LOW TELECOMS’ CSR IRKS GOVERNMENT

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Author: JAMES KAMALA
AfricaPress-Tanzania: THE government showed dissatisfaction with the little amount offered by telecoms to the society through Corporate Social Responsibility (CSR).

Thus, the government ordered telecoms to add up and match with requirements while addressing the social needs in the areas they operate.

Minister of State in the Prime Minister Office tasked for the Investment portfolio Angellah Kairuki said the government is striving to provide a conducive investment climate by harmonizing taxes and waiving tedious levies.

“However,” the minister said, “mobile services companies are dishing out very minimal amounts for CSR which ought to change,” said Minister Kairuki during an official tour to four out of seven telecoms on Monday.

The minister’s displeasure came after she was told that Vodacom Tanzania had so far gave back to society only 12bn/- for 20 years and paid direct taxes of over 400bn/- in the same period.

Airtel Tanzania had given out some 8.0bn/- for its life in business while paying 204bn/- for direct tax.

And Zantel Tanzania, in a process to merge with Tigo Tanzania has only paid 200m/- while there was no data immediately available for Tigo.

Ms Kairuki hailed the telecoms to be among top 100 taxpayers and their mobile money innovation which are vital for flourishing business. Vodacom Tanzania, Director of Corporate Communication, Ms Rosalynn Mworia said they have received and working on them.

“We are planning for the best way possible to support social needs in the areas of health, education, agriculture and environment. The budget eyed is around 1bn/- a year,” she said.

Vodacom is the only listed telecom on Dar es Salaam Stock Exchange (DSE) in the country. Yesterday its share traded at 850/- a piece.

Though there are no direct laws or regulations governing telecoms on CSR, in 2017, the Union Parliament passed three laws that made significant changes to Tanzania’s legal and institutional frameworks governing oil, gas and mineral extraction which include corporate responsibility plan.

Under the 2017 Mining Act requires licensed mining companies to pay 0.07 per cent of their gross revenues as CSR to local councils in their areas of operations.

Section 27 of the Amended Act also grants authority to draft regulations relating to local content and CSR obligations.

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