Story from: worldbank.org

Approaching Bujumbura at an 1800ft altitude above sea level, the aerial sight of shiny miniature structures

scattered on the earthy surface stained by ballooning shores of the expansive Lake Tanganyika, one can only relate the breathtaking view with a Google Earth impression on a HD tablet. Buja, as fondly called by exuberant locals, comes across as one of the first emerging urban centres in East Africa. Contrary to what may have been said, the people are receptive and have

a unique sense of African hospitality that not only charms a foreign heart, but also soothes one’s spirit to softly ignite a new sense of friendship. In short, the city is a pearl and so are its people.

The melodious sounds of Kirundi - the native language - fused with the somewhat dialectical French tones serves to create an aura of harmonized diversity of the Burundian population, who are gladly bound by an admirable tradition. What better reason would inform CRB Bank PLC’s move to take the first available opportunity to be a part in building this beautiful country and empower

its people, who behoove timeless admiration.December 7, 2012 goes down in history

as the most memorable day for CRDB Bank PLC and the Burundian population following the colourful launch of the former’s maiden subsidiary outside the Tanzanian borders. The subsidiary has been named Inyenyeri, which means ‘the star’ and it’s a fine combination of architectural glamour and indelible excellence that has somewhat elevated Buja by some small degree. CRDB Bank’s reputation as an innovative bank

ALL SMILES! Burundi President Piere Nkurinziza cuts a ribbon to mark official opening of CRDB Bank in Burundi. Looking on is CRDB Bank Managing Director Dr .Charles Kimei. [Picture curtesy of : CRDB Bank Marketing Department]

DSE All Share Index NSE All Share Index USE All Share Index JSE All Share Index Gold Prices USD TShs KShs UGSHs 1473.98 92.26 1181.00 37926.31 Global 1727.20 1588.0 1586.0 18.36 2528.0 Tanzania -1.42% Kenya -0.66% Uganda 0.25% South Africa +0.04% +10.70% -0.35% 0.40% -0.25% 0.18%

REGIONAL BANKING

DECEMBER 23– 31, 2012 A WEEKLY JOURNAL FOR THE FINANCIAL INDUSTRY

Week ending Friday Trading Report...

Story Page 14

CSR in Burundi ...Story Page 5

The CSR time ... Story Page 11

Listening to Make History: CRDB Bank’s Impeccable Approach to Development Ushers in a New Era in Regional Banking

Story Page 7

Source: dse.co.tz

Under the Treaty, for the establishment of the East African Community (EAC), the Partner States of Burundi, Kenya, Rwanda, Tanzania and Uganda set out a bold vision for their eventual unification. The vision of EAC is to have a prosperous, competitive, secure and politically united East Africa. The mission of EAC is to widen and deepen economic, political, social and cultural integration in order to improve the quality of life of the people of East Africa through increased competitiveness, value added production, trade and investment. Operationally, EAC adopted a development strategy to facilitate the implementation of the Treaty in a systematic manner.

East African Securities Exchanges Association(EASEA)

The EAC Strategic Plan contemplates the development of a regional capital market in East Africa by December 2009. EASEA came into being in 2004 after signing of the memorandum of understanding between the EAC exchanges.The EAC Strategic Plan contemplates the development of a regional capital market in East Africa by December 2009. The EASEA has developed a three year strategic plan for the period 2008 - 2010. The strategic plan aims to:1. Provide a roadmap for integration of the three markets;2. Serve as a policy advocacy document;3. Secure funding from market development partners; and4. Align the EASEA vision with individual securities exchanges’

corporate plans, EAC individual country strategic visions’, plans and the EAC treaty.

EASEA MembersThe three East African Securities Exchanges, namely the Dar es Salaam Stock Exchange (DSE) www.dse.co.tz , Nairobi Stock Exchange (NSE) Error! Hyperlink reference not valid. and Uganda Securities Exchange (USE) www.use.or.ug have established a working relationship among them in the spirit of integrating and developing capital markets in the East African Community (EAC). The exchanges operate under the umbrella of the East African Securities Exchanges Association (EASEA). The EASEA is a member of the Capital Markets Development Committee (CMDC) of the East African Community (EAC). Recently the Capital Markets Advisory Council (CMAC) www.cmac.org.rw of Rwanda has joined the association.

The SADC Committee of Stock Exchanges(CoSSE)

Background The SADC Committee of Stock Exchanges was formed in January 1997 as a private sector initiative within the SADC framework. Membership of the Committee is open to all the member countries of the SADC. The Committee

RegionalizationEast African Community(EAC)

2CONTINUED FROM PAGE 1

that listens blends in perfectly well with the zeal and will that are inherent the Burundian people.

The relatively wet Friday began on a high note with the management and staff of CRDB Bank braving the early morning cold to put final touches on the finely organized event. It looked crisp and presidential. The team, comprising junior and senior staff from Dar -es - salaam and Bujumbura, had stayed up all night to ensure all things were neat to the knit. Spates of the green white and black brand colours were elaborate and effectively worked to enhance the professional, yet emphatic demeanor of a bank that has grown from a paper idea into a banking giant in the region. CRDB Bank’s growth story is closest to the proverbial story of the mustard seed in the old biblical days, one could bet.

Amid an overwhelmingly tight security, invited guests walked the fresh breeze that was shoving the downhill city to witness this milestone, perhaps with the hope of appearing in the books of history alongside the history maker that is CRDB Bank PLC. For CDRB Bank, making history seems like a daily practice and judging from the elaborate guest list, Friday December 7, 2012 will easily make into the preludes of history books as the most prestigious business event Buja has ever witnessed. Distinct personalities graced the team even as diplomats, state officials and the entire business community in Bujumbura sought to be a part in celebrating the grand entry of CRDB Bank PLC into Bujumbura. Business people sat in the flanks of prominent persons like former Tanzanian Prime Minister (PM) Frederick Sumaye, Tanzanian Ambassador in Burundi Honorable Dr. James Nzagi among other high ranking officials from the Burundian government accompanying their president. With these, one was sure that the day was definitely poised to end up in history journals as unique and memorable for both the Tanzanian and Burundian banking industry.

The formal part of the event was brief. Making remarks in his plainly polished English, CRDB Bank’s Managing Director Dr. Charles Kimei exercised unmatched eloquence in appreciating Burundi people as well as the leadership in the able hands of their finely groomed and steady president, H.E Pierre Nkrunziza. Dr. Kimei’s astute thinking business approach can be touted as sound, and he did not fall short of convincing the business community on a winning partnership between the CRDB

Bank and the former towards achieving better results for the collective benefits.

“The role of CRDB bank as a corporate citizen in Burundi will be to play a part in the building of a robust economy through providing financial services to both small, medium and large scale business enterprises,” says Dr Kimei. His words not only underscore the value that CRDB Bank attaches to its customers, but also speaks volumes on the dream the bank has for the people of Burundi.

In the words of President Nkrunziza, CRDB Bank is the people’s bank and its arrival in Buja could never have been precise. “This is a bank that will go to the people; not sitting in offices waiting for the people to come,” the Burundi Head of State reckons. The president’s fluency in French and his unmistakably supernatural sense of humor regularly sparked episodes of receptive laughter that was often drowned by the reverberating drums from a group of young patriotic Burundi boys. Their largely energetic dance and unwittingly loud chants complemented by a fine dance from young beauties added a luster of undeniable excitement to the day let alone the mellow sounds from Kenyan - based Burundi Afro - fusion maestro Kidum.

CRDB Bank Inyenyeri branch is undoubtedly the beacon of excellence. The bank is in the able hands of a seasoned banker Mr. Bruce Mwile and is poised to inject a new force in the Burundi banking circles considering the diverse expertise and innovative products it plans to deliver. From hassle-free bank accounts (starting with as little as 20,000 Burundian Francs) through to the revolutionary Inzovu Card and the convenient “Branch-on-Wheels”, CRDB Bank has set the bar high up for banks in the East African region in as far as excellent customer service is concerned. The bank brings together a host of the region’s brains in banking and Burundi should expect nothing less than global quality standards in financial service.

And as it were, Buja is full of life and being a historic Friday, there was no better way to sum up the eventful day than a themed cocktail. A little more of Kidum hits with sumptuous foods and assorted drinks came as a perfect plan for many a Burundian business elites. The night went down with concerted celebrations that got everyone doing a jig in resonance with the melodious future that CRDB bank is bringing to the drumming nation of Burundi. It was an event to behold!

DECEMBER 23– 31, 2012

Disclaimer: The Financial Junction is a weekly Journal of Global Plexus Ltd. The Financial Junction is distributed with the understanding that the publisher is not rendering legal, financial or any other sort of advice. However, the contents inaccuracies can occur, consequently readers using this information do so at their own risk.

Inyenyeri “The Stars” branch, the home of CRDB Bank Burundi.

meets quarterly. The members with established exchanges are: South Africa (JSE and BESA), Namibia (NSX), Botswana (BSE), Mauritius (SEM), Mozambique, Swaziland (SSX), Tanzania (DSE), Malawi MSE), Zambia (LuSE) and Zimbabwe (ZSE). Aims and objectives of the Committee To achieve this vision the Committee will increase co-operation and links in operations, communications, regulations, technical skills development and other areas between the stock exchanges of Southern African Development Community in order to:• Maintain and improve market

integrity in order to have markets that are fair, efficient and transparent with proper price discovery;

• Increase the liquidity of tradingin equities, bonds, derivatives and other financial instruments;

• Enforce legislation and rules andprotect market participants and investors;

• Make the SADC securitiesmarkets more attractive to local and international investors;

• Raise capital for regionaleconomic development, including developing infrastructure and human resources and raising living standards;

• To improve the operationalcapacity of SADC stock exchanges;

• Toadvocateandlobbyforprivatesector led Regional market integration;

• Build cooperation between theSADC stock exchanges and their regulators;

• To establish a forum throughwhich SADC region policy makers can consult the region’s existing securities markets before planning further developments within this field.

Policies and strategies which build

upon the concepts of harmonization and rationalization of operations will be applied where appropriate. The exchange of information, expertise and experiences will form a significant part of the process. Conclusion The strategy of CoSSE remains to keep autonomous national markets and to find ways of using technology, skills-sharing, dual-listings and cross border investments within the SADC to combine forces and generate more capital flows into the region.

African Securities Exchanges Association(ASEA)

About ASEA:ASEA is a non-profit company limited by guarantee that was found in Kenya on the 13th of November 1993. www.africansea.org

The association started with Nairobi Stock Exchange as the first member in 1993, followed by Mauritius, Uganda and Dar-es-Salam Stock Exchanges in the nineties. The association is currently represented by 20 exchanges in 27 African countries.

ASEA Mission Statement:ASEA provides a forum for mutual communication, exchange of information, cooperation and technological assistance among its members, to facilitate the process of financial integration within the region for the effective mobilization of capital to accelerate economic development of Africa.

ASEA supports members in the establishment of Stock Exchanges and the development of financial instruments. The association also assists in promoting the development of standards of training and professionalism amongst members and other market players, standards of listing, trading and settlement of securities, the products and services of Africa’s capital markets as well as the establishment of a data bank and information system.

Together with enhancing member exchanges’ joint programs, the association aims to harmonize standards for market principals in the region.

3DECEMBER 23– 31, 2012

By Special Focus Magazine Correspondent

Financial Junction Correspondent:- Dr. Hildebrand, thanks for accepting to share with Financial Junction your insight on the contradiction surrounding taxation of the capital gain question. My first, concern is what are the pros and cons of this tax to investors? With this tax are you envisaging under declaration of the value of the asset especially when there is a transfer or change hands? Or will there be a need to customise forms of taxation in relation to sector in question?

Dr. Hildebrand:- The answer, in my view depends on banks themselves. With technology and nonblank businesses providing new options for safeguarding and managing their finances, customers will continue to depend on banks only as long as banks such as CRDB, NBC, and NMB etc. to mention a few can provide service and value that cannot be found anywhere else.

Dr. Hildebrand:- These days and in Tanzania like anywhere in the world, there are already signs that customers are questioning the ability of banks to look out for their financial wellbeing. From rough estimate, only 36% of consumers I spoke to believe what banks tell them. A separate analysis also indicates that over 60% of Tanzania households conduct their own research before buying financial services products. As a result, you might have noted that banks now have begun to rethink what, where and how they serve an increasingly informed and demanding customer base. At the same time, a confluence of industry developments, including consolidation, regulation, industry specialization, changing workforce needs and new technologies are putting additional pressure on banks’ operating models and raising questions about traditional strategies for growth and value creation.

Business Focus Correspondent:- As architect and advisor on emerging enterprise market, what is the future look like? How will banks continue to grow revenues and remain profitable? Or what will it take to create and maintain advantage in this highly competitive industry?

Dr. Hildebrand:- An assessment of the forces shaping the industry reveals that the future will require

superior efficiency and operational excellence from all banks, while industry leadership will be attained by those institutions most adept at harnessing product, service and process innovation to anticipate and meet customer desires. In due course, to deliver on these imperatives, banks will have to focus on their core strengths-those activities in which they excel-and partner with best-in-class specialists for everything else: achieving more by doing less.

Business Focus Correspondent:- What is your views on the economical landscape of the banking business in Tanzania towards 2015 and will it look much different than it does today?

Dr Hildebrand:-On the outside, the competitive landscape of the retail banking industry in 2015 will not look much different than it does today. Mergers and acquisitions will likely have reduced the total number of banks, especially mid-tier regional banks, and industry specialists and non-bank banks will play a more prominent function. But most of today’s players, including widespread banks, community banks, industry specialist banks and non-bank banks, will still be vying to differentiate themselves in a crowded marketplace. However, it is important to note that traditional approaches to creating value through growth and efficiency will no longer be adequate. Advantages gained through acquisition if it will happen, new market entry and reconfigured product offerings will be fleeting at best, while partnering and outsourcing will make efficiency a basic requirement for all.

Dr. Hildebrand:- Through market research and consultation with industry executives, I have acknowledged five major industry trends that will impact the retail banking industry and partly corporate banking. That is, by 2015, the combined implications of these trends will create an environment in which nothing less than sharp focus and excellence in day-to-day operations will be acceptable, and banks will have to generate growth through continuous innovation or be left behind. The five major industry trends identified are:-

Customers redefine the rules of the game-Pronounced shifts in demographics, attitudes and behaviours, in addition to ubiquitous information, are giving customers the power to demand much greater responsiveness and transparency from their banks. Today customers are keener on audited account reports than ever before

Widespread banks and ultra-focused niche players thrive-Large players will generate higher aggregate profits by reaping the benefits of super scale, while niche players will aggressively pursue the most desirable customers by addressing their needs in distinct ways those in the middle or small bank will get squeeze.

Changing workforce composition dictates new approaches -An older and increasingly mobile and diverse workforce will raise management complexity and require flexible approaches to compensation and performance management.

Regulatory burdens will intensify-Heightened requirements around privacy, security; partnership risk and operational risk will require banks to take a more proactive, enterprise wide approach to managing compliance issues including money laundering challenges and capital flight.

Technology will improves inexorably to enable breakaway value-Advanced technologies will allow banks to infuse their legacy operating models and infrastructures with unprecedented functionality. Emerging technologies such as grid computing, service-oriented architectures, virtualization of data and storage, and predictive intelligence will cause entrenched in sourcing philosophies to perish in favours of a partnership model where specialized enterprises thrive.

Business Focus Correspondent:- In terms of priority which among these findings are likely to have an impact to the retail banking and emerging business enterprises?

Dr. Hildebrand:- Of these drift, the first two-increasingly powerful customers and intensifying competition-stand out as the most significant forces that will drive industry change over the next decade. The other three trends-changes in managing human capital, regulations and technologies-will strongly contribute to and reinforce the effects of intensifying competition and customer empowerment on banks’ strategic choices.

Dr. Hildebrand:- In this emerging setting, innovation will take many forms, including advances in products and services, markets, operational processes, customer intimacy, and new channel and diversification strategies. However innovation will not be possible, nor will it have the desired impact, unless banks create the requisite

conditions for innovation development. There are four strategic imperatives banks must follow to cultivate innovation and position themselves for sustainable growth.

Business Focus Correspondent:- What do you mean? Can you elaborate?

Dr. Hildebrand:- Focus on core strengths and partner for everything else mean that leading banks will optimize their performance by becoming specialized enterprises, managing only strategic, differentiating business components internally and partnering with best-in-class specialists for those capabilities that do not drive competitive advantage.

Two, optimize the potential of each customer relationship, meaning that rather than attempting to be all things to all people, industry leaders will use superior customer insights to offer the most appropriate and profitable products, tools and services to targeted segments.

Three, harnessing the potential of the workforce through effective performance management will be vital. I mean that banks will need to realign skills and set the right performance metrics to motivate a changing workforce to continuously pursue innovation and products, and. Four, recognize that technology will be a critical element of success. I mean that by making technology a central component of the strategic decision making process, banks will be able to tightly align their business and technology initiatives, and will be able to differentiate their offerings and seize market opportunities with greater agility.

Business Focus Correspondent:- In the course of future, who will be determine the rule of the game? Banks or customers?

Dr. Hildebrand:- Over the next ten years, I am certain that the retail banking industry will be required to adapt to rapidly changing customer expectations. Customer diversity and individualism will pervade buying behaviour, and how customers perceive value will change as a result of pronounced shifts in demographics and value systems. “Norms” will become increasingly rare.

It is also imperative to recognize that population growth will increase the relative numbers of both the oldest and youngest customer segments, posing significant new challenges and opportunities for banks. While older customers tend to require more high-touch service but are generally more loyal, youthful (i.e. emerging enterprises) customers are fickle, technology savvy, and highly inclined to research and negotiate the best deals. And across all age groups, long-standing life stage patterns are becoming more unpredictable. People are marrying later,

divorcing more, having second families, and starting second and third careers. These changes are leading to unprecedented diversity in the financial needs of households.

Dr. Hildebrand:- I can guarantee you customers’ decision patterns will become more complex. Value-oriented buying, based on the price-quality dynamic, is becoming increasingly influenced by personal views and the desire to express those views outwardly. Customers will demand low prices for basic goods but pay premiums for products and services that matter more to them personally. Overall, banking customers will be becoming more hands-on and more mistrustful trends that are even stronger in younger generations.

Business Focus Correspondent:- Given complexities you have stated earlier on, do you envisage high rate of defection?

Dr. Hildebrand:- Once more, rough estimate based on my own assessment is that banks are experiencing defection rates reaching as high as 30% as customers are less inclined to think that banks act in their best interest. Anecdotal sources suggest that less than one-third of the customers of top 10 banks 32%, for example, consider their banks to be advocates. More importantly, about as many 31% believe that their bank does what is best for its bottom line at the expense of customers. And as time progresses, technology and competition will continue to make it easier to research, compare, and form and break relationships – driving switching costs toward zero.

Business Focus Correspondent:- Based on your examination and understanding, what are the implications of these trends?

Dr. Hildebrand:- Well, by 2015, better-informed, more discerning customers will redefine the rules of the game by demanding greater advocacy and control in their banking relationships. To be sure, banks will need to develop (or attain) the capabilities necessary to sense and respond rapidly to their customers’ increasingly eclectic demands and unpredictable patterns of banking behaviour. To delight their customers, banks will need to provide greater perceived value relative to their competition. Having the ability to offer greater choice and personalization of products and services in the future will be critical-and yet not enough. Becoming a true customer advocate will require banks to use information about customers to anticipate and

By. Hildebrand Shayo, PhD

CONTINUED ON PAGE 8

4 DECEMBER 23– 31, 2012

5DECEMBER 23– 31, 2012

GIVING BACK: CRDB BANK DONATES AND PARTICPATE IN CONSTRUCTION OF CIBITOKE STADIUM IN BURUNDI.

Burundi Present H.E.Pierre Nkurunziza thanking CRDB Bank team for their donation and support.

Together we achieve more.

Even children took part.

Burundi President H.E. Pierre Nkurunziza demonstrating by actions.

No one stayed behind.

Solidarity foever

CRDB Bank MD. Dr. Charles Kimei offering the Banks donation of USD 20,000 to purchase cement for the stadium. He is flanked by CRDB Bank Burundi General Manager Bruce Mwile (L) and Tully Mwambapa Director for Marketing and Research.

CRDB Bank Managing Director Dr. Charles Kimei handing over a gift to President of Burundi H.E Pierre Nkurunziza. Looking on is Tanzanian Ambassador to Burundi Hon. James Nzagi.

6 DECEMBER 23– 31, 2012

7DECEMBER 23– 31, 2012

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Advans Bank Tanzania is part of a strong group, the Advans group which is a network of financial institutions which provides adapted financial services to micro, small and medium sized enterprises (MSMEs) in developing countries and transition economies. This activity is commonly known as microfinance. The Advans group of companies has been created by Advans SA, a Luxembourg based Venture Capital Investment Company and currently member countries are Cameroon, Ghana, Nigeria, Pakistan, Congo DRC, Ivory Coast, Cambodia and Tanzania.

KARIBU Advans Bank TanzaniaPamoja Tunakua

The Advans Bank Head Office Team.

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8 DECEMBER 23– 31, 2012

proactively suggest banking solutions that meet their life and lifestyle needs.

What’s more, in my view, in 2015, bank customers will demand relationships with greater transparency - there will be no tolerance for “fine print” with vague terms and conditions. Banks will have to simplify their fee structures and implement trusted processes that help customers avoid unnecessary fees. My research across the banking and retail industries, including discussions with senior executives providing advisory services reveals that extraordinary service and a superlative customer experience are the most sought-after capabilities, yet also the most difficult to scale and replicate consistently. In the future, retail banks will have immense opportunity to use service and experience to decommoditize their offerings and to encourage and reward customer loyalty.

Business Focus Correspondent:- The fact that customers are experiencing the kind of treatment you have clearly described earlier-on what should be a wake-up call to banks?

Dr. Hildebrand:- Businesses such as media groups that requested anonymity are raising the bar for responsiveness and increasing customers’ expectations. This company in question has seized the need for diversification as an opportunity to use information it has accumulated on customers to suggest additional programs and customised solutions. Banks, similarly, will have to develop the ability to use customer information in real time to devise truly differentiating banking experiences and solutions. There are a number of cues that banks can take from retailers to support their move in this direction:-

•Thorough understanding of the needs and buying patterns of segments they aspire to serve and delight

•Extraordinary service standards and follow through

•Strong emphasis on people empowerment•Extensive client associate training•Reward structures designed to elicit desired

behaviours with clear, measurable goals.I have already beginning to see banks moving toward rewarding customers for their overall relationships and reducing their focus on individual products and transactions – a trend that should rapidly pick up steam in the coming years. Loyalty building initiatives, however, are only part of what it takes to provide a truly differentiating customer experience.

Business Focus Correspondent:- What will be position of the Universal banks and ultra-focused niche players by 2015?

Dr. Hildebrand:- By 2015, the results of two prominent competitive forces will be clearly visible: a “middle squeeze” of traditional banks, and the emergence of far greater numbers of industry specialists and non-bank banks-each with distinct competitive growth strategies. For instance, towards 2015, I can envisage universal banks increase profitability with more targeted offerings while expanding through select acquisitions and new market entry; community banks will grow market share by building on local knowledge and deep customer relationships with a wider range of products and

services. For industry specialist I can envisage them expanding customer base by providing targeted products and services for high growth niches while leveraging superior process capabilities and for non banks bank building on existing customer base and distribution network with an emphasis on open sourcing of targeted products and services. In a nutshell, the industry will witness consolidation at its middle as it continues to be affected by large banks spreading their reach, and the emergence of specialized banking players that will set new cost and service level standards. Acquisitions led by large banks, however, will continue to be less attractive until the acquirer and potential target valuation gap narrows.

Business Focus Correspondent:- How will changing workforce composition dictates new approaches within the sector?

Dr. Hildebrand:- As banks redefine their business models to become specialized enterprises, the skills required to compete effectively in the marketplace will also evolve. The challenge will be two-fold: one, optimizing the productivity of employees within internally managed components of the business (retaining superior expertise to drive strategic efforts) and effectively managing the human capital aspect of external partnering, which will require greater focus on managing vendor relationships than on actually running the operations themselves.

At the same time, demographic trends, such as the aging of the population, will also significantly impact how banks source labour in the future. Large numbers of baby boomers – the backbone of today’s executive ranks – are beginning to retire. What’s more, banks will find shortages of workers in labor pools from where they would normally draw younger employees with necessary skills – all fuelling increased competition for available workers. In the Tanzania, for example, sketchy sources suggest that from 2000 to 2010, the number of workers in the 25-34 age groups was projected to grow only 8%, while the 35-44 group was actually to decrease 10%. The number of workers ages 55-64, however, was expected to expand by 52%, and the age 65+ group to grow by 30%. While increased globalization and regionalization such as newly formed East African community workforce mobility will allow banks to gain access to a broader talent pool in the future, managing workers from that pool will require a new set of skills and regulation to suit local labour market.

In addition to realigning skills, banks are shifting their focus onto performance management programs in an effort to optimize the productivity and effectiveness of their employee base. When asked why employee performance is less than optimal, 49% of retail banking executives I spoke to cited misaligned incentive schemes as the top response. 36% of these executives stated that incentive schemes are too difficult for young employees to recognize. Harnessing the full potential of employees in the future will require intense focus on redesigning incentives and performance metrics that take into account how quickly competitive and customer demands are changing.

Business Focus Correspondent:- What did you mean by regulatory burdens intensify in future?

Dr. Hildebrand:- My thinking is that demands for transparency from the market and supervisory pressures from regulators such as Bank of Tanzania (BOT) or Capital Market Security Authority (CMSA) will only increase in the foreseeable future. As industry globalization expands and further consolidation takes place, regulators are expected to continue seeking to provide a level playing field and prevent excesses. Greater transparency will be critical-not only as markets are given a greater role in the burden of supervision, but also because of the increased use of alternative suppliers.I can see leading banks focusing on two objectives regarding current and future investments in regulatory compliance: leverage compliance investments enterprise wide and utilize these assets to help manage their business more effectively. While the expense of compliance is expected to rise, an enterprise wide approach can help reduce these costs.

Business Focus Correspondent:- How will technology help to breakaway value?

Dr. Hildebrand:- Advances in global connectivity and computing power will both create and support market conditions that foster specialization in the next ten years. Communication networks, supported by broadband and wireless technologies, will continue to make digital connectivity faster, more affordable and more pervasive, thereby making the connection with partners and customers nearly seamless.My examination noted that existing core bank systems are currently fragmented and could impair the leap to more agile business structures in the future. Service-oriented architectures will need to be leveraged to a far greater extent to enhance business flexibility by enabling faster software development and modification to meet changing business demands. What’s more, clear to me is that information technology will continue to evolve with consolidation of the enterprise software market, proliferation of business integration software and the emergence of common solutions across the business environment.Meaning that, the quantity of available data will continue to increase rapidly. Advances in storing, tracking, analyzing and protecting data will allow organizations to differentiate themselves by how well they can extract value from multiple sources by correlating structured and unstructured information to improve customer service. It is not surprisingly today you visit the bank branch only to be told the system is down and some times it take time before returning to normal. Increasing demand will drive IT investment in customer analytics. Customer data will be gathered at collective and individual levels, enabling deeper and more relevant communications. Advanced technologies, such as grid computing, will enable banks to make better use of existing resources to cope with the increased demand to perform all of this analysis.

Business Focus Correspondent:- What are the opportunities for innovative growth?

Dr. Hildebrand:- While specialization is becoming imperative to compete in the retail banking marketplace of 2015, innovation is expected to remain a powerful, continuing

source of competitive advantage and growth. Survey I conducted six years ago noted that of more than 50 financial services executives, 75% of participants assured that organic growth through innovation had become essential to success in the industry. To me, this imply that sustainable value can be created by focused banks that combine product, service and process innovation with execution excellence to meet targeted customer needs. Combining these result with grey market research and interviews with industry executives, I have identified key areas of ongoing innovation that could have the potential to fuel enormous growth for the retail banking industry: retail payments, mortgage loans, account and product integration, global expansion and the customer experience.

Business Focus Correspondent:- Will 2015 present tremendous challenges for the retail banking industry in Tanzania?.

Dr. Hildebrand:- 2015 will present tremendous challenges for the retail banking industry. I can predict customers becoming increasingly individualistic and, at the same time, more controlling in their relationships with banks. Everywhere information will empower customers to compare offerings across the market and transact increasingly on their own terms. For banks, traditional segmentation approaches and go-to market techniques will become old-fashioned.How retail banks compete in the marketplace will also change dramatically. Universal institutions will compete directly with community banks with mobile banking offering unique value propositions to targeted groups of customers. A flood of industry specialists and non-bank banks will both compel and enable traditional banks to become specialized enterprises themselves. On the flip side, 2015 will present tremendous opportunities for retail banks, particularly with respect to harnessing product, service and process innovation to serve customers better, to differentiate themselves in an increasingly crowded marketplace, and to de-commoditize current products and services. Moreover, advances in technology will enable unprecedented levels of global connectivity, IT functionality and the ability to realize the enormous potential of data.BUT it is vital to note that by 2015, success will depend on banks’ ability to serve the specific financial needs of their target customers. Leading banks will make only highly strategic acquisitions focused more on reaching specific targeted customer segments (and in areas of their strategic focus) than on acquiring additional capabilities. As the open networked economy allows banks to strike alliances quickly with nimble service providers, capital will be freed up for ongoing reinvestment in strategic capabilities. Eventually, banks will be able to benefit tremendously from the industry inconsistency: achieving more by doing less.

(Endnotes)

1 Hildebrand E Shayo,is a Senior Lecturer-economics at the Open University of Tanzania, can be reached at shayohill@yahoo.co.uk. Views expressed here are those of the author and doesn’t represent his organisation

CONTINUED FROM PAGE 3

Dr. Hildebrand’s1 in-depth scrutiny on taxation of the capital gain and viewpoint

on the pros and the cons to investors

9DECEMBER 23– 31, 2012

Bumaco Insurance Company VISION is“Insurance Services with certainty”

It is our responsibility to guide and educate the public and our insured’s on the nature of insurance policies they buy and the requirements needed when making a claim, under

the insurance contracts as per insurance regulations and best practices.

A contract of Insurance comes into existence when the insured, a person seeking Insurance enters into an agreement with the insurer, BUMACO Insurance to indemnify him against LOSS or DAMAGE to the subject matter of insurance OR against LEGAL LIABILITY that may be incurred to THIRD PARTIES on damage to property, bodily injuries or death of a person in motor insurance.

This is evidenced by the insurance policy between the insured and insurer [Bumaco Insurance]. There are only two parties to this contract. The insured who can claim or present a Third party claim as per terms of the policy to the insurer. It is important for the insured to understand his duties when making own or presenting TP claims to the insurers which include to:

I. Give notice of the loss/damage/legal liability expected to the insurer within the prescribed period usually 24 hours verbally and 7days in writing to Bumaco Insurance.

II. Furnish particulars and estimated of the loss/or damage.

III. Furnish true proof of loss/or damage.

IV. Make/or present no fraudulent CLAIM. The insured must observe the duty of Utmost Good Faith when dealing with the insurer at all times.

When the insured is presenting a Third party claim under the policy is requesting the insurer to bear a loss or damage of somebody else as per terms of the contract of insurance in force.The insurer BUMACO Insurance, as per the policy will compute the compensation and indemnify the insured.

It is a key requirement that no claim shall be payable until all required particulars have been furnished by the insured within limited time. All third party claimants are required to submit their legal liability claims through the insured under the policy.

Since the subject matter of the contract of the insurance is MONEY and payment of money when the event happens, the policy holder and the agent /Broker shall promptly inform the insurer without delay within three days of an incident which might give rise to CLAIMS

According to the code of conduct and ethics for insurance companies in Tanzania, An insurer shall attend a claim as soon as it has occured, As long as all standard documents required to authenticate a claim has been given to the insurer on inception of policies. We are responsible and happy to settle your claims in a short period of time.Our MISSION is to provide to Tanzania Community quality Insurance information and product Choices with Certainty.

Our VISION is Insurance Services with Certainty.

We meet and exceed the highest expectation of our customers in All Insurances Covers against;

Fire Personal AccidentsWorkmen Compensation Group Personal AccidentsDomestic Package Employers LiabilityTheft/Burglary Professional IndemnityMotor Engineering Contractors All Risks Public Liabilities Plate Glass Bonds Fidelity Guarantee Money Insurance Personal Accidents Workmen Compensation Group Personal Accidents Domestic Package Employers Liability Theft/Burglary Professional Indemnity Malaika Credit Insurance

We invite you to be our Clients

HAKUNA UMBALI KATI YETU

HOW WE HONOUR THE PROMISE TO OUR INSUREDS

BY RAMADHANI MONGICEO. Bumaco Insurance Co.

John Raymond LaBrosse International Advisor on Deposit Insurance

There has been much speculation regarding a ‘banking union’ for Europe. The idea being most discussed concerns transferring bank

supervision into the European Central Bank (ECB). Support for the idea seems to be growing with positive statements coming from industry people.

Writing in the 14 November 2012 Financial Times, Emilio Botín, the chairman of Santander said: “Banking union is an ambitious, complex and difficult process … but we cannot afford to postpone it.” An important detail to be worked out is how much control over bank supervision will rest with the European Central Bank (ECB) and how much purview will be given member states. It is far from clear as to when Europe will get a new ‘banking watchdog’ but depositors shouldn’t have to wait for that day.

Most of the deposit protection agencies in Europe, at the present time, are “pay box systems” – they are told by some other authority when and how to repay depositors when a bank is closed. As such, they are quite different from the deposit insurance agencies that exist in Canada, Malaysia and the USA.

To improve deposit protection in Europe risks need to be identified and addressed. Surveys by respected authorities have revealed that an effective deposit insurance system needs to embody risk controls. The key aspects to a better management of risks include:

1. The ability of the deposit insurance agency to define what a deposit is for insurance purposes and what types of deposits can be insured;

2. The agency should have an ability to impose conditions on the licensing of new entrants and the authority to place restrictions on the types of deposits that a problem bank may raise;

3. It should have a legislative basis to obtain confidential or commercially sensitive information from the bank supervisor and a member bank;

4. It needs to be able to enter into a Memorandum of Understanding or strategic alliance with domestic and foreign regulatory agencies to obtain confidential information on the condition of a member bank;

5. It must have the authority to create a target fund embodying a risk-related ex ante premium structure;

6. It needs the ability to draw on a line of credit from the national government to support a depositor payout;

7. It should have the ability to implement premium surcharges on member banks that engage in risky financial activities;

8. It requires the authority to cancel a policy of deposit insurance based on well-defined criteria;

9. It would be helpful if the agency has bank resolution capabilities including the ability to create a bridge bank that would allow the transfer of deposits and corresponding assets;

10. The agency should have the authority to participate on committees mandated to address financial stability issues; and,

11. Lastly, the deposit insurer needs the authority to conduct awareness campaigns designed to inform the public of the benefits and limitations of deposit protection.

European depositors would have more confidence in their banks if the agencies that protect their deposits had many of the authorities noted above. Once those changes are instituted the transition to an eventual banking union will be much easier.

7 December 2012 (C) J R LaBrosse

A Banking Unionfor Europe?

10 DECEMBER 23– 31, 2012

11DECEMBER 23– 31, 2012

The National Bank of Commerce (NBC) yesterday rewarded the final round of winners of the Dabo Mshiko

deposit campaign which has been running countrywide since July 18th 2012 and has seen 30 lucky winners double their deposits.

The Handover was done at the NBC Head Office, where four lucky winners from Dar were given their prize money, while others from upcountry branches were rewarded at their respective branches. This round saw winners emerging from Mwanza, Tanga as well as Songea Regions.

Speaking at the Occasion, NBC’s Brand and Advertising Manager, Mr. Arden Kitomari said, “It has been a great few

months, and we have rewarded many of our loyal customers for their patronage, and have managed to meet our objectives set for the campaign.” Mr. Kitomari also said, “We intended to come into the market differently this time, by celebrating our 45 years of banking excellence with our customers through this unique promotion, and that objective has been met”.

Mr. Kitomari added, “The promotion has been greatly successful as we have managed to reward customers from various areas ranging from Dar to as far as Makambako.” Not only have customers been rewarded through this promotion but the bank has managed to attract over 15000 new customers during the campaign period”.

In order to participate in the promotion, customers were required to deposit money in their personal current accounts, ordinary savings accounts or Malengo accounts. At the end of every month, 10 lucky customers were selected through a lucky draw and thereafter their accounts credited with double the amount deposited.

The promotion ran alongside another promotion which was aimed at rewarding NBC Islamic Banking Customers by giving them a chance to win two fully paid packages for two to perform Hajj in Mecca this year. The promotion dubbed NBC Hajj Promotion, the first of its kind in the country ended last month and two lucky winners, received their fully paid for packages to Mecca with their partners to perform Hajj.

Note That;

NBC is one of the most represented retail bank in the country with 45 years experience in providing financial services. Apart from offering traditional banking services, NBC also prides itself with an expanded branch network and footprint. NBC has 52 branches, 302 Visa enabled ATMs, and over 264 Points of Sales strategically located throughout the country. NBC has employed over 1400 staff

Conveniently everywhere. For more information contactEddie Mhina, P.R Consultant, NBC, eddie.mhina@nbctz.com

The Winners of Dabo Mshiko

12 DECEMBER 23– 31, 2012

The NBC Hajj Promotion which was being conducted by the National Bank of Commerce (NBC) last week finally came to an end where two lucky winners were selected and rewarded with fully paid packages for two to perform Hajj in Mecca, next month.

The campaign was launched in early July as part of the banks celebrations to mark 45 years of providing banking services.

Speaking at the Occasion, NBC’s Islamic Banking Acting Head, Yassir Masoud said “It is the first time for such a promotion to take place in the country and once again, we at NBC have dared to venture where others have not thought of before, by being the first bank in the country to send our loyal customers on this holy journey.” He added “Since the beginning of this promotion, all our activities have been leading to this exact moment and I am happy to say that it is now time to reward our lucky winners with their prizes”

The prize includes fully paid return tickets for two, accommodation, meals and spending allowances for the winners and their partners.

“As we are celebrating 45 years of serving our customers, and two years since the introduction of Islamic Banking services, we deliberated which would be the best way to celebrate with them, and decided that the Hajj promotion would be an ideal way to not only raise awareness of our Islamic Banking products on offer, but also give an opportunity to a loyal

customer who would otherwise not have been able to take on this holy pilgrimage”.

NBC started offering Islamic Banking services in May 2010. Currently the services offered are Islamic Savings and Current accounts, as well as the recently launched Islamic Business and Corporate accounts. These products are interest free, in compliance with Shari’ah laws, and are open to any customers who are interested regardless of their faith.

The promotion which has been running for over two months officially ended on the 13th September 2012, when two lucky winners were selected.

Note;

We are a caring financial services provider, partnering with all our stakeholders to create prosperity through a customer centric, innovative and diverse product offering.

Conveniently everywhere.

For more information contactEddie Mhina, P.R Consultant, NBC, email: eddie.mhina@nbctz.com

13DECEMBER 23– 31, 2012

14 DECEMBER 23– 31, 2012

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Friday, 21st December 2012 - MARKET REPORT

15DECEMBER 23– 31, 2012

16 DECEMBER 23– 31, 2012

A prolific and internationally respected Indian-American Journalist, Commentator and author engaged the 2008 global economic crisis in a different way. Fareed Zakaria

viewed the financial melt-down as what he calls the “the rise of the rest”, pointing to the economic emergence of China, Brazil, India and other countries that are rapidly gaining grounds in the wake of the crisis that is still threatening certain counties who are member of European single currency

As a spectator following the new trend in world affairs, it is important to give attention to a recent visit by British Prime Minister David Cameron as he load or jam packed the royal airliner with leading British investors seeking investment from East and Southeast Asian Countries. Prime Minister Cameron headed for Indonesia, Malaysia, Japan and Burma particularly seeking new investments for the Queen’s nation.

In Japan, Mr. Cameron appealed for investments in his country and said countries in East and South East Asia represented a huge investment opportunity for his country. He praised the Japanese carmaker –NISSAN for its plans to build a new factory in Sunderland that could create more than 300 jobs in Britain but also create jobs in supply chain processes was vital to British economy.

Panasonic is also expected to set-up a fuel research centre in Cardiff while Mitsubishi is setting-up a wind turbine generator project in Edinburgh. Prime Minister Cameron was seeking contracts for British Companies for a planned decommissioning exercise of Japanese Nuclear facilities following an earthquake and Tsunami which led to the Fukushima Nuclear disaster.

A leading Magazine in Indonesia, The Jakarta Post described the visit of the British Prime Minister to Jakarta as a move to seek investment for his ‘beleaguered nation’s businesses’. Prime Minister Cameron sought to further strengthen trade links with the world’s most populous Muslim nation which included a deal with the Indonesian carrier Garuda for the purchase of eleven aircraft from the British plane maker Airbus. Cameron and his team of British Investors were seeking to increase investments in the country which has dropped from a record 1.89 billion to a meager 419million.

Prime Minister Cameron also headed for Kuala Lumpur, Malaysia for another two days official visit, insisting on greater international trade between the two countries. In 2011 the United Kingdom was Malaysia fourth biggest trading partner with trade totalling 4.23 billion United States Dollars while Malaysia was the UK second biggest trading partner in the whole Asia. In the manufacturing sector, investment from the UK stood at around 6.23billion United States Dollars from all implemented and approved projects (New Straits Times, April, 2012).

The move by the British Prime Minister to the East is just one in a series of moves by western powers seeking new investment in Asia and other developing nations of the world as they leave the economic drought Europe and the United States of America. There have been more calls from countries in the West for more openness in trade from the Asians and other developing countries in Africa. There has been more trade litigation cases brought against developing countries at

Can financial institutions in East Africa countries be able to withstand the stress from spilled-over effects of a damaging

economic outlook from western countries? the World Trade Organization (WTO) involving unfair trade practices than any time in the history of that organization. But the question is why Europe and United States calling for open markets at this time? These litigations are not actually meant to see a more just market for competition; instead it is intended to use the World Trade Organization to Coerce Developing and emerging countries to immediately open their markets to assist in the current economic difficulties face by countries in Europe and the United States of America. My concern is could this opportunity open new avenue for east African counties if they can trade as one block?

The European Union has taken more cases to the WTO through the 1948 establishment of the General Agreement on Trade and Tariff (GATT) involving protectionism policies and huge trade barriers such as excessive tariff on the importation of products from these weak economies in Europe created by the crisis.

To justify their move to the WTO and place them in a comfortable position, these countries in Europe have taken steps to reduce tariff on the importation of goods in their countries but unfortunately these European countries are becoming less of a target for developing countries simply because most countries in the world are reluctant to sell their products in an environment where there are big austerity measures-which I call profuse and indiscriminant cuts in overall spending.

Today, the Obama administration is pressing Vietnam and Malaysia to open-up for free trade under the Trans-Pacific partnership and is also calling the two governments to reduce monopolies enjoyed by the state corporations in certain sector of the economy. The US government wants Malaysia to reduce monopolies enjoyed by PETRONAS, a state oil and gas corporation in Malaysia basically due to the fact that the company is standing even stronger than most US-owned oil and gas companies. The company (PETRONAS) profit in 2010 stood at 40billion, 10billion clear of the US oil giant ExxonMobil of 30billion (Foreign Policy magazine, April, 2012).

It important to bring out these facts about the current trend in world financial and business affairs pointing to many facts that leaders in the developing world can take cue or use as vantage point to protect their markets from the stress of the economic down-turn that is currently crippling western economies. Financial institutions in developing countries might not be able to withstand the stress from spilled-over effects of a damaging economic outlook from western countries.

The reasons are simple to note, because Africa in particular might not have the infrastructure, solid economy and financial base to relieve their banks from collapse in the instance where they need funding to survive. Another reason is that Africa for example is still struggling with unemployment and therefore any more economic measure in Africa in the form of austerity will only be a final nail on the coffin for its people. It is therefore important to stop institutions in developing countries from mingling with European institutions to safeguard these entities.

Economic policymakers in developing countries should be cognizant of the fact that while these crippling economies in Europe and United States are pressing for open market is a clear attempt intended to help absorb some of the risk from these economies under the pretext of seeking free trade under the WTO protocols; they are also jealously protecting what is left of their own markets.

For example, countries in Southeast Asia are also pressing the United States to open its shoes and clothes industries to the outside world though they are yet to adhere at least for now because there is huge custom duties and tariff associated with importing clothes and shoes in the United States. Now it can be clearly seen that the West is pressing the developing world to live up to WTO protocols but also closing their markets to the rest of the developing world.

It will be cataclysmic if policymakers in the developing world fail to settle down for a 50-50 arrangement where all countries will be treated fairly and all markets are open consistent with Marrakesh, morocco and the Lisbon, Portugal protocols on fair trade practices. This is why we are constrain to support the Brazilian government move to take some protectionist measures to safeguard the Brazilian market by providing new incentive for company that are 60% Brazilian owned. It must be made extremely clear that not all aspects of protectionism are against free trade. It is the responsibilities of governments around the world to promote investments and competition on the home turf. This is why Professor Michael Porter contends, that companies must first succeed at home before finding solid grounds in the international markets. Japanese companies have succeeded in doing that very well.

I am also constrained to support the Argentine President move to strengthen businesses in her country. Now the government is asking companies to ensure export must be equal to import mainly from European countries. This has annoyed the European Union, but the Argentine government reason is simple and realistic. European Union countries were basically not buying Argentine products because they don’t have the money but instead they were exporting into Argentine market. Now what happens as a result of this, is that you putting Argentina into Balance of Payment deficit because they will be importing more than they will be exporting thereby challenging the strength of Argentine currency. Though realistically it is almost difficult if not impossible to achieve 50-50 import and export but it is good to export more which places a country in favourable Balance of Payment in most instances.

I recently was surprised when the Government in Thailand was shocked after a projected export to European countries felt by 3% which has worried the government in Bangkok. No one should tell the government in Thailand that trade with Europe is in trouble because the government sees economic crises in that part of the world characterized by big austerity (huge spending cuts). It was funny to me because why will the Thai government thinks that people in these countries will continue to buy when there is no money in their pockets or they expect the people to use rocks to purchase, Common logic. Austerity is not just spending cuts on non-essential areas, it includes cutting salaries, increase taxes, cuts in Health care benefits, pensions and also cuts on education, infrastructure and just everywhere to save money and pay debts.

The government in Thailand can basically adopt a strategy of focusing on Domestic Consumption because it has the population or turn to other markets like the African or South American markets or even in the Caribbean until things can stabilize in Europe which I doubt can happen anytime soon.

It remains the responsibility of policymakers in these developing economies to argue in a different and strong way before the trade governing body (WTO) that local markets must be protected against an aggression from desperate investors from Europe and the United States who are now looking for more secure ground for investments. There should be no mistake about this, the economic situation in Europe is far from over because institutions are still being downgraded and most banks are still failing the stress test conducted on the their ability to respond in case of an immediate shock. Today the fourth biggest bank in Spain, Bankia is asking for government bailout in the tone of 19 billion United States dollars.

The simple definition for news in the context of journalism is that news is an unusual event. In this situation, it is no news to see Indonesian President Susilo Bambang Yudhoyono load an Indonesian carrier of investors to seek investment from Europe or to see Malaysian Prime minister Najib Razak leave Kuala Lumpur to seek investment in London because these

By. Hildebrand Shayo, PhD

CONTINUED ON PAGE 17

17DECEMBER 23– 31, 2012

Source: Syntex GlobalContact:xftanzania@gmail.com

Xtreme Fuel Treatment (XFT) is a revolutionary fuel conditioner that has recently been introduced to the Tanzanian market. Already used around the world

by large industrial companies for the past two decades, XFT has saved companies millions of dollars by preventing hours of downtime while also helping the everyday man maintain his engine and save money on fuel costs in his own personal fuel consuming machines.

The main benefits of XFT is it increases fuel economy, dramatically improves the life of your engine and the length of time that you can go between services, increases horsepower/improves performance of the engine, and substantially reduces emissions.

XFT works by promoting the combustion reaction to achieve a more complete burning of fuel. The more fuel burned in the combustion chamber during the flame front event, the more chemical energy goes into creating power rather than wasting heat energy or having to be further burned. There are several components in the XFT conditioner that allow it to be so beneficial to the engine. The main ingredient is the organometallic burn rate modifier that lowers the ignition point of the fuel by several hundred degrees, this allows the fuel to start burning

sooner and provides a more complete burn that inhibits the fuel from burning too hot or fast. A lubricating agent and fuel stabilizer are other ingredients in XFT that help engine parts reduce friction and inhibit the break down of fuel. This enables the engine to become more efficient while getting the most out of every drop of fuel.

The largest mining company in the world, P.T. Pama, uses XFT in their dump tucks and are able to extend engine repairs from 15,000 to 25,000 hours which continually saves the company millions of dollars. Other individuals have been able to see immediate savings and greater engine performance after their use of the fuel treatment. Timothy Kilora states, “ Since I have started using XFT, I have been getting an extra 100km a week added to my normal driving schedule. It has really helped save me money on petrol that I can now use for other things.” Another example of XFT working for a large-scale operation was during the 2002 Pre-Olympic trials in Salt Lake City, Utah (USA) one location was using 3,000 stationary kilowatt generators that were consuming 3,312 liters of fuel per day. After using XFT their consumption fell to 2,461 liters with a savings of 851 liters a day!

XFT is a highly beneficial product that could revolutionize the petrol consuming Tanzanian market. Generating cost savings in so many ways, it is a wonder why it has remained a secret from for so long.

How it Works Xtreme Fuel Treatment™ contains an oil soluble organo-metallic compound which functions as a ‘burn rate modifier’ and a ‘catalyst’ to lower the ignition point of fuel in the combustion chamber by several hundred degrees. Simply stated, this means that the fuel burns longer and more efficiently, causing your engine to burn more of the available fuel it gets rather than less of it. What does this mean to you? Enabling a more complete burn process means you use less fuel because you are using the available fuel more efficiently. This means better gas mileage and money saved! A more complete burn process increases the available horsepower and torque, thereby improving your vehicle’s power. A better burn also results in less carbon buildup on engine parts and fewer emissions from the exhaust pipe. Less carbon buildup means less wear on the engine which can translate into fewer repairs and extended engine life.

XFT™ History Xtreme Fuel Treatment™ is a product patented and time tested for nearly two decades in industrial markets around the world. Extensive testing and performance measurement data prove that it really works! Until today this product has only been used in large industrial applications and has only been sold in bulk quantities. Now, for the first time ever, XFT is available to the general public for use in all types of engines.

4 Key BenefitsXFT™ is a break-through product which produces results in four key categories:

1. Increases Gas Mileage Reduces fuel consumption resulting in increased miles per gallon.*

2. Prolongs Engine Life & Reduces Engine Wear A cleaner and more lubricated engine means longer engine life and reduced wear.

3. Improves Vehicle Performance & Horsepower: Burns more of the available BTU’s in the fuel resulting in better performance.

4. Reduces Harmful Emissions & Pollutants: Reducing harmful pol lutants f rom the exhaust pipe results in a cleaner environment.

Just a quarter ounce of XFT™ treats up to 20 gallons of fuel making this product the most comprehensive fuel treatment available. Using XFT™ allows the use of lower octane gas with no decrease in engine performance!

*Studies show a significant increase in fuel economy and engine life as well as environmental benefits. However, individual results may very depending on driving habits, age of vehicle, weather, traffic, terrain and other variances.

Components of Xtreme Fuel Treatment™XFT™’s unique formula contains many ingredients, each designed for a specific purpose:

Fuel Stabilizer – Prolongs the life of stored fuel; ideal for seldom used equipment.

Polymerization Retardant & Dispersant Reduces sludge buildup in fuel which can plug filters.

Rust and Corrosion inhibitor – Prevents tank and fuel system corrosion caused by oxidation and condensation.

Demulsifier – Helps remove water from fuel.

Combustion Catalyst – Extends the burn rate of fuel during combustion to provide a more complete fuel burn resulting in increased gas mileage, fewer harmful emissions and less carbon buildup on engine parts.

Detergents – Removes harmful deposits from fuel pumps, injectors and throughout the fuel system.

Lubricants – Provides lubrication to pistons, fuel pumps and injectors, reducing friction and prolonging the working life of the engine.

For questions regarding the use of Xtreme Fuel Treatment™ call 801-386-5007 or write support@syntekglobal.com

™

are traditional places where developing countries seek investment for their countries. But a Royal Aircraft fill with more than 30 British investors seeking investments in Asia is more newsy than anything else in recent times in the context of the current economic situation in the world. This is a chilling reminder that Prime Minister Cameron can no longer seek economic happiness for his country through the European Union framework with some countries planning a pullout from the organization. Former French president Nicholas Sakorzy openly criticized some countries in the bloc for joining the EU under false pretext and lying about their economic standing.

There are good advantage in the Asian and African markets that both continents can tap on for growth and development. European companies too are running from their own continent because labor is very expensive in the west. The Asian-Afro collabo can work around a relatively cheap labor force and heavy population and a reasonable cost of living to increase the productivity of the two continents by investing more in their two continents.

The world has changed and international political players must be willing to accept the changes in world financial and business affairs. Unfortunately there are countries mainly in the developing world that are not willing or possibly still living in the past that have refused to follow the inevitable change in world affairs.

In the 20th century the United States and possibly countries in Europe decided the trend in world trade and were the big brothers in deciding the way the world economy should run. This situation has changed because there are many countries making substantial use of the natural and human resources and can use these to strengthen their position in key decision making aspects of the world-even president Obama and the Europeans are aware of these existing facts. This is why the current U.S administration is seeking international consensus on issues before making decision. In the absence of a consensus, decisions from one end will certainly fail.

However there are still some issues of fear running in the minds of these developing countries about the remaining capacity of the United States or other 20th century power brokers to decide the course of action. Of course the United States is still a significant force but its power has dwindled in this 21st century.

Most developing countries still vote in various international organizations not on the basis of solidarity for fellow developing country but those votes are characterized by vested western interests. These tendencies can only continue to put developing countries in a begging position for a very protracted period of time.

The recent election of the Korean-American Medical Doctor to the position of president of the World Bank is a chilling reminder of series of unresolved global issues and the lagadisical attitude of governments in the developing world to stand tall on these issues.

The Colombian candidate for the Job Jose Ocampo complained on international wires that his own government was not supporting him. It later turnout to mean that the government in Bogota (Colombian capital) was supporting the American candidate; instead it was the government of Brazil that nominated the former Colombian Finance Minister.

The argument here is not to push the United States or Europeans away from decisions related to world economies as these countries or continents remain indispensible stakeholders or shareholders in world affairs. However it is understandable to note that except you living on utopia that the world has changed.

This is a great opportunity for all countries to sit on the table and shuffle the cards evenly in clear view of everyone. This argument is also not meant to say all countries on planet earth can be equal but also there can be times where things can shift from one region to another.

Therefore we are speaking of the emerging shift in world economy and politics and it is only but gracious for all to accept these shifts on the world stage. A sneezing America-Euro should not give East Africa region cold.

Can financial institutions in East Africa countries be able to withstand the stress from spilled-over effects of a damaging economic outlook from

western countries?

CONTINUED FROM PAGE 16

18 DECEMBER 23– 31, 2012

19DECEMBER 23– 31, 2012

Business the21st Century way

By Mokka city Café and lounge Manager Benson Wambugu

The world has long left behind the pure dynamics of the large corporation and the world of

the cubicle. It has said goodbye to the rules that say that business can only be conducted in person and in a three-piece suit in offices and board rooms. These days business is done in boardrooms, offices, spare rooms and coffee shops. The world of business is virtually connected and the requirement to be a “brick-and-mortar” operation where everyone is in the same location is a 20th century perspective.

This is an age where business is done not only on the golf course and the country club, but also in coffee houses and restaurants and across the Internet. Cell phones, instant messages, social networks and all kinds of technology connect and redefine the “confines” and boundaries of our business structures and relationships. While some businesses will always have brick and mortar, others can live virtually and grow anywhere and everywhere.

Things that are and should be confidential are broadcast over the “push to talk” cell phone of an employee as they sit in the sun outside the local coffee house. The bid you are preparing is being discussed openly and loudly over lunch at the local pizzeria.

Documents and computer screens with confidential information can be casually viewed over the shoulder by anyone passing by a table or when someone leaves the table for a refill or bathroom break. A click of a camera phone and your information

is captured and on its way to who knows where and whom. A well-placed voice recorder and all your strategy and bid information is at your competitors’ fingertips (or ears).

A client recently was using his computer in his office and suddenly realized that information was being copied as he worked … hacked in place with security on the laptop. Quickly unplugging all power was his only option because nothing else was working, he headed to Mokka city Café and lounge with a depressed office uncertainty and disbelieve. Only pride could compare to the joy he had finding out that Mokka city has free wireless internet and could work in leisure out of the untrusted office and meet his objectives.

There have been many occasions where I’ve been in a coffee shop and heard information about expansion

plans, bids, sales figures, finances and much more than I should have. This was information that should have only been shared between attorneys, consultants, colleagues and employees. How much information could a competitor get on your business from following you around from coffee shop to restaurant?.

The ability to do business anywhere is a luxury that is to be enjoyed and well-guarded. Don’t take it for granted and be sure you take steps to protect the flexibility and scalability that being virtual can provide. From home offices to coffee houses to corner tables and offices, business can be done virtually anywhere, but regardless where you do business, be savvy in how you conduct business or you may find yourself hanging the sign “out of business” on your real or virtual doors.

Business Meeting PlacesCOFFEE

Mokka City Cafe and Lounge is the place to conduct your business and also a fine meeting place for unwinding at the end of the day.

Continued from Issue Two …..

Beans – After you’ve bought some high-quality, freshly-roasted beans, the next step is to keep them fresh. One of the best ways to do this is to buy whole beans, store them in an airtight container, and grind them just before brewing. By doing so, you’ll help keep the flavors of the beans locked in until you’re ready to taste them.

“Every time you buy fresh coffee beans and ask the checkout person at the coffee shop to grind your beans you are opening up the “flavor cells” and causing your beans to begin losing their flavor rapidly. The purpose of grinding the beans is to create a larger surface area that will release the flavor and oils to the surrounding hot water. If coffee is prematurely exposed to air, it “breathes,” leaving less and less flavor for the brew, when the water finally hits the bean.”

3) The French Press – Also known as a press pot, this simple coffee making device is said to have originated in France during the 1850′s. The press is normally a glass cylinder with a “plunger” like device that fits tightly into the circumference of the cylinder. The plunger features a handle with some sort of wire or nylon mesh that pushes the coffee grounds to the bottom, trapping them there after a few minutes of brewing. If you’re serious about coffee, ditch your fancy automatic coffee maker and try the french press.

How to Brew Coffee with a French Press

1. Grind your beans, leaving them a bit more large and coarse than you may be used to seeing. You will want approximately 1 tablespoon of grounds per cup. Dump them into the bottom of the French press.

2. Use a kettle to boil your water. You want to let it sit for a couple of minutes after boiling before adding it to the press. Don’t fret too much about temperature, but most coffee geeks recommend 180-20o degrees Fahrenheit.

3. Pour the hot water into the French press, slowly covering all of the coffee grounds as you fill it up. Immediately stir the grounds to give the mixture a nice uniformity.

4. Add the filter on top and let the coffee steep for 4 minutes. After the time has passed, press the plunger down and you’re ready. A perfect cup of coffee awaits you like a loyal friend.

Other ways of preparing are there and require more equipment.

Brewing the Perfect Cup of Coffee

By Mokka city Café and lounge Manager Benson Wambugu

The Financial Junction is a weekly Journal, of Global Plexus Ltd: P.O. Box 31113 Dar es Salaam, Tel: +255 22 2127210, Sales Cell: +255 713 381620, Tanzania NSSF Nyerere Towers 6th Flr, Bibi Titi/Morogoro Rd Junction.

Flightlink is a Scheduled and Corporate Air Charter

Operator with bases in Dar Es Salaam Mbeya and

Arusha.

The Company is made up of Experienced and talented general aviation professionals, providing strong foundation to achieve its VALUES & OBJECTIVES.

Flightlink Provide Quality Service, Be customer Oriented, Have Operational Efficiency with Team Spirit, Continuous improvement of fleet and understanding customer requirements, be conscientious and responsible with sincerity.

The Company Operates a Fleet of Cessna 208 Grand Caravans, Cessna 206 all fitted with Cargo pods for Schedule Flights, with daily flights to Zanzibar, Arusha, Pemba Iringa, Mbeya and to all the national game parks in Tanzania.

The citation Jet can also be used for personalized VIP charters, embassies, NGOs leading business houses, Airline passenger transfers, Urgent missions and by any other client wanting to travel in our fast, comfortable and luxurious Jet.A solid and reliable private mid-size jet that can take off and land anywhere at the cost of light jet travel. This makes it an economic way of travel and a welcoming addition to the Tanzania.

The new jet Cessna 560 will have new interior designed to meet the comfort and

luxury of the customer.

The aircraft comfortable accommodates up to 8 passengers with great ease and features a hot and cold beverage area, a well equipped Mini Bar, flushing toilet and a satellite phone (AirCel) and a spacious baggage compartment larger than any other jets in its class.

With the Introduction of Medevac Flights, Flightlink will strive to be the most comprehensive aeromedical company in Tanzania, Using Cessna Citation 560 Aircraft Powered by Twin Pratt Whitney (JT15D) Turbo Fan Jet Engines, fitted with state of the Art Life Port Air Ambulance Kit. Medevac mission includes mechanisms like patient loading utility system, advance life support base unit, manual load system and Aero sled Stretcher for a smooth loading and ride for the patient.

24Hrs Emergency Medevac and Repatriation services will be offered to those who live work and travel in Tanzania and Neighboring Countries

This is the first Jet in Tanzania boasting all these advanced features for your comfort.

For more Information please contact Flightlink:

marketing@flighlink.co.tz - cmd@flightlink.co.tz

General Reservation: +255782354448/9

DECEMBER 23– 31, 2012

BMW first launched the X6 crossover-coupe for the 2009 model year, calling it a “Sport Activity Coupe.” Mechanically identical to the X5 crossover, the X6 trades cargo and passenger space for a rakish roofline and also provides surprisingly sharp handling given its large size (especially in high-performance X6 M form).

BMW gave the X6 a mild update for the latest model year, with changes including slightly tweaked styling and a new M Sport Package that boosts output for both of the crossover’s engine options.

Daring DesignAs the photos reveal, the X6 has anything but a conservative look.

The X6’s roofline begins arching downward after the B-pillar and continues plunging right to the X6’s rising waistline. As a result, second-row headroom and rear cargo volume are both compromised.

The new X6 is longer and lower than the new X5, seating only four. But what the sporty X6 loses in seating and storage, it gains in uniqueness.

Compared to the X5, the X6 has almost an inch of additional wheelbase length, and two inches of added width. The overall height of the X6 is a whopping 3.3 inches lower than that of the X5.

The main stylistic change for the latest model year a revised front fascia complete with a new grille, foglamps and optional adaptive LED headlamps (Xenons come standard). Continuing the LED theme are the taillights, which are newly designed and feature two LED-fed light banks with horizontal alignment.

Powertrain Choices The range-topping X6 xDrive50i is propelled by a twin-turbo 4.4-liter V8 unit that produces 400 horsepower at 5500 rpm and 446 pound-feet of torque between 1750 rpm and 4500 rpm. The sprint to 62 mph takes just 5.4 seconds and fuel economy is rated at 14 mpg in the city and 20 mpg on the highway.

The X6’s other engine is a 3.0-liter inline-six with a single turbocharger. This motor churns out 300 horsepower and 300 lb-ft of torque and returns fuel economy figures of 16/23 mpg.

Both engines send power to all four wheels via an eight-speed automatic transmission.

M Sport Package A newly available M Sport Package is on offer for those looking for a bit more performance from their coupe-crossover. For the X6 xDrive35i, the package ups power to 315 horsepower and 330 lb-ft of torque, while the X6 xDrive50i sees a boost to 440 horsepower and 480 lb-ft of torque.

The package also includes a little extra show to match the extra go: 20-inch light alloy wheels, black chrome exhaust tips, stainless steel pedals, M foot rest and door sills, shadowline exterior trim and anthracite headliner are included.

Equipment and Options Standard features include leather upholstery, genuine wood trim, power adjustable seats, a 10-speaker, 205-watt audio system with an iPod USB adapter, 19-inch alloy wheels, a sunroof, automatic climate control, a power tailgate, front and rear Park Distance control and more.

Heated seats, a heated steering wheel, a navigation system, a 600-watt premium audio system, multicontour seats, a lane departure warning system, dynamic cruise control and a rear parking camera are highlights from the options list.

Key Competitors The X6’s only true competitor is the Acura ZDX, which features dramatic styling inspired by the BMW. Those willing to trade the X6’s unique looks for a lower purchase price and more interior space should consider the Infiniti FX50, the Audi Q7 and BMW’s own X5.