Vol ix issue i by East African Business Week

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VOL. 9, ISSUE 1, AUGUST 12 - 18, 2013

Unveiling Opportunities

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Tz discovers more uranium Full production will make Tanzania world’s seventh largest producer BY LOVENESS MASSERO DAR ES SALAAM, TANZANIA – There are traces of uranium at Lake Jipe, located in northern Tanzania according to preliminary findings by the Tanzania Minerals Adult Agencies (TMAA) . For several leading industrial countries, a guaranteed supply of uranium is extremely important for their future energy security. However, this resource is also a key component of nuclear weapons. TMAA’s Planning and Research Development Manager, Julius Moshi told East African Business Week the geologists are currently conducting tests to determine the quantity and economic viability of the uranium. The discovery of uranium in Mwanga, Kilimanjaro (Northern Tanzania), brings to four regions where uranium deposits have been found. The other key uranium projects countrywide are Bahi North in Dodoma region, Manyoni in Singida and Mkuju River situated in Tunduru district, Ruvuma regions. Moshi said exploiting

the uranium deposits will help the country to boost its foreign exchange earnings. Tanzania is one of the few producers of radioactive minerals in the world. The Mkuju River Uranium project has estimated resources of 101.4 million pounds (24 million kilograms) of uranium oxide concentrate, about 77% of global mined output in 2010. The country is estimated to have a total deposit of 54 million kilograms of Uranium Oxide. It is projected to produce about 14,000 tons of uranium annually. This will generate over $249 million in royalties.When opening the new offices of the Tanzania Atomic Energy Commission in Arusha, President Jakaya Kikwete said Tanzania was eyeing the world's biggest uranium producer slot. “If all the reserves we have are fully exploited, Tanzania can become the seventh leading uranium producer in the world,” Kikwete said. Already Mantra Resources and a Russian firm ARMZ have entered into a joint venture to mine uranium. Tanzania has so far confirmed the presence of multiple thick zones of

MINERAL POWER HOUSE: President Kikwete mixes with the local people during a tour of the mineral projects. sandstone-hosted uranium mineralization at shallow depths at the Nyota Prospect. An Inferred Mineral Resource of 35.9 million pounds has been estimated for the prospect. Kikwete said

WB funds Tz, Rwanda, Burundi 80MW project DIAS NYESIGA KIGALI, RWANDA — The Rusumo hydro power, a project under the Great Lakes Regional Initiative has received a World bank financing boost of worth US$340 million out of the overall total cost of US$468.60 million. The financing that that is the first operation of the World Bank under its Great Lakes Regional Initiative has given US$113.30 million to each of the governments of Burundi, Rwanda and Tanzania that share the hydro power project seen to benefit over 62 million people. “This landmark project will have transformational impact, bringing lower-cost energy to homes, businesses, and clinics in

Burundi, Rwanda and Tanzania,” says Colin Bruce, Director, Strategy, Operations and Regional Integration. Its eventual 80 megawatt generation capacity will boost reliable power supply to the grids of Burundi, Rwanda and Tanzania,reduce electricity costs, promote renewable power, spur job-led economic development. All three countries will benefit from job created by construction and installation activity associated with the power plant and pave the way for more dynamic regional cooperation, peace and stability among the countries of the Nile Equatorial Lakes (NEL) sub-region in east

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this initial resource estimate is based on drilling which covers only a small part of the total area of the prospect. The potential exists to substantially grow the resource base with ongoing work.

The Japanese Company also signs mineral exploration deal with Tanzania: A Memorandum of Understanding (MoU) signed

Flights back to normal at JKIA, economy hurt Nairobi, Kenya — International flights have resumed from Kenya's Jomo Kenyatta International airport in Nairobi, after it was forced to close on Wednesday following a huge fire. It is East Africa's largest airport and is a vital international hub for Africa and beyond. The airport handles around 16,000 passengers a day. It is also east Africa’s largets clearing house for fresh fruits, vegetables and other perishable cargo. Exporters had to either reroute their cargo

through other airports or cancle freigh following the Wednesday inferno. The country's anti-terror police boss said he did not believe that there was a terror link to the fire even though it coincided with the 15th anniversary of a twin attack by Islamist militants on the United States embassy in Nairobi and Dar es Salaam, the commercial capital of neighboring Tanzania. Authorities said they will on Thursday begin preparing the airport's

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INSIDE

P.4>> Low outputs

prevent honey exports

Tanzania gas

P. 32>> production for 2020

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

NEWS

World Bank to fund region’s power FROM PAGE 1 Africa. Bruce notes that by choosing a run-of-the-river option to reduce social and environmental impacts, the participating governments have demonstrated careful and responsible decisionmaking. “By connecting grids, people and environmentally sensitive solutions, the project will help to catalyze growth and to encourage peace and stability in the sub-region.” He said Accordingly, energy still remains a challenge towards regional growth with Only four percent of the population in Burundi has access to electricity, corresponding numbers for Rwanda and Tanzania are 13 and 15 percent respectively. Moreover, the region entirely depends on Agriculture with many growing agri- based processing which are always hampered by shortage of power thus crippling the growth of the industry and manufacturing sector in the region. Experts believe that Regional Rusumo Falls Hydroelectric Project is anchored in the World

Bank Group’s development approach to the region pegged to increase power generation and interconnectivity to take advantage of low-cost and renewable sources of hydropower and shared infrastructure development. The project will strengthen the capacity of the Nile Equatorial Lakes Subsidiary Action Program (NELSAP) and its emergence as a regional center of excellence. NELSAP is an investment pool under the Nile Basin Initiative, an intergovernmental waterresources group, comprising nations along the 4,200mile Nile River. Works on the construction of the power dam are expected to start in the first quarter of 2014 and are expected to last five years. Transmission lines will extend from the power generation plant to Gitega (Burundi), Kigali (Rwanda) and Nyakanazi (Tanzania). In 2011, World Bank helped to provide electricity to an additional 1.4 million people in African countries; construct and repair some 6,640 kilometers of roads; and improved water supplies for more than 8

BOOST: The power plant will help boost energy needs for plants like this Dar factory. million people. The Rusumo Falls Hydroelectric Project takes a regional approach to tackling Sub-Saharan Africa’s power crisis, providing lowcost, clean, renewable energy to people in Burundi, Rwanda and Tanzania,” saysJamal Saghir, World Bank Director for Sustainable Development in the Africa Region.

He adds, “The new power plant signals the Bank’s commitment to keeping the lights on across the African continent, necessary for achieving growth, ending poverty and boosting shared prosperity in the region.” The project’s regional approach to infrastructure development will help to lower costs, enable joint

management of the hydropower generation and transmission system, and demonstrate mutual benefits attainable by sharing of river waters as a catalyst for greater economic integration. “The Regional Rusumo Falls Hydroelectric Project provides a fresh opportunity to unlock energy potential in the Great Lakes

KQ shares dip over fire, probe on FROM PAGE 1 domestic terminal, which escaped the blaze, for handling international flights, using tents to create extra space. Domestic flights had resumed by Wednesday evening, and outward-bound cargo flights resumed hours later. The raging blaze engulfed the terminal buildings and lit up the early morning sky, sending billowing clouds of black smoke rising in a plume that was visible from miles away. The intense heat repeatedly drove back firefighters who battled for five hours to put out the fire, the worst on record at Jomo Kenyatta International Airport, east Africa's busiest. Boniface Mwaniki, head of the anti-terror police unit, said there was no connection with "terrorism". "We don't want to speculate, but at this stage we do not think there is any such link," he told Reuters. "Even if we are commemorating the 15th anniversary of the bomb blasts, we don't think it is terrorism." Nevertheless, authorities had beefed up security at the airport

and key installations in east Africa's biggest economy. Security analysts said there was no indication of any link to Islamists that Kenyan soldiers are battling in neighboring Somalia as part of an African Union force. "It doesn't bear the hallmarks of an al Shabaab operation but one never knows," said a regional security analyst, speaking on condition of anonymity. There were no immediate reports of casualties from the fire, which started in the arrivals and immigration area. The blaze stranded thousands of passengers at the airport and exporters of perishable produce, mainly flowers, feared for their export-driven business, a leading source of foreign currency earnings for Kenya alongside tea exports and tourism. The fire was also a blow to Kenya right at the start of the peak tourism season, a key sector for the Kenyan economy. "This is disastrous," Jane Ngige, chief executive officer of exporters association Kenya Flower Council, told Reuters. Mahmud Jan Mohamed, the managing director of Kenyan hotel operator TPS Serena, said "the last

thing we need is this", but added that it was still a little early to tell the full impact of the disruption to tourism. Business travelers and tourists were diverted to other airports, mainly to the port city of Mombasa. Shares in Kenya Airways, which uses the airport as its hub, fell as much as 2 percent, before recovering. The airline said its overnight flights from London and Bangkok would land as scheduled in Nairobi on Thursday morning, the first overseas flights at the airport since the fire. Preparations to handle more international flights would be carried out on Thursday at the airport's domestic terminal, said Michael Kamau, cabinet secretary for transport. "From tomorrow we will be preparing this unit ... as an international terminal for departures and arrivals," Kamau told reporters. "We started pitching tents on the airside for handling departing passengers." Foreign carriers using the terminal include Emirates, British Airways, Qatar, KLM), Turkish

Airways, South African Airways and Ethiopian airlines. The airport, built in 1978 with a capacity for 2.5 million passengers a year, handles 6 million annually or about 16,000 a day. Inside the gutted building, neat lines of metal trolleys with melted plastic handles were the only clear reminder that the building - whose roof partially collapsed - was once an airport terminal. Some travelers searched for their luggage amid the charred ruins while staff from Western embassies waved their national flags to attract passengers looking for a place to stay. "We are now here illegally since we don't have a visa and therefore can't leave the airport," said Juan Cabrera, a French United Nations worker travelling to Zanzibar from Burundi with his wife and baby. "I'm just wondering how I get back home or continue our trip. No one seems to know." Some tourists to the world famous Masai Mara Game Reserve where the annual wildebeest migration is taking place were stranded and had canceled their bookings, tour operators said. Additional reporting by agencies

region, while safeguarding the environment,” says Paul Baringanire, World Bank Team Leader for the project and Senior Energy Specialist. “We look forward to speedy implementation so that the idea of sharing natural resources for mutual benefits becomes a reality and helps to build peace, stability and economic opportunity for all communities in the Great Lakes region.” Rwanda through its energy strategic plan that outlines the initiatives in place to boost engery production to 1000 mega watts by 2017 has been calling on investment in engery production and also seeking partnerships which have yielded results. For example, recently the government and the African Development Bank signed an agreement worth $41.5 million (about Rwf27 billion) to scale up energy access projects in the country. This follows also a series of investors who have picked interest in solar energy like Gigawatts,hydro power, peat, methane gas, among others.

Uranium discovery to boost Tz FROM PAGE 1 between Japan Oil, Gas and Metal National Corporation (JOGMEC) and the Geological Survey of Tanzania (GST) will see the two institutions join efforts to explore and assess mineral resources. In Tanzania, uranium prospection and exploration is being performed by Uranex NL, Omegacorp Ltd, Mantra Resources Ltd, Uranium Resources plc, Indago Resources Ltd, Sabre Resources Ltd , Uranium Hunter Corporation , Trimark Explorations Ltd. Others are IBI Corporation , Gambaro Resources, Douglas Lake Minerals Inc. , Canaco Resources Inc. , Sub-Sahara Resources NL, East Africa Resources Ltd, Tanganyika Uranium Corp. , Troll Mining Ltd, Jacana Resources Ltd, Globe Metals & Mining Ltd, Atomic Minerals Ltd, Universal Power Corp.

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

NEWS

Chinese ship opens new route to Europe AGENCIES A 19,000-tonne cargo vessel is making the first journey by a Chinese merchant ship to Europe via the Arctic Northeast Passage, a shortened route that could revolutionise trade, state media reported Saturday. The Arctic route has become navigable due to global warming melting sea ice and promises to slash journey times by around 12 to 15 days, saving shipping companies and Chinese exporters millions in lower fuel bills and reduced operating costs. A freighter belonging to Chinese shipping firm Cosco left the northeastern port of Dalian on Thursday and was expected to take 33 days to reach Europe via the Bering Strait and Russia's northern coastline, the official China Daily reported. The SinoShipNews website said the vessel was headed for Rotterdam and

was due to arrive on September 11. The new route, which is now navigable for around four months of the year from the end of July, avoids the politically unstable pinch point of the Suez canal, and trims around 7,000 kilometres (more than 4,000 miles) off the journey, according to the China Daily. Around 90 percent of China's foreign trade is carried by sea and Beijing is also hoping the new shipping route can help develop the northeast. In 2012, 46 ships used the Northeast Passage, compared with four in 2010, according to Rosatomflot, a Russian operator of icebreakers. But the traffic is still negligible compared with traditional commercial shipping routes, such as the Suez Canal, which has 19,000 ships pass through it a year. Previous estimates have suggested up to 15 percent of Chinese foreign trade could use the Arctic route by 2020. Europe is one of China's

largest trading partners, with two-way trade last year worth nearly $550 billion. In a separate development, State-owned China Shipping is planning to order up to 20 new supertankers for the fleet of a joint venture aimed at giving Beijing more control over its energy supply chain but which will add to the vessel glut in the struggling freight market. A Chinese ship buying spree would provide much needed business to the domestic shipbuilding market, the world’s second largest. Hundreds of small to mid-sized shipyards are teetering on the brink of bankruptcy as foreign orders dwindle and domestic lenders slash credit. But any new vessels will add to an already oversupplied global shipping market which is struggling with dwindling clients and falling rates. Despite a forecast that world shipping freight rate would decrease, demand for newbuilding commercial ship is growing instead. Fuel-efficient eco-

East African Business Week scribe wins top media award BY EABW REPORTER KIGALI, RWANDA — The East African Business Week’s Dias Nyesiga has scooped the financial and economic reporting Award for his remarkable and proffessional writing about the economy of the country. The cash prize award of worth Rwf 2 million and an accolade was given to him by the Governor Central Bank of Rwanda during the Monetary Statement last week. At the Same functionNewtimes’ Ivan Mugisha was awarded as the second best reporter with a cash prize of Rwf 1 million The ceremony that attracted entries from Business and Economics journalists from Rwanda were aimed at encourgaing journalists to report on the economy. “ We were looking at articles that showed proffessionalism, informative and human interest that are aimed at promoting the economy of the

ACCOLADES: Nyesiga article and Dias had done it to our satsfication,”Thomas Kigabo the chief economist At Central Bank Rwanda said With his story Electronic Shopping: Gearing Towards cashless Economy, Nyesiga highlighted in details the impact of the introduction of the payment system that facilitated both electronic and mobile banking thus helping people to shop without cash.

Ben Gasore of the New times says Nyesiga deserves the award for his dedicated research and interest in business and economic reporting. "When he is working on the story, he cannot give up until he gets every bit of it and no matter what it takes him he is ready to go an extra mile," he noted. In the story he compares the mood, perception and the usage in percentage on daily basis of people using ATM cards, shop via mobile money platforms for telecoms as well as the ease and cut in costs of businesses that have already started using electronic shopping. "It is not always easy for people to recognize the challenges Journalists go through to write such stories that develop our economy, so such an award is a sign that the Media's role in the economy is getting respected," Nyesiga said after receiving the award. Since 2011, the government has embarked on harnessing cashless economy and promoting financial inclusion for all.

friendly vessel is an optimal choice during recent days with high oil price and existing older tonnages will be replaced. Analyst Park Mu-Hyun of E*Trade Securities of Korea said "Shipowners aim to invest in fuel-efficient eco-friendly vessels" and prospected that medium-size vessel will be the most popular size in all segments.

He further said that high oil price has an effect on commercial ship market as well as offshore drilling/production segment and added "demand for fuel-efficient ship has started to grow." "Amid weak shipping market and high oil prices, global leading shipping companies have started to develop an optimized new design and place orders at Korean shipyards, since

2011", he said. Also, he expected that in case of large sizes, many owners will aggressively make investment in Mega containership, in order to compete with Maersk, which has already begun investment in eco-friendly vessels (ultra-large boxships) since ten years ago. Moreover, according to him, after the second half of 2013, there will be more newbuilding investment in VLCC, which is structurally more difficult to improve fuel efficiency. Park said that Eco ships, optimized for recent days with high oil prices, will replace all of existing tonnages in the end and Korean shipbuilding industries will gain the largest benefits. Park forecasted "In general, high oil prices will be locked up for a while. Therefore, Eco ships will eventually replace all older tonnages." Read more about global on www.marine-newschina.com

US judge considers limits on Apple in e-books case AGENCIES A U.S. judge said on Friday she is considering imposing tough restrictions on Apple Inc for illegally conspiring with publishers to raise e-books prices. U.S. District Judge Denise Cote said she was weighing whether to restrict Apple for five years from entering deals with publishers that would prevent Apple from discounting e-book prices. Apple, the maker of the iPad and the iPhone, had as part of the alleged conspiracy given publishers control of pricing. "My focus is on making sure we don't have collusive illegal activity again interfering with the e-books market," Cote said. But Cote, a judge in U.S. District Court in Manhattan, indicated she may not give everything sought by the U.S. Department of Justice and 33 U.S. states and territories, saying she may not require Apple to employ a court-appointed external monitor. The Justice Department, which sued Apple in April 2012, claims the company conspired with major publishers to undercut the prevalent e-book pricing set by Amazon.com Inc, which at the time controlled 90 percent of the e-book market. As a result, prices for new and best-selling e-book titles rose from $9.99 to $12.99 or $14.99, the government contends. In July, Cote found Apple liable for violating federal antitrust laws, saying the company played a "central role" in the conspiracy with the five major publishers, which agreed in settlement to pay $166 million to benefit consumers.

The publishers include Lagardere SCA's Hachette Book Group Inc, News Corp's HarperCollins Publishers LLC, Penguin Random House LLC, CBS Corp's Simon & Schuster Inc, and Verlagsgruppe Georg von Holtzbrinck GmbH's Macmillan. The government is now seeking an injunction against Apple. The company calls the Justice Department's proposal a "draconian and punitive intrusion" into its business. At the hearing Friday, Cote said she was considering restricting the types of contracts Apple that could enter with the publishers for five years, a goal sought by the Justice Department. The judge said for the first two years, Apple would be prohibited from entering contracts that restrict its ability to discount e-books. It would then on a staggered basis begin negotiating new agreements with publishers, with talks roughly half a year apart, she said. "This means at no one point in time will Apple be able to renegotiate with all the publisher defendants at once," she said. Under the Justice Department's proposal, Apple would also have to hire a fulltime internal antitrust compliance officer and for 10 years use a court-appointed external monitor to ensure its compliance with whatever Cote orders. Cote said her preference was to instead not require a monitor, but instead require Apple to have a "vigorous" in-house antitrust compliance program. "I don't want to do more than is necessary here," she said.

EAST AFRICAN BUSINESS WEEK

AUGUST 5 - 11, 2013

NEWS

Low output prevent honey exports BY SAMUEL NABWIISO KAMPALA- UGANDA: Low production levels for honey have prevented Uganda from taking advantage of the lucrative export market. George Tunakuye, the Managing Director of Kamwenge Beer Keeper Cooperative Saving Credit Society told East African Business Week although the market is readily available , Uganda is not in position to supply markets in Europe and Asia. “Because the country is not producing a large quantity of honey, no single trader both in Uganda and outside the country, is interested in exporting or importing Uganda honey. If the country wants to earn from the sector there is need to support bee keepers to enable the produce more honey,” he said. He said the main problem is lack of enough capital to invest in the apiculture industry. He also wondered why bee keepers are reluctant to form cooperatives through which they can produce honey on a large scale. He said cooperatives can help the apiculture farmers to get

APICULTURE: A man using the traditional ways of harvesting honey from the bee hives. trained in modern techniques of producing honey. It is also easier for accessing loans from the financial institutions. “Each apiculture farmer in Uganda is operating individually.

This makes it very difficult to access training and also getting financial support from the financial institutions. What the apiculture farmers need to do, is to embrace the spirit of coopera-

tiveness. This will reduce some of the obstacles hindering honey production in the country,” he said. In Uganda apiculture farming has not been readily picked up as

other sectors of agriculture. It is only in places like Arua and Yumbe districts. Other places are parts of Western Uganda where locals have embraced apiculture farming, but the little which is produced is consumed locally. Why should the apiculture industry be supported? Honey is the raw material for many industries like the pharmaceuticals and food processing companies. It is also a vital ingredient for food supplements. Another often forgotten factor is that apiculture plays major role in the pollination of crops, trees crops and fruits. However the rate of pollination is diminishing because Ugandans are not embracing bee keeping “Apiculture farming should not be looked at only on the side of producing honey, but also in the supporting of agriculture production with bee keeping in our cooperative in Kamwenge District this has supported us to engage in sunflower farming because bees are supporting the cooperative s because they pollinate the flowering crops” Tunakuye said.

‘Uganda economic transformation to come from its people’ FROM THE WORLD BANK Jobs are centralto development, because they affect living conditions, determine the pace of economic transformation and foster social cohesion. This was the key message of the World Bank’s World Development Report of 2012. It would be hard for Uganda to develop if the bulk of laborforce remains stuck in low productivity employment. That is the challenge that the World Bank’s second Economic Update on Uganda seeks to address. Slated to be launched on August 13, 2013, the Update takes stock of the economy and proposessolutions for identified challenges to inclusive development. Its analysis suggests that despite a difficult past five years, the renewed macro-stability is providing a foundation for faster economic growth. Ugandahas recovered from a lowly growth rate of 3.4 percent during FY12 to about 5.0 percent, which is expected to continue into the medium term, if gov-

ernment sustains prudent monetary and fiscal policies to remove binding constraints, and manages exogenous shocks that may arise from climate change, volatile import and export prices, regional instability, and other forms of uncertainty. This can bring backrobust historical average growth rates of 7 percent. This can also accelerate the pace of job creation. But the sectors that are driving this growth have not been important sources of employment, leaving the bulk of the labor force to be employed in low value subsistence agriculture and small low value nonagricultural enterprises. Urbanization is providing opportunities through agglomeration of firms and customers, especially in services, and to some extent manufacturing. However, these involve only a small proportion of the labor force. Uganda therefore has the challenge to productively employ its fast growing youthful andincreasingly literate population. Genuine transformation can only be realized if the labor force is in productive

jobs. Titled‘Jobs: Key to Prosperity’, the second Uganda Economic Update argues that given Uganda’s current and future economic structure, demographic patterns, and rural-urban dynamics, the ‘good jobs’ agenda can be complex, involving :(i) Creating better jobs on the farm by increasingagricultural productivity; (ii) Making theinformal sector more productive; (iii) Improving survival, growth and productivity in the formal sector; (iv) Ensuring that the labor force has appropriate skills; and (v) Planning for urban growth more efficiently.Even though the impact may only be realized in the medium-to-long run, time for action is now. The highest priority lies in ensuring increased agricultural productivity. However, with people moving off the farm and more school leavers joining the job market, the quick wins can be fewer and isolated. The Update argues for some options to consider: First: A deliberate effort to grow large firms by sup-

porting the development of clusters and full value chains for strategic sectors. Most large firms downsized following privatization between the 1990s and early 2000s, yet very few new large firms have been established since. A typical value chain approach to support export of processed foods, for example, would require attracting investors, particularly foreign investors, into foods and beverages manufacturing, phyto-sanitary certification, plastics, packaging, and transport logistics. Second: Faster targeted improvement in the business environment through industrial zoning to reduce transaction costs, improve connectivity, increase access to finance, and facilitate the transfer of technology and innovation. Successful industrial zones create an enabling environment for a large number of firms when they support cluster formation. Efforts to establishindustrial parks need to be followed more zealously where clusters are already forming. Third: Creating linkages between large industries

AGRICULTURAL PRODUCTIVITY VITAL: Ndiaye and small manufacturers can raise productivity of smaller firms, formal or informal,while lowering input costs for the large firms. The incentive framework to encourage linkages between large steel and mills manufacturing industries with the juakaliscould, for instance, build on the practice of collecting scrap metal used in steel mills, or plastic scrap that is recycled into large

plastics industries. Fourth: Raise the informal sector’s productivity by introducing‘matching grants’ to enable informal business operators to access capital and workstations, with such a system also requiring recipients to improve their skills.

AhmadouMoustapha Ndiaye is the World Bank’s Country Manager in Uganda

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

FINANCE

SMEs prefer debt to equity They would rather borrow money than have others invest in their business BY EMMA ONYANGO KAMPALA, UGANDA-Small and Medium sized Enterprises (SMEs) are said to be catalysts for economic growth worldwide as they provide livelihoods for 60% of Africans and account for 90% of all industrial firms. However, they often face challenges associated with expansion of their business enterprises as a result of difficulties in accessing credit. However, it has also emerged that most SMEs prefer debt to equity and despite concerted efforts by different financial advisors, this segment of entrepreneurs still have reservations about equity. Simon Kayemba, an entrepreneur in Bweyogerere, a suburb on the outskirts of the capital Kampala when asked by the East African Business Week about his thoughts were in regard to equity, just brushed aside the idea saying he would rather struggle than let anyone else into his business. “Why would I allow another person to come and tell me how I should run my business? Do they even know what I went through to get to this level,” he said while sipping at his polythene bag laden with busheera, a local drink. Little wonder therefore

Mid-size companies like this garment enterprise, will in most cases need other investors to take it to the next level. that even at the Uganda Securities Exchange (USE) that launched the Growth Enterprise Market Segment for SMEs to raise capital at bourse is yet to receive a company listing. Acumen Fund, a social venture that invests in businesses that provide critical goods and services to persons at the bottom of the social pyramid is the latest company to come up. The company that launched operations in

Barclays aid Tz youth BY PATRICK KISEMBO DAR ES SALAAM, TANZANIA---Barclays Bank Tanzania recentl handed over Tsh.120 million ($740,400.00) to Nkwamira Sustainable Life Trust to support out of school youth. The Bank’s Communication and Citizenship Manager, Ms.Tunu Kavishe said they had decided to partner with the non-governmental organization after seeing that the majority of youth who were completing secondary education especially form four and six were staying idle in the streets. “This is dangerous for the youth who still have the opportunity to pursue other activities that can give them life. The problem is that majority of them have given up, thinking there is no life after failing school,” she said. Ms. Kavishe said Nkwamira Out of School Youth Empowerment Programme aims at addressing issues of unemployment, inadequate skills in small scale business management.

East Africa in 2001 despite offering the funding at more ‘friendlier’ terms, has only been able to invest in 23 companies, with only one located in Uganda. Among the investments are a cotton ginnery; Gulu Agricultural Development Cooperative in northern Uganda, Western Seed Company in Kenya, a coffee processor in Rwanda, a poultry farm in Ethiopia, among others. The fund also plans to invest $2m in

a health facility which sources say is Nsambya Hospital in Kampala. According to Duncan Onyango, the Director for East Africa at Acumen Fund, the impact of a company on a community forms the basis of their investment. “The way we invest is that is we identify businesses in critical sectors; agriculture, health, energy water and sanitation, education, affordable housing;

those sectors that affect those at the bottom of the pyramid. We can invest in debt, we can take equity in these businessesand invest between $250,000 up to a maximum of $2.5m,” he said. He however concedes that it is very difficult to find the right business because many SMEs are largely informal and are in most cases not registered. “In the five years we’ve been operational in East

Africa, we have probably done about 700 due diligences which means that we have looked at over 1,000 companies. Of the 700 we’ve looked at, we have invested in 23 companies. “The problem that businessmen and women in this region do not understand debt and therefore prefer to have a debt structure for financing,” he said. Onyango adds, “Sometimes debt is not very good for a company; sometimes a company requires equity because it is much more long-term in terms of a return expectation. As for debt the moment you get it, you immediately have to think of paying back. “So we are having to spend a lot more time educating the businessmen and women to appreciate the type of investment and to understand that the business need might change and might be different.” Onyango was speaking to the East African Business Week on the sidelines a stakeholder engagement meeting at the Kampala Sheraton Hotel recently. He also reiterated that a number of business owners do not necessarily have a firm understanding of their business and at the same time the execution of their plans is at risk.

Fina Bank reassures customers BY DIAS NYESIGA KIGALI, RWANDA---Fina Bank (Rwanda) Limited has assured its clients and customers that the bank is not likely to close shop after recent news reports that a Nigerian bank has bought a stake in the Kenyan affliate. Last month it was reported that Guaranty Trust Bank (GT) bought a 70% stake in Fina Bank (Kenya) Limited. “We personally reassure you that this development will not in any way affect our business as usual relationship. We will continue to serve you , as well as we have always endeveoured to do,” Balivada Rao, the Managing Director of Fina Bank (Rwanda) told East African Business Week Fina’s main customers are small and medium size businesses. These reports have led some clients to believe that the Rwanda operations will be affected.Fina Bank is a regional bank with head offices in Kenya and operates in Kenya, Rwanda and Uganda.

Total assets amount to $338 million while its loan book accounts for $184 million in the first quarter of this year. Rao said the increased liqudity will help the bank to finance long term projects that have not been given priority due to lack of enough financing for bigger projects. “With GT bank coming in, we will be able to serve our customers better. Our main focus has been on SME financing, but now we want also to finance long term big projects such as in energy, tourism so that we can contribute to the development of the country,” he said. Financial analysts, RenCap, reported that GT Bank management agreed to pay $100 million by way of a capital injection in Fina (Kenya). GT Bank is expected to bring in its global experience in its customer focused advanced technology which will help Fina bank roll client based products mainly mobile banking in rural areas. Indeed, the government has been calling on financial institutions to avail more financing to projects mainly in

energy to boost production that the country is benching on to leap frog its economy to service based by 2020. Gt bank is listed on stock exchange of both London and Lagos. At the end of 2012, the bank had total assets of $11.1 billion, shareholders finds of over $1.8 billion and profit after tax of $558.9 million. GT bank operates in Nigeria, Ghana , Ivory Cost, Sierra leone Liberia Gambia and the United Kingdom. In 2012, GT Bank revealed an amibitious Afrian expansion strategy as part of its 2016 objective of becoming one ot the top three African banks by absolute profits.“Having already established a profitable presence in parts of West Africa, management identified East Africa as the next frontier-primary draw cards being the region’s rapid GDP growth, regional integration and low banking penetration. Reports say key founders of Fina will continue to remain significant shareholders and Dhanu Chandaria will continue to remain group chairman for the foreseable future.

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

EDITORIAL OPPORTUNITIES TO WATCH

EAST AFRICAN

Crucial to build new railway couple of weeks ago, Kenya’s Roads and Infrastructure Cabinet Secretary, Micheal Kamau, announced plans for construction of a new 2,937 kilometre standard gauge railway. The estimated $14 billion project would connect Kenya, Uganda and Rwanda. Costs would be shared among the three countries of the East African Community (EAC) and hopefully the new line will be ready by early 2018. In his remarks, Kamau said the project is long overdue. This is an understatement. It is imperative to build a new railway from Mombasa to the hinterland. The EAC is one of the fastest growing economic blocs in sub-Saharan Africa. Recently, Tanzania's Vice-President Dr Mohamed Gharib Bilal, said in the first decade of EAC's existence, the Community had witnessed a four-fold growth of its gross domestic product (GDP) from $20 billion to $80 billion. One day, eastern Democratic Republic of Congo will be stable enough to sustain widespread economic activity as well. When that times comes, the most logical access route for their bulky mineral exports is through the EAC. However the regional infrastructure is increasingly unable to cope. The danger here is that a creaky infrastructure will surely slow down future EAC growth. Matters are not helped by the fact that the expense of building and maintaining roads is massive. Even with international donor help, the amounts of money we are talking about on an annual basis increasingly put a heavy strain on national budgets. It was railways that opened up other richresource regions of the world, particularly North America, Russia and China. We can learn from this, because the EAC is also resource-rich. Closer to home, South Africa nearly has more rail track than the whole of sub-Saharan Africa put together. Actually it boasts the 14th longest network in the world. The advantages of railways compared to roads include transportation of bulky goods over long distances. Road transport is good for carrying perishable goods which require quick delivery. But railway transport is suitable for transportation of bulky, heavy and cheap goods over a long distance. With a standard gauge line the railway is quick and a more regular form of transport. The carrying capacity is larger, which makes it cost effective. It is also relatively safe and provides a large scope for employment. But most important of all, after the initial capital costs, rail is much cheaper than roads. The old ‘Permanent Way’ built by the British at the turn of the 20th century was not a standard gauge railway. That means even if it were in good condition today, it still cannot manage fast trains. The simple truth is that after ICT nothing else will transform the EAC into an bustling economic hub as fast as a new railway and time is running out.

Tanzania small scale miners get 50 acres BY LEONARD MAGOMBA GEITA, TANZANIA—-Tanzania’s Geological Survey recently set aside 50 hectares of land in Geita Region, in North West Tanzania for small scale gold miners. The miners should be pleased. This gives them an opportunity to seek out their fortune without being constantly harassed for acting illegally. The move also strikes the right note of encouragement. Most small scale miners face a host of difficulties. They lack of capital, shortage of mining areas, as well as access to appropriate technology. Any government support is welcome. The Geita Resident Mines Officer and Inspector of Mines and Explosives, Eng. Juma Sementa told journalists from Uganda, Ghana and Tanzania who were on a recent field trip, among the serious challenges these miners face is lack of capital intensive, technology know-how and unavailability of mining areas. Eng. Sementa was also backed by the Chairperson of Tanzania Women Miners Association, Ms Eunice Negele, who highlighted the miners’ meagre budgets. Ms Negele said there are many areas in the country which are controlled by large scale miners who do not develop them. She said it is high time the government repossessed these areas and allocated the some of it to small scale miners. According to Tanzania’s Medium Term Strategic Plan 2012-2016, although the government has taken efforts to provide extension services to small scale miners, this kind of mining is still underdeveloped due to the use of inappropriate technology. In a bid to solve these challenges facing small scale miners Eng. Sementa said they have already allocated 673.5 hectares for them. “The Geological Survey conducted a survey within the allocated 673.5 hectares for small scale miners. We have already earmarked

Most Tanzanian small scale miners face such problems as lack of capital and appropriate technology that prevents them from fully exploiting this activity. between 40 and 50 hectares that has a potential for gold deposits,” he said. According to Eng. Sementa, the remaining land would be used for other economic activities includes agriculture and pastoralist’s activities. Eng. Sementa said they have already issued primary mining licences to 681 small scale miners in the area which has an average of 6,810 local people who are involved in the mining activities. The Minister for Energy and Minerals Prof, Sospeter Muhongo recently held a meeting with artisanal and small scale miners in Dodoma to learn about the

challenges they encounter while carrying out their activities. The small mining operators highlighted some of the challenges such as lack of permanent mining areas and meagre budget which do not benefit majority of them. They said that the government should address the challenges to make the sector contribute fairly to the country’s GDP. Tanzania currently has proven gold reserves of around 45 million ounces. At the current gold price, this means the country is sitting on a fortune of about $39 billion, over three times the country’s annual GDP of

$11 billion, although extraction costs must of course be taken into account. Muhongo said the government has started addressing some of these challenges. The government also promised to create conducive environment for small scale miners so as to allow them working without any harassment from local government authorities. The government has increased the budget from Tsh2.5 billion ($1.54 million) in 2011/12 to Tsh8.9 billion ($5.50 million) this year to support small scale miners. Tanzania is the East African Community’s top mineral exporter, led by gold.

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

LETTERS & PERSPECTIVE IMAGE OF THE WEEK

PERSPECTIVE

GMOs raise passions between two camps he debate around genetically modified organisms (GMO) is huge and heated on either

BRAWN NOT BRAIN: Taiwanese lawmakers recently hurled water bottles and wrestled each other to the floor of the island's parliament in a brawl which broke out during a debate on the fate of a controversial nuclear plant.

Confused about Rwanda traders Uganda tourism need patience Editor, The cancellation debacle involving tourists who no longer think Uganda is worth going, just goes to show how lack of consultation with stakeholders can spoil everything! It does not take rocket science to predict this would happen. The touring companies could have easily told policymakers that the 18% VAT charge would be damaging. I blame the government for not being sensitive enough about how the tourism business works. It pains me to see how many officials take tourists for granted, considering that during a year they brought in $1billion. Therefore, it is an honour to host them; not a right. Please, let us all read from the same page on this issue. Either we want to we encourage tourism or we do not. We cannot have it both ways and be accused of not being serious. In my opinion, if we want to be serious then tourism must become a separate ministry.

Bruce Kayumba Kampala, Uganda

Editor, Reading about the Rwanda traders and their dislike for the new electronic billing machines, reminds us that not all new things are eagerly accepted. Many people fear change because it rocks their comfort zone. It is much more difficult with technology, especially when dealing with older people. No matter how much we tell him of the advantages. Our 45-year old uncle will not use an ATM card and prefers going to the teller. Instead of boasting how good the machines would be for the Rwanda Revenue Authority, spare more time telling the users how life would be much easier for them as well. It is also very important that the machines are not substandard. If someone starts out with a faulty machine then they immediately have a mistrust of all similar machines.

Ingrid Da Costa Nairobi, Kenya

Outsourcing to KRA will help! Editor, The recent announcement by National Social Security Fund that they are outsourcing the collection job to Kenya Revenue Authority must have sent some shivers down many spines! We all know how aggressive KRA can be so this new job means employers have no place to hide. As an employee I am happy. Many employers think NSSF remittances are a choice and not mandatory by law. Employees then suffer the consequences when they neglect to pay up. I applaud the government for forcing this move. There has been too much soft approach when dealing with NSSF failure to keep track of its finances; actually our finances. Sacking the former MD was welcome. Since KRA pokes itself into anything to do with income, then they have access to more detailed information. It will be much harder to dodge KRA than NSSF. More important is that NSSF is a good thing. Why should we undermine it by defaulting?

Simon Odhiambo Nairobi, Kenya

side. One of the major considerations when arguing against the use of GMO products is the potential for environmental harm. What exactly are the environmental risks to consider in regards to GMOs? First of all, it is important to understand what a GMO is precisely. The World Health Organization (WHO) defines them as organisms whose DNA has been altered in a non-natural way. GM plants are usually changed to be insect resistant, virus resistant, or herbicide tolerant. With these changes come some potentially problematic environmental challenges. Firstly, toxicity is a huge issue surrounding chemical pesticides and herbicides, used commonly with GMOs, in addition to the toxicity inherent to these plants. GMOs may be toxic to non-target organisms, bees and butterflies being the most talked-about examples currently. Bees are hugely important in the pollination of many food crops, but are unfortunately extremely endangered by modern agricultural techniques, such as GM crops. Monarch butterflies are specifically at risk from GMO maize plants. In addition to bees and butterflies, birds are also at risk from pesticides, and work as biological control agents and pollinators, again, like bees. Furthermore, the long term effects of GMOs are not certain. Pests that are targeted by these agricultural methods can adapt to pesticides and herbicides, in addition to the DNA changes in GM plants to make them ‘resistant’. This means that they will not always be effective, but their toxic legacies will remain. Cumulative effects of products such as GMOs are important to take into consideration. Evidence also suggests that small genetic changes in plants may produce even larger ecological shifts, meaning that there is potential for GMO´s to become persistent and weedy in agricultural conditions, since they are modified to be resistant to some modern agricultural techniques. This can also mean being invasive in natural settings, where GMOs, of course, do not occur naturally. It is

not impossible for new, human modified, plants to become invasive species in delicate, natural ecosystems. Finally, biodiversity, while it is critical in all ecosystems and to the sustainability of all species, is put at risk by GMOs. When GM crops are planted, generally in a mono crop fashion, many heritage seeds are no longer used. The nature of GMOs means fewer weed flowers and, therefore, less nectar for pollinators. Toxins released into the soil through the plants´ routes mean fewer soil bacteria, which are integral to healthy soil for plants to grow without the use of chemical fertilizers. Toxic residues are left in the soil of GM crops. Nutrients are not returned to the soil in mono crops and from GMO foods, meaning that soil is becoming dry and void of all nutrients, generally integral to the growing process. A cycle of dependence on GMO seeds and chemical fertilizers, pesticides, and herbicides is then created in order to grow a single crop. In addition to soil issues, the irrigation used to grow GM foods naturally carries all of these problems into water sources and into the air. This exposes different bacteria, insects, and animals to the same problems. All of these impacts must be taken into consideration in the larger picture; GMO´s DNA may end up in soil, compost, animal feed and byproducts, and other living organisms from insects to larger pests. Bees can transport pesticides, herbicides, and DNA through the air into the environment. Once a plant is introduced in an agricultural environment, it is reasonable to assume it will become part of a larger ecosystem, meaning the problem of environmental damage done by GMOs is much larger than simply potentially harming our health. Aside from environmental issues, GMOs are the topic of social and ethical debates as well. It goes without saying that we live in an interconnected world, where the way we interact with nature can cause a complex array of consequences. Being informed on the food we are consuming, and the way modern agricultural techniques are affecting the environment, is one effective way of consciously interacting with the natural world.

OneGreenPlanet

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EAST AFRICAN BUSINESS WEEK

AUGUST 12 -18, 2013

NEWS

Kenya prices skyrocked in July BY HUMPHREY LILOBA NAIROBI, KENYA – Consumers felt the pinch last month as Kenya’s rate of inflation rose to 6.02 percent from 4.91 percent in June. Prices of commodities such as milk, cabbages, sukuma wiki and beef went up July compared to June as did the prices of popular East African Breweries products including brands such as Tusker and Pilsner. However, prices of potatoes, sifted maize flour, sugar, tomatoes as well as electricity dropped in July as compared to the previous month. Kenyans were also paying higher prices for transport due to increases in petrol and diesel prices in July. Pump prices are likely to go up even further this month because of the depreciating value of the shilling against the dollar. The other factor which may hike the inflation rate is the 1.5 new import levy in the calcula-

A lady walking in a second hand clothing market in Nairobi. Prices of commodities are on the rise. tion of prices by the Energy Regulatory Commission. This may put further pressure

AFB signs up 100th client in Kenya NAIROBI, KENYA--Consumer Finance Company, AFB has signed up the 100th merchant three months after the company was officially launched into the Kenyan market. Brett Van Aswegen, the Managing Director – Cards at AFB said, “We are pleased to cross the century mark for our merchants. This is a major milestone for AFB. I would like to thank our team in Kenya, whose efforts and commitment have made this milestone possible. He said: “We are committed to building a diverse portfolio of retail partners that will give our customers wider offering and spread.” The company also signed up its 5000 customer, Jemimah Wainaina, who will get her first purchase for free as a mark of appreciation by AFB. “This is an innovative product and I am grateful to AFB for coming to my rescue at my hour of need,” said Wainaina. “I badly needed some cash to buy some essential tools for my salon business until my friend introduced me to AFB. I believe this will have a positive impact on my business and my life too.” AFB is a consumer finance business that specializes in the provision of credit products to consumers The card allows customers to spread the cost of their purchase into affordable monthly installments over a period of six months.

on inflation. The price of commodities may keep increasing as manufacturer’s factor in the new

levy on end products made using imported raw materials. Another factor likely to lead to a hike in

prices of goods is if the VAT Bill is finally passed into law. Razia Khan, Standard Chartered Bank Head of Africa Research said the Central Bank monetary committee may retain its policy rate at 8.5 percent this financial year. Banks are reducing their lending rates as a result of the lowered central bank rate but another round of interest rate cuts is unforeseen from the commercial institutions. The cost of borrowing may rise further after a 10 percent exercise tax on fees charged by financial institutions introduced in the new budget is put in effect. The price comparisons were drawn from data collected from selected retail outlets in the second and third weeks of July. In Uganda inflation rate rose to 5.1 percent by July from a revised figure of 3.6 percent a month earlier, official data showed yesterday. The Uganda Bureau of Statistics said the core inflation rate climbed to 6.4 percent from a revised 5.8 per cent in June.

Integrate public health in wildlife BY SAMUEL NABWIISO ENTEBBE, UGANDA-Veterinary experts have advised the Government to incorporate public health in tourism programs to fight the outbreak of wildlife disease in National Parks. Dr.Gladys Kalema Zikusoka, the founder of Conservation Through Public Health (CTPH) said focusing on health in the tourism sector plays a vital role in curtailing the spread of disease. She said: “The country experiences outbreaks of disease especially in the National Parks. This is associated with the direct contact between human beings and wildlife. Many tourists and the local population do not know human diseases can be transmitted to wildlife.” She said wildlife authorities should have strong mechanisms in place to integrate public health as a conservation tool to protect endangered species like the Gorillas. Kalema was speaking during the commemoration to

The great ape is one of the primates to look at in Uganda mar 10 years in existence of CTPH. CTPH is a non-profit, nongovernment organisation founded in 2002. Its mission is to promote conservation and public health and improving primary health by improving public health care to people and animals in and around protected areas in Africa. Kalema said addressing the issue of public health in communities surrounding National Parks where endangered species are found can reduce the outbreak of disease

like tuberculosis, scabies and ebola among wildlife species. Some wildlife like the Mountain Gorillas have similar genes like human beings. She said the organization has managed to train local communities on early diagnosing of tuberculosis especially among students both in primary and secondary schools . Emphasis is on how to reduce TB prevalence in local communities in and around the Bwindi and Mgahinga conservation park. “Under this model we have to strengthen primary and sec-

ondary prevention measures in wildlife by reducing threats of disease to wildlife through education on human and livestock transmission to and from wildlife. This has been achieved through training of the human and gorilla conflict resolution team and park staff in Bwindi, Mgahinga conservation area and Queen Elizabeth Park. We also sensitize tour operators on human and great ape disease transmission issues. In Uganda gorillas generate as much as $1,460,000 per year from tourism. Dr. Andrew Seguya, the Uganda Wildlife Authority (UWA) Executive Director told EABW, integrating conservation through public health is a working model. UWA intends to introduce the model in National Parks across the country He said: “In Western Uganda the approach has succeeded. We appeal to the Government to support UWA and other NGOs through programs such as Conservation Through Public Health. These should be implemented countrywide in all National Parks.”

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS

THE GENERAL PROCUREMENT NOTICE (GPN) FOR THE FINANCIAL YEAR 2013/2014 1. The Government of the United Republic of Tanzania has set aside funds for the operations of the Ministry of Works during the financial year 2013/2014, towards the costs of Procurement of Goods, Works, NonConsultancy and Consultancy services. 2. The Ministry of Works is now issuing the General Procurement Notice (GPN) in accordance with requirement of Public Procurement Act No. 21 of 2004 and its Regulations of 2005 for the purpose of informing Bidders, Suppliers, Contractors, Non–Consultancy service providers, Consultancy Service providers and the General Public on tender opportunities during the financial year 2013/2014 as indicated in the Table below. 3. Bidders, Suppliers, Contractors, Consultancy service providers and non-consultancy service providers may obtain further information from the Secretary of the Tender Board Ministry of Works P. O. Box 9423, Holland House, 1st rd Floor, room No.102, Samora Avenue-Dar es Salaam. 4. Further to this Publication of this General Procurement Notice (GPN), sub sequent announcements of Specific Procurement Notice (SPN) Tenders will be advertised in the Local and International Newspapers. PROCUREMENT PLAN: FOR GOODS, WORKS AND NON-CONSULTANCY SERVICES - Submission to PPRA PROCURING ENTITY: MINISTRY OF WORKS FINANCIAL - YEAR: 2013/2014 Pre-Qualification

INVITATION

Document

Invitation for Bids & Evaluation

EVALUATION

Contract Finalization

Invitation for Bidding

Procuremen Preparion Aproval Inviation Closing- Submission Appoval Notification Bid Bid Submission Approval Contract Tender Lot No. t by PMU by TB Date Opening Eval. by TB to the Invitation Closing- Bid By TB Amount No. Method Report applicant Date Opening Eval.Report in'000' Tshs Various FWC/GPSA N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Description

1 SUPPLY OF STATIONERY

Date of Date Award Contract Notificati Signature on N/A N/A

2 SUPPLY, INSTALLATION AND COMMISSIONING OF OFFICE EQUIPMENT 3 SUPPLY OF CONSUMABLES AND ACCESSORIES FOR OFFICE EQUIPMENT 4 SUPPLY OF OFFICE FURNITURE AND FITTINGS 5 SUPPLY OF CLEANING MATERIALS 6 SUPPLY OF MOTOR VEHICLES AND MOTOR CYCLES 7 SUPPLY OF TYRES AND TUBES 8 SUPPLY OF FUELS AND LUBRICANTS 9 SUPPLY OF FOOD AND BEVERAGES

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11 KITCHEN APPLIANCES 12 SUPPLY, INSTALLATION AND COMMISSIONING OF FIRE FIGHTING EQUIPMENT 13 PROVISION OF TRAVELLING SERVICES AND AIR TICKETS

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14 PROVISION OF TRAVEL AGENCY SERVICES AND AIR TICKETS 15 PROVISION OF ADVERTISEMENT AND MEDIA SERVICE

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16 PROVISION OF SERVICE AND MAINTENANCE OF OFFIXCE EQUPMENT 17 PROVISION OF SERVICE AND MAINTENANCE OF MOTOR VEHICLES AND MOTOR CYCLES, 18 PROVISION OF PRINTING SERVICES 19 PROVISION OF CONFERENCE FACILITIES 20 CIVIL WORKS (Minor Works) 21 EXHBITION AND CELEBRATION

Various FWC/GPSA N/A

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ABBREVIATIONS:- FWC - Framework Contract GPSA - Government Procurement Services Agency General Request for Expression of Interest Procurement Notice Advert

Basic Data

No. Description

Tender No

Selection Contract Estimated Method Type Amount in Tshs Provision of HIV/AIDS ME/015/2013 SS N/A N/A AUGUST, Education and Awareness on Private – 14/HQ/C/01 TACAIDS 2013 Sector Participation (PSP) Provision of Consultancy Services on ME/015/2013 SS - TIE N/A Road Safety Education in Southern – 14/HQ/C/02 Highland Zone Education on PPA, 2004 & PPA, 2011 ME/015/2013 SS N/A by the PPRA –14/HQ/C/03 PPRA

Intimation Date

Evaluation

Invitation of

Preparation on of Consultant Proposals Contract Finalization RFP Documents Invitation Closing Submission Approval Preparation Approval Invitation Submission Contract Contract Contract Actual/Plan Data Opening Evaluation of shortlist Submission by TB Date Opening Amount in Award Signature Report Date Tshs “000 N/A N/A N/A N/A N/A N/A 20/9/2013 25/10/2013 N/A 06/01/2014 Plan

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CONTINUED TO PAGE 10

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

NEWS

Kampala digital migration kicks off BY EMMA ONYANGO ENTEBBE, UGANDA--The long awaited migration from analogue to digital broadcasting in the Kampala Metropolitan area has kicked off after the signal distribution equipment was handed over to the Uganda Broadcasting Corporation (UBC). However, according to Eng. Godfrey Mutabazi, the Executive Director of the Uganda Communications Commission (UCC), analogue signals will continue being distributed alongside the digital signals. “We have not yet decided on how long the simulcast period will run but in my own thinking, by the end of next year (2014) we should have cleared that process,” he told the EABW recently. This therefore meanthose without Set Top Boxes have at least a year to acquire them and they have to be those with the DVBT2 technology. The UCC boss also clarified that it is mandatory for every

Pay TV to carry free to air channels on their platforms. The free to air channels must be carried on their platforms even if one’s subscription to the Pay TV has expired,” Mutabazi said. The Digital Migration Policy had stated UBC would supply subsidized Set Top Boxes to customers. That has however not been implemented because those wishing to purchase decorders have to buy them from Pay TV operators like StarTimes, Multichoice and Zuku. According to Bob Lyazi, the Director of the Rural Communication Development Fund (RCDF) at UCC the process was delayed as Uganda adopted a new digital migration standard. “The system was upgraded to T2 from the earlier T1. So UBC had to start the process all over again and they are working on it.” An advert in a local daily recently showed that UBC had invited expression of interest to supply DVBT2 Set Top Boxes and other accessories. The other thorny issue in the

Technicians explain the digital migration process during the handover of signal distribution equipment to UBC recently. PHOTO BY EMMA ONYANGO digital migration process has been the policy that provides for UBC to be the sole signal distributor; a thing that has not gone

down well with stakeholders in the sector. They argue that there could be conflict of interest since UBC will be a signal dis-

tributor while at the same time a content provider. Mutabazi however downplays the fears saying signal distribution should not be a subject for debate because it is a simple issue thing that can be resolved. He said: “According to UCC records, we have about 45 TV stations in Uganda. That means we would have to give UBC two frequencies to use to carry every TV station in Uganda. So if you have got four or more signal distributors, what will they carry?” He said the Government policy as of now says UBC is the only signal distributor however other Pay TVs like StarTimes and Mulitichoice are carrying their own signals. The official policy states that UBC is the only signal distributor but that is as far as free to air is concerned. DVB-T2 is a digital terrestrial transmission system developed by the DVB project. It introduces the latest modulation and coding techniques to enable the highly efficient use of the valuable terrestrial spectrum for the delivery of audio, video and data services to fixed, portable and mobile devices.

FROM PAGE 9 General Request for Expression of Interest Procuremen t Notice Advert

Basic Data

No. Description

Tender No

Provision of Consultancy Service for Development of Motor Vehicle Policy

Provision of Consultancy Services for Development of Pollution control progammes in the Construction sector Activities Provision of Consultancy Services, to conduct Road Safety Awareness Campain for Road Users Provision of Consultancy Services for Development of Environmental Management System (DIMS) Provision of Consultancy Services to conduct the study, Research on High Rate of Accidents in the Coast Zone.

KEY: GPSA GPN FWC PMU TACAIDS APP TIE PPRA PPA N/A CQ NCB ICB

Selection Contract Estimated Method Type Amount in Tshs ME/015/2013 CQ N/A N/A AUGUST, – 14/HQ/C/04 2013

Intimation Date

Evaluation

Invitation of

ME/015/2013 CQ – 14/HQ/C/05

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AUGUST, 2013

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23/09/2013 28/10/2013 N/A

31/12/2013

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ME/015/2013 NCB –14/HQ/C/06

N/A

AUGUST, 2013

N/A

04/11/2013 06/12/2013 N/A

12/03/2014

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ME/015/2013 CQ – 14/HQ/C/07

N/A

AUGUST, 2013

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30/12/2013 06/01/2014 N/A

14/03/2014

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ME/015/2013 NCB – 14/HQ/C/08

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AUGUST, 2013

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06/01/2014 06/02/2014 N/A

06/04/2014

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Government Procurement Services Agency General Procurement Notice Frame Work Contract Procurement Management Unit Tanzania Commission for HIV/AIDS Annual Procurement Plan Tanzania Institute of Education Public Procurement Regulatory Authority Public Procurement Act, 2004 & 2011 Not Applicable Competitive Quotation National Competitive Bidding International Competitive Biddin

For more information and enquiries please don’t hesitate to write to the below address:Permanent Secretary, Ministry of Works, P.O.Box 9423, DAR ES SALAAM.

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

NEWS

Apple wins key patent case against rival Samsung The US ITC upheld a 2011 decision which found that Samsung had infringed Apple patents in the production of mobile phones, media players and tablets. The US ITC has ordered that Samsung devices affected by the ruling are banned from the US. But that ban is on hold while US

President Barack Obama reviews the decision.The President has 60 days to assess the US ITC's findings, although analysts say he is unlikely to overturn the commission's decision. "We are disappointed that the ITC has issued an exclusion order based on two of Apple's patents," Samsung said in a statement.

Continue reading the main story “Start Quote The noose is tightening. Apple step by step actually is gaining leverage against Samsung” Florian Mueller Foss Patents "The proper focus for the smartphone industry is not a global war in the courts, but fair competition in the marketplace."

Apple hailed the decision, placing it in the context of the tech giants' global patent battles. "With today's decision, the ITC has joined courts around the world in Japan, Korea, Germany, Netherlands and California by standing up for innovation and rejecting Samsung's blatant copying of Apple's products," said the company.

NATIONAL EXAMINATIONS COUNCIL OF TANZANIA

INVITATION FOR BIDS 1.The Government of Tanzania has set aside funds for the operations of the National Examinations Council of Tanzania during the financial year 2013/2014. It is intended that part of the proceeds of the fund will be used to cover eligible payment under the contract for the supply of goods. 2.The National Examinations Council of Tanzania now invites sealed bids from eligible Suppliers for bids mentioned below: Bid No.

Description of Item Procurement method PA/045/2013/2014/G/01 Supply of MF ICB Printing Papers Wood Free PA/045/2013/2014/G/06 Supply of Security ICB Envelops PA/045/2013/2014/G/09 Supply of Diaries CQ

Date of opening

PA/045/2013/2014/G/10 Supply of Calendars CQ PA/045/2013/2014/G/12 Supply of Motor NCB Vehicles

15/8/2013 30/8/2013

16/9/2013

16/9/2013 15/8/2013

3.Interested eligible Bidders may obtain further information from and inspect the Bidding Documents at the office of the Secretary of Tender Board National Examinations Council of Tanzania, PMU Offices- Stores Building P.O Box 2624 Dar es Salaam from 8.30hrs to 16.00hrs on Monday to Friday inclusive except on public holidays. 4.A complete set of Bidding Document(s) in English and additional sets may be purchased by interested Bidders on submission of a written application to the address given in paragraph 3 above and upon payment of a non-refundable fee of Tanzanian shillings One Hundred Thousand (Tshs. 100,000.00) Only for International Competitive Bidding (ICB) & National Competitive Bidding (NCB) and Fifty Thousand (Tshs. 50,000.00) Only for Competitive Quotation (CQ) Payment should be payable to National Examinations Council of Tanzania through Account No: 2011100238 NMB Bank House,

Account No: 11103001074 NBC Corporate Branch and Account No: 01J1013540000 CRDB Kijitonyama Branch. 5.Sample for MF Printing Papers Wood Free, Security Envelops, Diaries and Calendar shall be submitted together with bid documents. 6.Bids for supply of MF Printing Papers Wood Free and Security Envelops must be accompanied by a Bid security of two percent (2%) of the contract price in an acceptable form or freely convertible currencies in case of foreign Bidders and for Supply of Motor Vehicles must be accompanied by a Bid Security Declaration. 7.All bids in one original plus two copies properly filled in, and enclosed in plain sealed envelopes must be delivered to the address given in paragraph 3 above at or before 12.30hrs local time on Thursday 15th August, 2013 for Competitive Quotations, 12.30hrs local time on Monday 16th September, 2013 for International Competitive Bidding and 12.30hrs local time on Friday 30th August, 2013 for National Competitive Bidding. 8.All Bids will be opened in public immediately after submission deadline in the presence of bidders’ representatives who choose to attend the opening ceremony which will be conducted in the PMU Hall- Stores Building at National Examinations Council of Tanzania. 9.Late Bids, Portion of Bids, Electronic Bids, Bids not received, Bids not opened and not read out in public at the bid opening ceremony shall not be accepted for evaluation irrespective of the circumstances. EXECUTIVE SECRETARY NATIONAL EXAMINATIONS COUNCIL OF TANZANIA P.O BOX 2624 DAR ES SALAAM TEL: +255-22-2700493-6, FAX: +255-22-2775966 E-mail: esnecta@necta.go.tz

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

MINING

Miners hold breath as Kenya pulls plug BY EABW REPORTER NAIROBI, KENYA-Several resource company executives are still reeling from Kenya’s decision to revoke mining license issued earlier this year. This came soon after an IMF team also queried the secrecy that shrouded the whole process. “Any licence issued between 14 January and 15 May is hereby revoked immediately as we review each case to determine their nature and benefit to the country,” mining Cabinet secretqry Najib Balala told a news conference last week. One firm, Cortec Mining has already publicly expressed its unhappiness at their turen of events. Cortec was about to start mining niobium ore after gaining environmental approval. The government has also hiked royalties. The rate on gold is now 5% of gross sales value up from the current level of 2.5%3%. Balala said, “The last time royalties were reviewed was in 1999 and only 0.1 percent of royal-

Mining Secretary, Najib Balala, announced a hike in royalties and said the government wants to make sure that the country gains from the sector. ties were paid to the government. We have gazetted new rates that are as follows, 12%t for diamonds, 10% for rare earths and titanium, 8 percent for coal, 5 percent for gold, gemstones and fluorspar,” The revoked licenses cover exploration, prospecting and mining. President Uhuru Kenyatta, who was elected on March 4, 2013, created an independent mining docket to help Kenya reform and develop the sector. Balala also suspended the Commissioner of Mines, Moses Masibo. According to sources some licenses were issued the day Kenyans went to the polls. A clear signal that not all was fair

play. “We want to ensure the country gains from the mineral potential,” Balala said. About 500 licenses were issued recently but only 20 are said to be active. Many licenses are thought to be held for merely out of speculation. Balala said a mining Bill is before Cabinet and will soon be debated in Parliament. Kenya has limestone, gypsum, soda ash, diatomite, gemstones, fluorspar, and zinc. However, the mineral sector is so far not a significant contributor to the country’s economy. Most of the mines (gemstones, diatomite, fluorspar, and soda ash mines) are privately owned.

Geita tops $600m in paid dues

Resources still dominate FDI flows to Africa LONDON, UK- - In 2012, according to UNCTAD, Foreign Direct Investment (FDI) flows into subSaharan Africa (SSA) were highest (above $3 billion) in Nigeria, Mozambique, South Africa, Democratic Republic of Congo (DRC), and Ghana. Worthy of note is that they are all resource-rich countries (oil, gas or minerals), thus underscoring the sector's continued central role in attracting FDI to the continent. Despite the clear push towards economic diversification, natural resources are likely to remain FDI priorities for the region, in the near-term. East Africa's prime geographic location (for Asian markets in particular) is a key attraction for emerging Asian investors targeting hydrocarbons projects. In the East Africa region, due to recent hydrocarbons discoveries, Tanzania and Uganda have been foremost in attracting FDI.FDI inflows for the East Africa region increased from US$4.6bn in 2011 to US$.3bn in 2012. In southern Africa, investors' interest in Mozambique has been remarkable, and the country received an estimated $5.2billion in FDI on the back of world-class gas discoveries in 2012. Mining has also become another hot cake; FDI flows to the Democratic Republic of the Congo (DRC) rose from $1.7 billion to $3.3 million in 2012 largely reflecting steady investment into the mining sector, including the copper-cobalt mines at Tenke Fungurume in the south-east. However, according to an analysis by Rolake Akinkugbe, given the enormous infrastructure challenges involved in oil and mineral extraction in Africa, it is likely that up to 40% of FDI investment directed towards other sectors such as infrastructure and utilities is actually co-invested with oil and mineral FDI. This suggests the latter will account for an even greater share of inflows for the foreseeable future. the mining sector in Africa has typically relied on stock markets for funding. However, with some of the world's largest mining companies pushing to sell assets and cut costs, following high profile asset write downs at the start of 2013, PE funds may be more swayed to invest in African mining prospects, with its high riskhigh reward curve. Globally, around $48 billion of mines and assets have been on the block for sale in 2013. PE investors accounted for 21% mining deal activity in the nine months to September 2012, against just 12 % for the same period in 2011. Of this, Africa's share is even lower, and many would-be mining focused PE funds in Africa are generally put off by the long time lines that mineral extraction in Africa requires. Agencies

BY ANDREW ZABLON MWANZA, TANZANIA Geita Gold Mine Limited (GGM) has paid $683 million (Tsh1.1 trillion) in direct contributions to the government. This has been by way of taxes and royalties since 2000, according to Steven Robins, the acting GGM General Manager. In 2012, GGM contributions totaled $213.8 million. GGM has also offered to contribute the disputed amount of Tsh2.2 billion towards the completion of the government’s portion of the Geita water project. The construction of a clean water supply will benefit about 130,000 residents in and around Geita.

Australia to host

The extraction of gold during the past decade has supported the national budget. According to GGM, talks continue with the Geita District Council and the Tanzania government over outstanding fees and demands for payment. The Geita District Council is demanding seven years in arrears

(1999 to 2005) of Tsh320 million council levy paid annually totaling to Tsh2.2 billion GGM is within Geita District Council, Geita region. It has accepted a service levy liability of Tsh640 million that should

be paid once the Council provides bank details. GGM has also paid $4.1million to more than 700 people from villages of Mtakuja, Nyamalembo, Nyakabale and Kalangalala being compensation for their land.

MELBOURNE, AUSTRALIA-- The Africa-Australia infrastructure conference has been scheduled for September in Melbourne. The two-day conference is aimed at bringing investors from Africa to Australia for the purpose of interacting with other participants and establishing stronger networks with better business opportunities and funded-projects. A statement issued by the Executive Chairman of Africa Australia Infrastructure Conference, Frank Aneke reveals that ‘African economic output has more than doubled over the past decade. In its most recent World Economic outlook paper (April 2011), the IMF forecasts 5.5 percent GDP growth for sub-Saharan Africa in 2011 and 6 percent in 2012, with robust growth forecast in countries like Ghana, Kenya, Ethiopia, Angola, Botswana, Tanzania, Uganda and Nigeria.’ The statement added that the conference has become vital now as 'the infrastructure sector has played an important role in the economic growth of many countries in Africa' and that 'more than ever before.

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2012

BUSINESS DIGEST

Shopping arcades risk fire outbreaks BY S. KYATUSIIMIRE KAMPALA, UGANDA— On any given working day, Kampala’s numerous shopping arcades are a heaving mass of jostling people, loud music and stacks of goods in all sizes and shapes. Those who suffer from anxiety attacks triggered off by being confined in closed spaces should not visit these arcades. Probably they will get sick. The other thing is that these arcades are fire traps. This is on account of the squeezed space and the many electrical appliances running frequently on haphazard wiring. Portable fire extinguishers are also rare to see. The police fire department has blamed fire out breaks in past years on human negligence and poor policy implementation by the government. In a recent interview Rogers Mwijuka, an operations officer for Kampala Central said they have tried on many occasions to sensitise the public on how to prevent fire. But he said people are not complying with the recommended measures and when fire destroys their property, they are quick to blame the fire brigade. ‘’We have carried out public sensitisation in schools, markets, shopping malls, hospitals, private homes and factories almost every

week. But it’s very unfortunate that people need to take what we tell them seriously.’’ Mwijuka said. “We tell people to fix fire alarms especially in big buildings, switch of electronic appliances when they are not using them and also put out charcoal stoves,” he said. “ But every week we receive cases associated with the same causes,’’ he added. He said their work is to sensitise, educate and protect the public. However, it’s the work of Kampala Capital City Authority (KCCA) to make sure that buildings are in good condition and all security measures in place. Mwijuka said a major part of the problem is that some relevant officials are paid off to ignore business people who do not fulfil all conditions for public safety. A simple survey in the city centre revealed that apart from a few modern shopping malls like Aponye City Mall, Shoprite, Capital Shoppers and similar establishments, other shopping arcades, shopping centres, shops do not have fire extinguishers or fire alarms. This means in case of a fire outbreak, there is no firs line of defence. Mwijuka said fire extinguishers are the recommended and most efficient way of eliminating fire. In most of the modern shopping malls, there were two fire extinguishers on

MAGNIFICENT: Garden City Mall in Kampala. These shopping centers have been hit by fires. each floor and in places that can clearly be seen by people and security men who are trained to use them. There are also fire alarms which are meant to alert people in case of a fire This isn’t the same case with most of other buildings in Kampala especially those in the downtown

areas, like in Kikuubo (a busy wholesale hub). These are busiest places since it’s where you can find affordable goods and the prices are negotiable compared to uptown shops. However rare and unlikely it might seem to these business people and the owners of these buildings at

large, fire can break out anytime. It is always prudent to limit the risk as much as possible which is not happening in many Kampala shopping arcades. These buildings are so congested with people and goods that a fire will spread very quickly. Secondly, the risk from

electrical short circuits increases with the haphazard nature of connections. All these factors can easily cause fire and we cannot ignore the careless smoker. Mwijuka is pessimistic .“People only get to understand the seriousness of such issues when fire breaks out,” Mwijuka said.

City authority approves UTODA buses BY ERIOSI NANTABA KAMPALA, UGANDA-Kampala Capital City Authority has granted private transport service provider UTODA AWAKULA ENNUME a temporary permit to run a bus service along designated routes in the city. Speaking to journalists recently in Kampala, Peter Kaujju KCCA spokesperson, said the company is supposed to among other things, pay monthly revenue of Ush 300,000 (about $110) per bus to the Authority for a period of 12 months. “Validity is 12 months and they are expected to maintain the proposed bus fares (initial cost of bus card at Ush1000 and Ush1200 for a single route ticket) with a maximum of 25 buses operating along

the designated bus route,” Kaujju said. The designated routes include Gayaza road via Kalerwe-Binaisa Road-Haji Musa Kasule Rd, Wandegeya-Bombo Rd, City Square-Jinja Rd-Wampewo Round about and back along the same route. This comes at a time when Pioneer buses were impounded earlier this year after the company failed to clear a sh8 billion (about $3 millon) in import tax duies to the Uganda Revenue Authority. UTODA unveiled the four 60-passenger capacity buses, supplied by India’sTata Group, in June. UTODA claim to they will create a well organized transport system in Kampala, which currently mainly relies on privately owned 14-seater minibuses.

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EAST AFRICAN BUSINESS WEEK

AUGUST 12 -18 , 2013

BUSINESS DIGEST

Albinos reach out to NBA stars BY PATRICK KISEMBO KIGOMA-TANZANIA-- The Kabanga Center for People with Disabilities and Albinism has requested for funds from celebrities to help care for people with disabilities. Albinism is a non-contagious, genetically inherited condition. Both parents must carry the gene for it to be passed. People with albinism have little or no pigment in their eyes, skin, or hair. They have inherited altered genes that do not make the usual amounts of a pigment called melanin. Persons With Albinism (PWA) in tanzania are stigmaised with the belief their body parts if used with other potions have magical powers to provide riches. In some cases the body parts are exported. Last week, management requested several visiting American celebrities, under the auspices of the Tanzania Red Cross Society, for $25,000 (about Tsh40,437,116). The money is intended for provision of clean drinking water for the center. The center runs a primary school comprising 700 pupils. It accommodates 193 pupils with different disabilities. 63 are albi-

NBA star Stephen Curry playing basketball at Nyarugusu refugee camp. INSET: Stephen Curry nis, 26 are blind, 67 are deaf, 13 are intellectually impaired and 24 have other physical disabilities. Albinis who are seven years and below live at the center for security reasons.

Samuel Stephen, the Center’s Coordinator, told top National Basketball Association (NBA) player Stephen Curry, the center needs money to cater for more teaching and learning aids including computers, projectors,

printers, photocopy machines and reading materials for children with albinism. Curry’s trip was arranged by the United Nations as part of the ‘Nothing but Nets’ campaign. The absence of water at the

Entrepreneurs get training manuals BY BAZ WAISWA KAMPALA, UGANDA--Uganda Investment Authority (UIA) and other development partners moved to avert the challenge of the existing language barrier among young entrepreneurs. The Government has translated UIA training literature manuals to: Luganda, Ateso and Luo with Runyakitara soon to follow. 5,500 copies of the manuals have been translated, printed and will be distributed to various young entrepreneurs all over the country. In 2007 the Government of Uganda with funding from Icelandic International Development Agency (ICEIDA) and the Belgian Embassy initiated a countrywide Entrepreneurship Training Program to impart business skills to business owners. This was done using training manuals written in English. This however has proved to be a challenge to the largely non-English speaking youthful entrepreneurs. Eng. Gabriel Ajedra,the Minister of State for Investment in the Ministy of Finance told journalists in Kampala: “A breakthrough has been made in the language barrier

Eng. Gabriel Ajedra which previously hindered many potential entrepreneurs from benefiting from the UIA program. The training programs are offered free-ofcharge country wide.” The minister said more than 500 training sessions were implemented in 80 districts with over 17,536 entrepreneurs benefiting so far. The training manual covers mainly business basics, business planning, enterprise management, and the social and personal aspects of business. Ajedra is optimistic the translations will improve the skills of entrepreneurs and enable the smooth

transition of micro level businesses to macro levels. This according to the minister will enhance business sustainability and ultimately provide for the creation of more income generating projects as the businesses grow and diversify to take advantage of the many opportunities available in the country. The Makerere University Business School (MUBS), Management Training and Advisory Center (MTAC) and Uganda Women Entrepreneurs Association Limited (UWEAL) are the people in charge of training trainers and trainees.

“

The training manuals cover business basics, business planning, enterprise management and social and personal aspects of life

center is the reason many children miss lessons which is the cause of the poor school performance. Curry said: “Children with albinism are not peacefull; they have no hope and happiness. They are not adequately protected by their guardians and security organs from persons with the wrong mirth of selling albino organs to acquire wealth.” Kabanga was started in 1967 as a center for people with disabilities but excluded people with albinism. However, the terrifying and shocking killings of PWAs by 2008 compelled the center to offer protection. “In efforts to prevent the killings of PWAs, the government through the district committee of peace and security decided to pick all people with albinism from their homes and bring them here,” Stephen said. He said the government did so in order to provide security and in particular to let the children regain hope, peace and happiness. The center requires more facilities so the government directives to accommodate children with disabilities should go hand in hand with the improvement of services at the center.

Disabled children in LDCs face stigma NEW YORK, USA--A recent United Nations International Children’s Fund (UNICEF) report shows children with disabilities in the developing world are frequently subjected to severe emotional and physical punishment. It said according to experts, an estimated 93 million children around the world are disabled, including emotional, developmental and physical impairments. The report said 80%of these children live in middle and low income countries and are subjected to harsh discipline. The UNICEF publication entitled: ‘Associations between Child Disabilities and Caregiver Discipline and Violence in Low- and Middle-Income Countries’, has been published on the Wiley online library. Using nationally representative samples of 45,964 two to nine-year-old children and their caregivers in 17 developing countries, the study examined the relations between children’s cognitive, language, sensory, and motor disabilities and caregivers’ use of discipline and violence. “Logistic regression analyses support the hypothesis that children with disabilities are treated more harshly than children without disabilities.” Investigators from Duke University and the National Institutes of Health combed through surveys collected by UNICEF of almost 46,000 parents and caregivers. Countries covered include Ghana, Cameroon, Central African Republic, Georgia, Iraq, Laos and Yemen. It was the largest study to date on the treatment of children with cognitive, physical, sensory and motor disabilities.

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

DIGEST

Katalemwa cherishes disabled children BY ERIOSI NANTABA KAMPALA, UGANDA--The joy of having a child is sometimes times shortened when the new born is discovered to be physically impaired or disabled. It is at this moment when many parents lose hope in raising the child. Physically disabled children and their families suffer from isolation and stigma among the community. They also grapple with the overwhelming effects of the impairment. In some cases, such stigma forces members to abandon and discriminate the victims after losing all hope. A Ministry of Health report, ‘Action on Disability and Development (ADD)’, estimates that there are anywhere between 500,000 and 1,000,000 mentally ill adults in Uganda (Ministry of Health/ADD, 1999). The ministry also says that the number of persons with ‘mental disability’ is 766,898 of whom 183,389 are estimated to be with ‘severe mental retardation’ (Baingana, 1996). Using the WHO-recommended ten percent (10%) of the population to estimate the number of disabled people one arrives at a crude figure of 2.4 million disabled people in the country. For the last 43 years, Katalemwa Cheshire Home (KCH) has been involved in the rehabilitation of children with disabilities to enable them fulfill their dreams and bring out the real meaning in the phrase ‘disability is not inability’. Samuel James Kibanga, the KCH Executive Director while speaking to East African Business Week said rehabilitation is a very important element to restoring hope for disabled children. It helps them adapt to an environment that never isolates them and looks different. “Such children need to be accepted and supported in society to enable them become fruitful and valuable like their counterparts who are born normally,” Kibanga said. Inducting children Kibanga said the children are assessed at the centre to determine the status and level of impairment after which they are referred to partners like Comprehensive Rehabilitation Services in Uganda (CoRSU) for surgical rehabilitation. CoRSU is located along Entebbe highway. Others are referred for psychosocial support, plastic clinics, mental health clinics, occupational therapy and other forms of social rehabilitation among others. The centre works in partnership with other sector players

like CoRSU, Butabika Psychiatric Hospital and others to rehabilitate the vulnerable. He said KCH does not handle surgeries and complicated illnesses but provides pre- and postoperative rehabilitation. These cases are handled by a unit for corrective surgery (both orthopaedic and plastic). It is after a process of rehabilitation when the individuals are discharged back into the community and advised on a review period. “The family members to such children are also integrated into the system and trained on how best to look after the children such that even after discharging them, they can perform the same tasks like the caretakers at KCH,” Kibanga said. He however revealed that some parents and guardians never follow up reviews and it is after discarding or something going wrong when they return which prolongs the process of rehabilitation. Establishment of Katalemwa KCH was established by Leonard Cheshire a British National 43 years ago who was injured during World War 11. After years of rehabilitation and medication, Cheshire deemed it fit to establish a centre that would treat other victims injured during the war. “In 1970, Cheshire established a home that was then targeting adults with disabilities at no cost but was later dismantled at a time when the Obote government was over thrown. It was only after the country achieved stability in the 1990’s when the home was restored,” Kibanga said. At that time, the present board members agreed to focus on young children with disabilities with a view o tackling the problem at the grass roots. KCH’s programmes focus on holistic and comprehensive medical and social rehabilitation of CWDs with consideration of HIV/AIDS and Gender mainstreaming To date the centre set aside the fourth Friday of the month for visiting doctors to tackle disabilities in the form of big heads, twisted limbs and others. According to Kibanga, the centre handles 65,000 children of which 95 to 200 are residents while others are visiting due to the limited facilities but the number of disabled children in Uganda is higher. “KCH also provides disability appliances with its workshop being the leading in the region. The appliances improve function, prevent further disability and protect the affected body structures,” he said. Success stories There are many success stories according to Kibanga which are

SOURCE OF HOPE: The disability appliance workshop at KCH that among others makes shoes for the disabled children. BELOW: A disabled child is fixed in a stand appliance to enable his bones and limbs recover well after the surgery. Inset is Samual Kibanga , ED KCH Photos by Eriosi Nantaba worth noting including among others Justine Mbabazi aged 15 years who received rehabilitation that has improved her state. Kibanga says Mbabazi could only lie on her back but is currently in the process of trying to walk. “She is a total orphan whose parents died of HIV/AIDS and she had been taken to the village be her relatives who could not afford the surgery,” he said adding that with support from KCH, Mbabazi is currently using walking appliances. Mbabazi is not alone as others like one only identified as Gilbert have been inducted into vocational training for courses like metal work, baking and tailoring among others. Challenges According to Kibanga, the

greatest challenge is limited funding that at times delays making some planned activities lag. The limited funding cannot match with the increasing numbers of children seeking intensive medical rehabilitation at the centre. “The society also has a negative attitude towards child hood disability is a barrier. It is also challenging to achieve maximum participation of communities especially those with low incomes,” he said. Kibanga urges the community to increase participation of ordinary community members for purposes of proper inclusion and support of the rehabilitation processes. The future Currently, there are seven Cheshire homes in Uganda

although Katalemwa is the only well established with the facilities in place. Others are located in different parts of the country especially in the East which makes Katalemwa the centre of rescue to many disabled children. “In all programmes aimed at alleviating pain and stigma within the community, Katalemwa is strengthening parental and community participation to sustain programmes and establish sources of income for families below the poverty line,” Kibanga said. He said such programmes are a way forward to encouraging parents and guardians own the rehabilitation process and move out of the charity model to a social model that ensures sustainability at the grass root levels.

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

BUSINESS IN PICTURES

The construction team and management of the Bujagali Hydro electric project pose for a group photograph at the Bujagali Dam premises as the dam marked a year since it began operations. Photo by Emma Onyango

Mayanja Ronald Omugalanda (R) the Sustainable Development Manager Nile Breweries Limited, joins beer retailers during the company’s alcohol retail training in Luwero recently. NBL in conjunction with Uganda Police has embarked on countrywide campaigns geared towards reducing alcohol abuse in Uganda.

Joe Frans (R), a board member at Next Generation Broadcasting hands over documents for the Signal Distribution equipment to Eng. Godfrey Mutabazi (2L) the Executive Director of the Uganda Communications Commission recently. Photo by Emma Onyango

Uganda Breweries Limited Marketing Director, Grace Nshemeire (L) hands over a cheque to Owek. Dennis Walusimbi, the Minister of Information at the Buganda Kingdom, for the 20th Coronation anniversary that took place recently.

Local artiste, Bobi Wine (In cap) poses for a photograph with the organizing committee of this year’s Kampala City Festival due on October 6, 2013. The Musician was chosen as the celebrity endorsement for the event.

Key Accounts Manager for Uganda Breweries presents The Sanctum Bar manager James Kawuke with Johnnie Walker Red Label as the winners of this year’s Master Bar Academy.

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

NATIONAL BUREAU OF STATISTICS The National Bureau of Statistics(NBS) is one of the Government Agencies launched on 26th March 1999.It was formed from the following the transformation of the former Government Statistical Services, giving increased value for money for the benefit of the Government and Taxpayers. It carries out its activities in a business like manner, using commercial and business planning techniques and is customer focused. NBS Vision; “To be a preferred one-stop centre for official statistics and statistical services in Tanzania”. NBS Mission; “To produce quality official statistics and services that meet needs of national and international stakeholders for evidence-based planning and decision making.” Mandate To carry out statistical activities in Tanzania Mainland as given by the statistical legislation – The Statistics Act 2002.The act stipulates the NBS roles as follows: • To provide Statistics to the Government, business community and general public as well as the International Organizations for use in planning and decision. • To co-ordinate statistical activities so as to produce statistics that are consistent. However, before performing functions, which extend to Tanzania and Zanzibar, NBS is required to make consultation with the office of the Chief Government Statistician, Zanzibar. NBS PRODUCTS AND SERVICES FOR AGRICULTURE SECTOR National Sample Censuses of Agriculture 2007/2008 NBS in collaboration with other agriculture sector stakeholders, has designed a number of products and services among others. A National Sample Censuses of Agriculture which is conducted after every five years. The Census is aimed at providing the necessary information for policy formulation and development planning. It also provides data for monitoring the Agricultural Sector Development Programme (ASDP) and other agriculture and rural development programmes and to facilitate specific interventions for most agricultural sector development programmes. In 2007/08 the second Agriculture Sample census was conducted, which was the second to be taken after the 2002/03. after the introduction of a programme for a series of agricultural surveys that were planned and the third one will be conducted in 2013/2014. 2007/08 National Sample Census of Agriculture The 2007/08 Agricultural Sample Census was designed to meet the data needs of a wide range of users down to the district level including policy makers at local, regional and national levels, rural development agencies, funding institutions, researchers, NGOs, farmers organizations, and the like. The dataset is both extensive in its sample and detailed in its scope and coverage to meet the user demands. The census collected detailed data on crop production, crop marketing, crop storage, livestock production, fish farming, and poverty indicators. In addition to this, the census was large in its coverage as it provides data that can be disaggregated at district level and thus allow comparisons with the 2002/03 National Sample Census of Agriculture. The census covered smallholders in rural areas only and large scale farms. The census was carried out in order to: • Identify structural changes in the size of farm household holdings, crop and livestock production, farm inputs and implement use. It also seeks to determine if there are any improvements in rural infrastructure and the level of agricultural household living conditions • Provide benchmark data on productivity, production and agricultural practices in relation to policies and interventions promoted by the Ministry of Agriculture and Food Security and other stakeholders; and; • Establish baseline data for the measurement of the impact of high level objectives of the Agricultural Sector Development Programme (ASDP), National Strategy for Growth and Reduction of Poverty and other rural development programmes and projects. 2007/08 Agriculture National |Sample Census Sample Below is The Table of sample size which was used in 2007/08 Agriculture Sample Census

Description Households Villages/Enumeration Areas Districts Regions

Mainland 47,880 3192 133 21

Zanzibar 4,755 317 9 5

Total 52,635 3,509 142 26

LIVESTOCK AND POULTRY RESULTS FOR NATIONAL SAMPLE CENSUS OF AGRICULTURE 2007/08 1.0 Livestock Population and Growth 2007/08 Agriculture National Sample Census results has proved that Livestock sector including poultry plays a significant role in the economy of agricultural households in Tanzania. Livestock Sector generates considerable amount of cash income and determine the household economic and social status in many communities. An estimated 2,329,942 households (About 40% of the agricultural households) kept livestock. The main types and number of livestock and poultry covered in the 2007/08 Agricultural Sample Census are cattle, goats, sheep, pigs, chicken, ducks, turkeys, rabbits, donkeys, horses and dogs. The reference date for livestock population estimate was as at 1st October, 2008 while other variables collected refer to a period of one year prior to this reference date (1st October 2007 to 30th September 2008). In the surveyed households, cattle were the most dominant specie followed by goats, sheep and pigs (Chart 2.1). The respective numbers and percentages were 21,280,875 (48%), 15,154,121(35%), 5,715,549(13%), and 1,584,411 (4%) for cattle, goats, sheep and pigs

respectively. About 38% of the households kept goats, 37% kept cattle and those which reared sheep were 14%. Similarly, 11% were found to rear pigs (Chart 2.2). Below Chart 2.1: Percent of Livestock by Type 2.2: Percent of Households Keeping livestock by Type 1.2 Other Livestock Other livestock include ducks, guinea pigs, turkeys, rabbits and donkeys (Table 2.9). They are less important to the overall contribution to household food security and as such, are kept by a minimal number of households. Proportionally, there were more ducks compared to other types while the number of horses was the least. Donkeys are mainly used as pack animals and are mainly reared in Arusha and Manyara regions. Dogs are mainly important for household security specifically in the livestock keeping community for scaring livestock scavengers. Table 2.9 Other Livestock Types

Livestock Type Ducks Guinea pigs Turkeys Rabbits Donkeys Horses Dogs

Head Number 1,1575,520 571,739 83,297 135,737 296,660 71 1,004,233

2.0 Chicken Population According to the 2007/08 Census, many households both in the Mainland and Zanzibar, kept chicken especially the indigenous ones or their crosses with either layer or broiler types (hereafter referred to as local). In Tanzania Mainland, a total of 3,703,273 smallholder households out of 3,745,867 households had local chicken. By 1st October, 2008, Tanzania had about 43.7 million chicken of which 41.9 million (96%) were local, 1.3 million (2.7%) were layers and 0.6 million (1.3%) were broilers (Chart 2.18)

Chart 2.1: Percent of Livestock by Type Sheep 13%

Chart 2.2: Percent of Households Keeping livestock by Type

Pigs 4%

Pigs 11%

Sheep 14% Cattle 48% Goats 38%

Cattle 37%

Goats 35% Cattle

Goats

Sheep

Pigs

Cattle

Goats

Sheep

Pigs

2.1 Indigenous Chicken Population Most of the chicken kept by smallholder farmers were of indigenous type or their crosses with exotic types. On the Mainland, there were 3,703,273 households keeping 40,963,137 (96%) of the local types. In Zanzibar, 78,422 households kept 932,469 local types representing 86% of the entire chicken population. The growth rate of the indigenous chicken was about 3.56 % per annum for the period between 1995 to 2008 (Chart 2.22).

3.0 Fish Farming From the 2007/08 Agriculture Sample Census very few households practiced Fish farming in the Mainland (0.2 %) and Zanzibar (0.02%). This is almost the same trend as was observed during the 2002/03 Agricultural Sample Census. The types of fish considered in the survey include; Tilapia, Milk Fish, Prawns and Oyster. 3.1 Fish Production The number of fish stock, farmed by type for the Mainland, includes Tilapia (99.4%). Other species farmed include Milk Fish, Prawns and Crabs whose total number when combined together, amounted to 0.6%. Regions with highest number of households practising fish farming include Ruvuma (37%), Iringa (17%), Mbeya (11%), Tanga (8%), Kilimanjaro (7%) and Tabora (6%). Rukwa, Morogoro, Kigoma, Mtwara, Kagera and Arusha were moderate producers with (3.83%), (2.28%), (1.97%), (1.42%), (1.37%) and (1.13%) of the total households practising fish farming respectively. The remaining regions had insignificant level of fish production (Chart 2.45, Map 3.35). The trend is similar to the 2002/2003 Agricultural Census

4.0 Rural Population Distribution main Household Activity The Main Household Activity is the activity for which most individuals in the rural agricultural community spend most of their time on. About 48.9% of the agricultural population spent most of their time on. Crop

and seaweed farming activity followed by students (34.5 %). The unable to work/ too old/ retired/ sick/disabled category is the third main activity with 10.0%. Fish Farming is the least activity performed by 0.01percent of the agricultural households (Chart 2.9).

Table 2.1: Number of large scale farms between 1994 and 2008

Farm type Crop only Livestock only Crop & livestock

1994/95 756 154 129

Production of flowers 0 Total 1,039

4.1 Types of Agricultural Households The Census shows at national level, crop production was the dominant agricultural activity which engaged 3,508,581 households (60.1%), followed by 2,268,255 (38.8%) households engaged in mixed crop and livestock, 57,770 (1%) households engaged in livestock only and only 3,917(0.1%) households were engaged in pastoralism (Chart 2.12). Of the total crop growing households, 3,422,072 (98%) were on the Mainland and 86,509 (2%) were in Zanzibar.

Across the country, Zanzibar had the highest agricultural households density (50 households per square km) followed by Dar es Salaam (24 households per square km). However, most of these areas are urbanized and hence not typical examples of agricultural households. The least population density was observed in Lindi (2 households per square km), Ruvuma (3 households per square km), Tabora, Rukwa and Manyara each having 4 households per square kilometer (Map 2.2). The involment in farming which one would expect the rural population to depend on, has a different picture (Chart 2.10). Only 48% of the rural household population works full-time on farm compared to 2003 with 68% followed by never work on farm (29%), rarely work in farm (19%) and work part time on farm (4%). The Never works on farm category has increased from 3% to 29% showing that the rural population has started shifting from agricultural activities to other activities.

4.1 LARGE SCALE FARMS Definition of Large Scale Farm: A large scale farm is an economic unit of agriculture production. It consists of all the livestock kept and all the land used for agricultural production without regard to title. For the purpose of the census, large scale agricultural holdings are restricted to those which meet the following conditions. • Having operated at least 20 hectares of arable land cultivated for crop/vegetable/fruits/tree crop production during the agricultural year 2007/08 (1st October 2007 to 30 September 2008); and/or • Own or keep at least 50 head of cattle or 100 goats/sheep/pigs or 1000 chickens/ducks/turkey/rabbits/ during the census year as defined above, and/or; • Operates 0.5 ha of intensive greenhouse horticultural production; and/or; • Operate 0.5 ha of fish farming production units Also, so as to be classified as large holder, the following criteria must be met: The greatest part of the produce should go to market; The operation of the farm should be continuous; Should be an application of machinery; and; Should be at least one permanent employee. 4.1.1 Number of large scale farms 4.1.2 Total number of farms and trends During the 2007/08 agricultural census, the number of large scale farms was 1,006. Over two decades, the number of large scale farms has increased from 480 in 1987/88 to 1,212 in 2002/03 and decreased to 1006 in 2007/08 (Table 2.1). The decrease was mainly caused by the decrease in the number of farms cultivating crops only which droped from 756 in 1994/95 to 520 in 2007/08, a decrease of 31%. The decrease could not off-set a 22.7% increase in the number of farms keeping livestock only from 154 in 1994/95 to 189 in 2007/08, farms keeping both crops and livestock (121%) .

2002/03 710 242 260

2007/08 520 189 286

0 1,212

11 1,006

Most of the increase was during the period 1994/95 representing an increase of 116%. The percentage decrease in the number of large scale farms over the period (from 1,212 to 1,006 large scale farms) was 17% is more pronounced to other operators (27.4), Private non registered 34.5% and Parastatal organizations 43.2%. On the other hand, private registered operators and government farm operators increased by 2.3% and 6.8% respectively. However, whilst the largest area of large scale farms was owned by private registered operators (559,158 ha), the second and third largest areas were owned by Government (282,490 ha) and Parastatals (167,803) (Chart 2.1).

The results of this survey revealed that parastatals, despite having the smallest number of operators (25), had the largest area of land per operator (6,712 ha per farm). This is followed by Government with 1,822 ha per farm and private registered farms (1,309 ha per farm). From 2002/03 to 2007/08, the rate of increase in the number of large scale farms was highest in Kagera region (218%) followed by Dodoma (80%) and Iringa (54%). However, in some regions, the number of large scale farms decreased with the highest rate of decrease found in Shinyanga (- 90%), Kigoma (- 82.5%), Dar es Salaam (- 60%), Kilimanjaro and Morogoro, (each with - 33.6%), (Chart 2.2). However, in terms of total acreage, out of all the regions, the highest (above 100,000 ha) were recorded in Kagera (178,881 ha) followed by Pwani (169,245 ha), Tanga (125,825 ha) and Morogoro (114,875 ha). The lowest acreage was reported in Shinyanga (18 ha), Kigoma (870 ha) and Rukwa (50,500 ha), (Chart 2.2) Country STAT-Web Based Database for Agriculture Statistical Information NBS has developed Web-based information technology systems for food and agriculture statistics at the national and sub national levels in collaboration with World Food Agriculture Organization(FAO). It provides decision-makers access to statistics across thematic areas such as production, prices, trade and consumption. This supports analysis, informed policy-making and monitoring with the goal of eradicating extreme poverty and hunger. Welcome to the CountrySTAT website CountrySTAT is a statistical framework and applied information system for analysis and policy-making designed in order to organize, integrate and disseminate statistical data and metadata on food and agriculture coming from different sources. CountrySTAT is networking with FAOSTAT and other sister information systems like FENIX.CountrySTAT is a statistical framework and applied information system for analysis and policy-making designed in order to organize, integrate and disseminate statistical data and metadata on food and agriculture coming from different sources Technical |Group in the country are Agriculture and Natural Resources, Prime Minister’s Office-Regional Administration and Local Government, Office of Chief Government Statistician and National Bureau of Statistics. Visit www.countrystat.org/tza NBS other Available Reliable source of Agriculture Statistical Information NBS Website GIS Geographical Information System The NBS uses Geographical Information System (GIS) technologies through which Agriculture statistics are analyzed and disseminated within the spatial context. Moreover, GIS provides an excellent base from which Agriculture National Sample Census activities are planned, implemented and managed. NBS use the facility to provide services to the MDAs, International Organizations as well as Business Community and research institutions in order to generate more revenue. Tanzania National Data Archive (TNADA) Tanzania National Data Archive (TNADA) is a web-based cataloguing system that serves as a portal for researchers to browse, search, compare, apply for access and download relevant census including National Sample Census of Agriculture information through www.nbs.go.tz/nada3. It provides a powerful instrument that facilitates the process of releasing study metadata and micro data to the user community. Information, Clarification contact address The Director General, P.O Box 796, Dar es Salaam. Kivukoni Front., Telephone +255 22 2122722, +255 22 2122723, +255 22 2122724, Fax +255 22 2130852, e-mail: dg@nbs.go.tz and website: www.nbs.go.tz. STATISTICS FOR DEVELOPMENT

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

NEWS

Single Customs Territory almost a reality BY EMMA ONYANGO KAMPALA, UGANDA – East Africans engaged in cross border trade may soon enjoy a smooth trade flow when the Single Customs Territory becomes operational. Under this arrangement the EAC member states will adopt a destination model of clearance of goods where assessment and collection of revenue is to be done at the first point of entry. It allows free circulation of goods in the single market with variations to accommodate goods exported from one partner state to another. Customs administrations at destination states retain control over assessment of taxes. EAC officials say this will crystallize the gains of integration characterized by minimal internal border controls and a more efficient institutional mechanism in clearing goods. According to Stephen Magera, the Acting Commissioner Customs at the Uganda Revenue Authority (URA), the Single Customs Territory will lead to the removal of Customs cheaks and weighbridges. “Between Mombasa and Malaba, there will only be one check point at Mayakani, the others will be removed,” he told participants at a consultative meeting in Kampala recently. Stakeholders say that the Single Customs Territory initiative is a positive one as it will help reduce time and cost of doing business. Jeniffer Mwijukye, the Secretary General of the Uganda Freight Forwarders’ Association (UFFA) says that the business community will benefit from the removal of Non Tariff Barriers (NTBs). “I think it (SCT) is a good initiative. It is a positive step and as the business community it is what we have been longing for because other initiatives have failed. From this initiative, we are looking at two very important elements here as far as logistics is concerned; reduced time and of course reduced costs. We are looking at time because we know that if we pay taxes especially the compliant clients who go through green, the container ultimately will spend less than five days at the port and so that is a positive. Considering that KPA (Kenya Ports Authority) gives us a grace storage period of nine days, then we shall be able to leave within that period without paying any storage and therefore, there’s going to be reduced cost,” she told the East African Business Week on the sidelines of the consultative meeting. Mwijukye also added, “The

The SCT will elminate unnecessary checks at the EAC borders cost normally associated with bonds, if you pay taxes at the border, you will have a reduced fee (insurance charges will not be applied). Also for those bringing in goods for warehousing purpose, there will be one insurance bond cover which is different from the multiple we’ve been having. And of course each bond you execute for the transit cargo has got an implication on the price.” Kassim Omar the National Chairman of the Uganda Clearing Industry and Forwarding Association (UCIFA) also heaps praises on the benefits expected from the Single Customs Territory but adds that process is dependent on active participation and cooperation of all agencies. “The Single Customs Territory is a noble initiative and will help in the reduction of NTBs. However, government needs to put in place the necessary infrastructure, ICT systems need to be put in place to allow the different systems interface so that there is facilitation of trade. The governments have to ensure that there is compatibility of the monetary processes as well. An aligned currency factor should also be considered so that there is harmony,” he told the East African Business Week in a telephone

interview. He added, “So the SCT is in one way forward in the regional integration agenda. I know there will be some job losses here and there but change has to take place for the better.” Sarah Mwesigye, the Assistant Commissioner Field Services at URA told this newspaper that the tax body was looking at commencing a pilot study on August 12, 2013 on goods for warehousing then roll out the process a month later. “So because we are trying to remove verification at the border, we shall start with those very goods that have been causing congestion at the borders. The pilot is only for warehousing purposes and the rest that cannot be warehoused will pay at the Malaba and Busia borders,” she clarified. In a related development, last week, the Commissioners General of Uganda, Rwanda and Kenya Revenue Authorities met in Kampala to draw up a road map for the implementation of the Single Customs Territory. During the deliberations, the technical committee said that Uganda and Rwanda Revenue Authorities will have to establish offices at the port of Mombasa by the end of August while Kenya Ports Authority (KPA) will use its

local offices in Uganda and Rwanda to receive payment for port charges. During the council of ministers meeting that was attended by the Finance Ministers of Rwanda

“

“So because we are trying to remove verification at the border, we shall start with those very goods that have been causing congestion at the borders. The pilot is only for warehousing purposes and the rest that cannot be warehoused will pay at the Malaba and Busia borders,” she clarified.

and Uganda, the Commissioners General were tasked to remodel the report and rectify issues especially on cargo tracking and IT. Kenya’s Commissioner General was however not able to attend the meetings following the fire that gutted the Jommo Kenyatta International Airport’s Arrivals section. According to Sarah Banage, the Assistant Commissioner, Public and Corporate Affairs at URA, the meeting which was the third leg of the Commissioners General Meeting on the Single Customs Territory provided a report that was presented to the council of ministers for action. “Following this meeting, the heads of state will also meet between August 12 – 15 to review the progress of the Single Customs Territory. So by the end of August, URA and RRA will have to have established their offices in Mombasa and work will progress,” she said. Banage also added, “This means that for purposes of customs clearance, we become one region. We clear goods at the Port of entry (Mombasa) and taxes are paid and thereafter there are no road blocks all through Kenya, all through Uganda even if one was going to Rwanda.”

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

TOURISM

Uganda to drum up domestic tourism BY PAUL TENTENA KAMPALA, UGANDAUganda will be hosting some colourful events later this year that are expected to help lift domestic tourism, This includes the 18th anniversary of Toro King Oyo’s coronation. Maria Mutagamba, the tourism minister said recently, the programme will begin with the official launch of Domestic Tourism drive on August 29th 2013. This comes against a backdrop of numerous cancellations by foreign visitors due to the recent reinstatement of 18% VAT on several tourism inputs. Mutagamba said they had received several intentions to sue from tourists through their agents. “We’re working out a win-win situation with our visitors. This VAT on upcountry lodges that was brought up in the National Budget is now a big problem to us. Our visitors have threatened to sue us and others have cancelled their trips due to this VAT,” Mutagamba said. She was addressing a news conference on the preparations for the World Tourism Day slated for September 27th 2013 at the Boma Grounds in Fort

Visa proposal BY EABW REPORTER KIGALI, RWANDA--Rwanda has come up with a proposal for a single visa to limit tourists’ inconveniences and boost overall visitor numbers to the East African Community (EAC). According to the proposal, tourists only need to use the same visa they acquire at the point of entry into EAC region, including Rwanda, Kenya and Uganda, to access all the three countries without paying any extra fees or stopping into other embassies. During a June EAC Summit in Kampala, Rwanda was given the job of finding a compromise position that would be agreeable to all countries countries concerned. “The tourism sector will grow considerably if both the visa and the fee impediments are removed,” Rica Rwigamba, the Head of Conservation and Tourism at Rwanda's Development Board said. According to news reports on the issue, while delegates from Kenya and Uganda supported the single visa proposal, a few obstacles still stand in the way of its implementation. The visa harmonization has proved difficult because of the varying fees charged by the countries. Usually, single entry fees range from $5 to 50 while multiple entry fees vary from $50 to 100 depending on the country. Delegates from Uganda and Kenya insisted that even with a single visa, the fees should not be abolished because they are an important source of national revenue. No firm position has been agreed, but a compromise is expected soon.

Tanzania in pact with Thailand Uganda Wildlife Authority has frequently coordinated campaigns that involve companies and agents that slash entry fees and touring package costs for locals. Portal in western Uganda. The King Oyo Empango Celebrations take place on September 7. There is also a Mt Rwenzori Climbing Challenge the following

day. A tourism exhibition will be organized at Booma Grounds in Fort Portal from September 24th to 27th. She said chimpanzee

tracking and bird watching has been arranged in the Kibale National Park on September 26th before the climax of the events at Boma grounds Fort Portal on September 27th.

Hotel builders target Kenya, Tz LONDON, UK--Currently more than 270 new top hotels are in the Africa pipeline. Starwood Hotels, Hilton and Marriott are leading in the race for the best destinations and locations. This data has been revealed by TOPHOTELPROJECTS last week. The US company, Marriott, increased its presence on the African continent by 55% compared to the previous year. Six new Ritz Carlton Hotels are also planned for Cairo, Tunis and Marrakech. A further 17 new hotel projects by Ritz Carlton are in the pipeline in other parts of Africa. Besides the large hotel investment market in China, several African countries became worthwhile destinations for large hotel chains due to an annual economic growth rate by five percent. Especially the fast growing social middle class in Africa's southern parts are in the focus of the large hotel chain companies. The most attractive hotel markets are Kenya, Tanzania, Nigeria, Angola and Botswana. Especially young and ambitious people are the main target group for comfort, a

little luxury and modern gastronomy. Also the increased export of crude oil and minerals from countries such as Nigeria and Angola ensures the economic growth - and thereof more hotel overnight stays. In Kenya the growing tourism ensures more upswings. Kempinski prepares the opening of the Villa Rose, a luxury hotel with 200 rooms, for this month. Further three hotel projects by Kempinski are currently arising in Agadir (Morocco), Accra (Ghana) and in Cairo (Egypt). Economic analysts expect that the majority of the top 10 fastest growing countries will be in Africa. The economy and population growth in Africa could also top the growth in East Asia. Despite all the horror news about wars and corruption, Africa should not be seen as a black hole, there are still new opportunities for new hotels. Meanwhile, Kenyan President Uhuru Kenyatta, has said his government plans to diversify tourism products and improve other infrastructure requirements to attract high-value tourism such as business conferences and conventions. Kenyatta wants to raise tourist arrivals to five million a year.

DAR ES SALAAM, TANZANIA--Tanzania and Thailand signed a memorandum of understanding (MoU) on wildlife management, according to news reports here. Visiting Thai Prime Minister and Defence Minister, Yingluck Shinawatra (pictured) said the agreement allows Thai officials to study wildlife conservation in Tanzania. Both countries boast large herds of elephants (but different variety). However, Tanzania is battling a surge of poaching mostly brought on by high demand for ivory in East Asia. Thailand has promised to provide some help, but no specifics were mentioned. The Thai prime minister said Thailand plans to review its national parks management process. This will mean allowing wildlife to live very close to the nature and to also create friendliness between humans and animals. Thailand has several zoos. Yingluck's idea comes after she and accompanying senior Thai officials visited Serengeti National Park. They also had an opportunity to study how the park caters for the wildlife that inhabits this famous park. Prime Minister Shinawatra and her entourage were briefed by Tanzania's Ministry of Natural Resources and Tourism officials on wildlife protection policies. Tourism earned Tanzania about 17% of its total annual gross domestic product (GDP). Latest figures showed the country received just over one million tourists in 2012.

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

ENTERTAINMENT What are the

doing? Simon Cowell to give away $10 mansion Simon Cowell is reported to be giving his pregnant lover Lauren Silverman a $10 million home in Beverly Hills. The generous music mogul will gift Lauren one of his mansions in order for the 36-year-old socialite to bring up their child in Los Angeles. Lauren is currently based in The Hamptons, near New York where she lives with her husband Andrew and their sevenyear-old son Adam.

Tusker Project Fame returns BY EABW REPORTER KAMPALA, UGANDA – Yes he is back! Prepare to face the unpredictable judgments of Kenya’s no nonsense judge Ian Mbugwa or Juliana Kanyomozi’s smiles This is because East Africa’s most consistent ultimate music show, Tusker Project Fame that has over the years created music gems is back with a new and exciting Season six. With the previous editions focused on creating reality stars, the sixth season of the ultimate music

talent show promises to inspire youth in the region to attain greatness with a hefty Ush150m and a recording contract up for grabs. The new season also launches a new format where music groups comprising of not more than three people will be able to audition, making the music show more competitive. Dr. Mitch Egwang, one of the co-hosts of the show said last week during the launch in Kampala that the new season will be more interesting as the organizers have decided to go beyond looking at the capi-

Some of the contestants in the past Tusker Project Fame. tals as the only auditioning areasMrs. Grace Nshemeire, the Uganda Breweries Limited Marketing Director added, “Tusker Project Fame has established itself as East

Africa’s ultimate talent reality series. Music has played a key role in bringing societies together and we are proud to be able to help nurture raw talent.”

This Week on DSTV M-Net SERIES SHOWCASE (DStv Channel 113) Switched at Birth (Season 3): It tells the story of two teenage girls who discover they were accidentally switched as new-borns in the hospital. Bay Kennish grew up in a wealthy family with two parents and a brother, while Daphne Vasquez, who lost her hearing at an early age due to a case of meningitis, grew up with a single mother in a working class neighbourhoodTune in on Saturday 17 August at 10:30 CAT.

Azonto singer to grace Annual Green Festival BY WINNIE MANDELA

Movie: Winnie Mandela

KAMPALA, UGANDA- Ghanaian singer Fuze ODG is set to fly into the country for a performance during the second annual Green Festival that is scheduled for September in a event organized by Mase consultants at the Kololo Airstrips. He is expected to dance with kids

and families as they celebrate tree planting at Kololo Airstrip and the president is expected this glorious function just like he did last year in December. The Green Festival is a time efforts of Ugandan superstar kids to restore the Beauty and green that makes the country the pearl of Africa under the “my kid is a superstar”. Every child is expected to walk away with fruit seedlings which they

will take and plant in their various vicinities in a bid to keep Uganda green under the theme “Uganda’s Little Hands go Green” Every other person is expected to wear green outfits as a way of reflecting on conservation of the environment by keeping it green. Fuze is well known for his popular songs and dance strokes around the globe that include Azonto, Antenna.

Konshens shows off necklace gift BY BAZ WAISWA

ennifer Hudson reveals the woman behind the controversial activist in her new film Winnie Mandela. The 31-year-old actress delivers a dramatically charged performance and now fans can see it for themselves in the newly released trailer. The movie, which is due to hit U.S. theatres on September 6, also stars 44year-old Terence Howard and he's certain to send hearts fluttering as Nelson Mandela. Pivotal scenes depict the couple's meeting at a political rally in 1957 to their wedding a year later and the birth of their two daughters. Jennifer goes from playing a relative figure in the background to a crowdattracting activist, and she got to get cosy with Terence too.

Ahead of his concert on August 23 at the Lugogo Cricket Oval, Jamaican Singer, Konshens last week posted on his twitter account a gift he received from Uganda’s singer Dr Jose Chameleone revealing their cordial relationship along the way. Konshens, on his twitter handle

@konshenssojah on Wednesday last week posted “@jchameleone YOW BREDDA U REMEMBER THIS?? Lol maximum respect zeen. UGANDA SUB TEAM,” thanking the Badilisha singer for a necklace he got as a gift. Konshens was in Kampala late last year and the two somehow met giving Chameleone a chance to show his loyalty to the Jamaican who will be back in the coutnry, this time with another of Jamaica’s finest Alaine, to per-

form at a Pepsi sponsored concert on August 23 at the Lugogo Cricket Oval. This year has so far been another rewarding one for Konshens, who continues to spew, hits, one after the other. The catchy Walk and Wine, Sekkle Dung, Jiggle, From Yuh See Me, the popular I'm Coming, and Couple Up are doing well on international charts and in Ugandan airwaves and hungout places.

BBA: Two weeks to go BY WINNIE MANDELA So far, it has been 11 weeks since the Big Brother reality show started and so far it has been filled with different kinds of drama, disappointment, pranks and boredom here and there. There are only two weeks to the end of Big Brother Africa (BBA), The Chase which started 3 months ago with 28 housemates has zeroed down to only 6 housemates now. One of the most amazing things about this show is the fact that it has enabled the bonding of various people from different African countries together. A few housemates are

left in the house now and the house is getting more and more boring as most of the housemates have become nostalgic as is seen in their different statements as they all accrue to missing their homes and loved ones. It is hard to predict who will emerge as winner of the game this time round. But like all competitions, some people are stronger contenders than others. Also, the country one comes from has such a huge say in one’s chances of winning. Being in West Africa is more advantageous because they have more BBA viewers who actually vote. Among some of the

IK Osakioduwa: The host of Big Brother show. remaining housemates include Bimp from Ethiopia, Melvin and Beverly from Nigeria, Elikem from Ghana, Angelo from South Africa and Dillish from Namibia. However as the show

comes to an end, many Africans are bitter at the fact that West Africa has always and still stands the chance of winning this time round too. Since majority who are remaining are from West Africa.

TRAVEL CHANNEL (DStv Channel 179) Insane Coaster Wars:The quest is on to find the world’s most terrifying rides, full of death-defying drops, spine-torqueing twists and impossible inversions. Strap in and get ready for a wild ride as Insane Coaster Wars takes you around the globe to some of the most hair-raising, pulse pounding thrill rides on the planet. Premieres on Monday 12 August at 19:00 CAT.

ANIMAL PLANET (DStv Channel 183) The Lion Man: One World African Safari (Premiere): The series features an experienced, self-taught 'wild cat trainer' who helps to track down poachers and fight devastating bushfires. He also creates a haven for rare, endangered cats such as white Bengal tigers, Barbary lions and white lions at a reserve near Johannesburg. Craig and a passionate band of animal-loving supporters search for missing cheetahs, heal desperately ill tigers, From Wednesday 14 August at 21:00 CAT.

EAST AFRICAN BUSINESS WEEK

AUGUST , 12 - 18, 2013

EAC

UN supports EAC infrastructure model BY DAVID MUWANGA KAMPALA, UGANDA- A senior United Nations official, Carlos Lopes, supports the self-help attitude shown by the East African Community (EAC) to improve regional infrastructure. The Kenyan government for example has this financial year introduced a railway development levy of 1.5% on all imports to pay for a new railway between Mombasa and Kisumu. He said there cannot any economic growth without infrastructure. “A rising East Africa and Africa as a whole will require adequate infrastructure as a key catalyst for the continent’s transformation agenda, industrial development and intraAfrican trade,” he said. Carlos Lopes is the Executive Secretary of the United Nations Economic Commission for Africa (UNECA) based in Addis Ababa. “We have to step back, critically examine, and have a good understanding of the different elements of the bankability of Africa’s mega- infrastructure projects,” he said at a roundtable on financing Africa’s future infrastructure held recently in Tunis, Tunisia. Tunis also hosts the African Development Bank (AfDB) who organized the launch of Africa50 Fund recently. Africa50 Fund is intended to be Africa’s vehicle to help pull together large sums of money and expertise needed to bridge Africa’s infrastructure gap. However Lopes said cross-border infrastructure projects in Africa are not attracting investors. This is mainly because of the need for long term finance, political stability and the

A senior United Nations official, Carlos Lopes. complexity of managing large scale infrastructure projects. Lopes said other reasons hurting infrastructure development include the perceived lack of guarantee and return on investment. He said the necessity for effective coordination among the relevant agencies and organisations in the different countries involved was also another problem. He said although much remains to be done, in the last decades significant progress has been made in many areas. “Africa should weave the various initiatives together into a coherent whole,” he said, and added that in order to ensure ownership within the continent, Africa needs to set its own objectives as well as concrete development goals. These must be anchored on existing

development frameworks, such as industrialisation, towards which the continent has to define its own path. EAC Secretary General Amb. Dr. Richard Sezibera said the main objective of the roundtable was to discuss and find solutions to scaling up financing of infrastructure in line with Africa’s vision for the next 50 years. Amb. Sezibera thanked Dr. Donald Kaberuka, the President of the AfDB, and other major financiers for supporting regional integration projects, The meeting issued a Communique as a show of commitment by the key African institutions to implement the mandate from Heads of State and Government for the development of the Africa Agenda 2063, as a transformation vision for Africa over the next 50 years.

Regional food campaign gets underway BY DAVID MUWANGA KAMPALA, UGANDAThe East African Community (EAC) together with other regional economic communities, has launched the Programme on Food Security for Eastern Africa. After three days of talks in Dar es Salaam, signatories to the agreement are supposed to cooperate in the area of food and nutrition security. Phase one will start with a five-year pilot project involving Burundi, Democratic Republic of Congo, Kenya, Rwanda, Tanzania and Uganda. In a statement from the Common Market for Eastern and Southern Africa (COMESA) Secretariat in Lusaka, it is revealed that the programme will build on linkages between existing related interventions within the framework of the Comprehensive Africa Agriculture Development Programme (CAADP). The statement discloses that the project will specifically focus on the marketing and trade development for agricultural, livestock and fisheries products, research and development for value addition (food processing) and inputs systems (especially fertilizers and seed systems). The Netherlands government has said it is willing to help out. The coun-

tries represented in the new body include member states of the East African Community (EAC), Intergovernmental Authority on Development (IGAD), the Common Market for Eastern and Southern Africa (COMESA), International Conference on the Great Lakes Region (ICGLR), Economic Community of Great Lakes Countries (CEPGL). Apart from the SubRegional Office for Eastern Africa (SRO-EA) of the Economic Commission for Africa (ECA), the meeting was jointly organized and sponsored by ICGLR and the United Nations African Institute for Economic Development and Planning (IDEP).

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Phase one will start with a fiveyear pilot project involving Burundi, Democratic Republic of Congo, Kenya, Rwanda, Tanzania and Uganda.

Envoys visit East African Community headquarters BY BAZ WAISWA KAMPALA, UGANDA-- British High Commissioner to the United Republic of Tanzania, Dianna Melrose and United Nations High Commissioner for Refugees’ Joyce Mends-Cole have expressed general satisfaction with the region’s integration progress. The two diplomats, who presented their letters of credence appointing them as their countries representative to the East African Community, also spoke of their willingness to continue working with the region on all fronts to further improve relationships and economic growth. Melrose, said it was important

for her country to continue to build stronger links with the regional bloc. She said Britain was already enjoying strong relationships with individual EAC Partner States. Mends-Cole, hailed the cordial relations between the UNHCR and the EAC. Amb. Dr. Richard Sezibera, the EAC Secretary General, briefed both on the progress made by the Community. He cited the protocols on the Customs Union, Common Market and the on-going negotiations on establishment of a Monetary Union. He also spoke about the Tripartite initiative, especially the talks to set up a larger Free Trade Area combining three regional

blocs; EAC, COMESA and the South African Development Cooperation. ‘”With the implementation of the Common Market, the geographical space has been widened hence the need to put in place mechanisms to address issues like peace and security, migration, refugees and EAC could benefit a lot from the UNHCR expertise in these fields,” he said. In a related development, Sezibera had a meeting with His lordship Judge Abdulqawi A. Yusuf of the International Court of Justice who paid a courtesy call on him in Arusha. His lordship Judge Abdulqawi Yusuph briefed Secretary General on the plan to idea to start an

Amb. Sezibera(R) talking to the British High Commissioner to the United Republic of Tanzania, Ms. Dianna Melrose. international law institute in the

near future.

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18 , 2013

AGRICULTURE

Farmers urged to adopt biotech BY LEONARD MAGOMBA DAR ES SALAAM, TANZANIA --Small-scale farmers in the East African region have been urged to opt for Genetically Modified Organism (GMO) crops to foster the region’s economic growth.. Mark Lynas, a former antiGMO activist, last week told EABW, the use biotechnology crops would assure better outputs to farmers and promote food security in the region. “The biotech crops are a commercial good and will offer farmers superior harvests and high quality crops. This will enable smallholder farmers compete favorably in the world market,” Lynas said. He applauded local plant scientists, who are in the forefront of research in new biotech crops for their efforts to combat new pests and diseases. These pests and diseaeses threaten to wipe out staple crops. “Only GM technology can save the banana from regional eradication by banana bacterial wilt. There is no other way to reliably protect it. I visited the GMO trial of virus-resistant cassava at Namulongein Uganda and can report that the crop looks extremely healthy and vibrant” he said. According to Lynas. the assumption that organic agriculture can feed the increasing pop-

Mark Lynas

President Jakaya Kikwete dances with farmers during one of his tours in Tanzania. ulation is deluded and undermining to food security. The world will have another 1 billion people in the next 12 years, and a total of 9.5 billion by 2050 and cannot be fed from organic agriculture alone. Lynas said most of the antiGMO case is based on myths and misconceptions. For instance, there is still a widely-held view that GM crops are necessarily sterile and cannot be replanted. He said: “This myth goes back

to the original terminator technology which was researched by Monsanto but never adopted. It is promoted by NGOs who draw funds from donors to stop biotechnology in Africa.” He said these foreign donors have an agenda, to make sure Africa does not need new technologies in agriculture.This foreign agenda is repeated by their local representatives, many of whom have misleading names and promote anti-science

misinformation. Dr. Hassan Mshinda, the Director General of the Tanzania Commission for Science and Technology (COSTECH), said GM crops could be alternatives of seed crops in Africa. He said the so-called first-generation GM crops have improved traits. Crops can also be modified to ward off plant viruses or fungi. Due to more effective pest control, crop yields are often

COMESA unveils cassava cluster BY DAVID MUWANGA KAMPALA, UGANDA--Four members East African Community recently joined COMESA - Common Market for Eastern and Southern Africa in launching a cassava cluster program. The pilot program is being implemented in 10 COMESA cassava growing countries. They include Burundi,Congo DR, Ethiopia, Kenya, Rwanda, Malawi, Madagascar, Uganda, Zambia and Zimbabwe. Katherine Ichoya, the Executive Director at FEMCOM Secretariate - the Federation of National Associations of Women in Business in Eastern and Southern Africa - said the proposed cluster approach addresses both production enhancement and intraregional trade issues in a practical manner. She was speaking at the launch of the program in Lusaka, Zambia

ADDRESS PRODUCTION: Ichoya on July 30, 2013. The program was organized in partnership with Zambia Federation of Associations of Women in Business. The implementation of the program comprises four activities: the profiling of cassava SMEs; capacity building of enterprises; facilitation of intra trade development of suitable financing models for SMEs, and market linkages. Ichoya said the programwill identify producers in a specific sector or country, assist them to pro-

duce competitive products and link them directly to markets. It supports the formation of national and regional clusters in the cassava sub sector as a mechanism of boosting job creation, intra trade and poverty alleviation. She said: “Cassava is a key priority sector with the potential to build productive capacity for global competiveness. Other products are cotton, leather, tourism, metal and pharmaceuticals.” She said the Micro, Small and Medium Enterprises in the cassava value chain are constrained by inadequate skills, use of inappropriate technology, poor networking and limited access to finance. This year the intervention in Zambia is targeting 75 cassava farmers and semi processors spread across the districts of Petawuke, Serenje and Mansa where the cassava clusters have been established. The program is expected to be rolled out to other districts in the coming years.

higher. Lynas said, fifteen years ago, he was an anti-GMO activist, determined to ensure biotechnology was never adopted. He destroyed crops in fields in the United Kingdom, published long creeds against Monsanto. He insisted that GM seeds would enslave farmers and usher in an era of multinational dominance of the food system. However through his work on climate change, writing books and being advisor to a head of state, he discovered the science on the safety of biotechnology is just as clear as the science on the reality of climate change. Agriculture is the foundation of the Tanzanian economy. It accounts for about half of the national income, three quarters of merchandise exports and provides employment opportunities to about 80% of the people.

Farmers to practice climate smart skills BY DAVID MUWANGA KAMPALA, UGANDA-Chikakula Miti, COMESA Climate Change Coordinator has said over 1.2 million farmers in the region will access conservation agriculture technologies. He said the Secretariat has embarked on a Training of Trainers program. One training program was carriedout in Uganda recently. 50 extension and agriculture officers from five districts took part in the training project. Other organizations participated. These included the National Agricultural Research Organization, Makerere University and Rural

Enterprise Development Services Limited. Miti said: “The training is part of on-going efforts to ensure farmers practice Climate Smart Agriculture. Increased unsustainable practices led to soil nutrient mining and reduction in water retention capacity. This resulted in reduction in agricultural production and productivity.” Paul Isabirye, the Coordinator of the Climate Change Unit and the national focal person for the United Nations Framework Convention on Climate Change applauded COMESA. He said the organisation is spear heading effors in Climate Change investments and negotiations and Community Supported Agriculture.

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

TRADE

Kenya in AGOA hitch BY HUMPHREY LILOBA NAIROBI, KENYA--, Kenya continues to benefit from the trade preferences to the US market in the African Growth and Opportunity Act (AGOA), but Americans are raising some concerns about corruption. “Part of our ongoing conversation with Kenya is addressing a host of issues in the business environment,” David Renz, a counselor for Economic Affairs at the US Embassy in Nairobi said recently. This year’s AGOA Forum is set for this week in Addis Ababa, Ethiopia. “We are closely watching the commitments of the Kenyatta administration for addressing corruption,” he said. AGOA is a US trae policy that allows duty/quota free access for African goods entering the American market. However, it is up for renewal before the US Congress. The Obama administration is backing an extension for 15 to 20 years. Since its inception, trade has increased from $2.6 billion to $22.6 billion in 2012. In 2012, Kenya exported $380 million worth of goods under AGOA. In the Export Processing Zones, where 25,000 people are employed, exports contributed $262 million. There are two main reasons an extension is being sought. First, many African products cannot compete in American markets. This remains a reality in Kenya. “AGOA has provided incentives for economic growth in the formal sector, where Kenya is trying

Redtape slows African trading JOHANNESBURG, SOUTH AFRICA - For all the talk about the importance of boosting intra-continental trade within Africa, progress so far amounts to little more than reams of meaningless paperwork. So said an official with the UN Conference on Trade and Development ( UNCTAD) last week. “We have to change the approach that we have adopted so far,” Patrick Osakwe said at the launch of a new UNCTAD report on trade and development in Johannesburg. The report found that while African countries and regions have signed agreements and held conferences on the importance of international trade, the followthrough has been lacking. The report states ‘By most accounts, African countries have not made significant progress in boosting regional trade. Over the period from 2007 to 2011, the average share of intra-African exports in total merchandise exports in Africa was 11% compared with 50% in developing Asia, 21% in Latin America and the Caribbean and 705 in Europe.’ Intra-continental trade has risen in volume from $32 billion in 2000 to $54 billion in 2011, but this is due in large part to rising prices and does not come close to matching the potential of the immense opportunities presented by better trade policies. Africa still suffers from inefficient cross-border exchange practices, not to mention high import and export tariffs that make the cost of international trade within sub-Saharan Africa up to twice as expensive as it is in OECD countries. Endemic logistical snafus don't help matters either. A recent World Bank report found that ‘in sub-Saharan Over the period Africa it takes, on average, from 2007 to 2011, 38 days to import and 32 the average share days to export goods across of intra-African borders, whereas the numexports in total ber of days required is sigmerchandise nificantly lower in other exports in Africa regions.’ was 11 percent Even if such exchanges compared with 50 are streamlined, there still percent in developremains the problem of pro- ing Asia ductivity; generally, African countries are not performing to full capacity when it comes to lucrative sectors like agriculture and manufacturing. With better productivity and open borders, both supply and demand will get a much-needed boost. The UNCTAD research suggests that private enterprise will be key to spurring cross-border trade and development. But it is often stifled by strict business regulations or competition from state-run companies. ‘The limited role of the private sector in regional integration initiatives and efforts has also contributed to the weak trade performance of the continent. Although trade agreements are signed by governments, it is the private sector that understands the constraints facing enterprises and is in a position to take advantage of the opportunities created by regional trade initiatives,’ the report states. Agencies

“

Kenya’s Export Processing Zones have benefited from AGOA and managed to earn the country $262 million, but the US government is concerned about public graft. to create jobs. “But, we still have to have a product that meets market needs in the US and is manufactured at a competitive price,” Renz said. Some roadblocks for Kenyan exporters include transportation and the price of electricity. Kenya is also looking at Africa’s fast growing economies and Obama’s focus on the region. “It’s no secret that the President (Obama) views Africa as a key place,” John Anderson, an Assistant Secretary in the US department of Commerce said. “We want to take advantage of the

opportunities during the promising future the continent is poised to have.” AGOA is currently eligible to 39 African countries, under strict compliance rules. Each year, countries are assessed on their governance and human rights records. Numerous African countries, as a result, have been barred from trading. This year, Kenya's widely reported corruption will be under the microscope. “If there is corruption that is rampant, we will go in and talk to them about it,” Florizelle Liser, the assistant US Trade Representative for Africa said.. The Bill for an extension is currently being debated in Congress.

Indian imports worry EAC booze makers BY ANDREW ZABLON MWANZA, TANZANIA--Lower production costs in India, have given their alcohol manufacturers an incentive to export more drinks to East Africa. This is one of the worries for regional producers despite the fact that the industry is doing relatively well. Other problems are the inconsistent supply of raw materials (mostly molasses), unstable raw material pricing and unreliable raw material quality. The industry also is characterized with slow research and development in the field of alternative raw materials supply and poor infrastructure, includ-

ing roads and rail links. Peter Brown, the Chief Executive Officer of Spectre International Limited based in the lakeshore Kisumu, told East African Business Week, other hitches to the industry include disparate duties payable on the movement of finished goods between East African Community and COMESA. He said there is insufficient protection against Indian alcohol imports. Yet Indian ethanol distilleries benefit from lower costs for labour and better economies of scale that makes them very competitive. Brown was also not happy with Kenya’s revenue authority legislations regarding duties on certain alcohol finished

products Brown however said there were upsides in the industry. EAC member states are allowing PET bottling which has reduced the final price to market for the middleto-lower ends. He said revenue authorities are also expressing interest in amending legislations so that the movement of finished goods between member states becomes more competitive. He added that other positive signs are new manufacturing entrants are providing healthy competition which will result in greater efficiencies and lower prices to market. He said they should form an Ethanol Producers Association to lobby relevant regional authorities about their buisness concerns.

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

NEWS

Bujagali marks one year of success BY EMMA ONYANGO KAMPALA, UGANDA – ‘If you do not get your priorities right and start by investing in energy, then you might as well forget about economic growth.’ These were the words of Lutaf Kassam, the Group Managing Director of Industrial Promotions Services (IPS) last week at the Bujagali Dam. According to him, investing in the Bujagali Energy Project was a worthwhile venture for the Aga Khan’s Industrial promotions Services as it has helped lower manufacturing costs in Uganda and also helped increase Uganda’s revenue collections. While releasing Uganda’s annual revenue performance report recently, Ms. Allen Kagina, the Uganda Revenue Authority (URA) Commissioner General attributed most of the surplus VAT collections to the increased power capacity in the country as well as payment of Ush7.5b arrears in the electricity sub sector. Kassam said that commissioning of Bujagali and other dams helped government reduce dependency on the expensive thermal generators as well save the country over $9.7m in subsidies that government was paying for the

The Bujagali Hydro Dam has increased Uganda’s electricity generation capacity by over 44% and has performed at an average of 98%. Photo by Emma Onyango emergency power. He said, “Before Bujagali came on board, electricity outages were estimated to cost Uganda about 1.5% of GDP annually. With Bujagali providing close to 50% of Uganda’s energy requirement we can then rightly say that we are contributing up to 1.5% of GDP.”

Kassam also added that Uganda is currently experiencing surplus power and was even exporting it to Kenya. “Uganda is currently the only country in the regions as of now experiencing a surplus of power. This is not going to last for long and government is right to look at other alternatives.

“If there are currently any outages, then they are as a result of distribution and transmission and not as a result of deficiencies in generation,” he stated. Kassam was speaking to the press during a tour of the facility to review the progress of the Bujagali dam as it marked its first

anniversary. Dr. Kevin Kariuki, the Head of Infrastructure at the IPS said that Bujagali Dam had delivered on all its promises and had surpassed the contractual requirement of an availability of 95% and had even performed at 100% in some months. “We have been providing 250MW everyday for at least four hours. Every query raised on Bujagali has been put to rest and we have actually become a model for other projects,” he said in reference to the Ruzizi hydro electric project. He said that negotiations on the project that involves Rwanda, Burundi and DR Congo were still ongoing. “They have actually adopted the Bujagali model and we are one negotiation away from becoming the preferred bidder. But then there are three governments involved and so the process is not fast enough,” Kariuki added. The Bujagali Hydropower project was established through a public private partnership between Government of Uganda, the Aga Khan Fund for Economic Development and Sithe Global. Bujagali Energy Limited was created to operate the power plant for 30 years after which it will be transferred to government for $1.

SMEs yet to embrace equity financing model BY EMMA ONYANGO KAMPALA, UGANDA – Small and Medium sized Enterprises (SMEs) are said to be catalysts for economic growth worldwide as they provide livelihoods for 60% of Africans and account for 90% of all industrial firms. However, they often face challenges associated with expansion of their business enterprises as a result of difficulties in accessing credit. It has also emerged that most SMEs prefer debt to equity and despite concerted efforts by different financial advisors, this segment of entrepreneurs still have reservations about equity. Simon Kayemba, an entrepreneur in Bweyogerere, a suburb on the outskirts of the capital Kampala when asked by the East African Business Week just brushed aside the idea of equity financing saying he would rather struggle than let anyone else in on his business. “Why would I allow another person to come and tell me how I should run my business? Do they even know what I went through to get to this level,” he said while sipping at his polythene bag laden with busheera, a local drink. Little wonder therefore that

even at the Uganda Securities Exchange that launched the Growth Enterprise Market Segment for SMEs to raise capital at bourse is yet to receive a company listing. Acumen Fund, a social venture that invests in businesses that provide critical goods and services to persons at the bottom of the social pyramid is the latest company to come up. The company that launched operations in East Africa in 2001 has only been able to invest in 23 companies, with only one located in Uganda. Among the investments are a cotton ginnery; Gulu Agricultural Development Cooperative in northern Uganda, Western Seed Company in Kenya, a coffee processor in Rwanda, a poultry farm in Ethiopia, among others. The fund also plans to invest $2m in a health facility which sources say is Nsambya Hospital in Kampala. According to Duncan Onyango, the Director for East Africa at Acumen Fund, the impact of a company on a community forms the basis of their investment. “The way we invest is that we identify businesses in critical sectors; agriculture, health, energy water and sanitation,

SMEs are reluctant to accept equity financing mainly due to lack of correct information. education, affordable housing; those sectors that affect those at the bottom of the pyramid. We can invest in debt, we can also take equity in these businessesand invest between $250,000 up to a maximum of $2.5m,” he said. He however concedes that it is very difficult to find the right business to invest in because many SMEs are largely informal and are in most cases not regis-

tered. “In the five years we’ve been operational in East Africa, we have probably done about 700 due diligences which means that we have looked at over 1,000 companies. Of the 700 we’ve looked at, we have invested in only 23 companies. “The problem is that businessmen and women in this region do not understand equity and therefore prefer to have a debt

structure for financing.” Onyango adds, “Sometimes debt is not very good for a company; sometimes a company requires equity because it is much more long-term in terms of a return expectation. As for debt the moment you get it, you immediately have to think of paying back. “So we are having to spend a lot more time educating the businessmen and women to appreciate the type of investment and to understand that the business need might change and might be different.” Onyango was speaking to the press on the sidelines a stakeholder engagement meeting at the Kampala Sheraton Hotel recently. He also reiterated that a number of business owners do not necessarily have a firm understanding of their business and at the same time the execution of their plans is at risk. Onyango concluded, “The reason we do this is because we feel that these companies are at that stage in their development that requires a significant amount of investment but at the same time a significant amount of hand holding to foster investment so as to enable them to scale but also enable them move towards profitability.”

EAST AFRICAN BUSINESS WEEK - AUGUST 12 - 18, 2013

BUSINESS INFO Financial Markets

Nairobi - N.S.E Security

Agricultural Eaagads Ltd. Kakuzi Kapchorua Tea Co. Ltd. Limuru Tea Co. Ltd. Rea Vipingo Plantations Ltd. Sasini Ltd. Williamson Tea Kenya Ltd. Automobiles and Accessories Car & General (K) Ltd. CMC Holdings Ltd. Marshals (E.A.) Ltd. Sameer Africa Ltd. Banking Barclays Bank Ltd. C.F.C Stanbic Holdings Ltd. Diamond Trust Bank Kenya Ltd. Equity Bank Ltd. Housing Finance Company Ltd. I&M Holdings Ltd. Kenya Commercial Bank Ltd. National Bank of Kenya Ltd. NIC Bank Ltd. Standard Chartered Bank Ltd. The Cooperative Bank of Kenya Ltd. Commercial and Services Express Ltd. Hutchings Biemer Ltd. Kenya Airways Ltd. Longhorn Kenya Ltd.. Nation Media Group Scangroup Ltd Standard Group Ltd. TPS Eastern Africa (Serena) Ltd. Uchumi Supermarket Ltd. Construction and Allied Athi River Mining Bamburi Cement Ltd. Crown Berger Ltd. E.A. Cables Ltd. E.A. Portland Cement Ltd. Energy and Petroleum KenGen Ltd. KenolKobil Ltd. Kenya Power & Lighting Ltd. Total Kenya Ltd. Growth Enterprise Market Segment Home Afrika Ltd. Insurance British American Investments C.F.C Insurance Holdings Ltd. CIC Insurance Group Ltd. Jubilee Holdings Ltd. Kenya Re-Insurance Corporation Ltd. Pan Africa Insurance Holdings Ltd. Investment Centum Investment Company Ltd. Olympia Capital Holdings Ltd. Trans-Century Ltd. Manufacturing and Allied A. Baumann & Co. Ltd B.O.C. Kenya Ltd. British American Tobacco Kenya Ltd. Carbacid Investment Ltd. East African Breweries Ltd. Eveready East Africa Ltd. Kenya Orchards Ltd. Mumias Sugar Co. Ltd. Unga Group Ltd. Preference Shares Kenya Power & Lighting Ltd. 4% Kenya Power & Lighting Ltd. 7% Telecommunication and Technology AccessKenya Group Ltd. Safaricom Limited

Price as at Aug 8, 2013 (KShs)

Previous Price

% Change

Ord 1.25 Ord 5.00 Ord 5.00 Ord 20.00 Ord 5.00 Ord 1.00 Ord 5.00

26.50 83.00 135.00 490.00 27.75 13.80 236.00

26.50 85.00 125.00 490.00 27.00 14.25 237.00

0.00 -2.35 +8.00 0.00 +2.78 -3.16 -0.42

Ord 5.00 Ord 0.50 Ord 5.00 Ord 5.00

22.00 13.50 12.00 5.25

22.50 13.50 12.00 5.15

-2.22 0.00 0.00 +1.94

Ord 2.00 Ord 5.00 Ord 4.00 Ord 5.00 Ord 5.00 Ord 1.00 Ord 1.00 Ord 5.00 Ord 5.00 Ord 5.00 Ord 1.00

17.20 69.00 169.00 33.75 25.75 92.00 44.00 21.25 56.50 303.00 16.40

17.20 63.00 168.00 33.50 25.75 93.00 43.75 22.00 55.50 303.00 16.30

0.00 +9.52 +0.60 +0.75 0.00 -1.08 +0.57 -3.41 +1.80 0.00 +0.61

Ord 5.00 Ord 5.00 Ord 5.00 Ord 1.00 Ord 2.50 Ord 1.00 Ord 5.00 Ord 1.00 Ord 5.00

3.95 20.25 9.45 14.50 311.00 62.50 27.50 48.00 19.80

3.95 20.25 9.50 14.60 311.00 63.50 27.00 45.50 19.75

0.00 0.00 -0.53 -0.68 0.00 -1.57 +1.85 +5.49 +0.25

Ord 5.00 Ord 5.00 Ord 5.00 Ord 0.50 Ord 5.00

69.50 218.00 60.00 16.45 53.50

69.00 218.00 57.50 16.25 55.00

+0.72 0.00 +4.35 +1.23 -2.73

Ord 2.50 Ord 0.50 Ord 2.50 Ord 5.00

16.15 8.70 13.95 16.80

16.10 8.70 13.95 16.65

+0.31 0.00 0.00 +0.90

Ord 1.00

16.05

17.55

-8.55

Ord 0.10 Ord 1.00 Ord 1.00 Ord 5.00 Ord 2.50 Ord 5.00

7.80 12.00 4.80 275.00 17.05 55.00

7.85 12.00 4.65 276.00 17.00 56.00

-0.64 0.00 +3.23 -0.36 +0.29 -1.79

Ord 0.50 Ord 5.00 Ord 0.50

24.50 4.20 30.00

23.00 4.30 32.50

+6.52 -2.33 -7.69

Ord 5.00 Ord 5.00 Ord 10.00 Ord 5.00 Ord 2.00 Ord 1.00 Ord 5.00 Ord 2.00 Ord 5.00

11.10 114.00 570.00 130.00 338.00 2.95 3.00 4.10 16.00

11.10 115.00 571.00 130.00 339.00 3.05 3.00 4.20 16.00

0.00 -0.87 -0.18 0.00 -0.29 -3.28 0.00 -2.38 0.00

Pref 20.00 Pref 20.00

8.00 5.50

0.00 0.00

Ord 1.00 Ord 0.05

9.55 7.70

9.55 7.40

0.00 +4.05

Opening Price Closing Price (Tsh) (Tsh) Aug 7, 2013 TOL 0 275 Aug 7, 2013 TBL 3380 3380 Aug 7, 2013 TATEPA 0 600 Aug 7, 2013 TCC 0 6820 Aug 7, 2013 SIMBA 0 2400 Aug 7, 2013 SWISSPORT 2240 2240 Aug 7, 2013 TWIGA 2700 2700 Aug 7, 2013 DCB 500 500 Aug 7, 2013 NMB 1760 1760 Aug 7, 2013 KA 0 990 Aug 7, 2013 EABL 0 2000 Aug 7, 2013 JUBILEE 0 5860 Aug 7, 2013 KCB 0 440 Aug 7, 2013 CRDB 320 320 Aug 7, 2013 NMG 0 3100 Aug 7, 2013 ABG 0 13160 Aug 7, 2013 PAL 0 475 Exchange Rate: (BOT mean rate) Aug 9, 2013 (1 US$ = TShs 1,612.74 Date

Company

High (Tsh)

Low (Tsh)

0 3380 0 0 0 2240 2700 500 1760 0 0 0 0 320 0 0 0

0 3360 0 0 0 2240 2700 500 1760 0 0 0 0 320 0 0 0

Dar es Salaam - D.S.E Turnover Number (Tsh) of Deals 0 0 17094800 19 0 0 0 0 0 0 896000 1 13702500 13 300000 1 2303840 4 0 0 0 0 0 0 0 0 174944000 35 0 0 0 0 0 0

Outstanding Share bids 180100 48600 0 6800 0 1800 5000 6400 517700 0 0 0 0 85300 0 0 0

Forex (Central Bank Rates) Nairobi (Ksh) Mean 87.0611 132.4940 114.3514 8.7787 29.6027 18.5432 7.3806 17.5347 23.7024 0.8702 1.4501 23.2132 14.1810 Dar es Salaam (Tsh) Mean 1,612.7564 2,475.6629 2,143.5955 16.4366 26.5365 163.3004 439.0782 430.0282 18.5054 0.6224 1.5422 Kampala (Ush) Mean 2,586.1400 3,923.6950 25.9300 3,339.6050 29.7450 137.7550 3.9845 1.6630 1.5930 12.8970 262.5650 Kigali (Rwf) Mean 645.9198 105.2107 846.0903 983.0253 6.4534 0.4214 34.7239 7.5497 0.4074 0.2533 174.4897 10.7935 170.8839 64.5700 Bujumbura (FBu) Mean 15.3641 2,341.5863 1,537.1800 2,019.7777 17.6485 155.2119 0.9489 0.5956 2.3722

US Dollar Pound Sterling Euro S.A Rand Ksh/Ushs Ksh/Tshs Ksh/RWF Ksh/BIF UAE Dirham J Yen Indian Rupee Saudi Riyal Chinese Yuan

US Dollar Pound Sterling Euro J Yen Indian Rupees SA Rand UAE Dirham Saudi Riyal Kenya Shilling Uganda Shilling Burundi Franc

US Dollar Pound Sterling J Yen Euro Kenya Shillings Ethiopian Birr Rwanda Francs Burundi Francs Tanzania Shillings Sudanese Dinars South African Rand

US Dollar Chinese Yuan Euro Pound Sterling J Yen Burundi Franc Ethiopian Birr Kenya Shilling Tanzania Shilling Uganda Shilling UAE Dirham Indian Rupee Saudi Riyal South African Rand

J Yen Pound Sterling US Dollar Euro Kenya Shilling SA Rand Tanzania Shilling Uganda Shilling Rwanda Franc

Outstanding Shares offered 0 0 0 0 24800 0 500 74400 0 0 0 0 0 570100 0 0 124800

Number of Market Capital Foreign shares traded (Tsh) Billions holding 0 11.68 5.84% 5060 996.86 67.63 0 10.71 47.60 0 682.00 75.00 0 152.81 62.50 400 80.64 72.00 5075 485.79 69.25 600 33.91 0.07% 1309 880.00 38.57 0 1481.50 N/A 0 1317.96 N/A 0 210.96 N/A 0 1298.07 N/A 546700 696.49 15.08 0 487.07 N/A 0 5396.73 N/A 0 92.08 34.13 Source - Dar es Salaam Stock Exchange

Kampala - U.S.E Date

Company

Aug 6, 2013 Aug 6, 2013 Aug 6, 2013 Aug 6, 2013 Aug 6, 2013 Aug 6, 2013 Aug 6, 2013 Aug 6, 2013 Aug 6, 2013 Aug 6, 2013 Aug 6, 2013 Aug 6, 2013 Aug 6, 2013 Aug 6, 2013 Aug 6, 2013 Aug 6, 2013 Aug 6, 2013

All Share Index (ALSI) British American Tobacco (U) Ltd. (BATU) Bank of Baroda Uganda Ltd. (BOBU) Centum Investment Company Ltd (CENT) Development Finance Company of Uganda Ltd. (DFCU) East African Breweries Ltd. (EABL) Equity Bank Ltd. (EBL) Jubilee Holdings Ltd. (JHL) Kenya Airways Ltd. (KA) Kenya Commercial Bank (KCB) National Insurance Corporation. (NIC) Nation Media Group (NMG) New Vision Ltd. (NVL) Stanbic Bank Uganda (SBU) Uganda Clays Ltd. (UCL) Uganda Energy Distribution Network (UMEME) Uganda Securities Exchange Local Company Index (USE LCI) TOTALS

No. of Deals

Shares Traded

0 0 0 0 1 0 0 0 0 0 0 0 1 23 2 1 0 24

0 0 0 0 5,668 0 0 0 0 0 0 0 2,000 1,387,500 699,172 1,435 0 4,680,850

Price (Ush) High Low 0 0 0 0 0 0 0 0 1,030 1,030 0 0 0 0 0 0 0 0 0 0 0 0 0 0 600 600 25 25 30 30 360 360 0 0

Turnover (Ushs) Closing 1,546 2,540 120 680 1,030 9,899 975 8,244 278 1,263 35 9,190 600 25 30 360 230

0 0 0 0 5,838,040 0 0 0 0 0 0 0 1,200,000 34,687,500 20,975,160 516,600 0 1,685,106,000

Kigali Last 12 Months (Rwf) High Low High August 7, 2013 BOK 200 118 188 August 7, 2013 BLR 900 315 860 August 7, 2013 KCB 175 135 August 7, 2013 NMG 1,200 1,200 Exchange Rate: August 7, 2013 (1 US$ = Rwf 648.28 - 1 Kshs = Rwf 7.53) Date

Security

Todays prices (Rwf) Low Closing 188 188 860 860 175 1,200

Previous 185 860 175 1,200

Total Shares Traded Today Previous 28,000 4,600 6,400 9,700 1,500 1,000

Equity Turnover (Rwf) Today Previous 5,264,000 851,000 5,507,000 8,436,000 262,500 1,200,000

Total Deals Change in Rwf Today Previous Today 1 1 +3 3 2 1 5 Source - Rwanda Stock Exchange

Buying 87.2556 132.7844 114.6222 8.8073 29.7837 18.6995 7.4890 17.8036 23.7566 0.8720 1.4532 23.2663 14.2133

Selling 87.1583 132.6390 114.4870 8.7930 29.6932 18.6214 7.4348 17.6691 23.7295 0.8711 1.4516 23.2397 14.1971

Buying 1,604.7327 2,463.1042 2,132.8502 16.3581 26.4067 162.5293 436.8997 427.8945 18.4452 0.6167 1.5364

Selling 1,620.7800 2,488.2215 2,154.3408 16.5150 26.6663 164.0715 441.2567 432.1619 18.5656 0.6280 1.5480

Buying 2,581.1800 3,916.1700 25.8800 3,333.3300 29.6900 137.4900 3.9770 1.6600 1.5900 12.8720 262.0600

Selling 2,591.1000 3,931.2200 25.9800 3,345.8800 29.8000 138.0200 3.9920 1.6660 1.5960 12.9220 263.0700

Buying 639.7836 104.2112 838.0525 973.6866 6.3921 0.4174 34.3940 7.4780 0.4035 0.2509 172.8321 10.6909 169.2605 63.9566

Selling 652.0560 106.2102 854.1282 992.3641 6.5147 0.4254 35.0538 7.6215 0.4113 0.2557 176.1474 10.8960 172.5073 65.1834

Buying 15.2412 2,322.8536 1,524.8826 2,003.6194 17.5073 153.9702 0.9413 0.5908 2.3532

Selling 15.4870 2,360.3190 1,549.4774 2,035.9359 17.7896 156.4536 0.9565 0.6003 2.3912

Food - Market prices (Wholesale) US$ Uganda

Bdi

Nbi

Msa

Kla

Lira

Dar

Kigali

Buja

Bananas Apple (Ripe) - Bunch (14kg)

7.17

8.36

8.11

18.93

Bananas (Cooking)

- Bunch (22kg)

7.76

5.97

3.48

7.73

Beans (Rosecoco)

- 90kg

76.45

90.39

62.58

92.13

39.77

57.86

Beans (Yellow)

- 90kg

97.34 79.96

Beef

- 1 kg

1.74

Cassava (Flour)

- 90kg

34.76 34.76

Cassava (Fresh)

- 99kg

11.47 11.47

Chicken (Local)

- live bird

9.66

7.73

Chicken (Exotic)

- live bird

3.48

3.86

Cow Peas

- 90kg

Eggs (Local)

- Tray (30 eggs)

3.86

4.64

Eggs (Exotic)

- Tray (30 eggs) 3.82

2.90

3.48

Fish (Nile Perch)

- 1 kg

3.09

2.90

Fish (Tilapia)

- 1 kg

1.04

5.79

Green Peas

- 51kg

Ground Nuts

- 110kg

168.18 157.67 148.71 118.97

Irish Potatoes (White) - 110kg

40.61 27.47 42.49 63.73

29.56

33.14

36.17

Commodity

Package

Maize Grain

- 90kg

Kenya

3.09

111.25 156.44

34.76

24.34

0.31

0.46

Milk (Unprocessed)

- 1 litre

0.54

Millet Grain

- 90kg

52.56 96.75 62.58 45.19

Onions (Red)

- 13kg

8.36

10.15

Pineapples (Dozen)

- 13kg

9.27

Rice

- 90kg

94.60

Sorghum Grain Soy Beans Sweet potatoes

- 98kg

Tomatoes

83.77

70.38

11.59

86.91 79.96

89.36

86.32

77.16

- 90kg

40.61 47.78 52.15 14.95

69.80

33.14

45.80

- 90kg

58.05 38.70 62.58 36.50

33.44 38.22 18.93 18.93

- 64kg 69.28 57.33 Sources: farmgainafrica.org, ratin.net, infotradeuganda.com

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

TENDERS, JOBS & CONSULTANCIES TENDERS

TENDERS

The National Examination Council of Tanzania invites sealed bids from eligible suppliers for the following: Supply of MF printing papers wood free Supply of security envelopes Supply of Diaries Supply of calendars Supply of motor vehicles.

The Ministry of Defence invites qualified bidders to submit bids for the following tenders: a. Supply of SCSC library books. b. Supply of SCSC sanitation materials. c. Supply of SCSC air conditioners. d. Supply of SCSC gymnasium equipment. e. Printing and supply of banners, certificates, badges, photos, name tags holders and gifts. f. Engraving of MOD items. The submission of bids in sealed envelopes must be addressed to the Ministry of Defence’s Procurement office before 09h30 am local time on 26/08/2013.

Contact: Executive Secretary, National Examinations Council of Tanzania, P.O. Box 2624, Dar es Salaam. Tel:+255 22 2700493-6, Fax: +255 22 2775966, email: esnecta@necta.go.tz Ministry of Health and Social Welfare intends to pre -qualify applications for Renovation works Supply of Medical Equipment Provide training for maternity skill, radiology and hospital hygiene provide training for maintenance of medical equipment supplied. Contact: Ministry of Health and Social Welfare, PMU Offices, 2nd Floor, Room No. 210. Deadline: Aug 19, 2013. The Rural Electrification Agency invites sealed bids from eligible and qualified bidders for procuring, installing, commisioning, providing maintenance services and spare parts and conducting training of end users and off takers for public facility solar photovoltatic systems and street lights in 8 districts. Deadline: Sept 28, 2013. National Housing Corporation invites sealed bids from eligible contractors registered in Class one only of building category for the design and construction of Ngano Housing Estate on plot No. 79-82, Ngano Street, Kinondoni, Dar es Salaam. Contact: The Secretary of the Tender Board, National Housing Corporation, Head Office, Plot No. 322, Block T, New Building Room No. M08, Mandela Road, P. O. Box 2977, Temeke, Dar es Salaam. Deadluine: Aug 19, 2013. Tanzania Telecommunications Company Limited invites sealed tenders from eligible tenders for supply of optic fibre cables and optic fibre accessories. Contact: The Chief Executive Officer, Tanznaia Telecommunications Company Limited, Extelecoms House, Samora Avenue, P. O. Box 9070, Dar es Salaam, Tanznaia, Tel: No. +255 22 2142881, Fax: +255 22 2113232. Deadline: Aug 29, 2013. Tanzania Telecommunications Company Limited invites sealed tenders from eligible tenders for procurement of outdoor MSANs and associated DC power. Contact: The Chief Executive Officer, Tanznaia Telecommunications Company Limited, Extelecoms House, Samora Avenue, P. O. Box 9070, Dar es Salaam, Tanznaia, Tel: No. +255 22 2142881, Fax: +255 22 2113232. Deadline: Aug 22, 2013. National Housing Corporation invites sealed bids from eligible contractors registered in Class one only of building category for the design and construction of mixed use bloacks on plot No. 300, New Bagamoyo Road, Kinondoni, Dar es Salaam, Tanzania. Contact: The Secretary of the Tender Board, National Housing Corporation, Head Office, Plot No. 322, Block T, New Building Room No. M08, Mandela Road, P. O. Box 2977, Temeke, Dar es Salaam. Deadluine: Aug 19, 2013.

CONSULTANCIES The Ministry of Health and Socail Welfare requests expression of interest in providing consultancy services in the development of a hospital management information system. Contact: Secretary, Ministerial Tender Board, Ministry of Health and Socail Welfare, P. O. Box 9083, Samora Avenua/Shaban Robert Street Junction, PLot No. 36/37, Ilala, Dar es Salaam. Deadline: Aug 19, 2013. The Ministry of Health and Socail Welfare requests expression of interest in providing consultancy services undertaking feasibility study and requirement analysis for the development and implementation of the health sector resource data warehouse. Contact: Secretary, Ministerial Tender Board, Ministry of Health and Socail Welfare, P. O. Box 9083, Samora Avenua/Shaban Robert Street Junction, PLot No. 36/37, Ilala, Dar es Salaam. Deadline: Aug 19, 2013. National Housing Corporation requests for expression of interest to provide legal services to NHC across the country on call basis. Contact: The Secretary of the Tender Board, National Housing Corporation, Head Office, Plot No. 322, Block T, New Building Room No. M08, Mandela Road, P. O. Box 2977, Temeke, Dar es Salaam. Deadluine: Aug 19, 2013. Source: East African Business Week

NATIONAL AGRICULTURAL EXPORT DEVELOPMENT BOARD (NAEB) invites all interested bidders to tender for the supply of 4 500 litres of imidacloprid insecticide for control of antestia bug. 4. Well printed bids, properly bound and presented in four copies one of which is the original and the three copies and must reach the Procurement office at NAEB Head Office, Gikondo, P.O.Box. 104 Kigali. Tel. (250) 252 57 56 00, E-mail:info@naeb.gov.rw not later than 16/08/2013 at 09h00’, local time or 7.00 GMT. RURA now invites bids from eligible bidders to provide the following services: SUPPLY AND INSTALLATION OF AN INTEGRATED RISK MANAGEMENT AND AUDIT SYSTEM FOR RURA. 7. Enquiries regarding this tender may be addressed to the Procurement Office of RURA, P.O. Box 7289 Kigali, Tel. (+250) 252 584562, Fax. (+250) 252 584563.A tender security of 2% of the total quoted price, provided by a recognized bank or insurance institution should be submitted in the bid. Well printed bids, properly bound and presented in three copies and one original must reach the Procurement Office of RURA at the address mentioned above not later than 18/08/2013 at 10:00 a.m., local hour.

CONSULTANCIES Rwanda Development Board invites proposals from both national and international competent consultancy firms to develop a pricing structure for healthcare delivery in private medical structures in RWANDA. Well printed proposals, properly bound presented in four copies one of which is the original must be submitted in sealed envelopes not later than 12/09/2013 at 3:00 pm local time to the address below:RWANDA DEVELOPMENT BOARD PROCUREMENT OFFICE,FOURTH FLOOR P.O. Box: 6239 Email: procurement@rdb.rw GISHUSHU NYARUTARAM ROAD ,KIGALI/RWANDA Rwanda Development Board (RDB) hereby invites proposals from all competent consultancy firms to provide digital communications and content development services. The consultancy services will be to develop an RDB need based content development strategy and plan, effective and innovative core messages, tools and materials and gather content to develop a quarterly newsletter and implement and monitor RDB social and online media activities, as indicated in details in the terms of references included in the request for proposal. Well printed proposals, properly bound presented in four copies one of which is the original must be submitted in sealed envelopes not later than 29/08/2013 at 3:00 pm local time to the address below: RWANDA DEVELOPMENT BOARD PROCUREMENT OFFICE FOURTH FLOOR, P.O. Box: 6239 Email: procurement@rdb.rw GISHUSHU NYARUTARAM ROAD KIGALI/RWANDA The proposals will remain valid for 120 days starting from the deadline of their submission. Late proposals will be rejected. Electronic bidding is not permissible.The opening of proposals will take place on the same day at 3:30 pm local time (1:30 GMT) at the Rwanda Development Board conference room, 4th floor, Procurement. Rwanda Development Board invites potential consultancy firms specialized in quantity surveying for verification of final account and remeasurement of the works done on Grand Pension Plaza located at Nyarugenge District. The duly completed and signed Expressions of Interest documents in one original plus one copy should be submitted in plain sealed envelopes clearly marked “Expression of Interest for the CONSULTANCY SERVICES TO VERIFY THE FINAL ACCOUNT AND RE-MEASUREMENT OF THE WORKS DONE ON GRAND PENSION PLAZA BUILDING” and be addressed to the address below, not later than 13th August, 2013 at 3:00 p.m. local time.THE OFFICE OF RWANDA DEVELOPMENT BOARD,PROCUREMENT DIVISION4TH FLOOR, RDB BUILDINGPO BOX 6239, Kigali, Email: procurement@rdb.rw Source: East African Business Week

JOBS The United Nations Economic Commission for Africa is looking for talented and enthusiastic individuals to realise UNECA’s transformative vision and to strengthen its specialization in the region. Positions available in the following areas. Statistics Economic statistics and national accounts Demographic and social statistic Geo-information and sectoral statistic Data collection and analysis Strategic Planning Micro economic policy Development planning Industrial Policy Governance and public sector management Public Information and Knowledge Management External Communications Media Relations Audio Visual Social Media Climate Policy, Land and Mineral Development Natural resource contract negotiations Climate, climate adaption, climate change governance Agricultural Economics, forestry, land policy Mineral development policy Social Development Policy Population and youth Gender and Development Economics of urbanization Employment and labour market For full details of these positions go to:new.uneca.org/About ECA/Opportunities.aspx

CONSULTANCIES The Rwanda Social Security Board invites qualified bidders to submit bids for hiring a vendor to modernize RSSB IT System as indicated in detail in the statement of Requirements.Tender Documents in English may be obtained from 22nd July 2013 on any working day from 7:00 hours to 17:00 hours at the office of procurement Officers, 7th floor / our website: www.rssb.rw Enquiries regarding this tender may be addressed to Director General of RSSB, P O. Box 250, and 6655 Kigali.Well printed bids, properly bound and presented in three copies one of which is the original enclosed in envelopes, must reach at the address mentioned above not later than 5th September 2013 at 2:00 pm. Rwanda Development Board invites proposals from international competent consultancy firms to advise on a need based content development and advertising strategy and plan, and act as liaison between RDB and all media houses in terms of acquiring advertising services.Well printed proposals, properly bound presented in four copies one of which is the original must be submitted in sealed envelopes not later than 20/08/2013 at 3:00 pm local time to the address below:RDB, PROCUREMENT OFFICE, FOURTH FLOOR, P.O. Box: 6239 Email: procurement@rdb.rw GISHUSHU NYARUTARAM ROAD KIGALI/RWANDA .

TENDERS The Ministry of Local Government invites sealed bids from eligible bidders for the management and operation of selected agro processing facilities. Contact: The Heads of Procurement and Disposal Units in the respective District Local Governments. The bids must be delivere to the above address on or before Aug 19, 2013 and must be accompanied by a bid security of Ug shs 500,000. .

Source: East African Business Week

EAST AFRICAN BUSINESS WEEK

REQUEST FOR PROPOSALS No: 1709/S/ICB/HCID/RDB/GOR/13 TITLE: HIRING A CONSULTANCY FIRM TO CONDUCT A SURVEY ON PRIVATE SECTOR EMPLOYMENT CREATION FUNDING: ORDINARY BUDGET CLIENT: RDB Rwanda Development Board (RDB) hereby invites proposals from both national and international competent consultancy firms to conduct a survey on private sector employment creation, as indicated in details in the terms of references included in the request for proposal. Participation is open on equal conditions to all consultancy firms specialized in the field of the assignment through national Open Tender. Request for proposal can be obtained from Rwanda Development Board building located at GISHUSHU NYARUTARAMA road P.O. Box: 6939 KigaliRwanda from 12th August, 2013, in Procurement Office, 4th floor. The consultant firm shall be chosen through a selection method based on the quality and the cost (QCBS) according to prescribed procedures in the Request for Proposals document. Technical and financial proposals must be presented in separate envelopes showing each the nature of the offer concerned, the firm’s name and both put in a third anonymous envelope marked as follow: REQUEST FOR PROPOSALS No:1709/S/ICB/HCID/RDB/GOR/13 TITLE: HIRING A CONSULTANCY FIRM TO

CONDUCT A SURVEY ON PRIVATE SECTOR EMPLOYMENT CREATION “TO BE OPENED ONLY IN PUBLIC SESSION” Well printed proposals, properly bound presented in four copies one of which is the original must be submitted in sealed envelopes not later than 26/09/2013 at 3:00 pm local time to the address below: RWANDA DEVELOPMENT BOARD PROCUREMENT OFFICE; FOURTH FLOOR P.O. Box: 6239 Email: procurement@rdb.rw GISHUSHU NYARUTARAM ROAD KIGALI/RWANDA The proposals will remain valid for 120 days starting from the deadline of their submission. Late proposals will be rejected. Electronic bidding is not permissible. The opening of proposals will take place on the same day at 3:30 pm local time (1:30 GMT) at the Rwanda Development Board conference room, 4th floor, Procurement. Done in Kigali, on 07th August, 2013 Mark NKURUNZIZA Chief Financial Officer/RDB

TENDER NOTICE (TN)/INVITATION FOR BIDS (IFB) TENDER REFERENCE: No 05/F/2013-2014/IO/RNP/OB TITLE OF THE TENDER: SUPPLY OF FUEL AND LUBRICATS TO RWANDA NATIONAL POLICE IN THE YEAR 2013-2014

2. The Rwanda National Police invites qualified bidders to submit bids for the supply of fuel and lubricants to Rwanda National Police in the year 2013-2014 as indicated in detail in the statement of requirements. 3. Tender Documents in English or French may be obtained from the Office of Procurement Unit, Tel 255103353/ 0788311803, at the Rwanda National Police General Headquarters Kacyiru, on any working day from 06/08/2013 from 07:00 am to 05:30 pm, upon presentation of proof payment of a non-refundable fee of seven thousand and nine hundred Rwandan francs only (7,900 Rwf) to Account N°120.00.46 opened at National Bank of Rwanda (BNR); the bank slip must bear the name of the bidder, the number and the title of the tender. 4. All bids shall be accompanied by a Bid Security of 36,140,500 RWF /Lot 1 (fuel) and 2,640,000RWF/Lot 2 (lubricants) or in any foreign convertible currency.

ITANGAZO RY’IPIGANWA NOMERO IRANGA ISOKO: No 05/F/2013-2014/IO/RNP/OB INYITO Y’ISOKO: ISOKO RYO KUGURIRA POLISI Y’ U RWANDA IBIKOMOKA KURI PETEROLI BIZAKORESHWA MU MWAKA WA 2013-2014 INKOMOKO Y’UBWISHYU: INGENGO Y’IMARI ISANZWE 1. Polisi y’u Rwanda ifite ingengo y’imari yateganyirije isoko ryo kugurira Polisi y’u Rwanda ibikomoka kuri Peteroli bizakoreshwa mu mwaka wa 2013-2014. 2. Police y’u Rwanda irahamagarira abacuruzi babishoboye kandi bujuje ibisabwa gutanga inyandiko zabo z’ipiganwa ku isoko ryo kugurira Polisi y’u Rwanda ibikomoka kuri Peteroli bizakoreshwa mu mwaka wa 2013-2014. 3. Igitabo gikubiyemo amabwiriza agenga iri soko kiri mu cyongereza cyangwa mu gifaransa kiboneka mu biro by’Ishami rishinzwe amasoko muri Polisi y’u Rwanda, Tel 255103353/ 0788311803, biri mu kigo cya Polisi y’u Rwanda ku Kacyiru, mu minsi yose y’akazi guhera taliki 06/08/2013 kuva 7 h 00 kugeza 17h30, hamaze kwishyurwa amafaranga ibihumbi birindwi na magana cyend by’amafaranga y’u Rwanda (7,900 Frw) adasubizwa ashyirwa kuri Konti N°120.00.46 muri Banki Nkuru y’Igihugu (BNR); icyemezo cya BNR kigomba kuba cyanditseho amazina y’uwifuza gupiganwa, nomero n’inyito by’isoko. 4. Inyandiko z’ipiganwa zigomba kuba ziherekejwe n’ingwate y’ipiganwa ingana n’ amafaranga y’u Rwanda 36,140,500 RWF/Lot 1 ("fuel") na 2,640,000 RWF/Lot 2 ("lubricants"). 5. Ibisobanuro kuri iri soko biboneka mu biro by’Ishami

6. Well printed bids, properly bound and presented in four copies one of which is the original must reach the Office of Procurement Unit at the address mentioned above not later than 26/09/2013 at 9:30 am. Late bids will be rejected.

2. La Police Nationale sollicite des offres de la part de soumissionnaires éligibles et répondant aux qualifications requises pour la fourniture de carburant et lubrifiants à la Police Nationale du Rwanda pour l’année 2013-2014.

7. Bids will be opened in the presence of bidders or their representatives who choose to attend at in the conference room of Procurement Office at Kacyiru, on the same day 26/09/2013 at 10:00 am.

3. Les Dossiers d’Appel d’Offres rédigés en Anglais ou en Français peuvent être obtenus au bureau de l’Unité chargée de passation des marchés au sein de la Police Nationale, Tel 255103353/0788311803, sise à Kacyiru au Commissariat Général de la Police Nationale, pendant les jours ouvrables dès le 06/08/2013 de 7heures à 17h30, sur présentation d’un bordereau de paiement d’un montant non remboursable de sept mille neuf cents francs Rwandais (7,900 Frw) versé sur le compte N°120.00.46 ouvert à la Banque Nationale du Rwanda (B.N.R; doivent apparaître sur ce bordereau le nom du soumissionnaire, le numéro et le titre du marché.

9. The validity of the offers shall be 120 days from the date of opening of bids. 10. Bidding will be conducted in accordance with the Law N° 12/2007 of 27/03/2007 on Public Procurement. Kigali, 06/08/2013 (Sé) ACP Jean Marie TWAGIRAYEZU Acting Commissioner for Finance & Chief Budget Manager

6. Abifuza iri soko basabwe kuba bagejeje inyandiko z’ipiganwa zanditse n’imashini mu gifaransa cyangwa mu cyongereza kandi zifunze neza mu mabahasha ane (umwimerere na kopi eshatu) mu biro by’Ishami rishinzwe amasoko byavuzwe haruguru tariki ya 26/09/2013 saa tatu n’igice za mu gitondo (9h30). 7. Gufungura amabahasha bizaba uwo munsi tariki ya 26/09/2013 saa ine (10h00) mu cyumba cy’ inama cy’Ishami rishinzwe amasoko ryavuzwe haruguru. Inyandiko z’ipiganwa zikererewe zizasubizwa ba nyirazo. 8. Inyito y’isoko na Nomero iranga isoko bigomba kugaragara inyuma ku ibahasha ikubiyemo inyandiko z’ipiganwa. 9. Inyandiko z’ipiganwa zigomba kuba zifite agaciro k’iminsi 120 uherereye ku itariki y’ifungura ry’inyandiko z’ipiganwa mu ruhame. 10. Ipiganwa rigengwa n’Itegeko N012/2007 ryo kuwa 27/03/2007 rigenga amasoko ya Leta. Kigali, kuwa 06/08/2013 (Sé) ACP Jean Marie TWAGIRAYEZU Komiseri w’Imari akaba n’Umugenga w’Ingengo y‘Imari w’Agateganyo

TITRE DU MARCHE: FOURNITURE DE CARBURANT ET LUBRIFIANTS A LA POLICE NATIONALE DU RWANDA POUR L’ANNEE 2013-2014 SOURCE DE FINANCEMENT: BUDGET ORDINAIRE

5. Enquiries regarding this tender may be addressed to the Procurement Office, at the mentioned address.

8. The Outer envelope should clearly indicate the tender name and title.

rishinzwe amasoko ryavuzwe haruguru.

AVIS D’APPELS D’OFFRES (AAO) TENDER REFERENCE: No 05/F/2013-2014/IO/RNP/OB

1. La Police Nationale a des fonds pour financer le projet de fourniture de carburant et lubrifiants à la Police Nationale du Rwanda pour l’année 2013-2014.

SOURCE OF FUNDING: ORDINARY BUDGET 1. The Rwanda National Police has received funds for supply of fuel and lubricants to Rwanda National Police in the year 2013-2014 and intends to apply a portion of the funds to eligible payments under the contract for which this Bidding Document is issued.

AUGUST 12 - 18, 2013

4. Les offres doivent comprendre une garantie de l’offre de 36,140,500 RWF /Lot 1 (carburant) et 2,640,000 FRW/Lot 2 (lubrifiants) ou en monnaie étrangère convertible. 5. Toute demande d’information relative au présent appel d’offres peut être adressée au bureau de

l’Unité de passation des marchés, à l’adresse mentionnée ci-dessus. 6. Les offres bien dactylographiées, doivent être remises sous plis scellés et présentés en quatre copies dont un original au bureau de l’Unité de passation des marchés à l’adresse mentionnée ci-dessus au plus tard le 26/09/2013 à 9h30. Les offres remises en retard seront rejetées. 7. L’ouverture des offres aura lieu en présence des soumissionnaires ou de leurs représentants souhaitant y assister, dans la salle de conférence de l’Unité de passation des marchés, le même jour, le 26/09/2013 à 10h00. 8. Le titre du marché doit être clairement mentionné sur l’enveloppe extérieure. 9. La validité des offres sera de 120 jours à partir de la date d’ouverture des offres. 10. L’appel d’offres sera régi par la Loi No12/2007 du 27/03/2007 sur les Marchés Publiques. Kigali, le 06/08/2013 (Sé) ACP Jean Marie TWAGIRAYEZU Commissaire chargé des Finances et Gestionnaire Principal du Bugdet (a.i)

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18 , 2013

HEALTH

Cabbage juice: A remedy for ulcers BY ERIOSI NANTABA KAMPALA, UGANDA--During the holy month of Ramadan, some Muslims develop stomach ulcers and fail to complete the fasting ritual. Fasting may cause stomach complications because of the increased acid levels in an empty stomach which intensify gastritis. Few people have thought of cabbage juice as a preventative mechanism for ulcers but it is one of the most medicinal vegetables. Cabbage is a vegetable that is easily found in every household kitchen, in restaurants and hotels. Taking four glasses of cabbage juice is a remedy for not only ulcers but contains medical benefits for fighting prostate cancer, breast cancer and colon cancer. Dr. David Ssali of Dama Medicinal Herbs says cabbage is considered to be the king of cruciferous vegetables and contains sulforaphane molecules which kill off the bacterial causing peptic ulcers. “People are discouraged from taking cabbage juice because of its bitter taste but it has enor-

A fresh glass of cabbage juice contains an antipeptic ulcer factor mous medicinal properties derived from drinking it. Cabbage strengthens the stomach resistance to acid attacks as it contains vitamin U, which heals and protects the stomach lining,” he said. Cabbage is a bunch of stiff leaves layered one over the other, which gives it a round shape. Several varieties of cabbage include green, purple red, broccoli, copenhagen, prize drum head, among others.

There are numerous studies and trials that have proven cabbage juice can help heal ulcers in humans. For those who want to achieve great looks and a fair skin, cabbage juice when mixed with yeast and honey can do the trick. “Apply the mixture all over the face and neck, keep it for 15minutes and then wash-off with warm water to get fairer skin,” Dr. Ssali said.

Uganda marks breastfeeding week BY ERIOSI NANTABA KAMPALA, UGANDA-The Ministry of Health in partnership with UNICEF joined the rest of the world to commemorate the World Breastfeeding campaign last week. The campaign seeks to promote breastfeeding among mothers at least for the first six weeks. The week was celebrated under the theme ‘Learning from the past to improve the future, strengthening the first 1000 days.’ It helps further the Government’s approval of a national policy on Infant and Young Child Feeding which promotes exclusive breastfeeding by mothers. A statement from UNICEF reads: “Breast milk is the ideal food for newborns and infants and it gives them all the

Breast milk is safe and contains antibodies. nutrients they need for healthy development. Optimal breastfeeding together with complementary feeding help prevent malnutrition and can save about a million child lives.” Statistics indicate the benefits of breastfeeding are enormous, but globally less than 40 percent of infants under the age of six months are exclusively breastfed. In

Uganda, figures indicate only 62 percent of children under six months old are exclusively breastfed. Nelly Birungi, UNICEF Nutrition Officer said exclusive breastfeeding is associated with better weight gain in infants and less cases of diarrhea and acute respiratory diseases. “Breast milk is safe

and contains antibodies which protect infants from common childhood illnesses. It is therefore due to these powerful benefits World Health Organization (WHO) and UNICEF recommend exclusive breastfeeding until a baby is six months old,” Birungi said. According to a report by WHO breastfeeding is becoming important especially for babies born in conflict and disaster ridden areas. This year, the Ministry of Health, with support from UNICEF, continues to encourage mothers to exclusively breastfeed infants during the first six months through the recently launched Family Health Days. This is an intervention designed to complement the existing health facility-based and outreach health services.

AU States underfund public health spending More than a decade after the African Union drew up the Abuja Declaration on HIV/AIDS, Tuberculosis and Other Related Infectious Diseases, how have governments fared in their commitments to increase domestic health spending and scale up local efforts to fight these infectious diseases? Health spending in AU governments has increased exponentially, from just $30.7 billion in 2001 to $106.6 billion in 2011, according to a report jointly produced by UNAIDS and the African Union. But despite significant growth in annual expenditure, the share of private and public spending has remained largely the same. In 2001, general government spending on health accounted for 44 percent of total health expenditure in the Africa Union. After a decade, its contribution to the bloc’s annual health budget increased only 4 percentage points. Further, despite pledging in Abuja to commit 15 percent of their annual budgets to public health spending, nearly onethird of AU governments have reduced health expenditure since 2001. Mozambique, which had the second-highest health spending among AU governments in 2001, cut health spending from 14.8 percent of its annual budget to just 7.8 percent in 2011. More alarmingly, Chad, where incidences of HIV and tuberculosis remain high, slashed health spending 76.3 percent from 13.8 percent in 2001 to a meagre 3.3 percent in 2011. But some countries have made significant progress toward meeting this goal. The Democratic Republic of the Congo, for instance, boosted health spending 286.7 percent from just 2.8 percent in 2001 to 10.8 percent in 2011. While still a few percentage points shy of the target, the DRC is likely to meet this goal provided public health spending increases at the current rate. As of 2011, six countries have been able to meet and surpass the 15 percent target: Rwanda (23.8 percent), Liberia (18.9 percent), Malawi (18.5 percent), Zambia (16 percent), Togo (15.4 percent) and Madagascar (15.3 percent). Four countries are clearly on their way to meeting the Abuja target: Swaziland (14.9 percent), Ethiopia (14.6 percent), Lesotho (14.6 percent) and Djibouti (14.2 percent). In general, AU governments have increased public health spending as a share of their

annual budgets by 69 percent. Higher domestic spending has helped reduce new HIV infections in sub-Saharan Africa by 25 percent, and cut AID-related deaths by onethird. Further, the number of children who become newly infected with HIV dropped at least 50 percent in Botswana, Ethiopia, Ghana, Malawi, Namibia, South Africa and Zambia. Save for Botswana, whose health spending dropped from 9.6 percent in 2001 to 8.7percent in 2001, all of these countries boosted public health expenditure in 2011. However African governments need to scale up public health spending to drastically reduce its infectious disease burden. As of 2011, at least 69 percent of people living with HIV and AIDS and 90 percent of malaria-related deaths are in sub-Saharan Africa. In addition, nearly a quarter of incidences of tuberculosis, 80 percent ofTB cases among people living with HIV and another 80 percent of instances of malaria are in Africa. The joint report set out a number of recommendations to help the bloc achieve not only the targets set in the Abuja Declaration, but also “to improve health and well-being” in the continent through 2030. The two overarching themes of the recommendations are to find more innovative sources of funding and ways of investing these resources to ensure maximum impact, and to be more inclusive in planning and implementing health programs. The report suggests, for instance, that the African Union should push to produce more of Africa’s medicinal needs within the continent. It also recommends including not only health partners in decision-making processes, but also vulnerable and marginalized populations.

“

despite pledging in Abuja to commit 15 percent of their annual budgets to public health spending, nearly onethird of AU governments have reduced health expenditure since 2001.

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

INVESTMENT

India’s wealthiest man in Kenya joint venture BY EABW REPORTER NEW DEHLI, INDIA-India’s wealthiest man, Mukesh Ambani, (according to Forbes net worth $21.5 billion), has gone into a joint venture in Kenya’s real estate business. His holding company, Reliance Industries, has signed a deal with Delta Corp, owned by Jaydev Mody, to invest about $40 million in housing and office properties. According to Singaporebased, Business Times, out of the 10 prime plots purchased by this joint venture, Delta Corp East Africa Limited (in which RIL holds 58.8% stake) has completed construction of at least one low-cost residential complex and one office-block project. Delta Corp, which is present in the businesses of gaming, entertainment, hospitality and real estate in India, Sri Lanka and Kenya, holds a 39.2% stake in Delta Corp East Africa Limited (DCEAL), which was set up along with RIL to develop real estate assets in Kenya. Mody and RIL chief Mukesh Ambani (inset) are known to be good friends. ‘DCEAL has invested approximately Rs 200

Nairobi’s Delta Plains is described as mid-to-low cost residential complex developed by DCEAL near JKIA. crore to acquire 10 prime plots of land in Nairobi with a planned developable area of approximately 1.2 million square feet of commercial and residential assets,’ Delta Corp said in its latest annual report for 2012-13. According to RIL's annual report for the same fiscal, DCEAL had total assets of close to Rs 244 crore as on March 31, 2013, while it recorded a turnover of Rs 148 crore

and profit after tax of Rs 29 crore in the financial year 2012-13. ‘DCEAL has already completed construction of Delta Plains, a mid- to low-cost residential complex at Athi river near the Jomo Kenyatta International Airport. This relatively industrialised area is being considered an upcoming residential hub due to its proximity to both the airport and the city, Delta

Corp discloses in the report. ‘This makes it ideally placed for a housing complex that will cater to this demographic,’ the report continues. Delta Corp, which runs offshore casinos in India and is the only listed entity in the country's gaming industry, further said DCEAL has developed a gated complex of four office-blocks, Delta Riverside, closer to the

central business district (CBD) in Nairobi. ‘These are independent, self-sufficient blocks ideal for small to mid-size offices. We have successfully completed and sold these. ‘In addition to the above, DCEAL has successfully completed the sale of the second of the Twin Towers of 'Delta Corner' in the CBD of Westlands,’ the company said.

Uganda to give industrial land BY BAZ WAISWA KAMPALA, UGANDA--The government is in the final stages of drawing up conditions for allocating idle land located in the Kampala Industrial and Business Park to new investors. Eng. Gabriel Ajedra, a state minister for investments said recently, through the Uganda Investment Authority (UIA), over 380 acres of undeveloped land has been recovered from close to 70 investors. The land is at Namanve along the Kampala-Jinja highway. Ajedra said they wrote up a set of rules which must be acceptable to the Public Procurement and Disposal of Public Assets Authority, (PPDA), the Solicitor General Office and the finance ministry. Ajedra said a draft copy is already in circultation. “If endorsed we will publish it in the newspapers,” Ajedra told a news conference The minister revealed they are going to officially write to the investors who failed to utilize the land to inform them that they no longer have rights to it. The land covers 2000 acres set aside for industrial development. But only three companies have fully developed land allocated to them. He said letters are being sent out to confirm that those previously allocated the land no longer have rights to it.

Survey launched to gauge Chinese in Africa BY ANDREW ZABLON MWANZA ,TANZANIA-A survey is being carried out to find out what Africans think of Chinese companies operating in their countries. It will cover 15 countries Chinese investments in sub-Saharan Africa have grown from a mere one billion US dollars at the turn of the century to about $80 billion today. The survey is conducted by the Ethics Institute of South Africa (EthicsSA) in together with the Charles Leopold Mayer Foundation for the Progress of Humankind, the Forum on Ethics and Responsibility, Globethics.net and Centre for International Business

Chinese President Xi Jinping (L) was recently in Tanzania where he had talks with President Kikwete (Center). Ethics (CIBE) Beijing. Results are to be published next year. The countries are Angola, Benin, Cameroon, Democratic Republic of the Congo, Ethiopia, Ghana, Kenya, Mozambique, Nigeria, South Africa, Sudan, South Sudan, Tanzania, Zambia and

Zimbabwe. Sofie Geerts, Project Manager for EthicsSA said last week, the criteria for the selection was based on two main factors. “Countries were firstly selected if there is a large presence of Chinese investment and also if EthicsSA and Globethics.net had

good contacts and partner organizations in these respective countries to be able to get respondents to do the survey,” Geerts said. Asked why the survey left out other Asian countries like India and Japan, Geert said, “the question was asked several times and it is obviously valid as

these countries also invest in Africa.” However, he said Chinese investments are the largest of all the Asian countries. The public opinion about the Chinese investment is also much more vocal than investment by other countries. Geerts said plans are underway to conduct a sim-

ilar survey for India in the near future. The Institute’s CEO, Professor Deon Rossouw, said the survey aims to provide a factual basis for dialogue with the Chinese government and Chinese companies. “China has become a major investor across Africa and it’s clear that there are widespread negative perceptions about its involvement,” Professor Rossouw was quoted in a EthicsSA statement. He added: “China is now Africa’s largest trading partner, and Chinese investment in Africa is now sitting at around $122 billion per year. “Given the importance of the relationship, particularly to Africa, we cannot rely on rumour and misinformation,” he said.

EAST AFRICAN BUSINESS WEEK

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Wall stickers don’t need glue KAMPALA, UGANDA- Having wall stickers in a room can change it for the better depending on how well you do it. Wall stickers, sometimes known as wall labels, are an easy way to add a little creative stylishness to any room. However, since 2006 they have been increasingly in popular around the world as décor items for homes,

office, shops and other commercial applications. Many people in Kampala have resorted to this method of beautifying rooms. It’s also very affordable unlike many other methods. As an alternative to hand painting, wall stickers are quick and require very little in terms of skill or materials. According to Alex Makumbi an interior designer with Light the World Interior Designers, the tech-

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niques used and required in making wall stickers derive from the sign writing industry. Wall stickers and wall labels are a great alternative to wallpaper, paint or stencils. They also give a better choice although choosing the right space is also important for the best outcomes “Choose the correct space on which to apply the sticker, plan the design you`d like to make, and then apply. And when you`re tired of your design, say after years, a month, maybe a day – they are removable,” Makumbi said. It is also true that applying wall stickers is a simple and fun activity. Nor does it take a long time to accomplish. Henry Otim, an architect and interior designer, said the best way of doing it is by first positioning the design using masking tape to make sure it's aligned properly. Then the application film is removed and the self adhesive stickers are simply smoothed down with a plastic card. There is no messy paint or glue and the whole process takes only minutes. “There are a huge range of designs available to suit every style, from fun wall stickers for kids rooms to floral decorations, contemporary art pieces inspired by artists, portraits of icons and designs inspired by nature to bring the outdoors inside and are perfect for all homes,” he said. According to Otim, the best stickers to look out for are water resistant that are perfect for brightening up bathrooms and kitchens and any other rooms. It's even possible to buy wall stickers that can be written on. Most wall stickers are available in a range of colours and because they are usually made to order you can specify colours to suit your style. Joslyne Kahunde, a dealer at Garden City in Kampala said the price varies with the size and complexity of the design.

EAST AFRICAN BUSINESS WEEK

AUGUST 12 - 18, 2013

SPORTS

Iranians conquer Uganda

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BY EMMA ONYANGO KAMPALA, UGANDA – Despite months of tough talking and stamina loading for Ugandan pugilist Kenneth Odeke, it was Iranians who emerged victorious after Sayed Abbas Nassab thumped ‘Mr. Bad News’ in submission. The Iranian took charge of the bout from the first round charging at the 22 year old Ugandan at every opportunity. Despite having a height advantage and a better reach, it was bad news indeed for the Ugandan as he lost to Abbas by a Technical Knockout in the sixth round in the World Boxing Federation Title fight in Kampala in the wee of hours Saturday morning. Kenyan Referee Francis Orlando had no option but to stop the fight in the 6th round following Odeke's profuse bleeding that started as early as the 4th round due to the Iranian's well timed powerful jabs. By the third round, it was

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Kenneth Odeke (R) during a practice session. Iranian boxes triumphed over Ugandans evident that Odeke who had promised to finish off the Iranian in round three was getting increasingly frustrated. He refused to sit down at the end of each round and a well timed thud to the head in the sixth round became too much for the Ugandan to handle. The referee ultimately stopped the bout. "He was a big talker and I came to knock him off", said

KAMPALA, UGANDA – Former Chelsea FC manager, Roberto di Matteo famed for leading the English premiership side to their first UEFA Champions league title jets into Uganda this week to make an exclusive announcement. The former Italian footballer will be in Uganda for the launch of a new Guinness football campaign. He is also expected to spend a few hours on Wednesday engaging in soccer activities with football stakehold-

a confident Sayed through an interpreter while Odeke consoled himself as he sought for a rematch in Iran soon. "This is not the end of the road, I will need a re-match," said Odeke. Odeke had prior to the fight fought three profesional fights winning each of them by knock out and it was expected that he would easily prevail over the Iranian.

Odeke's misery compounded an awful night for Ugandans as another Iranian, Govad Zovarhend overcame Uganda’s Hassan 'Bana Bana' Haruna in the Middle weight World Boxing Council 8 round bout. ‘Bana Bana’ blamed his loss on a twisted arm while the Iranian who also accepted a rematch also said he was fighting with only one hand.

ers in the country. “We are extremely excited to be hosting such an esteemed and great icon in the world of football and as Guinness, we are proud to be associated with a man who through his achievements is truly made of more, just like the brand,” Mark Mugisha, Marketing Manager, Uganda Breweries Limited said. Di Matteo was capped 34 times for his country, and the former midfielder played for various teams across

Europe including Chelsea before he guided the Blues to their first UEFA Champions League title in 2012. “We can’t wait to announce what we have in store for Di Matteo and Guinness over the forthcoming months. Guinness is underlining its commitment to football in Uganda through a bold, challenging, distinctive, entertaining and inspiring platform that will require all football lovers to demonstrate that they are Made of More,” added Mugisha.

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Unveiling Opportunities - www.busiweek.com

Statoil to start gas production by 2020

A Statoil gas production facility in Europe. The company says production is slated to start in seven to 10 years. BY LEONARD MAGOMBA DAR ES SALAAM, TANZANIA — The Norwegian international energy company, Statoil says Tanzania may have to wait as long as seven to ten years before the company can begin commercial production of natural gas. This is likely to be much longer than people expect. Statoil said it would take years for the facilities to be built because there is no infrastructure in the area which would allow production to take place. The construction of such facilities takes long duration as a number of technical experiences are needed so as to fit the required pipelines properly, the Statoil’s Head of Communications, Ms Geneviene Kasanga said. Kassanga told journalists: “So far, we have already found a total of 15 to 17 trillion cubic feet in our four wells.” She was addressing journalists who participated in the training on oil, gas and mining organized by Revenue Watch and Reuters Foundation in Dar es Salaam recently. Statoil discovered natural gas to its four wells but this does not mean the company is going to start production tomorrow. “It will take us between seven and ten years to start commercial production,” Kassanga said. Statoil recently raised estimates for discoveries in Tanzania’s Block 2 to as much as 13 trillion cubic feet of recoverable resources. This is enough to build a liquefied natural gas plant with Britain’s BG Group Plc which found 10 trillion cubic feet in its Jodari well drilled off

Tanzania, near Statoil’s own finding. The giant energy companies plan to build a $14 billion East African liquefied natural gas (LNG) terminal. It will be well placed for exports to the fast-growing markets in Asia, after the Norwegian company made a new find off the coast of Tanzania. Tim Dodson, Statoil’s Head of Exploration, made the announcement recently after the company confirmed it had made its third big gas discovery in Tanzanian waters. It discovered between 4 and 6 trillion cubic feet of natural gas in the Indian Ocean, according to Dodson, this is enough gas for them to move forward. The duo plans to build two trains, as the LNG processing units are known, with an option for more. “We are working with BG to come up with a recommendation for a landing site. We should be making that recommendation to Tanzanian authorities soon,” he said. The U.S. Geological Survey has estimated that more gas lies off the shores of Kenya, Tanzania and Mozambique than off Nigeria, Africa’s biggest energy producer. East Africa is attractive to oil firms because of its relative proximity to Asia’s big LNG consumers. “To allow exports of the fuel to major markets, there will be a need for installations to turn gas into freezing liquid for transport by ship that is why we are planning to build one of the first,” he said. Statoil said drilling on two to three new prospects may yield “highimpact” finds in 2013, defined as discoveries with reserves of more than 250 million barrels of oil equivalent. Tanzania sees natural-gas reserves more than doubling by early 2015 from the 40 trillion cubic feet discov-

ered by oil and gas companies, as the country prepares to offer new exploration blocks as early as September, this year. Prof. Sospeter Muhongo, the Energy and Minerals Minister said: “We have enormous amounts of gas, and we are now at 40 trillion cubic feet and I’m sure in the next two years we should be at more than a 100 trillion cubic feet.” Offshore Tanzania may hold as much as 17 trillion cubic feet of natural gas considering recent discoveries there, the Norwegian major Statoil said. Statoil announced with joint venture partner Exxon Mobil that it discovered at least 4 trillion cubic feet of natural gas offshore in the Tangawizi-1 well. That brings the total reserve estimate to as high as 17 trillion cubic feet. Tanzania will offer exploration permits between September and November, after the country delayed a planned licensing round for nine blocks in September last year. Significant gas discoveries were made at Songo Songo and Mnazi Bay. So far a total of 35 exploration and development wells have been drilled. The cumulative seismic coverage in public domain is approximately 52,000 km of which 28,000 km were acquired offshore and 24,000 km onshore. The onshore seismic coverage includes coastal as well as interior rift basins. Statoil and its partner ExxonMobil made the significant Zafarani, Lavani and Tangawizi discoveries in Block 2, which covers an area of approximately 5,500 square meters and lies in water depths between 1,500 to 3,000 meters.

High maize prices at EAX BYDIAS NYESIGA KIGALI, RWANDA — High prices would be blamed for the slow trading at the maiden maize auction at the East African Commodity Exchange in Kigali. The Regional’s commodity exchange set up recently was testing its trading platfrom to ascertain its capacity to handle the expected high commodity trading from the region. The auction that was in two phases for Grade 1 and grade 2 maize types saw the seller- Rwanda grain and Cereal association hiking prices for maize that scared buyers who included local and indian based companies. “The price of the seller was too high so there were no transaction made,” John Bosco Sebabi, the Chief Operations Officer-COO at the East African Commodity Exchange –EAX told Business Week.

The Sellers’ high prices are blamed on the seasonal variations with experts saying that prices of maize are abit higher with few harvests from farmers. “The harvests were not good on the side of farmers because the heavy rains and the early start of the dry season,”Jean Claude Musabyimana, a Farmer from Eastern Province said Nevertheless, Sebabi notes that the purpose of the auction was to test the platform to ascertain its capacity to hold trading of commodities. “We tested and found our platform was very ok and ready to trade.We are soon starting trading of beans and maize,” he said Hopefully, when the platform starts trading, farmers will be able to fetch higher prices from their produce due to competitive market and the elimination of the middle men who normally cheat farmers.

Kenya slams UN charcoal report NAIROBI, KENYA — Kenya has dismissed a UN report which accuses its troops in Somalia of facilitating charcoal exports in defiance of a UN Security Council ban. The report, leaked to Reuters news agency, said Kenyan troops helped export charcoal from Kismayo port after militant Islamist group al-Shabab lost control of it in September 2012. The UN banned the export of charcoal from Somalia in February 2012. It alleges that the industry is a major source of income for al-Shabab. Kenya and the African Union (AU) appealed to the UN Security Council to lift the ban after al-Shabab fighters fled Kismayo following last year's offensive by Kenyan troops and a Somali militia known as Ras Kamboni. When the Security Council refused, Kenya's army and Ras Kamboni "took the unilateral decision to begin the export of charcoal" from Kismayo, said the report, compiled by a UN panel of experts. "Essentially, with the changeover of power in Kismayo, the shareholding of the charcoal trade at the port was divided into three between al-Shabab, Ras Kamboni and Somali Kenyan businessmen cooperating with the KDF [Kenya Defence Forces]," the report alleged. KDF spokesman Bogita Ongeri said the report lacked objectivity and had not been properly researched. Kenyan troops had curtailed al-Shabab's operations in Somalia and had put a "stop" to the illegal charcoal trade, he said, Kenya's Daily Nation newspaper reports. Charcoal exports from Kismayo were estimated to be worth $15m to $16m per month, it added. Agencies

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