
 Mwananchi,
11th May).
 Media/Corruption: Mengi vs. Aziz 
 
During the week in which the apparent controversy was at its peak, acouple of papers questioned the utility of the whole exercise: ‘Whereis the Govt?’ ( 
The Citizen,
5th May), ‘Mipasho ya Mengi, Rostam nikwa manufaa ya nani?’ [ 
 Mengi, Rostam war for whose benefit? 
 ] ( 
 Majira,
6th
May), ‘Malumbano ya Mengi, Rostam hayana tija kwa Watanzania’
 Mengi, Rostam argument is of no use to Tanzanians 
 ] ( 
Uhuru,
6th May). Inthe event, both Mr. Mengi and Mr. Aziz continued to fight for the truthon behalf of the Tanzanian people: ‘Rostam reports Mengi to PCCB’
Daily News,
6th May), ‘Mengi sues Rostam Aziz for 10bn/-‘ ( 
Daily  News,
7th May). The Government eventually stepped in: ‘Warning toMengi, Rostam is dismissed as too belated’ ( 
The Citizen,
12th May).
Corruption: The Liyumba trial 
Mr. Amatus Liyumba, who was charged in January with three countsof misuse of office in January in a joint case with his former BoTcolleague Mr. Dawson Kweka, almost tasted freedom when theprosecution asked for his charges to be dropped after the defensehad pointed out their defects: ‘Prosecution asks court to dropLiyumba charges’ ( 
The Citizen,
7th May), ‘State now admits chargesagainst Liyumba defective’ ( 
Daily News,
7th May). This tactic wouldallow the State to avoid having Mr. Liyumba aquitted, and would buy the prosecution time to rectify the mistakes that it committed whencharging Mr. Liyumba the first time around. Indeed, later in the monththe court dismissed the charges against Mr. Liyumba and Mr. Kweka, whereupon they were immediately arrested and put in remand by plainclothes policemen who were attending the trial: ‘Lawyers protestas freed Liyumba arrested again’ ( 
The Citizen,
28th May). Mr. Liyumba was charged with two counts of abuse of office and occasioning pecuniary loss to the government the next day, although Mr. Kweka was not: ‘Liyumba charged afresh’ ( 
This Day,
29th May).
Crime: The Zombe trial 
 The murder trial of former Dar es salaam Regional Crime Officer, Mr. Abdallah Zombe, is approaching its end. The last accused presentedMay was a two-story month for the press. Nothing could holdjournalists’ attention longer than the vigorously contested Busandaby-election, not even the loss of lives and destruction of houses inMbagala, although that story generated a few more headlines over thecourse of the month. The top two stories together took up nearly aquarter of the headline count, while no topic –apart from Mengi-Azizconflict- was able to generate more than a week’s worth of interest. The clear bias towards political stories is interesting to note in thisinstance, considering the financial and human cost of the Mbagalabombings and the military’s role in it.In spite of the electoral irregularities- ‘CCM wanswa wakinunuashahada jimboni Busanda’ [ 
CCM caught buying voter registrations in Busanda 
 ] ( 
 Nipashe,
12th May), ‘Chadema wakwamisha kikao cha Tume Busanda’ [ 
Chadema hold up Commision meeting in Busanda 
 ]
 Mwananchi,
13th May), ‘Polisi zaidi wamwagwa Busanda’ [ 
 More  police sent to Busanda 
 ]
 Mwananchi,
19th May), the election itself  was more peaceful than had been anticipated. CCM managed toretain its seat in spite of early reports to the contrary: ‘Oppositionchanges Busanda poll history’ ( 
The Guardian,
25th May), ‘CCM wins, turnout low’ ( 
The Guardian,
26th May).Last month, Mr. Reginald Mengi of IPP Media publicly exposedhis list of ‘the most corrupt’ people in the country. The exercisegave rise to some intense reactions that varied in perspectivedepending on the media house: ‘UVCCM Tabora yamwonyaMengi’ [ 
UVCCM Tabora warn Mengi 
 ]
Habari Leo
 ), ‘Mengi, Dk.Slaa wapongezwa’ [ 
 Mengi, Dr. Slaa congratulated 
 ]
 Nipashe Jumapili,
3rd May), ‘Hoja ya Mengi yaligawa taifa’ [ 
 Mengi’s statement divides the nation 
 ] ( 
Tanzania Daima,
3rd May), ‘Rostam hits back at Mengi’ ( 
The  African,
4th May).
 
SERENGETI ADVISERS
MEDIAJUNE 20092
year. All three may have been complicit in the allegedly corrupt hiring of Alex Stewarts Government Business Corporation as a gold assayerfor the government. The hearing of their trial started this month:‘Mramba-Yona-Mgonja trial: Hearing gets underway’ ( 
This Day,
18th
May). Athough the gentlemen orginally had 13 charges against them,the government reduced them by two with the result that they are now facing 11 charges ‘Mramba, Yona, Mgonja wapunguziwa mashitaka’
 Mramba, Yona, Mgonja charges reduced 
 ] ( 
Habari Leo,
19th May).
Education: NECTA Form VI Results 
 The yearly crop of NECTA Form VI results came out at the startof the month. This year the girls performed better than the boys by one percentage point: 90% of female candidates passed as opposedto 89% of the male candidates. In addition, girls’ schools were wellrepresented in the top ten list of schools, with Kibosho Girls andMarian Girls Schools taking the top two spots on the top ten list. Inspite of this, only one girl made it onto the top ten candidate list ‘Itsgirls again’ ( 
The Guardian,
2nd May). 53,758 students were registered forthe exams, 51, 563 candidates sat for the exam and 45,716 candidatespassed. ‘Kidato cha sita: ufaulu wapanda’[ 
Form VI pass rate increases 
 ]
Habari Leo,
2nd May).evidence that incriminates Mr. Zombe, involving him indirectly in thearrest of three gem dealers and their taxi driver before their murder.Mr. Zombe had requested another chance to make clarifications onletters written by him that his fellow accused presented as evidencebut the court denied his request: ‘Huge NO to Zombe’s secondchance plea’ ( 
The Guardian,
6th May). Mr. Zombe was seen to becomequite emotional as the end of the trial approached, even as his lawyersargued strongly that there is no evidence linking him directly to themurders: ‘Zombe abubujika machozi’ [ 
Zombe sheds tears 
 ] ( 
 Nipashe,
7th
May), ‘State has no proof against Zombe’ ( 
The Citizen, 8th May 
 ). Thejudge’s ruling is expected in June; ‘Verdict in Zombe trial next month’
The Citizen,
21st May). The Zombe trial was the subject of the mainstory in our February report.
 Accidents: Mwakyembe in car accident 
Dr. Mwakyembe is one of a handful of CCM MPs who are perceived tobe vocal and dedicated in their fight against corruption- his willingnessto question his own party has endeared him to the public. In light of his popularity, and the high incidence of politicians who have diedrather abruptly during this administration (including the outspoken Amina Chifupa and Chacha Wangwe), news of his accident wasreceived with great trepidation. Dr. Mwakyembe allayed any fears of foul play: ‘Mwakyembe speaks out’ ( 
The Citizen,
23rd May).
International Relations: President Kikwete visits the US 
President Kikwete went on a 9-day tour of the United States in themiddle of the month. Along the way, he met up with Tanzaniancommunities living in America ‘Watanzania wamlalamikia Kikwete’
Tanzanians complain to Kikwete 
 ]
Habari Leo,
19th May), strengthened Tanzania’s links with Silicon Valley ‘Kikwete visits home of Google’
Daily News,
20th May), got an award, ‘Medics honour Kikwete’s lead inhealth’ ( 
Daily News,
22nd May)…and was the first African head of stateto visit the White House since President Obama came into power ‘JK and Obama for discussions on good governance’ ( 
The Guardian,
21st
May), ‘Fundo lawajaa Wakenya, kisa mkutano wa Kikwete na Obama’
Kenyans resentful over Kiwete-Obama meeting 
 ] ( 
 Nipashe,
25th May).
Society: Transsexual Woman Dies Corruption: The Mramba/Yona trial 
Former Ministers under the Mkapa regime, Mr. Daniel Yona (Energy and Minerals) and Mr. Basil Mramba (Finance), and former PermanentSecretary of Finance Mr. Gray Mgonja were jointly charged with abuseof office and occasioning pecuniary loss to the government late last
 Watch Word
 When confronted with a live journalist, an interviewee can take theopportunity to let their professionalism- and their opinion of theiraudience’s intelligence- shine through.
 
“We do not have time to argue with the Church. We have a wholeyear in which to implement our manifesto. We shall tell people what we have done when the time comes” CCM spokesman Capt. JohnChiligati, when asked to comment on the Catholic Church’s plans toinfluence the 2010 elections. ( 
The Citizen,
3rd May)“We don’t carry out our duties by revealing them to the media.I cannot, therefore, tell you if we are investigating them or not.”Director of Criminal Investigations Robert Manumba, upon being asked whether the government was investigating allegations raisedduring the Mengi-Aziz war of words. ( 
The Citizen,
5th May)“It is true that we have a patient here who arrived this morning,unconscious. Up until now the patient hasn’t been able to talk…ourprofessional ethics require us to protect the dignity and privacy of our patients- doctors do not release information to people who arenot relatives. Please keep that in mind.” – Dr. Suleiman Mtani, Chief Medical Officer, Mwananyamala Hospital. ( 
 Mwananchi,
18th May)Dr. Harrison Mwakyembe (CCM- Kyela) was involved in a caraccident when his car overturned as he travelled back to Dar esSalaam from Makambako. He suffered some head injuries, and was airlifted to Muhimbili Orthopedic Institute the next day:‘Mwakyembe apata ajali mbaya Iringa’ ( 
Tanzania Daima,
22nd
May).In the middle of May, the police picked up an unconscious woman on the beach in Mbezi and took her to MwananyamalaHospital as it appeared she had been assaulted. During hertreatment it emerged that she was a transsexual going by thename of Mama Victoria. When the news leaked out of the ward, residents of Dar es Salaam flocked to the hospital hoping to get a chance to gawk: ‘Aliyebadili jinsia azua kizaazaa Dar’
Transsexual causes an uproar in Dar 
 ] ( 
 Mwananchi,
18th May). This was apparently reason enough for the press and the publicto make free of her personal and family information. Mama Victoria passed away a couple of days later, the cause of deathis suspected to be suicide ‘Dar sex change man is dead’ ( 
Daily  News,
21st May).
 
 This Day:
Faster economic growth in 2008 
- The national economicgrowth rate accelerated by 0.3 percentage points in 2008 asthe GDP expanded at a rate of 7.4%, up from 7.1% in 2007.Finance Minister Mustapha Mkullo, who was presenting hiseconomic report to the parliamentary committee on financeand economics prior to the Budget Session, said that thegrowth was mostly driven by the agriculture, fishing and serviceindustries. The 7.4% GDP growth rate was only slightly lowerthan the 7.5% growth that had been predicted by his ministry a year earlier. Expectations for 2009 are considerably lower dueto the global economic crisis, with projected economic growthperformance of between 4% and 6% by government and IMFestimates. (27th May)
 The Citizen:
Boosting value-added export performance 
- The BenjaminMkapa William Mkapa Export Processing Zone (EPZ) is closeto opening, bringing the number of EPZs in Dar es Salaamup to three. 20 investors have already put in applications, eightbeing from the US, Oman , India, Abu Dhabi, Japan and Dubaiand the remaining 12 being Tanzanian. It is intended that atleast 80% of the goods produced in EPZ be exported, withan annual minimum export turnover of 100,000 USD for localinvestors and 500,000 USD for foreign investors. The country currently has a total of four EPZs and is planning another 14EPZ projects throughout the country, with each site covering 2000 hectares. (7th May)
 The East African:
 Milk producers hurt by Kenya’s exit 
- The exitof Kenyan dairy processing firm Brookside has had a palpably negative impact on the northern Tanzanian milk industry. Whenthe firm started operations in 2004 they were collecting 1000litres per day. Collections had increased to 6000 litres per day (13,500 in peak season) by 2008 when Brookside was closedby the Government of Tanzania for failing to rehabilitate thedefunct Tanzania Dairies. The initial agreement between theGovernment and Brookside required the company to revivethe state-owned company, although collections would have toreach 60,000 litres per day to justify the building of a Ultra Heat Treatment plant which comes with a 100 million USD price tag.Brookside’s exit from the market has brought the price of raw milk down to Tshs 150 from Tshs 400 per litre, and left TangaFresh with no direct buyer for the 30,000 litres of excess milk they generate per week. (May 4th)
Business Times:
Estimating the cost of free trade and regionalism 
 
- Whether it trades independently or as part of the EAC, Tanzania could lose trillions of shillings in customs revenue asa result of entering into an Economic Partnership Agreement(EPA) with the European Union, according to a report recently released by the Economic and Social Research Foundation(ESRF). With the gradual lowering of tariff barriers betweenthe EU and the EAC, income from trade taxes will be reducedsignificantly- Tanzania raised 44.2% of her internal revenuefrom said taxes in 2007. The EPA could be beneficial to theEAC if on balance the region exports competitively to Europe,although there are concerns about competitiveness because of the heavy subsidization of the European farmer. (May 1st)
SERENGETI ADVISERS
MEDIAJUNE 2009
3
Business Notes
Dear Serengeti Team: 
“Privatisation like a Ninja invasion” viz, street lighting in Dar; you guyssound like you are from Star Wars episodes in your language. Evidently, with every issue of the Monthly Media one gets the sense that nothing could be better, information wise, than what you produce. I enjoy the subtlety in your summaries, sometimes supported by Kipanya’spowerful and ingenious understanding of the centrifugal going-ons inBongo. Keep up the excellent standard.Regards, Juma V. Mwapachu, Arusha
Dear Serengeti Team: 
I could not believe the following statement came from a respectedbody such as yours, yet here I am with a copy of the report: “ReginaldMengi and Rostam Aziz played out their feud for all to see, in a manner which suggested that perhaps the term ‘independent Tanzanian media’is the punchline of a bad joke”(Serengeti Advisers Media Report, April 2009). You managed to buy the catch that the issue is about a feud betweenMengi and Rostam. The issue is not about them, the issue is not aboutmedia freedom- the issue here is “about billions of taxpayers money stolen.” And that is the story almost all are forgetting, and taking theescapist stand, that it is all about the battle between Mengi and Rostam. Your punchline, which will be taken up by most people who respectSerengeti and other readers of your report, is a real draw back in thefight against corruption, as much as I am sure it is not your intention.I stand to be corrected.My unsolicited advice: your Headline News Analysis should not bebloated opinion pieces, but wholly analytical. If it is opinion, clearly indicate the author, so that we can challenge him or her with words.Otherwise in all, I think you are doing a good job, and I enjoyed reading most of your publication. Best wishes for your future publications.Kind regards, Anthony MuchokiDar es Salaam
Inbox
ON AIR: Zain Africa Challenge
 This year marks the third season of the Zain Africa Challenge. Thecompany formerly known as Celtel started bringing universitiestogether for a televised general knowledge competition in 2007, with yearly expansions marking the company’s territorial reach. This year sees bright young minds from public and privateuniversities in Tanzania, Kenya, Uganda, Zambia, Malawi, Ghana,Nigeria and Sierra Leone pit their wits against each other in a 31-game tournament. The winning team takes away some money fortheir institution in addition to their own cash prizes.Highlights:No singing, no dancing and no odious panel of judges crushing youthful dreams.Lowlights: Tanzania’s performanceChannel:ITV 
Day:
Mondays and Wednesdays, 21:00 - 22:00
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