Burundi: Letter from H.E. President Yoweri Kaguta Museveni to H.E. President Pierre Nkurunziza (08.12.2018)

Tanzania: The IMF is worried about the Financial Stability in the United Republic!

President John Pombe Magufuli are having more worries on the horizon, as the International Monetary Fund (IMF) in November went through the Financial System Stability Assessment (FSSA) there. Clearly, the government have picked up a habit or loans, which isn’t that good. Surely, some of them are the Chinese loans that could hit the economy. Also, other loans that is hurting the economy combined with the ways of the bulldozer.

The President has had his ways… He has attacked businesses, the mining industry and the agricultural sector too. Therefore, the financial market is getting hit too. This is because of the years with Magufuli who has had his way. Now the consequences of it is coming to the surface.

IMF Press Release:

Directors noted that despite favorable macroeconomic conditions, financial stability challenges are significant with deteriorating asset quality, falling credit growth and liquidity pressures. Directors noted that continued macroeconomic stability, an improved business environment, better execution of fiscal policy and resolution of government payment arrears would help address financial sector vulnerabilities and risks. Directors stressed the need to improve asset quality, address non-performing loans and increase capital buffers in the banking system. In this context, they cautioned against potential excessive use by banks of the regulatory relief provided by the Bank of Tanzania’s circular for loan classification and restructuring. They encouraged the authorities to issue further guidance aimed at preventing banks from overstating capital ratios and earnings” (International Monetary Fund – ‘IMF Executive Board Concludes the United Republic of Tanzania’s 2018 Financial System Stability Assessment’ 06.12.2018. link: https://www.imf.org/en/News/Articles/2018/12/06/pr18455-tanzania-imf-executive-board-concludes-2018-financial-system-stability-assessment#.XAl1-CvQt3w.twitter

This is worrying as this is destroying the economy. Who knows who is eating, but someone is earning on this non-performing loans and the crashing financial markets. With that is the losing value of assets, lack of liquidity and bad loans. All of this can amount to rising inflation and later issues of lack of assets and liquidity to actually salvage the non-performing loans. That is like an evil bad circle of financial mismanagement.

I know that President Magufuli don’t want to hear that, he don’t even want to see the stats or get anything out that isn’t sanction by his men. He wants everybody to move after his words and orders. That will not create anything good. The President has to see this and find out ways to figure this out.

The Economy is clearly failing, the Financial Market is fragile and who knows what is up next. But there has to be significant changes to change the current state of affairs. What this is showing is the picture that the President and CCM doesn’t want to show. As this is the weakness of the government and the Financial Market at this point. It is not a good look. Peace.

Tanzania: A new Amendment will severely restrict Political Parties!

There is a new law on the horizon in Tanzania, another measure to secure and control society. Just as you thought it wasn’t enough this done by President John Pombe Magufuli, him and his party are really taking, yet another step to ensure total control. Chama Cha Mapinduzi (CCM) are really coming with the iron fist, as they are planning to take it one step further.

This is with the Political Parties Amendment of 2018, which was gazetted on 16th October 2018. The law is yet to be enacted, so the particular changes of the law isn’t yet done. But the texts and ready-made statutes are there.

This is new is specify what an organization or a political party can do. Where the State has to sanction and allow the Civic Education from the Political Parties and their affiliates. As the State will ensure what they educate and what they teach. This is in direct line with restraining the freedom of assemble and freedom of speech.

Another vital change is that the functions of a political party changes and what it cannot be. For instance, it is no longer allowed to be a “Pressure Group” or “Activist Group”. Even if they are partly so, as they are organizations who works political to steer the political conversation and outline their program for the public. So, I have a hard time seeing this and how it can be used as statute of law. Who will deem one or the other?

Because, political parties made of real people are trying to steer the conversation, they are filled with activists believing and fighting for cause, of any kind to anyone that passes by. So I recon, that this is stopping initiative and controlling what they can teach and how they operate.

That is the initial first reaction to the passages that has leaked online. This is yet another step in years of Magufuli who are a man, who likes to hear his own voice and his own message, but not anyone else. The Bulldozer who crashes everyone’s party and expect to hailed for doing so. Peace.

Kenya Pipeline Company Limited – Press Release (04.12.2018)

Tanzania: Opposition Leader Zitto Kabwe subpoenaed for an interview by the PCBB over an article in Jamii Forum!

We all know how sensitive and mediocre of a leader President John Pombe Magufuli is, the man who cannot manage jeopardizing his ego or self-inflated seat of the Iron Throne in Dodoma. As of yesterday, ACT-WAZELENDO Chairman Zitto Kabwe was questioning the funding of the Tanzam railway and its upgrades of trains itself and the new construction. That was clearly a violation of trust between the opposition politician and the authorities.

That is why the opposition leader are now called into question by the Takukuru or the Prevention and Combating of Corruption Bureau, to explain his recent statements made on the Social Media. Because he went to far, to questioning the loans and the funds of the Chinese. That is something no one is supposed to do. Especially, since the President says the Chinese dole away like there is no tomorrow with no strings attach. There is no hitch or second plan behind the donations, funding and loans in Tanzania. No, the Chinese are just friendly uncles who likes to spoil gentle and kind foreigners. That is what they do. That is if, if your thinking as naively as the President.

That is why Kabwe gets into trouble, because he answers back to the naive or dumbfounded President. Who clearly is hurt by the Western Donors and their demands behind their gifts and funding. That they have certain standards of where they operate. This has hit a snag and is bugging the almighty, the biggest man ever to grace Tanzania. The giant upper echelon of leadership, Mr. Magufuli.

Therefore, when the likes of Kabwe questions him, he has to answer either in court, by the gentle authorities or become detained. All of which has happen in the past, and as long as there is a man with an inflated ego. He will be detained again, it is just a question of time and purpose. Because, Magufuli only cares about his ego and partly about his friends. If you dare say anything negative or spread bad words. Bad mouth him or spread allegations of misconduct against the head honcho, expect to see the Police Officers and the Court Room, also after all that be behind bars.

That is just the rule of law and justice in Tanzania at the moment. If your are somebody saying something of critic or out of bound of Mr. President. Expect to pay the price, the legal jeopardy will come and who knows what the end-game is. Certainly, it will take time and effort to battle this. Because the President is almighty and is never wrong.

He can sing, he can dance and play the bongo. But he cannot manage that people question his authority or his leadership. That is a cardinal sin and the eternal flames of hell will burn you for saying anything against the man. Peace.

The Order:

 

 

Opinion: Nkurunziza holding the EAC hostage to protocol, as he boycotted the Heads of State!

Today, there was an obvious boycott from the Burundian government in Arusha in Tanzania. As the scheduled 20th Heads of State Summit of the East African Community was about to happen. Pierre Nkurunziza boycotted the day and showed his defiance to the rest of the Community. Who knows why, but maybe he is worried of what would happen there.

This was established in November in 1999 and since then, all the Heads of State has meet for further integration and for the collective missions for the region. The EAC are clearly at a cross-roads, if that is because of Burundi or because of the leadership at the EAC. Since the Chairman at this point is President Yoweri Kaguta Musveni of Uganda. He got the letters earlier in October 2018, that Pierre Nkurunziza wanted the Summit postponed. However, because of scheduling conflicts, the President Uganda counterpart wanted it to happen.

The EAC Press Statement says:

The 20th Ordinary Meeting of the Summit of the East African Community Heads of State that was slated for Friday, 30th November, 2018 at the Arusha International Conference Centre (AICC) in Arusha, Tanzania has been postponed to a later date. Making the announcement at the AICC’s Simba Hall, the Chairperson of the EAC Council, Hon Dr. Kirunda Kivejinja, said that the Summit would not take place due to a lack of quorum caused by the absence of the Republic of Burundi. “According to Rule 11 of the Rules of Procedure of the Summit of the EAC Heads of State, quorum is made of all Partner States representation which is in consonance with decision making by consensus under Article 12 of the Treaty,” Dr. Kivejinja, who is also Uganda’s 2nd Deputy Prime Minister and Minister of EAC Affairs” (EAC, 30.11.2018).

So, the Heads of State are postponed and the set date is now 27th December 2018. That means a month time, this time we can wonder if the Burundian will bail again. As the Burundian government are planning to prepare for their 2020 Elections and surely drag-out the dialogue without having all the stakeholders.

This was clearly a message from Nkurunziza. As he fears something brewing and doesn’t want to be humiliated or even pressed by neighbors. As he wants a free way of life time presidency like others. President Nkurunziza was invited and known of the date since October from the Secretariat, therefore, the added letters in November was more a stalling tactic. However, this should backfire, as he will be remembered for ditching the EAC.

The EAC who has monitoring and being the mediator with the dialogue in Burundi. The President should be happy it is these chaps who are doing it. As if it was further outside, they wouldn’t accept the tactics used by the Mpaka and the government involvement with force to block others from being part of it.

This is really a sign, as the others showed up and with credentials and ready to continue the agenda of the EAC. However, as Museveni wrote in his last letter to Nkurunziza: “Some matters on the agenda need to be attended to promptly and let us not be held hostage of the rules of procedure”.

That seems like the plan of Nkurunziza… keep the EAC hostage to procedure. Since, he boycotted or bailed the Heads of State today. That is the memo from Bujumbura. Peace.

EAC Summit: Position Paper of the Republic of Burundi, on the 20th Ordinary Summit of East African Community Head of State (29.11.2018)

President Museveni letter to President Nkurunziza concerning EAC Heads of State Meeting 30th November 2018 (25.11.2018)

The West is a bit late: Kicking and Screaming about President Magufuli’s actions!

I wish there was more worried voices, when the President John Pombe Magufuli censored radio stations. When he used time and efforts to silence journalists and newspapers. I wish there was more voices when he got bloggers and social media personalities to stop and pay higher taxes. I wish there was more worried voices when the opposition and activists was behind bars. These has all happen within a year time. Still, that haven’t catched much flack or buzz. Nearly nothing has scratched the surface.

This proves the government and the totalitarian ways of Magufuli and the Chama Cha Mapinduzi. Magufuli (CCM) wants all the love and no criticism. That is just the way that man is, he is certainly not getting a big enough boost at home, so he has to build his confidence at the public office. That seems to be the thing.

You know that this government is going overboard, when big-stars and musicians are getting their songs blocked from being played on the radio. One celebrity was unlucky and got her sex-tape leaked. In other countries that would have been PR Boast and ratings special, but in Tanzania. She got a meeting with the law. Therefore, this state is already unfair. As the person was a victim of a personal files and tapes being leaked. Not that she was starting a personal porn-hub.

That is why I am bit mad today. I have a deja vu’. Had the same feeling when the Anti-Gay Bill was ushered in Uganda a few years back. Instead of looking at the systemic reasons for the default law, the oppression and the acts of impunity against the public from the NRM. The public outcry and from foreign donors was against that one simple bill. Even if the bill is spiteful and morally bankrupt. The ones crying out loud, should enforce their vision to whole society and the whole system built around the President. Instead of looking at one minority, they should wonder and look at all the people looked up for their political activism. However, that train has never arrived and still isn’t.

That is why I know today’s plea, is a fart in the wind. But let’s be clear. The Anti Gay Monitoring Unit of Tanzania isn’t a policy. It is a bad idea, but so is everything else I have mentioned. It is only a fresh day or two, since the ACT Wazalendo Chairman Zitto Kabwe was freed from prison. Another political suspect and been detained a lot lately has been Tindu Lissu. So, it is not like there is free space and freedom in the first place.

Even on the 26th April 2018, on the Union Day, as the Opposition planned rallies. The cities and towns was under a military siege. As the President didn’t want anyone to be dissidents. However, the rallies didn’t happen and was more of ghost-towns. Therefore, the President didn’t get any rallies against him, but neither get a noble celebration of the Union of the Republic.

That the EU and USA are reviewing their relationship with Tanzania now is a bit bitter to me. Why didn’t it matter, that opposition and MPs got into trouble with the law? Why didn’t it matter that the media houses was closed and lost license for while? Why didn’t the rights matter, when bloggers and social media personalities lost their freedom and space?

But now the LGBT is in trouble, then your start screaming and shouting. You see how dumb it looks? You didn’t even flinch when the same government suspended girls who got pregnant, therefore, all girls are getting twice a year checked by the school. To ensure that they are not. Therefore, teenage girls are in trouble if they are pregnant before their ending schooling.

That is why I have trouble with the scrutiny today. Not that is deserved, as the supposed crackdown on the LGBT community in Tanzania is bad, but you should have seen it coming with all the other measures done by the Magufuli regime and his ways. Where he is acting as the lovely kingpin, who can even tell how woman are supposed to dress. That is why this was coming to you, but you didn’t mind the other things he did. But you start bitching when he goes after the LGBT.

You should have cared much sooner, now your late. These reforms was a slow-train coming. It was bound to happen. He gotten away with much bad in the past and now took it to another level. You accepted the others. But didn’t review it over the suspensions and closing of media houses. Off arresting MPs and Opposition leaders, you didn’t stop him from enforcing strict laws and levying high taxes on publications, social media and such. No, just let him be, without fearing his actions. However, now that he went for a group of this stature. Your reacting!

Sorry, but your late. Time to take actions for all, not just the LGBT. That is if, if you care about the human rights. Because you didn’t care, when one fell, but now they fall. You are kicking and screaming. Peace.

Opinion: China is starting to squeeze the Kenyan Economy!

If you were ever thinking that Beijing would loan and build without consequence. Those days should long be gone. The Chinese are planning to earn money on their investments, they don’t care about the Republic’s they are investing in, as long as they are profits on their investments. They want earn on these loans and since the rate of loans are so high. They are now starting to pick collateral for their infrastructure loans, especially the draining of loans to the Standard Gauge Railway (SGR).

While acknowledging China’s leading role in the Kenyan economy as a trading partner, the President called for increased Chinese investments in the country. “China now ranks as the number one trading partner with Kenya accounting for 17.2% of Kenya’s total trade with the World,” he said. “Kenya is open and safe for business. Kenya has one of the most conducive business environments in Africa,” the President added” (President.Go.Ke – ‘President Kenyatta Asks China To Give Preferential Treatment For African Goods’ 02.11.2018).

While Kenyatta are acting as it all positive, the reality is that the state are having giant issues with their “investments” and loans there. But Kenyatta wants to make it sound positive, when it really isn’t, just the rate of the loans have grown and the consequences of the relationship with China is now starting to cost. It is the Kenyans that has to pay these loans down and with every way possible. As the Chinese has leverage over the Kenyan government. Take a look at these quotes from media recently!

Loan Rate in Kenya:

Kenya’s current public debt stands at approximately 4.884 trillion Kenyan shillings (USD$49 billion) or 56.4% of the country’s gross domestic product.. This is up from 42.8% in 2008. In other words, the country owes more than half the value of its economic output (GDP)” (…) “China is Kenya’s largest creditor, holding about 72% of the country’s bilateral debt as of March 2017. Studies show that Kenya’s Chinese debt poses a threat because the loan agreements are not transparent, projects are not well prioritised, accounting procedures are weak and it’s not clear what projects are costing” (Odongo Kodongo – ‘Kenya’s public debt is rising to dangerous levels’ 05.08.2018).

Selling State Owned Enterprises:

The Privatisation Commission has approved sale of 26 state-owned corporations to raise funds to support the budget. The commission, under the Privatisation Act, 2005, was mandated to sell 26 poorly performing state corporations to cut down government spending. Those approved for sale are National Bank of Kenya, Consolidated Bank of Kenya, Kenya Meat Commission, Development Bank of Kenya, East African Portland Cement, Kengen, Kenya Pipeline Corporation, Kenya Ports Authority, and five sugar millers — Chemilil, Sony, Nzoia, Miwani and Muhoroni. Others are Agrochemical and Food Corporation, New Kenya Co-operative Creameries, Numerical Machining Complex and Isolated Power stations, hotels (Kabarnet Hotel, Mt Elgon Lodge Ltd, Golf Hotel Ltd, Sunset Hotel Ltd and Kenya Safari Lodges and Hotels Ltd). Also targetted are Kenya Tourism Development Corporation-associated companies, which include International Hotels Kenya Ltd, Kenya Hotels Properties Ltd, Mountain Lodge Ltd and Ark Ltd” (Cynthia Ilako – ‘State to sell 26 companies to finance current budget’ 03.11.2018, The Star Kenya).

China Selling Infrastructure Loans to Investors:

The plan will see Hong Kong mortgage insurer Hong Kong Mortgage Corporation (HKMC) buy a diverse basket of infrastructure loans next year and explore the idea of “securitising” or repackaging them into securities for sale to investors, allowing it extra liquidity that it can loan out to finance more infrastructure projects. “This initiative we believe will help ‘recycle’ commercial banks’ capital to be redeployed into other greenfield infrastructure projects, besides enabling wider capital markets participation in infrastructure development under the Road and Belt initiative,” said HKMC Greater China chief executive Helen Wong” (Allan Olingo – ‘China plans to sell off its African infrastructure debt to investors’ 05.11.2018).

We are seeing the growth of loans, that is up 42,8% and the debt level of the 56,4% of the GDP. Because of that, the state are now selling of their State Owned Enterprises. Most likely to Chinese holding companies and investors, who are expecting to gets points on their dollars. As well, as securing their future on the investment. They are selling the central institutions and businesses, which was state controlled, but they will now become para-stalls of the Chinese.

But selling the institutions are not enough for the Chinese. They are planning to take it further. Planning to rehash the loans as sub-prime loans for investors, meaning they are taking the risk instead of the Export-Import Bank of China, where the loans are usually collected and distributed from. Therefore, the loans are another target of more profits as they want to earn on them as well into the Capital Market. Just like the US Banks did with House Loans and mortgages in the past.

While all that is happening and with the knowledge of this, the President is still keeping it cool. Kenyatta is still not saying the brazen truth, that they are a debt-slave to China. Are in such big trouble, that the investment of the SGR are killing the economy and they have to trade-off their assets to keep up with their payments. That is what is happening and this is not really developing, but hurting the economy even more. As this institutions and businesses has been controlling their markets. Now, they will have masters from outside, which are not there to secure the market, but make a direct profit. Therefore, the citizens are not only paying their loans for the railroads, but for destroying their economy. Peace.