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VOL. 9, ISSUE 14 NOVEMBER 11 - 17, 2013

KSH40; TZSH1000; USH1,500; RWF600; BIF 1,500; 5BIRR,SS£ 2.5

Tz gas valued at $430bn

BY LEONARD MAGOMBA

nDAR ES SALAAM, Tanzania – East Africa’s coastal waters are expected to hold up to 441 trillion cubic feet of natural gas as Tanzania alone estimated to have a natural gas reserves worth $430 billion.

A US Geological Survey conducted recently revealed that Tanzania and Mozambique take the lead in terms of provable reserves. The Minister for Energy and Minerals, George Simbachawene told East African Business Week last week the government is preparing what it calls ‘gas economy’ strategy

that will ensure it gains the most from extracting of huge gas deposits. According to Minister Simbachawene, the UK based British Gas group announced early this year that it would invest about $15 billion in Tanzania within the next ten years. This is more than half the country’s current

SADC- IGLR SUMMIT

Kigali produce auction on

TO PAGE 2

TALKS: (R- L) President Museveni of Uganda ,Zuma of South Africa flanked by SADC Chair Joyce Banda with Namibia’s Pohamba during a SADC-IGLR Summit in South Africa.

Tullow troubles ease after deal BY HUMPHREY LILOBA nNAIROBI, Kenya--The Kenyan government has reached a deal between Tullow Oil plc and Northern Kenya communities for the resumption of oil exploration activities in the region. The company announced that it would resume operations this weekend at Blocks 10BB and Block 13T after two weeks of suspension following tension in the region where the locals protested against what they termed discrimination in employment. According to Kenya’s Cabinet Sec-

TO PAGE 2

Uganda seeks new land law BY SAMUEL NABWIISO

BY AGNES BATETA nKIGALI, Rwanda—Fifty metric tonnes of maize were sold during the first trade auction held at the East Africa Exchange (EAX) in the Kigali City tower office last week. Maize was sold at $389 per metric tonne from the Kampala Uganda based Savannah commodities Ltd, X Warehouse giving out the winner of the auction from Top Service Enterprises Ltd, a company that operates in Rwanda but mainly in Musanze found in the Northern Province as Ladislas Mwitende. This is meant to create good business between the two countries, Rwanda and Uganda which will help farmers and other traders develop more trading links. This auction took EAX one step further towards its ambition to create One African Market, which will be for

annual Gross Domestic Product (GDP) Simbachawene told Members of the Parliament in Dodoma last week. Regarding the uses of gas revenues, Simbachawene said the Parliament would decide

retary in the Ministry of Energy and Petroleum Davis Chirchir, the government and Tullow Oil reached a mutual agreement and signed a Memorandum of Understanding (MoU) in what will provide and lasting and sustainable way forward in resolving the security issues and community grievances. According to the MOU, Tullow Oil is required to open a field office in the region in the next one month to handle grassroot issues between the company and the local community. Previously, Tullow Oil has only had TO PAGE 2

Ethiopia textiles exports hit $29m nADDIS ABABA, Ethiopia--Ethiopia exported $ 29 million worth of textiles during the first quarter of the fiscal year 2013/14 that began on July 8, 2013, Addis Fortune reported. The first quarter export earning was over 50 percent higher than the $9 million made in the corresponding period of last year, but the exports are still likely to fall short of Government target of $500 million for the entire fiscal year, if the trend continues. In 2012-13, Ethiopian textile sector exports fetched $ 99 million, much below the Government TO PAGE 2

nKAMPALA, Uganda-- The government is to come up with new bill which aims at regulating the management of government land both in Uganda and property owned by Uganda abroad. Addressing a news conference in Kampala last week, Uganda’s Minister of Lands Housing and Urban Development, Daudi Migereko said the new bill will create an enabling environment for the development and promotion for land usage and property management in Uganda. “The Uganda Land Commission Bill shall efficiently and effectively regulate the managing of government land by fulfilling the gaps which the current Uganda land commission have been facing with, when it comes to the management of Government lands,” he said. He said the new law will make Uganda Lands Commission a statutory commission like other commissions in the country. This will empower the Commission now to recruits staff remunerate them like other commissions and this will solve the problem of understaffing which has been hindering the current operations. According to Migereko the new Bill which the cabinet is about to draft and send to a parliamentary committee will guide the sale or disposal of all government land including land under the government cooperate bodies like the Uganda Holding Properties Limited. The absence of strong laws which regulates the functionalities of the Uganda Land Commission has caused the government to lose land to private investors, due to little or soft oversight. Migereko said by setting up the Uganda Land Commission as a statutory commission it will be more effective in holding and managing government land. But also provide a strong basis for systematically TO PAGE 2

NEWS

East African Business Week I November 11-17, 2013

Tullow troubles ease after exploration deal FROM PAGE 1

an office in Nairobi with centralized operations whereby all administration, finance and human relations issues were handled from the Kenyan capital. The new arrangement will see the company interact more with the local community and involve them in matters related to employment and general operations. Among other things, the MoU also stipulates that Tullow will disclose all tenders and job opportunities to the locals and to prioritize them when employing and issuing tenders. “We have reached an agreement between the company and the local community. Issues around employment and tenders, which led to the bad blood will now be resolved amicably. Towards this end, Tullow Oil will open a local office in northern Kenya,” said Chirchir. To cushion the sorrounding communities from the current extreme poverty, the company announced the doubling of its welfare fund from the current $1 million to $2 million, effective January next year. Tullow Oil currently contribute immensely to the Turkana County economy. Apart from employing over 2,100 employees in the County alone the company rents over 1,000 vehicles. “It is our hope that the company will keep the promise. We reached an agreement initially but some crooked officials went ahead to dish the jobs and tenders to their cronies. We really hope

One of the oil wells in Kenya.FILE PHOTO this will change with this new way of doing things,” said Turkana South Constituency Member of Parliament James Lomenen who was questioned by police for leading the protest against Tullow. “The suspension of operations announced last week allowed all parties to discuss and understand the complex operating environment in Northern Kenya and commit to taking the necessary action to allow exploration operations to resume,” said Deputy General Manager

Sid Black. “As Tullow’s exploration campaign progresses and gathers pace, the number of local employees and local companies involved in our work will continue to grow,” Black said. Tullow Oil is so far the most successful oil exploration company in Kenya having made crucial finds in the recent times. The company is at the heart of Kenya’s sustained efforts to join the oil producing countries.

Tanzania gas valued at $430bn FROM PAGE 1 on how the country uses gas revenues through a Sovereign Wealth Fund. He said in Parliament that the August House would prioritise where the fund should concentrate in terms of development projects. According to him, the government also has plans to give Tanzania Petroleum Development Corporation (TPDC) two wells in the Indian Ocean so that it also fully gets involved in exploration for gas and oil.

The deputy minister was responding to a question from Special Seats Member of Parliament (MP), Mrs Rita Mlaki (CCM). Mrs Mlaki wanted to know the amount of gas that is ready to be drilled and how investors and the government would share revenues and if there are plans to buy some shares from the international companies involved in the exploration. In his response, Mr Simbachawene said it was already estimated that 43.1 trillion cubic feet at Songo

Songo and Mnazi Bay has an estimated 8 trillion cubic feet and other blocks in the Indian Ocean have 35.1 trillion cubic feet.He said the arrangement in the production sharing agreements is that the government retains 65% and the investor remains with 35%. The production sharing agreements that the government, through TPDC, entered with the investors provide for the government to get involved by a 20% investment in developing of the projects when gas is reached.

The Deputy Minister said the projects which the government would get involved to use the gas resource is in production of power, fertilizers and cement. “There is also a piped natural gas project with a pilot one in Dar es Salaam expected to serve 800 vehicles and 200 houses,” he said. Tanzania drew international attention this year by almost trebling appraisal of its natural gas reserves, with multinational firms now eyeing investing in the lucrative natural gas sector.

Ethiopia textiles exports hit $29m

FROM PAGE 1

target of $ 357 million. The Ethiopian textile sector comprises of 110 companies, and the export target for each individual company for the current year is yet to be determined, according to the Ethiopian Textile Industry Development Institute (TIDI). At present, the Ethiopian textile sector is operating at 50 percent capacity, and in order to achieve the government target, the production capacity would have to be raised, feel industry experts. The export target set by the government is higher than the capacity of the textile sector, according to Fassil Taddesse, president of the Ethiopian Textile and Garment Manufactur-

ers’ Association. Citing the problems faced by the Ethiopian textile industry, Taddesse said regular power interruptions, costly import of equipments, and shortage of inputs deter the development of the sector. During the first quarter, 58 new medium textile factories went operational. In addition, large textile companies like Etur Textile Plc and Angels Addis are also likely to operate at higher capacities during the remaining part of the year. The Growth and Transformation Plan (GTP) of the Ethiopian Government aims at earning textile export revenue of $1 billion by 2014-15 and creating 40,000 new jobs in the process.

Kigali produce auction starts FROM PAGE 1 the benefits of farmers plus other business people, and it has still given more importance to regional commodity trading. “EAX’s successful first auction is a powerful demonstration of tremendous value that can be unlocked through this laid platform powered by NASQAD”, Tony O.Elumelu, the AFEX chairman said. Elumelu revealed that this was meant to boost competition, integrating the East Africa agricultural market and also bringing in clear improvements to the lives of farmers in the region,” Elumelu. EAX has a plan of changing the way small farmers and traders do business within the East African region and beyond, and here they plan on creating global market access to farmers which will help them develop even more. Rwanda’s biggest population depends mainly on agriculture and therefore to help farmers gain more from their produce, this is why EAX is needed. “Here buyers and sellers will be able to meet and close business deals which will help them improve their social welfare”, as said by EAX Chief Executive Officer Paul Kukubo. Local traders were requested to go for training on NASQAD OMX electronic trading platform and about 50 local and regional traders have been trained by EAX on the new technology. EAX is owned by African Exchange Holdings (AFEX) which was formed by Tony Elumelu’s Heirs Holdings (http://www.heirsholdings.com), Berggruen Holdings and 50 Ventures to develop a network of commodity exchanges across Africa to transform trade dynamics and ensure higher incomes for the rural poor. EAX, the first AFEX exchange is the first regional commodities exchange established to link smallholder farmers with agricultural and financial markets, secure competitive prices for their products and facilitate access to financing opportunities. AFEX Chairman Tony O. Elumelu, CON, said, “East Africa Exchange’s successful first auction is a powerful demonstration of the tremendous value that can be unlocked through this platform. EAX will continue to advance the competitiveness and integration of East Africa’s agricultural markets, as well as bringing tangible improvements to the lives of the region’s farmers. We are looking to replicate this impact in many countries across Africa.” With a brand new trading platform, powered by NASDAQ, the East Africa Exchange (EAX) has big plans to transform the way small farmers and traders do business within the East African region and beyond. It will provide global market access to local farmers through proven technology. In the days prior to this first auction, local traders were required to visit EAX offices and undergo training on the NASDAQ OMX electronic trading platform. Over the past four months, the EAX has trained over 50 local and regional traders on the new technology. The exchange will be a marketplace offering price transparency and wider market access to farmers from across East Africa and beyond.

Uganda seeks new land law, modernises system FROM PAGE 1

how government land is best used countrywide. He said these moves are part of the modernizing being carried out in Uganda’s land system. “We gave been having problems with the manual system of handling land titles but when we

introduced the computerized land titles everything is moving well. Ugandans are now getting their land titles with in short period of time and this has reduced the corruption in the land registry we hope the Land commission Bill will do the same,” he said.

A tractor clearing land for settlement. FILE PHOTO

NEWS

East African Business Week I November 11- 17, 2013

BRIEFLY Big projects push Kenya imports nNAIROBI Central Bank of Kenya (CBK) analysts attribute the rise in imports to increased shipping in of machinery and transport equipment into the East Africa’s biggest economy. Total value of Kenya’s imports increased by $130 million in the year leading to July, according to the analysts. During the period, the share of machinery and transport equipment to total imports increased from 26% to 30%, while import values increased by 717 million dollars to 5 billion dollars, which was a 100 percent rise.

Tanzania for husk power generators nDAR ES SALAAM Tanzania set to become the first country in Africa to have rice-husks fired power generators in a Tsh17 billion project co-financed by the British government and Kilombero Plantations Limited (KPL). According to Tanzania Daily News, this is set to increase KPL output by irrigating sugarcane plantations. The UK’s Secretary of State, International Department, Ms Justine Greening said the project aims at addressing poor infrastructure facing the KPL largest rice producer in East Africa.

Rwanda tea sales drop slightly nKIGALI Rwanda is expected to earn about $60 million from teas sales this year. According to the National Agricultural Export Development Board, this is down from the $80 million recorded the previous year. Tea production in Rwanda, Africa’s sixth largest producer, is expected to rise to 28,600 metric tons this year from 22,563 tons last year. Sources say higher volumes at the weekly Mombasa auction has pushed down prices.

Uchumi to cross-list BY EMMA ONYANGO nKAMPALA, Uganda--– Kenyan supermarket chain, Uchumi is set to cross-list in Uganda this week following approval of its application by Uganda’s Capital Markets Authority (CMA) and Uganda Securities Exchange (USE). “We have now received approval from the regulators to list Uchumi shares in Uganda and we want to thank them for expediting the approval process. We will be listing 265,426,614 ordinary Uchumi shares of per value Ksh5.00 each shares at the Uganda Securities Exchange on November 13th, 2013,” said Dr. Jonathan Ciano, the Chief Executive Officer Uchumi said. Ciano said the cross-listing of Uchumi shares will present an opportunity for Ugandan investors to own a piece of the retail chain. Uchumi Supermarket is cross listed on the Rwanda Securities Exchange - where its shares began trading on October 14, 2013. The company also plans to cross list on the Dar es Salaam Stock Exchange in the coming months. “The crosslistings are in line with the resolution passed by the Group’s shareholders to offer the company’s shares to investor in East Africa,” Ciano said in a statement last week. ANOTHER COUNTER: After Kampala, the firm moves onto Dar es Salaam.

nKIGALI, Rwanda-Over 300 guests attended Transform Africa Summit’s Cultural Gala where Rwanda last week launched its digital archive of cultural and historical information called Rwandapedia to tell the story of the country from its own perspective. The African Development Bank supported the realisation of the platform. The online archive is a free, openly accessible platform on Rwanda’s post genocide development including Home Grown Solutions, sustainable development programs derived from the ways Rwandans historically dealt with various challenges. Foreign Affairs Minister, Louise Mushikiwabo, said “It is a means by which Rwandans can share the story of ourselves, our country, and especially our reconstruction journey, our development. “It is done in a very transparent way, a credible way and it is accessible to all. It solves the problem of inconsistent and patchy record keeping during the post-genocide critical development period,” she said.

Maendeleo in successful bid at Dar market

BY LEONARD MAGOMBA

nDAR ES SALAAM, Tanzania--The Maendeleo Bank, the first startup business to attempt to raise capital via DSE second window - Enterprise Growth Market (EGM), saw its equity oversubscribed by 1.2 million shares. Thanks for the successful completion of its initial public offer (IPO). The IPO oversubscription has been described as a testimony catalyst that start-up companies can now raise the required capital through the alternative window at the Dar es Salaam Stock Exchange (DSE). The Premier, Mizengo Pinda, said when launching the EGM that 9.2 million shares were sold during the IPO against 8.0 million the company had put on offer. “Allow me to congratulate the Maendeleo Bank for taking the initiative and for leading the way and enabling the bank to have a successful IPO,” Mr Pinda said amid cheers. The PM said the financial sector borrowed a leaf from London’s Alternative Investment Market (AIMS) which nNAIROBI – The top price of Kenya’s benchmark coffee at auc- has enabled multinational corporations to raise capital tion on Tuesday rose to $315 per for expansion through the bourse. “This way will also enable the ordinary Tanzanians to 50-kg bag from $309 at the last own stake in big companies and participate in big busisale two weeks ago, the Nairobi nesses and indeed trickle down effects will be felt in our Coffee Exchange (NCE) said. Kenya is a small coffee producer economy,” Pinda said. The UK Secretary of State, International Developbut its speciality coffee is famous ment, Ms Justine Greening, said it is the capital markets for its quality and is in demand that mobilise longterm finance for the public and private from roasters who blend it with sectors and also drive improvement in social welfares. other beans. “And they (stock markets) give people, through ownGrade AA fetched $315-$251 per ing shares, a stake in economic growth,” Ms Greening bag versus $309-$164 at the last said prior to the launching of the EGM. She added: sale two weeks ago. Grade AB “(DSE), when properly developed has the potential of sold at $228-$124 per bag, compared with $185-$107 previously. transforming the Tanzanian economy.”

Kenyan coffee goes up to $315

New portal for Rwanda

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BRIEFLY Burundi in talks with Zambia on trade nBUJUMBURA Zambian Foreign Affairs Minister Wylbur Simuusa has called for increased trade between Zambia and Burundi to boost the two countries’ economies. Opening the fourth session of the Zambia-Burundi Joint Permanent Commission of Cooperation in Bujumbura in Burundi last week, Simuusa said the governments of Zambia and Burundi were in a hurry to accelerate economic development and deliver quality services to the electorate.

Kenyan matatu owners bear down on culprits nNAIROBI The Kenya Matatu Welfare Association(an association of public service transporters) has backed the government in cancelling licenses of UmoInner Sacco, whose bus was involved in a train crash accident at Mutindwa, Nairobi and left at least 12 people dead and scores injured on October 30. The Association Chairman Dickson Mbugua, said that the move was aimed at bringing sanity in the sector that has been blamed for the rising road carnage in Kenya.

Fastjet flights to Mbeya get underway DAR ES SALAAM Fastjet, the low cost airline based at Dar es Salaam says its new routes are proving popular. Ed Winter, the Fastjet CEO said last week, “We’ve had a huge demand from customers to add flights to Mbeya to our schedule and we have worked closely with the Tanzanian government, the local civil aviation authority and Songwe Airport authorities to make this new route possible.” Recently Songwe Airport’s infrastructure and runway were rehabilitated to comply fully with international aviation standards.”

NEWS

East African Business Week I November 11 - 17, 2013

Tanzania needs $1bn for major port repairs BY LEONARD MAGOMBA nDAR ES SALAAM, Tanzania-Tanzania needs over $1 billion (Tsh1.6 trillion) to give a facelift of the main port.. This is in a bid to increase efficiency and boost cargo volume handling. The funding is needed for the strengthening and deepening of seven berths at the Dar Salaam port. Tanzania Ports Authority (TPA) said after the completion of the project, the country’s principal port will be able to accommodate big ships than what it does now. “We will be able to accommodate big ships in the same mode as such of the Durban port, the South Africa’s main cargo and container port and the largest harbor placed on major international shipping routes,” TPA’s Director General, Mr. Madeni Kipande said. Kipande told East African Business Week last week in Dar es Salaam in the wake of the tour of the United Kingdom International Development Secretary, Ms Justine Greening, that the execution of the project will solve the emerging challenges posed by growing trade demands in the region. He said the estimation of the costs for the project implementations are contained in the feasibility study conducted by a UK-based firm, TradeMark East Africa. “Trade growth in the neighbouring countries largely served by the Dar port has been one of the challenges that pose for an urgency to deepen berths 1-7 to increase efficiency and reduce costs of cargo handling.” He also appealed to the visiting UK International Development Secretary for technical, capacity building and financial assistance that would increase trade facilitations in terms of speed and efficiency at the country’s main port. The TradeMark East Africa, Strategic Ports Advisor, Tanzania,

NEEDS A FACELIFT: Growing demand means Dar port must upgrade.

18 million tons

Cargo handling by 2015

12 million tons Current handling

5 million tons

Proposed transit load

Anthony Hughes told East African Business Week that the increasing efficiency of the Dar port and related infrastructures like railways and roads is a matter of paramount importance for economic development. He was presenting a paper on the transport lab recommendations across the Central Corridor aimed to increase transit capacity by 5 million tons by the year 2015 contained in the programme

of Big Results Now (BRN), the efforts to transition the country from low to middle-income economy. According to the transport lab recommendations, the ports and railways modernization will increase cargo handling to 18 million tons in 2015 from the current 12.1 million tons. The Port of Dar es Salaam, which services landlocked countries including Rwanda, Burundi, Uganda, Malawi, Zambia and Zimbabwe, handled about 12.1 million metric tons in 2012. TPA expects to handle 13 million tons in 2013. South Africa’s Durban port is the biggest on African’s east coast.

Koreans in Ethiopian industrial complex n ADDIS ABABA, Ethiopia--A South Korean company last week announced plans to build an industrial zone in Ethiopia. In a meeting with Ethiopia State Minister of Foreign Affairs, Dewano Kedir, Kwang Yem Lee, the Chairman of KOS Company Limited, said they want to set up in Gelan near Addis Ababa. According to an official statement, Kedir welcomed the delegation noting that Ethiopia and South Korea had a strong and entrenched links which encourage cooperation in economic development. Kedir said Ethiopia had cheap labour, low-cost electricity, good infrastructure and abundant land. These would contribute to the success of the project which, he said, reinforced the cooperation of South Korea and Ethiopia. Lee said his company intended to work in the provision of materials for the construction industry and aimed to build an industrial zone in Gelan near Addis Ababa. The project, he said, would benefit Ethiopia in terms of employment and import substitution. It would also help support regional integration linking the Horn countries through its exports. Meanwhile according to state media, President Mulatu Teshome assured the South Koreans support for investors to be engaged in the industry sector. He said the interest of the Korean company to invest in Ethiopia would strengthen the existing people to people ties between the two countries, Mulatu said. According to latest figures the trade volume between the two countries stands at $132.58 million as of 2012. But the balance is in South Korea’s favour with exports for $107.92 million.

Ugandan utility awarded for financial reporting BY PAUL TENTENA nKAMPALA, Uganda--Electricity distributor, Umeme was last week awarded the top financial reporting prize for exhibiting high standards of financial reporting in compliance with the international financial reporting standards. Evaluators of the Third Financial Reporting Awards 2013 said Umeme scored excellently in all aspects of the evaluation criteria. They also noted that firm’s financial report provided comprehensive information on the company’s business and financial objects. Umeme, which recently listed on Uganda’s Securities Exchange, was also awarded for their accurate analysis of the external environment and superb risk management at the awards gala that was held at the Kampala Serena Hotel over the weekend.

The Fire Awards evaluators, as they are fondly known added that Umeme’s report showed a definite overview of its performance and commitment to ensuring environmental sustainability, a well-articulated corporate governance model and absolute compliance with International Financial Reporting Standards. Apart from the report of the year award, Umeme scooped the Sustainability Reporting Award, the Best Listed Entity Award and the Consumer and Industrial Products category overall award. The awards were organized under the theme Financial Reporting: Value Addition through Transparency. The chairman of the Awards Committee CPA Frederick Kibbedi said the theme was coined from the need to enhance accountability, transparency and integrity in compliance with appropriate Financial Reporting Standards. He said in achieving the country’s Vision 2040, there is need to consider how organizations strategy, governance and perfor-

mance lead to the creation of value in the context of dynamic environment. Uganda’s Finance Minister Maria Kiwanuka called upon organizations to embrace proper financial reporting as a means of raising funds through various avenues. “Funding and accountability are indispensable. Proposal writing must be backed by evidence of transparent, well documented previous expenditure,” Kiwanuka said. Kiwanuka urged more organizations to submit their reports for evaluation, in a combined effort towards re-awakening and promoting the principles of accountability for the good of Uganda. “I appeal to those organizations that are still nursing lukewarm attitudes towards financial reporting to embrace the mantle. I’m reliably informed that a free report is given at the end of the exercise which guides the entity’s individual growth and the development of Uganda,” she said.

NEWS

East African Business Week I November 11 - 17, 2013

Tanzania revenue collector appeals

BRIEFLY Norway’s Statoil appoints Tz manager nDAR ES SALAAM Norway’s Statoil announced last week it has appointed Øystein Michelsen as its new Tanzania Country Manager within the firm’s Development and Production International, Sub-Saharan Africa business unit. He will take up his new position on January 1, at Statoil’s office in Dar es Salaam. Currently, executive vice president of Development and Production Norway, Michelsen came to Statoil in 2007 when it merged with Norsk Hydro. Statoil is a leading player in Tanzania oil.

Coca Cola emerges top with MTN nJO’BURG African Business magazine, once again held its survey for excellence in African business, by recognising the individuals and companies that are driving Africa’s rapidly transforming economy, and creating new economic opportunities for citizens and communities all over the continent. Brand Africa awarded MTN and Coca Cola the prize for the best brands in Africa. Africa’s most valuable brands are still dominated by South African firms.

Explosives maker seals regional deals nJO’BURG Opencast mining explosives manufacturer BME, is finding ready markets in the African mining industry and is planning a steady expansion into several countries, including Tanzania, Kenya, Ethiopia and Mozambique. Already, more than half of BME’s turnover comes from contracts in African countries outside its home base in South Africa, where it is a major player in explosives technology for surface and underground mines, notes the company.

BY ANDREW ZABLON

WAITING: During many rallies across Kenya the issue of unemployment is always highlighted. FILE PHOTO.

Kenya promises one million jobs by 2016 nNAIROBI, Kenya--The Ministry of Industrialization and Enterprise Development is putting in place measures that will help create one million jobs annually within the next three years, the Principal Secretary Dr. Wilson Songa said last week. According to the state broadcaster, KBC, Dr Songa said the jobs will be created mainly in the leather, agro-processing, furniture, metal fabrication and other trades in the informal sector adding that the Ministry is currently laying the foundation to support this, which should be achieved by the year 2016. “We need to create an enabling environment and we are working very closely with stakeholders to ensure that this happens and we should be able to put in place concrete plans on enhanced job creation within the next one year,” Dr. Songa said. The PS encouraged college leavers not to eye white-collar jobs only but also seriously consider

9,000,000

Employed in small business

20%

Contribution to GDP

Revolving fund For low interest loans self employment especially in the informal sector. He said the Micro and Small Enterprise Authority (MSEA), the youngest State Corporation in the Ministry has demonstrated that great potential and talents exist particularly with our youth. Dr. Songa the Micro & Small Enterprise (MSE) is a key sector which provides over 80% of Kenya’s labour force, employs about 9 million people and contributes 20 per cent to Kenya’s Gross Domestic Product (GDP). The government will fully support the sector to create more jobs by creating MSE Fund to back this

crucial subsector and also encourage strong linkages with support institutions such as Kenya Industrial Research & Development Institute (KIRDI), Kenya Technical Training Institute (KITTI), Kenya Bureau of Standards (KEBS), Kenya Industrial Property Institute (KIPI) and Kenya Anti-Counterfeit Service (KENAS) to help the youth create wealth. He said, “Everyone cannot be absorbed in formal employment. That is why we call upon those who graduate from learning institutions to apply the entrepreneurial knowledge they have learnt for self-employment. The informal sector offers a perfect opportunity for them and I would like to tell them that they can always count on our support.” Dr. Songa said the new Micro and Small Enterprises Act will help create a million jobs annually in the informal sector. This will be done through creation of a revolving Fund from where entrepreneurs can borrow money at low interest.

n MWANZA, Tanzania-The Tanzania Revenue Authority (TRA) is appealing against two judgments made by the Tax Revenue Appeals Tribunal that ruled in favour of a Russian uranium mining company, JSC Atomredmetzoloto (ARMZ). The two appeals, Tax Appeal Nos. 16 and 17 of 2013 originate from taxation following acquisitions made by the Russian uranium mining company at Mkuju River in Southern Tanzania. According to a voluminous appeal document made available to East African Business Week, TRA is demanding income tax to the tune of $196 million ( about Tsh313.6 billion) and $9.8 million (Tsh15.7 billion) being stamp duty. The genesis of the appeal is that in December, 2010 ARMZ entered into a scheme Implementation Agreement (SIA) with Mantra Resources Limited of Australia and acquired all shares in Mantra. It’s this transfer and acquisitions that attracted the stamp duty of $9.8 million of which the respondent company ARMZ appealed against in Tax Appeal No. 27 of 2011 against the Appellant (TRA). However, in its decision on May 15, 2013 the Tax Revenue Appeal body of Tanzania ruled in favour of the respondent company (ARMZ). In the second Tax Appeal No. 17 of 2013, TRA demanded $196 million from ARMZ being income tax following such acquisitions, but ARMZ decided to dispute the TRA decision in the Tanzania Tax Revenue Board (Tax Appeal No.26 of 2011).

Rotary International advises youth BY BAZ WAISWA

GGOD SPEECH: Junior minister, Nekesa Oundo, with Burton.

nKAMPALA, Uganda - Dr. Ron Burton the President of Rotary International last week advised youngsters to embrace the Rotary spirit and contribute to the wellbeing of their communities. He was launching a hand washing campaign in Namuwongo, a Kampala slum. This was on the sidelines of an African Youth Conference that involved discussions on investing in social services sectors like health and education so that the region has healthier and productive population. Burton said the African population

is made of younger people who need much of these social services, but most countries are still lagging behind when it comes to providing them. “Many children in Africa are dying of illness like polio malaria and HIV /AIDs. Some of these diseases are preventable, but the challenge is that some countries lack medical infrastructures, laboratories and personnel’s to easy the treatment of such diseases,” he said. He said although some countries have tried to fight HIV /AIDS, polio is still a big problem in Africa and if not fought comprehensively this will affect the younger generation. “It is critically important that Uganda remains vigilant and continues to im-

munize the children against polio. If we don’t do the job we are at the risk of reintroducing and re-infecting other people with the disease,” Burton said. Emmanuel Kantogole the Governor of the Rotary District that includes Uganda and Tanzania said, “To date the Rotary clubs have raised more than $1.2 billion and committed countless voluntary hours to fight the disease, Rotary has provided grants totaling to $4.38million to support polio eradication activities in Uganda and we shall not stop until we realize that the disease has been Eradicated completely.” Several young people from across the continent attended the conference which also highlighted leadership skills.

EDITORIAL

East African Business Week I November 11 - 17, 2013

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Strong regional banking sector vital

he East African banking sector has an essential role to play with respect to the allocation of funds to the most profitable investment opportunities. Along with the stock or securities market, banks are the most likelly source for investment funds. Banks gather tiny amounts of money from hundreds of people, and turn it in to loans for businesses, families and sometimes governments. These loans provide the cash needed to start or expand businesses, buy homes, cars, and pay for schooling. It is therefore vital that the regional banking sector is strong and trusted to do the needful and not beset by such dangerous aspects such as fraud. Last week, a leading financial services firm reported in a new survey that financial institutions in East Africa may have lost $30 million to financial crime in 2012. Deloitte Forensic Services even suggested that many banks under-reported their losses in order not shake public confidence. Banks are financial intermediaries that by nature add cost to the allocation of capital. Thus in order for banks to survive in a market economy they need to provide added benefits. It is difficult to compete with the debt securities market, if a bank loan is of a size where the fixed costs of accessing debt markets become negligible. However, securities markets are not always sufficiently liquid and some, especially small and medium, enterprises cannot cover their liquidity needs via securities markets owing to significant fixed costs of access. An additional benefit of bank-based finance relates to the intrinsic nature of the banking business: some projects cannot be financed directly by the market on account of significant information asymmetries between the borrowers and potential lenders. Banks can bridge this gap thanks to their comparative advantages in the assessment and monitoring of investment projects, which contributes to overcoming information asymmetries. Both market and bank-based financial systems have their own comparative advantages. For some industries at certain times of their development, market-based financing is advantageous. For example, financing through stock markets is optimal for industries where there are continuous technological advances and where there is little consensus on how firms should be managed. The stock market checks whether the manager’s view of the firm’s production is a sensible one. For other industries, bank-based financing is preferable. This holds in particular for industries which face strong information asymmetries. Financing through financial intermediaries is an effective solution to adverse selection and moral hazard problems that exist between lenders and borrowers. Banks in particular have developed expertise to distinguish between good and bad borrowers. Economies that have both well-developed banking sectors and capital markets thus have an advantage. In countries with a highly developed financial system, a greater share of investment is allocated to relatively fast growing sectors. The financial system is important in reallocating capital and thus providing the basis for the continuous restructuring of the economy that is needed to support growth. A shaky banking sector tends not to do this well hence central bank vigilance.

TANTALISING: The gemstone requires articifial heat treatment to get that distinct bluish colour.

FILE PHOTO.

Tanzania sits on riches

nMWANZA, Tanzania--Why are you poor? This is the one-million-dollar question an international dealer in Tanzanite gemstones and diamonds posed to Tanzanians last week. The question is haunting Tanzanian politicians, decision makers and the local social media is considering the question an insult to Tanzanians. American billionaire, Morris Gad, Chief Executive Officer of Diamonds International was in Tanzania at Mererani, Arusha. This is the only known place in the world where the precious Tanzanite gemstone is found. The mineral was named by Tiffany & Company after Tanzania. Because it is relatively soft, tanzanite is most commonly set in necklaces and earrings Gad, also world renowned philanthropist said he doesn’t know why Tanzanians especially those living around the Tanzanite mining area are poor. However he didn’t get an answer, despite the fact that during his tour at Mererani he was accompanied by Tanzania’s deputy Minister for Energy and Minerals, Steven Masele. Gad was surprised to come across relatively poor Tanzanians so close to the Tanzanite mining site. This is in spite of the fact that his company, Diamonds International is recording high profits from the Tanzanite trade that comes from the same Mererani.

Morris Gad’s company, Diamonds International is one of the world’s

“

Government acquired 50% of top miner, TanzaniteOne

largest retailers of diamonds and other gemstones. It is headquartered in New York City, but maintains retail locations across the Caribbean, Mexico and Alaska. Gad has donated his personal funds to a number of good causes across the world. Diamonds International also supports a number of charitable locations that serve the communities in which its stores are located. Early this year the Tanzania government acquired a 50% stake in TanzaniteOne Mining Limited. This was a direct result of the Tanzania Mining Act, 2010 that underpins higher returns for locals from gemstone mining. There was some resistance from foreign mining companies and TanzaniteOne in particular until the government last year threatened not to renew the firm’s license until it had complied with the Act.

The law required jewelry companies to be owned 50% by Tanzanians. Consequently, the government directed that TanzaniteOne must surrender a 50% stake to the State Mining Company (STAMICO) as a condition to renew its license. The Tanzania Mining Act specifies that gemstone mining would be carried out exclusively by Tanzanians, except when it requires heavy investment and sophisticated technology. The Act, however, also provides an opportunity for existing firms to list on the Dar es Salaam Stock Exchange (DSE) and cede 50% of their shares to Tanzanians in order to have their gemstone mining licenses renewed. TanzaniteOne is the worlds leading Tanzanite company owning the mining license for Block C - a significant portion of the only known Tanzanite producing resource, located at the foothills of Mt Kilimanjaro, northern Tanzania. The company recovers nearly two million carats per year of Tanzanite from its Mererani mine. It was formed in 2004 to buy African miner, Afgem. In 2011, TanzaniteOne produced 2.4 carats that earned the company $24 million and operates in four key areas; mining, trading, marketing and cutting/ polishing. Since 2011, TanzaniteOne has been a fully owned subsidiary of Richland Resources.

LETTERS & PERSPECTIVE East African Business Week I November 11- 17, 2013

Lets hope lofty targets are fully met

PERSPECTIVE

Image of the week

Water crisis looms for all

Editor, The bid to reduce the days for clearance of goods at Mombasa port from an average seven and 14 to just three days is impressive. It is refreshing to see how Kenyan President Uhuru Kenyatta is dead set on pushing for port reforms. However, it is also important to note that we have heard such lofty promises and targets before. And plenty of times we customers have been disappointed. There is presently a fierce rivalry between Mombasa and Dar ports to attract business. Facilities are being improved. One hopes this momentum is maintained so that the region can reap from better port efficiencies. BUMPY: Expectant mothers taking part in a stomach painting competition at a hospital in Chongqing Municipality, southwest China. The event saw 30 pregnant women and their husbands competing for the best picture on their baby bumps.

Farouk Kasule Kampala, Uganda

Rwanda’s top ranking no accident Editor, You can accuse Rwanda’s President Paul Kagame of many things. But when something important has to be done, he will push very hard for it. That is what you call political will. Once again, Rwanda ranks far ahead of its fellow EAC members in the annual Doing Business survey.

Being landlocked and having an unsafe border with the eastern DRC means Rwanda carries some heavy baggage which may scare away invstors. So Rwanda makes it up by taking such things as the Doing Business survey very seriously. Every every year, it tries to improve on the relevant factors highlighted in the report. Any visitor to the country

will find no trouble recognising a country determined to modernise as quickly as possible. In a world where attracting quality investment is becoming far more competitive, Rwanda’s top ranking is no accident. This is a country that is leaving nothing to chance in a bid to be relevant.

As a concerned citizen of the East African Community, I think it is within my rights to ask whether the EAC is breaking up again? And I am sure there are plenty of other people across the region asking the same question. The current news reports do not offer much encouragement. On one hand, we are told everything is as it should be. But then on

Editor,

the other, there are angry complaints about member countries being left out. What then is the true picture? Our regional leaders have spent long hours of broadcasting airtime and masses of paper telling us what a great thing economic integration is! Now you wonder if there is a change of heart. I hope all is cleared up this November.

I support the introduction of the railway levy. Regional economic growth is apparently booming, but at the expense of our main highways. We need a good railway infrastructure to ease pressure off the roads and save some money in maintenance costs. Also a market of over 100 million without a rail network is a joke. However, the government must make sure that there is no temptation to shift this money to highway repairs when times are financially bad. The trucking lobby is influential and may find ways to dodge paying for something that eventually will take business away from them.

Worried East African Kampala Uganda

Isiaiah Oduor Nairobi, Kenya

Deus Mukama Kabale, Uganda

Is the EA Community breaking up again? Editor,

Rail levy is good idea

Single currency cannot work without single vision Editor, I am quoting verbatim an interesting piece of logic I came across recently. ‘Asked once how he would account for the prosperity of the Scandinavian nations despite their high tax rates, the

economist Milton Friedman said it was because of their common identity and homogenous culture had enabled consensus to emerge. ‘Free markets, he pointed out, were important precisely because they allowed people without a common identity to

The views expressed on this page are not the views held by the anagement of East African Business week

work together, even if they hated one another. ‘Such a process of integration has worked well in Europe so far, but in order to lock in the gains and connections, institutions need to follow where markets have already gone. These institutions must

n Write your letters to The Editor East African Business Week, P.O.Box 71771 Kampala Uganda

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be limited to providing public goods that are in the common interest, even as they avoid unnecessary interventions in the autonomous lives of the union’s national units.’ Tom Njiru Ruiru Kenya

nBUDAPEST, Hungary--About a half of the global population could be facing water shortages by 2030 when demand would exceed water supply by 40%, says United Nations Secretary General Ban Ki-Moon. Opening the Water Summit in Budapest, Hungary recently, the UN chief warned against unsustainable use of water resources. “Water is wasted and poorly used by all sectors in all countries. That means all sectors in all countries must cooperate for sustainable solutions. We must use what we have more equitably and wisely. By 2030 nearly half the global population could be facing water scarcity. Demand could outstrip supply by 40%,” Ban said. Governments cannot cope with the problem on their own, without the “full engagement” of all other players, including business, Ban underlined. Agriculture remains the largest consumer of freshwater. “There is growing urgency to reconcile its demands with the needs of domestic and industrial uses, especially energy production,” he said. He advised industrial giants as well as small farmers to learn to get “more crop per drop” by using advanced irrigation technologies and focusing on “climate-resilient” rather than water intensive crops (like rice). Climate change adds to the risk of water shortages in large parts of the world and that is another challenge that nations should cooperate on. “We must make sure that water remains a catalyst for cooperation not conflict among communities and countries,” Ban said. Global warming means not only more droughts, but also more floods. “That is why we must do everything we can to keep global temperature rise to below 2 degrees Celsius above pre-industrial levels,” he said. Back in 2000, world leaders adopted Millennium Development Goals (MDG). Among them was to halve the proportion of the population without sustainable access to safe drinking water and basic sanitation by 2015. He said, “While the MDG target for providing access to improved water sources has been reached, 780 million people lack this basic necessity. Roughly 80% of global wastewater from human settlements or industrial sources is discharged untreated. About one-third of people on the planet drink water that is dangerous for health, while even a larger part of population lack adequate sanitation, according to the UN chief. “Some 2.5 billion people lack the dignity and health offered by access to a safe, decent toilet and protection from untreated waste. One billion people practice open defecation,” he said. In his words, investment in sanitation is a downpayment on a sustainable future, with economists estimating that every dollar spent can bring a fivefold return. According to the United Nations, sub-Saharan Africa has the largest number of water-stressed countries of any region.

“

Demand could outstrip supply by 40% in 2030

United Nations

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BRIEFLY US-owned Marriott to buy Protea Hotels nJO’BURG Marriott International, the New York Stock Exchange-listed international hospitality group, is planning to acquire the brands and management business of Protea Hotels in South Africa and sub-Saharan Africa. The US group confirmed last week that it had signed a letter of intent with Cape Town-based Protea Hospitality Holdings to acquire Protea Hotels’ brands and its management business. Protea has hotels spread across East Africa.

Gold contributes 36% of Tanzania’s forex n LONDON The international gold industry contributed more than $210 billion to the world’s economy in 2012 – roughly equivalent to the GDP of the Republic of Ireland, Czech Republic or Beijing. New research released last week reveals that for many nations, gold is also a major source of exports and, therefore, foreign exchange earnings. In 2012, gold provided 36% of all Tanzanian exports and 26% of the exports of Ghana and Papua New Guinea.

Uganda’s Orient Bank gets Nigerian boss LAGOS Keystone Bank Limited has announced the appointment of Ms. Yetunde Kakulu as the Managing Director of its Uganda subsidiary, Orient Bank. However, the appointment is subject to approval by the Central Bank of Nigeria (CBN). According to an official statement, ‘Her professional trajectory has been in retail, commercial and public sector banking in Keystone Bank where she rose to become an Assistant General Manager making her eligible for her new assignment as the chief executive officer of Keystone Bank’s subsidiary in Uganda.’

NEWS

East African Business Week I November 11 - 17, 2013

More oil found at Kilosa in Tanzania

Ugandan insurer in $3.3m capital issue

BY LEO MAGOMBA

BY PAUL TENTENA nKAMPALA, Uganda-- National Insurance Corporation (NIC) last week issued a rights issue of Ush8.4 billion (about $3.3 million) for recapitalising the company. A rights issue involves an invitation for buying additional securities in a company made to the company’s existing shareholders. NIC Chairman Mr. Remi Olowude told reporters in Kampala that the size of the rights issue is Ushs 8.4 billion and the rights issue price is Ushs 26/- per new share. “It opens on 22 November 2013 and closes on 13 December 2013,” Olowude said. “The rights issue ratio is 4 new shares for 5 existing shares and the register closure date is 15 November 2013,” Folayan Bayo, the company Managing Director said. When the rights are for equity securities, such as shares, in a public company, it is a way to raise capital under a seasoned equity offering. Rights issues are sometimes carried out as a shelf offering. With the issued rights, existing security-holders have the privilege to buy a specified number of new securities from the firm at a specified price within a specified time. Robert Baldwin, the CEO of Crested Stocks and Securities, the Co-Lead Transaction Advisor (with Standard Investment Bank Ltd of Kenya) and Lead Sponsoring Stockbroker for the proposed issue while commenting on the offer said, “The additional new shares will participate in future dividends to be declared and paid from the year ending 31 December 2013.” NIC became the second listed company in Uganda in a few years to offer a rights issue after new Vision Printing and Publishing Company.

HEADQUARTERS: The money is for expanding business. FILE PHOTO

4 new shares for 5 old The rights ratio

November 15th Register closes

60%

Nigerian shareholding

National Insurance Corporation Limited (NIC) is a provider of insurance and risk management services in Uganda. It is 60% owned by Industrial and General Insurance Company Limited (IGI) of Nigeria and 40% by the public.

The funds will be used to expand the business and in the process increase its turnover and market share. Bayo said they also want to take advantage of the emerging opportunities in the oil and energy sector. “Of course the injected capital will also allow NIC to increase its retention capacity and thereby underwrite bigger risks,” he said. NIC as of now has the largest branch network among insurance companies in Uganda.

n DAR ES SALAAM, Tanzania---Large oil deposits have been recently found at Kilosa-Kilombero in Morogoro. Swala Oil and Gas Tanzania Limited’s Chief Executive Officer, Dr David Ridge told East African Business Week that gas explorations have indicated potential presence of very large structural traps. Dr Ridge made the announcement recently in Dar es Salaam when giving a briefing update of the 2D seismic programme underway in Kilosa-Kilombero districts. He said: “The results from the Kidatu survey have already shown the potential presence of very large structural traps, he said, adding that the findings are encouraging results and the find underscores our team’s geological understanding of the area.” He said a total of 143 square kilometres of 2D seismic were acquired over the Kidatu basin whereby the initial results based on preliminary processed data indicate the presence of large-scale structures along the edges of the basin together with a major intra-basin high identified on dip and strike lines. “The structure may be as large as 30 to 60 square kilometres of the area surveyed which is ‘a good indicator as to the future of the Tanzanian economy and its people,” he said. Dr. Ridge said these are ‘preliminary interpretations He said now the seismic survey has commenced over the Kilombero Basin, south of the Kidatu Basin for another three weeks.

Rwandan teachers to get loans BY AGNES BATETA

WELFARE: Currently, some 44,000 teachers are getting loans.

nKIGALI, Rwanda-Rwandan teachers are to get about Rwf 36 billion (just over $50 million) from the teachers’ savings and credit cooperative “Umwalimu Sacco”, payable this fiscal year 2013/2014. Uwalimu Sacco was started in Rwanda to help teachers be able to earn a better social welfare which will in the end contribute to development of the community they reside in hence help the country develop. “Last year we managed to give out loans of about Rwf 24 billion which never covered most of the teachers

and this is why we want to increase on loans given out,” Joseph Museruko, a cooperative managing director said. Museruko said because of the constant increase in teachers who want loans, the cooperative is coming up with different strategies to help members access loans easily. “We want to develop an easier way of accessing loans and here we want to develop a system through which our members will be able to access loans from the different cooperative branches,” he said. People will be able to get loans of about Rwf 20million which has not

been the case and this will be done with approval from the cooperative credit department. This cooperative started giving out loans of about Rwf 3million but up to now this has increased to Rwf 15million and here teachers can get loans in accordance to their ability to pay back. Currently about 44,000 teachers get loans from the cooperative with a 17,000 getting loans from other financial institutions. However according to the Uwalimu Sacco management, they want to get all the teachers under its loan scheme.

ADVERT

East African Business Week I NOVEMBER 11 - 17, 2013

THE UNITED REPUBLIC OF TANZANIA MINISTRY OF HEALTH AND SOCIAL WELFARE MINISTERIAL TENDER BOARD

REQUEST FOR EXPRESSION OF INTEREST

TENDER NO. ME/007/2013-14/HQ/C/20 FOR IMPLEMENTING BEHAVIOUR CHANGE COMMUNICATION (BCC) ACTIVITIES TO PROMOTE MALARIA EARLY TREATMENT SEEKING AND COMPLIANCE TO TREATMENT IN MAINLAND TANZANIA

TENDER NO. ME/007/2013-14/HQ/C/21 FOR THE LOGISTICS MANAGEMENT OF THE LONG-LASTING INSECTICIDE TREATED NET (LLIN) REPLACEMENT CAMPAIGN IN TANZANIA

1. The Government of the United Republic of Tanzania has received funds from the Global Fund to Fight AIDS, TB and Malaria (GFATM) towards malaria control and intends to apply part of the proceeds of the funds to cover eligible payments for the provision of non-consultancy services for the design and implementation of a social behavior change communication campaign on promoting early malaria treatment seeking behavior and compliance to treatment in mainland Tanzania, in collaboration with the National Malaria Control Program (NMCP) and existing implementing partners. 2. The Ministerial Tender Board now invites eligible firms /consultants to express their interest in providing the services. The qualifications of the consulting firms for this project are as follows: (a) A firms and staff with at least seven years proven track record in the design, planning and implementation of large-scale malaria behavior change communication programmes ( more than just experience in developing materials) (b) must be able to designate a project lead with a minimum of seven years experience in managing large-scale social behavior change communication programmes in the field of malaria (c) must be able to deploy a project team with experience in behavior change communication, social mobilization and working with government, international donors, and public health institutions; (d) must be incorporated or legally organized under the laws of the United Republic of Tanzania. 3. Interested consultants must submit an Expression of Interest (EOI) including the following: (a) company profile; (b) description of related past projects implemented by the proposed project team indicating client, contact details of client’s project representative, project’s period and country performed; (c) all relevant business registration documents; (d) profile of potential project lead for this project; (e) profile of proposed project team members. Indicate if full-time employees of the firm or not. 4. Consultants may associate to enhance their qualifications. The association may take the form of a joint venture or of a sub-consultancy. The sub-consultancy shall not exceed 25% of the contract value above which the association will be considered to be a joint venture with all the firms in that association being jointly and severally liable to the client. A consultant shall submit only one EOI in the same selection process, either individually as a consultant or as a partner of an association. No consultant can be an associate while submitting an EOI individually or as a partner in a joint venture in the same selection process. A consultant who submits or participates in more than one EOI will cause all the Expression of Interest in which that consultant has participated to be disqualified and shall not be considered for shortlisting. Foreign consultants wishing to be considered for shortlisting must associate with national consultants. All consultants (foreign and national) intending to associate with one another must submit a copy of letter (of agreement) of intention to associate. 5. The consultants will be selected in accordance with the procedures as set out in Guidelines: Selection and Employment of Consultants by World Bank Borrowers January 1997, Revised September 1997, January 1999 and May 2002. A final list of consultants invited to submit proposals for this assignment will be prepared from consultants responding to the notice. Only consultants with staff having demonstrated proven experience and excellent track records in similar assignments will be considered for shortlisting. 6. Expression of interest must be delivered in a sealed envelope by registered post with acknowledgement due or by hand or courier to the Secretary, Ministerial Tender Board, at the address below and be submitted in English only. Expression of Interest received late will not be considered in short-listing. 7. This is not a request for proposals. After a review of the Expressions of Interest, a shortlist will be prepared, and those listed consultants will be invited to submit their proposals through a letter invitation including specific Terms of Reference. 8. Interested consultants may obtain further information at the address below from 0730 to 1530 hours local time (Mondays to Fridays). Expressions of Interest must be delivered to the same address on or before 0900 hours local time on 2 December, 2013 with the following identification marks: “Expression of Interest for Tender No. ME/007/2013-14/HQ/C/20 for the design and implementation of malaria behaviour change communication for the Ministry of Health and Social Welfare, Secretary to the Tender Board Room 210. Not to be opened before 09.00 a.m. local time on 2 December, 2013”.

1. The Government of the United Republic of Tanzania has received funds from the Global Fund to Fight AIDS, TB and Malaria (GFATM) towards the cost of a Long Lasting Insecticide Treated Nets (LLIN) Replacement Campaign and intends to apply part of the proceeds of the funds to cover eligible payments for the provision of non-consultancy services for the logistics management of the campaign. The goal of the assignment is to manage the entire LLIN distribution and supply chain from port of delivery to the final LLIN service delivery points in 20 regions of mainland Tanzania, in collaboration with the National Malaria Control Program (NMCP) and Local Government Authorities. 2. The Ministerial Tender Board now invites eligible firms /consultants to express their interest in providing the services. The qualifications of the consulting firms for this project are as follows: (a) at least five years track record in the design, planning and implementation of large-scale logistical and public health programmes; (b) must be able to designate a project lead with a minimum of eight years experience in managing large-scale international development programmes in the field of public health or other relevant fields; (c) must be able to deploy a project team with experience in logistics management and working with government, international donors, and public health institutions; (d) must be incorporated or legally organized under the laws of the United Republic of Tanzania. 3. Interested consultants must submit an Expression of Interest (EOI) including the following: (a) company profile; (b) description of related past projects indicating client, contact details of client’s project representative, project’s period and country performed; (c) all relevant business registration documents; (d) audited financial statements for year 2012; (e) profile of potential project lead for this project; (f) profile of potential project team members. Indicate if full-time employees of the firm or not. 4. Consultants may associate to enhance their qualifications. The association may take the form of a joint venture or of a sub-consultancy. The sub-consultancy shall not exceed 25% of the contract value above which the association will be considered to be a joint venture with all the firms in that association being jointly and severally liable to the client. A consultant shall submit only one EOI in the same selection process, either individually as a consultant or as a partner of an association. No consultant can be an associate while submitting an EOI individually or as a partner in a joint venture in the same selection process. A consultant who submits or participates in more than one EOI will cause all the Expression of Interest in which that consultant has participated to be disqualified and shall not be considered for shortlisting. Foreign consultants wishing to be considered for shortlisting must associate with national consultants. All consultants (foreign and national) intending to associate with one another must submit a copy of letter (of agreement) of intention to associate. 5. The consultants will be selected in accordance with the procedures as set out in Guidelines: Selection and Employment of Consultants by World Bank Borrowers January 1997, Revised September 1997, January 1999 and May 2002. A final list of consultants invited to submit proposals for this assignment will be prepared from consultants responding to the notice. Only consultants with demonstrated experience and excellent track records in similar assignments will be considered for shortlisting. 6. Expression of interest must be delivered in a sealed envelope by registered post with acknowledgement due or by hand or courier to the Secretary, Ministerial Tender Board, at the address below and be submitted in English only. Expression of Interest received late will not be considered in short-listing. 7. This is not a request for proposals. After a review of the Expressions of Interest, a shortlist will be prepared, and those listed consultants will be invited to submit their proposals through a letter invitation including specific Terms of Reference. 8. Interested consultants may obtain further information at the address below from 0730 to 1530 hours local time (Mondays to Fridays). Expressions of Interest must be delivered to the same address on or before 0900 hours local time on 2 December 2013 with the following identification marks: “Expression of Interest for Tender No. ME/007/2013-14/HQ/C/21 for provision of the Logistics Management of the National LLIN Replacement Campaign for the Ministry of Health and Social Welfare, Secretary to the Tender Board Room 210. Not to be opened before 09.00 a.m. local time on 2 December, 2013”.

Permanent Secretary, Ministry of Health and Social Welfare Plot 36/37 Samora Avenue, P.O. Box 9083, Dar es Salaam Tel. No. +255-(0)22-2120261 – 6 ; Fax No. 255 – 22-2137591

NEWS

East African Business Week I November 11 - 17, 2013

Dutch beer gets dar launching BY PATRICK KISEMBO nDAR ES SALAAM, Tanzania--JOVET Tanzania Limited, the official supplier of Bavaria products in East Africa, recently launched Bavaria 8.6 Black for the Tanzanian market. The company is consolidating its brand position in the country as well as the entire region. Accordint to JOVET officials, Bavaria 8.6 Black is a dark version of its classic Bavaria 8.6 original beer and is a stout beer type with a scent of cocoa and grilled coffee. The product is brewed by the Bavaria Brewery in The Netherlands. Speaking during the launch event of the new product and marketing campaign in Dar es Salaam the Jovet Tanzania Limited Managing Director John Kessy. said the new product will give total satisfaction to stout beer lovers adding that its packed in a unique can with likewise look and feel because of the embossed surface. He said Bavaria 8.6 Black targets drinkers aged 18 to 49 or above who are looking for stout beers with a real character. “We are officially introducing Bavaria 8.6 Black beer in the Tanzanian market. We believe the new product will go a long way in quenching thirst for imported beer lovers as well as offering exclusive haptic experience. “Tanzania has a good market potential. Our clients should brace themselves for a unique taste offered by our new product since it comes in alongside Bavaria’s existing Original, Red and Gold 8.6 beers,” Kessy said.

LETS HAVE A TOAST: Kessy celebrates the launch with JOVET officials and invited guests.

PHOTO BY PATRICK KISEMBO

REPUBLIC OF RWANDA

REQUEST FOR EXPRESSIONS OF INTEREST COUNTRY: RWANDA NAME OF PROJECT: Governance for Competitiveness Technical Assistance (G4C TA) Project Credit No.: 65351 – RW Assignment Title: HIRING AN INDIVIDUAL CONSULTANT FOR THE ASSESSMENT OF THE TOURISM SOUVENIRS, HANDICRAFT AND CREATIVE INDUSTRY FOR RWANDA MINISTRY OF TRADE AND INDUSTRY (MINICOM) Reference No.: 012/S/SPIU/G4CTA-IDA/MINICOM/2013-2014 1. Back ground The Government of the Republic of Rwanda (GoR) through the Ministry of Trade and Industry (MINICO M) has received funds from the W orld Bank toward the cost of Governance for Competitiveness Technical Assistance Proj ect (G4 C TA), and through the Single Proj ect Implementation Unit, an implementing agency of the Client, intends to apply part of the proceeds for the consulting services of an individual consultant for the assessment of tourism souvenirs, handicraft and creative industry for Rwanda. Rwanda aims to be the premier eco-tourism destination on the African continent. Tourism goals include promoting Rwanda as a high q uality tourism destination, to serve as a regional meetings and conference hub for Central and E astern Africa. Creative activities, such as memorabilia products as well as handicrafts are also essentials and necessary to guarantee a positive and memorable tourism ex periences. If these products are properly developed, they can positively impact the communities, private sector and self-employed creative entrepreneurs in the tourism sector. 2. Obj ective The proposed consultancy aims to assess the potential of the handicraft industry, and memorabilia development for j ob creation, economic growth, and poverty alleviation through tourism development. 3. Scope of services The consultancy will consist of a rapid assessment ex ercise that will: 1. Collect and compile data on the handicraft and other creative memorabilia industries integral to tourism; 2 . Map the overall handicraft and other memorabilia industry’ s mark etplace; 3 . Identify k ey actors/ players and the link s in the tourism value chain of the handi-

craft industries and memorabilia industries including their role and responsibilities; 4 . Identify current strengths and limitations as well as opportunities and challenges in the handicraft, and memorabilia industry landscape; 5 . Conduct assessment on the demand of ex isting and potential customers (mark et research) in the mark et for creative industries and handicraft industry and potentially mak e brief recommendation as to types of handicraft, design, pack aging etc; 6 . Identify limitations and design strategies for sustainable product development (design and technical production) and mark eting of handicraft and creative memorabilia industries; 7 . Recommend modalities for the designing and ex ecution of capacity building pack age including detailed training programs for k ey players in the value chain in the target regions. 4. Duration The consultancy input is ex pected to tak e an estimated period of 3 0 person days. 5. Proﬁle of the consultant The consultant should have the following qualifications and experience: a) A master’ s degree in business, economics, tourism, management, or related disciplines; b) Five (5 ) years’ professional ex perience of work ing in the creative and handicraft sectors; c) Multi-country ex perience in similar assignments (handicraft and creative industry); d) Proven capability to access cultural centers and handicraft information including best practices and global benchmark s; and present these accurately and clearly at national level; e) Fluency in E nglish, French will be an added value; f) The consultant should have ability to coach and mentor a local counterpart in line

with the k nowledge transfer policy; g) H aving k nowledge of handicraft and creative industry of Rwanda or E ast Africa is an added advantage. The attention of interested Consultants is drawn to paragraph 1.9 of the W orld Bank ’ s Guidelines: Selection and E mployment of Consultants [ under IBRD Loans and IDA Credits & Grants] by W orld Bank Borrowers (“ Consultant Guidelines” January 2011), setting forth the World Bank’s policy on con ict of interest. A Consultant will be selected in accordance with the Individual Consultant Selection method set out in the Consultant Guidelines. Further information can be obtained at the address below during office hours 08: 00 a.m. to 0 5 : 0 0 pm. E x pressions of interest must be delivered in a written form to the address below (in person or by mail, or by e-mail) on or before November 2 5 th, 2 0 13 at 5 : 0 0 p.m. to: E x pressions of interest (by hard or soft copy) must be delivered to the address below on or before November 25th, 2013 at 5:00 p.m. to: Single Proj ect Implementation Unit - MINICOM Attn: SPIU Procurement P O . Box 7 3 K igali – Rwanda E -mail: spiuprocurement@ gmail.com, Done at K igali, on 7 th November 2 0 13 . Coordinator SPIU-MINICOM

TENDERS

East African Business Week I November 11-17, 2013

THE UNITED REPUBLIC OF TANZANIA ACCOUNTANT GENERAL’ S DEPARTMENT MINISTRY OF FINANCE Tender Notice No 094/CE/ICB/2013-2014/GF SSF-TB& GoR/ TB& ORCD 1. The Rwanda Biomedical Centre/Medical Procurement and Production Division (RBC/MPPD (hereinafter called ’Client ) funded by the Global Fund and the Government of Rwanda towards the cost of supply and delivery of Supply and Delivery of Medical Consumables, Material and Equipment for TB ORCD. The Client intends to apply a portion of the funds to eligible payments under the framework contract for which this Bidding Document is issued. 2. The Rwanda Biomedical Centre/Medical Procurement and Production Division (RBC/MPPD) invites qualified bidders to submit bids for the establishment of framew ork agreement to Supply and Deliver Medical Consumables, Material and Eq uipment for TB& ORCD as indicated in detail in the statement of Requirements. 3. Bidding Documents in both French and English may be obtained from the reception of RBC/MPPD, Gasabo District, igali City, P. O. Box 640 igali Rwanda. Tel. ( 250) 252 580156/580157 Fax. 0250 252 582725; Email: camerwa gmail.com; upon presentation of proof payment of a nonrefundable fee of Twelve thousand Rwanda Francs (12,000 RWF) or its equivalent in a freely convertible currency to Account No 010-0025133-01-31/RWF (Name of A/C: RBC/ MPDD) or at Account No 010-0025133-03-25/ SD (Name of A/C: CAMERWA) opened at I M Bank (Rwanda) Limited (ex-Rwanda Commercial Bank) P.O. Box 354 igali-Rwanda Tel.: 250 252575591 Call center Tel: 3227 Fax: 250(0) 252 573395 Email: customerservice bcr.co.rw/ bcr rwanda1. com. 4. Bidding Documents may be obtained on any working day from the RBC/MPPD secretariat at the above address from 07:30 to 17:00 hours, from Monday to Friday, except on public holidays, up to 5 days prior bid submission date. The softcopy of price schedule will be required to be submitted too.

million Rwandan Francs (RWF 2,000,000), or its equivalent in a freely convertible currency; and the softcopy of price schedule in alignment of hardcopy provided. 6. Pre-Bidding meeting aiming at providing clarification on bidding document will be held at MPPD premises at acyiru on 26th November 2013 at 3: 00 pm 7. Enquiries regarding this tender may be addressed to ead of RBC/MPPD, Gasabo District, igali City, P. O. Box 640 igali Rwanda. Tel. ( 250) 252 580156/580157 Fax. 0250 252 582725; Email: camerwa gmail.com in no less than 21 days prior the day of submission and opening. Well printed bids, properly bound and presented in 2 copies and 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 9th J anuary 2014 at 9 am local time o’ clock : 1. Late bids will be rejected. 2. Bids will be opened in the presence of bidders or their representatives who choose to attend at RBC/MPPD on 9th J anuary 2014 at 10 o’ clock 3. The Outer envelope should clearly indicate the tender name and title 4. Bidding will be conducted in accordance with the Law N 05/2013 of 13/02/2013 Modifying and Completing the Law No 12/2007 of 27/03/2007 on Public Procurement in Rwanda. 5. Preliminary Requirements for examination of bid(s) will be: bid submission form, price schedule and bid security. Post qualification requirements for award: as specified in the bidding document Done at igali on 29th October 2013

NATIONAL COMPETITIVE BIDDING TENDER NO. IE/031/2013-2014/HQ/NC/06 FOR ROUTINE MAINTENANCE, REPAIR AND SERVICE OF GENERATORS FOR THE ACCOUNTANT GENERAL’ S DEPARTMENT

INVITATION FOR BIDS 6th November, 2013 1. The Government of Tanzania has set aside funds for the operations of the Accountant General’ s Department during the financial year 2013/2014. It is intended that part of the proceeds of the fund will be used to cover eligible payment under the contract for Routine Maintenance, Repair and Service of Generators for the Accountant General’ s Department 2. The Accountant General’s Department now invites sealed tenders from Service Providers of Maintenance, Repair and Service of Generator in the following lots:

Lot Number Description Quantity 1 Routine Maintenance, Repair and Service 23 of Generators for the Accountant General’ s Department 2 Routine Maintenance, Repair and Service of 28 Generators for TPDF camps Partial bids will not be accepted. The Government will evaluate the bids and award the contract to the lowest evaluated Bidder who adheres to the conditions in this bidding document, provides the best manpower, up to date tools and the most economical bidder.

5. All bids shall be accompanied by a Bid Security, which will be verified by the bank correspondent in Rwanda, of Two

3. Bidders must quote according to bid document as specified in the schedule of requirements. Partial bids will not be accepted. The Procuring Entity will evaluate the tenders and award the contract to the most competitive bidder.

Tender Notice No 095/PCRT/ICB/2013-2014/GF-SSF Malaria/MOPDD 1. The Rwanda Biomedical Centre/Medical Procurement and Production Division (RBC/MPPD (hereinafter called ’Client ) funded by the Global Fund towards the cost of supply and delivery of Drugs, Medical Consumables and PLC Reagents for M OPDD. The Client intends to apply a portion of the funds to eligible payments under the framework contract for which this Bidding Document is issued. 2. The Rwanda Biomedical Centre/Medical Procurement and Production Division (RBC/MPPD) invites qualified bidders to submit bids for establishment of framew ork agreement for the supply and delivery of Drugs, Consumables & Tests of Laboratory, Public Health Pesticide (insecticide) and HPLC Reagents for Quality Control of Antimalarial drugs as indicated in detail in the statement of Requirements. 3. Bidding Documents in both French and English may be obtained from the reception of RBC/MPPD, Gasabo District, igali City, P. O. Box 640 igali Rwanda. Tel. ( 250) 252 580156/580157 Fax. 0250 252 582725; Email: camerwa gmail.com; upon presentation of proof payment of a nonrefundable fee of Twelve thousand Rwanda Francs (12,000 RWF) or its equivalent in a freely convertible currency to Account No 010-0025133-01-31/RWF (Name of A/C: RBC/ MPDD) or at Account No 010-0025133-03-25/ SD (Name of A/C: CAMERWA) opened at I M Bank (Rwanda) Limited (ex-Rwanda Commercial Bank) P.O. Box 354 igali-Rwanda Tel.: 250 252575591 Call center Tel: 3227 Fax: 250(0) 252 573395 Email: customerservice bcr.co.rw/ bcr rwanda1. com. 4. Bidding Documents may be obtained on any working day from the RBC/MPPD secretariat at the above address from 07:30 to 17:00 hours, from Monday to Friday, except on public holidays, up to 5 days prior bid submission date. The softcopy of price schedule will be required to be submitted too. 5. All bids shall be accompanied by a Bid Security, which will be verified by the bank correspondent in Rwanda, of Two

million Rwandan Francs (RWF 2,000,000), or its equivalent in a freely convertible currency; and the softcopy of price schedule in alignment of hardcopy provided. 6. Pre-Bidding meeting aiming at providing clarification on bidding document will be held at MPPD premises at acyiru on 26th November 2013 at 3: 00 pm 7. Enquiries regarding this tender may be addressed to ead of RBC/MPPD, Gasabo District, igali City, P. O. Box 640 igali Rwanda. Tel. ( 250) 252 580156/580157 Fax. 0250 252 582725; Email: camerwa gmail.com in no less than 21 days prior the day of submission and opening. Well printed bids, properly bound and presented in 2 copies and 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 9th J anuary 2014 at 9 am local time o’ clock 1. Late bids will be rejected. 2. Bids will be opened in the presence of bidders or their representatives who choose to attend at RBC/MPPD on 9th J anuary 2014 at 10 o’ clock 3. The Outer envelope should clearly indicate the tender name and title 4. Bidding will be conducted in accordance with the Law N 05/2013 of 13/02/2013 Modifying and Completing the Law No 12/2007 of 27/03/2007 on Public Procurement in Rwanda. 5. Preliminary Requirements for examination of bid(s) will be: bid submission form, price schedule and bid security. Post qualification requirements for award: as specified in the bidding document Done at igali on 29th October 2013

4. Bidding will be conducted through National Competitive Bidding procedures specified in the Public Procurement (Goods, Works, Non Consultant Service and Disposal of Public Assets by Tender) Regulations, 2005 Government Notice No. 97 and are open to all Bidders as defined in the Regulations. 5 . Bidders may obtain further information and inspect the Bidding Documents at the office of the Secretary, Accountant General Tender Board, at New Pension Building, Madaraka Avenue / Shaaban Robert Street / Luthuli Street, P.O Box 9111, Dar Es Salaam from 7:30 am to 3.30 pm, Mondays to Fridays inclusive except on Public olidays 6. A complete set of Bidding Document(s) in English and additional sets may be purchased by interested Bidder(s) upon submission of a written application to the address given at paragraph 5 above and upon payment of a non refundable fee of Tshs 100,000.00 (Tanzania Shillings One hundred thousand Only) Payment should be by cash payable to The Permanent Secretary Ministry of Finance. 7. All Bids must be accompanied by a Bid security in acceptable form in the amount of T S. 4,000,000.00 for Lot No 1 and T S 6,000,000.00 for Lot No. 2, or freely convertible currencies in case of foreign bidders. 8. All bids in one original plus two copies, properly filled in, and enclosed in plain envelopes must be delivered to the Procurement Management nit (PM ) Office, at New Pension Building , Madaraka Avenue / Shaaban Robert Street / Luthuli Street, P.O Box 9111, Dar Es Salaam at or before 10.00am hour’ s local time on Thursday 5th December, 2013. Bids will be opened promptly thereafter in public and in the presence of Bidders’ representatives who choose to attend in the opening ceremony at the Accountant General’s Department Conference Room, Madaraka Avenue/Shaaban Robert Street/Luthuli Street-Dar es Salaam 9. Late Bids, Portion of Bids, Electronic Bids, Bids not received, Bids not opened and not read out in public at the bid opening ceremony shall not be accepted for evaluation irrespective of the circumstances. ACCOUNTANT GENERAL

NEWS

East African Business Week I November 11 - 17, 2013

Uganda schools tipped on energy use

BRIEFLY Kenya ranks high in mobile phone numbers nJO’BURG Excluding South Africa, the highest penetration of cellphones is found in Kenya with 31 million, Ghana with 26 million and Tanzania with 27 million. A study by Ask Africa and the Starcom MediaVest Group (SMG) also showed that the countries with the highest percentage of the population below 15 years old came from Uganda at 49%, Zambia with 46% and Tanzania (45%). The results also show that Ghana has the highest number of radio stations at 99, but Angola and Nigeria have the most TV stations.

Rwanda issues special license for exporter nKIGALI Rwanda’s Ministry of Natural Resources last week issued the first International Conference of the Great Lakes Region (ICGLR) Mineral Export Certificate in the country. Rutongo Mines Limited was given the shipment license for its operations in Rulindo District. According to the new rules, a certificate accompanies each exported shipment of designated minerals that has been certified. Certification serves as the assurance to purchasers that a mineral shipment is conflict free and meets all other ICGLR standards.

Kenya sugar millers to be reduced nNAIROBI Legislators here believe a forced reduction of sugar millers may help to boost the sector which has been ailing. Last week, a parliamentary committee on agriculture told the Kenya Sugar Board to stop licensing new entrants until the industry recovers. Kenya is already asking the COMESA secretariat to extend an exemption barring sugar imports from entering the domestic market as another measure. Several sugar millers are under receivership and blame unfair competition from imports for their losses.

BY WINNIE MANDELA

FOR SALE: Traditional methods of producing charcoal have been seen to be inefficient.

FILE PHOTO

Rwanda reorganises charcoal production BY AGNES BATETA

nKIGALI, Rwanda---The Ministry of Agriculture and Animal Husbandry together with the Rwanda Natural Resources Authority, and Ministry of Infrastructure, organised a meeting to improve charcoal production. Charcoal is a major source of energy used in the country, production is not always efficient. Officials from NOTS Blue Charcoal of Netherlands also attended. Their presence was to see how the new NOTS Blue Charcoal model can be implemented in Rwanda. About 70% of people in the sub-Saharan Africa use charcoal for cooking and this comes various negative effects, especially deforestation and pollution. Rwanda has about 400 trees per hectare under the agro-forestry system. The meeting discussed how to make the most efficient use of this resource. “We want to introduce this model in the country which consists of

400

Trees per hectare in Rwanda

2014

Implementing new method

15%

Present efficiency in usage

four elements which include efficient charcoal production using small-scale kilns, reforestation to produce a sustainable feedback for charcoal production, cash crop production to increase and diversify community incomes, plus distribution to create a premium market for sustainable charcoal,” Bart Hartman the Chief Entrepreneur of NOTS said. “This new method will help us as farmers gain more from our farming and charcoal burning,” Sabin Murererehe a charcoal burner and a private researcher added. He said the new method is better than the traditional method which

involves much labour yet the charcoal produced is not that good. More important is that pollution levels are reduced which is the most common dangerous aspect while producing charcoal by traditional methods. Officials said the new NOTS method will also create employment for many Rwandans. “By implementing the NOTS model, charcoal production in Rwanda can be sustainable by the year 2025 bringing many advantages to the country,” Hartman said. The changes in production are expected to be implemented by 2014. NOTS will support the project by making and distributing energy saving stoves which later recipients will pay for after five years. Efficient charcoal usage is expected to rise from 15% to 50%. The meeting involved 48 people from the different ministries involved, charcoal sellers, forest managers, and charcoal burners among others.

n KAMPALA, Uganda--Global Village Energy Partnership International (GVEP), an NGO pushing for cleaner cooking methods, has picked 16 schools to showcase alternatives. In Africa over 95% of the population depends on firewood and charcoal as the source of energy for cooking which causes environmental damage and in-door pollution. James Milau, the GVEP Uganda Country Director said last week, they are going to work with reputable improved cooking stoves (ICS) makers in Uganda who will help these educational institutions in making durable and reliable cooking stoves. “In the next 2 years, GVEP will be working with heads of schools and ICS manufacturers in enabling access to renewable and clean energy,” he said. To date, GVEP is involved with 16 schools out of the proposed 300. He said feedback indicates a 50% reduction in the use of firewood. Institutions and schools were identified as the major users of firewood and charcoal with some using over seven lorries a charcoal in a month which in turn was seen as the major accelerator of firewood usage thus on going climatic changes as a result of rising levels of deforestation. A GVEP study shows that most schools spend Ush400, 000 (about $153) per month on fuel for cooking meals and heating water with urban schools spending twice this. Parents have to contribute to these costs. Current studies indicate that 1.6 billion people worldwide have no access to electricity, with another billion lacking access.

Australian company explores for Niobium in Tanzania BY ANDREW ZABLON nMWANZA, Tanzania - – An Australian mining company, Cradle Resources Limited, has appointed a consulting firm that would investigate the benefits and adverse impacts of the proposed Niobium mining project at Panda Hill, Tanzania. Niobium is mainly used to strengthen steel and is input for the automobile industry, construction, and building pipelines. MTL Consulting Company Limited will conduct an Environmental and Social Impact Assessment (ESIA) for the proposed Niobium mining project but timeframe has been dislcosed. The project is at Panda Hill located in Mbeya, south western Tanzania, close to the Zambia –Malawi border. MTL Consulting Company provides consultancy services in the areas of geology, mining, mineral processing, geotechnical engineering, water, oil/gas and Environment and Social Management.

Listed on the Australian Stock of Exchange, Cradle Resources Limited aims to review the opportunity of developing operations at Panda Hill in the project that’s covered by three granted licenses totaling 22.1 square kilometres. Reports have it that in order to carry out an implementation of the project, an Environmental and Social Impact Assessment is required as stipulated in the Environmental Management Act, 2004 and the Mining Act, 2010. This was jointly reported last week by MTL Consulting Company Ltd and the Tanzania National Environmental Council (NEMC). The ESIA would be conducted in order to ensure the operations are in line with internationally accepted standards for environmental and social requirements. MTL therefore would undertake the ESIA that would investigate the project’s benefits and adverse impacts and describe measures both to enhance the benefits and mitigate the adverse impacts.

The three Cradle Resources granted mining licenses are due for renewal in November, 2016 and under Tanzanian mining legislation can be renewed for a further 10-year period on completion of the approved work programs on the project. A significant historical technical database on the project has been acquired by Panda Hill, including drill core, mapping and assay data from campaigns undertaken in the 1950-1980s. The Panda Hill rock intrusion has been subject to multiple phases of exploration work since the 1950s. This work has targeted the Niobium and Phosphate endowment of the deposit. From 1953 to 1965, the Geological Survey of Tanzania (GST) undertook mapping, diamond drilling and trenching to assess the Niobium and Phosphate potential of the deposit. As much as 90% of the global use for Niobium is as an additive in steelmaking, mostly in the manufacture of micro-alloys. Brazil is the leading producer of niobium and ferroniobium, an alloy of niobium and iron.

BUSINESS

DIGEST

TRADE BASED ON VALUE-ADDITION Success in global markets depends as much on a country’s capacity to import highquality inputs as to export them TO PAGE 14

BUSINESS WEEK, November 11-17, 2013

If you had answered: The United States or China, then you are wrong. The world economy has become more complex, with global value chains (GVC) and myriad interconnections among producers across continents. The tricks behind valueadded can be both baffling and frustrating which explains the difficulty Africans find in breaking into the GVC.

Who really makes the iPhone? n This has an impact on trade and investment policy, as well as on development, and exposes the shortcomings of the usual way of measuring trade. David Hume, the 18th century Scottish philosopher and historian, observed that in ancient Greece, it was a crime to export figs on the grounds that figs were too exquisite a fruit for barbarian palates. “It is easy to observe,” Hume wrote, “that all calculations concerning the balance of trade are founded on very uncertain facts and suppositions.” Such a policy would probably not gain much traction today, but wrongheaded notions do persist about trade. Take the iPhone. Most people probably take it for granted that Apple’s creation is manufactured

in China, and that China earns a considerable profit from exporting it. In 2010, an iPhone cost just over $187 at the factory gate. Within that amount, however, Korea contributed $80.05 worth of components, Chinese Taipei $20.75, the United States $22.88 and Germany $16.08. China was among a host of contributors at the bottom of the list; by simply putting all the parts and components together, Chinese workers contributed just $6.50 to each iPhone. So who really produces the iPhone? A study by the Asian Development Bank estimated that the iPhone deepened the US trade deficit with China by $1.9 billion–that is, until the real “value-added” is measured, in which case the deficit evaporated to $73.5 million. This statistical bias of attributing the origin of product to its last port

Timothy D. Cook, Apple CEO of call not only distorts economic reality, but gives a credible arm to trade protectionists. Current trade statistics reveal little about the value added to a product at each

stage of the process. There is also the tendency to think of value-added as pertaining only to components: the memory function, touch screen and applications processor in an iPhone, rather than the logistics, R&D, marketing and branding. In fact, all are part of a global value chain (GVC) with unsuspected links to other chains. Organisation of Economic Cooperation and Development (OECD) data show that the added value of these “intermediate inputs” accounts for more than 50% of the value trade in goods and 70% in services. If such is the case, it might reasonably be asked whether the old way of measuring trade is of much use. Assessing the true costs of production means tracking each of these inputs to the source, which

for the moment is not the case. If it were, the world would look quite different. The problem starts with an arithmetical blunder. Nominal duties on gross exports reveal little about the harm caused by tariffs and other protectionist measures which boost production costs. Spared the agony of jumping one high barrier, exporters grow weary at having to jump a lot of little ones. The tariff a country pays to export its cars to another may be low, but if the manufacturer depends heavily on foreign intermediate inputs, any tariff on those intermediate inputs carries over into the production cost. . In short, keeping intermediate tariffs low is as important as keeping them low on final goods. TO PAGE 14

BUSINESS DIGEST

East African Business Week I November 11-17, 2013

Trade based on value-added of inputs Success in global markets depends as much on a country’s capacity to import highquality inputs as to export them.

FROM PAGE 13 Consider the production chain A country (having paid its tariff) exports a computer chip to a second country for installation in a circuit board. The second country, having installed the chip (and paid its tariff), ships the circuit board off to a third country, where the chip (now counted as a “circuit board”) is assembled as part of a car computer. Next, the chip (now in its final metamorphosis as a “car”) is exported to a fourth country where it is marketed and sold. Instead of being counted once, the chip is counted three times, each time as part of a larger component. The cumulative effect obscures the real cost of a product and distorts policy decisions. Protectionist measures against intermediate inputs, for instance, become self-defeating in this light since higher costs on these imports would obviously hurt a country’s exports too. Government efforts to lighten the burden on producers through currency interventions bring no relief. Any competitive advantage gained through a cheaper currency is lost because intermediate inputs purchased from abroad end up being more expensive. To help clear up this confusion and build a sharper picture of trade based on the complexity of measuring the value-added of inputs, the OECD and World Trade Organisation (WTO) released the TiVA (Trade in Valueadded) database in January 2013. The database, which was updated in May covers 18 industries in 57 countries. The OECD has also released a set of trade facilitation indicators for 133 countries. These reveal the unexpected costs engendered by tariffs and protectionist measures and lay the groundwork for advancing multilateral trade negotiations. It is a valuable database, because in a world of GVCs, policymakers are apt to lose sight of the fact that success in global markets depends as much on a country’s capacity to import high-quality inputs as to export them.

VALUE ADDITION: Workers on the production line at the Foxconn Complex in Shenzhen, China

iphone PRIMARY CONTRACTORS - A partial list SOFTWARE AND DESIGN APPLE Assembly Foxconn?, Quanta, Unknown TFT-LCD Screen Sanyo Epson, Sharp, TMD Video processor chip Samsung Touch screen overlay Balda Bluetooth chip Cambridge Silicon Radio Chip manufacture TSMC, UMC Baseband IC Infineon Technology WIFI Chip Marvell Touch screen control chip Broadcom CMOS chip Micron Display Driver chip National Semi, Novatek Case, Mechanical parts Catcher, Foxconn Tech Camera lens Largan Precision Cam Camera module Altus-Tech, Primax, Lite On Battery Charger Delta Electronics Timing Crystal TXC It helps no one if some countries pay tariffs on their value-added exports five times higher than the nominal tariff rate. Manufacturers of components are not the only losers. Tariffs on agricultural goods, for

USA Taiwan Japan Korea Germany UK Taiwan Germany USA USA USA US, TW Taiwan Taiwan Taiwan Taiwan Taiwan

example, are on average three times higher than those on manufactured products. Along with lowering or eliminating tariffs, policymakers must also address debilitating non-tariff measures (NTMs), and take a long,

hard look at services. The service sector is the fastest growing sector in the world due mostly to the boom in information technology. Aside from the components in a PC or smartphone, much of the trade in this sector is intangible. Software development, patent acquisition and data transfer do not require the container ship but liberalised telecommunications and clear regulations concerning intellectual property rights. Even the idea of “logistics” is evolving. In Sweden, digital distribution of music, video games, etc., is outstripping traditional distribution through retailers. Firms, especially small ones, say that digital distribution makes it easier to reach larger markets, refine marketing strategies and attract financing through novel methods like crowdsourcing and crowd funding–common in the video games industry. But one of the most striking aspects of GVCs in services is that the highest value-added occurs at the extreme ends of the chain: in the early innovation and later branding and marketing, for instance.

Most countries will rightly want to move up the value chain. To help them, policies to nurture talent and develop new skills will therefore be essential. Talent and skill are themselves value-adding intermediate inputs. Visas and overly tight work permits, as well as restrictions on intellectual property rights (IPR) and patent acquisition can in contrast stifle innovation. Government must also help ensure that workers in outmoded sectors can be retrained for new jobs. Changing policy is easier than overcoming biases, but if the map were redrawn to show countries where they truly stood in terms of valueadded trade, it could ease geopolitical tensions over trade surpluses and deficits. And given the interconnected nature of our economies, it would not only heighten competition, but strengthen trust and co-operation as well, surely the most valuable assets in a global economy.

Organisation of Economic Cooperation and Development (OECD)

Global value chains magnify the costs of protection After more than a half a century of trade liberalisation, nominal tariffs on manufactured products in developed economies are generally low, and the general trend has also been towards lower tariffs in developing countries. But in a world characterised by GVCs things are not so clear-cut: tariffs and other protection measures at the border are cumulative when intermediate inputs are traded across borders multiple times. Tariffs and non-tariff measures can add a significant cost to the price of the finished good that in turn affects the production and investment decisions of firms involved in GVCs Nominal duties on gross exports are an incomplete measure of ef-

fective tariff barriers. The effective burden for the exporter is better measured by tariffs on the domestic value added of exports, which are particularly high in those economies that have a large share of intermediate imports in their exports. In agriculture, the share of domestic content is often larger but effective tariffs can also be high as the pace of nominal tariff liberalisation has been slower and tariff peaks and escalation remain an issue. Success in international markets today depends as much on the capacity to import world class inputs as on the capacity to export. Protection measures against imports of intermediate products increase costs of production and reduce a country’s

ability to compete in export markets: tariffs and other barriers on imports are a tax on exports. Policies that restrict access to foreign intermediate goods and services also have a detrimental impact on a country’s position in regional and global supply chains. Similarly, currency interventions which may aim at creating a competitive advantage for exporters lose relevance, as any export advantage gained from a cheaper currency is at least partially eroded by the cost of more expensive imported inputs. Lastly, where foreign investment is a driver of export capacity, the cumulative effect of a number of seemingly small costs may discourage firms from investing, or from maintaining investment, in the country – and

may lead them to bring production facilities, technologies, and jobs elsewhere. The globalisation of supply chains calls for a more coherent view of trade and trade-related policies. The fragmentation of production has created potential new opportunities for developing economies and for small and medium-sized firms to access global markets as components or services suppliers, without having to build the entire value chain of a product. At the same time, GVCs place new demands on firms, in particular as regards the need for strong coordination and efficient links between production stages and across countries. As goods now cross borders many

times, first as inputs and then as final products, fast and efficient customs and port procedures are essential to the smooth operation of supply chains. To compete globally, firms need to maintain lean inventories and still respond quickly to demand, which is not possible when their intermediate inputs suffer unpredictable delays at the border. A country where inputs can be imported and exported within a quick and reliable time frame is a more attractive location for foreign firms seeking to outsource production stages. As such, trade facilitation measures are crucial to foster integration into global production networks and global markets. www. oecd.org

BUSINESS KNOW-HOW East African Business Week I November 11-17 , 2013

Better Business Writing TIPS TO IMPROVE YOUR BUSINESS WRITING

Hope Wilson

Negative words and phrases try to replace all negative instructions with ones that are positive

MARKETING MOXIE

Homophones

words that sound alike but have different spellings and meanings—can be quite troublesome Principle/principal, Complimentary/complementary

n KAMPALA, UGANDA“I was wondering if you can give me some advice for writing business letters in English,” a reader asked. “I want to do some international marketing for an American company, but I think my writing is not good enough.” One thing I admire very much about my East African friends is their mastery of so many languages! Effective marketers are strong communicators in their target market’s language, and this gives multi-lingual marketers a unique advantage in our global economy. Today, I’ll share some tips to improve your business writing, using examples in American English. These examples do not necessarily apply to other English dialects. However, the principles here are good to remember, regardless of the language that you’re using. When you are writing for busiCOMPREHENSION: Clarity, spelling and punctuation are important characteristics of good business writing ness, be aware of the following: Mistakes that spellcheck doesn’t catch. Spellcheck is a very useful tool. However, mistyping a word may result in another legitimate word that we didn’t intend to use—and that may be profane. Here are some examples of words that are often mistyped in business writing: Product. Be careful to type a “T” and not an “E” at the end (produce). Public. If you remove the letter “L,” you will have another word that will be very embarrassing in your business communications. Assess. Forgetting the last “S” on this word can result in some unfortunate sentences. The lesson here is to always have someone else proofread your documents. Never rely exclusively on the computer’s spellcheck function. Words that have different meanings in other cultures or dialects. Sometimes, different cultures will use the same word, but it will have different meanings. For example, when I lived in Paris, one of my French friends and I were having a conversation in English. I told her that I had worked as a lifeguard—meaning someone who works at a swimming pool and saves people who are drowning. My friend, however, had been taught that that the word lifeguard was the same as the word bodyguard—someone who protects a wealthy or powerful person from being attacked. (Think of the movie

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Effective marketers are strong communicators in their target market’s language, and this gives multi-lingual marketers a unique advantage in our global economy

Bodyguard with Whitney Houston and Kevin Costner.) “Who did you lifeguard? Someone famous?” she asked me repeatedly. We were both very confused until we realized our different uses of this word; then we had a good laugh! Examples of different word usage that I have encountered in Uganda include: Athlete. My Ugandan friends tell me that an athlete is someone who does well in track and field events.

In American English, we use this word to refer to all people who are good at sports—football players, swimmers, basketball players, runners, etc. Beat. I have heard my Ugandan friends use this word to describe a minor push or slap by someone. In American English, however, we use this word to describe someone who severely hits and kicks another person, often resulting in broken bones and other severe injuries. In your business communications, make sure that the words you are using have the same meaning for both you and your audience. If you are unsure, be cautious and describe exactly what you mean. Words that sound the same but have different spellings and meanings. Homophones:words that sound alike but have different spellings and meanings—can be quite troublesome. Here are some commonly confused words: Principle/principal. A principle is a standard or rule; a management principle, for example, might mean that all of your employees will treat customers with respect. It is always a noun. A principal typically refers to a person who has a high position within an organization, such as a business executive; we can remember that this word ends in “pal,” which is slang for “friend.” (Principal can also be used as an adjective to describe something of high rank or importance, such as

“principal investment” or “principal complaint.”) Complimentary/complementary. Complimentary refers to something that is either flattering or free. If someone tells you that they like your outfit, it is a complimentary statement. If a restaurant gives you a free dessert, that is also complimentary. By contrast, complementary— spelled with an “E” instead of an “I”—refers to something that completes something else. For example, your wine may complement your dinner, or your company may

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If you are unsure, use a dictionary or reliable online grammar site to verify the correct word

offer free training that complements your product sales. Remember that both complementary and completes begins with “comple.” There/their/they’re. In my opinion, these are the three most challenging homophones for both native and non-native English speakers. There indicates location: “The documents are located there.” Their indicates possession: “Their documents are in my office.” They’re means “they are:” “They’re going to my office to get their documents.” Be sure that you are using the correct homophone in your business writing. If you are unsure, use a dictionary or reliable online grammar site to verify the correct word choice during your proofreading process. Negative words and phrases. This is a more advanced tip that many native-speaking professionals have yet to learn. Imagine that I am writing a business email to you. I can write: “Don’t forget to submit your report by Friday.” Or “Remember to submit your report by Friday.” Pause for a moment to reflect on the way that those two phrases make you feel. If I say, “don’t forget,” I am implying that you are someone who normally forgets to do things. This and other negatively-orientated phrases have a subtle derogatory, commanding feeling to them. By contrast, using neutral or positive words—such as “remember”—add a subtle positive feeling to your interactions with others. Here are some more examples: Instead of “Don’t forget” “Don’t be late” “You shouldn’t” “Don’t lose” “Don’t do that”

Write and Say “Remember” “Be on time” “You should” “Keep” “Avoid doing” or “Do this”

Whenever I write, I try to replace all negative instructions with ones that are positive. This helps my audience to view me as someone who is supportive and believes the best of them. (A side note: Try this approach with children; it can have amazing results!) I hope these few writing tips help you to polish your writing and feel more confident in your communications skills. As always, I welcome your marketing and communications questions.

choice during your proofreading process

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

PICTORIAL

East African Business Week I November 11 - 17 2013

UNITY: Delegates listen attentively to Uganda’s President Yoweri Museveni flanked by Jacob Zuma (South Africa), SADC Chairperson Joyce Banda (Malawi) and Namibia’s Pohamba during SADC-ICGLR Summit held in South Africa.

The week in pictures

WELL DONE: President Jacob Zuma shakes hands with the ICGLR Chairman President Yoweri Museveni. African leaders hailed Museveni for facilitating talks between the Congolese government and the M23.

ABOVE: Prof. Badru Kateregga (c) of Kampala University happily receives goodies from UAP Insurance officials. LEFT:Delegates pose for a photo with Burundi President HE Pierre Nkurunziza in Bujumbura. It was during a 2nd Sector Conference on Energy.

DIVERSIFY FINANCIAL TOOLS: Centum Investment Group CEO, James Mworia chats with CMA CEO Japheth Katto and Finance Minister Maria Kiwanuka. This was during the Kikonyogo Capital Markets Awards dinner held in Kampala.

SPICENET MARK: World Chess Federation (FIDE) President PARTNERSHIP: Standard Chartered Bank Board hosted a Media Fiesta last week at the CEO Herman Kasekende’s Kirsan Ilyumzhinov (left) receives a TZ chess report. residence. Their staff interacted, laughed, joked and shared light memorable moments with the media.

ADVERTORIAL

East African Business Week I November 11-17, 2013

UGANDA WILDLIFE AUTHORITY

ECLIPSE BOOSTS TOURISM IN MURCHISON FALLS NP

Vivian Lyazi (2L) the Ministry of Tourism spokesperson rests on a stone as they eagerly awaited for the Total Solar Eclipse. Reports indicated that over 2000 foreign tourists viewed the eclipse from Uganda.

undreds of tourists flocked to Murchison Falls National Park on their way to Nebbi district to witness the once in a lifetime hybrid eclipse on November 3rd. Mr. Tom Okello Obong the Conservation Area Manager for Murchison Falls Protected area said the park received an unprecedented boost in the number of bookings which also raised revenues. He said all major hotels and campsites were booked and so were the boats for UWA, Paraa Safari Lodge and G&C. The repairs and servicing of the ferry ended well in time ahead of the historical event and crossed hundreds of vehicles, said, Mr. Okello who joked that for the first time he witnessed traffic jam in the park . The park also hosted local and international journalists who en-

an experienced and comic interpretive guide known as George Atube from UK-Uganda Kitgum who told them a lot of history of the park and animal behaviour including their reproductive science which he refers to as Jig-jig. The journalists used the opportunity to visit the greater part of north and north western Uganda to confirm that the region is fully safe for tourism .Other areas of interest they visited included the Nyamulia rocks in Nebbi, Fort Patiko north of Gulu town and Emin Pasha fort along the Albert Nile as along as a cultural site where the Gipri and Labong are believed to have separated before some groups headed for Tororo and Kenya, the Alur to West Nile and the Luo to Acholi and Lango sub regions. During famtrip, the journalists and other visitors learnt about UWAâ&#x20AC;?s innovations including use of the wildlife card which is a cashless system of payment to access the national parks and activities there in, the planned online booking for the gorilla tracking permits and the planned introduction of night

game drives since UWA had acquired new game viewing trucks. During the eclipse viewing at Owiny Primary school, the President said Uganda is endowed with rich tourism biodiversity, stunning landscapes, beautiful water bodies, flora and fauna. He said wildlife populations had rebounded from dismal 1970s when political instability and poaching decimated animals while the creation of tourism police, recruitment of a reasonable ranger force and strict border controls had led to increased wildlife populations thereby boosting nature based tourism. Murchison has become a popular destination for high profile visitors including the President of Sri Lanka, the Queen of Bunyoro and Miss Tourism Uganda finalists. On November 22nd,2013,the King of Bunyoro and his cabinet will visit the park formerly named after his ancestor Kabalega during which UWA will launch their new state of the art game viewing vehicles .

A UWA staff briefing some members of the media. joyed boat rides to the Albert delta, bottom of the falls and an adventurous game drive along the Buligi circuit up to Tangi gate during which they sighted big mammals includ-

ing giraffes, buffalos, big herds of elephants, kobs and several species of antelopes and birds. The international and local journalists had lots of fun courtesy of

Uganda Wildlife Authority senior writer Jossy Muhangi with friends eagerly awaiting the moment.

Journalists enjoying a boat ride on River Nile.

Mr. Andrew Sseguya, the UWA Executive Director viewing the Eclipse at Owiny in Nebbi district.

NEWS

East African Business Week I November 11-17, 2013

Africa to grow by 6% in 2013 Recently African Development Bank (AfDB) President, Donald Kaberuka fielded questions by the OECD Observer publication and predicted African growth to stay at 6%, well above the global average.

ture funding gap which is put at $50 billion a year for the next 10 years, and which costs us an incredible 2% annual growth every year. Only 33% of Africans have access to sanitation, 40% to electricity, 66% to clean water– and we fall seriously short in finding cross-border solutions to our infrastructure needs. We are working hard on solutions. The 2013 proposal to launch the Africa50 Fund (funded first and foremost by African central bank reserves and African sovereign wealth funds) is more evidence of Africa taking charge of its development destiny.

nOECD Observer: The African economy has been enjoying an upsurge in recent years. How confident are you about the future? Yes, the continent has seen remarkable turnaround. GDP has trebled since the Millennium, and seven of the world’s ten fastest growing economies are in Africa. Kaberuka: We forecast at least 6% growth for 2013. But we must not confuse economic growth with economic transformation. Now, the challenge is sustainability–the human development indicators are too low, there are still serious pockets of fragility, and continent-wide we experience the restraints of the infrastructure gap. But we have identified a number of mega-trends which, if we manage them well, make me very confident about the future: natural resources, demographics, technology–and Africa’s ability to take advantage of new global poles of growth. We have a growing population (up by 2.2% a year, that’s double the figure in Asia), and we are rapidly urbanising (40% now, will be 70% by 2050). Geological mapping is bringing new discoveries of natural wealth; and information technology continues

Next year marks the 20th anniversary of the Rwandan genocide. As a Rwandan yourself, what lessons do you think can be drawn for Rwanda, Africa, and indeed, the wider world?

to leapfrog Africa forward, with the mobile phone revolution giving more access to information and lowering the costs of business. Nonetheless, the demographic dividend is not preordained–it depends on what is done today. What do you consider to be the two or three biggest policy chal-

lenges facing Africa’s economic development at present? Kaberuka: Although our economies grow, they don’t create enough jobs. That is why the African Development Bank has built its strategy for the period 2013 to 2022 on addressing those two big policy challenges, to ensure that already-strong growth

is shared, sustainable, and job-creating. In other words, we want growth which generates opportunities for all, without depleting natural capital, terrestrial, marine and bio-diversity. Remember that the continent’s ecological imprint has grown by 250% in 50 years. What underpins so much of this is the policy and practical challenges of filling the African infrastruc-

Kaberuka: Rwanda has come a very long way, not least through its people’s efforts and the support of partners. Its journey continues, as do other countries’. What are the lessons? I see three. First, no matter how bad the initial conditions, a country can make it if its people are determined. Second, and contrary to what one hears, foreign aid when effectively used can be useful, especially in the early phases, as was the case in Korea. Third, there is no standard toolbox to rebuild a country: history and environment play their role, but each country must chart its own course.

AfDB gives $8m UNICEF teams up with World Bank for trade desks WINNIE MANDELA

nLUSAKA, Zambia--THE Common Market for Eastern and Southern Africa (COMESA) and the African Development Bank (AfDB) last week signed a grant agreement worth $8.5 million for the Tripartite Free Trade Areas (TFTA) programmes in the region. The funds are for two projects, the Trading for Peace (TfP) project as well as COMESA, and East African Community (EAC) and the Southern African Development Cooperation (SADC) Tripartite Capacity Building (TCB) programme. Speaking at the signing ceremony in Lusaka, COMESA Secretary General Sindiso Ngwenya said there was need to use trade as mechanism for the promotion of peace in the region. Ngwenya said the funds would be used to install four new Trade Information Desks (TIDs), adding that since 2009 10 TIDs at various border posts of the Democratic Republic of Congo with Zambia, Rwanda and Uganda had been formed. “We shall use the same capacity of cross Border Traders Associations (CBTA) with the aim of ensuring that at least four TIDs will be fully

supported by the CBTAs within the next two years,” Ngwenya said. AfDB country resident director Fred Kwesiga said the funds would facilitate the scaling up of industrial research and significantly enhance the trade-related capacity of public and private sector actors. “The funds will also be used to expand the number of borders equipped with TIDs from the current 10 borders to about 14 and refurbish many of the existing ones. “It will also include a specific component which aims to fine-tune the implementation of the COMESA Simplified Trade Regime (STR) and facilitate Congo DR’s accession to the STR,” Dr Kwesiga said. At the same function a representative from the Canadian Embassy in Zambia Kumar Gupta said his country would continue supporting COMESA through AfDB. “The AfDB is the vehicle for African development looking at the projects they have continued to fund especially in the COMESA region,” he said. Mr Gupta said Canada would continue investing in Zambia’s extractive and manufacturing industries looking at the potential the country has.

nKAMPALA, Uganda- The World Bank together with UNICEF, the children’s agency, signed a Memorandum of Understanding (MOU) to work together in utilizing innovations to improve Uganda’s development in the various existing sectors through the use of refined ICT. According to officials from UNICEF, the partnership will ensure that innovations developed to improve the protection of children’s rights thus supporting the World Bank’s interventions to improve accountability across several sectors, including health, education and agriculture. “While significant progress has been made in all sectors, great inequities among children and across Uganda remain,” said Dr.Sharad Sapra UNICEF representative in Uganda. He also said that this partnership with the World Bank will ensure that innovations are more broadly used to realize the possibility of enhancing service delivery to vulnerable children and women in Uganda thereby accelerating the country’s equitable development With this Memorandum of Understanding, the World Bank and UNICEF in Uganda agree to collaborate on refining open source information

and communication technology tools for the purposes of both organizations. Ahmadou Moustapha Ndiaye World Bank Uganda country manager in his remarks said that both UNICEF and World Bank had agreed to jointly cooperate in carrying out activities related to innovative use of ICTs in various sectors in Uganda. “The World Bank recognized the potential of leveraging the existing ICT tools such as Ureport for citizen engagement and targeted beneficiary feedback for the purpose of improving Bank financed operations in various sectors”. He also said that government agencies and development partners in Uganda are experimenting with a wide variety of technologies to drive data-driven decision making, increase accountability in public service delivery and improve citizen engagement. “the World Bank plans to continue leveraging the existing innovative ICT tools developed by UNICEF to enable line ministries to integrate ICTs and real- time data into all development activities, build on the existing platforms and help move these activities toward national scale.” He said Ndiaye also noted that ICT is not only a key foundation for economic growth and environmental sustainability- it can have a direct, measurable impact on the lives and prosperity of people, whether they live in rural

communities or crowded cities. He said that “ICT can be fundamental to achieving the goals of eliminating extreme poverty and producing shared prosperity. ICT is essential to having the data, analytics and solutions delivery mechanisms, especially mobile, needed to realize this.” UNICEF has developed a range of innovative tools using custom-made hardware and open source software to improve service delivery to improve the lives of the most vulnerable children Evidence suggest that the ICT system has enabled in improving decision making, empowering citizens and strengthening data management thus enhancing social accountability, and enabling service delivery across sectors thus Improve government transparency Uganda’s level of technology use is one of the robust and comprehensive in Africa. The country is at the forefront of having government led multi stakeholder open ICT platforms that are starting to scale up to the national level The vision of the World Bank is, by 2030 a world where the percentage of extreme poor (those living on $1.25 a day or less) is less than 3% and where the remaining bottoms 40% have achieved economic well-being in a sustainable way which according to them cannot be achieved without fully embracing the transformative powers of technology and innovation.

TOURISM East African Business Week I November 11-17, 2013

Where to go in East Africa nKAMPALA, UGANDA - When deciding where to go in East Africa make sure you include a visit to at least a few of its best destinations. Go on safari in some of Africa’s famous parks; the Masai Mara and Serengeti. East Africa has some of the continent’s best treks. The most popular is Tanzania’s Mount Kilimanjaro. Lamu and Zanzibar are historically fascinating and their beaches aren’t too shabby either. For culture, you can’t beat Ethiopia’s Omo River Region or the rock churches of Lalibela. You can also track gorillas for a truly unique adventure. Masai Mara National Reserve The Masai Mara National Reserve is Kenya’s premier wildlife park. It was established in 1961 to protect wildlife from hunters. The Masai Mara is the reason many visitors come to Kenya and its beauty and abundant wildlife won’t disappoint. This guide to the Masai Mara will tell you what animals you can expect to see, the topography of the area, where to stay, how to get there, and what there is to do beyond the game drives. The Masai Mara is in southwestern Kenya on the border with Tanzania. The reserve is situated in the Rift Valley with Tanzania’s Serengeti Plains running along its southern end. The Mara River runs through the reserve (north to south) hosting plenty of hippos and crocodiles and making the annual migration of over a million wildebeest and hundreds of thousands of zebras an extremely dangerous undertaking. Most of the Masai Mara is made up of hilly grassland which is fed by plentiful rain, especially during the wet months between November and June. The areas bordering the Mara river are forested and are home to over several hundred bird species. This map will help orient you. The Masai Mara reserve is Kenya’s most popular game park because it’s relatively small yet it hosts an amazing concentration of wildlife. You are almost guaranteed to see the Big 5. Lions abound throughout the park as do leopards, cheetah, hyenas, giraffe, impala, wildebeest, topi, baboons, warthogs, buffalo, zebra, elephants, and of course hippos and crocodiles in the Mara River. The best time to go is between July and October when the wildebeest and zebra are at their highest number and offer plenty of food for lions, cheetahs, and leopards. The best time to view animals is either at dawn or dusk. Because the reserve has no fences you can actually see as much wildlife within its boundaries as outside in the areas inhabited by the Maasai tribes. In 2005/6 a visionary conservationist, Jake Grieves-Cook approached the Maasai who owned the land adjacent to the Reserve and offered to lease parts of it from them. In exchange, the Maasai promised to vacate the land and not graze their cattle on it. The land quickly reverted to dense grassland and wildlife is thriving. The Maasai are paid rent, and many families are benefiting from employment at some of the eco-friendly camps that

volcanoes. Despite the terrible genocide in the early 1990’s the country is fairly stable and the park permit system is running smoothly. The PNV was where Dian Fossey set up her base and research center. Tracking gorillas in the PNV is slightly less strenuous than at Bwindi since the gorillas move around a little less. The more open terrain also allows more light for better photo opportunities than in Bwindi. Check out my gorilla tracking experience in Rwanda. Democratic Republic of Congo The DRC also has a section of the Virunga Mountains park called the Parc National des Virunga. The DRC gorilla population suffered a major setback because several gorillas were brutally hacked to death in 2007.

WILDBEEST: Immigration of the wildbeest can be best witnessed at the Masai mara National Reserve

The Serengeti The Serengeti National Park in Tanzania offers the absolute classic African safari setting. The grasslands make the Serengeti fantastic for spotting lion kills because you can see the whole spectacle clearly. The migration of millions of wildebeest and zebra starts here, and because it’s much larger than the Masai Mara in Kenya. Ngorongoro Conservation Area The Ngorongoro Conservation area borders the Serengeti in northern Tanzania and includes the world’s largest crater which acts as a natural enclosure for almost every species of wildlife found in East Africa. This includes the very rare black rhino. The Ngorongoro Crater is where you’ll witness some of the densest population of wildlife in the world and it’s a truly amazing place for photographers. The Maasai still live within the conservation area, and it’s also home to Olduvai where some of man’s earliest remains have been found.

ATTIRE: Mursi man in Ethiopia have been set up. Tourist numbers and safari vehicles are strictly limited, which translates into a much better safari experience all around. Within the reserve, it’s not unusual to see 5 or 6 safari vehicles full of tourists taking photos of one lion with its kill. Omo River Tribes, Ethiopia With more than 50 unique tribes living in the Omo River Region of Southwestern Ethiopia, it’s a fascinating destination for those interested in African culture. The remote location, which is barely accessible by 4 wheel-drive, has meant that traditional customs and beliefs are very much intact for most of these tribes. The Kalashnikovs slung across some warriors’ backs can be a little disconcerting but the tribes are friendly and this is often the only western accessory you’ll see them wear. Most tours include spending a few

BWINDI: Mountain Gorillas are a common site in EAC nights in each village and these are not luxury camps by any means. Most tours also include a section down the Omo River which is great for whitewater rafting. Gorilla Safaris in Africa With only around 880 mountain gorillas left in the world, seeing them in the wild is something only a few people will ever have the chance to experience. About 480 mountain gorillas inhabit an extinct volcanic region called the Virunga Range along the borders of Rwanda, Uganda and the Democratic Republic of Congo (DRC) . The other 400 or so mountain gorillas inhabit a nearby area of Bwindi in Uganda, a thick rainforest. Uganda There are two parks in Uganda, the Mgahinga Gorilla National Park and Bwindi Impenetrable National Park where you are able to go gorilla tracking.

Mgahinga is situated on the extreme southwest corner of Uganda on the slopes of the Virunga Mountains. It borders the DRC and Rwanda. The park only covers 28 square miles so it’s quite small, but besides gorillas you can also see leopard, buffalo, bushbuck and golden monkeys. Bwindi is in south-western Uganda and is home to about half of all mountain gorillas. The park covers about 200 square miles of extremely dense rainforest and is a proclaimed World Heritage site. Part of the fun of tracking gorillas here is trying to follow them through the dense foliage. You can also get to see chimpanzees as well as some spectacular bird life. Rwanda Rwanda has one park in the North of the country encompassing its share of the mountain gorilla population: the Virunga National Park or Parc National des Volcans (PNV). The park covers an area of about 46 square miles and encompasses six

Lake Manyara Lake Manyara is a relatively small national park but it’s incredibly diverse. Lake Manyara boasts plenty of elephants, tree-climbing lions (getting rarer), leopards, giraffes and more than 400 species of birds including flocks of pink flamingos. Tarangire National Park Tarangire, like Lake Manyara, is often combined with a visit to the larger, better known Serengeti and Ngorongoro parks. But during the dry season, (June to October) the river beds just teem with animals and it is well worth a trip. Tarangire is a good place to enjoy a walking safaris and an excellent place to view elephants. Be prepared to swat tsetse flies here, at certain times of the year they can get annoying. Mount Kilimanjaro At 19,336 feet, snow-capped Mount Kilimanjaro in Tanzania is Africa’s highest peak. It is the world’s tallest walkable mountain, and what a walk it is. You go through 5 different climatic zones to reach the summit. http://goafrica.about.com

ENTERTAINMENT

East African Business Week I November 11-17, 2013

THIS WEEK

ON DSTV

nM-Net SERIES REALITY (DStv Channel 114) Below the Deck:This new exciting series takes a behind-the-scenes look at those who work on luxury boats used by the fabulously rich. The upstairs and downstairs worlds collide when this young and single crew, known as “yachties,” live, love, and work together on-board the luxurious, privately-owned yacht while tending to the ever-changing needs of their wealthy, demanding charter guests.Thur 14 Nov at 21:30 CAT.

EA writer wins Accolade BY WINNIE MANDELA

the Crow”, “A Grain of Wheat”, “Petals of Blood”, and plays such as “I Will Marry When I want” among others. For his literary accomplishment, Ngugi has received many awards. He received the Distinguished Africanist Award from the New York African Studies Association, the Fonlon-Nichols prize , the Zora Neale HurstonPaul Robeson Award , the Lotus prize for Afro-Asian literature , UNESCO first prize , and the East Africa Novel Prize and so many others The Kenyan author is one of Africa’s foremost writers, thinkers and commentators; a

nKAMPALA, UGANDA - Celebrated East African historical writer Ngugi wa Thiongo won an award from the university of California Irvine medal an annual award for the university member staffs who have shown exemplary performance. Ngugi has taught and directed literature programmes at the university for over 10 years The 75 year old writer is a Kenyan famous for his books such as “Weep Not Child”, “The River Between”, “Wizard of

GNL, Khalifa fires up Mirinda funfests BY BAZ WAISWA

nThe Queen Latifah Show: Welcome actress, musician and now talk show host, Queen Latifah in this daytime talk variety show which showcases her extraordinary range of talents as a global entertainment icon. The Queen Latifah Show is the perfect platform for this multitalented host to entertain, inspire and create television that matters. Tune in on Mondays at 18:30 CAT.

n M-Net SERIES ZONE (DStv Channel 11 Life After Top Chef (Season 1):The reality show explores the off-camera experiences of favourite cheftestants, Richard Blais, Jen Carroll, Spike Mendelsohn and Fabio Viviani. The fan favourites are in the process of reaching some big milestones, in both their personal and professional lives. While Richard attempts to open a fine dining restaurant in Atlanta, Jen sets out to open her dream restaurant in Philadelphia. It starts on Saturday 16 November at 18:30 CAT.

progressive and socially engaged intellectual. His works stand out for their unequivocal criticism of colonialism, the subjugation of African cultures by the imperiallyminded West, and the oppression of the African masses by the ruling neocolonialist elite.

nKAMPALA- UGANDA -Hip Hop artist GNL Zamba and new kid on the block Khalifa Aganaga fired up their fans duringt the Miranda funfests Free Your Fun Side countryside tour. The first point of call for the Mirinda Funfests was Hoima and besides the other activities of the day like face-painting, acrobatics, deejay mixing, comedy, and soda drinking competitions, the headliner of the day was Khalifa Aganaga, the new boy on the block, whose popularity has spread fast like the Kabale floods. Khalifa put up a powerful performance, singing his songs like Ekitangaza and Oyitangayo, much to the chagrin of the Hoima fans, many of whom had never seen him in flesh. With Khalifa and Mirinda Funfests leaving Hoima revelers yearning for more, the next stopover was Masindi, a town that lies in the shadows of Murchison Falls National Park. Here, Baboon Forest CEO, GNL Zamba entertained the fans with most of his popular songs and this was under the eclipse. A week earlier, Masaka

and Mbarara were the destinations for the funfests and the venues were the erstwhile popular Recreation Grounds and Independence Grounds respectively. There were performances from GNL Zamba and Big Eye. The Mirinda Funfests started about three weeks ago in Gulu and Lira districts and at the weekend the funfests were in Jinja and Mbale.This week the funfests will be taken to Fort Portal. Mr Innocent Tibayeita, the head sales and marketing at Crown Beverages Limited, says the innovation is intended to put to life the “Free Your Fun side” thematic campaign for brand Mirinda. “The funfests will reinforce brand Mirinda’s position as the consumers’ favorite soda that gives them more choices and brings out the fun side out of them,” says Tibayeita.

DStv launches spice TV and HIP TV in november nSo much more music, fashion and lifestyle television is in store as two new channels launch on DStv. MultiChoice is pleased to announce the launch of fashion, beauty and lifestyle channels, Spice TV and Hip TV on DStv from Tuesday 5 November. All DStv subscribers will receive Spice TV on channel 192 and Hip TV on channel 324, adding to the variety of entertainment on the platform. Hip TV is an urban music and lifestyle channel that was borne out of the need to create rich, unusual content for television viewers across Africa and beyond.

The channel is set to deliver exciting programmes with breath-taking twists and a refreshing break from the norm. DStv audience will now get an even greater variety of shows and exciting programmes including shows such as Live It Up, Red Carpet, Star Stuck, Exclusive Interview, Dead Curious, I thought you knew and Caught Out there. Fashion and beauty channel, Spice TV is dedicated to exploring African fashion and culture on the continent, showcasing the latest trends, major fashion shows, designer events and profes-

sional highlights of our fashion industry professionals. Spice offers the most comprehensive and fastest reviews of fashion in Africa and internationally. The programme line-up includes shows such as Spice Runway, Diary of a Muse, Spice Focus and Fashion 360. MultiChoice Africa’s CEO, Nico Meyer says “We are pleased to be launching two new home grown channels - Spice TV and Hip TV on DStv and we are certain that the launch of these two channels will provide subscribers with a greater variety of entertainment made in Africa for Africa”.

Ngugi wa Thiongo

MOVIE REVIEW: Orson Welles‘s Citizen Kane BY WINNIE MANDELA nKAMPALA- UGANDAcompared to cop movies or love stories, movies about business are few and far between. Business settings may lack romance and car chases, but some of the best movies of all times have been about business. Here is one of the best ever business movie. Citizen Kane is a runaway choice for any movie lover. It is Orson Welles first feature film which he directed, produced and co- wrote as well as playing the title role that was proved to e his most important and influential work, a ground breaking drama loosely based on the life of William Randolph Hearst which is frequently cited as the finest American film ever made.About the movieAging newspaper entrepreneur Charles Foster Kane (Orson Welles) dies in the sprawling Florida estate after uttering a single enigmatic final word “Rosebud” and newsreel

producer Rawlton (Phil Van Zandt) sends reporter jerry Thompson (William Alland) out with the assignment of uncovering the meaning behind the great man’s dying thought.As Thompson interviews Kane’s friends, family and associates, we learn the facts of Kane’s eventful and ultimate tragic life. His abandonment by his parents (Agnes Moorehood and Harry Shannon) after he becomes the heir to a silver mine, his angry conflicts with guardian master financier Walter Parks Thatcher (George Coulouris), his impulsive decision that it would be fun to run a newspaper with the help of school chum Jedediah Leland (joseph Cotten) and loyal assistant Mr. Bernstein (Everest Sloane), his rise from scandal sheet publisher to the owner of America’s largest and most influential newspaper chain, his marriage to socially prominent Emily Norton (Ruth Warrick), whose uncle is the president of the United States.

EAC

East African Business Week I November 11-17, 2013

EAC as a Single Tourist destination “

nARUSHA, TANZANIA - Ministers responsible for Tourism from the EAC Partner States and the EAC Secretariat today hosted an EAC joint event to promote the region as a single tourist destination at the World Travel Market (WTM) 2013 in London. Addressing guests at the event, Hon. Maria Mutagamba, Minister of Tourism, Wildlife and Antiquities, Uganda and Chairperson of the EAC Sectoral Council on Tourism and Wildlife Management, said the East African region was a secure and safe destination of wonders and opportunities. She highlighted that this year at WTM, the EAC is focusing on three main aspects: regional achievements to date and where the region is going; safety and security; and a new innovative way to promote the region as a single tourist destination. The EAC Partner States have embarked on the process of a Common market protocol facilitating free movement of people, skills, goods and services. This is a great milestone that will see the enhancement of trade and movement of goods as well as services. In addition, an achievement favored in the hospitality and travel industry, is the removal of non-tariff barriers and the enhancement of a free trade area as well as the anticipated introduction of a single currency under an EAC Monetary Union. Mutagamba said: “The tourism sector has also started harmonizing hospitality service policies and laws in the region in preparation for full cooperation and to sustainably utilize our resources as a region.” Harmonization of hospitality

The EAC Partner States have embarked on the process of a Common Market Protocol facilitating free movement of people, skills and goods and services

EAC TOURISM: Discussions at the Kenya High Commission in London on the Proposed programme services includes a focus on quality and not quantity. The Minister said sustaining the natural resources in the region requires undertaking measures that will ensure the conservation and sustainable utilization of wildlife and other tourist sites in the region. With regard to safety and security in the region and taking note of the recent terrorist attacks in parts of the region, the Ministers responsible for Tourism from the EAC Partner States pronounced the urgent need to fully address the negative image portrayed and subsequent negative travel advi-

sories issued. The Ministers pledged to employ a positive outlook on the regional approach taken to combat security challenges about the East African tourism destinations. They implored Tourism Trade Associations to ensure continuous dialogue with all Commonwealth member countries and to advise Commonwealth member countries to notify the EAC Secretariat before publishing any travel warnings. Promotion of the EAC as a Single Tourist Destination is an ongoing task and innovative strategies are sought

to achieve this objective. The Ministers this year, introduced a new product that will be a powerful platform to collate and communicate credible regional information to the Tourism/travel sector; ‘The Traveler’s Roundabout East Africa.’ The publication has been circulated to the EAC zone, embassies, high commissions, other missions abroad and key stakeholders. It will be distributed to regional airlines, especially those that endeavor to promote the EAC as a Single Tourist Destination. It will also be available on the EAC website, providing pertinent and strategic in-

AfDB holds Capacity Training programme on Accountability nDAR ES SALAAM, TANZANIA - On average 40 percent to 60 percent of public expenditure in Africa is for education , health and the social sercive. This calls for improved governance and accountability in social service delivery. Inefficiencies in the use of resources in education and health have a negative impact on human capital, with drastic consequences for inclusive economic growth. In an environment of declining aid, achieving greater value for each dollar invested is critical. In line with its Strategy for 2013-2022 and its agenda on Skills and Technology, the AfDB has developed a Value for Money Program to build the skills of key stakeholders to address inefficiencies in social spending in African countries. The first capacity building training on value for money, sustainability and accountability was held in Dar es Salaam recently.

Dr. Agnes Soucat, AfDB To effectively translate their mandates to action, senior officials from Ministries of Finance, Health, and Education, Civil Society Organizations and development partners from Kenya, Tanzania, Uganda, Rwanda and Zambia participated in the programme. Tanzanian Minister of Finance, Dr. William Ngimwa, last year said: “Sustainable and accountable investments in health will add value

for money and will greatly improve the quality of our lives, our people and our countries. There is ample evidence on the continent that show that this is doable.” Some 50 African Ministers of Finance and Health endorsed a Tunis Declaration during the High Level Dialogue. It set the foundation to enhance leadership and collaboration between Ministries of Finance and Health in Africa and leverage the role of parliamentarians and Civil Society Organizations (CSOs) in ensuring value for money for investments made in social sectors. Agnes Soucat, AfDB’s Director for Human Development said: “The Bank has committed to put the recommendations from the Tunis declaration into practice. This is why we have mobilized partners and funding to design a training course to improve value for money in social sectors in Africa - which is the first of its kind.” The AfDB in collaboration with the Harmonization for Health

in Africa (HHA), East African Community, Collaborative Africa Budget Initiative (CABRI), the Bill and Melinda Gates Foundation, the Clinton Health Access Initiative as well as the Norwegian Agency for Development Co-Operation (NORAD) and GAVI organized and financed this four-day event. Some 65 participants will be exposed to various strategies and tools to improve value for money in social sectors. Amb. Richard Sezibera, Secretary General of East African Community said :“One of the best examples to improve value for money and health outcomes is Rwanda. The country has been able to transform what was considered to be one of the weakest health care systems into one that excels in socio-economic outcomes through application of instruments such as Result Based Financing (RBF).” AfDB

formation on the various investment opportunities in the region. In a bid to promote the region as a single tourist destination, the EAC WTM Joint Event was preceded by a meeting of the High Commissions of Uganda, Rwanda, Kenya and Tanzania and the Embassy of Burundi in London on November 1st. An exclusive interview of the Ministers responsible for Tourism in the EAC Partner States on BBC-London was featured on Focus on Africa on November 5th at 17.30 GMT . EAC

FACT FILE AfDB Founded 1964 The overarching objective of the African Development Bank (AfDB) Group is to spur sustainable economic development and social progress in its regional member countries (RMCs), thus contributing to poverty reduction. The Bank Group achieves this obective by: Mobilizing and allocating resources for investment in RMCs; and Providing policy advice and technical assistance to support development efforts. In 2000, all multilateral development institutions have agreed on a same set of objectives, called the Millenium Development Goals (MDG). They are: Millennium Development Goals Eradicate extreme poverty and hunger Improve maternal health Achieve universal primary education Combat HIV/AIDS, malaria and other diseases Promote gender equality and empower women Ensure environmental sustainability Reduce child mortality Develop a global partnership for development. http://www.afdb.org

AGRICULTURE

East African Business Week I November 11-17, 2013

Boosting agriculture through ICT “

BY AGNES BATETA

nKIGALI, RWANDA - Agriculture experts around the world last week agreed to scale up agro investment across the African continent. This was agreed upon at a Global ICT conference on Agriculture that took place at the Serena hotel Kigali. The theme was “The Digital Springboard for Inclusive Agriculture,” developed to facilitate agriculture through ICT. Agro scientist said such a development in agro technology, market research and accessibility by the farmers will increase productivity especially in Rwanda. Michael Hailu, Director Technical Centre for Agricultural and Rural Cooperation (CTA) said: “We need to upscale from the infrastructure investment available within the sector, bring it down to rural farmers’ problems which include climate change, pests and access to market information.” Hailu said agriculture faces a lot of new challenges that have hindered production and kept it at a minimal level. This means farmers cannot compete at the international market. Among the challenges Hailu noted is the fake agro inputs, limited agro research and lack of technological capacity to transform agriculture to a more profitable economic activity. Currently 8 countries allocate 10

We need to upscale from the infrastructure investment available within the sector, bring it down to rural farmers’ problems which include climate change, pests and access to market information

AGRO INVESTMENT: Farmers are agitating for improvements in agro technology and market research percent of their national budget to agriculture as agreed upon in 2003. The countries include Niger, Guinea, Senegal, Ethiopia, Malawi, Burkina Faso and Rwanda.

It was noted that for the case of Rwanda, she managed to invest about 11 percent of the national budget in agriculture. The funds are allocated to the Ministry of Agriculture to

improve agriculture. The conference attracted over 400 people. It was hosted by the Ministry of Agriculture, in collaboration with the Ministry of Youth and ICT, the

Uganda to host 6th International Nitrogen conference in Kampala BY SAMUEL NABWIISO nKAMPALA, UGANDA-Uganda will this year host the 6th international conference on Nitrogen. The conference will take place from November 18th to 22nd at Speke resort Hotel Munyonyo in Kampala. The conference has been organized by Makerere University College of Agriculture and Environmental Science, International Institute

of Tropical Agriculture, International Nitrogen Institute and the African Nitrogen centers. Dr. John Stephen Tenywa of College of Agriculture, Makerere University, says the meeting is aimed at designing a more productive economic and sustainable food and energy production system to meet the challenges of the growing global population in a changing environment. The conference will address requirements

NITROGEN: It can be used to maintain environmental quality and maximise returns

for the creation of an enabling environment for the development of fertilizers industry in subSahara Africa. Tenywa said: “The global population is expanding at high rate but food production is not increasing. This is because of exhausted soil nutrients like Nitrogen.” He said although some African countries are using less Nitrogen in agriculture, their counterparts in Developed Countries are using excessive Nitrogen in form of inorganic fertilizers. Such excessive utilization of Nitrogen has not been monitored. He said: “Although Nitrogen is essential for both crops and human beings, it is necessary to monitor it’s usage to avoid degrading the environment because nitrogen produces greenhouse gasses like nitrogen oxide.” The conference is expected to be attended by over 200 participants including scientists, agriculturalists, environmentalists, industrialists, economists, policy implementers and other practitioners. The theme is: ‘Let us aim for Just Enough Nitrogen: Perspectives on how to get there for too much and too little regions.’ Tenywa said: “Increasing the levels of nitrogen strengthens and supports plant roots, enabling plants to take in more water and nutrients. This allows a plant to grow rapidly and produce large amounts of succulent, green foliage, which in turn can generate bigger yields, tastier vegetables, and a crop that is more resistant to pests and diseases and other adverse conditions.”

Technical Center for Agricultural and Rural Cooperation, the European Union and the joint international institution of African, Caribbean and Pacific group of states.

FACT FILE NITROGEN Nitrogen fertilizers are most effectively used as part of a balanced fertilization plan that aims to maximize economic return and maintain environmental quality. Nitrogen contributes primarily to grain yield and forage biomass production, and at the same time to protein. Optimum economic response to applied nitrogen fertilizer requires that the nitrogen application rate is balanced with moisture and the availability of other plant nutrients. Soil testing to determine availability of nitrogen along with other nutrients and the assessment of stored soil moisture is therefore critical to selecting the appropriate rate of nitrogen fertilizer to match crop yield potential. For dryland annual crops, much of the nitrogen uptake that contributes to yield occurs in the first few weeks following germination, and is complete after about two months. Maximum nutrient uptake occurs earlier than maximum biomass production. After maximum biomass is achieved, nitrogen uptake contributes mainly to protein content. Excess moisture can reduce yield due to leaching losses of nitrate, as well as loss of nitrates by conversion to gases that escape from the soil. High levels of available soil nitrogen early on in the growing season can promote vegetative growth and water use. http://www.agriculture.gov.sk.ca

NEWS

East African Business Week I November 11-17, 2013

Wananchi undergoes changes BY HUMPHREY LILOBA nNAIROBI, Kenya-- Wananchi Group Holdings Limited, the operators of the ZUKU pay-TV brand have announced the appointment of Richard Alden as new Group CEO of the regional media and ICT Company. Alden will be charged with driving the company’s growth and expansion in the east african region in the wake of increasing competition. Alden who has been the Group’s Chief Operating Officer takes over from Richard Bell who has overseen the growth of the company over the last two and a half years. Mr. Bell will take a new role as a Non-Executive Vice Chairman of the Board. While announcing the management change, Group Chairman of the Board of Directors, Ali Mufuruki lauded Mr. Bell’s role in steering the company since founding in 2006 and especially his efforts in fundraising and company turnaround. Alden is an old hand in the industry and brings with him 20 years of experience in the TMT industries in emerging markets in Europe and South America. From 1998 to 2009 he was the Chief Executive Officer and a founding director of ONO, the largest cable tele-

vision and telecommunications operator in Spain. He was also the CFO of Groupe Videotron, Optel Inc. “Through his stellar leadership, Mr. Bell has seen the company rise from a mere idea in 2008 to a dominant player in its field, not only in East Africa but across large swathes of the African media and technology landscape. Your leadership, experience and extensive knowledge of the industry will indeed be a valuable asset to the Board and the company as a whole,” Mufuruki said. Mr. Bell will be remembered for his role in the creation of WGH where he spearheaded the founding in 2006 of East Africa Capital Partners (EACP), the first Venture Capital Fund Manager focused exclusively on the African Technology, Media and Telecommunications sector. He led EACP when it raised its first fund dubbed Africa Technology Media and Telecommunications (ATMT) Fund 1, LLC in 2008 and joined forces with the late James Gachui, Richard Essex and Mark Schneider to become the founding investors and promoters of WGH in the same year. In 2009 the Zuku Brand consumer retail triple play and pay TV brand was born. “I am very delighted to have been part of the growth of this great company. I am now going back to leading EACP in rais-

ing its next fund,” Bell said. Under his watch, Bell saw the company achieve significant milestones among them increasing the capital base of the company by double to nearly US$ 300m, making WGH a major the dominant VSAT data provider to the corporate market through its SimbaNet brand and taking a significant market share of the carrier of carriers business through Wananchi Telecom.

Other highlights of his tenure include making WGH a dominant VSAT wholesale provider to resellers across Africa through its iSat brand, growing its cable Triple Play Services in Kenya in terms of network coverage, subscriber numbers and quality of service, launching DTH Pay TV services in 3 countries in East Africa and growing the number of linear Zuku Channels by its media group from 6 to 9. “Richard has done more than we asked

him to do and has done it in record time under some of the most challenging circumstances, considering much of the fundraising was done in the aftermath of the global financial crisis in 2008 when it was extremely difficult to attract investments especially into the TMT sector in Africa. Today we are happy to see that the company is sitting on a solid foundation and ready to move to the next level,” said the Chairman.

Tanza nia Ports Authority

INVITATION FOR TENDER 1.This invitation for Bids follows the General Procurement Notice for the year 2 0 12 / 13 which appeared in the Daily Newspaper of 16 th August 2 0 13 . 2 .Tanzania Ports Authority (TPA) has set aside funds in its 2 0 13 / 2 0 14 budget to cover for Supply and Commissioning of Motor V ehiclesas follows:

S/NO Lot: 1 Lot: 2

DESCRIPTION 4WD Pickup Double Cabin Cesspit Emptier (10,000)

QUANTITY(PCS) 1 1

2.TPA now invites sealed tenders under National Competitive Bidding procedures specified in the Public Procurement (Goods, Works, Non Consultant Service and Disposal of Public Assets by Tender) Regulations, 2005 Government Notice No. 97. 3.Bidders are allowed to quote for a single lot or a combination of lots but in each case Bidders must quote for all items and quantities specified in each lot. 4.A complete set of the tendering document may be obtained by interested tenderer’s from the Office of DPS Room No.48 on the 2nd oor of TPA Building from 09.00 a.m. to 16.00 p.m. local time from Monday to Friday excluding Public olidays. AND: Upon payment of a non-refundable fee of TZS 100,000.00. Payment should be either by certified cheque, banker’s draft, banker’s cheq ue or cash. 5.Tanzania Ports Authority will evaluate the tenders and award the contract to the most competitive Tenderer. 6.Tenders dully completed in one original plus two copies should be submitted in plain sealed envelopes clearly marked “TENDER FOR SUPPLY AND COMMISSIONING OF MOTOR VEHICLES” and addressed to: The Secretary, Central tender Board, Tanzania Ports Authority, P.O. Box 9184, DAR ES SALAAM, TAN ANIA Or deposited in the Tender Box which is in Room No. 48 on the 2nd Floor of TPA eadquarters building, One Bandari Road, before the deadline for submission of bids. 7.Tenders will close on 12th December 2013 at 10 .0 0 a.m. local time and will be opened publicly soon thereafter in TPA conference Room 39 on the 2nd oor. Bidders and/or their Representatives who wish to witness the opening are welcome to attend. 8. The tender must be accompanied by a tender security of 3% of the bid price in the form of an unconditional Bank Guarantee. Bid Securing Declaration and Insurance Bonds will not be acceptable. Tenders not accompanied by a tender security will be rejected. 9. Telephone, Telefax and late bids will not be accepted. Bids not received and opened during the public opening ceremony shall not be accepted for evaluation irrespective of the circumstances. 10 .Note that Tanzania Ports Authority is not obliged to accept the lowest or any Bid.

ZUKU pay-TV poster

Office of the Director General, Tanzania Ports Authority, P.O. Box 9184, DAR ES SALAAM, TANZANIA. Tel No. 255 022 2134 712 Fax No: 255 022 2124 575, E-mail: dps tanzaniaports.com

FINANCE

East African Business Week I November 11-17, 2013

Kenyan banks rake in profits BY HUMPHREY LILOBA n NAIROBI, Kenya

enyan banks continued raking in massive profits for the thrid quarters despite reports of high loan defaults due to the prevailing high interest rates. Family Bank last week joined the likes of Equity, KCB, Barclays and Standard Chartered posting a 138% rise in profit before tax on the back of increased lending activities and growing customer numbers. The Group returned Ksh 1.226 billion in pre-tax profits, surpassing its own target for the year and for the first time surpassed the Ksh 1 billion earnings mark. The growth rate is the fastest posted by any Kenyan bank this quarter. Compared to the Ksh 507 million earned over a similar period last year, Ksh 311M in quarter one 2013 and the Ksh 703.3 million earned in the quarter ended June 2013, this is the best performance reported by the bank in the last two years and by extension also in its entire 29 year history. The sterling performance drives up total bank assets by 24% to Ksh 39Billion from Ksh 31 Billion as at December 2012, with the loan book growing a generous 42% from 19.8Billion to Ksh 25.5Billion. This was contributed to largely by an expansion in bank’s deposits safe from Ksh 24.6Billion in December 2012 to Ksh 31.1B as a faithful 1.3 billion customer base stayed in the family. From more than 70 branches strewn across the country, the bank has earned Ksh 3.75 billion from lending activities. Non-interest revenue increased to Ksh 1.26 billion against to Ksh 945.8 million in a similar period last year, boosted by increased activity on the Pesa Pap! mobile banking platform and introduction of new services with the going live of PesaPoint on its ATM network countrywide. Family Bank can now serve customers with cards issued by over 32 banks that are members of the PesaPoint network. In addition, over 17 million Safaricom customers can now get private self service M-PESA transactions at its ATMs. Speaking while announcing the results, Family Bank CEO attributed the growth to a combination of factors including sound strategy, fair economic and political climate and internal investment by the bank in its human resources. “The good performance of the bank indicates that our goal to become a tier 1 bank is well on course. To celebrate this achievement, we are increasing our investment in people and technology to ensure the bank continues to reap more rewards going forward,” said CEO, Peter Munyiri. Munyiri said the bank leadership was confident it had the right resources to propel it towards regional expansion and to embark on a wider

BUSY MAKING MONEY: Being the region’s financial capital Nairobi has the biggest concentration of banks. FILE PHOTO. Pan-African agenda. “It’s a good time to be with Family Bank. We have completed major investments in internal programs and ensured that the right resources are in place for our larger expansion plans,” he said. Kenya’s banking sector is comprised of 43 commercial financial institutions, along with microfinance institutions (MFIs) and Savings and Credit Cooperatives (SACCOs). Efforts to increase financial inclusion through the Microfinance Act of 2006, which regulates deposit-taking MFIs, and government support for mobile banking, has contributed to 40.5 percent of the adult population in Kenya gaining access to “formal” financial services. Youth, however, have limited access to savings products due to age restrictions on operating a bank account without parental consent and lack of national identity cards, resulting in only 13 percent saving. Meanwhile, the State Bank of Pakistan has granted due diligence permission to MCB Bank for proposed acquisition of a Kenyan

bank. According to media reports MCB Bank Limited has shown interest in acquiring a bank in Kenya to expand its overseas operations and has successfully got a No Objection Certificate (NOC) from the central bank to conduct due diligence of a small bank in Kenya. For last few months, MCB was looking for a bank in Kenya for expansion of its foreign country network and finally it found a small bank in Kenya, which is for sale. After working out the financial market of Kenya, MCB has decided to buy one of the banks in Kenya and accordingly it applied with the SBP for a NOC to conduct due diligence. The MCB management has not disclosed the name of the bank. The SBP had granted permission to MCB a few days ago for due diligence of Kenyan bank, they said and added that presently, the acquisition of the bank is on very initial stage and will take a few months to mature the deal. The due diligence will take some four to

six months and another NOC will be required from the regulator (SBP) if both parties (MCB and Kenyan bank) agreed on sale-purchase agreement. MCB is the one the largest banks of Pakistan and intends to expand it domestic and overseas operation by acquiring different financial institutions that are on sale. Previously, MCB also applied for the due diligence of HSBC, RBS-Pakistan operation and consumer financing portfolio of Citibank. In addition, it was also willing to open a branch in India as well, however it failed to get an NOC from the SBP for branch expansion in India. MCB Bank Limited, with more than 60 years of experience as one of the leading banks in Pakistan, was incorporated on July 9 in 1947. MCB was nationalised along with other private banks in 1974 as part of Government of Pakistan’’s economic reform movement and was later privatised to Nishat Group led consortium in 1991. MCB has presence in Dubai (UAE), Bahrain, Azerbaijan, Hong Kong and Sri Lanka with overseas network of 9 branches.

India-based Bharti to buy Warid Congo BY EMMA ONYANGO

nBRAZAVILLE, Congo-Bharti Airtel, a telecommunications company with operations in 20 countries across Asia and Africa, last week announced that it had entered into a definitive agreement with the Warid Group to fully acquire Warid Congo SA. According to a press statement seen by the East African Business Week, the agreement is subject to regulatory and statutory approvals. The agreement marks the second in-country acquisition by Airtel in Africa after it acquired Warid’s Uganda operations earlier this year. According to reports, the latest

acquisition will make Airtel the largest mobile operator in Congo Brazzaville with around 2.6 million customers. Statistics show that Airtel is currently the second largest operator in the country with about 1.6 million customers, while Warid is the third with around one million customers. The agreement aims to bring together the strengths of Airtel and Warid in Congo Brazzaville and benefit customers in the form of affordable tariffs, 2G/ 3G network, voice and data among others. Airtel Uganda, Managing Director, V.G Somasekhar commenting on the acquisition said; ‘The acquisition of Warid in Uganda was groundbreaking. The merger in here was

ultimately a move to reinvest in the business which is a good sign, allowing for further development in infrastructure. Our experience has seen customers benefit from marked improvements in services levels, product innovation, quality and affordable prices. ‘The Congo market can look forward to the same improvements as they consolidate the two businesses.’ Speaking on the agreement, Mr. Manoj Kohli, MD and CEO Bharti Airtel said, “This acquisition is in line with our stated strategy of strengthening our market position through in-country acquisitions, as and when suitable opportunities come along.

We are at an advanced stage of successfully integrating Warid’s Uganda operations with that of Airtel and look forward to a similarly swift transition in Congo Brazzaville as well. We would like to express our deep gratitude to the Government and look forward to its support to this deal. ” Warid Congo, Brazzaville, Board Member, Sriram Yarlagadda, said, “This agreement creates a win–win situation for the customers and provide them with an opportunity to be part of one of the largest mobile services providers in the world. On this occasion, we would also like to express our sincere gratitude to the Government for its support and look forward to its continued

cooperation towards a successful transaction” However, Airtel’s acquisition of Warid operations in Uganda has left a sour taste in the mouths of some of Warid customers who claim that ever since the ‘merger’, there has been an increase in the prices of some products. Joseph Kasaija, a Warid telecom customer in Kireka, a city suburb sums it up; “Before this ‘marriage’ or take over…or whatever it is that they call it, I used to enjoy cheap voice and data services. Now, they have sliced the minutes I used to get and internet bundles have become more expensive.” Airtel is the largest provider of mobile telephony in India.

BUSINESS INFO

East African Business Week I November 11 - 17, 2013 DAR ES SALAAM - DSE Date Company

Weekly Trends (EA Stock Exchanges) DSE ALL SHARE INDEX

USE ALL SHARE INDEX

1,880.00

PRICES AS AT

8-Nov-13

1-Nov-13

7-Nov-13

6-Nov-13

5-Nov-13

4-Nov-13

3-Nov-13

2-Nov-13

1-Nov-13

8-Nov-13

7-Nov-13

6-Nov-13

5-Nov-13

4-Nov-13

3-Nov-13

2-Nov-13

1-Nov-13

Financial markets Nairobi (NSE)

SECURITY

16-Oct-13

1,590.00

1,825.00

RSE ALL SHARE INDEX

24-Oct-13

1,595.00

1,830.00

133

USE ALL SHARE INDEX

1,600.00

23-Oct-13

1,835.00

1,605.00

22-Oct-13

1,840.00

7-Nov-13

133.5

DSE ALL SHARE INDEX

1,845.00

6-Nov-13

NSE ALL SHARE INDEX

5-Nov-13

134

1,850.00

21-Oct-13

1,610.00

1,855.00

20-Oct-13

1,860.00

134.5

131.6 131.5 131.4 131.3 131.2 131.1 131 130.9 130.8 19-Oct-13

1,615.00

18-Oct-13

1,620.00

1,865.00

17-Oct-13

1,870.00

4-Nov-13

135

Nov 7 2013 Nov 7 2013 Nov 7 2013 Nov 7 2013 Nov 7 2013 Nov 7 2013 Nov 7 2013 Nov 7 2013 Nov 7 2013 Nov 7 2013 Nov 7 2013 Nov 7 2013 Nov 7 2013 Nov 7 2013 Nov 7 2013 Nov 7 2013 Nov 7 2013 Nov 7 2013

RSE ALL SHARE INDEX

1,625.00

1,875.00

3-Nov-13

135.5

2-Nov-13

NSE ALL SHARE INDEX

PREVIOUS PRICE

% CHANGE

23.25 87.00 120.00 500.00 26.25 13.55 214.00

23.25 94.00 120.00 500.00 26.25 13.70 214.00

0.00 -7.45 0.00 0.00 0.00 -1.09 0.00

24.00 13.50 12.50 5.55

24.00 13.50 12.50 5.60

0.00 0.00 0.00 -0.89

18.65 82.00 189.00 34.25 27.50 112.00 46.25 21.50 59.00 305.00 18.35

18.55 82.00 189.00 34.25 27.50 114.00 47.50 20.50 59.00 305.00 18.40

+0.54 0.00 0.00 0.00 0.00 -1.75 -2.63 +4.88 0.00 0.00 -0.27

3.65 20.25 12.95 15.00 313.00 58.00 27.00 45.00 21.50

4.00 20.25 12.35 15.05 313.00 56.00 27.00 46.00 21.25

-8.75 0.00 +4.86 -0.33 0.00 +3.57 0.00 -2.17 +1.18

86.00 212.00 70.50 17.45 78.00

84.50 214.00 69.50 17.50 76.50

+1.78 -0.93 +1.44 -0.29 +1.96

16.30 8.80 14.80 24.25 13.00

16.45 8.70 14.70 25.25 13.00

-0.91 +1.15 +0.68 -3.96 0.00

KAMPALA - USE SECURITY Date

NOVEMBER 08 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

7.10

7.30

-2.74

10.30 13.00 4.60 286.00 15.85 65.00

10.20 12.90 4.55 288.00 15.45 66.50

+0.98 +0.78 +1.10 -0.69 +2.59 -2.26

30.25 4.35 30.00

32.00 4.35 30.00

-5.47 0.00 0.00

11.10 127.00 580.00 11.10 127.00 580.00 11.10 127.00 580.00

11.10 125.00 577.00 11.10 125.00 577.00 11.10 125.00 577.00

0.00 +1.60 +0.52 0.00 +1.60 +0.52 0.00 +1.60 +0.52

9.55 9.75

9.55 9.85

0.00 -1.02

7.50 5.50

0.00 0.00

Nov 8 2013 Nov 8 2013 Nov 8 2013 Nov 8 2013 Nov 8 2013 Nov 8 2013 Nov 8 2013 Nov 8 2013 Nov 8 2013 Nov 8 2013 Nov 8 2013 Nov 8 2013 Nov 8 2013 Nov 8 2013 Nov 8 2013 Nov 8 2013 Nov 8 2013 TOTALS

Kenya

Nairobi Beans (Rosecoco)

- 90kg

Fish (Tilapia)

- 1 kg

Ground Nuts

Uganda

Eldoret

Kampala

Lira

High Low 310 5540 0 8600 2340 2660 2680 0 2420 0 0 0 0 300 0 0 0 0

Turnover (Tshs)

310 5,394,000 5540 2,659,200 0 0 8600 870,000,000 2340 13,572,000 2660 2,660,000 2680 16,479,320 0 0 2420 4,719,000 0 0 0 0 0 0 0 0 295 32,124,375 0 0 0 0 0 0 0 0

Shares Turnover (UGX) Traded VWAP 1,612.71 100 405,000 4,050 0 0 110 0 0 943 1,200 1,242,000 1,035 0 0 9,552 0 0 1,010 0 0 8,490 0 0 364 0 0 1,400 173,892 6,086,220 35 0 0 9,227 0 0 630 55,811 1,674,330 30 0 0 30 32,150 11,734,750 365 257.56 263,153 21,142,300

Low 4,050 110 0 1,035 0 0 0 0 0 0 0 630 30 30 365

High

Market Foreign Number Outstanding Outstanding No of of Deals share bids share offers shares Capital holding traded (Tsh) bln) % age 7 100 0 17,400 11.54 5.84% 4 43,400 0 480 1,633.90 67.63 0 0 0 0 11.61 47.60 1 200 0 100,000 860.00 75.00 10 0 5,300 5,800 148.99 62.50 1 1,900 0 1,000 95.76 72.00 6 1,100 80,200 6,149 482.19 69.25 0 0 44,700 0 33.24 0.07% 7 54,100 34,400 1,950 1,210.00 38.57 0 0 0 0 344.19 N/A 0 0 0 0 4,792.09 N/A 0 0 0 0 323.43 N/A 0 0 0 0 2,643.60 N/A 33 314,600 206,700 108,125 642.08 15.47 0 0 0 0 1,104.86 N/A 0 0 0 0 2,181.65 N/A 0 0 57,200 0 76.22 34.13 0 2,000 0 0 5.44 0.00% SOURCE - Dar es Salaam Stock Exchange Session Price (UGX) Outstanding Bids Outstanding Offers

4,050 110 0 1,035 0 0 0 0 0 0 0 630 30 30 365

0 14,046 17,050 0 0 34,468,633 0 504,400

175 3,970,254 12,303 0 0 2,733,108 5,806 978,805 394,429 0

PE Ratios 16.30 9.33 8.48 8.40 24.07 12.28 8.23 (2.35) 11.61 3.84 23.51 13.57 11.75 9.63 10.38

Market Cap. (UGX bn) 198.77 275.00 627.51 257.30 7,553.48 3,739.80 508.51 544.71 4,177.79 14.14 1,739.68 48.20 1,535.66 27.00 592.86

21,840.42 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

ALSI BATU BOBU CENT DFCU EABL EBL JHL KA KCB NIC NMG NVL SBU UCL UMEME USE LCI

310 5,540 0 8,600 2,340 2,660 2,680 0 2,420 0 0 0 0 300 0 0 0 0

Closing price (Tshs) 310 5,540 650 8,600 2,340 2,660 2,680 490 2,420 230 6,060 5,400 890 295 5,860 5,320 475 600

KIGALI - RSE Date Security Last 12 Todayâ&#x20AC;&#x2122;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

TOL TBL TTP TCC SIMBA SWISS TWIGA DCB NMB KA EABL JHL KCB CRDB NMG ABG PAL PAL

Opening price (Tshs)

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

EAST AFRICAN BUSINESS WEEK

NOV 11 - 17, 2013

TENDERS

TENDERS, JOBS & CONSULTANCIES East African Business Week I November 11-17, 2013

UGANDA

RWANDA

TANZANIA

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.

BURUNDI

CONSULTANCIES The Finacial and Private Sector Development Project requests for expression of interest to provide consultancy: Technical Assistant to support the Insurance Regulatory and Supervisory Agency of Burundi (ARCA). Contact: Attn: Monsieur le Coordinator, Project De Developpement des Secteurs Prive et Finacier, Immeuble SOCAR, Jonction Bd de I Independence, et Avenue d Italie B.P.1590 Bujumbura, Burundi, Tel: 257 22 249595, Fax: 257 22249592, email: page@page.bi. Deadline: Dec 4, 2013 at 17.00 O’clock. Source: East African Business Week

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

TENDERS 1. The Ministry of Defence invites qualified bidders to submit bids for the following tenders: a. Supply of Vehicle and Weapon Lubricant; b. Supply of Tyres; c. Supply of badges, gifts, banners, certificates and printing photos; d. Supply and Installation of SCSC Gymnasium Equipment; e. Supply of SCSC Sanitation Materials; f. Supply of SCSC Library Books. 4. Well printed bids properly bound must be submitted in 04 copies of which, one of them should be an original and 03 copies conforming to the original. Deadline: 4/12/2013. 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).

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

ICT

East African Business Week I November 11-17, 2013

TTCL sets aside $15.5m for GSM LEONARD MAGOMBA nDAR ES SALAAM, Tanzania – Tanzania Telecommunications Company Limited (TTCL) has announced a strategic plan which will see the telecom firm shifts to the latest communications systems, known as Global System for Mobile Communications (GSM) technology. The development will see the telecom firm spend $15.5 million to move from the current system known as the Code Division Multiple Access (CDMA). TTCL’s Chief Executive Officer, Mr Kamugisha Kazaura to told East African Business Week in Dar es salaam last week that the technology will help the company have mobile phones that use 4G LTE, which will be used by all lines, supporting it to increase its customer base and compete in the market. “The company is planning to improve its services with technology in data and voice to its customers and expects to considerably increase its customers for data and voice,” Kazaura said.

However, the government of Tanzania is planning to secure full ownership of TTCL as part of an effort to make it the market leader in the country. The government currently owns 35% of shares in the telecommunications company, with the rest owned by Airtel Tanzania. “It is the government’s intention to see the company become one of the leading communications provider in and outside the country in the near future,” Deputy Minister of Communication, Science and Technology, Mr. January Makamba, said. Makamba added the government intends to ensure TTCL performs better and competes in data and voice services in the market. “After building TTCL’s capacity, communication services, particularly mobile phones, will be available in all parts of the country including rural areas,” said Makamba. The Pan-African telecommunications operator, Liquid Telecom has already signed a partnership agreement with TTCL to interconnect with its fibre network in Tanzania. The company has built a fibre link from Nairobi to Namanga on the

border of Kenya and Tanzania. Traffic terminating in Tanzania will now pass onto TTCL’s fibre network. The telecommunication firm has also opened what it’s calling the largest data centre in East Africa, in Kenya’s capital city of Nairobi. The data centre currently occupies four floors, with 500sqm of usable whitespace and 160 racks per floor. The carrier-neutral facility already provides services to numerous banks, mobile network operators, Internet service providers and cloud computing solutions providers. The facility has been built by a new Liquid Telecom subsidiary, East Africa Data Centre Ltd. East Africa Data Centre is an independent company within the Liquid Telecom group, with a separate management team from its sister companies, which include Liquid Telecom Kenya. It is claimed the facility is the largest and most sophisticated in East Africa, offering space for dedicated hosting, interconnection services, collocation, disaster recovery, network-based services, applications and cloud services to carriers, network providers and enterprises. It serves customers across Africa.

MAGNIFICENT: A Samsung phone one of the the kind that will have the GSM technology.

Rwanda leads in ICT adoption AfDB rolls out Value for Money platform nARUSHA, Tanzania--Smallholder farming, which is the backbone of many African economies, is set to be transformed by a combination of investment and increasing access to information and communication technologies (ICTs), particularly mobile phones. The claim was made last week by Michael Hailu, Director of the Technical Centre for Agricultural and Rural Cooperation (CTA) at ICT4Ag, a major conference on ICTs in agriculture. “On this continent, 65 per cent of the workforce is employed in agriculture and the sector generates 32 per cent of GDP. Smallholder farmers, mostly women, produce 80 per cent of Africa’s food. African countries spend up to US$ 50 billion a year on food imports. With abundant land, water and cheap labour, there is no good reason why Africa should import so much food. “Yet there’s good reason to be optimistic. After

BUSY: Rwandan people using mobile phones

years of neglect, governments and the private sector are increasing investments in agriculture. Nevertheless, to achieve its full potential, smallholder agriculture must be transformed from a subsistence activity to a profitable, sustainable business. ICTs play a vital role in this transformation. They provide timely advice and information. They help farmers increase productivity. They make markets more efficient. And they increase incomes along the value chain”. The CTA Director said, “the phenomenal growth in the number of mobile phone subscribers in Africa in recent years shows that change was on the way. In 2000, there were just 16.5 million mobile subscriptions in Africa. Now, there are over 650 million. Indeed, the number of people on the continent with access to mobile phones exceeds the number with access to clean water, electricity or a bank account”.

nDAR ES SALAAM, TANZANIA –Tanzania including other East African countries and Zambia is to benefit from roll out on capacity building program on value for money in social service delivery that is being overseen by East African countries. In line with its Strategy for 20132022 and its agenda on Skills and Technology, the AfDB has developed a Value for Money Program to build the skills of key stakeholders to address inefficiencies in social spending in African countries. The AFDB Director for Human Development Ms Agnes Soucat said in a statement availed to East African Business Week that there would be training in making sure that value for money in social sectors is improved in all countries of Africa The much awaited funds being provided by the African Development Bank (AFDB) is expected to be rolled out to such services as education, health and other types of social services in East African countries of Kenya, Tanzania, Uganda, Rwanda including Zambia. It is believed that around 40-60 percent of the every country’s public expenditure in Africa goes to improvements of such social services such as

education, health. Ms Soucat said that the AFDB in collaboration with the Harmonization for health in Africa (HHA), East African Community, and other partners like Bill and Melinda Gates Foundation has organized the symposium which will take place in Dar es salaam. She said that the event is also expected to receive some 65 participants who will be exposed to various strategies and tools to improve value for money in social sectors. According to the EAC Secretary General Dr Richard Sezibera Rwanda was amongst the top examples on improving the value for money and health related social services. He said that the country has been able to transform what was considered to be one of the weakest health care systems into one that excels in socio-economic outcomes through application of instruments such as Result Based Financing (RBF). “This is why we will focus on capacity building training first which is expected to offer a unique opportunity for the participants to discuss challenges and share knowledge and best practices in implementing strategies that improve value for money” Dr Sezibera said.

NEWS

East African Business Week I November 11-17, 2013

Tz launches honey traceability BY PATRICK KISEMBO

nDAR ES SALAAM, Tanzania---The National Economic Empowerment Council (NEEC), a government firm, in partnership with GS1 (TZ) has launched Honey Traceability Project aiming at marketing Tanzanian honey to the international market. Launching the system recently, the State Minister, Prime Minister’s Office, Investment and Empowerment, Dr. Mary Nagu urged managers of the project to ensure the project starts with immediate effect to enable Tanzanian honey to be sold abroad to benefit farmers. “By having these systems, Tanzania would be able to export its honey as finished product because Traceability system can show the history of the brand from being in the field all through to a consumer, the information of which if followed is readily available,” said Dr. Nagu. She said the government through NEEC and her ministry will ensure that traceability systems are made to all the products made in Tanzania to end the sale of raw products to market. For his part, Minister for Industry and Trade, Dr. Abdallah Kigoda said currently honey industry is experiencing many challenges including lack of quality packaging materials, poor marketing, poor materials for harvesting honey and lack of modern honey processing materials. “The government through the ministry of Industries and Trade has charted ways with some of the local industries including Kioo Limited and Omar Packaging which have agreed to manufacture special packaging materials for honey products,” said Dr. Kigoda. Previously the GS1 (TZ) Chief Executive officer, Ms. Fatma Kange said her firm has a vast experience

NATURAL: Tanzanian honey will be marketed internationally. of establishing traceability systems worldwide for over 40 years. “But for Tanzania, this is the first digital traceability system to be established,” she said, adding “So far, Tanzania has only two products that are contained in the traceability system—fish fillet and coffee traceability systems.”She stressed further that the basis for making honey traceability system was to ensure that quality honey that can attract and meet international standards is produced by farmers in Tanzania.

“But we don’t only see this in the eyes of meeting the international market standard alone. We need Tanzanians also to consume honey which meets all the standards,” said Ms. Kange. The GS1 (TZ) expert, Paul Mikongoti explained at the launching ceremony that Tanzania has no option but to enter into the use of traceability systems if it wants its products to capture the European market. According to him, the European Union Food and Drugs Act No.78 of 2002 demands that all edible products

must comply to the system in order for them to be known their origin from the first manufacturer before reaching the last consumer. “All is made to protect the rights of the consumer,” he noted.For its part, the Tanzania Private sector Foundation of which GS1 (TZ) is a member said it was proud to see that for the last two years, the firm (GS1 (TZ) has began to deliver deserving products

to Tanzanians The Tanzania Bureau of Standards, the country’s standard body has already established a standard for honey which is being accepted worldwide, a move which made it easier to make honey traceability system. The government is expected to start applying the system in ten regions including Morogoro, Coast, Tanga, Manyara, Dodoma, Singida, Katavi, Kigoma, Rukwa, and Tabora. Tanzania is a member of GS1, an internationally established organisation that provides bar codes and supports traceability of services, e-commerce and other trade related issues, globally. GS1 (TZ) has so far registered over 370 companies and issued barcodes to 6,000 products since it started operations in August 2011. The company has succeeded to secure a Bar Code right from GS1 Global, now Tanzanian business community will not have to travel to Kenya and South Africa for bar codes, bar codes are now issued in Tanzania with a code of ‘620’,. GS1 (TZ) is a Tanzanian registered company by guarantee registered by the business society in Tanzania as a way to improve traceability and add value to their products. It also expects to increase access to domestic and global markets of locally produced products, product identity, value addition, and increase traceability of the value chain system in Tanzania.

Gold miner pays for lip damages of babies BY LEONARD MAGOMBA nDAR ES SALAAM, Tanzania-Geita Gold Mine (GGM), owned by AngloGold Ashant, has sponsored 24 children suffering from unilateral cleft lip and palate deformity from various villages around Geita region to undergo surgeries at the Sekoutoure regional hospital in Mwanza. The GGM’s General Manager Mr. Michael Van Anen told East African Business Week; “We are committed to engage with our surrounding communities. They are uncles, sisters and brothers of our workforce.” Geita Gold Mine’s program to help cleft pallet sufferers’ is now on its eleventh year and about 500 people have benefited so far. Communities are happy and we are very proud to be part of their life changing experiences, he said. This year, he said the operations involved twenty nine (29) children with cleft lip and palette, burns and contractures from various villages in the Geita Region.

“Out of them 24 were picked to attend the surgery according to Surgeon’s scrutiny. Other 5 were too young for the operations and were rescheduled for the next year mission,” he noted. He said to ensure the communities responds to the exercise, GGM employees canvassed throughout villages to register need individuals, fund for the transportation, accommodation, medical examinations such as CT-scan and meals during the two weeks stay in Mwanza where the surgery was performed. Total number of patients together with their mothers and accompanied partners were 44 people. For this year alone, GGM expects to fund Tsh50million ($31,182) specifically for this mission. During a get together lunch to mark the end of this year mission held at the operating theater, the Sekou-Toure hospital director, Dr. Onesmo Rwakendela highly praised a remarkable assistance extended by GGM for paying anything to give smiles back to poor children and alleviate them from alienation

DAMAGED: A baby suffering from unilateral cleft lip and discrimination due to on-going stigma they have been facing. Geita Gold Mine is located about 4 kilometers west of Geita in the northwest of Tanzania. The mine is

100% owned by AngloGold Ashanti Limited. In 2012 Geita’s production increased 7.5% to 531,000oz, equivalent to 13.5% of group production.

Geita employed an average of 3,594 people in 2012, inclusive of permanent employees and contractors. 96% of GGM employees are Tanzanian nationals.

SPECIAL REPORT

East African Business Week I November 11-17, 2013

Land uses spark off Tz unease

any supposed beneficiaries, such as smallholder Ahmed Kipanga, a 37-year-old father of five from the coastal Kisarawe District, feel short-changed. “I used to till my land and grow enough food to feed my family,” he told IRIN in Mbeya, 600km south of a home he no longer has access to, adding that he was also able to earn around US$250 selling his surplus crop for each of the year’s two seasons. “I just gave my land because we were convinced by a politician that it would make us rich. I knew I would get money for the land, and also get a well-paying job when the [investment] company began operations. Now they didn’t do anything and they sold our land to another company we didn’t even know,” he added. “We have been chasing our money for the land but they [district officials] keep telling different things every time we go for the money. I am not sure we will be paid [compensation],” he said. Kipanga now has no farm to grow food on and struggles to make ends meet by crushing rocks manually. A 7-tonne truckload brings in around $90, a sum he splits with two friends. Demand for the rocks is irregular. In 2009, Kipanga was among 1,500 residents of 11 villages whose combined 8,211 hectares were leased to a British company that planned to grow jatropha as a biofuel. The villages were given verbal promises of jobs, paved roads, new schools and a hospital. But, as jatropha turned out to be less of a miracle crop than envisaged, the project collapsed after a couple of years and was bought out by another firm which has left it dormant, employing only a handful of security guards to keep other villagers off the land. According to the Oakland Institute, a US think tank which documented this particular case as well land deals at the national and continental level, not only are the villagers worse off now, landless, jobless and with no compensation, but they also suffered a drop in income and living standards even when the project was functioning. Some 27 agricultural investment deals have been signed in Tanzania since 2008, covering 274,228 hectare, according to data compiled by the Land Matrix. Of these, 11 projects have either been abandoned (including a 34,000 hectare jatropha plantation in Kilwa District), or have yet to start production more than a year after contracts were signed. Just eight are operational. In all, the Oakland Institute says, some 4.5 million hectares in Tanzania is being sought by foreign investors planning biofuel or food production and encouraged by the 2009 adoption of the Kilimo Kwanza (Agriculture First) initiative. This includes the so-called AgriSol deal, which, if it eventually goes through in the face of fierce local opposition, could see some 160,000 people displaced from their land in Mpanda District, Katabi Region, in the far west of the country. Since 2005, the share of Tanzania’s budget spent on agriculture has risen more than fourfold, from 2.2 to 9 percent. But, for the authors of a 2012 paper by the International Growth Centre the effects have yet to trickle down: “[P]erformance in agricultural output and productivity has been disappointing. Policies and plans, such as `agriculture is the mainstay of the economy’ and Kilimo Kwanza have remained [mere] slogans to the public as there is so little experience of reforms that have improved livelihoods, and millions in the agriculture

JATROPHA: In some places jatropha turned out to be less of a miracle crops than envisaged and many farmers quit growing it .

Agriculture still economic base

A FLOURISHING : USAID is helping smallholdes improve their methods sector remain in poverty.” Inadequate land-management legislation, the opaqueness of the deals and the widespread lack of title deeds have conspired to make large-scale land investment deals particularly problematic. “There is mounting evidence that most deals have failed to deliver on their promises,” Lorenzo Cotula, land rights and natural resources specialist at the Institute for Environment and International Development (IIED), told IRIN. Villagers have lost land, many investments have been discontinued, and jobs have been few and short-lived. Success stories are difficult to come by,” he added. “The law regulating the deals makes villagers vulnerable to dispossession. National laws only recognize weak land rights to rural people, and legal safeguards are ineffective,” he said. Other problems cited by Cotula include inadequate local consultation, non-compliance with legal requirements and conflict. For Oakland Institute Executive Director Anuradha Mittal, across the world, “these largely unregulated land acquisitions are resulting in virtually none of the promised benefits for local populations, but instead are forcing millions of small farmers off ancestral lands and small, local food farms in order to make room for export commodities.” A senior official in the Prime Minister’s Office, who asked not to be named because he was not authorized to speak to the media, defended the government’s move to lease

out land to foreign investors. “Those cases that have failed are like any business that faces risks. These foreign investors have the money to set up large farms which would ensure people have employment and we can feed ourselves as a nation,” he told IRIN. “But I believe there are certain things we can do better like ensuring that people receive compensations for the land they live on. We must ensure people have some form of proof of ownership which we haven’t done adequately,” he added. “This programme began in 2009 and I believe because acquisitions for related investments can drag on for years at times, I believe it is too early to judge its success.” For land deals to benefit farmers, says Cotula, “villagers must have greater control over their resources, through stronger rights but also through collective action that can give real leverage to legal rights.” Yefred Myenzi, the director of Haki Ardhi, a local land rights advocacy organization, said joint ventures between the local communities owning the land and investors could help ensure local communities do not lose out. “Out-grower schemes [where the farmers continue to own their land but produce on behalf of the investor] have also been proposed in which case, the investor provides technical support and market whereas the farmers retain their land and produce with assurance of selling their produce,” Myenzi, told IRIN.

griculture is the foundation of the Tanzanian economy. It accounts for about half of the national income, three quarters of merchandise exports and is source of food and provides employment opportunities to about 80 percent of Tanzanians. It has linkages with the non-farm sector through forward linkages to agroprocessing, consumption and export; provides raw materials to industries and a market for manufactured goods. Agriculture in Tanzania is dominated by smallholder farmers (peasants) cultivating an average farm sizes of between 0.9 hecters and 3.0 hecters each. About 70 percent of Tanzania’s crop area is cultivated by hand hoe, 20 percent by ox plough and 10 percent by tractor. It is rainfed agriculture. Food crop production dominates the agriculture economy 5.1 million ha. are cultivated annually, of which 85 percent is under food crops. Women constitute the main part of agricultural labour force. The major constraint facing the agriculture sector is the falling labour and land productivity due to application of poor technology, dependence on unreliable and irregular weather conditions. Both crops and livestock are adversely affected by periodical droughts. Irrigation holds the key to stabilizing agricultural production in Tanzania to improve food security, increase farmers’ productivity and incomes, and also to produce higher valued crops such as vegetables and even flowers. Urban agriculture has flourished as a household – level initiative to cope with economic hardships encountered as a result of raising cost of living. Urban agriculture that consists of raising and growing of vegetable and food crops is found in Tanzanian towns and cities where the ready market for Agricultural products are found. Producers of vegetables, milk, broilers’ meat and eggs sell to private households and to school, hotels, hospitals, bars, cafeterias and restaurants. Agricultural GDP has grown at 3.3 percent per year since 1985, the main food crops at 3.5 percent and export crops at 5.4 percent per year. Considering that the overall GDP growth target for halving abject poverty by 2010 is in the range of 6-7 percent, this performance falls short of the needed growth. The macro economic reforms have and continue to have had significant impact on the agriculture sector. Ministry of Agriculture

FEATURE

East African Business Week I November 11 - 17, 2013

Good education defines better GDP nWASHINGTON, USA--The United Nations Secretary-General Ban Ki-Moon launched a new initiative “Education First” to ensure that every child goes to school, receives quality education and imbibes values of global citizenship. “Our shared goals are simple. We want children to attend primary school and to progress toward higher education that will help them to succeed in life,” said Mr Ban. “We cannot stop until every child goes to school. This is our task, this is our homework.” Speaking on behalf of all children and young people, Chenor Bah from Sierra Leone presented a petition demanding their right for education. “Send us all to school; prepare us for the 21st century jobs, [prepare us] to be global citizens to promote tolerance and peace, comprehensive reproductive health education, and to be informed by science,” said Mr Bah. “You are tallest when you kneel to help a child,” he added. “Education First” seeks to mobilize all partners, traditional and new, to achieve the enrolment of all children in primary education ahead of the 2015 target date for the Millennium Development Goals. The new initiative establishes that, an additional US$ 24 billion is needed annually to cover the shortfall for children out of primary and lower secondary school. “Education remains the most important investment that any state—especially in Africa and the developing world can make,” said President Jacob Zuma of South Africa. The United Nations Secretary-General Ban Ki-Moon launched a new initiative “Education First” to ensure that every child goes to school, receives quality education and imbibes values of global citizenship. “Our shared goals are simple. We want children to attend primary school and to progress toward higher education that will help them to succeed in life,” said Mr Ban. “We cannot stop until every child goes to school. This is our task, this is our homework.” Speaking on behalf of all children and young people, Chenor Bah from Sierra Leone presented a petition demanding their right for education. “Send us all to school; prepare us for the 21st century jobs, [prepare us] to be global citizens to promote tolerance and peace, comprehensive reproductive health education, and to be informed by science,” said Mr Bah. “You are tallest when you kneel to help a child,” he added. “Education First” seeks to mobilize all partners, traditional and new, to achieve the enrolment of all children in primary education ahead of the 2015 target date for the Millennium Development Goals. The new initiative establishes that, an additional US$ 24 billion is needed annually to cover the shortfall for children out of primary and lower secondary school. “Education remains the most important investment that any state—especially in Africa and the developing world can make,” said President Jacob Zuma of South Africa. The United Nations Secretary-General Ban Ki-Moon launched a new initiative “Education First” to ensure that every child goes to school, receives quality education and imbibes values of global citizenship. “Our shared goals are simple. We want children to attend primary school and to progress toward higher education that will help them to succeed in life,” said Mr Ban. “We cannot stop until every child goes to school. This is our task, this is our

BETTER LIFE AHEAD: Ban ki Moon recently launched the Education First campaign where experts shared their views. homework.” Speaking on behalf of all children and young people, Chenor Bah from Sierra Leone presented a petition demanding their right for education. “Send us all to school; prepare us for the 21st century jobs, [prepare us] to be global citizens to promote tolerance and peace, comprehensive reproductive health education, and to be informed by science,” said Mr Bah. “You are tallest when you kneel to help a child,” he added. “Education First” seeks to mobilize all partners, traditional and new, to achieve the enrolment of all children in primary education ahead of the 2015 target date for the Millennium Development Goals. The new initiative establishes that, an additional US$ 24 billion is needed annually to cover the shortfall for children out of primary and lower secondary school. “Education remains the most important investment that any state—especially in Africa and the developing world can make,” said President Jacob Zuma of South Africa. UNAIDS helped produce the “Education First” strategy document. The illustrations in the strategy were developed by Sujean Rim, the UNAIDS artist-in-residence. “Education is the best gift I have received and I am happy to be able to support this initiative,” Ms Rim said. “Children everywhere need the opportunity and the skills to express themselves through art, science and sport.” Today, nearly 61 million children do not have access to primary education, 52% of them are girls. An additional 71 million children eligible for lower secondary education are not receiving post-primary education. Children in conflict-affected countries account for 42% of children out-of-school. Other barriers to school enrolment and completion include unaffordable costs, gender discrimination, child labour and lack of infrastructures. The new strategy also highlights that children

orphaned by AIDS and other causes need focused care and protection, as do those subjected to child labour and exploitation Spending money on harm reduction programmes for people who use drugs not only is a good investment but it also saves lives. This was the conclusion drawn at a meeting entitled Economics and financing of effective harm reduction strategies in the context of HIV which took place on the side-lines of the International Harm Reduction Conference held in Vilnius, Lithuania from 9-12 June. Participants explored the challenges associated with addressing the HIV epidemic among people who use drugs, particularly in times of economic recession. It concluded that to do so would reap benefits not only for individuals but for the society as a whole. People who use drugs are heavily affected by the HIV epidemic in Eastern Europe and Central Asia where HIV is often spread through sharing injecting equipment. Recently published research shows that 33% of HIV diagnoses in Eastern Europe are associated with injecting drug use and the number of AIDS-related deaths in the region rose by more than 20% between 2005 and 2011. According to the World Bank in Central Asia injecting drug use represents the greatest risk of HIV infection. The chair of the meeting Aldo Lale-Demoz, from the United Nations Office on Drugs and Crime stressed that “wise investment can change the trajectories of current epidemics” and that “it is not simply a question of spend-

“

FILE PHOTO.

ing more but spending available resources better”. Mr Lale-Demos and his UN colleagues said they would be working more intensively with ministries to help explore ways of scaling up harm reduction services within existing budgets, such as working with community organisations to develop and implement cheaper and more effective programmes. A considerable body of evidence emerging shows that delivering services—such as opioid substitution therapy and antiretroviral therapy—leads to significant savings in overall public health objectives and in a reduction in petty crime. It also results in safer environments and higher quality, longer lives. To not focus resources at harm reduction was seen as short-sighted and a false economy. “People who use drugs do not live in a bubble, they are parents, children, friends, family and neighbours,” said UNAIDS Senior Advisor, Alison Crocket. “The social cost of their exclusion is significant and measures taken to reintegrate them back into society have far wider benefits.” In 2009, UNAIDS, UNODC and WHO endorsed a comprehensive harm reduction package consisting of nine main actions A telling example of the benefits of opioid substitution therapy was provided by David Wilson from the World Bank. The cost of detaining people who use drugs in Malaysia is US$ 1 000 a year, double that needed for opioid substitution. However, detention centres have a drug relapse rate of 95% whereas the same rate for opioid substitution therapy is just 7%. Fewer than one in ten people in the Eastern Europe and Central Asia region have access to this proven service.

Imbibes values of global citizenship

United Nations

SPORTS

East African Business Week I November 11-17, 2013

FUFA opts for Airtel BY EMMA ONYANGO

nKAMPALA, UGANDA-Airtel Uganda

and the Federation of Uganda Football Association (FUFA) recently entered into a four year partnership that will see the telecommunications company become the official sponsors of the national team, Cranes as well as the Uganda Cup and the FUFA Big League, the second tier league. The deal effectively ended MTN’s long standing sponsorship of the national football team as the telecom firm said the terms that were presented by FUFA for renewal of the sponsorship were outside MTN’s sponsorship budget. As such, FUFA rejected the offer made by MTN Uganda to renew its sponsorship of the Uganda Cranes and SPONSORSHIP: Cranes have landed a lucrative sponsorship deal with Airtel Regional Football. Last June, Airtel again took over the and put aside their wrangles and work including rugby, basketball, volleyball, sponsorship of domestic basketball from towards a common good of the game. table tennis and golf amongst others. MTN. Some pundits are now wonder“They should put aside their selfish Through the MTN Arena in Lugogo, ing whether MTN no longer wields the interests instead of claiming to wait for which was refurbished by MTN in 2010 power it had or the company has simply the minister to make a pronouncement. to be the largest and most modern inlost interest in sponsoring sports. We want the contents of this AirtelErnst Fonternel, MTN Uganda’s Chief door stadium in Uganda and the region, FUFA partnership to be transparent. We we are leaving a legacy for Ugandans to Marketing Officer said in a press statedon’t want a scenario where we have a ment that the company failed to agree on benefit from.” sponsor yet the national team comes up However, officials from FUFA and a sponsorship renewal deal with FUFA saying they don’t have necessities.” Airtel were tight lipped on the financial as they presented a non-negotiable deal. Eng. Moses Magogo, the FUFA Presidetails of the deal but reports suggest “At MTN we genuinely believe in dent said that the federation will develop the deal is in the region of Ush1b per the team and our nation and we are more products so as to attract more extremely proud of the accomplishments year. sponsorship for the national teams. Uganda Cranes according to reports we have achieved together over the “Football is a powerful vehicle for get the biggest chunk of Ush950m, with last 10 years. No doubt that the recent brand communication. We are sure this the Big League and Uganda Cup get‘We Believe’ campaign from MTN has will attract other corporates on board.” ting Ush100m every year over the four inspired the nation and the Cranes for This will the first time the Fufa Big years. them to have gone on to quality for League will have sponsorship while the However, this leaves a glaring gap in CHAN 2014. We remain the biggest Uganda Cup will be relieved after being supporters of Sports in Uganda and wish the domestic league that is supposed without sponsors last season following to supply the national team currently them best of luck for the future ”, said Uganda Breweries Limited’s refusal to embroiled in wrangles with two parallel Fonternel. renew their deal. leagues. He continues; “MTN has consistently Airtel come in at a time MTN’s Charles Bakkabulindi, the State Minsupported the sporting fraternity in Shs1.4b three-year deal with Cranes had ister for Sports said that the domestic Uganda and aside from football, it has expired. league should pick a leaf from FUFA assisted many sports over the years

Rewards start flowing for soccer fanatics BY EMMA ONYANGO

nKAMPALA, UGANDA - When

Bernard Ssemuju read in the press that the Guinness Football Manager competition had been launched, he was hesitant to take part but later on reluctantly signed up. Barely a month into the English Premier League, he topped the Guinness Football Managers’ leaderboard and in the process got a cash reward of Ush1.5m and a DSTV Walka. A sales Executive with one of the insurance firms in Kampala, Ssemuju picked a dynamic and balanced team comprising top, middle and lower tier players in the English Premier League, earning him 336 points, earning him the Manager of the month of September.

What trick does he use; “Simple,” he says. “I mostly use Tottenham and Southampton defenders because they have conceded the least goals. Pick goal scoring midfielders as well as scoring defenders. I start picking my players on Thursday so that I have a good idea of who is fit to play over the weekend.” The Guinness Football Manager was launched in August in Uganda by former Chelsea Manager, Roberto Di Matteo when he visited Uganda. Each week, Di Matteo also selects his own ‘Player Made of More’ – the player he believes has made the most significant contribution in that week’s matches. Any manager with that player in their fantasy team will be awarded extra points. The fantasy game is available for soccer fanatics to play on all mobile phones; from basic handsets to smart phones, computers, tablets among others.

LIVE TV GAMES FIFA WORLD CUP QUALIFIERS Wed,13 Nov

Jordan vs. Uruguay

16h55

SS3/SS3N

Fri,15 Nov

Greece vs. Romania

20h40

SS8

Fri,15 Nov

Portugal vs. Sweden

20h40

SS6HD

Fri,15 Nov

Iceland vs. Croatia

20h55

SS9

Fri,15 Nov

Ukraine vs. France

21h55

SS3/SS3N

Sat,16 Nov

Nigeria vs. Ethiopia

16h30

Select

Sat,16 Nov

Senegal vs. Ivory Coast

20h30

SS3/SS3N

Sun,17 Nov

Cameroon vs. Tunisia

16h00

SS3N

Tue,19 Nov

Egypt vs. Ghana

17h30

SS3HD

Tue,19 Nov

Romania vs. Greece

19h55

SS5HD

Tue,19 Nov

Algeria vs. Burkina Faso

20h00

Select

Tue,19 Nov

Croatia vs. Iceland

20h10

SS8

Tue,19 Nov

Sweden vs. Portugal

20h45

SS7/SS7N

Tue,19 Nov

France vs. Ukraine

21h55

SS1HDA

INTERNATIONAL FRIENDLIES Fri, 15 Nov

Swaziland vs. South Africa

20h15

SS4/Select

Fri, 15 Nov

England vs. Chile

21h55

Maximo

Tues, 19 Nov

South Africa vs. Spain

20h00

Select

Tues,19 Nov

England vs. Germany

21h55

SS5/SS5N

AFRICAN LEAGUES Mon, 11 Nov

Ghana: Liberty vs. Inter Allies

Wed, 13 Nov

Ghana: H of Oak vs. Medeama

Sat, 16 Nov

Zambia: Nkwazi vs. Napsa Stars

Sat, 16 Nov

Kenya GOtv Shield: Final

Sat, 16 Nov

Zam:G.Buffaloes vs. Mordern Stars

Sun, 17 Nov

Zam: Zanaco vs. Power Dynamos

17h00

SS9/Select1

17h00

SS9/Select1

12h45

SS9

14h30

SS9E

14h55

SS9

14h45

SS9

MTN Uganda hosts customers Business Golf Day

BY EMMA ONYANGO

nKAMPALA, UGANDA - On Friday

November 8, 2013, MTN Uganda hosted the first ever MTN Business Golf Day at Kampala Golf Club. It was an all-day event in which the MTN Leadership Team and more than 30 corporate companies participated in a full field shotgun game of golf that kicked off at 11am. At the tee off event, Mazen Mroué, MTN Uganda CEO handed over golf equipment to the Uganda Golf Club Captain, Charles Katarikawe. The items included caddy range gear comprising shorts, shirts, bibs, leg guards, shin guards and helmets as well as ball picker equipment. These were part of a total package worth USh90m towards supporting the club’s activities. Over the last 5 years MTN Uganda has sponsored the MTN Monthly Mug which runs throughout the annual golf calendar. Over time, this property has evolved and today the Uganda Golf Club now fully runs and manages the Monthly Mug events. The MTN Business Golf day, that will be an annual event provides a

unique opportunity for the telecom company’s customers who are members of the club to experience the MTN Business brand. Speaking at the prize giving ceremony, the MTN Uganda Chief Marketing Officer, Ernst Fonternel, said MTN was proud of the role it is laying in bridging the gap between business owners and their clients by providing business solutions which simplify the way they can run their businesses. He said: “Golf offers a clear bridge between sports and business as many members of the Golf fraternity are also MTN Business customers.”. Commenting at the event, the MTN Uganda GM MTN Business, Mr. Reginald Kafeero said that the MTN Business proposition is clearly set out to fill a gap in the needs of MTN’s corporate customers. “MTN Business offers a wide range of business solutions through an array of technology options to suit our customers’ business needs both in and out of the office, locally and internationally. Customers can focus on their core business and MTN will deliver the needed communications solutions,” he said.

n BUSINESS KNOW-HOW

n SPORT

FUFA lands lucrative sponsorship deal

East African Business Week I November 11-17, 2013

Tips for better business writing PAGE 15

PAGE 31

Tz starts 15-year bond sales

BY LEOMARD MAGOMBA

nDAR ES SALAAM, TANZANIA – Tanzania will be the second’s East African countries after Kenya to offer 15-year treasury bonds. Kenya is the only country in the region that has long term treasury bond of 30 years as Uganda, Rwanda and Burundi have no government securities that go beyond 10 years. Besides being the second in the East African region to offer over 10 years securities, it will also be the first in the region to start issuing 15 year-treasury bonds. The Bank of Tanzania (BoT)’s Deputy Governor, Juma Reli told East African Business Week during the launch in Dar es Salaam last week that the sale of the 10 years treasury bonds will officially start this week.

“The 15-year bond will be auctioned this Wednesday and is expected to be the benchmark for long-term loan pricing and open the door for longer tenure corporate bonds,” Reli said. The Deputy Governor said due the financial sector deepening and economic expansion, the need for long-term government securities beyond ten years was inevitable. He said: “So as to deal with this demand the government found it essential to issue a 15-year bond with a 13.5 percent coupon rate.” The bond issuance was pushed by the introduction of a long term financial market instruments such as mortgage financing products, syndicated loans and corporate bonds. Reli said: “The introduction of the bond, is to continue the efforts to lengthen the maturity profile of a

“

Juma Reli, BoT Deputy Governor domestic debt, raise funds for long term development projects.” The chief of the Dar es Salaam Stock Exchange, Mr Moremi Marwa told East African Business Week that the bond came at the right time as it will act as the benchmark for pricing

The introduction of the bond, is to continue the efforts to lengthen the maturity profile of a domestic debt, raise funds for long term development projects

long term loans, which the market lacked. He said: “This will be the motivation for corporate to issue long term bonds by acting as an anchor for market long tenure market instruments.” But the capital market still face a number of challenges including low

public awareness of government securities. According to the central bank data, the banks are contributing about 60 percent of total government securities bidding and the rest is shared by pension funds, insurance and individuals. The BoT’s Domestic Markets Department Manager, Paul Maganga, said the central bank takes the challenge and is working around the clock to raise public awareness. “The public awareness campaign continues but we need every support from the public, including media people,” he said. Kenya is the only country in the EAC region that has long term Treasury bond of 30 years, while Uganda, Rwanda and Burundi have no government securities that exceeding ten-year.

President Museveni gets HIV test Uganda sets up seeds board BY SAMUEL NABWIISO

ROLE MODEL: Ugandan President Museveni took a public HIV test at Kiswa Health Centre in Kampala on Novemebr 8th. The President wants all Ugandans to know their status if the country is to stem the growing number of new infections. PPU PHOTO

nKAMPALA, UGANDA-Farmers in Uganda have applauded Government for establishing the National Seed Board (NSB). The seed board will help farmers overcome the problem of fake seeds on the market. Hakim Baliraine the chairperson of Eastern and Southern Africa small scale farmer’s forum (ESAFF) told the East African Business Week the Government establishes such boards but they are poorly funded. Baliraine said: “The National Seeds board is good but for it to functionalize effectively, the Government should set aside enough funds for the board to carry out their duties. Failure to do that means the problem of fake seeds on the market will prevail.” Baliraine said seed companies in the country have been producing seeds that are substandard. This has left farmers incurring loses. Government recently established the NSB whose pivot role will be to advice the minister on variety introductions, breeders, seed production and maintenance. The board will establish a system of implementing seed policies through technical committees. The NSB will also support the ministry of agriculture to formulate regulations, review the national seed supply and set standards for controlling the development of seed distinctness, uniformity and stability. The board will advise plant breeding organizations on the market

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The NSB will support the ministry of agriculture to formulate regulations, review the national seed supply and set standards for controlling the development of seed distinctness, uniformity and stability.

and farmers’ requirements. The 12 member board is to be headed by Okaasai Opolot, who is currently the director for crop resources in the ministry of agriculture, animal industry and fisheries. The board will serve a three-year mandate from 2013 to 2016. Other board members include Fred Babweteera, Keith Bitamazire, Dr. Francis Byekwaso, Dr. Job Alunga Chemutai, Christopher Gashirabake, Emmanuel Gareeba Gaso, Dr. Imelda Kashaija, Dr. Lastus Serunjogi Katende, Rachel Musoke, Dr. Phinahas Tulamuhabwe and Komayombi Bulegeya. Uganda being one of the East African Community country with highest population of farmers this has created high demand for Agriculture inputs. However the seed production level in the country is low because the country has a limited number of seed producing companies.

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