22 April 2019

Tanzania: Sugar Board Envisions Bulk Procurement of Sweetener

SUGAR Board of Tanzania (SBT) envisages emulating the Petroleum Bulk Procurement Agency's (PBPA) importation system in sugar imports.

The sugar board has already asked the PBPA to help through experience sharing, according to the agency's Director General Erasto Simon.

Speaking at a workshop for Parliamentary Committee on Energy and Minerals here over the weekend, Mr Simon said great efficiency in petroleum bulk procurement has impressed the sugar board.

"After the great achievements in petroleum bulk procurement and fertiliser bulk purchase, the sugar board also wants to borrow our experience and try it in sugar imports," said Mr Simon as he briefed the legislators on PBPA operations.

Mr Simon cited reliable availability of petroleum products in the country for all time and price control as some of the great achievements of the bulk procurement arrangement.

He said the arrangement has helped the government to get accurate statistics in petroleum sector, saying the government now uses available data to enforce revenue collection.

"The reliable data have helped the government in revenue collection and expenditure planning.

The system has improved petroleum availability... oil ships can now offload oil at Mtwara and Tanga ports," he observed.

Mr Simon said bulk procurement has provided the country with single instrument to import petroleum, adding that the system addresses challenges in petroleum purchase for new oil companies.

"The system has provided oil business operators in the country with fair business ground because of same importation costs. It has also addressed loopholes for corruption in petroleum importation," he said.

As for challenges, Mr Simon, said some petroleum importers delay making payment as per agreement, inconveniencing oil suppliers, adding that delayed verification of payment documents is also a problem.

"We also face challenges of inadequate space for petroleum storage before supplying to oil marketing companies," he said.

Mr Simon said PBPA plans to conduct assessment on its operations to improve petroleum importation, saying the assessment will involve Energy and Water Utilities Regulatory Authority (EWURA) and oil marketing companies as well as Tanzania Ports Authority (TPA).

"PBPA in conjunction with EWURA will also install flow meters in pipelines transporting petroleum from ports to oil reserve tanks," he said.

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