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Power cuts hurt local manufacturers
2007-07-22 12:02:43
By Imani Lwinga
As the country gets over the power rationing that plunged it into total darkness, the business community is concerned over the continuing power interruptions, saying they are more devastating.
The private sector complains that frequent power cuts are more disastrous than power rationing because they destroy machines and raw materials.
East African Community 2006/07 Business Climate Index (BCI) Survey launched this week has described energy as a serious problem in the region but severe in Tanzania - thus raising the manufacturing costs, making its products uncompetitive in the market.
Tanzania Electric Supply Company (TANESCO) attributes the power cuts to its very old equipment. It has repeatedly said the power problems are likely to continue because it has no ability to replace the costly equipment all at once.
Power production was above 600 MW which is currently adequate for both domestic and industrial use.
The government has also been working on alternative power sources such as more gas-to-electricity as well as exploitation of coal to produce electricity.
Besides the poqwer power problem, BCI also points out that corruption on police roadblocks especially in Kenya, corrupt acts at immigration points and quality standards Inspections and export certificate as other hurdles.
Confederation of Tanzania Industries (CTI) executive director, Christine Kilindu said BCI intends to help create better business environment in the region.
Done by the East African Business Council (EABC), the survey is in line with the implementation of the region`s Customs Union which aims at freeing cross border trade between the partner states.
``The survey would improve intra-EAC trade where regional industries are expected to establish themselves using domestic markets as springboards, to trade effectively with the rest of the world,`` said Peter Kiguta, the director general of Customs and Trade at the EAC during the BCI launch in Dar es Salaam.
``This effort, together with the strong influence of the business lobby, has culminated in a number of important decisions being taken by Sectoral Council on Trade, Finance and Investment within the framework of addressing Non-Tariff Barriers to intra-regional trade among others,`` said EABC Executive Director Charles Mbogori.
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