Thursday, November 21, 2019
   
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The Sugar Board of Tanzania (SBT) has decided to adopt the bulk procurement system,    TPJ can report.

The PBPA’s Director General, Erasto Simon revealed the move when briefing members of Parliament on SBT’s operations, during a workshop on energy and minerals which was held in Dodoma over the weekend.

Mr. Simon said the board’s decision was influenced by the outcome of a case studies related to both petroleum and fertilizer importation in the country which have became success stories in terms of value for money attained.

“After the great achievement in petroleum bulk procurement and fertilizer bulk procurement, the sugar board became eager to borrow the experience and try it in sugar importation,” he said and explaining that they had found a number of significant benefits of bulk procurement, including price reduction, easing of congestion at the Dar es Salaam port and improvement in tax collection.

He also said that the system helped the government to get accurate statistics of the imports.

“The accurate data due to the new arrangements have helped the government in revenue collection and expenditure planning. It has improved petroleum availability and easen its supplies as oil ships can now offload oil at Mtwara and Tanga ports,” he said.

According to Dr. Simon, the system also has stemmed loop holes for corruption and has provided operators in the country with a fair business ground.

However, Dr. Simon also mentioned inadequate space for storage, delay of making payments by importers and delay in verification of payment among the major challenges faced by the syetem.

Last year, Ewura General Director, Mr Felix Ngamlagosi told the press that the country had saved over 120 billion shillings which would have been spent on expenses such as demurrage costs due to ships staying too long at the port.

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