EXPRESS SHIPPING FOR EXPRESS GROWTH
TBY talks to Femi Olaiya, Managing Director–Tanzania of DHL Express, on growth opportunities in express services, the telecoms and energy industries, and overall trade.
BIOGRAPHY
Femi Olaiya has been working as the Managing Director-Tanzania for DHL Express since March 2017. Prior to that he worked for DHL in Nigeria, South Africa, and Malawi. He studied mathematics and welding engineering in Nigeria, before being certified by Microsoft Corporation in Systems Integration in the US, and Service Desk Management at the Helpdesk Institute of London. He also holds an MBA.What is incorporated in the bundle of services DHL Tanzania provides for businesses, and have you noticed any change in demand for these over the past six months?
DHL's strength, being the biggest and strongest international carrier within the logistics industry, lies in its international express services, since we have a robust network across the world. We also offer domestic deliveries, including import express service, where deliveries are collected from other countries and brought into the recipient's country of residence where they can pay in local currency. It is a unique service that not all providers can offer. As for changes in demand, we have seen a significant increase in customers seeking e-commerce solutions. With Tanzania every day becoming more technologically driven, it is no surprise that many Tanzanians are choosing to shop online. We have noticed a subsequent increase in international companies who are looking to ship goods safely, quickly, and reliably, and they are choosing us as their partner for this. We have received a number of requests from customers who want to integrate with us, and we are working to meet those demands.
What are the comparative advantages of being in Tanzania, and how important is the country for DHL's global footprint?
Within Africa, Tanzania is strategically positioned, in terms of geography, as well as in terms of demographics. All sectors in which we work, such as telecoms and energy, are at the early- to mid-development stage, which suggests considerable potential and growth opportunities. DHL, with its global expertise, network, and experience, is well placed to facilitate such development. We can coordinate the movement of all items and facilities, and provide reliable logistics services for new companies to enter the market. With the new government in place and with new fiscal policies, compliance drives, and revenue drives, there has been a reconfiguration in the ways of doing business, and we need to adjust to that. However, the expectation is that business will pick up as time goes on, and that means that logistics, global trade, and global movement of things from all parts of the world will increase, especially into Tanzania.
How is Tanzania's profile as an attractive destination for FDI changing following these new regulations?
The main thing is maintaining investor confidence. New reforms will position the country in a positive light for investors, showing that Tanzania is re-addressing much of its current business policy. New fiscal and compliance drives will certainly encourage investment in the logistics sector. At DHL, we are already discussing expansion steered toward accommodating the volumes we expect with this imminent growth. Increasingly companies are looking for express logistics centers, as they want to bring their items closer to the end users. Because of this, we are looking to expand our existing express logistics center.
What is your forecast for the logistics sector as a whole?
There is a possibility for growth, but this will depend on movements in the economy, trade between businesses and customers, and continued developments in the e-commerce field. We have been carefully analyzing our shipping trends, activities across the country, change within the government, and budgetary decisions, and have concluded that there will be growth. As the market leader, we will go on investing in our people, equipment, and facilities to ensure that we continue to exceed the demands of our customers. As the first and largest express logistics company in Africa, we are well positioned to service the growth of Tanzania, ensuring its viability and attractiveness on a global scale.
EXPRESS SHIPPING FOR EXPRESS GROWTH
TABLE OF CONTENTS
Guest Speaker
Hon. Patricia Scotland, Secretary General, Commonwealth of Nations
TBY talks to Hon. Patricia Scotland, Secretary General of the Commonwealth of Nations, on the advantages of being a member of the Commonwealth, the need to celebrate diversity, and Tanzania's war against corruption.
read articleGuest Speaker
Libérat Mfumukeko, Secretary-General, East African Community (EAC)
TBY talks to Libérat Mfumukeko, Secretary-General of the East African Community (EAC), on Tanzania's importance to the EAC, the major achievements of regional integration, and obstacles ahead of a monetary union.
read articleInterview
Raymond P. Mbilinyi, Executive Secretary , Tanzania National Business Council (TNBC)
TBY talks to Raymond P. Mbilinyi, Executive Secretary of Tanzania National Business Council (TNBC), on its work to support the private sector in the country, tackling challenges in the economy, and clamping down on corruption.
read articleReview: Banking
The Quest for Depth
If Tanzania is to meet its 2025 vision of attaining middle-income status, it will need to corral its bank-centric financial and capital markets for greater depth by extending participation and rendering credit more accessible to SMEs, women, and the young to spur economic growth.
read articleInterview
Dr. Baghayo A. Saqware, Commissioner , Insurance, Tanzania Insurance Regulatory Authority (TIRA)
TBY talks to Dr. Baghayo A. Saqware, Commissioner of Insurance, Tanzania Insurance Regulatory Authority (TIRA), on achieving universal healthcare coverage, the brilliance of microinsurance, and how to partner with public and private entities to increase the industry's penetration.
read articleReview
Legal Thunder
With the stepping down of Minister of Energy and Minerals Sospeter Muhongo in May 2017 over transparency issues and the introduction of three new laws that give the government the right to renegotiate or revoke existing mining and oil and gas rights, private players in the country are unsure of what future lies ahead. On the other hand, project-specific developments bode well for a sector in need of a breakthrough.
read articleInterview
Kapuulya Musomba, Managing Director, Tanzania Petroleum Development Company (TPDC)
TBY talks to Kapuulya Musomba, Acting Managing Director of Tanzania Petroleum Development Company (TPDC), on the planned expansion of the Mtwara-Dar es Salaam natural gas pipeline, entering northern industrial hubs, and empowering nascent industries.
read articleInterview
Marc Den Hartog, Managing Director, Shell/BG Tanzania
TBY talks to Marc Den Hartog, Managing Director of Shell/BG Tanzania, on the critical need for economies of scale, the importance of developing LNG for export, and why renewables must be taken into account in any long-term plan.
read articleInterview
Hon. Charles Mwijage, Minister, Industry, Trade and Investment
TBY talks to Hon. Charles Mwijage, Minister of Industry, Trade and Investment, on how to reach middle-income status, employing the private sector toward this end, and what sets the country apart from the rest of East Africa.
read articleFocus: Helium
Discoveries of Magna-tude
Despite being the second most common element in the universe, helium is in short supply on earth. With global reserves of the gas steadily dwindling, and demand steadily increasing, the discovery of a whopping 1.53 billion cbm of helium in underground chambers in Tanzania could not have come at a better moment.
read articleInterview
Gilliard W. Ngewe, Director General, Surface and Marine Transport Regulatory Agency (SUMATRA)
TBY talks to Gilliard W. Ngewe, Director General of Surface and Marine Transport Regulatory Agency (SUMATRA), on transportation budget allocation and cross-sector dialog and partnerships.
read articleInterview
Jared H. Zerbe, CEO, Tanzania International Container Terminal Services Limited (TICTS)
TBY talks to Jared H. Zerbe, CEO of Tanzania International Container Terminal Services Limited (TICTS), on regional trade flows and Tanzania's potential to take a leading role in orchestrating cargo movement.
read articleFocus: Tanzania Strategic Cities Project (TSCP)
East Africa’s “Geneva”
If Rome wasn't built in a day, it is not surprising that Tanzania's project to revamp eight of its largest cities is entering its eighth year of implementation. A release of further funds from the World Bank has given the project a new lease of life.
read articleReview
Lost in the Maize
Agriculture accounts for 30% of Tanzania's GDP, and the sector has experienced above-average output in recent years compared to the rest of the African continent. However, the sector's development is held back by poor rural farming practices and general infrastructure bottlenecks.
read articleInterview
Fred Kafeero, Tanzania Representative, Food and Agriculture Organization (FAO)
TBY talks to Fred Kafeero, Tanzania Representative of the Food and Agriculture Organization (FAO), on the organization's long-term support for Tanzania's development, recent initiatives in agriculture, and financing.
read articleFocus: 2020 Irrigation Target
Reap What You Sow
In 2006, the Tanzanian Ministry of Water and Irrigation set a target for Tanzania's agriculture sector: to irrigate 1 million ha of land by 2020. More than 10 years on and moving ever closer to the deadline, this target has not yet been met, though the first seeds are being sown.
read articleFocus: Southern Circuit Tourism
Hidden Gems
Tourism is frequently described as the jewel in Tanzania's economic crown. In 2016 alone, the industry contributed over USD2 billion in revenues. However, for at least three years, the government has expressed concern that tourism is not well distributed across the country.
read article
