170 difficult to estimate. The Preferred techniques of calculating market values (particular to equity) include stock exchange valuations of listed companies, auditor’s estimates of market values, a recent purchase or sale between directors of the company, Director’s estimate, Financial Manager’s estimate, and accountant’s estimate.
13.13.7Asset An asset is anything owned, whether in possession or by right to take possession, by a person or a group acting together.
13.13.8Net Asset Value This is the difference between assets and liabilities
13.13.9Book Values This is the sum of equity capital + reinvested earnings + other reserves
13.13.10 Regional Classifications: A way to define geographical distribution of economic activities, enterprises and subsidiaries in Tanzania. e.g. Dar es Salaam, Arusha, Mwanza, Mbeya, Tanga e.t.c.
13.13.11 Related Companies Related companies with a direct investment enterprise (10% of ordinary shares) are subsidiaries (a non-resident owner owns more than 50% of the shares) and associates (50% or less). Branches (unincorporated enterprises wholly owned by non-residents).
13.13.12 Equity These are shares in a company, and equivalent ownership interest in unincorporated enterprises. Direct equity Investment denotes ownership of 10% or more of the ordinary shares, voting power, or equivalent in an enterprise, by someone resident in another economy.
13.13.13 Non-equity All other financial instruments including loans, trade credit and supplier credit (for goods and services), bonds, debentures, notes, money market instruments, shareholder and inter-company loans, arrears of debt or interest, and deposits.
13.13.14 Foreign Direct Investment (FDI) This is defined as a case where a resident entity in one economy (creditor) acquires lasting interest in an enterprise in another economy (recipient) with significant degree of influence. Usually, FDI is in the questionnaire of ownership of means of production
171 like factories or equity share including equity purchase, reinvested earnings and inter- company loans and debt transactions. FDI in the census questionnaire is obtained by summing up: new equity investment plus reinvested earnings plus the sum of {shareholder and inter-company loan (long term) + shareholder and inter-company borrowing (short-term) + supplier’s credit from related company (short term)}.
13.13.15 Shareholder and Inter-Company Loans/Borrowing This is the borrowing or lending of funds (among related companies) between the direct investor (non-resident) and the direct investment enterprise (resident). These transactions can create or dissolve investment as well as maintain, expand or contract it.
13.13.16 Foreign Portfolio Investment (FPI) Foreign Portfolio Investment (FPI) are purely financial assets, which include, Foreign Portfolio Equity Investment (FPEI), Investments in Bonds, Money market instruments and financial derivatives other than the items included in the definition of foreign direct investment.
13.13.17 Foreign Portfolio Equity Investment (FPEI) This is defined as a case where a shareholder owns less than 10% of equities in an enterprise. Foreign Direct Equity Investment (FDEI): Is the case of 10% or more of equity share in an enterprise.
13.13.18
Voting (Powers) Rights
This relates to the objective of obtaining a lasting interest in an enterprise resident in
another economy. In the case of direct investment, a 10% or more ownership of the
ordinary shares or voting rights in an enterprise is considered sufficient to empower the
direct investor to have a significant influence over the key policies and management of
the direct investment enterprise.
13.13.19 Dividends These are income on equity. They are the distributed earnings allocated to shares and other forms of participation in the equity of incorporated private enterprise, cooperatives and public corporation.
13.13.20 Reinvested (or Retained) Earnings (Profits) These are the direct investor’s share (calculated as a proportion of direct equity held) of that part of the earnings (after tax on earnings) that are not distributed as dividends
172 by the direct investment enterprise, together with the earnings of branches that are not remitted to the direct investor. This is a component of FDI.
13.13.21
Supplier’s Credits
These include trade credits. On one hand they are claims from the direct extension of
credit by suppliers of goods and services to buyers, while on the other hand they are
reliabilities of buyers of goods and services. In addition, this concept includes advance
payments for work in progress, or to be undertaken, associated with such transactions.
Most are short term.
173 CHAPTER FOURTEEN ENVIRONMENTAL STATISTICS
14.0 Environment Environment refers to the physical surroundings of human beings, including air, land, water, climate, sound, light, taste, micro-organisms; the biological factors of animals and plants; cultural resources and socio-economic; aesthetics factors, including both the natural and built environment and the way they interact. (National Environmental Policy, 2021).
14.1 Environmental Statistics Refers to the application of statistical knowledge to environmental science aiming to conduct the qualitative and quantitative analysis of the environment and provide information of natural aspects and human factors. Tanzania conducts environmental statistics in three areas of Environment namely; Climate change management; pollution management; and biodiversity conservation (variety of living species on earth including plants, bacteria, animals, fungi etc).
14.1.1 Afforestation Is the process of planting large number of the same or different tree species on land which has few or no trees on it.
14.1.2 Reforestation
Refers to the process of replanting or regenerating forest in an area where the number
of trees has been decreasing or destroyed for the benefits of mankind.
14.2 Pollution
Pollution is the introduction of harmful materials into the environment. These harmful
materials are called pollutants. Pollutants can be natural, such as volcanic ash. They can also
be created by human activity, such as trash or runoff produced by factories.
14.2.1 Air Pollution Refers to the release of pollutants into the air at a concentration that interferes with human health or welfare, or produces other harmful environmental effects that are detrimental to the planet as a whole
14.2.2 Water Pollution Contamination of water bodies such as rivers, lakes, oceans, and groundwater by harmful chemicals or waste materials. This can occur through various sources such as industrial activities, agricultural runoff, sewage discharge, and oil spills.
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14.2.3 Physical Pollution
Physical pollution refers to the presence of solid waste, litter, or debris in the
environment that can negatively impact ecosystems and human health. This type of
pollution includes items such as plastic bags, bottles, tires, and other man-made
materials that are not properly disposed of and accumulate in natural habitats.
14.2.4 Noise Pollution
Noise pollution is considered to be any unwanted or disturbing sound that affects the
health and well-being of humans and other organisms. Sound is measured in decibels.
14.3 Catchments Area The area of land that collects water and from which water flows into a river or reservoir.
14.4 Climate Change Is the long-term change in the average weather patterns attributed directly or indirectly to natural and human activity that alters the composition of the global atmosphere and that is in addition to natural climate variability observed over comparable time periods.
14.5 Deforestation Is the process in which large area of forest lands are cleared or removed from an established forest for various human activities.
14.6 Desertification Refers to the process by which fertile land becomes desert, typically as a result of drought, deforestation or inappropriate agriculture activities.
14.7 Disposal of Waste Refers to the collection, sorting, transport and treatment of waste as well as its storage and tipping above or underground; the transformation operations necessary for its re-use, recovery or recycling.
14.8 Emission Discharge of pollutants into the atmosphere from stationary sources such as smokestacks, other vents, surface areas of commercial or Industrial facilities and mobile sources for example, motor vehicles, locomotives and aircraft.
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14.8.1 Emission Factor (Coefficient)
It is a ratio of the amount of a pollutant generated to the amount of a given raw material
processed. It may also refer to the ratio of the emission generated to the output of a
production process.
The general equation for emission is: E =A x EF x (1-ER/100) where: E = emissions,
A =Activity rate, EF = emission factor, and ER =overall emission reduction efficiency,
%.
14.8.2 Emission Standard It is the maximum amount of a polluting discharge legally allowed from a single source, mobile, or stationary.
14.9 Environmental Costs Costs connected with the actual or potential deterioration of natural assets due to economic activities. Examples include the costs of cleaning up oil spills or cleaning a polluted river. A company may also incur fines or other penalties or lose sales if it acquires a poor environmental reputation.
14.9.1 Environmental Degradation Refers to deterioration of the natural environment due to various human activities, including pollution, deforestation, desertification, loss of biodiversity, climate change, and other harmful practices that degrade the quality of air, water, soil, and ecosystems.
14.9.2 Environmental Expenditures Are the costs incurred by the government or organizations in order to protect, preserve, or improve the environment. These expenses can include investments in pollution control technology, compliance with environmental regulations, waste management, and conservation projects. Companies may also spend money on research and development of sustainable practices or renewable energy sources.
14.9.3 Environmental Indicators Environmental indicators are measurements or metrics used to track changes in the environment, such as air and water quality, loss of biodiversity, and climate change.
14.9.4 Environmental Quality Environmental quality refers to the overall health of the environment, including air, water, soil, and ecosystems. It encompasses the presence of pollutants and contaminants, as well as the overall biodiversity and sustainability of the environment.
176 14.9.5 Environmental Audit Refers to the systematic documented and objective evaluation of how well environmental organization, management and equipment perform in conserving or preserving the environment conducted in a certain period of time normally a year/half year.
14.9.6 Environmental Disease Refers to any illness or health condition that is caused or exacerbated by environmental factors, such as pollution, exposure to toxic substances, or lack of access to clean air and water.
14.9.7 Environmental Impact Refers to the changes in the natural or built environment, resulting directly from an activity, that can have adverse effects on the air, land, water, fish, and wildlife or the inhabitants of the ecosystem.
14.9.8 Environmental Impact Assessment (EIA) Refers to evaluation conducted to assess the potential consequences of a proposed project or action on the environment and to identify ways to mitigate or minimize those impacts.
14.10 Energy Sources
Refers to resources used to generate power. Examples of energy sources include fossil fuels
(such as coal, oil, and natural gas), nuclear power, hydroelectric power, wind power, solar
power, biomass, and geothermal energy.
14.11 Erosion Wearing away and transport of the soil by wind or running water, glaciers or waves. Erosion occurs naturally but is often intensified by human land-clearing activities related to farming, residential or industrial development.
14.12 Exhaust Gases Refer to the byproducts produced when fuel is burned in an internal combustion engine. These gases include carbon dioxide, carbon monoxide, nitrogen oxides, and other pollutants.
14.13 Fuel wood Refers to the process whereby wood is used as a source of fuel for heating and cooking. It is a common and traditional form of energy used in many parts of the world, especially in rural and developing areas where access to other forms of energy may be limited.
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14.14 Fossil Fuels
Refers to natural resources formed from the remains of ancient plants and animals that have
been buried and exposed to heat and pressure over millions of years. These fuels are non-
renewable resources, meaning that they cannot be easily replaced once they are depleted.
14.15 Geologic Hazard
Refers to a natural phenomenon that poses a risk or threat to humans, infrastructure, or the
environment due to geological processes. These hazards can include earthquakes, landslides,
volcanic eruptions, tsunamis, sinkholes, and other events that result from the movement of
Earth's tectonic plates or other geological forces.
14.16 Greenhouse Effect
Warming of the earth’s atmosphere caused by a build-up of carbon dioxide and other
greenhouse gases that act like a pane of glass in a greenhouse, allowing sunlight to pass through
and heat the earth but preventing a counterbalancing loss of heat.
14.17 Habitat
Natural environment in which an organism or species lives and thrives. It includes the physical
characteristics of the environment, such as climate, soil, and vegetation, as well as other living
organisms that may interact within the same space.
14.18 Hazardous Waste Wastes that, owing to their toxic, infectious, radioactive or flammable properties pose a substantial actual or potential hazard to the health of human and other living organisms and the environment.
14.19 Household Waste
Waste material usually generated in the residential environment. Waste with similar
characteristics may be generated in other economic activities and can thus be treated and
disposed of together with household waste.
14.20 Hydrocarbons
Compounds of hydrogen and carbon in various combinations which are present in petroleum
products and natural gas. Some hydrocarbons are major air pollutants, some may be
carcinogenic and other contribute to photochemical smog.