Vol ix issue xviii by East African Business Week

SINGAPORE SINGAPORE

One man few will ever forget

20-year milestone for NMS

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VOL. 9, ISSUE 18 DECEMBER 9-15, 2013

UNVEILING OPPORTUNITIES

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

$1b rural power project for Uganda BY EMMA ONYANGO nKAMPALA, UGANDA – When the Ministry of Energy and Mineral Development issued the Rural Electrification Strategy and Plan (RESP) in 2001, the goal was to increase rural electrification coverage from 1% to 10% in 2012. However, this goal was not realized as the Rural Electrification Agency (REA) managed to achieve only 7% rural electrification coverage. This was partly because of the delay in setting up REA (in 2003) with the agency embarking on its first project in 2006. Now REA has embarked on a 10 year $1b plan aimed at increasing rural access to electricity from the current 7% to 26% in 2022. Speaking to a Stakeholders’ Workshop to celebrate REA’s 10 years of existence in Kampala last week, Medard Muganzi, the Manager Energy for Rural Transformation at ERA said that the major reason for failure to achieve the 10% target in the first RESP was because of the Private Sector’s inability to invest in rural electrification coupled with the low financial resources available. He however noted that the agency had learnt important lessons over the TO PAGE 2

nNAIROBI, KENYA-Kenya has finally decided to pull out of its refinery deal with Essar Energy in what will define the official closure of the trouble-ridden Mombasa facility. This in effect means that the country will operate without a refinery which is currently the only one in the

nADDIS ABABA, Ethiopia--Saudi billionaire Mohammed Al-Amoudi, the biggest private investor in Ethiopia, plans to build two more cement factories in the Horn of Africa nation amid an improving investment environment, According to Bloomberg, The plants will add to the $351 million facility Al-Amoudi’s MIDROC Derba Cement opened in December 2011. Derba Group, an amalgam of three Ethiopian companies owned by Al-Amoudi, plans to invest $3.4 billion in Ethiopia over the next five years, the company said in March 2012. “Africa’s opportunity lies in involvement of private sector working with stable and responsible government like Ethiopia,” Al-Amoudi said in a speech at the African High-Growth Markets Summit in Addis Ababa. Continuing improvements in the business climate will probably to lead TO PAGE 2

Rwanda eyes $400m from minerals

REA Executive Director, Godfrey Turyahikayo, (right) leads invited guests and officials to cut the cake during the function last week. Photo by Emma Onyango

nKIGALI, Rwanda-- Rwanda expects to earn $400 million from its mineral resources by 2017, a senior government official said last week According to Xinhua, at a meeting to mark the International Mines Day, Evode Imena, Rwanda's minister of state for natural resources in charge of mining, said the country was on the right track to achieve the set TO PAGE 2

Kenya moves towards Essar refinery closure BY HUMPHREY LILOBA

Saudi investor plans Ethiopia cement plants

East African region. It will also officially make Kenya a net importer of refined oil. The withdrawal was announced by Kenya’s Energy and Petroleum Cabinet Secretary Davis Chirchir. In an interview with a local radio station, Chirchir confirmed that the government had indeed started the proTO PAGE 2

PTA Bank ponders return to Bujumbura

Tanzania to map its phosphate deposits

BY CLAUDINE NIZIGIYIMANA

BY ANDREW ZABLON

nBUJUMBURA, Burundi--Nineteen years after the transfer of PTA Bank headquarters to Nairobi in Kenya, there is talk of returning the bank back to Bujumbura, Burundi. Admassu Tadesse, the Chairman of PTA Bank, said what remains, is to redevelop the original building to become the centre of a future financial hub. Insecurity forced the move to Nairobi He was in talks with the Burundi Second Vice-

nMWANZA, Tanzania-- The Ministry of Energy and Minerals is going to map Tanzania’s phosphate deposits. According to the Minister, Prof Sospeter Muhongo, a directive concerning the exercise has already been issued to the ministry’s mineral experts. Once complete, it would allow the Tanzania State Mining Corporation (STAMICO) to apply for the relevant mineral rights. Prof. Muhongo told East African Business Week Tanzania is sitting on huge deposits of phosphates while some

TO PAGE 2

NEWS

East African Business Week I December 9-15, 2013

Kenya moves towards coast refinery closure

FROM PAGE 1

cess of official severing links with Essar and converting the Kipevu refinery into an oil storage facility. The two have been joint owners of the Kenya Petroleum Refineries Limited (KPRL). However the government and Essar have found it difficult to raise about $1 billion needed to revamp the 50 year old refinery. Not long ago, Essar offered to sell its 50% share back to the government. Oil industry players have in the recent times called on the government to close down the facility claiming that it is not tenable. They say the cost of refining oil at the facility is almost triple that of importing fully refined products. According to industry sources, the closure is expected to substantially reduce the cost of oil in the country and by extension, the region. The energy industry regulator in April recommended

products at the facility. Kenya’s Energy Regulatory Authority (ERC) is also on record as recommending the closure of the facility. In severing links with Es-

sar, the government through the national Treasury will need to take up the 50% stake currently controlled by the Indian conglomerate.

$1b rural power project for Uganda FROM PAGE 1 last decade and that the new RESP (2013 – 2022) will achieve the intended goal of increasing rural electrification coverage from 7% to 26% as a result. “We now know that there are about 1.5 million connections needed; 1.3 million on grid and the 200,000 on solar PV so as to increase rural access to electricity. To

achieve that, we have learnt that there is a need for public sector-led as opposed to private sector-led investment in rural electrification. This is because the private sector mainly looks at a financial return. “Government on the other hand funds the project with the knowledge that there is going to be economic development,” Muganzi stated. He added that invest-

ment in rural electrification does not bring in immediate financial returns and that even the few private firms that are involved are finding it difficult to break given that consumers in these areas are very few. “Private sector and cooperatives of rural concessions in Pader, Kibaale, Bundibugyo, Kasese and Kanungu are all struggling and run the

FROM PAGE 1 President, Gervais Rufyikiri recently. Tadesse was Bujumbura to attend the meeting of the Board of COMESA (Common Market for Eastern and Southern Africa). The two focused on the financial situation of the bank, the return of the bank's headquarters to Bujumbura and the PTA Bank areas of intervention. Tadesse said the bank is doing very well financially and that its intervention is centered especially on the financing of commercial and development activities. However there are also special funds for social activities in favour of children and

other vulnerable categories. Second Vice President Rufyikiri reassured Tadesse that Burundi was now stable. He also briefed Tadesse on the sectors which would welcome investment, including agriculture, tourism, hospitals and health care centres, food processing industry, transport infrastructures and energy. Second Vice President Rukyikiri invited investors to come to Burundi to take advantage of the PTA Bank funding once its headquarters returned to Bujumbura. He offered spoke of the incentives provided by the government to encourage business in Burundi.

Rwanda expecting $400m from minerals

THE END: The Mombasa refinery is the only one in East Africa, that KPRL, which is the only oil refinery in East Africa, be used to handle imported refined petroleum products, given that it was proving to be more costly to refine

PTA Bank ponders return to Bujumbura

risk of collapse due to lack of connectivity viability. So in this second RESP, government will take the lead in investment and then the private sector takes over the management” Muganzi also notes that for rural electrification to be viable, there is need to empower the rural communities so that other services are brought nearer to them.

Tanzania to map its phosphate deposits FROM PAGE 1 countries in Africa like Algeria, are busy expanding their phosphate mines due to big international market demand. In general, phosphates are substances of mineral origin such as ceramics, metals, synthetic plastics, as well as water.Phosphates, which contain phosphorus, are essential nutrients that contribute to the growth and metabolic reactions of all animals and plants. The quantity of phosphorus can either increase or limit growth. Prof Muhongo said STAMICO has about seven mining companies interested in phosphate mining with capital investment of about $5 billion without mentioning such companies. The known rich areas in phosphate deposits lies to the Southwestern Tanzania along the Panda Hills, about 25 kilometres from Mbeya township to the South of Tanzania having a reserves of about 370 million tonnes of phosphate with Serengeti plains being said to have huge phosphate carbonate. The Nguella Carbonate in Chunya district to the south of Tanzania is also is another area with huge phosphate deposits with Nachendezwaya in Ileje Mbeya near Songwe river being said to have 5.1 million tonnes deposits of phosphate.

FROM PAGE 1

target. "We have embarked on primary exploration of minerals which would attract competitive investors to invest in our mining industry," he said. There are more than 548 active mining sites in Rwanda producing between 600 and 700 tonnes of minerals on a monthly basis, according to the Ministry of Natural Resources. "In the future our country

will become a mining service hub in the region. We are confident to hit a target of $400 million in the next three years and it is going to be possible,” the minister said. Rwanda's mining sector last year earned $136.6 million dollars from mineral trading. Imena said Rwanda's mining industry tax rate stands at 1 percent and the sector's growth at 10 percent and that it is expected to grow to 40% by 2018.

Saudi investor plans Ethiopia cement plants FROM PAGE 1 to a “great” increase in investment, he said, without elaborating. Ethiopian-born Al-Amoudi ranks as the world’s 134th richest person, with a net worth estimated at $8.7 billion, according to the Bloomberg Billionaires Index. Ethiopia’s economy is projected to expand 7.5 percent next year, compared with an estimated 7 percent this year, the International Monetary Fund said in its World Economic Outlook in October. Three farming companies owned by Al-Amoudi developed 62,000 hectares (153,205 acres) of land in Ethiopia, al-Amoudi said. Elfora Agro-Industries, Horizon Plantations Ethiopia and Saudi Star Agricultural Development will have prepared an additional 160,000 hectares within three years’ time. “We are focusing on

agriculture and industry,” he said. Horizon bought three agricultural projects from Ethiopia’s government for $59.4 million in April. The company plans to invest 400 million Ethiopian birr ($21 million) over the next two years in Upper Awash Agro Industry Enterprise, Gojeb Agricultural Development Enterprise and Coffee Processing and Warehouse Enterprise. Saudi Star, a Derba company, has been unable to finance the completion of an irrigation canal at its 10,000-hectare rice project in the western Gambella region, the company said last month. “There were certain problems which we are trying to solve,” al-Amoudi said. “Now we are getting in deeply and I’m going to follow it up myself.” Al-Amoudi also announced that an “agreement has been reached” with London-based Hikma Pharmaceuticals Plc (HIK).

NEWS

East African Business Week I December 9 - 15, 2013

New visa will ease travel

Tanzania surges ahead BY JOHN SAMBO

nDAR ES SALAAM, Tanzania--Today, mainland Tanzania celebrates its independence anniversary. Tanzania’s economy has been growing steadily for the past 10 years. In 2012, the economy expanded by 6.9%, which is close to its more recent historical average. Most top business leaders believe that the economy is performing better in 2013 than in 2012 and are positive about the prospects for 2014, as revealed by a recent World Bank/KPMG survey. The rapid and stable growth of the Tanzania’s economy over the past few years, in spite of turbulence in world and regional markets, is explained by three factors. First, five crucial sectors have been expanding rapidly, with these five sectors driving almost 60% of growth in gross domestic product (GDP) since 2008. These sectors include the communications sector, whose contribution to GDP has doubled since 2008. The growth of this sector has transformed how Tanzanians trade and do business by facilitating a revolution in banking. With the rapid spread of mobile banking services, an estimated 45% of Tanzanian adults use their phone to receive and transfer money, with the cumulative value of these transfers reaching an estimated $1.4 billion per month. Second, economic growth has been fueled by a steady increase in domestic demand, with this increased demand resulting from the rapid rate of population growth. With its current, constant rate of population growth of 2.7% per year, Tanzania’s population is doubling every 25 years. Third, Tanzania’s

TALKS: President Jakaya Kikwete meets with a potential investor in Colombo recently. economic performance has been fairly independent from net external trade, which is explained by the country’s relative isolation from world markets. Since early 2012, inflation has declined, dropping to 9.8% in March 2013. Lower food prices and prudent monetary policy have

been the main contributors to this welcome development. However, this inflation rate is still double that of Uganda’s and Kenya’s. Furthermore, local food prices are significantly higher in Tanzania than in a sample of comparable developing countries.

nKAMPALA, Uganda - The East Africa Community Single Tourist Visa will ease travel and encourage tourists to visit other regional destinations without incoveniences. Herbert Byaruhanga the President of the Uganda Tourism Association (UTA) said the single visa adds value to the whole EA region as a destination and has a positive impact on the GDP. “If we are very strategic we are likely to have more experts staying longer in the region. And, if we use effective strategic marketing tools, we are likely to attract retired travellers who will want to spend more days in East Africa because they have the time and can enjoy being around,” he said. He said the visa will help the Gorilla permit do better if it is used strategically. “All those visitors that always stop in Kenya will come, but we need tourism marketers to do this,” he said.

20 year milestone for NMS in Uganda BY BAZ WAISWA nKAMPALA, UGANDA - National Medical Stores (NMS), a Government body entrusted with distributing government medical supplies to health centers within the country, has been told to improve on their service delivery despite remarkable success in the last two decades. The advice was made by Health Minister Ruhakana Rugunda during an event to celebrate twenty years of NMS in Kampala. The minister also urged NMS to buy from local drugs manufacturers. The organization last week celebrated 20years of incredible success in which they have recorded a number of achievements most notable being increased supply of drugs in upcountry health centers. National Medical Stores was established in 1993 as an act of Parliament to procure, store and distribute essential medicines and health supplies, primarily to government health facilities in Uganda. It is based at Entebbe , 40 kilometres from Kampala. Moses Kamabare, the General Manager of NMS speaking during a dinner to mark 20 years said the body has undertaken fundamental reforms. These reforms include publishing a national medicines and medical supplies delivery schedule to ensure proper planning. This, according to Kamabare has promoted accountability and helps to ensure government hospitals and health facilities never run out of drugs and other medical supplies throughout the year. Kamabare said they stopped dealing with the private sector and concen-

“

National Medical Stores has set targets of having a bigger storage space with modern equipment. They are also expanding with a new office soon opening in Arua and another in Karamoja

CELEBRATION: Health minister Dr. Rugunda (R) signs the NMS magazine as NMS chief Kamabare looks on. trated on government health facilities to ensure steady and predictable supplies. Government through NMS also started labeling the drugs and other medical supplies to stop theft of the supplies. “There was a huge problem of stealing government drugs by health officials who used to sell the stolen medicines on the local market. This left government hospitals without drugs,” Kamabare revealed. “We have now dealt with that

problem. With embossment of drugs and medicines the health workers and the public are put on notice that such medicines and medical supplies are not for sale,” Kamabare added. The other major reform has been the creation of a new innovative last line delivery system taking the medicines beyond the district health offices up to the individual health facilities. In this period, MNS has had challenges which included lack of health workers, bad roads especially upcountry, delayed placing of delivery

orders and cumbersome procurement process. These have been a hindrance to NMS execution of their mandate. Kamabare told a congregation at the celebration that NMS is looking at embracing ICT measure to boost their operations. “For example we want someone to be able to make an order online without necessary leaving their office,” he said. The Organisation has set targets of having a bigger storage space with modern equipment to serve the

country better. They are also expanding with a new office soon opening in Arua. Another will be opened in Karamoja region next financial year to increase their regional office from current seven. The board chairman Dr. Philip Bazaale Byruhanga reiterated that NMS will consolidate the current achievements in terms of health supplies to all public health facilities in the country.

INFRASTRUCTURE

East African Business Week I December 9 - 15, 2013

Japanese to start in January on bridge

BRIEFLY Burundi seeks experts for power projects nBUJUMBURA -- Burundi’s water and electric utility has invited expressions of interest from consultants to supervise tendering and construction of the 31.5MW Jiji and 16.5-MW Mulembwe hydroelectric projects and a related transmission line in Burundi’s Bururi Province. The deadline is December 24. Regie de Production et de Distribution d’Eau et d’Electricite (REGIDESO) recruited consultants in August to form a dam safety panel and a social and environmental assessment panel.

Kikwete promises cash for more Tz roads nDAR ES SALAAM -- President Jakaya Kikwete has said: “My government will continue to build more roads. If we think we can develop our country without linking regions to facilitate transport we are doomed.” He was recently launching projects during a working tour of the new Simiyu Region. Kikwete also laid the foundation stone for the construction of the BariadiLamadi road at Old Maswa area in Bariadi District. China Communication Construction is handling a major part of the construction.

Safricom bid for sports centre runs aground nNAIROBI-- Safaricom, Kenya’s top tax payer and one of the most profitable compnaies, run into trouble over a deal to brand, the Moi International Sports Complex at Kasarani. The telecom firm is offering Ksh55 million (just over $600,000) to rename it the Safaricom Stadium Kasarani-Home of Heroes. Adan Keynan (Eldas MP), said: “Any attempt to rewrite or erase the historical contribution of great leaders like Mzee Moi, who handed over power peacefully will be unfair. His reign must be applauded and respected.”

BY SAM NABWIISO

WASH OUT: Many upcountry roads can be tricky to use, particularly during the rainy season.

IFAD to pay for road works in rural Uganda BY SAMUEL NABWIISO nKAMPALA, Uganda---The Ministry of Local Government through the District Livelihood Support programme (DLSP) is overseeing construction or rehabilitation of 776.6 kilometres of roads in 13 districts across the country. According to the Permanent Secretary, Patrick Mutabwire, these projects are being financed by a loan from the Rome-based International Fund for Agriculture Development (IFAD). Work is expected to kick off in 2014 to fix these community access roads. ‘The Government of Uganda has received a loan from IFAD to co-finance the District Livelihood Support Promramme in the 13 District in various parts of Uganda parts of this proceeds of the loan is to be utilized for the Rehabilitation of community Access roads in those parts of the country,’ Mutabwire said in statement He said the government has

Districts to be covered

March 2014

Tendering process ends

776 kilometres

Total length of works

opened the bidding process for those companies wishing to vie for the tenders to take over the construction tenders. He said the tendering process is scheduled to end by the beginning of March 2014 ‘We have given the intending bidders enough period of time from December to March 5th when the ministry will be signing the contracting with the successful bidders to take over the tenders for the construction of the Community Access roads in those selected districts,’ he stated. The districts to benefit from the IFAD loan include Bundibugyo,

Bugiri, Busia, Kamwenge, Bullisa Kyenjonjo, Luwero, Masindi, Mayuge, Nakaseke, Oyam and Yumbe The government has been implementing programmes that are aimed at improving infrastructure in several districts. The main objective is to empower rural communities. By improving community access roads, this will enable farmers in those districts to market their agricultural products more easily. Farmers across the country often experience the problem of access to markets, because of the impassable roads. Roads, especially in those places with hilly terrain or in the mountainous regions of Budibungyo in Western Uganda, can prove tricky during the rainy season. During the financial year 2011/ 2012 the local government ministry managed to rehabilitate or construct 313 kms of community access roads. However the next phase will mark the biggest part of the project.

n KAMPALA, Uganda----The government has announced that construction of the new bridge across River Nile at Jinja will start in January 2014. The State Minister of Works Engineer, John Byabagambi officiated at the signing of contracts between Uganda National Roads Authority and Zenitaka Corporation of Japan and Hyundai Engineering and Construction Company from South Korea last week. “The signing of this contractual agreement is a good gesture to the government of Uganda when it comes to infrastructure development. The new bridge will solve the transport challenges in the East African community countries because the JinjaKampala highway is very vital to the business communities in the members states” he said. The new bridge is expected to cost about $130 million with most of funding being provided by the Japanese government. Four years are marked until completion. According to Eng. Kimeze Ssebugga, the acting UNRA Executive Director, the new bridge will ease traffic on the aging Nalubaale Bridge that connects Uganda to the east and the coast. He said the new bridge will comprise of a dual carriageway. It will be a single –plane cable stay bridge. Yasutaka Honda. the General Manager of Zenitaka Corporation said their company will do a quality job. He said they will also make sure that construction is completed within the stipulated period of four years. The life span of the new bridge is expected to be 100 years.

Chinese win contracts worth $150m for Tz roads BY KENAN KALAGHO

DONE DEAL: All smiles after contracts are signed.

nDAR ES SALAAM, Tanzania-Three Chinese firms have won tenders for several government road projects. The roads are part of trunk route between Egypt and South Africa. Speaking in Dar es Salaam last week the Minister for Works Dr John Magufuli said Tanzanians travelling to Egypt and South Africa will soon be able to drive on a tarmac road between Mayamaya and Mela after construction in 36 months. The projects involve the construction of Mayamaya to Mela at a distance of 99.35 kilometres, Mela to Bonga at a distance of 88.8 km; Mangaka to Mtambas-

wala that involves 65.5 kms. Total cost is about Tsh256 billion ($158,958,080). The contracts were signed by Tanroads Chief Executive Officer Eng. Patrick Mfugale on behalf of the government and three Chinese firms, China Henan International Cooperation Company Limited (CHICO), China Railway Seventh Group Company Limited and the Sichuan Road and Bridge (Group) Corporation Limited. Dr Magufuli said Crown TECH-consult Limited and the German based HP Gauff Inginieure Gmbh and KG-JBG are providing consultation services. He said the government is implementing its road sector support project 2 (RSSP2) at a cost of Tsh539 billion

($334,681,270) of which 65.8% of the funds are from the African Development Bank, 29.2% is sourced from the Japan International Cooperation Agency and the remaining five percent is from internal sources. He asked the Chinese firms to make sure that they commit themselves in implementing such road projects which would to a greater extent help in transforming the economy of the country. Late last month the President Tanzania Jakaya Kikwete congratulated his government for the zeal shown in undertaking the different road construction projects. He said such projects will help to promote economic growth.

FINANCE

East African Business Week I December 9 - 15, 2013

Ugandan bank to become regional

BRIEFLY Pesa Mob becomes latest innovation nNAIROBI Central Bank of Kenya Chief Executive Officer, Professor Njuguna Ndungu, has praised the innovations in the banking industry. He was officiating at the launch of Pesa Mob, a new product from Safaricom and Family Bank. The service involves a system in which is an inter-linked scheme of transacting cash from banks to mobile phones and vice-versa. Ndungu said Pesa Mob will not only make money transfers much easier, but will also help in adoption of technology.

Stanbic Uganda starts smart banking nKAMPALA Stanbic Bank, Uganda’s leading bank in terms of assets, recently launched a Smart Banking Application that will help customers access conveniently their accounts via a smart phone. The application called the Smart Banking App is available on all Android devices according to Benoni Katende the Manager Electronic Channels at Stanbic Bank Uganda. Among the highlights include the ability to view 30-day, 60-day and 90-days statementsstatements,

Urwego gets new banking partner nKIGALI Urwego Opportunity Bank (UOB), which delivers financial services to people in underserved areas, is partnering with the Christ-centered HOPE International in an effort to boost its customer base. Presently, Urwego serves more than 180,000 clients in all 30 districts of Rwanda through 44 business outlets. Over 90% of Rwandans identify themselves as Christians and have embraced mobile banking technology. The country ranks as the eighth fastest-growing mobile money economies in the world

BY PAUL TENTENA

DEAL: Acting Energy regulator, Frederick Nyang with Aeolus’s, Jenny Fletcher. COURTESY PHOTO

Kenya gets funding for Kinangop power BY HUMPREY LILOBA nNAIROBI, Kenya--The African Infrastructure Investment Fund 2 (“AIIF2”) and Norfund, the Norwegian Investment Fund for Developing Countries, achieved financial close of the 60.8MW Kinangop Wind Park project in Kenya. Kinangop Wind Park is the first independent large-scale wind farm in East Africa and a landmark transaction for both the African power sector and the project finance market. The $150 million project comprises the construction, financing, operation and maintenance of a 60.8MW greenfield wind park located in the Kinangop region, about 60km northwest of Nairobi. AIIF2, which is advised by African Infrastructure Investment Managers (AIIM), a joint venture between the Macquarie Group and the Old Mutual Investment Group, is a majority owner in the project company, Kinangop Wind Park Lim-

$150 million

Total costs for Kinangop

60MW

Expected power output

2015

Commercial operations

ited (“KWP”), while Norfund owns the remaining shares. The two investors teamed up with project developers, Aeolus Kenya Limited, in 2012 to support them in bringing the project to financial close. Through their investment in KWP, AIIF2 and Norfund will promote sustainable and environmentally friendly electricity generation in Kenya. The mandated lead for the arrangement of the project debt is CFC Stanbic, the Kenyan presence of Standard Bank of South Africa, which has also underwritten the full debt requirements of the Project.

The Project will be built by Spanish construction company, Iberdrola Ingenieria y Construccion, which will install 38 General Electric 1.6MW wind turbines. KWP will sell electricity to the Kenya Power and Lighting Company, Kenya’s electricity distribution company, under a long-term power purchase agreement. The Project will start feeding electricity into the grid in the first quarter of 2015 and full commercial operations are expected to commence in July 2015. According to AIIM’s Regional Director for East Africa, Kameel Virjee, AIIF2 reached final close in September 2011 with total commitments of $500 million. “AIIF2 is designed to invest equity in a diversified infrastructure and infrastructure related assets portfolio, primarily within Sub-Saharan Africa,” he explains. “AIIF2 recognises that effective infrastructure is vital for economic growth and development of the African continent,” he said.

nKAMPALA, UGANDATropical Bank, a commercial Bank with 99.7% shareholding of the Libyan government has said it will soon set foot in the four other East African partner states as it aims at reaching out to a larger population. The bank Chairman Gerald Ssendaula said they will first open three new branches of Kaliro, Mbale and Mbarara in Uganda before rolling out to four other partner states. “Our target now is to open up branches in the four other partner states of Kenya, Rwanda, Burundi and Tanzania. We shall go to South Sudan if they are admitted into the EAC,” said Ssendaula at the opening of their tenth branch on Muganzirwazza plaza in Katwe a Kampala suburb. Ssendaula called upon the neighborhood to use the banking facilities and avoid the tendencies of keeping money under their mattresses or in banana plantations. “The facilities are here. People of Natete, Kibuye, Ndeeba, Najjanankumbi, Natete, Katwe and Makindye should open up accounts and use them. We have spacious parking,” he said. As of December 2012, Tropical Bank was a smallsized financial services provider in Uganda with total bank assets valued at about $84 million (UGX 215 billion), with shareholders’ equity of over US$30 million (UGX:60 billion). The bank has also maneuvered many waves, including the unrest that led to the ouster and killing of the late Libyan leader Muammar Gadaffi in 2011.

Mobile money transfers hit $640m BY PAUL TENTENA

IMPROVEMENT: Kasekende said more innovations needed.

nKAMPALA, Uganda --Between January to November this year, Uganda mobile money transfers had hit Ush1.6 trillion ($640m) according to the Deputy Bank of Uganda Governor Dr. Louis Kasekende. He said mobile money subscribers have also shot up to 12 million, which number is far above account holders (customers) in differrent banks. “Commercial banking needs a lot of improvement and awareness creation. As we talk, mobile money transfers have reached Ush1.6trillion and the subscribers are above 12 million. customers.

“The ATM numbers are only 786 and a branch network of about 900 branches,” said Kasekende while speaking during 40years celebrations of Tropical bank in Uganda. Kasekende said after the amendment of the banking and financial institutions act, the country will introduce asset and Islamic banking. “At BOU we’re carrying out a number of initiatives like the going live of the East African Cross Border Payment System (EPS) for Kenya, Uganda and Tanzania to ease cross border trade. Burundi and Rwanda will join the system at a later date,” said Kasekende. Tropical Bank marked 40 years of existence in Uganda. The bank started in 1973 with a shareholding of 99.7%

of the Libyan government and 0.3% shares by the government of Uganda through the Ministry of Finance. It has an asset base of over Ush250b, with a branch network of 10 branches. It is one of the most capitalized banks in Uganda, with a capital base of Ush46b. Uganda’s Vice President Edward Kiwanuka Ssekandi, thanked the bank for partnering with the government in the transformation of its populace through loans to fund the agricultural sector. Tropical Bank Managing Director Osama Remi Serrag, thank BOU for instituting measures that ensured the continuity of the bank when the United Nations security council instituted sanctions against Iran.

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More internet use can unleash wealth

n a recent report, McKinsey Global Institute believes that if Internet use spreads out in Africa at the rate mobile phones did in the early 2000s, the continent stands to add as much as $300 billion to its economic growth by 2025. That figure represents about a sixth of sub-Sahara’s Africa present total GDP of an estimated $2 trillion. In comparison, the United States GDP is $15 trillion. According to Mckinsey, with an Internet penetration of just 16%, Africa has long been held back by infrastructure challenges tied to the continent’s poverty, vast area and largely rural population. Its average ‘iGDP’ — the Internet sector’s contribution to the gross domestic product — is the lowest of all continents at 1.1 percent. However in the McKinsey’s study ‘Lions Go Digital’ it is quite possible for a veritable transformation of the African economy ‘if the Internet achieves the same kind of scale and impact as the spread of mobile phones in Africa.’ Kenya shows that these gains are real despite the higher levels of taxation being imposed on using mobile phones. The report states that the Internet contributed 2.9 percent to Kenya’s GDP. GSMA, the mobile phone network providers embrella body say, while sub-Saharan Africa has posted the fastest growth in mobile subscribers, mobile penetration is the lowest globally. It is true mobile penetration in Africa hit 80% in the first quarter of this year and according to GSMA it is still growing at 4.2 percent annually. That’s faster than anywhere else in the world. This means that today, more than eight in 10 Africans have a mobile phone, but when quoting these figures it is important to remember at what base Africa took off from. On the other hand, the average revenue per user for telecom companies has dropped 80% between 2001 and 2011 mainly due to higher taxation levels. Buying a phone is no longer the problem. The problem now is the increasing cost of using it. Being understandably strapped for cash in efforts to implement development plans, many governments view telecom companies as easy prey in terms of taxation. Yet the returns from the services they provide have proven to be very beneficial to the overall growth of an economy. GSMA forecasts the region’s mobile users will reach 346 million by 2017. While sub-Saharan Africa has posted the fastest growth in mobile subscribers, mobile penetration is the lowest globally, GSMA said. As companies seek to reach the remaining two-thirds of people in the region who don’t have mobile access, they will have to overcome several hurdles including making handsets more affordable and working with governments on policy. Other challenges include high tax rates in some countries on mobile usage and poor infrastructure such as electricity, making it costly to run towers. Sharing towers is becoming the norm. Mobile expansion could have big benefits for subSaharan Africa’s economic growth, GSMA said in its report. The mobile industry accounted for 6.3% of the region’s gross domestic product in 2012 and is likely to account for 6.7% this year. GSMA says that will grow to 8.2% by 2020. Demand for Internet access is rising as more people experience its benefits. But just as many don’t have access. Phones and especially the smart versions, are now multi-purpose tools that have cut the cost of doing business in several spheres. Governments should take note.

EDITORIAL

East African Business Week I December 9 - 15, 2013

Kigali aims for ICT driven business city BY AGNES BATETA nKIGALI, Rwanda--Rwanda’s capital, Kigali is currently undergoing a rapid infrastructure change that will eventually see it becoming an ICT-driven city for the benefit of all types of business interests. “We will use the latest technologies to see that our city is developed into a better business centre like other cities in developed countries,” Fidel Ndayisabye, the Mayor of Kigali City said in a meeting held last week at the administrative headquarters. With this ambition in mind, city authorities are involved in implementing an improvement plan for service delivery to ease business activity. Reforms are expected to be implemented in a time period of about two weeks. Lillian Mupende, the Director of the One Stop Centre and Urban Planning said, “There are a few developed reforms we want to start with. These include introduction of a toll-free line which will help connect stakeholders with the One Stop Centre we have. “Removing fees on land titles which will help create more room for free leasehold titles, improve on the process of acquiring land occupancy and getting construction permits. And still we want to reduce on the number of days spent for someone to get such construction permits from the 30 days we are at now to 21 days,” she said. Mupende said the annual average fee on land titles was at Rwf 70,000 (about $100) but this was going to reduce to a more appropriate amount to enable people get land and be able to develop it faster. “We again want to save costs and time, and therefore create a more needed environment for carrying out business in Kigali. This is why we will still introduce electronic payments which will help people be able to pay for such construction permits easily,” she said. Mayor Ndayisabye requested that engineers and other stakeholders help in suggesting new good ideas for developing the capital and lifting it to the status of a world class city. Kigali is already well on the road of promoting a cashless society and the government has been active in supporting these innovations. The city, which is nestled among the surrounding lush hills, is widely considered the cleanest in East Africa. Polythene bags were banned in Rwanda. According to the latest World Bank Doing Business survey, in the construction category, Rwanda improved from the 122 position the previous year to 85 out of 189 countries. Other different reforms implemented so far have seen Rwanda again reduce from the 13 procedure in dealing with construction permits she was on to four procedures. To get a residential construction permit now, one has to have Rwf 20.000- Rwf 60.000 from the Rwf 100.000 and for commercial buildings it is now Rwf 20.000-

ARTISTIC IMPRESSION: Kigali is to be split into three main distinct districts. Rwf 60.000 from the Rwf 625.000. “With such a reduction most Rwandans will be able to get land, develop

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Masterplan in place to turn drawings into reality

it and therefore help the city develop”, noted Mupende. Different stakeholder welcomed in such new reforms saying that these were going act as mainly cost saving strategies in the construction industry. “These are going to address the

different challenges in the construction industry,” Eng. Dismas Nkubana, who is the chairman of the engineers council in the CoK said. Others said that such reforms were brought in on time as was agreed in the city laid out targets in the developed Master Plan. Different stakeholders here therefore promised to work well with the CoK leadership which will help implement the different projects needed in the construction industry. According to the Master Plan there are clear strategies for every city District. Nyarugenge will be ‘The Financial Hub’, Gasabo ‘The Administrative Centre’ and Kicukiro ‘The Knowledge Hub’.

LETTERS & PERSPECTIVE East African Business Week I December 9- 15, 2013

Rwanda’s SMEs will do needful

PERSPECTIVE

Image of the week

African cities to explode

Editor, With the new strategies being developed to support the Small and Medium Enterprises (SMEs), I agree with the governmnet that this will help create a strong future middle class population. Presently Rwanda has a high number of unemployed people, but with this emphasis put on SMEs, this problem can be solved. Rwanda is targeting mainly the young people, who drop out of school and here is why programmes like the ‘Hanga Umurimo’, are very important to taming unemploment. SME clusters are being developed to cater for the youth and women. My only concern is that the government constantly monitors these policies to ensure that they are effective.

GRIEF: The world was plunged into mourning after the announcement that the iconic freedom fighter and former South African President, Nelson Mandela, died peacefully on the night of Thursday in his Johannesburg home.

Alphonse Higiro Kigali, Rwanda

Signing of Monetary Union Protocol puts EAC ahead Editor, All those who had doomsday thoughts about whether or not the five presidents would sign the common currency agreement must be wondering what hit them! All five signed and it is a great achievement. I congratulate our Presidents. Granted the technical aspects will take sometime to work out. But the stated intentions put the Community on a much higher plane of development than other regions in Africa. Those who wish us well should be

happy this step has been taken. A leading advantage with a common currency is that helps to cement economic stability by making the business field more even. Actual costs can be determined without going through the bother of calculating exchange rates and so on. Businesses, involved in commercial transactions in different member states, would no longer have to face administrative costs of accounting for the changes of currencies, plus the time involved. Another advantage with the common

currency is that it will attract far more investment across the region, both domestic and foreign. Traveling in EAC will become so much easier and relaxing without changing money at the borders. There are bound to be many hurdles before the region actually uses a common currency. However once the commitment is genuine there is no reason for the EAC to fail. Harold Nsubuga Kampala, Uganda

Introducting single visa will help to boost EA tourism Editor, Introduction of the single tourist visa being proposed for the East African Community come January 2014, should help bring in more tourists. I suggest that those that have any fears should reconsider our options. The big picture does not favour us in terms of drumming up bigger tourist numbers unless we make it easier for them to come. There are many other places they can go to with less inconvenience. Transaction costs and bureaucracy is the biggest frustration for tourists in foreign countries. In announcing that

the EAC plans to have common currency in 10 years is also a great sign that we are heading in the right direction. However we can take advantage of the single visa issue now. Imagine traveling across this relatively large region on one visa and seeing a wide variety of scenery and wildlife. The advantage we would have over other destinations would be immense and only equaled by perhaps, South Africa. Let us grasp this opportunity. Len Mwangi Nairobi, Kenya

New railway line reflects major break from the past Editor, I would like to remind East Africans the great significance of what President Uhuru Kenyatta did when he officially launched the $14 billion Standard Gauge railway recently. This is the first real mega in-

frastructure being developed in the region since the TAZARA was built 40 years ago. It is also a project that has the potential to drastically change the lives of millions for the better. Building a railway today requires far less human labour

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

than in the past. But the presence of construction teams will open up previously off-road communities and encourage all kinds of economic enterprise. When the railway is finally completed, the multiplier effect is bound to be felt far and wide upcountry.

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

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Transport costs for upcountry producers will go down and earnings can rise, because the middle men can be cut out. The new railway is a sign that there is no more sleeping! James Olouch Kisumu, Kenya

nJOHANNESBURG, South Africa--African cities will in 2030 experience a higher growth rate than in other regions of the world, an Oxford Economics, in its top 15 African cities in 2030, report says. In a report published by Oxford Economics, a British firm that specialises in global forecasting and quantitative analysis for business and government, Africa’s growth trend will continue. Africa has recorded an average annual economic growth of about 5% since 2000. The continent’s average GDP growth will be higher than in other parts of the world in the next 17 years, the report suggests. Dar es Salaam in Tanzania and Angola’s capital, Luanda will join Africa’s club of urban economic giants, alongside Cape Town and Johannesburg. As their economies and population grow, urbanisation in Africa is growing at a faster pace compared to other continents. The study, published on 8 November, covers 96 cities - in 43 countries - with the largest economies and population rates. Africa’s most significant cities contribute about 36% ($ 700 billion) to the continent’s GDP; a figure that is expected to increase to 1,700 billion by 2030, the report says. A total of 51 of the 96 cities surveyed will register a 50% population growth. Lagos, the economic capital of Nigeria, will become the most populous city on the continent in 2030 with some 25 million inhabitants. Dar es Salaam will register the fastest growth in the number of households in the emerging middle class ($5,000 - $20,000 per year in revenue). With the highest GDP in 2030, Johannesburg will see a rise in rich households (475,000) earning more than $70,000 per year. Six out of the top 15 cities in terms of per capita income will be South African in 2030. The first position, nonetheless, will be occupied by Libreville, the capital of Gabon, in central Africa. Disposable incomes will increase by an average of 5.6% per year and the total purchasing power is expected to increase from $420 billion to $1 trillion. Growth in purchasing power will be accompanied by a redistribution of income across the continent. And Sub-Saharan Africa will experience a more significant growth, ahead of North and South Africa. Come 2030, the more developed cities of today, like Johannesburg and Cairo will see their purchasing power doubling, while Abuja, the Nigerian capital, and Huambo in Angola, will see their purchasing power increase by five-fold. According to the report, in 2030 it is predicted that Lagos will rank number one in terms of population (25 million); Johannesburg will be the wealthiest (GDP of $196 billion) while Gabon’s capital, Libreville, will hold top spot in per capita income at $29,749. Consumer spending, in cities surveyed, will see a marked rise in the area of culture and leisure (291% in 2030) as well as the services sector. Food, on the other hand, will record the highest of consumer spending.

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Dar es Salaam to soon join league of urban giants

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ENERGY

East African Business Week I December 9 - 15, 2013

Kenya in upgrade for Thika

BRIEFLY Vodacom Tanzania in deal with Oilcom nDAR ES SALAAM , Tanzania--Vodacom Tanzania recently entered into a partnership with Oilcom Tanzania in a deal that will see vehicle owners and motorists fuel their vehicles and pay through M-Pesa. This is the first partnership of its kind in the Tanzanian market. Vodacom Tanzania External Relations Manager, Salum Mwalim said the new partnership will go a long way in embracing technology in the energy sector as mobile money transaction become crucial in today’s world.

Sri Lankan firm fulfills Uganda contract n RAKAI- Uganda --President Yoweri Museveni officially commissioned a part of a 33kV Power Distribution Line, which connects districts of Rakai and Isingiro in south west Uganda. The section is a 150 kilometre stretch and is part of 330km 33kV Power Distribution Line Project, funded Norway’s NORAD. It was completed by Sri Lankan firm, LTL Projects (Pvt) Limited. The project is overseen by the Rural Electrification Agency whose job is give access to power to upcountry people.

Kenya Power asks for customer details NAIROBI , Kenya-- Power has begun a countrywide campaign encouraging customers to register their account details. This is order to receive paperless bills via email and SMS alerts on news products and other customer services. Dr. Ben Chumo, the acting boss said besides offering convenience to customers, the new service will among other benefits enable KP to minimise expenditure on postage of over two million bills sent to post-paid customers every month. KP hopes to save about Ksh600 (nearly $7 million) annually.

EXPENSIVE: The TANESCO Board says the electricity utility is finding it harder to keep up with payments.

TANESCO to cancel generators contract

BY ANDREW ZABLON

nMWANZA, Tanzania--– The Tanzania Electric Supply Company Limited (Tanesco) Board of Directors recently agreed to suspend the services of US company, Symbion Power and Glasgow-based Aggreko plc effective October, 2014. Board Chairman, retired General, Robert Mboma has written to the Permanent Secretary, Ministry of Energy and Minerals Eliakim Maswi informing him of the decision. “We have reached this decision to avoid further losses due to exorbitant power prices, capacity charges the companies charge TANESCO,” Mboma said. He said by suspending Symbion and Aggreko, TANESCO would save Tsh 25 billion (about $15 million) per month. Gen Mboma was responding to Maswi’s letter of November 4, 2013 in which he expressed the Ministry’s concerns in regards to

$15 million

Projected monthy savings

October 2014

Last month of contract

57%

Percentage of hydro-power

TANESCO’s performance. The Ministry letter touched on high capacity charges, TANESCO Board/ Ministry working relations and excessive and costly Board meetings. According to Gen. Mboma, the Tanzania power utility, pays capacity charge to those companies, Symbion, Aggreko and Independent Power Tanzania Limited (IPTL) to the tune of Tsh 26.6 billion per month. In fact Gen. Mboma tells the government that Tanesco is in the doldrums. He says the few fuel generators owned by Tanesco generate one kwh for Tsh750 ($0.46) but sells the same one kwh to customers for Tsh221 ($0.13) only. The towns of Kigoma, Mpanda, Ka-

sulu, Kibondo, Newala, Songea, Mbinga, Loliondo, Sumbawanga, Mafia use fuel-powered generators. “TANESCO incurs big losses and the only solution is to connect the towns/regions to the national grid and start power generation at Malagarasi and Kagera rivers.,” Gen. Mbona said in his reply to Maswi. TANESCO’s generation division is responsible for all power generation functions owned by Tanesco. Other sources of generation are from Independent Power Producers (IPPs) that feed the National grid and isolated areas as well. Its generation system consists mainly of hydro and thermal based generation. Hydro contributes 57% of total power generation from January, 2012 up to December, 2012. Gas and thermal contributes the remaining amount. Future generation plan will largely be led by coal, wind and gas.

n KENYA, Kenya--Kenya Power will build a Ksh247 million substation at Jomo Kenyatta University of Agriculture and Technology (JKUAT) to enhance quality and reliability of power supply to the institution, and meet growing demand in Juja town and surrounding areas. Speaking during a groundbreaking ceremony held in Juja last week, Kenya Power Acting Managing Director and CEO, Dr. Ben Chumo, said that the substation will have a 23 MVA transformer served with electricity generated at the recently completed Thika Power plant through a dedicated high voltage line. According to a press release, Dr. Chumo said the project involves construction of six feed-out lines serving power to the institution, business premises in Juja and neighbouring communities with two spare ones in anticipation of future growth. He said the project will be completed in ten months and will be implemented under the Kenya Electricity Expansion Project (KEEP) with financing from the Company in conjunction with World Bank’s International Development Agency (IDA). “The KEEP programme is principally intended to increase capacity, reliability and electricity quality, as well as facilitate expansion of access to electricity in urban, peri-urban, and rural areas,” he said. Last week, several parts of Kenya, including bits of Nairobi were hit by a power blackout. In a statement, the Kenya Power said supply interruption occurred due to a fault on the transmission line between Olkaria sub-station and the Nairobi-North substation at about 1.15am on Thursday morning.

Rwanda scraps monthly charges BY AGNES BATETA nKIGALI, Rwanda--- The Electricity, Water and Sanitation Authority (EWSA) is scrapping monthly charges on cash power as one way of bringing electricity to almost the whole country. To load cash power a person had to first pay Rwf500 (almost $1) per month for the prepayment meter. This has been a cause of widespread complaint among some sections of the public. “This is a follow up on the last year’s 2012 National Dialogue’s proposal which was based on revising electric-

ity charges hence make it easy for the people to access”, Lucien Ruterana the EWSA strategic director told East African Business Week. “After consultation with the different EWSA stakeholders and based on the facilitation to access and also use electricity to all people both in rural and urban areas, we decided to remove the monthly charges,” Ntare Karitanyi, EWSA Director General, said. “We believe that with this new strategy will help meet the country’s plan of connecting about 70% of the household to electricity by the year 2017 will be met,” Karitanyi said. EWSA’s split into two companies was

recently approved by the Cabinet. This is expected to help the EWSA manage energy and water resources easily. Ruterana siad, “The percentage of people both in rural and urban areas with electricity is about 17%.” There will be an automatic increase to the 70% targeted number of households with electricity by the year 2018 because of the different other policies developed which include the Rural Electrification Programme aimed at increasing access to electricity, the use of solar and biogas among others. Officials say the new policies will improve overall service delivery.

SERVICE DELIVERY: The utility is eager to spread its reach.

ADVERTS

East African Business Week I December 9-15 , 2013

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The Country Coordinator East African Business Week P.O.BOX 71771, Kampala-Uganda Plot 133, Kira Road, Kamwokya

Sell subscription worth Ugx 2,500,000 per month;

Applications should be submitted not later than 3rd January, 2014 at 5:00pm. Only short listed candidates will be contacted.

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Applicants must fulfill the following; • Attach a copy of their recent passport size photographs, curriculum vitae and copies of their academic and professional certificates and testimonials. • State clearly, on the application forms, their contact physical addresses and telephone number (s) or the nearest contactable person.

AVIS D’APPELS D’OFFRES (AAO) TENDER REFERENCE: No 13/F/2013-2014/IO/RNP/TRAFFIC TITRE DU MARCHE: FOURNITURE DE DIFFERENT VEHICULES DE LA POLICE DE ROULAGE ET LEURS ACCESSOIRES (RELANCE)

INYITO Y’ISOKO: ISOKO RYO KUGURIRA POLISI Y’U RWANDA IMODOKA N’IBINDI BIJYANYE NAZO ZIGENEWE TRAFFIC (GUSUBIRWAMO). INKOMOKO Y’UBWISHYU: AMAFARANGA YA TRAFFIC 1. Polisi y’u Rwanda ifite ingengo y’imari yateganyirije isoko ryo kugurira Polisi y’u Rwanda imodoka n’ibindi bijyanye nazo zigenewe Traffic (Gusubirwamo). 2. Police y’u Rwanda irahamagarira abacuruzi babishoboye kandi bujuje ibisabwa gutanga inyandiko zabo z’ipiganwa ku isoko ryo kugurira Polisi y’u Rwanda imodoka n’ibindi bijyanye nazo zi genewe Traffic (Gusubirwamo). Isoko rigabanijwemo ibice bikurikira: Lot 1: Police patrol car, Lot 2: Police escort car, Lot 3: Mobile Traffic Police Station Vans, Lot 4: Off-road Vehicle- Hardtop type, Lot 5: Ambulances and accessories and Lot 6: Motorcycles. 3. Igitabo gikubiyemo amabwiriza agenga iri soko kiri mu cyongereza cyangwa mu gifaransa kiboneka mu biro by’Ishami rishinzwe amasoko muri Polisi y’u Rwanda, Tel 255103353/ 0788311803, biri mu kigo cya Polisi y’u Rwanda ku Kacyiru, mu minsi yose y’akazi guhera taliki 05/12/2013 kuva 7 h 00 kugeza 17h30, hamaze kwishyurwa amafaranga ibihumbi icumi na kimwe na maganatandatu y’u Rwanda (11,600 Frw) adasubizwa ashyirwa kuri Konti N°120.00.46 muri Banki Nkuru y’Igihugu (BNR); icyemezo cya BNR kigomba kuba cyanditseho amazina y’uwifuza gupiganwa, nomero n’inyito by’isoko. 4. Inyandiko z’ipiganwa zigomba kuba ziherekejwe n’ingwate y’ipiganwa ingana na 2% y’igiciro cy’isoko kuri buri lot cyangwa ahwanye nayo mu

y’amahanga. 5. Ibisobanuro kuri iri soko biboneka mu biro by’Ishami rishinzwe amasoko ryavuzwe haruguru. 6. Abifuza iri soko basabwe kuba bagejeje inyandiko z’ipiganwa zanditse n’imashini mu gifaransa cyangwa mu cyongereza kandi zifunze neza mu mabahasha ane (umwimerere na kopi eshatu) mu biro by’Ishami rishinzwe amasoko byavuzwe haruguru tariki ya 21/01/2014 saa tatu n’igice za mu gitondo (9h30). 7. Gufungura amabahasha bizaba uwo munsi tariki ya 21/01/2014 saa ine (10h00) mu cyumba cy’ inama cy’Ishami rishinzwe amasoko ryavuzwe haruguru. Inyandiko z’ipiganwa zikererewe zizasubizwa ba nyirazo. 8. Inyito y’isoko na Nomero iranga isoko bigomba kugaragara inyuma ku ibahasha ikubiyemo inyandiko z’ipiganwa. 9. Inyandiko z’ipiganwa zigomba kuba zifite agaciro k’iminsi 120 uherereye ku itariki y’ifungura ry’inyandiko z’ipiganwa mu ruhame. 10.Ipiganwa rigengwa n’Itegeko N012/2007 ryo kuwa 27/03/2007 rigenga amasoko ya Leta nk’uko ryavuguruwe kandi rikuzuzwa kugeza ubu. Kigali, kuwa 05/12/2013. (sé) SSP Jaques BURORA Komiseri w’Imari & Umugenga w’ingengo y’imari w’Agateganyo

TENDER NOTICE (TN)/INVITATION FOR BIDS (IFB) TENDER REFERENCE: No 13/F/2013-2014/IO/RNP/TRAFFIC TITLE OF THE TENDER: SUPPLY OF DIFFERENT VEHICLES FOR TRAFFIC POLICE AND THEIR ACCESSORIES (RE-LAUNCH)

SOURCE DE FINANCEMENT: FOND DU TRAFFIC

SOURCE OF FUNDING: TRAFFIC FUNDS

1. La Police Nationale du Rwanda a des fonds pour financer le projet de Fourniture de différents véhicules de la Police de Roulage et leurs accessoires (relancé).

1. The Rwanda National Police has received funds for Supply of different vehicles for traffic police and their accessories (re-launch) and intends to apply a portion of the funds to eligible payments under the contract for which this Bidding Document is issued.

2. La Police Nationale du Rwanda sollicite des offres de la part de soumissionnaires éligibles et répondant aux qualifications requises pour Fourniture de différent véhicules de la Police de Roulage et leurs accessoires (relancé). Les lots de ce marché sont organisés comme suit: Lot 1: Police patrol car, Lot 2: Police escort car, Lot 3: Mobile Traffic Police Station Vans, Lot 4: Off-road Vehicle- Hardtop type, Lot 5: Ambulances and accessories and Lot 6: Motorcyles 3. Les Dossiers d’Appel d’Offres rédigés en Anglais ou en Français peuvent être obtenus au bureau de l’Unité chargée de passation des marchés au sein de la Police Nationale, Tel 255103353/ 0788311803, sise à Kacyiru au Commissariat Général de la Police Nationale du Rwanda, pendant les jours ouvrables dès le 05/12/2013 de 7heures à 17h30, sur présentation d’un bordereau de paiement d’un montant non remboursable de onze mille six cents francs Rwandais (11,600 Frw) versé sur le compte N°120.00.46 ouvert à la Banque Nationale du Rwanda (B.N.R); doivent apparaître sur ce bordereau le nom du soumissionnaire, le numéro et le titre du marché. 4. Les offres doivent comprendre une garantie de 2% du prix de chaque lot ou dans une monnaie librement convertible.

5. Toute demande d’information relative au présent appel d’offres peut être adressée au bureau de l’Unité de passation des marchés, à l’adresse mentionnée ci-dessus. 6. Les offres bien dactylographiées, doivent être remises sous plis scellés et présentés en quatre copies dont un original au bureau de l’Unité de passation des marchés à l’adresse mentionnée ci-dessus au plus tard le 21/01/2014 à 9h30 (Heure locale). Les offres remises en retard seront rejetées. 7. L’ouverture des offres aura lieu en présence des soumissionnaires ou de leurs représentants souhaitant y assister, dans la salle de conférence de l’Unité de passation des marchés, le même jour, le 21/01/2014 à 10h00 (Heure locale). 8. Le titre du marché doit être clairement mentionné sur l’enveloppe extérieure. 9. La validité des offres sera de 120 jours à partir de la date d’ouverture des offres. 10.L’appel d’offres sera régi par la Loi No12/2007 du 27/03/2007 sur les Marchés Publiques comme modifiée et complétée jusqu’aujourd’hui. Kigali, 05/12/2013. (sé) SSP Jacques BURORA Commissaire chargé des Finances et Gestionnaire Principal du Bugdet (a.i)

2. The Rwanda National Police invites qualified bidders to submit bids for the Supply of different vehicles for traffic police and their accessories (re-launch) as indicated in detail in the statement of requirements. The lots of this tender were arranged as follows: Lot 1: Police patrol car, Lot 2: Police escort car, Lot 3: Mobile Traffic Police Station Vans, Lot 4: Off-road VehicleHardtop type, Lot 5: Ambulances and accessories and Lot 6: Motorcycles 3. Tender Documents in English or French may be obtained from the Office of Procurement Unit, Tel 255103353/ 0788311803, at the Rwanda National Police General Headquarters Kacyiru, on any working day from 05/12/2013 from 07:00 am to 05:30 pm, upon presentation of proof payment of a non-refundable fee of eleven thousand six hundred Rwandan Francs (11,600 Rwf) to Account N°120.00.46 opened at National Bank of Rwanda (BNR); the bank slip must bear the name of the bidder, the number and the title of the tender. 4. All bids shall be accompanied by a Bid Security

of 2% of the price offered for each lot or an equivalent in a freely convertible currency. 5. Enquiries regarding this tender may be addressed to the Procurement Office, at the mentioned address. 6. Well printed bids, properly bound and presented in four copies one of which is the original must reach the Office of Procurement Unit at the address mentioned above not later than 21/01/2014 at 9:30 am. Late bids will be rejected. 7. Bids will be opened in the presence of bidders or their representatives who choose to attend in the conference room of Procurement Office at Kacyiru, on the same day 21/01/2014 at 10:00 am. 8. The Outer envelope should clearly indicate the tender name and title. 9. The validity of the offers shall be 120 days from the date of opening of bids. 10.Bidding will be conducted in accordance with the Law N° 12/2007 of 27/03/2007 on Public Procurement as modified and complemented to date. Kigali 05/12/2013 (sé) SSP Jacques BURORA Acting Commissioner for Finance & Chief Budget Manager

MILESTONE

East African Business Week I December 9 - 15, 2013

One man few will ever forget

olihlahla Mandela was born into the Madiba clan in Mvezo, Transkei, on July 18, 1918, to Nonqaphi Nosekeni and Nkosi Mphakanyiswa Gadla Mandela, principal counsellor to the Acting King of the Thembu people, Jongintaba Dalindyebo. His father died when he was a child and the young Rolihlahla became a ward of Jongintaba at the Great Place in Mqhekezweni. Hearing the elder’s stories of his ancestor’s valour during the wars of resistance, he dreamed also of making his own contribution to the freedom struggle of his people. He attended primary school in Qunu where his teacher Miss Mdingane gave him the name Nelson, in accordance with the custom to give all school children “Christian” names. He completed his Junior Certificate at Clarkebury Boarding Institute and went on to Healdtown, a Wesleyan secondary school of some repute, where he matriculated. Nelson Mandela began his studies for a Bachelor of Arts Degree at the University College of Fort Hare but did not complete the degree there as he was expelled for joining in a student protest. He completed his BA through the University of South Africa and went back to Fort Hare for his graduation in 1943. On his return to the Great Place at Mkhekezweni the King was furious and said if he didn’t return to Fort Hare he would arrange wives for him and his cousin Justice. They ran away to Johannesburg instead arriving there in 1941. There he worked as a mine security officer and after meeting Walter Sisulu, an estate agent, who introduced him to Lazar Sidelsky. He then did his articles through the firm of attorneys Witkin Eidelman and Sidelsky. Meanwhile he began studying for an LLB at the University of the Witwatersrand. By his own admission he was a poor student and left the university in 1948 without graduating. He only started studying again through the University of London and also did not complete that degree. In 1989, while in the last months of his imprisonment, he obtained an LLB through the University of South Africa. He graduated in absentia at a ceremony in Cape Town. Nelson Mandela, while increasingly politically involved from 1942, only joined the African National Congress in 1944 when he helped formed the ANC Youth League. In 1944 he married Walter Sisulu’s cousin Evelyn Mase, a nurse. They had two sons Madiba Thembekile ‘Thembi’ and Makgatho and two daughters both called Makaziwe, the first of whom died in infancy. They effectively separated in 1955 and divorced in 1958. Nelson Mandela rose through the ranks of the ANCYL and through its work the ANC adopted in 1949 a more radical mass-based policy, the Programme of Action. In 1952 he was chosen at the National Volunteer-in-Chief of the Defiance Campaign with Maulvi Cachalia as his Deputy. This campaign of civil disobedience against six unjust laws was a joint programme between the ANC and the South African Indian Congress. He and 19 others were charged under the Suppression of Communism Act for their part in the campaign and sentenced to nine months hard labour suspended for two years. A two-year diploma in law on top of his BA allowed Nelson Mandela to practice law and in August 1952 he and Oliver Tambo established South Africa’s first black law firm, Mandela and Tambo. At the end of 1952 he was banned for the first time. As a restricted person he was

THAT SMILE: Mandela never let bitterness or pettiness cloud his sense of judgement such that no one could question his sincerity. only able to secretly watch as the Freedom Charter was adopted at Kliptown on 26 June 1955. Nelson Mandela was arrested in a countrywide police swoop of 156 activists on 5 December 1955, which led to the 1956 Treason Trial. Men and women of all races found themselves in the dock in the marathon trial that only ended when the last 28 accused, including Mr. Mandela were acquitted on 29 March 1961. On 21 March 1960 police killed 69 unarmed people in a protest at Sharpeville against the pass laws. This led to the country’s first state of emergency on 31 March and the banning of the ANC and the Pan Africanist Congress on 8 April. Nelson Mandela and his colleagues in the Treason Trial were among the thousands detained during the state of emergency. During the trial on 14 June 1958 Nelson Mandela married a social worker Winnie Madikizela. They had two daughters Zenani and Zindziswa. The couple divorced in 1996. Days before the end of the Treason Trial Nelson Mandela travelled to Pietermaritzburg to speak at the All-in Africa Conference, which resolved he should write to Prime Minister Verwoerd requesting a non-racial national convention, and to warn that should he not agree there would be a national strike against South Africa becoming a republic. As soon as he and his colleagues were acquitted in the Treason Trial Nelson Mandela went underground and began planning a national strike for 29, 30 and 31 March. In the face of a massive mobilization of state security the strike was called off early. In June 1961 he was asked to lead the armed struggle and helped to establish Umkhonto weSizwe (Spear of the Nation). On 11 January 1962 using the adopted name David Motsamayi, Nelson Mandela left South Africa secretly. He travelled around Africa and visited England to gain support for the armed struggle. He received military training in Morocco and Ethiopia and returned to South Africa in July 1962. He was arrested in a police roadblock outside Howick on 5 August while returning from KwaZulu-Natal where he briefed ANC President Chief Albert Luthuli about his trip. He was charged with leaving the country illegally and inciting workers to strike. He was convicted and sentenced to five years imprisonment which he began serving in Pretoria Local Prison. On 27 May 1963 he was transferred to Robben Island and returned to Pretoria on 12 June. Within a month police raided a secret hide-out in Rivonia used by ANC and Communist Party activists and several of his comrades were arrested. In October 1963 Nelson Mandela joined nine others on trial for sabotage in what became known as the Rivonia Trial. Facing the death penalty his words to the court at the end of his famous ‘Speech from the Dock’ on 20

April 1964 became immortalized:“I have fought against white domination, and I have fought against black domination. I have cherished the ideal of a democratic and free society in which all persons live together in harmony and with equal opportunities. It is an ideal which I hope to live for and to achieve. But if needs be, it is an ideal for which I am prepared to die.” On 11 June 1964 Nelson Mandela and seven other accused Walter Sisulu, Ahmed Kathrada, Govan Mbeki, Raymond Mhlaba, Denis Goldberg, Elias Motsoaledi and Andrew Mlangeni were convicted and the next day were sentenced to life imprisonment. Denis Goldberg was sent to Pretoria Prison because he was white while the others went to Robben Island. Nelson Mandela’s mother died in 1968 and his eldest son Thembi in 1969. He was not allowed to attend their funerals. On 31 March 1982 Nelson Mandela was transferred to Pollsmoor Prison in Cape Town with Sisulu, Mhlaba and Mlangeni. Kathrada joined them in October. When he returned to the prison in November 1985 after prostate surgery Nelson Mandela was held alone. Justice Minister Kobie Coetsee had visited him in hospital. Later Nelson Mandela initiated talks about an ultimate meeting between the apartheid government and the ANC. In 1988 he was treated for Tuberculosis and was transferred on 7 December 1988 to a house at Victor Verster Prison near Paarl. He was released from its gates on Sunday 11 February 1990, nine days after the unbanning of the ANC and the PAC and nearly four months after the release of the remaining Rivonia comrades. Throughout his imprisonment he had rejected at least three conditional offers of release. Nelson Mandela immersed himself into official talks to end white minority rule and in 1991 was elected ANC President to replace his ailing friend Oliver Tambo. In 1993 he and President FW de Klerk jointly won the Nobel Peace Prize and on 27 April 1994 he voted for the first time in his life. On 10 May 1994 he was inaugurated South Africa’s first democratically elected President. On his 80th birthday in 1998 he married Graça Machel, his third wife. True to his promise Nelson Mandela stepped down in 1999 after one term as President. He continued to work with the Nelson Mandela Children’s Fund he set up in 1995 and established the Nelson Mandela Foundation and The Mandela-Rhodes Foundation. Nelson Mandela never wavered in his devotion to democracy, equality and learning. Despite terrible provocation, he never answered racism with racism. His life has been an inspiration to all who are oppressed and deprived, to all who are opposed to oppression and deprivation. Nelson Mandela Foundation

TENDERS

East African Business Week I December 9-15, 2013

REQ UEST FOR EXPRESSION OF INTEREST N° 03/RURA/EOI/2013-14

EXPRESSION OF INTEREST FOR HIRING AN INDIVIDIAL CONSULTANT TO PROVIDE EXPERTISE IN ELECTRICITY REGULATION 1. BACKGROUND The Rwanda U tilities Regulatory Authority (RU RA) has the mandate to promote fair competition in different public utilities among which the energy sector, to encourage private investments while protecting consumer interests in respect to affordability, availability and quality of services. The Government of Rwanda has embarked on an electricity market reform process to allow private entities to play a much bigger role in the electricity industry. In that line, the Electricity Law came into force in J uly 2011, fostering an adequate framework for electricity operations in Rwanda. The Law empowers RU RA to set and approve tariffs in the electricity sector and it provides the legal framework for RU RA to grant different categories of electricity licenses. Further to the enactment of the Electricity Law, RU RA has initiated the development a number of secondary legislations aimed at progressively operationalizing the Electricity Law. In that line, RU RA has already issued regulations such as the Electricity Licensing Regulations, the Electricity Safety Regulations and the Electrical Installations Regulations, the Rwanda Grid Code and the Regulations on Renewable Energy Feed-in-Tariffs. As the Government of Rwanda has an ambitious target of achieving a total installed capacity of 563 MW and 48 % electricity access rate (grid connected) by the year 2017 from the current 110 MW and 17% access rate, it is important for RU RA to put in place a conducive environment and a favorable regulatory framework to meet the above mentioned targets. 2. OVERALL DUTY OF THE EXPERT The overall duty of the expert is to advise and help RU RA implement best approaches and practices for an effective regulation of the electricity sector in Rwanda. The expert is expected to provide expert advice on various functions being discharged by RU RA in the electricity sector. 3. SPECIFIC DUTIES The specific tasks of the expert shall be • To advise on strategies to be used for a sustainable, environment friendly, competitive, diversified and interconnected electricity market and supply industry in Rwanda • To breakdown the RURA strategic plan into implementable activities that would enhance the regulation of the electricity sector • To develop and implement strategies for the operationalization of the Grid Code.

• To review the existing regulatory framework in order to identify issues and constraints that would arise and propose modifications for an effective regulation of the electricity sector • To draft a clear roadmap for the development of electricity market structure and regulation for the short, mid and long terms • To play an advisory role to both the irector General office and the epartment for Energy and Water and Sanitation on regulatory matters relating to the electricity sector • To propose methodologies and tools to be used for assessing, monitoring and evaluating the performance of the national power network and quality of electricity supply by both the National Electricity Utility and IPPs • To develop a comprehensive power utilities reporting systems • To develop procedures for inspection of compliance and enforcement of the existing regulations • To develop approaches and associated regulatory instruments to be used to boost the electricity supply capacity in order to increase the level of electricity access to the population at an affordable price • To advise on the implementation of the Least Cost evelopment Plan ( LC P) • To advise and contribute to the set up and/ or review of electricity tariffs and other charges • To devise measures for protection of consumers’ interests and for the promotion of energy conservation and efficiency • To advise on regulatory strategies and instruments required to enhance the scale and deployment of Renewable Energy development • To assist RURA in the implementation of the Universal Access und for Electricity • To work closely with RURA staff involved in the regulation of the electricity sector in order to enhance knowledge transfer • To build in-house missing regulatory capacity • To perform other functions as may be assigned from time to time by RURA. 4. MINIMUM Q UALIFICATIONS & EXPERIENCE Interested candidates should meet the following requirements • Be a senior level person with extensive knowledge of best regulatory practices and experience in management or consulting in the power systems, preferably in Africa. Key expertise should be in the operations of energy/electricity regulatory authorities with at least 7 years work experience. • She/ He shall have a minimum of master degree in a discipline relevant to Energy/ Electricity regulation with preferably a 1st degree in Engineering or Economics. However, it is recognized that work in this specified area in not necessarily tied to one profession or limited to a particular academic discipline. Hence, the expert will be judged on the depth

and relevance of their documented experience rather than on their academic degree. • She/ He should be fluent in Oral and Written English 5. DURATION OF THE ASSIGNMENT The duration of the assignment is one (1) year. 6. PACKAGE The remuneration package is to be negotiated during interviews. Only candidates who will have demonstrated experience and good track record in similar assignments will be short listed for interview. EXPRESSION OF INTEREST SUBMISSION PROCEDURES Well printed expressions of interest, properly bound and presented in three copies, one of which is the original, must be submitted under sealed envelopes to the Procurement Office of RU RA by 08/01/2014. Any complementary information concerning this expression of interest will be obtained from RURA’s Head Offices situated in E - air House Building, at KI O U P.O. Box 72 9 Kigali, Tel (2 0) 2 2 62, e-mail info rura.rw The expression of interests will be slipped into an outer envelope bearing the following mention To: The Director General Rwanda Utilities Regulatory Authority P.O.BOX 7289 Kigali, Rwanda REQ UEST FOR EXPRESSION OF INTEREST N° 03/RURA/EOI/2013-14 EXPRESSION OF INTEREST FOR HIRING AN INDIVIDIAL CONSULTANT TO PROVIDE EXPERTISE IN ELECTRICITY REGULATION one at Kigali on 02/12/2013 Maj. François Régis GATARAYIHA Director General

CALL FOR EXPRESSIONS OF INTEREST: TEA SITES DEVELOPMENT The Tea sector in Rwanda contributes to the realisation of Government goals related to rural development, environmental protection, poverty reduction and export growth as set out in the ision 2020, the E PRS II, the Strategic Plan for Agriculture Transformation III and the Tea Strategy.

3. Set up (a) Tea actory (ies) as well as associated infrastructure

The Government of Rwanda aims at increasing the area under tea cultivation by adding an extra 10,000 Hectares on the following five ( ) new sites through private sector investments.

1. Ensure farmers are organised into cooperatives and will facilitate linkages 2. Be responsible for resettlement and other related issues, in order to ensure consolidation of estates. This will be undertaken within the framework of the existing public policy on resettlement 3. Ensure road, water and electricity infrastructure is available up to the selected sites.

Site

Altitude

District

Industrial bloc Planned area a for out growers a

Fire wood a

Sovu

2, 600 m

Ngororero

321

1, 734

100

Rugabano

2, 141 m

Karongi

438

1, 743

145

Karumbi

2, 682 m

Rutsiro

521

1, 647

172

Kibeho

1,9 m

Nyaruguru

1, 753

160

Munini

1, 838 m

Nyaruguru

323

1, 662

120

(The acreage is indicative and may change) The following conditions (among others) make the Rwanda’s tea sector an attractive investment opportunity • • • • •

Good acidic soils, which produce high quality teas avourable climatic conditions High altitude of 1, 00 2,700 m conducive for high quality tea growing Availability of labour Conductive business environment.

nvestment on the five

new Tea Sites:

The Government of Rwanda wishes to identify investors who would be interested in developing the 5 tea sites above mentioned. The Investor will be expected to 1. evelop Industrial Blocks 2. Support out growers in tea plantations

The Government of Rwanda will

The EOI should contain the following

The Name, Profile and Address of the Investor A capability statement of the Investor, showing the capacity to undertake the venture A short description of anticipated risks as well as mitigation measures Any other additional information the investor will judge critical for consideration during the shortlisting process.

Please note that full technical and financial proposals are not re uired at this stage The shortlisted potential investors will be given detailed project documents at the ne t stage, which will contain among others social and environmental impact assessment reports The same shortlisted investors will be given the opportunity to visit the sites before submission of comprehensive proposals business plans Site Maps can be obtained at the following websites www.minagri.gov.rw, www.rdb.rw, and www.naeb.gov.rw EOIs should be sent to the following address with the subject

pression of nterest: Tea Sites

wanda evelopment oard Agribusiness epartment, orner lvd de l’ muganda Airport oad yarutarama oad PO o 3 , ishushu, igali, wanda EOIs can also be submitted to the following email address agriculture rdb.rw eadline for submission of EOIs is riday, ecember 27th, 2013 at 12pm Local Time. Requests for additional information or clarifications can be addressed to the following email addresses agriculture@rdb.rw dgoffice@naeb.gov.rw

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East African Business Week I December 9- 15, 2013

OFFICE OF THE PRIME MINISTER

2ND PRDP MONITORING COMMITTEE UNDER PRDP 2 Towards Developing a Prosperous & Economically vibrant Northern Uganda

H.E YOWERI KAGUTA MUSEVENI President of the Republic of Uganda (Initiated the development of PRDP)

HON. REBECCA AMUGE OTENGO Minister of State Northern Uganda Rehabilitation

RT. HON AMAMA MBABAZI Prime Minister (Chair of PMC)

HON. BARBRA NEKESA OUNDO Minister of State / Karamoja Affairs

HON GEN. MOSES ALI 2nd Deputy Prime Minister / Deputy Leader of Government Business in Parliament

HON. CHRISTINE A. APORU Minister of State / Teso Affairs

MRS. CHRISTINE GUWATUDDE KINTU Permanent Secretary / OPM

HON JANET K. MUSEVENI Minister for Karamoja Affairs

HON. EARNEST KIIZA Minister of State / Bunyoro Affairs

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OFFICE OF THE PRIME MINISTER

2ND PMC UNDER PRDP 2

Current status of PRDP implementation: The Peace Recovery and Development Plan (PRDP) was initiated by his Excellency Yoweri K Museveni to help lay a foundation in the Pacification and Development of Northern Uganda that had been devastated by the various forms of conflict across the region and created a socio-economic divide between the North and the rest of the country. PRDP is therefore a comprehensive plan of action to strengthen coordination, enhance monitoring of nationally and internationally supported programmes and investments in Northern Uganda. It also acts as a mechanism for mobilization of additional funds to finance recovery efforts in Northern Uganda. Full scale implementation of PRDP 1 started in 2009 in Four (4) main sectors of our economy (Health, Water, Education and Works) covering eight (8) sub regions of West Nile, Acholi, Bunyoro, Lango, Teso, Karamoja, Elgon and Bukedi with a total of 55 District Local Government and 9 Municipalities.

These children in Amuru are happy about their new classroom built with PRDP support.

After PRDP1, an evaluation was conducted and it revealed that; a) Most of the investments were not completed within the three years b) Completed investments were not functional c) The impact of war was over a period of Time and could not be reversed in three years only d) Some key sectors had not been covered. e) The PRDP region still continued to remain behind as per development indicators at outcome and impact levels. Because of these issues, cabinet found it prudent to extend PRDP for another three years under what is now called PRDP2 with emphasis on functionality and ownership of investments. PRDP2 was designed to complete the post-conflict recovery process in Northern Uganda with the overall goal of consolidating peace and strengthening the foundations for development in Northern Uganda.

Some of the classrooms constructed under the PRDP grant. TREND OF PRDP ANNUAL IPF AND PERCENTAGE RELEASES FY 2009/10 TO 2012-2013

PRDP2 retained the four strategic objectives developed for the PRDP with 14 programme areas, however the focus and content of each strategic objective was adjusted at programme level in line with the evolving needs of the North. These objectives strategic objectives include; 1. Consolidation of state Authority 2. Empowering Communities 3. Revitalisation of the Economy 4. Peace Building and Reconciliation PRDP2 covers eight sectors of Education, Health, Water, Works, Production, Local Government, Environment and Lands. The Government is committed to ensuring complete revitalization of Northern Uganda through continuous investment in these areas and to keep a close look and interest in completing these investments, training communities in production, facility user committees, environment among others to ensure functionality, operational and maintaince of infrastructure.

Available data indicates that there has been constant decrease in releases over the FYs despite constant indicative planning figures.

Minister of State for Northern Uganda laying a foundation stone for the construction of a warehouse at Bibia in Amuru District.

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East African Business Week I December 9- 15, 2013

OFFICE OF THE PRIME MINISTER

2ND PMC UNDER PRDP 2

ANALYSIS OF PRDP 2 GRANT ALLOCATION BY LOCAL GOVERNMENTS TO SECTORS IN FY 2013-2014 The analysis of Local Government Work plans for FY 2013/14 basing on the Indicative Planning Figures given to them, indicate that most of the regions gave priority to Education (23.2%), Health (20.18%), Roads (17.5%), Local Government (16.96%) and water (10.06%) which accounted for 87.92% of the total Indicative Planning Figures.

Functionality of completed investments •

• • • • •

Up to 82% of all the completed investments were functional across the PRDP region as of March 2013 with Teso (84%), Northern (83%), Karamoja (74%), Bunyoro (83%) and Elgon (89%). OPD utilization rate has increased across all the region from 80% which implied that there is no problem with access to OPDs. Overall, access to water by the rural population increased from 64% to 65%. Pupil Teacher Ratio has reduced in PRDP region from 63:1 to 58:1 in 2012, more reduction was observed in Karamoja and Northern however there was a slight increase in PTR in Teso. Pupil Class Room Ratio reduced in all the PRDP region from 90:1 to 73:1. Pupil’s Stance Ratio reduced in the PRDP region from 52:1 to 42:1.

Minister of State for Teso Affairs handing over motorcycles to District Production Of icers.

PRDP2 improving social services in karamoja Education Priorities under this Programme Area, including the construction of classrooms and staff accommodation, provision of water and sanitation, desks, fencing, installment of lightening conductors and electricity to ensure functionality. To-date at least 2,545 classrooms, 2504 staff housing units, 3640 latrines, & 12 teachers’ resource centers have been constructed, 340 classrooms renovated & 28,900 desks supplied, school Management Committee members have been trained on their roles and functions. Training female members to promote their active participation is emphasized.

Health in the region has improved with the construction of

health center IIs, staff houses, maternity, children and general wards, placenta pits, OPDS, ambulances and supply of furniture to the beneficiaries. 18 ambulances have been procured; 15 admin blocks, 812 housing units, 700 latrines 263 maternity, general and children’s wards constructed; 49 housing units renovated; & 1300 units of medical equipment procured.

1st Lady and Minister for Karamoja commissioning Rupa Police Post constructed by KALIP in Moroto District in April 2013

Provision of safe water through construction of boreholes, shallow wells, springs, protected wells, dams, water harvesters at different locations in the regions is ongoing and proper sanitation practices are being realized. More than 1452 boreholes constructed and/or rehabilitated; 380 shallow wells &13 valley tanks constructed; 132 springs protected; 66 piped water projects started; 79 Gravitational Flow Scheme projects constructed. INFRASTRUCTURE DEVELOPMENT In line with the government priority of ranking infrastructure high on the national agenda leading to the attainment of Vision 2040, Karamoja as a region has its share of infrastructure boost under the second phase of PRDP. Rehabiliting and constructing roads has made it possible for farmers to access market for their surpluses and access to health and education facilities. A woman weeding a sorghum garden in Karamoja

Key challenges under PRDP2 Grant Implementation 1. 2. 3. 4. 5. 6. 7.

Procurement delays continue to be a hindrance to investment completion Inadequate critical technical staff at LGs Low capacity of local contractors Over costing and over-rolling of projects Invisible/unreported work by Development partners Inadequate community involvement in PRDP Planning Wrong and Sometimes no labelling of Investments by Contractors

These interventions are supplemented by activities under NUSAF2 and KALIP

NUSAF2 The Project Coverage and Funding NUSAF2 is a 5 year project made effective on 25th November 2009; and was officially launched by HE the President of Uganda on February 8, 2010. It is being implemented in the PRDP programme area comprising 55 districts covering Teso (8), Elgon (8), Bukedi (6), Lango (8), Bunyoro (3), Acholi (7), and West Nile (8); and Karamoja sub region with 7 districts. The project is financed by the World Bank (IDA) through a Specific Investment Loan (SIL) of US $ 100 million; and additional grant of UK £24 million from DFID. The DFID funding is specifically to support investments in Teachers and Health Workers staff houses in the targeted communities.

Project Development Objective (PDO): NUSAF2 Project Development Objective (PDO) is to improve

OPM supplies oxen and ox ploughs comminities to enhance animal traction for increased food production. access of beneficiary households in Northern Uganda to income earning opportunities and to better basic socio-economic services through rehabilitation and construction of infrastructures. It has been designed to meet the PDO through three (3) strategic interventions namely; Livelihood Investment Support (LIS), Community Infrastructure Rehabilitation (CIR) , and Institutional Development (ID).

NUSAF2 Project Components (i) Livelihood Investment Support (Lis) To improve access to income earning opportunities among the target households. The LIS has 2 sub-components, namely: Household Income Support Program (HISP) Public Works Program (PWP)

(ii) Community Infrastructure Rehabilitation (CIR) To improve access to better basic socio-economic services in the targeted areas/Sectors (Education, Health & Water).

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2ND PMC UNDER PRDP 2

(iii) Institutional Development (ID) Project Implementation Support (PIS): To improve the technical, administrative and managerial capacity of the key implementers of the Project. Transparency Accountability & Anti-corruption (TAAC): To promote good governance and accountability at all levels of Project Implementation.

OUT PUTS ACHIEVED UNDER NUSAF2 Output type

June 11

June 13

Number of funded IGA (sub projects

2,149

4,807

Number of Oxen distributed

5,782

15,806

Number of Local Cattle distributed

7,813

22,020

Number of Improved cattle distributed

3,380

7,267

Number of Goats distributed

22,490

59,775

District production offices

Number of piglets/pigs distributed

6,930

14,175

Sub county production offices

Number of poultry distributed

29,700

83,850

Solar power units

Number of sheep distributed

2,030

2,744

Project Management Committees

Number of Classrooms Constructed/ rehabilitated (IDA15)

133

534

District vehicles

Motorcycles

Number of teachers houses constructed

139

701

GPSs and cameras

Number of staff houses for Health workers constructed

352

Laptops

Desktops

ALREP and KALIP focus on the restoration of the productive capacity of farmers, and strengthen the linkages to agricultural service provision in terms of advice, supplies, processing and access to rural finance.

Printers

Photocopiers

Internet Connections

In order to ensure that agricultural skills development is sustained beyond the programmes’ lifespan, ALREP and KALIP focus on improving service delivery of sub-county offices and the skills of sub-county production department staff. In total 130 subcounties (100 in ALREP and 30 in KALIP) are targeted to benefit from this.

Office furniture

District staff trainings

Support to sector meetings

At request

Monitoring and district meetings

At request

Police posts

Police accommodation

Office power

Boreholes

Motorcycles

Office furniture (posts)

Training of police staff

420

Community policing groups

168

Household Income Support

4: Peace building initiatives supported 5: Operations, monitoring and audits

Intervention

Target

Primary Education and Health

Water Number of boreholes constructed/ rehabilitated

435

Number of Springs protected/ rehabilitated

Milk is among the source of nutrition especially for young children in Karamoja

Programme (KALIP - € 15 million). Both programmes are funded by EU and implemented by OPM through a Programme Management Unit. The projects are set to run until September 2014.

RESULTS OF ALREP 1: 2: 3: 4: 5: Eyama – Inanga Community Access Road, Aloi Sub County, Alebtong district.

KALIP/ALREP Since 2007 the GoU and the European Union have been working together to make the implementation of the PRDP a success. In July 2010, this partnership was further strengthened with the launch of two new programmes in support of the PRDP and the KIDP: the Northern Uganda Agricultural Livelihoods Recovery Programme (ALREP - € 20 million) and the Karamoja Livelihoods

PMU

Agricultural production and productivity increased Productive infrastructure in support of farming rebuilt Input and output markets and processing capacities made more efficient and transparent Availability of agricultural finance to producers, traders and processors increased Capacity of relevant departments in Local Government at district and sub-county level built for more effective planning, service delivery, supervision and monitoring Operations, monitoring and audits

KALIP OUTPUTS ACHIEVED 1: Productive assets built through labour intensive works and capital injected in the local economy 2: Agro-pastoral production improved and alternative means of livelihood promoted 3: Local government strengthened

OFFICE OF THE PRIME MINISTER New Government Building, Plot 9-11, Apollo Kaggwa Road P. O. Box 341, Kampala

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SUPPLEMENT

East African Business Week I December 9 - 15, 2013

RURAL ELECTRIFICATION AGENCY

MINISTRY OF ENERGY AND MINERAL DEVELOPMENT !

Republic of Uganda

REA Marks 10 Years

SUPPLEMENT

East African Business Week I December 9 - 15, 2013

RURAL ELECTRIFICATION AGENCY Republic of Uganda

MINISTRY OF ENERGY AND MINERAL DEVELOPMENT

RURAL ELECTRIFICATION needs support to transform Uganda

The government is implementing ambitious plans to increase power generation and connection to all parts of the country.ENG. IRENE MULONI, the Minister for Energy and Minerals says the plan will boost Uganda’s economic growth and transformation.

ENG. IRENE MULONI

What is the energy sector in Uganda like today? The energy sector is in a state where a lot of work is going on to ensure that we are able to meet the energy needs of this country and to support industrialization and economic transformation. We are looking at generating adequate electricity to handle the immediate needs but also plan for the demand that is increasing at a very fast rate because of the various

Minister for Energy and Minerals development activities that are taking place. So a lot of work, projects, initiatives, and updating plans are ongoing. We are looking at this by tapping into the renewable energy sources that we have been blessed with in the country. We are trying to harness these resources in the best way possible to make sure that we maximize the benefi ts out of them. When I look at the spectrum of the various renewable sources that we are looking at, we are talking about those that will provide us with the least cost. Here I mean hydropower. We have the potential along the River Nile plus the small rivers in the countryside. We have projects lined up like Karuma (600MW) on River Nile, Isimba (183MW), and Ayago (600MW) on top of other completed projects like Bujagali among others. We also have very many small hydropower stations along the small rivers across the country, which we want to exploit in addition to the big ones. We are also looking at other renewable sources like geo-thermo, solar, wind (although on a small scale), biomass, and co-generation from the sugar factories. We are also looking at tapping into thermal as an interim measure. As you are aware, the big hydro power stations take three to five years before they can come online. Because of the demand from

the new factories that take the highest amount of power, government is forced to fi nd ways to ensure we have electricity on standby to be able to meet the need as we wait for the renewable energy sources. Does the discovery of oil in Uganda contribute anything to the energy sector? Of course yes. We have our petroleum resource that we are going to produce, which we think will add more to the energy sector. The proceeds from the resource will help finance infrastructure developments (roads, rail, schools, health institutions, water and other sectors, which will boost economic growth. So priority is being given to it (petroleum) because of the anticipated positive consequences. So, as we plan to produce petroleum, we are also planning to use some of the crude oil for power generation as a short-term measure because the demand is growing fast at between 10% to 15% per year. What about the legal framework? On the legal framework, we have the Electricity Act (1999) which established the Rural Electrification Fund (REF), Rural Electrification Board (REB), Rural Electrification Agency (REA), the Electricity Regulatory Authority (ERA) and all the other companies dealing in the electricity sector. There are other laws governing minerals and petroleum. For petroleum, we have the National Oil and Gas Policy. Parliament already passed The Petroleum (Exploration, Development and Production) Act, 2013 to guide the activities in the oil sector. So we are ready as a country. Why focus on electrifying rural communities where there is limited business activity and low levels of power consumption? We want any business and household that needs electricity to have it. Majority of Ugandans don’t have access to electricity. REA was set up to specifically accelerate rural electrification in this country and in its plan we have structured and framed when we want to achieve complete electrification. But we move in phases, with first priority going to those areas that can give us immediate results and those that create multiplier effects. We want to make sure that administrative unit in the country, health centres, schools, industries, and businesses are electrified so they are able to operate efficiently and boost economic growth in the process. We opened up the sector to the private players so they can

invest. Because of that we have been able to attract many independent power-generating companies. Others have invested in distribution especially in rural areas. We actually think this kind of arrangement will accelerate rural electrification in the country in the longterm. We also have a series of transmission and distribution projects to help us extend the power line to the rural areas. That is where Rural Electrification Agency (REA) comes in; to accelerate rural electrification. Right now as a country, only 14% of Ugandans are electrifi ed, which I think is a small number. We will not develop like we want when the majority (86%) are still using the traditional means of energy. How will the small industries do value addition when they are not electrified? So we have to be very serious on this. We have reviewed and approved the electricity master plan that is going to accelerate rural electrification so that by the year 2040 everyone in Uganda has access to electricity. The process is aggressive, expensive, takes long to mature but we have to be patient, plan, and focus on what we want as a country. Our target is to achieve a rural electrifi cation access rate of 26% of the estimated population by 2022. As government we are planning to transform the economy to move from where it is at the moment to a middle income earning group by 2040. What is your comment on the current power tariffs? Government put in place the Electricity Regulatory Authority (ERA) to set and regulate tariffs, give standards, supervise players in the sector so that we can get the best quality of service in the power sector. ERA’s presence has actually attracted many private players in the sector. One of the things ERA is doing is to ensure the country reduces power losses, which in the end is expected to bring down power prices per unit-which most consumers want in this market. Once we increase power generation over time, our expectations are that the price per unit will, defi nitely reduce. If we tap into the cheap sources of energy say hydropower, we should be able to end up with a tariff that is affordable. So, how do you describe the gap between the rural and urban population in terms of power connectivity and use? Of course the gap is still big because, like I said only 14% of Ugandans have access to electricity. Out of this about 7% are rural consumers so we need to work hard and fi ll that gap. It is cheaper to connect the urban

areas because, in urban settlement people or households are close to one another and so the cost of connection is low and many people can easily get hooked onto the system, compared to the rural areas where people or households are sparsely distributed. The government’s plan is to increase generation year after year to meet the ever-increasing demand. In fact credit goes to government because, when you look back, we had a lot of load shedding but today the story is different. We have adequate electricity supply and if anyone has an outage at the moment, that is as a result of technical problems but not generation gaps. We want to see more people connected and more economic activities happening in the country. Currently, the country’s installed generation capacity is about 818.5MW and we estimate demand (at peak level) to be at around 487 MW. How are you managing the challenges in the energy sector? The major challenge is meeting the demand for power consumers in Uganda. That is why every effort is geared towards having our generation capacity increased so that everyone who wants power gets it all the time. Demand is currently growing at between 10 -15% per year and this is too high. We are focusing on efficiency in the sector so as to cut down losses which are a big problem to the sector. Also, we are experiencing a lot of delays in construction of power dams, right from the procurement process. Sometimes we lack suffi cient funds for the projects and there is always resistance from environmental groups on these projects. But we remain committed to ensuring that these projects are accomplished for the good of the country and the people. We are also doing a lot of research in terms of technology, standards in the sector to further harness the potential in the sector. Your promise to Ugandans… I will say government remains committed to ensuring that adequate power is generated to meet the demand of both households and businesses. REA needs support and government is committed to supporting its activities. We thank our development partners, the private sector for whatever they are doing to boost the sector and we hope at the end of the day all Ugandans will get connected to power and will live a better life.

40% National Coverage of rural people will have electricity by 2022 When the government launched the Rural Electrification Programme in 2001, the Permanent Secretary of the Ministry of Energy, FREDRICK KABAGAMBE KALIISA, was one of its initiators. Today, he is the chairman of the Rural Electrification Board and talked to Agather Atuhaire about the challenges and achievements.

FREDRICK KABAGAMBE KALIISA Permanent Secretary of the Ministry of Energy

Why was the Rural Electrification Board and Rural Electrification Agency established? Government’s expanded Rural Electrification Programme was a culmination of the power sector reforms that included the enactment of a new legal framework in the form of the Electricity Act 1999, and the restructuring of the electricity market; including institutional reforms for managing the sector.

The reforms emphasized the introduction of the private sector into the power sector with the purpose of investing in infrastructure and managing the operations and achieve efficiency. The Electricity Act provided for the establishment of a coordinated Rural Electrification Programme through a public-private partnership. It also provided for the creation of the Rural Electrification Fund to finance the programme’s activities in order to increase electricity access in rural areas and achieve the desired rural transformation to support the nation’s economic development. In line with the electricity Act 1999, the minister responsible for Energy published the Rural Electricity Strategy and plan in 2001 whose implementation commenced in 2002 and ended in 2012. Together with the strategy and plan, statutory instrument No.75 of 2001 was issued to establish the Rural Electrification Fund (REF) and the institutional mechanism for managing the fund. In this respect, the Rural Electrification Board (REB) was created and the Rural Electrification Agency (REA) was created as its secretariat to carry out its day to day management of the programme. These institutions were formally constituted in 2002 and 2003 respectively and have diligently implemented the programme since then.

How do you decide which rural area gets electricity? In implementing the programme, we have been guided specifically for grid extension projects by the project prioritization criteria in the Indicative Rural Electrification Master Plan (IREMP) and factors of social equity and equitable regional distribution. The criteria had the following features: • Regional distribution to achieve equity; • Connection to district headquarters while maximizing the capture of key economic activities (e.g. trading centres and SMEs) and social services (health care and educational institutions) along the way. • Value for money projects, that is, projects with the highest economic benefits and lowest cost per connection. • Connection to large rural industrial activities (e.g. tea, coffee, fi sh and mineral processing); and • The willingness and ability of communities to make a contribution towards their own electrification. The criteria above helped in ranking the projects and have a rational implementation plan. The Rural Electrification Board is in the process of retiring the master plan having implemented or packaged all the projects for financing. A new master plan is being developed by the board based on the service territory model. What is the level of rural electrification in Uganda currently? The Uganda Bureau of statistics projected the Ugandan population to be about 34.1 million by mid 2012-6.5 million households (HHs) where 85% are rural. National electricity access was estimated at approximately 14% and rural access is estimated at approximately 7%. Uganda’s per capita electricity consumption has now doubled over the last 18 months from 75kWh/per year in 2011 to 150kWh/per year today. The number of billed customers reported by Umeme in June 2012 is 420,000 while other concessions have 13,100. The numbers of HHs served are higher given that a meter can serve multiple HHs. About 30,000 HHs are served by solar PV systems. Limited access and use of energy significantly slows down economic and social transformation therefore there is need for smart and practical approaches to increase access. The Rural Electrification Board had set a target to achieve 10 percent

rural electrification rate by 2012 according to its strategic plan (RESP 2002-2012). Why did it fail to achieve it? We achieved only 7% and it was because of a number of constraints; • The increasing population growth rate which is quite high in Uganda at over 3.5% per year, which exceeds the agreed rate of electrification per year given the limited financial resources. • The initial donor-sponsored designed policy for rural electrification in 2001 based on private sector led, commercially- oriented rural electrification failed to work and we had to change this policy in 2006. Government decided to take on the development of infrastructure while the private sector comes into management. • The sparse nature of our settlements in Uganda creates a huge financial burden to electrifying villages using convectional grid extension. We have to look at other methods of electrification like solar PV but those also have a high initial upfront cost. • While we can provide infrastructure, we cannot force connections to households. We have a challenge of high connection fees and high consumer tariffs. What are the Rural Electrification Fund sources of funding? As provided for in the electricity Act 1999, sources of funding for the rural electrification programme include money appropriated by parliament, any surplus monies made from the operations of the Electricity Regulatory Authority declared to the minister of finance and paid into the fund, a levy of 5% on transmission bulk purchases of electricity from generation stations and donations, gifts, grants and loans acceptable to the minister responsible for electricity and the minister responsible for finance. How will the Board fast-track implementations of RESP 2013-2022 to ensure it achieves its target of 26% by 2022? The implementation of RESP 2012- 2022 will involve two phases. There is the transitional implementation arrangements phase. It is anticipated that the process of developing long-range plans will take three years. During this transition period we will undertake the elaboration of the enabling framework including the legal framework to strengthen rural electrification, institutional arrangement, preparation of the master plans for the service territories to establish commercial viability, revising the rural electrification distribution engineering design and construction standards, capacity building for the Rural Electrification

Agency and the existing service providers, commencing a focused public awareness campaign, preparation of long term concession bidding documents among others and procurement of interim operators on management contracts for the service territories to prepare them for long term concessions. The interim operators will carry out the necessary connections to achieve a minimum required commercial viability within their period of operation to enable government to attract credible bidders for long term concessions. The government will continue to finance projects from its inventory of projects, including grid extensions and off-grid projects Towards the end of the interim period, the Rural Electrification Agency will start the procurement of long-term service providers on concession basis. The major seven-year implementation phase will involve activities like the establishment of long-term service providers in their respective territories, rollout of the implementation of each service territory master plan, government sourcing financing, and on-lending service providers on concessionary terms and monitoring and evaluation of the performance of the programme. What has been the response of the private sector in Rural Electrification? The provisions of the 1999 Electricity Act provided for more involvement of the private sector in the rural electrification subsector. The design for the RESP 2001-2010 was premised on the model where by the private sector will take the lead in the investment and government would provide capital subsidies to ensure return on investment and profi t but also moderate tariff to make it affordable to rural consumers. While quite an amount of effort was put in planning projects and attracting private investors for a good part of the first years of implementation of the programme, it eventually became evident that the private sector would not be forthcoming due to the risk they saw in investing in a poor rural market. From 2006 therefore, government reverted to public financing of rural electrification infrastructure, taking away the risk of investment from the private sector, but allowing for the procurement of the private sector to operate the networks so developed in line with the policy of public private partnership.

SUPPLEMENT

East African Business Week I December 9 - 15, 2013

SUPPLEMENT

East African Business Week I December 9 - 15, 2013

SUPPLEMENT

East African Business Week I December 9 - 15, 2013

BUSINESS

DIGEST BUSINESS WEEK, December 9-15, 2013

CREATING A BUSINESS DEFICIT

Reasons why small businesses fail TO PAGE 24

The most common financial problems effecting small business across the region are: cash flow, rising costs, taxation and business regulation, the high US dollar and interest rates.

Get a head for business n Let’s take a look at these issues and how you can fix them. Cashflow Cashflow is the life blood of business. If your business is suffering from poor cash flow then here are a few things that you could look at: make sure you’re getting paid: if you don’t have a process to manage the collection of your debtors, then cash could be hiding in your accounts receivable. Look at when you pay your suppliers: it is important to pay your suppliers on time, but that doesn’t mean you should pay them early. Also, if you need more time to pay then get on the phone and ask for an extension.

Stock and work-in-progress If you hold stock or have work in progress (if you are a service business you may have work in progress) then cash could be hiding here also. If you hold too much stock, or if you take too long to complete work, then this could be draining your cash. Make sure you turn jobs around quickly and quit old stock, as this will help to improve cash flow. Budgeting and management reporting: also really important when it comes to managing cash flow. Rising costs Yes business costs are rising, but that

doesn’t mean you can’t get a better deal. Try the following: shop around for quotes on insurance, telephone and electricity. You’ll be surprised how much you can save by taking a closer look at what you are paying. If you don’t want to change suppliers, ask them for a better deal. Talk to suppliers about early payment discounts or volume discounts. Review your bank loans (business and residential). Again, shop it around and ask your bank to match the best deal. Review your internal systems and processes. Are your staff being as effective as they can be, are they

following old processes that could be automated or updated? It’s a good idea to update your budget based on these savings as this will help to ensure savings identified flow through to the bottom line. Taxation and business regulation As taxation and business regulations continue to change it’s important to understand how as a business owner you can stay up to date with these changes. A couple of ways to stay up-to-date is: subscribe to your relevant national revenue authorities (for example, TRA, URA, TRA, RRA and OBR) for e-mail alerts.

Read the business press regularly as they often cover changes to tax and business regulation which affect small business. It’s really important to keep your accounting records up-to-date. There is some very good software on the market which makes it easier to keep your records up-to-date. Also, talk with your accountant or adviser before you make substantial changes to your business or assets (e.g. buying or selling a property). It’s always much easier to plan for change than to try to clean up the mess afterwards. TO PAGE 24

BUSINESS DIGEST

East African Business Week I December 9-15 , 2013

Planning one step forward Developing a cash flow forecast will indicate the estimated money flowing into and out of the business over a period of time, allowing you to set budgets and targets, and monitor performance

FROM PAGE 23 The rise in the US dollar can impact on SMEs across the region. As movement in the US dollar is largely driven by global factors it is difficult to determine how long it will stay at current high levels. If you are an exporter, you are no doubt happy with the high dollar, but how will your business perform if the dollar drops? On the other hand, this means higher costs if you’re major inputs for your goods are imported. You need to always think about that. If you are an importer you will no doubt be feeling the pain. Improving the efficiency in your manufacturing or service delivery will help to reduce costs to offset the impact of the dollar. Determining the profit made in each export market will help you to make decisions as to whether you should ride it out or change strategy. If you are going to ride it out, then work closely with your export customers on ways in which you can add value to improve price to offset the impact of the higher dollar. Interest rates The final financial problem SMEs around the region are concerned about is fluctuations in interest rates and the impact of these movements on their businesses. While rates are relatively low at present, it might be a good time to think about fixing

the interest rate on some of your debt. Fixing the interest rate on your debt generally means that you are not able to pay off the debt faster than the agreed term. So it may be wise to fix the interest rate on a portion of your debt. This will give you some flexibility to pay debt down faster if needed. As a business owner, you should also be aware of how increasing interest rates will impact your business. Including some scenario planning with your budgeting and forecasting is a good idea. This could be a simple as looking at the profit budget and cash flow forecast using a range of different rates. Planning early will mean that you are ready to act quick-

A lot of people have ideas, but there are few who decide to do something about them now.

ly should there be a sudden movement in interest rates. According to a booklet titled ‘Small Capital’ and published by South Africa’s Standard Bank, there are top 10 reasons why most small businesses fail: inadequate business planning, insufficient capital, lack of management experience, poor location, poor inventory and cash flow management, over-investment of fixed assets, poor credit arrangements, personal use of business funds, competition or lack of market knowledge, and low sales, or not pricing properly. Referring to the booklet, consultant, Issa Sikiti da Silva, says an entrepreneur can turn a profit, but still goes bankrupt if his or her business has a cash flow problem. Poor cash flow is one of the major causes of failure in small businesses. ‘Developing a cash flow forecast will indicate the estimated money flowing into and out of the business over a period of time, allowing you to set budgets and targets, and monitor performance,’ the booklet advises. ‘Small Capital’ recommends the following intelligent tips to control cash flow effectively: Keep operating costs down: every coin counts. If you have a 20 per cent mark-up, then every shilling or franc of fixed costs spent unnecessarily means five additional sales are needed to get back to the same point. It is easier to save costs than to grow profit, so don’t

buy new if you can do with second-hand, and don’t buy at all if you don’t really need it. Avoid credit terms: bad debts are the quickest way to sink a small business. Make sure your payment terms are understood and agreed to in writing before a project begins or a sale is made. Debt collection: follow up as soon as money is due. A new debt is far easier than an old one. Improve supplier payment terms: negotiate preferential payment terms, extensions of credit lines or discounts for early settlements. However, don’t compromise your relationships with your suppliers – you need them on your side. Keep stock to a minimum: stock costs money to buy, transport and store. It can also be stolen, damaged or become obsolete. Managing stock sensibly is as important as managing cash flow. An American chain restaurant empire owner, Chuck E. Cheese sometime ago put together his thoughts about business success. “The critical ingredient is getting off your butt and doing something. It’s as simple as that. A lot of people have ideas, but there are few who decide to do something about them now. Not tomorrow. Not next week. But today! The true entrepreneur is a doer, not a dreamer.”

EzineArticles.com

Reasons why small businesses fail Procrastination. When you own a small business, you will find that tasks and paperwork pile up on your desk. Putting them off is like piling up debt; eventually they could overwhelm you. Ignoring the competition. Consumer loyalty has declined sharply. Today, customers go where they can find the best products and services, even if that means breaking off longterm business relationships. Monitor your competitors, and don’t be ashamed to copy their best ideas. Better yet, devote some time each week or month to devising new methods, products or services for your firm. Sloppy or ineffective marketing. Contrary to the popular cliche, few products or services “sell themselves”. If you don’t have time to market your product effectively, hire an experienced person to do it for you. Marketing keeps your products selling and money flowing into your business. It’s crucial that you do it well. Ignoring customers’ needs. Once you attract customers, you’ll have to work hard to keep them. Customer service should be a key aspect of your business. If you don’t follow through with your customers, they’ll find someone who will. Incompetent employees. Hire only workers who are essential to your operation. When you do hire employees, make sure they’re well trained and able to complete the tasks expected of them. And remember that happy employees make good workers — try to create a work environment that keeps your staff happy and motivated. Lack of versatility. You may be great at making hats or painting houses or fixing computers, but that’s not enough to make your millinery shop or house painting business or computer consultancy successful. Successful business owners tend to be adept at a number of tasks, from accounting to marketing to hiring. Poor location. Even the best restaurant or retail store will fail if it’s in the wrong place. When you’re scouting a location for your firm, consider factors such as

traffic and convenience. Cash flow problems. You need to know how to track the money coming into and out of your business - even a profitable venture will flounder if it runs short of cash. In addition, you must learn to make cash flow projections that will help you decide how much money you can afford to spend and warn you of impending trouble. A closed mind. Everyone goes into business with some preconceptions — don’t be surprised if you find that many of yours are wrong. Look for mentors who can give you advice and run your ideas by them before you make important financial commitments. Read books and magazines about small business; visit business-related websites and network with your peers in the business community. Inadequate planning. Start with realistic but precise goals for your firm, including deadlines. For example, don’t just say that you want to increase sales; instead, decide that you want sales to reach $100,000 by next holiday season. Then write down the steps you can take to meet those goals on time, and set deadlines for completing those steps. Consult your goal list every day, and make sure you are doing what you need to do to meet your objectives.

www.bcfcca.ca

Look for mentors who can give you advice and run your ideas by them before you make important financial commitments.

TENDERS

East African Business Week I December 9-15, 2013

Uganda National Roads Authority Plot 5 Lourdel Road, Nakasero P.O.BOX 28487, Kampala, Uganda

INVITATION TO BID (OPEN INTERNATIONAL BIDDING)

TENDER NOTICE N° 05/S/NOCB/RBLC-ORG/RDB/ICF/13

DESIGN AND BUILD FOR THE UPGRADING OF MUBENDE-KAKUMIROKAGADI ROAD (107KM) Procurement Reference No: UNRA/Works/2013-14/00015/01/01

TITLE OF THE TENDER: CONSULTANCY SERVICES TO PROVIDE CORPORATE RESTRUCTURING EXPERTISE

1. The Government of the Republic of Uganda through its Uganda National Roads Authority (UNRA) has allocated funds from its Road evelopment and Maintenance Budget to be used for Design and Build for the Upgrading of Mubende-Kakumiro-Kagadi Road (107Km) and intends to apply a portion of these funds towards eligible payments under the design and build civil works contract for the upgrading of MubendeKakumiro-Kagadi Road (107Km) from gravel to bituminous standard. 2. The Uganda National Roads Authority now invites written sealed bids from eligible bidders to undertake the execution of design and build civil works as stipulated in the bidding documents. 3. Bidding will be conducted in accordance with the open International bidding procedures contained in the Government of Uganda’s Public Procurement and Disposal of Public Assets Act, 2003, and are open to all bidders from eligible source countries. Envelopes containing sealed bids must be marked with the above procurement reference number on the top right corner indicating the bid being submitted. . In order to be qualified for award of contract, bidders shall provide evidence satisfactory to the Employer of their experience, technical and financial capability as well as availability of resources to execute the contract effectively. The minimum experience requirements for qualification for the contract are as indicated in the bidding document. . Interested eligible bidders may obtain further information from UNRA and inspect the bidding documents at the address given below from 09 00am (Local time) to 00pm (Local time) during working days from Mondays to ridays. 6. The bidder is advised to visit and examine the site of works, its surroundings and obtain all information that may be necessary for preparing the bid and entering into contract for construction of the works. The cost of visiting the site shall be at the bidder’s own expense. In addition, there shall be a Pre-bid meeting at 10:00am on 8th January, 2014 at UNRA Mubende Station 7. A complete set of Bidding ocuments in English may be purchased by interested bidders upon submission of a written application on bidder’s letter head to the address below and upon payment of a non- refundable fee of UGX. 150,000 or USD 60. The payment shall be effected through direct cash payment to UNRA’s Cashier or deposit/telegraphic transfer to the following UNRA’s Bank account. ame and Address of eneficiary: on Ta evenue ame and Address of eneficiary an : an of ganda p. O. Box 7120, Kampala, Account No: 003130168000001 Swift ode of eneficiary an : A A It’s upon the presentation of a satisfactory evidence of payment that the bidder will be issued with the biding documents. In case the bidder wishes, the bidding document may be sent by courier or any other means, the charges should be prepaid to a nominated courier and the advice delivered to’ the physical location indicated below. No liability will be accepted for loss or late delivery.

. Bids clearly marked “ DESIGN AND BUILD FOR THE UPGRADING OF MUBENDE-KAKUMIRO-KAGADI ROAD (107KM must be delivered to the address below by 11 00am local time on or before 12th March, 201 . All bids must be accompanied by a bid security of UG 3 billion or an equivalent amount in a freely convertible currency). Late bids shall be rejected. ualification / Technical Bids will be opened in the presence of the bidders’ representatives who choose to attend at the address below on 12th March, 2014 at 11:30 AM. The inancial bids of qualified / technically responsive bidders will be opened publicly at a date, time and place to be notified later. . 9. (a)All Clarifications to this bid will be addressed to The Head, Procurement and Disposal Unit, Uganda National Roads Authority, Ground Floor, Room No. GA2, Plot 5, Lourdel Road, Nakasero, P.O.BOX 38487 Kampala, Uganda, Tel: + 256 312 Z33 100, Fu: + 256414 232807/ + 256 414 347616 Email: procurement@ unra.go.ug (b) Biding documents may be inspected from Procurement and Disposal Unit, Uganda National Roads Authority, Ground Floor, Room No. GA3, Plot 5, Lourdel Road, Nakasero, Kampala, Uganda, (c) Biding documents will be issued from Same as in No.9 (b) above. (d) Address Bids must be delivered to Same as in No. 9(b) above. (e) Address of Bid Opening Same as in No.9 (b) above but in, PDU Boardroom, Room No. GA4. 10. The planned procurement schedule (subject to changes) is as follows Activity

Date

a. Publish bid notice

th ecember, 2013

b. Pre-bid meeting

th anuary, 201

c. Bid closing date

12th March, 201

d. Evaluation process

12th March, 201 11th April,201

. isplay and communication of best evaluated bidder notice

12th May, 201

f. Contract award and Signature

1 th une, 201

EXECUTIVE DIRECTOR

TENDER NOTICE N° 06/S/NOCB/RBLC-ORG/RDB/ICF/13 TITLE OF THE TENDER: CONSULTANCY SERVICES TO CONDUCT TRAINING AND AWARENESS ON INSOLVENCY AND PRACTICE

PROCUREMENT METHOD: Q UALITY COST BASED SELECTION SOURCE OF FOUNDING: INVESTMENT CLIMATE FACILITY FOR AFRICA The Rwanda evelopment Board/Office of the Registrar General trough Rwanda Business Life Cycle Project hereinafter called ’Client has received funds from the Investment Climate acility for Africa (IC ), the cost of preparation of the Consultancy services to provide corporate restructuring expertise .The Client intends to apply a portion of the funds to eligible payments under the contract for which this Request for Proposals is issued. The Rwanda evelopment Board/Office of the Registrar General trough Rwanda Business Life Cycle Project now solicits proposals to provide the following consulting services CONSULTANC SER ICES TO PRO I E CORPORATE RESTRUCTURING E PERTISE. More details on the services are provided in the Terms of References. The Local or International Consultant irms will be selected under uality Cost Based Selection ( CBS), and procedures described in this R P. The Request for Proposals (R P) includes the following documents Section 1 - Letter of Invitation Section 2 - Instructions to Consultants (including Data Sheet) Section 3 - Technical Proposal - Standard Forms Section 4 - Financial Proposal - Standard Forms Section 5 - Terms of Reference Section 6 - Standard Forms of Contract

in working hours i.e. ( 00am-17 00pm) local time online on eliab.muhawenimana rdb.rw or at the following address RWANDA DEVELOPMENT BOARD OFFICE OF REGISTRAR GENERAL RWANDA BUSINESS LIFE CYCLE PROJECT 2nd FLOOR, RDB BUILDING P.O Box: 6239 KIGALI, RWANDA Enquiries regarding this tender may be addressed to the Project irector at eliab.muhawenimana rdb.rw Well printed proposals (separated technical and financial), properly bound and presented in four copies (Technical and inancial) at the address mentioned above not later than 20th Dcember,2013 at 14:00 pm, local hour. Late bids will be rejected. Only Technical Proposals will be opened in the 2nd loor R B Meeting Room on the same day at 1 30 pm. in the presence of Consultants or their representatives who choose to attend. inancial Proposals will be opened later upon invitation of consultants firm whose technical proposals will have scored at least 70 as technical score. The Outer envelope should clearly indicate the tender title and number. one at Kigali on th ecember,2013

The Request for Proposals may be obtained on any working day (Monday to riday) from th ecember,2013

TENDER NOTICE N° 07/S/NOCB/RBLC-ORG/RDB/ICF/13 TITLE OF THE TENDER: CONSULTANCY SERVICES TO CONDUCT AN ASSESSMENT OF THE CURRENT INSOLVENCY PRACTICE

PROCUREMENT METHOD: Q UALITY COST BASED SELECTION SOURCE OF FOUNDING: INVESTMENT CLIMATE FACILITY FOR AFRICA

The Rwanda evelopment Board/Office of the Registrar General trough Rwanda Business Life Cycle Project hereinafter called ’Client has received funds from the Investment Climate acility for Africa (IC ), the cost of preparation of the Consultancy services to Conduct Training and Awareness on Insolvency and Practice .The Client intends to apply a portion of the funds to eligible payments under the contract for which this Request for Proposals is issued.

2013 in working hours i.e. ( 00am-17 00pm) local time, online on eliab.muhawenimana rdb.rw or at the following address RWANDA DEVELOPMENT BOARD OFFICE OF REGISTRAR GENERAL RWANDA BUSINESS LIFE CYCLE PROJECT 2nd FLOOR, RDB BUILDING P.O Box: 6239 KIGALI, RWANDA

The Rwanda evelopment Board/Office of the Registrar General trough Rwanda Business Life Cycle Project hereinafter called ’Client has received funds from the Investment Climate acility for Africa (IC ), the cost of preparation of the Consultancy services to Conduct an Assessment of the Current Insolvency Practice. The Client intends to apply a portion of the funds to eligible payments under the contract for which this Request for Proposals is issued.

Enquiries regarding this tender may be addressed to the Project irector at eliab.muhawenimana rdb.rw Well printed proposals (separated technical and financial), properly bound and presented in four copies (Technical and inancial) at the address mentioned above not later than 20th December, 2013 at 10:00 am, local hour. Late bids will be rejected.

The Rwanda evelopment Board/Office of the Registrar General trough Rwanda Business Life Cycle Project now solicits proposals to provide the following consulting services CONSULTANC SER ICES TO CON UCT TRAINING AN AWARENESS ON INSOL ENC AN PRACTICE. More details on the services are provided in the Terms of Reference. The Local and International Consultant irms will be selected under uality Cost Based Selection ( CBS), and procedures described in this R P. The Request for Proposals (R P) includes the following documents Section 1 - Letter of Invitation Section 2 - Instructions to Consultants (including Data Sheet) Section 3 - Technical Proposal - Standard Forms Section 4 - Financial Proposal - Standard Forms Section 5 - Terms of Reference Section 6 - Standard Forms of Contract

The Request for Proposals may be obtained on any working day (Monday to riday) from 5th December,

Only Technical Proposals will be opened in the 2nd loor R B Meeting Room on the same day at 11 00 a.m. in the presence of Consultants or their representatives who choose to attend. inancial Proposals will be opened later upon invitation of consultants firm whose technical proposals will have scored at least 0 as technical score. The Outer envelope should clearly indicate the tender title and number. one at Kigali on th ecember,2013

The Local and International Consultant irms will be selected under uality Cost Based Selection ( CBS), and procedures described in this R P. The Request for Proposals (R P) includes the following documents Section 1 - Letter of Invitation Section 2 - Instructions to Consultants (including Data Sheet) Section 3 - Technical Proposal - Standard Forms Section 4 - Financial Proposal - Standard Forms Section 5 - Terms of Reference Section 6 - Standard Forms of Contract

The Request for Proposals may be obtained on any working day (Monday to riday) from 5th December, 2013 in working hours i.e. ( 00am-17 00pm) local time,

online on eliab.muhawenimana rdb.rw or at the following address RWANDA DEVELOPMENT BOARD OFFICE OF REGISTRAR GENERAL RWANDA BUSINESS LIFE CYCLE PROJECT 2nd FLOOR, RDB BUILDING P.O Box: 6239 KIGALI, RWANDA Enquiries regarding this tender may be addressed to the Project irector at eliab.muhawenimana rdb.rw Well printed proposals (separated technical and financial), properly bound and presented in four copies (Technical and inancial) at the address mentioned above not later than 20th December, 2013 at 10:00 am, local hour. Late bids will be rejected. Only Technical Proposals will be opened in the 2nd loor R B Meeting Room on the same day at 11 00 a.m. in the presence of Consultants or their representatives who choose to attend. inancial Proposals will be opened later upon invitation of consultants firm whose technical proposals will have scored at least 0 as technical score. The Outer envelope should clearly indicate the tender title and number. one at Kigali on th ecember,2013

TENDERS

East African Business Week I December 9-15, 2013

BUSINESS KNOW-HOW East African Business Week I December 9-15, 2013

What does marketing mean? Building relationships with your clients

Hope Wilson MARKETING MOXIE n KAMPALA, UGANDA“What is marketing?” At the beginning of each term, I pose this question to my undergraduate marketing students. Their answers are diverse: “It is the process of selling your product.” “It is how to advertise your company.” “It is the study of how to give your company a brand that others will recognize quickly.” “Today, marketing is centered on how to promote your company online through social media, search engine optimization, blogging, website development, creating apps, and other technological tools.” “Marketing is about building relationships with your clients.” All of these answers focus on promotion. While promotion is a vital part of marketing, our responsibilities extend far beyond this single component. Today, we’re going to explore other factors of marketing.

Determine Needs & Desires The first step in marketing is to segment the market—divide it into groups with shared needs and desires. To accomplish this, we examine: Demographics Age Gender Education Income Occupation Geographic Location Cultural Background Psychographics Values Interests Attitudes Beliefs Personalities After identifying the market segments, we develop a product or service that meets the needs and desires of one of more of these groups—a process that we call target marketing. Predict Demand In this step, marketers predict the products and services that consumers will want or need in the future. We ask questions like: Will consumers purchase this product? How many units will consumers purchase? How often will they purchase this product?

“

Segment the market by dividing it into groups with shared needs and desires. Examine the demographics and psychographics What historical trends do we have, and what purchase rates can we project from them? What external factors might increase or decrease purchase rates in the future? After we predict what consumers will want in the future, we can work with our product design and manufacturing teams to create new products, or modify our existing products to accommodate consumer demands. We can also predict the number of units we should make to meet demand. Identify Competition We identify competitors by finding companies that are providing similar products or services. Some of the questions we ask are: Which companies are making

similar products? What is the price for these products? How many units are they selling, and to whom? What are consumers saying about their products? As we learn about our competitors’ strategies, products, services, and consumer response, we can develop a plan to successfully compete against them. Plan Market Entry In our market entry plan, we determine how we will distribute our products or services to our target market. The questions we ask include: When is the best time to start selling our products? How many product units will we be able to sell initially? What licenses or approvals will we need to sell our products? What alliances or partnerships will help us to successfully reach our target market? In which stores or online venues should we sell the product? What risks will we incur? The market entry plan is important for establishing a process, communicating that process to our team, and avoiding risks. It will also help us to select the best option for entering the market, as well as help us to avoid mistakes that will cost us time and money. Calculate Pricing

Of course, all of our hard work is meaningless if we do not set a price that is high enough for us to make a profit, yet low enough that consumers will purchase the product. Setting a price can be challenging; the questions we ask include: What price can our consumers afford? Can we make a profit for the company at this price? At this price, can we compete with our competitors? If our prices are higher than our competitors’, can we create “valueaddeds” that will make us more attractive? Is it important that the customer buy from us more than once, or do

“

Work with the product design and manufacturing teams to create new products, or modify existing products to accommodate consumer demands.

we want to maximize our profit for each transaction? Can we adjust our product line or quality to meet the needs of consumers who are price sensitive, as well as those who aren’t? Will we offer free or discounted products, and if so, how will we offset this financial loss? Selecting the right price for our products and services is one of the biggest and most difficult marketing decisions—especially if you are offering a brand new type of product or service. Consumers must first be educated about the product, and the price must be low enough that they are willing to try something new. Develop Promotional Plan Whether we are launching a brand new product type or promoting a product that is widely available, we must decide how we will promote it. This is what most people think of when we tell them we are marketers: it includes our advertising, social media, publicity, etc. In the promotional plan, we decide how to tell consumers about our product. What are our sales and revenue goals? What metrics will we use to determine success? What is our core message? What image do we want to portray? What does our target market know about us? What marketing channels and tools will we use? When and how will we implement our selected tactics? To learn more about promotional plans, refer to my article from September 9. Provide Service Finally, we examine the type of customer service that our consumers will require, asking questions such as: What types of problems could the customer experience? What training will our customers need to successfully use this product? How will our customers access our customer service department (phone, online, in person)? What internal service standards will we establish? Poor customer service will destroy customer loyalty very quickly, while exceptional customer service will encourage consumers to continue to purchase our products and refer others to our business. As you can see, there are many aspects involved in marketing. Be sure to work closely with your expert advisors to determine the best path for your company.

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 12 international awards for her work. Have a question about marketing? Email: hope@wilsonbgc.com

SUPPLEMENT

East African Business Week I December 9-15, 2013

Tanzania rises from past neglect DAR ES SALAAM, TanzaniaAs Tanzania marks 52 years anniversary of independence it is important to look back to reflect what the country has attained. Although the ‘three enemies’ that the Father of the Nation, Julius Nyerere targeted for elimination after independence ignorance, poverty and disease are not totally defeated, Tanzania has come a long way from where the British left it in 1961. Julius Kambarage Nyerere was 39 years old when he led Tanganyika to independence on 9 December 1961. Britain had taken control of Tanganyika from Germany through a League of Nations mandate in 1919, three years before Nyerere was born. Britain’s lukewarm attitude to Tanganyika was informed by fear – the fear that Tanganyika might one day revert to its original colonial master, Germany. Britain, as a rule, did not develop its many colonies spread across the world to any appreciable level anyway, and it was not going to pay much attention to a territory it was holding in trust for

somebody who might turn up one day and reclaim it. Officially it was a ‘trusteeship’ as compared to Kenya, which was a British ‘protectorate’. That explains the huge gap in the development of the two neighboring countries. Tanganyika’s economy at the time was built around sisal, cotton and coffee. The three crops accounted for 54% of internal revenue. Africans grew 80% of the cotton and coffee at the time. But cotton and coffee were not the top cash earners. Sisal was. But sisal and three other crops – tea, tobacco and pyrethrum - were grown by settlers who were largely European and a mix of Asians. And that was where the money was. Nyerere became a member of the Colonial Legislative Council after the first ‘democratic’ elections in the country in 1958-59. A year later, he was elected First Minister after fresh elections, and on December 9, 1961, he became the Prime Minister at Tanganyika’s independence. Another year later, he was elected President.

THE MWALIMU NYERERE MEMORIAL ACADEMY (MNMA)

52 Years of Independence

RUFIJI BASIN DEVELOPMENT AUTHORITY

52 YEARS ANNIVERSARY OF INDEPENDENCE OF TANZANIA MAINLAND.

The board of directors, management and entire staff of Rufi ji Basin evelopment Authority (RU ABA) would like to convey their congratulatory message to, his excellency r. akaya Mrisho Kikwete, president of the United Republic of Tanzania in celebration of 2yrs anniversary of independence of Tanzania mainland

The Governing Board, Management, Staff and Students of the Mwalimu Nyerere Memorial Academy, wish to join His Excellency r. akaya Mrisho Kikwete, the President of the United Republic of Tanzania and all Tanzanians in commemorating the 2 Independence Anniversary of Tanganyika. CONGRATULATIONS. PRINCIPAL.

GO BLESS TAN ANIA AN ITS PEOPLE irector General Rufi ji Basin evelopment Authority P.O. Box 9320 ar Es Salaam Telegram RUBA A Tel 2 22 2 609 / 2 61 92 ax 2 22 2 61 92 E-mail info rubada.org Website www.rubada.com

SUPPLEMENT

East African Business Week I December 9 -15, 2013

TANZANIA BUREAU OF STANDARDS

52 YEARS ANNIVESARY OF TANZANIA INDEPENDENCE

The Board of Directors Management and Entire staff of Tanzania Bureau of Standards (TBS) joins The President of the U nited Republic of Tanzania, H is Excellency Dr. J akaya Mrisho Kikwete and all Tanzanians in celebrating 52 Y ears of Independence 9th December 2013 “ CONSU ME TBS CERTIFIED PRODU CTS” Director General Tanzania Bureau of Standards P.O.Box 9524 Dar es Salaam Tell:+ 255(22)2450206 Fax: + 255(22)2450959 Email: info@ tbs.go.tz Website: www.tbs.go.tz

ADVERTORIAL

East African Business Week I December 9-15, 2013

UGANDA WILDLIFE AUTHORITY UWA,BUNYORO KINGDOM PARTNER TO PROMOTE CONSERVATION,TOURISM

he leadership of Bunyoro Kitara kingdom has committed to partnering with Uganda Wildlife Authority to promote wildlife conservation and tourism development around Murchison Falls Conservation Area. This was during the three days official visit by the 27th King of Bunyoro Kitara His Royal Highness Dr. Solomon Gafabusa Iguru to Murchison Falls National Park between November 23rd-26th,2013. According to the kingdom Prime minister and minister for Tourism, Mr. Apollo Rwamparo, Murchison Falls National Park is not only the cradle of the ruling Babiito clan, but an area of cultural and historical importance to Bunyoro-Kitara. Archaeological evidence has revealed evidence of human settlement on the banks of the Nile within this national park as early as the Middle Stone Age (pre10,000 years BC). British explorers such as John Speke and Samuel Baker wrote about seeing big villages and cattle at the site of this park. The premier said at the top of Murchison Falls formerly known as Kabalega falls that as key stakeholders it is important UWA consults us on major wildlife and conservation related issues in the Kingdom. We believe this visit will strengthen our relationship with UWA and the line Ministry through better conservation strategies and possibly lead to signing of MoU with Uganda Wildlife Authority to eradicate poaching and other related things in this beautiful National Park. Culturally when the Omukama speaks his subjects must listen. For example HRH spoke against burning of sugarcane in Kinyara Sugar Ltd and it came pass this evil stopped immediately. Community conservation As a Kingdom, we are not against wildlife conservation. We advocate for culturally-conservation sustainable in so that this national and World wildlife heritage benefit the people of Bunyoro as well as other Ugandans, said Mr. Rwamparo. Suffice to say protection of wild life was integrated with The Bunyoro community life. As a pastoral society, the Banyoro hunted animals for meat only in time of famine. Children of cattle owners were prohibited to engage in hunting. Cattle and wild game shared the same ranges. Community-based protection sustained wild life for many generations.

The Bunyoro Trail UWA chief Dr. Seguya and the Bunyoro king discussed a possibility of opening up a Bunyoro cultural trail to promote the Bunyoro culture and how they used to believe as well as important historical sites of cultural significance. The executive director also pledged to introduce the annual open day for Bunyoro communities neighbouring the park to visit the park free of charge to enjoy the activities. Dr. Seguya supported the proposal from the kingdom that the hotels and other businesses should implement affirmative action by deliberately buying products like food items from the communities instead of importing it from Kampala and beyond.

His Royal Highness Dr. Solomon Gafabusa Iguru (M) the King of Bunyoro Kingdom will promote conservation and tourism in the area He said Bunyoro advocates the adoption of community-based wildlife conservation. To commemorate his visit, the king unveiled a monument at a site believed to have been the origin of Babiito clan. The spot near the top of the falls is associated with the legendary Bito tree, where the current Babiito dynasty of Bunyoro originated more than 600 years ago. The visibly excited king and his entourage was accompanied to the top of the falls by UWA Executive Director Dr. Andrew Seguya to a point where the waters of the Victoria Nile squeeze through a seven meter wide gorge to a 45 meter deep fall believed to be the most powerful and fastest in the world. The king later met and interacted with the management and staff of Murchison Falls National Park as well as his subjects working with the park, at Paraa Safari Lodge for a working dinner . Launch of Game drive vehicles, Boat ride On the second day of his visit, the king launched the new posh and specialized game viewing vehicles with sitting capacity of 9 tourists which will be used for both day and night game drives. He was happy to declared the night game drive as a new product which will enable tourists interact and come closer to nocturnal animals. The king’s entourage enjoyed an adventurous game drive towards the Albert delta during which they sighted big mammals and a variety of bird species on top of the spectacular sceneries. He crowned his day by a 17 kilometer boat ride to the bottom of the falls to where he was guided by the Runyoro speaking guides. He was elated at getting

close to schools of hippos, the crocodile bar, the Nyamusika cliff and more bird species. , Visiting the oil sites The king also expressed interest in learning about the possible impact of oil exploration activities on the wildlife and tourism. He

“The neighboring communities, particularly the youth and women should be empowered with capital, knowledge and skills to participate in eco-tourism, production of highly demanded fruits, vegetables, dairy and poultry products such as beef, chicken, eggs, milk even pork to hotels and Lodges operating in this Park. As opposed to giving them tokens of money” urged the kingdom officials. These Hotels must be made aware of their

His Royal Highness Dr. Solomon Gafabusa Iguru (L) is greeted by UWA Executive Director Dr. Andrew Seguya thus visited a restored site where vegetation had rejuvenated and an active site called Jobi 6 where Total is drilling for oil. He was assured of the guidelines in place to mitigate the impact of the oil exploration activities on wildlife.

social responsibility to support neighboring farming communities by encouraging them to produce and sell to them. They can even offer agricultural extension services to these farming areas.

His Royal Highness Dr. Solomon Gafabusa Iguru (L) the King of Bunyoro Kingdom in company of UWA Executive Director Dr. Andrew Seguya

A guide helps His Royal Highness Dr. Solomon Gafabusa Iguru to wear a life jacket

SPORTS

East African Business Week I December 9-15, 2013

LIVE TV GAMES ENGLISH FOOTBALL – PREMIER LEAGUE Mon, 09 Dec

Swansea City vs. Hull City

21h30

SS3/SS3N

Sat, 14 Dec

Manchester City vs. Arsenal

14h00

SS3N/Maximo

Sat, 14 Dec

Chelsea vs. Crystal Palace

16h45

SS3HD/SS3

Sat, 14 Dec

Everton vs. Fulham

16h50

SS7/SS7N

Sat, 14 Dec

Hull City vs. Stoke City

19h00

SS3/SS3N

Sun, 15 Dec

Aston Villa vs. Manchester United

15h00

SS3N/Maximo

Sun, 15 Dec

Norwich City vs. Swansea City

15h25

SS5HD/SS5

Sun, 15 Dec

Tottenham Hotspur vs. Liverpool

17h30

SS3/SS3N

SPANISH FOOTBALL – LA LIGA

2014 World Cup: Five reasons not to miss

nWith the World Cup draw over and the finals just six months away, what are the big moments to look out for in Brazil? Will the hosts get the tournament up and running in their opener on 12 June? Can Lionel Messi or Cristiano Ronaldo finally deliver on the biggest stage of all? And how will England cope with their trip into the jungle? Below are BBC’s five reasons to be excited about the World Cup; Brazil’s opener in Sao Paulo Sixty-four years after Brazil last staged the World Cup, 65,000 fans will scream the hosts on as Luiz Felipe Scolari’s side open the 2014 tournament against Croatia in Sao Paulo on Thursday, 12 June. The five-time winners are the bookmakers’ favourites to make it six titles on home soil and face a Croatia side who only qualified by beating Iceland in the play-offs. Expectations in Brazil have been on the rise since Scolari guided his side to victory in last summer’s Confederations Cup, when Barcelona’s £48m forward Neymar impressed on the way to a 3-0 final win over defending World Cup winners Spain. Chelsea trio Oscar, David Luiz and Ramires could all feature for the Selecao, as could Tottenham midfielder Paulinho. Familiar faces which could be in the Croatia line-up include former Tottenham midfielder Luka Modric, Everton striker Nikica Jelavic and Southampton centre-back Dejan Lovren. Croatia finished third in their first World Cup finals in 1998 but have won just one match since. The two sides met in their opening group game in Germany in 2006 - when AC Milan forward Kaka scored the only goal. Defending champions handed tough draw Spain have won their last three major tournaments and head to Brazil hoping to become the first European team to win a World Cup on South American soil. But manager Vicente Del Bosque saw

his team handed arguably the toughest of the groups in Group B, as Spain were placed up against 2010 finalists Netherlands and Chile. The Dutch won nine of 10 qualifying games and still have the core of the side which reached the final in South Africa, with Manchester United striker Robin van Persie and Bayern Munich forward Arjen Robben in lethal form for their clubs. Chile, meanwhile, pushed Spain all the way for their 2-1 win in the group stage four years ago and beat England comfortably at Wembley last month. The champions’ task is made harder by the fact that the runners-up in their group are likely to face Brazil in the last 16. England’s Amazon assignment England were hoping not to visit the Amazon jungle during their time in Brazil, but instead they will have to face four-times winner Italy in their opening match in Manaus in sweltering temperatures of 30C. As if that task was not daunting enough, Roy Hodgson’s boys have been told they are not welcome in Manaus because of Hodgson’s comments before the draw, where he stated a trip north would not be ideal. England should probably prepare for a fiery welcome to the jungle. However, England’s preparations for the tournament are expected to include two matches in the United States, where Hodgson will base his team in the humidity of Miami. But with Italy experiencing the heat of Brazil during last summer’s Confederations Cup, England could be left sweating on progress from Group D. Fortune favours the French If the draw followed the same procedures as in 2006, France, as the lowestranked team to qualify from Europe, would have been placed in a group with one of the seeded teams from South America. Instead, the format for the draw was changed and it was Italy who ended up in with Uruguay and England. The French? They will surely fancy

their chances of qualifying from a group containing Switzerland, Ecuador and Honduras. “It’s true, I won’t hide it from you, it could have been tougher,” said France coach Didier Deschamps. The 1998 champions finished bottom of their group in the last World Cup but with a potential second-round tie against either Nigeria or Bosnia-Hercegovina on the cards, Deschamps’ men could be dark horses for a shot in Brazil. Messi and Ronaldo go for greatness With over 300 goals for Barcelona, four Ballon d’or awards, six La Liga titles and three Champions League winners’ medals to his name, Lionel Messi has arguably already cemented his place among the sport’s all-time greats. Alongside Cristiano Ronaldo, he has dominated Spanish and European football for the last four seasons. But a World Cup title eludes the duo, and their individual records are poor. Messi has scored just once in a World Cup finals match for Argentina - the sixth in a 6-0 thrashing of Serbia in Germany - while Portugal captain Ronaldo can only claim goals against Iran and North Korea. Maradona carried Argentina to the trophy in 1986 while Pele won three titles with Brazil and a similar display from the modern game’s two leading men may finally end the argument over who is the better player. Over the past few years both men have shone on the international stage. Ronaldo was at his brilliant best during Portugal’s run to the last four in Euro 2012 and scored a hat-trick in their playoff win in Sweden which booked their place in Brazil. Messi scored a hat-trick against Brazil last summer and has finally brought his club form to Argentina, with his record now an impressive 37 goals in 83 caps. With Messi facing Iran, Bosnia and Nigeria in Group F, and Ronaldo’s Portugal up against Germany, Ghana and the United States in Group G, both players will hope that they can lead their sides to glory next summer.

Sat, 14 Dec

Osasuna vs. Real Madrid

16h55

SS5/SS5N

Sat, 14 Dec

Barcelona vs. Villareal

20h55

SS5N/Maximo

Sun, 15 Dec

Atletico Madrid vs. Valencia

21h55

SS3HD/SS3

Sun, 15 Dec

Sevilla vs. Athletic Bilbao

19h55

SS5/SS5N

ITALIAN SERIE A Sat, 14 Dec

Catania vs. Verona

Sat, 14 Dec

Juventus vs. Sassulo

Sun, 15 Dec

Fiorentina vs. Bologna

Sun, 15 Dec

Napoli vs. Inter

GERMAN FOOTBALL – BUNDESLIGA Fri, 13 Dec

Hertha Berlin vs. Werder Bremen

21h00

SS3/SS3N

Sat, 14 Dec

Bayern Munich vs. Hamburg

16h25

Maximo2

Sun, 15 Dec

Schalke vs. Freiburg

16h25

SS7/SS7N

Sun, 15 Dec

B.Leverkusen vs. Eint Frankfurt

18h25

SS1HDA

UEFA CHAMPIONS LEAGUE Tues, 10 Dec

Bayern Munich vs. Man. City

21h00

SS3/SS3N

Tues, 10 Dec

Benfica vs. PSG

21h15

Maximo

Tues, 10 Dec

Galatasary vs. Juventus

21h40

SS7/SS7N

Tues, 10 Dec

FC Copnhagen vs. Real Madrid

21h40

SS5/SS5N

Tues, 10 Dec

Man.United vs. Shakhtar Donetsk

21h40

SSHD6/SS6

Wed, 11 Dec

Marseille vs. Borussia Dortmund

21h00

Maximo360

Wed, 11 Dec

Atletico Madrid vs. Porto

21h15

Maximo

Wed, 11 Dec

Chelsea vs. Steaua Bucharest

21h40

SS4HD/SS7

Wed, 11 Dec

Barcelona vs. Cletic

21h40

SS5/SS5N

Wed, 11 Dec

Napoli vs. Arsenal

21h40

SSHD6/SS6

Wed, 11 Dec

Milan vs. Ajax

21h40

SS8

UEFA EUROPA LEAGUE Thur, 12 Dec

St. Gallen vs. Swansea City

Thur, 12 Dec

Valencia vs. Krasnador

Thur, 12 Dec

Maribor vs. Wigan Athletic

Thur, 12 Dec

Pan.Targu vs. Pacos de Ferreira

Thur, 12 Dec

Dynamo Kiev vs. Rapid Wien

Thur, 12 Dec

Tottenham vs. Anzhi Makhachkala

Thur, 12 Dec

Freiburg vs. Sevilla

Thur, 12 Dec

Guimares vs. Lyon

19h55 SS3/SS3N 19h55 SS5HD/SS5 19h55 SS7/SS7N 19h30 Maximo360 22h00 SS3/SS3N 22h00 SS5HD/SS5 22h00 SS7/SS7N 22h00 Maximo

AFRICAN LEAGUES Sat, 14 Dec

Kenya: Tusker Utd vs. Gor Mahia

Sat, 14 Dec

Nig CopLagos:Senegalvs. Germany

14h30 SS9E 15h45 SS9

Sat, 14 Dec

Nig Cop Lagos:Nigeria vs. Lebanon

Sun, 15 Dec

Nig Cop Lagos:GermanyvsLebanon

17h10 SS9 14h45 SS9

Sun, 15 Dec

Nig Cop Lagos:Nigeria vs. Senegal

17h25 SS9

n BUSINESS DIGEST

Get a head for business

East African Business Week I December 9-15, 2013

PAGE 23-24

n NEWS

TANESCO to stop contracts PAGE 8

Tz nods Ophir shares sale to Pavilion BY KENAN KALAGHO nDAR ES SALAAM, TANZANIA --The government has welcomed the intended sale of 20% of Ophir Energy plc, to a Singapore-based Pavilion Energy pte at $1.28 billlion before tax. Ophir is currently involved with oil and gas exploration in Tanzania. Ophir Energy plc is in talks with Pavilion, which is a subsidiary of Tamasek Holdings, over the offshore blocks 1, 3 and 4 out of the five assets with a 40% ownership. This means that Ophir Energy plc now retain a 20% stake with Pavilion also owning 20% while the British conglomerate, BG Group, remains with its 60% holdings. Speaking in Dar es Salaam last week, the Permanent

WELCOME: Pavilion’s Group CEO, Seah Moon Ming with Maswi last week in Dar es Salaam. Secretary in the Ministry of Energy and Minerals Eliakim Mawsi said the government welcomes the sale of the

shares provided the proper procedure is followed so that the essential government tax is paid up in terms of capital

gains. Maswi said the government was keen to ensure that oil and gas investors in the

country get the required benefits from their investment. “The government would examine the transaction carefully to ensure it brings mutual benefits to Tanzanians as well as investors,” he said. Maswi said he hopes that Pavilion Energy would work with the government to ensure a continued win-win situation. He insisted on the importance of both the government and investors to be more transparent in all the dealings. He said in this way the public can be informed of the challenges facing the gas and oil exploration companies. He said the development of the discovered gas in deep waters was a challenge and a testament to the quality of Tanzanian resources,

together with attractiveness of Tanzania as an investment destination. Dr Nick Cooper, the Group Chief Executive Officer of Ophir Energy plc Tanzania, said Pavilion Energy represented a positive addition to the joint venture. He said this is important as they progress through the development phase and into producing high quality liquefied natural gas (LNG). He said Tanzania remains a core part of Ophir Energy’s portfolio and his company will continue to invest further in the country’s growth through other exploration activities. “We are also investing much in the country, but at times there are strict tax laws and also how to export the gas to other countries,” Dr Cooper said.

Kenya confirms switch

Kampala in $280m revamp for city water

nNAIROBI, Kenya--Kenya’s Cabinet last week approved the planned migration from analogue TV platform to digital setting in motion a process that will see over 18 million households affected. According to a timeline released by the Ministry of Information and Communications, the migration is scheduled to be spread over a period of six months with Nairobi and its environs being swtiched off in mid December. Rural populations will be the last completing the six months process. The process has run into headwinds with a section of the civil society and consumer federations who claim that the country is not yet ready for the switch off. They state that most households can hardly afford the set top boxes that have the capacity to covert analogue signals to digital. “Before the governments goes ahead with the planned migration, they must ensure that the set top boxes are available in the market and at a cost that most families can afford. This is not the case currently,” says Stephen Mutoro of the Consumer Federation of Kenya.

BY BAZ WAISWA

BY HUMPREY LILOBA

SIX MONTHS: The government says it cannot extend the deadline any longer and 18 million households with televisions must comply . The government on its part says that there already 1.2 million set top boxes in the market and the Communications Commission of Kenya has licenced several other dealers to import and retail the crucial gadgets. “We recognise the level of preparedness for the much anticipated migration and this is why we have licenced multiple suppliers of the set top boxes. It is a deadline we cannot extend any furhter,”

Information and Communications Cabinet Secretary Fred Matiang’i said. From the Cabinet meeting, it also emerged that the availability of the 800 range bandwidth will facilitate easier data and content transmission. ‘Cabinet notes the bold steps taken to effect the migration which will lead to release of the spectrum currently used by analogue television. This will improve communications,’ according to a statement.

nKAMPALA, UGANDA- The government, with funding from development partners, has put pen to paper with three firms to undertake infrastructure development and improvement of water and sanitation in the Greater Kampala Metropolitan Area. This will be under the Kampala Water Lake Victoria Watsan (KWLVWATSAN) project which is being implemented and supervised by National Water and Sewerage Corporation (NWSC) with an overall objective of improving the lives of people in greater Kampala by providing safe water. The projected is estimated to cost Euro212m (about $289 million) and is jointly financed under the Mutual Reliance Initiative (MRI) with secured funding from a consortium of European development banks for the implementation of KW-LVWATSAN project. They include European Investment Bank, French Development Agency, German Development Group and the EU Africa Infrastructure Fund. Silver Mugisha the Managing

Director of NWSC who signed the contracts with the contractors on behalf of government said he wanted the contracts to be expeditiously carried out The Ag. Chairman of NWCS Board, Christopher Ebal said the contracts that were signed were timely in that demand for services in Kampala is increasing at a very fast rate. “This is an opportunity for the corporation, but at the same time a challenge in that the resources at hand are not sufficient to ensure the rapid expansion in service coverage,” Ebal said. The Minister of Water and Environment, Ephraim Kamuntu said that the contracts are an indicator that government is fulfilling its pledges to the people of Uganda. “It is therefore with great gratitude and pleasure that we in government hail the signing of these contracts. We know a lot of work has gone on behind the scenes and I thank all those who have worked tirelessly to see this day come to reality,” Kamuntu said. The Minister thanked development partners and other relevant agencies for their efforts.

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