Vol ix issue iv by East African Business Week

E AST

www.busiweek.com

A F R I C A N

VOL. 9, ISSUE 4, SEPTEMBER 2 - 8, 2013

Unveiling Opportunities

KSH50, TZSH1000, USH1,500, RF600,BIF 1,500; 5 BIRR, SS£2.5

SINGAPORE SINGAPORE

G ardens by the B ay

Singapore wants you to come and enjoy Bright lights, shopping , business, sightseeing , trade , great food and now, a great way to get there ...on Ethiopian’s thrice weekly flights to its 8th destination in the far east.

www.ethiopianairlines.com

Tz airline to sack staff BY K.KALAGHO AND L.MAGOMBA DAR ES SALAAM, TANZANIA-The government is to slash Air Tanzania Company Limited (ATCL) workers to just 50 in a move to save the state airline from total collapse. ATCL presently flies one Dash-8 Bombardier, but last week an investor offered to bail out the airline with a promise

INSIDE >> P.32 >>

Locals lose out in Tanzania oil bidding

to pump $100 million into the troubled venture. ACTL infrequent scheduling and lack of aircrafts has resulted in ATCL’s 200 odd workers being largely redundant as air travellers turned to other airlines for services. Early last year, the government was forced to pay up Tsh4.5 billion ($2.7 million) to keep ACTL from sinking altogether Tanzania Minister for Transport Dr. Harrison Mwakyembe said last week

Malaba agents worry about jobs

in order to save the country from such unnecessary expenditure the retrenchment of workers was unavoidable. He said after retrenching some 172 ATCL workers, the idea was to further retrench the remaining 128 workers to an essential 50 workforce. “We want to have a small but effective and efficient workforce that will not be a burden to the frail airline,” Dr Mwakyembe said. He said this would attract possible investors to partner with the government in running

the airline. He said that the government is still looking forward to revitalizing the country’s flag bearer airline and make it more competitive both inside and outside Tanzania without however giving more details. Meanwhile, the Chairman and Chief Executive Officer of the Alhayat Development and Investment Company, Sheikh Salim Al Harthy said his company

TURN TO PAGE 2

New EAC Rwanda minister

BY BAZ WAISWA

P.3 >>

P.29 >>

Kikwete calls in Museveni on Rwanda

New column by Hope Wilson

MALABA, UGANDA – Clearing and forwarding agents in the border town of Malaba are uncertain of their future pending the implementation of the Single Custom Territory (SCT). The SCT requires all imports destined for Uganda and Rwanda be cleared at the Mombasa port in Kenya. Agents blame the government, Uganda Clearing Industry and Forwarding Association (UCIFA) and their bosses in Kampala for failure explain what is going on. They are wondering how they will be affected in the new system. Onzi Piook of Pantek Agencies, who has been a clearing agent since 1993, is one such agent who is worried the coming of the Single Customs Territory will take away their jobs. “If they are saying clearing is moving to Mombasa then it means we are going to be idle. We don’t want to hear that, a firm can’t employ 10 people in Mombasa. Each clearing and forwarding firm has employees in Mombasa, Malaba, Busia, Kampala and Katuna. These are jobs that people are going to

TURN TO PAGE 2

Rwanda’s new Minister for East African Community Affairs, Jacqueline Muhongayire was last week sworn-in as an Ex-Officio Member of EALA. The Oath of Allegiance to the House was administered before the EALA Speaker, Margaret Nantongo Zziwa.

Rwanda bankers tout mergers DIAS NYESIGA KIGALI, RWANDA-Experts believe that bank mergers would help grow the industry in the region and help to compete with international banks. “Previously it has been international banks taking a lead in the banking sector on the continent and in the region but now more African based

banks are taking up the market,” James Gatera, the Managing Director, Bank of Kigali said last week. Recently I & M Bank, a Kenya based financial institution, bought Commercial Bank of Rwanda (BCR) and the Nigerian Bank- Guaranty Trust Bank took up 70% in Fina Bank (Kenya). Experts say these acquisitions will help iron

TURN TO PAGE 2

Israelis to deepen Ethiopia potash stake TEL AVIV, ISRAEL-Israel Chemicals has been in talks recently with a Canadian listed company Allana Potash about opening a potash mine in Ethiopia. According to a recent Haaretz report, Allana Potash CEO Farhad Abasov met with ICL senior management in Tel Aviv three weeks ago to seek ICL’s participation in the construction of a mine at

the Dallol site in Ethiopia’s Danakhil Valley, located in the country’s northeast. Allana has already raised $85 million from investors to build the mine, which is expected to yield a million tons of potash annually. The mine site has 182 million tons of proven potash reserves and potential reserves as high as 438 million tons. The mining project will be

TURN TO PAGE 2

East african BusinEss WEEk • SEPTEMBER 2 - 8, 2013

NEWS

New berth doubles Mombasa capacity BY HUMPHREY LILOBA MOMBASA, KENYA--Regional leaders converged in Mombasa last week for the commisioning of berth 19 at the port in what will drastically boost trade within East Africa. The 240-metre long new berth is expected to boost container handling and increase capacity at the Port. The commissioning of the berth was part of activities of a two-day infrastructure conference in Mombasa. Kenya’s President Uhuru Kenyatta once again reiterated the commitment of his government to fast and free flow of trade in the region at the the event attended by Uganda’s President Yoweri Museveni, Rwanda’s Paul Kagame, Burundi’s Pierre Nkurunziza. Conspicously missing at the event was Tanzanian President Paul Kitkwete.Congestion at the port has been fingered out as one of the main bottlenecks to free trade in East Africa and the opening of the expanded cargo handling facility is expected to drastically address this challenge. “We are sure that the opening of this facility will greatly ease congestion at the port of Mombasa which will go a long way in addressing the trade barriers that currently exist,” President Kenyatta said. The commisioning of Berth 19 is in line with the government’s plan to turn the port of Mombasa into the busiest and largest in

Malaba agents worry about jobs FROM PAGE 1 lose,” Piook said Piook said Uganda has close to 10,000 clearing agents, a number he said that cannot be moved to Mombasa in order to keep their jobs. “The people in Kampala might be comfortable with that arrangement, but how many people are going to lose their jobs? Malaba alone has over 400 agents. Where will we go, we can’t go to Kampala. There are agents there,” Piook told EABW. Charles Manano complained about the numerous changes introduced by Uganda Revenue Authority. “Before you get used to a particular system another is introduced this is not helped by network failures which hinder our operations,” Manano said. He said the coming of the SCT is a big worry for the agents in Malaba area because they have not been sensitized and briefed on what to do and how.

Kenyatta told his colleagues, Museveni and Kagame, that the upgrade will ease congestion. East and Central Africa. Whereas capacity issues are being addressed, the goverment will need to do more in terms of human resource capacity building and addressing integrity and accountability issues to rid the port facility of the existing rampant corruption. Coupled with addressing the challenges at the port, President Kenyatta said the re-

Rwanda bankers tout mergers FROM PAGE 1 out the challenges local banks face such as high operational costs in setting up new branches as they expand to rural areas, where many are unbanked. “We believe that with this investment into the bank we will be able to expand to serve more clients, improve our technology and ease in financing larger projects like energy which are likely to boost the economy,” Rao Bavalida, the Managing Director, Fina Bank Rwanda said. Mergers not only help banks to grow but also minimise operational costs and increase liquidity that would have been hard to raise locally. “So you find a convenience and security with these regional banks without the extra charges to access your account,” Benjamin Kirui from Kenya said.With the growth of integration and harmomisation of banking systems such as electronic banking.

gional leaders had made great progress towards the construction of a standard gauge railway system for fast transport of cargo within the region. With the construction of the standard gauge rail system, the regional government envisage growing rail cargo from the current four per cent to about 50 per cent in the next five years. The situation could drasti-

Israelis to deepen Ethiopia potash stake FROM PAGE 1 based on technology in which ICL has particular expertise from its Dead Sea Works, pumping and evaporating brine to extract potash. ICL commented it regularly examines opportunities for international projects and was seeking to expand its current potash production capacity. However, it cautioned that recent circumstances in the potash market were making new mining projects challenging. Allana estimates that investment in the mine will reach $642 million, a figure which includes both the mining operation and building the transportation infrastructure to carry the potash from Dankil to the Indian Ocean port of Tadjoura, located in next-door Djibouti. The production costs including haulage to port, are expected to reach $98 per ton, with annual maintenance costs of $26 per ton. (These costs compare with averaging mining costs of $100-$150 million per ton.) Acquiring either full or partial ownership of the mine in Ethiopia would present several advantages to ICL, which is looking to expand its production capacity in core areas such as potash. The company will be required to return its Dead Sea potash concession to the state in 2030, which will leave the company scrambling to find a replacement

cally reduce the wear and tear currently caused by cargo trucks especially on the northern corridor that runs from Mombasa through Malaba into Uganda. President Museveni is the current chair of the East African Community. He said easing the port of congestion and streamlining transport within the region will open up new business opporutunities for residents both within and across the boarders into the international markets. “It is our clarion call to East Africans to unite and encouragw free trade as this will give the region a solid bargaining power in the international market,” said Museveni. Uganda is currently a major trading partner with Kenya. In the last year alone, Uganda gave Kenya in excessof $700 million in trade making it Kenya’s number one business partner. The Kenyan government has in the recent times engaged in a fervent exercise to rid the highways of corruption and other forms of inefficiency that has contributed to to the high cost of goods within the region. The height of the corruption and inefficiency menance is manifested in the reality that while it takes approximately $70 to ship in a tonne of cargo from as far as China, it takes an almost similar amount to transport the same amount of cargo to Uganda.

Tanzania airline to sack staff FROM PAGE 1

wants to inject $100 million in reviving ATCL. “We expect to bring in four Embraer175 and four Bombardiers. We aim to turn the national carrier into a giant airline in the region,” Sheikh Al Harthy said last week. He said they will also train 10 young aircraft maintenance engineers. The engineers will specialize in maintenance of Bombardier and Embraer aircraft. He has requested the management of the ATCL to select the young engineers, who will also act as trainers once completed their studies under the company’s sponsorship. According to him, the investment of $100 million is just for starters. “We desire to offer a competitive airline service in the East Africa region as well as provide business and economy classes with international standards,” he said. “I am delighted by the intention of our Oman brothers and we welcome them to supplement our efforts to revive ATCL,” Mwakyembe said. He said the government will take time to go through a Memorandum of Understanding (MoU) prior to signing in a move aimed at ensuring a win-win situation in the investment to be made. Mwakyembe said that the government has already cleared the ATCL balance sheet in ensuring that the company is debt- free and create a conducive environment for

interested investors. He said the plan is to build an airline training centre, offices for ATCL, buy aircraft and engage in other development activities which they plan to initiate within six to 10 months. They also want to re-launch international routes, the move will go together with the acquisition of more aircrafts. “We aim to ensure, the national carrier becomes one of the biggest airlines in the EAC and Africa at large.”President Jakaya Kikwete was recently Oman on an official visit and this is seenas one of dividends of the trip. During his tour, the President asked investors to explore the opportunities in Tanzania.“We have just answered President Kikwete calls. When he was in our country, he asked local investors in Oman to come and explore the wider range of opportunities available here (Tanzania) and we are interested in airline industry,” Sheikh Salim Al Harthy said.Besides airline industry, the Oman investor is also interested to inject money in the construction sector, one of the fast growing industries in Tanzania. According to him, his company will also erect a 25-storey building in Dar es Salaam in a joint-venture with ATCL. “We also have a plan to build a multipurpose recreation facility with airline offices, hotels, he said, adding that the building will also have a big shopping centre among others.”

East african BusinEss WEEk • SEPTEMBER 2 - 8, 2013

NEWS

Kikwete calls in Museveni on Rwanda BY KENAN KALAGHO MWANZA, TANZANIA The simmering diplomatic row between Tanzania and Rwanda has reached a point where a third party is urgently needed to mediate. Tanzanian President Jakaya Kikwete has approached Ugandan President Yoweri Museveni to repair the presently very shaky relationship. However, it is not clear whether Museveni has agreed this new responsibility. This is the second diplomatic row involving Tanzania and her neighbours in Southern and the East African region. In July this year, the Southern Africa Development Community (SADC) appointed retired presidents of Mozambique, Joachim Chissano and South Africa’s Thabo Mbeki to mediate the Malawi /Tanzania border dispute. The Tanzania Prime Minister Mizengo Pinda told the Tanzanian parliament in

President of Tanzania, Jakaya Kikwete

President of Uganda, Yoweri Museveni

President of Rwanda, Paul Kagame

Dodoma last week that due to the sensitivity of the matter, President Kikwete asked for Museveni’s intervention. Earlier last week the East African Community (EAC) Secretary General, Dr Richard Sezibera said Tanzania, Rwanda and the EAC in general were consulting over the matter. There has been no feedback of this progress. Kikwete’s decision to ap-

proach Museveni, speculators say, is to send the message that the two countries have failed to compromise. But the timing of this matter might be a hindrance to the mediation. The ongoing armed conflict in eastern Democratic Republic of Congo involving the DRC army, UN forces and the M23 rebels touches the interests of Rwanda and Uganda and may affect Uganda’s con-

centration to the mediation process. The war of words between Rwanda, Tanzania started when Kikwete gave a call to Rwanda talk to FDLR during a meeting of Heads of State from the Great Lakes Region in Addis Ababa, on the sidelines of last African Union Summit in Ethiopia. Kikwete had it that a military solution has not worked in Rwanda, Uganda and DRC

Regional branches boost KCB profits BY HUMPHREY LILOBA NAIROBI, KENYA-The Kenya Commercial Bank ( KCB) Group last week reported a 19 percent leap in pre-tax profit for the six months on the back of regional subsidiaries that have started bringing returns. Apart from Kenya, the bank currently has presence in Uganda, Burundi, Rwanda, Tanzania and South Sudan. These subsidiaries are reported to have collectively contributed 11 percent of the group’s profitability. However, 89 percent of the total earnings came from the mother operations in Kenya. According to the half year results released last week by Group Managing Director Joshua Oigara, KCB’s profit before tax rose to $119million from $100million posted last year. The company attributed the rise in returns to enhanced profitability in the regional subsidiaries, improved business, increased operational efficiencies and prudent cost management. Oigara said: “Our massive regional expansion programme is finally paying off and we are currently reaping the benefits of prudent cost management.” He released the results in Nairobi on Thursday. According to Oigara, the company now has its sights cast on the long term

growth trajectory which will include creating more efficiency at the subsidiaries and product diversification to match changing customer needs and lifestyle. According to the group’s unaudited financial statements, net interest income grew 12 percent while fees and commissions increased nine percent during the period under review. Oigara said the improvement in earnings from fees and commissions was as a result of increased transactions related to mobile banking, money transfer and agency banking during the period.

CUSTOMER CARE: The Bank aims to match the customer needs

and proposed to explore other options including talking to the rebels themselves. But President Paul Kagame described the call for Rwanda to negotiate with the Democratic Forces for the Liberation of Rwanda (FDLR) as “utter nonsense.” Rwanda asked Tanzania to apologize, but Tanzania through the Minister for Foreign Affairs and International Cooperation Mr Benard Membe said it was not going to apologize “because Kikwete’s advice was given in good faith.” In that same spirit, President Kikwete also urged Uganda’s President Yoweri Museveni to talk to the Allied Democratic Forces and the National Army for the Liberation of Uganda. He also asked DR Congo’s President Joseph Kabila to talk to the M23 rebels and other forces operating in Eastern Congo. The FDLR militia draws most of its members from those who participated in the 1994 genocide. The Tanzania, Malawi border dispute involves the own-

ership of Lake Malawi that extends in both countries. Malawi announced late last year it had begun oil exploration on Lake Malawi (Nyasa) but Tanzania alleged the exploration extends into its half of the lake. However, Malawi continues to dispute Tanzania’s claim of ownership of part of the lake. The two countries referred the matter to SADC Forum of Former Heads of State and Government, which is headed by Mr Chissano. When Kikwete approaches Museven, Tanzania has already lost one major general. A report from Goma says a Tanzania military officer has died and five Tanzanian and South African UN peacekeepers have been wounded near Goma in the eastern Democratic of Congo. DRC armies and UN troops are engaged in fierce battles against the M23 militia. According to the UN, a UN peacekeeper was killed and five were wounded last week during fighting with the M23 militia in the eastern DRC.

Leaders sign pact to free border movement BY HUMPHREY LILOBA MOMBASA, KENYA--It may soon take only an identification card for residents of the East African Community to travel to any member country. This will ease trade and integration and boost the movement of human capital in the region. Kenya’s Uhuru Kenyatta, Uganda’s Yoweri Museveni and Rwanda’s Paul Kagame have signed a pact that could herald this possibility. The other two members Tanzania and Burundi are expected to sign the pact as well. The development is aimed at ridding the regional of travel barriers. An effort to boost integration, trade and movement of labour and capital in line with the tenet of the EAC Treaty. The Presidents were meeting in Mombasa last week during the regional infrastructure conference. Issues discussed included the development of roads,

Uhuru Kenyatta, Kenyan President rail and customs. The member countries have already agreed to invest some $18.8 billion in high speed railway. Other documents that could be accepted under this arrangement include voter’s identity cards and students identity cards. “It is about time we removed all the colonial boundaries that isolated our people and unlock the potential that lies in the EAC,” Kenyatta said. Currently, Kenyans travelling to any of the EAC countries require either

a passport or a temporary pass from immigration. The new law could take effect by January 2014 as line ministers in the involved countries have been asked to finalize the finer details by October this year. “We are confident that apart from the general trade in goods and services, residents of the member countries will increase tourism engagements within the region. As leaders, we are committed to causes that improve the living standards of our people,” said Kagame. But even as the development takes shape, pundits are curious about the conspicous quietness of Burundi and the absence of Tanzania from technical meetings in regards to regional integration. In a thinly veiled attack on the two countries, Museveni said the integration dream would materialize despite hitches and barriers in its way. The summit was a followup of a forum held in Entebbe two months ago.

East african BusinEss WEEk • SEPTEMBER 2 - 8, 2013

NEWS

WHO marks 50 years in Burundi BY RENOVAT NIMBONA BUJUMBURA, BURUNDI--Burundi’s Second Vice-President, Gervais Rufyikiri, has asked the World Health Organisation (WHO) to increase its assistance to the country and hailed the 50 years cooperation between Burundi and the WHO. Officiating at the anniversary, Rufyikiri paid tribute to all WHO representatives past and present, and especially to the late Dr. Kassim Manlan, for having worked for the consolidation of relations of cooperation and the promotion of the health of the Burundian population. Events took place at the National Institute of Public Health premises. In his speech, the Second Vice-President said the government welcomes the excellent relations of cooperation between Burundi and the WHO since 1963. He congratulated the interim Representative of the WHO Office in Burundi, Dr. Babacar Drame, and staff on the Golden Jubilee. Rufyikiri said the celebrations gives an opportunity to evaluate state of implementation of the mutually agreed objectives. It also highlights the constraints and thus set the new perspectives in order to allow a better accomplishment of the mission of promoting the health of the Burundi people. In order to get to the highest possible level of health for Burundians, he pointed out that the WHO has been working towards this and has already performed visible and laudable actions. These have focused on support to the health system, intensifying the fight against various diseases and promotion of health of the mother and child. Rufyikiri said he was pleased with the

positive health results achieved through WHO support. He spoke of the reduction in infant and maternal mortality and good vaccination coverage for epidemic deseases. He said Burundians today are living longer, with life expectancy of 51 years in 2012 against 43 in 1963. The infant mortality rate of less than one year fell about 40% from 1963 to 2013, from 146 deaths per 1000 in 1963 to 86 per 1000 in 2012. Moreover, he mentioned that the Government of Burundi note with satisfaction that smallpox has been eradicated worldwide through the work of WHO and polio, measles, neonatal tetanus, leprosy, river blindness are being eliminated and eradicated. The Second Vice-President of the Republic told that improving health remains a top priority of the government which considers the interrelation between the health of the population and the implementation of projects and social and economic development programs found in the Poverty Reduction Strategy Paper, the second generation (PRSP II) and ‘Burundi 2025’ vision. In this context, since 2005, many health facilities were built throughout the country by the government and its people through community development work and material and financial support of Burundians, the government and development partners. In comparison, during the early beginnings of WHO activities in Burundi, the country had 109 health posts, clinics and 17 hospitals in 1964. In 2012, Burundi has 851 health centres and 68 hospitals. The Second Vice-President reminded all Burundians, the solidarity in health care through the use of Medical Assistance Cards (CAM), to be treated in health care structures and completely abandon the use of traditional healers, promote cleanliness in the household, cleanliness of body and

Second Vice-President, Gervais Rufyikiri, presides over the 50th anniversary of the World Health Organisation presence in Burundi. clothing to prevent disease of dirty hands, and the interest of a balanced diet for good health.While praising for the progress that has been made in this health area, he also recognized that challenges remain and require the support of partners and WHO as chief to overcome them. In this regard, he noted that the Burundian people would be happy to see his life expectancy at birth increased to medium term from 51 years today to 60 years by 2025, and more in 50

Business Skills top performer

years.The Second Vice-President asked WHO during the second half of the century, the increase and diversification of its support to remove the many challenges that limit the realization of health situation as defined by WHO. He reiterated the commitment of the government to ensure always marked by frank cooperation and mutual understanding prerequisite for the implementation of key WHO goals.

Geita miners to get loans BY LEONARD MAGOMBA

A Director and founder member of East African Business Week, Godfrey Ivudria, emerged third out of 16 participants in a recently concluded 14-week Business Skills Development Program. Organised by the Business Development Center, the program included modules on entrepreneurship, marketing, finance, human resource management and general operations.

GEITA, TANZANIA – Small scale gold miners in Geita in the northwest Tanzania will soon start accessing loan from investment aimed to turn their business into proper way. Most of the small scale gold miners in Geita are being forced to act illegal mining due to lack of surveyed space as well as lack of enough working capital to enable them operate in a modern way. “The issue of loans is something very dear to these small-scale miners and their increased pressure is helped in speeding up the process,” the Geita Resident Mines Officer and Inspector of Mines and Explosives, Eng. Juma Sementa said. He told a team of journalists from Ghana, Tanzania and Uganda, who travel to Geita as part of their training on oil, gas and mining that they are now in talk with TIB Development Bank to end the said financial crisis. “We expect the loan will be disbursed before end of December this year taking into consideration we are now in

the final talk to conclude the deal with bank,” he said. Sementa said the Geological Survey has already conducted a survey within the allocated 673.5 hectares for small scale miners in Geita District, the home of Gold in the country, “we found between 40 to 50 hectors with gold deposits.” Eng Sementa said, they have decided to boost their working capital so as to enable them work proficient to the earmarked 50 hectors that found with gold deposits. As part of this progress, the authority has already issued primary mining licences to 681 small scale miners in the area. However, some of the small scale miners, Juma Rashidi said they been promised about the said loan for many years but nothing has been done. “We are slowly getting convinced that it’s only a ploy to get our votes and so we will only get excited when the loans are in our pockets,” he said. Minister for Energy and Minerals Prof, Sospeter Muhongo was recently held a meeting with artisanal and small scale miners in Dodoma to learn about the challenges they encounter while conducting their activities.

East african BusinEss WEEk • SEPTEMBER 2 - 8, 2013

BANKING

Regulator switches off phones BY EMMA ONYANGO KAMPALA,UGANDA-The next time you call a particular number and it is not allocated on a given network, then it could be that that person’s SIM Card has been deactivated. This is because the three month extension period that had been allocated for data validation and registration of unregistered SIM cards in May 2013, officially ended on over the weekend (August 31, 2013). In a press briefing in Kampala last week, Security Minister, Muruli Mukasa said that as a result, all unregistered SIM cards will have to be deactivated. He argued that enough time had been allocated for the exercise and that there was no good excuse for those unregistered SIM cards to remain operational. “The requirement for registration of SIM cards by service providers is an-

chored in the Regulation of Interception of Communications Act 2010. It is therefore mandatory,” he said, adding “I want to underscore that the overarching purpose for SIM card registration is to make communication safe in light of ICT advancements and associated risks globally.” Earlier on, Eng. Patrick Mwesigwa, the Director of Technology and Licensing

at the Uganda Communications Commission (UCC) had stated that they were implementing a law on communication that was agreed upon jointly by the East African Countries and so “We must be serious this time and switch off by August 31.” Registration of SIM cards commenced on March 1, 2012 and was supposed to have concluded on March 1, 2013 but the deadline was

extended to July and then again to August 31, 2013. Eng. Godfrey Mutabazi, the Executive Director UCC however assured the press that there would be no extension this time and that all unregistered SIM cards on the market would be deactivated. “Bearing in mind that majority of Ugandans are now registered, I can assure you that there will

be no more extensions for registration. But if your SIM card is deactivated, you can still go back to your mobile service provider and request for the same number.”According to the regulator, by last week 92% of the total mobile subscriber base had been registered with the other 8% comprising inactive SIMs. In the EAC, Tanzania, Rwanda and Kenya have completed the registration

of existing SIM cards. In a related development, the UCC is studying the possibility of introducing mobile number portability onto the Ugandan market. “We are still doing a study on this and we have moved quite a lot. Once the stakeholders are contacted and we have a position, we shall then let you know. So give us a few weeks or months, we shall definitely make a pronouncement,” the Executive Director, Mutabazi told the East African Business Week last week. Mobile number portability (MNP) enables mobile telephone users to retain their mobile telephone numbers when changing from one mobile network operator to another. In East Africa, Kenya introduced the service in March 2011 but the uptake of the service is very low given its technical hitches. roblemschallenges and majority subscribers have opted to still own multiple SIM cards.

BANK OF UGANDA

TENDER NOTICE No: 005/PU/MOD/013-014

1. The Ministry of Defence invites qualified bidders to submit bids for the following tenders: a. Supply of stationery; b. Supply of IT & electronics equipment; c. Supply of Generator Consumables and Spare parts; d. Supply of printing consumables; e. Supply of kitchen utensils; f. Supply of spare parts; g. Maintenance of swimming pool; h. Supply and installation of window blinds. 2. Bidding document may be obtained from the Ministry of Defence’s Procurement Office PO Box: 23 Kigali-Rwanda; Tel: 0788478908; E-mail: pu@minadef.gov.rw, emmenuel.rutebuka@minadef.gov.rw upon presentation of proof of payment of a non refundable fee of Ten thousand Rwandan Francs (10,000 Rwf) for each tender on Account Number 120 00 46 (NFRA) in BNR. 3. There will be a compulsory site visit scheduled on 17/09/2013 at 11h00, at RDF/ MOD building to visit where window blinds shall be installed and at Rwanda Military Academy (RMA) Gako & Combat Training Center (CTC) Gabiro to visit swimming pools to be maintained.

4. Well printed bids properly bound must be submitted in 04 copies of which, one of them should be an original and 03 copies conforming to the original. The submission of bids in sealed envelopes must be addressed to the Ministry of Defence’s Procurement office before 09h30 am local time on 02/10/2013. Late bids shall be rejected. 5. The opening of bids will take place on the same date of submission of bids on 02/10/2013 in a public session from 10h00 am local time in the conference room of the MoD’s Procurement office respectively as tenders are ranked. 6. Any information regarding the aforementioned tender may be obtained by any interested bidder through a written letter addressed to the MoD’s Procurement Office at the address mentioned above not later than 14 days before the deadline for submission of bids. 7. Done at Kigali, on 29/08/2013. Joseph RUTABANA Col Permanent Secretary

37/45 KAMPALA ROAD, P.O. BOX 7120, KAMPALA; Telephone: 256-414-258441/6, 258061, 0312-392000, 0417-302000. Telex: 61069/61344; Fax: 256-414-233818 Web site: www.bou.or.ug E-mail address: info@bou.or.ug

OPEN DOMESTIC BIDDING. TENDER FOR DRUGS AND MEDICAL SUPPLIES UNDER FRAMEWORK CONTRACT ARRANGEMENT Procurement Reference Number BOU/SUPLS/13-14/00011 1. Bank of Uganda has allocated funds within its budget for procurement of Drugs and Medical Supplies for the Bank of Uganda Clinic. 2. Bank of Uganda now invites sealed bids from eligible bidders for supply of Drugs and Medical Supplies described as Lots 1 to 6 in the Bid Document. 3. Bank of Uganda will issue Call-off Orders” to the Successful Bidders for the purchase of specified quantities of Drugs and Medical Supplies under Framework Contract arrangement. 4. Interested eligible bidders may obtain further information from The Procurement and Disposal Unit, Bank of Uganda Headquarters, Ground Floor and inspect the Bid Documents at the said Unit from 8.30 a.m. – 4:00 p.m or at the Bank of Uganda Website: www.bou.or.ug 5. The Bid document in English may be purchased by interested bidders upon payment of a non-refundable cash UGX.50,000 (Uganda Shillings Fifty Thousand only) from the Banking Hall at Bank of Uganda Headquarters. The Bid Documents are obtainable up to 3.00 p.m of Monday 9th September 2013.

6. Bid submissions labelled “tender for supply of Drugs and Medical Supplies to Bank of Uganda” must be delivered to Bank of Uganda Headquarters, Procurement and Disposal Unit, Ground Floor at or before 19th September 2013 at 3:00p.m (local time). Late Submissions shall be rejected. All Submissions will be opened in the presence of bidders’ representatives, who choose to attend at the address below at 3:10 pm on 19th September, 2013. 7. The Planned Procurement Schedule (Subject to changes)is as follows; Activity

Date.

Bid notice

29th August 2013

Last day of Sale of Bids 9th September 2013 Bid Closing and Opening

19th September 2013

Evaluation Process

23rd September 2013

Announcement of Apparent Winners

15th November 2013.

Alterations shall be communicated to Bidders through Bank of Uganda website (www.bou.or.ug). MANAGEMENT August 30, 2013

East african BusinEss WEEk • SEPTEMBER 2 - 8, 2013

EDITORIAL

EAST AFRICAN

Tanzania sets right example Drug trafficking in East Africa remains a very serious issue. It sometimes overlooked by the much of society but encouiraged by a selected few because of tthat the huge sums involved cause many to pretend it is not a huge problem.

It is a huge problem when you consider the potential health and sTt

The Tanzania government has decided to no longer treat ministers and ambassadors as special people at airport security check points. Their baggage will also be checked like everybody else. This is in a bid to stem drug trafficking which is reaching notorious levels and causing much public concern. The government is trying to adopt every counter measure so that this scourge does not worsen. Tanzanian news reports recently highlighted cases where prominent people have been tied to the trade. In bearing down on the privileges of Very Important People (VIP), the government of President Jakaya Kikwete is sending a message that there are no untouchables in the war against drug trafficking. Taking into account the large profits that the illicit drugs business offers, some VIPs have been easily hooked. Some have frequently abused their VIP status and tied up deals with the unscrupulous people involved in this unfortunate trade. The government has also moved in on personnel at the main airports who are suspected of abating the business. These drugs ruin lives, especially young people, both physically and mentally. There should be no precaution too excessive and the VIPs must not complain too much when one looks at the big picture. With globalization, drug problems are now becoming both relevant and recognized in developing countries. Recent studies on the drug scene in Africa have shown that the use of traditional ‘hard drugs’ (cocaine, heroin, and methamphetamine), have created destructive addictions. For example in South Africa, the impact of hard drugs, has caused epidemics of crack and mandrax which have devastated many urban areas. Desire and desperation for the drugs has fueled the growth of urban gangs and compelled some addicts to engage in the highly risky commercial sex trade. Experts say this situation offers a window into the sort of destructive drug culture that may emerge in Africa in the coming decades if no counter steps are taken. Africa is now a recognised transit route for drug dealers intent on shipping their lethal product from South America into western Europe, where the profits are relatively huge. However that can change. The World Bank says subSaharan Africa has the ‘fastest growing middle class in the world’. According to one report, the emergence of a dynamic middle class in Africa promises to make the continent a prime market for a host of goods – ‘it is nearly unavoidable that globally popular narcotics, such as cocaine, meth, and heroin, will be amongst them’. The reputation of Tanzania is also at stake here. Can the country risk being closely associated with something so negative as drug trafficking that can impact badly on the lucrative tourism industry? Yes, it is probably true that some tourists take these drugs, but that does not mean the government should condone this behavior or the trade. Critics may say the new measures are a token gesture and the smugglers will find alternative routes. And of course the smugglers will always tout the rewards of being successful in this trade, big house, big and fancy car and a host of hang-ons, including beautiful women. But the downside is much more frightening. Drug abuse and peddling has no positive effects other than creating people who are more often than not susceptible to crimes and violence. Something therefore needs to be done to make the youngsters understand that Tanzania deserves enterprising young people and not drug peddlers and loathers.

Hundreds head to Kenya for regional power deals BY HUMPHREY LILOBA NAIROBI, KENYA-During the two days of September 10th and 11th, hundreds of people will be in Nairobi for the 15th East African Power Industry Convention. (EAPIC). The theme is: ‘Security East Africa’s energy future through private sector participation’. Early last month the Principal Secretary in the Energy ministry, David Chirchir said: “More than 500 power professionals will attend the 15th annual EAPIC which will address the various challenges in the region’s power industry, including unstable and unreliable electricity supplyw which is hindering economic growth.” He said talks will also cover the high demands being put on already aged infrastructure which is a major reason for frequent blackouts. All the countries in the region share a common problem. The demand for electricity is racing at a pace none of them can comfortably cater with. Aware of the opportunities emerging with sub-Saharan Africa’s thirst for energy, several leading companies will be represented in Nairobi. Ready to talk will be a host of top regional government officials involved with this sector. ‘We are so pleased with the top level input and support this year from the Kenyan government and utility industry as power sector developments will drive the economy forward through partnerships between the public and private sector,” the EAPIC Programme Director, Christa Robijn said last month. She added; “Not only will the Cabinet Secretary, Davis Chirchir, deliver the keynote address but along with Mr Maswi, the Permanent Secretary, will join Uganda’s minister of Energy, Engineer Irene Muloni, and other regional ministerial dignitaries in a

POOR READING LIGHT: Across many parts of rural Kenya electricity is a luxury panel discussion during the opening session,” she said. The Convention also comes soon after President Barrack Obama was in Tanzania where he launched the Power Africa Initiative. The United States government is pulling together $7 billion to help pay for new energy projects. Another $9 billion is coming from the private sector; from companies like GE. Jay Ireland, the President and CEO of GE Africa was quoted last week in the media as saying, “The East Africa region is experiencing steady economic growth thereby increasing the need for an improved infrastructure and access to world class technological solutions. These needs can be partially and in some instances fully met by GE’s diverse technologies, services and solutions in key sectors.” GE is also a major sponsor of EAPIC. In Tanzania, GE recent-

ly signed a 400MW Joint Development Agreement with Symbion Power Tanzania for the development of a natural gas-fired power plant for Tanzania Electricity Supply Company. Robijn said: “The Kenyan utility and business sectors are also giving us great support, this includes the official endorsement from Kenya Electricity Transmission Company, KenGen, the Kenya Investment Authority as well as the Energy Regulatory Commission while Kenya Power as host utility is an important sponsor too.” According to the African Development Bank, sub-Saharan Africa’s power sector is facing many challenges, mainly due to insufficient generation capacity which has limited electricity supply, resulting in low access. The main obstacle to the increase in electricity generation capacity is the high cost of producing electricity, forcing governments to sub-

sidize consumption. In 2010, the average effective electricity tariff in Africa was $0.14 per kilowatt-hour (kWh) against an average of $0.18 per kWh in production costs. Consumption is effectively subsidized, but with significant disparities among African countries. For example, while electricity tariffs in South Africa and Zambia are among the lowest in the world, prices in Djibouti and Gabon are among the highest globally. AfDB says African countries should adopt efficient schemes of electricity pricing in order to foster the development of a viable and well-functioning power industry. The average tariffs in Africa are much higher than in other developing regions. For instance, in 2010, the average effective tariff in South Asia was US $0.04/ kWh, while that for East Asia was US $0.07/kWh.

East african BusinEss WEEk • SEPTEMBER 2 - 8, 2013

LETTERS & PERSPECTIVE IMAGE OF WEEK

PERSPECTIVE

Swedes try out Ethiopian option BY SIMON ALLISON

A swarming success for Marenda Schipper and Patrick Boelsterli who recently showed off their bee beards at an annual competition at Clovermead Adventure Farm in Aylmer, Ontario, Canada.

Nothing sinister in Kenya notes

Well done RRA for mobile use

Tourism VAT does not make sense

Editor, In your story last week, it was inferred that Kenya maybe lukewarm to the proposed East African Monetary Union, because it is coming out with new currency notes soon. I doubt it! It has to be remembered that Kenya has recently come out of a General Elections pegged on the new Constitution. Granted, there have been some hiccups here and there, but I would think that Kenyans would not mind marking the important event with new currency notes. The fact that these notes would not have the portrait of any past or living president is also something that should be celebrated by Kenyans. It shows a new found faith in institutions rather than personalties as was the expected case in the recent past. Finally, when the Monetary Union does come into effect, it is most likely there will be a long tranistion period before we can talk about one common shilling. Question: what would the countries be using in the meantime?

Editor, Most hardworking people have little problem about paying their taxes. I think the issue is when you make the payment procedures cumbersome and bureaucratic then many of us feel punished and frustrated. Therefore, the recent launch of the mobile tax declaration for SMEs by the Rwanda Revenue Authority is very welcome. It comes at a time when most business people were getting challenges in tax declaration. Previously, one had to close the business or ask a person to keep around then to line up for declaration at revenue offices. Because most of the business owners single- handedly run these business, closing your business would mean a loss. I believe that paying taxes via mobile phones will help us also save time, costs and icnrease our turnovers. However, there is need to ensure that the system is userfriendly. Otherwise it will require us to go through another task of acquainting ourselves with it.

Editor, When your tax base is very narrow, the temptation to overly strain certain sectors is unavoidable. I would like to think that this was behind the finance minister’s imposing the 18% VAT on accommodation that saw some tourists cancel their bookings. Now that the government has reversed that decision, it is important that we sit down and discuss how important tourism is to the national economy. As a special hire operator at Entebbe airport, many of us get to hear the first reactions of tourists on arrival. The ones with money, usually have vehicles waiting for them. So we cater for the rest. In my 10 years in this job, I have learnt that most of the tourists who come here, do so because it is a big wish, requiring saving their money over time. Most are young and economical. They are also the ones who most likely to tell the world of their experiences both good and bad via blogs etc. Let us appreciate this point.

Alice Kamau Nairobi, Kenya

Jean Paul Mbonimpa Nyabugogo, Rwanda

Habib Otieno Entebbe, Uganda

Dirt-cheap manufacturing has fuelled Asia’s majestic growth over the last few decades, but all good things must come to an end. With Asia getting more expensive, western companies are looking for alternatives. In Ethiopia, Swedish clothing giant H&M thinks it has found one. Is this the beginning of Africa’s manufacturing boom? No one really wants to make things in Africa. This is a generalisation, but it’s a fair one. As a rule, African countries are not known for their manufacturing prowess, and there are a couple of good reasons for this. There’s the image problem, for a start. Too often Africa is seen as a continent of conflict, corruption and instability, none of which are conducive to longterm big capital investments. Then there’s the competition: Asian countries, particularly China, India, Bangladesh and Vietnam, have perfected the art of producing things in the fastest possible time at the lowest possible price. These countries make most of the world’s stuff, and have fuelled their own growth in the process. Quite simply, manufacturing in Africa is more expensive than elsewhere, and when it isn’t, it is perceived as too risky. But the times they are a-changing. With the general increase in Asia’s prosperity has come an increase in the cost of doing business there and suddenly western companies – grown fat on the spoils of underpaid (some say exploited) labour – must look to new destinations to keep up their supply of cheap stuff. It is in this context that the clothing megabrand H&M announced it was looking to source clothes from Ethiopia. According to the Wall Street Journal, which broke the story earlier this month, the Swedish company plans to source a

million garments a month from the East Africa country, and largescale production could begin as early as September. “As a growing global company we have to look at how we guarantee that we have the capacity to deliver products to all our stores where we have a rapid pace of expansion,” explained H&M spokeswoman Camilla Emilsson-Falk. “We are doing that by increasing production in our existing production areas and also by looking at new ones.” For the Ethiopian government, this is vindication of a concerted policy to grow the country’s garment manufacturing sector, which it has identified as a key source of growth, setting an ambitious target of $1-billion in textile exports by 2016. To put this target in perspective, the textile export figure was just over $60-million in 2011, and that was nearly triple the output of the year before. To encourage growth in the sector Ethiopia is offering tax breaks and competitive interest rates, and has tried to cut through some of the red tape which made it hard for foreign companies to set up in Addis Ababa. So far, it’s working. H&M follows in the footsteps of supermarkets Tesco and Walmart, which have both started sourcing clothes from Ethiopia.They’re attracted by the low cost of doing business in Ethiopia, which is estimated at a little over half as much per unit as in China (as per 2011 statistics, which are the most recent). And by Ethiopia’s security, which has forged a reputation as a stable, efficient government that’s pushing hard to meet development goals. For years, the development of a healthy manufacturing sector to rival Asia’s has been seen as key to African economic growth. And this would be more sustainable growth than the resource boom, which has been responsible for the continent’s respectable growth statistics over the last few years. It would also be more inclusive growth. more skills training.

THE VIEWS EXPRESSED ON THIS PAGE ARE NOT THE VIEWS HELD BY THE MANAGEMENT OF EAST AFRICAN BUSINESS WEEK W rite your letters to the Editor East African Business W eek, P.O Box 7 17 7 1, K ampala, Uganda.

Telephone: + 256- 41- 4531345/ 7 or + 256- 31- 227 5141. FAX: + 256- 41- 4531346.

Nairobi: + 254 20 829063; Dar es Salaam: + 255- 222460645;

K igali:+ 250 504,165; Buj umbura:+ 257 7 9 453132; 0r email them to info@ busiweek. com editor@ buiweek.com

East african BusinEss WEEk • SEPTEMBER 2 - 8, 2013

TRANSPORT

DHL boss checks Nairobi BY HUMPHREY LILOBA NAIROBI, KENYA-DHL Express is in pole position to seize emerging EAC business opportunities. Leading international express and logistics company, DHL Express, has identified East Africa and particularly Kenya, as a key zone for growth within SubSaharan Africa. This is according to Charles Brewer, Managing Director of DHL Express Sub-Saharan Africa, who was in Nairobi recently to meet with local government, key role players, customers and the media. “For the past three years, the East African community has sustained high GDP growth, outpacing other Sub-Saharan Africa countries and weathering the global recession,” notes Brewer. “According to sources like the United Nations Economic Commission for Africa (UNECA), the region is set to post an economic growth rate of 6.3% in 2013, up from 5.7% in 2012.”Kenya, which is already the logistics operator’s hub for East African trade, is well-poised to continue its dominant role within this growth as economists have predicted that the country will grow at 5.4% this year; a sharp increase from 3.8% last year. The country also remains an engine for East Africa growth, as it cites Uganda, Tanzania and Sudan as

TATA introduces Prima BY PAUL TENTENA

A DHL staff member looking at the percels to be delivered. some of its top export markets. The country will therefore benefit from the strong economic growth in these markets, further strengthening the East African bloc. However, while the future seems bright, there are undoubtedly larger macro-economic and legislative issues that could hamper growth. “We are always positive about the outlook for business in Kenya,” says Alan Cassels, Country Manager for DHL Express Kenya. “But we also know that the country’s status as the entry point for East Africa could be under threat.” He continues, “Typically, investors saw Kenya as a stable political and social environment, in contrast to other countries in SubSaharan Africa. However,

Africa has evolved significantly in the recent past and other countries could be seen as more robust and, at times, easier to do business with. Markets like Rwanda are becoming increasingly attractive as they minimize legislation, paperwork and processing, making it easy to do business and move goods.” Cassels also cites the lack of development in Kenya’s small to medium enterprise (SME) sector as a challenge, yet one that could provide a major area of growth across all sectors. The courier company is doing significant work in increasing connectivity for SMEs, helping them to understand the paperwork, legislation and expertise needed to grow beyond Kenya’s borders.

“While we are lucky to have significant investments from multinational companies in Kenya, we also depend on the SME sector. We know the challenges for these businesses – access to finance, resources and talent. At DHL we are trying to do our part, boosting imports and exports and therefore increasing their attractiveness to both East African and global businesses,” Cassels said. He concludes, “We would like to encourage our counterparts in both the private and public sector to make a commitment to these businesses, injecting new growth and capital into the economy, and creating opportunities for people across the business spectrum.”

Qatar adds 4 for Nairobi NAIROBI, KENYA—Qatar Airways has added four flights on its Doha-Nairobi route effective this month. East African Affairs, Commerce and Tourism Cabinet Secretary, Phyllis Kandie, welcomed Qatar Airways’ decision to increase the number of flights from Doha to Nairobi. According to a press release last week, Qatar Airways will now operate 18 weekly flights from Doha to Nairobi. This is to take advantage of the growing volume of passengers visiting East Africa and increase cargo capacity. The four additional weekly flights for Qatar Airways’ A320 aircraft will fly in and out of Nairobi on Friday, Saturday, Sunday and Tuesday. Monday, Wednesday and Thursday will retain two daily flights.

KAMPALA, UGANDA- After its successful launch in India in 2011, TATA Uganda has launched their signature ‘Prima Truck’ a commercial transportation vehicle. The company is a subsidiary of TATA, who also own the famous Jaguar and Range Rover brands. “For traders and transporters engaged in long haulage carriers from Uganda to destinations like Mombasa or Cairo that have been uncertain about safety of their merchandise in transit needn’t worry anymore,” Shalendra Kundra, the Executive Director of TATA Uganda said last week. The Prima range offers several applications to meet varied end users requirements making it an indispensable asset for transporters, car carriers, miners and construction that operate small or large fleets. It includes tractor-trailers and tippers. It also has features that include new generation brakes, ABS (anti-locking braking system) and specialized axles for heavy duty and high speed functioning. “The Prima truck, can pull a 40 feet container, it comes with two fuel tanks totaling 680 litres, have an American gearbox ZF alongside 380 horsepower, an on-board computer modern features like GPS, air conditioning, 4-way adjustable driver and co-driver

seats,” Kundra said. Kundra said the driving comforts allow the driver to operate without getting too tired over long distances each day, thereby offering faster turnaround time. “TATA Uganda has already equipped its service department to support the Tata Prima range. Effective today (27thAugust 2013 and September 26), the Prima will be sold at a discount of $5000 coupled with attractive financing schemes,” Kundra. The initial buying price for the Prima truck will be $95,000 between the months, but the $5000 discount will be reinstated after September 26 this year. The total Prima cost is $100,000. Kundra said besides focusing on the mechanics, the Tata Prima 4938S boasts of driver comfort which includes air conditioned cabin with reclining seats, arm rest and an adjustable steering wheel. “There are several variants in the prima range which include tippers, tractor heads in various configurations suited for a diverse range of applications. “It is equipped with a data logger that helps measure vehicle performance and driving along long journeys,” said Kundra. It has got two sleeper bunks with an ambience control system near the bunks for controlling conditions within the cabin during sleep. On a well paved road, the Prima Truck can travel a distance of 2200km in 2 and a half days.

Qatar airways As a key hub for Central and East Africa, Nairobi plays a vital role in the tourism and export industries which are key contributors to Kenya’s economy. As international and domestic visitor arrivals in to Nairobi continue to grow, demand for transport

routes is increasing. The increased passenger capacity will positively contribute towards a rise in tourist arrivals thereby helping to spur Kenya’s economic growth and further realize the goals set out by Vision 2030.

TATA lorries being supervised

East african BusinEss WEEk • SEPTEMBER 2 - 8, 2013

THE REPUBL I C O F TANZ ANI A

ISO 9001: 2008 Certified I NV I TATI O N FO R BI DS FO R THE SUPPL Y O F O FFI C E FURNI TURE, C O MPUTER HARDW ARE & SO FTW ARE AND MAC HI NES FO R HO RO HO RO AND SI RARI O NE STO P BO ARDER PO ST SI TES 1. The United Republic of Tanz ania has received funds from Development Partners toward the cost of East Africa Trade and Transport Facilitation Project, and it intends to apply part of the proceeds of this credit to payments under the contract for the Supply of Office Furniture, Computer Hardware &Software and Machines for Horohoro and Sirari One Stop Boarder Post Sites. 2. The Tanz ania Revenue Authority (TRA) now invites sealed bids from eligible and qualified bidders for the supply of office equipment as follows: L ot No. 1

Description of Goods

Physical unit

Executive Chairs

Each

Executive Tables

Each

Office hairs

Each

126

V isitor Chairs

Each

100

Office Tables

Each

Cluster Tables

Each

Filing Cabinets

Each

Compactors

Each

Counter Chairs

Each

Conference Table with chairs Sofa Set 2

Quantity

Photocopy Machines

Each

Fax Machines

Each

Spiral Binding Machines

Each

Paper Shredders

Each

Safe

Each

Personal Computers

Each

107

UPS-1KV A

Each

107

UPS-3KV A

Each

Heavy Duty Printers

Each

Scanners

Each

aser et Printers-Medium

The above items constitute of THREE L O TS and bidders are allowed to quote for lot one, two, three or all lots. Bidders must quote for all items and quantities in a lot. Bids not quoting all items and quantities in a particular lot will be considered non – responsive for the respective lot and rejected. 3. Bidding will be conducted through the National Competitive Bidding (NCB) procedures specified in the orld Ban ’s uidelines: Procurement under BRD oans and D redits and is open to all bidders from ligible Source ountries as defined in the uidelines. . nterested eligible bidders may obtain further information from Tan ania Revenue uthority and inspect the bidding documents at the Address given below from 08.00 to 17.00 hours (Monday to Friday) exclusive of public holidays. . ualifications requirements include among others the following: i . Bidder shall furnish documentary evidence to demonstrate that During the past five

(5) years, the bidder must have completed at least two (2) successful contracts involving supply of related office furniture office machines or computer equipment of similar functional/technical characteristics and of a comparable scale. ii . Bidders must submit financial statements to indicate its financial capability and demonstrate to have annual turnover of at least 3 times the average annual cash- ow estimated for the proposed Contract. iii .The tenderer must submit other ban documentation such as line of credit summary ban statement to indicate ability to execute the contract if awarded. iv).The Bidder must submit documentary evidence to indicate capability in terms of management and human resource to provide after sales technical support and how they will carry such support in Tanz ania if awarded the contract. f at the time of bidding the Bidder does not have adequate and proven after sale Technical support, then the Bidder shall submit his plans for setting up such facilities in Tanz ania in the event of award of contract, and as to how he proposes to carryout testing and provide after sale technical support services until such facilities are set up in Tanz ania by the Bidder A margin of preference for eligible national contractors shall not be applied. Additional details are provided in the bidding documents. 6. A complete set of Bidding Documents in English may be purchased by interested bidders on the submission of a written application bearing name of the firm e-mail postal address, fax and telephone to the Address indicated below and upon payment of a non refundable fee of T S. 0 000 - Tan ania shillings fifty thousand only or S 0 nited States Dollars fifty only . The method of payment will be by ban er’s cheque ban er’s draft or cash to Tan ania Revenue uthority. The bidding documents will be sent by airmail or courier for overseas delivery and surface mail or courier for local delivery. Tanz ania Revenue Authority will not be held responsible and accountable for any delays or non-receipt of the bidding document. Any authoriz ed person may collect bidding documents from the Address given below. 7. Bids must be delivered to the address below at or before 10.00 hours local time on or before O ctober 03, 2013. All bids must be accompanied by a bid securing declaration in the format provided. Electronic bidding will not be permitted. ate bids will be re ected. Bids will be opened in the presence of the bidders’ representatives who choose to attend at TR Boardroom located at third oor TR eadquarters Building immediately after the deadline for submission and shall remain valid for the period of one hundred and twenty(120) days from that date of bid opening . 8. The attention of prospective Bidders is drawn to (i) the fact that they will be required to certify in their bids that all hardware are Genuine and software is either covered by a valid license or was produced by the Bidder and (ii) that violations are considered fraud, which is, among other remedies, punishable by potential blac listing from participation in future orld Ban -financed procurement. The address referred to above is: 9. The address referred to above is : ommissioner eneral Tanz ania Revenue Authority TRA Headquarters, Room o. 1 round loor So oine Drive Dar Es Salaam, Tanz ania Tel: + 255 22 2119591/ 4, + 255222119638 ax: 2 22 2119 9 mail: secretarytratender tra.go.t info tra.go.t

EAST AFRICAN BUSINESS WEEK . SEPTEMBER 2-8, 2013

NEWS

NDC signs $111m palm oil venture He commended CRDB Bank for issuing loans for processing of sunflower oil to the tune of Tsh9billion ($5.57 million) and requested the bank to continue supporting the industry. Malima said Tanzania has spent Tsh92.11 million ($56,980) in efforts to develop farming of palm oil in Kigoma region. He said about 36.11 million ($22,337) was used to purchase four machines for pressing palm oil and two machines for processing the oil seeds in three wards in the region namely Buhanda, Businde and Kagera. He explained that some Tsh56 million ($34,643) had been used through the District Agricultural Development Programmes to construct a market for palm oil products at Sunuka and Ilagala villages in Kigoma Rural. The Government had in place a strategy to empower oil farmers with technology and business know-how on the cash crop to ensure that they reap considerably from the oil seed.

BY LEONARD MAGOMBA DAR ES SALAAM, TANZANIA-Tanzania is setting up an oil palm farm and processing plant in Kisarawe District, about 70km south-west of the capital Dar es Salaam. The processing plant which will be the first of its kind to be built in the area is a joint venture project between the National Development Corporation (NDC) and the Singapore based, Naval Bharat Pte Limited (NBS). The $111million joint-venture agro-industry project will include the acquisition of some 10,000 hectors of land. Compensation with the current land owners is yet to be completed. According to Nasari, the venture will train out-growers on cultivation of the palm trees, financial support, reliable market and extension services. The project will cater for the production and processing of oil palm in Kimala Misale village. NDC has requested for additional land in Dutumi village in Kibaha District for the same purpose. The memorandum of understanding signed by the NDC Managing Director and Chief Executive Officer, Mr. Gideon Nasari and the NBS Managing Director, Mr. Devineni Ashwin will see NDC having 20% ownership while NBS will hold 80% shares. The memorandum of understanding between the two firms was signed on July 18, 2011. They agreed to collaborate in the establishment of large-scale agroindustry projects in Tanzania. The NBS has conducted a feasibility study for the oil palm project in which viability of the project was confirmed, which was followed by a series of negotiations involving the parties and other stakeholders. “The plantation would be

NDC MD Gideon Nasari (left) signs the agreement as NBS MD Devineni Ashwin (right) looks on fully developed in four years and production was expected to commence in the seventh year,” Nasari told EABW last week. Nasari, said the project envisages the development of a nucleus 8,000 hectare oil palm farm, with an out-growers scheme under contract farming and the establishment of a palm Oil extraction and refinery plant. He said the project will include the establishment of a 2,000 hectare center to support outgrowers in the area. “The project will also support local farmers with market penetration and training on modern farming techniques as well as help our farmers with extension service.” He said preliminary feasibility

studies conducted in the area revealed the project has the potential to generate up to 10MW of electricity from biomass waste collected from the farm. The project will increase the production of high quality edible oil in the country, create employment and generate income for the Government and the promoters. Mr. Ashwin expressed confidence the project will prove to be most beneficial to the country’s agriculture sector. The Kisarawe District Council’s Chairperson, Mr. Adam Mwimba welcomed the project as he says it will be extremely profitable to the community in terms of employment creation and tax

revenue. According to Deputy Minister for Agriculture, Food and Cooperatives, Mr. Adam Malima, plans are underway to increase production of palm and sunflower oil locally in a bid to reduce importation of edible oil. About 200,000 tons of crude oil is imported from Malaysia and other countries in the Far East. Malima said the government would make several interventions including provision of subsidies to improve farming of the oil seeds. He said the Government has over the years increased subsidies for development of palm oil to about Tsh2 billion ($1.24 million) from Tsh200 million ($123,729).

“

About Tsh36.11 million ($22,337) has been used to purchase four machines for pressing palm oil and two machines for processing the oil seeds in three wards in the region namely Buhanda, Businde and Kagera.

States ready for EU-EPA negotiations BY DAVID MUWANGA ARUSHA, TANZANIA--Ministers from t he five partner states of the East African Community (EAC) are getting ready for the joint European UnionEconomic Partnership Agreements (EU-EPA) joint negotiations. This follows a dedicated ministerial session held in Arusha, Tanzania recently. The agreed to make preparations for the negotiations proposed for end of

September 2013 in Nairobi, Kenya. The session chaired by Uganda’s Minister for Trade, Industry and Cooperatives Amelia Kyambadde, was attended by Hon. Phyllis J. Kandie, Kenya’s Cabinet Secretary in the Ministry of East African Community Affairs, Commerce and Tourism, Dr. Abdallah O. Kigoda Tanzania’s Minister of Industry and Trade, Hon. Victoire Ndikumana, Burundi’s Minister for Trade, Industry, Posts and Tourism, Kanimba François, Rwanda’s Minister of Trade and Industry

and their respective senior technical officials. Director General for Customs and Trade at the East African Community Secretariat, Peter N. Kiguta (MBS) urged the ministers to critically analyse the EAC positions under the EPA negotiations with a view to strengthen them so as to ensure the agreements best serves the interests of the EAC region. He said the minister’s agreed on EAC positions on the outstanding issues that included export taxes wand

agriculture that includes domestic support and export subsidies. They also included provisions of the protocol on rules of origin, product specific rules, provisions on institutional arrangements, dispute settlement and provisions and issues submitted by the EU that included good governance in the tax area and consequences from customs union agreements concluded with EU. They will undertake national consultations on diplomatic engagements with the EU member states.

East african BusinEss WEEk • SEPTEMBER 2 - 8, 2013 TANZ ANI A BUREAU O F STANDARDS

NO TI C E TO

THE PUBL I C

L I FTI NG BAN O N SAL E/ DI STRI BUTI O N O F O K I PAL M O L EI N

NO MERO

I TANGAZ O RY ’ I PI GANW A I RANGA I SO K O : No 12/ F/ 2013- 2014/ I O / RNP/ O B

I NY I TO Y ’ I SO K O : I SO K O RY O K UGURI RA PO L I SI Y ’ U RW ANDA I MY AMBARO BI GENDANY E NAY O MU MW AK A W A 2013- 2014

N’ I BI NDI

I NK O MO K O Y ’ UBW I SHY U: I NGENGO Y ’ I MARI I SANZ W E

Tanz ania Bureau of Standard (TBS) wishes to inform the general public that the ban on selling, distribution and use of OKI cooking oil has been lifted. The decision to lift the ban has been reached after thorough investigation which revelled that the product had been counterfeited by some unscrupulous traders. Following this development, TBS in collaboration with the manufacturer from Singapore and the Fair Competition Commission (FCC) have come up with the following strategies: (i)OKI brand will be sold in Tanz ania though a clear distribution channel using an appointed distributor. (ii)Package volume for OKI cooking oil for Tanz anian market will be limited to 10 and 20 litres plastic jerry cans. iii The product will be certified by TBS under the tbs’ mar ertification Scheme to use the quality mark.

(iv)TBS and FCC will collaborate in ensuring that only quality OKI cooking oil enters the market under this new arrangement. This notice does not cover OKI cooking oil which is in volumes of 1, 2, 3, and 5 litres plastic jerry cans which have been tested and proved to be substandard. Conversely, ban on V IKING and ASMA cooking oil has not been lifted as the manufacturers and importers of these products have not shown up and TBS is yet to guarantee their quality in Tanz anian market. For more information contact: Director General Tanz ania Bureau of Standards P. O. Box 9524 DAR ES SAL AAM Tel: + 255222450206 Fax: + 255222450959 E-mail: info@tbs.go.tz

AV I S D’ APPEL S D’ O FFRES (AAO ) TENDER REFERENC E: No 12/ F/ 2013- 2014/ I O / RNP/ O B TI TRE DU MARC HE: FO URNI TURE DES DI FFERENTES UNI FO RMES ET L EURS AC C ESSO I RES A L A PO L I C E NATI O NAL E DU RW ANDA PO UR L ’ AN 2013- 2014

1. Polisi y’u Rwanda ifite ingengo y’imari yateganyiri e isoko ryo kugurira Polisi y’ u Rwanda imyambaro n’ ibindi bigendanye nayo mu mwaka wa 2013- 2014. 2. Polisi y’u Rwanda irahamagarira abacuruz i babishoboye kandi bujuje ibisabwa gutanga inyandiko z abo z ’ipiganwa ku isoko ryo kugurira Polisi y’ u Rwanda imyambaro n’ ibindi bigendanye nayo mu mwaka wa 2013- 2014. Isoko rigabanijwemo ibice bikurikira: Lot 1: Imyenda, Lot 2: Inkweto, Lot 3: Amapeti, Lot 4: Ibindi bigendaye n‘ imyambaro na Lot 5: Amabendera y’u Rwanda n’aya Polisi 3. Igitabo gikubiyemo amabwiriz a agenga iri soko kiri mu cyongerez a cyangwa mu gifaransa kiboneka mu biro by’Ishami rishinz we amasoko muri Polisi y’u Rwanda, Tel 255103353/ 07 88311803, biri mu kigo cya Polisi y’u Rwanda ku Kacyiru, mu minsi yose y’akaz i guhera taliki 20/ 08/ 2013 kuva 7 h 00 kugez a 17 h30, hamaz e kwishyurwa amafaranga ibihumbi umunani na magana ane by’ amafaranga y’ u Rwanda (8,400 Frw) adasubiz wa ashyirwa kuri Konti N° 120.00.46 muri Banki Nkuru y’ I gihugu (BNR); icyemez o cya BNR kigomba kuba cyanditseho amaz ina y’ uwifuz a gupiganwa, nomero n’ inyito by’ isoko. 4. Inyandiko z ’ipiganwa z igomba kuba z iherekejwe n’ingwate y’ipiganwa ingana n’ amafaranga y’u Rwanda cyangwa avunjwe mu y‘ amahanga ku buryo bukurikira: lot 1 (I myambaro): 3,611,000 Frw; lot 2 (I nkweto): 5,338,000 Frw; lot 3 (Amapeti): 101,000 Frw; lot 4 (Ibindi bigendaye n‘ imyambaro): 5,790,000 Frw na lot 5 (Amabendera): 2,082,000 Frw.

5. Ibisobanuro kuri iri soko biboneka mu biro by’Ishami rishinz we amasoko ryavuz we haruguru. 6. Abifuz a iri soko basabwe kuba bagejeje inyandiko z ’ipiganwa z anditse n’imashini mu gifaransa cyangwa mu cyongerez a kandi z ifunz e nez a mu mabahasha ane (umwimerere na kopi eshatu) mu biro by’ I shami rishinz we amasoko byavuz we haruguru tariki ya 10/ 10/ 2013 saa tatu n’ igice z a mu gitondo (9h30). 7. Gufungura amabahasha biz aba uwo munsi tariki ya 10/ 10/ 2013 saa ine (10h00) mu cyumba cy’ inama cy’Ishami rishinz we amasoko ryavuz we haruguru. Inyandiko z ’ipiganwa z ikererewe z iz asubiz wa ba nyiraz o. 8. Inyito y’isoko na Nomero iranga isoko bigomba kugaragara inyuma ku ibahasha ikubiyemo inyandiko z ’ipiganwa. 9. nyandi o ’ipiganwa igomba uba ifite agaciro ’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.

K igali, kuwa 20/ 08/ 2013. AC P Jean Marie TW AGI RAY EZ U Komiseri w’Imari akaba n’Umugenga w’Ingengo y‘ Imari w’Agateganyo

TENDER NO TI C E (TN)/ I NV I TATI O N FO R BI DS (I FB) TENDER REFERENC E: No 12/ F/ 2013- 2014/ I O / RNP/ O B TI TL E O F THE TENDER: SUPPL Y O F DI FFERENT PO L I C E UNI FO RMS AND THEI R AC C ESSO RI ES FO R THE Y EAR 2013- 2014

SO URC E DE FI NANC EMENT: BUDGET O RDI NAI RE 1. a Police ationale a des fonds pour financer la fourniture des diffé rentes uniformes et leurs accessoires à la Police Nationale du Rwanda pour l’ an 2013- 2014. 2. La Police Nationale sollicite des offres de la part de soumissionnaires ligibles et r pondant aux qualifications requises pour fourniture des diffé rentes uniformes et leurs accessoires à la Police Nationale du Rwanda pour l’ an 2013- 2014. Les lots de ce marche sont organisé s comme suit: Lot 1: Uniformes, Lot 2: Souliers, Lot 3: Insignes, Lot 4: Autres accessoires aux uniformes et Lot 5: Drapeaux de la Ré publique du Rwanda et de la Police Nationale. 3. Les Dossiers d’Appel d’Offres ré digé s en Anglais ou en Franç ais peuvent ê tre obtenus au bureau de l’Unité chargé e de passation des marché s au sein de la Police Nationale, Tel 255103353/ 07 88311803, sise à KACY IRU au Commissariat Gé né ral de la Police Nationale, pendant les jours ouvrables dè s le 20/ 08/ 2013 de 7 heures à 17 h30, sur pré sentation d’un bordereau de paiement d’un montant non remboursable de huit mille quatre cent francs Rwandais (8,400 Frw) versé sur le compte N° 120.00.46 ouvert à la Banque Nationale du Rwanda (B.N.R) ; doivent apparaî tre sur ce bordereau le nom du soumissionnaire, le numé ro et le titre du marché . 4. Les offres doivent comprendre une garantie de l’offre de la faç on suivante : lot 1 (Uniformes): 3,611,000 Rwf; lot 2 (Souliers): 5,338,000 Rwf; lot 3 (Pips): 101,000 Rwf; lot 4 (Autres accessoires aux uniformes): 5,790,000 Rwf et lot 5 (Drapeaux): 2,082,000 Rwf ou son é quivalent dans la monnaie é trangè re convertible.

5. Toute demande d’information relative au pré sent appel d’offres peut ê tre adressé e au bureau de l’Unité de passation des marché s, à l’adresse mentionné e ci-dessus. 6. Les offres bien dactylographié es, doivent ê tre remises sous plis scellé s et pré senté s en quatre copies dont un original au bureau de l’Unité de passation des marché s à l’adresse mentionné e ci-dessus au plus tard le 10/ 10/ 2013 à 9h30. Les offres remises en retard seront rejeté es. 7. L’ouverture des offres aura lieu en pré sence des soumissionnaires ou de leurs repré sentants souhaitant y assister, dans la salle de confé rence de l’ Unité de passation des marché s, le mê me j our, le 10/ 10/ 2013 à 10h00. 8. Le titre du marché doit ê tre clairement mentionné sur l’enveloppe exté rieure. 9. La validité des offres sera de 120 jours à partir de la date d’ouverture des offres. 10.L’appel d’offres sera ré gi par la Loi No12/2007 du 27/03/2007 sur les Marché s Publiques. K igali, le 20/ 08/ 2013

AC P Jean Marie TW AGI RAY EZ U Commissaire chargé des Finances et Gestionnaire Principal du Bugdet (a.i)

SO URC E O F FUNDI NG: O RDI NARY BUDGET 1. The Rwanda National Police has received funds for supply of different Police uniforms and their accessories for 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. 2. The Rwanda National Police invites qualified bidders to submit bids for the supply of different Police uniforms and their accessories for the year 2013- 2014 as indicated in detail in the statement of requirements. All lots of this tender were arranged as follows: Lot 1: Operation uniforms, Lot 2: Police jungle boots, Lot 3: Pips, Lot 4: Other uniforms accessories and ot : Rwanda and police ags 3. Tender Documents in English or French may be obtained from the Office of Procurement nit Tel 255103353/ 07 88311803, at the Rwanda National Police General Headquarters Kacyiru, on any working day from 20/ 08/ 2013 from 07 :00 am to 05:30 pm, upon presentation of proof payment of a non-refundable fee of eight thousand four hundred Rwandan francs only (8,400 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 as follows: lot 1 (O peration uniforms): 3,611,000 Rwf; lot 2 (Police j ungle boots): 5,338,000 Rwf; lot 3 (Pips): 101,000 Rwf; lot 4 (O ther unifor s accessories): 90 000 wf and lot ( wanda and Police ags): 2 082 000 Rwf or in any foreign convertible currency. 5. Enquiries regarding this tender may be addressed to the

Procure ent Office at the mentioned address. 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 10/ 10/ 2013 at 9:30 am. Late bids will be rejected. 7. Bids will be opened in the presence of bidders or their representatives who choose to attend at in the conference roo of Procure ent Office at Kacyiru, on the same day 10/ 10/ 2013 at 10:00 am. 8. The Outer envelope should clearly indicate the tender name and title. 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. K igali, on 20/ 08/ 2013

AC P Jean Marie TW AGI RAY EZ U Acting Commissioner for Finance & Chief Budget Manager

East african BusinEss WEEk • SEPTEMBER 2 - 8, 2013

NEWS

Mining hit by in-fighting

Tz gets first private zone

BY ANDREW ZABLON

HANDS ON TOUR: Lokeris inspected several mines ranigng from crude operations to more organised ones

KAMPALA, UGANDAThe Minister of Energy and Mineral Development, Pater Lokeris, has said there is a gap in the flow of information in the entire mining sector chain caused by lack of funds to do sensitization especially in the communities. This has resulted into stakeholders in the sector to clash over different issues like ownership of the mines, issuance of mining licenses, illicit trade, revenue sharing, and corruption tendencies. Because of the limited information related with the mining sector in the country, disputes erupted in western Uganda prompting President Yoweri Museveni to issue an order that halted any mining activities in the district of Buhweju. Oli Gold Muruli Ltd and Aino Hope, which are exploring for minerals in Ibanda, Kamwenge and Buhweju, were affected by the presidential order allegedly for carrying out illegal mining in the district. To bring an end to the problem, Lokeris together with Uganda Chamber of Mines and Petroleum (UCMP), recently toured the mineral-rich areas of western Uganda, to get a first-hand account of the mining going on there. This trip would go a long

way in bringing the grieved parties to talking terms as matters of dispute were brought to table for discussion paving way for a solution. “There is lack of information both here in the communities and at the Department of Geological Survey and Mines, which oversees the technicalities of mining in the country. I think this is why there a lot of mistrust between the community and the miners.” Lokeris said off the original cause of the standoff during the trip in western Uganda. Edwards Katto, the Department of Geological Survey and Mines (DGSM) Ag Commissioner, explained that there was need to understand the mining process by all the different stakeholders for the industry to thrive. In early August, 2013 Buhweju district leaders had compelled President Yoweri Museveni to order any firm or individual involved in suspected illegal mining in the western region to stop. The Buhweju standoff is one of many disputes which are affecting the eruption of the mining sector in Ankole region, western Uganda. “We are very happy to hear that the Minister has calmed the rising tension in the Ankole mining region where some of our members had of late started facing resentment

from the communities they operate in,” said Ms Irene Ivy Nakalyango, the CEO of UMCP. She said such tensions had the potential to hurt investments if not handled early and hoped the minister could tour other mining parts of the country. The UCMP is a body that lobbies government support and promotes the interests of its 110 plus members, all of whom are engaged along the petroleum and mining value chain. John Muruli Muyambi, one of the leading mining investors in the region, noted that the minister’s visit was crucial in dealing with the community’s fears. As an investor, Muruli co-owns Aino Hope Empire with Sino Minerals, based in Mashonga, Bushenyi, his other exploration license under Oli Gold Muruli Ltd (co-owned with Orexy, a Canadian firm) covers Buhweju, Rubirizi, Ibanda and Kamwenge areas. The districts of Isingiro, Ibanda, Kamwenge, Buhweju and Bushenyi in western Uganda are rich in minerals such as gold, tin, lead, zinc, copper, kaolin, limestone, wolfram, silver, among others. Meanwhile Leonard Magomba reporting from Geita, Tanzania, states that Geita Gold Mine (GGM), one of the gold mine producers in the country has received

BY BAZ WAISWA

eight Presidential Awards on Extractive Industry Corporate Social Responsibility and Empowerment Programme. The awards mean that GGM which is fully owned by AngloGold Ashanti implements superb its commitments to the community investments. The presidential award on extractive industry was launched by President Jakaya Kikwete last year with the intention to align corporate policies and practices of companies in the extractive industry with sustainable development. Speaking to EABW during the award giving ceremony, President Jakaya Kikwete has called for other companies in the extractive industry to emulate the GGM example by implementing their commitments to the community it operates. “May this Award inspires companies in the extractive industry to emulate this example and strive to do what is possible to assist the local small scale investors grow and promote long-term economic and social sustainability,” Kikwete said. GGM’s Senior Vice President Sustainability, AngloGold Ashanti Continental Africa Region, Christian Luhembwe said “We are proud of this achievement which has been made possible by the hard working team in Geita.”

MWANZA, TANZANIAKamal Industrial Estate, the first private Export Processing Zone (EPZ) is now complete and open for investors. Spread over a 279 acres of land, Kamal Industrial Estate is an initiative of Kamal Group to develop the first ever Export Processing Zone (EPZ) in Tanzania. It is located 8 kilometres from the planned Bagamoyo port and about 40km from Dar es Salaam. Kamal Group official, A. Ajay, told EABW over the phone from Dar es Salaam that Kamal EPZ is thoughtfully designed to provide superior infrastructure and facilities. Ajay said last week that Kamal Industrial Estate comprises of essential facilities including a special ‘Common Facility Centre’ to provide consultancy for set-up, feasibility reports, scope for a particular in-

dustry, general need of the market and several others. Kamal EPZ has also introduced a ‘single window’ system that will help investors complete all the required procedures in order to save time and energy. Along the benefits to investors include tax exemptions for initial years and all EPZs work under the Export Processing Zones Authority (EPZA). Industries expected at Kamal Industrial Estate include garments, plastic, moulding, electrical products, packaging, pharmaceuticals, food and food processing. Also included are industries in agriculture equipment, agro-products, cottage industry and candle manufacturing. By last year, Tanzania’s EPZA budget stood at Tsh400 billion ($248 million). and most was to be implemented under PublicPrivate-Partnership (PPP).

Rwanda hosts 12th Kiswahili conference BY WINNIE MANDELA KAMPALA, UGANDA-Kiswahili teachers in Uganda have asked the government to invest more money in promoting the Kiswahili language as the East African Community (EAC) merges closer together. During a ceremony last week to flag off 60 Kiswahili students heading to Kigali for the 12th annual Kiswahili conference, Benon Mukundane said the language ws taken seriously enough by both the government and Ugandans. “The government

should put in more endeavors in the promotion of Kiswahili at all levels and also facilitate Kiswahili programs more so as to motivate Ugandans into learning this language and also ease the communication with other East African countries,” he said. Amutenda Salvatore the Principle Education Officer Ministry of East African Community Affairs said, “To ensure that Kiswahili grows, the government is going to set up a National Kiswahili Council that will help mobilize institutions, students and money for the promotion of Kiswahili language.”

East african BusinEss WEEk • SEPTEMBER 2 - 8, 2013

UGANDA NATIONAL ROADS AUTHORITY Plot 5, Lourdel Road, Nakasero P.O. Box 28487 Kampala, Uganda

UNRA AT 5 YEARS

A Well Developed Roads Network

East african BusinEss WEEk • SEPTEMBER 2 - 8, 2013

TOURISM

Row over online gorilla permits BY PAUL TENTENA KAMPALA, UGANDA- In this fast paced dot. com era, it is strange to resist the use of a computer. However, the raging online gorilla permit bickering between the Uganda Wildlife Authority (UWA) and tour operators under their umbrella body the Association of Uganda Tour Operators (AUTO) is seemingly making the computer the culprit. A few weeks ago, UWA and the tour operators converged at the Uganda Museum to try and solve their sharp disagreements amiably. The issue was about putting gorilla tracking permits for Bwindi Impenetrable National Park and Mt. Mgahinga Gorilla National Park online. Their meeting, which had preceded an earlier one at Silver Springs Hotel in Bugolobi on the outskirts of Kampala, yielded no clear cut results. According to UWA the key reason for their decision to put the permits online is that tour operators, who are primarily the sole buyers of their permits, and hence, their chief marketers, cannot sell/buy more than 50% of all the available permits at UWA. The UWA has 10 habituated gorilla families in Bwindi Impenetrable National Park and one habituated gorilla family in Mgahinga. This means that on a daily basis, 88 permits are available to 88 trackers. 8 people are allowed to do gorilla tracking per day per family in the parks. It makes the body remain with at least 50% of the 88 permits according to them and, the situation remains worse during the low seasons when there is little or no tourist willing to track. UWA thinks, by availing the permits online, buyers and willing trackers can easily see them hence a spike in their sales. “In this business, there are high and low seasons. Go ask them whether they have permits for between June to October and December to January. These are the high seasons,” said Geoffrey Baluku, the secretary General of the Association of Uganda Tour Operators. “We sell more than 70% but they have their unknown motives to put these permits online,” he adds. “The other permits may remain unsold because of the low seasons of February to May and November.” According to Dr.Andrew Sseguya, the UWA Executive Director, discussions are still ongoing with tour operators to ensure a winwin situation. He said they have had two meetings with them (tour operators), where they are seemingly agreeing on putting the permits online, with an agreement that they can only be accessed and sold by registered tour

Uganda loses leading conservationist BY PAUL TENTENA KAMPALA, UGANDA- Grief engulfed conservation and tourism enthusiastic, as they bewailed the loss of a top conservation defender Lillian Nsubuga. Lillian Nakato Nsubuga who was the Public Relations Manager of the Uganda Wildlife Authority (UWA) passed away last Sunday at Mulago National Referral Hospital. She died five days after her 44th birthday following a short illness.She was also a top member of the Public Relations Association of Uganda (PRAU) and a key media source who could easily give a timely comment in line with her stipulated conservation duties. “She loved her job. She loved the protection of animals. She was a good sister and a good friend,” said Florence Bwanika, her el-

der sister who spoke on behalf of the siblings during a requiem mass held at the Watoto Church – North. “We lost her. We have lost her. It is a sad moment,” said Mr. Rafsanjani Abbey Tatya, the president of the Tourism Press Association, where Lillian Nsubuga was a passionate supporter. She was buried last Tuesday in Kiwumu - Kyaggwe off Nakasajja Road on Gayaza road in Wakiso District, a few Kilometers outside Kampala city at 4pm. Lillian Nakato Nsubuga was born August 20, 1969 and joined UWA on 16th February 2004. She loved the Environment and was a brilliant hardworking person. She studied at Gayaza Junior School for her primary before joining Nabisunsa Girls School and Wanyange Girls School for her O and A levels.

Some of the Gorrilas found in the Uganda national parks that are attracting anumber of tourists operators in Uganda. “Discussions with all stakeholders are still ongoing. We had two meetings. We shall protect the interests of our local operators as we also improve on the sales,” Dr. Sseguya said. There is a view that UWA should put the permits online to improve their sales to at least 90% as the country’s chief marketers the Uganda Tourism Board is inadequately funded to attract tourists to Uganda. UWA argues that this 90% is what the tour operators have failed to deliver. When the permits go online without a clearly agreed upon agreement between UWA and the tour operators, it will hurt many local tour operators. The permits online will allow large tourist suppliers from various sources easily buy them, reduce the bargaining power of local tour operators and hence no more need to contact them for tours/business. It will also lead larger global tour companies in Europe, Kenya and other source markets to hoard the permits, leaving the local operators at mercy of these companies. “These bigger companies will buy all the permits. They will fly in tourists, go for only Gorilla tracking and fly back. This will make other parks we sell as subsidiaries to Gorilla tracking redundant,” argues Boniface Byamukama, the president of the Association of Uganda Tour Operators. “The knock on effect will be closure of hotels and lodges in parks and other facilities in these other parks and hence forthwith job loss to workers,”

he added. What tour operators think must be done Tour operators argue that it’s not UWA’s mandate to do tourism marketing. They think that marketing of all tourism resources should be left to the Uganda Tourism Board, and UWA focuses on curbing poaching and other related park challenges. “Under the Tourism act, the power to carry out tourism marketing is given to UTB. Now is UWA hijacking the work of UTB? They should ensure conservation and elimination of poaching in parks,” said Herbert Byaruhanga, the Uganda Tourism Association president. “They must concentrate on making the parks accessible by giving advice to government on the major bottlenecks affecting the industry. We need better tracks in parks, setting up of airports near parks. Not putting permits online for us to be kicked out of business,” Byaruhanga said. Some sources think that a winwin situation can be achieved, if UWA and tour operators can agree to put the permits that remain unsold in the considered low seasons online for all willing buyers and, permits for the high seasons remain caveated for only local tour operators. It will help the wildlife body improve its earnings as the operators also remain strongly in the business.

Lillian Nsubuga

Virunga Park worth $1bn annually says report KINSHASA, DRC--Africa’s oldest national park could be worth $1.1 billion per year if developed sustainably, rather than being given over to potentially-damaging oil extraction, an analysis released by World Wildlife Fund (WWF) has found. Virunga National Park in the Democratic Republic of Congo (DRC) has the potential to generate over 45,000 permanent jobs through investments in ecotourism, fisheries, and hydropower, according to the study conducted by Dalberg Global Development Advisors, an independent consulting firm. ‘The economic value of Virunga National Park finds that exploitation of oil concessions, which have been allocated by the DRC government across 85% of the World Heritage

site, could bring pollution, cause instability and cost people their jobs,’ the study reads in part. Recognized as one of the most biologically diverse places on Earth, Virunga is also a vital resource for local residents. Despite decades of unrest, the park generates $48.9 million annually for local communities. More than 27,000 people fish in Lake Edward and it provides drinking water to 50,000 people, but thousands more benefit from locally sourced fish, renewable energy and other park related activities. About one quarter of the world’s critically endangered mountain gorillas live in Virunga, alongside countless other species, including hippos, okapi, elephants and several primates. Many of Virunga’s species are found nowhere else.

East african BusinEss WEEk • SEPTEMBER 2 - 8, 2013

ENTERTAINMENT What are the stars doing? Combining business and pleasure! They like to keep us guessing about the status of their relationship. But if this latest public display of affection is anything to go by, Chris Brown and Karrueche Tran are definitely back on. The 24-year-old singer has been combining business and pleasure, taking his on and off model lover with him to Hawaii, where he played a gig on Friday and has been filming his latest music video on Tuesday.

‘Taken off the shelf!’ TV presenter Charlotte Jackson is engaged to Wales football manager Chris Coleman. The couple, who have been dating since last year, announced their wedding plans on the blonde’s Twitter page. She posted a photo of the pair hugging, writing: ‘Been made a very happy girl & taken off the shelf ! Ha.’

Kept it red Despite being one of the most famous and indemand footballers on the planet, Cristiano Ronaldo still makes sure he spends time with those closest to him. It was a family affair for the Real Madrid star on Saturday when he took his girlfriend, Irina Shayk and her mother, Natalia, out for dinner.

Rosie Motene graces UFF 2013 The success of the maiden Uganda Film Festival (UFF 2013) will be judged not only from the quality of nominated films but also on the calibre of a team of independent judges, who are currently burning the midnight candle to select winners in the various categories. South African celebrity Rosie Motene is one of these eminent judges. She is an accomplished actress in theatre, television and film, a TV soapy star and well known presenter, director and producer and a global emcee and has compeered a number of top events both locally and abroad. Rosie, the 2008 Shoprite/Checkers Woman of the Year Award nominee is an award winning actor and TV and radio presenter, best known for her role as journalist Tsego Motene on the hit soap opera Generations (2000-2004). After her exit from Generations, she was cast in the international film Hotel Rwanda. Rosie became a household name after landing a principal role on the SABC1 soap Generations, which she carried for five years. Rosie focus has moved from the small screen to the big screen. Rosie landed a role in the Academy Award nominated film Hotel Rwanda, starring Don Cheadle and Nick Nolte. Her second film, The Other Woman, was directed by Cindy Lee and lensed by Lance Gewer who also shot the award winning film Tsotsi. The Other Woman, produced in 2005 is the first film with Rosie in the leading role. Rosie has also performed in a British production entitled Wild at Heart. The series runs on the ITV1 channel in the UK and in SA on the Hallmark channel. Background Born on September 7, 1974, Rosie Motene (full name Rosie Tebogo Motene) holds a Bachelor of Arts in Dramatic Arts (Honours) from The University of the Witwatersrand (1993-1998). Her acting career began while she was still at drama school, where she was cast for a number of professional productions. Rosie has a background in dance, choreography, and theatre. Her theatrical credits include Janice Honeymon’s Turkish Delights,

Up country auditions excite participants BY EMMA ONYANGO

Rossie Montene Johnny Barbuzano’s Deep in the Loca Lala and she performed leading roles in Dawn Lindburg’s award winning Vagina Monologues production. After the run of Deep in the Loca Lala at the Market theatre in Johannesburg, they were invited to perform at Jerusalem Thespis Festival. She was in John Kani’s Nothing but the Truth sell out tour of Australia in 2005 the UK in 2007 respectively, and in theatres in and around the UK which kicked off in London playing to full houses and many standing ovations along with four-star reviews in the local news papers. A full length feature film of the same production has been shot with Rosie playing the lead which was released in 2008. Since its release it has won various awards including one at the Durban Film festival. Artiste’s life Rosie’s role in the Vagina Monologues benefit concert has been an honour for Rosie, especially when she was asked to be the official spokesperson of the campaign. She finds presenting on Studio 53 - both in studio as well as out in the field an exciting challenge and an adventure. Rosie is also known for hosting the M-Net magazine show Studio 53. She believes that a programme which highlights the cuisine, beauty, fashion, and glamour of Africa, as Studio 53 does, has been way overdue. Her other acting credits include the aforementioned Hotel Rwanda, Nothing but the Truth and The Other Woman. Her film producing credits include Jesus and the Giant and Man on Ground,

which has won 10 awards to date. She runs the first PanAfrican talent agency and represents artistes from East, West and Southern Africa. She also sits on the boards of The Tomorrow Trust, People Opposing Women Abuse (POWA) and Infinite Family. Rosie, the glitterati Rosie has been rated as one of South Africa’s most stylish women and has graced the covers of many local and international magazines. She has been rated as one of South Africa’s most stylish women and has graced the covers of many local and international magazines. Rosie is an accomplished voice artiste, her voice has been used to advertise the following, Standard bank, ABSA, Coco Cola, Danone, Ultra Mel, Johnson and Johnson, Debonairs, Sasko and many more. Rosie is now the official voice for South African Airways (SAA). She records the radio adverts and is the voice reading out the in-flight announcements. Rosie’s television career started with her presenting Instyle, South African magazine programme dealing with food, lifestyle, travel and entertainment. She continued in this anchor TV role in the successful Studio 53 lifestyle show, which dealt with the same elements but focusing on the African continent and had now branched out globally. Rosie was the studio anchor person as well as the field reporter for five years running. In 2006, Rosie became one o the directors and producers for the show, a position which she still holds now.

ARUA, UGANDA – Dressed to impress or in some cases to disappoint, one after the other, they slowly walked into the audition room, sang their lungs out and waited for the judges’ verdict. They were all hoping to make the cut, take the stage and compete for the grand prize of Ush150m and a recording contract in the sixth season of Tusker Project Fame. This was during the first auditions outside Kampala that were held in the West Nile district of Arua last weekend. The Judges; renowned music producer Benon Mugumya, Arua One FM presenter Stella Atizuyo and Urban TV’s Bush Baby, most of the time pronounced the same verdict and in some instances advised a number of contestants not to quit their day time jobs and concentrate on their studies in the case of students. At some point it appeared like comedians too had somehow managed to sneak their way into the auditioning venue (Desert Breeze Hotel, Arua). The only challenge is that they grossly disappointed and wouldn’t have been picked to curtain raise for a local community church’s fundraising drive. Despite the big turn up, the judges were by midway the audition reduced to mere spectators

and waved on contestant after contestant. By this time, it seemed that Arua that produced a song bird in Jackie Chandiru and athlete Dorcus Inzikuru might have after all exhausted all of its talent stores until…. Yes… until a certain young man, who dressed in tight jeans, big geeky glasses and texas boots walked into the audition room beaming with confidence and a rare smile. Adam Mandela’s first words seemed to have brightened up the room as he introduced himself with such ease. And when he sang, he was undoubtedly had most of the attributes that the judges were looking out for. He, along with Winnie Akot and Mukuna Tchidere who sang in Lingala and Swahili were the only three contestants who made the cut and will join winners from Mbarara (Western Uganda) at the Kampala auditions slated for September 7, 2013 at the Sheraton Kampala Hotel. The new season of Tusker Project Fame returns with a new format that allows music groups comprising not more than 3 people to audition making the competition tougher. The Follow up and voting for the contestants will also take place through improved digital platforms, weekly music director and legends’ visits coupled with a new faculty and judges as well.

From L, TPF 6 Arua audition judges Benon Mugumya, Stella Atizuya and Bush Baby pose after the auditions

EAST AFRICAN BUSINESS WEEK . SEPTEMBER 2-8, 2013

BUSINESS DIGEST

EAC approves trilateral plans BY DAVID MUWANGA ARUSHA, TANZANIA--The Secretary General of the East African Community, Amb Dr. Richard Sezibera said the Community is not against having bilateral or trilateral arrangements among Partner States in the overall context of the regional integration. Addressing the Media on August 26 at the EAC headquarters in Arusha, Sezibera said bilateral or trilateral arrangements are meant to strengthen the integration process rather than weaken it. “It should not worry the East African people that such arrangements will weaken and eventually break the Community,” he remarked. He said issues discussed during the trilateral meeting between three Heads-of-State of Rwanda, Kenya and Uganda in June this year were routine follow-ups of already agreed resolutions. The resolutions focused on the need to promote and hasten regional trade, reduce the cost of doing business and joint sourcing for investment funds for capital intensive infrastructure projects. Speaking on the ongoing tension between Tanzania and Rwanda, Sezibera expressed his optimism that the issue between the two States will soon be resolved diplomatically. The disagreement between the two countries has not damaged the strong relationship between the

Amb Sezibera addresses the media at the EAC headquarters in Arusha two leaders and the two countries have significant cultural and trade relationships. “I call upon the media to report objectively on issues between the two countries,” he said. He said the region is facing a number of security threats that could act as a disincentive to investment attraction. “I can put them into two categories, the first is the genocidal threat where it is only the EAC region that has experienced

genocide in Africa, this brings its own problems,” he said. The second threat emanates from the negative forces that were still active in the East African region to include the FNLA in Burundi, the Allied Democratic Forces and the Lords Resistance Army, which has been fighting the Ugandan Government, and Al Shabaab militants in Kenya and Somalia. “So it is important the region understands the situation we are

experiencing, that is why the EAC leaders have agreed to support security improvement efforts of the International Conference on the Great Lakes Region (ICGLR) in a summit recently held in Nairobi, Kenya,” he said. Sezibera said the two countries are still actively engaged in regional as well as bilateral issues. “A Tanzanian ministerial delegation has been in Kigali lately for discussion with their Rwanda counterparts,” he said.

We will do our best to have the two countries resolve what led to this state of affairs. “I don’t want to go into detail on what is happening behind the scenes. Most of these diplomatic efforts are handled away from the media. I don’t think there is a threat to the break-up of the community,” he said. He said the region is also running late on the implementation of the Common Market Protocol provisions on freedom of movement of labour, capital, persons and right to establishment. “Kenya and Rwanda have harmonized some of the laws although many are still not harmonized. We are urging partner states to fast track these laws,” he said. He said fortunately all the partner states have established committees to ensure laws are harmonized. On the expulsion of illegal immigrants from Tanzania, Sezibera said the Tanzanian government has stated it clearly it was expelling illegal immigrants as well as asking those who can legalize their stay to do it as the law requires. “There are people in Tanzania who originate from Burundi, Rwanda and Uganda but having homes in both countries. Legally Tanzania is right, they must legalize their stay because the current law provides for illegal immigrants and refugees,” he said.

COMESA introduces system to ease regional trade BY EABW REPORTER ARUSHA, TANZANIA-Common Market for Eastern and Southern Africa (COMESA) has developed a system to facilitate trade through smooth movements of goods in the region. The Virtual Trade Facilitation System (CVTFS) is aimed at integrating the COMESA yellow card, the transit data transfer module, the carrier license for road freight operators and the regional customs bond guarantee system. The COMESA harmonized axle load, and gross vehicle mass limits which include the certificate of overload control and the customs declaration document. The pilot of CVTFS has officially begun in the Northern

The CVTFS system will cut transport costs across borders Corridor Kenya, Uganda, Rwanda and DR Congo. Preparations are also underway to extend the pilot to Malawi, Zambia and Zimbabwe. Major transporters who have presence in different countries in

the region have been identified for the pilot project. They are Kuehne +Nagel, Spedag Interfreight , Freight Forwarders and Bollore SDV. A statement issued recently by the COMESA secretariat in

Lusaka, Zambia said the system will be accessible to customs, freight forwarders, insurance companies, banks, port authorities, container freight stations and traders among others. “This initiative is in line with the provision of the COMESA treaty. Over the years, COMESA has applied the Protocol on Transit Trade and Transit Facilities to make regulations and harmonized policies to facilitate regional trade,” said the statement. It added that while these instruments have contributed to reduction of costs of doing business, challenges still persist in terms of disruption in the movement of goods. Among these are high trucking operating costs, loss of goods during transit, cargo dumping, inability to control counterfeit,

pilferage, long transit time and no availability of goods regional bond guarantees for most transporters. The statement said small and micro enterprises dealing with cargo delivery from manufactures within COMESA member countries and export cargo are also targeted in the pilot project. Over 100 trips have been made for cargo from Mombasa port to Uganda, Rwanda and DR Congo. COMESA CVTFS Team is currently making onsite training at borders in the Northern Corridor. The pilot and subsequent rollout on all countries will be fully functional this month. Preparations to pilot the Djibouti-Ethiopia Corridor have also been completed and the pilot will be extended to Sudan which is part of the Corridor.

EAST AFRICAN BUSINESS WEEK . SEPTEMBER 2-8, 2013

AGRICULTURE

Fake taxes interrupt farm gate value BY WINNIE MANDELA KAMPALA, UGANDA-Farmers want questionable local taxes which hamper the distribution chain between the farm gate value and the markets to be eliminated. This was during a recent conference at Hotel Africana in Kampala. Farmers met to discuss the tax policies affecting small scale farmer’s access to both local and international markets. According to Irene Nakijoba a farmer based in Mukono District, the taxation policy on the local markets is exploitative. “We encounter over four tax collectors in the process of taking our products to the markets. They demand for different taxes and yet profits collected from market sales are low,” she said. This coupled with the ignorance of farmers on tax structures has seen many farmers suffer the wrath of fake tax collectors who determine the amount of tax imposed on the farmers. Farmers also lack the management skills, coordination and enough working capital. She said farmers lack proper post-harvest handling techniques coupled with the limited access to credit facilities which limit investment in modern agriculture. There is also poor access to export markets since they require certification which many local farmers cannot afford. Vickie Lukwiya, the Coordinator Eastern and Southern African Small Scale Farmers Forum in Gulu said the Government and other stakeholders ought to sensitize farmers nationwide about the existing tax structures. She said uncoordinated tax collections are hindering many

Gov’t urged to revamp extension service providers BY SAMUEL NABWIISO

A farmer transporting bunches of bananas to a market farmers in Gulu from benefiting from sales. She said: “There is need for the Government to review the tax structure especially at the Local Government level so that uncoordinated tax collections are abolished.” Flavia Kabahenda the Chairperson of the Parliamentary Committee on Tourism, Trade and Industries blamed the poor taxation structures on corruption. She asked farmers to be vigilant and to specialize on a single product to produce for

exports to avoid fake taxes. She said: “The Local Governments should focus on eliminating disorganized tax bases while the farmers must produce quality goods that can meet international standards.” She blamed farmers for producing poor quality crops which are mocked because they do not meet the international quality standards. The farm gate value is the net value of a product sold by the farm. It does include marketing costs like transportation, storage, handling and profit margins.

KAMPALA, UGANDA-Scientists in Uganda want the Government to introduce agricultural extension service providers to improve the flow of information between farmers policy makers and agricultural innovators. Scientists say the scrapping of the service providers during the structure adjustment programme in the early 1980s affected the flow of information between researchers and farmers in the country. Dr. Andrew Kiggundu the head of National Agricultural Biotechnology Center at the National Agricultural Research Laboratories Kawanda , Kampala told EABW although scientists are coming up with more innovation techniques they have no feedback from the farmers on whether the techniques are viable or not. He said: “When agriculture extension service providers functioned, the Government promply understood the

challenges farmers faced. Today it is challenging.” Kiggundu said if techniques developed at the various research institutes are meant to benefit farmers then Government should come up with platforms where information can flow from the innovators and those who use the agricultural innovations. Kiggundu’s comments come when National Agriculture Advisory Services (NAADS) plans to introduce an integrated mobile telephone communication system for farmers. Farmers will be able to interact with agro-scientists. He said: “Uganda has the capacity to be the hub of improved seed production. The infrastructure is available but we need to focus on the production of crop varieties that can match the current environmental conditions in the country. That is why scientist are saying let us embrace Biotechnology in the Agriculture sector.” f Farmer capacity building will be achieved by advising farmers on opportunities in agricultural production.

Dr. Kiggundu (Right) explaining to visiting Prof. Ya Suaki Sato of Osaka Sangyo University, Japan the use of biotech in Kawanda

FAO: Adapt ecosystem approach to climate change NAIROBI, KENYA--Modibo Traore, the Food and Agriculture Organisation (FAO) Representative to African Union spoke on importance of focusing on ecosystem based approaches for food security and adaptation to climate change. “This topic enables us to address the critical nexus between agriculture, food security and climate change in a systemic way,” he said.

Traore was speaking at the UN headquarters in Nairobi, during the first Africa Food Security and Adaptation Conference held on August 20-21. He said agriculture supported 67% of jobs in Africa, he highlighted the sector’s dependence on climate-sensitive ecosystem services such as pollination, whose value was at US$214 billion per year Mounkaila Goumandakoye, Regional Director, UNEP

Regional Office for Africa said: “Achieving food security is unmanageable without adaptation to climate change measures and practices that not only support farmers in producing enough food to meet people’s nutritional needs, but that also preserve ecosystems from degradation.” FAO has engaged in an organisation wide climate change framework programme, entitled FAO-Adapt.

This is in response to challenges in Africa like food shortages due to lack of knowledge, poor agricultural practices, depletion and degradation of ecosystems, high population growth, water scarcity, disease, natural calamities and disasters, extreme poverty and insufficient policies. FAO-Adapt brings together multi-disciplinary expertise within FAO and external partners and focuses on

key elements of reducing vulnerability and increasing the capacity to the impacts of climate change. Traore said: “FAO has forged the climate-smart agriculture concept which aims at improving food security by sustainably increasing production and farmers’ income, helping communities to adapt and build resilience to climate change.”

Agencies

23 23

EASTafrican AFRICAN BusinEss BUSINESS WEEK SEPTEMBER 22 --8, 8,2013 2013 East WEEk • SEPTEMBER

REPUBLIQUE DU BURUNDI PROJET DE DÉVELOPPEMENT DES SECTEURS TINANCIER ET PRIVÉ

Avis d'appel d'offres FOURNITURE D'UN SYSTÈME D'INFORMATION BANCAIRE Don: IDA H659-BI, AOI N° PSD/001/F/2013 Le présent marché est un marché de fourniture de biens et services à la Banque de la République du Burundi (BRB), à exécuter en un seul, lot la finalité devant être la mise en place d'un système comptable automatisé pour appuyer le futur système de paiement. 1. Le présent Avis d'appel d'offres (AAO) fait suite à l'Avis général de passation de marché du projet indique ci-dessus publié dans le journal Development Business, le 08 juillet 2010. 2. Le Gouvernement de Ia République du Burundi a obtenu un Don de l'Association Internationale de Développement (IDA) pour financer le Projet de Développement des Secteurs Financier et Privé (PDSFP) et a l'intention d'utiliser une partie du montant de ce Don pour effectuer les paiements au titre de l'accord ou des accords resultant du presént AOI «Mise en place d'un système bancaire automatisé (PSD/001/F/2013). 3. Le Projet de Développement des Secteurs Financier et Privé (PDSFP) est l'agence d'exécution pour le Marché et invite, par le presént Avis d'appel d'offres, les candidats remplissant les conditions requises à presénter une offre sous pli cacheté pour la fourniture de biens et services à la Banque de la République du Burundi, à exécuter en un seul lot, Ia finalité devant être la mise en place d'un système comptable automatisé pour appuyer le futur système de paiement comprenant : 1. Un progiciel de comptabilité couvrant les éléments obligatoires décrits dans la section VI, partie I, du presént Dossier d'Appel d'Otfres (DAO). 2. Les fonctionnalités additionnelles optionnelles décrites dans la section VI, partie II, du presént DAO. Le marché consiste à : • Choisir, livrer et installer un/des logiciel(s) adapté(s) et répondant aux fonctionnalités décrites à la Section VI du presént DAO au siège de la BRB et dans ses agences de Gitega et Ngozi; • Assurer l'implémentation du/des logiciel(s), les interfaces nécessaires entre les différents modules de la Solution et le système de paiement (ATS-CSD) et cela selon le calendrier négocié de commun accord sur base de la proposition faite par le fournisseur selon ce qui est prévu à la Section VI, partie VI du presént DAO; • Transmettre à l'équipe de projet de Ia BRB les connaissances nécessaires pour le démarrage, l'apprentissage et l'exploitation de Ia Solution; • Former les utilisateurs finaux, le cas échéant; • Mettre à la disposition de la BRB la documentation complète de Ia Solution; • Fournir Ia maintenance et le support des logiciels proposés. 4. Le processus se déroulera en une étape conformément aux procédures d'appel d'offres international (AOI) décrites dans les Directives: Passation des marchés financés par les prêts de la BIRD et les crédits de l'IDA de Ia Banque mondiale édition Mai 2004, révisées en Octobre 2006 et Mai 2010. Sont admis à soumissionner, tous les candidats des pays satisfaisant aux critères de provenance énoncés dans les Directives et répondant aux critères de quali fica tion minimums suivants : • Un chiffre d'affaires annuel moyen de 3 millions de USD pour les 3 derniers exercices sur base des 3 derniers rapports annuels et comptes annuels fournis à la BRB et certifiés par des commissaires aux comptes et/ou par des auditeurs externes reconnus internationalement (bilan et comptes de résultats); • Une liste de 3 références de prestations similaires exécutées durant les 5 dernières. Une prestation pareille dans une banque centrale constituerait un atout; • Les attestations de bonne fin de ces missions exécutées, demontrant la capacité du soumissionnaire à maîtriser l'ensemble des diverses technologies et services nécessaires pour la mise en oeuvre de solutions de type ERP ;

• La certification du partenariat entre la firme soumissionnaire et la firme éditrice du logiciel au cas où ces deux maisons seraient différentes ; • La preuve que les consultants alignés par le soumissionnaire sont certifiés par l'editeur du logiciel selon leurs domaines de compétence métiers et techniques respectifs ; • La preuve de certificatioh des qualifications du personnel aligné selon les domaines de compétence métiers (surtout en comptabilité) et techniques respectifs. 5. Les candidats intéressés remplissant les conditions requises peuvent obtenir un complément d'information auprès du Projet de Développement des Secteurs Financier et Privé (PDSFP) et peuvent examiner le Dossier d'appel d'offres de 8H 00 à 17H30 (heure locale) à l'adresse indiquée ci-après : Mr Jérôme SIBOMANA Le Projet de Développement des Secteurs Financier et Privé (PDSFP) Immeuble SOCAR, jonction Bd de l'lndépendance et Avenue d'Italie B.P. 1590 Bujumbura, BURUNDI Tel: (257) 22 24 9595, Fax: (257) 22 24 9592 E-mail : page@page.bi Site web:www.psd.bi 6. Les candidats intéressés peuvent acheter un jeu complet de documents d'appel d'offres rédigés en Français sur demande écrite à l'adresse indiquée ci-après moyennant paiement d'un montant non remboursable de 150 000 BIF ou de 100 USD. Le paiement devra être effectué par versement au compte n°1BB 7012553001-81 ouvert à INTERBANK BURUNDI, CODE SWIFT: IBBUBIBI au nom du Projet de Développement des Secteurs Financier et Privé (PDSFP). 7. Une réunion préparatoire à la soumission des offers à laquelle sont invités les soumissionnaires intéressés aura lieu le 19 septembre 2013 à 09 heures (heure locale) à la Banque de la République du Burundi. 8. Les offres doivent être envoyées à l'adresse indiquée ci-après au plus tard le 18 octobre 2013 à 10 heures (heure locale). Elles doivent être accompagnées d'une garantie d'offre d'un montant minimum de 18.000 USD (dix-huit mille dollars américains) ou d'un montant équivalent en toute autre monnaie librement convertible. Les offers reçues après le délai fixé seront rejetées. Les plis seront ouverts en présence des represéntants des Soumissionnaires qui décident d'assister à la séance d'ou verture à l'adresse indiquée ci-après, le 18 octobre 2013 à 10h 00min (heure locale). 9. On appelle l'attention des Soumissionnaires éventuels sur le fait: i) qu'il leur sera demandé, dans le cadre de leur soumission, de cer tifier que tous les logiciels sont couverts par une licence valide ou ont été produits par eux; et ii) que les infractions seront considérées comme des cas de fraude pouvant donner lieu, entre autres sanctions, à l’exclusion du Soumissionnaire concerné de toute participation future à des marchés financés par la Banque mondiale.

Mr Jérôme SIBOMANA Projet de Développement des Secteurs Financier et Privé (PDSFP) Immeuble SOCAR, jonction Bd de l'lndependance et Avenue d'Italie B.P.1590 Bujumbura, BURUNDI Tel: (257) 22 24 9595, Fax:(257) 22 24 9592 E-mail : page@page.bi Site web: www.psd.bi

East african BusinnEss WEEk • SEPTEMBER 2 - 8, 2013

INVESTMENT

Citadel Capital stays focused on Africa Recently, Hassan Massoud, the Citadel Capital Vice President, gave an interview to East African Business Week on a wide range of issues, including their investments in the region and future plans. Below are excerpts. Have the current events in Egypt affected Citadel Capital in anyway? Has there been any impact on your stock price? Massoud: The primary impact has been the number of hours we’ve spent reacting to a fluid situation on the ground, whether that’s been ensuring that our staff are safe at the firm level or the platform company level or helping our platform companies recalibrate business plans as necessary. Thankfully, none of our staff or investments have come to harm as a result of the unrest of the past period, and we are fully open for business, although working hours are in some cases constrained somewhat by the curfew, as are those of many other businesses. Since January 2011, we have successfully de-risked Citadel Capital by delivering other greenfields, from a cement plant in Egypt to key exporters including manufacturers of glasswool and rockwool insulation and of technical calcium carbonate for the global paints, paper and polymers industries. We have arranged full financing for our five-year turnaround program on Rift Valley Railway in Kenya and Uganda. It is premature — even wrong — to assume at this stage that Egypt is going to witness a continued heightening in instability or a significant deterioration in its political or economic situation.We remain very bullish and committed to Egypt in the medium and long term and, in fact, believe there has never been a more important time for the type of large-scale projects — with a bias toward infrastructure and energy — that we invest in. The political risk placed

on African investments remains higher than other regions around the world; do you see that risk diminishing anytime soon? Our chairman and founder, Dr. Ahmed Heikal, has a stock line in this regard, if you will allow me to quote it: “If you are satisfied with a c. 1% return on your investment, go buy 10-year Swiss bonds. Otherwise, go to Africa.” If you are willing to delve deeper, to be hands-on with your investments, to get to know the countries and the industries in which you invest, this is the African century and there is no better place to invest. In this respect, I think it is less a question of “political risk on African investments” subsiding than it is African nations selling themselves as individual national prospects and not “African” destinations. What percentage of Citadel Capital shareholders are African-based? We don’t go out of our way to track the domicile of our shareholders, but I can tell you that our lead shareholder and the vehicle through which our senior management team controls its equity — Citadel Capital Partners Ltd. — is fully African-owned. CCP currently owns 26% of the firm’s equity, including preference shares that give it board-level control over the firm. Our other investors including African, Middle Eastern and global institutional investors as well as high-net-worth individuals. Board members other than CCP own 28% of the firm, while shareholders holding more than 1% each own 11%. The remaining 35% of the firm is composed of oth-

er institutions, funds, and individual investors and makes us on of the most actively traded equities on the Egyptian Exchange. How do you raise your investment funds and what key factors do you think make Africa a good bet for some investors? We see look at the same macro data everyone looks at and, as long-standing investors in Africa, helped lead the emerging consensus that the coming 2-3 decades will see tremendous economic growth and opportunities across Africa. Additionally, because of our global experience and local knowledge, we are able to spot the microeconomic trends that allow us to structure these opportunities earlier than most. RVR is a perfect example where, instead of waiting for a Chinese or an American multinational to tackle the challenges of transport in East Africa, we are building this capability in a local company (RVR) with technical assistance from other emerging market companies (America Latina Logistica) and building a management team of only a handful of expat executives, fortified with some of the best local talent through RVR’s Management Trainee Development Program. That said, we are placing less and less emphasis on raising funds as a private equity firm and more emphasis on attracting public markets investors. We have been since 2012 transitioning our business model from that of a private equity firm (with the constant fundraising requirements that entails) into an investment company that aims to hold majority / controlling stakes in a reduced number of companies — 10, at present — in our five core indus-

PERFECT EXAMPLE: Citadel Capital holds the biggest stake in RVR, the rail venture.

tries. What do you think makes Citadel Capital more successful than any other investment firms in Africa? Two words: Our people. Our team mixes deep local insights with global knowhow. We know how to structure large, complex investments. We know where to source outstanding local and globally qualified managers. We know when to be hands-on, and when to allow our management teams to get on with business. We’re entrepreneurial, so we move fast — but we know how to structure and report on transactions to the satisfaction of the most demanding global investors. Together, this makes us a very compelling player on the continent and has seen us grow from a small company with USD 250,000 in capital back in 2004 to where we stand today, as the leading investment firm in Africa controlling investments of more than USD 9.5 billion in East Africa, North Africa and Egypt. Aside from Transportation, are there any other investment areas or companies in East Afica you

are interested in investing? As the leading Africa-based investment company, we focus on five key sectors: energy, transport, agrifoods, mining and cement. Within these sectors, we are constantly evaluating opportunities in the sectors across the continent and especially in East Africa. What investment strategy is behind the setup of Citadel Capital’s Platform Companies; Any unique features in these companies? As I noted earlier, all our strategy is to be a proxy for investment in Africa’s burgeoning infrastructure, energy and, to an extent, commodities value-added sectors. As a result, our investment strategy is based on helping countries secure and deliver the energy and infrastructure they need to grow; our strategy is based on serving a domestic market that is made up of 1 billion consumers; and it is based on value-added exports to regional and global markets. Sometime in mid-year Citadel indicated that it plans to reduce the number of platform invest-

ments to around 10 from the current 19, focusing on energy, mining, agrifoods, transportation, as well as cement. Is this still true? As I noted earlier: Absolutely. We’re focusing more and more on core companies and, at the same time, laying the groundwork for an orderly, multiyear divestment program that will allow us to exit non-core investments when the time is right. You already have $9.5 billion investments spread across Africa and the Middle East, What are Citadel Capital’s future plans? We’re a very entrepreneurial firm, so I would not rule out our investing opportunistically in incremental, add-on investments to platforms in our core industries. That said, our big emphasis in the coming year or two is much more on delivering greenfield investments — including our US$ 9.5 billion greenfield petroleum refinery in Egypt and Mashreq, our fuel bunkering facility at the northern mouth of the Suez Canal — and capacity upgrades.

EAST AFRICAN BUSINESS WEEK - SEPTEMBER 2 - 8, 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. Umeme 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 Date

Company

Aug 29, 2013 Aug 29, 2013 Aug 29, 2013 Aug 29, 2013 Aug 29, 2013 Aug 29, 2013 Aug 29, 2013 Aug 29, 2013 Aug 29, 2013 Aug 29, 2013 Aug 29, 2013 Aug 29, 2013 Aug 29, 2013 Aug 29, 2013 Aug 29, 2013 Aug 29, 2013 Aug 29, 2013

TOL TBL TATEPA TCC SIMBA SWISSPORT TWIGA DCB NMB KA EABL JUBILEE KCB CRDB NMG ABG PAL

Opening Price Closing Price (Tsh) (Tsh) 0 305 3720 3720 0 650 0 6860 0 2380 2280 2280 2700 2700 0 500 1820 1820 0 990 0 2000 0 5860 0 440 260 260 0 3100 0 13160 0 475

Price as at Aug 29, 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

27.00 84.50 122.00 490.00 25.75 13.75 245.00

27.00 85.00 122.00 490.00 27.00 13.90 236.00

0.00 -0.59 0.00 0.00 -4.63 -1.08 +3.81

Ord 5.00 Ord 0.50 Ord 5.00 Ord 5.00

24.75 13.50 12.00 4.85

24.75 13.50 12.00 4.80

0.00 0.00 0.00 +1.04

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

17.35 68.50 175.00 32.75 24.50 88.50 42.75 21.00 57.50 292.00 16.15

17.45 71.50 175.00 33.25 24.50 85.00 43.00 21.25 57.50 292.00 16.00

-0.57 -4.20 0.00 -1.50 0.00 +4.12 -0.58 -1.18 0.00 0.00 +0.94

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

3.60 20.25 9.50 13.05 316.00 67.00 26.75 48.50 20.00

3.85 20.25 9.40 13.05 317.00 69.50 27.50 48.25 19.75

-6.49 0.00 +1.06 0.00 -0.32 -3.60 -2.73 +0.52 +1.27

Ord 5.00 Ord 5.00 Ord 5.00 Ord 0.50 Ord 5.00

71.00 200.00 62.00 16.05 54.00

70.00 209.00 64.00 16.05 56.00

+1.43 -4.31 -3.13 0.00 -3.57

Ord 2.50 Ord 0.50 Ord 2.50 Ord 5.00 Ord 5.00

16.20 8.40 13.90 17.20 13.00

16.40 8.60 13.95 17.60 13.00

-1.22 -2.33 -0.36 -2.27 0.00

Ord 1.00

12.00

12.15

-1.23

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

8.00 12.00 4.70 267.00 15.40 60.50

7.90 12.00 4.70 270.00 15.50 61.00

+1.27 0.00 0.00 -1.11 -0.65 -0.82

Ord 0.50 Ord 5.00 Ord 0.50

24.00 3.85 31.75

23.25 3.70 31.75

+3.23 +4.05 0.00

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

11.10 119.00 574.00 146.00 286.00 2.80 3.00 3.70 16.50

11.10 115.00 570.00 146.00 301.00 2.70 3.00 3.70 16.50

0.00 +3.48 +0.70 0.00 -4.98 +3.70 0.00 0.00 0.00

Pref 20.00 Pref 20.00

8.00 5.50

0.00 0.00

Ord 1.00 Ord 0.05

9.55 7.65

9.55 7.50

0.00 +2.00

High (Tsh)

Low (Tsh)

0 3720 0 0 0 2280 2700 0 1820 0 0 0 0 260 0 0 0

Date

Company

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

Last 12 Months (Rwf) High Low High August 28, 2013 BOK 200 118 August 28, 2013 BLR 900 315 860 August 28, 2013 KCB 175 135 August 28, 2013 NMG 1,200 1,200 Exchange Rate: August 28, 2013 (1 US$ = Rwf 649.15 - 1 Kshs = Rwf 7.55) Date

Security

Todays prices (Rwf) Low Closing 184 859 859 175 1,200

Dar es Salaam - D.S.E Turnover Number (Tsh) of Deals 0 0 1074287520 7 0 0 0 0 0 0 1032840 5 2732400 25 0 0 14560000 4 0 0 0 0 0 0 0 0 13492960 22 0 0 0 0 0 0 Kampala - U.S.E

Outstanding Share bids 21400 70200 0 9800 0 9700 0 0 222200 0 0 0 0 42100 0 0 0

Shares Traded

0 0 0 0 0 0 0 0 0 0 0 0 0 24 0 11 0 35

0 0 0 0 0 0 0 0 0 0 0 0 0 1,338,347 0 1,069,550 0 2,407,897

Nairobi (KSh) Mean 87.5078 135.8304 115.9223 8.4595 29.4461 18.3725 7.3558 17.2206 23.8240 0.8917 1.3040 23.3311 14.2982 Dar es Salaam (TSh) Mean 1,611.3931 2,495.8082 2,134.2109 16.3610 24.2115 155.7645 438.7071 429.6475 18.3843 0.6198 1.5409 Kampala (USh) Mean 2,585.3450 4,017.1100 26.4700 3,448.5900 29.5850 137.3300 3.9820 1.6875 1.6015 12.9170 250.9600 Kigali (RwF) Mean 649.8243 106.1648 861.4721 1,007.6826 6.6214 0.4290 34.7929 7.5448 0.4111 0.2547 175.4100 9.5146 171.7844 62.2610 Bujumbura (FBu) Mean 15.7505 2,402.8835 1,538.1900 2,051.3302 17.5793 153.8190 0.9513 0.5978 2.3774

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 11600 0 47300 31200 0 0 0 0 0 315100 0 0 33800

No. of Deals

Kigali - RSE Total Shares Traded Previous Today Previous 184 21,300 860 2.800 700 175 2,800 1,200 1,000

Forex (Central Bank Rates)

Number of shares traded 0 290272 0 0 0 453 1012 0 8000 0 0 0 0 51896 0 0 0 Price (Ush) High Low 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 25 25 0 0 365 360 0 0

Equity Turnover (Rwf) Today Previous 3,856,200 2,406,000 602,000 490,000 1,200,000

Market Capital (Tsh) Billions 12.95 1097.13 11.61 686.00 151.54 82.08 485.79 33.91 910.00 1481.50 1317.96 210.96 1298.07 565.90 487.07 5396.73 92.08

Foreign holding 5.84% 67.63 47.60 75.00 62.50 72.00 69.25 0.07% 38.57 N/A N/A N/A N/A 15.47 N/A N/A 34.13

Turnover (Ushs) Closing 1,489 2,600 115 685 1,030 8,873 980 7,960 277 1,268 35 9,345 605 25 30 365 230

0 0 0 0 0 0 0 0 0 0 0 0 0 33,458,675 0 390,365,750 0 423,824,425

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

Buying 87.6856 136.1370 116.1867 8.4893 29.6202 18.5241 7.4965 17.8270 23.8730 0.8934 1.3067 23.3816 14.3275

Selling 87.5967 135.9840 116.0540 8.4744 29.5332 18.4483 7.4262 17.5238 23.8485 0.8926 1.3053 23.3563 14.3128

Buying 1,603.3762 2,482.9884 2,123.3512 16.2812 24.0928 155.2907 436.5304 427.5214 18.3243 0.6148 1.5351

Selling 1,619.4100 2,508.6280 2,145.0705 16.4407 24.3301 156.2383 440.8837 431.7736 18.4443 0.6248 1.5467

Buying 2,581.2600 4,010.7600 26.4300 3,443.1400 29.5400 137.1200 3.9760 1.6850 1.5990 12.8970 250.5700

Selling 2,589.4300 4,023.4600 26.5100 3,454.0400 29.6300 137.5400 3.9880 1.6900 1.6040 12.9370 251.3500

Buying 643.6510 105.1563 853.2881 998.1096 6.5585 0.4250 34.4624 7.4731 0.4072 0.2523 173.7436 9.4242 170.1525 61.6695

Selling 655.9977 107.1734 869.6561 1,017.2556 6.6843 0.4331 35.1235 7.6164 0.4150 0.2571 177.0764 9.6050 173.4164 62.8525

Buying 15.6245 2,383.6604 1,525.8845 2,034.9195 17.4387 152.5884 0.9437 0.5930 2.3584

Selling 15.8765 2,422.1066 1,550.4955 2,067.7408 17.7199 155.0496 0.9589 0.6026 2.3964

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 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

- 98kg

33.44 38.22 18.93 18.93

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

East african BusinEss WEEk • SEPTEMBER 2 - 8, 2013

Kenya ponders PSV night ban BY HUMPHREY LILOBA NAIROBI, KENYA--Kenya is considering banning Public Service Vehicles moving during the night in a bid to limit runaway accidents and considerable loss of lives. The announcement by Transport Secre-

tary Michael Kamau late last week comes in the wake of increased road accidents with the latest involving a public service bus that rolled into a valley killing a record 41 passengers and injuring 33. A section of Kenyans however reacted angrily to the directive accusing the government of resorting to knee-jerk mea-

sures everytime it abdicates its responsibilities on the roads.“The government is solely to blame for the carnage on our roads. The traffic police are utterly corrupt, to the extend that they allow public service vehicles without insurance and inspection certificates on the roads,” said William Odongo who lost a relative in the accident

that occured in Narok.Regional countries like Tanzania have already banned night transport by public service vehicles.The announcement however flies in the face of sustained government efforts to transform Kenya into a 24-hour economy. The plan is first of all to start with major towns before rolling out into other areas.

TENDER NO TI C E: REQ UEST FO R EXPRESSI O N O F I NTEREST TENDER TITLE: CONSULTANCY SERVICES TO DESIGN, DEVELOP AND IMPLEMENT A DRIVER LICENSE AND VEHICLE SAFETY (DL&VS) INFORMATION MANAGEMENT SYSTEM FOR TRAFFIC AND ROAD SAFETY DEPARTMENT TENDER REFERENC E No: 07 / S/ 2013- 2014/ I O / RNP/ TRAFFI C FUNDS TI MEFRAME: EI GHTEEN (18) MO NTHS TERMS O F REFERENC E I . I NTRO DUC TI O N AND BAC K GRO UND The Rwanda ational Police wishes to moderni e the delivery of its ey services particularly those related to road safety in order to improve efficiency through the usage of Information and Communication Technology (ICTs). n support of the nstitutional mandate of ensuring safety of Rwanda’s roads the Traffic and Road Safety Department is the authority for driver license testing and issuance vehicle accident management Motor vehicle nspection administering fines and penalties and ensuring road safety. hile a certain level of automation has been reached for some sta eholders the traffic and safety road department is yet to achieve a good level of automation and on a big not relies on manual paper based processes to support its operations. The Traffic and Road Safety Department wishes to establish a technology infrastructure that will increase the overall productivity and efficiency in both operational and administrative procedures. n light of the above the Rwanda ational Police intents to hire a qualified consultant consultancy firm to design develop and implement a Drive icense and ehicle Safety nformation Management System. I I . O BJEC TI V ES AND K EY RESUL TS EXPEC TED The main goal of this pro ect is to implement an T infrastructure that will improve the overall productivity and efficiency in operational and administrative procedures by electronically: a. Collecting, processing, disseminating driver license application data; b. Allowing for the scheduling and sharing of a driver license test calendar with applicants; c. Conducting theory driving tests; d. apturing specific traffic violations; e. acilitating the verification of payments made for traffic services from ban s and other financial means; f. llowing the public to register and transact with the department via SMS and the online portal regarding status on vehicle inspection traffic violations and quality of services offered by Police officers; g. llowing Police field officers to remotely transact with Police and other sta eholder’s databases in support of their duties; h. Allowing the automatic number plate recognition technologies to be used. I I I . SC O PE O F SERV I C ES The consultant shall render the following services: 1. Through consultative sessions with the responsible departments and services, gain a comprehensive understanding of the road safety department current wor processes information ows and business requirements in the following areas: a. Driver license application and test administration; b. Driver license issuance and renewals; c. V ehicle safety inspections; d. V ehicle accidents case information; e. erifications on plate number and drive license authenticity vehicle accident and offense history insurance and technical inspection status using mobile devices (Cameras and Handheld devices); f. dministration of fines and penalties; g. Exhibit management; h. Monitoring fines payment; i. erification on payments for services done through other agencies RR B KS etc. . otifications and alerts on vehicle inspection and driving license expiry; and delays in fine payment through SMS and mails; 2. Articulate the design principles that will ensure that a well architected and sustainable solution that meets the business requirements is formulated. 3. Ta ing into account existing computing capacity at the Rwanda ational Police R P ational dentity gency D Rwanda Revenue uthority RR Broad Band Systems orporations BS Telecom ompanies MT RT T O nsurance ompanies Ban s and any other stakeholders, design a technology architecture that will incorporate the requirement for: a. Deploying a secure reliable and sustainable operational environment; b. A highly scalable, multi-tier application system that will make use of web based technology rendering the user interface through a web browser; c. nterfacing connectivity with sta eholders systems RR D BS Telecoms nsurance ompanies and Ban s ; d. Deploying both static and mobile cameras for automatic number plate recognition PR that can support the capture of traffic violations static cameras ; and mobile PR cameras that offer real time reading to establish vehicle status regarding technical inspections insurance and traffic offense history; e. nabling payment of traffic fees through ban s and mobile money transfers and verification of payments made for traffic services through other agencies; f. Providing the public with secure online access to the system functions including: i. Driver license application; ii. Driver examination scheduling; iii. Driver examination results; iv. Traffic Offense and Penalty-point status; v. ehicle nspection Scheduling; vi. V ehicle Inspection History; vii. ehicle ccident Status; viii. ehicle Offenses Status; g. nabling the electronic notification of the events such as ehcile nspection Traffic violations driver’s license expiry reminders through email and or SMS; . dentifying the capacity shortfalls that would need to be filled through training and development to ensure continuity. . Develop a communications mechanism that will promote nowledge transfer and participation by the R P software development team; 6. Establish the development, pre-production, production and back up environment for the solution; . Design develop and implement the Driver icense and ehicle Safety nformation Management System:

a. Designing and implementing a central database that R P can further enhance and support; b. Designing a web based application and implementing the required software components ensuring the system as well meets non-functional specifications availability performance security reliability scalability and interoperability ; c. Designing and implementing an utomatic umber Plate Recognition System PR ; d. Designing and implementing an electronic fine payment system; e. Designing and implementing the required online services; . Supply install configure and test all software and related components required for Driver icense and ehicle Safety nformation Management System; and 9. Provide local support maintenance and training of the Driver icense and ehicle Safety nformation Management System. I V .Q UAL I FI C ATI O NS REQ UI REMENTS AND EXPERI ENC E

Experience

The consultants onsultancy firm must indicate their interest in providing the software solutions equipment and all associated services to deliver a wor ing solution. To qualify the interested consultant consultancy firm must provide the following information: minimum of five years of experience in the field of web application development and at least two 2 years in mobile application development and shall provide a brief summary of proven experiences and capabilities in developing solutions of similar nature, siz e and scope; Provide CV s of any key staff with concrete evidence of previous experiences held in implementation of any similar solutions.

Pro ect Team and Experience

The consultant could identify all proposed team members if any and their role in the project. For each proposed member indicate: ame; Role in the pro ect; brief description of the individual’s qualifications and their experience both Professional and practical.

anguage Requirements:

Excellent communication skills ( both written and verbal English)

V . REMUNERATI O N AND O THER C O NSI DERATI O NS - The client is responsible for costs and expenses incurred while carrying out the terms of the study as contracted including transport and accommodation. - Payment will be made in relevant measurement milestones with the accompanying deliverable s to be specified by interested parties. - The activities listed in the TOR are the minimum requirements to be underta en. The consultant may also provide additional requirements that may benefit the R P in meeting their goal. - The project shall not exceed eighteen (18) months which includes requirements analysis, system design, development, installation and training. - The selected candidates should ensure their availability for the stipulated period to complete the task. V I .SUBMI SSI O N f you have the required qualifications and are interested in this consultancy please submit: - Letter of Expression of Interest; - Y our CV with a short statement in English (not more than 200 words) highlighting why you consider yourself to be the most suitable candidate for this assignment; - Please note that Submissions by -mail B PT D: ptcpolice@ ymail.com; - Submission Deadline: 10/ 10/ 2013 not later than 9:30 AM local time, at the Rwanda National Police Headquarters, Police Procurement Office clearly mar ed xpression of nterest for consultancy services to design develop and implement a driver license and vehicle safety D S information management system for Traffic and Road Safety Department ; - After submission of expression of interest, the shortlisted consultant shall be convened for a face to face meeting in form of a workshop which will be arranged at the Rwanda National Police Headquarters where the scope will be discussed in detail before the submission of proposals. Done at Kigali on 1 0 2013

Jean Marie TW AGI RAY EZ U AC P Acting C ommissioner for Finance & C hief Bugdet Manager

EAST AFRICAN BUSINESS WEEK . SEPTEMBER 2-8, 2013

HEALTH

Dar to host HRH for health meet BY LEONARD MAGOMBA DAR ES SALAAM, TANZANIA-President Jakaya Kikwete of Tanzania is set to officiate the opening of the first ever national conference on human resources for health (HRH) in Dar es Salaam. The Minister for Health, Dr Hussein Mwinyi told EABW will highlight issues critical to mitigating the HRH crisis in Tanzania including: planning and recruitment, production, retention, productivity and performance management. He said: “Most critically, out of the technical sessions, the conference will explore proposals and advocacy for national commitments by the Government and partners to alleviate the HRH crisis.” The three-day conference will take place on September 3 to 5. Mwinyi said, the forum will also provide an avenue for inputs into the current process of developing the next National HRH Strategic Plan (2014-2019) and operationalization of the Public Service Pay and Incentive Policy of 2011. He said: “In light of major investments in information

TZ President Kikwete will officiate the meeting technology and management research and practice, the conference will provide an opportunity to update the status of the problem. To take stock of where the country stands in regards to the infusion of financial resources, multiplicity of programs and variety of research initiatives,” he said. It will be one mechanism to assess progress by the government and donor partners to achieve goals outlined in the 2008-2013 National HRH Strategic Plan and

Dr. Hussein Mwinyi, TZ Minister of Heath

subsequent agreements. Leaders from district councils will be invited to share their experiences in putting policy into action, improving HR management practices and motivating their staff. The objectives will be: To share evidence-based best practices from a wide variety of HRH initiatives in the public, faithbased and private sectors. To provide a platform to accelerate the implementation of existing policies on recruitment, retention,

performance, education, training and management of the health workforce. To identify and advocate for key priorities and increased resources, both national and international, to be incorporated in the new HRH Strategic Plan, 2014-2019. To propose and advocate for national commitments to be declared by the Tanzania delegation at the 3rd Global Forum for HRH which be held in November 2013. The Ministry of Health and Social Welfare in close

collaboration with the PrimeMinister’s Office Regional Administration and Local Government and President’s Office Public Service Management has will host this Conference. This will be with the support of the partners under the leadership of Benjamin W. Mkapa HIV/AIDS Foundation and IntraHealth International. Over 200 participants and speakers representing national, regional, and local government; regulatory bodies and professional associations; Faith Based Organizations (FBOs) and private organizations, civil society organizations; international NGOs; and donors will participate. The meeting will be financed by United States Agency for International Development, CIDA, World Health Organization, the German Government through GIZ, the Touch Foundation, National Social Security Fund and the Bank M. HRH is the single largest impediment to scaling up access to health services and achieving the Millennium Development Goals and universal access to health. The 2006 WHO Report revealed an estimated shortage of almost 4.3 million of health care workers worldwide.

TZ stakeholders cry foul over food safety BY KENAN KALAGHO DAR ES SALAAM, TANZANIA --Food safety is a global concern, with many people failing to find answers on how substandard food products reach consumers. Despite setting rules and standard procedural guidelines the quality of food is being compromised at the expense of peoples health. Mr. Hiiti Sillo, the Director General of Tanzania Food and Drug Authority (TFDA) said there is need for a complex and collaborative approach to fight against the production, exportation and importation of dangerous and substandard food and related products that endanger human health. He issued this caution during a workshop organised by the European Union on food safety recently in Dar es Salaam. Sillo said: “The joint efforts and collaboration among all the

stakeholders in the production sector are very essential in the fight against the flooding of unsafe and substandard products in the country.” In the past the Government through TFDA developed systems for control of food and other harmful products like cosmetics in the context of protecting the public health. However, people who want to gain super normal profits at the expense of human life are inventning new sophisticated methods of importing and exporting food from one country to another and across domestic markets. He said the European Union (EU) and African Caribbean and Pacific (ACP) group of states are duty bound to set up an effective and strategic intervention to check the safety, standard of food exports and imports across the continent. Sillo said it was important for the countries to focus more on corporation and consultations.

LAB TESTING: TFDA tests foods in laboratories to determine their safety for consumption “Food producers, processors and traders who are involved in the production chains including exportation and importation need to be involved. These include stakeholders from the private sector, researchers, academia, farmers and consumers. According to Mr. Alexandre Serres, the Programme Officer In-Charge of the Agriculture/ Food Security Desk at the EU delegation in Tanzania there is need to understand the risk and identify challenges of substandard. He said: “We would support any initiative that requires that food exports from ACP countries to the EU market are

safe and meet international requirements. The four day workshop drew representatives from the Government, private entities, agro-processing industries and other sectors of production. It was held under the EDES Food Safety Programme funded by the EU at a cost of Euro 29.2m. This is meant to improve the standard and safety of food exported and imported across EU and ACP countries. The ultimate objective of EDES is to guarantee food safety in the ACP and the EU, and therefore to have a coherent national system for all products while avoiding the development of two-tier food safety systems.

“

The European Union and African Caribbean and Pacific group of states are bound to setup a strategic intervention to check the safety standard of food exports and imports

EAST AFRICAN BUSINESS WEEK . SEPTEMBER 2-8, 2013

FINANCE

How to plan for company success

BY HOPE WILSON, CPSM MARKETING MOXIE K A M PA L A , U G A N DA - “How does your company currently conduct its marketing efforts?” I asked the executive seated across the table from me. He paused to sip his latte. “To be honest,” he said, “we don’t think about it very much. Sometimes, we get a phone call from someone who wants us to buy an ad or sponsor an event. Our receptionist handles it.” Whether I’m working with firms in the USA—my home country—or abroad, I find that this is a typical response to marketing. Many firms will launch a website and purchase some advertisements. Others will visit companies to discuss partnerships and sales. But a relatively small percentage takes full advantage of these and other opportunities by creating and maintaining a comprehensive marketing plan. But where do you begin? I’ll address various aspects of planning in greater depth in future articles. But here is an overview of some components that will help you to get started on the right path. SWOT Analysis To find the best path towards growth, we must fully understand the company’s current position. I recommend that companies begin the planning process with a SWOT analysis: an evaluation of their current (S) strengths, (W) weaknesses, (O) opportunities, and (T) threats. Strengths and Weaknesses In the SWOT analysis, the strengths and weaknesses pertain to internal assets and detriments. Here are some things to consider when assessing your strengths and weaknesses: l Quality of products and services l Profitability of company/ overhead costs

To find the best part towards growth, we must fully understand the company’s current positiion l Efficiency and effectiveness of procedures and processes l Skill level of employees l Availability of physical and financial resources Opportunities and Threats Now, it is time to assess the external forces that create opportunities and threats to your company. Consider how the company can maximize its growth and mitigate any challenges that are outside of your control, including: l Trends in the economy, industry, and physical environment l Changes in government/laws l Innovations in technology and processes l Market demographics l Funding availability and requirements l Be sure to write down your responses; these will be important for reference throughout the planning and evaluation process. Customer Analysis Understanding customers—and potential customers—is vital to success. l Consider their demographics, including age, gender, education, income, occupation, geographic location, and cultural background l Consider their psychographics, such as their values, interests, attitudes, and personalities l Look at the existing purchase behavior of your customers How often do they purchase

your product? How often do they purchase a similar product from your competitor? Competitive Analysis Examine the companies that compete with your own. l How do their products/services, price, and distribution compare with yours? l What promotional activities are they involved in? l Most importantly, what makes your company different from

There are four Ps of marketing: Product, Price, Place and Promotiion. Many experts believe additional Ps should be added to the list

theirs? What benefits do you provide to clients that they do not? The Marketing Mix Now it is time to consider the marketing mix. l Traditionally, there are four Ps of marketing: product, price, place (distribution), and promotion. Many experts, including me, believe additional Ps should be added to this list. But

that is a discussion for another article. For now, examine: l Products/services. Study the products and/or services that your company currently offers Do they fit within your company’s mission and long-term goals? Do they meet the needs of your current or potential customers? How are they different from your competitions? l Price. Naturally, your prices need to be high enough to make a profit, while also being in a price range that is affordable for your target markets and appropriate for the competitive environment. Do you need to adjust the prices of your products and services to accomplish this? Do you need to adjust your overhead costs to lower prices while maintaining profitability? Can you provide discounts and sales incentives? l Place. Target markets should be able to easily access products and services. Consider where the goods are sold, how they are transported, where inventory is stored, and the processes pertaining to this. Is it easy for your customers to submit orders? Are the products delivered in a timely manner, with minimal damage or loss? l Promotion. The goal of promotion is to share information about your product or services so that your target markets respond in the desired manner—such as making a purchase. What message do you want your target markets to receive? Are you using

the best marketing channels to reach your audience? Control and Evaluation It is important to identify measurable goals with clear deadlines, schedules, and budgets. This makes it possible to accurately track the investment and measure the financial success of your effort. This information will also help direct your plan in future years. There are many facets of planning, and each industry has unique needs and opportunities that merit consideration and customization within the strategic process. However, these fundamentals provide a strong basic framework that can provide companies with a competitive advantage in their markets.

Hope Wilson, CPSM, is President of Wilson Business Growth Consultants, a firm that provides business strategy and communications consulting services. Specializing in infrastructure development. Hope has received eight international awards for her work. She joins East African Business Week as our new marketing columnist. Have a question about marketing? Email hope@wilsonbgc.com

East african BusinnEss WEEk • SEPTEMBER 2 - 8, 2013

NEWS

Plants make breathing easier Many people develop mysterious illnesses and allergies from the place they least expect: Their homes! That’s because we can be surrounded by toxins such as xylene, a pollutant found in paints and glues; benzene, found in paints, glues, detergents, furniture wax, and tobacco smoke; formaldehyde, contained in processed wood products, foam insulation, some synthetic fabrics, cosmetics and shampoos; and perchloroethylene, or PERC, used by the majority

of dry cleaners. These toxins usually enter our systems when we breathe them in as products off-gassing — what happens when material “breathes out” a level of pollution. Next time you go shopping for home cleaning supplies, consider adding large-leaved houseplants for every room in the house. They reduce unhealthy pollutants as well as airborne bacteria and fungi while adding the humidity needed to combat respiratory and allergic conditions.

SINCE 1983 Plot 82 Kiira Road, Bukoto/ Plot 62 Kampala Road P.O. Box 2876 Kampala - Uganda Tel : +256 414 233 611 Fax : +256 414 341 048, +256 312 262 802 Email : biplous@rihamgroup.com, biplousbukoto@gmail.com Website: www.biplous.com Furniture, Curtains, Sofa Fabrics & Upholstery, Tiles, Carpets, Aluminium

BED-ROOM SETS

LIVING ROOM SETS

DECORATIONS ASSORTED CURTAINS

CENTRE TABLES

According to NASA research, indoor air pollution can be a major threat to our health. Since these guys send astronauts into space and confine them in compartments over an extended period, they have an idea of what they are talking about. To determine how the earth produces and sustains clean air through plants, NASA scientists studied plants in controlled environments. The researchers found that houseplants can purify and revitalize air in our homes and offices, protecting us from the negative effects of such common toxins as ammonia, formaldehyde, and benzene. For years, people have been told to stay indoors during smog alerts. Today, the list of known indoor pollutants is long and largely unknown to many of us. Asbestos, pesticides, fumes from detergents and solvents, fibers from carpets, draperies, insulation, even glass— not to mention mold and tobacco smoke—all add up to a cleanup best tackled by Mother Nature. Plant leaves are able to absorb pollutants and send them to the roots, where they become food for microbes. Houseplants can be very beneficial in our lives. They purify and renew our stale indoor air by filtering out toxins, pollutants and the carbon dioxide we exhale - replacing them with life sustaining oxygen! Although it should be safe to presume that all plants are capable of removing toxins from our air, research by NASA showed that some house plants are more efficient in filtering out toxins than

A house plant decorated in the house. others. Philodendrons, Spider plants, and Pothos were found to be the most efficient in the removal of formaldehyde.

Gerbera Daisies and Chrysanthemums were found to be effective in the removal of benzene, a known carcinogen. As a rule of thumb, allow one houseplant a relatively large living area. The more vigorous the plant, the more air it can filter. However, keep in mind that plants will not do much to alleviate tobacco smoke or dust in the air. To get the most out of your houseplants, set them up (two to three per room) so there is plenty of space around each one for ideal air circulation. Keep the air moist by misting plants. Avoid locations in

the rooms where there are drafts or sudden temperature changes. Pollutants are absorbed through the leaves, so keep the leaves clear of dust by wiping gently with a damp cloth. In the future, we will be cleaning up environmental pollution with plants. Right now, add houseplants to each room to clean the air you and your family breathe. In the pursuit of healthier indoor air quality for your apartment, house plants should be your first line of defense. Bring some home today to beautify and detoxify your home.

East african BusinnEss WEEk • SEPTEMBER 2 - 8, 2013

SPORTS

Defending title won’t be easy –Warriors BY BAZ WAISWA Kampala, Uganda –The Uganda Airtel National Basketball League champions, Riham Warriors, will find it hard to defend this year’s title because of the emergency of new teams that are posing a threat to their dominance. Teams like Ndejje Angels, KIU Titans, City Oilers and old foes D-Mark Power, UCU Canons and Falcons are posing a threat to their quest of winning the title for the second successive year. These are fears expressed by Brian Gumisiriza, a top official and for mer player who expressed his thoughts in an interview exploring the state of affairs at the club.Mid Last week, the champions rallied to a 72-47 win over Charging Rhino on Wednesday after back to back losses to Ndejje Angels and Nkumba Marines the previous weeks. Gumisiriza, a manager at the club, is well aware that it’s going to be a tough task to retain the championship they first won in 2009.“It’s going to be hard to win it again, of course being the champions every team comes well aware of what we can do to them, so they come hard,” Gumisiriza said. “But we have the team to win the championship and that’s our major aim to win it (tittle),” he adds. He blames the two consecutive

FIFA WORLD CUP QUALIFIERS Fri, 06 Sep

Republic of Ireland vs. Sweden

20h40

SS5HD/SS5

Fri, 06 Sep

England vs. Moldova

20h55

SS3HD/SS3

Fri, 06 Sep

Colombia vs. Ecuador

22h25

SS6HD/SS6

Sat, 07 Sep

Paraguay vs. Bolivia

00h25

SS3/SS3N

Sat, 07 Sep

Chile vs. Venezuela

02h25

SS3HD/SS3

Sat, 07 Sep

Peru vs. Uruguay

04h25

SS3/SS3N

AFRICAN LEAGUES Sat, 07 Sep

Zambia: F.Rangers vs. Kabwe Warriors

12h45

Select

Sat, 07 Sep

Zambia: L. Hotspur vs. Napsa Stars

14h55

Select

Sun,08 Sep Zambia: Roan United vs. Nkwazi Sun,08 Sep Zambia: P. Dynamos vs. Zesco Utd

12h45

SS9/Select

14h55

SS9/Select

CAF CHAMPIONS LEAGUE Sun,01 Sep Zamalek vs. Orlando Pirates Sun,01 Sep Recreativo de Libolo vs. Coton Sport

15h55 SS4HD/SS4 15h25 Maximo360

FIBA EUROBASKET CHAMPIONSHIP A Riham Warriors player (C) in league action losses on fatigue attained during the zone 5 championship in Bujumbura, Burundi where they finished fourth. “We were fatigued by the trip to Bujumbura and our preparations for those two games were not sufficient,” Riham Warriors lost four of the title winning squad members to their opponents including all time league top scorer Steven Okias who went to Ndejje Angels, Nor man Blick retur ned to D-Mark Power, Cyrus Kiviri went UCU Canons and Michael Kariuki.

Despite so far losing four games this season, Warriors are confident of making the playoffs quarterfinals which will give them a chance to win the championship, that’s if they improve on their game.Well aware of the situation, Warriors are not worried of not making the top eight to be part of the playoffs; they are worried of the competition that comes with playing the playoffs. “We will be part of the playoffs but that’s were its going to get tough, we are aware and we have a strategy for that,” Gumisiriza promises.

SuperSport, NBA ink digital partnership deal JOHANNESBURG, SOUTH AFRICA – The National Basketball Association (NBA) and SuperSport, last week announced a new multiyear television and digital partnership that will have NBA games and prog ramming televised in 47 territories in Sub-Saharan Africa. This follows sports channel ESPN’s announcement that it was going to withdraw all its channels from the satellite TV. For the first time, NBA content will be available on SuperSport, offering unparalleled broadcasts across the continent on multiple platfor ms. “This is unquestionably one of the jewels in our crown,” said Brandon Foot, SuperSport’s Head of Acquisitions and Legal. “Some of the greatest names in sport have played in the NBA, so

LIVE TV GAMES

it is only fitting that they come to the ‘World of Champions’ where the best sport is broadcast. Basketball has gained a strong foothold in Africa, so we are delighted to acquire rights to one of the biggest and best-run leagues in world sport. We will now proudly broadcast the most NBA action on the continent.” Beginning with the 2013-14 season, SuperSport will exclusively televise up to three live regular season games per week, as well as NBA All-Star, The Playoffs and The Finals in multiple languages. Coverage also includes all preseason and regular season games being played in Europe. Basketball fans will receive more exciting NBA content, including episodes of “The Association”, the NBA-produced documentary that gives fans and viewers inside access to

some of the biggest teams in the NBA. The partnership will also include some of the greatest games in NBA history including 20 classic games per year and 20 of the greatest games from the previous season. Johannesburg is currently playing host to the 11th edition of Basketball without Borders (BWB) Africa, a global basketball development and social responsibility program run in partnership with the NBA and the Inter national Basketball Federation (FIBA). The NBA has been staging activities in Africa for over 20 years and opened an office in Johannesburg in 2010. Thirty African players have played in the NBA, with six featured on NBA rosters during the 2012-13 season.

Wed,4 Sep

France vs. Germany

20h50

SS6/Maximo

Thu, 5 Sep

Lithuania vs. Macedonia

20h50

SS6HD

Fri, 06 Sep

Macedonia vs. Serbia

20h50

SS7/SS7N

Sat, 07 Sep

Turkey vs. Greece

20h50

SS5HD /SS5N

Sun, 8 Sep

Greece vs. Italy

17h35

SS7/SS7N

FORMULA ONE Sat, 07 Sep

Italian Grand Prix: Qualifying Sun,08 Sep Italian Grand Prix: Main Race

13h55 SS6/Maximo 13h30 SS1HDA

Tusker injects Ush100m into Uganda Open BY EMMA ONYANGO KAMPALA, UGANDA – The 71st edition of the Uganda Golf Open that kicks off on September 4 – 7, last week received a massive boost after Uganda Breweries Limited through their Tusker Malt brand injected Ush100m into the tour nament. The annual event is Uganda’s premier tournament and is one of the most sought after tour naments in the land attracting participants from Kenya, Rwanda, Tanzania and Uganda. Speaking during the announcement of the sponsorship at the Uganda Golf Union

(UGU) premises in Kampala last week, Mr. Kiryowa Kiwanuka, the Vice President UGU said that tour nament will be sub-divided into three categories; main tour nament (amateur), subsidiary (handicap 9-16) and the professionals. “We expect golfers from the East African region. So far 100 people have registered for the main tour nament, 80 for the subsidiary and between 40-45 for the professionals. This is the highest kitty we have ever received for the tour nament,” he said.Last year, Tusker Malt injected Ush69m into the tour nament and has almost doubled the offer this year to Ush100m.

East african BusinnEss WEEk • SEPTEMBER 2 - 8 ,2013 Unveiling Opportunities - www.busiweek.com

Locals lose out in Tanzania oil bidding

Rwanda tea talks highlight quality BY DIAS NYESIGA

BY PATRICK KISEMBO DAR ES SALAAM, TANZANIA Tanzanians in the downstream oil sector don’t stand a chance against foreign bidders in the bulk procurement system which is dominated by foreign companies. This was revealed last week by the Tanzania Private Sector Foundation (TPSF) during their first meeting of the newly elected Foundation board. Incoming TPSF Chairperson, Reginald Mengi told a news conference, very few Tanzanians will be able to win any bids which means few locals will benefit from the allocated money. The bulk procurement system has been running for two years now. In this system oil companies bid to supply fuel products at what the government considers to be the most attractive price prevailing at the time. In this fiscal year’s budget, the government allocated some Tsh14 trillion ($8.64 billion) for procurement purposes.Mengi called on the government to amend the Public Procurement Act (PPA), 2011 particularly the section on public procurement.“In order to improve the private sector’s participation, we need to amend the PPA Act, because in its current form, it limits the locals’ ability to benefit from their resources,” he said. He stressed that the law needs review in order to empower Tanzanians to win procurement tenders. TPSF Executive Director, Godfrey Simbeye agreed with Dr Mengi and also raised the issue of offshore

The oil storage tanks. gas exploration licenses in the southern parts of the country which predominantly are awarded to foreign companies over their local counterparts who should have been the priority group. He explained that the unproportional awarding of tenders was occasioned by the government’s move to seek out investors before the stakeholders completed formulation of the gas policy. “The government must not hurry in this process,” the Director insisted noting that as matters stand with the Act, “…there is no section that prioritises Tanzanians to participate in developing the resources,” he said. He argued that as long as the policy is not ready and the Act is not reviewed then the notion that Tanzanians have equal opportunity to compete for tenders as do foreign investors are but idealistic and not grounded in reality. In October 2012, the Foundation also urged the government to advocate

for proper management of resources particularly oil and gas by involving all stakeholders in order to keep the country from ending up with a resource curse situation. Simbeye was quoted during the gas and oil meeting which was organised by the Ministry of Energy and Minerals saying without doing so the wealth could becomes a source of confusion hence the state would end up in what has been described as “resource curse”. “The local private sector does not want us to end up with a resource curse situation and it is for that reason that we advocate for proper management of these resources by involving all stakeholders,” he said. “The local private sector is excited with the opportunities oil and gas has brought and we want to play a key role in this sector… we understand there are many challenges and hurdles but we are ready to face them because these are golden opportunities,” he said.

KIGALI, RWANDA— Quality and marketing dominated the 2nd International tea convention held here, with optimism that several other problems affecting this regional cash crop will be solved. Edward Mudibo, the Managing Director of the East African Tea Trade Association said last week, stakeholders in the tea business are looking at improving quality support and empower farmers to improve their production. “Of course the challenge our tea is facing is quality. Most of our exports are not value added so we must look at processing and packaging at the same time,” he told EABW. Mudibo is optimistic that improving the entire value chain within the sector will help the region earn more from tea exports, which ranks second after coffee. Building the capacity of importers and processors are seen as key in addressing the crop’s price fluctuations, low volumes and value. However the farmer, who is the last person in production chain, tends to benefit less than others. “We are looking at the entire value chain. We even go down to the gardens also to ensure that farmers are meeting the standards required,” Mudibo said. The Convention centred on setting the pace for the tea ‘explosion’ by building

momentum on the world market mainly looking at new tea products, quality improvement, latest industry developments, answer current business challenges, and provide real ‘take-away’ solutions for professionals. “The Convention was intended to help those new to the tea business learn more about the business, legal, and marketing aspects of the tea business,” Jean Damascene Gasarabwe, the acting Head of Tea Division at NAEB, said. He added: “It’s also a forum to help those who operate tea companies hone their knowledge and skills in many aspects of the tea business”. Rohith Peiris, the Director General of Sorwathe, said: “I believe bringing local producers, farmers and industry players from all over the world is the best way to give our tea mileage,” Rwanda’s leading tea producers and exporters. He said this provides excellent opportunities for closer ties between industry experts, world leaders in tea trade, financiers and marketers with outstanding business,investment opportunities for agencies interested in value addition and blending tea technology and equipment supplies. The convention attracted over 400 delegates from Rwanda, Uganda, Kenya, Tanzania, Burundi, Malawi, Mozambique, South Africa, Cameroon.

50,000 more clients to join prepaid system BY BAZ WAISWA KAMPALA, UGANDA--Electricity distribution company, Umeme, have plan to shift another 50,000 customers to the new prepaid metering system also known as Yaka before the end of the year. These will be an addition to the 15,000 who have been connected during the pilot period. Last year, Umeme rolled out its campaign to phase out the archaic postpaid metering system and introduced the prepaid metering which give customers a chance to determine and manage their usage of electricity since one can only buy a certain

amount of electricity. This will bring an end to the old conventional way of having Umeme personnels come to customers’ homes to take readings of the installed meter manually to determine the amount of electricity consumed by the user. Sometimes the utility company was accused of estimating the amount of electricity consumed by a client, this would in most cases result into high estimates that led to consumer being charged highly that what he or she actually used in a given time. Now that the pilot phase is almost done, Sam Zimbe, the General Manager Regulatory and Corporate Affairs at Umeme reveals that the complete roll out of the Yaka prepaid meters will be made

PUBLISHED BY EAST AFRICAN BUSINESS WEEK LTD. NAIROBI-KENYA: Panari Sky Centre Mombasa Rd. Tel: +254 20 829062, Fax +254 20 829063

KAMPALA-UGANDA: Plot 133 Kira Rd. Kamwokya Tel: +256 414 531345 Fax +256 414 531346

before the end of the year targeting 50000 customers in Kampala and others of the country. “The pilot project is now done, before the end of year we are now going to roll it and we are targeting to connect 46,000 customers. After that 80,000 customers per year will be connected. In the next four years we will have covered the entire customer base,” Zimbe said. He was speaking during a meeting where the company signed an agreement with Barclays Bank to extend their bills payment solution, Touchpay Service to enable the customers to pay for their electricity bills at the bank counter. The Umeme Touch Pay solution enables customers of Umeme to use the services

DAR ES SALAAM-TANZANIA: 1st floor Ubungo Plaza Tel: +255-22-2460820 Fax +255 22 2460647

of mobile money to pay their bills at anytime from anywhere and get real time confirmation of the transaction from the Telecoms and from Umeme. The same is also on offer from Umeme partner banks which now with the addition of Barclays amount to 13 banks, this means that Umeme customers no longer have to wait for days for reconciliation of accounts, days that sometimes meant the customers got disconnected. The banks and Umeme will now confirm all deposits made to your Umeme accounts within seconds via SMS to customers. The Touchpay service creates the convenience of customers avoiding long queues at Umeme offices and disconnection caused by delayed payment reconciliations

KIGALI-RWANDA: Trust House, 3rd Floor, Muhima Hill, Nyabugogo Ave, Tel: +250 504165

BUJUMBURA-BURUNDI: Rohero 2, Avenue du progres Plot 213 Tel: +25779453132