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Geita spends $4m for water as Kikwete visits
Uganda first oil sales expected in 2016
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Uganda stiffens on bets
BY BAZ WAISWA
nKAMPALA, Uganda – The government, through Uganda National Lottery Board, has told firms providing betting services to stop allowing children from taking part or operating within 200 meters of
schools. Manzi Tumubweine, the Chairman Uganda National Lottery Board, in an interview last week said government will not issue or renew licenses unless the proprietors meets the regulations as spelt out in the Gaming and Pool Betting (Control and Taxation) (Amend-
Coke upgrades
Ethiopia in mining extension nADDIS ABABA, Ethiopia--Nyota Minerals last week got a boost after Ethiopian authorities renewed its exploration licence. The renewal for the Tulu Kapi project runs until May 26 next year and is granted on the basis of a satisfactory performance during the past year and approval of the work programme and budget for the next. A further renewal for one year can then be applied for under existing Ethiopian legislation. According to a company statement, Nyota confirmed plans to sell 75% of the project to a new partner, which will manage the work programme. In return, Nyota will receive one million pounds in cash and $5.6 million in shares while retaining a paying 25% interest in the project. The firm said negotiations with the partner were progressing constructively and documentation is in a near TO PAGE 2
ment) Regulations, 2013. “We are tightening the laws. These people are opening up branches next to schools and hospitals. We are saying let them establish their businesses 200 metres away from social institutions,” Tumubweine said. This comes at a time when the government
nNAIROBI, Kenya--The East African Legislative Assembly (EALA) is expected to hold a two-week sitting in Nairobi starting this week. Kenya’s President Uhuru Kenyatta will address a special EALA sitting on Tuesday. The sessions will discuss among other the state of integration of the East African Community among other matters lined up for debate over the two weeks. The Nairobi sessions come at a time when the regional bloc has been
TO PAGE 2
New gem factory in Arusha BY ANDREW ZABLON
START: Kalumba (left) switches on. Officials say output will rise from 30, 000 cases a day to 45,000. (PHOTO BY BAZ WAISWA) Turn to Page 3
Community MPs meet in Nairobi Maize exports to BY HUMPHREY LILOBA
is coming up with new stringent measures to curb irresponsible sports betting and gambling in the country. The government will now be more vigilant and implement the Gaming and Pool Bet-
undergoing some tensions however an official statement makes no reference to this. ‘The Nairobi meeting expects to debate on the reports of the various Committees of EALA, pose questions to the Council of Ministers and move bills and resolutions key to the integration process,’ read part of the statement from EALA. EALA members will also undertake on site visits to institutions of the EAC as part of their oversight activities. “As part of the initiative to netTO PAGE 2
Kenya blocked BY ANDREW ZABLON
nMWANZA, Tanzania – Hundreds of Tanzanian and Kenyan business people are complaining against the decision taken by the Tanzania government to suspend their permits for exporting crops to Kenya. The business people have already approached the Kilimanjaro Regional Commissioner Leonidas Gama over the matter. At the centre of the controversy is the decision by Tanzania’s Ministry of Agriculture and Livestock TO PAGE 2
nMWANZA, Tanzania - -Diamond International, one of the world biggest dealers in diamonds and other gemstones, has opened a gem-cutting and polishing factory in Tanzania. The factory was opened in Arusha last week by the Deputy Minister for Energy and Minerals Steven Masele. It is jointly owned by Diamond International and Signature Gems Limited of Arusha, Tanzania. Diamond International is owned by Morris Gad while the owner of Signature Springs Limited is Sailesh Pandit. The factory would mainly cut and polish Tanzanite. Masele said the government is aiming at seeing Arusha turning into an international gemstone centre. TO PAGE 2
Rwanda fund nears $30m BY AGNES BATETA
nKIGALI, Rwanda--The Agaciro Development Fund has accumulated to over Rwf 20.2 billion (nearly $30 million) as of November according to the fund manager. The Agaciro initiative was launched last year by the Rwandan President Paul Kagame and it is Rwanda’s first fund which is based on a voluntary contributions by every Rwandan. This fund is aimed at making Rwanda self-reliant in all its development initiatives. TO PAGE 2
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NEWS
East African Business Week I November 18-24, 2013
Community MPs meet in Nairobi
Ethiopia extends mining license FROM PAGE 1
final form. It remains subject to conditions, including the partner completing its fundraise. Chief executive Richard Chase said: ‘Confirmation of the approval of the Tulu Kapi exploration licence by the Ethiopian Ministry of Mines clearly demonstrates the continued goodwill of all parties to achieve a successful outcome to negotiations with our new development partner and the advancement of Tulu Kapi towards gold production.’ The identity of the buyer, described by Nyota as a ‘junior exploration and development company listed on a regulated stock market’, remains a secret. Nyota has said the secrecy is for commercial confidence and to mitigate the risk of the sale not proceeding.
FROM PAGE 1
work with the National Assemblies in the Partner States, EALA shall on the sidelines, further, engage Kenyan parliamentarians in an interactive seminar and hold a workshop on parliamentary practices,” the statement further said. Meanwhile, Kenyatta officially opened the first commercial technology research facility in Africa at an inauguration ceremony in Nairobi. “The establishment of this research laboratory underpins the government’s commitment to innovation ecosystems that are already available in Kenya,” Kenyatta said. The facility is IBM’s 12th global research lab, and is supported in Kenya by the Ministry of Information, Communication and Technology through the Kenya ICT Authority and located at the Catholic University of Eastern Africa. The research lab will conduct applied and far-reaching exploratory research into the grand challenges of the African continent by delivering commerciallyviable innovations that impact people’s lives.The two thousand square metre facility features one of Africa’s most powerful, cloud-enabled computing hubs, giving researchers the ability to analyse and draw insight from vast amounts of data in the search for solutions to Africa’s most pressing challenges such as energy, water, transportation, agriculture, healthcare, financial inclusion and public safety. The lab’s research agenda will include the development of cognitive computing technologies which integrate learning and reasoning capabilities, enabling ex-
Rwanda diaspora fund nears $30m
FROM PAGE 1 Last week, Amb. Claver Gatete, the finance minister, thanked Rwandans for their contributions which will be used in developing the country.He said: “Your contribution to this fund has so far grown to Rwf20.237.733.062 and this is a great contribution to
Maize exports to Kenya blocked
FROM PAGE 1
EALA Speaker Margaret Zziwa will chair sessions in Nairobi.FILE PHOTO perts to make better decisions in areas such as healthcare delivery and financial services. In the new era of computing,
IBM believes that Africa has a strategic opportunity to become an early adopter of cognitive systems.
Uganda stiffens on betting rules FROM PAGE 1 ting (Control and Taxation) (Amendment) Regulations, 2013, to make the industry more focused and not exploitative. Gambling especially sports betting is a flourishing social economic activity from which government is targeting to earn over Ush12 billion (about $4.7 million) almost twice as much as last year’s Ush7 billion ($2.8 million) in revenue collections. The statutory instruments require that Uganda Revenue Authority and other government Agencies access the gambling premises for auditing and monitoring. It tasks firms to use licenses for purpose under which they acquired them and the licensee shall be required to pay a security bond worth Ushs200m ($78,125)to Bank
development.” Gatete said plans for investing the money were underway, adding that this will underpin Uganda’s development. Kagame has said Rwanda will not need any aid in 10 years to come if the initiative is sustained.
Of Uganda or a regulated insurance company in the favor of the National Lottery Board. He stated that the board is in talks with government to have a small fund to help them facilitate sensitization about the negative impact betting and gambling has on society. Tumubweine also revealed that a new law is in the offing after cabinet passed the National Lottery Bill which waits to be tabled in parliament for debate and enactment into an act. Sports betting has become a popular activity especially among the unemployed youth who are lured into the industry to make quick and easy money by bookmakers. This however is not the case as many people have reported losing money and property after wrongfully placing their bets.
Sports’ betting has grown in Uganda because people love football and the emergence of European football like the English Premiere League has made it more famous with each passing day. Now in Kampala, sports betting kiosks have sprung up in every corner of the suburb, foreigners who own these firms target low end people who are always broke and looking at any chance to make money. Meanwhile anti-gambling campaigners are not happy with government’s fixation with collecting taxes from such companies which are siphoning monies from the informal sector. Ezra Rubanda, the executive director of GambleAware Uganda says the new regulations are welcome though insufficient and misses the big picture. He wants the numbers of
bookmakers to be regulated and limited in areas of operations. Paul Kimbugwe, a technical director with GambleAware is not convinced with government initiatives and wants government to focus on discouraging gambling instead of promoting it to get more revenue. “This money (referring to the Ush200 million bond) and other taxes they (betting companies) can make it in one day. They don’t feel a burden,” Kimbugwe who has a vast experience in the betting business having worked with Sport Betting Africa said. He says firms now have mobile betting devices (terminals) which they use to go to hospitals, schools with ease and reach deeper into the suburbs.
Development to suspend all the export permits that allowed both Kenyan and Tanzanian business people to export food crops through Holili (Tanga) and Tarakea (Kilimanajro) border points in Tanzania. The traders say they have already paid all duties as required by Tanzanian authorities, but the decision made last week would make
them incur losses and is against the spirit of the East African Community. “We have already bought thousands of tonnes of maize and other crops. We owe several big businessmen and banks. How can we pay back the money?” One of the businesswomen, Ms Sabeth Zakaria told East African Business Week, in an interview.
New gem cutting factory in Arusha
FROM PAGE 1
Gad said his company is the world largest in diamonds and tanzanite business buying about 70% of Tanzanite worldwide. Apart from buying Tanzanite the centre/factory would be used to train Tanzanians on how to polish gemstones. “If this work (polishing) is done in Tanzania, it would add value to gemstones,” Gad said. About $300,000 has been used to build the factory. According to experts, Tanzania is rich in minerals and gemstones and most of them are yet to be mined. It’s estimated that Tanzania has diamond (50.9 million tons), tanzanite (12.6 million tons), coal (911 million tons) and limestone (313 million
tons) just to mention a few. Gad was in Tanzania at Mererani, Arusha the only known place in the world where the expensive gemstone, Tanzanite, is found. Diamonds International is one of the world’s largest retailers of diamonds and other gemstones and is headquartered in New York City. However the company maintains retail locations across the Caribbean, Mexico and Alaska. Gad is also a philanthropist who 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.
NEWS
East African Business Week I November 18- 24, 2013
BRIEFLY African airports need to style up nKAMPALA - Kenya Airways CEO Titis Naikuni recently told fellow aviation executives, “What is it that we don’t require? What is it that is unnecessary in the airport that I am coming to? Is it that we as an airline don’t put what is required on the table? “You come out of an airport and the first thing that hits you is a very long traffic jam,” he said. “Until you solve that problem, and solve it soon, visitors will avoid your countries. You do Abu Dhabi to Dubai in an hour. In Africa, the same distance takes three to four hours.”
IMF tells Tanzania subsidies must fall nDAR ES SALAAM - The International Monetary Fund (IMF) said recently that Tanzania’s economy will grow at 7 percent in 2013. However the IMF said the government needs to expand revenue by simplifying tax exemptions and curbing power subsidies to sustain growth and ease fiscal pressure. According to Reuters IMF said inflation was expected to slip back towards the government’s target of 5 percent by mid-2014, after falling to 6.1 percent in the year to September.
Burundi prepares for returnees nBUJUMBURA - Burundi is preparing to receive thousands of its refugees from Uganda in a voluntary repatriation exercise. According to IRIN, their return will follow that of around 30,000 compatriots expelled by Tanzania earlier in 2013, and that of a similar number obliged to return in late 2012 after they lost their refugee status. Over the past decade or so, around half a million people have returned to Burundi, a country that has gone through many years of instability.
KQ cements Dutch links BY HUMPHREY LILOBA nNAIROBI, Kenya--– Kenya’s national carrier, Kenya Airways has expanded its cooperation with KLM Royal Dutch Airlines within East Africa, following the signing of a joint venture agreement. The cooperation for both passenger and cargo business will allow KLM and Kenya Airways jointly implement further commercial synergies, optimize networks and schedules to better jointly serve these markets and further enhance customer experience and travel options. The expanded cooperation will be effective from January 1, 2014, and the two carriers will add four new routes to the current arrangement, thus increasing the total KLM-Kenya Airways joint venture to six. KQ Chief Executive Officer Titus Naikuni said last week, the expanded joint venture will be a significant boost to the existing benefit-sharing model between the two carriers. “The successful cooperation between KLM and Kenya Airways dates back to 1995.
ONE HAPPY FAMILY: In the new deal, six routes will be handled together. In 1997, we initiated a joint venture on the Amsterdam-Nairobi route, and in 2008, expanded the joint venture with the addition to flights between JKIA and Charles de Gaulle Airport in Paris, France. Currently, Kenya Airways and
Upgrade for Coca Cola Kampala plant BY BAZ WAISWA
nKAMPALA, Uganda--Century Bottling Company, producers of Coca-Cola products in Uganda has spent a whopping $7 million on the refurbishment and upgrade of two old returnable glass (bottle) production lines and merged them to a single line with bigger capacity. This according to company officials will increase their output from 30, 000 cases a day to 45,000 and bring more efficiency in the production value chain. The now bigger and sophisticated production line was commissioned by Nathan Kalumbu, the President of Coca-Cola’s Eurasia and Africa Group last week. The Line is a Returnable Glass Bottle (RGB) line which is more efficient w. The line has new Krones washer with label extraction capability, a well-designed conveyor, overhaul filler, labeller and packer. The company which is a franchised maker of a host of Coca-Cola products in the country started operations in 2001 with three production lines before President Museveni launched two high tech PET (plastic bottles) nNAIROBI - Njuguna Ndungu, production lines last year. the Central Bank of Kenya GovAccording to James Magala, the Quality and Safety ernor said last week, the economy is expected grow 5.6 per cent Manager, in an interview revealed that the new line has an increased capacity to run 54,000 bottles per hour by the end of this financial year. from 36,000 bottles but is currently running only 32,000 He was speaking on behalf bottles. of Henry Rotich, the treasury All brands of soda bottled in returnable glass can run secretary atthe African Developon the new line which has taken the soda maker 18 ment Finance Institution forum weeks to install by removing the old lines and merging in Mombasa. “This growth has been as a result them together and refurbished with new technology. “Our plan if to expand, it’s going to be in stages, the of efforts to anchor economic stability through sound fiscal and first if finished, the next step will be in 2005,” Magala explained during the plant tour. monetary policies and market Denis Kakoma the Reliability Engineer, said the new oriented structural reforms,” he lines can allow new technology upgrades. said.
Kenya to grow 5.6% during 2013/14
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KLM operate a daily service between Schiphol Amsterdam Airport and the Jomo Kenyatta International Airport in Nairobi,” he said. The airlines jointly operate 19 weekly return flights between The
Netherlands, France and Kenya. Naikuni revealed that from next year, the cooperation will be expanded through the addition of the London-Nairobi; Amsterdam-Entebbe/ Kigali route; Amsterdam-Lusaka and Harare routes; and the Amsterdam-Kilimanjaro/ Dar-es-Salam route, the latter subject to regulatory approval. “This will bring the total number of frequencies operated jointly by Kenya Airways and KLM to approximately 44 weekly flights with combined revenues exceeding $500 million (Ksh43.1 billion),” he said. “We saw a tremendous development of our route network particularly in the early years of the joint venture by focusing our attention through only limited hubs in Europe, allowing our expansion in Africa. This next phase consolidates our capability to serve our guests across the region and into Europe and beyond,” he said.
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BRIEFLY Procurement officer wanted for Rusumo nKIGALI - The Nile Equatorial Lakes Subsidiary Action Program (NELSAP), a unit of the Nile Basin Initiative, is asking for applications for a procurement specialist for development of the 80-MW Rusumo Falls hydroelectric project on the Kagera River. The deadline is November 22. Not long ago, the World Bank officially announced funding of $340 million. The projest borders Rwanda and Tanzania but features transmission lines interconnecting these countries and Burundi.
Jubilee fete in Kenya draws in big firms nNAIROBI - Several major corporate names in Kenya led by Safaricom, promised to contribute towards celebrations to mark Kenya’s Jubilee Independence anniversary. At the recent Kenya@50 Private Sector Partnership presidential dinner at the Nairobi National Park, companies pledged to perform high profile social responsibility projects or give money or material in kind towards the festivities in December. Safaricom is the biggest tax payer in Kenya for the past three years.
Indians to manage Ethiopian power line ADDIS ABABA - Ethiopia is to outsource the management of the Ethiopian Electric Power Corporation to Power Grid Corporation of India Ltd (PGCIL), a company owned by the Indian government. The tender was floated by Ethiopia’s Ministry of Water, Irrigation and Energy. Ministry officials said Power Grid Corp surpassed other competitors in the technical evaluation. The company is currently doing a feasibility study on how it will satisfy customers and meet the expectations of the Ethiopian government.
NEWS
East African Business Week I November 18 - 24, 2013
Geita spends $4m for water as Kikwete visits BY LEONARD MAGOMBA nGEITA, Tanzania--Geita Gold Mine (GGM) has joined the Tanzania Ministry of Water to in a $10million Geita Water project to benefit communities in Geita town and the northwest region. South African multinational giant, AngloGold Ashanti owns GGM. The mine operations are located about four kilometres west of the town. Last year, Geita’s production increased 7.5% to 531,000 ounces, equivalent to 13.5% of group production. GGM has already invested Tsh7 billion (about $4.35 million) to pay for its share of the project. The project expected to benefit over 120,000 residents across Geita region. The public-private partnership will give the country’s fastest growing region a major boost towards achieving the Millennium Development Goals. In particular, target 10 which aims to halve by 2015 the proportion of people without access to safe drinking water. During his recent tour of Geita region, President Jakaya Kikwete used the opportunity to commend GGM for their continued investments, both economically and through social responsibility programmes. President Kikwete met with the AngloGold Ashanti Senior Vice President, Christian Rampa Ruhembwe and other Geita Gold Mine (GGM) representatives. He got a briefing about the major plans that GGM has undertaken to engage with the surrounding communities. Some of the big investments which GGM has made include Geita Water project, Nyankumbu Girls High School and other projects. Speaking about the projects, Ruhembwe said, “Our value states that communities in which we operate must be better off for us having being there. Communities are happy and we are very proud to be part of their life
GOOD JOB: President Kikwete with AngloGold Ashanti’s Ruhembwe during his tour of the mine recently. PHOTO BY LEONARD MAGOMBA
$10 million
Total cost of project
$2.8 million
GGM spent on school
3,594
People employed
changing experiences,” he said. Kikwete said such investments are important to people because they are aligned to the Millennium Development Goals. “We need our communities to benefit with such a project which supports their lives,” Kikwete said. At the Nyankumbu Girls School, GGM has invested Tsh4.5 billion ( about $2.8 million). The school is one of its kind in terms of facilities and can accommodate 900 students.
According to a GGM statement sthe school is currently in its final phase of construction. It will have 32 modern houses for teachers, a multipurpose hall, six dormitories, 21 classrooms, three science laboratories and other facilities. GGM has already provided laboratory equipment worth of $139,700. The school is expected to be finished by March 2014. Geita employed an average of 3,594 people in 2012, including permanent employees and contractors, all mostly Tanzanian nationals. AngloGold Ashanti produced 1.04-million ounces in the three months ended September 30, more than a forecast of 950 000 ounces to 1-million ounces.
Kaberuka named top African BY PAUL TENTENA n KAMPALA, UgandaAfrican Development Bank Group President Donald Kaberuka (below) was recently named 2013 African of the Year. This was in recognition of his role in spearheading the Africa50 Fund to mobilize financing of infrastructure projects across the continent. The award will be presented at a ceremony slated for January 15 2014 in Abuja, Nigeria. Last year’s winner was former South African leader, Thabo Mbeki. The $50,000 award was announced recently in Addis Ababa during the African Media Leaders Forum. The prize is sponsored by Nigeria’s Daily Trust newspaper. “This award is for his bringing to fruition the idea of domestically financed development,” Salim Ahmed Salim, Tanzania’s former longtime foreign minister and former Secretary-General of the Organization of African Unity (current African Union), said at the forum. The Africa50 Fund seeks to leverage infrastructure financing for transformational development projects from African central bank reserves, pension and sovereign wealth funds; the African diaspora; and high net worth individuals on the continent. The Fund was endorsed in May 2013 by African Finance Ministers during the AfDB’s annual meetings in Marrakech.
Tanzania to spread processing zones upcountry BY PATRICK KISEMBO nDAR ES SALAAM,- Tanzania-The Export Processing Zone Authority (EPZA) is in the process of adding more special investment areas upcountry to attract more local and foreign investors. Dr Adelhelm Meru, the EPZA Director General disclosed this last week during a briefing, which included a delegation of prospective investors from Belgium, Greece and Italy. He said Tanzania was ready to receive and work with investors from Europe in various areas of interest. “We have a lot of opportunities especially in industrial sector where our investors can cooperate with us in setting investments,” he said at the end of the a forum that involved Tanzanian business community and the delegation of investors held in Dar es Salaam. “We are welcoming them and we are ready to work with
them. Their visit has opened a new chapter of our relationship between Tanzania and European investors for the mutual benefits of both sides. We need to utilize this opportunity,” he said. Dr Meru gave credit to President Jakaya Kikwete for taking several initiatives to sell Tanzania abroad. “President Kikwete deserves congratulations. His efforts are paying. More investors means a strong base of tax payers and therefore sustainable development,” he said. Earlier, the Tanzania Private Sector Foundation (TPSF) Executive Director, Godfrey Simbeye said the private sector in Tanzania welcomes and assured the investors of cooperation and the best returns on their investments. Simbeye said that as the apex body of the private sector in Tanzania, TPSF was ready to work with the investors and together promote their countries’ economic and development interests.
The head of BELGREITA delegation, Malin Johan, said the delegation comprised of various companies with diverse expertise and knowledge. “We have not come here to sell consumer products,” he said. He said the companies have expertise in areas such as ports, renewable energy, engineering, oil and gas and agriculture, among others. Before coming to Tanzania, the delegation visited Kenya and also took a trip to Zanzibar. Meanwhile the EPZA Director of Investment Promotion and Facilitation, Zawadia Nanyaro said when foreign investors visit they also help locals in terms of technology transfer and expertise for development. She was recently speaking during roundtable discussions on how to revive the local cashewnut industry. “This is one of the major cash crops in this country, its development should be supported by establishing processing factories,” she said.
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NEWS
East African Business Week I November 18- 24, 2013
MTN steps up a gear in Kigali
BRIEFLY Tanzania poverty rate now at 28%
BY AGNES BATETA
nDAR ES SALAAM The new poverty rate for Tanzania is estimated at 28.2% in 2011/12. This captures the number of Tanzanians who are not able to consume a minimum basic needs basket of goods and services. Philippe Dongier, the World Bank Country Director for Tanzania, Uganda and Burundi, said “We congratulate the National Bureau of Statistics on the new figures which have resulted from the adoption of a new approach to the analysis of data in line with international best practices.”
US funding boosts Ugandan firm nKAMPALA Agro-Genetic Technologies Limited (AGT) has developed resilient coffee and bananas varieties thanks to funding and technical support from the United States African Development Foundation (USADF). AGT is private firm that uses tissue culture techniques to produce pest- and disease-resistant plants. The ‘super’ plantlets are then used to replace low-yield crops with fast-growing and more vigorous produce.
EABL owner eyes Ethiopian move nNAIROBI East African Breweries Limisted (EABL), the region’s top beer maker, is considering growing its distribution. Recently, EABL opened a depot in South Sudan’s capital, Juba, with the capacity to store 100,000 crates of beer. According to Charles Ireland, the Diageo chief executive officer and majority shareholders in EABL, “We are looking to migrate from trading to fully operational business units in South Sudan, Rwanda and the eastern Democratic Republic of Congo.” he said.
CHEAP FOOD: The EAC still suffers from a mismatch of bumper harvests and chronic shortages.
Non-tariff barriers cut EAC produce sales BY SAMUEL NABWIISO nKAMPALA, Uganda--East African Community (EAC) countries have been asked to get rid of the non-economic trade barriers like road blocks and adopt on unified standards for agriculture products to increase cross-border sales. Non-legislated rules are hindering the regional agribusiness. Professor Nuhu Hatibu, the Chief Executive Officer of Kilimo Trust told the East African Business Week although the five member states ratified the Common Market Protocol which allows free movement of goods and services, agribusiness is not benefiting. “Trading in agribusiness among the members states is very complicated. Some member’s countries are still cramping other countries to trade their agriculture produce on their market. This has been done through installing many road blocks in the way which take long for the security personnel’s to
149 million
Estimated EAC population
$100 billion
Estimated GDP in 2012
$660 Estimated per capita cross examine the cargo,” he said. “Other countries are having stringent sanitary and phytosanitary standards for the dairy products. This increases the cost of doing business. Those who cannot afford to pay bribes are kicked out from the market,” he said. Kilimo Trust is an independent organization working on agriculture for development across the EAC and more recently in South Sudan. A recently released survey by Transparency International Kenya and TradeMark East Africa reveals that regulatory authorities in East Africa demand the highest amount of bribes from transporters and
drivers along the transport corridors Prof. Nuhu said non-tariff barriers violate people’s rights to access markets including cheap food. He said some EAC countries experience food shortages but where there is abundant food elsewhere in the region, neighbouring supplers are not allowed to sell their food stuffs where there is food scarcity. Kilimo Trust tries to promote regional solutions to local problems to make agricultural markets work better for the reduction of poverty and elimination of hunger. Prof. Nuhu said if EAC member states do not respect the Protocol on free movement of goods and services this will scare away private sector people who would wish to engage in agribusiness across the region. “The existence of such institutions provide conducive environment for doing business in the block, but the existence of these non-tariff barriers is big challenge to the block,” he said.
n KIGALI, Rwanda--Telecom firm, MTN Rwanda last week launched a 24hour service programme. Customers now have access to round the clock services. Speaking at the launch, the the Chief Executive Officer Ebenezer Twum Asante said this was an answer to their customers, adding on that as a company they appreciated the change in nature of its business and also the digital world the company’s customers lived in. “We do not want factors like time to affect our customers in accessing our services,” he said. MTN Rwanda follows Kenyan-based mass retailer, Nakumatt, in going 24-hour service. MTN Rwanda is the biggest telecom company in the country with over 3.6 million subscribers according to latest figures. The General Manager, Customer Operations, Norman Munyampundu said, “This is an initiative aimed at ensuring proper customer service.” He said they wanted a transition from customer service to customer experience so that in few years, customer experience at all the MTN Rwanda touch points will be excellent. Munyampundu said they wanted MTN Rwanda to become the global example of outstanding customer experience. Asante said people will be able to get every MTN service at their convenient time. “If you want to cash out your mobile money anytime, you can now be able to access it at anytime,” he said. By monitoring the centre’s performance, the company will be able to know where and when to open other service centres which is aimed at serving customers better.
Exim Tanzania deepens market niche BY LEONARD MAGOMBA
A QUEST: Grant says they want to be the preferred bank.
nDAR ES SALAAM, Tanzania - – Exim Bank (Tanzania) has consolidated its position in the local banking sector with the latest report by audit firm KPMG naming the bank as presently the most customerfocused. According to the Africa Banking Industry Customer Satisfaction Survey released by KPMG recently and conducted between June and December of 2012, Exim Bank emerged overall winner in the customer care sub-category. This was out of 32 banks surveyed in Tanzania, but the whole survey covered 14 countries across Africa.
‘Exim Bank achieved 75.2 points beating runner-up Barclays Bank and third place Akiba Commercial Bank who recorded 75.0 and 74.9 points respectively,’ reads part of the report. Other countries surveyed included Angola, Botswana, Cameroon, Chad, Cote d Ivoire, Ghana, Kenya, Nigeria, Senegal, Sierra Leone, Uganda, Zambia and Zimbabwe. Commenting on the results the Exim Managing Director, Anthony Grant said the findings are yet another encouragement for the team at Exim Bank. “Indeed this continues to be a very good year for the bank as the report comes out at a time when Exim Bank has been selected as one of the five best
retail banks in Africa by the prestigious African Banker Awards 2013,” he said. “We will continue to invest in customer service delivery and enhance the development of staff skills at the Exim Academy to better serve our customers. Our quest is to be Tanzania’s preferred bank,” Grant said. The survey findings indicate that banks in Africa will need to focus on maintaining their financial stability while simultaneously sharpening their customer service capabilities if they hope to capture and grow their markets. The survey results however also revealed the dominance of branches and the Automated Teller Machine (ATM) over other channels in Africa.
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Job creation ranks as EAC priority
R
ecently, Kenya’s Ministry of Industrialisation and Enterprise Development announced plans to make sure one million new jobs are created each year. The target is young people, because they are the ones finding the most difficulty in finding gainful employment, even as qualified graduates. The situation is critical. The present state of the regional economies is such that many young people will not find formal employment. Consequently, they find themselves having to start their own businesses. This is not all. Youth account for 60% of all African unemployed, according to the World Bank. In the 2012 African Economic Outlook report it was highlighted that Africa has the youngest population in the world and the current trend indicates that this figure will double by 2045. Yet many sub-Saharan countries are boasting of some of the fastest economic growth rates in the world. This jobless growth is a frightening prospect and particularly so, because several countries are also hoping to break into the middle-income category in the next 15 to 20 years. A prosperity defined by a huge gap between those who have and those who don’t, is a recipe for future socio-economic disaster. The Kenyans are looking at micro and small enterprise as the main avenue to allow young people to earn reasonable incomes. The government is creating a Micro and Small Enterprise revolving fund to financially back these efforts. In truth, what the Kenya government is doing is little different from what the rest of the EAC members are attempting. Leaders have endlessly been lecturing about shifting emphasis away from job-seeking to job-creation. This is very sensible advice, but the governments have largely failed in providing the basic infrastructure for this to really happen. The other factor is the school curriculum is slow to adapt to the changing times. Today’s world requires a completely different set of skills to succeed. Against the backdrop of EAC’s future good fortune from the oil and gas revenues, serious thought must be given to financing skills development. Mainly by planning a rapid expansion of the vocational training system. Another option is setting up ‘enterprise parks’ where young people can develop their skills. Secondly, it is crucial that the private sector buys into job creation. Regional governments should encourage the private sector to either train or employ young people by giving tax breaks, rebates or similar incentives. One recent study showed that youth want support for learning and training; finding a job (connecting to employers, knowing what to say to them, understanding the process of getting a job); and obtaining skills and capital to start their own businesses. Surveyed youth identified interest in manufacturing, catering, teaching, and the ICT and mobile sectors, including sales, selling mobile phones and mobile accessories, and jobs in the mobile industry. Africa’s growing young population comes with high energy, creativity and talents, which are ‘also the key to future prosperity’, the African Economic Outlook report states very clearly. They do not want handouts. Just a fair chance to show what they can do. Because it is a common problem, perhaps a regional approach should be used to try and solve it. An EAC Youth Summit would not be such a bad idea to begin with.
EDITORIAL
East African Business Week I November 18 - 24, 2013
All eyes on Northern Uganda after RVR link BY JOHN SAMBO nGULU, Uganda--When the terrorist and cult leader Kony and his rabble were finally forced out of Northern Uganda a couple of years ago, a sense of anticipation has been hanging over the region. According to a study by the University of Gulu, Northern Uganda suffered a 20year political insurgency, which shattered the livelihood of local communities. Agricultural productivity is low and despite the high number of agricultural households (estimated at 84%), one in five households live on one meal a day. However it is widely accepted that the region has the potential of being a major food basket. Now that Rift Valley Railways (RVR) has reopened the Tororo-Gulu-Packwach rail line, that anticipation is expected to be turned into efforts towards economic properity. “You must utilize this line. You should not watch it,” President Yoweri Museveni told Gulu residents who turned up to witness the official relaunching. The occasion was important enough to see the presence of Ahmed Heikal. He is the Chairman and Founder of Egyptian-based Citadel Capital, the majority shareholders of RVR. Citadel HERE IT COMES: Heikal (right) waited with President Museveni (3rd right), RVR took up the challenge of reviving Kenya minority shareholders Charles Mbire (2nd left) and Ngugi Kiuna (2nd right). and Uganda’s main railway capacity after the original concession holders took off in disarray. GADC also empowers local smallThe leading probem for bulk exporters Heikal said: “Rift Valley Railways is holder farmers by providing them with is transport costs and Northern Uganda the investment that first brought Citadel support, training, and agricultural inputs. is no exception. Using the rail would be Capital to East Africa; a region many of According to GADC some 15% of far cheaper and easily connect to South us at the firm now view as our second the farmers are certified organic cotton Sudan. home on this great continent that we growers, receiving a 20% price premium For instance Gulu Agricultural Develshare. over conventional cotton prices. opment Company (GADC) could be a “Intra-regional trade currently acRVR Group CEO Darlan de David said beneficiary. GADC sources both organic counts for just 9% of Africa’s total comand conventionally-produced cotton from they are expanding their presence in merce, and we believe this new line is Gulu, eventually transforming the town over 55,000 smallholder farmers in the an important milestone that will further into a logistical hub for its operations in region. The company gins the cotton complement ongoing Ugandan governnorthern Uganda and the surrounding and sells the cotton lint to international ment initiatives aimed at facilitating regions. That means opportunities for buyers, providing farmers with market trade on the continent,” he said. more new jobs. access.
Telecom talks set for Nairobi
nNAIROBI, Kenya--Nairobi will host the TMT Finance East Africa 2013 Conference. The gathering comes at a time of unprecedented fixed-line and mobile consolidation and increasing investment in new infrastructure and spectrum predicted for the next 12 months. Leading executives from companies including Safaricom, Bharti Airtel, Orange Telkom, Eaton Towers, Helios Towers, Standard Bank, Citi and regional government representatives are expected to attend the November 26th conference at the InterContinental Hotel. According to an official statement last week, Enda Hardiman, Managing Partner, Hardiman Telecom said: ‘Investment opportunities in Africa are immediate, significant, diverse and potentially very
lucrative.’ She said ‘Consolidation is in prospect and the fixed-line vista has changed out of all recognition. Landing of new submarine cables has increased connectivity by several orders of magnitude, while deployment of fibre in access networks is now common.’ The conference will also include sessions on regional telecom growth strategies, regulating telecoms, mergers and acquisitions, datacentres and cloud applications, mobile banking, and mobile infrastructure. “This is a really critical time for the East Africa region as critical decisions about the framework for investment, particularly regulation and spectrum allocation for 3G and 4G, will have a fantastic impact on regional growth,”
said Chris Buist, Director, Coleago Consulting, who will be chairing the session on regulation at the conference. “There are a number of important spectrum auctions coming up across the region and operators are looking at how best to use spectrum, infrastructure sharing, new technologies and business models to meet the massive demand for data services.” Mobile tower management and investment will also be an important topic at the conference. “Specialist tower companies are now active continent-wide – all of which have recently engaged in successful fund-raising. Selloff of towers numbering 80,000 by the five major pan-African operators is now also in prospect,” Hardiman said.
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LETTERS & PERSPECTIVE East African Business Week I November 18- 24, 2013
Tullow saga might not be the last
PERSPECTIVE
Image of the week
No time left
Editor, Recently, Tullow Oil had to halt its exploration operations in northern Kenya after locals got fired up about discrimination in employment. Not long ago, residents of Mtwara in Tanzania also protested. They were worried about future jobs being taken up by others if a pipeline transports the newly discovered gas and oil to Dar es Salaam industries.j The common factor in the two incidents is that the people feel ‘their wealth’ underground is being taken away and they see no immediate benefits for themselves. I believe Tullow Oil have a policy about local content for procurement. But local capacity is lacking. What government can do is provide training facilities for people to upgrade their skills.
DESPERATE TIMES: People help themselves to anything of value they can grab from a store in the Philippine city of Tacloban last week in the aftermath of typhoon Haiyan which flattened the city accompanied by winds of just over 300 kilometres an hour.
Rashid Sunday Mombasa, Kenya
Don’t forget coltan in iPhone value! Editor, In your very educative piece on who makes the iPhone, I was surprised how you left out the suffering Congelese in the DRC and coltan mining! And anyway, can you really rate their contribution fairly? Without this vital input all these phone companies would have little to boast about. Tantalum from coltan is
used to make tantalum capacitors which go into almost all electronic items, including cellphones. Apparently Niobium found in Tanzania, has similar properties, so do not be surprised that DRC maybe forgotten soon. However, my concern about the global value chain is that after half century it has not changed for Africa. Manufactured goods flow only
one way. At least for a country like Malaysia, they can now say that in the 1960s they were exporting rubber. But today they export tires. There is not a single tire factory in Liberia and Nescafe declined to build a coffee processing plant in Uganda.
I do not think further protection of the Kenya sugar industry should continue when clearly most of the firms have failed to deliver. Secondly, limiting protectiionism and increasing efficiency is one of the reasons why we are moving towards economic integration. The leaders say cane farmers incomes need to be protected. But even the farmers themselves are suffering with delayed payments.
Editor,
Domestic sugar is a sensitive commodity that governments feel obligated to shield as part of national food security. However sometimes we have to be pragmatic. The vast amounts of money we spend in underpinning this inefficiency only allows mismanagement to continue and consumers to pay relatively high prices.
After the Westgate terror attack, many Kenyans began to look at the Somali people with increased hostility. This is understandable. But I think it the Somali themselves in Kenya who need to look closer at each other and be their brothers’ keeper. They should know better who among them is up to no good. Law abidding Somali have contributed much to Kenya’s economy. Many of them have also prospered far beyond their imagination after fleeing Somalia two decades ago. No one is immune to terrorism, but it can be tamed if all of peaceful people are vigilant. Terrorists feel useless when they cannot hurt anyone. Lets help to make them so. Be vigilant!
William Kibet Nakuru Kenya
Alan Makua Nairobi, Kenya
Habib Otieno Entebbe, Uganda
Why protect industry that does not deliver? Editor,
Lets tame terrorism
Locals should exploit Tanzania’s gems industry Editor, My business requires me to travel between Dar, Dubai, Mumbai and Singapore on a regular basis. I deal in costume jewelry and most of my clients are Asian.
Some people refer to my business as the cheap end of the jewelery trade. But that is debatable. For example, when Indians go shopping for wedding attire and accessories, often price does not matter! I came across your article
The views expressed on this page are not the views held by the anagement of East African Business week
about Tanzanite and feel I must put in a word. Morris Gad, the American quoted in the article, only told part of the story. The fact is, Tanzania does not have adequate capacity to cut and fashion gemstones into choice jewelery. People
n Write your letters to The Editor East African Business Week, P.O.Box 71771 Kampala Uganda
n Telephone +256 41 4531345/7 or +256 312 275141 n Fax +256414531346
like Gad exploit this by hauling most of the uncut gems away and reap the value-added. More talented jewelers is what Tanzania urgently needs! Jamal Shah Dar es Salaam, Tanzania
nWINDHOEK, Namibia--Strong political will is the fillip that is needed to fast track Africa’s economic integration, an agenda item at almost every political and economic gathering on the continent, but whose facilitation and implementation still falls far short of expectations. The calls for economic integration are increasingly becoming shrill as frustration mounts over African economies’ inability to open up for commerce among them. Integration of African economies to increase the economies of scale of especially markets with a weak consumer base, investing in cross border infrastructure projects, which will smoothen commerce between nations, eradicating non-tariff barriers (NTBs) and opening up borders to allow free movement of human capital across Africa, are some of the perceived gains of economic integration. Research has revealed that the bulk of infrastructure in most African economies, built during the colonial period, was solely meant to service the funnelling of the continent’s natural resources to feed the needs of the then industrialising Europe and the Americas. Africa is still grappling with a huge infrastructure deficit in roads, rail, ports, airports, telecoms and many other physical contributors to connectivity. This has made movement of goods and people around the continent very difficult and time consuming, riddled with security concerns and besieged by unreliable routes and onerous processes, analysts say. Angola is one example, which clearly explains why Africa is unable to do commerce with itself. Angola is disconnected from the African countries east of it, with fewer road networks linking the country to other African countries. Frustration on the slow pace of integration was clearly evident at the recent AEC conference, partly sponsored by Economic Commission for Africa (ECA) and the United Nations Development Programme UNDP). “Too often we are in these global meetings, but with minor voices and inability to project with a common agenda for what we want to achieve ourselves and in the global agenda,” Pravin Gordhan, South Africa’s finance minister said. Analysts say that the flow of goods, services, capital, people and information between African economies is exceptionally low. African economies’ inability to boost commerce across geographical boundaries is a binding constraint and a serious concern for the continent’s economic potential. Intra-Africa trade remains between 10% to 13% (of global) because of a lack of linkages between north, south, east and west (of Africa),” Lynette Chen, CEO of NEPAD Business Foundation said. Researchers say that the cost of African countries trading amongst themselves is prohibitively high. For example, the cost of moving a container in Nigeria is five times the cost in Brazil and 10 times that in The Netherlands. This has not been helped by the fact that African countries still produce overwhelmingly the same or similar goods at the same time of the year, offering little trade complementarity. This has had the net negative result of African economies often finding themselves competing against each other with low degrees of differentiation in common external markets for goods and the same holds for foreign direct investment, analysts say.
“
Inability to project a common agenda
NEPAD
Nairobi +254 20829062 Or email them to Dar-es-Salaam +255 222460820 letters @busiweek.com or Kigali +250 252504165 editor@busiweek.com Bujumbura +257 79 (76) 918854
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TRANSPORT
East African Business Week I November 18 - 24, 2013
Rwanda carrier renews SAA deal
BRIEFLY KQ’s Naikuni set to quit during 2014 nNAIROBI - After 10 years at the top, Titus Naikuni, the Kenya Airways (KQ) Chief Executive Officer plans to retire in 2014. Unlike recent years, Naikuni can also report to shareholders that KQ is firmly in the black, after recordubg 108% rise in its half year profit before tax results. Ten years ago, Naikuni was a member of a select group of World Bank sponsored Kenyan technocrats, known as the ‘Dream Team’ that was engaged during the Moi regime to turn around the economy.
Chinese likely to build new Tanzania railways n TANGA - China Railway Number Two Engineering Company is the frontrunner to build the new Tanga-Arusha -Musoma railway line. According to media reports here, transport minister, Dr Harrison Mwakyembe said last week, this is the same company that constructed the TAZARA line during the 1970s. “Our experts are still going through some final analysis before submitting to the government for the work to start so we are moving,” he said.
Arab multilaterals told get closer to Africa KUWAIT CITY - Arab and African development institutions were urged to provide more technical assistance, to build administrative and technical capacities in the Arab and African regions. This would help encourage African and Arab contractors, consultants and suppliers to participate in implementing projects financed by these within the framework of adopted policies and procedures. This was a key point raised in a two-day Arab/Africa Economic Forum hosted by Kuwait last week.
BY AGNES BATETA
FERTILISER CONTRACT: The two railways jointly moved 13 trains with 297 wagons from Dar port.
TAZARA handles big fertiliser contract
BY PATRICK KISEMBO
nDAR ES SALAAM, Tanzania--– Over 12,400 metric tonnes of fertiliser have so far been hauled from Dar es Salaam port by the Tanzania Zambia Railway Authority (TAZARA) and Zambia Railways Limited (ZRL) in a joint haulage contract. This is part of the 25,000mt of urea top dressing fertiliser imported by the Zambian government from Saudi Arabia under the Farmer Input Support Programme (FISP) for the 2013/14 farming season. The job, which was launched in Dar es Salaam on October 10th 2013, has seen the two railways jointly move 13 trains with 297 wagons. Some 237 out of the 297 wagons or over 9,015mt has already reached the intended destinations along at Mwenzo, Mpika and Serenje. Sixty wagons with 3,386mt are still in transit, accord-
50,000 metric tonnes Total consignment
12,000mts
Amount already delivered
$58 million
Value of consignment
ing to the TAZARA’s interim Managing director, Eng. Ronald Phiri. “We are on course and have conveyed over 12,000mts in just under three weeks. I believe that despite a few limitations here and there, we are in a position to clear the 25,000mt by the middle of November 2013,” Phiri said. He said TAZARA is moving the consignment from Dar es Salaam to Chozi, where ZRL takes over and delivers to the intended destinations, where other transporters pick up the commodity for onward distribution to different parts of the country. Recently the Zambia government assured farmers that transportation of the fertilizer is progressing well. Zambia’s Acting Chief Executive
Officer for Nitrogen Chemicals, Zuze Banda confirmed to the National Agricultural Information Services (NAIS) in Dar es Salam last week that the imported fertilizer was under Farmer Input Support Programme-FISP for 2013-2014 farming season. Banda assured the farmers that NCZ was ready to distribute the urea fertilizer to the various districts as soon as it landed in Zambia. The fertiliser is being transported from the Port of Dar es Salaam to various points along the Tanzania Zambia Revenue Authority (TAZARA) on the Zambian side. The government of Zambia in early had intended to purchase about 150,000 metric tonnes of fertilisers worth $58,200,000 from Saudi Arabia Basic Industries Corporation (SABIC), for the 2014 agricultural season. Recently, Phiri issued a statement stressing that the TAZARA’s future was bright, but needed money for revamping.
n KIGALI, Rwanda-Rwandair and South African Airways have signed a new code-sharing agreement effective December 7. “This is the fourth deal for Rwanda carrier,” the airline Chief Executive Officer John Mirenge said last week. He said to date, they have signed deals with the Air Uganda, SN Brussels and Ethiopian Airlines. Rwandair flies seven times a week between the two cities. The airline will be carrying passengers, while their South African counterparts will be marketing the route, as laid out in the deal. “This is a great step to developing the Rwanda’s aviation,” Papa Manoj, the SAA General Manager said. He said Rwandair’s professionalism and strong adherence to safety standards makes Rwanda a great partner in the region to help boost the aviation industry. “This deal is again to help develop Kigali in to a stronger aviation hub, connecting it with other very important hubs like the Oliver R. Tambo International Airport,” he said. Mirenge said, “It will again allow the two airlines to join their respective networks.” “This is going to allow South African Airways passengers who travel from Johannesburg to Kigali a single ticket even when connecting from another destination other than Johannesburg,” Robert Nsinga, the head of communications added. According to Rwanda Civil Aviation Authority the number of passengers passing through Kigali International Airport has grown from about 280,000 arrivals five years ago to 500,000 in 2012.
Rains block S. Sudan-Uganda road nJUBA,South Sudan--- Heavy rains in recent weeks, have flooded parts of the road between Ugandan towns of Bibia and Elegu causing a pile-up of trucks between Gulu in Uganda and Nimule in South Sudan. Reports say thay the Uganda government is working towards repairing the damaged section of the road. “The traffic has become very, very slow and vehicles got stuck and there is a lot of water, potholes in that area and the situation of the road is not good,” Lt. Col. Emmanuel Guya Simon, the Head of Customs at Nimule station said during a news conference last week. “It is really a very big blow. This
month of November, we shall have very minimum collection of revenue and this shall affect us as a government in terms of revenue,” Guya said. Currently, customs officials said less than 10 trucks enter South Sudan daily through Nimule, compared to more than 200 when the traffic was normal. “We advised traders to take the route through Kaya, because this is going to take three to four weeks to repair,” said another customs official, adding, Traders importing cows, goats and chickens have had to move on foot with their animals to Nimule, where they find other transport means to Juba. South Sudan relies largely on imports
for its food, fuels and building material. Officials estimate that 80% of all imports to South Sudan pass through Nimule, the only paved road connecting Uganda to Juba. Steep transport costs from Uganda is a major reason for relatively high prices for several commodities in South Sudan and especially Juba. According to the World Bank, aggregate of various costs incurred after good pass the border post up to the final market—is roughly 40 percent higher in South Sudan than in Uganda. Traffic on the Gulu-Nimule road has been disrupted five times this year by weather-related causes.
STUCK: South Sudanese Customs are losing revenue.
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ADVERT
East African Business Week I NOVEMBER 18 - 24, 2013
Arusha residents not happy with Symbion Power BY ANDREW ZABLON MWANZA, Tanzania – One of Symbion’s Power thermal plants in Arusha has become a target of public criticism. Complaints range from chest pains, coughing and noise. Arusha residents wonder why the plant was built in a residential area. The Managing Director of Symbion Power Tanzania, Peter Gathercole confirmed to East African Business Week recently in a statement that ‘Symbion has been informed about the concerns of some Arusha residents. Symbion did not select the site for this power plant and that it is an emergency plant that operates on liquid fuel,’ he said. ‘Unfortunately, due to a shortage of natural gas in Dar es Salaam and the lack
of rain at the Mtera Dam and other hydro-power stations in Tanzania, TANESCO has very little option other than to utilize liquid fuels in the short term,” he said. “If we stop running this plant it will create an immediate power shortage in the Arusha region and affect approximately one million people, as well as the industrial sector. The location of the site is determined by its necessity to be in close proximity to the power system,” he said. However, Gathercole said because it is an emergency power plant it will eventually be removed and replaced with grid power and that the Tanzania government and Tanesco are taking steps as we speak to deliver grid power. ‘Symbion takes it’s orders from TANESCO and we believe that the importance
of delivering critical power to the people of Arusha has been the overarching requirement with regard to the referenced power plant,’ Gathercole. However, TANESCO Public Relations Manager, Badra Masoud has not responded yet despite several calls and email messages from East African Business Week. The power plant supplies 50MW — under the publicprivate partnership drive aimed to solve the power crisis in 2011. The plant was part of a comprehensive emergency power plan which aimed at pumping more electricity into the national grid to ease the crisis in the country. In the implementation of the emergency power plan, the US-based Symbion Power was contracted to produce and supply to Tanesco 205 MW.
INTERNATIONAL OPEN TENDER NOTICE The Ministry of Sports and Culture (MINISPOC) is inviting bidders for the following consulting services: Number of Tittle of tender tender
N°120-00-46 opened at National Bank of Rwanda.
Bid security 800,000 Rwf
No 020/S/ IOCB/ MINISPOC/ 2013-2014
Development of a business plan for the privatization of the management of Amahoro National Stadium
No 021/S/ IOCB/ MINISPOC/ 2013-2014
400,000 Rwf Development of a business plan for Rwanda Library Services
Request for Proposal (RFP) may be obtained from the Procurement office of the Ministry of Sports and Culture from 18th November 2013, upon presentation of proof of payment of a non refundable fee of ten thousand Rwandan francs (10,000 Rwf) to Rwanda Revenue Authority Account Amahoro National Stadium, Remera B.P. 1044 – KIGALI
Well printed proposals, written in English, 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 6th January 2014 at 2:00 pm local time. Late proposals will be rejected. The technical proposals will be opened on the same day in MINISPOC conference room at 3:00 pm. in the presence of bidders or their representatives. The eligible bidder will be selected under quality and cost based selection (QCBS) method and procedures described in this Request for Proposals (RFP), in accordance with the Law of Public Procurement. KALISA Edward Permanent Secretary
Fax/Tel: (250) 252 583531/ (250) 583518 E-mail : info@minispoc.gov.rw Website: www.minispoc.gov.rw
PUBLIC NOTICE CLEARANCE OF GOODS OUT OF CUSTOMS In a bid to ensure faster clearance of goods, enhance effective service delivery and improve accountability, the general public is hereby informed that the following measures are being implemented: 1. Customs Stations located inland, including Bonded Warehouses will operate up to 5pm on Saturdays. Arrangements are being made with banks that have branches in Nakawa to extend their working hours on Saturday. Customs operations on Sundays will be limited to receipt and validation of cargo and motor vehicle units into Bonded warehouses. 2. With effect from January 2014, appointment of Customs agents to handle consignments will be done electronically. After appointment, Customs agents will be electronically linked to the companies that appoint them. 3. With effect from January 2014, cargo including motor vehicle units in transit into/through/out of the country will be monitored electronically through the use of electronic tracking system. Arrangements will be made to enable transporters and other parties with legitimate interests to access information about their trucks and units during transit. 4. Entries for home consumption or warehousing shall be processed and released within 24working hours of their on-line submission. 5. In cases where on-line requests for clarification during declaration processing are not responded to within 24 hours, the system will automatically block subsequent transactions until the required clarification is provided. 6. Goods released for verification will be verified within 12 working hours after on-line issuance of a
verification notice. Customs will proceed and verify the goods in presence of the bond keeper in case of absence of the Customs agent. 7. Construction works for One-Stop Border facilities at Malaba, Busia, Mutukula and Mirama Hills are currently ongoing and there is a constraint of space. In order to ensure minimal delays at the borders and avoid traffic build up at the above entry points, consignments with more than five assorted items and destined to inland destinations will be forwarded to the nearest inland customs station for clearance. 8. Customs warehouse rent will be charged on trucks that park and delay at the borders. To this effect, Customs declarations must be lodged within 12 hours of arrival and trucks will be required to leave the Customs area within 3 hrs of release by Customs. 9. URA will continue to notify and update importers and exporters on the status of their declarations through SMS. 10.Malaba and Busia border stations will continue to operate 24 hours and agents are urged to extend their working hours as well. 11.Commercial Transporters are requested to closely monitor the movement of their trucks to ensure that they do not stop unnecessarily along the road and trading centres. Richard Kamajugo COMMISSIONER CUSTOMS DEPARTMENT
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SPECIAL REPORT
East African Business Week I November 18-24, 2013
POOR HARVEST: There are few guarantees in farming and so banks tend to classify agriculture lending as a high risk business prone to all types of uncertainities like bad weather.
Not enough potatoes to to convince your bank BY BAZ WAISWA
nKAMPALA, Uganda
E
xperts say the realization of the full potential of agriculture in developing Africa, is through rolling out fully fledged commercialization of farming techniques, including the raring of animals and birds. Few have any quarrel with this. However this can only be achieved if people involved in farming have the financial muscle which most of them across Africa just do not. Yet this is a sector that has to undergo a transformation from traditional approaches to modern methods. This is also means that both small-scale and commercial farmers have to devise ways of getting this money to inject into their production. In most cases, and with the high levels of poverty rampaging through Africa, farmers turn to financial institutions to get credit to inject into their farm projects. Unfortunately, the financial institutions, especially the commercial banks due to the nature of agriculture in developing Africa and the risks associated with such investments, have not been forthcoming in providing such credit readily. Coming up with collateral acceptable to the banks remains the biggest problem. In Uganda the story has not been any different. Agriculture lending despite picking up from 2010 after a slump between 2007 to 2009, remains relatively low. Farmers are struggling to access agricultural loans from banks due to a number of issues including the cost of borrowing. What commercial banks lent out Commercial banks constitute the biggest percentage of the total number of regulated
financial institutions in Uganda. The others are credit institutions and microfinance deposit-taking institutions. In the 2012, commercial banks contributed 95% of the money loaned to agriculture sector while MDI and Credit Institutions contributed 4 percent and 1 percent. Statistics available on the performance of agriculture lending indicate that total agricultural lending increased to be just over 10% of total bank lending (the first such), since monitoring of these data began with the 2007 Yearbook on Agriculture Finance was published. According to the Agricultural Finance Yearbook 2012 released by Bank of Uganda and Ministry of Agriculture, Animal Industry and Fisheries, in 2011, agricultural lending increased by Ush213 billion from Ush353 billion in 2010 to Ush566 billion (about $220 million) in 2011. Also in 2012, agricultural lending increased further by Ush133bn from Ush566bn to Ush699bn in 2012. The increase in agricultural lending in 2012 is attributed to a number of reasons some which include increase in commercial banks and their increasing interest in lending to agriculture. Government provided lending to agriculture sector through the Ush30 billion Agricultural Credit Facility (ACF) and by giving medium term loans to agriculture and agro-processing on more favourable terms is another factor. Other factors have been robust marketing, dissemination and sharing of agricultural finance information and experiences and an enabling regulatory environment has made it possible for banks to join the sector. Reduction in long-term financing The volume of credit directed to production decreased if compared to 2011 although short term lending for production nearly doubled, this was more offset by big reductions in medium and long-term lending.
In the same manner, the volume of credit for agricultural processing declined by 2 percent, having significantly increased in 2008 and steadily increased in 2009 to 2011. The main interest here is whereas medium term (1-3 years) financing for processing declined, long term (more than 3 years) financing for processing increased. For production finance, the increase was a result of big expansion of short term loan volumes. Leases for agricultural machinery decreased by over 11% in 2012, and contributed only 2 percent of total lending compared to the 3 percent in 2011. Leasing when included by financial institutions in their agricultural investment portfolio, is a financial product chiefly for acquisition of agricultural machinery. For 2011/2012 there has been a drop in leasing volume, by value. It seems that this type of financial product has failed to become established, as regards agriculture This indicates a steadily reducing contribution of leases to agricultural lending from 4 percent in 2010 to 3 in 2011 and to now 2 percent in 2012. The reduction could also be attributed to banks facing stiff competition from equipment suppliers. Over the last two decades, the agricultural sector has accounted for almost 60% of visible export earning with coffee leading. Financing agriculture is a risky venture and costly due to its rural nature where servicing of loans is difficult and administratively expensive. The farmers involved are smallholder farmers who are prone to climatic calamities, pests and diseases and market fluctuations. Finding financing for a small farm is one of the most challenging obstacles for agricultural entrepreneurs. There aren’t many options, the options that exist are often reluctant to invest in agriculture, especially in beginning farmers, and few farmers have the experience and specialized knowledge to assemble a loan application with ease.
How to get a agriculture loan
F
inancial institutions in Uganda, like banks and insurance companies have on the market agriculture credit facilities which they offer to the public. These financial institutions have in the past come under attack for making access to this credit very expensive. To get a loan from Centenary Bank a client with need to own a Savings or Current account with the bank, undertake an activity in the agriculture value chain, reside in project area, be a land owner with title and pay an application fee of Ush15,000. The applicant must also pay a commitment fee of 2% and be a holder of a financial card. The loan period for working capital purpose is up to a maximum of 12 months but development or investment may exceed 12 months. The loan can be paid back in installments as agreed depending on the projected cash flow of the agricultural activity. Crane Bank is backed by government’s Agricultural Credit Loan (ACF) to offer it Agricultural Credit Loan that offers interest that is subsidized. Crane Bank offers loans up to Ush2.1 billion which represents 90% of the project cost payable over a period of 6 months - 8 years with a grace period of up to 3 years. it offers lending rate as low as 12%. This loan can help in the acquisition of agro-processing machinery and equipment, purchase of fixed assets for agro-processing, agriculture mechanization and modernization and development of post-harvest handling equipment and storage. Like Crane Bank and Centenary Bank, commercial banks in Uganda are offering loans designed to take care of the entire agricultural value chain including value addition. The requirements are quite similar. From crop production, processing to marketing of products farmers are empowered to undertake their investments. Interestingly, large commercial farmers have always a better chnace to get their loans approved than their small holders.
11
JOBS
East African Business Week I November 18-24, 2013
UNITED NATIONS DEVELOPMENT PROGRAM
Empowered lives. Resilient nations
JOB OPPORTUNITIES UNDP Tanzania is seeking to hire seasoned professionals for the Democratic Empowerment Project (DEP) in Tanzania. The Democratic Empowerment Project (DEP) is a four years (2013-2016) UNDP, UN One Fund and other donorfunded project with the overall aim of contributing to Tanzania’ s UNDAP’ s Outcome 7: i.e. “ key institutions of democracy, (i.e. EMBs, etc.) effectively implement their election and political functions” . UN Women and UNESCO are implementing partners in a One UN Country Team context. The DEP will be executed directly by UNDP and implemented under the overall guiding principle of national ownership and leadership in the electoral process. UNDP is looking for suitable and highly qualified individual Tanzanian nationals for the following positions under the Democratic Empowerment Proj ect: Election Inclusion Analyst, Zanzibar Location: Z anzibar Level of post: SB 4 Type of Contract: Service Contract Link: https://jobs.undp.org/cj_ view_ job.cfm? job_ id= 41724 Deadline for submission of applications: 29 November 2013 Voter Education Outreach Analyst, Zanzibar Location: Z anzibar Level of post: SB 4 Type of Contract: Service Contract Link: https://jobs.undp.org/cj_ view_ job.cfm? job_ id= 41725 Deadline for submission of applications: 29 November 2013 Community Dialogue Analyst, Zanzibar Location: Z anzibar Level of post: SB 4 Type of Contract: Service Contract Link: http://jobs.undp.org/cj_ view_ job.cfm? cur_ job_ id= 41726 Deadline for submission of applications: 29 November 2013 Driver, Zanzibar Location: Level of post: Type of Contract: Link: Deadline for submission of applications:
Z anzibar SB 2 Service Contract http://jobs.undp.org/cj_ view_ job.cfm? cur_ job_ id= 41723 22 November 2013
Gender Specialist, Dar es Salaam Location: Dar es Salaam Level of post: SB 5 Type of Contract: Service Contract Link: http://jobs.undp.org/cj_ view_ job.cfm? cur_ job_ id= 41714 Deadline for submission of applications: 29 November 2013 Election Inclusion Analyst, Dar es Salaam Location: Dar es Salaam Level of post: SB 4 Type of Contract: Service Contract Link: http://jobs.undp.org/cj_ view_ job.cfm? cur_ job_ id= 41728 Deadline for submission of applications: 22 November 2013 V oter Education Outreach Analyst, Dar es Salaam Location: Dar es Salaam Level of post: SB 4 Type of Contract: Service Contract Link: http://jobs.undp.org/cj_ view_ job.cfm? cur_ job_ id= 41729 Deadline for submission of applications: 22 November 2013
Elections ICT , Dar es Salaam Location: Level of post: Type of Contract: Link: Deadline for submission of applications:
Dar es Salaam SB 4 Service Contract http://jobs.undp.org/cj_ view_ job.cfm? cur_ job_ id= 41730 22 November 2013
Communications Analyst , Dar es Salaam Location: Dar es Salaam Level of post: SB 4 Type of Contract: Service Contract Link: http://jobs.undp.org/cj_ view_ job.cfm? cur_ job_ id= 41731 Deadline for submission of applications: 22 November 2013 Community Dialogue Analyst, Dar es Salaam Location: Dar es Salaam Level of post: SB 4 Type of Contract: Service Contract Link: http://jobs.undp.org/cj_ view_ job.cfm? cur_ job_ id= 41732 Deadline for submission of applications: 22 November 2013 Finance Analyst, Dar es Salaam Location: Level of post: Type of Contract: Link: Deadline for submission of applications:
Dar es Salaam SB 4 Service Contract http://jobs.undp.org/cj_ view_ job.cfm? cur_ job_ id= 41716 29 November 2013
Administrative Associate, Dar es Salaam Location: Dar es Salaam Level of post: SB 3 Type of Contract: Service Contract Link: http://jobs.undp.org/cj_ view_ job.cfm? cur_ job_ id= 41717 Deadline for submission of applications: 29 November 2013 Two (02) drivers, Dar es Salaam Location: Level of post: Type of Contract: Link: Deadline for submission of applications:
Dar es Salaam SB 2 Service Contract http://jobs.undp.org/cj_ view_ job.cfm? cur_ job_ id= 41721 22 November 2013
Mode of Application and Terms of Reference Interested Candidates are invited to apply through the links indicated above for each position. Women are particularly encouraged to apply. It is strongly advised to carefully read the Terms of Reference before applying. Note: 1. Kindly note that the P11 Form is mandatory, and can be found from this link : http://www.tz.undp.org/content/dam/tanzania/P11_Personal_history_form_UNDP. doc . 2. UNDP does not charge any fee at any stage of its recruitment process (application, interview, processing, training, visa or other fee). 3. Only short-listed applicants will be contacted for further steps.
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INFRASTRUCTURE
East African Business Week I November 18- 24, 2013
IMF backs Uganda project outlook
BRIEFLY Uganda power utility gets $190m funding nKAMPALA - The World Bank Group private lender, International Finance Corporation, Standard Chartered Bank and South Africa’s Standard Bank have put together a $190 million for Umeme. Umeme is Uganda’s electricity distributor and the loan is to pay for a countrywide system upgrade. According to Umeme the additional money would support its $440 million capital investment program to cope with rising demand and cut energy losses. Umeme holds a 20 year concession.
Bulk of $2bn Eurobond for Kenya projects nNAIROBI - Kenya’s Treasury Secretary Henry Rotich, said last week, the $2 billion Eurobond the governmnet hopes to issue early next year is for major infrastructure projects. “We have massive infrastructure plans with key transformative projects we need to invest in now to take our growth to a higher level,” he said. Kenya wants to reach middleincome status by 2030 and the government believes spending on new infrastructure projects can underpin this goal.
South African firm helps in Kigali talks nKIGALI - PPC Limited, the leading cement manufacturer in Southern Africa, and a key investor in Rwanda’s only cement producer Cimerwa, sponsored this year’s East African Investment Business Summit in Rwanda. The summit, which was hosted by the Rwanda Development Board (RDB), took place last week and attracted several key players. PPC already has a footprint in Rwanda having purchased 51% in Rwandan cement company Cimerwa for over $69 million at the end of last year. Current demand for cement in Rwanda is about 350,000 tons per annum.
BY JOHN SAMBO
CLUTTER: Instead of each company building their own towers, Helios gets paid for providing this service.
Helios Towers in Tz to help cut overheads BY LEONARD MAGOMBA nDAR ES SALAAM, Tanania--The sharing of communication towers among the telecom companies has been proposed as the most effective ways to cut operational costs and lower consumer prices. Previously each company had to build and manage their own towers before offering services. This meant incurring high operational costs. The Helios Towers Tanzania (HTT) Sales and Marketing Director, Michael Magambo told East African Business Week this was not longer sustainable. “It’s true…the emergence of independent communication towers has resulted to the lowering of operational costs for telecom companies along with lower consumer rates,” Magambo said. Magambo said when previously each operator has to build and manage their own towers, it required them to take on high initial invest-
300
New towers built since 2010
64%
Helios’ share of growth
50%
Helios’ share of new sites
ment and high operational costs. Money was needed for running generators, providing security and managing other site activities. Magambo said this also led to many towers in one area or a hill targeting to serve the same population. This is where independent tower companies like Helios come in. He said they own, manage and operate the towers, which can be leased to multiple telecom companies at once and also to others such as television and radio broadcasters and meteorological agencies. “With the removal of the burden of a high infrastructure investment
plus site management activities, telecom companies can focus their energy on what they do best; to provide voice and data services to Tanzanians,” he said. HTT is the largest independent tower company in Tanzania, having acquired Milicom Tanzania’s 1000plus towers in 2010. It has since built 300 more sites and expects to add another in the coming months. In the last two years, Helios accounts for 64% of all growth in points of presence and for 50% of all new sites in the country. Magambo said, “Many people are not aware of the role that we play in driving the telecom industry.” He added, “Though they understand how telecommunications has transformed Africa, connected it to the world, enabled economic activity that has lifted people out of poverty and introduced products such as ‘Mpesa’ that foster financial transactions amongst people that were previously impossible.”
n KAMPALA, Uganda--A visiting International Monetary Fund team last week said Uganda’s economic outlook is good and implementation of new infrastructure projects will boost growth. Ana Lucía Coronel, IMF mission chief and senior resident representative for Uganda said in a statement, “The economic outlook is favorable. With low inflation and higher growth, market confidence is set to induce some recovery in credit to the private sector.” She said significant investment in hydropower and road projects is expected to stimulate employment and help bring output closer to potential while addressing critical infrastructure bottlenecks. The IMF team projected growth to reach 6.25% percent this year, but inflation will stay within the program target band, and debt to remain sustainable notwithstanding increased borrowing requirements. According to the statement, international reserves would temporarily decline as infrastructure-earmarked government funds at the Bank of Uganda are used to cover the government’s share of project financing, but would remain at a comfortable level. However the IMF said there are risks to the outlook related to instability in the region, spending pressures, governance weaknesses, and capacity constraints in management and implementation of large projects. The mission backs BOU’s commitment to exchange rate flexibility and its intention to limit its interventions in the forex market.
Japan gives $24m for new Rwanda-Tanzania bridge BY AGNES BATETA
NEW: Completion date is scheduled for February 2014
nKIGALI, Rwanda--The Japanese government, through the Japan International Cooperation Agency (JICA), is providing $24 million (about Rwf 16 billion) for building a new bridge between Rwanda and Tanzania. The current Rusumo Bridge is 40 years old and spans the River Akagera. “Construction of this new 80-metre –width bridge will provide permanent use of the two lanes needed for clear transportation of goods in this area,” Eng. Honore Munyanshongore of the Rwanda Transport Development Agency said last week.
According to official sources construction is being undetaken in five phases and completion is scheduled for February 2014. The new bridge is expected to improve on the economic development of the two countries which will be done through improving regional integration and cross-border trade. JICA will also work on the two kilometre road connecting the two customs offices and also equip both sites with all the necessary equipment in addition to laying out parking space. Munyanshongore said, “It (the bridge) will again increase on speed limit from five kilometres per hour to 30 kph. “This new facility can accommodate 180 tonnes whereas the old one could only
support 32 tonnes,” he said. Sources say in 2009, Rusumo border registered about 96 trucks and trucks a day but 2012 saw about 205 trucks for and trailers carrying goods through the border on a daily basis. It is estimated that in five years to come, the trucks carrying goods will be between 500 and 700 daily. In a recent meeting between Japanese Prime Minister Shinzo Abe and Rwandan President Paul Kagame, it was agreed that Japan would continue to provide assistance for economic and social development in Rwanda through such means as the new non-project grant aid which Japan has recently decided to provide.
BUSINESS
FIRST OIL SALES EXPECTED IN 2016 The oil and gas sector in Uganda is progressing from Exploration to Development in preparation for production.
DIGEST
TO PAGE 14
BUSINESS WEEK, November 18-24, 2013
HIGHLIGHTS OF THE POWER SUB-SECTOR PERFORMANCE 2011/12 Installed capacity
Plant
Installed capacity
Bujagali
250MW
Kinyara Sugar Works
5MW
Nalubaale+Kiira
380MW
Bugoye
13MW
Namanve(Jacobsen)
50MW
Mpanga
18MW
Kakira Sugar Works
50MW
Ishasha
6.5MW
Electromaxx
50MW
Kabalega HPP
9MW
Kilembe Mines Ltd
5MW
Nyagak 1
KCCL
9.5MW
Plant
3.5MW
Donors query electricity subsidies BY EMMA ONYANGO n KAMPALA, UGANDA - The seemingly brief interlude of surplus electricity is coming to an end and the government is being advised to adopt a more cost reflective enduser tariff system to encourage further investment in the sector. In other words, rates that make it worthwhile for investors to add more electricity generation capacity. The donors say these tariff review mechanisms will allow to pay for power generation needed and to adjust the tariff to inflation and oil price fluctuations. Speaking on behalf of the development partners at during a Joint Sector Review workshop last week, German Ambassador to Uganda, Klaus Dieter Duxmann said the hydro-electricity plants like Bujagali and Isimba as well as other mini power stations that were recently commissioned, are almost reaching full capacity due to increased demand. “The only short term solution lies in the operation of the existing but expensive thermal plants which puts government in a hard place because the current end user tariffs do not cover the cost of thermal
generation. This will therefore lead to a need to subsidize electricity consumption and increasing the tariffs,” he said. The Ambassador said: “As development partners, we are encouraging the government to adhere to its policy of cost reflective tariffs, because using limited government funds to subsidize electricity consumption of the privileged 15 percent at the expense of the majority of Ugandans is not only unfair, but also impedes sustainable development in the country.” Duxmann, who is also the chairperson of the Energy and Minerals Development partners group, stressed that public funds should be channeled towards infrastructure development, improving sustainable access to electricity for all rather than putting a big chunk of it into subsidizing costs. “Sure, it is a painful choice and we acknowledge that cost reflectiveness and affordability of electricity needs to be balanced especially in a country like Uganda that is trying to modernize its economy and extend electricity services to a larger part of its population.” He said: “This is why as development partners, we are supporting the government in its attempt to
Klaus Dieter Duxmann reduce the cost to the consumers through public investment in new electricity infrastructure like transmission and distribution lines to and from the power plants by providing grants and concessional loans.” Figures from the Ministry Energy and Mineral Development show that electricity consumption per capita of Uganda has doubled and now stands at around 150kwh which puts the country in the same range as Kenya. However Rural Electrification Agency (REA) figures show that the
share of people having an electricity connection is increasing slowly currently standing at about 15 percent of the population. Duxmann said rural areas are still lagging behind, currently at about 7 percent, but efforts are being made to address this with a comprehensive approach designed in the rural electrification strategy out Godfrey Werikhe, the Manager Project Development and Management at REA said the government with support from the World Bank has developed a new $951 million Rural Electrification Strategy and Plan 2013-2022 which has been approved as policy. “The overall objective is to position the Rural Electrification program on a path that will progressively advance towards achievement of universal electrification by 2040. The target is to achieve rural electrification access rate of 26 percent of the estimated rural population by 2021, that is approximately 1.3 million service connections,” he said. He said the rural electrification services and infrastructure wouldl be managed by duly licensed nongovernmental concession holders with assistance to reduce their commercial risk. He however said the electricity
for all by 2040 project is very costly with a requirement of an approximate $200 million per year for the 2013-2022 period. According to the Electricity Regulatory Authority (ERA), Uganda currently has an installed capacity of 835MW with an average available capacity at peak of 609MW. However with a growth of approximately 10 percent in demand per year, there is need for increase in generation and power supply. The Uganda Electricity Generation Company (UEGCL)reports that 50 percent of the feasibility studies for the 600MW Ayago Hydropower Project have been completed and a new consultant is being contracted to complete the remaining 50 percent. A memorandum of understanding has been signed between Uganda and China’s Gezhouba Limited for the Engineering, Procurement and Construction contract. Referring to the 600MW Karuma Hydropower project, UEGCL revealed that the Engineering, Procurement and Construction contract was awarded to Sinohydro Corporation Limited while a supervision contract has been awarded to Energy Infratech PVT Limited. Works are already in progress on site and the project duration is 60 months.
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BUSINESS DIGEST
East African Business Week I November 18-24, 2013
Capital invested in seismic surveys, exploratory and appraisal drilling totaled $1.8billion by the end of 2012 and is projected to reach $2.5billion by the end of 2013
First oil sales expected in 2016 FY2014/15, the ministry will undertake licensing of the unlicensed and relinquished areas in the Albertine Graben, develop the National Content Policy and Plan for the oil gas activities among other undertakings. He also added, “In the midstream, we will conclude the compensation and resettlement of project affected persons and conclude the land acquisition for the pipeline way leaves. Formation of a Special Purpose Vehicle for the development of the refinery and promotion of investment for pipeline and storage facilities will also be done.” Tugume thus concluded, “The oil and gas sector in Uganda is progressing from Exploration to Development in preparation for production. Government has progressed significantly in the refinery development plans and there is need for different stakeholders to support this development.”
DeJongh as a Transaction Advisor to guide on the key aspects of refinery development like securing appropriate investment partners, advising on best contractual agreements, advising on the pricing framework of both crude oil and refined products. A request for qualification for the lead investor was prepared and advertised in local and international media during October 2013.” A developer for the refinery is expected to be identified by April 2014, a final investment decision will be made in 2015, Engineering, Procurement and Construction will commence in 2016 and the commissioning of the first 30,000 barrels per day refinery will be in 2016/17. Expansion to the 60,000 barrels per day refinery will be in 2018/19 while the 120,000 barrel per day refinery will be done in 2022. Tugume added that in the
INVESTMENT TREND IN THE OIL 99 AND GAS SECTOR
2000
87
1500
No of wells drilled
2500
60 49
YEAR
2013
2012
2011
2010
2008
9
14
2007
2005
12 2003
0
3 4
2006
500
22
36
2009
1000
2004
Uganda’s total oil discovered is 3.5 billion barrels with 1.2 billion barrels being recoverable
of the decade. So why the holdup? What is at stake?” “One of the oil bills currently up for debate – a broader public finance bill with a chapter on oil revenues – could essentially determine how much of Uganda’s oil money trickles down to the people. The other bill, dealing with the downstream sector, has a proposed oil refinery at its heart and is complicated by negotiations with international oil companies about the size of the refinery to be built,” reads his article in part. Tugume however maintains that with the enactment of the new petroleum laws, preparations for new licensing are ongoing and will be taken through open competitive bidding rounds. “The oild and gas industry is very capital intensive and risky but despite that, risk capital invested in seismic surveys, exploratory and appraisal drilling totaled $1.8billion by the end of 2012 and is projected to reach $2.5billion by the end of 2013. “This is significant investment and will rise to many fold with further investments expected in development, production, processing and transportation of crude oil.” He added that government is establishing the National Oil Company and has commenced the process of setting up the Petroleum Authority of Uganda. Establishment of the Petroleum Directorate is to done through the restructuring of the ministry. Tugume also said that Phase-2 for the construction of the Oil and Gas Data Center, office accommodation, meeting rooms, core store and laboratory building is ongoing and is slated to end by March 2014. On the development of the refinery, he said that the land acquisition process has progressed with a Resettlement Action Plan study completed and the compensation of the project affected persons commencing in July 2013 and expected to conclude in March 2014. “The ministry hired Taylor
2002
n KAMPALA, UGANDA - To most Ugandans, the announcement of the discovery of commercial oil deposits in Uganda during 2006 was just only a story. They would only believe it once the ‘stuff’ actually started flowing and was available at their nearest fuel stations! In hindsight they have a valid point given that it’s been seven years since the government first made the announcement of striking oil. But the truth is that the ‘black gold’ as it is referred to in some circles still isn’t flowing and won’t be for a while. This is inspite of a landmark oil bill finally passed in December last year. Media reports had earlier stated that the ‘first oil’ would have come in 2011, some revised it to 2013 and the latest now say that it will come in 2016/17 when the 30,000 barrel per day oil refinery is set up. Responding to a query during the Joint Sector Review of the energy sector in Kampala last week, Robert Tugume a Principal Geologist at the Petroleum Exploration and Production Department in Uganda’s Ministry of Energy and Mineral Development said that Uganda’s first production will be in 2016 or 2017. “The first major oil revenue which will be complete to the extent of refining will come in 2016 or God willing 2017. Government is also considering utilizing some of the gas and crude oil before then to produce some electricity, about 50MW to supplement the national grid. It is an ongoing project,” he said. He continued, “There is also about 30,000 barrels of crude oil that was generated during the testing and drilling. There are preparations to either auction or sell them. That is negligible but it is also some revenue.” Tugume explained that the government is also already benefiting from the oil as a result of the taxes the oil companies paid during the farm down between Tullow, Total and
CNOOC (China National Offshore Oil Company). He said the four Production Sharing Agreements (PSAs) signed with the three oil companies have also given Uganda extra revenue from the signature bonuses paid. Since the discovery of oil in Uganda, 112 wells have been drilled in the Albertine Graben with 99 well encountering hydrocarbons with 40 percent of the area explored. 21 fields have been discovered and three were considered sub commercial and returned to government. Tugume says the remaining 18 fields have been taken forward for appraisal and applications for production licences for nine have been submitted. One production license to CNOOC has been granted so far. With 40 percent of the Albertine Graben explored, Uganda’s total oil discovered is 3.5 billion barrels with 1.2 billion barrels being recoverable. Some analysts are however skeptical as to whether the oil will even flow during this decade owing to the prickly refinery issue. Two more oil bills need passing and the refinery issue needs resolving before any Ugandan oil flows, they argue. Amrish Naresh, in an article published in www.openoil.net claims that “Infighting and gridlock seem to have paralyzed the government to the point that it’s fair to wonder whether production will even begin by the end
INVESTMENT (US$ million)
BY EMMA ONYANGO
15
BUSINESS KNOW-HOW East African Business Week I November 18-24, 2013
Selling Products in the Village HOW TO SELL YOUR PRODUCT IN THE VILLAGE
Hope Wilson
I have stoves on sale. Today I am offering a 30% discount on every stove.
Is your stove more effective than firewood? I want a demonstration
MARKETING MOXIE n KAMPALA, UGANDAI recently attended a summit with leaders from several African countries, investment banks, and technical firms. Over a dinner of buffalo burgers and sweet potato fries, the president of one engineering firm asked, “What’s the best way to promote new products and services in African villages? We have something that can be of great benefit to people in these communities, but we don’t know the best way to market it.” This is a good question; it is one that our East African Business Week readers have asked me as well. Today, let’s talk about some ways that we can connect with this target market. Door-to-Door Sales Door-to-door sales is the process of traveling to all of the homes in an area in order to sell a product or service. This is a very common method of sales throughout much of the world. Some people believe that this is the only way to reach target markets that lack telephone service. One benefit of door-to-door sales is that it creates an opportunity to meet individually with each of your potential customers. Your sales team can take time to listen to their needs, thoughts, and concerns; your company may even develop ideas for other products or services that will help your target market and generate more income. However, because this approach takes so much time, you may not get a good return on your investment. Even if you make sales, you may lose money due to the time and expense. Safety is another important concern.
Salesman
You can connect to your target audience by conducting door to door sales, selling to influencers, creating events in a community to attract people, selling to urban relatives or people in the diaspora or partnering with the government DOOR TO DOOR SALES: Reach a target audience that lacks telephone service and listen to their needs Selling to Influencers The first step of this approach is to identify the people in the community who have the most influence on the others. If you are selling educational supplies, for example, you might focus your sales efforts on the schools’ headmasters. If you are selling medicine or other healthrelated items, you might focus your efforts on the physicians or managers of the medical clinics. An advantage of this approach is that you only have to sell to a few people. If they are pleased with your product, they will encourage other people in the community to buy it. You don’t have to go door-to-door, which saves considerable time. (I recommend that companies create informational brochures about their product to give to the influencers, so they can share the information with others in the community.)
Benefits of Influencer Marketing When an influencer has given your company his or her “seal of approval,” the people who look to the influencer trust that person’s word. Your sales people won’t have to spend as much time selling your value proposition when the influencer has already helped communicate your message. Influencer marketing gives you the opportunity to communicate your value proposition, offerings, and company background to
prospects you may not otherwise have engaged with. Influencer marketing provides a feedback loop with people who live and breathe within your space. When an influencer mentions your company, if his or her audience is interested, they will probably seek out more information.
http://labs.openviewpartners.com
But what happens if the influencers don’t like your product? If you can’t demonstrate the value of your product, they may use their influence to encourage others in the community NOT to buy your product! Also, you must maintain good relationships with them; if they dislike you, they may work against your efforts. Community Events When I was a university student, we used to have a saying: “If you want students to attend your event, just serve them free pizza!” We knew that most American university students 1) love pizza and 2) don’t have much money to buy food. If we gave the students something that they valued for free, they would be more interested in coming to our events and learning about our products or services.
Likewise, you can create events that attract people from the community and teach them about your company’s products and services. For example, imagine that you are selling new cookstoves. To promote the stove, you might go to the village and invite all of the women to come to a free cooking class, where you teach them how to make a new dish—using your company’s cookstoves, of course. The benefits to the women would include: learning something new, having fun with their friends, building positive relationships with your sales team, experiencing the benefits of your superior products, and taking home a delicious new dish to share with their families. Events are often more expensive than other types of marketing. In the cookstove scenario, for example, your costs might include: renting
a place to have the classes; telling people about the classes in advance; and paying for food, fuel, and cookstoves for the class. If the event does not attract many people—or if people don’t buy your product after the event is finished—you may lose money. Urban Relatives & Diaspora Of course, people who live and work in larger cities—or other countries—often help with expenses for their family members who live in the village. This creates another opportunity for marketers: we may be able to sell the product or service to the city dwellers who have more money. As an example, let’s remember the company with the new cookstove. If we can show a businessman in Nairobi that the stove will 1) make life easier for his mother in the village 2) require less fuel, which will save him money every month, then the businessman may decide to buy that product as a gift for his mother. Government Partnerships If you have a product or service that can improve the quality of life for the entire community, you might consider partnering with the government. Benefits to this approach may include lower-interest financing options and wider distribution, among others. This is particularly effective for items that are related to health, education, and infrastructure development. Examples include solar lighting systems, water purification products, mosquito deterrents, and distance learning tools. From door-to-door sales to government partnerships, there are many creative ways that you can market your products and services to people who live in the villages. I hope these techniques will give you some ideas to get started. As a general rule, remember to plan your budget, estimate your sales, and test your marketing campaign on a small scale first.
Hope Wilson, CPSM, is president of Wilson Business Growth Consultants, a firm that provides international business strategy and communications services. Specializing in infrastructure development, Hope has received 11 international awards for her work. Have a question about marketing?
Benefits of Community Marketing When companies focus first on meeting the needs of the people they serve, they don’t have to spend big money to attract new customers. And when they stay close to their communities they don’t need market research to tell them what people want. Human beings are programmed to want certain things. The top most needs are having a sense of belonging and the
feeling of being understood. These needs are most often met through families, clubs and communities. When companies begin to focus on building communities, it makes a powerful impact that forges emotional bonds. Community brands remain relevant because they’re constantly adapting to the changing needs, interests and values of the people who give them
meaning. In times of profound change, businesses must often reinvent themselves to survive. By engaging the communitystarting with customers, but extending to channel partners, employees, government, society and investors-a company can reinvent itself in a way that’s organic rather than wrenching.
http://en.wikipedia.org
16
GOOD RESULT: Republic of Burundi Second Vice-President, Dr. Gervais Rufyikiri and the WB Operations Director in charge of Tanzania, Burundi and Uganda, Mr. Philippe Dongier, following a video conference of the presentation of the Doing Business Report from WB Headquarters.
PICTORIAL
East African Business Week I November 18 - 24 2013
The week in pictures
COMMUNITY POLICING: MTN CEO Mazen Mroue and General Manager Corporate Services Anthony Katamba welcome the Inspector General of Police Gen. Kale Kayihura at the official commissioning of the Ten Police booths which MTN constructed along the 21 kilometers stretch of the Northern by-Pass at a cost of Ush 110 million.
HOUSING DEVELOPMENT: National Social Security Fund Managing Director Richard Byarugaba (2L) with staff shows an artistic impression of the soon to be developed Lubowa Housing Estate. The 2,740-Unit estate will cost $400m. SAFE PARKING: President Yoweri Museveni (in hat) with Finance minister Maria Kiwanuka, Prime Minister Amama Mbabazi, Parliament Speaker Rebecca Kadaga and Deputy Speaker Jacob Olanyah commissioning the new parliament parking space. It was built at a total cost of Ush36b.
NEW BILL: Hon Mike Sebalu addresses a Press Conference in an earlier file picture. The legislator was granted leave to introduce a Private Members Bill on Co-operative Societies.
THE MILESTONE: Century Bottling Company MD Norton Kingwill (L) and Nathan Kalumbu, the President of Coca-Cola EuroAsia and Africa Group tour the newly refurbished $7m CocaCola Returnable Glass Bottle (RGB) production line at the Namanve factory recently.
WONDERFUL: The Agricultural Non-State Actors Forum (ANSAF) of Tanzania was named winner of the 2013 ONE Africa Award. The declaration was made by ONE’s Africa Director, Dr. Sipho S. Moyo, in Addis.
ADVERTORIAL
17
East African Business Week I November 18-24, 2013
UGANDA WILDLIFE AUTH ORITY UWA OFFERS AFFORDABLE ACCOMODATION,CATERING FACILITIES IN MWEYA PENINSULAR
UWA patrol vehicles parked infont of one of the refurbished Jumbo Guest House. The former staff house will provide alternative cheaper accomotion to visitors during the festive season.
A
s the festive season draws closer and families plan a Christmas and New Year’s Day in the wild, management of Uganda Wildlife Authority availed alternative and affordable accommodation and catering facilities in various National Parks to serve the influx of visitors. The former senior staff houses in the Mweya peninsular have been redesigned and turned into self catering guest houses with sufficient accommodation. They include Jumbo Guest house which boasts of 4 self contained bedrooms each with two beds, Pelican an and Cormorant Guest houses each of which contains six rooms with 12 beds each. Besides the fancy guest houses which are ideal for family outings, the twinning house is fitted with 8 beds and ,a sitting room and a kitchen. In the lower camp along the banks of the scenic Kazinga channel,20 rooms have been renovated and equipped with 40 beds
The Tembo Shelters overlooking Kazinga Channel. Such beach life will be enjoyed at Mweya Peninsular. while the newly renovated Tembo a unique view of Lake Edward and canteen caters for the restaurant Katwe salt lake but a comfortable needs at affordable rates . night as a home away from home For only 300,000/=a night ,Jumas guest enjoy the roar of the lions, bo Guest house does not only offer the movement of hippos as munch Elephants are in plenty at Kazinga Chanel.
Newly refurbished Tembo restuarant.
the vegetation around the premises and the breeze from the lake . Pelican and Cormorant Guest houses go for 250,000/ a night each while smaller rates can be offered for rooms in case you have not come as a family. In the lower camp, only 20,000/- per night per bed offers you a unique experience and is a walk away from the Tembo restaurant which offers a wide range of cuisine and drinks. Available information indicates that the upper guest houses are so far fully booked for the festive season between 22nd to 27th December,2013 but there is available space in the lower camp. Elsewhere in other parks, Semuliki National Park boasts of
two spacious bandas at Ntandi near the park headquarters. In Mt. Elgon National Park region, UWA has completed construction and furnishing of Gaetano guest house in Mbale Municipality, Kapkwai cottages, Kapkwata Guest house, Moroto Guest house and Pian Upe bandas. Guests to Kidepo Valley and Murchison Falls National Parks during the festive season will also have an opportunity to hire specialized game viewing trucks recently acquired by UWA to improve visitor experience.
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MINING
Barrick Gold pays $223m in taxes to Tanzania
East African Business Week I November 18-24, 2013
BY BORNWELL KAPINGA
T
he African Barrick Gold (ABG), one of the largest gold producers in Africa says as part of its contribution to the Tanzanian economy, it has paid $223 million in taxes for one year alone. ABG which is envisaged to produce between 540,000 to 600,000 ounces of gold in this year said it has also paid $981 million towards Gross Domestic Product and $573 million as labour income for last year. “Of this $223 million, $32.7 million were direct taxes paid by ABG’s 4,953 Tanzanian employees, equating to an average of over $6,600 per Tanzanian worker,” the ABG’s Director of Environment, Mr. Kelvin Kisaki said during the during a dialogue meeting in Dar es Salaam last week. The gold producer said it has also created 66,369 jobs in Tanzania. According to Kisaki, they are the higher wage employer. They pay an average of nearly 10 times of the national average of 2012. According to him, ABG as of September this year (2013), 93 % of employees are Tanzanians. The mining firm has also invested a total of $14.4 million for social development projects. It has invested these funding to the Maendeleo fund and mine site-specific community, Maendeleo fund investment categories and North Mara village benefit implementation agreement. Besides social development, the gold producer also said, it has invested over $750 million into sustaining its asset base in the last three years. In 2013, “we expect to invest a further $445 million to sustain and expand our asset base.” ABG, which operates Bulyanhulu, Buzwagi, North Mara and Tulawaka mines in Tanzania is the largest gold producer in the country with a long life, high grade reserve base has a total reserves and resources in excess of 32 million ounces in Tanzania. According to ABG’s financial year 2012 preliminary results released on February 2013, the gold mine which has operations in four gold mines in Tanzania has created over $1 billion of direct contribution to its host economies in 2012. A full year 2012 financial results said that in 2013, “we expect to produce between 540,000 - 600,000 ounces of gold, at total cash costs, including royalties, of between $925 and $975 per ounce sold.” It added this incorporates a $120 per ounce reduction resulting from the adoption of the new accounting standard for deferred stripping. “As we progress through 2013, we are focused on reducing our cost base from current levels to ensure the business returns to delivering appropriate levels of free cash flow,” the ABG’s Chief Executive Officer, Mr Greg Hawkins said recently. Hawkins said, cash flow generation and improving returns
LARGEST: Barrick has operations in almost every part of the world and in 2013 output is expected at 7 million ounces. from their assets form a key part of their operational review and they will update on their progress throughout the course of the year. He added, the 2012 dividend is maintained at the 2011 level and this is both an expression of their confidence in the business as well as their commitment to shareholder returns. The ABG which is listed on the Dar es Salaam Stock Exchange (DSE) in 2011 said its net earnings of $59m ($14.5 cents per share), including one-off adjustments of $46m, primarily due to impairment charges related to Tulawaka which, after a long and successful run, is coming to a
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STAMICO takes over Tulawaka Mine as two agree terms
close in 2013. According to Hawkins, adjusted net earnings were $105m ($25.7 cents per share) and operational cash flow was $258m. Gold production of 626,212 ounces and cash costs of $949 per ounce sold, were within recent guidance as it announces net cash position of $401m as at 31 December 2012 with a proposed final dividend of 12.3 cents per share, total
dividend for 2012 of $16.3 cents per share. As announced in January 2013, Hawkins said, “We have initiated an operational review of our business. The core focus is to drive free cash flow generation commensurate with the quality and size of our asset base.” The review is expected to run through the coming six months and we expect to realize clear benefits in our cost structure and operating metrics throughout the year as we implement specific initiatives, he added. “Mineral resources at our mines have been calculated using an assumed longterm average gold price of $1,650.00 per ounce, a silver price of $30.00 per ounce and a copper price of $3.50 per pound, while mineral resources for our exploration properties have been calculated using an assumed long-term average gold price of $1400 per ounce,” he said. Resources have been estimated using varying cut-off grades, depending on the type of mine or project, its maturity and ore types at each property. Since its creation in 2010, ABG has made a significant contribution to the Tanzanian economy with over $1.5 billion of direct contributions. In 2012 ABG produced 626,212 attributable ounces of gold. To date, this brings total production to some 6.5 million ounces. Meanwhile African Barrick Gold said last week, it had reached a deal with the
Tanzanian State Mining Corporation, or STAMICO, to sell its Tulawaka Gold Mine and certain exploration licenses surrounding Tulawaka for cash and future smelter royalties, but will also have to pay out to exit liabilities associated with its planned closure of the mine. In a statement, the gold miner said it would get $4.5 million and be granted a 2% net smelter royalty on future production in excess of 500,000 ounces, capped at $500,000. African Barrick had planned to close the mine. Under the deal, STAMICO will take ownership and management of a rehabilitation fund that was established as part of the closure plan. It will also assume all the closure and rehabilitation liabilities and indemnify African Barrick against the liabilities. African Barrick will pay Stamico the $17.6 million balance of the rehabilitation fund minus the mine sale price. ‘Tulawaka was a highly successful mine for African Barrick Gold and this transaction provides STAMICO the opportunity to further develop the domestic Tanzanian mining industry,” African Barrick said in a statement. Barrick is the world’s largest gold producer. For 2013 full year gold production guidance is 7 to 7.4 million ounces from a portfolio that includes some of the world’s premier gold assets. Barrick has operations in exploration and development projects located across the world.
Canadians offer $24m to help train Tanzanian miners BY ANDREW ZABLON
C
anada and Tanzania are to enter into a joint training programme in extractive industry next year. The Minister for Energy and Minerals Professor Sospeter Muhongo has told East African Business Week that the program would start in 2014 by sending Tanzanian students to Canadian colleges.
This is because despite being rich in minerals Tanzania is still lagging behind in extractive industry expertise. To start with Canada has set aside $24.6 million for the program for the period from 2013-18. The training would be about strengthening resource governance in developing countries. Canada institutes that would conduct the training are the University of British Columbia
(UBC), Simon Fraser University (SFU) with Ecole Polytechnique de Mntreal (EPDM). The first group of students from Tanzania is expected to commence studies in Canada in September, 2014. Professor Muhongo said in December this year Canadian delegation would visit Tanzania to see how the training would be run. The University of British Columbia has formed a coalition with
Simon Fraser University, with the collaboration of Ecole Polytechnique de Montreal (EPDM), to establish the Canadian International Institute for Extractive Industries and Development (CIIEID). The $25 million support comes from the Canadian International Development Agency (CIDA). The Institute’s mandate is to act as a worldwide centre for expertise in the extractive industry sector, relating to developing
countries needs in this arena. The institute will be a resource of best practice for improving and strengthening resourceextraction governance; increasing capacity building in policy, legislation, regulatory development and implementation; EPDM will work with international partners including governments, non-governmental organizations and professional organizations and industry.
TOURISM
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East African Business Week I November 18-24, 2013
IMPRESSIVE: A chance for visitors to learn for example, the lifestyle of the Maasai, their history, art, religion, and other elements that helped shape their way of life.
Tz cultural tourism needs direction BY ELISHA MAYALLAH nARUSHA, Tanzania – People involved with the cultural tourism business in Tanzania want a law or regulation that controls their activities so that it is sustainable. According to a recent report by the Tanzania Association of Cultural Tourism Organizers (TACTO) and sponsored by Business Environment Strengthening of Tanzania (BEST AC) there is no specific law or regulation that monitors cultural tourism in Tanzania. To maximize the benefit associated with cultural tourism TACTO seeks a coherent legal framework, one that addresses the different and multiple areas that guarantee the proper and best utilization, and management of cultural tourism in the country to ease the implementation of strategic and consequent action plans. This will streamline, simplify and make them transparent, fair and enforceable, and to guide and regulate the development of the cultural tourism sub sector, the association said. The report highlights the need to maintain heritage resources and indigenous knowledge for the benefit of local communities, national residents and visitors to alleviate poverty and generally to increase the quality of life of local communities. Also the need for local communities to be effectively involved in the planning, policy making, law making and management process of cultural tourism at the local level, are a key pointer to adopting a legal framework. Cultural tourism in Tanzania presently falls under the tourism sector by various laws. However, under the current legal framework there is no specific provision that mentions cultural tourism. One of the main challenges to
the development and expansion of cultural tourism in Tanzania is lack of specific policy and legal framework and international exposure. Cultural tourism like any other business enterprise needs to be regulated by a specific regulatory framework that suits its nature. ‘The Laws and Regulations need to address business and taxation issues: The concept of regulating cultural tourism can be explained into two main aspects namely: Laws and regulations based on regulating cultural tourism in terms of protecting the sector, the environment, products and the interest of community surrounding attractive areas; and laws and regulations that regulate business on cultural tourism,’ reads part of the report. The TACTO Project Manager,
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Cultural tourism in Tanzania presently falls under the tourism sector by various laws. However, under the current legal framework there is no specific provision that mentions cultural tourism.
Freddy Massawe told East African Business Week last week in Arusha, “A legal and policy framework regulation has a very important role to play in cultural tourism development in Tanzania which should be fully and urgently explored drawing on the experiences of other sectors. A sound, coherent, and up-to-date regulatory framework can facilitate cultural tourism rather than impede it,” he said. Largely, Tourism plays a significant role in the national economy of Tanzania. Tanzania has a varied and interesting culture that forms a central element in its appeal as a tourist destination. Clearly, Tanzania has the capacity to provide a rewarding and satisfying cultural experience for a wide range of tourists but, at present, this potential is not being exploited to the fullest, largely because of a failure in presentation, among other challenges. It is now increasingly recognized that cultural tourism enterprise (that are considered part of the Small and Medium Enterprises (SMEs) play a crucial role in employment creation and income generation in Tanzania. Many local areas in Tanzania run their own cultural programmes for visitors, bringing income directly to the community and giving the people the chance to show their lifestyle to the outside world on their own terms. The travel and tourism sector is growing and can contribute positively to economic development, poverty alleviation, cultural heritage and environmental conservation. Future industry projections point to a sector that will remain very robust in the future. The World Travel and Tourism Organization (UN-WTO) projects an annual growth of about 4.4% per year over the next nine years to 2022. The tourism sector is very competitive. Across the globe, countries, particu-
CULTURE: Tanzanian cultural dancer entertaining the tourists. FILE PHOTO larly emerging economies, are coming up with innovative ways to exploit their cultural tourism to political and economic advantage. Tanzania’s tourism strength emanates from its diverse range of wildlife, excellent species diversity, tranquil and authentic wilderness and landscapes which makes the country one of the greatest safari destinations.
The Netherlands based “safaribookings.com’s” research (2013) has concluded that Tanzania is the best Safari Destination in Africa. In terms of natural resources, the annual World Economic Forum Competitiveness Study for Travel and Tourism (2011) rated Tanzania second position in the World after Brazil.
20
ENTERTAINMENT
East African Business Week I November 18-24, 2013
THIS WEEK
ON GOTV
nTHE STYLE NETWORK (Channel 26) MY FAIR WEDDING: Celebrity event planner David Tutera specialises in helping a bride-to-be create their fairytale wedding in a short period of time. But there’s plenty of drama and conflict to deal with before the big day! As David and his posse of event coordinators dig into the planning of each new wedding, he faces brides at their boiling point, grooms who are running amok, and mother-in-laws who are out of their mind. Thursdays at 21:15 CAT.
nI DO OVER (Season 1) Your wedding day is supposed to be the happiest day of your life. So what’s a couple to do when their dream wedding turns out to be a fabulous disaster?! You call Diann Valentine. The celebrity event designer gives couples a chance to re-do their wedding ceremonies after a disastrous first walk down the aisle. Don’t miss this exciting new show which premieres on Thursday 21 November at 22:10 CAT.
Pay TVs in xmas bonanza nKAMPALA, UGANDA -It is that time of the year again when several companies come out to offer various promotions to grow their sales and subscriber base. Last week, the promos shifted momentarily towards the Pay TV segment as StarTimes (currently the market leader) and Mulitchoice the suppliers of DStv and GOtv introduced offers aimed at attracting new customers while at the same time retaining the existing ones. The Chinese firm even went further to introduce solar panels so as to woo more rural based subscribers who have no access to the electricity grid. Christine Nagujja, the StarTimes’ Public Relations Officer told the East African Business Week that the solar panels are meant to enable the rural community digitalize as the migration from Digital to analogue broadcasting draws near. “The solar panels have helped our rural customers access good programming and better pictures. It even gets better that the solar panels come with digital TVs as well as a 25 year warranty,” she noted. As the Christmas holidays draw nearer, the company has yet again announced a reduction in the price of its decoders from Ush70,000 to Ush60,000. “This has been done to welcome new subscribers since we are heading to switch off in the greater Kampala as per the Uganda Com-
Customers fix their decorder. Pay TVs have come in with early X-mas offers. munications Commission (UCC) plan in the migration process. We have also introduced new channels like the NBA, FLN Movie Channel and Jim jams that shows cartoons for the children,” she added. Nagujja also said that unlike the previous Christmas campaigns that rewarded a few customers, this year it’s an all-out promotion that seeks to reward both new and existing customers. Existing customers will get additional days when they pay for their subscription; two months subscription gives a customer 15extra days of free viewing while a three month subscription gives a customer another free month. Multichoice on the other hand has announced a Christmas offer where potential Premium subscrib-
Battle still on Funfest climax for Spennah
n NATIONAL GEOGRAPHIC WILD (Channel 51) GOtv Plus ONLY WORLD’S WEIRDEST: ANIMAL TABOO Humans are part of the animal kingdom but what may be taboo for us may help another species survive. This series explores extreme animal behaviors to uncover the strange physiology and practices of different species and the reason behind them. Watch it on GOtv from 21 November at 19:00 CAT.
nKAMPALA- UGANDA - The Battle of Champions concert pitting big size Bebe Cool and Goodlife crew members Radio and Weasel is still on according to Afrobeat the organizer and promoter of the gig. “You are getting it from the horses mouse the concert will this December 6 take place as per our plans. The next show on December 8 at Resort beach will also take place,” Benon Kasenene of Afrobeat said in an interview. Rumors have been circulating in the past few days that due to security reasons police cancelled the concert.
nKAMPALA- UGANDA The Mirinda funafest will this Sunday come to a grand finale at a fun filled event at Spennah Beach. The Funfests are meant to reinforce brand Mirinda’s position as the consumer’s favorite soda that gives more choices and brings out the fun side out of them. It started last month in Gulu and have since been to more than 30 towns. According to Mr Innocent Tibayeita, the head sales and marketing at Crown Beverages, the innovation is intended to put to life the “Free Your Fun side” thematic campaign for brand Mirinda.
ONE Gospel, lyrics competition awards climax BY WINNIE MANDELA nKAMPALA, UGANDA-ONE Gospel has chosen 3 Finalists for the Lyric Competition, the three finalists were chosen from over 300 entries received around the African Continent.Gershon Muller is a 25 -year old from Pinetown in Durban, a musical director and keyboard player at Hope Family Church International, which is pastored by his parents. Muller has performed with the likes of Dominion, Ernie Smith, and Mthunzi Namba & Ps Patrick Duncan. Gershon’s Lyrics “All for You” will be performed by Mahalia Buchanan.
Tebogo Makgoro is a 26 - year old from Ganyesa near small town Vryburg in the North West province, her lyrics titled “Colorful” will be performed by Solly Mahlangu.The third finalist is another Durbanite Lorna Theresa Pottier, she is a singer/songwriter and part of the praise and worship choir at the Bethsaida Ministries International church in Durban. Potter’s lyrics “Saving Grace” will be performed by Loyiso Bala.The three songs will be competing for votes in order to win the ultimate prize of USD 3846.The Inspired Lyric Competition is aimed at inspiring and encouraging songwriters throughout the continent, in growing and improving
the music industry. E Gospel, channel 331 DStv, is launching the Inspired Lyric Competition starting on the 1st of September until November 2013. The competition is aimed at providing a platform for songwriters across the African ContinentThe aim of the channel is to contribute to the development of gospel music and promote it amongst various nations throughout the world. The channel gives exposure to artists producing gospel music, and this competition gives the people behind the music a chance to showcase their talent, and this will inspire other upcoming songwriters to share their talent with the music industry.
ers can purchase a full DStv kit at Ush215,000 inclusive of installation. The Pay TV also introduced new channels last week including CBS Action, CBS Drama, Jim jams and MGM Channel.
The company also had an open week where they opened up exciting channels from November 11 – 17, 2013 to all customers regardless of the bouquet they subscribe to.
Makerere drowns in Bell BY EMMA ONYANGO nKAMPALA- UGANDAWhen you mix university students with subsidized beer, what you get tethers on the brink of insanity and excitement. Last weekend, that was just what happened when beer maker, Uganda Breweries decided to hold their Bell Fiesta at the Makerere University sports grounds in Kampala. The event that was delayed momentarily by the afternoon downpour eventually kicked off at about 7:30pm with the ‘campusers’ thronging the venue to wet their dry throats and also blanket the cold. The grounds were littered with foosball tables where numbers gathered as though it was a fireplace and several charcoal stoves that sold sausages and ‘muchomo’. However a few minutes into the carnival, the Lumumba Hall students as usual wanted to prove a point to the other students owing to the fact that the carnival was actually in their honour. They thronged the brightly lit stage, threw away the little sanity that was left of them and of course successfully
proved to the unbelieving crowd that they were not cut out for singing. What they spewed out during their 15 minutes of infamy cannot be written in this honourable newspaper but can be discussed in hushed tones in downtown Kampala. However, there were a few that could actually sing, the upcoming musicians like King of Arua, Suicide (what a name), Gaspa (not sure his parent gave him this name) Rav Dee among others. The climax of the night was the performance from Cindy before the Baboon Forest took over much to the excitement of the revelers who had braved the cold. According to the organizers, the carnival was held to celebrate the long tradition of Lumbox, the name given to the solidarity between Mary Stuart and Lumumba Halls of residence that unites students from the two halls in a number of events. With events including the culture week, porridge night and a reunion dinner with former residents, the Lumbox Carnival turned out to be a thrilling affair as the Bell Fiesta took the combination of music and soccer to the University.
Team PDA the winning team of the Bell Fiesta held at the Lumbox Carnival celebrate their win.
EAC
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East African Business Week I November 18-24, 2013
EAC to have one education system “
nARUSHA, TANZANIA -The challenges of differing programmes of higher education across the region will be a thing of the past when the recommendations of the just concluded AcademiaPrivate Sector Forum and Exhibitions 2013 in Nairobi are implemented. The forum made a recommendation to create a common qualifications framework for harmonization of courses across the region and mutual recognition of qualifications. Many graduates have complained of inability to find employment in East African Community partner states due to non-recognition by partner states. Regional integration cannot be attained if employees cannot move across the region to seek employment and exchange knowledge and innovations with citizens of partner states. It is for this reason that the academia-private sector forum recommended harmonisation of higher education. Due to the enormous problem of unemployment across the region, universities were urged to provide training for local manpower that offers basic skills in entrepreneurship. Speakers emphasised that the training should aim at creating job makers, not seekers. The private sector has been complaining about the poor attitude of young graduates and lack of appropriate skills necessary to drive local economies. The forum recommended that career advisory centres should be formed
Creation a common qualifications system for harmonizing courses across the region and mutual recognition of qualifitications
LISTENING TO VOICE: The aim is that for example technical training will have graduates working in all EAC. in every institution of higher learning to counsel students to be entrepreneurial in nature, and to follow up on attachments and ensure they are mainstreamed with industry. The importance of science and technology was emphasized throughout the three-day forum. Speaker after speaker urged the participants to lobby for funds to advance research and innovation in the region. “Innovate or perish” said Prof Jacob Kaimenyi, Kenya’s Cabinet Secretary Ministry of Education,
Science and Technology.Prof Tarsis Kabwegyre, Minister in Prime Minister’s Office, Uganda and the acting Chairman EAC Council of Ministers, put it differently but to the same effect: “Research or resign.” Prof Kabwegyere said that more than 64 per cent of universities in Germany were science and technology-based; as a result, Germany has the strongest economy in Europe. The forum recommended that both universities and the private sector should lobby for funding for research. Industries were
also urged to fund universities in research and innovation projects, and in the process get a chance to co-own the research. In order to bridge the gap between the academia and the private sector, the forum recommended that reverse opportunities be availed between industry and academia, where private sector managers will get to lecture at universities, while lecturers take extended durations of six months to one year to gain exposure in industries. The challenges being faced
Projects starts to harmonise financial management in EAC nDAR ES SALAAM, TANZANIA - A two-year project to coordinate and harmonise public financial management and standards across East Africa has been launched in the region as part of moves towards a single currency. Backed with $1million in World Bank support, the five-nation East African Community project will reform accounting practices, oversight and public procurement with the aim of helping the region achieve its goal of monetary union. Tanzania, Kenya, Uganda, Burundi and Rwanda are the constituent members of the EAC. The project was launched at the EAC’s headquarters in Arusha, Tanzania, on Monday by EAC deputy secretary general Enos Bukuku. Bukuku said that transparent public financial management was a critical aspect of a robust fiscal regime, which was vital to achieving monetary union. He also noted that, currently,
Dr. Enos Bukuku EAC states had varying levels of public financial management structures and different performance levels. The project will aim to overcome these obstacles by working towards international public-sector accounting and auditing standards. It will also promote mutual recognition between partner states’ accountancy bodies, allowing finance professionals in the region to move
easily across borders. Regional procurement legislation is also being developed, and there will be support for public accounts committees in the EAC nations to help them develop common good practice guidelines. Bukuku thanked the World Bank for its support, saying: ‘This is indeed a positive gesture worth commending by the people of East Africa.’ The project is being co-ordinated by Godfrey Magadu, senior accountant at the EAC secretariat. He said the secretariat would work closely with the governments of partner state and other stakeholders to agree on harmonised standards. Technical support to implement agreed standards will also be provided. Meanwhile, the19th NEPAD Infrastructure Project Preparation Facility (NEPAD-IPPF) oversight committee co -organized by the African Development Bank and the Department for International
Development of the United Kingdom hosted by the East African Community ended today at East African Community headquarters in Arusha ,Tanzania. The 11-12 November meeting brought together representatives of Regional Economic Communities (RECs), Development and Cooperating Partners to discuss among others improvements in the procurement processes, reporting formats, prioritization of projects, fast-tracked disbursements of the committed funds, capacity building across stakeholders, the strategy for resource mobilization and communications. Speaking at the closing session EAC Deputy Secretary General in charge of Planning and Infrastructure Dr Enos Bukuku commended AU, NEPAD, the African Development Bank and the many development and cooperating partners are doing through the IPPF in assisting African Regional Economic Communities.
by universities due to the high number of students being enrolled was also identified as a major challenge that is leading to a decline in standards. The forum recommended that industries should support academia in putting up physical infrastructure developments such as libraries, laboratories, and hostels as well as in acquiring equipment. A case study of Kenyatta University was given, whereby the university has partnered with the private sector to build hostels. EANA
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
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AGRICULTURE
East African Business Week I November 18-24, 2013
GMOs run into resistance
BY LEONARD MAGOMBA/ SAMUEL NABWIISO
nKAMPALA-UGANDA Ugandan legislators last week blocked the debate on the Biotechnology and Biosafety Bill, 2012 , insisting that many people are ignorant about the issue, particularly its economic benefits to farmers. The Bill, which was presented to the House by the chairperson of the parliamentary committee on Science and Technology Denis Obua recently did not receive a good reception as numerous MPs said their voters want to be further consulted by the MPs as they have been doing with other Bills in parliament before they pass the Bill. The centerpiece of this legislation concerns use of Genetic Modified Organisms (GMOs). One MP from Western Uganda Dr Medard Bitekyerezo told the committee that many Ugandans particularly in western Uganda want a comprehensive meeting between MPs and pro-GMO supporters to educate them more about the potential of Using Biotechnology in the Agriculture sector “Before we start debating on this bill our Voters need to be consulted because it seems some Giant seed companies have corrupted some of our collogues on this Bill let us first consult the local people before the debates kicks off” he said The Biotechnology and Biosafety Bill, 2012 is among the many Bill before Parliamentary committees which were supposed to be passed this year however its being blocked by the MPS has not caused any alarm to the scientist in the country Dr Andrew Kiggundu the head of National Agricultural Biotechnology
SCARY: This is the unflattering graphic view of GMO foodstuffs and one the critics like to use to raise public concern. Centre at the National Agricultural Research Laboratories Kawanda told East African Business Weeks LEONARD MAGOMBA during the journalists tour under B4FA Media Fellowship that even if parliament passes the bill the commercialization of GMOs Uganda will have to wait for about seven years for GMOs farming to startScientist consider the application of Biotechnology in Agriculture as the only way to fight the out brake of Crops diseases which have impacted on the Agriculture sector in the country particularly in the on Banana
plantations in the country Following the outbreak of bacteria wilt diseases in 2001 which have destroyed banana crops for over a decade in Uganda Kiggundu said as scientist they have developed new varieties of crops Using Biotechnology system in the various research centers in the country but they cannot release such varieties to the local farmers to grow when there is no Law regulating the farming of GMOs crops in the country “We have developed new varieties of Bananas resistant to the devastating Banana Bacterial Wilt disease,
Nematodes and Weevils but our challenge is the absence of the Law which regulates GMO farming in the country “he explained . Uganda has lost between 30% and 40% of losses in banana plantations, through the damages caused by the Banana wilt Diseases and it’s heavier in poorly managed plantations According to Kigundu the new varieties have been genetically engineered at the center in collaboration with the Queensland University of Technology, Australia, but are still being monitored in confined field trial
gardens at the research institute. As they wait for the passing of the Bill by the parliament “At the center we mixed Banana genes with genes from sweet pepper to get the variety that is resistant to bacterial wilt. We first planted these bananas last year and we got 100% resistance against the bacterial wilt.”Kigundu explained He added, that if they show resistance for the second time, then this will compel scientist to plant them in various places around the country for final confirmation. However he asked parliament to speed up the Bill such that the Agriculture sector is supported to overcome the challenges which are hindering its progress in the country He said, “We develop technologies which we feel should reach farmers to boost food and income security, if we don’t pass that law for regulation of GMOs, we will be opening Uganda to danger.’’ He allayed fears of the products having ill-health consequences. The introduction of GMOs crops in Uganda has faced many challenges particularly from the private sector and civil society organizations who alleges that farming GMO crops in Uganda is very expensive since it requires farmers to buy seeds in every season they want to plant however this has been challenged by scientist at Kawanda Dr. .David Talengera Research officer at Kawanda said unlike in the United States where seeds are developed by business companies whose seeds are patented, Kawanda is a government institution. When such seeds are developed, they will be distributed in the country at low price
Rwanda switches rice variety BY AGNES BATETA
nKIGALI, Rwanda--Starting next growing season, RAB, an agency under the Ministry of Agriculture and Animal Husbandry, will give out rice seeds. This is aimed at increasing local production and reducing imports. RAB is now advising farmers to start planting long grain rice which they say is of higher quality and can resist harsh weather and other difficult climatic conditions. “We will give out necessary support to farmers to ensure that rice is produced more and not imported which still leaves a high demand on the market with the little supply,” said the Deputy Director of RAB Innocent Musabyimana during a meeting that brought in representatives from RAB, the Rwanda Bureau of Standards, Ministry of Trade and Industry and the Rwanda Cooperative Agency representatives. The meeting evaluated production from the last season and discussed how to monitor farmers on preparing for the season.
Agriculture ministry research shows that long grain rice is the popular variety. “This will increase in rice productivity and also contribute to an increase in food security,” Musabyimana said. He said Rwanda plans to increase rice acreage from the current 20,000 hectares to 37.000 yearly.
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“Our target is to increase productivity from the five metric tonnes per hectare to seven metric tonnes at least,” the RAB director said.
The government is continuously investing in swamps so as to help farmers be able to get more land on which to carry out farming. “Our target is to increase productivity from the five metric tonnes per hectare to seven metric tonnes at least,” the RAB director said. “The current type of rice we have, brings in lower productivity but if we start with the new one introduced, we hope to gain more from it,” Mukandituye Georgette, a farmer. Another farmer Josephine Mukandaruhutse from the Eastern Province Gatera sector, Kirehe district said that the main challenge they could still face is lack of fertilizers, which was refuted by the Rice Cooperative Coordinator Hawa Mukandituye, who said that this meeting was to help farmers know how to get fertilizers plus the seeds to plant and where they can get such from. This long graining rice will be planted starting next season and with the research made on the seeds RAB believes it will provide better production than the current one grown. HARD WORK: A Rwandan farmer planting rice in his garden.
NEWS
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East African Business Week I November 18-24, 2013
TH E UNITED REPUBLIC OF TANZ ANIA PRIME MINISTER’ S OFFICE, REGIONAL ADMINISTRATION AND LOCAL GOV ERNMENT
TANZ ANIA TELECOMMUNICATIONS COMPANY LIMITED
TENDER No. PA/032/13/H Q /C/006 REQ UEST FOR EX PRESSION OF INTEREST (EOI) FOR PROV ISION OF CONSULTANCY SERV ICES FOR FIRE SUPPRESSION SY STEMS AT TTCL H EADQ UARTERS BUILDINGS. 1. an ania elecommunications Company imited C , provider of telecommunications services in an ania intends to engage eligible Consultant who will be undertaking Consultancy ervices for its eadquarters buildings ire uppression ystems. 2. he eventual ob ective of the assignment is to have the best Consulting team to ensure that works are carried out in accordance with drawing details and technical specifications also carry out detailed inspection of the works at the pro ect take-over stage and compile a snag list for inclusion in the take- over certificate. he consultant shall receive and review the as built drawings, operations and maintenance anuals from the assigned building contractor. . an ania elecommunications Company imited now invites eligible Consultants to e press their interest in the provision of the above services. Interested Consultants must submit application s for the assignment and provide information indicating their qualifications and e perience for performing the services. . he e pression of interest should include documentation regarding the legal status of the firm and other supporting information, indicating that they are qualified to perform the assignment brochures, description of assignments of similar nature undertaken by the Consultant in the last five years, and availability of competent professional staff to manage the assignment . 5. or each undertaking performed, the Consultant shall provide the name and address of the client, date s of e ecution, name s of lead and associate firms, value and financing sources. irms may associate to enhance their qualifications. 6. Please note that this is a request for proposals. fter a review of letters of interest, a shortlist will be prepared and shortlisted consulting firms will be invited to submit their quotations through a letter of invitation including the terms of reference. . he short listing and final selection of Consultant will be carried out in accordance with the Public Procurement ct o 21 of 2 detailed in the guidelines selection and employment of consultants regulations 2 5. . Interested eligible Consultant may obtain further information from the office of the ender oard ecretary, telcoms uilding, th loor, amora venue, and P. . o , ar es alaam. el 255 22 2 1 256 25 a 255 22 2111 12 from am to pm on ondays to ridays e cept on public holidays. . pressions of interest must be delivered in sealed envelopes to the address given above o. on or before 1 . hours ast frican tandard time on 28th November 2013. Chief E ecutive OfďŹ cer. Tanz ania Telecommunications Company Limited. 12th Floor, Extelcoms H ouse, Samora Avenue, P O Box 9 07 0, Dar es Salaam. Tanz ania.
TENDER NUMBER ME/022/2013/2014/G/10 FOR PROCUREMENT OF STANDARD STATION WAGON 4WD MOTOR V EH ICLES
Invitation for Bids 1. The G overnment of Tanzania has set aside funds for the operation of the Prime inister s ffice egional dministration and ocal Government during the financial year 2 1 2 1 . It is intended that part of the proceeds of the fund will be used to cover eligible payment under the contract for the Procurement of tandard tation agon otor ehicles. 2. he Permanent ecretary, Prime inister s ffice egional dministration and ocal Government now invite sealed bids from eligible uppliers of tandard tation agon otor ehicles. . idding will be conducted through the International Competitive idding procedures specified in the Public Procurement Goods, orks, on Consultant ervice and isposal of Public ssets by ender egulations, 2 5 Government otice o. and are open to all idders as defined in the egulations. . Interested eligible idders may obtain further information from and inspect the idding ocuments at the office of the ecretary, inisterial ender oard, Prime inister s ffice egional dministration and ocal Government, P. . o 1 2 odoma, an ania from . am to . pm on ondays to ridays inclusive e cept on public holidays. 5. complete set of idding ocument s in nglish and additional sets may be purchased by interested idders on the submission of a written application to the address given under paragraph 5 above and upon payment of a non-refundable fee of 15 , . . Payment should either be by Cash, anker s raft, or anker s Cheque, payable to the Permanent ecretary, Prime inister s ffice egional dministration and ocal Government. 6. ll ids must be accompanied by a id ecurity in an acceptable form in the amount of , , . or freely convertible currencies in case of foreign idders. . ll bids in one original plus three copies, properly filled in, and enclosed in plain envelopes must be delivered to the address below at or before 1 . am on uesday 2 th ecember, 2 1 . ids will be opened promptly thereafter in public and in the presence of idders representatives who choose to attend in the opening at the Prime inister s ffice egional dministration and ocal Government, kapa ouse Conference oom. . ate ids, Portion of ids, lectronic ids, ids not received, ids not opened and not read out in public at the bid opening ceremony shall not be accepted for evaluation irrespective of the circumstances. PERMANENT SECRETARY Address: he Permanent ecretary, Prime inister s ffice, egional dministration and ocal Government, P. . o 1 2 , kapa ouse, Ground loor, oom umber 2, P ffice, DODOMA - TANZ ANIA
24
FINANCE
East African Business Week I November 18-24, 2013
Firms get better at financial reporting BY DERICK NKAJJA
T
he trend of financial reporting has evolved universally, shifting from the traditional model of furnishing stakeholders with financial statements of an organisation, presented in black and white and with no aesthetic impression whatsoever, to the skillful addition of storytelling, colour, graphics and photographs to enhance visual layout, while incorporating an organisation’s governance systems and commitment to environmental sustainability. The annual report is essentially the face of an organisation. It is a written representation of an organisation’s governance systems, commitment to protecting and developing the environment in which it operates, activities and achievements of the year, financial performance, and future outlook of the organisation. The annual report tells the story of an organisation for a given financial period. It is the document that shareholders and prospective investors analyse to determine the profitability of their investments or make decisions on whether to invest in an organisation or not. In 2011, the Institute of Certified Public Accountants of Uganda (ICPAU), Capital Markets Authority (CMA) and Uganda Securities Exchange (USE) inaugurated the Financial Reporting (FiRe) Awards to promote best practices in complying with international financial reporting standards as prescribed by ICPAU for the various sectors of Uganda’s economy. The FiRe Awards recognize and award organisations which comply with the principles of; corporate governance, sustainability reporting, financial reporting in compliance with the adopted international financial reporting standards in the country, and communication and presentation of the information therein. Compliance with all the above ensures comprehensive integrated reporting for an entity. Compliance with relevant financial reporting standards in Uganda requires organisations to apply the financial reporting standards prescribed by ICPAU. For instance, Public sector entities must adopt and apply International Public Sector Accounting Standards (IPSAS) which were adopted by ICPAU in 2006. IPSAS provide for accrual accounting (an accounting system where economic activities are recognized as they occur, regardless of whether a cash transaction arises), with added benefits, such as; ensuring accuracy in reporting, strict adherence to financial discipline, transparency, proper resource management, efficient performance evaluation, adequate planning for future funding requirements, with the ultimate benefit of proper accountability for funds entrusted to public sector entities. The drawbacks to public sector accountability, such as absence of transparency arise because of many factors one of them being
RIGHT TO KNOW: Shareholders register before being told the highlights of their company’s financial performance. that public sector entities are not applying relevant financial reporting standards. The cash system which most public sector entities adopt has several loopholes such as deferred recognition of transactions and eventually, misrepresentation of facts. Speaking at a press briefing organised to assess the relevance of the FiRe Awards to Uganda, Japheth Katto, Chief Executive Officer of CMA said, “IPSAS ensure that the public understands how government finances are spent. The objective of public sector reporting is to ensure accountability, transparency and integrity so that users of public sector reports understand how funds are being
“
The annual report is the face of an organisation
used. Adopting the accrual basis helps to identity loopholes in cash flows so that they are addressed timely.” The category of Small and Medium Entities (SMEs) in the FiRe Awards is yet to be fully embraced as many SMEs are not applying the International Financial Reporting Standards (IFRS) for SMEs. “We have a standard for SMEs, that is, IFRS for SMEs,” Nkajja said. “When evaluators
are analyzing SMEs, they look at whether the SME has applied the right standard but many SMEs are not apply this standard, and therefore cannot compete in the SME category,” he added. Innocent Dankaine, the Head of Products and Markets at the Uganda Securities Exchange advised that providing adequate and accurate financial information is not to the detriment of the business. Dankaine said that most SMEs are not growing because they have insufficient funding. However, to boost their funding, they must attract investors through availing comprehensive, appropriately written financial reports, which most of them are not doing. According to Dankaine, the investing public needs to assess the risk or viability of investing in a company and the best way they can do this is through looking at the annual report. Samuel Mwogeza, the Financial Controller at Stanbic Bank reaffirms the relevance of accurate reporting with regard to application of the appropriate standards by SMEs. Mwogeza says SMEs must prove their level of credibility through providing annual reports that demonstrate high quality of business management and financial reporting if they are to access funds from banks. Mwogeza says Stanbic bank participates in the FiRe Awards because the bank believes in the importance and relevance
of effective, comprehensive and fully compliant reporting. In 2012, Stanbic won the year’s Gold Award, for their excellence in financial reporting. Mwogeza attributes this victory to the bank’s well articulated governance framework, a compliant sustainability model, an ambitious future outlook and financials presented in accordance with the requirements of the IFRSs. As a result of Stanbic’s excellence in financial reporting, the Bank has reaffirmed to its shareholders and the general public that Stanbic is well governed, fully responsive and financially viable, thereby reassuring them that their investments and savings are safe and will yield profitable returns. Excellence in financial reporting builds trust and confidence in an entity’s stakeholders, thereby ensuring long term strategic mutually beneficial relations. The FiRe Awards do not only provide an opportunity for organisations that participate to benchmark their reporting against sound criteria of good financial reports but also provide opportunity for organisations to share and learn from each other on how to further improve their quality of reporting.
By Derick Nkajja, Chief Executive Officer, ICPAU
MP in quest for Tanzania’s stolen millions continues BY ANDREW ZABLON
T
he Tanzania opposition Member of Parliament Zitto Kabwe has asked the British government to tell the world on what it has done so far to get rid of secrecy on money stashed in UK banks from the developing world. Zitto who is also the Chairman of the Parliamentary Public Accounts Committee urged the
British Prime Minister David Cameron to remove such secrecy. Zitto said this during the Global Debate on Beneficial Ownership Transparency in London recently. “This issue (capital flight) need a globe approach, we cannot talk of financial transparency while Jersey is banking stolen money from Africa—you may say the UK gets loss in this crime but we in Africa remain stagnant and poor,” he said.
Cameron responded that it is easy to make public the operations of Trust Funds, but traditionally these funds are privately managed although he admitted the matter was subject to discussion. Meanwhile while the Tanzania government is still mulling over the $196 million believed have been stashed in Swiss banks, fresh reports have it that another amount that doubles that is stashed at Jersey and
other islands in the UK. New revelations last week show that money belongs to Tanzanians stashed in different places in those islands estimated at 413 million pounds (Tsh1.06 Trillion). The money is stashed in British Overseas Territories and Crown Dependencies. According to Tanzania Annual Budget (2012/13) the money can afford running about four ministries for one year. According the investigations
conducted by the UK Serious Fraud Department the money was from proceeds obtained from corruption in the BAE Systems Radar /Tanzania deal Jersey islands was popular during the investigation of the radar scandal, whereby it was established that the then Tanzania Attorney General, Andrew Chenge had an account there worth $1.2 million (Tsh1.2 billion).
25
BUSINESS INFO
East African Business Week I November 18 - 24, 2013 DAR ES SALAAM - DSE Date Company
Weekly Trends (EA Stock Exchanges)
Financial markets Nairobi (NSE)
SECURITY
PRICES AS AT
PREVIOUS PRICE
24-Oct-13
1,584.00
23-Oct-13
1,586.00
1,820.00
22-Oct-13
1,825.00
RSE ALL SHARE INDEX
21-Oct-13
1,588.00
11-Nov-13
15-Nov-13
14-Nov-13
13-Nov-13
12-Nov-13
11-Nov-13
134.2
1,590.00
11-Nov-13
134.3
USE ALL SHARE INDEX
1,592.00
15-Nov-13
134.4
1,830.00
14-Nov-13
134.5
1,594.00 DSE ALL SHARE INDEX
1,835.00
13-Nov-13
NSE ALL SHARE INDEX
134.6
12-Nov-13
134.7
1,596.00
20-Oct-13
1,840.00
16-Oct-13
1,845.00
134.8
1,598.00
15-Nov-13
134.9
131.6 131.5 131.4 131.3 131.2 131.1 131 130.9 130.8
1,600.00
19-Oct-13
1,602.00
1,850.00
135
Nov 15 2013 Nov 15 2013 Nov 15 2013 Nov 15 2013 Nov 15 2013 Nov 15 2013 Nov 15 2013 Nov 15 2013 Nov 15 2013 Nov 15 2013 Nov 15 2013 Nov 15 2013 Nov 15 2013 Nov 15 2013 Nov 15 2013 Nov 15 2013 Nov 15 2013 Nov 15 2013
RSE ALL SHARE INDEX
17-Oct-13
1,604.00
1,855.00
14-Nov-13
135.1
1,860.00
13-Nov-13
135.2
USE ALL SHARE INDEX
18-Oct-13
DSE ALL SHARE INDEX
12-Nov-13
NSE ALL SHARE INDEX
KAMPALA - USE SECURITY Date
% CHANGE
Nov 13 2013 Nov 13 2013 Nov 13 2013 Nov 13 2013 Nov 13 2013 Nov 13 2013 Nov 13 2013 Nov 13 2013 Nov 13 2013 Nov 13 2013 Nov 13 2013 Nov 13 2013 Nov 13 2013 Nov 13 2013 Nov 13 2013 Nov 13 2013 Nov 13 2013 Nov 13 2013 TOTALS
NOVEMBER 15 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
25.25 94.50 125.00 500.00 27.50 13.90 212.00
25.25 94.00 125.00 500.00 27.50 14.15 211.00
0.00 +0.53 0.00 0.00 0.00 -1.77 +0.47
26.50 13.50 12.00 5.60
26.00 13.50 12.50 5.55
+1.92 0.00 -4.00 +0.90
18.55 82.00 189.00 35.25 28.25 112.00 46.00 22.25 59.50 307.00 17.90
18.60 82.00 189.00 35.00 28.00 111.00 46.50 22.25 59.00 307.00 17.85
-0.27 0.00 0.00 +0.71 +0.89 +0.90 -1.08 0.00 +0.85 0.00 +0.28
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
85.50 214.00 68.50 17.00 75.50
85.00 215.00 68.00 16.95 76.00
+0.59 -0.47 +0.74 +0.29 -0.66
16.05 9.00 15.15 25.00 13.00
15.75 8.95 15.00 25.75 13.00
+1.90 +0.56 +1.00 -2.91 0.00
6.85
6.90
-0.72
11.05 12.95 4.70 290.00 16.25 75.00
10.90 12.65 4.70 288.00 16.45 69.50
+1.38 +2.37 0.00 +0.69 -1.22 +7.91
31.25 4.60 29.75
31.50 4.60 30.00
-0.79 0.00 -0.83
11.10 127.00 577.00 231.00 319.00 2.95 3.00 3.50 19.30
11.10 127.00 575.00 235.00 320.00 2.90 3.00 3.50 19.05
0.00 0.00 +0.35 -1.70 -0.31 +1.72 0.00 0.00 +1.31
9.55 9.85
9.55 9.85
0.00 0.00
7.50 5.50
7.50 5.50
0.00 0.00
Kenya
Nairobi Beans (Rosecoco)
- 90kg
Fish (Tilapia)
- 1 kg
Ground Nuts
Uganda
Eldoret
Kampala
Lira
Shares Turnover (UGX) Traded 0 22,589 0 0 0 0 0 0 0 0 0 0 125,638 9,158 0 190,900
0 2,710,680 0 0 0 0 0 0 0 0 0 0 3,769,140 5,677,960 0 69,678,500
348,285
81,836,280
High Low 0 6,040 600 0 2,340 2,680 2,680 490 2,440 0 0 0 0 300 0 0 0 0
Turnover (Tshs)
0 0 6,020 621,561,400 600 20,400 0 0 2,340 1,170,000 2,680 490,440 2,680 10,449,320 490 1,073,100 2,440 15,503,760 0 0 0 0 0 0 0 0 295 17,715,145 0 0 0 0 0 0 0 0
VWAP 1,590.09 4,050 120 913 1,035 9,318 1,008 8,383 393 1,358 35 9,143 630 30 620 30 365 259.74
Low 4,050 120 0 1,035 0 0 0 0 0 0 0 630 30 620 30 365
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
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
High
Market Foreign Number Outstanding Outstanding No of of Deals share bids share offers shares Capital holding traded (Tsh) bln) % age 0 6,300 0 0 11.54 5.84% 9 207,900 0 10,3570 1,781.37 67.63 1 0 0 34 10.71 47.60 0 100 0 0 860.00 75.00 2 500 5,500 500 148.99 62.50 5 2,200 10,400 183 96.48 72.00 9 0 57,600 3,899 482.19 69.25 12 0 101,500 2,190 33.24 0.07% 11 49,900 34,400 6,354 1,220.00 38.57 0 0 0 0 374.12 N/A 0 0 0 0 4,697.20 N/A 0 0 0 0 321.04 N/A 0 0 0 0 2,554.49 N/A 18 51,500 467,700 5,9431 652.96 15.47 0 0 0 0 1,086.00 N/A 0 0 0 0 1,845.38 N/A 0 0 0 0 76.22 34.13 0 0 0 0 5.44 0.00% SOURCE - Dar es Salaam Stock Exchange Session Price (UGX) Outstanding Bids Outstanding Offers
4,050 120 0 1,035 0 0 0 0 0 0 0 630 30 620 30 365
0 579 17,050 0 0 50,600,000 10,000 0 99,436
0 3,657,364 12,303 0 0 2,827,615 6,706 1,794,362 9,000 1,076,934 30,870
PE Ratios 16.30 10.18 8.29 8.40 23.70 12.37 8.20 (2.56) 11.37 3.84 23.51 13.57 11.75 9.63 10.38
Market Cap. (UGX bn) 198.77 300.00 607.55 257.30 7,366.06 3,728.70 501.92 588.11 4,052.46 14.14 1,723.28 48.20 1,535.66 164.56 27.00 592.86
21,706.57 SOURCE - Uganda Stock Exchange
Forex (Central Bank rates)
Food market prices (wholesale) US$ Package
ALSI BATU BOBU CENT DFCU EABL EBL JHL KA KCB NIC NMG NVL SBU UCHM UCL UMEME USE LCI
0 6,040 600 0 2,340 2,680 2,680 490 2,440 0 0 0 0 300 0 0 0 0
Closing price (Tshs) 310 6,040 600 8,600 2,340 2,680 2,680 490 2,440 250 5,940 5,360 860 300 5,760 4,500 475 600
KIGALI - RSE Date Security Last 12 Today’s Prices Months (Rwf) High Low High Low Closing Previous Oct 24,2013 BOK 200 118 195 190 195 190 Oct 24,2013 BLR 900 315 829 829 Oct 24,2013 KCB 175 135 175 175 Oct 24,2013 NMG 1,200 1,200 1,200 1,200 Oct 24,2013 USL 175 175 175 175
SOURCE - Nairobi Stock Exchange
Commodity
TOL TBL TTP TCC SIMBA SWISS TWIGA DCB NMB KA EABL JHL KCB CRDB NMG ABG PAL PAL
Opening price (Tshs)
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
ADDIS ABABA (Birr) Mean 19.0898 30.5914 NAIROBI (Ksh) 85.0483 136.2161 116.5206 8.5106 29.5851 18.7810 7.8362 18.0772 23.1544 86.3884 1.3862 22.6765 13.9563 DAR ES SALAAM (Tsh) 16016516 25699321 21840926 163035 260491 1595718 4360608 4270728 187547 6313 15317 KAMPALA (Ush) 2,526.8700 4,057.6450 25.7600 3,479.5000 29.6250 132.9350 3.7560 1.6270 1.5720 12.5875 255.7200 KIGALI (RwF) 661.9310 108.7054 902.7415 1,061.5388 6.7365 0.4321 35.1605 7.9015 0.4212 0.2655 178.5047 10.6751 174.8156 65.7481 BUJUMBURA (FBu) 15.8564 1,539.4200 2,498.3247 2,126.8627 18.1750 158.2138 0.9585 0.6086 2.3011
Buying 18.9008 30.2885
Selling 19.2788 30.8943
85.2456 136.5494 116.8335 8.5989 29.7125 18.9422 7.9484 18.3543 23.2093 86.7513 1.3891 22.7303 13.9896
85.1469 136.3830 116.6770 8.5547 29.6488 18.8616 7.8923 18.2157 23.1819 86.5699 1.3876 22.7034 13.9729
15936832 25567459 21731464 162240 259237 1587749 4339032 4249708 186723 6256 15259
16096200 25831182 21950388 163829 261744 1603686 4382184 4291748 188370 6370 15374
2,524.5000 4,053.8400 25.7400 3,476.2400 29.5700 132.6900 3.7490 1.6240 1.5690 12.5640 255.2500
2,529.2400 4,061.4500 25.7800 3,482.7600 29.6800 133.1800 3.7630 1.6300 1.5750 12.6110 256.1900
655.6427 107.6727 894.1655 1,051.4542 6.6725 0.4280 34.8264 7.8264 0.4172 0.2630 176.8089 10.57368 173.154808 65.123479
668.2194 109.7381 911.3176 1,071.6234 6.8005 0.4362 35.4945 7.9766 0.4252 0.2680 180.2005 10.776506 176.476304 66.372693
15.7296 1,527.1046 2,478.3381 2,109.8478 18.0296 156.9481 0.9509 0.6037 2.2827
15.9833 1,551.7354 2,518.3113 2,143.8776 18.3204 159.4795 0.9662 0.6135 2.3195
26
EAST AFRICAN BUSINESS WEEK
26
NOV 18 - 24, 2013
TENDERS
East African Business Week I November 18 - 24, 2013
TENDERS, JOBS & CONSULTANCIES UGANDA
RWANDA
TANZANIA
TENDERS
TENDERS
TENDERS
Ministry of Energy and Minerals invites sealed bids from eligible building contractors registered in Class Five and above for carrying out the proposed rehabilitation of of Tanznaia Gemological Centre in Arusha. Contact: Office of the Secretary of the Ministerial Tender Board, Ministry of Energy and Minerals, 754/33 Samora Avenue, Wing B, 6th Floor, Room No. 10, P.O. Box 2000 Dar es Salaam. Deadline: Nov 25, 2013.
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.
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 Port Authority invites sealed bids for the supply and commissioning of motor vehicles as follows: 4WD Pick up Double Cabin 1 Cesspit Emptier (10,000) 1 Contact: The Secretary, Central Tender Board, Tanzania Ports Authority, P. O. Box 9184, Dar es Salaam. Deadline: Dec 12, 2013. The Accountant General’s Department invites sealed tenders from service providers of maintenance, repair and service of generator. Contact: Procurement Management Unit Office, at New Pension Building, Madaraka Avenue/Shaban Robert Street, P. O. Box 9111 Dar es salaam. Deadline: Dec 5, 2013. Ministry of Health and Social Welfare requests for expression of interest in providing consultancy services: Logistics Management of the long lasting insecticide treated net (LLIN) Replacement campaign in Tanzania. Contact: Secretary to the Tender Board, Room 210. Deadline: Dec 2, 2013. Ministry of Health and Social Welfare requests for expression of interest in providing consultancy services: Implementing Behavioural Change Communication activities to promote malaria early treatment seeking and compliance to treatment in mainland Tanzania. Contact: Secretary to the Tender Board, Room 210. Deadline: Dec 2, 2013. 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. 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. Source: East African Business Week
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). 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 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). 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 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) 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. Source: East African Business Week
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.
RWANDA
TENDERS NATIONAL AGRICULTURAL EXPORT DEVELOPMENT BOARD (NAEB) invites all national and international interested bidders to tender for the supply of 1,400 tons of fertilizer NPK 22-6-12+S for coffee; the tender is divided in one lot. Tender Document may be obtained freely from the Procurement Unit at NAEB Head Office, Gikondo, and P.O.Box. 104 Kigali. Tel. (250) 252 575 600, Email:info@naeb.gov.rw, or on its Website: www.naeb.gov.rw. Well printed bids, properly bound and presented in four copies one of which is the original and three copies must reach the Procurement office of NAEB at the address mentioned in the tender document not later than 20/12/2013 at 09h00’ am, local time (7:00 GMT). The Rwanda Biomedical Centre/Medical Procurement and Production Division (RBC/MPPD) invites qualified bidders to submit bids for the establishment of framework agreement to Supply and Deliver Medical Consumables, Material and Equipment for TB&ORCD.Enquiries regarding this tender may be addressed to Head of 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 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 January 2014 at 9 am local time o’clock The Rwanda Biomedical Centre/Medical Procurement and Production Division (RBC/MPPD) invites qualified bidders to submit bids for establishment of framework 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. Enquiries regarding this tender may be addressed to Head of 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 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 January 2014 at 9 am local time o’clock
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
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ICT
East African Business Week I November 18-24, 2013
IBM choice raises Kenya profile IBM’s decision to locate its new research centre in Nairobi, Kenya gives yet another boost to the country’s status as an investment destination for foreign technology companies.
nNAIROBI, Kenya--The research lab will focus on both basic and applied research aimed at finding IT solutions for problems such as traffic congestion, government transparency and water quality. In addition, the lab will help to build IT and research skills in Kenya in collaboration with universities, government agencies and companies. “IBM chose Kenya as the location for the laboratory because of the amount of innovation it is seeing coming out of the country’s technology industry at the moment, as well as the amount of co-operation the Kenyan government and universities offered,” says Mark Harris, IBM’s vice president of business development for Middle East & Africa. The Kenyan market is a hotbed of innovation in areas such as mobile payments and is also steadily gaining a reputation for having a wellregulated information and communications technology sector. IBM won’t disclose how much it is investing in the centre, but the Kenyan government will contribute $2m a year to the lab for the next five years. One example project at the lab addresses the challenge of traffic congestion in African cities using predictive analytics tools to aid in traffic management, according to Harris. Though still only in its exploratory stage, the project will use data from the CCTV network on Nairobi’s major roads to monitor and predict traffic flow. The lab’s research agenda will include the development of cognitive computing technologies which integrate learning and reasoning capabilities, enabling experts to make better decisions in areas such as healthcare delivery and financial services. In the new era of computing, IBM believes that Africa has a strategic opportunity to become an early adopter of cognitive systems. President Kenyatta said: “The establishment of this research laboratory underpins the government’s commitment to innovation ecosystems that are already available in Kenya. Using innovation to
drive homegrown solutions, Kenya continues to lead the continent in ICT. My government is proud that Kenya, and indeed Africa, will benefit from the presence of one of the most advanced research facilities, with some of the world’s most talented people, using some of the most powerful technologies to develop solutions for some of Africa’s most intractable problems.” The lab brings together some of the best technology talent globally. Highly educated young Kenyans – many PhDs who were previously living in the diaspora, have been deployed at the lab, building a critical mass of Kenyan experts. Many more Kenyans are working in supporting roles. “We are currently experiencing the emergence of a new Africa - one where science and technology are enabling a pivotal ‘leap frog’ moment allowing governments and businesses to drive economic growth, raise the standard of living and compete with their global counterparts,” said Dr. Kamal Bhattacharya, Director, IBM Research Africa. “The launch of Africa’s first full-scale, technology research facility signifies a new era in African innovation - one where commercially viable solutions to Africa’s grand challenges are developed in Africa for Africa, helping to lay the foundations
“
“IBM chose Kenya as the location for the laboratory because of the amount of innovation it is seeing coming out of the country’s technology industry at the moment, as well as the amount of co-operation the Kenyan government and universities offered,” says Mark Harris
for the continent’s future scientific and economic independence.” IBM Research Africa will be deeply embedded into Africa’s innovation ecosystem and will forge partnerships with businesses, research organizations and universities across Africa and around the world. In line with Kenya’s Vision 2030 and IBM’s Smarter Planet strategy, initial projects are expected to include NextGeneration Public Sector Management, Smarter Cities Research (with focus on Water and Transportation), and Human Capacity Development ICT Transformation projects have the potential to leverage the core research of the Lab and are vital to the Kenyan National Agenda and are ready to make a direct impact on the economy. Both IBM and the GOK expect that they will benefit from the research conducted by the Research Lab. IBM’s decision to locate its first African research centre in Nairobi has prompted soul-searching among other countries who regard Kenya’s gain as their loss — but this may not be the case. “We don’t see it as an either-or investment,” Harris says. “We have an ongoing plan for Africa, so this by no means a one-off investment.” IBM views Africa as a key market that will outpace its current major markets in terms of revenue growth. The company estimates that the African IT market will be worth around $20 billionn in 2012 and says that it is one of the fastest growing markets for technology services and products in the world. In 2006, IBM was present in Africa only in South Africa, Morocco, Tunisia and Egypt. Today, IBM has a direct presence in more than 20 countries on the continent, and recently opened an office in the Indian Ocean island of Mauritius. The company has invested in delivery centres in South Africa and Egypt as well as innovation centres in South Africa and Morocco in the past few years. Commentators in South Africa, the largest economy in sub-Saharan Africa, and Nigeria, the region’s most populous country, fret
President Kenyatta arrives to officially open the IBM research center. Courtesy photo AMECEA that their countries are losing ground to East Africa and Kenya in particular.South Africa is the sixth largest emerging IT market in the world, behind only the BRIC countries and Mexico, according to Will Hahn, principal analyst at Gartner. But is it losing ground to other countries in the region? The analyst thinks not.
“I cannot foresee the circumstances where South Africa would cease to be a vital hub for the southern African region and beyond,” says Hahn. Advantages such as submarine cable access, satellite distribution, and the overall strength of its economy and currency mean that it will be the dominant IT economy for years to come.Nonetheless,
South Africa is slipping behind its neighbours in several important measures, Hahn adds, partly because its growth rate cannot keep pace with that of less mature markets where technology penetration is far lower, but “education inadequacy” and regulatory uncertainty are areas that South Africa must address to advance growth.
Nyak a AIDS Foundation Annual Fundraising Dinner Nyaka AIDS Foundation Annual Fundraising Dinner at Protea Hotel Kampala on 1st December, 2013, From 6:00pm to 10:00pm Proceeds will go to building Nyaka Secondary and V ocational School for orphans and vulnerable children in Kambuga Sub County, Kanungu District, South Western Uganda Don’ t miss live performance from Sylver Kyagulanyi Chief G uest: Robert Kabushenga Tickets go for Ush100,000. To get a ticket Contact: yaka I oundation ead ffice, el 256 1 -66 or the following people Emma Mugisha + 256 7 17 -7 38 686 Jennifer Nantale + 256 7 7 2-539 7 51 Promise Ambrose + 256 7 7 2-469 085
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NEWS
East African Business Week I November 18-24, 2013
Health ministry gives out nets BY AGNES BATETA nKIGALI, Rwanda-- Over two million mosquito nets are to be supplied by the Ministry of Health as one way of fighting malaria from the country. “This is part of the distribution that started last year”, said Dr. Corine Karema in charge of Malaria and other parasitic diseases Division at the Rwanda Biomedical Centre (RBC) 578.000 mosquito nets will be supplied to Kigali city residents and these will go to the different districts which include Kicukiro, Nyarugenge and Gasabo. “We started with the Eastern province which has much malaria but will go to the Northern Province after the Kigali city and here we will distribute over 2.459.800 mosquito nets in this campaign,” Karema said.. Ministry of health distributed over 1.7 million nets to children under five years across the country in January and over 350.000 to pregnant women.
People appreciated this initiative saying that because of the many mosquitoes they had in their homes, this was going to help fight them hence be able to kick malaria from the country. “We are happy we are getting these mosquitoes which are going to help us live happy lives”, said one Esperanza Uwamariya a Kacyiru residents She continued thanking the ministry saying that she was going to contribute to this initiative by clearing away all places from which mosquitoes do bleed Rwanda has so far taken up a very important trend in fighting malaria and according to the 2010 national health survey results 82 per cent of the population has at least one long lasting insecticidal net, plus 72 per cent of pregnant women and 70 per cent of children have bed nets which are all to help fight malaria. By the year 2011information health management system recorded only 227.015 malaria cases as compared to 772.197 cases back in 2008. Rwanda has 1000 days in which it is to fight malaria out of it completely
HEALTH: Two million mosquito nets are to be supplied by the Ministry of Health as one way of fighting malaria from the country. FILE PHOTO
Vodacom supports Tanzania goals BY PATRICK KISEMBO nDAR ES SALAAM, Tanzania-Vodacom Tanzania has reiterated its commitment to continue supporting the government to achieve the Millennium Development Goals (MDGs). The company’s Managing Director Mr. Rene Meza, said last week that his company is keen to support as many developmental projects as possible in the country, as efforts to achieve MDGs hit top gear. Mr. Meza explained further that Vodacom will work closely with all the relevant authorities in the government to ensure that the processes succeed. “In a country where education, health, and entrepreneurship are greatly needed, it is important to give a helping hand to those involved in order to bear fruits,” said Mr. Meza, adding that, “Vodacom is therefore committed to ensure that we step in where we can to ensure that such projects take off.” On matters of education, Mr. Meza said that Vodacom has done a commendable job so far. “Our latest development is the launch of the eLearning project. This is an initiative aimed at connecting secondary schools into the National ICT Broadband Backbone (NICTBB) across the country. Powered by Vodacom network, we believe that this system will change the current
Vodacom’s country Managing Director for Tanzania Mr. Rene Meza teaching situation tremendously. For instance, it shall do away with the process of writing notes on chalkboards for teachers and also writing notes in books for students,” explained Mr. Meza.
According to Meza, Vodacom has also pioneered the Community Power Project in Tanzania. This, according to him, is an initiative geared towards supplying power to rural schools situated near network
sites. “The excess solar power generated from the network sites is channeled to the nearby schools,” said Meza. Meza said further that his company is also committed
to ensuring that teenage girls are kept in school through an initiative dubbed ‘Hakuna Wasichoweza’ an initiative launched between Vodacom and T-Marc. “This is an initiative that aims at providing reusable sanitary pads to school-going teenage girls. Every year, girls from poor families skip over 100 days during their menstrual periods since they cannot afford sanitary pads. However, we plan to keep these girls in school by giving them sanitary pads. So far, we aim to reach over 10,000 girls from Lindi and Mtwara,” he said. Vodacom has also been on the forefront to support entrepreneurial activities in the country, as well as empowering women. For five years now, Vodacom has been running the M-Pesa Women Empowerment Initiative (MWEI). “This is an initiative geared towards eradicating poverty and supporting women entrepreneurs. Through MWEI, we give interestfree loans to women entrepreneurs to start new businesses or boost existing ones. The loans are issues through M-Pesa and repaid using the same medium,” said Meza. “We will continue coming up with more projects in order to ensure that this country gets where it wants` to be. We also take pride in our customers and we shall be there to support them in as many areas as possible,” he concluded.
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LIVING
East African Business Week I November 18-24, 2013
Lake Heights opens in Entebbe BY BAZ WAISWA nKAMPALA, Uganda –The increasing passenger traffic at Entebbe International Airport and growing number of foreign tourists in Uganda has attracted more investments in the hospitality industry. Entebbe is a hub of hotels, beaches and resorts mostly owned by international companies and investors but the demand for proper accommodation in area and the country is still high. This demand presents an enormous opening in the hospitality industry especially in national parks and major towns where accommodation is still bad and lacking. Experts in the business reveal that hotel business in Uganda and East Africa as a region is still very virgin with no facilities to meet the demand from tourists and business travellers. Kenya however is better off compared to neighbors Uganda, Rwanda, Burundi and Tanzania. The increasing international business deals that sail through Entebbe airport has attracted local investors who are seizing the opportunities by setting up hotel facilities with international standards. One such investor is Dr Francis Runumi, a medical doctor, who together with wife Flora Runumi, an architect last week added their $2.5m hotel investment into the skies of the quiet town. The new stylish Lake Heights Hotel, sitting on 4 acres of prime land on the lakeside of Lake Victoria in Entebbe boosts of 33 well groomed ordinary, executive rooms and suites. The hotel boosts of a gym, salon, and massage room, spa, bar, conference facility, swimming pool, gardens and other amenities befitting a luxurious hotel. Lake Heights Hotel places you amongst Uganda’s best beaches, wildlife attractions at Uganda Wildlife Centre and Entebbe Golf Club and is just 3kms from the airport.
STYLISH : The new establishment offers a quiet and serene atmosphere even though it is located not very far from the international airport. According to Dr. Runumi the hotel will facilitate international business travelers and tourists who are used to and demand for international hotel services. Runumi in an interview says that local investors have time and again been failed by commercial banks to access finance to undertake such investments. The hotel was built with 70 per cent of financing from Housing Finance Bank and East Africa Development Bank who complemented personal savings. “The problem is that banks are hard with offering finance. The banks are not friendly to local investors,” Dr. Runumi said. From levying high interest rates, setting
harsh terms and conditions which have to be met before securing a loan to a long time taken to process the loans, banks have frustrated local entrepreneurs as compared to foreigners who have an opportunity of securing credit abroad. Runumi said the idea of constructing the hotel was mooted in 1996 after procuring the land from government through the privatization scheme. Riaan Van Der Watt, the General Manager of Lake Heights Hotel, said that the hotel is targeting corporate clients, people doing business on the move and tourists. “Tourism in Uganda is just beginning to boom, these kinds of hotels and services are the kind of things that bring in people to visit the country,”
Van Der Watt stated in an interview. The hotel is addressing one of the major concerns in hotel industry, poor customer care, by recruiting professionals from Jimmy Sekasi Institute Of Catering Uganda and YMCA catering school. Flora Runumi, a director at the hotel says that the new hotel is a springboard to help them think regionally to tap into the East African Community integration now that the common market is in place. The World Bank says Africa has the potential with its cultural and natural resources to outpace other regions in attracting valuable tourism dollars. But entrepreneurs need transparency, roads and electricity to help them build and expand tourist destinations.
Tanzania loses patience with poaching toll PATRICK KISEMBO n DAR ES SALAAM, Tanzania--The government has told the United Nations, that it is running out of patience with the ongoing poaching activities. The Minister for Natural Resources and Tourism, Ambassador Khamis Kagasheki recently told the Resident Coordinator of the United Nations system in Tanzania, Alberic Kacou soon after the commemoration of the 68th anniversary of the UN. Already Tanzania has lost 240,000 elephants in last 49 years due to illegal hunting. The minister said the government has decided to wage a serious and important operation against poachers and poaching in the country. “We are witnessing an escalation of wildlife crimes never seen before on a global scale,” Ambassador Kagasheki said. He said, “An assault on our elephants and Rhinos can no
RUIN : The elephants are slaughtered for their tusks which are later turned into ivory products mostly by traders in East Asia. longer be tolerated. We are running out of patience.” The minister said those involved must be brought to book, affirming that poaching is not a business of small players. “It is has become a big league with big names and famous players,” Ambassador Kagasheki said. He said: “We can afford to be accused of netting the small fish while the whales
and sharks are loose at sea. This is our war. It is a war we must win. Losing can never be an option.” Illegal hunting is a great threat to the country’s economy since it directly affects the tourism sector which contributes 17% of the country’s economy and employs more than 300,000 people. Supporting the minister’s sentiments, Kacou said economic opportunities and
a profound economic transformation was required to end extreme poverty and improve livelihoods by harnessing innovation, technology, and the potential of private business to create more value and drive sustainable and inclusive growth. Not long ago, East African Business Week reported the extreme case of poaching overshadowing Tanzania, indi-
cating that 30 elephants are a killed each day in Tanzania. The Association of Tanzania Tour Operators said in their latest report that the figure could possibly be higher, if you consider the latest escalation. In the last four years Tanzania has witnessed an increased wave of a poaching that is threatening the resources. According to the Minister, last year alone, Tanzania’s anti-poaching organs apprehended 3,788 elephant tusks weighing 10,756 kgs. In a move to control the menace, the government has decided to use the country’s military personnel, the Tanzanians people’s Defense force (TPDF) to deal with the matter. They are to reinforce other measures in place. Last month, President Jakaya Kikwete was quoted saying Tanzania had 700 rhinos in 1974 , but now it had only 100 because of poaching while the country’s 350,000 registered
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LIVING
East African Business Week I November 18-24 , 2013
Rolands envisages beyond the brush
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ECLIPSE: Tibirusya was in Pakwach and painted the hybrid solar eclipse as it happened. BY WINNIE MANDELA n KAMPALA, UGANDA-The just concluded eclipse did not only attract astronomers and excited Ugandans but also various fine artists who wanted to capture this heavenly spectacle. Rolands Roldan Tibirusya was privileged to be one of the contracted artistes who was in Pakwach Northern Uganda earlier this month. He is the founder of Armour Arts Alliance, a company he established in Uganda, Kenya and Rwanda. He is a painter, author, philanthropist, innovator and artivist. He also appears on TV and Radio shows where he engages in live drawing. According to him, such lifetime events are the kind of motivations he relies on because of the belief he has in making sure every moment is captured through his work. He believes 40 years from now the ones who were not able to visually watch the event will be able to appreciate it through his souvenir paintings. “This painting will not only document time in history, but will also enable the upcoming generation to visualize and have a feeling of how it looked like,” he said. He said souvenir painting has found a growing niche of appreciation among the public. His subjects are taken from his childhood he fondly reminisces and life in general around him. Growing up in Kigezi in western Uganda allowed him to socialize with people of all kinds a message he wants to spread all over the world. To him color comes naturally. He applies it without laboring; spontaneously and swiftly he creates pleasant and expressionistic paintings. With his figures Tibirusya is able to say so much with so little. Knowledge of structures and perspective for which the success of painting for example was measured in the past, has today lost its credibility in favor of experiments with formal content. The young artists have found
comfort and rest in appropriating themes from local resources and imaginatively domesticating them in their art. Art is the expression or application of human creative skill and imagination, typically in a visual form such as painting or sculpture. Five years ago, Tibirusya made his first humble but significant steps on an eventful journey that has brought him to prominence and recognition as the best artiste in contemporary Ugandan art. Tibirusya is a former art student of Makerere University School of Industrial and Fine Arts, 2007, his work exhibit a bold and aggressive attitude which is also reflected in his vast kinds of paintings. His works are basically centered towards portraits of all kinds; landscape and souvenir live paintings which according to him have enabled the opening of success doors in east Africa, Africa and the globe at large. He is also inspired by the existing gap between the old and new fine artiste who according to him have lost touch thus creating paintings that will unite people of different ages. In 2009 Tibirusya decided to familiarize himself with the concept of souvenir live paintings in addition the landscape and portrait paintings he does because according to him the later was not common among Ugandans who up to now majorly deal in landscape and portrait paintings. Today he is one of the most recognized souvenir live painter who has always featured his paintings in historical, social, economic and geographical events in the country. Nature, personalities and cultures according to him have inspired him to focus on such paintings because they speak realities of life which should never be left unnoted. Through his art, he is managing to preserve images of Africa which are in danger of disappearing from the record of daily human existence. We see a celebration of the just concluded total solar eclipse, Uganda at 50, Makerere at 90, cultures, African
royalty, musicians, warriors, dancers and he definitely celebrates the beauty of African women. Souvenir live painting according to him stands unique because it is able to provoke thoughts and imaginations of the people he finds at particular events thus engaging them in his paintings He also says Personal branding as a state of mind provides artists swifter recognition and the potential for a more devoted and appreciative audience. “The sooner you realize you are a brand and you need to integrate and unify all the elements of your communication, the better,” he says. Personal branding in the arts is actually about staying true to one’s vision. The point is to clearly define that vision and to keep in mind the audience, no matter the size. He sells his pieces of art at prices ranging from Ush500,000 ($192) to Ush 2million ($769). He says:“I can’t say I have a specific price for my paintings because it’s like pricing your feelings. This is not like dealing in commodities where you set prices according to the costs incurred or taxes.” Some of the famous souvenir live paintings he has done so far include the “say no to tobacco save lives campaign” in which he engaged members of parliament to help pass the tobacco bill, Makerere university celebrating 90 years, Uganda at 50, the just concluded eclipse among others. He is a volunteer at theKampala school for the physically handicapped. He motivates handicapped children and speaks of their great role towards development of the country. Tibirusya has several awards including the Young Achiever’s Award in the category of Art, Fashion and Design-2010. He also won the Youth Alliance Leadership and Development in Africa Award as a distinguished guest speaker in Botswana in 2010. He desires to see a transformed Africa beyond power struggles, tribal dynamics and racism.
1 Adjust camera lens (5) 7 Give up officially relinquish (8) 8 Produce/Provide (5) 10 Young ones, children (10) 12 Keeper/Custodian (8) 14 Swimming bird (4) 16 Canines (4) 17 Kill/Devastate (8) 20 Calmly (10) 23 Teens/Adolescent (5) 24 Belief E.g. Islam/Christianity (8) 25 Glided on snow (5)
DOWN 1 Airborne (6) 2 Not beautiful (4) 3 Blood Vessel (5) 4 Somehow wet (5) 5 Lingerie (9) 6 Teaching session (6) 9 Not fashionable/Dwull (5) 11 Hilariously (9) 13 Grow old, mature (3) 15 Poorly lit 16 Expel to another country (6) 18 Engraved (6) 19 Pretend (5) 21 On top of (4) 22 Yellow part of Egg (4)
Rolands Tibirusha’s work
SOUVENIR: A painting of Professor Ali Mazrui.
ART: Former Kenyan President Mwai Kibaki signs on a portrait
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East African Business Week I November 18-24, 2013
CECAFA draw pits Uganda Vs Rwanda BY BAZ WAISWA
nKAMPALA, UGANDA-
Group A: Kenya, Ethiopia, Zanzibar and South Sudan Group B: Tanzania, Zambia, Burundi and Somalia Group C: Uganda, Rwanda, Eritrea and Sudan. East Africa’s greatest football showpiece; Council for East and Central Africa (CECAFA) Senior Challenge Cup group fixtures that were drawn last Friday pitted champions, Uganda Cranes against their perennial rivals Amavubi stars of Rwanda in Group C. Other teams in the group are Sudan and Eriterea making what many are calling the group of death. Uganda and Rwanda played a friendly match at Nambole last weekend. Kenya, Ethiopia, Zanzibar and South Sudan make up group A while 2012 Africa Cup of Nations continental champions Zambia makes a return to the region’s most glorious annual soccer tournament. The Southern African nation and COSAFA champions’ Zambia will face Tanzania, Burundi and Somalia as the case was in 2010 in Dar es Salaam. In that edition, Zambia beat Tanzania 1-0 in the two sides opening Group A game before drawing 0-0 with Burundi and walloping Somalia 6-0. The Local Organising Committee for the competition in host nation Kenya has told the media that the preliminary matches will be played in Nairobi and Machakos with Mumias and Mombasa also set to host a number of the matches. Cecafa Secretary General Nicholas Musonye said he was impressed with the pace at which the preparations for the championships that start on November 27 to December 12. “We had expressed our reservations on the readiness of Moi Stadium but with the decision to have the preliminary matches in Nairobi and Machakos, the lakeside town has more time to prepare,” said Musonye. Uganda’s was quoted in the media describing the match up in group C as explosive and showed to confidence to defend the title. “With all due respect to all the 11 other teams in the group, we shall plan for every game as it comes because we are aware all teams will want to prove a point against us,” said Sredojević.
Interforces sports gala on BY BAZ WAISWA
nKAMPALA, UGANDA-Uganda
Prisons Services will until 30th November host the eleventh edition of inter-forces games that brings together uniformed and armed forces to compete in different disciplines. The objectives of the sports gala which has been on since 2002 are to strengthen and promote team work between the forces, develop talent and to complement each other. It is jointly organized by Uganda People Defense Forces, Uganda Police, Uganda Prisons Service and Uganda Wildlife Authority who have pooled together Ush103m ($40,234) to smoothly organize the gala.
Algeria handed President’s lift ahead of Burkina tie nALGIERS-With three African countries having confirmed their appearance at the Brazil 2014 World Cup, Algeria Prime Minister, Abdelmalek Sellal, has said all Algerians including President Abdelaziz Bouteflika are behind their football national team. This followed the Prime Minister’s visit to the national football team players, at their training camp in the Sidi Moussa technical centre (Algiers) over the weekend, before the team takes on Burkina Faso this Tuesday in Blida for their World Cup 2014 qualifiers second leg. “President Bouteflika is keen to con-
Premier League and what has been billed as the Group of Death in the Champions League, with players such as Aaron Ramsey who has been in a rich vein of form and their best player so far this season. Arsenal fans are left scratching their heads and suffering jibes like “Even if Norwich City had a flag with the United crest on it, Arsenal would still lose that game of football” like one of the United fans put it to his Arsenal counterpart. Pundits, fans and all in the football circles are questioning whether Arsenal has what it takes to last the full length of the season. This is not helped by the fact that they were easily knocked out of the Capital One League cup by Chelsea, something that has increased the pressure on Arsene Wenger’s side. The big questions are, to do with whether Arsenal have shown enough to convince that they are genuine title challengers and what happened on Sunday at Old Trafford was just a bad day at the office. Or, are they back to the ‘choking’ tendencies they have suffered for the past 8 years? What should Wenger do to pick up his wounded men and is he the one to blame for Sunday’s loss?
Arsene Wenger looks like he has learnt from his past mistakes as he has now learnt to delegate some of his coaching duties on the training ground, with Steve Bould now totally in charge of the defensive side of Arsenal’s game being helped by Neil Banfield. He also surprised everyone with that Mesut Ozil coup and appreciating the value of experienced players when he brought back Matthieu Flamini. So there are good signs there. He has managed to keep the distinct Arsenal brand of fluid football, something that has already produced a goal of the season contender in that team goal tucked away by Jack Wilshere against Norwich. He has however, complimented it with some gritty displays like the win at Signal Iduna Park against Dortmund. This is testament to the grit and fighting spirit of this fledgling squad. The retirement of Sir Alex Ferguson has left the Arsene Wenger as the most senior manager in the league and begs the question of whether this is a catalyst for their current form and if the Chairman’s mumblings about bringing in a world class striker in the January transfer window are anything to go by, it might boost the club even further like the signing of Mesut Ozil has already done.
vey to you his encouragements for this match that the whole Algerian people is waiting for, to qualify for the World Cup for the second time in a row,” Prime Minister told the players and the technical staff. Meanwhile former Algerian international Rabah Medjah who played with the Algeria national team for over 10-years, appeared in two World Cups (1982 and 1986), won the Africa Cup of Nations in 1990 and the UEFA Champions League (formerly European Champion Clubs’ Cup) in 1987, had predicted that his country Algeria, Cameroon, Cote d’Ivoire, Ghana and Nigeria would be Africa’s representatives.
Man Utd reports record revenues nMANCHESTER, UK-Manchester United
has reported record revenue of £98.5m for the first three months of its financial year. The 29 percent revenue rise came after a 63percent jump in sponsorship income and an increase in earnings from TV deals. There were 12 new sponsorship deals signed, including one with Russian airline Aeroflot. The club predicts revenues for the whole year of £420-430m, bringing it closer to Europe’s wealthiest clubs, Real Madrid and Barcelona. Staff costs for the quarter rose by 31percent to £52.9m
Does Arsenal have what it takes? nEMIRATES, STADIUM - Top of the English
The Commissioner General of Uganda Prisons, Dr. Johnson Byabasaija, said the theme for this year’s gala is enhancing patriotism and nationalism through sports. This year participants will compete the discipline of shooting range, football, basketball, netball, handball, darts and athletics. The interforces games have been a breeding ground for some of Uganda’s elite athletes like John Akki Bua (a former police officer) and Stephen Kiprotich who won gold at the London Olympics and Moscow world championships. Shooting range will open the gala at Kigo before the official opening at Luzira Sports Complex on Monday 18 November. Field and track games will be played at Namboole Stadium.
Warrior’s Malinga fells Falcons BY BAZ WAISWA
nKAMPALA, UGANDA-Falcons threw
away a deserved win when it allowed Riham Warriors to come back into the game in quarter three and eventually win the game with a solitary point. The 76-75 win give Warriors a lead in the best of five semifinal playoffs. Henry Malinga with his 26 points dictated the tempo and won the game for Warriors. Abudalahai Ramadhan of Falcons made 18 points on which Ameny Phillip added another 13 but still lost the game. Now Falcons need to fight back to level the series this week to salvage their season. In the other ladies semifinal playoff KCCA Leopards beat Magic Stormers 58-32 to state their title credentials.
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n BUSINESS KNOW-HOW
n SPORT
CECAFA draw pits Uganda against foes Rwanda
East African Business Week I November 18-24, 2013
How to sell your products in the village
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Tz launches $57m devt projects BY LEOMARD MAGOMBA nDAR ES SALAAM, TANZANIA – President Jakaya Kikwete has inaugurated over Tsh91.4bn ($57m) development projects on power, water and road networks. According to President Kikwete, the power project will cost Tsh36.3bn ($22.64m), Tsh341m ($212,784) and Tsh54.76bn ($34.15m) for water and road projects respectively. The development projects will see villagers at the north west part of Tanzania get fresh water and connected to the national grid for as lower as Tsh170,000 ($106) from Tsh450,000 ($281). The government, through the Tanzania Electric Supply Company Limited (TANESCO), has reduced connection costs from $281 to $106 so as to help villagers around the country to get power. The water project at Masumbwe which is financed by the World Bank will serve ten villages as the power supply will benefit about 3,500 people at Geita, Chato and Nyang’wale in Geita region and Msalala in Shinyanga region. The Kagera-Geita Highway which will be constructed by Sinohydro of China will be able to connect Kagera in Tanzania and Namtukula to Masaka in Uganda.
DIALOGUE: President Jakaya Kikwete in discussions with the team from CMEC. PHOTO BY: Tagie Mwakawago President Kikwete told residents of Buseresere/Katoro in Geita and Chato districts during his upcountry tour, “the Government’s pledge to provide electricity to rural areas must be met.” The assurance was made by
President Kikwete before launching a major power supply project for four villages in all four districts of Geita Region and parts of Shinyanga Region. Under the project, Kikwete said 14 villages, including 10 in Geita Region, will benefit. The inaugurated
project is part of electricity, water and infrastructure improvement under the Millennium Challenge Corporation (MCC). He insisted the Government is making effortS to invest in electricity to boost economic development.
Telkom 2007 sale haunts Kenya BY HUMPHREY LILOBA nKAMPALA, UGANDA - Kenya’s controversial sale of the national telecommunications parastatal, Telkom Kenya Ltd (TKL) to France Telecom has taken a new twist after the Attorney General Prof Githu Muigai disowned the transaction that saw Kenya’s stake reduce to 30%. The scandal ridden privatization deal has been the subject of multiple commission of inquiry amid fears that billions of taxpayer funds could have been sunk in the process. Muigai has now called for a renegotiation of the transaction. The Government’s legal advisor also said National Treasury is to blame for taking imprudent business and legal decision on a transaction that has eventually seen the Government’s lose 19 per cent stake in Telkom Kenya, a firm it sold for $306 million in 2007. “Throughout these transactions the office of the AG was not involved in any aspect whatsoever,” Muigai told a Parlia-
Attoney General, Prof Githu Muigai mentary Public Investment Committee (PIC) in Nairobi yesterday. He said the Treasury took upon itself to hire independent lawyers on a mega transaction without seeking advise from his office. “Mr chairman on whom should be blamed this matter we need to ask ourselves who made the business decision. It appears it was made by the Treasury and if something had gone wrong with
the judgrment that was made then it lies squarely with the Treasury,” said Muigai. Although the National Treasury has defended the deal signed in December that opened the window for the Government to cede 19% stake, the office of the Attorney General becomes the fourth among key State agencies to say they were not aware of the transaction that led to the dilution of shares. The Communications Commission of Kenya (CCK), the Privatisation Commission of Kenya and the Auditor General Office have denied any knowledge of the deal. According to Muigai, the Treasury hired private lawyers and overlooked the office of the Attorney General. He also expressed reservations on whether Kenyans indeed obtained a fair deal from the sale of Telkom Kenya and recommended that this contract be renegotiated. Telkom Kenya currently trading as Orange Telkom is facing a loss making streak amidst a choking industry competition.
“There is no country that has recorded great economic development without reliable and accessible power supply for both industrial and domestic use,” the President said. He also directed authorities to ensure they generate and distribute power to rural areas and meet the 1,600-village target. Meanwhile the President is in discussion with the team from China National Machinery & Equipment Corporation (CMEC) that was led by Mr. Sun Bai, Chairman of CMEC. CMEC is a key subsidiary under the Sinomach Group and was established in 1978 at the dawn of China’s reform and opening-up period. Foreign aid by CMEC to African countries can be dated back to the inception of the company in the 1970s when CMEC aided the construction of a Farming Tool Factory in Tanzania, the Guinea Mamou Farming Tool Factory and the Zaire Kinshasa Farming Tool Factory. In the 1990s CMEC launched exports of complete sets of equipment and began contracting large engineering projects in Africa. President Kikwete is in Sri Lanka participating in this year’s Commonwealth Heads of Government Meeting (CHOGM), which was officially inaugurated last week.
WB to release Uganda report BY PAUL TENTENA nKAMPALA, UGANDA - The World Bank will this week release a report that will show how well Uganda is delivering its education and health services. The report, Service Delivery Indicators, is a bold Africa-wide initiative that tracks performance and quality of service delivery in primary schools and at frontline health facilities across countries and over time. According to a statement by the World Bank: “The ultimate results for citizens depend critically on the quality of services being delivered. With this focus, a new set of Service Delivery Indicators (SDI) for Uganda will be launched this week by the World Bank, the African Economic and Research Consortium and the African Development Bank.” The report will be delivered on November 19, 2013 at the
Kampala Serena Hotel. The Uganda SDI results come at an important time when the Government has recognized the quality of health and education services as a national priority. Uganda spends almost a quarter of its budget on health and education, and ensuring these resources translate into quality services is critical for Uganda to build the workforce needed to achieve its vision of a modern and prosperous Ugandan society in 2040. The goal is to boost accountability for services. Citizens can use this data to hold governments and providers accountable and to push for change, while the government can use it to target reforms and track their impact across time. The goal is to boost accountability for services. Citizens can use this data to hold governments and providers accountable.
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