| CROSSROADS :Saumu Jumanne: Dashed hopes: Can Tanesco redeem itself? | Send to a friend |
| Saturday, 21 January 2012 19:02 |
|
At the close of the year last month, many citizens had high hopes that 2012 would come with good tidings. I wrote that with good planning and inspirational leadership Tanzania could make it big time. That is, move forward, correct mistakes of the past and take a sail to the winds of success. Unfortunately, it seems fate has conspired against Tanzanians, dashing hopes of a better tomorrow, if we look at a number of indicators. Due to Euro zone crisis and other reasons, some donors have not been able to fulfill their pledges for budgetary support, giving the bureaucrats at finance ministry sleepless nights. The World Bank has also told us to expect slower growth, which is already visible in weakening global trade and commodity prices. Things are so bad, even Bank of Tanzania (BoT) has not been able to raise necessary cash through treasury bonds. You can guess, for the common citizen meeting daily needs is becoming more difficult, as things worsen from the top. Since last year the cost of living, fuelled by inflation has been skyrocketing. Our hopes have not been realized that policy makers would work hard to reverse the situation. Adding salt to injury, Tanzania Electricity Supply Company (Tanesco) with the blessings of the regulators, has increased power tariffs by 40 per cent. This could have been ok, if first the company dealt with its inherent problems that make power blues a way of life. The Confederation of Tanzania Industries (CTI) wants the decision to be rescinded because the increment will make the business sector less competitive. TGNP feels life of the common citizen will become harder as the increment have a direct impact on the prices of other commodities. When power or fuel prices are increased traders pass on the cost to consumers. The cost of buying goods will greatly increase while income remain statistic or is reduced. For the industrial sector to compete with its Kenyan counterparts, it will be hard hit. Kenya has just reduced power tariffs, which might cause manufactured products from there, reach Tanzania at lower prices, than what our industries can afford to sell. Life must go on. Power or no power. But this is very frustrating for the common citizen. I remember I wrote here sometime ago that “Tanesco can go, let solar power lead our economy.” But unfortunately, the business environment today only allows Tanesco to thrive by hook or crook, and any other pretender takes a back stage. By the way, the company treats the consumers as if they are ticks rather than its lifeline no wonder the very bad services it offers. I bet Tanesco engineers know what ails the power system. If Mtera Dam would operate to its capacity, there would be no need of the so called emergency power producers. Why is Tanesco not willing to say, that mismanagement of Usangu water catchment area for the Ruaha River, which fills the Mtera Dam, is the main cause of power blues? The water is used for irrigation purposes before it can reach the Ruaha River and the dam. Actually, if Mtera Dam's capacity to produce power is maximised we would not need diesel generated electricity, which make power prices expensive for consumers. Why should Tanesco go out borrowing Sh408 billion to fund power projects undertaken last year, if it can’t do simple house cleaning like championing restoration of Usangu Water Catchment area to improve power provision? Simple logic: Manage water catchment areas for our dams and get rid of the now permanent emergency power generators. Saumu Jumanne is an Assistant Lecturer, Dar es Salaam University College of Education (DUCE) Ends/edited Add this page to your favorite Social Bookmarking websites           |
Latest News
Most Read
Gallery
- Businesses plead with govt to reduce huge tax burden
- Facebook shares in further decline
- Investing in non-financial services for business growth
- Potential high in banking despite mounting rivalry
- Tanzania trade with emerging markets ‘significant’
- Cement maker to build Sh264bn kiln in bid to cut costs