Tanzania Roundup: First SGR train operation, traffic laws, loans and grants

Central Bank cracks down on unlicensed digital lenders

The Bank of Tanzania has implemented a significant regulatory measure by declaring the prohibition of unlicensed digital lending entities within the nation. The public is advised to confirm the legitimacy of lenders' licenses before any transactions, in adherence to the recent mandate. This initiative by the central bank addresses the rising issues related to unethical loan services, such as the public shaming of individuals who fail to repay debts and the imposition of steep interest rates. It is anticipated that this ruling will affect more than 100 digital lending applications that are not officially registered, which serve nearly a third of the adult population who do not have access to conventional banking services, as reported by Africa24.

First SGR railway operations

Tanzania's railway administration has launched the inaugural commercial service of the electric standard gauge railway (SGR), connecting Dar es Salaam with the Morogoro region, spanning a distance of 300 kilometres. On Friday, the Deputy Minister for Transport, David Kihenzile, announced that the first electric SGR journey transported 1,400 passengers at no cost from Dar es Salaam to Morogoro. He noted that the train departed from Dar es Salaam at 6:10 a.m. local time and reached its destination in Morogoro at 7:55 a.m. local time. "The maiden electric SGR commercial operations between the two destinations was historic," said Kihenzile. He further mentioned that President Samia Suluhu Hassan graciously covered the travel expenses for the round trip between Dar es Salaam and Morogoro, as a gesture of her support for the commencement of the commercial services according to CGTN.

Stricter traffic laws

Tanzania's Finance Minister Mwigulu Nchemba is advocating to overhaul existing traffic regulations with more stringent measures should they prove insufficient in curbing road fatalities. Addressing the parliament on Thursday, June 13, 2024, while presenting the Sh49.3 trillion (USD18.8 million) budget for the fiscal year 2024/25, Dr Nchemba suggested that if the prevailing laws are perceived as overly permissive, it may be necessary to elevate the categorisation of all traffic-related offences from minor infractions to major criminal acts, with the recommendation that they be considered equivalent to homicide where applicable, according to The Citizen. “Honourable Speaker, violation of road traffic laws, even by government drivers, is viewed as inconvenient and sometimes develops animosity when the traffic police remind us about road safety. It is high time the community adopted a zero-tolerance attitude against road accidents. We cannot tolerate any more losing our workforce easily. Traffic officers should show no leniency towards anyone violating the road traffic laws,” said Dr Nchemba.

Climate change mitigation

On June 14, 2024, the Tanzanian government emphasised the importance of safeguarding water bodies, woodlands, and biodiversity as a key strategy in bolstering the nation's initiatives against climate change. According to The Citizen, the Deputy Minister of State in the Vice President's Office, Khamis Hamza Khamis, highlighted this priority while addressing the Climate Change Forum hosted by Mwananchi Communications Limited (MCL), under the banner "Journey to a Greener and Sustainable Future." In his keynote address, Mr. Khamis referenced the renowned Kenyan environmentalist Wangari Maathai, underscoring her focus on the vital elements of the environment: water, forests, and living organisms. “We should conserve water sources and therefore the environment by prohibiting human activities close to water sources. Every stakeholder should actively take part in the tree planting and councils should meet the target of planting 1.5 million annually and ensure planted trees progress well to maturity,” he said.

Tanzania's budget leans on loans 

The Tanzanian government plans to fund 30% of its budget for the fiscal year 2024/25 through loans and grants, as revealed in the budget proposal presented to parliament on Thursday, June 13, 2024. Finance Minister Mwigulu Nchemba outlined that the country's projected expenditure for the upcoming fiscal year is Sh49.35 trillion. Of this, Sh33.25 trillion (USD12.7 million)is expected to be raised through domestic revenues by the central government, which constitutes 67% of the total budget, as reported by The Citizen.