Vol ix issue xvi by East African Business Week

NOW FLYING TO THE MAGNIFICENT SIGHTS OF BRAZIL

n NEWS

Certificates required to export Rwanda ore

Precision Air hit by cash flow problems

PAGE 4

Singa Three times weekly to Rio & Sao Paulo

PAGE 8

and no

flights www

www.ethiopianairlines.com

E AST

VOL. 9, ISSUE 16 NOVEMBER 25 -DECEMBER 1, 2013

www.busiweek.com

A F R I C A N

Unveiling Opportunities

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

Kikwete tells oil firms to behave BY LEONARD MAGOMBA nDAR ES SALAAM, Tanzania – President Jakaya Kikwete has warned oil and gas companies in Tanzania to stick to the operational guidelines and relevant national laws concerning exploration and production to protect the environment. He was speaking during the launch of the 4th Tanzania deep offshore and north Lake Tanganyika licensing round in Dar es Salaam recently. “We all know that poorly planned petroleum operations may become an environmental hazard affecting people, land, water, plants and animals through pollution,” he said. He said, some of the negative effects of pollution are irreversible. “It will be futile on our and an act of gross irresponsibility, if we undertake poorly planned exploration activities that will have negative impacts to the environment. “It will adversely affect us and future generations,” he said. Kikwete said the government was quite willing to cooperate with the companies, but they should also respect the relevant laws. “We are ready to facilitate your business and ensure that your investment To page 2

Uganda health insurance in 2014 BY BAZ WAISSWA nKAMPALA, Uganda – A taskforce working on the deferred National Health Insurance Scheme (NHIS) Bill has concluded its work and the paperwork is going to Cabinet in the near future. Dr Francis Runumi, the Commissioner for Health Services, said if all goes well the scheme will be operational in the year 2014.“Parliament and Cabinet have been so supportive. The Speaker of Parliament, Rebecca Kadaga, has been demanding for the Bill to be passed. Even in Cabinet, Minister Ruhakana Rugunda, ( the Minister of Health) is demanding for it,” Runumi told East African Business Week. He added: “We are waiting for a few things at finance ministry to get out of the way. For sure once we have the law then we can get through the modalities and we launch it next year,” he said. Under the proposed National Health Insurance Bill, 2007, employees especially those in the formal sector (both public and private) are to pay four percent of their monthly earnings to the insurance scheme. Additionally, their employers would also contribute another four percent while those in the informal sector or those with no job will be mobilized under saving schemes where the same percentage would be To page 2

HONOURED: During a recent tour of the country, President Kikwete was draped with the traditional dress of the Haya people making him a chief.

Kenya sees 3m tourists by 2015 Dutch boost nNAIROBI, KENYA-The Kenyan government last week said it aims to lift the tourists numbers from the current average of one million to three million by 2015. Principal Secretary for the Ministry of East African Community, Commerce and Tourism Ibrahim Mohamed told Xinhua the Kenya Tourism Board (KTB) and private sector players are also changing strategy in how they sell Kenya as a destination to the new and potential markets. “The numbers we are receiving

today from Kuwait and the region are not as high as they should be. This is mainly because there is no proper awareness about Kenya’s distinct tourism products,” said Mohamed during a visit to Kuwait. “Today, people are going to other destinations which have the same facilities and attractions we have in Kenya,” he said in a statement released here. The tourism industry is one of the To page 2

Brigh great Sing thrice Bright destin

Rwanda power nKIGALI, Rwanda-- Rwanda and the Netherlands last week signed a $5 million (about Frw 3.5 billion) grant to support the Electricity Access Roll- out Programme (EARP). According to a statement from the finance ministry, the funds are expected to connect 5200 households to the national electricity grid which represents 2% of the total households. The project is expected to kick off next month and be completed by June 30, 2014. Currently only 16% of households are connected to electricity. However the government plans to have To page 2

US firms win Ethiopia solar electricity deals

nADDIS ABABA, Ethiopia--Three solar power stations totaling 300MW will be built and operated in Ethiopia by two American companies, Global Trade and Development Consulting (GTDC) and Energy Ventures. The Ethiopian Ministry of Water and Energy and directors at the Ethiopian Electric Power Corporation awarded the two Maryland companies the contracts for the three photovoltaic (PV) plants, each 100MW capacity in size. The three projects in Ethiopia, located in the eastern region of the country, were site selected and due diligence performed before receiving technical and financial approval from the two Ethiopian government bodies. The three 100MW facilities, referred to collectively as the 300MW Solar Project, To page 2

www.

NEWS

East African Business Week I November 25-December 1, 2013

Kenya eyes 3 million tourists by 2015 - KTB FROM PAGE 1 major contributors to Kenya’s GDP, which is currently estimated to be around 12 percent. The GDP rate has been steadily increasing and it has a spill over effect on other segments of the economy as well. The East African nation recorded 1.78 million tourist arrivals in 2012, a 0.3 percent decline from the previous year. This is attributed to many factors including insecurity and the euro zone crisis. Kenya’s tourism has been grappling with a decline since September 2011, when the Somali militant group Al-Shabaab carried out the kidnappings of tourists and Spanish volunteers. The KTB’s Managing Director Muriithi Ndegwa vowed to use market development representatives to carry out continuous research that will ensure that Kenya remains relevant to potential tourists from Kuwait. Ndegwa said they see a

MAGNIFICENT: Tourists in Mount Kenya National Park viewing giraffes. positive situation where more Kuwaitis begin to explore Kenya as their new destination. “We expect a real leap in

the number of visitors from the region in the coming years. We also look at ways of setting the ground for creating more awareness

about our products and destinations, so that people can increasingly visit our destinations,” Ndegwa said.

Kikwete tells oil firms to behave FROM PAGE 1 is safe for our mutual benefits. We have the necessary institutional and regulatory frameworks in place. We will always endeavour to continue to improve the investment climate, provide efficient and effective regulatory framework and improve

our infrastructure in order to reduce the costs of doing business,” he insisted. Kikwete said the government intends to develop human resources to match the requirements of the oil and gas industry. “Our dream is to create a situation whereby the government, investors

and the people of Tanzania will emerge as winners. There should be no loser in our envisaged set-up,” he said. He said the spirit of partnership and cooperation is key. “We are in the process of putting in place a gas policy framework to ensure smooth operations of the industry. We have also reviewed the terms of the production sharing agreements. We are taking concrete measures to improve investment climate in the country. As some foreign companies have confessed to me that our investment incentives

are arguably among the best on the African continent,” he said. This makes us feel good in the sense that we are as competitive as other players in the market. No wonder therefore, that we have 24 active PSA’s and 17 operators in the oil and gas industry in our dear country,” he said.The exploration for oil and gas in the deep offshore Tanzania started in 1999. Notable firms are Statoil and Exxon Mobil, BG and Ophir, Petrobras and Shell, and Dominion Oil and Gas.

Dutch boost Rwanda power FROM PAGE 1 70% of the households connected by 2017/18. The Permanent Secretary and Secretary to Treasury, Kampeta Sayinzoga said energy is key for Rwanda if it is to achieve its ambitious development goals. “As we all know, energy is a key component for industrial growth, Sayinzoga said. Also energy plays a significant role in the creation of Job opportunities especially among the youth,” Sayinzoga added.

The Netherlands Ambassador, Leoni Cuelenaere said Rwanda was a country with a vision and that The Netherlands wants to be part of the development process. Last week’s signing takes Dutch overall contribution to EARP up to $45million (approximately 30 billion) since 2009. Apart from EARP support Netherlands is also a key partner in Private Sector, Justice, Decentralization (support to RLSDF/CDF) and water and sanitation.

US firms win Ethiopia solar electricity deals FROM PAGE 1 will create around 2,000 construction jobs. According to Energy Ventures, the project will inject “several million dollars into the Ethiopian economy”. The company claims that ongoing operations will also contribute several hundred jobs. GTDC, which describes its company objectives as helping to “integrate the emerging and frontier markets to the global economy by promoting trade, creating relationships and transferring knowledge”, appointed Energy Ventures as project development partner. In addition to its US headquarters, GTDC has offices in Italy, Ethiopia, Saudi Arabia, South Africa and South Sudan. Similarly, Energy Ventures was created to “specifically address the utility-scale energy needs of developing nations

around the world”. Along with megawatt scale solar projects, Energy Ventures is also involved with areas including utility microgrids and advanced biofuels. Ethiopian water and energy minister Alemayehu Tegenu said: "This project represents a significant advance in our Ethiopian energy initiative and is now part of our comprehensive Energy Plan. Given Ethiopia's large hydro-electric generation capacity and now wind and geothermal power generation coming on-line, large scale solar fits nicely into our energy portfolio and will provide significant power generation capacity much faster than the other renewable technologies. We welcome this project with open arms." In January of this year Ethiopia celebrated the first ever solar panels to be made in the country.

Uganda health insurance in 2014 FROM PAGE 1 deducted for the insurance. However private insurance companies are still uncomfortable with the Bill because it works against them. Caroline Namugala, Underwriting Officer, in the medical department at Insurance Company of East Africa (ICEA) said the scheme leaves insurers in an unfavorable position. “The proposed premiums are too low. The current bill excludes Private Commercial Health Insurers. It does not favour us. It reduces our profitability and return on invest-

ments margin,” Namugala said. However Dr. Runumi said revisions have been made to capture some of the disputed parts of the Bill and are addressed accordingly. On the issue of costing of the premiums, he said, private firms are free to come up with premium prices that they think are competitive. He said it’s a matter of collaborating because private firms have been catered for in the new proposed scheme which should be on the market next year. Dr. Runumi said employers especially in the private sector who were fighting

the scheme have come to understand the benefits.He said with only a contribution of four percent, employers stand a big chance to benefit from their workforce when put under the scheme. “We told them it would improve their costs. Employers will be able to have a health workforce with no absenteeism due to sickness and things like that,” He said a study they have carried out revealed that in instances where employees pay out of their pockets to foot medical bills, company loss amounted to 22% yet when the scheme is used companies can save up to 14%.

NEWS

East African Business Week I November 25 - December 1, 2013

Uganda water utility to revamp

BRIEFLY Gas companies to meet Tz officials nDAR ES SALAAM This week BG Group, Ophir Energy, Statoil and Exxon Mobil are expected to have talks with government officials over their proposals to locate a gas plant in the southern region of Lindi. A second source confirmed that a meeting in Dar es Salaam would review the proposal. Both have close knowledge of the project. The government is expected to make a decision on the site by the end of the year. The choice of Lindi for the plant could cause some controversy in Mtwara,

Google makes Uganda changes nKAMPALA Google is making one of its biggest moves yet into the business of providing Internet infrastructure, installing a fiber-optic backbone to dramatically improve connectivity in Kampala, Uganda. The new network for Kampala— installed in recent months but announced Wednesday—will enable as many as 10 mobile carriers and Internet service providers to boost data rates by a factor of 100 in most areas of the city, which has three million residents

Kenya considers China consulate nNAIROBI Kenya’s Ambassador to China Michael Kinyanjui has said the government will address the rising demand for a consulate in the City of Guangzhou. Kinyanjui told Capital FM Business that he was planning to hold a meeting in the next few weeks with the Cabinet Secretary for Foreign Affairs Amina Mohamed to push the idea. He said an office in China’s third largest city would be crucial due to the high number of Kenyans residing there.

By BAZ WAISWA

GOOD QUALITY: Tullow say this is the fifth oil strike and appraisal is to be done next year. COURTESY PHOTO.

Tullow shares rise with Kenya strike nNAIROBI, Kenya--Shares in Tullow Oil surged last week in the UK after the company said it had struck oil at a new well in Kenya. It is the fifth oil strike in Kenya for the Irish-founded and Africafocused oil exploration company. According to the Irish Independent, shares rose 3.21pc in early trading on the news – enough to boost the market value of the UKbased, London Stock Exchange and ISEQ-listed business by about 270 million – but gave up much of that big gain later in the session, settling up 1.8pc at 10.75 a share in Dublin. That rise bucks a trend that has seen Tullow shares fall 35pc since the start of the year – thanks to a run of poor explorations results. Recently the Kenyan operations were hit by a dispute with members of the local Turkana people that came to a head in October. Then Tullow Oil was forced to halt operations at two Kenyan sites, after demonstrations by

100 metres Net oil pay

35%

Previous fall in shares

2014

First appraisal

activists pushing for more jobs associated with the wells to go to local people. Tullow is also looking at Ethiopia. Operations at both wells resumed on November 8, and are now fully operational, Tullow said yesterday. It said it had “discovered and sampled moveable oil” at the latest Agete-1 exploration well in Block 13T. It features an estimated “100 metres of net oil pay in good quality sandstone reservoirs” the company said in an investor update. The latest find is in an area close to the Kenya-Uganda border, some distance away from previous finds

in the country and in a district where oil has not previously been extracted. As such it is understood to bode well for other to-date-unproved prospects in the same area. Tullow Oil owns a 50pc stake in the new well. Canada’s Africa Oil owns the other half. “A fifth consecutive oil discovery onshore northern Kenya highlights the emerging world-class exploration and production potential within our rift basin acreage. “An intensive campaign for 2014 includes appraisal and exploration within this first basin and pioneering wells targeting the prospectivity throughout the entire chain of similar rift basins,” according to Angus McCoss, exploration director at Tullow Oil. The company said the plan was that operations at the new site would be suspended once further investigations had been completed. Equipment used at the site will then move to prospects elsewhere in Kenya.

n KAMPALA, UgandaNational Water and Sewerage Corporation (NWSC), the government utility that provides water and sewerage services in areas entrusted to it on a sound commercial and viable basis. The corporation that operates in 28 urban centers in the country has in the past received criticism from the public over poor service delivery. However this is going to change after the Silver Mugisha, the new Managing Director, initiated a five year plan targeted at improving the corporation’s service delivery and economic excellence. The corporation will soon launch the Five Year Strategic Direction arising from a need to redefine and contextualize the goals and aspirations of the corporation in a longer term perspective in order to effectively contribute towards the longer term vision of the government. Within the context of the overarching government policy, there has arisen a need to redefine and contextualize the goals and aspirations of the corporation in a longer term perspective in order to effectively contribute towards the longer term vision of the government. Some of the critical aspects relate to the need for the rapid expansion in urban water coverage to reach 100 percent by 2016 and the expansion of sewerage services in all areas of NWSC operation. Piped water remains limited to urban areas across Uganda.

MTN joins Aon to Jubilee life By PAUL TENTENA

GOOD IDEA: MTN’s Mazen Mroué with Jubilee’s Patrick Kimathi.

nKAMPALA, Uganda--Uganda’s largest insurance broker, Aon and Jubilee Insurance have come together to offer a simplified life insurance product with low premiums offered on mobile technology in a bid to boost uptake of life insurance. Customers can take up the Lifecare Insurance by registering through the MTN network on their mobile phones and pay the premiums through its mobile money platform at their convenience. The product also skips the tedious

paper-work and medical checkups process that discourage many Ugandans from seeking out insurance cover. Insurance penetration in Uganda come togetherstands at a low 0.7 per cent of the GDP. This is part of players’ efforts to increase the penetration. With LifeCare Insurance, AON and Jubilee are targeting the mass market of about five million MTN mobile money subscribers. Aon Director in charge of Large Clients/Business Development, Jeremy Kirkland said, “This groundbreaking insurance cover provides trusted security that is designed to meet the

real needs of Ugandans at a price they can afford”. “There is no need for medical checkups or complicated application forms. Subscribers simply enroll via their phone and cover is immediately effective upon payment of the premium by the Mobile Money customer,” Kirkland added during the launch in Kampala on Fridasaid during the launch. The premiums, starting as low as Ush7, 500 a year, will be paid as a one-off lump sum and the cover expires after 12 months upon which the customer can choose to renew the cover.

BRIEFLY Region in uproar over South Sudan directive NAIROBI - Major companies and business people across the region have expressed concern over a new directive by South Sudan to limit foreign workers. Last week Vice President James Wani Igga said foreign workers should only be employed in situations where there are no skilled South Sudanese. There are several hundred foreign workers in the country. Chris Kimathi, of Kenya Builders Association, said the jobs of several Kenyans working in South Sudan were now under threat.

Report stays bullish on Kenya prospects NAIROBI - Kenya’s exports to its neighbours and fellow-members of the East African Community (EAC) are set to grow strongly, according to the latest Kenya Shipping quarterly report. The reports states in part, ‘Consumption is looking resilient, even though the new government has said it will look at introducing a value-added tax which, depending on the approach taken, could add 16% to the final prices of a range of basic goods.’

Swiss bankers target regional millionaires LONDON - UBS, one of Switzerland’s biggest banks is vying with other Swiss banks for emerging market millionaires as a global crackdown on tax evasion forces European and American clients to withdraw funds. Sean Bennett, the Johannesburg-based managing director of UBS in sub-Saharan Africa, said there is potential to woo super-rich customers in Ghana, Kenya, Ethiopia, Uganda and Botswana, Credit Suisse is also planning to withdraw from 83 markets, including Angola and the Democratic Republic of Congo, to cut costs.

NEWS

East African Business Week I November 25 - December 1, 2013

Certificates required to export Rwandan ore BY AGNES BATETA KIGALI, Rwanda--Rwanda is the first country in the Great Lakes Region to issue mineral export certificates which confirm traceability and transparency in the whole mining procress. Recently Rutongo Mines in Rulindo district was the first to acquire a one year International Conference of the Great Lakes Region (ICGLR) certificate. It was issued by the Ministry of Natural Resources. Another 15 mining companies are in the process of acquiring certificates. These include New Bugarama Mining Company, Nyakabingo Wolfram Mines and Gifurwa Wolfram Mines. “Such a move is meant to reduce on export of minerals from conflict areas and Rwanda here since she complies with the set of international regulations, this is why she managed to issue such certificates” Evode Imena the state minister for mining said. He said such certificates will enable Rwanda trade minerals internationally even though it neighbours countries with problems related to mineral exportation. “This again is beneficial to the miners in the country since their produce will at anytime get market when they give it out to their customers and therefore here business will be boosted,” Imena said. He said, “Rwanda integrated the designed ICGLR mineral certification mechanism in its legal framework in April 2012 and this is why now it is actually implementing it.” This certification works in a way that when minerals from a certain mine are tagged under the mineral tagging and traceability scheme, an ICGLR certificate is issued to accompany such exported minerals. This creates order in the mineral business and limits problems

TRACEABILITY: Miners will have no problem selling.

35,000

Employed in mining sector

548

Est. number of mines

Applications

for people dealing in the export of minerals. Rwanda has managed to establish borders surveillance to reduce on mineral smuggling especially from the Democratic Republic of Congo where it has so far captured about 80 tonnes of tin being ferried to the DRC. About 548 mines are found in Rwanda and these have tin ore, coltan ore and wolframite ore which minerals are

COURTESY PHOTO

most exported in the great lakes region. “This is a good strategy which will help mines work in a more organised way,” Jean Malic Kalima the President of the mining association in Rwanda said. He said the major problem they had with the new programme were the fees being charged when exporting minerals. “We pay about $200 and $300 to export coltan or cassettirite and this is quite expensive for most miners in Rwanda,” he said. He requested authorities for a price revision highlighting that the sector employed about 35,000 people.

TAZARA ready for investment BY PATRICK KISEMBO  DAR ES SALAAM, Tanzania--The Tanzania Zambia Railway Authority (TAZARA) Council of Ministers, has directed the Board of Directors and management to work out a framework for incorporating private sector participation in the Authority’s operations and future investment plans. The meeting was cochaired by Yamfwa Mukanga, the Minister responsible for Transport in Zambia and his Tanzanian counterpart Dr. Harrison Mwakyembe. The proposal to engage the private sector was mooted as a way of re-capitalising TAZARA and raising working capital. It was agreed that both governments are finding it difficult to justify the continued injecting tax payers’ money into TAZARA, when the venture had the potential to be self-sustaining. “We simply cannot continue running TAZARA in a manner that does not inspire confidence. We have the obligation to turn this institution around and start running it as a business, generating sufficient revenues to meet operational costs and making profits,” Mrs Ngoma, the Zambian transport permanent secretary said. Her Tanzanian counterpart, Dr Shabaan Mwinjaka told management to change their mindsets and adopt a different approach to the way of conducting business. “We are actively revising our five-year strategic plan to look for investment funding elsewhere and possibly invite non-equity private investments. We have not one, but many players who understand TAZARA well and have expressed very keen interest in forging efforts with the Authority.” Engineer Ronald Phiri, the TAZARA managing director said.

Lack of funds halts Uganda hotels classification BY SAMUEL NABWIISO KAMPALA, Uganda - The Uganda Tourism Board (UTB) does not have enough money to carry out the Hotel Classification Exercise UTB officials have told East African Business Week. The exercise is supposed to be carried out by all five members of the East African Community to develop a uniform criteria throughout the region. “We skilled the Hotel Assessors, on how to conduct the exercise acoording to the East African Community Hotel Standardization guidelines and also had meetings with the hotel owners about the advantage of government caring out hotel classification,” Innocent Asiimwe, the Quality Assurance Officer at UTB said. “The majority embraced it, but as UTB we have not embarked on the classification work and grading because the

government has not released money to the agency,” he added. UTB is the government agency responsible for marketing of tourism. However, UTB cannot do this without a grading system. Asiimwe said UTB trained about 16 assessors compared to Kenya’s 26. However nothing has been achieved due to inadequate funding. “Hotel classification is a good tool for marketing the country’s tourism sector in the region. The more Uganda delays to complete the exercise, the more the country will lose foreign exchange from tourism because tourists need information concerning the standard and grades of our hotels for their safety when they’re in the country,” he said. He esitmated that UTB needs Ush600 million (about $240,000) to carry out the exercise. Not long ago, UTB Executive Director Cuthbert Baguma told owners if their hotels are classified, this will help them to market their services and also attract more customers. He said

60% of traveler’s budget goes into meals and accommodation. “When our hotels are standardized this will help both the government to promote tourism, but also the private sectors will also benefit because 60% of the tourism budget is spent on meals and accommodation which is provided through hotels. But for them to earn more from the sector hotel owners should offer quality services to the visitors,” Baguma said during the training for the hotel owners in Kampala in July. The tourism sector is growing fast, with the country attracting an increasing number of foreign visitors. Hospitality services like accommodation due to the growing number of tourist this has led the demand for more hotels in the country. Hotels have been constructed but many do not meet international standards. Since many are in the hands of the private sector the government felt the need to carry out hotel classification and standardization as way of creating harmony between the tourists and hotel owners.

FINANCE

East African Business Week I November 25 - December 1, 2013

Kuwait in $12m Rwanda loan deal

BRIEFLY Kenya power utility moots Eurobond NAIROBI - Kenya Power expects to spend $700 million by 2017 in a massive infrastructure expansion programme and has mooted plans to issue a Eurobond. According to Bloomberg, acting Managing Director, Ben Chumo said, “It will be very limiting for us to focus on local currency. Forex will be the option that we will go for.” Power generation is set to increase by more than 5,000MW in four years, compared with current capacity of about 1,700MW.

UK in $30m spend for Tz DAR ES SALAAM - The UK’s Department for International Development (DfID) is spearheading investments totalling about $30 million mainly in Tanzania’s agribusiness and power sector. The overall intention is to also encourage development of smallscale farmers. DfID boss, Justine Greening also mentioned taxation. “Sustainable tax revenues provide essential funding for public services and ultimately allow developing countries to stop being aid dependent,” she said.

Kenyan stocks peak since post-violence NAIROBI - Kenyan shares reached their highest close since mid-2008 when the country was still recovering from the 2007 post-election violence. According to Reuters, at one point last week the benchmark NSE-20 share index edged up 0.3 percent to close the day at 5,058.16 points, lifted by gains in telecom and bank shares. Officials project that Kenya’s gross domestic product will grow by 5.5-6% this year, accelerating from 4.6 percent in 2012. Kenya is East Africa’s biggest economy.

BUSY: Settlement time at DSE has been reduced to three days from the previous five. COURTESY PHOTO

Dar Stock Exchange turns over US$211m BY LEONARD MAGOMBA DAR ES SALAAM, TanzaniaTrading volumes at the Dar es Salaam Stock Exchange (DSE) reached Tsh340 billion (about $211.78 million) a year, thanks to improved efficiency and easier access for investors. DSE said, three years ago, it had been trading at Tsh50 billion ($31 million) per year. However, introduction of new schemes has simplified trading and sharply increased turnover. Moremi Marwa, the DSE Chief Executive Officer, told East African Business Week in Dar es Salaam last week, the new initiatives have helped the bourse to grow its businesses. “Up to end of this year, we expect to earn over Tsh150 billion ($93.43 million),” Moremi said. He said the leading sector is industrial, followed by banking. Moremi said the DSE is now trading between Tsh40 to Tsh50 billion ($24.92 million to $31.14

$93 million

Projected earnings for 2013

$31 million

Turnover three years ago

$24m to $31m Quarterly trading

million) quarterly which grew from Tsh10 billion ($6.23 million) traded three years ago. “The development has been attributed by the four major improvements. The shifting from Local to Wide Area Network, to cut settlement cycle, extended trading hours as well as to create awareness to the general public about DSE businesses,” he said. He said the bourse has improved its settlement cycle, that is, delivery versus payment for both equities and bonds. The improvement means it now only takes three days to make deliveries and payment for shares,

unlike the previous five days. “If you buy CRDB shares (a leading bank) today, you will receive your certificate within three working days. The one that sold you the shares will also receive his cash during that same time,” Marwa said as an example. Similarly, he added deliveries and payment for bonds will now be done in just one working day compared to three days previously. Security situation has also been improved to reduce payment risks involved during transaction for both equities and bonds. DSE has shifted from the Local Area Network to Wide Area Network in a move meant to make its services accessible by market brokers in the comfort of their offices wherever they are. “Market brokers can now conduct trading activities right from their offices,” he said. He said the reform in delivery and payment will increase liquidity in the market as transaction time will be shortened.

 KUWAIT CITY, Kuwait--The Kuwaiti government is financing the construction of the new Munini hospital in Nyaruguru district, Southern Province. Recently, the Kuwait Fund for Arab Economic Development (KFAED) signed a $12.7 million agreement with the Rwanda Minister of Finance and Economic Planning, Claver Gatete. “Health is one of the underlying factors in the quest for a middle income economy by 2020 and hence very crucial that Rwandans access health services,” Gatete said. The agreement was signed on the sidelines of the ArabAfrican Forum in Kuwait. According to a ministry statement, construction of the hospital would not only bring closer quality health services to Nyaruguru sector but also provide employment opportunities to nurses and doctors. Abdulwahab Ahmed AlBader, the KFAED Director General highlighted Rwanda’s track record of proper use of aid and added, “We are ready and commited to continue to supprot Rwanda going forward and we are asured that the people of Rwanda will stand to benefit from this partnership,” he said. This project is expected to not only serve the people of Nyaruguru district but also people from the neighboring districts of Gisagara, Nyamagabe and Huye. Kuwait Fund supports several projects in Rwanda including the concluded $10 million Rehabilitated Ngororero-Mukamira Road project, expansion and rehabilitation of the Integrated Polytechnic Regional Center, with financing amounting to approximately $ 14.2 million.

Uganda NSSF goes for $400m housing BY EMMA ONYANGO

FRIENDLY: Byarugaba said the project offers a 20% return.

KAMPALA, Uganda --The National Social Security Fund (NSSF) is spending $400m on a new highprofile housing project. This is despite realizing a return on investment (ROI) of 2% from its investments in the real estate sector last year. Richard Byarugaba, the NSSF Managing Director said the 2% was as a result of property that remained unoccupied as well as having idle land. “This is a test project and the studies we have conducted show that the expected return from this project is 20%. This project is in line with the real estate Investment Strategy of the Fund. It

is planned as a Mixed Use Development with residential housing, commercial facilities inclusive of office parks, retail, school, hospital and a hotel,” he said. Byarugaba said: “The housing units that will be constructed are apartments, town houses, bungalows and villas, which are suitable for middle to high income earners.” The investment involves construction of a landmark 2,741 unit housing estate in Lubowa, Wakiso District near the capital Kampala. NSSF wants to give members competitive returns on their savings from this project. Byarugaba said, “The NSSF Lubowa Housing Project will not only deliver an environmentally and friendly modern

estate with associated social amenities, but will also make a major contribution to the reduction of the housing deficit currently faced by the country.” According to official figures, there is a general housing deficit in Uganda. Byarugaba said, “The NSSF Lubowa Housing Project will not only deliver an environmentally and friendly modern estate with associated social amenities, but will also make a major contribution to the reduction of the housing deficit currently faced by the country.” There has also been a recent slump in the real estate market due to reforms in line ministry. This has included computerisation and decentralisation of the land registery.

EDITORIAL

East African Business Week I November 25 - December 1, 2013

www.busiweek.com Facebook: www.facebook.com/.../East-AfricanBusiness-Week Twitter: @eabusinessweek

Kudos to Tanzania for new gem centre

anzania took a major step in earning more from the precious stone value chain by opening a new gem cutting and polishing factory. This is crucial since the country boasts of a huge store of gemstones including diamonds, sapphires, garnets and zircons. Tanzania is also where Tanzanite is mined. No where else, but a huge percentage of the stones have been cut and fashioned in Jaipur, India. India’s gems and jewelery industry accounted for 16.7% of the country‘s total merchandise exports ofr some $300 million. This means that the Indians are earning more from the value chain than the Tanzanians where the stones originate from. The new Arusha factory is supposed to change this. Deputy Minister for Energy and Minerals, Steven Masele said the government wants Arusha to become an international gemstone centre. In October Arusha was the host of the second International Gem, Jewellery and Mineral Fair where just over $4 million was made from sales. Much more can be earned if a bigger part of fashioning the gems is done domestically. The Arusha fair is important for people in the gems industry to share resources and knowledge, in order to build a value-addition infrastructure that brings more direct benefit back to Tanzania. The factory is joint venture between Diamond International and Signature Gems Limited. Apart from buying Tanzanite, the factory is to be used to train Tanzanians on how to polish and cut gemstones. The global coloured gemstone industry is valued at between $10-billion and $12-billion a year. About 80% of these gemstones are produced by small-scale informal mining operations. The United States market consumes more than 50% of jewellery products worldwide. It is no secret that the Tanzania government wants to create incentives for foreign buyers to relocate and bring in the necessary resources for capacity building. By doing so, jobs are created and talent is nurtured. Consequently value is retained as opposed to the past when this was given away to foreigners. Tanzania has a good model to copy. Almost 10 years ago, Botswana forced De Beers to move the sorting and distribution of gems from London to a joint venture involving the government in the country’s capital, Gaborone. Since then, the Botswana government has been encouraging other companies to set up diamond-cutting plants in the southern African country. Botswana is world’s biggest uncut diamond producer. It may be helpful for the Tanzania government to also send at team to Antwerp in Belgium to see how it is done there and especially to learn how to create a distinct brand. Nearly 80% of all rough diamonds in the world are handled in Antwerp. The other issue that has to be resolved is certification. Last year the then minerals minister, William Ngeleja said the government wants development of the gemstone sector to be industry-driven, but although it all begins in Tanzania, there are only a few hundred cutters compared to several thousand in India. Ngeleja said this disparity needs to be overcome. Tanzania is asking that the Indians become partners in helping build the gemstones business in Tanzania. Countries in the region will find it very difficult to prosper if most of the value of their natural resources is given away for others to process. Tanzania is no exception.

THE FUTURE IN YOUR HANDS: Swala is planning to raise $2 million from the IPO for business development.

Tz oil firm offers shares BY LEONARD MAGOMBA

nDAR ES SALAAM, Tanzania--Swala Energy, an oil and gas exploration firm, will soon sell some shares in an Initial Public Offering so as to list on the Dar es Salaam Stock Exchange (DSE). This will be done through the DSE micro-finance window, Economic Growth Market (EGM). The energy firm’s prospectus awaits Capital Market and Securities Authority (CMSA) approval. If all goes well, it expects to list on EGM next month and start trading early 2014. Swala which also listed on the Australian Securities Exchange (ASX) is expected to release 3.75 million shares to the public in Tanzania in areas of its operations. DSE’s Chief Executive Officer, Moremi Marwa confirmed to East African Business Week during a telephone interview in Dar es Salaam last week that Swala IPO will be ready in a few weeks to come. “Swala Energy is planning to raise as much as $2 million by listing its Tanzanian unit, Swala Oil and Gas Tanzania, on the DSE’s special window in the next quarter,” Moremi said. The recent successful listing of Maendeleo Community Bank which was oversubscribed by 1.2 million shares early this month, has attracted many firms to rush

for the DSE’s alternative market, EGM. The opening of EGM, the second

“

Reginald Mengi is one of the prominent shareholders

window of DSE that has less stringent condition of listing, has been termed as the catalyst for start-up and refinancing enterprises to boost their capital. The Dar es Salaam bourse has approved Swala Energy’s share listing on the EGM, a move that could make it the third firm to start trading on the new board. The DSE disclosed the approval in its quarterly update for the period ended September 2013. The Australian firm, will be listing on the Dar bourse after the IPO, joining Maendeleo Bank whose shares are already trading on the new board and Mwanza Community Bank whose IPO was extended. “We are expected before end of this year. The three firms, Maendeleo Bank, Mwanza Community Bank and Swala Energy Tanzania will be trading at the EGM,” Marwa said. During this quarter the DSE Govern-

ing Council approved three new listings on the EGM market. Tanzania Securities Limited is the nominated advisor for Swala Energy and its IPO comes at a time when the exploration firm raised $4 million through a private placement. The private placement saw two strategic investors – an investment firm based in Abu Dhabi called Hayaat Group and Dr Reginald Mengi, a private investor – take up 9.4% and 3.3% ownership of the company respectively. In a statement Swala Energy discloses that, ‘The funds will be used to accelerate the company’s work programme in its existing licences, for corporate activity and for continued business development.’ Swala has a 32.5% equity interest in each of the Pangani and KilosaKilombero hydrocarbon exploration blocks in Tanzania and in Kenya it jointly owns the 12BB block with Tullow Oil. Earlier this month, the firm announced positive results of its 2D seismic programme at the Kilombero basin whose initial results suggested the presence potential deposits. Deposits in the Kilombero Basin appear to be similar to those discovered in the oil basins of Lokichar in Kenya and Lake Albert in Uganda where major oil reserves have been found.

LETTERS & PERSPECTIVE East African Business Week I November 25- December 1, 2013

IBM centre not just for Kenya

Perspective

Image of the week

China shifts

Editor, It was gratifying that US technology giant, IBM, chose Kenya for their latest research laboratory. For all we know, the lab could have been easily gone to South Africa. However I am of the view that the whole region has gained. This is a recognition that serious people in the industralised world, also see a huge potential in East Africa. The fact that the application that launched mobile-money was developed in Kenya, is another graphic reflection that the talent for innovation is alive and well. It only needs support which this new IBM lab will go a long way to provide. The regional governments must take the Rwandan example by being active in nurturing ICT development to makes us competitive.

SLEEK: Giant Japanese vehicle maker, Nissan, last week unveiled their concept car, the Nissan BladeGlider. It is equiped with in-wheel elecric motors in the rear wheels of the 3-seater delta wing shaped body.

Elsie Kamau Nairobi, Kenya

Processing depends on infrastructure Not easy to with the relevant utilities. the best facilities are. Editor, limit betting Everything has to be coordiInvestors would rather In your paper recently, it was stated that the Tanzania Export Processing Zone Authority (EPZA) wants to set up other such zones upcountry. While I applaud this aim, it must be realised that it is easier said than done. The reason why factories are located in or near cities is because that is usually where

bear the price of having the commodity brought to the city than face haphazard supplies of power and water. Such disruptions are also seen in cities. However upcountry such things as piped water are usually not even there. Therefore if the EPZA is serious about this intention then they must work closely

nated. Ideally, an upcountry factory presents several advantages, chiefly helping to increase income levels from higher employment. But before we get there, let keep inmind the realities of what is available upcountry.

cations that can arise if there is no monitoring. That is why some traders speak of these checks as NTBs when frequently in reality it is an attempt to guard public health. Diseases know no borders. So we must be alert. The EAC is coming up out with Sanitary and Phyto Sanitary Measures (SPS) which hopefully will clear up cross-border trade in produce.

I am sceptical that the governmnent can regulate gambling and betting in Uganda as they would like to think. This activity can get very addictive. So the demand will most likely drive the business forward and I doubt the government has the capacity to control the whole industry. Just as it is difficult to control underaged drinking, I think it will also be the same with this betting business. The fact that there is so much liquid cash crossing hands, people can be easily corrupted to look the other way when wrong things happen. What about betting using your mobile phone? Is the government really being realistic that they can have a handle on this activity?

Technocrat Arusha, Tanzania

Dan Lule Kampala Uganda

John Mutema Dar es Salaam, Tanzania

EAC working on produce standards code Editor, Thank you for your story about the problems of selling produce in the East African Community and especially the nuisance of non-tariff barriers. But it must first be understood that selling food across borders should not be simple. It is true that the informal trade booms. However the reality is the regional governments are also aware of the negative public health impli-

Editor,

Subsidising electricity debate verges on politics Editor, I am sure that the views expressed by Uganda’s development partners concerning the subsidising of electricity have much merit. Unfortunately merit, does not always win elections or

public support. So governments will subsidy things as water and power supplies. The world over, including India, Pakistan, France, Argentina, Brazil and South Africa, some sort subsidy scheme is in place. The view that subsidies

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

skew demand and a government’s investment choices is not new either. However, subsidies are far more about politics than economics. For years we Africans have been telling the Europeans to stop farm subsidies and they have declined to do so. Just as

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

the Americans have also refused to listen to critics about their Farm Bill which is full of subsidies. So I wonder is this a case of double standards? Edison Agaba Makarere, Kampala

nWASHINGTON, Usa--The Third Plenary Session of the 18th Party Congress was completed in Beijing recently. Themed ‘deepening reform’, the Session had raised high expectations in and outside China about the new directions and initiatives the Party will adopt to address the country’s various problems, including its economic slowdown and other internal challenges. The meeting had potential implications for Africa. Globalization and the economic interdependence among countries have enhanced the butterfly effect of China’s own policy adjustments on others. As Africa’s largest trading partner and a key investor, China’s economic prospects have a significant impact on its economic relations with Africa. The economic slowdown in China will affect its demand for commodities internationally. Among them, energy and mineral supplies are precisely the key strength of those African countries rich in natural resources. The declining demand will also drive down the commodity price, further affecting these countries’ economic outlook. In this sense, whether the Third Plenum successfully addresses China’s economic challenges will directly affect its trade with African countries and indirectly influence the revenue from commodities. So far, without the widely anticipated financial reform and reforms of the state-owned enterprises, the Third Plenum seems to have disappointed many African nations in the economic arena. On the other hand, the Third Plenum might bring some good news for SinoAfrica trade. It pushes forward certain trade and investment facilitation measures, including free flow of domestic and international factors, opening up of markets, relaxation of investment access and speedy construction of free trade zones. How much Africa could tap into these initiatives beyond natural resources depends on the additional qualities of Africa itself, such as the development of its manufacturing industries. The Plenum particularly emphasized the need for China to “participate in and lead the new comparative advantages in international economic cooperation.” Since China is trying to upgrade its position in the global supply chain from the ‘world factory’ to a ‘technological innovator and leader.’ Africa could very possibly see more Chinese efforts to relocate its existing manufacturing centers. The Third Plenum also announced the creation of a new state security committee that will presumably cover both domestic security and external foreign policies. In the past, how to better coordinate and balance China’s economic agenda and political pursuits in Africa as well as manage the proliferation of actors in Africa has been a major challenge for China’s Africa policymakers. In many cases, Chinese companies thirsty for African natural resources engage in resource exploitation and business irregularities with little respect for the local community or their longterm sustainable development. They tremendously undermine China’s long-term friendship with the local people and governments. It is estimated that the Libyan civil war cost China a total of more than $20 billion in investment and service contracts. With this new institution created it is hoped the committee could generate more cohesive and coherence policies with the outside world, Africa included. Brookings Institution

“

The Chinese may relocate their factories to Africa

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

BRIEFLY FAO warns of food shortages in Kenya NAIROBI - The United Nations Food and Agriculture Organisation has warned Kenya that food production in the country would drop by between 30% to 40%. This is expected to result in higher prices for such staples as maize. FAO, which has regional office here, said last week, causes for the pending shortage include failed rainfall, high prices of farm inputs, uncertified seeds and the lethal maize disease as some of the main challenges facing the agriculture sector.

Nkurunziza meets UAE prime minister  KUWAIT CITY - Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE, recently met with Pierre Nkurunziza, President of the Burundi. This was on the sidelines of the Third Africa-Arab Summit. During the meeting, the two discussed bilateral relations between the UAE and Burundi in a number of areas, particularly in sustainable energy projects, tourism and infrastructure. Nkurunziza welcomed the chance for Burundi to benefit from the UAE experience.

Crystal Ventures to sell MTN stake KIGALI - Crystal Ventures Limited (CVL) is offering up for sale its shares in MTN Rwanda. Sources say the 20% stake is to be sold off in a public offering which is expected to boost turnover at the Rwanda Stock Exchange. CVL is one of Rwanda’s most diversified enterprises and leads in joint ventures with foreign investors. CVL was set up in 2009 and acquired most of the assets of another local investment company which was founded in 1995. The company is wholly owned by Rwandan business people.

NEWS

East African Business Week I November 25 - December 1, 2013

Precision Air hit by cash flow problems BY LEONARD MAGOMBA DAR ES SALAAM, TanzaniaThe Tanzanian shillings mismatch with the United States dollar has caused cash flow problems for Precision Air, one of the fastest growing airlines in the region. Explaining to East African Business Week how the airline posted a Tsh30 billion (about $18.67 million) loss during the year ending March, 2013, the airline’s Board Chairman, Michael Shirima said currency mismatch, lack of capital and some internal manageable factors are among the factors that contributed to the loss. Shirima said businesses with narrow profit margins are highly sensitive to external shocks affecting either revenue stream or cost elements. “This loss is further complicated by the currency mismatch. The revenues are mainly denominated in local currency while larger percentage of costs (fuel and maintenance) is in foreign currency,” he said during the Annual General Meeting. He gave the example of a large part of Precision Air’s income being in shillings, while most of the expenditure such as aircraft purchase, spares, oil and large repairs are in foreign currency. He said there is always the possibility of losses arising due to falls in the value of the Tanzanian shilling against the US dollar. He said, “Management foresaw these challenges and acted proactively to steer the company clear of turbulences.” One of the steps deployed was seeking long-term capital inviting new shareholders through Initial Public Offer (IPO) and subsequently listing ordinary shares on the Dar es Salaam Stock Exchange (DSE) in 2011. “We did not succeed in raising the amount we needed and this

COSTS: Earnings are in shillings but most expenditure is in dollars.

$18 million

Loss for the year

2011

Listing year on DSE

Tsh475

Current share price

shortage raised many problems,” Shirima told shareholders during the AGM in Dar es Salaam. The lack of adequate capital put the airline in a compromising position because the aircraft had already been ordered in advance. Since aircraft orders require earlier placements and fifteen percent (15%) deposit of the price, this money was paid. “Cancellation of the aircraft orders would have attracted heavy penalties and also slowed the company’s growth plans,” he said. As a result, he said the company experienced pressure on its cash flow and eroded the company profitability but despite the above, the value

of shares in the DSE market, although rarely traded, have held steady at a price of Tsh475 ($0.296) per share. Shirima who is also the founder and part owner of the airline said external factors also played part in this dismal performance. However, he admitted that there were some internal manageable factors that had a significant share on the reported results. “After thorough performance review for the past few years, the Board has noted key possible source of trouble,” he said. These are: inefficient network, costly fleet type, low productivity, lack of cost control and un-optimized ancillary revenue opportunities, he said. “The lesson has been learned. The Board made significant change in management and is optimistic that these problems present an opportunity to drive back the company to profitability for the days ahead,” he said.

Rwanda bank gets high rating BY AGNES BATETA  KIGALI, Rwanda-- During the recently concluded annual Forum for Chief Executive Officers in the Association of African Development Banking and Finance Institutions (AADFI), the Development Bank of Rwanda (BRD) was ranked seventh. This was recognition for its regular support to growth of small and medium enterprises (SMEs). The forum took place in Nairobi. The top five rated institutions included, African Export and Import Bank (Egypt), East African Development Bank, credit Agricole du Maroc (Morocco), Odu’a Investment Company (Nigeria) and, Banque Nationale pour le Developpement Economique (Senegal). Receiving the award, Emmanuel Murangayisa, the BRD Director of Finance, promised they will continue supporting growth in Rwanda. BRD is partly owned by the Rwanda government. Murangayisa said, “Because of the great performance of this bank, our net worth has been able to go higher in the past eight years.” “BRD incurred losses between 1985 and 1994, but later picked up and now we only see great achievements,” Murangayisa said. He said that BRD gives out loans to different sectors in the country and this contributes to its growth. The regional Director of African Development Bank Gabriel Negatu called on financial institutions in Africa to continue supporting business.

First solar power plant in Uganda BY JOHN SAMBO

THE PLAQUE: Byandala (right) hails the partnership with KIS.

KAMPALA, Uganda--Kalangala Infrastructure Services Limited (KIS), the company contracted to develop infrastructure in islands district of Kalangala, is to build the first solar power plant in sub-Sahara Africa. The $17 million 1.6MW power plant will use solar thermal hybrid system to generate power which will be transmitted and distributed throughout Bugala Island. John Opiro the KIS Managing Director said last week, “This is yet another milestone KIS has shown progress in steps towards develop-

ing the social economic aspects of the Island. We started the placement of electric poles in late July and works are still ongoing. To date, the contractor has supplied more than 500 creosote treated electricity poles which have been distributed in Bugoma, Luuku, Mutambala, Kasekulo, Mulore, Buswa, to mention but a few locations.” He said the installation process is free of charge which makes it easier for people to access and bring power nearer to their homes and businesses. “After living without power for so long, this is a dream come true for the people of Bugala Island. We believe

that with accessibility to power, the community will develop faster and will create an opportunity to attract investors,” he said. Transport and works minister, Abraham Byandala, who represented the Vice President Edward Sekandi said, “The partnership that the government and KIS is engaged in is a speedy, efficient and cost effective delivery of projects. It ensures value for money for the tax payer through optimal risk transfer and risk management. KIS has made great progress on Bugala Island ever since implementation started.” The Kalangala projects are a PPP venture.

ADVERT

East African Business Week I November 25 - December 1 , 2013

TANZANIA PORTS AUTHORITY

THE UNITED REPUBLIC OF TANZANIA VICE PRESIDENT’S OFFICE

18TH NOVEMBER 2013

TENDER INVITATION

EXPRESSION OF INTEREST TENDER NO. ME 002/2012 -13/DE/C/07

1. This invitation for Bids follows the General Procurement Notice for the year 2012/13 which appeared in the Daily Newspaper of 16th August 2013.

FOR CONSULTANCY SERVICES FOR IMPLEMENTATION OF A BASELINE SURVEY AND DEVELOPMENT OF INDICATORS AND TARGETS.

2. Tanzania Ports Authority (TPA) has set aside funds in its 2013/2014 budget to cover for procurement of the Capital Equipment as follows: S/No

TENDER No.

DESCRIPTION AND QUANTITY OF ITEMS FOR EACH TENDER

(i)

AE/016/2013-14/CTB/G/03

Supply and Commissioning of 2 No Heavy Duty Fire Pumps

(ii)

AE/016/2013-14/CTB/G/07

Supply and Commissioning of. 12 No Terminal Tractors for Dsm Port.

(iii)

AE/016/2013-14/CTB/G/08

Supply and Commissioning of 1 No Bromma Spreader Simulator for Dsm Port.

(iv)

AE/016/2013-14/CTB/G/09

Supply and Commissioning of 1 No 90 tons All Terrain Mobile Crane.

(v)

AE/016/2013-14/CTB/G/10

Supply and Commissioning of 1 No Patrol Boat for Dsm Port.

(vi)

AE/016/2013-14/CTB/G/11

Supply and Commissioning of 1 No Pilot Boat for Dsm Port.

(vii)

AE/016/2013-14/CTB/G/52

Supply and Commissioning of 3 No. RTG Cranes.

3. TPA now invites sealed tenders under International Competitive Bidding procedures specified in the Public Procurement (Goods, Works, Non Consultant Service and Disposal of Public Assets by Tender) Regulations, 2005 – Government Notice No. 97. 4. Bidders are allowed to quote for a single tender or a combination of tender but in each case bidders must quote for all items and quantities specified in each tender. 5. A complete set of the tendering document may be obtained by interested bidders from the Office of DPS Room No.48 on the 2nd floor of TPA HQ Building from 09.00 a.m. to 16.00 p.m. local time from Monday to Friday excluding Public Holidays. AND: Upon payment of a non-refundable fee of TZS 100,000.00. per each tender. Payment should be either by certified cheque, banker’s draft, banker’s cheque or cash. 6. Tanzania Ports Authority will evaluate the tenders and award the contract to the most competitive Bidder. 7. Tenders dully completed in one original plus two copies should be submitted in plain sealed envelopes clearly marked “TENDER FOR SUPPLY AND COMMISSIONING OF …………………………” and addressed to: The Secretary, Central tender Board, Tanzania Ports Authority, P.O. Box 9184, DAR ES SALAAM, TANZANIA Or deposited in the Tender Box which is in Room No. 48 on the 2nd Floor of TPA Headquarters building, One Bandari Road, before the deadline for submission of bids. 8. Tenders will close on 7th January 2014 at 10.00 a.m. local time and will be opened publicly soon thereafter in TPA conference Room 39 on the 2nd floor. Bidders and/or their Representatives who wish to witness the opening are welcome to attend. 9. The tender must be accompanied by a tender security of 3% of the bid price in the form of an unconditional Bank Guarantee. Bid Securing Declaration and Insurance Bonds will not be acceptable. Tenders not accompanied by a tender security will be rejected. 10.Telephone, Telefax and late bids will not be accepted. Bids not received and opened during the public opening ceremony shall not be considered for evaluation irrespective of the circumstances. 11.Note that Tanzania Ports Authority is not obliged to accept the lowest or any Bid. Office of the Director General, Tanzania Ports Authority, P.O. Box 9410, DAR ES SALAAM, TANZANIA. Tel No. +255 022 2134 712 Fax No: +255 022 2124 575, E-mail: dps@tanzaniaports.com

RE-ARDVERTISED Lot 1: Implementation of concrete Adaptation measures to reduce vulnerability of livelihoods and economy of coastal communities of Tanzania – Funded by Adaptation Fund And Lot 2: Developing Core capacity to address Adaptation to Climate Change in Productive Coastal Zones of Tanzania – funded by Least Developed Countries Fund. 1. This Call follows the General Procurement Notice (GPN) that appeared in the Daily news, issue no. of 15 September 2012. 2. The Government of Tanzania has received funds from the Adaptation Fund (AF), and Global Environment Facility through Least Developed Countries Fund (LDCF) and it intends to apply part of the proceeds of this fund to payments under the contract for consultancy services for implementation of a baseline survey and development of indicators and targets of both projects. The consultancy services are expected to be carried out in each of the project site located in Bagamoyo, Rufiji, Pangani, Zanzibar and Dar es salaam. 3. Under this consultancy, the AF which is implemented primarily in the vicinity of Dar es Salaam (Ocean road, city centre and Kigamboni) aims at reducing adverse impacts of sea level rise and floods on coastal infrastructures and settlements, rehabilitating coastal ecosystems and implementing Integrated Coastal Area Management, and increase knowledge of climate impacts and adaptation. The LDCF to be implemented primarily in Pangani, Rufiji, Bagamoyo and Zanzibar aims at increasing local level capacities and knowledge to effectively analyze the threats and potential impacts of climate change, enhancing government and public engagement in climate change adaptation activities and reducing vulnerability to climate change in the coastal zones through adaptation interventions (including rehabilitation of Pangani seawall) and pilot innovations related to adaptation to climate change. 4. The Vice President’s Office [VPO] now calls for eligible consultants or firms to providing the services. The interested consultants must provide information indicating that they are qualified to perform the services (CV, description of similar assignments performed, experience in similar conditions and assignments, availability of appropriate skills among staffs etc. Consultants may associate to enhance their qualifications. 5. Submissions must be delivered by email in pdf format (E-mail: psk@vpo.go.tz) or sealed envelopes by hand or by courier to the Secretary, Ministerial Tender Board, Vice President’s Office, Luthuli street, First floor room no. FF8, wing by 10:00 hours, local time on 4TH December, 2013. The outer envelope must clearly be marked “IMPLEMENTATION OF A BASELINE SURVEY AND DEVELOPMENT OF INDICATORS AND TARGETS NOT TO BE OPENED BEFORE 4TH DECEMBER 2013.” 6. The short listing and final selection of consultants will be carried out in accordance with procedures set out in the Public Procurement Act No. 21 of 2004; Selection and Employment of Consultants regulations. 7. Interested consultants may obtain further information from 08:30 to 15:30 hour’s local time (Monday to Friday) exclusive of public holidays in the office of the Secretary of the Ministerial Tender Board. The Permanent Secretary, Vice President’s Office P. O. Box 5380 Dar-es-salaam, E-mail: psk@vpo.go.tz Tel: 255 22 2136848 Physical Address Luthuli Street, Vice President’s Office First floor room no: FF8.

TENDERS

East African Business Week I November 25-December 1, 2013

NATIONAL BUREAU OF STATISTICS

Bid No. NBS/AE/052/2013-2014/TSMP/NC/36 for Printing Agriculture Documents

Invitation for Bids 1. The Government of Tanzania has received a credit from the International Development Association toward the cost of the Tanzania Statistical Master Plan Project (TSMP), and it intends to apply part of the proceeds of this credit to payments under the agreement(s) resulting from this IFB: Printing Documents 2. The National Bureau of Statistics has received/has applied for/intends to apply for a credit from the International Development Association towards the cost of Tanzania statistical Master Plan Project, and it intends to apply part of the proceeds of this credit to cover eligible payments under the contract for Printing Agriculture 3. The National Bureau of Statistics now invites sealed bids from eligible Service Providers of printing service as follows S/No

Activity