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Burdened by too few taxpayers
Zambian airline starts Tanzanian flights
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A F R I C A N
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UNVEILING OPPORTUNITIES
VOL. 9, ISSUE 13 NOVEMBER 4 - 10, 2013
KSH40; TZSH1000; USH1,500; RWF600; BIF 1,500; 5BIRR,SS£ 2.5
EAC banks lose $30m
BY HUMPHREY LILOBA
nNAIROBI, Kenya – A new survey released last week reveals that financial institutions in East Africa may have lost some $30million to financial crime last year alone.
The Deloitte Financial Crime Survey 2013 released last week paints a grim picture of the state of financial fraud in the region with most institutions reporting heavy losses. The survey indicates that 70 % of the financial crimes committed in East Africa last year were through cash theft. Part of it was
through loss of cash in transit, a nice way of describing highway bank robbers. The survey interviewed among others, banking institutions, insurance companies, real estate companies and the capital markets across East Africa to state what they felt they lost to fraud and other crimes.
BY HUMPHREY LILOBA nDAR ES SALAAM, Tanzania---The government through the Ministry of Transport, is planning to remain with only three road checkpoints in a move to reduce cargo and passenger traffic delays. Addressing participants at the Seventh Annual Joint Transport Sector Review meeting in Dar es Salaam last week, the transport minister Dr .Harrison Mwakyembe said the government has already reduced the number of road checkpoints from 56 to 15. He said if these were further reduced to just three, it will sharply slash the time spent on the road from the current 3.5 days to 2.5 days for trucks transporting cargo from Dar es Salaam to the border of
BY PAUL TENTENA nADDIS ABABA, Ethiopia- In recent years, Ethiopia has transformed itself into a regional player and last week secured $1.26 billion for the Ethiopia - Kenya high-voltage transmission line, due for completion in 2015. Once completed, the economic benefits for Ethiopia and its neighbouring economies will be felt far and wide. According to a statement set to East African Business Week last week, the project is co-funded by the World Bank, the African Development Bank, the French Development Agency and the Ethiopian and Kenyan governments, and is already resulting in valuable tenders. Construction companies should pay considerable attention to these opportunities and how this will open up the market to the private sector.
MORE ENERGY: The $289 million Ashegoda wind farm was inaugurated recently contributing 120MW to Ethiopia’s national grid. FILE PHOTO
Rwanda tops EAC for business nKIGALI, Rwanda--Once again Rwanda comes out top in the East African Community as the easiest place to do business according to the latest World Bank/International Finance Corporation Doing Business survey. Singapore and Hong Kong top the World Bank’s annual ranking of the best places to run a business, while Rwanda, Russia and the Ukraine were among the countries that made the most progress in improving their business climates. The 10 economies topping that list this year are (in order of improve-
TO PAGE 2
Tz slashing road checks to three
Ethiopia seals $1.2b funding
TO PAGE 2
According to Deloitte Forensic Services, East Africa Director Robert Nyamu, the situation could be worse given that some financial institutions are conservative about revealing the extent of such incidents for fear of send-
ment) Ukraine, Rwanda, the Russian Federation, the Philippines, Kosovo, Djibouti, Côte d’Ivoire, Burundi, the former Yugoslav Republic of Macedonia, and Guatemala Highlights for Rwanda include that it is free to register a business and the process is easily done online. Applicants can get their certificates within three days. The survey states that Singapore retained its position at number one for the eighth straight year, followed by Hong Kong, New Zealand and the TO PAGE 2
Burundi climbs up 17 places - Report BY RENOVAT NIMBONA nBUJUMBURA, Burundi--The World Bank has commended Burundi for improving its ranking in the Doing Business 2014 survey. The report ranks Burundi 140th out of 189 world economies assessed, with a jump of 17 places compared to last year’s rank of 157th . The World Bank praised Burundi for having remarkable progress in reforms to improve the business climate after a short interlude of reforms. Burundi is also praised by the bank for being TO PAGE 2
Kenya to set mining lab BY HUMPHREY LILOBA nNAIROBI, Kenya-- Kenya has announced plans to set up a minerals laboratory in a bid to attract more investors in mining industry and drastically reduce set-up costs. According to Mining Cabinet Secretary Najib Balala, the government has already put aside $1.2 million towards the construction of the construction of the new facility. In putting up the facility, Balala said last week, the government plans to work with an internationally recognised agency through a public private partnership to ensure that it is well equipped and responsive to the local and regional needs. Mineral testing is one of the items that eat into the capital of mineral propectors thus turning away many would be investors. TO PAGE 2
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NEWS
East African Business Week I November 4-10, 2013
Rwanda tops EAC in doing business FROM PAGE 1 United States. The bank says Ukraine was the country with the greatest improvement since last year, jumping 28 spots, from 140th to 112th place. Rwanda, which was credited as having made the most progress since 2005, jumped 20 places, to 32nd. Russia also moved up 20 places, from 112th last year to 92nd this year. The worst places for doing business are Chad, the Central African Republic, Libya,, South Sudan and the Republic of Congo. Since 2009, 92% of countries in the region have improved their process for starting a business – a higher share than any other region, says the World Bank-IFC survey, published since 2003. Europe and Central Asia has overtaken East Asia and the Pacific over time as the second most business-friendly after the OECD economies. In Africa, 66% of countries enacted at least one reform last year, vs. 33% in 2005. Nine African countries are among the top 20 most improved in terms of business regulations since 2009: Benin, Burundi, Cote d’Ivoire, Ghana, GuineaBissau, Liberia, Rwanda, Sierra Leone, and Togo. ‘Doing Business 2014’covers 189 economies and 10 indicator sets: starting a business, dealing with construction permits, getting electricity, registering property, paying taxes, trading across borders, getting credit, protecting investors, enforcing contracts, resolving insolvency. This year marks the 1th edition in the series. The survey reveals that the pace of business regulation reform in the past year has picked up, with 114 economies
President Kagame of the Republic of Rwanda FILE PHOTOS enacting 238 reforms compared to 108 economies and 201 reforms in 2011-12. “This year, we see a higher number of reforms – 18% more – the second-highest number since the financial crisis,” Rita Ramalho, the program manager for Doing Business at the World Bank Group said. She said, “This pick-up in pace of regulatory reform is good news particularly for small and medium-size businesses – the main job creators in many parts of the world.” The increase is part of a decade-long trend in which countries are shortening the amount of time it takes to start a business and streamlining the process of exporting or importing goods, to name two examples of reform.
While Organization for Economic Co-operation and Development (OECD) high-income economies continue to perform the best across most areas measured by Doing Business, Eastern Europe and Central Asia is narrowing that gap. In 3 of the 10 areas, Europe and Central Asia is at the same level or ahead, and falls close behind in another two. Since 2009, 92% of countries in the region have improved their process for starting a business – a higher share than any other region, says the World Bank-IFC survey, published since 2003. Europe and Central Asia has overtaken East Asia and the Pacific over time as the second most business-friendly after the OECD economies.
EAC banks lose $30m to fraud ing the wrong signals to the market. “These figures are likely to be significantly understated given that a majority of players in the financial services industry opt not to report incidences of financial crimes, which may have a bearing on the perception of
their prevalence and impact in the industry,” Nyamu said, after launching the report. Financial institutions are currently engaged in efforts to tame fraud especially related to credit and debit cards.In Kenya for instance, the Kenya Bankers Association, which is the industry
umbrella, is rallying members to replace the current magnetic strip credit cards with the modern chip cards to cut down on fraudulent cases.According to the Deloitte survey, the most prevalent forms of financial crimes across East Africa are cash theft, cheque fraud and
asset misappropriation. The rate at which the crimes happen however vary from country to country within the region. Cheque fraud was highest in Uganda—where it accounted for half of the financial crimes, followed closely by Kenya.
Tanzania slashing road checks to 3 Rwanda and Burundi. “Plans are underway to lower checkpoints to only three that will be utilizing electronic cargo trucking systems. Construction of those three checkpoints is underway,” Dr Mwakyembe said. According to the minister, the road transport sector accounts for over 80%t of passenger traffic and over 95% of freight traffic causing
destruction of road infrastructures A study titled ‘Economic Prosperity of 2011’ indicated that the time spent on transport and logistics in Tanzania is relatively longer compared to other countries in the region, making Tanzania uncompetitive in the global market. “The intention of the government is to revamp our railway system. We
commend our development partners who have seen this challenge and started to support us in this endeavour” he said. On maritime transport, Dr Mwakyembe explained that contract negotiations on the financing modality for the development of Mbegani port in Bagamoyo are underway. The minister added that feasibility studies on Mwambani port in Tanga and
expansion and modernization of Mtwara port were also in progress. According to the World Bank (2010) logistics performance index shows that, clearance time with the custom (at port/airport and land) without physical inspection is much longer in Tanzania compared to most of other economies globally and in the region.
Ethiopia seals $1.2b funding
FROM PAGE 1
Additionally, the $289 million Ashegoda wind farm was inaugurated three days ago, contributing 120MW to Ethiopia’s national grid- further showcasing the strength of the partnership between Ethiopia and its international donor communities. Most recently, the ground-breaking partnership with USIcelandic firm Reykjavik Geothermal was established to build Ethiopia’s first private power project; at 1000MW, the largest geothermal facility in Africa. Totaling $4 billion private sector investment, it is projects such as these which will enable Ethiopia to tap into its vast geothermal power resources and open up the private power market. Also in Ethiopia’s impressive project pipeline is the 6,000 MW Ethiopian Grand Renaissance Dam, potentially the largest hydroelectric power plant in Africa.This will be wholly funded by the Ethiopian government at a cost of $4.8 billion and scheduled for completion in 2017. According to Prime Minister Hailemariam Desalegn, Ethiopia’s economy is set to maintain a growth rate of 11% in 2013/14 with prominent plans to upgrade infrastructure as a priority focus in its annual budget.To support these goals, the Ministry for Energy is hosting the second Powering Africa Ethiopia Executive Meeting set for November 28th and 29th. Alemayehu Tegenu, Ethiopia’s Minister for Water and Energy and Miheret Debebe, CEO at the Ethiopian Electric Power Corporation (EEPCO) will join other stakeholders, investors and technology providers to discuss specific project tenders and the path forward.
Burundi climbs 17 places FROM PAGE 1 ranked for the third consecutive time in 10 countries in world top reformers. On the set of 10 indicators assessed by the World Bank, Burundi managed six reforms and rose by 72 places on the indicator of registering property, from 124th to 52th. Factors encouraging this best ranking in the DB 2014 Report are namely: setting up one-stop shops for construction permits and registering property, easing the starting of a business by allowing registration with the labour ministry at the one-stop shop and by speeding up the process of obtaining the registration certificate, reduction of income tax and procedures in cross-border trade. Burundi also did well by eliminating the electricity utility’s monopoly on the sale of materials needed
for new connections and by dropping the processing fee for new connections. According to the survey and at the global level, three African economies have made the greatest progress through different areas measured by the report: ‘This is the Burundi for the registering property, Benin for cross-border trade and Ivory Cost for the execution of contracts,’ reads part of the report. In Sub-Saharan Africa: Burundi, Ivory Cost and Rwanda are among the top 10 economies which have the most improved business regulations. The Doing Business 2014 report of the World Bank Group points out that among the 20 economies that most reformed business regulations since 2009, nine are from sub-Saharan Africa.
Kenya to build lab FROM PAGE 1 Kenya is currently putting a lot of efforts into the mining industry with recent finds of oil and gas deposits. “We expect this project to be complete in the next six months. We will be working with a recognised international agency to ensure that the testing is done locally. It will reduce the costs of exploration while at the same time offering a perfect revenue stream for the government,” he said. Balala said through such initiatives, the Ministry is working towards improving its income from the current $250,000 to a possible $24 million annually. Mining companies in Kenya currently has to export their finds and other specimens to other countries for verification, an exercise that will now be done locally with the completion of the new project.
NEWS
East African Business Week I November 4- 10, 2013
BRIEFLY KQ reports good results up to March nNAIROBI KQ, Kenya’s national carrier, said it expects to turn around and post a profit this year. According to news reports here, the airline said this follow the implementation of cost saving measures that have seen a marked improvement in the airline’s performance this year. The airline reported a recordKsh10.8 billion loss before tax for the full year ended March 2013 attributed to an ‘extremely difficult’ operating environment. A slight drop in visitors in previous years affected profits.
Kampala authority to start paving streets nKAMPALA Kampala Capital City Authority has started a concrete yard that will be used to manufacture concrete products for the city. The projects that will be carried out under this initiative include; the city paving, paving of private drives, production of products like kerbstones, concrete pavers, flower pots and interlocking blocks. Over Ush180 million (about $80,000) is being invested in the project according to Peter Kaujju the KCCA spokesperson. Many of Kampala’s sideways are in urgent need of paving.
KCB records 17% profit increase nNAIROBI KCB maintained its surge in profits by posting a 17% increase in pre-tax profits for the first nine months of the 2013. The KCB Group CEO, Joshua Oigara, released the bank’s unaudited trading results for the third quarter that showed profit before tax of Ksh15.2 billion, up from Ksh13 billion for the same period last year. The CEO cited to top line growth, cost transformation, innovation and improved returns from international business.
Business festival set for next July nKAMPALA – It has been announced that the inaugural Aerotropolis Europe, Middle East and Africa Conference and Exhibition will take place in Manchester, UK between 8th and 10th July 2014. Manchester will be hosting Aerotropolis EMEA 2014 in partnership with Airport City Manchester, as part of the International Festival for Business 2014. This was revealed during the first ever Aerotropolis Americas Conference and Exhibition (AACE), currently taking place in Dallas, USA.
Uganda tightens cash management BY BAZ WAISWA
nKAMPALA, Uganda--The Ministry of Finance, Planning and Economic Development last week announced the release of funds for the second quarter of the financial year 2013/14 covering the months of October to December. Certain measures were also highlighted to make sure money is not mismanaged or stolen. The Permanent Secretary and Secretary to the Treasury, Keith Muhakanizi, said that cumulatively Ush5.07 trillionn has been released amounting to 47% of government approved budget excluding appropriation in aid, non-resource taxes and external financing. In the first quarter (the period of July and September), government released Ush2.6 trillion to which it has added another Ush2.6 trillion for the second quarter. While making the declarations, Muhakanizi, warned accounting officers who are the custodians and spending authority of the money to put the funds to the intended purposes. Due to corruption within Ministries, Departments and Agencies (MDAs) and local government, the ministry undertook declaration of funds release allocated in the budget to promote accountability. “We committed ourselves to release money four times a year, I am here to say we have kept the promise, people receiving this money should use it for the intended purposes,” Muhakanizi told journalists. He strongly warned the handlers of the money at different governDETERMINED: Muhakanizi told accounting officers to tow the line. ment departmental levels to stay away from corrupt tendencies because if caught his office would way public funds are managed. Ush2.6 trillion refer to the laws of the country for These included government Latest quarterly release punitive measures. taking administrative sancThe accounting officers all over tions against corrupt officials as 15th every month the country are by law supposed to indicated in the Auditor GenAccountability to Treasury file quarterly performance progress eral’s report, investigating and reports and accountability for quarprosecution of such officers and Ush5.07 trillion terly releases by the 15th day of the refunding embezzled money to Disbursed money first month of the next quarter. development partners Denmark, The spending officers have not Ireland, Norway, Sweden and by politicians, district leaders and made such reports for the first quarthe UK. civil society organizations. ter even after the deadline elapsed, Also the Public Finance and This, the ministry is doing by introa thing, Muhakanizi blamed on laxity Accountability Act is being ducing important reforms like the by the supervisors at the ministry amended to strengthen the sancintroduction of the Treasury Single including himself. tions regime among others. Account and other money manage“They have got the money on The new proposals will mean ment reforms. time they must account for it. I that accounting officers can do The government has introduced also have to account by availing the the Electronic Funds Transfer (EFT) their job easier and also make it money on time,” he stated. for all government payments, placing harder for unscrupulous people The finance ministry has come to commit theft at the expense the majority of central government under attack for giving a deaf ear and donor bank accounts at the Bank of the tax payers. Parliament is to the corruption scandals some expected to pass legislation. of Uganda and efficient use of comof which have roots within the Muhakanizi also revealed that mercial banks for revenue collections. ministry. effective October 2013, all staff Following the mismanagement of However, now the ministry is under the Salary and Pension public funds by some government going to act starting with promotPayroll will paid on the Integratofficials at the Office of Prime Mining budget transparency which is ed Payroll And Pension System ister and Ministry of Public Service, a prerequisite in a bid to facilitate government undertook to strengthen (IPPS) and will be removed once monitoring of budget performance the clock the retirement age. internal controls among others the
3 Tanzania gets fruit processing factory BY PATRICK KISEMBO n DAR ES SALAAM, Tanzania--Fruit farmers have reason to smile after a Tanzanian wealthy businessman, Said Bakharesa completed a modern fruit processing factory costing about $120 million. He is the owner of the Bakharesa Food Products Limited industry. This is a big step forward to rescuing hundreds of Tanzanian farmers whose fruits have been rotting in farms because of lack of a market. Farmers were forced to sell their fruits cheap. Construction started in 2010 and was competed in 2012. President Jakaya Kikwete (below) officially opened the factory last week. “We have seen how he has generated 400 new jobs. These are just direct employment. I am sure there are other people who have been employed too, though not directly. They are also benefiting from this investment,” Kikwete said. The factory constructed at Mwandege in Mkuranga district, Coast region on 62 acres, has two factories in it - one for making beverage mainly soda and juice and the other for processing other types of fruits including mangoes, pineapples and guavas. “Since 2010 to March this year (2013) the factory has processed a total of 67,000 tons of fruits. My factory has the capacity of processing 220 tons per day, but we are planning to increase processing capacity to 330 tons per say,” Bakharesa said. Bakharesa told invited guests, the juice producing plant which began production in May, 2010, has the capacity to produce 24,000 bottles per hour and the factory products are sold domestically and abroad. He said the factory has a total of 400 direct employees. “We are selling our products within and outside the country. We have already employed 400 people permanently,” he said.
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BRIEFLY Cement maker sees Tanzanian growth nDAR ES SALAAM ARM Cement expects its revenue to grow year-on-year at a slightly faster rate in 2013 due new a new cement plant in Tanzania. Chief executive Pradeep Paunrana made the forecast in an interview with Reuters. A new cement grinding plant in Dar es Salaam, Tanzania that was commissioned in 2012 increased ARM’s cement production capacity by 0.75Mt/yr to 1.75Mt/yr. Another 1.2Mt/yr clinker plant in Tanga, Tanzania is due to start production in 2014.
Uganda women in plea for more gender plans nKAMPALA - Women entrepreneurs at the Uganda Women Entrepreneurship Association Limited (UWEAL) have demanded for public advocacy so as to achieve an enabling economic environment for them and thus enable the female gender gain momentum by connecting grassroots women to development suggests, thus obtain global momentum for championing women equality especially in the business area. it.
Tanzania venture gets cash injection DAR ES SALAAM Tanzania- based Darsh Industries, a tomato processing company and the National Federation of Food Production Cooperatives (FENACOVICI) of Ivory Cost have been awarded grants under the Agriculture Fast Track Fund, the African Development Bank has said. Darsh Industries is planning to set up a new tomato processing plant in Iringa region, Tanzania with a daily processing capacity of 150 metric tons. The factory will purchase tomatoes from local farmers, who often struggle to access markets.
NEWS
East African Business Week I November 4 - 10, 2013
Locals disrupt Tullow in Kenya over job lots BY HUMPHREY LILOBA nNAIROBI, Tanzania--Kenya’s oil exploration efforts suffered a major blow last week with the suspension of operations by Tullow Oil, the main company undertaking the exercise. A spate of violent confrontations between locals in the Turkana South and East districts where the explorations are concentrated have forced the company to suspend operations. Local communities around the area are up in arms over what they term discrimination against them when it comes to employment opportunities at the exploration sites. Atleast two local members of parliament are being investigated over claims of incitement in relation to the incident. Tullow Kenya BV release a statement last week announcing the suspension of operations in oil wells in the region until calm is restored. The statement signed by the company’s Corporate Affairs Advisor Mercy Kabangi said locals have been involved in violent protest, a situation that has seen destruction of some of the company’s equipment. ‘We take this action seriously and priority at the moment is to ensure the safety and security of our entire local staff, national and expatriate,’ read the statement in part. Currently, the Central government in Nairobi and the local County government are engaged in negotiations with the company to find an amicable solution. ‘We will cooperate with both lelves of government and engage the local community in efforts to find a lasting solution to the situation. ‘But we still believe violence is not the way to go,’ reads the statement. The affected blocks include
SAFETY: Tullow management decided to temporairly shut down.
Block 10BB and 13T
Affected by unrest
Twiga 1 Etuko Key oil sites
Point of issue
Claims of unfairness
Block 10BB and Block 13T in Turkana East and Turkana South sub-counties. The company said the closure was necessitated by the safety of equipment and staff in the affected areas. “Tullow Oil has systematically ensured that our people are not employed in any serious positions at the company despite the fact that it is their lands where the exploration is taking place. We find this utterly unacceptable,” said
Lolkorian Lokichum, one of the protesters. The demonstrations were spearheaded and led by area members of parliament. Waving placards and carrying twigs, the protesters marched to the Twiga 1, Etuko and Ngamia 1 oil well sites. These are the key sites where exploration efforts have revealed heavy deposits of oil in Northern Kenya. “Our people still remain completely locked out of economic activity despite the heightened exploration efforts. This is a situation that has completely disempowered them economically. We are not asking for too much,” Lomenen said.
Ugandans meet to talk seeds BY WINNIE MANDELA n KAMPALA, Uganda--The annual indigenous food fair that was organized last week by the Civil Society Organizations under the theme ‘Indigenous seeds for sustainable agriculture’. It saw many farmers converge at the Uganda Manufactures Association showrounds to discuss ways in which extinction of the indigenous seeds and crops can be prevented. The major aim of the food fair was to bring together different people from all over the ountry to showcase indigenous foods in their diverse cultures. Agnes Kirabo the Chairperson board of directors Participatory Ecological Land Use Management(PELUM) in her remarks said, “The purpose of this year’s indigenous food fair was to showcase the socio-economic importance of indigenous seeds and traditional seed management practices in ensuring household and national food security.” Most farmers were advised to maintain their indigenous seeds because the control of seeds lies at the heart of agriculture. “In Africa around 80% of seed comes from local and community saved seed resources. This seed is adapted to local conditions. It forms an integral part of community food security and agricultural integrity,” she said. According to Stella Lutalo the Country Coordinator PELUM sustainable farming should not promote the extinction of indigenous seeds. “Traditional seeds have drastically been diminishing from the societies therefore leading to the consumption of the genetically modified ones that lack nutrients and food values thus exposing the people to diseases,” she said.
Tanzania Building Agency plans for 155 houses BY PATRICK KISEMBO nDAR ES SALAAM,- Tanzania-The Tanzania Building Agency (TBA) has launched its 155 housing project for civil servants worth Tsh3.92 billion ($2.44 million) at Bunju in Dar es Salaam. This is part of 2,500 houses that will be built countrywide for this financial year alone 2013/2014). The whole project involves 10,000 houses that will be built in five years. The TBA’s Chief Executive Officer, Elius Mwakalinga told East African Business Week in Dar es Salaam last week that each ready constructed house has a cost of between Tsh25 million ($15,550) and Tsh50 million ($31,100). “Nearly all 155 houses have come to a completion, what has remained is fixing electric fittings and sanitary appliances fittings,” Mwakalinga said. Bunju housing project involves 851 houses.
Mwakalinga said implementation of the first 155 houses was done in two phases. The first phase cost the agency a total of Tsh2.22 billion ($1.34 million) while the second phase was Tsh1.7 billion ($1.06 million). “We are planning to build 10,000 houses in five years for the civil servants,” he said. However the cost and the type of houses were not disclosed. He said since the commencement of the project in April 25, this year has great advantages to the Dar es Salaam community especially by offering jobs to youths and women. “The project has employs 270 casual workers everyday and has also benefited businessmen selling constructing materials and those providing other services to workers,” he said. For his part the Works Minister, Dr. John Magufuli said the agency has planned to construct 2,500 houses in this financial year, 2013/14. He said the government took the decision to build 10,000
houses after discovering that there was great need of residential houses for civil servants. “There is an increase of 30,000 civil servants every year, which if not well planned, it can affect servants psychologically and their effectiveness and ultimately reduce their performance,” Dr Magufuli said. The Vice President, Dr. Mohammed Gharib Bilal urged the agency to also look for an alternative of building other residential houses in regions and district. “This project should not only end in big cities because we have a bit problem of residential houses in some districts and regions,” he noted, instructing TBA to also build houses in district located in the country’s borders and new districts. The vice president also urged civil servants who will have access to houses through loans to pay on time according to the agreements reached with the Agency in order to empower it financially and enable it to continue building more houses.
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FINANCE
East African Business Week I November 4 - 10, 2013
Dutch to fund new Kenyan wind bid
BRIEFLY Sanlam in talks with NICO for new stakes nJO’BURG - Sanlam Emerging Markets in discussions with NICO Holdings Limited for the acquisition of a stake in the general insurance operations in Malawi, Tanzania, Uganda and Zambia. Sanlam Emerging Markets (SEM), the cluster within the Sanlam Group tasked with expansion into international emerging markets, has announced that it is currently finalising agreements to acquire 49% of NICO Holdings Limited’s stake in the NICO group’s general insurance Uganda and Tanzania.
Africa bank nods $12.5m for SMEs nTUNIS - The Board of Directors of the African Development Bank (AfDB) recently approved a $12.5-million equity investment in the Kibo Fund II. The investments will be diversified across industries and sectors. Kibo II will primarily target the Indian Ocean Region, including Madagascar, Mauritius and The Seychelles. The Eastern Africa Region, covers Kenya, Tanzania, Uganda and Rwanda; and the Southern Africa Region covering Zambia, Malawi, Namibia and Botswana.
Mobile money helps Kenyan banks nNAIROBI Mobile phonebased money transfer services helped raise the percentage of Kenyan adults with access to banking services to 66.7% this year from 41% in 2009, a financial access survey showed. According to Reuters, Kenya has led the world in mobile phone-based financial services ever since its largest telecoms operator Safaricom invented M-Pesa. M-Pesa has since evolved and now offers interest on deposits and loans of small amounts to users who qualify.
BY PAUL TENTENA
SHAKE ON IT: The bank will lend to people to buy the motorbikles from Verma.
PHOTO BY BAZ WAISWA
Centenary seals pact with bike importer BY BAZ WAISWA
Ush3,326,000 ($,1,300)
nKAMPALA, Uganda--Centenary Bank, a leading local bank and Verma, the largest distributor of motorcycles in the country, have entered into a partnership that will enable their customers access loans to purchase motorcycles. The motorcycles which are famously used as a public means of transport (commonly known as boda bodas) across the country are also a leading source of employment and entrepreneurship among the youth. Sanjay Verma, the Managing Director of Verma Company revealed that eight in every one thousand Ugandans uses a motorcycle for income generating purposes. However the cost of these two wheelers is a problem for the unemployed youth who in most cases have little or no education to turn into economic gain. But now with Centenary, a bank that has built a reputation as a
Cost of the motorbike
826
Verma service points
10% to 15% Range of interest rates microfinance bank, things may be easier. Sanjay Verma said they chose to partner with Centenary Bank due to its strategic targeting of people who would otherwise not access banking services. “Verma, under this partnership will also demonstrate proper use of the cycles and offer free mechanical services across the country at our 826 service points.” Sanjay said. Centenary Bank General Manager Business Development, Beatrice Lugalambi is optimistic this partnership will transform thousands of lives considering that the bank will offer financial literacy
training and business management skills to their clients. “At only Ush 3.326 million, customers who wish to start their own motorcycles (boda-bodas) businesses will be fully equipped to operate through this partnership. We shall further provide the beneficiaries with financial literacy skills to help the new owners manage their businesses and make informed financial decisions,” The training will be carried out as part of the bank’s CenteBusinessLife programme which has so far directly benefited over 3,000 SMEs across the country. The bank has similar arrangements with Kampala Capital City Authority and the Uganda Youth Fund (for youth under the age bracket of 18 -35years) who under the new partnership will get the loans at a subsidized 10% and 15% respectively. Of recent city authorities have been registering the boda bodas in a bid to bring some order to the industry.
n NAIROBI, Kenya--The Netherlands, through the African Development Bank (AfDB), has announced a grant of $10 million for the construction of the 200 kilometre road from Laisamis to Sirima, the location of the wind farm in Kenya. According to a press statement the two bodies released last week, the total cost of the road upgrade to Lake Turkana Wind Power (LTWP) is $22.5 million, and the balance of $12.5 million will be provided by Lake Turkana Wind Power under their investment. The road includes extensive civil works to allow travel to take place year round even when rivers flood the area. This upgrade, to a high level gravel standard, falls within the Ministry of Roads requirements. The construction of the works will be carried out in collaboration with Kenya Rural Roads Authority (KeRRA) and the Kenya National Highways Authority (KNHA), which have granted LTWP the authority to build. The construction of the road is expected to commence in early 2014. “The upgrading strengthening of the road is primarily to support this unique project and to allow for the wind turbines to reach site,” said Lilianne Ploumen, Minister for Foreign Trade and Development Corporation of the Netherlands. Ploumen added in his comments, “However, the road will open the entire area for further development and improve accessibility to all the local communities.”
Tanzania improves in credit statistics BY LEONARD MAGOMBA
READY: Management of Creditinfo fielding questions in June.
nDAR ES SALAAM, Tanzania - – Tanzania has improved its credit information system through new regulations that provide for the licensing of credit reference bureaus and outline the functions of the credit reference data bank. Tanzania which has also attained a rank of 145 in the latest World Bank/ IFC Doing Business survey, made resolving insolvency easier through new rules clearly specifying the professional requirements. The Tanzanian laws are also now clearer about the remuneration for insolvency practitioners, promoting
reorganization proceedings, and streamlining insolvency proceedings. Sub-Saharan Africa continues to record a large number of reforms aimed at easing the regulatory burden on local entrepreneurs, with 66 reforms adopted in the past year. The report’s data show that of 47 economies in the region, 31 implemented at least one business regulatory reform in 2012/13. This is an improvement from the previous year. Three African economies made the biggest progress globally in an area measured by the report: Burundi in the ease of registering property, Benin in the ease of trading across borders, and Côte d’Ivoire in the ease of enforcing
contracts. “It is encouraging to see so many countries in Sub-Saharan Africa engaged in reforms aimed at reducing burdensome regulations and building up stronger legal institutions,” the Director, Global Indicators and Analysis, Augusto Lopez-Claros said. In 2012/13, more than twice as many economies in the region reformed as in 2005. Lopez-Claros said. “Despite these achievements, more can be done to improve the quality of the rules underpinning the activities of the private sector, to ensure continued convergence toward the better practices seen elsewhere in the world.”
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Issuing Eurobonds can pay for roads
B
y almost any measure, Africa lacks the infrastructure to meet the basic needs of its population and reduce poverty. Hundreds of millions of Africans lack even the most fundamental amenities, from rural roads to basic health, education, banking and commercial services. That is the way the race to build infrastructure is now so frenetic across the country. With infrastructure, other things will quickly follow. And lets face it, on numerous occasions the roads the colonialists built were planned to serve their interests rather than the future independent countries. Kenya expects to issue its Eurobond in January 2014. Indications are that Uganda and Tanzania will do the same. Rwanda has already successfully shown that investors will buy into your vision if they see the right commitment and management structures in place. However roads are paramount. Railways are very helpful, but feeder roads are needed to open up the rurual areas and create markets of agricultural produce. Africa has only about 25% of the paved road per kilometre found in other low-income regions and about an eighth of the electricity-generation capacity per person. Poor maintenance has left much of the existing infrastructure in disrepair, further hindering economic growth and discouraging new investment. High transit costs caused by infrastructure problems make the continent’s exports less competitive on world markets and its imports more expensive for consumers. The Infrastructure Consortium for Africa (ICA), whose members include the Group of Eight industrialized countries, multilateral development institutions and the Development Bank of Southern Africa, estimates that poor road, rail and harbour facilities add 30% to 40% to the cost of goods traded among African countries. The expense of moving Africa’s imports to customers inland is on average 50% higher than shipping costs in other low-income regions. Another 2005 study, by the UK government–sponsored Commission for Africa, estimated that transportation bottlenecks and inefficiencies amount to an 80% export tax on Ugandan textiles, making them far less competitive on world markets, discouraging greater investment in the sector and slowing job creation. The lack of modern storage and marketing facilities is a major contributor to food insecurity, with losses to spoilage accounting for as much as 30% to 40% of grain harvests in some countries. The result, notes UN Secretary-General Ban Ki-moon in his report General Assembly on September 22, is that despite the continent’s abundant natural resources, “Africa’s potential is far from being fully harnessed.” Most African financing for new infrastructure comes from national government budgets and is concentrated in the energy, water and sanitation and transport sectors. These can be among the most expensive items in the budget, often amounting to 6–8 per cent of GDP. Donors cannot always help. But we have to be careful with Eurobonds. Investors are willing because of Africa’s rapid growth and better economic policies, low global interest rates, and continued economic stress in many major advanced economies, especially in Europe. All this can change over night. Therefore if you borrow, make sure every borrrowed dollar brings a hefty return.
EDITORIAL
East African Business Week I November 4 - 10, 2013
Capturing soil potential nWASHINGTON, USA--How can Africa boost agricultural productivity and increase public investments in a sector that employs as much as 70% of the continent’s population? That was the question put to Agriculture and Finance Ministers from Sub-Saharan Africa during two side events timed to coincide with this year’s World Bank-IMF Annual Meetings in the US capital. “In Africa, even more so than in other regions in the world, agriculture growth is hugely important for any effort to end poverty and promote shared prosperity. Economic activity in agriculture typically accounts for 30% to 40% of GDP, and there is global evidence showing that productivity improvements in agriculture can have a poverty impact close to three times that of other sectors of society,” Makhtar Diop, World Bank Vice President for Africa, told the Ministers. Launched by African leaders in 2003, the ‘Sustaining the Comprehensive Africa Agricultural Development Programme (CAADP) Momentum’ seeks to encourage governments to increase investments into the agricultural sector and allocate 10% of their public expenditures to the agriculture sector. The World Bank, the African Union Commission (AUC) and the New Partnership for Africa’s Development (NEPAD) hosted the meeting. “Since 2003, CAADP has demonstrated that African institutions can come together to address the critical challenges facing the continent. Already, Burkina Faso, Ethiopia, Ghana, Guinea, Malawi, Mali, Niger and Senegal have met or exceeded CAADP’s 10% target,” Sari Söderström Feyzioğlu, the Senior Manager for Sustainable Development in the Africa Region said. He said: “CAADP has helped to align the Bank’s strategic focus and strengthen its strategic partnerships for optimal development impact.” Since 2003, 32 countries have created national agriculture investment plans that lay out priorities for meeting the CAADP goals. On average, public agriculture expenditures have risen by over 7% per year across Africa (more than 12% per year in low income countries) and have more than doubled since CAADP’s launch, signaling greater recognition of the agricultural sector as an engine of growth and poverty reduction. Abebe Haile Gabriel, the African Union Director for Rural Economy and Agriculture, said the Commission had designated 2014 as AU’s Year of Agriculture and Food Security. In the same year the AU will launch its new plan for CAADP called ‘Sustaining the CAADP Momentum’. Gabriel also announced that new funding for CAADP – a second Multi-Donor Trust Fund (MDTF) – managed by the World Bank, will be sought . The MDTF fund provides grants to African institutions and finances technical assistance to the CAADP process. In its next phase, CAADP will focus on implementation, Gabriel said. “We would like to use this opportunity to call on our partners to support the next phase of CAADP which is going to be very exciting,” he said. CAADP’s next phase will put a new emphasis on issues such as creating stronger platforms for agriculture policy formulation, encouraging private sector
FOOD SECURITY: Funding for the agriculture steadily grows. development in the agriculture sector, support for climate smart agriculture, education, food security and improved nutrition. Estherine Fotabong, the Head of Programme Implementation and Coordination Director at NEPAD said, “This has been a very positive program and we want to see a continuation of financing. It has made it possible for us to have
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Encouraging private sector involvement becomes key
programs in gender, climate change and the role of women in agriculture.” Speaking on behalf of the European Commission, Principal Advisor, Riera-Figueras said, “I have seen the results of CAADP in improved health and other programs that are broader than agriculture. I think this program makes a major contribution to improving livelihoods.” At the African Ministerial Roundtable, ministers of finance, economy, planning, and agriculture discussed ‘Strengthening Agriculture Public Expenditures in Sub-Saharan Africa’. The Ministers discussed their progress in improving agriculture spending polices as well as steps that have been taken to improve the quality of funding allocation for agriculture. “Agriculture has taken its designated place in the development policy discussions,” Gabriel said during the October
FILE PHOTO.
10 Roundtable. “Several countries, such as Burkina Faso and Ghana have made encouraging strides in increasing both public investments and productivity of agriculture.” Clement Kofi Humado, Minister of Food and Agriculture for Ghana said, “Since 2009 we have performed beyond the CAADP investment target with a national average of 16% in 2010 and over 11% in 2011.” According to Humado, “Ghana is one of the countries that has benefited from the public expenditure review process, and we are using the findings to develop our budget and programs for 2014.” At the same time, Ghana must improve the share of public investments into agriculture, Humado said. Stating a sentiment shared by several other ministers at the meeting, Humado added, “We need additional funding to meet our CAADP goals, but where should that money come from? Our budget is tied up with competing issues such as education and health,” he said. Mahama Zoungrana, Minister of Agriculture and Food Security for Burkina Faso said they also met the CAADP targets with a 14% investment in agriculture in 2012. He said: “We had satisfactory increases in production also and increased family incomes,” Zoungrana said. “But how can we continue this growth with 3.2% per year population growth and other challenges such as climate change, which has reduced our agricultural production?” World Bank
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LETTERS & PERSPECTIVE East African Business Week I November 4- 10, 2013
Happy about milk scheme
PERSPECTIVE
Image of the week
Editor,
Over taxing can hurt
The programme to provide milk for Uganda’s young children in school has been on the cards for over a decade. I am happy that it is finally off the ground, although originally the scheme envisioned free milk for certain categories of children. I fear that even at subsidised prices many children, especially in the rural areas, may not be able to afford it. In my opinion there are two main reasons why this scheme is very good. Consumption of milk will boost the children’s nutrition and make them more active in class. Secondly, farmers have an added market for their milk output. However, the other important issue is how long the government can afford to subsidise this milk and to how many children. No details were given in your story last week, but I wish the programme every success.
INSPIRATION: People gather beneath the Christ the Redeemer statue as mist passes at the summit of Corcovado in Rio de Janeiro, Brazil. Preparations are continuing for the Rio 2016 Olympic Games along with the 2014 FIFA World Cup also in Brazil.
George Kalanzi Kampala, Uganda
Lack of political will limits regulators Editor, Your perspective article last week on the problems regulators face was interesting. I would like to add my own views. In my experience, African governments usually set up regulatory bodies after being advised by donors. Given a choice, I would not be surprised if they did not
care less. The fact that donors also pay for the consultancies and initial costs involved in setting up these institutions, makes it even easier for recipient governments to accept. However when these regulatory bodies become the financial responsibility of the relevant governments then problems begin. Political will is often
lukewarm and the powers of the regulators are not always assured. At worse, the regulators become a tool of the executive. Without bipartisan political will, regulators cannot do their jobs.
I support the planned changes for the Kenya Revenue Authority (KRA). No institution is required to be more efficient and have the minimum of corrupt tendencies than the revenue authority. Secondly it is too big and becoming intimidating which invites graft. These are the people who collect the taxes and it is important the public can trust them to see every coin collected gets to the Treasury.
Editor,
I believe the whole issue of paying taxes depends on accountability. The government spending this money in a sensible, productive and transparent manner is the other issue. However tax collectors must always remember the customer is key. A good customer service experience encourages voluntary compliance. Treat me well and I will pay!
From what I understand, the proposed East African visa will mean less hassles for foreign tourists and a joint strategy for luring visitors to East Africa. In the past, it has always been a question of who attracts the most tourists. Kenya and Tanzania have been seeing this as a competitive race. I think it is also the main reason why the regional tourism industry has failed to rival that of South Africa. There has been too much bickering amongst us. I think if we are to get more returns from tourism, East Africans must work together. All the countries have something to offer and none should say they have the total package. It is not a race!
Albert Mwenesi Mombasa, Kenya
Francesa Da Souza Nairobi, Kenya
Keith Mukama Kampala, Uganda
Good idea to break up KRA to beat corrupt Editor,
Tourism is not a race!
Great news about Tz gas but let us not forget home Editor, News that Tanzania is second after Mozambique for having the biggest off-shore gas reserves is exciting. My concern is that in this excitement over future earnings by exporting to such
places like East Asia, we forget our own national interests. There has always been a tendency by the big oil companies to build pipelines and facilities aimed at exporting the oil or gas. The reason they usually give, is that domestic demand
The views expressed on this page are not the views held by the anagement of East African Business week
cannot develop fast enough for them to recover their costs for exploration and development. My suggestion to our government is to base future investments or building an industrial base associated with these gas finds. It is true Tanzania will make
n Write your letters to The Editor East African Business Week, P.O.Box 71771 Kampala Uganda
n Telephone +256 41 4531345/7 or +256 312 275141 n Fax +256414531346
much money selling abroad, but the country can also strengthen its economy by having more factories that add value to our resources using our own low cost energy. Denis Williams Dar es Salaam, Tanzania
nNAIROBI, Kenya--Africa’s growing attractiveness as an investment destination is at risk if it fails to strike the right balance between international tax trends and the needs of its varied national economies writes Keith Engel who works for Ernst & Young, the financial services firm. Fiscal revenue is needed to upgrade critical infrastructure, but ill-considered tax adjustments could undermine investor sentiment. African governments are largely focused on ways to broaden their tax bases and raise the revenue needed to build infrastructure and fight poverty, but the reality is that many of those governments currently rely too heavily on customs duties, mineral and petroleum royalties and donor funding. While value added tax (VAT) is now common in Africa, personal and company tax rates remain relatively high in global terms (albeit with significant exemptions to facilitate export-oriented businesses). Enforcement has become a common means of raising revenues with certain African revenue-enforcement agencies being given explicit and implicit incentives to collect taxes. The challenge will be to prevent this need for enhanced tax revenues from eroding African countries’ attractiveness as an investment destination. Internationally, governments have built up considerable deficits in the five years since the 2008 financial crisis. While the official line is that they will rely on renewed growth to begin reducing sovereign debt, there is tacit acceptance that tax hikes will be needed to balance budgets. Instead of outright tax increases that could undercut competitiveness, most governments will take the more politically expedient route of a broadened tax base via closed loopholes and tightened enforcement. In OECD countries (wealthiest 34 countries minus China and Russia), policies to reduce base erosion and profit shifting have emerged as the primary means to achieve this end. OECD rules contain recommendations to close perceived cross-border schemes via new domestic legislation, tightened transfer pricing, changes to tax treaties and increased cross-border transparency, amongst others. These formal anti-avoidance mechanisms are being supplemented by political “name-and-shame” tactics that have left many business leaders wary of aggressive tax avoidance. The concern of business is that many African countries could adopt their own versions of these rules in order to increase their tax revenues beyond what is needed to prevent avoidance. For instance, many African countries already have measures to prevent base erosion, such as highwithholding rates (even after treaties are taken into account), newly established transfer pricing rules and various forms of exchange control. Before adopting new amendments, African governments should earnestly consider the context. On balance, while multinationals will have to make some sort of African investment to maintain market share, it is important to mitigate their concerns about tax so as to maximise the amount they invest.
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Risk of failing to balance important interests
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TRANSPORT
East African Business Week I November 4 - 10, 2013
Rwanda national carrier awarded
BRIEFLY IATA to make changes for air cargo standards nSINGAPORE Shippers are set to benefit most from a series of International Air Transport Association (IATA) changes aimed at improving air cargo efficiency. The Cargo 2000 (C2K) quality standards are to be adjusted so that shippers would gain 70% of the productivity and cost savings generated by the implementation of e-freight. According to a study by the Logistics Institute of Asia Pacific, forwarders would gain 27% of the benefits.
BY AGNES BATETA
Kenya considers new airport at Nakuru n NAKURU The Kenya Airports Authority will send a technical team to assess the viability of building a new airport at Nakuru in the Rift Valley. Previous plans by the government to construct an airport there failed after environmentalists cautioned the site was on a bird migratory route. The latest plans involve an alternative site. If approved, the new facility could be used for international flights in case of emergencies at Jomo Kenyatta International Airport (JKIA).
Dar-Beijing direct flights in offing DAR ES SALAAM Hainan Airlines has announced intentions to start direct flights between cities in China and Tanzania. The decision was announced here by the airline’s Chairman, Chen Feng recently. Hainan is one China’s biggest airlines. This followed a request from Tanzania Prime Minister Mizengo Pinda who wanted the firm to look into the possibility of starting a Tanzanian route. Pinda, who was on an official visit, also requested whether Hainan could provide technical assistance in revamping the troubled Air Tanzania.
MAIDEN: The Proflight Zambia’s Jetstream 41 aircraft that was used from Lusaka to Dar es Salaam.
Zambian airline goes for Tanzania routes
BY PATRICK KISEMBO
nDAR ES SALAAM, Tanzania--– Proflight Zambia recently launched its new route from Lusaka to Dar-es-Salaam, enabling fast and affordable links for traders and tourists between two countries. The three times-a-week service marks the second international destination for Zambia’s growing local airline, which started flying to Lilongwe in Malawi in June, this year. “Proflight’s new route to Dar builds an important link between Zambia and Tanzania which will
1.4 million
Current passenger traffic
1991
The year CAA was set up
60%
Percentage using air
strengthen business ties and boost two-way travel between our respective tourist destinations,” the Proflight’s Director of Government and Industry Affairs, Capt. Philip Lemba said. Capt. Lemba said the new rout is undoubtedly the fastest, most comfort-
able and affordable way to travel between the two cities. Flights will depart from Lusaka’s Kenneth Kaunda International Airport on Mondays, Wednesdays and Fridays, returning the same day. Flight P00020 departs from Lusaka at 08:00hrs on Mondays and Fridays, and at 12:00hrs on Wednesdays, arriving at Dar-esSalaam’s Julius Nyerere International Airport at 12:20hrs and 16:20hrs respectively, making it a journey of three hours and 20 minutes, given the one-hour time difference in Tanzania.
n KIGALI, Rwanda-Rwandair has been awarded the best airline on the continent for the year 2013, based on the improving quality of its service and operations. This award was received by Patrick Manzi the airline’s head of marketing, together with the Rwandan High Commissioner to Nigeria Joseph Habineza last week. This was during the 9th Akwaaba Tourism Fair that took place in Lagos Nigeria. “ I am so glad Rwandair has received this recognition,” John Mirenge, the airline’s Chief Executive Officer said. He said this was a good motivation to the company to work harder and improve further on their services delivered. Rwandair serves 15 destinations including domestic circuit in Kamembe and regional - Nairobi, Mombasa, Entebbe, Bujumbura, Dar es Salaam, Kilimanjaro (Arusha), Libreville, Brazzaville, Johannesburg, Dubai and Lagos. The airline’s vision is to be the airline of obvious choice in the markets served. Mirenge thanked the airline employees for their dedication and determination shown at work which has helped the airline attain such an achievement. Rwanda was a full participant of the Akwaaba Tourism fete, joining people from different parts of the world, but displaying the touch of Rwanda in terms of culture, cuisine and among other activities. Several tourism boards including Gambia, South Africa, Kenya, Rwanda and Nigeria all participated in this year’s colourful fair which was well attended.
RVR opens up northern Uganda BY BAZ WAISWA nGULU, Uganda-Uganda’s northern region recently got an economic uplift with the official arrival of rail services after decades of not a moving train in sight. President Yoweri Museveni was in Gulu to commission and flag off the Tororo-Gulu-Pakwach railway services. Rehabilitation of the track was done under a public private partnership led by Rift Valley Railways (RVR). RVR is a the private venture that currently holds the rail concession for Kenya
and Uganda. Citadel Capital are the major shareholders. Museveni was optimistic the reopened railway line was going to help the people of northern Uganda as government moots plans to have a wide and bigger railway line from Kampala to Juba. The northern line has been nonoperational for over two decades leaving it dilapidated, vandalized and swallowed by swamps and bushes. About $2m went into making it usable once again. Museveni asked the people in Gulu during the commissioning to make use of the service by being more
productive instead of admiring the snaking railway line. “But you must use this railway line. This railway is not for watching, looking at it. So that each homestead has something to sell. It is easier for you to enter agriculture so that you can produce more crops and they can be carried on this railway,” Museveni told the gathering at Gulu railway station. Plans are that the roads, together with an upgraded airport and the reopened railway services will help ease transport difficulties affecting the region which has a huge potential FLAGGING OFF. President Museveni officially gives the thumbs up. for agribusiness and minerals.
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East African Business Week I NOVEMBER 4 - 10, 2013
9
THE REPUBLIC OF BURUNDI FINANCIAL AND PRIVATE SECTOR DEVELOPMENT PROJECT (FPSDP)
GRANT No. H5360-BI REQUEST FOR EXPRESSION OF INTEREST No PSD/C/42/13 1. Preamble The Government of the Republic of Burundi has received a grant from the International Development Association (IDA) to finance the Financial and Private Sector Development (PDSFP). It was agreed that a part of this grant will be spent on the recruitment of a Technical Assistant to support the Insurance Regulatory and Supervisory Agency of Burundi (ARCA). This request for expressions of interest follows the General Procurement Notice 2010 published on 08 July 2010 in UNDB and DG Market. 2. Purpose of the consultation This consultation aims to recruit an international technical assistant to support the Insurance Regulatory and Supervisory Agency of Burundi (ARCA) in the implementation of specific measures in order to make the insurance market more efficient and transparent. These measures relate to the revitalization of ARCA, the establishment of a specific chart of accounts and auditing standards, the effectiveness of the supervision of insurance companies, the modernization of the legal framework, the licensing of insurance companies and intermediaries on the basis of standards and, finally, opening the market to new entities (companies and brokers). 3. Mandate of the Technical Assistant The individual consultant shall perform the following tasks: 1. Review the current structure of ARCA and its human resources (according to the number of insurance companies operating in Burundi) , prepare a staff training program according to priorities and a monitoring of its implementation; 2. Develop licensing guidelines including detailed business plan according to international best practices for insurance/reinsurance companies and distribution network (agents, brokers); 3. Draft an off-site (including risk assessment) and on-site inspection manual and conduct and train ARCA for on-site inspection; 4. Set up an effective reporting system taking account the new chart of accounts and ensure confidentiality in the system of communication among supervisors; 5. Establish procedures for the regulation and supervision of insurance intermediaries (agents and brokers); 6. Develop and set up claims management system with the guidelines; 7. Draw up a medium and long term Road Map for the Insurance Regulatory and Supervisory Agency of Burundi (ARCA) and for the development of insurance sector; 8. Develop data information system, for the calculation of risk based premiums and technical provisions according to best practice. 4. Consultant qualifications and key competencies The Technical Assistant, an individual consultant, must have the following : • A Master’s degree in economics, financial, actuarial, statistics or any other related fields ; • At least fifteen (15) years of relevant experience in the insurance industry/or in the insurance regulatory and supervisory field; • At least ten (10) years experience as a technical assistant or consultant to regulatory agencies or leading insurance companies; • A good knowledge of the insurance regulatory/supervisory framework; • Be fluent in French and a working knowledge of English or vice-versa; • A good command of MS Windows (Word, Excel, Power Point) and Internet. 5. Assignment duration The duration of the assignment is 12 months of full time work with a possibility to negotiate a part-time work. 6. Application portfolio Individual consultants must provide information indicating that they are qualified to perform the services requested (CV, description of similar work already carried out, relevant experience to the mission, etc.). The file submitted must explicitly be marked as follows “Expression of Interest for the recruitment of an individual consultant: Technical Assistant to the Insurance Regulatory and Supervisory Agency of Burundi (ARCA)”. 7. Method of selection The technical assistant to the Insurance Regulatory and Supervisory Agency of Burundi “ARCA” will be selected according to the method of selection of individual consultants in accordance with the “Selection and Employment of Consultants by World Bank Borrowers” Guidelines, May 2004 Edition revised in October 2006 and May 2010. 8. Presentation and submission of tenders The potential candidates satisfying the selection criteria are invited to express their interest in writing no later than December 4, 2013 at 17 o’clock (local time). Attn : Monsieur le Coordinateur Projet de Développement des Secteurs Privé et financier (PDSFP) Immeuble SOCAR, jonction Bd de l’Indépendance et Avenue d’Italie B.P. 1590 Bujumbura, BURUNDI Tél : (257) 22 24 9595, Fax : (257) 22 24 9592 E.mail : page@page.bi Website : www.page.bi 9. Information and receipt of expressions of interest Detailed TORs of this mission can be downloaded from the following websites : www.psd.bi and www. arca.bi Interested consultants may obtain further information at the address given above from 8:00 am to 12:00 pm and 2:00 pm to 5:30 pm (local time). If the expression of interest is sent by e-mail, it is recommended to send a copy to the following addresses: jsibomana@page.bi ; page@page.bi ; drwankineza@page.bi ; jngurinzira@page.bi ; engendahayo@page.bi
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NEWS
East African Business Week I November 4 - 10, 2013
France lends $23m for Uganda line BY WINNIE MANDELA nKAMPALA, Uganda--France, through the French Development Agency, has lent Uganda $23 million to help finance construction of the 220 KV Nkenda – Fort portal – Hoima Transmission line The project is located in the western Uganda and is expected to be implemented between 2013-2017. Uganda finance minister, Maria Kiwanuka said the project will be co-financed by a Norwegian grant of $54 million and the government will contribute $19.6 million for construction of the power plant. Kiwanuka said this donor support would also lead to the electrification of the western axis where the recent developments in the extraction of oil industry have shown positive developments. “The high voltage transmission line will provide the required transmission back bone power to the Albertine Garben region and at the same time also provide the evacuation of electricity from the proposed thermal power plant at Mputa in Hoima,” she said. According to her, the project will be implemented by the Uganda Electricity Transmission Company under the auspices of the Ministry of Energy and Mineral Development French Ambassador to Uganda Sophie Makame said, “The objective of this project is to meet the energy demands of Uganda’s population for social and economic development through increased access to electricity and improved quality of services through the strengthening of national electricity networks.” Since 1998, the French agency has contributed 165 million Euro to the development programmes in Uganda.
THANK YOU Sophie Makame exchanges documents with Maria Kiwanuka at the finance ministry last week.
New Rwanda legislator BY JOHN SAMBO nBUJUMBURA, Burundi-- Rwanda’s Celestin Kabahizi was last week sworn in as the newest member of the East African Legislative Assembly in Bujumbura. According to a EAC statement, Kabahizi was elected by the Parliament of Rwanda, replacing Jacqueline Muhongayire, who was appointed Rwanda’s Minister for EAC Affairs last July The brief ceremony was conducted by the Speaker of EALA, Margaret Nantongo Zziwa and the Deputy Clerk, Alex Obatre. Kabahizi took the oath in accordance with Rule 6 of the Rules of Procedure of the Assembly. The Rules of Procedure say in part that: ‘No Member can sit or participate in the proceedings of the House until the Oath or Affirmation of Allegiance to the Treaty is taken’. Rule 6(3) specifically states that ‘when a Member first attends to take his or her seat other than at the first sitting of a new House, he or she shall be brought to the table by two Members and presented by them to the Speaker who shall then administer the Oath or Affirmation of Allegiance’. Kabahizi was escorted into the House by Pierre Celestin
SWEARING IN: Kabahizi is a statistician and multi-lingual. Rwigema, Dr. Odette Nyiramilimo and Mike Sebalu during an afternoon session. According to sources in Rwanda, Kabahizi has over 30 years’ experience in governance, from various levels. He is no stranger to issues of governance, decentralization and rural development Formerly, the Governor of Western Province, Kabahizi holds two degrees in economics and statistics. Kabahizi did his first degree in statistics and then obtained another in economics in Rwanda before enrolling for a master’s degree in management development economics in 2002 in Germany. The Member is multi-lingual with a good command of English, French and Swahili. He can fairly communicate in German as well. Rwanda’s other eight EALA members are Patricia Hajabakiga, Christophe Bazivamo, Dr. James Ndahiro, Straton Ndikuryayo Valerie Nyirahabineza, Abdul Karim Harelimana, Dr. Odette Nyiramilimo and Pierre Celestin Rwigema.
Risk fund set up for energy
Disappearance of gems still mystery
BY HUMPHREY LILOBA
BY ANDREW ZABLON
nNAIROBI, Kenya-- A scheme has been set up to mitigate possible losses for companies searching for energy resources. According to the African Union Commission, the Geothermal Risk Mitigation Fund, launched last month in Kenya, Uganda, Tanzania, Rwanda and Ethiopia will be administered by German insurance company, KfW,. KfW will provide more than 50 million euros (nearly $70 million) to compensate companies or government bodies that are unsuccessful in undertaking exploration drilling of geothermal prospects. This fund entails that organisations which take insurance cover with KfW get back 80% of the money invested in the exploratory activities if it drills a well with capacity to produce less than 5MW. Kenya expects to benefit significantly as it is estimated to hold more than two thirds of the geothermal potential in the region, estimated to be over 10,000MW. This is why, the 4th World Geothermal Energy Summit 2013 will be held in Nairobi, Kenya. The scheduled dates are December 5th and 6th.
nMWANZA, Tanzania-- – It is four years now without a word about the ‘disappearance’ of a $3 million ( about Tsh 4.8 billion) diamond parcel from Tanzania at South Africa’s biggest airport. The diamond consignment of 14, 931.35 carats vanished at the Oliver Tambo International airport, Johannesburg, on October 22, 2009 and efforts to trace it has proved futile. It was packed at Williamson Diamonds Limited (WDL) mines (Petra Diamonds), Shinyanga, Tanzania, but upon arrival in Johannesburg it was discovered that the parcel was missing. It was alleged that immediately after the theft there was deliberate effort to keep the incident under wraps because the matter would have negative impact on the royalties earned by the Tanzania government. Ms Cathy Malins, Petra Diamonds Corporate Communications Manager told East African Business Week last week from London that the diamond parcel was not recovered and an insurance claim lodged with the company’s insurers was also rejected. She said the theft was made public by Petra Diamonds in its reports during 2010. “The company had previously reported that it expected the insurance claim to be settled satisfactorily; however, underwriters rejected Petra’s claim on technical grounds and there were no further developments with regards to this matter,” she said. However she added, “All royalty payments on the assessed parcel value were paid to the Tanzania government.” Malins said since the incident, Petra Diamonds has taken steps to prevent further losses of this nature. Since 2009 neither the Tanzania government nor Petra Diamonds Limited has come out and clear the air despite reports that investigation was conducted by the South African police and Interpol. As of now, no official report of the findings has been released nor any other reference made to the incident. Relevant Government officials declined to comment last week. when contacted.
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TENDERS
East African Business Week I November 4-10, 2013
Uganda to host Rotary meeting BY SAMUEL NABWIISO KAMPALA, Uganda--The UGANDA --Uganda will this week host the Rotary International Presidential African youth conference. The aim of the conference is to find ways of working in unity towards the common goal of making the world a better place. The forum will be hosted by the Rotary International
President Ron D Burton. “Uganda was chosen to host the Rotary International Presidential Africa Youth Conference 2013 and we are going to use that chance to ask Rotary International to fund projects that can help in fighting poverty among the youth on the African Continent,” Emmanuel Katongole, the District Governor of Rotary 9211 said recently. Katongole said many youth in Africa are
still poor because they don’t have access to finance, lack business developing skills, and many are not organized. He said that is why Rotary International had to come in and organized the conference where business ideas will be shared between the youth and entrepreneurs from across Africa. The conference will have participants from across Africa and the theme is ‘Engage
Rotary Change lives: Taking Charges of the Future’ “ We have managed to improve on the social life of the world’s population as Rotarian across the world through supporting health services Environmental conservation through planting trees but the future generation( the Youth ) as Rotarian we have left them behind that is why we want to bring them on board,” Katongole said explained.
TH E UNITED REPUBL IC OF TANZ ANIA MINISTRY OF ENERG Y AND MINERAL S
TANZ ANIA: SUSTAINABL E MANAG EMENT OF MINERAL RESOURCES PROJ ECT ( SMMRP) – IDA Cr. No: 4 584 – TA
INVITATION FOR BIDS FOR PROPOSED REHABILITATION OF THE TANZANIA GEMOLOGICAL CENTRE (TGC) IN ARUSHA [BID No. ME/008/SMMRP/W/02] 1. This Invitation for Bids follows the General Procurement Notice for this Project that appeared in United Nations Development Business issue No. 775 of 31st May 2010.
payment of a non–refundable fee of Tshs. 100,000.00 (Tanzanian Shillings One Hundred Thousand Only) or equivalent amount in any internationally freely convertible currency. The method of payment will be by banker’s cheque, banker’s draft or cash payable to Permanent Secretary, Ministry of Energy and Minerals.
2. The Government of the United Republic of Tanzania has received financing from the International Development Association (IDA) towards the cost of the Sustainable Management of Minerals Resources Project (SMMRP) and it intends 7. Interested bidders may obtain further information and inspect the bidding to apply part of the proceeds of this credit to payments under the contract for documents in the office of the Secretary of the Ministerial Tender Board, Ministry Proposed Rehabilitation of Tanzania Gemological Centre in Arusha. of Energy and Minerals, 754/33 Samora Avenue, Wing “B”, 6th Floor, Room No. 10, P.O. Box 2000, Dar es Salaam during office hours from 0900 to 1500 hours 3. The Ministry of Energy and Minerals now invites sealed bids from eligible Building East African Time, Monday to Friday (excluding the public holidays). Contractors registered in Class Five and above for carrying out the Proposed Rehabilitation of Proposed Rehabilitation of Tanzania Gemological Centre in 8. Bids in one original plus two (2) copies, properly filled in, and enclosed in plain Arusha. sealed envelopes marked as “P roposed Rehab ilitation O f Tanz ania G emological Centre in Arusha; BID N o. M E/ 0 0 8 / SM M RP / W / 0 2 4. The project consists of the following works:must be delivered to the Secretary, Ministerial Tender Board Ministry of Energy and Minerals (MEM) at 754/33 Samora Avenue, 6th Floor, Room No. 10, Wing • Construction and rehabilitation of single storey building with overall approximate B, Dar es Salaam at or before 10.00 hours East African time on 26th Nov , 2013. gross floor area of 1,400 Square Meters in Arusha. Bids will be opened in the presence of the bidders’ representatives who choose to • Associated Building Engineering Services Installations that is, Electrical, attend in person at Library Room, 6th Floor ,Wing ‘B’, Dar es Salaam immediately Humidification, Ventilation and Air Conditioning (HVAC), Plumbing, Drainage and after the deadline of bids submission. Sanitary Fittings, Security System and Fire Alarm (Detection and Fire Fighting), Information and Communication Technology (ICT) Cabling. 9. Late Bids, Portion of Bids, Electronic Bids, Bids not received, Bids not opened • Associated external works, parking area, walkways, soft landscaping and and not read out in public at the bid opening ceremony shall not be accepted for boundary wall. evaluation irrespective of the circumstances. 5. Bidding will be conducted through the National Competitive Bidding procedures specified in the Public Procurement Act, 2004 (Goods, Works, Non Consultancy Service and Disposal of Public Assets by Tender) Regulations, 2005 – Government Notice No. 97 and is open to all Bidders as defined in the Regulations 6. A complete set of Bidding Document in English language may be purchased by interested bidders upon submission of a written application to the Secretary, Ministerial Tender Board Ministry of Energy and Minerals (MEM) at 754/33 Samora Avenue, 6th Floor, Room No. 10, Wing B, Dar es Salaam and upon
PERMANENT SECRETARY MINISTRY OF ENERG Y AND MINERAL S 754 / 33 SAMORA AV ENUE P.O. BOX 2000, DAR ES SAL AAM, TANZ ANIA Tel. No.: + 255 22 212 1606/ 7 F ax No.: + 255 22 212 1606 Email: ps@mem.go.tz
12
ENERGY
East African Business Week I November 4- 10, 2013
Ethiopia finalises power bid
BRIEFLY Companies vie for Kenya coal, gas fields
BY PAUL TENTENA
nNAIROBI A Kenya energy ministry Expression of Interest published in September inviting firms to produce 960 megawatts from coal and gas, has resulted in 62 applications. There are reserves of coal around Lamu and liquefied natural gas (LNG) pockets off the coast at Dongo Kundu. After evaluation last week, the ministry is soon to announce the 10 companies qualified to continue onto the next stage of process. Two firms are expected to be selected after final evaluation.
New Ethiopian wind farm officially opened nADDIS ABABA Ethiopian Prime Minister Hailemariam Desalegn officially opened the new 120-megawatt Ashegoda Wind Farm last week. Situated some 765 kilometres from the capital, Addis Ababa, the farm was completed in three phases. Ethiopia has an estimated wind power potential of more than 1000 gigawatts (roughly the installed electricity capacity of the United States, from all energy sources). According to the International Energy Agency, 77% of Ethiopians don’t have access to electricity.
Uganda still waits for first oil sales nKAMPALA Uganda’s first commercial oil sales will not happen until 2018, according to the Petroleum Economist. The publication stated in part last week, ‘The reality, after years of disputes, is that first oil, together with the start-up of the inland refinery the government is insisting on, will not be achieved for another five years at the earliest.’ In October, the government firmed-up its plan for a refinery with a call for a partner to operate and take a 60% interest the facility initially of 30,000 barrels a day (b/d) capacity, but later to double the output.
HOT: With Icelandic expertise, Rwanda wants to produce 310MW of electricity from geothermal sources.
Iceland steps up for Rwanda geothermal nKIGALI, Rwanda---This month, Reykjavik Geothermal (RG) of Iceland, will begin exploration of the Bugurama/ Ruzizi region in Rwanda. Geothermal energy is derived from the heat that is obtained in the earth’s core. It is a leading source of clean energy and its wells release very small amounts of greenhouse gases compared to burning fossil fuels. Rwanda has several locations that emit heat energy. These can be developed to drive turbines and produce electricity. The Rwanda project is being overseen by the Icelandic International Development Agency (ICEIDA). Iceland has the most developed geothermal infrastructure in the world. Geothermal power facilities currently generate 25% of the country’s total electricity production. Engilbert Gudmundsson, the ICEIDA Director General said recently, “I am pleased to see this
$935 million
Estimated for development
$30 million
Drilling exploration wells
310MW
Target within seven years
cooperation result in the take-off of this exciting geothermal exploration project, and that ICEIDA can continue to provide support to the implementation of this project. Last year, Rwanda’s energy ministry in a statement issued last March stated, ‘Rwanda is targeting 310 megawatts of production in the next seven years at an estimated cost of $935 million. The geothermal sources have been identified between Gisenyi and Karisimbi Volcano and Bugarama. ‘It will cost in total $30.2 million for drilling three exploration wells and doing the site preparation, which will include availing infra-
structure on site,’ the statement reads in part. During the first half of 2013, ICEIDA, along with geothermal consultants from Iceland Geosurvey (ISOR), cooperated with the European Union Delegation in Rwanda and the Great Lakes Energy Authority (EGL) in the preparations of the Bugurama/Ruzizi exploration project. Under a European Development Fund (EDF) financing deal, RG was awarded the contract, with EGL as the implementing agency. RG will conduct reconnaissance and surface exploration studies and conduct exploration drilling at a viable sites. “I am pleased to see this cooperation result in the take-off of this exciting geothermal exploration project, and that ICEIDA can continue to provide support to the implementation of this project. This cooperation is also exemplary for effective donor coordination in the utilization of funds for geothermal development,” Jon Örn Jonsson, the RG Director said.
n ADDIS ABABA, Ethiopia--Ethiopian officials last wek signed a deal with American-Icelandic company Reykjavik Geothermal (RG) for the development of a geothermal farm, which will supply energy for both local consumption and export. Sources say the Ethiopian Electric Power Corporation (EEPCO) is set to pay $630 million a year to RG, once the latter completes its 1,000MW geothermal project near Shashemene, 240 kilometres south of Addis Ababa. After negotiations that spanned 18 months, the two parties signed a Power Purchasing Agreement (PPA) on last wek. The agreement calls for a tariff of $0.079 a kWh for the first 500MW of the project, and $0.065 a kWh for the second phase, which accounts for the remaining 500MW. The farm will be situated in the Corbetti Caldera region, and will be built in two phases. The first phase will see the construction of 500 megawatts in installed capacity by 2018, while the second phase is slated for completion in 2021. The project is currently the largest source of foreign direct investment for Ethiopia, and with a total capacity of 1000MW, it will be one of the largest geothermal facilities in the world upon completion. Three quarters of funding for the project comes from RG, while the remaining 25% will be borrowed. Experts say in places where it’s available, geothermal is a highly advantageous form of renewable energy, as unlike solar or wind power it is not reliant upon prevailing climate conditions, which can be fickle or wanting in some regions.
Tanzania announce more national returns in gasfields BY KENAN KALAGHO nDAR ES SALAAM, Tanzania--The government has announced that the country will take a higher percentage of the oil returns under the new production sharing contracts for the country’s oil and gas resources. President Jakaya Kikwete presided over the ceremony to officially launch the sale of seven deep offshore oil and gas blocks in the south eastern region of Lindi and Mtwara, and one in the northern parts of Lake Tanganyika. Kikwete said the government was working in the best interests of the nation. This would allow Tanzanians to have a stake in managing the oil and gas resources and making sure that the country attains more shares than foreign investors. “In the new production sharing formula, the government will be in a position to get the gas and oil shares ranging between 65% and 75%, whereas investors might obtain shares ranging between 25% and 35%,” Kikwete said.
The much-awaited licensing round of blocks which took place just few days after the government passed the new natural gas policy of 2013, paved the way for effecting sales of the eight gas and oil blocks. Kikwete said the majority of the shares will be held by the Tanzania Petroleum Development Corporation (TPDC) before being later sold to Tanzanians through initial public offerings (IPOs) on the Dar es Salaaam Stock Exchange. This new system in the management of oil and gas resources however, is being opposed by the Tanzania Private Sector Foundation (TPSC) through Chairman Reginald Mengi. He says there is a need for Tanzanians to be allowed to be fully involved directly through the private sector. “Local content must aim at increasing local participation and develop local capacity towards international competitiveness,” he said in a presentation recently. Mengi said Tanzania business people should be empowered to make sure that they have the ownership in oil and gas sector
for the country’s benefit. He said Tanzania should emulate the current structural policies of oil and gas in Nigerian that has to a greater extent helped at empowering local Nigerians to have a stake in the oil and gas sectors. “Nigeria has a dirty history with regards to oil and gas, but recently it came up with the best local content in as far as oil and gas policy is concerned. This favours local investors and needs to be emulated,” Mr. Mengi said. Mengi said the country needs to forget where Nigeria is coming from and try to pick up only the good points that would be able to empower local business people who would later transform the economy of the country. “There shouldn’t be people talking about Tanzania lacking capital because we have the oil and gas resources. That in itself is huge capital,” Mengi said. He said oil and gas shares can be collateral when applying for bank loans to develop the fields.
BUSINESS
DIGEST
PAYE RISES WITH MORE FIRMS URA said there was a REGIONAL GROWTH COMPARISON 2012/13 and 2013/14 surplus of Ush28.9bn ($11.5m) from PAYE 28.18% attributed to growth in payrolls of companies 17.44% 12.21% in some key 17.10% performing sectors 30% 25% 20% 15% 10% 5% 0%
TO PAGE 14
URA
TRA
OBR
KRA
Tanzania Revenue Authority
Burundi Revenue Authority
Uganda Revenue Authority
Kenya Revenue Authority
BUSINESS WEEK, November 4-10, 2013
As of October 28, 2013, some 279,689 registered taxpayers are supporting 36 million Ugandans! But the net is closing in to reduce this tax gap.
TAX
Burdened by too few taxpayers BY RYTTER MUZIRA KIZZA nKAMPALA, UGANDA - Uganda Revenue Authority (URA) has embarked on a campaign to look out for businesses and individuals who are dodging tax. The campaign aims at encouraging the non-compliant – those who don’t know their tax obligations and those who are intentionally evading tax – to voluntarily declare their income and pay the tax due. It also targets those who are already on the tax register, but are paying less tax than they should be paying. Whereas URA is looking at all Allen Kagina sectors, specific focus is on company directors who haven’t been honoring ers and petroleum dealers who are not registered for income tax. their tax obligations, commercial As a country, this financial year we motor vehicle owners, and importhave to internally generate 81% of
revenue, but URA cannot continue taxing the same people yet there are others who are deliberately avoiding and evading tax. By the end of this financial year, URA envisages to have a 30% increase of taxpayers on the tax register. To achieve this, there are a number of initiatives already rolling to bring in those evading tax. URA is making compliance easier through improved service delivery, tax education and compliance rewards. URA is leveraging service delivery to educate and bring on board new taxpayers through continued tailor-made tax clinics with various taxpayers in all regions, encouraging 24hr self-service through the web-portal, simplifying tax payments by use of the mobile phone, translating tax literature in at least eight local languages, educating
them of their rights and obligations and having mobile tax hubs to provide help and support to the business community. To further encourage voluntary compliance, URA has devoted heavily in trade facilitation with the aim of removing bottlenecks in the international supply chain without compromising Customs controls and standards. In collaboration with key development partners like Trademark East Africa, and sister revenue authorities in the East African Community, a number of trade facilitation products have been rolled out over the years like, the One Stop Border Points operations (OSBP) at major border stations where joint cargo clearances are done by both customs authorities. This, for instance at Malaba border,
has reduced clearance time from five days to 4 hours hence faster flow of goods to the markets. Other trade facilitation products are the recent Authorized Economic Operators that give compliant taxpayers special preferential treatment in clearance of their goods and the upgrade of the Customs clearance system of Asycuda to a web-based version that is faster and easier to use. The Single Customs Territory – which will remove non-tariff barriers to accelerate faster flow and clearance of cargo from the Mombasa port coming into Uganda – is in the offing and by January 2014 the electronic cargo tracking will be fully operational to curb dumping of goods. TO PAGE 14
BUSINESS DIGEST
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East African Business Week I November 4-10, 2013
URA determined to widen tax base FROM PAGE 13 To penetrate the informal sector, URA is partnering with local governments, Ministries Departments and Agencies (MDAs), security agencies and other business and professional associations. In this, they are riding on each other’s strength to widen the tax base. The local authorities have the numbers and are on the ground since they are spread out in all districts. They also know all the businesses in their jurisdiction since they issue them trade licenses, collect property rates and can therefore enforce tax compliance, for instance registration for Taxpayer Identification Numbers (TINs). On the other hand, URA will offer its reform management experience and automation platforms. As another measure this
financial year, the Finance Minister designated 149 withholding tax agents, a move expected to raise Sh7bn. The new agents are major supermarkets, educational institutions, mobile money agents, telecoms and banks and already continuous engagements with this groups are being done. URA is also renewing and studying the current withholding tax exemption regime to identify and go after non-compliant ones. The Taxman is also using technology to analyze data from her systems – of Customs and eTAX – to effectively correlate and identify high risk tax evaders and thereafter use the information to enforce compliance. URA also continues to invest in capacity and skills development of its staff in risk areas of tackling tax evasion, avoidance and fraud.
The writer is the Supervisor Media Management in URA
URA TAX: URA Commissioner General, Allen Kagina on a recent tour to the Uganda Industrial Research Institute
PAYE increases with more private firms BY EMMA ONYANGO nKAMPALA, UGANDA - In its latest report the Uganda Revenue Authority (URA) said there was a surplus of Ush28.9 billion from PAYE. This is attributed to growth in payrolls of companies in some key performing sectors like financial intermediation, wholesale and retail, mining and quarrying. Introduction of excise duty on incoming international calls also posted a surplus of Ush6.2 billion, withholding tax on bank interest also posted a Ush3.12 billion as a result of increased issuance of treasury bills and bonds as an alternative to financing government expenditure. URA Commissioner General, Allen Kagina said though the real GDP outturn for the FY2012/13 was 5.8%, the 6% growth projected for the FY2013/14 is expected to yield additional revenue. In this financial year, URA is expected to collect gross revenue of Ush9trillion which is 20.7% over the Ush7.5trillion collected in the FY2012/13. Overall, during the first quarter of the FY2013/14, International trade taxes performed at 99.59% while domestic taxes performed at 98.43%. This was because URA realized a surplus of Ush11.98b as the quantity of taxable fuel imported increased and a Ush20.37b surplus was realized from a 34.79% growth in dutiable goods. However, the appreciation of the Uganda shilling against the US Dollar meant that the country lost Ush23.46b during the first quarter of the year. Commenting on the revenue performance, Muhammed Ssempijja, the Country Leader at Ernst and Young Uganda said that despite the deficit, the 17% growth in revenue is a huge achievement. “The 17% growth in revenue would
REVENUE GROWTH OF FY 2013/14 vs FY2012/13 +18.84% +17.44% +17.11%
+24.31%
+11.01% +17.09%
FY 12/13
OIL: The quantity of taxable fuel imported increased in the FY 2013/4 be about 5 or 6% of GDP. The other is 10% is really out of URA’s own initiative. However, Uganda is still at its lowest in the region in a key component of measuring GDP. We are at about 13% of GDP while the sub Saharan average is at 18%,” Ssempijja said. He added that Uganda would considerably close the glaring gaps in tax collection efforts if it had national identification cards. He said the IDs would help in easily identifying and locating potential tax payers. In a related development, URA last week incinerated the largest quantity of cigarettes in recent years in the eastern district of Jinja. Over 80% of the 2300 cartons of Duty Not Paid cigarettes was of the Supermatch brand with the bulk of it (70%) coming in from South Sudan. The cigarettes worth an estimated Ush1.7 billion were impounded over a two year period.
The 6 percent growth projected for the FY 2013/14 is expected to yield additional revenue
UGX
FY 13/14
Fees and licenses
30.22
Indirect domestic taxes
377.60
469.39
Direct domestic taxes
457.59
507.96
Domestic taxes
865.40
1,013.26
Taxes on international trade 735.15 1,555.38
Net URA collections
35.91
860.92 1,826,69
REGIONAL GROWTH COMPARISON 2012/13 and 2013/14 30% 25%
28.18%
20% 15% 10%
17.44% 17.10%
5% 0%
URA
TRA
12.21%
OBR
KRA
Tanzania Revenue Authority
Burundi Revenue Authority
Uganda Revenue Authority
Kenya Revenue Authority
15
BUSINESS KNOW-HOW East African Business Week I November 4-10 , 2013
Write Better Proposals TIPS FOR WRITING GOOD PROPOSALS
Hope Wilson MARKETING MOXIE n KAMPALA, UGANDA“Hope, I am faced with a challenge,” writes a reader. “I am supposed to be promoted, and my boss asked me to write a proposal...I need your help on writing the best proposal.” There are many types of business proposals, ranging from internal company proposals to project proposals for clients. Today, we will focus on developing proposals to win service/product supply contracts from clients. There is a special art to writing winning proposals. Depending on the industry, the project, and the client, there are unique requirements and opportunities to consider. Today, I’ll address a few items that can help you to be more successful Meet the Specifications Many government agencies-and some private ones--issue requests for proposals (RFP) that describe the details of the products/services that they require, how they will evaluate the proposals, and the format and content that the proposal should follow. The first step in creating a winning proposal is to follow the client’s instructions with precision, so that you avoid being disqualified for a failure to comply. For example, in the USA, it is common for governmental agencies to require one-inch margins on each page. I have attended meetings where the review committee has opened the proposals and immediately measured the margins with a ruler. If the margins were less than one inch, the proposal was immediately disqualified. Why? Because they want to know that the team can follow directions and pays attention to details. If the client doesn’t provide an RFP, then talk with them about the type of information they desire. Typically, they will want project examples, resumes of all the team members, and information about how you will solve their problem and deliver the project to them.
Requests for proposals Describe the details of the products/services that they require, how they will evaluate the proposals, and the format and content that the proposal should follow.
1
Instead of boasting about your skills, focus on the benefits they bring to the client.
As soon as you identify the proposal deadline, create a schedule that maximizes the time you have to create an outstanding proposal.
3
Customize your writeups to focus on the elements that are related to the client’s needs.
4 7
Follow the client’s instructions with precision, so that you avoid being disqualified for a failure to comply.
2 6
5
Ask for permission first to use copyrighted elements.
If the client doesn’t provide an RFP, then talk with them about the type of information they desire.
Find ways that you can bring additional value to your clients.
Make sure that you always have someone else proofread your document.
8
Insert an executive summary at the beginning of your document.
PROPOSAL: Improve your chances enormously by consulting with the client and ruthlessly writing and rewriting Implement a Development Schedule A surprising num ber of firms--even large international firms-struggle with implementing a strong proposal development schedule. As soon as you identify the proposal deadline, create a schedule that maximizes the time you have to create an outstanding proposal. Include at least one review session in your proposal schedule. Engage employees or consultants who are knowledgeable about the proposal process in a review panel. Customize Your Response Often, companies will use boilerplate resumes, project descriptions, and company profiles in their proposals. Instead, customize your write-ups to focus on the elements that are related to the client’s needs. For example, let’s pretend that I’m going to submit a proposal to a client for web design services. I plan to
“
It is important to have one person review the document and make modifications, so that it sounds as if one author wrote the entire proposal. use Project A as an example of my project experience. Project A included a wide variety of marketing services, including strategic planning, branding, and an aggressive online marketing campaign. While I will mention the comprehensive nature of that contract, I will focus on the web design work that we did for the client, and the benefits
that they received as a result of our design. Provide Value-Added Differentiators What makes your company different from your competitors? What added services can you provide at no additional cost? Find ways that you can bring additional value to your clients. For example, some construction companies provide free educational sessions for students when they are doing work near schools. Other companies provide free training for clients who purchase their products. Develop a Concise Executive Summary After you have written the proposal, insert an executive summary at the beginning of your document. The executive summary should be clear, concise, and emphasize the greatest value that your client receives by choosing you. Many executives don’t have time to read an entire proposal; the executive sum-
mary provides you with the opportunity to communicate the most important points of your proposal within a couple of pages. Focus on the Client Instead of boasting about your skills, focus on the benefits they bring to the client. Here is an example: Instead of: You should select our team because we have received international awards for our work in web design. Write: Your finished website will exemplify the latest innovations in technology; our professionals have received three international awards for their creative development of game applications, mobile websites, and video integration. Obtain Permission before Using Client Material Some companies welcome proposals that use their logo, tagline, website photos, and other copyrighted elements.
However, some companies strongly object to this and may even consider legal action for copyright violation. If you want to include these elements in your proposal, ask for permission first. A side note: If you use client data related to your project, make sure that it is correct! Have several people verify the information to make sure you didn’t mistype it. Write with One Voice When a company undertakes major proposals, they usually engage multiple writers to draft sections of the document. After all the sections are complete, it is important to have one person review the document and make modifications, so that it sounds as if one author wrote the entire proposal. When that author modifies the document, it is important that she communicate the personality—or “voice”—of the company. A traditional, formal company will use a different voice than a casual, cutting-edge company. This voice should be reflected consistently across all of your company’s proposals. Proofread the Document On a regular basis, I receive proposals and writing samples from people who want to do business with my company. The first thing that I examine is the quality of the writing. Why? For the same reason that some clients measure the page margins. If a potential employee or business partner doesn’t care enough to send me a wellwritten, error-free document when they are trying to win my business, then why would they deliver high-quality work after I gave them the job? Many other business owners think this way, too. Make sure that you always have someone else proofread your document. Remember that spellcheck will find words that are spelled incorrectly, but not words that you use by mistake. When you proofread your document, look for commonly misused words, such as “principle” instead of “principal.”
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
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PICTORIAL
East African Business Week I November 4 -10, 2013
The week in pictures GOOD JOB: President Jakaya Kikwete (2R) accompanied by his wife Mama Salma Kikwete (R) tour Ikanga Tea factory in Njombe. This was before Kikwete had launched the factory. (Left) is the factory’s Managing Director, Noel Smith. PHOTO BY LEONARD MAGOMBA
TOURISM AND BEAUTY: Defence Minister Dr. Crispus Kiyonga (R) was the chief guest at the crowning of Miss Tourism Uganda 2013 Gala. Ms. Barbara Nakitto (seated) emerged winner. Left is Tourism Ministry Permanent Secretary Patrick Mugoya. Nakitto will represent Uganda at the World Miss Tourism 2013 event to be held in Malaysia in December. OUR GIFT: Peter Mugisha, a sales representative for Uganda Breweries hands a water filter to the Dr. Aine Byabashaija, the Medical Superintendent for Kitagata Hospital in Bushenyi district.
WELL DONE: Commissioner Paul Mafabi, Chairman Nature Uganda hands over a plaque to a student of Kalinabiri SS. This was in recognition of their participation in the Big Birding Day 2013 Race. Over 708 bird species were recorded in a single day.
RECORGNISING ACCOUNTANCY: (L-R) Innocent Dankaine of Uganda Securities Exchange, Japheth Katto of Capital Markets Authority and Derrick Nkajja CEO Institute of Certified Public Accountants of Uganda at a FiRe Awards Press Briefing recently. Nkajja says the trend of financial reporting has evolved universally, shifting from the traditional model of furnishing stakeholders with financial statements.
HERE WE COME: The Bavaria Market Development Manager for Africa Rogerter Horst (C) cuts a ribbon to launch the Bavaria 8.6 Black stout beer on the Tanzanian market. Looking on (L) is the Jovet Tanzania Limited Managing Director John Kessy.
GREAT WORK: Burundi President HE Pierre Nkurunziza with other delegates looks at a stand of projects in the energy sector. It was during the Second Sector based Conference as a follow up of the Geneva Conference.
NEWS
17
East African Business Week I November 4-10, 2013
Uganda redoubles Kiswahili BY EMMA ONYANGO nKAMPALA, UGANDA – As the efforts towards achieving the East African Community move into high gear, Uganda’s cabinet has directed for the renewing of efforts to promote teaching and use of Swahili as an alternative language in Uganda. This was disclosed by the State Minister for Karamoja Affairs, Barbara Nekesa Oundo at a media briefing at the Uganda Media Center in Kampala recently. “Accordingly, government is stepping up efforts to have Uganda adopt and develop the speaking of Kiswahili language in the country. This is cognizant of the fact that that Swahili is a widely spoken language in the region and would go a long way in easing Uganda’s engagement with partner states,” she said. She said the renewed efforts include drawing up a comprehensive program for training teachers and delivering to students. “The Ministry of Education has been tasked to prepare and submit to cabinet a paper for the accelerated teaching of Kiswahili in all schools. Cabinet has also ratified a cabinet memo from the Ministry of East African Community Affairs for the
establishment of a Swahili Commission to give direction to the EAC member states with regard to Kiswahili research, teaching and development through continuous policy development, curriculum development and standardization of words,” She added. Nekesa also said that adopting the Kiswahili language would help Ugandan traders a number of whom are currently challenged by language barrier between them and their counterparts from the other EAC member states. “As the lingua franca in East Africa, Swahili is indeed also the commercial language in this expansive market. Thus, subsequently, Head teachers of Primary and Secondary schools will be required to liaise with the Ministry of Education and Sports accordingly for modalities to roll out teaching of Swahili language in Uganda,” she noted. Prior to Independence, many areas of present day Uganda had embraced the Kiswahili language and was spreading. However, in 1939, this was disrupted by the British Colonial administration which stopped the promotion of Swahili and replaced it with English which they aggressively promoted and taught to serve their vested colonial interests.
Renewing of efforts to promote teaching and use of Swahili, Ugandan children such as these are to benefit. The Swahili language, or Kiswahili, is a Bantu language and mother tongue of the Swahili people. It is one of the most widely spoken languages of Africa and is used
by various communities inhabiting the Great Lakes region including Kenya, Tanzania, Uganda, Rwanda, Burundi, Mozambique and the Democratic Republic of Congo.
Swahili is set to become the official language for the EAC and the Uganda government has since ordered that all citizens must learn the language.
Uganda hosts ITU Spectrum Meeting (S DN). The Group, which leads ITU’ s work on conformance and interoperability (C & I) testing , is also responsible for developing test specifications focusing on global interoperability testing parameters, services, and q uality of service (Q oS ) and testing parameters. O n the other hand, S tudy Group 13 is responsible for F uture network s (F Ns) – network s of the future beyond NGN (2020). It is also concerned with the evolution of NGNs, while focusing on future network s and network aspects of mobile telecommunications. S tarting today, November 4 , 2013, Ug anda is hosting S tudy Groups 11 and 13 W ork shop and Meeting of the international Telecommunications Union (ITU) at the Commonwealth Spek e Resort Muny ony o. The two- week event, org anised by the Ministry of IC T, Ug anda C ommunications C ommission (UC C ), and International Telecommunications Union (ITU), will focus on promoting cooperation within the E astern and S outhern African C ountries on spectrum issues. S tudy Group 11 is responsible for producing international standards (ITU-T Recommendations) that define how telephone calls and other calls (such as data calls) are handled in the network ; and developing sig nalling requirements and protocols for Software-defined Networking
These include cloud computing , mobile and nex t- g eneration network s, future network s studies, network aspects of the Internet of Thing s (IoT), IMT- 2000 and IMT- Advanced (ITU- R standards commonly referred to as 3G and 4 G, respectively. O verall, 200 deleg ates, basically telecommunications ex perts, are ex pected to attend these twin events to deliberate on spectrum issues relating to the transition to dig ital terrestrial television and the dig ital dividend. The Minister for ICT, H on. J ohn Nasasira, is ex pected to be the Guest of H onour. S peak ing ahead of the event, Mr Godfrey Mutabaz i, the E x ecutive Director of UC C , sounded upbeat. “ This event is important and uniq ue in that it provides for direct interaction
of sharing ex periences between us, the k ey stak eholders, with reg ard to such issues as F uture network s (F Ns), and the development of sig nalling req uirements and protocols for Software-defined Networking (SDN), just to mention a few,” he said. Mr Mutabaz i thank ed ITU for g iving Ug anda another opportunity to host such high-profile events. “This demonstrates the vote of confidence the ITU fraternity has in Uganda,” he said, “We have been active participants in ITU W ork ing Groups 3, 11 and 13 meeting s. As a country, we have benefited greatly from such discourses, hence been able to develop our communications sector.” In 2009 , Ug anda hosted the ITU S tudy Group 3 Meeting the first to be held in Africa. In the same year, the country hosted two ITU Meeting s: the C apacity Development F orum for Africa (J uly 8 - 10, 2009 ); and, the African R eg ional Preparatory Meeting (R PM) for the W orld Telecommunication Development C onference 2010. Mr Mutabaz i said S G 11 and S G 13 would be completely paperless in their meeting s. “ It means documents will be online and deleg ates are ex pected to have laptops or such devices that can enable them to download and use the documents centrally located. Participants are ex pected to come with personal laptops.”
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ICT
East African Business Week I November 4-10, 2013
Airtel Partners with Wikimedia “
BY PATRICK KISEMBO
n DAR ES SALAAM, TANZANIA Airtel, and the Wikimedia Foundation, the non-profit organisation that operates Wikipedia, last week announced a strategic partnership to provide Airtel’s customers access to the knowledge and information available on Wikipedia through their mobile phones free of data charges . This partnership is part of the Wikimedia Foundation’s Wikipedia Zero program, which focuses on reaching the billions of people around the world whose primary opportunity to access the internet is via a mobile device. The partnership between Airtel and the Wikimedia Foundation will help provide Wikipedia with 70 million new users in the region, starting in Kenya. According to the statement availed to East African Business Week from Nairobi last week, Airtel customers with Internet-enabled handsets can now access the Wikipedia mobile site on their mobile browsers without incurring data charges by going to m.wikipedia.org According to Michael Okwiri, Vice President, Corporate Communica-
Airtel customers with Internet-enabled handsets can now access the Wikipedia mobile site on their mobile browsers without incurring data charges by going to m.wikipedia. PARTNERSHIP: To provide access ti the Internet via a mobile device tions, Airtel Africa for customers who do not have Internet-enabled handsets, Airtel will offer Wikipedia by text message as a pilot program in Kenya. He said it is a unique service that will enable customers to search Wikipedia using a plain text menu, without the need for a mobile browser. The service, available for GSM subscrib-
ers, utilizes USSD (Unstructured Supplementary Service Data) technology and allows users to dial *515# to search Wikipedia and receive article summaries via SMS. “We are thrilled that Airtel has joined us in removing two major barriers to accessing Wikipedia on mobile phones. Not only are we making it freely available on the mobile web but
org. we are also launching our first Wikipedia via text service and will allow people without data enabled phones to access Wikipedia,” said Kul Takanao Wadhwa, Head of Mobile, Wikimedia Foundation. “Improving access to the Wikimedia projects in Sub-Saharan Africa is a strategic priority for the Foundation and this partnership is another step forward in our mission to enable
Schools get MultiChoice study aids BY BAZ WAISWA
He added: “The use of modern technology to enhance learning has been used in various countries in the world with remarkable success registered. Our partnership with MultiChoice Uganda has yielded similar results over the years and we are indeed grateful to them and such companies that understand the importance of giving back to communities in which they operate.” Speaking at the launch function held at Nyakasura Secondary School in Kaboarole district Western Uganda, the General Manager of MultiChoice Uganda Charles Hamya said the pay Tv has showed their commitment to the country through 14 years of dedicated visual aid facilitation to the education sector. “This has been made possible by our growing partnership with the Ministry of Education without which we would not be
able to launch the project here today.” “It is the belief of both MultiChoice Uganda and the Ministry of Education that the use of Multimedia such as the PVR decoder and TV can play a tremendous role as a catalyst for improved education quality thus encouraging us to expand the program further.” The MultiChoice Resource Center programme was started in 1999 to carve out a path for future generations to prosper through educational content that is relevant to the student’s curriculum. Frank Manyindo, the Headteacher of Nyakasura School expressed gratitude to MultiChoice on behalf of all the schools chosen in the region and emphasized their commitment to exhaustively utilize the programme for the socioeconomic benefit of the students.
n KAMPALA, UGANDA - The use of technology in schools as a tool for studying is taking shape after a partnership between the ministry of education and MultiChoice Uganda. The pay Tv service provider, launched the MultiChoice Resource Center project in fifteen schools in Western Uganda. The Resource Centers are installed with DStv dish, PVR decoder, a TV screen and subscription to DStv Education Bouquet. The benefitting schools are Maddox Secondary School, Kyenjojo Secondary School, Kisojo Secondary School, Humura Secondary School, Mpanga Parents Secondary School, Rwamwanja Secondary School and Wekomire Secondary School. Others are Nyakasura Secondary School, Semuliki Secondary School, Rwebisengo Secondary School, St Mary’s Secondary School – Simbya, Kulhe Secondary School, SAAD Memorial Secondary School, Rusekere Secondary School, Nyabuhikye Secondary School. The project is estimated to cost US$30,000. The company has now equipped 50 MultiChoice Resource Centers in various schools across the country. The Assistant Commissioner of Secondary Education – Government, Benson Baritazale said the use of technology in education holds tremendous potential for institutions and students to widen the scope of their knowledge beyond classroom theory. “We have been given an opportunity to not only impact on the already existing knowledge that our students have but to also open their minds to all the possibilities and events taking place in the rest of the DSTV: Charles Hamya, General Manager Multichoice (L) with agents of 15 schools world.” Baritazala said.
everyone on the planet to access free knowledge.” Andre Beyers, Chief Marketing Officer, Airtel Africa said “Airtel is committed to using its infrastructure to expand knowledge across the countries that it operates in. Beyers said due to the fact that most of the population has access to a cell phone, it is the best way to reach out and educate our communities. He said: “We will offer this service free of charge to our customers to enable access to all.” Bharti Airtel Limited is a leading global telecommunications company with operations in 20 countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks among the top 4 mobile service providers globally in terms of subscribers. The Wikimedia Foundation is the non-profit organization that operates Wikipedia, the free encyclopedia. According to comScore Media Metrix, Wikipedia and the other projects operated by the Wikimedia Foundation receive 500 million unique visitors per month, making them the fifth-most popular web property world-wide (comScore, August 2013).
New Gadget limits mobile phone theft n NAIROBI, KENYA -A new kind of mobile device insurance is launching in Kenya following a team-up between Oxygen8 Group and Kenya Orient Insurance Limited. Orient Mobile provides stand-alone mobile phone cover that aims to significantly reduce the potential trouble caused by a lost or stolen mobile device, simply by preparing users for the situation. The cover comes unbundled from domestic cover and is open to all data-enabled phones. Brian Waluchio, CEO of Oxygen8 East Africa commented “With over 29 million subscribers in the country, it is a great honour to work with Kenya Orient Insurance Limited in providing a solution to the increasing problem of mobile phone loss in the country.” The product will apply to over 120 mobile phone models that use GSM SIM cards and are internetenabled. Oxygen8’s technology will facilitate the messaging between Orient Mobile and the end user. Muema Muindi, Managing Director of Kenya Orient insurance added; “Working with Oxygen8 has been a great step in helping us create a service that is simple for our clients to use, giving them peace of mind that their device is covered in a few easy steps.” Agency
“
It is a great honour to work with Kenya Orient Insurance Limited in providing a solution to the increasing problem of mobile phone loss in the country.
FEATURE
19
East African Business Week I November 4-10 , 2013
FANTASTIC: Tanzania’s Ngorongoro Crater, a large volcanic caldera within the area, is recognized by one private organization as one of the seven natural wonders of Africa.
Africa fights for market share nWASHINGTON, USA--Sub Saharan Africa’s tourism industry is set to spur more economic growth for the continent and directly employ 6.7 million people by 2021, according to a new World Bank report released today. The report – ‘Tourism in Africa: Harnessing Tourism for Growth and Improved Livelihoods’- says that tourism accounted directly or indirectly for one in every 20 jobs in Sub Saharan Africa in 2011, and is one of the few industries on the continent in which women are well represented as employees and managers. Sub Saharan Africa is outpacing other regions in tourism growth. The report examines the potential of African countries to improve and expand their tourism sector, and suggests that 33 of Sub Saharan Africa’s 48 countries currently have the capacity for tourism success through establishing strong political support for developing the industry and attracting increased private investment to help finance and sustain it. The report cites successful examples of countries including Cape Verde, Kenya, Mauritius, Namibia, Rwanda, South Africa, Tanzania and others, who have simplified their tourism policies, liberalized air transport and diversified tourism while protecting their communities and environments, which created a positive investment climate for tourism development. “Africa’s private companies are increasingly attracting regional and international investment and the returns on investing in Africa are among the highest in the world,” says Makhtar Diop, World Bank Vice President for Africa. In close alliance with the private sector, governments must also do their part to create better transport, electricity, infrastructure, and other key services to develop tourism for more broadbased growth and improved livelihoods. Tourism is increasingly attracting regional and international investment, and returns on investments in the sector remain among the highest in the world. Global hotel chains are expanding across
Africa, recognizing investment potential and committing millions of dollars in new projects over the next few years to meet increased demand from both international tourists and the continent’s own fast-growing middle class. In 2012, Africa attracted 33.8 million visitors, up from a low 6.7 million visitors in 1990, and its receipts from tourism for the same year amounted to over US$36 billion, or 2.8 percent of the region’s GDP. In 2011, global tourism contributed 9.1 percent to world GDP, 5.9 percent of worldwide exports and 4.5 percent of global investment. Africa’s tourism revenues are rising fast and are set to contribute more and more to world activity. If developed effectively and managed efficiently over time, tourism has the potential to accelerate Africa’s economic growth and job creation. It can also help accelerate the reforms
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“Although Africa’s tourism potential has largely gone untapped to date, it can now take steps to close the gap with other regions,” says Hannah Messerli,
needed to improve airline and road transport as well as other key infrastructure, besides raising the incomes of young men and women, who form a high percentage of the job holders in the sector. “For African countries looking to sustain
and increase growth, tourism can be harnessed through joint public and private sector efforts to achieve growth, wealth creation and shared prosperity,” says Gaiv Tata, Director of Financial and Private Sector Development for the World Bank in Africa whose department prepared the study. This report is the first to comprehensively examine tourism in Sub-Saharan Africa at a regional level and to recommend practical evidence-based measures that could create an economic transformation by leveraging the tourism industry to help create jobs, stem poverty and diversify economies. With an analysis of 24 tourism case studies from around the world, the report is a valuable and timely contribution to efforts to build a framework for sustainable tourism in Africa. It also identifies policies and institutional approaches for African countries to make their tourism industry more competitive and attractive to investors. “Although Africa’s tourism potential has largely gone untapped to date, it can now take steps to close the gap with other regions,” says Hannah Messerli, co-author of the report and Senior Private Sector Development Specialist in the World Bank’s Africa Region. She adds: “Given the continent’s abundant natural and cultural resources, as well as business activity, the fundamentals are in place for tourism growth. Using the strategies and examples presented in this report, Africa can claim its fair share of world tourism.” Meanwhile, African airlines will require 970 new passenger aircraft, worth $126 billion, by 2032, according to Airbus, with 300 to support South African growth. In the latest Airbus Global Market Forecast the company said that economic growth, growing middle classes, affordability, ease of travel, urbanisation, tourism, and migration are some of the key factors which contribute to attracting increasing connectivity between people and regions. Airbus forecasts that Africa will
achieve average annual passenger growth rates of 5.7 per cent. This figure is well above the 4.7 per cent world average growth rate and far outstrips more developed markets such as North America and Western Europe. Seven out of the top 20 fastest growing traffic flows in the world are to/from or within Africa. The low cost market, with just eight per cent of African traffic today, has huge potential to grow when considering more mature markets which typically have a low cost share of over 25 per cent, according to Airbus. This will help to bring the benefits of flying within reach for more people, thus attracting more first time flyers. “International and domestic passenger traffic growth for South Africa is projected to grow at a rate of 5.4 per cent over the next 20 years,” said Andrew Gordon, Director Strategic Marketing and Analysis. “South Africa is helping drive the development of aviation on the African continent with a requirement of over 300 passenger aircraft to serve the South African market by 2032. Johannesburg will reinforce its position as one of the world’s aviation megacities, a focal point for traffic coming into the region and then connecting these passengers to the rest of Africa.” With these positive developments in the region, the Airbus Global Market Forecast predicts that the African aircraft fleet (>100 seats) is set to more than double from around 600 aircraft to almost 1,550 by 2032. Airbus projects a need in Africa for 729 single aisle aircraft and 28 very large aircraft over the next twenty years. Airbus said African, and worldwide demand (for 29 000 passenger and freighter aircraft over the next twenty years), will be beneficial to South African companies. Cobham South Africa provides the satellite communication system for all Airbus commercial aircraft, while Aerosud produces aerostructures for the A350 XWB and the A320 family.
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ENTERTAINMENT
East African Business Week I November 4-10, 2013
WHAT ARE THE STARS DOING?
Battle of champions BY BAZ WAISWA
n’Life sometimes doesn’t work out’ Orlando Bloom said his two-year-old son would be the top priority as he opened up for the first time about his split from supermodel wife Miranda Kerr in an interview with chat show host Katie Couric. The 36-year-old Pirates Of The Caribbean star told Katie in an interview airing on Friday that he and 30-year-old Miranda would put their two-year-old son Flynn first.
nKAMPALA, UGANDA –Ever since the battle was declared the fans are waiting in familiar anticipation to see who takes the day between Gagamel boss Bebe Cool and Goodlife Crew duo of Radio and Weasel who are fighting for music supremacy. As a stockpile of ugly words is traded between the singers, the show organizer, BK Afrobeat, has included the fans in the battle to win a Toyota progress car through an SMS competition. The win the car fans have to text the word BATTLE to 8777 with the lucky person, one with most SMSes, wins the car valued at Ushs19m (7421). This
will be the first time fans are going to win something ahead of a concert. Meanwhile Bebe will go into this battle of champions show scheduled for December 6 at Kyadondo Rugby Grounds on the back of a fairly contested battle with Nigerian international musician D’Banj in Zimbabwe capital Harare. The Ugandan is rumored to have put up a spirited show that can make any Ugandan proud and make Nigerians envious with his energetic stage performance.The Goodlife however are once again riding on another international award nomination, the Channel O Africa Video Music Awards. Radio and Weasel were nomi-
UGANDAN DUO: Radio and Weazel Channel O Africa Video Music nated in two different categories, Awards will be held on the 30th Most Gifted Ragga/Dancehall of November, at Walter Sisulu Video and Nominees for Most sq in Kliptown, Soweto, South Gifted African East, a category Africa. in which another Ugandan, hip hop star Navio, Appears.
GOtv goes to western Uganda nHe died looking at the trees He passed away due to complications from liver disease at his home in Amagansett, New York on Sunday. And Lou Reed’s wife has revealed the 71-year-old musician’s death was peaceful as he died practising his beloved Tai Chi while looking at the trees in their garden. In a moving tribute in the East Hampton Star newspaper, performance artist and musician Laurie Anderson reached out to the couple’s neighbours to reveal the circumstances surrounding his last few days and death.
nMBARARA- UGANDA -GO tv Uganda a digital terrestrial transmission platform company of Multichoice Uganda has expanded its digital foot print in Uganda to cover western part of the country. The expansion of it foot print comes after Multichoice has completed constructing multi billon infrastructure (masts and satellite transmission gadgets) which will enable the western parts of Uganda receive GOtv signals Speaking during the official Launch of their signal in Mbarara town western Uganda the Segment brand manager for Gotv Ms. Patricia Kiconco said extending their signals in western Uganda will help The Segment brand manager for Gotv Ms. Patricia Kiconco the company to grow since the region has great number of potential clients who have new and existing clients .He services country wide and been left out noted that outspreading their he said by the end of 2015 “The town of Mbarara and Kasese signals to up country towns majority of the up country become the latest addition to the growing is representation of their towns will be coved up signal foot print of GOtv after Kampala obligation to extends their “As company we are and Entebbe giving them an opportunity to enjoy our affordable content rich programming , as services provider we are ready to offer Quality both terrestrial and digital transmission as Ugandan s are seeking to migrate from analogue to digitally transmission “ she promised her client western Uganda clients Commenting on the development Multichoice Uganda General Manager Charles Hamya said multichoice will continue investing more resources in the construction of infrastructure so that its clients get quality service he noted that With over the 15 years’ experience in digital pay television industry in Uganda , Multichoice is committed to provide quality television viewing experience to its
eager to capitalize more in constructing infrastructure which will empower Multichoice to transmit our signal across all parts of the country particularly in big towns where our consumers are that is why we have so far devoted about $1.6 million dollars in constructing of 11 sites that are enabling us to offer quality service in the country “he promised Launching the Multichoice service in Mbarara town the Mbarara municipality Mayor His Worship Wilson Tumwiine said the new service will help his local community to access to international information through the wide range of channels GOtv will be offers to the subscribers.
President Rotary International visits Uganda
n Cowell under fire Now he is to be a father, you might think Simon Cowell would want to start looking after himself – and his pregnant girlfriend – a little better.But it seems even the responsibilities of impending parenthood can’t stop the TV mogul from lighting up a cigarette.The 54-year-old has been spotted smoking in the company of Lauren Silverman in the past weeks, leading to fears his habit could harm his unborn baby.
East African Beauty Queens for “African Harvest” in Uganda BY WINNIE MANDELA nKAMPALA, UGANDA- beauty queens from Kenya, Tanzanian, South Sudan and Rwanda will join their Ugandan counterparts on the 8th of November at Lake Victoria resort for the third edition of the East African Harvest also referred to as the Mavunno Yetu. African Harvest is a talked about event is all about beauty with purpose and is expected
to come to life as they promote fashion, food, music drinks and general East African culture. The beauty queens will work hand in hand with chefs from the participating countries to prepare the signature dishes of their respective countries. The event will be a cultural night with a hearty banquet, cultural dances and fashion case by major fashion icons in Uganda such as Santa Anzo of Arapapa in Uganda and Tanzania’s Mustafa Hasan Ali
The President of Rotary International Ron Burton arrives in Uganda on Monday for a three-day visit. Burton will participate as a “Goodwill Ambassador for Rotary,” in promotion of proper hand washing with soap. He will also have various private and public engagements, including a conference on Tuesday. The conference is expected to be officially opened by The First Lady Janet Museveni at Hotel Africana.
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EAC
East African Business Week I November 4-10, 2013
Education key for devt in Region nBUJUMBURA, BURUNDI The Speaker of the East African Legislative Assembly, Rt. Hon Margaret Nantongo Zziwa is calling for concerted efforts to improve the quality of education as a pre-cursor to the region’s development. Zziwa was speaking over the weekend at Kirera University in Gitega Province, Burundi, where she led EALA Members in Community day (Ibikorwa Rusangi) activities. The Speaker commended the Government of Burundi for initiating free primary school education and noted that community participation in building schools had helped to contribute to enhance the number of schools resulting in improved education. “That the local community has helped to contribute to the construction of the University here and that of many other schools is laudable. Education leads to liberation and can help transform a society”, she remarked. She informed the public that EALA would make its contribution in terms of monetary value to the project. The 2nd Vice President of Burundi, H.E. Gervais Rufyikiri remarked that the University which opens its doors for admission of students next year, was the inaugural one for the region. “We want to ensure the youth in the country have a chance to benefit from quality education”, the Vice
formation and Environment Sciences among others” the Rector disclosed. The University has been built entirely by the Community at the cost of 1 Billion Burundian francs and is situated on a 25 acre piece of land donated by the Government. The EALA Members later visited the Karera Falls and the source of the Nile in Gitaba before returning to Bujumbura. The EALA Plenary enters its second and final week beginning today. EAC Press Release
“ Burundi VP, H.E. Gervais Rufyikiri and EALA Speaker, Rt. Hon Margaret Zziwa at Kirera University President remarked. In the same respect, the Vice President said Burundi is committed to create jobs and expansion of the
opportunities to improve the lives of its citizens. The Rector of the University, Prof Joseph Ntawuyankira, noted that the
University would offer an array of courses beginning 2014. “We shall offer Bachelor degrees in Commerce Studies, Telecommunications and In-
University doors for admission of students next year. We want to ensure the youth in the country have a chance to benefit from quality education
EALA debates, adopts audited accounts report nBUJUMBURA, BURUNDI EALA (East African Legislative Assembly) has debated and adopted the report of the Committee on Audited Accounts which was presented to the House by the Chairperson of the Accounts Committee, Hon Straton Ndikuryayo. The reported was adopted on October 28, 2013. According to the report, the EAC Secretary General has a minimal supervisory role over the EAC Institutions. These include the Civil Aviation Safety and Security Oversight Agency (CASSOA), Lake Victoria Fisheries Organisation (LVFO), Lake Victoria Basin Commission (LVBC) and the Lake Victoria Environment Management Programme 11 (LVEMP11). The report calls for the amendment and harmonization of legal instruments to comply with the provisions of Article 67(3) of the EAC Treaty. This allows for more engagement by the Secretary General. There is also need to elevate the Monitoring and Evaluation Unit into a directorate and develop a strategy for monitoring of performance. The Accounts Committee revealed that the EAC has funding gaps owing to faulty funding mechanisms. It recommended the need to comply with the funding obligations in a timely fashion and manner. The EAC Council of Ministers is further urged to direct the relevant EAC Organs to stop forthwith, the use of General Reserves unless, otherwise approved by relevant authority.
Hon Straton Ndikuryayo presents the Report of the Committee. Ndikuryayo’s report further delved into a number of financial and administrative issues including internal controls and accounting systems, review of ICTs and integrated systems and human resource management. Members called for speedy completion of the institutional review and the full implementation of the audit Reports. Hon Yves Nsabimana rged the House to request for an audit on investment and value for money issues in order to assess the feasibility of investments and decision making. Hon Shy-Rose Bhanji said insufficient funding and understaffing were factors that could hamper progress. The legislator urged the Council to
urgently recruit staff. She called for efforts to fight the water hyacinth which is choking Lake Victoria. Hon Pierre Celestin Rwigema disclosed that the procedures of recruitment were lengthy and cumbersome. He said: “There are gaps currently occasioned by resignations and natural attrition but they are yet to be filled affecting the overall performance of the Community.” Hon Susan Nakawukki said it was improper for the institutions to borrow from the gratuity fund for their own use and to repay back when Partner States fulfilled their obligations. The legislator cited the LVBC as one of the institutions borrowing from the said fund. Hon Nakawuki
urged the Inter-University Council of East Africa to improve its accounting operations and systems. The legislator indicated that institutional memory was absolutely key. “Currently, the contracts of the Officers (Clerks) within the Office of the Clerk shall end at the same time. This may throw the Assembly into shambles. We should consider performance based contracts where we can renew the contracts of those who have performed above expectations as opposed to the current fixed period of two- five year terms,” Hon Nakawuki said. Hon Jeremie Ngendakumana called for more scrutiny of the Organs and Institutions of the EAC. He said: “The financial audit of any institution is actually the mirror and we must pay due diligence to this fact.” He called on the Council of Ministers to elaborate on the position of EADB as an institution. “I thought we as the Community need to have some ownership by way of finances as well.” The Counsel to the Community (CTC), Hon Wilbert Kaahwa, said the EADB was an institution of the EAC and the audit Committee could in fact, audit the Bank. The CTC clarified the EAC did not have any shareholding at the moment but its Membership was based on the previous relationship (original EAC). Also rising in support of the Motion was Hon Christophe Bazivamo, Hon Mike Sebalu, Hon Bernard Mulengani.
The Chair of the Council of Ministers, Hon Shem Bageine took cognizance of the recommendations of the Report and said the Council would spare no efforts to ensure they were implemented expeditiously. On the Supervisory roles of the Secretary General as the Chief Accounting Officer, the Minister noted that all Institutions would henceforth furnish the Office of the Secretary General with periodic reports. The Minister was categorical that all Partner States had been directed to submit all outstanding arrears by 31st December 2013. This is in order to meet the funding gaps in some of the institutions. The Council he remarked had initiated a study for alternative financial mechanism. Hon Bageine said his Council would further expedite the filling of vacant posts even as the Institutional Review progresses. On VAT refunds, the Minister assured the House it had directed the EAC Secretariat, Organs and Institutions to liaise with the Ministries in the Partner States to acquire the tax exemption certificates. He supported the use of uniform accounting software and maintained the integration system would be finalized by March 2014. The Minister also said the Community was aware of future expansion plans and that the architectural drawings of the EAC Headquarters had taken the matter into consideration. EAC Press Release
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AGRICULTURE
East African Business Week I November 4-10, 2013
Extension services need overhaul nKAMPALA, UGANDA - Before the Government of Uganda established semi-autonomous institutions in the Ministry Of Agriculture, many farmers expected to reap big. The institutions that were formed include: Plan for modernization of Agriculture, National Agriculture Research Organization (NARO), the National Agriculture Advisory Services (NAADs) and Dairy Development Authority among others. It is not possible to quantify how farmers have gained from these various semi-autonomous institutions. Civil society has implored Government to centralize activities of the agriculture ministry and intensify the monitoring instruments instead of relying on actions by the semi-autonomous institutions. Civil society organizations reiterated this at the annual Farm Power public dialogue at Hotel Africana in Kampala recently. The symposium was jointly organized by the Eastern and Southern Africa Small Scale Farmers Forum (ESAFF) -Uganda, Uganda Debt Network (UDN), CARITAS-Uganda, PELUM-Uganda and SEATINIUganda. They met to discuss the role of agriculture extension services to the local farmers particularly the small scale farmers. Farmers are routinely given inadequate information which in turn affects production. In the meeting it was observed that although Government institutions like NAADs and NARO which are supposed to offer agriculture extension advisory services are inefficient, it has been claimed that where they have tried, they, segregate farmers. George Assimwe the Communications and Advocacy Officer at ESAFF – Uganda said the Government should monitor the autonomous institutions in the agriculture sector. He said: “Some of these institutions are selective when it comes to delivering agricultural advisory services. You find in a whole subcounty only twenty farmers are supported. The selective manner hinders farmers who cannot access technical information from extension services providers. That is why we are calling for the unification into the ministry. This will enable Ugandan farmers get access to these services free of charge as it is with the Universal Primary Education.” He said the Government has invested and financed projects vying for new innovations and research in crop breeding. The end result does not help farmers. Reason being NARO and NAADs are not coordinated. NAADs agriculture extension service providers are unable to translate to farmers the technology being developed at the various research institutions under NARO. Where they try, they focus mainly on farmers under the NAADs program at the sub country level. Speaking during the same forum Betty Rose Aguti, the Policy and Advocacy Specialist at Caritas Uganda, said the Government at local Government level is not supporting farmers especially at the sub-county, parish and village levels. This is where farm-
NAADS PROJECT: Some farming groups have been facilitated and benefited from the extension services
“ Minister of Agriculture, Tress Bucyanayandi ers are supposed to go and acquire advisory services concerning crop production. “Many districts have not recruited agricultural extension service providers both at the district level and sub-county level. That is why most farmers are still ignorant about the new farming technologies and how to use agriculture inputs like pesticides and herbicides. Where they have been recruited they are not facilitated and cannot reach farmers at the grass root level,” she explained. Aguti warned that if the Ministry Of Agriculture does not intervene, the country may end up in total food insecurity. She said: “The whole system is rotten we do not know which institution is responsible of equipping farmers with agricultural advisory services. Let the Government reunify the ministry of agriculture as it was. It was disintegrated into the various semiautonomous institutions which have failed to deliver as farmers expected.” She said the Government has now established two parallel institutions offering the same services at different levels of remunerations. This has demoralized Government workers at
The Government is coming up with a new model through which some of the service offered by different institutions are going to be implemented by a single institution
District level and caused confusion. “We have agriculture extension service providers at the district level in the office of the district production officer. Sometimes at the sub-county level which is poorly facilitated, the Government has recruited and facilitated NAADs. But by offering funding and technology to a few farmers in the district, these institutions instigate confusion which affects the quality services and wastes tax payer’s money.” She said She noted that agriculture extension services providers under the ministry can offer quality services if the Government improves the working environment of various extension services providers by procuring transport facilities like motorcycles to ease transport as it is with NAADs. When contacted to comment on the allegations forwarded by the civil
society the minister of agriculture, Tress Buchyanayandi told the East African Business Week that the civil society is right. The establishment of autonomous institutions in the ministry makes their supervision role very complicated. He said: “As the Minister responsible for Agriculture this makes my role very complicated. Some of these institutions should be brought back to the center such that we can monitor their performance. At the current environment, my ministry has little to do because the extension service providers are protected by an act of parliament through which they were established.” According to him, the Government is coming up with a new model in which some of the services being offered by different institutions are going to be implemented by a single institution. These will not only ease the flow of information but support agriculture productivity. Buchyanayandi said: “The ministry will be implementing the agriculture technology and advisory service system (ATAAS) we hope this program will solve all the challenges farmers are facing but farmers should not lose hope.” The major objective of ATAAS is to increase agriculture productivity and commercialization through the development of Agriculture technology and Advisory services. Dr. Henry Manyire, of Makerere University blamed the Government for effecting foreign policies on smallscale agricultural farmers. Manyire said the establishment of autonomous institutions at the Ministry Of Agriculture was a World Bank project however in Uganda such projects cannot be implemented. “When you look at all the institutions their ability to offer extension services is demand -driven and this cannot be well implemented in
Uganda. This is because the majority of the farmers are not adequately supported and cannot access the modern technology such as Internet and access the new innovations. How do you expect them to benefit from such programmes?” he asked. Adding that: “It is only the heavy commercial farmers that can benefit from such services.” Manyire said in the traditional system there was proper flow of information between the farmers and policy implementers at the Ministry Of Agriculture because the Government had recruited agricultural extension services providers from the village level, Sub-County level and at the district level. This helped the policy implementers to understand challenges faced by farmers. He said when the Government reintroduces the old model it will enable scientific researchers understand which technology is suitable for particular farmers in various regions. However when the East African Business Week contacted NAADs Public Relation Officer, Anthony Wanyoto, he said complaints from civil society are false because the Government reports show food production has improved in the country and this has been associated with the intervention of autonomous institutions like NAADs. He said: “That is big lie from those people. NAADs is doing well. Farmers are getting agriculture advisory services through our call centers or through our extension services providers at the various levels in the country at no charge. When it comes to agriculture we deal with farmers in farming groups.” Wanyoto said the agricultural sector in Uganda is immense. NAADs cannot cater for every farmer but when they are in groups this can help the agriculture extension services providers to first train and equip them before NAADs releases the funds or the farming inputs.
FACT FILE NAADS Promote food security, nutrition and household incomes though increased productivity and market oriented farming; Empower farmers to access and utilise contracted agricultural advisory services; Develop private sector agricultural advisory delivery capacity and systems and assure quality of advice. NARO Transform agricultural production into a modern science-based market oriented agriculture capable of greater efficiency, profitability and of sustaining growth in the agricultural sector while contributing to poverty reduction. Support the development and implementation of national policy with relevant information and knowledge.
TENDERS
23
East African Business Week I November 4-10, 2013
The Privatization Unit (PU) MINISTRY OF FINANCE, PLANNING & ECONOMIC DEVELOPMENT
BID NOTICE UNDER OPEN BIDDING Consultancy services to carry out legal, reputational, technical and financial investigative due diligence studies. PUSRP/SRVCS/2013-14/00014 The Privatization Unit (PU) has allocated funds to be used for the acquisition of consultancy services to carry out legal, reputational, technical and financial investigative due diligence studies. These investigative due diligence studies are to advise the Government of Uganda on the risks associated with potential investors and/or service providers in the specific areas of legal, reputation, operations and financial status of the firms. Consultants may associate to enhance their qualifications. The Privatization Unit now invites sealed bids from eligible bidders for the provision of the abovementioned services. Bidding will be conducted in accordance with the open international bidding procedures contained in the Government of Uganda’s Public Procurement and Disposal of Public Assets Act, 2003, and is open to all bidders from eligible source countries. Interested eligible bidders may obtain further information from the Privatization Unit – Procurement Office and inspect the bidding documents at their offices on 2nd Floor Communications House, Plot 1 Colville Street, Kampala Uganda, between the hours 9:00am to 4:00pm. The bidding documents may also be viewed on the PU website – www.perds.go.ug A complete set of Bidding Documents in ENGLISH may be purchased by interested bidders upon payment of a non-refundable fee of UGX 260,000 (Uganda Shillings Two Hundred and Sixty Thousand) or
US$ 150 (United States Dollars One hundred and Fifty). The method of payment will be CASH PAYMENTS at the PU Accounts Office on 2nd Floor Communications House, Kampala or wire transfer directly into the PU Accounts. The document will be available for pick-up by the bidder’s representative once payment is accepted. No liability will be accepted for loss or late delivery. Bids must be delivered to the PU Registry/ Mailroom, on 2nd Floor, Communications House, Kampala at or before December 31, 2013, at 2:00pm, EAST AFRICAN TIME Late bids shall be rejected. Bids will be opened in the presence of the bidders’ representatives who choose to attend at the PU Procurement Office (address above) at 2:20pm on December 31, 2013. Procurement Schedule:
1 2 3 4 5
Activity Issue of solicitation documents Bidding period ends Evaluation and negotiations Notification of award Contract award
Date October 31, 2013 December 31, 2013 December 31, 2013 – January 10, 2014 January 15, 2014 After Solicitor General’s clearance
The Director – Privatization Unit
PUBL IC NOTICE BROADCASTERS’ F ORUM F OR EASTERN REG ION
The Ministry of Information and National Guidance, in collaboration with the Ug anda C ommunications C ommission (UC C ), have org anised a broadcasters’ forum for Proprietors and Manag ers of R adio and Television S tations in the Eastern Region. The forum, scheduled to tak e place at J inja Nile Resort on Thursday , November 7, 2013 starting at 9:00am, shall focus on the L icensing Conditions of the Electronic Media, among other pertinent issues in the broadcasting sector. The Minister for Information and National G uidance, H on. Rose Namay anja, shall be the Guest of H onour. By this communications all proprietors of electronic media houses – radio and TV stations in the E astern reg ion i.e. J inja, Buyende, K amuli, K aliro, Mayug e, Ig ang a, Bug iri, Namaying o, Busia, Tororo, Mbale, Bududa, Manafwa, S ironk o, Budadiri, K apchorwa, Buk edea, K umi, Ng ora, S oroti, K atak wi, Amuria, S erere, K aberamaido, and Pallisa – are according ly informed. Those in Nak apiripirit, Moroto and the entire K aramoja reg ion are also invited. Please, k eep time. Ex ecutive Director Uganda Communications Commission UCC H ouse Plot 4 2- 4 4 Spring Road, Bugolobi P.O. Box 7376, K AMPAL A Tel: + 256- 31- 2339000; + 256- 4 1- 4 339000 F ax : + 256- 4 1- 4 34 8832 Email: ucc@ucc.co.ug Website: www.ucc.co.ug
TENDER NOTICE No 007/ PU/ MOD/ 013- 014 1. The Ministry of Defence invites qualified bidders to submit bids for the following tenders: a. S upply of V ehicle and W eapon L ubricant; b. S upply of Tyres; c. Supply of badges, gifts, banners, certificates and printing photos; d. S upply and Installation of S C S C Gymnasium E q uipment; e. S upply of S C S C S anitation Materials; f. S upply of S C S C L ibrary Book s. 2. Bidding document may be obtained from the Ministry of Defence’s Procurement Office PO Box : 23 K ig ali- R wanda; Tel: 078 8 4 78 9 08 ; E - mail: pu@ minadef.g ov.rw, emmenuel. rutebuk a@ minadef.g ov.rw upon presentation of proof of payment of a non refundable fee of Ten thousand R wandan F rancs ( 10,000 Rwf) for each tender on Account Number 120 00 4 6 ( NF RA) in BNR.
bids in sealed envelopes must be addressed to the Ministry of Defence’ s Procurement office before 09h30 am local time on 4 / 12/ 2013. L ate bids shall be rejected. 5. The opening of bids will tak e place on the same date of submission of bids on 4 / 12/ 2013 in a public session from 10h00 am local time in the conference room of the MoD’s Procurement office respectively as tenders are rank ed. 6 . Any information reg arding the aforementioned tender may be obtained by any interested bidder throug h 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 K ig ali, on 25/ 10/ 2013.
3. There will be a compulsory site visit scheduled on 19/ 11/ 2013 at 11h00 at R DF S C S C Nyak inama, Musanz e District, to visit where Gymnasium E q uipment shall be installed. 4 . W ell printed bids properly bound must be submitted in 04 copies of which, one of them should be an orig inal and 03 copies conforming to the orig inal. The submission of
INTERNATIONAL OPEN TENDER NOTICE Nº 011/ F / 013- 014 - I/ NAEB
Title: TENDER F OR TH E SUPPL Y OF 1,4 00 TONS OF F ERTIL IZ ER NPK 22- 6- 12 + S F OR COF F EE Client: NATIONAL AG RICUL TURAL EX PORT DEV EL OPMENT BOARD ( NAEB) F inanced by : F ERTIL IZ ER F UNDS
1. NATIONAL AG RICUL TURAL EX PORT DEV EL OPMENT BOARD ( NAEB) invites all national and international interested bidders to tender for the supply of 1,4 00 tons of fertiliz er NPK 22- 6- 12+ S for coffee; the tender is divided in one lot. 2. Participation is open to all individual persons and companies specialised in the field. 3. Tender Document may be obtained freely from the Procurement Unit at NAEB Head Office, Gikondo, and P.O .Box . 104 K ig ali. Tel. (250) 252 575 6 00, E - mail: info@ naeb.g ov.rw, or on its W ebsite: www.naeb.g ov.rw.
at the address mentioned in the tender document not later than 20/ 12/ 2013 at 09 h00’ am, local time (7: 00 GMT). L ate bids will be rejected. 5. All bids shall be accompanied by a Bid S ecurity of eleven thousand one hundred United S tates Dollars (US $ 11, 100) issued by a bank or an insurance company. 6 . The opening of bids will tak e place on the same day at 10: 00 hours local time (8 .00 GMT) in the Board room at NAEB Head Office in public session. 7. Bidding will be conducted in accordance with the L aw N° 12/ 2007 of 27/ 03/ 2007 on Public Procurement. Done at K ig ali on 22/ 10/ 2013
4 . W ell printed bids, properly bound and presented in four copies one of which Amb.G eorge William is the orig inal and three copies must K AY ONG A reach the Procurement office of NAEB Director G eneral of NAEB
24
TENDERS
East African Business Week I November 4-10, 2013
Kenya's Centum eyes Uganda BY PAUL TENTENA nKAMPALA, Uganda- Centum Investment Group has advised Uganda to diversify the range of financial instruments in the capital markets to mobilise local capital to fund infrastructure projects. Centum CEO, James Mworia, said last week no country has developed its infrastructure purely from foreign funding and aid. He said Uganda should tap into the domestic capital markets to source long term capital. Such investment instruments would include infrastructure bonds to fund electricity, road, and rail projects and Real Estate Investment Trusts to finance growth in the property market. “There is a direct correlation in the level of infrastructure development and the level of competitiveness of a country,” Mworia said last week during a Uganda Capital Markets Authority event. “For Uganda to improve on its business competitiveness, it will have to increase its investment in infrastructure to approximately 10% of GDP. The government and the private sector developers can effectively tap the capital markets to ensure fast, efficient and cost effective fund raising for infrastructure projects,” Mworia said. Centum is cross-listed in Nairobi Securities Exchange and Uganda Securities Exchange. Mworia challenged Uganda to issue an infrastructure bond by the end of 2014, saying the company would commit up to of $10 million for the offer.
Centum’s Mworia challenged Uganda to issue an infrastructure bond next year. market. Maria Kiwanuka, Uganda’s finance minister said the government has been considering issuing an infrastructure bond to source capital needed to fund different projects. “For us to achieve the mid-income status that we envisage by year 2030, it requires the contribution of the private sector at a higher
“There is sufficient capital available locally and also internationally to finance infrastructure needs.... but there is a critical shortage of quality issuance,” he said. He said investors want long term avenues to invest like a well-planned infrastructure bonds estimating Uganda has potential to raise up to $150 milion annually in the bonds
scale. The domestic and regional capital can finance our infrastructure needs,” Kiwanuka said. The were speaking during the Kikonyogo Capital Markets Award ceremony- an annual event that recognizes outstanding contributors to the growth and development of capital markets in Uganda. The minister said there are however various amendments to the financial institutions regulations that needs to be made first so as to boost investor confidence. Centum has been leveraging on the capital markets to raise funds for various projects within East Africa. Underway is the Pearl Marina Estates, a prestigious commercial, leisure and residential real estate project to be located on 300 acres on the Garuga peninsula on the shores of Lake Victoria. The first phase, which will cost about $100 million, is scheduled to be commissioned in the second quarter of 2014. Centum is in the process of raising funds in Kenya under the recently enacted Real Estate Investment Trusts (REITS) and this project has received considerable interest from investors both in Kenya and from overseas. Unfortunately the rules restrict the use of these funds to projects in Kenya. He urged Uganda Capital Markets to consider setting up similar REITs segment for projects in Uganda to allow for the mobilization of capital for large scale real estate projects.
Invitation to bid under Open International / Domestic Bidding 1. Ug anda R evenue Authority (UR A) has allocated funds within its budg et to be used for the acq uisition of the supplies and related services below; 2. UR A therefore invites sealed bids from elig ible bidders for the Provision of the following ; No.
Procurement Reference Number
Description of Supplies & Related Services
Bid Security
Cost of Tender Document
Date & Time of Pre – Bid Meeting
Date of Bid Closing & Opening
Procurement Method
01.
UR A/ GDS / C S D/ 1213/ 01237
S upply of a C ompactor & Mobile S helves – R etender
Ug x : 1, 200, 000/ =
Ug x : 50, 000/ =
22/ 11/ 2013 at 10: 00 a.m
07/ 01/ 2014
International Bidding
02.
UR A/ GDS / C S D/ 1314 / 00100
S upply of Tobacco R evenue S tamps under F ramework C ontract
Ug x : 6 , 000, 000/ = or US $ 2, 500
Ug x : 100, 000/ =
22/ 11/ 2013 at 10: 00 a.m
07/ 01/ 2014
International Bidding
03.
UR A/ GDS / C S D/ 1314 / 0029 3
Acq uisition of K a Band, Internet S ervices, Data, W ireless Access and V S AT Installations under F ramework C ontract
Ug x : 9 00, 000/ =
Ug x : 50, 000/ =
19 / 11/ 2013 at 10: 00 a.m
10/ 12/ 2013
Domestic Bidding
04 .
UR A/ GDS / C S D/ 1314 / 004 29
S upply, Installation, C onfiguration, Commissioning & Maintenance of a W eb Based C all Manag ement S olution
Ug x : 2, 500, 000/ =
Ug x : 50, 000/ =
19 / 11/ 2013 at 10: 00 a.m
10/ 12/ 2013
Domestic Bidding
05.
UR A/ GDS / C S D/ 1314 / 004 6 7
S upply & installation of a 1000K V A Generator and 1000A S witch Gear for Nak awa H ead Q uarters
L O T 1: Ug x : 15, 000, 000/ = L O T 2: Ug x : 15, 000, 000/ =
Ug x : 100, 000/ =
26 / 11/ 2013 at 10: 00 a.m
07/ 01/ 2014
International Bidding
S upply of Document E x amination E q uipment
Ug x : 2, 000, 000/ =
Ug x : 100, 000/ =
06 .
UR A/ GDS / C S D/ 1314 / 006 6 3
26 / 11/ 2013 at 10: 00 a.m
07/ 01/ 2014
International Bidding
3. Bidding will be conducted in accordance with the O pen International / Domestic bidding procedures contained in the Government of Ug anda’ s Public Procurement and Disposal of Public Assets Act, 2003. 4 . Interested elig ible bidders may obtain further information from Ug anda R evenue Authority and inspect the bidding documents at the address g iven below at 8 (a) from 8 .00 am – 5.00 pm; Monday to F riday ex cept Public H olidays. 5. A complete set of Bidding Documents in E ng lish may be purchased by interested bidders on submission of a written application to the address in 8 (a) below stating the subject of procurement and their preferred bank . Bidders are advised to collect Bank Pay ment Registration Slips at the address in 8 (a) below and mak e payment of a non- refundable fee of either UG X : 100,000/ = or UG X : 50,000/ = as indicated in the table above to any of the 21 bank s authorised to receive Non Tax R evenue fees on behalf of UR A. The Bank shall issue a receipt of payment. Bidders will only be issued the bidding documents upon presentation of an orig inal receipt of payment. The documents will be
physically collected from the address in 8 (a) below. 6 . Pre – bid meeting s will be held on Tuesday 19th November 2013, F riday 22nd November, 2013 and Tuesday 26th November, 2013 at 10:00 a.m for the Domestic & International Procurements respectively at the address below in 8 (b) and as indicated in the table above. 7. Bids must be delivered to the address below at 8 (a) at or before Tuesday 10th December, 2013 and F riday 3rd J anuary , 2014 at 10:00 a.m for the Domestic & International Procurements respectively as indicated in the tables above & below. All bids must be accompanied by Bid S ecurities as indicated in the table above. Bids will be opened in the presence of bidders’ representatives who choose to attend at the address below in 8 (b) on Tuesday 10th December, 2013 and F riday 3rd J anuary , 2014 at 10:30 a.m for the Domestic & International Procurements respectively as indicated in the tables above & below. 8 . (a) The Manager, Procurement & Disposal Unit, Uganda Revenue Authority H eadq uarters, Plot M193/ M194 , Nak awa Industrial Area, NIP Building, Room 2.5, P. O. Box 7279, K ampala. Telephone: 256 ( 0) 4 17 - 4 4 2155/ 6/ 7/ 8/ 9 (b) Uganda Revenue Authority H eadq uarters, Nak awa Industrial Area, IT Boardroom The planned procurement schedule is as follows; Activity a.
Publish bid notice
Date ( International Bidding)
Date ( Domestic Bidding)
4 th November, 2013
1st November, 2013
b.
Pre – bid meeting
22nd & 26 th November, 2013
19 th November, 2013
c.
Bid closing date
7th J anuary, 2014 at 10: 00 a.m
10th December, 2013 at 10:00 a.m
d.
Bid opening date
7th J anuary, 2014 at 10: 30 a.m
10th December, 2013 at 10:30 a.m
e.
E valuation process
Between 8 th & 16 th J anuary, 2014
Between 3rd & 16 th J anuary, 2014
f.
Display and communication of best evaluated bidder notice
Between 28 th J anuary, 2014 & 10th F ebruary, 2014
Between 28 th J anuary, 2014 & 10th F ebruary, 2014
g .
C ontract award and sig nature
After ex piry of the best evaluated bidder notice and S olicitor General’ s approval.
After ex piry of the best evaluated bidder notice and S olicitor General’ s approval.
Ug anda R evenue Authority reserves the rig ht to accept or reject any bid. ACCOUNTING
OF F ICER
25
BUSINESS INFO
East African Business Week I November 4 - 10, 2013 DAR ES SALAAM - DSE Date Company Opening Closing price (Tshs) price (Tshs) 310 310 Oct 31 2013 TOL 5500 5500 Oct 31 2013 TBL 0 650 Oct 31 2013 TTP 0 8240 Oct 31 2013 TCC 2340 2340 Oct 31 2013 SIMBA 2660 2660 Oct 31 2013 SWISS 0 2680 Oct 31 2013 TWIGA 0 490 Oct 31 2013 DCB 2420 2420 Oct 31 2013 NMB 0 200 Oct 31 2013 KA 0 5920 Oct 31 2013 EABL 0 5240 Oct 31 2013 JHL 0 910 Oct 31 2013 KCB 280 280 Oct 31 2013 CRDB 0 6000 Oct 31 2013 NMG 0 5060 Oct 31 2013 ABG 0 475 Oct 31 2013 PAL
Weekly Trends (EA Stock Exchanges) DSE ALL SHARE INDEX
USE ALL SHARE INDEX
1,950.00
1,640.00
131.6 131.5 131.4 131.3 131.2 131.1 131 130.9 130.8
1,580.00
SECURITY
PRICES AS AT
RSE ALL SHARE INDEX
16-Oct-13
1-Nov-13
31-Oct-13
30-Oct-13
29-Oct-13
28-Oct-13
25-Oct-13
31-Oct-13
30-Oct-13
29-Oct-13
28-Oct-13
27-Oct-13
26-Oct-13
25-Oct-13
1-Nov-13
31-Oct-13
30-Oct-13
29-Oct-13
28-Oct-13
27-Oct-13
26-Oct-13
Financial markets Nairobi (NSE)
27-Oct-13
1,570.00
1,700.00 25-Oct-13
USE ALL SHARE INDEX
1,590.00
24-Oct-13
1,750.00
1,600.00
23-Oct-13
DSE ALL SHARE INDEX
22-Oct-13
1,800.00
26-Oct-13
NSE ALL SHARE INDEX
1,610.00
21-Oct-13
1,850.00
20-Oct-13
1,620.00
19-Oct-13
1,630.00
1,900.00
18-Oct-13
134.5 134 133.5 133 132.5 132 131.5 131 130.5 130 129.5 129
RSE ALL SHARE INDEX
17-Oct-13
NSE ALL SHARE INDEX
PREVIOUS PRICE
% CHANGE
23.50 94.00 120.00 500.00 26.25 14.00 218.00
23.50 94.00 120.00 500.00 27.00 13.70 211.00
0.00 0.00 0.00 0.00 -2.78 +2.19 +3.32
23.75 13.50 11.90 5.50
23.75 13.50 11.90 5.45
0.00 0.00 0.00 +0.92
18.65 78.00 182.00 35.50 26.75 103.00 48.50 20.25 59.50 303.00 17.85
18.70 76.50 181.00 35.00 26.75 102.00 48.50 20.25 59.00 306.00 17.60
-0.27 +1.96 +0.55 +1.43 0.00 +0.98 0.00 0.00 +0.85 -0.98 +1.42
4.00 20.25 10.45 15.80 319.00 58.50 26.50 45.00 21.25
3.95 20.25 10.45 15.80 319.00 58.50 29.00 45.00 21.00
+1.27 0.00 0.00 0.00 0.00 0.00 -8.62 0.00 +1.19
81.00 214.00 66.50 16.70 71.00
80.00 210.00 66.50 16.70 70.50
+1.25 +1.90 0.00 0.00 +0.71
17.00 8.95 14.30 24.25 13.00
17.35 9.05 14.25 24.75 13.00
-2.02 -1.10 +0.35 -2.02 0.00
KAMPALA - USE Date Company Oct 31 2013 ALSI Oct 31 2013 BATU Oct 31 2013 BOBU Oct 31 2013 CENT Oct 31 2013 DFCU Oct 31 2013 EABL Oct 31 2013 EBL Oct 31 2013 JHL Oct 31 2013 KA Oct 31 2013 KCB Oct 31 2013 NIC Oct 31 2013 NMG Oct 31 2013 NVL Oct 31 2013 SBU Oct 31 2013 UCL Oct 31 2013 UMEME Oct 31 2013 USE LCI TOTALS
OCTOBER 31 2013 (KSH)
AGRICULTURAL Eaagads Ltd Ord 125 Kakuzi Ord 500 Kapchorwa Tea Co Ltd Ord 500 Limuru Tea Co Ltd Ord 2000 Rea Vipingo Plantations Ltd Ord 500 Sasini Ltd Ord 100 Williamson Tea Kenya Ltd Ord 500 AUTOMOBILES AND ACCESSORIES Car and General (K) Ltd Ord 500 CMC Holdings Ltd Ord 500 Marshalls (EA) Ltd Ord 500 Sameer Africa Ltd Ord 500 BANKING Barclays Bank Ltd Ord 050 CFC Stanbic Holdings Ltd Ord 500 Diamond Trust Bank Kenya Ltd Ord 400 Equity Bank Ltd Ord 050 Housing Finance Co Ltd Ord 500 I&M Holdings Ltd Ord 100 Kenya Commercial Bank Ltd Ord 100 National Bank of Kenya Ltd Ord 500 NIC Bank Ltd Ord 500 Standard Chartered Bank Ltd Ord 500 The Co-operative Bank of Kenya Ltd Ord 100 COMMERCIAL AND SERVICES Express Ltd Ord 500 Hutchings Biemer Ltd Ord 500 Kenya Airways Ltd Ord 500 Longhorn Kenya Ltd Nation Media Group Ord 250 Scangroup Ltd Ord 100 Standard Group Ltd Ord 500 TPS Eastern Africa (Serena) Ltd Ord 100 Uchumi Supermarket Ltd Ord 500 CONSTRUCTION AND ALLIED Athi River Mining Ord 500 Bamburi Cement Ltd Ord 500 Crown Berger Ltd 0rd Ord 500 EACables Ltd Ord 500 EAPortland Cement Ltd Ord 500 ENERGY AND PETROLEUM KenGen Ltd Ord 250 KenolKobil Ltd Ord 005 Kenya Power & Lighting Co Ltd Total Kenya Ltd Ord 500 Umeme Ltd Ord 050 GROWTH ENTERPRISE MARKET SEGMENT Home Africa Ltd Ord 100 INSURANCE British-American Investments Company ( Kenya) Ltd Ord 010 Liberty Kenya Holdings Ltd CIC Insurance Group Ltd Ord 100 Jubilee Holdings Ltd Ord 500 Kenya Re-Insurance Corporation Ltd Ord 250 Pan Africa Insurance Holdings Ltd Ord 500 INVESTMENT Centum Investment Co Ltd Ord 500 Olympia Capital Holdings ltd Ord 500 Trans-Century Ltd Ord 500 MANUFACTURING AND ALLIED ABaumann CO Ltd Ord 500 BOC Kenya Ltd Ord 500 British American Tobacco Kenya Ltd Ord 1000 Carbacid Investments Ltd Ord 500 East African Breweries Ltd Ord 200 Eveready East Africa Ltd Ord 100 Kenya Orchards Ltd Ord 500 Mumias Sugar Co Ltd Ord 200 Unga Group Ltd Ord 500 TELECOMMUNICATION AND TECHNOLOGY AccessKenya Group Ltd Ord 100 Safaricom Ltd Ord 050 PREFERENCE SHARES Kenya Power & Lighting Ltd 4% Pref 2000 Kenya Power & Lighting Ltd 7% Pref 2000
7.30
7.80
-6.41
10.35 12.20 4.60 284.00 14.45 65.00
10.15 12.30 4.60 279.00 14.45 62.00
+1.97 -0.81 0.00 +1.79 0.00 +4.84
30.75 4.45 29.75
30.00 4.35 29.75
+2.50 +2.30 0.00
11.10 125.00 574.00 212.00 319.00 2.70 3.00 3.50 18.00
11.10 120.00 573.00 208.00 315.00 2.75 3.00 3.50 18.10
0.00 +4.17 +0.17 +1.92 +1.27 -1.82 0.00 0.00 -0.55
9.55 9.45
9.55 9.25
0.00 +2.16
7.50 5.50
7.50 5.50
0.00 0.00
Kenya
Nairobi Beans (Rosecoco)
- 90kg
Fish (Tilapia)
- 1 kg
Ground Nuts
Uganda
Eldoret
Kampala
Lira
No of Deals Shares Traded 0 0 0 0 4 50,000 0 0 1 118 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 1,055 3 100,000 1 9,790 3 12,230 0 0 14 173,193
310 45570 5500 23100000 0 0 0 0 2340 84240 2660 101080 0 0 0 0 2380 66144420 0 0 0 0 0 0 0 0 280 294433440 0 0 0 0 0 0
High (Ushs) 0 0 120 0 1,040 0 0 0 0 0 0 0 630 30 30 365 0
Foreign Market Number Outstanding Outstanding No of holding of Deals share bids share offers shares Capital traded (Tsh) bln) % age 2 100 0 147 11.54 5.84% 2 60600 0 4200 1622.11 67.63 0 0 0 0 11.61 47.60 0 500 1200 0 824.00 75.00 1 0 3000 36 148.99 62.50 1 6700 0 38 95.76 72.00 0 0 82100 0 482.19 69.25 0 0 81900 0 33.24 0.07% 12 49200 31200 27559 1210.00 38.57 0 0 1100 0 299.29 N/A 0 0 0 0 4681.38 N/A 0 0 0 0 313.85 N/A 0 0 0 0 2703.01 N/A 17 3400 234100 1051548 609.43 15.47 0 0 0 0 1131.25 N/A 0 0 0 0 2075.03 N/A 0 0 188300 0 76.22 34.13 SOURCE - Dar es Salaam Stock Exchange
Low (Ushs) 0 0 120 0 1,040 0 0 0 0 0 0 0 630 30 30 365 0
Closing (Ushs) 1,611 4,050 120 889 1,040 9,333 1,037 8,267 310 1,437 35 9,452 630 30 30 365 260
Turnover (Ushs) 0 0 6,000,000 0 122,720 0 0 0 0 0 0 0 664,650 3,000,000 293,700 4,463,950 0 14,545,020 SOURCE - Uganda Stock Exchange
Total Shares Equity Turnover (Rwf) Total Deals Change Traded in Rwf Today Previous Today Previous Today Previous Today 23,800 390,000 440,400 74,100,000 5 4 +5 100 82,900 1 2,800 490,000 1 1,000 1,200,000 5 3,600 630,000 3 SOURCE - Rwanda Stock Exchange
Forex (Central Bank rates) US Dollar Pound Sterling US Dollar Pound Sterling Euro SA Rand KShs/UShs KShs/TShs KShs/RwF KShs/BiF UAE Dirham J Yen Indian Rupee Saudi Riyal Chinese Yuan US Dollar Pound Sterling Euro J Yen Indian Rupee SA Rand UAE Dirham Saudi Riyal Kenyan Shilling Uganda Shilling Burundi Franc US Dollar Pound Sterling J Yen Euro Kenyan Shilling Ethiopian Birr Rwanda Franc Burundi Franc Tanzania Shilling Sudanese Dinar SA Rand
Food market prices (wholesale) US$ Package
310 5500 0 0 2340 2660 0 0 2420 0 0 0 0 280 0 0 0
Turnover (Tshs)
KIGALI - RSE Date Security Last 12 Today’s Prices Months (Rwf) High Low High Low Closing Previous Oct 24,2013 BOK 200 118 195 190 195 190 Oct 24,2013 BLR 900 315 829 829 Oct 24,2013 KCB 175 135 175 175 Oct 24,2013 NMG 1,200 1,200 1,200 1,200 Oct 24,2013 USL 175 175 175 175
SOURCE - Nairobi Stock Exchange
Commodity
High Low
Tanzania
Rwanda
Burundi
Dar-es-salaam
Kigali
Bujumbura
6403
5454
8810
-
11205
6137
-
-
836
-
-
-
-
-
- 100kg
11435
10177
12530
12922
-
-
-
Irish Potatoes (White)
- 110kg
2859
1944
4307
6030
-
-
-
Maize Grain
- 90kg
3373
2687
2643
2185
4482
3137
4689
Millet Grain
- 90kg
6175
4574
4934
4581
7278
9424
-
Rice
- 90kg
6861
6289
9868
8810
7838
9152
7034
Sorghum Grain
- 90kg
5031
4117
2115
1410
7838
2728
5566
Soy Beans
- 100kg
5374
-
5482
5090
-
-
-
Sweet potatoes
- 98kg
1715
-
1804
2256
-
US Dollar Chinese Yuan Euro Pound Sterling J Yen Burundi Franc Ethiopian Birr Kenyan Shilling Tanzania Shilling Uganda Shilling UAE Dirham Indian Rupee Saudi Riyal SA Rand J Yen US Dollar Pound Sterling Euro Kenyan Shilling SA Rand Tanzania Shilling Uganda Shilling Rwanda Franc
ADDIS ABABA (Birr) Mean 19.0898 30.5914 NAIROBI (Ksh) 85.0483 136.2161 116.5206 8.5106 29.5851 18.7810 7.8362 18.0772 23.1544 86.3884 1.3862 22.6765 13.9563 DAR ES SALAAM (Tsh) 16016516 25699321 21840926 163035 260491 1595718 4360608 4270728 187547 6313 15317 KAMPALA (Ush) 2,526.8700 4,057.6450 25.7600 3,479.5000 29.6250 132.9350 3.7560 1.6270 1.5720 12.5875 255.7200 KIGALI (RwF) 661.9310 108.7054 902.7415 1,061.5388 6.7365 0.4321 35.1605 7.9015 0.4212 0.2655 178.5047 10.6751 174.8156 65.7481 BUJUMBURA (FBu) 15.8564 1,539.4200 2,498.3247 2,126.8627 18.1750 158.2138 0.9585 0.6086 2.3011
Buying 18.9008 30.2885
Selling 19.2788 30.8943
85.2456 136.5494 116.8335 8.5989 29.7125 18.9422 7.9484 18.3543 23.2093 86.7513 1.3891 22.7303 13.9896
85.1469 136.3830 116.6770 8.5547 29.6488 18.8616 7.8923 18.2157 23.1819 86.5699 1.3876 22.7034 13.9729
15936832 25567459 21731464 162240 259237 1587749 4339032 4249708 186723 6256 15259
16096200 25831182 21950388 163829 261744 1603686 4382184 4291748 188370 6370 15374
2,524.5000 4,053.8400 25.7400 3,476.2400 29.5700 132.6900 3.7490 1.6240 1.5690 12.5640 255.2500
2,529.2400 4,061.4500 25.7800 3,482.7600 29.6800 133.1800 3.7630 1.6300 1.5750 12.6110 256.1900
655.6427 107.6727 894.1655 1,051.4542 6.6725 0.4280 34.8264 7.8264 0.4172 0.2630 176.8089 10.57368 173.154808 65.123479
668.2194 109.7381 911.3176 1,071.6234 6.8005 0.4362 35.4945 7.9766 0.4252 0.2680 180.2005 10.776506 176.476304 66.372693
15.7296 1,527.1046 2,478.3381 2,109.8478 18.0296 156.9481 0.9509 0.6037 2.2827
15.9833 1,551.7354 2,518.3113 2,143.8776 18.3204 159.4795 0.9662 0.6135 2.3195
26
EAST AFRICAN BUSINESS WEEK
26
NOV 4 - 9, 2013
TENDERS
TENDERS, JOBS & CONSULTANCIES East African Business Week I November 4-10, 2013
UGANDA
RWANDA
TANZANIA
TENDERS
TENDERS
TENDERS
Ministry of Agriculture Food Security and Cooperatives invites sealed bids from eligible and qualified bidders for the supply of processing equipment and farm machinery as follows:Processing facilities: Milling, Grading and Packaging -5 tonnes (1), 10 Tones(8), 15 Tonnes (4) and 30 tonnes(1)- 14 Units Farm Machinery and associated equipment (Igurusi) - Agricultural Tractor plus accesories and associated equipment On farm processing equipment - Medium Combine harvester (37), self propelled reaper (16) and multi crop thresher (16). Contact: The Secretary, Ministerial Tender Board, Ministry of Agriculture, P. O. Box 9192, Dar es Salaam, Kilimo House, 1 Floor/Room No. 19. Deadline: Dec 6, 2013.
The National Agricultural Export Development Board (NAEB) invites qualified bidders to submit bids for the supply of fungicide, watering cans and fertilizers for production of 29,411,765 coffee seedlings.The tender is divided into three divisible lots. Lot 1: Supply of fungicide Lot 2: Purchase of watering cans Lot 3: supply of fertilizers Well printed bids, properly bound and presented in four copies one of which is the original must reach at the address mentioned above not later than 04/12/2013 at 09:30 am(7:30 GMT).
Uganda National Roads Authority invites sealed bids from eligible bidders for the supply and delivery of reinforced concrete culverts for road maintenance activities. Contact: Procurement and Disposal Unit, Uganda National Roads Authority, Kampala, Uganda., Plot 5, Lourdel Road, Nakasero, Ground Floor, Room No. GA3, +256 312 233100. Deadline: Nov 18, 2013.
Tanzania Building Agency is now issuing General Procurement Notice in accordance with requirement of the Public Procurement Act No. 21 of 2004 and its regulation, 2005 for the purpose of informing the reputable suppliers, contractors, service providers, consultants and General public tender opportunities during the financial year 2013/2014. Interested suppliers, contractors, service providers and consultants requiring additional information should contact the Procurement Management Unit (PMU) at Tanzania Buildings Agency Headquarters, Sokoine Drive No. 2 opposite Karimjee Hall from 7.30 am -3.30 p.m Monday to Friday inclusive except Saturdays, Sundays and Public Holidays. Bank of Tanzania invites sealed bids from specialised contractors registered with contractors registration Board at class one to bid for the supply, installation, testing and commissioning of lift systems for the proposed branch office building at Mtwara Municipality. Contact: Secretary, BOT Tender Board, BOT Head Office at 10 Mirambo Street, 2nd Floor, South Tower, email: pmu@bot.go.tz, tel: +255 22 223519, Fax: +255 22 2234054. Deadline: Nov 22, 2013. Tanzania Ports Authority invites sealed bids for the supply, installation and commissioning of electronic single window system. Contact: The Secreatry Central Tender Board, Tanaania Ports Authority, P. O. Box 9184, Dar es Salaam, Tanzania. Deadline: Dec 5, 2013. Tanzania Ports Authority invites sealed bids from eligible, reputable and competent bidders for the supply, installation and commissioning of computerised fuel monitoring system for port equipment, motor vehicles and fuel filling stations at Dar es Salaam Port. Contact: The Secreatry Central Tender Board, Tanaania Ports Authority, P. O. Box 9184, Dar es Salaam, Tanzania. Deadline: Dec 5, 2013. The Ilala Municipal Council is issuing a general procurement notice. Contractors, suppliers consultants and Non consultants may obtain further information from the office of the secretary of the tender board, Iiala Municipal Council Depot along Nyerere Road, P. O. Box 20950 Dar es Salaam. The Government Procurement Services invites sealed bids from eligible suppliers of stationery and office supplies. Contact: Chief Executive Officer, Government Procurement Serivices Agency (GPSA), Keko Mwanga Area, Nyerere Road/Bohari Street, P. O.Box 9150, Dar es Salaam. Tel: +255 22 2861617/+255 22 2866071, Fax:+255 22 2866072, email: ceo@gpsa.go.tz. Deadline: Nov 17, 2013. The Government Procurement Services invites sealed bids from eligible suppliers of retail fuel dispensing pump with voltage stabilizer (16). Contact: Chief Executive Officer, Government Procurement Serivices Agency (GPSA), Keko Mwanga Area, Nyerere Road/Bohari Street, P. O.Box 9150, Dar es Salaam. Tel: +255 22 2861617/+255 22 2866071, Fax:+255 22 2866072, email: ceo@gpsa.go.tz. Deadline: Nov 17, 2013. The Government Procurement Services invites sealed bids from eligible suppliers of unallocated stores. Contact: Chief Executive Officer, Government Procurement Serivices Agency (GPSA), Keko Mwanga Area, Nyerere Road/Bohari Street, P. O.Box 9150, Dar es Salaam. Tel: +255 22 2861617/+255 22 2866071, Fax:+255 22 2866072, email: ceo@gpsa.go.tz. Deadline: Nov 7, 2013.
RURA now invites bids from eligible bidders to provide the following services: SUPPLY, INSTALLATION, COMMISSIONING, TRAINING, TEST AND MAINTAIN A MEDIA CONTENT MONITORING EQUIPMENT. 7. Enquiries regarding this tender may be addressed to the Procurement Office of RURA, P.O. Box 7289 Kigali, Tel. (+250) 252 584562, Fax. (+250) 252 584563.A tender security of 2% of the total quoted price, provided by a recognized bank or insurance institution should be submitted in the bid. Well printed bids, properly bound and presented in three copies and one original must reach the Procurement Office of RURA at the address mentioned above not later than 21/11/2013 at 10:00 a.m., local hour. The Rwanda Biomedical Centre/ Medical Procurement and Production Division (RBC/MPPD invites qualified bidders to submit bids for the supply of SUPPLY AND DELIVERY OF LABORATORY REAGENT, CONSUMABLES AND MEDICAL EQUIPMENT. Enquiries regarding this tender may be addressed to Head of Division, RBC/MPPD, Gasabo District, Kigali City, P.O. Box 640 Kigali - Rwanda. Tel. (+250) 252 580156/580157 - Fax. 0250 252 582725; Email: camerwa@gmail.com no less than 21 days prior the day of submission and opening. Well printed bids, properly bound and presented in two (2) copies and one (1) mandatory softcopy of price schedule in 2 CDs recordable, and one original must reach the reception of MPPD at the address mentioned above Not later than 21/11/2013 at 9 am o’clock (7 am GMT). The Ministry of Sports and Culture (MINISPOC) invites qualified bidders to submit proposals for feasibility study for upgrading of Rubavu and Nyamirambo stadiums and rehabilitation of Amahoro National Stadium. Request for proposals may be obtained from the Procurement office of the Ministry of Sports and Culture from 16th September 2013, upon presentation of proof payment of non refundable fee of ten thousand Rwandan Francs (Rwf 10,000) to Rwanda Revenue Authority’s Account N°120-00-46 opened at National Bank of Rwanda. Well printed proposals, properly bound and presented in four copies, one of which is the original must reach the Procurement Office at the address mentioned above not later than 14th Nov 2013 at 3.00 pm. RURA now invites bids from eligible bidders to provide the following services: SUPPLY OF DIGITAL TERRESTRIAL TELEVISION MONITORING EQUIPMENTS. Enquiries regarding this tender may be addressed to the Procurement Office of RURA, P.O. Box 7289 Kigali, Tel. (+250) 252 584562, Fax. (+250) 252 584563.A tender security of 2% of the total quoted price, provided by a recognized bank or insurance institution should be submitted in the bid. Well printed bids, properly bound and presented in three copies and one original must reach the Procurement Office of RURA at the address mentioned above not later than 22/11/2013 at 10:00 a.m., local hour.
CONSULTANCIES Rwanda Development Board (RDB) hereby invites proposals from competent consultancy firms to ASSESS THE RWANDA TOURISM PRODUCTS VIS-A-VIS INTERNATIONAL TOURISM MARKETS., as indicated in details in the terms of references included in the request for proposal (RFP).Proposal documents can be obtained from Rwanda Development Board building located at GISHUSHU NYARUTARAMA Road P.O. Box: 6939 Kigali-Rwanda from 28/10/2013, in Procurement Office, 4th floor. Well printed proposals, properly bound presented in four copies one of which is the original must be submitted in sealed envelopes not later than 12/12/2013 at 03:00 P.M local time (01:00 GMT)
Uganda National Roads Authority invites sealed bids from eligible bidders for the upgrading of Acholi Bur Road-Musingo, GuluAcholibur, Olwiyo-Gulu, Musiita-Lumino/Busia-Majanji, KanoniSembabule-Villa Maria on the National Road Network. Contact: Procurement and Disposal Unit, Uganda National Roads Authority, Kampala, Uganda., Plot 5, Lourdel Road, Nakasero, Ground Floor, Room No. GA3, +256 312 233100. Deadline: Nov 25, 2013. TradeMark East Africa (TMEA) invites sealed from eligible and qualified bidders to undertake the civil works for the upgrading of Nyungamo-Mirama Hills/Kakitumba road (37km) from Gravel to Bituminous standard, TradeMark EastAfrica, Uganda Country Programme-Kampala, Course View Towers, 3rd Floor (Plot 21), Kitante Road, P. O. Box 25820, Kampala-Uganda. Deadline: November 15, 2013.
CONSULTANCIES Uganda National Roads Authority invites proposals for consultancy services for design and construction supervision of Apak Bridge on Lira-Abim-Kotido Road Contact: Procurement and Disposal Unit, Uganda National Roads Authority, Kampala, Uganda., Plot 5, Lourdel Road, Nakasero, Ground Floor, Room No. GA3, +256 312 233100. Deadline: Nov 15, 2013.
RWANDA
CONSULTANCIES Ministry of Public Service and Labor (MIFOTRA) is pleased to invite all interested and experienced an international consultant firm to submit their expression of interest for the consultancy services: CONSULTANCY SERVICES TO DEVELOP AND IMPLEMENT RESULTS BASED MANAGEMENT IN RWANDA PUBLIC SERVICE; Deadline:Thursday 7th November 2013 at 10:00 hours prompt to the same address below:MIFOTRA, Procurement Office, 2nd Floor Room no 39.or on e-mail: procurement_officer@mifotra.gov.rw/ procurement_officer1@mifotra.gov.rw
TENDERS The Rwanda Biomedical Centre/Medical Procurement and Production Division (RBC/MPPD invites qualified bidders to submit bids for the Supply and Delivery of 1,292,688 Long Lasting Insecticide Treated Mosquito Nets divided into three lots as follows: - Lot 1 : 239,167 rectangular long lasting mosquito nets ; - Lot 2 : 993,521 conical long lasting mosquito nets ; - Lot 3: 60,000 extra-large conical long lasting mosquito nets. Enquiries regarding this tender may be addressed to Head of Production, RBC/MPPD, Gasabo District, Kigali City, P.O. Box 640 – Kigali – Rwanda. Tel. (+250) 252 580156/580157 – Fax. 0250 252 582725; Email: camerwa@gmail.com no less than 21 days prior the day of submission and opening. Well printed bids, properly bound and presented in two copies, one of which is the original, must reach the Secretary to the Head of Production at the address mentioned below not later than 14/11/ 2013 at 09:00 AM, local time (07:00 GMT).
The Energy and Water Utilities Regulatory Authority wishes to recruit a Member of the Council of the Energy and Water Utilities Regularatory Authority-Consumer Consultative Council (EWURA CCC). Contact: The Chairman, EWURA CC Nomination Committee, Minisrty of Water, Ubungo Maji, along Morogoro Road, Opposite TANESCO Hq, P. O. Box 9153, Dar es Salaam. Deadline: Nov 8, 2013.
RURA now invites proposals from eligible Individual Consultants to provide the following consulting services: CONSULTANCY TO PREPARE TRAINING MANUAL AND PROVIDE A FIVE DAYS IN HOUSE TRAINING ON MEDIA AND NEW MEDIA REGULATIONS TO RURA STAFF. 7. Enquiries regarding this tender may be addressed to the Procurement Office of RURA, P.O. Box 7289 Kigali, Tel. (+250) 252 584562, Fax. (+250) 252 584563. Deadline: 5/12/2013.
The Rwanda Biomedical Centre/Medical Procurement and Production Division (RBC/MPPD invites qualified bidders to submit bids for the supply of SUPPLY AND DELIVERY OF LABORATORY REAGENTS AND CONSUMABLES. Enquiries regarding this tender may be addressed to Head of Division, RBC/MPPD, Gasabo District, Kigali City, P.O. Box 640 - Kigali - Rwanda. Tel. (+250) 252 580156/580157 - Fax. 0250 252 582725; Email: camerwa@gmail.com no less than 21 days prior the day of submission and opening. Well printed bids, properly bound and presented in two (2) copies and one (1) softcopy of price schedule in 2 CDs recordable, and one original must reach the reception of MPPD at the address mentioned above Not later than 14th November 2013 at 9 am o'clock (7 am GMT).
Source: East African Business Week
Source: East African Business Week
Source: East African Business Week
JOBS
27
NEWS/TENDERS
East African Business Week I November 4-10, 2013
TANZ ANIA PORTS AUTH ORITY
Tz starts e-school BY PATRICK KISEMBO DAR ES SALAAM, Tanzania-- The government last week launched an advanced, solar-powered e-Learning centre at the Kambangwa Secondary School in Dar es Salaam, Tanzania. The centre which will be using a Samsung Solar Power Generator designed specifically for rural areas and regions with erratic power supply was officially - launched was done last week by the Minister for Communication, Science and Technology Prof. Makame Mbarawa in Dar es Salaaam. The eLearning Centre which has been sponsored by Vodacom Tanzania and Samsung includes Note PCs, a smart e-board and a multifunction printer. Vodacom Tanzania has undertaken to sponsor the connectivity for the Centre. “This program will make sure that all our secondary schools get connected to the rest of the world. I urge all the targeted schools to make well use of this opportunity,” said Prof. Mbarawa.
Yessaya Mwakifulefule, Head of Vodacom Foundation said that the initiative is in line with the telecommunications service provider’s goal of supporting Tanzanian efforts to achieve the Millennium Development goals (MDGs). “Education is key to the development of any society; that is why we are committed to ensure many students get access to learning facilities. We want to support such developments to schools countrywide,” Mwakifulefule said. He said his company its Vodacom Foundation, has in the past been involved in various initiatives aimed at supporting the country’s education sector. The initiatives, according to him include, among others, the community power initiative, a project launched recently to supply solar power to rural schools located near network sites. The excess power generated from the sites is being supplied to the nearby schools. Mwakifulefule explained further that the Foundation has also invested heavily in
building and equipping classrooms, providing stationary and other learning materials to schools countrywide. For his part, the Samsung Electronics Tanzania Managing Director, Dongha Jang, said the Samsung solar power generator, launched in March this year, provides easy and renewable power at an affordable price to schools and community centres across Africa. The generator can provide power for up to eight years before batteries require a refresh. “By harnessing the sun’s energy, we are able to provide communities in Africa with an extremely affordable power source, characterized by an environmentally-friendly footprint,” he said. Mr. Jang said the generator, along with the Samsung Solar Powered Internet School and Samsung Solar Powered Health Centre, are solutions designed specifically for African conditions. “They form part of Samsung’s ‘Built for Africa’ campaign, which focuses on bringing advanced solutions that meet Africa’s unique needs,” he noted.
Uganda National Roads Authority P lot 5 L ou rdel R oad, N aka sero P . O . B O X 2 8 4 8 7 , K ampala, U ganda
ADDENDUM No. 1 TO TH E BID NOTICE CIV IL WORK S F OR UPG RADING OF : ACH OL IBUR- MUSING O, G UL U- ACH OL IBUR, OL WIY O- G UL U, MUSIITA- L UMINO/ BUSIA- MAJ ANJ I, K ANONI- SSEMBABUL E- V IL L A- MARIA ON TH E NATIONAL ROAD NETWORK Procurement Ref No: UNRA/ WORK S/ 2013- 14 / 00013/ 01/ 01- 05 Reference is made to Bid Notice that was published in The Daily Monitor on 26 September 2013, The New Vision on 26 September 2013, The East African 5-11 September 2013, dgMarket, UNRA W ebsite and PPDA W ebsite. The following alterations and/ or corrections are made: Item 7 The former tex t: The bidder is advised to visit and ex amine the site of works, its surroundings and obtain all information that may be necessary for preparing the bid and entering into contract for construction of the work s. The cost of visiting the site shall be at the bidder’s, own expense. In addition, there shall be a Pre- bid meeting at 10:00hrs on 17th October, 2013 at the address below at 13 (e). Shall read as new tex t: The bidder is advised to visit and ex amine the site of works, its surroundings ‘and obtain all information that may be necessary for preparing the bid and entering into contract for construction of the work s. The cost of visiting the site shall be at the bidder’ s own ex pense. The C lient shall org aniz e a Pre-bid Meeting for the different packages at
the Date, Time and Place, indicated under Subclause 7.4 of Bid Data Sheet of the respective bidding document. The Pre-bid Meetings shall be preceded by a Pre-bid Site Inspection which shall be held at Date, Time and Place, indicated in Sub-clause 7.7 of Bid Data Sheet of the bidding document for the respective pack ag es. Nonattendance at the pre- bid site visit and meeting org aniz ed by the C lient shall not constitute disqualification of a bidder. All other terms and conditions of the Bid Notice remain unchanged. The above alterations and / or corrections to the Bid Notice are integral part of the Bid Notice. A copy of this Addendum is also available at the address indicated in 13( a) of Bid Notice. Ex ecutive Director
TENDER INV ITATION Date: 1st November, 2013 1. This Invitation for Bids follows the General Procurement Notice for this Project which appeared in the Daily News and the Guardian Newspapers dated 18 th J une 2012. 2. Tanzania Ports Authority (TPA has set aside funds for the procurement during the financial year 2012/2013. It is intended that part of the proceeds of the fund will be used to cover elig ible payment under the contract for which this invitation for bid is issued. 3. TPA now invites sealed tenders from eligible, reputable and competent tenderers for supply of Drugs and Medical supplies as shown in the following six (6 ) lots:
S.No L ot 1 L ot 2 Lot 3 L ot 4 L ot 5 L ot 6
Description Anti (Hypertensive, Bacterial, Diarrheal, Asthmatics) Drugs Anti (Inflammatory, spasmodic, fungal, viral) Vitamins and Minerals Anti (Malarial, Colvulsants, Emetics) Tranquilizers Diag nostics Ag ents Ear/Eye Nasal, Laxatives, Rectal, Analgesics Anti (Diabetics, Acids, Helmintics) Antiseptics, Sex Hormones, Fluids Medical Supplies
4. All interested eligible tenderers may obtain further information from the office of the PMU Manager, Tanzania Ports Authority, Dar es Salaam and inspect tendering documents at the same office. 5. Bidders are allowed to q uote all or any item in the lots. 6. A complete set of tendering documents may be obtained by interested tenderers from the office of Director of Procurement and Supply Room no. 48, on the 2nd floor of the TPA Headquarters building from 09.00 a.m. to 04.00 p.m. Local time Monday to Friday excluding public holidays. AND upon payment of a non-refundable fee of Tshs 100,000/ or its equivalent in freely convertible currency. Payment may be in cash or bank er’ s cheq ue. 7. All bids in one original plus one copy properly filled in, and enclosed in plain envelopes clearly marked“ Tender for Supply of Drugs and Medical supplies” and addressed to: The Secretary, Central Tender Board, Tanzania Ports Authority, P.O. Box 9184, DAR ES SAL AAM, TANZ ANIA Or deposited in the Tender Box which is in Room No. 48 on the 2nd Floor of TPA Headquarters building, Bandari roadbefore or on 3rd December, 2013 at 10.00a.m.local time. Bids will be opened promptly thereafter in public and in presence of Bidders’ representatives who choose to attend in the opening at the TPA conference Room no 39 on the 2nd floor of headquarters buildings. 8. Tenders will close on 3rd December, 2013 at 10.00a.m. Local time and will be opened publicly soon thereafter in TPA conference Room No. 39 on the 2nd floor. Bidders or their Representatives who wish to witness the opening are welcome to attend. 9. All tenders must be accompanied by a tender security of Tshs. 5,000,000.00 in the form of an unconditional Bank Guarantee. Tenders not accompanied by a tender security will be rejected. 10. Late Bids, portion of Bids, Electronic Bids, not received, Bids not opened andnot read out in public at the bid opening ceremony shall not be accepted for evaluation irrespective of the circumstances. Note that Tanz ania Ports Authority is not oblig ed to accept the lowest or any tender. Office of the Director General, Tanzania Ports Authority, P.O. Box 9184, DAR ES SALAAM, TANZ ANIA. Tel No: 255 022 2134712 Fax No: 255 022 2124575 E-mail dps tanzaniaports.com
28
NEWS
East African Business Week I November 4-10, 2013
NIC Bank starts mobile service BY HUMPHREY LILOBA
nNAIROBI, Kenya--NIC Bank has introduced a regional mobile application that will enable customers enjoy speedier transactions on handheld devices. Dubbed NIC NOW, the Mobile App offers a convergence of solutions delivering both banking services and lifestyle information on mobile devices. “The phenomenal growth in mobile
phone use has created a whole new customer channel. Mobile transactions have grown rapidly in the last five years making it necessary for banks to develop innovative solutions that tap into the advantages brought about by mobile technology”, said John Gachora –NIC Bank, Group MD. The Mobile App. is available for all NIC Customers with Android, IOS, and Blackberry including all Windows Smart phones and only those subscribed will access the app. features.
Extending use to other smartphones available in the market, the application will also be availed to smartphone users who will receive an activation key and start pin to access the service. “The application is much faster and more convenient for all mobile banking transactions since it offers more informative and fun features alike from news, cinema guides, verses from the bible and quran” “With mobile services & sales rapidly growing we expect that more than half
TH E UNITED REPUBL IC OF TANZ ANIA MINISTRY OF EDUCATION AND V OCATIONAL TRAINING
RE :CHANGE IN DELIVERY ADDRESS AND BID NUMBER FOR ADVERTISED REQUEST FOR EXPRESSION OF INTEREST FOR CONSULTANCY TO GUIDE COMPLIANCE TO ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK (ESMF) FOR INFRASTRUCTURE DEVELOPMENT IN PUBLIC UNIVERSITIES UNDER SCIENCE AND TECHNOLOGY, HIGHER EDUCATION PROGRAM (STHEP) BID NO: ME024/2012-13/HQ/C/14 AND CONSULTANCY SERVICES FOR INDEPENDENT REVIEW OF THE FIRST PHASE OF SCIENCE AND TECHNOLOGY HIGHER EDUCATION PROJECT (STHEP) BID NO: ME-024/2012-13/HQ/C/11
of everyday transactions will be through the phone. This adoption to new age banking, innovative and personalized multi-channel banking experience on ATM, Internet, and now the Mobile app and social media interface will help drive NIC Bank’s new media strategy,” Gachora added. The bank has been running on the popular (*488#) USSD Mobile Banking platform that it looks to phase out in favour of Elma- an application developed locally that is tied to a particular network and gives an increased level of interactivity with bank accounts and speedier transactions. “The increase in smartphone usage has prompted the Bank to move towards the provision of an application that is not dependent on their mobile service provider. The concept of convenience banking has since shifted from the physical branches to the mobile phone, which is now an integral part of our lives”, concluded Mr. Gachora. The new platform is powered by Elma a banking solution from Local software solutions provider-
Craft Silicon. Elma, unlike other mobile money transfer services currently in the market is not tied to a particular network and gives an increased level of interactivity with bank accounts. Key features of the application include heightened speed of transactions through the App-.e.g. MPESA takes less than 60 seconds and RTGS also takes only a few minutes compared to functions on the USSD platform- and the ability to function on a cross section of smart phones. The NIC NOW Mobile App is available for all NIC customers with Android, IOS, Blackberry and all Windows Smartphones with subscribers getting access to account balances, making M-pesa payments and bill payment. The bank will also extend this service to other Smartphone’s available in the market, where users will receive an activation key and start pin to access the service. Customers can access the App from the respective App.stores on their phones in easy steps and after activation have access to all the NIC NOW App features.
Ministry of E ducation and V ocational Training do hereby inform all the potential consultants that the ex pressions of Interests mentioned above and advertised on E ast African Business W eek of 28 th O ctober- 03rdNovember, 2013 and Daily News of 26 th O ctober 2013 are to be delivered to; SECRETARY MINISTERIAL TENDER BOARD MINISTRY OF EDUCATION & V OCATIONAL TRAINING P.O. BOX 9121, DAR ES SAL AAM Phy sical address Magogoni,UTS Building,Room No. 02 Instead of delivery to The Permanent S ecretary and, that the Bid Number for C onsultancy S ervices for Independence R eview of the F irst Phase of S cience and Technolog y H ig her E ducation Project(S TH E P) should read BID NO : ME - 024 / 2012- 13/ H Q / C / 10 instead of BID NO : ME - 024 / 2012- 13/ H Q / C / 11.All other information should remain the same as earlier advertised. TH E PERMANENT SECRETARY MINISTRY OF EDUCATION & V OCATIONAL TRAINING P.O.BOX 9121 DAR ES SAL AAM
BETTER SERVICES: NIC customers will enjoy speedier transactions.
29
SPECIAL REPORT
East African Business Week I November 4-10, 2013
Revenue cops help in ivory war BY IMMACULATE WANYENZE
M
any a time, poachers mercilessly kill elephants so they can sell their ivory tusks. Today, it is thought that most of the ivory is illegally smuggled to China and Thailand to make chop-sticks, jewellery, ornaments, hair accessories and many other items. Some of these items are what Doukoure Sekou and Toure Abdu, both Guinea nationals could have looked forward to. However, luck was not on their side as they were caught red-handed with smuggled ivory in their suitcases recently at Entebbe International Airport. Following a tip off from the loaders at the loading belt over suspicious bags that were unusually heavy, the loaders notified a shift supervisor in Aviation Security Service (AVSEC) who was joined by police and enforcement officers here. The suspects had bagged 116 kilogrammes of ivory. On the world market, a kilogramme of ivory is worth $3,000. So the 116kgs would amount to a loss of about Ush904, 800,000 for Uganda‘s tourism industry. These two gentlemen had checked in with Ethiopian Airlines flight 281 on Saturday12 th. They were reportedly heading to their final destination of Lome in Togo. They picked four bags from the belt and brought them down for scanning. A scan through the RAPscan and the URA SMART check clearly showed it was ivory. “We physically verified the bags and confirmed it was ivory both raw and worked,” an officer present at the scene said. For now, according to Julius Mponooka Nkwasire, URA’s Manager Enforcement, this case has been handed over to the Uganda Wildlife Authority (UWA) for court conviction. This would include; forfeiting their goods and also prison sentence as may be determined by the judge or magistrate. Meanwhile, according to the Endangered Species Act passed in 1973, the law makes it illegal to import, trade or sell elephant ivory. Also the Elephant Conservative Act, authorises the United States government to take action against any illegal African ivory importation. In 1989, the law completely banned the importation and sale of African ivory, except for ivory that had been purchased prior to the passage of the law. An estimated 100 African elephants are killed each day by poachers seeking ivory. Asked about URA’s concern in the illegal ivory trade, James Kisaale, the Assistant Commissioner Enforcement, said it is the Customs mandate to protect society through enforcement of international trade restrictions and prohibitions to which Uganda is part. “Customs controls and facilitates international trade. Trading in ivory is a restricted commodity unless cleared by Uganda Wildlife Authority,” he said, So far URA, has had a number of interceptions of smuggled ivory that stem from way back in 2011 when an American citizen, Tekle Marta was caught with seven pieces of bangles made of polished ivory. Kisaale said other culprits caught originate from China, Malaysia, Liberia and Nepal. Some of them disguise the ivory in all forms of packaging like; sculptures, salt shakers and charcoal. The latest intercepted haul involved 832 pieces of ivory, implying that 416 elephants were killed. Most of these items are exported by air through Entebbe so that they
THREATENED: Poachers hack at the elephants’ heads to get at the tusks and shoot the calves first in order to prevent the herd scattering away.
Al-Sabaab links to poaching
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INTERCEPTED: This particular consignment was nabbed last year in Hong Kong by Chinese police packed in a container from Tanzania. can quickly reach their destinations. With all this trickery from smugglers, URA has vigorously fought such unscrupulous behaviour. It has strengthened information sharing with other Law Enforcement Agencies especially the Police and Uganda Wildlife Authority. A scanner known as
‘Smart Check’ has been installed at Entebbe Airport to aid in non- intrusive inspection of cargo. Immaculate Wanyenze works in Corporate Affairs with the URA
he illicit ivory trade funds “up to 40% of the cost of al-Shabaab’s army of 5,000 people, according to Andrea Crosta, a director of Elephant Action League, and co-author of a 2011 report into the links between poaching and terror groups. The spotlight on al-Shabaab’s funding is more intense than ever after the most deadly terror attack on Kenyan soil since the 1998 US embassy bombings in Nairobi which killed more than 200 people. The Westgate siege has propelled the affiliate of al-Qa’ida to international attention. The poaching of elephants for their tusks has driven the animal in some countries – such as Sierra Leone and Senegal – to the point of extinction. More than 30,000 elephants were slaughtered in Africa last year alone, 382 of them in Kenya according to London’s Independent newspaper. In less than 30 years, Kenya’s elephant population has plunged from 167,000 to only 35,000. Armed with AK-47 machine guns, and with bows and arrows that are sometimes poisoned, poachers slip unnoticed past the few rangers who patrol the conservancies and track the elephants. Often, they target the calves first in the knowledge that the older elephants will bunch up to try to protect them. Then they kill the others. It takes several bullets to bring down such sizeable mammals, and the elephants usually die after immense suffering. The poachers hack off most of the elephant’s head to get at the tusks.
30
FEATURE
East African Business Week I November 4-10 , 2013
EXCITING: Hudson cautions that due to high production costs, it will take several years before Tanzania can fully reap from its natural gas resources.
Gas boss tells Tz hard truths
BY KENAN KALAGHO
nDAR ES SALAAM, Tanzania--Oil and gas firms in the country will have to invest more money to make sure that they realize the dream of producing oil sometime in the early or mid-2020’s. Speaking in Dar es salaam last week the President of BG East Africa, Derek Hudson said Tanzania was endowed with huge gas resources, but there are considerable costs involved in producing it due to the fact that the country’s gas resources are found in very deep waters, between 1500 metres and 3000 mts. Hudson said the cost of developing the gas industry in such a situation becomes very expensive unlike in Trinidad and Tobago where gas is found in water depths of not more than 200 metres. He said this difference in depth means added costs and may affect the country’s industrialization pace. “Industrialization that will be taking place in Tanzania will be very different from that of Trinidad and Tobago due to gas water depth differences and this creates a lot of expenses in extraction processes” Hudson said. He said the landscape of the bottom of the Sea in Tanzania was also too complex and this also adds to the challenge of developing oil and gas in the country. He was however optimistic to point of that between 2020 and 2021 BG East Africa will be able to produce gas in Tanzania. “Next year will be a busy year period for us as we plan to carry out engineering construction up to 2017 from where we will run a few tests years later and realize the dream of having full production between 2020 and 2021,” Hudson said. He said it is important for the government to make sure that the country’s revenue generated from gas resources is used to the best optimum by transforming the lives of the majority citizens through mass beneficial development projects. “Tanzania vast gas natural resources should aim at revamping education, hospitals as well as roads sectors that could benefit the majority citizens,” Hudson said. He said the coun-
try is able to transform its economy using oil and gas resources by learning from the past mistakes about minerals of other countries. He said natural resources like gas can only be a curse for a country if it is not managed properly, saying the gas policies in place instituted by the government should make sure that revenues generated from such resources benefits the majority. According to the recent third reconciliation report for Tanzania Extractive Industry Transparency Initiative (Teiti) published in June this year, almost all the major mining companies in the country were making profits, but only one pays corporate tax courtesy of the poorly negotiated Mining Development Agreements (MDAs). The report shows that Tanzania was still being haunted by poor contracts it entered into with multinationals about 15 years ago and the lengthy time has given the firms an excuse not to pay tax in accordance with their earnings. The report was revealed after a total of 30 mining companies underwent a research that covered the firms’ financial statements for the year ending June 2011. Hudson however said the Tanzania government has been very keen in recent years in drafting contract sharing agreements on oil and gas in order to make sure that all the parties involved, including foreign mining firms, the government and citizens benefit from these natural resources. He said there was need for Tanzania to do things properly with what it has before other countries can take that opportunity. “We have heard other countries like Mozambique saying they have more gas than Tanzania and BG is not in Mozambique, but Tanzania,” Hudson said. He said Tanzania needed to move forward to make sure that gas plants are developed. He said Tanzania was the foundation for the future of BG Company in East Africa and that by the time the gas construction is fully accomplished BG will be able to employ 2000 workers. Tanzania President Jakaya Kikwete said last week during the launch of auctioning gas blocks in Dar es Salaam that the government was working in the best interests of the na-
BIG FINDS: Tanzania is foundation for the future of BG Company in East Africa.
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“Next year will be a busy year period for us as we plan to carry out engineering construction up to 2017 from where we will run a few tests years later and realize the dream of having full production between 2020 and 2021,” Hudson said.
tion. These efforts should allow Tanzanian citizens to have a stake in managing the oil and gas resources and making sure that the country attains more shares than foreign investors. Kikwete said in the new production sharing formula, the government will be in a position to get the gas and oil shares ranging between 65% and 75% where as investors might obtain shares ranging between 25% and 35%. Oil and gas exploration in Tanzania started in 1952 with British Petroleum (BP) and Shell International Oil Company along the coastal basins and the islands of Zanzibar, Pemba and Mafia.
31
SPORTS
East African Business Week I November 4-10, 2013
TV good for basketball BY BAZ WAISWA
nKAMPALA, UGANDA-It is
not going to be the first attempt to have local basketball on television, Channel 44 and NBS Tv has been going at it for some time albeit showing recorded games. When news landed that the ongoing Airtel atio al as et all eague playoffs are going to be shown li e o S a ray o o e stood out clearly. The broadcaster this season penned a similar contract with the reigning champions Riham Warriors which saw some of their Friday games televised. Basketball as a growing sport with insufficient sponsorship needs this kind of partnership to propel to great audiences. While unveiling the partnership, Federation of Uganda Basketball Association (FUBA) president Ambrose Tashobya, said the intention for the deal was to push basketball to many people who cannot come to venues where the game is played. Tashobya is optimistic a long term working partnership can be forged after this season now that they have seen the impact television can bring to the game of basketball. According to the memorandum of understanding signed between the two parties, si tee games ill e e lu sively televised on Friday and Su day e e i gs e Friday
game will be played and shown live at 7:30pm while t e Su day game will be at 5pm. Only the men games ill e o screen. Television and sports are synonymous in modern soiety a d t e omi g o S is timely considering that the federation has put in loads of effort to promote and endear the game to the fans who are most the youth. o ull t is o , S as secured the financial backing of Crown Beverages Pepsi’s local bottling company under their franchise brand who will be the official broadcast partner. The soft drink makers i e ted a as a e o Ush45m ($17,842). This money will go a long way in facilitating the production of the live games which is quiet an e e si e venture. Joe Kigozi the head of corporate affairs at the television station believes taking basketball to a wider audience will bring more partnerships and sponsorship to the game especially at club level. As a station they have promised quality broadcast.
for the FIFA Ballon d’Or and for the FIFA World Coach of the Year for Men’s Football awards have been unveiled. The final decisions will be made by the captains and head coaches of the men’s national teams as well as by international media representatives selected by France Football. The winners of all of the awards will be revealed at the FIFA Ballon d’Or as part of a televised show at the Zurich Kongresshaus on 13 January 2014, during which the FIFA FIFPro World XI, the FIFA Puskás Award – for the most beautiful goal of the year – the
FIFA Presidential Award and the FIFA Fair Play Award will also be presented. Men’s shortlists for the FIFA Ballon d’Or 2013 Gareth Bale (Wales), Edinson Cavani (Uruguay), Cristiano Ronaldo (Portugal), Radamel Falcao (Colombia), Eden Hazard (Belgium), Zlatan ra imo i S ede , dr s iesta S ai , ili a m erma y , o ert e a do s i ola d , io el essi rge ti a , omas ller erma y , a uel euer erma y , eymar ra zil , esut zil erma y , Andrea Pirlo (Italy), Franck i ry Fra e , r e o
ENGLISH FOOTBALL – PREMIER LEAGUE Sat, 09 Nov
Chelsea vs. West Brom
16h30
SS5/SS5N
Sat, 09 Nov
Liverpool vs. Fulham
16h50
Select2
Sat, 09 Nov
Norwich City vs. West Ham United
19h00
SS3/SS3N
Sun, 10 Nov
Tottenham vs. Newcastle United
13h25
Maximo
Sun, 10 Nov
Sunderland vs. Manchester City
16h00
SS3/SS3N
Sun, 10 Nov
Manchester United vs. Arsenal
18h00
SS3HD/SS3
Sun, 10 Nov
Swansea City vs. Stoke City
18h00
SS7/SS7N
SPANISH FOOTBALL – LA LIGA Fri, 08 Nov
Osasuna vs. Almeria
20h55
SS7/SS7N
Sat, 09 Nov
Real Madrid vs. Real Sociedad
16h25
SS7/SS7N
Sat, 09 Nov
Athletic Bilbao vs. Levante
20h55
SS5/SS5N
Sun, 10 Nov
Villareal vs. Atletico Madrid
19h55
SS5HD/SS5
Sun, 10 Nov
Real Betis vs. Barcelona
21h55
SS3N/Maximo
ITALIAN SERIE A Sat, 09 Nov
Catania vs. Udinese
18h55
SS7/SS7N
Sat, 09 Nov
Inter vs. Livorno
21h40
SS7/SS7N
Sun, 10 Nov
Genoa vs. Verona
13h25
Maximo360
Sun, 10 Nov
Chievo vs. Milan
15h55
SS5/SS5N
Sun, 10 Nov
Roma vs. Sassulo
15h55
SS7/SS7N
Sun, 10 Nov
Juventus vs. Napoli
21h40
SS7/SS7N
GERMAN FOOTBALL – BUNDESLIGA
AIRTIME: FUBA is seeking to bring the ANBL games to the sitting room by airing LIVE playoff games
Shortlists for FIFA Ballon d’Or 2013 out nZURICH - The candidates
LIVE TV GAMES
e et erla ds , astia S ei steiger erma y , uis Su rez ruguay , iago Sil a razil , aya our (Côte d’Ivoire), Robin Van ersie et erla ds , a i S ai Coach of the Year for Men’s Football 2013: Carlo Ancelotti (Italy/ aris Sai t ermai F eal adrid F , a ael e tez S ai elsea F SS a oli , to io o te taly Juventus), Vicente Del Bosque S ai S ai atio al team , Sir le Ferguso S otla d a ester ited F ormer coach), Jupp Heynckes (Germa y F ayer e
ormer oa , rge lo (Germany/Borussia Dortmu d , os ouri o or tugal eal adrid F elsea F , uiz Feli e S olari (Brazil/Brazil national team), Arsène Wenger (France/Arsenal FC).
Fri, 08 Nov
Hannover vs. E.Braunschweig
21h00
Select2
Sat, 09 Nov
Bayern Munich vs. Augsburg
16h25
SS7/SS7N
Sun, 10 Nov
Mainz vs. Eintracht Frankfurt
16h25
SS6HD/SS6
Sun, 10 Nov
Freiburg vs. Stuttgart
18h25
SS6HD/SS6
UEFA CHAMPIONS LEAGUE Tue,05 Nov
Juventus vs. Real Madrid
Tue,05 Nov
Real Sociedad vs. Man. United
Tue,05 Nov
Manchester City vs. CSKA Moscow
Tue,05 Nov
Plzen vs. Bayern Munich
Tue,05 Nov
PSG vs. Anderlecht
Tue,05 Nov
Olympiacos vs. Benfica
Wed,06 Nov
Zenit St. Petersburg vs. Porto
Wed,06 Nov
Barcelona vs. Milan
Wed 06 Nov
Borussia Dortmund vs. Arsenal
Wed,06 Nov
Chelsea vs. Schalke
Wed,06 Nov
Ajax vs. Celtic
Wed,06 Nov
Napoli vs. Marseille
21h00
SS3/SS3N
21h40
SS5HD/SS5
21h40
SS6HD/SS6
21h40
SS7/SS7N
21h40
SS8
21h15
Maximo
18h55
SS5/SS5N
21h00
Select1
21h40
SS5/SS5N
21h40
SS6/Maximo2
21h40
SS7/SS7N
21h40
SS8
UEFA EUROPA LEAGUE Thu,07 Nov
Kuban Krasnodar vs. Swansea
18h55
SS3/SS3N
Thu,07 Nov
Rubin Kazan vs. Wigan Athletic
18h55
SS5/SS5N
Thu,07 Nov
St. Gallen vs. Valencia
19h55
SS7/SS7N
Thu,07 Nov
Dnipro vs. Pacos de Ferreira
19h30
Maximo
Thu,07 Nov
Rapid Wien vs. Genk
22h00
Select
Thu,07 Nov
Tottenham Hotspur vs. Sheriff
22h00
SS2HDA
Thu,07 Nov
Estoril vs. Freiburg
22h00
SS7/SS7N
Thu,07 Nov
Guimares vs. Real Betis
22h00
Maximo
AFRICAN LEAGUES Sun, 03 Nov
Zam:K.Mordern Stars vs. F.Rangers
12h45
SS9
Sun, 03 Nov
Kenya: City Stars vs. Muhoroni Youth
13h00
SS9E/Select1
Sun, 03 Nov
Kenya: KCB vs. Gor Mahia
15h25
SS9E
Mon, 04 Nov
Ghana: Liberty vs. Inter Allies
17h00
SS9/Select1
Sat, 09 Nov
Zambia: F.Rangers vs. G.Buffaloes
12h45
Select1
Sat, 09 Nov
Zimbabwe: Mbada Cup Semi-final 1
14h45
SS9
Sat, 09 Nov
Zambia: Zesco United vs. Zanaco
14h55
Select1
Sat, 09 Nov
Ghana: Medeama vs. Aduana
17h00
SS9/Select1
Sun, 10 Nov
Zambia: Roan Utd vs. K. Mine Police
12h45
Select1
32
n BUSINESS KNOW-HOW
n SPORT
FUBA to air games live on local TV
East African Business Week I November 4-10, 2013
Tips for writing good proposals
PAGE 31
PAGE 15
World Bank gives Tz $100m
BY PATRICK KISEMBO
nDAR ES SALAAM, TANZANIA – The World Bank and other partners will provide both technical and financial support to the government of Tanzania worth $100million (Tsh.160.70billion). The fund will go towards the improvement of the quality of education through the Big Results Now (BRN) initiatives. The revelation was made last week by the World Bank Director of Human Development Group in Africa Region, Ritva Reinikka when speakIMPRESSIVE: President Kikwete opening a tea plant that will boost the country’s export capacity ing to journalists in Dar es Salaam. She said the fund will be “We have been discussing quality of education espe2018,” she said. Reinikka said spent on human development with the government officials cially the quality of teachers the World Bank funding will initiatives in the country in the and we want to support the in primary and secondary be made through a plan called education and social sectors. government to improve the schools from next year to ‘Programme for Results’ to
Burundi raises $1.7b BY RENOVAT NIMBONA nBUJUMBURA, Burundi-Burundi mobilized $1.75 billion during the second sectorbased conference on the implementation of the Strategic Framework for Growth and Poverty Reduction (PRSP II). The conference was held in Bujumbura, Burundi, from 28 to 30th October 2013. Burundi has been searching for 48% of the total commitments made at the Geneva Conference on the PRSP II, in October 2012. Donors had pledged $2.6 billion. During the conference, other organisations including the World Bank, the Internatio nal Monetary Fund (IMF), the European Union (EU), the United Nations Development Programme, the African Development Bank (AfDB) and the President of the Burundi and United Nations Peacebuilding committed to make the second sector-based conference on Burundi a success. The previous conference that was held in Geneva mobilized $ 2.6 billion. In the opening remarks, the Burundi Head of State, HE
President Pierre Nkurunziza Pierre Nkurunziza, said despite remarkable progress there are major challenges. Challenges such as the delay in the judgments by the courts, cases of political intolerance, persistent cases of corruption in some areas, very high rates of population growth, the energy deficit and the low quality of health care. He said: “By effectively fighting against extreme poverty, the core of all other evils, we can promote governance and strengthen the rule of law,” he added. Partners demonstrated their synergy and overall consistency. They decided on the allocation
of resources promised in Geneva and other potential funds for specific projects and programs in the sectors they promised to support. The PRSP II is structured around four main areas: Reinforcement of the rule of law, Consolidation of good governance and promotion of gender equality, Transformation of the Burundian economy into sustained growth for job creation, Improvement of accessibility and quality of basic social services and strengthening the basic social protection as well as the management of space and environment for sustainable development. The implementation of the PRSP I resulted in macroeconomic stability and accessibility to basic social services, especially health and education. However, the general pattern of growth remained insufficient to significantly reduce poverty. It is in this perspective that Burundi has initiated the development of the second Strategic Framework for Growth and Fight against Poverty - PRSP II, which places the issue of growth and job creation at the center of future poverty reduction programs.
they are supposed to. He said the study discovered that teachers were spending an average of two hours in classes as opposed to the required five hours and 20 minutes. Joshi said the situation was even worse in urban areas. Through the five-year education support, the World Bank has provided $42 million to Zanzibar and the project would end next month. “The Bank also provided $150 million for the Secondary Education Development Programme (SEDP) and the government contributed $300 million. The project will end in 2017,”he said. Mr. Joshi said the World Bank contributed $100 million to science and technology in higher education project. The will end in February, 2014.
support the government’s BRN initiative in the education sector. She said through the same fund, the World Bank together with the government, will work together to improve teachers skills and infrastructure development. Reinikka said: “You have to note that while teachers are crucial elements for quality education, they are not teaching as required. That is why we want to improve their skills.” Supporting the World Bank Director of Human Development Group in Africa Region’s statement, the World Bank’s Lead Education Specialist for Africa Human Development, Arun Joshi, said a service delivery indicator survey conducted in 2010 revealed that teachers perform less than
Kenya improves online clearing of goods system BY HUMPHREY LILOBA nNAIROBI, KENYA-The movement of goods and services from entry points and exit points in Kenya is expected to improve significantly following the rolling out of an electronic single window clearance system. The system, is expected to facilitate international trade in Kenya by reducing delays and lowering costs associated with clearance of goods at Kenyan orders. The National Electronic Single Window System will maintain the vital controls and collection of levies, fees duties and taxes on imports and exports. The Kenya Trade Network Agency General Manager for Operations, Amos Wangora said the system is projected to have cargo clearance time at the port of Mombasa reduced to a maximum of three days. “The country aims to cut cargo clearance times at the port of Mombasa to a maximum of three days from the current seven to 14 days and at Jomo Kenyatta International Airport (JKIA) to one day,” he said. The single window system brings together various cargo clearance processes under one roof, reducing the
time taken on paperwork and licenses. Wangora said the trial phase has collapsed services of seven of the 24 permit issuing institutions in the country and it is expected to house all of them as the system is rolled out progressively. “The reason for this is to manage the scope of the project and use the few as a pilot to ensure the system is working optimally before rolling it out to the rest of the government agencies,” he said. The project will cover Mombasa and Lamu sea ports, airports, land ports and border posts. The new system works in a paperless environment as all customs assessments and clearance are done online.
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The single window system brings together various cargo clearance processes under one roof, reducing the time taken on paperwork and licenses.
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