Vol ix issue xxi by East African Business Week

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Tullow hints of shareholder joy

EAC moots grand plans for Arusha

Singap Three times weekly to Rio & Sao Paulo

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A F R I C A N

UNVEILING OPPORTUNITIES

VOL. 9, ISSUE 21 JANUARY 20 - 26, 2014

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

Kenya ban takes toll

BY HUMPHREY LILOBA

nNAIROBI, Kenya--The public transport sector in Kenya is in chaos after the government banned night travel in a bid to curb the rising road carnage. The decision that was announced during the

festive season by Transport Secretary Michael Kamau means that public service vehicles (PSV) can only operate during day time, a move that has caused passenger congestion at various locations within the country. The ban also means disruption of business for various PSV operators a section of whom

moved to court last week seeking to overturn the ban. However the ruling delivered in court Wednesday last week upheld the ban. Most business people who depend on the sector have registered huge losses and still counting with not indication that the government will loosen its stand on the matter.

Burundi builds dam n BUJUMBURA, Burundi—Construction of the new 50MW hydroelectric dam on Jiji and Murembwe rivers is expected to start in September. The project will cover a three-year period and is expected to be completed by the end of 2017. This was revealed during a meeting recently between the Second VicePresident of the Burundi, Dr. Gervais Rufyikiri and representatives of the World Bank, the European Investment Bank, the African Development Bank and the European Union. The four institutions have offered to pay for the project. On behalf of the Burundi people, Dr. Rufyikiri thanked them for their efforts in getting the project off the ground and helping to resolve the energy deficit. He said geotechnical studies on the two rivers are already underway. He said the delegation in collaboration with technicians of the government will jointly analyze the TO PAGE 2

nDAR ES SALAAM, TANZANIA, Tanzania Revenue Authority (TRA) is to introduce a new customs clearance procedure which officials say will be more efficient and cost effective than the present system. It starts on March 1st. The Tanzania Commissioner for Customs and Exercise Tiagi Kabisi said last week in Dar es salaam that the new system that is expected to be launched March this year is expected to improve the tracking of goods as well as ensure fast clearance.

TO PAGE 2

Ugandans sitting on $4bn BY PAUL TENTENA

Dr. Rufyikiri (2nd right) is flanked by representatives of the funding group for the new project which is expected to take off in September.

Tz starts new customs system BY KENAN KALAGHO

In Uganda, the ban has also caused some confusion. Most traders like to travel overnight, do their business during the day then hop onto a bus back to Kampala. Bus operators who ply the Kampala-Nairobi

Kabisi said there was a need for TRA to ensure that revenue collection is improved through the use of the new system known as Tanzania custom Integrated System (TANSCIS) which will replace the old ASYCUDA++. “TANCIS has an ability to speed up clearance of goods and tracking movements of goods from point of shipments to landing,” Kabisi said. He said there will be a sharp reduction of costs on the side of the agents. He also noted that the new sysTO PAGE 2

Hero plan Ethiopia assembly plant nADDIS ABABA, Ethiopia- Hero MotoCorp, India’s largest two-wheeler maker, is planning to set up an assembly plant in Ethiopia. “We have been intensifying our global market expansion. In the first quarter of 2014, we will enter Ethiopia, Turkey and Nicaragua in Central America. The short term goal is to enter 20 new markets by March-end,” Hero MotoCorp managing director and CEO Pawan Munjal told PTI. The company has already started dispatching vehicles to other new markets such as Tanzania, Uganda, Burundi, Egypt, Ecuador and Bangladesh. “In Tanzania and Uganda, we will have local asTO PAGE 2

nKAMPALA, UGANDA- Liberalization of the pension sector in Uganda could release $4.4 billion (Ush11 trillion) per month according to sector players. Uganda has a working population of approximately 14 million, which are mostly in the informal sector and agriculture. The current pension system comprising of the National Social Security Fund (NSSF), the Public Service Pension Scheme and occupational voluntary savings cover less than 7% of Uganda’s workforce. Moses Bekabye, the interim Chief Executive Officer of the Uganda Retirement Benefits Regulatory Authority (URBRA) said reforms are there for necessary to expand coverage not only to those in the formal sector, but also to those who are self-employed and in the informal sector who are the majority workers in Uganda. “These reforms are therefore not narTO PAGE 2

Rwanda targets boom in 2017 BY AGNES BATETA nKIGALI, Rwanda--The Rwanda National Agricultural Export Board (NAEB) is pushing for an ambitious programme that will see exports of leading cash crops double by 2017. “We have developed different strategies to increase on the quantity and also the quality of coffee and tea produced in the country and we believe this is going to increase on export earnings,” the NAEB Director in charge of production Corneille Ntakirurimana said last week. After a reduction in the quantity and TO PAGE 2

NEWS

East African Business Week I January 20 - 26, 2014

Tanzania starts new clearance system FROM PAGE 1

tem would allow the public to pay the required tax without extra or charging less to the procured goods while saying this has been done to ensure that the old system is dumped which was seen to have many shortfalls due to its manual operational. He said that beside the delay in clearance of goods, the old system was also denying the government the required revenue. The new system would lead to improvement of controls through in built automated checks , reduction costs for doing business, monitoring of cargo as well as efficient use of both financial and human resource. He noted that this would in turn lead to quality services and creation on inventory in customs warehouse for overstayed goods and this would also ensure a continual effective monitoring. It is said that some of the goods dec- Officials say TANCIS will mean considerable cost savings for clearing agents. laration changes will be cargo manifest write-off shifted to Customs Release Order (CRO) stage and the streamlined enforce security bond management for from one bonded area to another can be procedures will be reduced during dectransit, export and re-export and also guaranteed through detailed manifest laration processing by automation. warehousing thus improving the manand single manifest distribution point. The new system is said to be able to agement on cargo handling and transfer

Ugandans sitting on $4 billion FROM PAGE 1 rowly targeting the NSSF as some people have been saying; it is in fact a very broad reform agenda. We need to tap this money and people prepare for their old age,” he told news conference last week. Bekabye said as a result of poor governance, the real return on investment (after taking into account inflation and administrative costs) of the funds collected by the NSSF averaged zero percent (0%) for the 10 year period from 2000 to 2010. He said out of 30,000 firms/entities eligible to contribute to the NSSF employ-

ing 5 and above, the NSSF covers about 9,000—this translates into a coverage performance of only 30% of eligible contributors. “The administrative costs of the NSSF are also very high, ranging between 1.7% -1.85% of the total assets (or shs 65-71 billion per year). The global range is 0.5%0.8%. “This translates into lower returns to the savers. Last year NSSF managed a real return of only 2% compared to Kenya which was 24%,” he educated reporters. “You journalists should help us and we reform this sector by reporting accurately. Some people can confuse

you because they may be benefiting from an unreformed sector. Pensioners will receive their retirement benefits without hassle,” added Bekabye. He said Uganda’s very young population presents an opportune moment to redesign the pensions system to become a central pillar in the accumulation of domestic savings to support economic development but at the same time provide a safety net against old age poverty. “The overriding objective of the on-going reforms in the retirement benefits/ pension sector is to create a robust and efficient pension system that will ensure that

all Ugandans are protected from old age poverty, i.e ensuring a minimum social safety net for the elderly and encourages savings in the economy by building trust and confidence,” Bekabye told the media. He added that the centrality of the reforms is to improve governance and accountability in order to build trust and confidence in the retirement benefits system by putting in place checks and balances.Bekabye said increased volume of funds saved through various scheme would be used to finance Government projects such as infrastructure.

Rwanda targets exports boom in 2017

FROM PAGE 1

quality of tea and coffee which are the second leading export revenue earners in Rwanda next to tourism, the NAEB took on a decision to increase on production and therefore be able to participate in the big export market available. In the last half of 2013, coffee exports earned $50million which was got during the first eleven months of the year. This show a decline of 9.7 per cent that is from $60.9 million and therefore proves that if better production methods are not developed this crop will not go beyond US $55million even this year. Tea production also managed to fall from the $63.9million to $56.5million

during the first eleven months of the same year which is a great decline to the NAEB and the country as a whole. He said that so far 13.650.000 tea seeds plus 8.073.000 coffee seeds had been supplied to farmers who went ahead and planted them, and he believed this was going to double quantity for the next 5 years. NAEB again plans on constructing water dams which will help farmers be able to get water especially during the dry season which has continued to affect agriculture in the country. “We want to construct water dams, build water reservoirs from which farmers can be able to irrigate and draw water for their crops”, noted Ntakiruti-

mana.This board again wants to increase agricultural skills among farmers which will again help produced quality products worth going to international market. By 2017, NAEB hopes to see an increase in coffee earnings to $147million and that of tea to $157million which is a big step and needs clear laid out strategies if the board is to achieve it. The agricultural sector of Rwanda employees over 80% of the population which is mainly in the rural areas and therefore to help people be able to get good income, food and also increase on the country’s gross domestic product, this is why such a sector needs more support which will again improve on peoples’ livelihood.

Burundi builds dam FROM PAGE 1 amount required to build this hydropower dam, procurement procedures and agree on procedures for disbursement. Talking about the issue of improving the management of the energy sector, Dr. Rufyikiri said the government has already taken note of the concerns of development partners in improving the performance of the Authority of Production and Distribution of Water and Electricity (REGIDESO) . He also promised that the government will spare no effort to find a lasting solution to their concerns.

Hero plan Ethiopia assembly plant semblies just as we have in Kenya. Similarly, in Bangladesh also we will have local assembly operations,” Mr Munjal said. The assembly operations in Tanzania and Uganda are being set up, while the one in Bangladesh is expected to become operational later this year. Hero MotoCorp had started assembly operations at Nairobi in Kenya last year. When asked about plans for Colombia, he said, “There is a requirement for us to do manufacturing to certain extent under the local regulations. We are in the process of finalising an

agreement for a joint venture, which should happen in the first quarter of 2014.” While he did not disclose the details of the proposed JV, he said the manufacturing plant in Colombia would be used to cater to other Latin American markets. In July, the company announced foray into the African continent with the launch of its brand and products in Kenya, followed by Burkina Faso and Ivory Coast. In August, Hero announced plans to enter 50 new markets by 2020 with a target of 20 manufacturing facilities across the globe.

Kenya ban takes toll FROM PAGE 1

route are not happy, because their turnover has been severely reduced. Various businesses at the main up-country bus termini in Nairobi appealed to the government to reconsider its position claiming that the was negatively affecting them.Some of the businesses are said the have registered losses in excess of 80 per cent following the ban.Other businesses affected by the ban include, taxi operators, restaurants, retail shops and miraa traders around bus stops in Nairobi and major towns across the country.Operators claim they will soon go out of business if the ban is not lifted. “Our business has gone down by 80 percent and we are now closing earlier since the night travel ban was imposed. We have a room capacity of 20, before the ban we used to be full board every night, now only six rooms are taken,” said one of the affected traders in Nairobi’s downtown. The same complains were registered by Paul Okendo, a taxi driver who operates around Tea Room in Nairobi, who said since the ban he now only goes home with KSh1,000 while before he used to make about KSh3,000 a day. “This travel ban has negatively affected my business,

because the customers I was counting on were night travelers who come from Mombasa in the night and come in the morning now since the ban, I have no customers in the morning, I am now only targeting the travelers who jet in at 6 pm and by then, they always have transport, Its really bad, I might be forced to close shop,” Mwangi explains. He also explained that his customers are complaining of the same. “I used to have customers who used to come in from Kisumu in the morning, we run errands the whole day and then they get to Kisumu the same evening; that has since stopped,” he narrated. Also opposed to the ban is a businessman from Nairobi, who runs two other businesses in Mombasa and Kisumu. He pointed out that the night travel ban has increased expenses in his business operations. “I manage my businesses once too often, work I used to do in two days I do it in four days now, which means more expenses and I use more time and time is money. I think the problem is not buses operating at night, I think the problem is with the police, they do not do their work to keep unroadworthy vehicles out of our roads, now their ineffectiveness has been implicated on us. It’s unfair,” Gilbert Nyende laments.

NEWS

East African Business Week I January 20 - 26 ,2014

Kenya to roll out new link

BRIEFLY Tanzania battles elephant poachers nDAR ES SALAAM-- Tanzania’s deputy tourism minister says the killing of elephants has increased sharply since a controversial anti-poaching operation was suspended. The security forces adopted a shoot-to-kill policy against poachers in October, but it was suspended a month later due to ethical issues. Recently, Deputy Tourism Minister Lazaro Nyalandu said 60 elephants had been “butchered” in November and December compared with only two in October.

More power for EAC in 2017 nBUJUMBURA -- Ten member countries of the Eastern African Power Pool (EAPP) will be interconnected by 2017. The grouping is composed of Burundi, Kenya, Rwanda, Tanzania, Uganda, the Democratic Republic of Congo (DRC), Sudan, Egypt, Ethiopia and Libya. Liberat Mpfumukeko, chairman of the EAPP steering committee said, “We hope that all EAPP member states will be interconnected in terms of energy by 2017, except Egypt which will be interconnected by 2020.”

Kenya increases growth rate nNAIROBI ---The Kenya economy expanded by 4.6 per cent during the nine months period (January-September) compared with 4.4 per cent in 2012. However finance officials have pegged groth lower than earlier stated at 5 percent rather than 5.6 percent. This is due to higher cost of living, some insecurity after the Westgate terrorist attack, depreciation of the shilling exchange rate and widening of the current account deficit as the country imported more than usual.

BY HUMPHREY LILOBA

STRONG : The Uganda shilling climbed in value against the dollar which helped in lowering costs

Uganda lowers electricity rates nKAMPALA, Uganda--The Electricity Regulatory Authority (ERA) last week adjusted power charges in the country, a move they said is aimed at supporting local industries to compete with cheaper imports. While announcing the changes, the ERA ChairpersonRichard Apire said the domestic consumer tariff was reduced by Ush4.1 to Ush520.4 from Ush524.5 per kilo watt hour. He also announced reductions in the commercial consumer tariff from Ush487.6 to Ush474.4 per kilo watt hour. “A reduction in the medium industrial tariff from Ush458.9 to Ush452 per kilo watt hour will be realized starting 16th January 2014. Large industrial tariffs have also been reviewed to 310.4 from 312.8 and a tariff charge has been set for street lights at ush488.8 per kilo watt hour in 2014,” Apire said. However, the Authority increased the lifeline tariff by Ush50 from Ush100 to Ush150. This was seen

Ush524 to Ush520 Domestic consumer cut

Ush487 to Ush474

Commercial consumer cut

23% to 20%

Planned losses cut

by energy analysts as a minimal reduction in the actual tariff and a hike of 50% for the first 15 units. The lifeline tariff that was increased by Ush50 and is paid by every consumer. It is the money (flat tariff) that is paid for the first 15 units. Apire said the authority undertook a detailed analysis of the submissions by the different power companies. He added the government will continue meeting capacity payments to the thermal plants in 2014, which is estimated at Ush59.5b. Thermal power generators Jacobsen and Electromaxx are still generating and supplying about

100MW to the national power grid. “This analysis was driven largely by the government willingness to convert debt obligations to Uganda Electricity Board successor companies of UEGCL, UETCL and UEDCL into zero return equity and debt service will not be financed through the tariff. “That the project costs for Uganda Electricity Transmission Company and Uganda Electricity Generation Company in respect of the development of the transmission projects and development of the 600MW Karuma and 183MW Isimba projects are treated as development costs and shall be funded from the Energy Fund,” he said. He said a favourable exchange rate where the Uganda Shilling appreciated from shs2,688 per dollar in 2013 to shs2,524 in 2014 also drove the tariff adjustment. “The tariff reduction was also driven by the reduction in Umeme Ltd energy distribution losses to a target of 20% from 23% in 2013.,” he said.

nNAIROBI, Kenya- The one-stop shop for lodging import and export documents which has been undergoing piloting for three months will will be rolled out fully from February 1. The roll-out of the Kenya National Electronic Single Window System, also called Kenya TradeNet, is being implemented by state agency Kentrade and aims to transition Kenya from the existing multiple manual systems by various stakeholders in cargo import and export documentation into a single electronic cargo clearance platform. Kentrade said last week the ongoing pilot phase involves nine out of 24 government agencies and 40 private sectors companies involved in cargo clearance processes at the Port of Mombasa, Jomo Kenyatta International Airport and land border posts. “Kenya Tradenet went live on pilot basis and commenced roll-out of the various modules on October 31, 2013 at 23:59hrs as scheduled,” said Kentrade’s corporate communications manager Ann Odero. The October 31st roll out of the system marked the beginning of automation of cargo documentation processes by integrating systems of all key stakeholders involved in cargo clearance such as Kenya Revenue Authority and Kenya Ports Authority among others. “The system is currently processing live transactions with the selected groups during this piloting phase ending January 31 before phased roll-out to all groups and stations,” said Odero. Kentrade was reacting to claims by some clearing agents that the single window system is behind schedule.

Rwanda inflation drops again

MORE TOMATOES: Rwandan shoppers are enjoying lower prices.

nKIGALI, Rwanda--The inflation rate for December decelerated to 3.65 percent from 4.6 percent in November. According to a statement from Ministry of Finance and Economic Planning, the decrease is attributed to the lower prices of food especially vegetables which rose by 4.3 percent compared to 10.5 percent recorded in November 2013. Basically inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. Compared to the same month in

2012, food and non-alcoholic beverages contribution to the overall inflation went down from 2.5 percent in November to 1.5 percent in December 2013 due to the decrease recorded on prices of vegetables. The underlying inflation rate (excluding fresh food and energy) increased by 0.24% if compared to the previous month and increased by 3.76% on annual change. The annual average underlying inflation rate is + 4.0 % in December 2013 up from the previous month 3.9 %. The ‘local goods’ increased by 4.15 percent on annual change with a monthly change of -2.08, while prices

of the imported products increased by 1.64 on annual change with a monthly change of -0.23. Annual Headline Inflation Rates in Tanzania have shown a decreasing pattern from 10.9% in January, 2013 to 5.6% in December, 2013. Uganda Inflation stood at 6.7 percent in December and it was 7.2 percent in Kenya. For Burundi the latest inflation released was 9.7 percent in November 2013. Generally, trend of inflation rates in Tanzania is similar to other neighbouring countries like Uganda and Kenya.

LIVING

East African Business Week I January 20-26, 2014

Mixed bag of banking stars BY EMMA ONYANGO n KAMPALA, UGANDA– Uganda’s financial sector is made up of 24 commercial banks, three credit institutions and four Microfinance Deposittaking Institutions. This would ideally mean that many Ugandans now have bank accounts. However, a 2013 FINSCOPE Survey on Uganda’s financial sector reveals that the number of Ugandans owning bank accounts has actually declined since 2009. The report notes that 47% of people said they did not use formal banking services because they did not have income to save. Savings therefore with formal banks remained low at 19 per cent. It also adds that the total number of people using informal services increased to 74% from 60% in 2009. The low level of using formal institutions (that is commercial banks, MDIs and credit institutions) that the survey reports mirrors the recorded low levels of savings, borrowing and access to formal insurance. An eye opener for instance is that the report states that only about 12 in 1000 adults in Uganda with accounts had a loan with a financial institution in 2013. The number of adults not accessing loans of any kind increased from 55% in 2009 to 65% in 2013. The proportion of adults accessing credit through formal banks remained almost unchanged from 5 per cent in 2009 to 6 per cent in 2013. A shocker is that majority of the people accessing credit received it in form of goods and money (24%), followed by goods only (17%) and then money only (14 per cent). The report also reveals that people mainly borrowed for consumption purposes. “The most cited reason for borrowing was financing education for children (20%), emergencies such as illness (15%), then the need to meet daily expenses (14%),” said Dr. Sarah Sewanyana, the Executive Director Economic Policy Research Center while releasing the findings. The other major issue the report highlights is that the largest proportion of borrowers (73%) took up small loans that did not exceed Ush500,000. Only 14% indicated that they received loans in the range of Ush500,000 and Ush1m while those who received in excess of Ush1m were only 13%. Also among those obtaining credit, a substantial proportion (16%) did not read the terms and conditions. According to analysts, banks are right to exercise

Sector-wide share of lending to the private sector Building and construction Trade and commercial 1.4% 3.1%

Manufacturing 5.3% Personal loans

4.7% 23.9%

5.7% 7.2%

Agriculture Transport and communication

13.4%

20.8%

Business system Community, social and other services

14.1%

Electricity and water Mining and quarrying Other services

“

caution when giving out loans given the fact that Industry Non Performing Loans (NPLs) almost doubled to 4.2% for FY12 from 2.2% for FY11. The analysts had also projected that there would be Mergers and Acquisitions (M & A) in the sector as “there is a likelihood that the smaller commercial banks could be ‘swallowed’ up by the larger banks.” They made their projections based on the increased minimum capital requirement by Bank of Uganda (BoU) to Ush25b that every commercial bank was supposed to have met by March 2013. Indicators from BoU however reveal that the banking sector is currently stable. In 2013 however, savings with formal banks remained low with about 19% of the adults countrywide reporting to have saved with a bank. A report released by African Alliance Uganda last year notes that though the country’s banking sector is very competitive, it is dominated by the ‘Big Five’ commercial banks; Stanbic Bank, Standard Chartered, Barclays Bank, Crane Bank and Centenary Bank. These banks dominate both in terms of the commercial banks’ market share of deposits as well as the commercial banks’ market share of advances. Stanbic Bank commands a

A 2013 FINSCOPE Survey on Uganda’s financial sector reveals that the number of Ugandans owning bank accounts has actually declined since 2009

whopping 20.11% of the entire banking sector’s market share of deposits, followed by Standard Chartered Bank has 16.32%, Barclays Bank 8.11%, Crane Bank at 8.06% while Centenary Bank commands 7.84%. These banks hold over 60% of the industry share of deposits. In terms of the market share of advances, Stanbic Bank again commands a 19.33% share, Standard Chartered Bank 16.87%, Crane Bank 7.78%, Centenary Bank 7.37%, DFCU Bank 7.34% while Barclays Bank commands a 6.44% market share. Furthermore the report shows that the commercial banks lend mostly to Building, Mortgage, Construction and Real Estate (24%), followed by trade (21%), Manufacturing (14%), personal and household loans (13%),

Agriculture (7%) and others. The research breaks Ugandan banks into three tiers, classified according to their assets. Tier I banks include those with assets above Ush1 trillion or simply put the ‘big five’ followed by those in tier II with assets between Ush999bn and Ush500bn, whereas the third tier banks have Ush499bn and below. In terms of market share of assets, the top five banks still remain ahead of the pack; Stanbic Bank with 20.3%, Standard Chartered Bank 16.2%, Barclays Bank 7.8%, Crane Bank’s aggressive expansion plans see them own 7.7% of the total bank assets while Centenary Bank owns 7.4%. The report reveals that in the FY12/13, tier 1 banks performed better than the smaller banks in the industry recording an average ROA (Return on Assets) and ROE (Return on Equity) of 5.3% and 34.6%. Tier II banks recorded a ROA and ROE of 3.3% and 22% respectively. All the new industry entrants are still in the Tier III section. In particular, the West African Banks namely Global Trust Bank, Ecobank and United Bank of Africa (UBA) have continued to struggle registering losses for the fourth year. The Kenyan banks; Equity and Kenya Commercial Bank though categorized in Tier III were in the profit zone for the second

time in their five years of operation. Selected top Kenyan banks recorded an average NIR as a percentage of total income of 35% for FY12 compared to the Uganda commercial banks’ industry average of 28%. Tier I banks were also more competitive when it came to liability costs, considering they hold up to 60% market share of the industry bank deposits. The cost of deposits for the Tier I banks were just 2.9% compared to 6% and 7% for Tier II and Tier III banks respectively. “During times of low liquidity in the industry, group support was one source of accessing cheaper liabilities and avoiding the high cost local funds. The existing large customer deposits with the bigger players availed cheaper deposits,” the report reads. Tier III banks further had higher Cost to Income (CTI) ratios in the sector, estimated to be in the range of 101% “due to the high costs of deposits for most of these banks,” The continued aggressive expansion drive for the Tier III banks as they continue to struggle for market share could also have increased their CTI. The projection is that the big five will have improved deposit taking in the FY2013/14 as the economy improves and the CTI could rise in the medium term as large banks continue to struggle for deposits. However, a major threat to commercial banks is the rise in the non-bank formal service scheme that the FinScope reports which shows a steady from 7% in 2009 to 34% in 2013 because of the coming on board of mobile money services. Some 5.1 million adult Ugandans now use mobile money services to send and receive money. The findings of the FinScope III survey report reveal that in rural areas, people use more informal financial service providers like village saving schemes and mobile money (35%) than the non-bank formal institutions (32%). However, the good news for commercial banks is that the proportion of financially excluded adults in Uganda reduced from 4.3million (or 30% of adults) in 2009 to 2.6million in 2013 (15%). The report goes on to state that in 2013, 20% of the adult population (3.4million) operated an account with a financial institution. The corresponding rate in 2009 was 18% (2.5 million persons). The number of adults having accounts with SACCOs on

the other hand increased by about five fold – from 128,000 in 2009 to 622,000 by 2013. From the report, there is a growing appetite for non-bank formal institutions because among other reasons “One in five adults without a bank account reported the cost of operating an account as the key reason for exclusion.” This therefore means that banks have to find more innovative means of harnessing the power of the non-bank formal institutions so as to remain relevant in the financial sector. Already some banks have merged their ATM transactions to mobile money platforms. But most of these platforms are mainly geared towards withdrawals and not savings.

FACTS Uganda’s GDP is estimated to have grown 5.1% for fiscal year 2012/2013, up from 3.4% in the financial year 2011/12. Growth mainly driven by public investments. Inflationary pressures pose a risk but still within range. Inflation edged up in the short term as a result of drought conditions to 7% just above Central bank target range of 5%. – CBR revised to 12%. – Commercial bank’s weighted average lending rate rose to 23.15% for July-13. Uganda’s financial sector is made up of 24 commercial banks. Two new banks (Bank of India and NC Bank) licensed in FY12. The sector is made up of three credit institutions (CIs) and four Microfinance As at 31st Dec 2012, total commercial bank assets amounted to UGX 15.5trn (USD 6bn) loans and deposits amounted to 7.8trn (USD 3bn) and UGX 10.5trn (USD 4bn) respectively as at 31st Dec 2012. In the FY12, mobile money transfer services continued to register strong growth with customers increasing by 207% to 8.9m in 2012. Local currency deposits make up 70% of total deposits. African Alliance Securities

FINANCE

East African Business Week I January 20 - 26, 2014

Tullow hints of shareholder joy nLONDON, UK--Tullow Oil’s 2013 financial results are expected to deliver strong revenue and gross profit growth and operating cash flow of $1.9bn reflecting growth in production and stable oil and gas prices. Following a successful $650m debut bond issue in November 2013, Tullow’s balance sheet is well-funded and the Group has unutilised debt capacity of $2.4bn. Tullow’s exploration programme added over 200 mmboe to contingent resources in 2013 through important wells in Kenya and Norway from an exploration expenditure of $1 billion. In line with Tullow’s strategy, the exploration campaigns have now added an average of 200 mmboe per year to the Group’s Contingent Resources over the past seven years. However, not all wells were successful and Tullow expects a net write off of approximately $405 million in relation to 2013 exploration and $325 million in relation to prior years’ exploration expenditure. In West Africa, Jubilee field production averaged approximately 100,000 bopd for 2013. The field exited 2013 with a production rate of

WELL FUNDED: In 2013, Tullow Oil reported some notable successes including the discovery of new potentially lucrative wells in northern Kenya. approximately 100,000 bopd following recent issues with the FPSO’s water injection system which have now been resolved. As previously disclosed, the Ghana National Gas Company’s onshore gas processing plant will not be ready to receive Jubilee gas until 2H 2014. The completion of a third gas injection well in Q4 2013 brought only limited

relief and further gas disposal options are being discussed with the authorities in Ghana. With resolution of these issues, Tullow estimates that Jubilee field production will average 100,000 bopd for 2014. These delays, which are not within Tullow’s control, do not affect the recoverable reserves of the field. Furthermore, Tullow is confident that, once the gas

processing facilities onshore are completed, the Jubilee field will be able to produce to its full potential given the field’s well capacity and the strong performance of both the reservoir and the FPSO to date. In Mauritania, the Frégate-1 well is expected to reach total depth of approximately 5,800 metres by the end of January 2014. In East Africa, Tullow has

today separately announced oil discoveries at Amosing-1 and Ewoi-1 onshore Kenya and increased discovered resources for the basin to over 600mmbo. The announcement also outlines the current ambition of the Government of Kenya and partners to reach project sanction in the period 2015/16. There have been a number of positive announcements

from the governments of Uganda and Kenya regarding joint initiatives for a crude oil pipeline to the Indian Ocean. Progress is also being made with the Government of Uganda on approval for field development plans. In Kenya and Ethiopia, Tullow will continue exploration, appraisal and testing activities Agencies

Extension of deadline for submission of “Expression of Interest/Tea Sites Development” Following RDB’s call for expression of interest regarding development of new tea sites, which was published in the last week of November 2013 in The EastAfrican; East African Business Week; The NewTimes; Imvaho Nshya and posted on the websites of RDB, MINAGRI and NAEB, RDB is pleased to inform the public that the initial deadline of December 27th, 2013 has been extended to Friday, February 07th, 2014 at 12pm Local Time. The same “Call for Expression of Interest/Tea Sites Development” document is here below and can be found on the websites above mentioned: 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 Vision 2020, the EDPRS II, the Strategic Plan for Agriculture Transformation III and the Tea Strategy. The Government of Rwanda aims at increasing the area under tea cultivation by adding an extra 10,000 Hectares on the following five (5) new sites through private sector investments. Site

Altitude

District

Industrial bloc (Ha)

Planned area for out growers (Ha)

Fire wood (Ha)

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

1,944 m

Nyaruguru 494

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; • Favourable climatic conditions; • High altitude of 1,800 – 2,700 m conducive for high quality tea growing; • Availability of labour; • Conductive business environment. Investment on the five (5) 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. Develop Industrial Blocks; 2. Support out growers in tea plantations; 3. Set up (a) Tea Factory (ies) as well as associated infrastructure;

The Government of Rwanda will: 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. 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 required at this stage. The shortlisted potential investors will be given detailed project documents at the next 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: “Expression of Interest: Tea Sites” Rwanda Development Board (RDB)/Agribusiness Department, Corner Blvd de l’Umuganda (Airport Road) & Nyarutarama Road P.O. Box 6239, Gishushu, Kigali, Rwanda EOIs can also be submitted to the following email address: agriculture@rdb.rw Deadline for submission of EOIs is Friday, February 7th, 2014 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

EDITORIAL

East African Business Week I January 20- 26, 2014

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Best to postpone S. Sudan EAC bid

his month an East African Community (EAC) negotiating team was supposed to be in Juba to verify with various senior officials South Sudan’s application to join the economic bloc. Considering what is happening in South Sudan of late, all that seems unimportant. It is difficult to negotiate with a divided country anyway. This does not mean, however, that it can never happen. Simply that all involved should shelve the South Sudan application until the country is stable enough to collectively know what it wants. A couple of months ago, there were suggestions among South Sudan civil society to hold a referendum on EAC membership. Although there is nothing wrong with the proposal, it is vital that the South Sudanese realise their best economic interests lie squarely with joining the EAC. EAC leaders also have the responsibility to show that the bloc really can deliver prosperity. They should begin by highlighting the regional track record in terms of improving trade and investment figures especially after the Customs Union took off, and its recently robust figures despite the effects of the 2008 global economic slowdown. Today the EAC is steadily working at breaking down non-tariff barriers to make the Common Market a truely seamless entity. According to the Doing Business Report 2012, the EAC was rated as one of the fastest growing and reforming economies in the world. Intra-EAC trade went up by $1 billion in 2012 from the $4.5 billion recorded in 2011. Current total GDP is about $85 billion. After some pushing by President Barack Obama, there is a new United States-EAC Trade and Investment Partnership that centres on a regional investment treaty that is expected to attract more American investors to the region. As things now stand, the EAC is the United States 80th largest trading partner according to figures from the US Trade Representative office. The ranking seems lowly until you realise the significance of having even a toenail in the US market. Why should South Sudan miss out on these exciting prospects? The EAC is far from perfect. The bickering among member states is far from over. Indeed, there are times when one is brought close to despair when national self-interests supercede the basic reason for signing the EAC Treaty in the first place. However the idea of taking on the the world together rather than alone still carries weight. A look at South Sudan’s surroundings is food for thought. In terms of diplomatic relations, things are still tense with the north. The Central African Republic is caught up in a cycle of instability with various warloads suddenly bursting onto the scene before being replaced by another. Not much economic growth there. To the east, Ethiopia has already expressed strong willingness to apply for EAC membership. Mind you Ethiopia, along with Angola are considered the fastest growing economies in sub-Saharan Africa so that intention also speaks for itself. The DRC and Somalia have shown interest too. The final argument is that South Sudan’s trade and cultural links are skewed towards the EAC, specifically Kenya and Uganda. The two countries are also South Sudan’s top business partners. The idea of all for one and one for all, may sound romantic. But the fact is, economic integration is all about survival. South Sudan cannot survive alone!

FOOD SOVEREIGNTY: Experts say a sustainable and reliable seeds supply chain is needed to ensure food security.

Tanzania in seeds deficit BY LEONARD MAGOMBA

nDAR ES SALAAM, Tanzania--Efforts to adopt new agricultural technologies in Tanzania has caused a shortage of seeds amounting to 30,000 metric tonnes. “This is almost half of the actual demand which is needed by farmers,” George Mandepo, Principal Legal Officer in the Ministry of Agriculture Food, Security and Cooperatives said recently. He was presenting a paper at the ESAFF Seed Stakeholder’s workshop. Mandepo was presenting a paper titled, ‘The regulatory framework for seed industry in Tanzania and position of smallholder farmers.’ He said seed produced locally is only 30,000 metric tonnes while actual demand is 60,000 metric tonnes. The scarcity has also forced farmers to stay away from using improved seeds. He said more than 90% of farmers use seeds saved over from the last harvest. He said the government is committed to ensuring putting in place both a policy and legally conducive environment for the development of seed industry. This includes attracting smallholder farmers to the industry. “It is estimated that the potential demand for improved seed in Tanzania is about 120,000 metric tonnes per annum while the actual demand is estimated at

60,000 metric tonnes per annum,” he said. Only 28,600 metric tonnes were made available to farmers through for-

“

The demand is 60,000 tonnes, but only 30,000 is available

mal seed system in 2011/2012 and out of this, 14,000 metric tonnes of seeds were produced locally and the rest of the demand made up of imports or use of farm saved seeds. However, availability of seeds from the private sector has increased in the recent past. This mostly comes from family or community production systems (informal seed system). According to Mussa Billegeya, the Programme Officer of the Eastern and Southern Africa small scale farmers’ Forum (ESSAF), not much work has been done by researchers to collect, evaluate and characterise these local varieties. There are various reasons behind this. Agriculture occupies a very important place in the lives of Tanzanians as well as the national economy. It is estimated that the country can be fully self-sufficient in food during

good years and a net exporter of cereals if there is a reasonable environment for farmers including reliable and sustainable supply of seeds. “It should be noted that seeds are not only a strong symbol for food sovereignty and biodiversity, but also one of the important elements to strengthen small scale farming communities,” Billegeya said. In Tanzania there are two types of seed systems: the formal system, which is market-oriented and is developed by the public and/or private sectors, and the family or community production system which is based mainly on seed self-provisioning exchanges and gifts among neighbours, and the informal market. The latter is a result of many years of farmers’ selection and is rich in agribiodiversity. Agribiodiversity results from the interaction between the environment, genetic resources and the management systems and practices used by culturally diverse peoples resulting in the different ways land and water resources are used for production. Tanzania has a rich agribiodiversity which has not been tapped by researchers. Farmers are the owners of the agribiodiversity and its associated local knowledge. Unfortunately agricultural researchers have been trapped in the formal seed system and have forgotten the informal traditional varieties.

LETTERS & PERSPECTIVE East African Business Week I January 20 - 26, 2014

South Sudan risks final Sino exit

PERSPECTIVE

Image of the week

Bank renews graft fight

Editor, Your editorial on the South Sudan crisis largely wrapped up all the broad issues except one. You did mention the Chinese investment in the South Sudan oil industry. I am sure the Chinese must be fed up with all this confusion. Not long ago, they had to abandon their operations due to the disagreements between Sudan and South Sudan over Abyei. Now this new crisis also means added expenditure and not to mention the overall disruption of their production. Evacuating workers and paying for accommodation in Uganda is not cheap. I wonder whether the Chinese will prefer to cut their losses and not bother to go back to resume oil drilling. This would be the biggest blow to the South Sudan economy.

DARE ME TO CHASE YOU: Mclaren, the makers of those screaming F1 racing car engines, have lent the Midlands police in the UK this Spyder 12C to chase after ‘fast and furious’ fans who do not respect speed limits while terrorising other motorists on major motorways. From a stand still, the $445,000 Spyder gets to 100kph in three seconds and tops out at 320 kph.

Mzee Wamara Hoima, Uganda

New Kenya rail project may lock out local content Editor, I disagree with some points made by one of your readers referring to halting speculation about the proposed standard guage railway. They say beggars cannot be choosers and this is a classic case. Probably the population of Chinese in Kenya will go up somewhat during the period of the project. I am sure all of us appreciate the financial gesture made by the Chinese government, but one must spare a thought for

our local contractors. How can we ensure that local content is respected? How does one expect local technical capacity to grow, if they are locked out of such huge projects? Secondly, I know for a fact that in China itself, foreign contractors and companies are advised to share technical know-how with local Chinese if they want future contracts. I hope our government has an understanding with the Chinese over such issues. A situation of even having to import cement from China creates resenment

among large segments of local industry. The idea of just clapping our hands, because the Chinese will build this new railway fails to appreciate the fact that this is not a gift! Therefore it would be better for the government to specify that a certain pecentage of sub-contracting be done by Kenyan firms. This is a huge project and I am sure there is plenty to go around! Wilson Murgor Kitale, Kenya

When will common procurement become EAC reality? Editor, I am fortunate to have experienced the best days of the first East African Community. So I am not writing out of ignorance when I say we are no nowhere even close to it after 15 years since the revival. As we move supposedly ever closer together, I see some problems that are not given enough attention. The Arusha Secretariat must be given more clout in terms of cross-border implementation. Probably the most important one, is that governments are

big buyers in the marketplace. For obvious reasons, I will put Burundi aside, but public procurement in the four other countries is a very sensitive issue. There are many vested interests. This raises the question are the relavant governments moving towards a common procurement policy fast enough to accommodate the other efforts being made to integrate? There is talk of a common passport, but how will it be tendered? Lets have more clarity and less hyperbole. Fred Wamau Nakuru, Kenya

Tanzania cannot grow with unreliable electricity Editor, We hope Felchemi Mramba, the acting TANESCO, boss is following up on all those projects mentioned intended to rid Tanzania of power headaches. So many small businesses cannot manage because of

unreliable power and this means our overhead costs are unpredictable. Running a small generator may look simple but paying for the fuel is painful. Money that should have been used for other inputs now ends up in buying fuel or in other cases hiring a generator itself.

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

The other big disadvantage is that productivity falls. The Tanzanian economy cannot hope to achieve faster growth unless we get the electricity problem solved as soon as possible. I agree there were improvements last year, but only for

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

n Telephone +256 41 4531345/7 or +256 312 275141 n Fax +256414531346

some people. We should have a war against blackouts! A country that is sitting next to huge pools of gas should not have these problems. Good luck Mr. Mramba! James Tambu Dodoma, Tanzania

nWASHINGTON, USA--World Bank President Jim Yong Kim said recently the fight against corruption would become a major responsibility of a new good governance department at the bank as he called graft in the developing world ‘Public Enemy Number One’. Kim is creating the new division as part of a major reorganisation at the development lending institution - its first in almost two decades. One of 14 so-called global practices, it will have about 800 specialists in areas such as rule of law, financial and state management, revenue collection and public procurement practices who will provide expert advice to countries on how to improve their institutional structures. Anti-corruption will be a major responsibility of this new global practice, Kim said. “Let’s not mince words: in the developing world, corruption is Public Enemy Number 1. We will never tolerate corruption and I pledge to do all in our power to build upon our strong fight against it,” Kim said at a World Bank event called Speak Up Against Corruption. “Every dollar that a corrupt official or a corrupt business person puts in their pocket is a dollar stolen from a pregnant woman who needs health care; or a boy who deserves education; or from communities that need water, roads and schools,” he added. Exactly how the anticorruption agenda will be implemented, however, is unclear. More than a dozen different offices within the World Bank conduct some type of anti-corruption work and they are expected to be merged into the new structure. Their responsibilities have yet to be determined. First a director for the global division must be named and World Bank staff said there is an external search for a candidate of high international stature who can bring fresh ideas and leadership. But the upheaval at the World Bank is immense as the 14 new global practices are formed, World Bank veterans are leaving or must re-apply for their jobs and budget cuts take effect this year. Kim’s aim is to make the World Bank more agile, sharing best practice across different regions and sectors instead of being country-focused and to expand its advisory role rather than focus on lending He wants to work in partnership with countries, developing programmes to end poverty and share prosperity, which the government would own and implement. Under the new plan, the fraud, bribery and corruption investigations now handled by the Integrity Vice Presidency will continue. But its prevention work around public contracts - such as training World Bank staff on how to detect and deter corruption in World Bank projects and to improve control and compliance - probably will move into the new global practice, said Steve Zimmerman, director of operations in the integrity unit. “This structure will elevate the significance of governance and anti-corruption as a subset of governance,” Zimmerman said of the change.

“

We will never tolerate this Public Enemy Number One

Nairobi +254 20829062 Or email them to Dar-es-Salaam +255 222460820 letters @busiweek.com or Kigali +250 252504165 editor@busiweek.com Bujumbura +257 79 (76) 918854

BRIEFLY KCB confident on South Sudan peace nNAIROBI -- Kenya’s biggest commercial bank, KCB said they are hopeful the situation in South Sudan will stabalise in the near future and there was no need to talk about an exit strategy. KCB has 22 branches in the country. KCB Board chairperson, Charity Muya-Ngaruiya, said last week, “We are confident that the process will result in a settlement that will allow us to resume our investment programme, and help us contribute in the development of the country,” she said.

New customs system for Tz on March 1st nDAR ES SALAAM --Begining March 1st, the new Tanzania Customs Integrated Systems (TANCIS) comes into operation. According to Tanzania Revenue Authority sources, TANCIS will eliminate the weaknesses of the current Asycuda ++ system, which many people in the logistics industry found cumbersome and not user-friendly. TANCIS has been developed over four years and it has involved consultations with all players in the clearance and forwarding business, together with the Bank of Tanzania.

Lake Victoria Mining pass environment test DAR ES SALAAM -- Lake Victoria Mining last week announced an environmental impact assessment certificate has been approved for the firm’s Kinyambwiga gold project in northern Tanzania. “We are extremely excited with receiving approval from NEMC allowing us to proceed to the next step of applying for our Mining License. This will be the final step of Government approval that, once granted, will allow us to move the Kinyambwiga Gold Project forward into active open pit mining project,” David Kalenuik, Lake Victoria President and CEO said.

NEWS

East African Business Week I January 20 - 26, 2014

Tanzania expecting Norway mayors

Rwandans assured on Single Territory

BY ANDREW ZABLON

BY AGNES BATETA nKIGALI - Rwandan business people have been assured that the new Single Customs Territory (SCT) policy will bring down barriers to the free flow of goods across the region while also saving them time and money. The East African Community on the January 1, 2014 implemented the Single Customs Territory which is aimed at cutting down the costs of doing business within the region. The Deputy Director General, Customs and Excise Commissioner in the Rwanda Revenue Authority, Richard Tusabe said non-tariff barriers would be reduced. Responding to a query about the benefits of the new policy during a briefing last week, he said cargo destined for Rwanda will be weighed once. “Time will be saved, costs reduced which will promote business in the country hence help the country develop even more,” Tusabe said. This new initiative involves the five countries that is Kenya, Uganda, Tanzania, Rwanda, and Burundi, and all are expected to deploy customs officials to all points of entry into the community in order to collect the relative duty. Sources say the new measures will cut transit costs by between 15% and 30%. Tusabe added that the number of declarations procedures would also be slashed to one from the previous since this was going to be done when goods the enter country. “Verification of high risk imports to Rwanda and Uganda shall be done at Mombasa, while low risk consignments shall be finalized at the port and be delivered directly to importers,” Tusabe said. Gilbert Langat, the Chief Executive of Kenya Shippers’ Council

THANK YOU: Less time at the border because of the system.

January 1st 2014 Implementation date

15% to 30%

Estimated savings

10 days

Mombasa to Kigali said Single Customs will enhance trade within the region. According to RRA, the cost of clearance, excluding transport, of 20-feet containers will reduce by 50% from $383 to $193.With the commencement

date agreed upon by the heads of state for the five countries, Uganda and Rwanda deployed staff to Mombasa and the oil installations in Western Kenya. Langat said that a return journey transporting cargo from Mombasa to Kigali will now be taking 10 days compared to 20 days before. He said the new system will also help eliminate the many middlemen or ‘brokers’ who have been harrassing importers in the guise of being ‘helpful’.

nMWANZA, Tanzania--The mayors of Hammerfest and Sandnessjoen towns in Norway will pay a visit to Tanzania on a so-called ‘Gas Economy’ mission. The visit is scheduled for 3-7 February, 2014. The two, Bard Anders Lango (Sandnessjoen) and Alf E. Jakobson (Hammerfest) will visit to the towns/ regions of Lindi and Mtwara in Southern Tanzania. This where the biggest pockets of gas have been discovered off the coast of Tanzania. According to the Minister for Energy and Minerals Prof Sospeter Muhongo, the two mayors will hold talks with their counterparts in the two regions. They will also have discussions with the local communities. “The main objective of the visit is to exchange views on gas economy and seeing the possibility of support from the experience of Norwegian cities,” Prof Muhongo told East African Business Week last week. He said the regional leadership of Lindi and Mtwara would also visit the two Norwegian cities on a date later to be announced. The two Norwegian towns agreed in October, 2013 to be development partners with Lindi and Mtwara. This was a result of a delegation led by Prof Muhongo last October. While in Norway, the mayor of Sandfnesjoen Bard Anders Lango told the Tanzanian delegation that to a large extent Sandnessjoen is run by revenue collected from gas and oil and that, 22% of the oil revenue is used in the sectors of education and health.

Malaysian oil firm enters Uganda BY PAUL TENTENA

STANDARDS: A partnership to break into regional market.

nKAMPALA, Uganda--Hyrax Oil, a Malaysian based oil lubricant manufacturer last week appointed Uganda’s Habib Oil, the sole distributor of Hyrax oil in East Africa. Habib Oil said this will ensure the supply of quality lubricants in the region. Habib Oil Chairman Hajji Habib Kagimu said their partnership with Hyrax Oil is not only bringing their products into the market but improving the livelihood of the people of Uganda.

Kagimu said on average, a commuter taxi operator changes engine oils every seven days. He said this can be avoided if one used the Hyrax products where one can change oil after 20 days. “This new product is an eye-opener to all Ugandans who ignore quality and go for cheap things. This means that our local market will now enjoy top quality performances,” he said/ “Cheap things are expensive in the long run. One will require changing other oils three times before changing the Hyrax oil,” Kagimu said during the partnership announcement last week.

Kagimu said the Hyrax oil product is guaranteed to reduce drain interval (oil changes), save fuel consumption, and in due course increase productivity. Hyrax Oil Group Managing Director Datuk Hazimah Zainuddin said East Africa is still a virgin territory as far as quality oil supply is concerned. “Habib Oil is already an established player on the Ugandan market and their standards met our specifications as per our due diligence process. “It is also with this particular partnership that we intend to expand our foot print in East Africa to Rwanda and Burundi,” Zainuddin said.

TENDERS

East African Business Week I January 20-26 , 2014

Uganda National Roads Authority

NATIONAL B U REAU OF STATISTICS

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

OPEN DOMESTIC B IDDING INVITATION TO B ID FOR Framew ork Contract for Supply and Delivery of Protective W ear for th ree y ears Lots 1 & 2 . Procurement Reference number: NRA/S PPLIES/2013 14/00020/01 02 1. The U g anda National Roads Auth ority has allocated funds to be used for the acquisition of protective Wear for three years Lots 1 2 2. The Entity invites sealed bids from eligible bidders for the Supply and Delivery of Protective W ear for th ree y ears Lots 1 & 2 .

Lot No.

Lot Name

B id secuh rity req uired ( U g anda sh illing s)

Protective Wear

700,000

Safety Equipment

900,00

Or its eq uivalent in any oth er freely convertible international currency . Th e sealed bids must be clearly mark ed w ith above subj ect and procurement reference number. Late bids shall be rejected . Bids will be opened in the presence of the bidders’ representatives who choose to attend at the address below in No. 8(d) at 1 1 :3 0 a. m on Friday , 2 1 st February 2 0 1 4 .

3. Bidding will be conducted in accordance with dthe open domestic bidding procedures contained in the public procurement and Disposal of Public Assets Act, 2003 and open to all bidders. 4. Interested eligible bidders may obtain further information and inspect the bidding documents at the address given below at 8(a) from 1 0 :0 0 a. m to 4 :0 0 p. m during w ork ing day s from monday s to Friday s. 5. The Bidding Documents in Eng lish may be ,purchased by interested bidders on the submission of a written application to the address below in No. 8 ( b) and upon payment of a non refundable fee of U G X 5 0 , 0 0 0 ( U g anda Sh illing s Fifty Th ousand Only ) per lot. The method of payment will be cash to the NRA Cashier on fourth oor , Room No. 4B1. it is upon the presentation of the original receipt and the application letter that the bidder will be issued the bidding documents. 6. Eligible bidders may bid for one or more Lots (contracts) However , to qualify for award of more than one lot(contract) subject to price comparison, such bidders must meet aggregate financial capability and experience requirements defined in the bidding document. The aggregate requirement is the sum of the individual lot (contract) requirements. 7. Bids must be delivered to the address below in 8 ( c) at or before 1 1 :0 0 a. m on 2 1 st February 2 0 1 4 . All bids must be accompanied by abis security in the amounts listed below;

8. (a) Documents may be inspected at: Procurement and Disposal U nit U g anda National Roads Auth ority G round Floor, Room No. G A3 Plot 5 , Lourdel Road, Nak asero, K ampala, U g anda Email: procurement@unra.go.ug (b) Documents will be issue from: Same as in No. 8 ( a) above (c) Address bids must be delivered to: Same as in No. 8 ( a) above (d) Address of bid opening: Same as in No. 8 (a) above but in PD Boardroom, Ground oor, Room No. GA4 9. Th e planned procurement sch edule ( subj ect to ch ang es) is as follow s Activity a b

Date

Publish bid notice

16th anuary, 2014

Bid closing date

21st February, 2014

Evaluation process

15th March, 2014

Display and communication of best evaluated bidder notice

30th April,2014

Contract award and Signature

30th May, 2014

Executive Director

Tender Notice ( TN) TITLE: SU PPLY AND DELIVERY OF LAB ORATORY COMMODITIES Nº 0 0 1 /IOCB /2 0 1 3 - 2 0 1 4 /NRL/ MOH / MPPD The Rw anda B iomedical Centre/Medical Procurement and Production Division ( RB C/MPPD (hereinafter called ’Client”) funded by NRL/Government budget towards the cost of Laboratory commodities. The Client intends to apply a portion of the funds to eligible payments under the contract for which this Bidding Document is issued. 1. The Rw anda B iomedical Centre/Medical Procurement and Production Division ( RB C/ MPPD invites qualified bidders to submit bids for the supply of S PPL AND DELI ER OF LABORATOR REAGENTS AND CONS MABLES as indicated in detail in the statement of Requirements. 2. Bidding Documents in both French and English may be obtained from the reception of RBC/MPPD, Gasabo District, igali City, P.O. Box 640 – igali – Rwanda. Tel. ( 250) 252 580156/580157 – Fax. 0250 252 582725; Email: camerwa@gmail.com; upon presentation of proof payment of a non refundable fee of Ten th ousand Rw andan francs ( 1 0 , 0 0 0 . 0 0 RW F) or its equivalent in freely convertible currency to Account N 010 0025133 01 31/RWF (Name of A/C: RBC/MPDD) or at Account number 010 0025133 03 25/ SD (Name of A/C: CAMERWA) opened at I M Bank (Rwanda) Limited (Ex Rwanda Commercial Bank), P.O. Box 354 igali, RWANDA, Tel.: 575591 – Fax 573395 – Email: bcr@rwanda1.com/ customerservice@ bcr.co.rw. 3. Bidding Documents may be obtained on any working day from the RBC/MPPD secretariat at the above address from 08:30 to 16:30 hours, Monday to Friday, except on public holidays, up to 5 days prior bid submission date. The softcopy of price schedule will be available too. 4. All bids shall be accompanied by a Bid Security equivalent to 9 0 0 , 0 0 0 . 0 0 rw f, which will be verified by the bank correspondent in Rwanda. 5. For suppliers not registered in Rwanda, a withholding tax of fifteen percent (15 ) shall be levied on the sum of invoice payment. For suppliers registered in Rwanda, a withholding tax of three percent (3 ) shall be retained on the payment. 6. Enquiries regarding this tender may be addressed to Head of Division, RBC/MPPD, Gasabo District, igali City, P.O. Box 640 –

igali – Rwanda. Tel. ( 250) 252 580156/580157 – Fax. 0250 252 582725; Email: camerwa@gmail.com no less than 21 days prior the day of submission and opening. 7. Well printed bids, properly bound and presented in two (2) copies and one (1) softcopy of price schedule in 2 CDs recordable, and one original must reach the reception of MPPD at the address mentioned above Not later than 13 / 03../2014 at 9 am o’clock (7 am GMT). Late bids will be rejected. Bids will be opened at 10 am o’clock (8 am GMT), one (1) hour after bid submission deadline in the presence of bidders or their representatives who choose to attend at : MEDICAL PROCU REMENT AND PRODU CTION DIVISION ( MPD) G asabo District, K ig ali City P. O. B ox 6 4 0 – K ig ali - Rw anda Tel. ( + 2 5 0 ) 5 8 0 1 5 6 /5 7 – Fax: 0 2 5 0 5 8 2 7 2 5 – Email: camerw a@ g mail. com W ebsite: w w w . rbc. g ov. rw 8. The Outer envelope should clearly indicate the tender name and title 9. Bidding will be conducted in accordance with the Law N 12/2007 of 27/03/2007 on Public Procurement. 10.Requirement for compliance are: bid submission form, price schedule and bid security for evaluation. Post qualification requirements for award: confirmation of bidding documents from bidders and products. Done at igali on 13 anuary 2014.

REQ U EST FOR EXPRESSIONS OF INTEREST CONSU LTING SERVICES TANZ ANIA STATISTICAL MASTER PLAN ( TSMP) Credit No. : 4 8 9 5 - TZ Assig nment Title: Consultancy Service for Civil Reg istration Sy stem Adj ustment and Service Level Ag reement in Tanz ania Reference No. : TSMP/NB S/C/1 2

1.The Government of Tan ania has received financing from the World Bank toward the cost of the Tan ania Statistical Master Plan (TSMP), and intends to apply part of the proceeds for consulting services. The consulting services (“the Services”) include providing assistance to the TSMP project implementing agencies through Consultancy Service for Civil Registration System Adjustment and Service Level Agreement in Tan ania. The assignment is expected to last for Twenty Four Months 2.The National Bureau of Statistics now invites eligible Consultants (“Consultants”) to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services. The interested consultants must provide information indicating that they are qualified to perform the services in the following order (Detailed Consultant Profile, Experience and Description of similar assignments performed and the Available skills among staff). 3.The attention of interested Consultants is drawn to paragraph 1.9 of the World Bank’s Guidelines: Selection and Employment of Consultants by World Bank Borrowers (published in May 2004 and revised in October 2006) (“Consultant Guidelines”), setting forth the World Bank’s policy on con ict of interest. 4.A Consultant will be selected in accordance with the Selection Based on Consultants ualifications method set out in the Consultant Guidelines. 5.Terms of References and further information can be obtained at the address below during office hours, i.e., from 9.00 to 15:30 hours Dar es Salaam time Monday to Friday inclusive, except public holidays. 6.Expressions of interest must be delivered in a written form to the address below (in person, or by mail) by anuary 28th, 2014 at 10:00am. National Bureau of Statistics Attn: Secretary, NBS Tender Board, P.O. Box 796 Dar es Salaam, Tanzania Fax:+255 (0) 22-2130852 E-mail: dg@nbs.go.tz

Director G eneral National B ureau of Statistics,

NEWS

East African Business Week I January 20 - 26, 2014

Google launches package for ISPs

BRIEFLY ARM waiting for South African nod for cement nNAIROBI -- ARM Cement is considering selling Eurobonds to help fund a planned $300 million expansion programme, including setting up a plant in South Africa. ARM managing director, Pradeep Paunrana, however clarified last week management has not yet received the directors’ approval for the South African project, He said, “We have not approved any budget or plans at our board yet.” ARM already owns 70% of Mafikeng Cement.

French giant may buy Brookside stake nNAIROBI -- Groupe Danone, a French food-products multinational corporation, is reportedly in talks with Kenyan dairy firm, Brookside. Both parties have kept mum, but sources say any deal would favour Brookside considering Danone’s present appetite for new acquisitions. The $30 billion French conglomerate is reportedly preparing to cash in on the emerging middle class market in sub-Saharan Africa. Brookside has alreay made inroads into the regional market.

Tanzanians protest reviving trade license DAR ES SALAAM -Members of the Tanzania Chamber of Commerce, Industries and Agriculture (TCCIA) last week protested a government plan to re-introduce the annual business license. The license was abolished almost a de ade ago, but due to budgetary demands, the government wants to bring it back. Peter Chisawillo, the TCCIA President, told a news conference last week, the license not only increased the costs of doing business, but also went against a government directive to reduce official bureaucracy.

BY WINNIE MANDELA

BIGGEST EMPLOYER: As a policy, Barrick locally sources many of the inputs used for its operations.

Despite loss Barrick sticks with Tanzania BY KENAN KALAGHO

nDAR ES SALAAM, African Barrick Gold (ABG) suffered a loss of $110 million (about Tsh179 billion) last year. This is despite creating 65,000 jobs in Tanzania with an investment of over $2 billion (over Tsh3trillion) in Tanzania economy. ABG is currently the largest gold producer in Tanzania with three operational gold mines that includes Bulyanhulu, North Mara and Buzwagi and contributed over $980 million (Tsh1.5 trillion) to the Tanzania economy in 2013 that accounted for 3% of the country’s GDP. The ABG Chief Executive Officer Brad Gordon told East African Business Week in Dar es Salaam recently the loss was due to fluctuations of gold prices in the world market while at the same time contributing around $223 million (Tsh358 billion) in direct taxes. However, Gordon said ABG was still stable with a cash position

$110 million

Losses from price fluctuations

$980 million (2013) Contribution to economy

$445 million

Planned expenditure

of $289 million (Tsh464billion) as of September 2013 and the employment opportunities it offers and all its undertakings in the mining sectors gives it a position of being the largest private importer in the country. He said that around $514 million (Tsh826 billion) worth of goods and services were locally sourced in 2013 which represented 32% of the total spent procurement chain. “For a period of 13 years we have been in operational in the country, we have managed to become one of the major employers,” Gordon said. He said currently 93% of all the workers at ABG were Tanzanian. He said ABG expects to start its production at the Buzwagi mine in five

years and position itself as the most efficient miner in Africa after being stalled for a period. ABG, the largest foreign direct investor in Tanzania, is also planning to inject an additional $445 million (Tsh715billion) this year compared to $700 million (Tsh1.1 billion) additional investment it made in 2012. Gordon said ABG is implementing its investments in making sure that it comes closer to the community by investing $14 million (Tsh22 million) per annum in Maendeleo Fund in the 50 projects of clean water, infrastructure, education and others. The mining industry contributes hugely to the country’s GDP through employment, supplier contracts, investments, payment of government taxes and multiplier effects from business linkages to other sectors. In 2012 the sector recorded an impressive growth rate of 7.8% in 2012, up from just 2.2% in 2011.

n KAMPALA, UgandaGoogle has launched Project Link to enable suppliers access high speed and reliable internet connections without investing heavily in upgrading base stations. According to the US-based giant of the seven billion people alive today, only 2.7 billion are connected to the Internet. Google says, ‘For many who are online, inadequate or nonexistent infrastructure offers slow and unreliable connections’. With Google Project Link, internet Service Providers (ISPs) and mobile phone network operators will pay lower overhead expenses for doing business. This initiative will also enable local Internet service providers to concentrate on coming up with more innovative products and connect more people to a faster and reliable Internet, which will in turn boost internet connectivity in the country. The high capacity fibre network will provide a link between existing local networks to the undersea cables that pipe internet between continents, in a sustainable manner. According to Google, the Project Link will connect the ISPs long-distance fibre lines, equipping them with near-unlimited capacity to build and expand services to Ugandans. They will be charged a fee. The firm has also built quality infrastructure between Africa’s undersea cables to its Project Link for greater speed and capacity for the latest and greatest of the web. This will avail users with the best network coverage and high-quality services.

World Bank cautions on evictions BY BAZ WAISWA nKAMPALA, Uganda --- Resettlement of people who have lost their land must be humane and should target restoration of livelihood, World Bank experts. This was the gist of a recent five-day course on Management of Land Acquisition, Resettlement and Rehabilitation (MLARR) in Kampala. Worldwide, land remains a contentious issue. It requires proper national and international laws to address the conflicts that arise including involuntary displacement of people and the eventual resettlement.

Such displacements can be caused by conflicts like wars, disasters like earthquake and development projects which are usually backed by government for purposes of infrastructure developments like roads, dams and so on. This involuntary movement and change of address often causes loss of shelter, assets, life, cultural heritage, business establishments, access to social services and might lead to violation of human rights and social exclusion. The Ugandan government, together with the World Bank in Partnership with the Social Economic Empowerment Consortium (SEEC) organised the course to empower people associ-

ated with involuntary resettlement of people with basic skills and principles in regard to the matter. Some of the participants came from Kenya, Tanzania, Burundi and Rwanda. They were trained in best land acquisition practices and challenges associated with land for resettlement. Gibwa Kajubi, a Senior Social Development Specialist at World Bank in Nairobi said, “We wanted these people to be able to identify the needs of people, manage compensation and have skills to manage the process of moving and ensuring that livelihood is restored,” She said forceful eviction should always be the last option.

DESPAIR: Experts say resettlement can be non-violent.

TENDERS

East African Business Week I January 20-26, 2014

NATIONAL B U REAU OF STATISTICS

REQ U EST FOR EXPRESSIONS OF INTEREST INDIVIDU AL CONSU LTING SERVICES

TANZ ANIA STATISTICAL MASTER PLAN ( TSMP) Credit No. : 4 8 9 5 - TZ

Assig nment Title: Tech nical Assistance to Populate B asic Enumeration Areas Sh ape Files w ith Socio – Economic Data

Assig nment Title: Consultancy Services to Facilitate Conducting Midterm Review

Reference No. : TSMP/NB S/C/2 5

Reference No. : TSMP/NB S/C/3 4

The consulting services (“the Services”) include providing assistance to the TSMP project implementing agencies through Tech nical Assistance to Populate B asic Enumeration Areas Sh ape Files w ith Socio – Economic Data. The assignment is expected to last for four months

The consulting services (“the Services”) include providing assistance to the TSMP project implementing agencies through Consultancy Services to Facilitate Conducting Midterm Review . The assignment is expected to last for two months

2.The National Bureau of Statistics now invites eligible Consultants (“Consultants”) to indicate their interest in providing the Services. Interested Individual Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services. The interested individual consultants must provide information indicating that they are qualified to perform the services in the following order (Academic Background, Experience in Similar Assignment, Description of similar assignments performed, and knowledge of the local conditions, such as local language, culture, administrative system, and government organi ation).

3.The attention of interested Consultants is drawn to paragraph 1.9 of the World Bank’s Guidelines: Selection and Employment of Consultants by World Bank Borrowers (published in May 2004 and revised in October 2006) (“Consultant Guidelines”), setting forth the World Bank’s policy on con ict of interest.

4.A Consultant will be selected in accordance with the individual consultants selection method

5.Terms of References and further information can be obtained at the address below during office hours, i.e., from 9.00 to 15:30 hours Dar es Salaam time Monday to Friday inclusive, except public holidays.

6.Expressions of interest must be delivered in a written form to the address below (in person, or by mail) by 28th anuary, 2014 at 10:00am.

National Bureau of Statistics Attn: Secretary, NBS Tender Board, P.O. Box 796 Dar es Salaam, Tanzania Fax:+255 (0) 22-2130852 E-mail: dg@nbs.go.tz

Director G eneral National B ureau of Statistics,

National Bureau of Statistics Attn: Secretary, NBS Tender Board, P.O. Box 796 Dar es Salaam, Tanzania Fax:+255 (0) 22-2130852 E-mail: dg@nbs.go.tz

Director G eneral National B ureau of Statistics,

NEWS

East African Business Week I January 20 - 26, 2014

Burundi hosts top scientfic meeting

BRIEFLY World Bank supports Kenya health nWASHINGTON ---The World Ba nk has approved new funding to support Kenya’s efforts to deliver quality health and nutrition services to as many as 35 million people by 2016. Half of the beneficiaries are women and about 16% live in droughtprone areas. The International Development Agency (IDA) credit of $41 million for the Health Sector Support Project is accompanied by a $20 million grant from the Health Results Innovation Trust Fund, which is supported by the British and Norwegian governments.

China adds cash to African equity fund nBEIJING -- The China-Africa Development Fund, the nation’s largest equity fund focused on African investments, will raise another $2 billion in 2014 to boost the continent’s agricultural and steel . According to Chinese news reports the money will go towards upgrading African industrial development. Chi Jianxin, president of the fund, said China has been looking to invest in different ways in Africa instead of focusing only on building infrastructure projects such as roads, bridges, ports and cement plants.

Nedbank renews ties with Ecobank nJOHANNESBURG -- Johannesburg-based lender, Nedbank Group will renew a 2008 alliance with pan-African banking group, Ecobank Transnational Inc. to explore investment opportunities in East Africa’s banking sector. Nedbank, which has been nursing an ambition to expand into the East African market without success, can use Ecobank’s market share in the region. While the South African lender has operations in France, Beijing, Dubai and London, Ecobank currently runs offices in over 20 countries including three in East Africa; Kenya, Uganda and Rwanda.

BY C. ININIAHANZE

NEW RULES: Investors will now be given an initial three years to prove they are serious about their plans.

Uganda puts limits to land speculation BY PAUL TENTENA

nKAMPALA, Uganda--Uganda Investment Authority (UIA) has developed tougher rules for acquisition of land in industrial parks. This is to limit the temptation to speculate on public land to the disadvantage of potential investors looking for locations. The UIA new rules have already been approved by the Public Procurement and Disposal of Assets Authority (PPDA). UIA will receive applications for land allocation throughout the year and each application will be evaluated in accordance with the set guidelines. According to Gabriel Ajedra, the state minister for investment, all investors must use the UIA Form 2 with detailed project proposal showing business activity and main products or services to be produced on the land applied for. “They have to show us the proposed total investment amount in US dollars, have documented evidence of the investor’s ability to raise funds to implement a project and proof of availability of funds

439 acres

Withdrawn from investors

1142 acres

For Namanve infrastructure

626 acres

Allocated to investors

inform of Bank Letter of Credit or confirmation of funds by the bank,” Ajedra said recently. Ajedra said the intending investors must show their expected impact on the economy in terms of job creation, capital investment, turnover and export revenue where applicable as well as other benefits to the community. Basically, an investor would respond for a call for application, bidding advert from the PPDA, of which he or she responds too. New measures also require preliminary architectural layouts to justify acreage of the project including necessary infrastructure facilities. “They will be required to show us evidence of the investors track record in terms of experience in implementing similar or related

investment projects in the past,” he stressed. The investors will also be required to show their anticipated implementation period for the project in months, and their anticipated impact of the project on the environment and an Environment Impact Assessment (EIA). Currently, out of the 2208 acres of land at the Kampala Industrial Business Park at Namanve along the Jinja Highway, 1142 acres are to cater for infrastructure, wetlands and green spaces, leaving a balance of 1066 acres for allocation. Ajedra said so far, 626.8 acres have been allocated to 190 investors and the remaining land of 439.2 acres withdrawn from speculating investors or those that have not developed it. He told intending investors that land is still available in different industrial parks with Kasese having 219 acres, Soroti (216 acres), Moroto (417 acres), Kabalore (100 acres) and Jinja (186 acres) all available for allocation. The minister said investors will now be given an initial three years to show that they are serious anout their invesstment plans.

nBUJUMBURA, Burundi-Recently Burundi hosted the 2nd General Assembly and Scientific Conference of ASARECA under the theme, ‘Transforming Agriculture for Economic growth in Eastern and Central Africa’. ASARECA is the Association for Strengthening Agricultural Research in Eastern and Central Africa. Gervais Rufyikiri, the Burundi Second Vice President, who officially opened the talks said, ASARECA had the role to share lessons from the past, identify success factors for the transformation of agriculture in Eastern and Central Africa and formulate and adopt an action plan for the transformation of agriculture as an engine of economic growth with equity in Eastern and Central Africa. He said the organisation also should continue to develop and strengthen the partnerships necessary for the transformation of agriculture. The Burundi Ministry of Agriculture and Livestock, together with the Institut des Sciences Agronomiques du Burundi helped organise the four-day conference. He hoped the participants would come up with suggestions for the control and fight against various diseases of plants and animals, dissemination and promotion of plant varieties and animal breeds with high efficiency and the dissemination of best farming practices. Before South Sudan joined ASARECA, the 10 ASARECA countries covered an area of 8.5 million km2 with a total population of more than 280 million people, most of whom are rural dwellers pursuing agricultural livelihoods. Roughly one-third, of East and Central Africa’s total land area is devoted to agricultural use.

Trained accountant numbers surge upwards in Uganda BY PAUL TENTENA

KAMPALA, Uganda--Professional accountants in Uganda have increased from less than five in 2001 to 1349, the Institute of Certified Public Accountants (ICPAU) recently announced. The Assistant Auditor General, Keto Kayemba, who presided over the official release of the results, said their target is to have qualified professional accountants in every Uganda district. There are currently just over 110 districts in Uganda, but there are plans for more when the money is available. While giving highlights of the November 2013 Accountancy Examination results, Uthman Mayanja, the Chairperson of the Public accountants Examination Board (PAEB) said 150

students completed the professional accountants’ course in November 2013. “In a young economy with a series of budding Small and Medium Enterprises, this addition to the number of accountants is timely as SMEs, the renowned engine for economic growth are largely supported by the professional accountants,” Mayanja said. The 450 candidates sat for the Accounting Technicians (ATC) examinations in November 2013 while 479 sat in June 2013. According to ICPAU, there was an improved performance in the November sitting at an overall pass rate of 57.9% up from 51% in June. For the November 2013 sitting, 4606 candidates sat for the Certified Public Accountants compared to 4257 in June 2013.

Mayanja said there was an improvement in the overall pass rate for November at 46.5% up from 40.7% in June 2013. ICPAU executive director, Derrick Nkajja said the increasing performance to pessimistic attitudes by students towards arithmetic subjects. According to Nkajja, law and economics are largely literary subjects while tax, audit, financial reporting involve plenty of arithmetic, logic and calculation. “Right from the beginning, they infuse in themselves a lax attitude towards maths and discover later in life that they cannot evade it,” Nkajja said. Nkajja emphasized the relevance of career guidance. “Career guidance should be refocused so that professionals are invited early in a child’s life to help in realigning children’s focus towards their ambitions,” he said.

BUSINESS

DIGEST BUSINESS WEEK, January 20-26, 2014

INVENTORY MANAGEMENT Customer Analysis Purchasing/ Supplier Partnering

Demand and Lead-time management

Manufacturing/ Remanufacturing

TO PAGE 14

Strategic Inventory Analysis

Transportation

Fully stocked carries risks Inventory management and Control

Materials management

Cost Benefit Analysis

n In a perfect world, you would know exactly how many units of inventory your business would sell on a given day and each unit would arrive instantly before the customer came to buy it. This scenario would need you to sell as much inventory as possible while minimizing the inventory carrying costs. Maximum sales and minimum costs yield high profits. However, since we don’t live in a perfect world, we have to do the best we can. This means balancing the need for having sufficient inventory in stock to avoid stock-out costs while at the same time minimizing carrying costs. Working capital is an important measure of a company’s financial health. It’s defined as the difference between Current Assets and Current Liabilities (Working Capital = Current Assets – Current Liabilities). When a company has positive working capital, it is able to pay off its short-term liabilities from assets that can be quickly converted to cash. Inventory is a part of current assets and therefore has a direct impact on working capital levels. Because of its impact on working capital and for many other reasons, ensuring that inventory is managed properly is critical for business success. The costs associated with inventory orders placed by your company include paperwork processing costs, handling, freight and in some cases setup costs for machinery. If you sell or make products, inventory is critical – after all, without inventory, what do you have to sell? While some businesses serve as subsidiaries for companies by taking orders and passing those orders on to a distribution facility for fulfillment – thus allowing the

subsidiary to stock no inventory – most companies need at least some amount of inventory to ensure products are readily available Controlling inventory is the ongoing process of identifying and managing the constant flow of items into and out of an existing inventory. When you don’t know exactly what inventory you have available, where it is located, or where it is for sale, it’s going to be difficult to manage your inventory effectively and can lead to an ever-increasing number of problem areas. The first steps in managing inventory is to determine the frequency of sale or use and then the amount of time typically required to replenish the item in question. In simple terms: How many of these do I sell a month, and how long does it take me to get more? Creating an effective balance is critical to maintaining sales and operations while minimizing inventory costs. Tips: Make sure all your items are for sale. Items that are on hand but not listed for sale can’t be sold. Thus, if you have boxes of items that are not listed for sale, they are not inventory (they are storage). Understand your lead time. Lead time is the amount of time between order and arrival. While most sellers would love to run their business using ‘just in time inventory’, uncertain lead times can cause a seller to run out of inventory. Lead time varies by supplier, seasonality, and even by item. Lead times are a major factor. Some products sell quickly. Some materials are used more frequently in production processes. Not all products and materials are used at the same rate, and not all can be replenished at the same rate. Know how much inventory you need. If you can’t know exactly

how much inventory you need, it’s a good idea to have some ‘buffer stock’ on hand to mitigate shortfalls. Buffer stock is extra inventory a seller maintains to ensure that they do not run out of an item. Automate your inventory system. Don’t kill your business by juggling spreadsheets in order to manage selling across channels. Use a third-party inventory management solution to share and track your inventory across channels and eliminate the need for maintaining separate spreadsheets. Know your inventory costs. The cost of inventory is more than just the price you pay for an item. Here are typical costs associated with maintaining an inventory: •6-12 per cent Opportunity: What you could have made if you put the money you have tied up in inventory elsewhere (i.e. putting the money in the bank, or other investment.) •6-12 per cent Obsolete Inventory: Excess inventory that doesn’t sell before it goes out of fashion, or is no longer in demand. •For example: Mostly electronic items •3-10 per cent Taxes and Insurance: This applies not only to inventory, but also to employees. •2-5 per cent Warehouse/Storage: The cost of your warehouse, utilities and storage. •2-4 per cent Handling: Your time and employee time spent handling inventory. This could include physically counting inventory, keeping inventory clean and organized, tagging and labeling, etc. •2-4 per cent Breakage and Theft: Inventory that is broken, damaged, or stolen and thus unable to be sold. •1-4 per cent Clerical: Purchasing, keeping records, and any other associated work. TO PAGE 14

BUSINESS HOW TO MANAGE YOUR INVENTORY TO PAGE 14

BUSINESS DIGEST

East African Business Week I January 20-26, 2014

When you don’t know exactly what inventory you have available, where it is located, or where it is for sale, it’s going to be difficult to manage your inventory effectively and can lead to an ever-increasing number of problem areas.

Stay alert from risk FROM PAGE 13 book for an owner to follow, and because every business situation is different. However, because many small businesses also come with very passionate owners, some simple attention to detail can ensure that a business sails right on through to calmer and more prosperous economic times. Measure your inventory turn. Inventory turn is a way to measure of the number of times inventory sold in a time period (such as a year). It is equal to the cost of goods sold divided by the average inventory. (Inventory Turnover = Cost of Goods Sold divided by Average Inventory). Once you have the metrics, you can make improvements and measure results. Don’t hold onto the past. If you inventory is obsolete or is just not selling, don’t feel guilty about disposing of it. All merchants have made bad purchasing decisions at one time or another. Give yourself permission to forgive your mistakes and let it go. There are many channels and methods of disposing of obsolete inventory. Sell at a discount or even discard obsolete stock; doing so reduces cost over the long term and frees up space for productive inventory. 8. Beware of the ‘long tail’. Long tail cost is the cost of inventory storage and distribution. When inventory storage and distribution costs are low, it becomes viable to sell relatively unpopular products with long sales cycles; conversely, when storage and distribution costs are high, only the most popular products are sold quickly enough to make a profit. Most of eBay’s and Amazon’s fees are collected after the sale, so long-tail items can seem attractive as distribution cost is very low. However, if long tail items creep from being a small portion of your inventory to being a large portion, you’ll continually struggle to equal ‘last month’s sales’ versus being in a growth mode.

In summary,, balancing the various tasks of inventory management means paying attention to three key aspects of any inventory. The first aspect has to do with time. In terms of materials acquired for inclusion in the total inventory, this means understanding how long it takes for a supplier to process an order and execute a delivery. Inventory management also demands that a solid understanding of how long it will take for those materials to transfer out of the inventory be established. Knowing these two important lead times makes it possible to know when to place an order and how many units must be ordered to keep production running smoothly. Calculating what is known as buffer stock is also key to effective inventory management. Essentially, buffer stock is additional units above and beyond the minimum number required to maintain production levels. For example, the manager may determine that it would be a good idea to keep one or two extra units of

The fewer materials or finished goods in inventory, the lower the cash demands

a given machine part on hand, just in case an emergency situation arises or one of the units proves to be defective once installed. Creating this cushion or buffer helps to minimize the chance for production to be interrupted due to a lack of essential parts in the operation supply inventory. Inventory management is not limited to documenting the delivery of raw materials and the movement of those materials into operational process. The movement of those materials as they go through the various stages of the operation is also important. Typically known as a goods or work in progress inventory, tracking materials as they are used to create finished goods also helps to identify the need to adjust ordering amounts before the raw materials inventory gets dangerously low or is inflated to an unfavorable level. Finally, inventory management has to do with keeping accurate records of finished goods that are ready for shipment. This often means posting the production of newly completed goods to the inventory totals as well as subtracting the most recent shipments of finished goods to buyers. When the company has a return policy in place, there is usually a sub-category contained in the finished goods inventory to account for any returned goods that are reclassified as refurbished or second grade quality. Accurately maintaining figures on the finished goods inventory makes it possible to quickly convey information to sales personnel as to what is available and ready for shipment at any given time. What is the bottom line where inventory management is concerned? The fewer materials or finished goods in inventory, the lower the cash demands. To improve cash flow, optimize inventory levels and dramatically reduce the cost of excess.

EzineArticles.com

How to manage your inventory Customer Analysis Purchasing/ Supplier Partnering

Demand and Lead-time management

Manufacturing/ Remanufacturing

Strategic Inventory Analysis

Transportation

Inventory management and Control

Materials management Cost Benefit Analysis

Get an attitude Your attitude about inventory is the key to successful inventory management. Think about inventory as a wasting asset. Unless you are dealing with wine or single malt scotch whiskey, inventory does not improve with time. Inventory becomes less valuable with every passing day. It takes space, heat, light, power, handling, insurance and, of course, interest to carry. Every day you have inventory and no sales your profit margin will erode. So as you’re planning how to run your small business, try not to carry any more than is absolutely necessary. Be scrappy Don’t be shy – it’s a competitive market out there and suppliers want your business. Negotiate with them to extend payment terms. Consider utilizing drop shipments. You can even negotiate consignment arrangements or vendormanaged inventory techniques. Think green The way in which you finance inventory is critical. A basic point in inventory management is to ensure that your payment terms are longer than the terms you extend to customers. Consider different financing options such as purchase order financing or asset-based lending. The old axiom

“cash is king” applies. Clean house Inventory should be eliminated regularly by using special promotions, unique discounting, barter exchanges and charitable donations. Remember – keep that inventory moving, keep it fresh and keep your customers happy with special offers such as, “half off” or “2for-1.” Knowledge is power Like never before, new technologies and techniques enable you to command knowledge about how you run a business. With knowledge comes the ability to control your destiny. So use the best information system you can to capture history and forecast demand. Stay close to your customer so you know what his needs are. Stay “cozy” with your suppliers to learn about demand for their products and about new product introductions. We know as well as anyone that you’ve got a lot of things to think about in order to run a small business like an ace. Though it seems like one of the less dynamic or demanding aspects of your business, inventory management can actually be the lynchpin between you and profitability. StartUpwriter

BUSINESS KNOW-HOW East African Business Week I January 20-26, 2014

Define your Mission & Vision Create a Better 2014 with Vision & Mission Statements experience

Vision vs. Mission Statements To begin, let’s explore the difference between a vision statement and a mission statement. A vision statement communicates the improved future that we hope to create within our global community. Vision statements bring value to our employee’s work, helping them to recognize their efforts as being a valuable part of humankind. One example of a strong vision statement is from PepsiCo: “PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate—environment, social, economic—creating a better tomorrow than today.”

MISSION WHO WE ARE WHAT WE DO

BENEFITS Clarifying Your Purpose. Inspiring Your Stakeholders. Humanizing Our Brand. Anchor Our Promotional Efforts.

Imagine that you are a Pepsi employee. Wouldn’t it feel good to go to work every day with the goal of contributing to the world in this way? Vision statements are inspirational, adding purpose to our work and motivating us to do our part to make the world a better place. A mission statement applies the vision to the company’s present action and situation. It communicates the reason that the company exists in society, identifying the organization’s essence and the difference it makes in the world. Mission statements should identify the purpose of the organization in a way that inspires employees and other stakeholders. Again, let’s look to PepsiCo for an example of a strong mission statement: “Our mission is to be the world’s premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.” You see, in the mission statement, PepsiCo explains how they, today, improve the environment, economy, and societies in which they operate—by using the sales of their foods and beverages to generate

VISION

WHAT WE WANT TO BE WHERE WE WANT TO GO VALUES CORE

n KAMPALA, UGANDA-As we enter a new year, we can embrace opportunities for new beginnings. We can release our old habits and struggles, transforming them into new hopes, dreams, and opportunities for growth, in both our personal and professional lives. This is true for our companies as well. The start of a new year provides a wonderful opportunity to revisit our company’s vision and mission statements—or to create them for the first time. Establishing a vision and mission for your company is vital to its success. As Theodore Hesburgh, a former president of the University of Notre Dame said, “The very essence of leadership is that you have a vision. It’s got to be a vision you articulate clearly and forcefully on every occasion. You can’t blow an uncertain trumpet.” But how do you accomplish this? How grand should your vision be? Is it even a good investment of your employees’ efforts? And how does this help your promotional efforts? Today, I’ll explore aspects of developing vision and mission statements.

VALUES CORE

MARKETING MOXIE

VALUES CORE

Hope Wilson

“

Go ahead. Dream big. Find the vision of the world you want to create, and the role that your company will play in creating this new world. The people and organizations who boldly dream ar e the ones who make the world a better place. profits for investors and enrichment opportunities for employees, partners, and communities. This motivates employees by helping them to understand how they help to create the company’s vision of the future. A word of caution: Though PepsiCo provides some strong examples of vision and mission statements, many companies—including global leaders—confuse these elements. The key is to remember that vision statements are about the future you want to create, and the mission statement is how you operate now to make that vision become reality. How Big Should You Dream? Some people believe that your vi-

sion and mission statements should be realistic—that you shouldn’t make your dreams too large. After all, they say, isn’t it better to focus on something small and succeed, than to focus on something large and fail? Throughout history, companies have proven that it’s okay to dream big. Consider, for example, the Ford Motor Company. In the early 1900s—when the automobile was just emerging—Henry Ford declared that “Ford will democratize the automobile.” At this time, only the very wealthy could afford cars; how could he possibly make this claim? Well, following this vision of automobiles for the general population, Ford introduced large-scale auto manufacturing and workforce efficiencies like assembly lines. This decreased the cost of manufacturing automobiles, reducing the cost to the public. It also changed the way that manufacturers have done business ever since. Ford’s vision inspired innovation that established best practices for manufacturing and improved accessibility and affordability of products to people worldwide. So go ahead. Dream big. Find the vision of the world you want to create, and the role that your company will play in creating this new world. The people and organizations who boldly dream—and follow those

dreams—are the ones who make the world a better place. The Promotional Value of Vision and Mission Statements Vision and mission statements are important pieces of your promotional program. Here are a few of the benefits of defining your vision and mission: Clarifying Your Purpose. To be successful in your business, your stakeholders—clients, partners, investors, employees, and others— need to understand why you exist and what you want to accomplish. When you share your vision of a better world, and the role that your company will take in creating it, your stakeholders can quickly understand your company’s purpose. Inspiring Your Stakeholders. A psychological theory called Maslow’s Hierarchy of Needs teaches us that humans have a deep desire to self-actualize—to step beyond the need to maintain our physical and emotional security and discover a greater purpose for life. When companies help people to accomplish this—both by helping them to fulfill their basic needs and to contribute towards a greater good—we help to advance society. Humanizing Our Brand. This process also helps to create brand loyalty by humanizing our brand— adding a personal element to the company. A couple of issues ago, I shared the results of a recent study that showed that 94% of global consumers believe that companies should be giving back to the communities they serve. Establishing a vision and mission statement helps to identify the role that the company will play in accomplishing this. Anchor Our Promotional Efforts. We can use mission and vision statements to focus our marketing messages, our community outreach program, and other initiatives, which helps us to create a stronger brand identity. This week, work with your teams to create—or reevaluate—your vision and mission statements. Next week, we’ll explore some ways you can help to accomplish them. 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

Mission and vision statements of prominent companys n EAST AFRICAN BUSINESS WEEK VISION Our Vision is to become the most influential business publication in East Africa. MISSION Our mission is to provide a one-stop-platform to showcase business opportunities from across the region. CORE VALUES We value quality, accuracy, objectivity, incisive writing and entertaining information.

n MICROSOFT MISSION Our mission and values are to help people and businesses throughout the world realize their full potential. n AT&T MISSION Today, our mission is to connect people with their world, everywhere they live and work, and do it better than anyone else.

n MCDONALDS MISSION McDonald’s mission is to be our customers’ favorite place and way to eat with inspired people who delight each customer with unmatched quality, service, cleanliness and value every time

n GOOGLE MISSION to organize the world’s information and make it universally accessible and useful. n COCA-COLA MISSION Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.

PICTORIAL

East African Business Week I January 20- 26, 2014

UNITY: President Museveni greets Eduardo Do Santos of Angola at the Great Lakes Summit in Luanda. Peace and stability in the Great Lakes Region topped the agenda, with an acute focus on the renewed conflict in Africa’s newest state South Sudan.

The week in pictures

GOOD RELATIONS: Mr. Godfrey Ivudria (2R) East African Business Week’s Operations Director in a group photo with members of the Foreign Economic Relations Board (DEIK) in Turkey. Mr. Ersin Eren the Chairman of the Turkish –Uganda Business Council said, their intention is to introduce Turkish business people and business environment to Uganda.

ABOVE: Moses Bekabye, the Interim CEO of the Uganda Retirement Benefits Regulatory Authority says pension reforms are necessary for Uganda’s economic transformation. LEFT:Emmanuel Onega (L), a beneficiaries of the “KCB made in Uganda” project shows President NEW OIL: Security Minister Muruli Mukasa (R)launching Museveni (M) and other ministers some Hyrax Oil product in Uganda. Looking on is Habib of the equipment used in honey making. Oil Chairman Hajji Habib Kagimu. Habib Oil Ltd was KCB Uganda in partnership with USSIA authorized to supply Hyrax Oil in East Africa. is offering cottage industry training to disadvantaged small scale entrepreneurs to promote locally produced products.

SPECTACULAR: Uganda Wildlife Authority PR Manager Jossy PARTNERSHIP: Presidents Jacob Zuma (South Africa), Yoweri Museveni (Uganda) and Paul Kagame (Rwanda) serving breakfast during the Great Lakes Summit that was held in Luanda Last Week. The presidents discussed Muhangi (L) enjoys a boat ride with one of the Late Sir peace and stability in the Great lakes Region with renewed conflicts in South Sudan, Democratic Republic of Samuel Baker ancestral sons in Murchison Park. Congo and the Central African Republic.

SPECIAL REPORT

East African Business Week I January 20-26, 2014

Turkish Airlines helps lift trade Erbil Akgun, the General Manager for Turkish Airlines (Uganda) had a one-on-one with East African Business Week about operations between Entebbe and Istanbul, as well as other related issues to expanding trade with Turkey and Uganda. Below are excerpts: Question: Have Turkish business people responded positively to developing trade links with Ugandans since Turkish Airlines started flights to Entebbe International Airport? Answer: Turkish Airlines began operations to Entebbe mid-2010. This opened up Uganda to Turkish business people. This led to the formation of the TurkishUganda business council. A trade agreement between the Uganda National Chamber of Commerce and Industry (UNCCI) and the Union of Chamber and Commodity Exchanges of Turkey (TOBB) has been signed. The agreement, leading to the creation of the Uganda â&#x20AC;&#x201C; Turkish and Turkish â&#x20AC;&#x201C; Uganda business councils, is meant to contribute to the improvement of the trade and investment climate between the two countries. The volume of trade and investment between the two countries is estimated at $30 million by end of 2013. Can you give us an idea of what areas interest Turkish business people the most in terms of investment and trade with Uganda? Turkish investments in Uganda currently include road construction- Kolin Construction Company. Cement manufacturing, oil drilling rigs supplies, manufacture of pre-payment meters for water and electricity, healthcare and education - like the Turkish Academy in Uganda, Turkish restaurants, among others.

GROWING: In spite of a difficult 2013, Turkish managed to register a 20% growth covering 105 countries and 243 destintations worldwide. Has the Istanbul-Entebbe route broke even yet, considering that in early days outward flights carried less passengers?

What about Ugandan traders, what attracts them to Turkey and does the airline have special packages for them? Turkish Airlines offers competitive rates to all travellers out of Entebbe, not specific to Uganda traders. Most Uganda traders are interested in Textiles and furniture. The Airline offers cargo space of about 60 tonnes. As an airline we also offer 40+10 kg extra baggage allowance to passengers who fly to Turkey.

Considering the level of investments on the Entebbe route we have not broken even. We have given our selves five years and it looks promising. Can you give us specific figures on passenger numbers?

Could you comment on Turkish tourist numbers visiting Uganda, do you see a steady increase? Turkish Airlines began flights to Entebbe with three flights a week. Currently we have daily flights between Entebbe and Istanbul. The number of passenger between Entebbe and Istanbul is estimated to 2,500 in 2013. Istanbul also offers good connection to the rest of the world. There is no transit visa need for travelers who fly to other countries via Istanbul. Impact on Tourism is small but growing. What do you think Ugandan authorities should improve on to encourage more interest from Turkish business people and investors? Ugandan authorities first of all must market Uganda as an investment destination. Improve quality of service delivery, infrastructure and generally a

Last year we saw a total of 32,000 passengers. In terms of airfreight, is Turkish seeing higher volumes on the Istanbul-Entebbe route? Turkish cargo services a 60 tones capacity to exporters in Uganda. We have a large network for cargo network also. COMPETITIVE: Akgun says they have given themselves five years to break even and things look promising. good investment climate. They have to prove to all investors Uganda is a safe place to invest and live. Turkish is listed among the fastest growing airlines in the world, your video ad featuring Lionel Messi and Kobe Bryant is viewed as a global hit, did this also translate in higher sales figures?

Turkish airline is one of the largest network carrier in the world. We fly to 105 countries and 243 destinations. Despite a difficult year 2013 in the aviation sector, Turkish airlines registered a 20 percent growth. Our volumes have grown to $10 billion by the end of 2013. Do you consider your ticket

prices as competitive compared to other airlines serving Entebbe and Europe? Our ticket prices are very competitive. We determine our pricing based on research and market factors. Pricing is handled by a team at our headquarters in Istanbul.

Handling costs at Entebbe International Airport are said to be some of the highest in the region, will this affect any decision by Turkish to perhaps increase flights? Handling cost will not hinder Turkish Airline from Operating in Entebbe, since our pricing is competitive.

ADVERTORIAL

East African Business Week I January 20-26, 2014

U G ANDA W ILDLIFE AU TH ORITY UWA COMMITTED TO FIGHTING ILLEGAL IVORY TRADE IN UGANDA.

ganda Wildlife Authority (UWA) is mandated by law to conserve Uganda’s wildlife resources on behalf of the government for the benefit of the present and future generations. To demonstrate the resolve of UWA to curb poaching and illegal wildlife trade, UWA in 2013 established an Intelligence Unit, recruited and trained a specialized force of 80 intelligence officers that have been deployed in strategic areas across the country to help prevent wildlife crime as opposed to fire fighting. The current ivory seizures being reported about in the media are a result of the intelligence network that has been established by UWA which works very closely with other security and law enforcement agencies. UWA has been actively involved in all international engagements and has used the opportunity of Uganda’s position on the CITES (Convention on International Trade in Endangered Species) Standing Committee to participate in all international decisions to curb illegal ivory trade. As recent as December 2013, UWA under the leadership of the Minister of Tourism, Wildlife and Antiquities participated in a high level African Elephant Summit held in Gaborone Botswana during which African countries that have elephants and are therefore potential sources of ivory, Asian countries that are major transit and ivory destination countries as well as countries that have strongly supported the strong measures against illegal ivory trade as donors and other Inter Governmental and Non-Governmental Organizations signed a declaration and committed to implement 14 urgent measures to curb elephant poaching and illegal ivory trade in 2014. UWA is spearheading the implementation of these urgent measures in Uganda. On 19th December 2013, UWA working with Aviation Police after getting intelligence information,seized a consignment at Entebbe International Airport containing 440 pieces of raw ivory (elephant tusks) and 372 pieces of worked ivory in form of bungles and chop sticks. The consignment was destined for Malaysia through Lagos. On thorough examination of the boxes, 15 rhino horns were found stuffed together with ivory pieces and three of the tusks were marked with numbers similar to the markings we put on confiscated ivory that is kept in the UWA strong room. We are still investigating

Illegal ivory that was impounded in Kampala recently being piled together. the source of the ivory including the marked ivory but this should not be surprising as UWA in 2011 dismissed a staff working as the Armoury’/Strong Room Clerk for involvement in the theft of 10 pieces of ivory from the strong room. Some of the stolen ivory was recovered and kept at Central Police Station as part of the exhibits in a case file that was opened against the said staff and other accomplices. Some of the lost ivory was never recovered and since it is already marked, it can always be intercepted as has been the case here. The presence of 15 rhino horns in the illegal ivory consignment is an indication that some of the ivory may have come from elsewhere and was only transiting through Uganda as Uganda’s current population of 14 rhinos is still intact. Uganda records every elephant lost and the data on elephant mortalities over the last five years is too small compared to the illegal ivory that has been confiscated in Uganda in 2013 alone. That is why we believe that we need concerted efforts to fight this illicit trade that is clearly cross border in nature. The ivory stock currently kept at Uganda Wildlife Authority is very safe and well kept in a strong room that is accessed through a password protected locking system operated by three officers. The

An illegal ivory trader being paraded to media at the Uganda Wildlife Authority. door to the strong room can only be opened after entering the three passwords in the right sequence/ combination. One therefore needs all the three officers to access the strong room. At the time ivory was lost in the strong room, UWA had lost a number of staff through terminations and as a result the password to the strong room was disabled and the room accessed by only the key. This has since been rectified

and new passwords installed. We have also instituted stock taking inventories conducted by Internal Audit every three months to ensure that any losses from the strong room can be detected early. Since the loss of ten pieces of ivory between 2010 and 2011, no other loss has happened. The staff involved was dismissed and a case opened against him and other suspects (non-staff) which is yet to be disposed off.

UWA remains committed to fighting the illegal trade in ivory and other forms of wildlife trafficking and calls upon the general public and all government institutions and agencies to join hands and fight the illicit trade that threatens our wildlife heritage. Apportioning blame to UWA without acknowledging the efforts UWA is putting in place is very unfair and counterproductive.

TOURISM

East African Business Week I January 20-26, 2014

Ethiopia offers visitors such spectacular sights as the UNESCO protected Siemen Mountains, the unique sunken churches of the Orthodox Christians and a variety of rich dishes to quell any hunger pangs.(INSET) the food.

Ethiopia cited best for 2014 trips

nLONDON, United Kingdom--Ethiopia has been named as Rough Guides’ Number One country to visit in 2014, beating the likes of Madagascar, Brazil and Turkey. Rough Guides has become a leading publisher of travel and reference information known for its ‘tell it like it is’ attitude, accurate, up-to-date content and informed contemporary writing. The world-renowned travel guide range writes in its latest feature: ‘This culturally rich East African nation has always been an enticing destination, and though it remains poor, independent travel around the country is becoming easier thanks to a boom in small hotels and restaurants. ‘Take your pick of spellbinding attractions: untouched national parks, the ancient cities of Axum, Harar and Lalibela, the world’s first coffee plantations, the largest cave in Africa at Sof

Omar and the continent’s largest concentration of UNESCO sites.’ Levison Wood, co-founder of adventure travel company Secret Compass, is currently in Africa in an attempt to become the first person to walk the length of the Nile. He said: “It has taken Ethiopia a long time to shake off its international image as a nation blighted by famine, pestilence and civil war. For too long it’s been branded a symbol of despair.” He added, “When I visited I expected the worst – but what I encountered was totally different. I was unprepared for the sheer beauty, the grassy savannahs and the ear-splitting waterfalls. Small, neat villages lined empty tarmac roads and the sense of pride and community was unique.” Wood’s company has now launched its first expedition to mountain bike through Ethiopia’s

UNESCO-protected Simien Mountains, which will be led by Secret Compass director Tom Bodkin. He said: “Ethiopia’s culturally rich highlands are one of Africa’s natural marvels. They’re a crossroads of civilisations and a meeting of orthodox Christianity, ancient Judaism and Arab Islam, African animism and Rastafarianism. “High in the Simien highlands, life has continued unchanged for centuries. On our bikes – a far cry from the huge expedition trucks which rumble through – our small team will get to experience traditional village life in a unique way, with all monies spent staying in local hands to help boost the country’s fledging tourism economy.” Describing the topography, UNESCO states, ‘Massive erosion over the years on the Ethiopian plateau has created one of the

most spectacular landscapes in the world, with jagged mountain peaks, deep valleys and sharp precipices dropping some 1,500 m. The park is home to some extremely rare animals such as the Gelada baboon, the Simien fox and the Walia ibex, a goat found nowhere else in the world.’ Bodkin continues, “High in the Simien highlands, life has continued unchanged for centuries. On our bikes – a far cry from the huge expedition trucks which rumble through – our small team will get to experience traditional village life in a unique way, with all monies spent staying in local hands to help boost the country’s fledging tourism economy.” Secret Compass’s Ethiopia MTB adventure will appeal to anyone with a passion for biking, exploration, wildlife, photography, or simply pure adventure

Mikumi National park wildlife viewing eased BY ELISHA MAYALLAH

nMOROGORO, Tanzania - Tour operators in Tanzania are expected to start using the shortcut in the Mikumi National Park Selous Game Reserve. However by the time the tourist season starts in June the road will be ready for use. News from the Tanzania National Parks (TANAPA), the custodians of Tanzania parks says to repair the road linking Mikumi and Selous has been received well from the travel and tourism players.

Andrew Malalika, the owner of Jackpot Safaris based in Arusha said, the road will provide another opportunity for the southern parks to attract many more visitors as the time and fuel expenses will be reduced to a significant level. According to the Mikumi National Park’s Chief Park Warden, Dattomax Sellanyinka, the road would result in less hours travelled between the two destinations by cutting the current distance of 150 kilometres. It takes a drive of nearly 298 km to connect the two tourist gems at present, which will after the completion of the road will only mean 148 kms. The road, set to be ready by the end of

February, 2014, is a major boost to the tourists wanting to visit both Mikumi National Park, the fourth largest in the country and Selous Game Reserve, the largest protected area in Africa and a United Nation World Heritage Site. Mikumi National Park owes its penchant for its profound ecosystem with the Selous Game Reserve, the biggest in Africa, larger than Switzerland, and reputed to hold some of nature’s best-kept secrets. Selous’ beauty is largely due to its great measure and the indefinable thrill that is experienced far from civilization in primeval settings. Naturally, the park benefits from the highest

game density between the two ecosystems offering the best game viewing all-year round, in which a road network is being built one that will enable visitors to enjoy a twin visit of both Mikumi and Selous, one after another. A drive through the route will also provide game viewing as animals such as elephants, buffaloes, zebras; antelopes (kudu, eland and sable) migrate to and from the northern pocket of the Selous into the Mikumi Park. TANAPA invites tour operators in the country to start using the road and maximize on the potential of the Mikumi-Selous ecosystem.

ENTERTAINMENT

East African Business Week I January 20- 26, 2014

Ugandan model 1st ON DSTV Africa’s Next Top Model THIS WEEK

BY WINNIE MANDELA

n The Fixer: The third season of this riveting drama series is back on DStv! This intriguing drama is about Olivia Pope (Kerry Washington), a former communications director to the US President and she is The Fixer. She and her team of “gladiators in suites” will do whatever it takes to make their high profile clients’ problems go away. Watch it from Monday 20 January at 20:30 CAT.

n The Blacklist (Premiere): This is a drama series about a fugitive criminal mastermind Red Reddington. He offers to help the FBI apprehend a long list of terrorists and criminals, but only if he can work with rookie agent and criminal profiler Elizabeth Keen. The Blacklist stars James Spader and Megan Boone. It premieres on Tuesday 21 January at 20:30 CAT.

nKAMPALA- UGANDA - the modeling industry in Uganda will carry with it, not just an air of prestige, but also great respect. This is after Stacie Aamito, a Ugandan model, won the continental modelling completion in which she beat other 11 contestants becoming the first ever Africa’s Next Model. Aamito’s great zeal, determination and hard work, coupled with the great support that she received from her fans and friends down here in Kampala was overwhelming. From the constant social media campaigns, and following, to the screening of the show, aired on Africa Magic Entertainment on the finale night, the girl had all the support, and courage she needed to win. At a free screening at Club Rouge that was attended by friends, fans, fellow models, and the entire team from the Joram Model Management where she was previously signed, the anxiety, on not just Aamito’s face, but also on those of the other two girls wasn’t hard to miss. Africa’s Next Top Model is a brainchild of the Nigerian super model, who won the MNet Face of Africa competition in 1998. The show debuted on November, 10 2013, with 12 contestants. Her victory can be credited to her great consistence, throughout the show. Many of the photo shoots she did were exceptional, and always had a very natural element about them. From the underwater nymphs shoot, to the oversized suit photo shoot, it was evident to see that Aamito had great command of the camera.

Paternity row over dead comedian nKampala, Uganda – A row emerged soon after the death of a Ugandan comedian and political activist Paddy Ssali, commonly known as Paddy Bitama after two families claimed that he was their own blood. Bitama’s erstwhile known father Tamale Ssali died years ago but as his family was preparing for his burial a one Pater Njegula Kasozi called police demanding that a DNA test should be carried out to establish paternity of the lifeless man. “A certain man is claiming to have fathered Paddy Bitama. So our family has agreed to conduct a DNA test to prove his claims,” the deceased brother Paul Mulindwa told journalists.To prove his case, Njegula came armed with Bitama’s children’s birth certificates, baptism certificates and photos of him with Bitama when he was sick. Paddy Bitama together with close friends Allan ‘Amooti’ Mujuni and Eddie Kigere under their group Amarula Familry are credited for pioneering and advancing stand-up comedy in the country.

“We became public rejects but Bitama encouraged us to push on and his lion’s heart is the reason we managed to manoeuvre,” Amooti told reporters. Ahead of the 2006 presidential election, Paddy Bitama picked nomination papers but his attempt to become the country’s top leader was foiled because he didn’t have the Ush8m nomination fee. In 2012, Bitama, joined opposition political party Forum for Democratic Change (FDC) led by Kizzza Besigye to advance his shortlived political carrier. He was part of several city political demonstrations before occasional ailments stood in his way. Rest In Peace The Late Paddy Bitama Bitama.

After her victory in the grand finale, Aamito is surely destined for greatness in the modelling world. Her win came with $50,000 (about Shs125m). Modelling contract: She has been signed on a one year deal with Oluchi Onweagba’s DNA Modelling Agency. Brand endorsements: Her win came with an endorsment deal for Snapp (an alcoholic beverage) and she will also be brand ambassador for P&G, a manufacturer of product ranges including personal care, household cleaning, laundry detergents and prescription drugs. Africa’s Next Top Model is a franchise format of America’s Next Top Model, a television franchise that was created by American Supermodel Tyra Banks, and hosted by Supermodel Oluchi. Born in December 3, 1993, Aamito started her path to modeling at the age of 16 with Arapapa Models and has since represented a number of agencies in Uganda. She has worked for a number of renowned designers like Sylvia Owori, Santa Anzo, Gloria Wavamunno, Ras Kasozi and Adele Dejak. Aamito is currently signed to Joram Model Management, another modelling agency in Uganda.

Goodlyf launches anti corruption song BY SAMUEL NABWIISO n BUSIA –UGANDA --Good life boys have Launched an Ant corruption song where the groups stars calls for their fans always to be corrupt free. The song entitled “Corruption” was composed by Radio and Weasel on behalf of the Uganda debt Network Launching the song in Busitema Eastern Uganda the duo Musician said they are joining the public to fight corruption through music and they believe by using music this will change many Ugandans especially the younger people “Many Ugandan listen to radios and watch televisions that is why we have contracted these two musician under their performing group the Good life to compose the no corruption song which UDN will be using to sensitize the whole public about the dangers of corruption in Uganda” said Mr. Patrick Tumwebaze during the Launch of the song at Busitema Junction recently

The Anti-corruption song will be played in all radio waves across the country, Radio and Weasel urged the entire Ugandans to love the song because it’s very educative “The Anti-corruption song should be embraced by all Ugandan this will help the Uganda to fight the problem of corruption which has greatly affected services deliverance in the country and on great occasion many Ugandans have lost their lives because of corruption in the society “ the Duo Musician explained Corruption is one of the great problems which is hindering services delivery in the country a lot of government funds have been swindled by senior Government officers in various ministries and other Government agencies The Government of Uganda has tried to fight corruption but still facing a lot of challenges to control corruption because majority of the public are not aware of the side effects of corruption.

IOC awards rights to DStv’s SuperSport nThe International Olympic Committee (IOC) has awarded broadcast rights in South Africa and Sub-Saharan Africa to SuperSport International for the XXII Olympic Winter Games in 2014 in Sochi, Russia, and the Games of the XXXI Olympiad in 2016 in Rio de Janeiro, Brazil. Supersport has acquired broadcast rights on pay satellite television and internet and mobile broadcast rights.

IOC President Thomas Bach said: “We are delighted to have reached this agreement to continue to work with SuperSport to bring fantastic Olympic Games coverage to fans across the region.” IOC member Richard Carrión, who led the negotiations, said: “SuperSport has a wealth of knowledge in broadcasting the Olympic Games, and this agreement will ensure a first class broadcast experience of both the Sochi and Rio Olympic Games.”

Radio and Weazle of the Goodlyf crew performing

EAC

East African Business Week I January 20-26, 2014

EAC moots grand plans for Arusha BY ELISHA MAYALLAH nARUSHA, TANZANIA -The East African Community (EAC) Secretariat intends to kick off an ambitious development plan on its 130-acre piece of land in Arusha. The land was allocated by the Tanzania government. Among the projects earmarked are a staff housing scheme, an international school, a health centre, recreation facilities, exhibition ground and banking as well as a shopping mall. This was revealed last week during a visit to the site by senior EAC officials led by the deputy secretary general (Finance and Administration), Jean-Claude Nsengiyumva. The land was allocated to the EAC in August 2005 for future expansion. The visit was aimed at reestablishing the boundaries of the land with a view to starting the processing of its title deed. Once the title deed is processed, the Secretariat intends to initiate grand development projects on the land,” the Secretariat said in a statement.

In 2008 during one of the EAC Heads of State summits, the Arusha-based Secretariat was directed to put in place a housing policy geared towards acquiring and/or constructing houses for all key Community staff. The regional leaders requested the EAC to approach banks and financial institutions as well as social security funds “with a view to structuring mortgage lending for effecting the housing policy”. Nsengiyumva is quoted in the press statement as saying; “EAC can effectively implement the directive as well as other grand development projects only after the Right of Occupancy to the said piece of land is granted.” Accompanying the officials were surveyors; Yohana N. Nshumbi and Danielson P. Naiman from Josjujo Surveyors and Land Consult, both based in Arusha. The 130 acre piece of land outside the CBD along the Dodoma Road was one of the areas earlier proposed for the construction of the permanent headquarters of the regional organisation. However, EAC later opted

to build its new complex near the Arusha International Conference Centre (AICC) where its temporary headquarters were located from the 1990s until November 2012 when it shifted to its new office block. “The Community may expand in the future with the setting up of new institutions, necessitating construction of additional buildings”, a senior official of the Secretariat said, adding that the land

would Meanwhile, Nsengiyumva last week commended the interests and keenness shown by students and the youth in general for the EAC integration process. He was addressing 118 3third-year Political Science and Public Administration students from Sebastian Kolowa Memorial University in Lushoto, Tanga, who were on a study tour to the EAC Headquarters. The Deputy Secretary said on average in a week the EAC Secretariat receives

TH E U NITED REPU B LIC OF TANZ ANIA PRIME MINISTER’ S OFFICE REG IONAL ADMINISTRATION AND LOCAL G OVERNEMT TEMEK E MU NICIPAL COU NCIL

INVITATION FOR EXPRESSION OF INTEREST (EOI) FOR DEVELOPMENT OF PLOTS WITHIN TEMEKE MUNICIPAL COUNCIL DAR E SALAAM, TANZANIA B ID NO: LG A/0 1 6 /EOI/1 3 - 1 4 /0 1 DATE: 1 1 th J anuary , 2 0 1 4 1 . G eneral Information The Government of the U nited Republic of Tanz ania through the Temek e M unicipal C ouncil which was established by the Government Notice.NO .4 of the year 2000 owns various Plots within the M unicipality. Temek e M unicipal C ouncil intends to develop the plots on Public Private Partnership (PPP) and specifically under B uild O perate – Transfer structure. The plots are found at Temek e M unicipality in Dar es salaam C ity and they are highly accessible through roads. The roads are among the major link s to other destinations of the C ity. Th e brief information of individual plots is as follow s:S/N

INVESTMENT AREA

AREA COVERAG E

LAND U SE CU RRENT LAND U SE

NICE: Germany paid for the Secretariat main block situated near the Arusha International Conference centre.

over 20 applications from Universities and schools requesting for study tours to share knowledge on the integration process. He said the students and the youth were the future of the Community and therefore engaging them in integration issues was in line with the Community’s outreach policy. Nsengiyumva briefed the students on the key pillars of the integration process and the milestones so far put in place.

C hang’ ombe

4 07 5 M ( W ith 8 2000M ( W ith 4

SQ plots) SQ plots)

O ld houses O ld houses

TY PE OF B IDDING PROPOSED CU RRENT U SE

DEVELOPER

Residential apartment C ommercial building

DEVEL O PER DEVEL O PER

TAZ ARA

9 04 M SQ

L ocal mark et

B usiness C enter

DEVEL O PER

Z ak hem M ark et

5 ,4 35 M SQ

L ocal mark et

M odern mark et

DEVEL O PER

Temek e Stereo

6,8 4 0M SQ

L ocal mark et

C ommercial stores around the mark et

DEVEL O PER

Everett O pen Space

9 ,9 08 M SQ

O pen space

C ultural and recreational garden

DEVEL O PER

Natural resources office located along C hang’ ombe road adjacent to VETA C hang’ ombe

1,5 01 M SQ

Old office block .

Apartments and B usiness C entre.

Developer

Temek e mwisho

122,8 8 0M SQ

Staff q uarters

M ini C ity

Developer

M bagala

35 ,014 M SQ

L ocal M ark et

C ommercial C enter and B us Terminal

Developer

2. Specific conditions Interested investors both local and international are hereby req uested to submit their expression of interest under the following conditions. i. Applicants are advised to visit the site in order to familiariz e themselves with the site of the proposed project and go through the drawings prepared by the M unicipal C onsultants or submit the supplementary design concepts ( if any) for the project.

ii. Applicants must demonstrate capacity to provide both technical and financial resources for smooth implantation of the project. iii. Applicants should state and prove when and how the financial resources shall be made available for the project. iv. Applicants should provide a profile of the company showing the registration and legal status of the company, type of business, evidence of similar projects undertak en and C Vs of the personnel. v. Procurement modalities will be subject to conformity with Public procurement Act No.21 of 2004 and Public Private Partnership Act of 2010 and PPP Regulations. U nder this process the selection will undergo preliminary, technical and financial evaluation stages. vi. Applicants may express their interest in more than one plot ( lots) depending on the capacity.It should also be noted that, application for each plot has to be submitted separately and denoted by the following reference numbers. SN

B ID REFERENCE NU MB ER

DETAILS

L GA/ 016/ EO I/ 13/ 01/ chang i/ PPP L GA/ 016/ EO I/ 13/ 01/ chang ii/ PPP

C hang’ ombe 4 07 5 M SQ - ( W ith 8 plots) C hang’ ombe 2000M SQ ( W ith 4 plots)

L GA/ 016/ EO I/ 13/ 01/ tz / PPP

TAZ ARA 9 04 0 M SQ

L GA/ 016/ EO I/ 13/ 01/ z m/ PPP

Z ak hem M ark et 5 ,4 35 M SQ

L GA/ 016/ EO I/ 13/ 01/ ts/ PPP

Temek e Stereo

L GA/ 016/ EO I/ 13/ 01/ eo/ PPP

Everett O pen Space 9 ,9 08 M SQ

L GA/ 016/ EO I/ 13/ 01/ nro/ PPP

Natural resources office located along chang’ ombe road adjacent to VETA C hang’ ombe

L GA/ 016/ EO I/ 13/ 01/ Tm/ PPP

Temek e mw ish o 1 2 2 , 8 8 0 MSQ

L GA/ 016/ EO I/ 13/ 01/ M bg/ PPP

Mbag ala 3 5 , 0 1 4 MSQ

6,8 4 0M SQ

vii. Applicants should be ready upon selection to settle the consideration costs spent for site clearance and facilitating the resettlement of the former tenants where applicable. viii.Applicants may obtain further information from the office of the Tender Board Secretary,Temek e M unicipal C ouncil at the M unicipal Head Q uarters located along M andela Road opposite to National stadium P. O . B ox 4 634 3 Dar es salaam viii.The submission should be made within work ing hours form 9 .00hrs up to 15 .30hrs ( M onday to F riday except on public holidays) . ix. The deadline for submission of Expression of interest is W ednesday 12th F ebruary, 2014 10.00hrs and will be opened at 10.30 hrs local time on the same day. Expression of interest ( in English) envelope clearly mark ed EX PRESSIO N O F INTEREST B ID NO . … … … … … … … … … … … … … … … ( Insert the respective reference number) . x. L ate submission of the Expression of Interest shall not be accepted for Evaluation irrespective of the circumstance. MU NICIPAL DIRECTOR TEMEK E MU NICIPAL COU NCIL

AGRICULTURE

East African Business Week I January 20-26, 2014

Quality mars Uganda coffee BY SAMUEL NABWIISO

nKAMPALA –UGANDA --Land fragmentation and the failure by many coffee farmers to maintain high standards, has hampered development of Uganda’s coffee sub –sector to better levels of prosperity. Recently the African Coffee Academy (ACA) organized a Quality Management System/ Sanitary and Phytosanitary training workshop for coffee exporters, processors and farmers during which this viewpoint was put across. Jimmy Okello, the ACA Quality Analysis officer said the acreage of land under coffee production in Uganda is declining due to land fragmentation caused by population pressure. “Uganda as country has the capacity to produce enough coffee like other African countries, but the challenge is that land fragmentation in all the coffee growing regions in the country. Coffee farmers should stop dividing their lands into small plots this will enable the country to progress in coffee production,” he said. The objective of the training was to create awareness about international Sanitary and PhytoSanitary requirements and implications on the local coffee value chain actors. Basically these requirements have to do with maintaining strict levels of cleanliness in all areas of the industry. Another objective for the workshop was to build capacity of middlemen, millers and exporters to give effective

feedback to coffee farmers and suppliers on the issues of QMS and SPS. Making some comparisons, Okello said 10 years ago, Uganda was performing better than countries like Vietnam. But today Vietnam has left Uganda behind in terms of Robusta coffee exports. He also highlighted that farmland in Vietnam has not been affected by land fragmentation as the case in Uganda. According to the sector report on coffee issued by the agriculture ministry, Uganda’s coffee latest annual exports range between 2.5mt to 3mt. Vietnam currently exports 10mt to12mt. Okello said many farmers are still using traditional methods in harvesting and drying coffee cherries. This compromises the agreed provisions of the international market and formalized by the World Trade Organization ( WTO) PhytoSanitary requirements. Okello explained that noncompliance with the WTO requirements will result in loss of market because of public health considerations. To ensure that the whole world does not consume food which is risky to the live of the humans animal and the Environment , WTO member countries set up Sanitary or Phytosanitary( SPS measures which all intending exporters of agricultural related products should meet to ensure food safety worldwide but despite the existence of such standards which regulates the trade of food related items many countries like Uganda has been sported as one of the countries which is not implementing some

Drying coffee beans on the ground instead of raised beds is one reason Ugandan coffee is losing value. of the measure and this may affects its ability to sale agricultural related products on the international market “The success of any country’ s international food trade is largely depend on its domestic food trade sanitary and phytosanitary standards and practice are of vital to any food trade SPS measure have become vital due to food trade globalization. Thus for Uganda s domestic and international food trade to be successful, her SPS practices have to be implemented so as to produce quality and safe food to the market place,” he said.

Kikwete to keynote agribusiness meeting nDAR ES SALAAM, Tanzania-Between January 28 and 29, 2014, the Serna Hotel in Dar es Salaam, Tanzania, will be buzzing with ideas and innovations for agricultural development in East Africa. The AgriBusiness Congress will also be attended by President Jakaya Kikwete who is the keynote speaker. According to sources, Kikwete will highlight harnessing of multilateral partnerships for the development of innovative agriculture in East Africa. The AgriBusiness Congress East Africa will bring together key public and private stakeholders, from across the East African agricultural sector, to encourage collaboration and drive innovation to develop East African Agriculture to position the region to take advantage of the opportunities presented by the growth of this sector. The event is a conference and exhibition running over two days. It is being supported by the Tanzanian Ministry of Agriculture, Food Security and Cooperatives, and hosted

Kikwete to highlight partnerships. by the Agricultural Council of Tanzania. Organisers say Agribusiness East Africa was born of the need to stimulate the business of agriculture in Africa – and especially the Eastern region of the continent. As an overarching Agribusiness focused event, the conference will attract the entire agribusiness spectrum: input suppliers, agro-processors, traders, exporters, retailers, commercial farmers, processors, policy makers, government and

associations. The conference will be a high profile, strategic discussion forum where knowledge, innovation and best practices can be shared and developed. Nine topical sessions over the two day conference will include sessions highlighting: Agribusiness as the driver for economic development; modernization and commercialization; the value chain; access to markets; empowering emerging farmers; and finance, to only mention a few.

Presenting a paper on Coffee Quality Management System for coffee exporters in Uganda the Executive Director of the Coffee Academy Godfrey Batte said coffee, like other food items, must be handled with quality and standards in mind throughout the value chain. “On occasion, our coffee has been getting contaminated by hazards like biological, physical ,chemicals and environmental , especially during storage transportation and even during handling our value chain players in the coffee sub- sector should take

serious precautions when handling coffee as it is the only to maintain the quality standard of Uganda coffee,” he said. To limit those aspects that hurt the local coffee industry, Batte advised the sector players to use the integrated pests management approach and adopt proper drying methods like using raised beds. He said this will lower the chances of the country’s cash crop from getting contaminated and losing international market share.

Chase Bank backs up Kenyan farmers nNAIROBI, Kenya--Kenyan farmers can now take up short term loans in the form of warehouse receipt finance, after the East African Grain Council and Chase Bank signed a deal recently. Kathleen Goense, the Chase Bank Head of Agribusiness said: “For the agricultural sector to meet its objectives under the Vision 2030 Economic Pillar, the financial sector must offer solid solutions that can be implemented to diminish the challenges that large, medium and small scale farmers and traders face. Our move to offer this form of financing is in tandem with Chase Bank’s commitment to reach out to the SME sector. With 80% of the entrepreneurs in the country being in agri-business addressing this sub-sector will significantly boost SMEs. Farmers and traders of grain produce can now store their commodities in warehouses approved by East African Grain Council and access upfront 65% financing from the bank’

Now farmers and traders of wheat, maize, barley and sorghum can secure and affordable short-term loans, But this is after delivering and storing their grain in warehouses accredited by East African Grain Council. The farmers or traders will use the warehouse receipts as collateral to obtain credit from

“

Warehouse receipt financing is entirely new in Kenya as its legal framework and regulatory structure is still under legislative stages.

the bank. Kenya’s agricultural development remains the most significant contributor to GDP. The sector contributes 24% of the Gross Domestic Product (GDP) directly and another 13% indirectly. Approximately 45% of government revenue is derived from agriculture and the sector contributes over 75% of industrial raw materials and more than 60% of the export earnings. The sector is the largest employer in the economy, accounting for 60% of the total employment. Over 80% of the population, especially in rural areas, derives their livelihoods mainly from agriculture-related activities. Warehouse receipt financing is entirely new in Kenya as its legal framework and regulatory structure is still under legislative stages. If the Warehouse Bill is approved by parliament, the warehouse receipts will be negotiable instruments, a development which could transform the face of agricultural sector in the country.

EAC

East African Business Week I January 20-26, 2014

BRICS take backstage as MINTS rise nLONDON, UK-In 2001 the world began talking about the Bric countries - Brazil, Russia, India and China - as potential powerhouses of the world economy. The term was coined by economist Jim O’Neill, who has now identified the “Mint” countries - Mexico, Indonesia, Nigeria and Turkey - as emerging economic giants. Here he explains why. Nigeria has been listed among countries that could become the next set of economic giants in some years to come. The acronym MINT was coined from the first letters of the names of nations he sees as the next set of economic giants. On the list are four countries, namely Mexico, Indonesia, Nigeria and Turkey. Outstanding Features of the MINT Countries The MINT countries have some potential that would make them the envy of even the greatest economies in the world. Apart from their “numerical strength”, they have “inner demographics” that will work in their favour for at least the next 20 years. Within that period, the countries are expected to experience a rise in their working population compared to the number that would be listed as dependent population. From the economist’s postulation, if the MINT countries get their acts together, they might stand at par with China’s double digit rates soon. Another selling point shared by the countries is their geographical positions in locations that could be of enormous advantage with the gradually changing patterns of world trade. For instance, Mexico’s proximity to the United States and its Latin American status will be of immense benefits. Same for Indonesia which sits in the heart of Asia and maintains close links with China. Turkey is in both the West and East. Nigeria is not really similar in this regard for now, partly because of Africa’s lack of development, but it could be in the future if African countries stop fighting and trade with each other. This might in fact be the basis for the Mint countries developing their own economic-political club just as the Bric countries did. It is already being said that that the creation of the Mint acronym could spur pressure for Nigeria to become a member of the G20, as the other Mints already are. This was something the charis-

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Conisider this fact. About 170 million people in Nigeria share the same amount of power that is used by about 1.5 million people in the UK

MASS In spite of the fact that plenty of the oil money has been wasted or stolen Nigeria has vast potential. matic Nigerian finance minister, Ngozi Okonjo-Iweala was keen to talk about: “We know our time will come,” she said. “We think they are missing something by not having us.” Meade Kuribrena went so far as to suggest that, as a group of four countries, the Mints have more in common than the Brics. I am not sure about that, but it is an interesting idea. Economically three of them – Mexico, Indonesia and Nigeria – are commodity producers and only Turkey isn’t. This contrasts with the Bric countries where two – Brazil and Russia – are commodity producers and the other two – China and India – aren’t. In terms of wealth, Mexico and Turkey are at about the same level, earning annually about $10,000 (£6,100) per head. This compares with $3,500 (£2,100) per head in Indonesia and $1,500 (£900) per head in Nigeria, which is on a par with India. They are a bit behind Russia – $14,000 (£8,500) per head – and Brazil on $11,300 (£6,800), but still a bit ahead of China – $6,000 (£3,600). I returned from my travels thinking it won’t be so difficult for Nigeria and Turkey to positively surprise people, as many put far too much weight on the negative issues that are well-known – crime and corruption in Nigeria, for example, or heavy-handed government in

Turkey. Indonesia, I am less sure about. The country’s challenges are as big as I thought and I didn’t hear too many things that made me go “Wow” in terms of trying to deal with them. The country needs more of a sense of commercial purpose beyond commodities, and has to improve its infrastructure. In Turkey, visits to white goods manufacturer Beko and Turkish Airlines, the world’s fastest growing airline, definitely made me go “Wow”, and in Nigeria, I was saying it all the time. The creativity in that place is so easy to get enthused about, at least it was for me, and I returned full of excitement about different personal investments I might follow up on. In Mexico I was all set to be disappointed, as expectations are so high, but the young president and his equally young colleagues are full of determination to change the place. If you thought Maggie Thatcher stood for serious reforms, these guys make her seem like a kitten. They are reforming everything from education, energy and fiscal policy to the institution of government itself. What about all the challenges and things that usually scare people? Well corruption is obviously one topic that all four would seem to share, and I had many interesting discussions about it in each country.

In Nigeria, Central Bank Governor Lamido Sanusi argued that corruption rarely prevents economic development – and better education, will lead to better governance and greater transparency. Such views are important to listen to, as an alternative to our often simplistic Western way of thinking. For many credible people in the Mint countries, corruption is a consequence of their weak past, not a cause of a weak future, and certainly not the number one challenge. It falls way down a list compared with the costs of energy and the breadth of its availability and, of course, infrastructure. Sorting out energy policy was seen in both Mexico and Nigeria as a top priority and each country has launched a major initiatives this year, which if implemented, will accelerate growth rates significantly. Here is an amazing statistic. About 170 million people in Nigeria share about the same amount of power that is used by about 1.5 million people in the UK. Almost every business has to generate its own power. “Can you imagine, can you believe, that this country has been growing at 7% with no power, with zero power? It’s a joke.” says Africa’s richest man, Aliko Dangote. He’s right. I reckon Nigeria could grow at 10-12% by sorting out this problem alone. That would double the size of its economy in six or

seven years. In one of Jakarta’s slum areas, Pluit, the land is sinking by 20cm per year because of over-extraction of water, but property prices elsewhere in the city are rocketing. I talked to a man building the country’s first Ikea store, who reckons a third of greater Jakarta’s population of 28 million (the third biggest conurbation in the world) would have sufficient disposable income to shop at his store. As he said: “We just know it’s going to work.” In Turkey of course, its politics and the combination of a Muslim faith with some kind of desire to do things the Western way is a unique sort of challenge. Some might argue the same challenge exists for Indonesia but I returned thinking this was not the case. In Jakarta at least, the Western way of doing things seems to be generally accepted – in striking contrast with Turkey. In terms of wealth, Mexico and Turkey are at about the same level, earning annually about $10,000 (£6,100) per head. This compares with $3,500 (£2,100) per head in Indonesia and $1,500 (£900) per head in Nigeria, which is on a par with India. They are a bit behind Russia - $14,000 (£8,500) per head and Brazil on $11,300 (£6,800), but still a bit ahead of China - $6,000 (£3,600). BBC

Pundits ponder latest crze about the next high flyers LONDON, UK

HE volatility in emerging markets during 2013 has many North Atlantic commentators wondering if the wheels are coming off the wagon of those previously golden regions. An unmistakeable recovery in the United States (and on Wall

Street), and a deepening of the UK economic rebound, has some convinced 2014 will witness the developed world taking up the reins again. By contrast, it has become fashionable for western stock-pickers to play devil’s advocate on the former sunny prospects for emerging markets. But is much of this misguided, even wishful, thinking on the part of

developed nations? Jim O’Neill, the former chief economist at Goldman Sachs, thinks so. O’Neill’s words carry extra weight because he and his Goldman team famously predicted the rise of the Bric countries – Brazil, Russia, India and China – very early. Not only does O’Neill think the Bric countries’ game-changing ascent has further to run, he agrees strongly with those who have

defined a new wave of muscleflexing emerging markets. These are the so called Mint countries: Mexico, Indonesia, Nigeria and Turkey. The ex-Goldman guru says short-term volatility in some emerging markets, most notably China, is irrelevant to the tectonic shift of the centre of economic gravity away from America and Europe. Although the Bric economies are

almost certain to slacken their pace of growth from higher base rates, they are still adding their equivalent of a new Italy to their combined GDP each year. And the Mint economies? O’Neill, wthat, by 2050, Mexico, Indonesia, Nigeria and Turkey could account for 10 per cent of global economic growth. That’s close to the size of the eurozone. Agencies

INVESTMENT

East African Business Week I January 20-26, 2014

Citadel upbeat on African rails BY KARIM SADEK

hy invest in Africa when, “The risk is so high?” - I would have thought the answer was so obvious as to make the question irrelevant, but that doesn’t change the fact that we get asked this on a regular basis — by international investors and African journalists alike. The question is generally followed by one version or another of our continent’s perceived woes: poverty, under-developed institutions and conflict… As we see it at Citadel Capital, it comes down to this: If you are satisfied with a one per cent return on your investment, go buy 10-year Swiss bonds. Otherwise, go to Africa, because our continent today stands on the cusp of a major boom. We see Africa as the last great frontier in investing. Across the continent, there are billions of dollars a year in infrastructure investments seeking funding — and an abundance of natural resources that will be the nucleus of an industrial base across the continent. Crucially, a new generation of policymakers has opened power generation, energy distribution, refining and large transportation projects to the private sector. A global commodities boom has fuelled exports. Africa now holds 61 per cent of the world’s total uncultivated land, a reality to which African policymakers and global buyers alike are waking up to. What’s more, we have an incredible potential demographic dividend: One billion consumers today and, by 2040, the world’s largest workingage population. As a result, we think we’ll see a four-factor growth story here in Africa: Export-led growth, the power of the African consumer base, the impact of optimally developing natural resources, and the development of infrastructure to support all of this. That’s why we’ve seen an average of six per cent GDP growth across Africa in the last decade and it is why the World Economic Forum is estimating that Sub-Saharan Africa will see GDP grow by 35.7 per cent by 2017 to USD 1.9 trillion. Harnessing these opportunities demands a willingness to delve deeper, to be hands-on with your investments, to get to know the countries and the industries in which you invest. But whether you’re building critical infrastructure, manufacturing for domestic consumption or making value-added exports, Africa, as we see it, is the last great frontier in investing and perhaps in no sector is that reality clearer than in the transportation industry. Looking at East Africa, the region has some of the highest consumer prices in the world, particularly outside major urban centers, due in large part to the high cost of transportation on poorly maintained and fragmented road networks. To take the extreme example, South Sudan has among the highest food prices in the world. Maize at the retail level is sold at US$ 10 per kilogram, and a three-liter bottle of cooking oil costs US$ 16. In fact, a tonne of maize costs more than triple the international price. The pinch may not be felt as sharply in Kenya and Uganda, but there is no doubt that citizens have suffered as a result of decades of underinvestment in rail infrastructure. That’s where the Citadel Capital-led consortium that acquired Rift Valley Railways comes in. Our turnaround of RVR is based on four pillars and serves, we think, as a proven methodology for unlocking value in the transport sector: a clear strategy; the provision of adequate financing; the deployment of global cutting edge technology; and the supervision of all of this by globally-qualified experts who understand how to do business in Africa. The first four years of the concession, from 2006 until 2010, were effectively wasted before the original franchisee was replaced by an amended covenant signed by new investors — Citadel Capital, Kenya’s TransCentury and Uganda’s BOMI Holdings — in late 2010. RVR initially thought it needed USD25 million in investment under the first concession and USD40 million in the second. But

RELAUNCH: Last year RVR finished rehabilitating the Tororo-Gulu-Pakwach line which President Museveni opened. after a detailed inspection of the 2,300km of track and other assets, we found that even the USD 40 million investment threshold was an underestimation by a factor of seven. That’s why we worked with our partners between August 2010 and September 2011 to line up full funding for a USD 287 million (Sh24.7billion) turnaround. This is an amount we felt was necessary to bring the railway system back up to speed after three decades of neglect. Noteworthy investment to revive the railway only began in December 2011, after the first draw-down. To date, almost two years to the day later, USD 156 million (Sh13.5bn) has been injected into turning around the

“

Our continent stands on the cusp of a major boom

railway system. This is a scale of private-sector investment unmatched over the same period in East Africa and exceeds by 700 per cent the investment target in the agreement. Indeed, we’ve invested more in the rail system in the past 18 months than was invested in the previous 18 years. This investment has been overseen by

a world-class operating team at RVR made up of Kenyans, Ugandans and international experts from America Latina Logistica (ALL), the global specialist in emergingmarkets rail based in Brazil. Under new management, RVR has introduced a GPS-based automated train warranting system that makes RVR by far the most technologically sophisticated rail operation on the continent. We have relaunched the Tororo-Gulu-Pakwach line in Uganda for the first time in 20 years, opening the door to new economic opportunity in Northern Uganda and setting the stage for growth in regional trade. We have rehabilitated over 900 wagons and are now purchasing 20 new state-of-the-art locomotives. We’ve completely rebuilt 73 kilometers of new rail between Mombasa and Nairobi, and continue our aggressive program of reconditioning existing rolling stock and locomotives at workshops in Kenya and Uganda. Crucially, we’re also investing in people too: part and parcel of the turnaround program is over USD 10 million of training and capacity-development programs, structured with ALL (the largest private sector railway operator in Latin America) to bring best-in-class railway operations know-how to RVR’s engineers and technicians. And the market has noticed: When we launched our first Management Trainee Development Program in the top universities across East Africa, over 3,000 qualified young engineers and

economists applied to be a part of the new RVR. Already, we’re seeing the payoff: In October alone, incidents and accidents are down over 47%, due to our investments in track; volumes are up 30%, due to investments in rehabilitating locomotives and wagons; and trip times are breaking historical records due to investments in technology-based operating systems. As we continue delivering at RVR — and as we look for government action to ease customs procedures that dragout crossing times between Kenya and Uganda — we are meanwhile focused on delivering value at our other transportation assets, all with a view to linking global ports to inland markets. Nile Logistics, our river-transport investment in Egypt, is poised to grow as fuel subsidies that have made road transport artificially cheaper are lifted. In Sudan and South Sudan, our two river transport operations are capturing new business. The journey will not be short. We know that. But taken in the context of the African Century, it is one we feel we have no choice but to take. Sadek is a Managing Director at Citadel Capital., Some $9.5 billion in investments is under the control of Citadel Capital. Sadek’s main job is overseeing the transport sector.

Ugandan teams up with former Barclays boss to raise $325m LONDON, Uk--Bob Diamond, the former chief executive of Barclays, has staged his dramatic return to the City by raising $325 million for his new African banking venture Atlas Mara. The cash shell has been created to target acquisitions in the booming sub-Saharan financial sector and is also backed by Ugandan-born Ashish Thakkar, the 32-year-old chief executive

of $1 billion conglomerate Mara Group. Diamond, who was ousted from Barclays amidst political pressure following the bank’s role in the Libor rigging scandal, has personally invested £160 million while Mr Thakkar has invested £40 million. Atlas Mara, which is incorporated in the British Virgin Islands, raised $325 million (£200 million)

via a placing on the London Stock Exchange, more than the $200 million Diamond had been expecting. The founding members are set to receive millions providing the company completes an acquisition within a year under a series of complex remuneration goals. As evidence of how tied to acquisitions Diamond, once described as the “unacceptable

face of banking” and Thakker are set to bear the costs of the company is that if it does not acquire a company within a year it can face being wound up with funds returned to ordinary shareholders. After a seven year period Diamond and Thakker can convert their shares into ordinary shares in seven years time and can divest their shares one year after

completing an acquisition. The cash shell vehicle intends to capitalise on Africa’s strong economic growth and the lag of banking population. Economic growth in sub-Saharan Africa is expected to accelerate to 6.1 percent next year according to the IMF compared to lower global growth of 3.6 percent. Daily Telegraph

BUSINESS INFO

East African Business Week I January 20 - 26, 2014

DAR ES SALAAM - DSE Market Foreign Turnover Number Outstanding Outstanding No of Date Company Opening Closing High Low Capital holding (Tshs) of Deals share bids share offers shares price price traded (Tsh) bln) % age (Tshs) (Tshs) 310 310 310 310 217,000 1 0 83,000 700 11.54 2.63% Jan 17 2014 TOL 8,100 8,100 8,100 8,000 386,494,500 34 49,300 13,300 4,7716 2,388.92 64.71 Jan 17 2014 TBL 0 650 0 0 0 0 0 1,600 0 11.61 47.60 Jan 17 2014 TTP 0 8,600 0 0 0 0 700 0 0 860.00 75.00 Jan 17 2014 TCC 2,320 2,320 2,320 2,320 464,000 1 22,400 1,900 200 147.72 62.50 Jan 17 2014 SIMBA 2,680 2,680 2,680 2,680 268,000 1 0 12,500 100 96.48 60.00 Jan 17 2014 SWISS 2,660 2,660 2,660 2,640 3,628,880 5 0 82,700 1,367 478.60 69.25 Jan 17 2014 TWIGA 490 490 500 490 14,321,570 17 5,000 1,500 29,227 33.24 0.07% Jan 17 2014 DCB 2,640 2,640 2,660 2,640 16,060,880 9 100,900 66,400 6,042 1,320.00 38.57 Jan 17 2014 NMB 0 250 0 0 0 0 0 0 0 374.12 N/A Jan 17 2014 KA 0 5,410 0 0 0 0 0 0 0 4,278.09 N/A Jan 17 2014 EABL 0 5,640 0 0 0 0 0 0 0 337.81 N/A Jan 17 2014 JHL 0 860 0 0 0 0 0 0 0 2,554.49 N/A Jan 17 2014 KCB 290 290 295 290 82,527,920 22 570,400 407,900 284,548 631.19 16.46 Jan 17 2014 CRDB 0 5,860 0 0 0 0 0 0 0 1,104.86 N/A Jan 17 2014 NMG 0 5,070 0 0 0 0 0 0 0 2,079.13 N/A Jan 17 2014 ABG 0 470 0 0 0 0 0 1,500 0 75.42 34.13 Jan 17 2014 PAL 600 600 600 600 180,000 1 0 9,300 300 5.44 0.00% Jan 17 2014 MBP KAMPALA - USE COMPANY Date DEALS SHARES VOLUME High (UGX) Low (UGX) Closing (UGX) TURNOVER (UGX) 0 0 0 0 1,530 0 Jan 17 2014 ALSI 0 0 0 0 4,050 0 Jan 17 2014 BATU 2 24,000 115 115 115 2,760,000 Jan 17 2014 BOBU 0 0 0 0 1,141 0 Jan 17 2014 CENT 0 0 0 0 1,190 0 Jan 17 2014 DFCU 0 0 0 0 8,404 0 Jan 17 2014 EABL 0 0 0 0 952 0 Jan 17 2014 EBL 0 0 0 0 8,753 0 Jan 17 2014 JHL 0 0 0 0 403 0 Jan 17 2014 KA 0 0 0 0 1,330 0 Jan 17 2014 KCB 6 165,302 35 35 35 5,785,570 Jan 17 2014 NIC 0 0 0 0 9,102 0 Jan 17 2014 NMG 0 0 0 0 630 0 Jan 17 2014 NVL 0 0 0 0 30 0 Jan 17 2014 SBU 0 0 0 0 554 0 Jan 17 2014 UCHM 2 227,978 25 25 25 5,699,450 Jan 17 2014 UCL 10 63,603 365 365 365 23,215,095 Jan 17 2014 UMEME 0 0 0 0 261 0 Jan 17 2014 USE LCI 20 480,883 37,460,115 TOTALS KIGALI - RSE Date Security Last 12 Todayâ&#x20AC;&#x2122;s Prices Total Shares Equity Turnover (Rwf) Total Deals Change Months (Rwf) Traded in Rwf High Low High Low Closing Previous Today Previous Today Previous Today Previous Today Jan 13, 2014 BOK 250 118 245 245 245 245 26,500 124,900 6,492,500 30,385,900 3 6 Jan 13, 2014 BLR 900 315 840 840 43,200 - 35,858,000 2 Jan 13, 2014 KCB 185 135 185 185 100 18,500 1 Jan 13, 2014 NMG 1,200 1,200 1,200 1,200 1,000 1,200,000 5 Jan 13, 2014 USL 175 175 175 175 3,600 630,000 3 -

Weekly Trends (EA Stock Exchanges) USE ALL SHARE INDEX 1,560.00 1,555.00 1,545.00

1,901.00 DSE ALL SHARE INDEX

1,899.00 1,898.00

1,525.00

1,897.00

1,520.00

1,896.00

1,515.00 17-Jan-14

15-Jan-14

16-Jan-14

1,895.00

17-Jan-14

16-Jan-14

15-Jan-14

14-Jan-14

13-Jan-14

140.24

1,530.00

13-Jan-14

140.26

USE ALL SHARE INDEX

1,535.00

Financial markets Nairobi (NSE)

SECURITY

PRICES AS AT

RSE ALL SHARE INDEX 10-Jan-14

140.28

1,540.00

1,900.00

17-Jan-14

NSE ALLSHARE INDEX

16-Jan-14

140.3

160 140 120 100 80 60 40 20 0

1,550.00

1,902.00

15-Jan-14

140.32

13-Jan-14

1,903.00

12-Jan-14

1,904.00

140.34

RSE ALL SHARE INDEX

1,565.00

1,905.00

11-Jan-14

DSE ALL SHARE INDEX

14-Jan-14

NSE ALLSHARE INDEX 140.36

PREVIOUS PRICE

% CHANGE

29.00 98.00 125.00 520.00 27.50 16.00 266.00

27.00 98.00 125.00 520.00 27.50 15.95 260.00

+7.41 0.00 0.00 0.00 0.00 +0.31 +2.31

31.50 13.50 11.95 6.20

30.00 13.50 11.95 6.30

+5.00 0.00 0.00 -1.59

17.30 89.00 208.00 32.25 33.75 120.00 45.75 34.25 61.00 302.00 18.55

17.40 89.50 205.00 32.75 33.00 119.00 45.75 33.50 60.50 304.00 18.50

-0.57 -0.56 +1.46 -1.53 +2.27 +0.84 0.00 +2.24 +0.83 -0.66 +0.27

4.45 20.25 13.40 13.70 314.00 55.50 27.00 45.00 19.00

4.60 20.25 13.40 13.85 313.00 56.00 29.00 47.00 19.05

-3.26 0.00 0.00 -1.08 +0.32 -0.89 -6.90 -4.26 -0.26

94.50 210.00 79.50 16.15 68.50

94.00 210.00 79.50 16.25 68.50

+0.53 0.00 0.00 -0.62 0.00

13.25 9.90 14.55 24.25 13.00

13.65 9.85 14.55 24.75 13.00

-2.93 +0.51 0.00 -2.02 0.00

JANUARY 10, 2014 (KSH)

AGRICULTURAL Eaagads Ltd Ord 125 Kakuzi Ord 500 Kapchorwa Tea Co Ltd Ord 500 Limuru Tea Co Ltd Ord 2000 Rea Vipingo Plantations Ltd Ord 500 Sasini Ltd Ord 100 Williamson Tea Kenya Ltd Ord 500 AUTOMOBILES AND ACCESSORIES Car and General (K) Ltd Ord 500 CMC Holdings Ltd Ord 500 Marshalls (EA) Ltd Ord 500 Sameer Africa Ltd Ord 500 BANKING Barclays Bank Ltd Ord 050 CFC Stanbic Holdings Ltd Ord 500 Diamond Trust Bank Kenya Ltd Ord 400 Equity Bank Ltd Ord 050 Housing Finance Co Ltd Ord 500 I&M Holdings Ltd Ord 100 Kenya Commercial Bank Ltd Ord 100 National Bank of Kenya Ltd Ord 500 NIC Bank Ltd Ord 500 Standard Chartered Bank Ltd Ord 500 The Co-operative Bank of Kenya Ltd Ord 100 COMMERCIAL AND SERVICES Express Ltd Ord 500 Hutchings Biemer Ltd Ord 500 Kenya Airways Ltd Ord 500 Longhorn Kenya Ltd Nation Media Group Ord 250 Scangroup Ltd Ord 100 Standard Group Ltd Ord 500 TPS Eastern Africa (Serena) Ltd Ord 100 Uchumi Supermarket Ltd Ord 500 CONSTRUCTION AND ALLIED Athi River Mining Ord 500 Bamburi Cement Ltd Ord 500 Crown Berger Ltd 0rd Ord 500 EACables Ltd Ord 500 EAPortland Cement Ltd Ord 500 ENERGY AND PETROLEUM KenGen Ltd Ord 250 KenolKobil Ltd Ord 005 Kenya Power & Lighting Co Ltd Total Kenya Ltd Ord 500 Umeme Ltd Ord 050 GROWTH ENTERPRISE MARKET SEGMENT Home Africa Ltd Ord 100 INSURANCE British-American Investments Company ( Kenya) Ltd Ord 010 Liberty Kenya Holdings Ltd CIC Insurance Group Ltd Ord 100 Jubilee Holdings Ltd Ord 500 Kenya Re-Insurance Corporation Ltd Ord 250 Pan Africa Insurance Holdings Ltd Ord 500 INVESTMENT Centum Investment Co Ltd Ord 500 Olympia Capital Holdings ltd Ord 500 Trans-Century Ltd Ord 500 MANUFACTURING AND ALLIED ABaumann CO Ltd Ord 500 BOC Kenya Ltd Ord 500 British American Tobacco Kenya Ltd Ord 1000 Carbacid Investments Ltd Ord 500 East African Breweries Ltd Ord 200 Eveready East Africa Ltd Ord 100 Kenya Orchards Ltd Ord 500 Mumias Sugar Co Ltd Ord 200 Unga Group Ltd Ord 500 TELECOMMUNICATION AND TECHNOLOGY AccessKenya Group Ltd Ord 100 Safaricom Ltd Ord 050 PREFERENCE SHARES Kenya Power & Lighting Ltd 4% Pref 2000 Kenya Power & Lighting Ltd 7% Pref 2000

6.55

6.90

-5.07

17.00 16.15 5.75 305.00 18.95 94.00

16.75 16.05 5.75 301.00 18.80 94.50

+1.49 +0.62 0.00 +1.33 +0.80 -0.53

39.50 4.55 29.75

39.25 4.55 30.00

+0.64 0.00 -0.83

11.10 156.00 589.00 46.75 289.00 2.95 3.00 3.25 19.45

11.10 145.00 584.00 47.00 289.00 2.75 3.00 3.15 19.15

0.00 +7.59 +0.86 -0.53 0.00 +7.27 0.00 +3.17 +1.57

9.55 11.75

9.55 11.70

0.00 +0.43

8.00 5.50

0.00 0.00

Forex (Central Bank rates) US Dollar Pound Sterling J Yen Indian Rupee Kenyan Shilling US Dollar Pound Sterling Euro SA Rand KShs/UShs KShs/TShs KShs/RwF KShs/BiF UAE Dirham J Yen Indian Rupee Saudi Riyal Chinese Yuan US Dollar Pound Sterling Euro J Yen Indian Rupee SA Rand UAE Dirham Saudi Riyal Kenyan Shilling Uganda Shilling Rwanda Franc Burundi Franc US Dollar Pound Sterling J Yen Euro Kenyan Shilling Ethiopian Birr Rwanda Franc Burundi Franc Tanzania Shilling Sudanese Dinar SA Rand

SOURCE - Nairobi Stock Exchange

Food market prices (wholesale) US$ Commodity

Package

Kenya

Nairobi Beans (Rosecoco)

- 90kg

Fish (Tilapia)

- 1 kg

Ground Nuts

Uganda

Eldoret

Kampala

Lira

Tanzania

Rwanda

Burundi

Dar-es-salaam

Kigali

Bujumbura

6403

5454

8810

11205

6137

836

- 100kg

11435

10177

12530

12922

Irish Potatoes (White)

- 110kg

2859

1944

4307

6030

Maize Grain

- 90kg

3373

2687

2643

2185

4482

3137

4689

Millet Grain

- 90kg

6175

4574

4934

4581

7278

9424

Rice

- 90kg

6861

6289

9868

8810

7838

9152

7034

Sorghum Grain

- 90kg

5031

4117

2115

1410

7838

2728

5566

Soy Beans

- 100kg

5374

5482

5090

Sweet potatoes

- 98kg

1715

1804

2256

US Dollar Chinese Yuan Euro Pound Sterling J Yen Burundi Franc Ethiopian Birr Kenyan Shilling Tanzania Shilling Uganda Shilling UAE Dirham Indian Rupee Saudi Riyal SA Rand J Yen US Dollar Pound Sterling Euro Kenyan Shilling SA Rand Tanzania Shilling Uganda Shilling Rwanda Franc

ADDIS ABABA (Birr) Mean 31.6764 0.1849 0.3104 NAIROBI (Ksh) 85.8083 140.0770 116.8406 7.8749 28.9931 18.7007 7.8268 17.6308 23.3613 0.8229 1.3998 22.8786 14.1783 DAR ES SALAAM (Tsh) 1,605.2238 2,622.4550 2,183.8272 15.3500 26.0843 14.71601 437.0394 428.0140 18.6980 0.6402 2.3673 1.5351 KAMPALA (Ush) 2,527.9550 4,177.4450 24.0700 3,491.6100 29.2350 132.6300 3.7340 1.6290 1.5890 12.6070 241.7950 KIGALI (RwF) 673.3313 111.2485 916.5386 1,098.5400 6.4298 0.4397 35.4542 7.9324 0.4260 0.2727 181.0078 10.8033 177.2667 60.9313 BUJUMBURA (FBu) 14.7761 1,542.6300 2,519.4233 2,099.9822 17.9794 142.3616 0.9540 0.6173 2.2786

Buying 31.3628 0.1831 0.3074 -

Selling 31.9901 0.1868 0.3135 -

85.9861 140.3650 117.0889 7.9604 29.1580 18.8560 7.9363 18.2500 23.4110 0.8240 1.4016 22.9278 14.2081

85.8972 140.2210 116.9650 7.9177 29.0755 18.7783 7.8816 17.9404 23.3861 0.8235 1.4007 22.9032 14.1932

1,597.2376 2,609.2474 2,172.8821 15.2743 25.9566 146.4617 434.8710 425.8960 18.6158 0.6350 2.3415 1.5293

1,613.2100 2,635.6625 2,194.7722 15.4256 26.2119 147.8585 439.2077 430.1320 18.7801 0.6453 2.3930 1.5408

2,522.9800 4,169.2200 24.0200 3,484.7400 29.1800 132.3700 3.7270 1.6260 1.5860 12.5820 241.3200

2,532.9300 4,185.6700 24.1200 3,498.4800 29.2900 132.8900 3.7410 1.6320 1.5920 12.6320 242.2700

666.9346 110.1916 907.8314 1,088.1039 6.3687 0.4355 35.1173 7.8570 0.4220 0.2701 179.2882 10.700667 175.582632 60.3525

679.7279 112.3053 925.2457 1,108.9761 6.4909 0.4438 35.7910 8.0077 0.4301 0.2753 182.7274 10.905929 178.950698 61.510196

14.6579 1,530.2890 2,499.2679 2,083.1824 17.8355 141.2227 0.9464 0.6124 2.2604

14.8944 1,554.9710 2,539.5787 2,116.7821 18.1232 143.5005 0.9616 0.6222 2.2969

EAST AFRICAN BUSINESS WEEK

JAN 13 - 19, 2014

TENDERS

East African Business Week I January 20-26, 2014

TENDERS, JOBS & CONSULTANCIES UGANDA

RWANDA

TANZANIA

TENDERS

Tanzania Telecommunications Company Limited invites sealed bids from eligible bidders for the supply of band-width management platform. Contact: The Chief Executive Officer, Tanzania Telecommunications Company Limited, 12th Floor, Extelecoms House, Samora Avenue, P. O. Box 9070, Dar es Salaam, Tanznaia. Deadline: January 16, 2014.

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 Vehicle- Hardtop type, Lot 5: Ambulances and accessories and Lot 6: Motorcycles. 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 nonrefundable 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.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.Enquiries regarding this tender may be addressed to the Procurement Office, at the mentioned address. 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.

Rural Electrification Agency invites sealed bids for the construction of 33kV, 11Kv and Low Voltage networks in various regions of Uganda. Contact: Head of Procurement and Disposal Unit, Plot 10 Windsor Loop, Kololo, 2nd Floor, House of Hope, P. O. Box 7317, Kampala Uganda. Tel: +256 312 318100, Fax: +256 414 3466013. Deadline: Jan 22, 2014.

Tanzania Building Agency is now issuing General Procurement Notice in accordance with requirement of the Public Procurement Act No. 21 of 2004 and its regulation, 2005 for the purpose of informing the reputable suppliers, contractors, service providers, consultants and General public tender opportunities during the financial year 2013/2014. Interested suppliers, contractors, service providers and consultants requiring additional information should contact the Procurement Management Unit (PMU) at Tanzania Buildings Agency Headquarters, Sokoine Drive No. 2 opposite Karimjee Hall from 7.30 am -3.30 p.m Monday to Friday inclusive except Saturdays, Sundays and Public Holidays. The Ilala Municipal Council is issuing a general procurement notice. Contractors, suppliers consultants and Non consultants may obtain further information from the office of the secretary of the tender board, Iiala Municipal Council Depot along Nyerere Road, P. O. Box 20950 Dar es Salaam.

CONSULTANCIES UNDP Tanzania wishes to hire seasoned professional for the Democratic Empowerment Project in Tanzania. Interested candidates are invited to apply through:http://jobs.undp.org/ci_view_job.cfm?cur_job_id=41717 for each job.

UGANDA

TENDERS Uganda National Roads Authority invites bids for the design and build for the upgrading of Mubende-Kakumiro Kagadi Road (107km). Contact: Procurement and Disposal Unit, Uganda National Roads Authority, Ground Floor, Room No. GA3, Plot 5, Lourdel Road, Nakasero, Kampala, Uganda. email:procurement@unra.go.ug. Deadline: March 12, 2014. Uganda National Roads Authority invites bids for the upgrading of the Tirinyi-Palisa-Kumi/Palisa-Kamonkoli Road. Contact: Procurement and Disposal Unit, Uganda National Roads Authority, Ground Floor, Room No. GA3, Plot 5, Lourdel Road, Nakasero, Kampala, Uganda. email:procurement@unra.go.ug. Deadline: March 12, 2014.

EAC/LVBC

JOBS l.ake Victoria Basin Commission hereby invites applicants from suitably qualified citizens of EAC for the post of Information Techncology Officer. Contact: The Executive Secretary, Lake Victoria Basin Commission Secretariat, P. o. bOX 1510, 40100, Kisumu, Kenya. Tel: +254 57 202 387/894, Fax: +254 27 2026324. Deadline: Jan 24, 2014. l.ake Victoria Basin Commission hereby invites applicants from suitably qualified citizens of EAC for the post of Program Officer for Integrated Population, Health and Environment Program. Contact: The Executive Secretary, Lake Victoria Basin Commission Secretariat, P. o. bOX 1510, 40100, Kisumu, Kenya. Tel: +254 57 202 387/894, Fax: +254 27 2026324. Deadline: Jan 24, 2014 l.ake Victoria Basin Commission hereby invites applicants from suitably qualified citizens of EAC for the post of Procurement Consultant. Contact: The Executive Secretary, Lake Victoria Basin Commission Secretariat, P. o. bOX 1510, 40100, Kisumu, Kenya. Tel: +254 57 202 387/894, Fax: +254 27 2026324. Deadline: Jan 24, 2014 l.ake Victoria Basin Commission hereby invites applicants from suitably qualified citizens of EAC for the post of Senior Procurement Officer. Contact: The Executive Secretary, Lake Victoria Basin Commission Secretariat, P. o. bOX 1510, 40100, Kisumu, Kenya. Tel: +254 57 202 387/894, Fax: +254 27 2026324. Deadline: Jan 24, 2014 Source: East African Business Week and The EastAfrican

The Ministry of Defence invites qualified bidders to submit bids for the following tenders: a. Supply of fire hose pipes; b. Re-launch of tender for generator spare parts; c. Supply of sun goggles d. Supply of sports equipment; e. Supply of office furniture; f. Re-launch of tender for cleaning services. g. Maintenance and repair of IT& laundry equipment h. Re-launch of the tender for electronic equipment i. Re-launch of the tender for dry ration; j. Hiring of tents, chairs, decorations and sound system. Well printed bids properly bound must be submitted in 04 copies of which, one of them should be an original and 03 copies conforming to the original. The submission of bids in sealed envelopes must be addressed to the Ministry of Defence’s Procurement office before 14h00pm local time on 15/01/2014. The Rwanda Biomedical Centre/Medical Procurement and Production Division invites qualified bidders to submit bids for the SUPPLY AND DELIVER Y OF DRUGS for a period of 2 years. Contact: Head of Division, RBC/MPPD, Gasabo District, Kigali City, P. O. Box 640 - Kigali - Rwanda. Tel. (+250) 252 580156/580157 Fax. 0250252582725; Email: camerwa@gmail.com no less than 21 days prior the day of submission and opening. Deadline: 22/January/2014 at 9 am o'clock (7 am GMT). RwandAir invites bids for the supply of brand new saloon cars for RwandAir. For more information about this tender contact RwandAir website @ http://www.rwandair.com/tenders. Deadline Feb 12,2014. Rwanda Utilities Regulatory Authority invites sealed bids from eligible consultant firms to provide the following consulting services: Consultancy to elaborate and implement the balance scorecard in RURA. 5. Request for Proposals Documents may be obtained on any working day (Monday to Friday) in working hours i.e. (7:00am5:00pm) local time or (5:00am-3:00pm) GMT from: 6/1/2014 at: RURA Headquarters,Ex. Fair Building, Kiyovu , P.O. Box 7289 Kigali - Rwanda, Website: www.rura.rw, Attention: Procurement Office The document will be issued upon presentation of proof of payment of a non-refundable fee of Ten thousand Rwandan francs (Rwf 10,000) or its equivalent in foreign currencies to the Account N° 1201127 opened at National Bank of Rwanda.Enquiries regarding this tender may be addressed to the Procurement Office of RURA, P.O. Box 7289 Kigali, Tel. (+250) 252 584562, Fax. (+250) 252 584563. Deadline: 26/02/2014. University of Rwanda Nyagatare Campus invites eligible, interested and competent firms/individuals to submit their bids for the following tenders: Supply of plumbing and electricity materials (7/02/2014) Renovation of veterinary and agricultural laboratory (7/02/2014) Provision of cleaning servives (7/02/2014) Consultancy services on supervision of architectural design and construction ofa four storied veterinary complex.(7/02/2014) Architectural design and construction of a four stored veternary complex (design and build method)(7/0232014) Source: East African Business Week and The EastAfrican

Rural Electrification Agency invites sealed bids for the construction of electricity distribution networks to selected agricultural farms. Contact: Head of Procurement and Disposal Unit, Plot 10 Windsor Loop, Kololo, 2nd Floor, House of Hope, P. O. Box 7317, Kampala Uganda. Tel: +256 312 318100, Fax: +256 414 3466013. Deadline: Jan 21, 2014. Uganda Communications Commission invites sealed bids for supply and installation of ICT Equipment in 11 Health Centres.Contact: Procurement and Disposal Unit, Uganda Communications Commission, 1st Floor, UCC House, Plot 42-44 Spring Road, Bugolobi, P. O.Box 7376, Kampala, Uganda. Tel: 256 41 4339000, Fax: 256 414348832. Deadline: January 24, 2014. Civil Aviation Authority invites bids for the supply of the following: Supply of procuremet management license software Supply of passenger tracking license supply of hand driers and soap dispenser for Entebbe International Airport Replacement of flloding lighting mast Supply and installation of hold baggage x-ray machine for Entebbe Airport Servicing and maintenance of rescue boats Supply of baggage stickers Supply of LV Distribution Board for terminal building Purchase of spares for baggage conveyor control panel Supply of IP phones and telephone sets Contact: Manager Procurement, CAA Head Office Building, CAA Head Office Building, 2nd Floor, Airport Road, Entebbe, P. O. Box 5536 Kampala, Tel: 0414 352050, email: procurement@caa.co.ug Deadline: January 24, 2014. Uganda National Roads Authority invites bids for the rehabilitation/construction of strategic bridges in Karamoja and West Nile Sub Regions (3 lots). Contact: Procurement and Disposal Unit, Uganda National Roads Authority, Ground Floor, Room No. GA3, Plot 5, Lourdel Road, Nakasero, Kampala, Uganda. email:procurement@unra.go.ug. Deadline: January 14,2014. Uganda Revenue Authority invites sealed bids from eligible bidders for the provision of consultancy services for onsite oil and gas training. Contact: The Manager, Procurement & Disposal Unit, Uganda Revenue Authority Headquarters, Plot M193/M194 Nakawa Industrial Area, P. O. Box 7279, Kampala, Uganda, NIP Building, Room 2.5, Telephone 256 417 442157/04144334226/228, Fax: 256 414334253. Deadline: January 31,2014. Uganda Revenue Authority invites sealed bids from eligible bidders for the provision of the following: Supply of compactor & mobile shelves-Re tender Supply of tobacco revenue stamps under framework contract. Acquisition of Ka Band, Internet Sevices, Data, Wireless Access and VSAT Installations under framework contract Supply, installation, commissioning and maintenance of a web based call management solution. Supply and installation of a 1000KVA Generator and 1000A switch Gear for Nakawa Headquarters Supply of document examination equipment. Contact: The Manager, Procurement and Disposal Unit, Uganda Revenue Authority Headquarters, Plot M193/M194, Nakawa Industrial Area, NIP Building, Room 2.5, P. O. Box 7279, Kampala, Telephone: 256 417 442155/6/7/8/9. The Privatisation Unit invites sealed bids from eligible bidders for the provision of consultancy services to carry out legal, reputational, technical and finacial investigative due diligence studies. Contact: PU Registry/Mailroom, on 2nd Floor, Communication House, Plot 1 Collive Street, Kampala, Uganda.

JOBS East African Business Week wishes to recruit Subscription Sales Executives. Deadline: Jan 15, 2014 Source: East African Business Week

FEATURE

East African Business Week I January 20-26, 2014

INTERNET : Irene Charnely (2nd L), Smile Group CEO together with other Smile Communications staff testing their 4G LTE internet network during its launch.

Texting year for telecoms in Ug BY BAZ WAISWA n The year 2013 was a tough year for the Ugandan telecom sector, considering previous years when it was considered the fastest growing business. However mobile penetration has drastically slowed. Apart from the buy-out by Indiaâ&#x20AC;&#x2122;s Airtel Bharti of Warid Telecom (Uganda) the sector was characterized by increased tariffs, particularly after the budget reading in June. This came as telecom companies, emerged out of heated price wars of 2011 and 2012 and found themselves in a unsustainable situation especially at a time when the cost of doing business was on the rise. Warid who were the architects of this price war were forced to exit the market as the returns on their investment didnâ&#x20AC;&#x2122;t make business sense. Former Warid subscribers, long used to some of the cheapest call rates around, were understandably not happy with this development. 2013 highlights Airtel Bharti reportedly bought out Abu Dhabi founded Warid for $100 million a move that stirred the sector into alertness. It created a gap between the two leading companies MTN and Airtel and the rest of the pack which includes Uganda Telecom, Orange, Smile Communications and new entrants K2 in terms of customer numbers. Boasting of eight million and 7.4 million subscribers respectively, MTN and Airtel are the big boys in a market now relying more on data rather than calls from revenue and any other innovation that uses a phone. Citing a harsh economic environment and the introduction of new taxes in the 2013/14 financial budget including a 10% levy on mobile money transactions and an international call tax, companies were forced to raise their tariffs.

The telecom firms also spent heavily in upgrading their networks to meet the increased subscriber traffic and demands and quality of service delivered to consumers. The mandatory SIMcard registration was the other major highlight in a sector that was the fastest growing in the country ever since government liberalized the communication sector. Despite a stern warning from Uganda Communication Commission (UCC) that all unregistered SIMcards will be deactivated, a number of them (unregistered cards) are still functional. Fred Otunnu, the acting Director for Competition and Consumer Affairs at UCC in an interview said the few cards that are still unregistered are pending during this validation period. Other reports indicate that the Commission is lax in ensuring that unregistered SIMcards are switched off. Like the registration period, a threat from UCC to deactivate counterfeit phones circulating on the market made big scary waves with traders and people alike using these knockoff phones. But calm was restored after Otunnu said the project will be brought back in the near future. Otunnu explained that they are studying a survey they conduct to that effect but was adamant the counterfeit phones are going to be eliminated. New revenue sources The traditional bread earner for telecoms, the voice calls segment and SMS sending, suffered a slump as high tariffs and many cash-challenged subscribers had to cut down on their phone budget. However a new cash cow for the telecom companies emerged in the form of mobile money transaction charges and mobile internet data sales that saw these firms earn considerable money. A good example of the shift in the revenue source for telecoms was when MTN Uganda in August 2013 in their half year results indicated that SMS

revenue declined 14.6% as customers opted for newer data-driven social media platforms to communicate. The revenue growth, registered at 15.4%, was equally supported by strong data revenue growth as subscribers turned to accessing internet on their mobile phones and laptops. The growing use of social media played a part in the need for internet. This positively impacted mobile data revenue, which increased 57.4%. Mobile money The introduction of mobile money onto the Ugandan market in 2008 was a blessing in disguise as more people have embraced it ignoring other traditional ways of handling money especially banks and couriers companies. This has seen the monetary figures transacted growing to billions of shillings. In 2012, 242 million transactions were conducted over the mobile money platform with about $5 billion flying about in the air. Fast forward through 2013 to today, that number could easily have doubled as more people take on the use of M-Banking to do business and make savings. This kind of transaction has proved to be a lifeline for the telecom companies who have such services. The increasing demand for Mobile banking for example saw MTN Mobile Money record a 51% increase in subscribers and more than 25 million transactions per month as of August last year. Close to 20million Ugandans are using mobile phones with an estimated half of that using mobile money platform to save their earnings, paying for utility bills or bailing out a friend in need by sending him money. Slowly by slowly and as times change mobile banking is getting embedded in the daily lives of Ugandans and is becoming part of life as it is easy to access and use as compared to banking halls. According to the 2013 Finscope III

Customers at the mobile money kiosk in the outskirts of Kampala Survey, the mobile money platform is leading in terms of financial transactions outside the banks. The surge has seen the share of the adult population accessing financial services rise from 28 percent in 2009 to 54% in 2013. Mobile internet On the positive side of business, the telecoms are reaping big moneys from the increasing demand of broadband/ data and access to internet while on the move. As internet becomes part and partial of modern society, especially among the middle class, demand for data is also increasing. This is hence providing a reliable source of revenue for the telecom companies who are also playing the cards well. The rise in numbers of smartphones and mobile computers has ensured

that people consume more broadband while on the move. This trend facilitated the introduction of LTE internet service to the market which makes it easy to navigate the internet with higher speeds. MTN, Orange Uganda, Smile Communications all this service on top of providing the able 3G. In an interview, Orange Ugandaâ&#x20AC;&#x2122;s Chief Marketing Officer Damien Lacey believes that mobile internet and the use of data will be central in the survival of telecoms. To that fact telecoms are also taking on trading in high tech devices to facilitated data or broadband consumption in a complementary role. This is being helped by the global trends that have seen increased use of ICT over the years.

HEALTH

East African Business Week I January 20-26, 2014

Almonds keep the heart strong BY WINNIE MANDELA nKAMPALA, UGANDA In the olden times things such as fruits, nuts, herbs, leaves, seeds and the like were treasured and valued for the great food nutrients they possessed. Today however, consumption of nutritious foods has been replaced with the consumption of fatty and non- nutritional foods. The Almond nut however archaic it may be, is one of those that we should look out for because this wonderfully delicious nut has long been valued as the essence of wellness and health. This nut has been ranked among the richest sources of healthbenefiting nutrients essential for ideal health because it helps reduce cholesterol and reduce the risk of acquiring heart diseases. According to Doctor Kemigisha Harriet a nutritionist at Nsambya hospital, the almond contains about ALMOND NUTS: Almonds contain phytosterols 26 per cent carbohydrates, 12 per cent of which are dietary fiber. containing essential amino acids. sary daily protein. They are a About 20 per cent of a raw almond She says: “A grain of almonds, rich source of vitamin E and B, is made up of high-quality protein, contains 12 percent of our necesessential minerals like calcium,

magnesium and potassium and healthy fat.” Typical of nuts and seeds, almonds also contain phytosterols, associated with lowering cholesterol. Doctor Kemigisha says almonds are packed with vitamins, minerals, protein and fiber, and are associated with a number of health benefits. “Just a handful of almonds, approximately one grain, contains one-eighth of our necessary daily protein,” she says. Almonds may be eaten on their own, raw or toasted. They are also the ingredients of several different dishes. Almonds are available sliced, flaked, slivered, as a flour, oil, butter, or as almond milk. The health benefits of almonds have been documented for centuries and modern research is backing up many of the claims - there any many good reasons why you might want to consider including them in your diet. They are known to reduce heart attack risks, rise in blood sugar and providing good brain function since if consumed five times possess

about a 50 per cent reduction in the risk of heart attack according to Dr. Phyllis Omondi a researcher at Health Research and Studies Center She also says besides reducing heart attack risks, they also lower bad cholesterol since if added to a diet have a favorable effect on blood cholesterol levels, they as well protect artery walls from damage and building strong bones and teeth. Although nuts are high in fat, frequent nut eaters are thinner on average than those who almost never consume nuts Data from the Nurses’ Health Study states. The same study also reveals that those who ate nuts at least two times per week were 31 per cent less likely to gain weight than were those who never or seldom ate them. Dr. Kemigisha also says that almonds are the only nut and one of the few proteins that are alkaline forming. She says: “When your body is not alkaline enough, you risk osteoporosis, poor immune function, low energy and weight gain.”

Tanzania gets $70m from Global Fund nGENEVA, SWITZERLAND - Both interim and renewal funding for a total $79 million have been approved to assist in Tanzania’s efforts to combat an HIV epidemic that has infected an estimated 1.6 million of the country’s nearly 48 million people. Interim funding of $51 million for grant TNZ-809-G13-H will cover about 70 per cent of the antiretroviral shortfall and allow Tanzania to achieve its HIV treatment targets of some 650,000 people by July 2015. The Global Fund Secretariat estimates that some 460,000 Tanzanians are on antiretroviral therapy (ART). The balance of $28.3 million was awarded in incremental renewal funding for grant TNZ-405-G06-H, implemented by Population Services International (PSI). In Phase 2, comprehensive services for the prevention of mother-tochild transmission of HIV (PMTCT) are expected to cover 4,914 of the 5,972 health facilities that provide reproductive health care services in Tanzania, which is a more than fourfold increase from 1,100 sites that provided Anti-retroviral (ARV) drugs in December 2012. The PSI grant will fund HIV prevention by increasing correct and consistent condom use; and by increasing the adoption of safer sexual behaviour and reducing risk-taking behaviour among target key populations: female sex workers and men who have sex with men (MSM). The targets are to reach 15,132 female sex workers and 9,079 MSM with prevention services. Tanzania is experiencing a mix of a generalised epidemic and concen-

“ Interim funding of $51 million for grant TNZ-809-G13-H will cover about 70% of the antiretroviral shortfall and allow Tanzania to achieve its HIV treatment targets of some 650,000 people by July 2015. TESTING: A woman testing for HIIV in Tanzania. The PSI grant will fund prevention of HIV trated epidemics among specific key affected populations. Although a significant proportion of new infections are occurring in key populations, accurate estimates of the size of these populations have not been established. The GAC said that programming for key populations in Tanzania

is relatively new. When it reviewed the two funding requests, the Technical Review Panel (TRP) found them to be technically sound in light of Tanzania’s adoption of a more effective first-line ARV regimen (using tenofovir) and Option B+ for preventing mother-to-child

transmission of HIV. The TRP also expressed concerns about the limited access to early infant diagnosis and about the high TB mortality rate. The TRP recommended improving access to optimum care and treatment for babies exposed to HIV; developing tracking mechanisms to actively

identify and follow up HIV-positive pregnant women and their newborns; and strengthening existing mechanisms to screen TB patients for HIV infection and to make appropriate referrals. These recommendations will be addressed during grant-making. Global Fund Observer

LIVING

East African Business Week I January 20-26, 2014

Tales of mobile money woes

SO EASY: Unfortunately the convenience the mobile money service offers, is also matched by the efforts to defraud the system by any number of unscrupulous people. given a chance.

Kenya’s gift to global village

BY WINNIE MANDELA

ince entering the public domain, electronic money transfer using the mobile phone platform, has almost literally lit up the airwaves. Paperwork is at the minimum and speed is usually counted in minutes. This is the kind of service business people and especially small traders appreciate since banks intimidate them. Uganda currently has eight registered telecom companies and practically all are involved in mobile money services. Unfortunately, the convenience the service offers, is also matched by the efforts to defraud the system by any number of unscrupulous people. Cruder methods like just merely robbing the mobile money agent are also not uncommon. Many users have confessed to having fallen prey to these fraudsters who show no signs of going away. Instead they are perfecting their own systems. In 2013,Susan Kalukusu, the acting Economic Crimes Commissioner at Criminal Investigations and Intelligence (CIID) headquarters disclosed at the Uganda Mobile Money Association (UMMAA) workshop that over Ush100 million (about 40,000) was stolen from one mobile money service provider. MTN Uganda has fallen victim to fraud by way of staff members themselves tampering with the system to suit their own pockets. According to Jackson Balinura, an accountant with Equity Bank, fraud does not only take place during interactive transfers, but has also expanded towards fake hard cash deals circulating in the mobile money sector. At least 100 mobile money users lose money every week, some in millions of shillings, police statistics show. A source in the police public relations office admitted that they are struggling to catch up with the criminals behind these scams. Some people attribute the increases in fraud cases to the existence of very many unregistered SIMcards, thus making it hard

W PRESS YES: It was Kenya’s Safricom whose launch of Mpesa sent ripples around the world and unleashed a mobile money revolution. to track suspects and arrest them since these conmen are fond of using fake details to register the cards used in mobile money fraud. Martha Ahumuza , a mobile money agent lost Ush3.5 million to a conman last last week She said that a client with telephone number 0783860927 wanted to deposit Ush356,600 onto his account. “When my employer gave this conman the phone to put the pin number, he transacted Ush 3,566,000 and sent it to his phone. We realized it in the evening when balancing the sales,” she said. She adds that when she called the number, the owner denied receiving it and switched off his phone. With a bank loan to clear and no more start-up capital, Ahumuza’s business has collapsed. In another trick, conmen master the agent’s pin code by giving him an invalid number which he repeatedly dials while entering his code. When he gives the fraudster the phone to type in the correct number, he sends the entire agent’s money to himself and disappears. The agent realises later that he was robbed. Another victim, Joseph Nsubuga, said

he received a call from 0704300989 and a man claimed he had credited his account by mistake. “I checked my account and there was no credit. After like two minutes, the person called again inquiring whether I had received a message. I realized the message had just come in saying, ‘You have received 850,000’. He said that he was an agent who was sending money to a client and that I should reverse the transaction from my side. He asked whether I had any money on my account to which I said yes. He proceeded to give me a code and finally told me the transaction was hanging since I needed more money on my account as transfer charges. The message I got on the screen meant nothing and this guy never credited my account in error, but wanted to access what I had using the code he provided. I don’t know how those messages work, but I didn’t even think of checking my account balance first. I think the screen message I read facilitated him to withdraw the money,” Nsubuga said. Other fraudsters go to mobile money agents while driving expensive vehicles and pretend to be rushing. They ask to deposit

hat was originally conceived as an efficient method to make payments on microloans was rapidly adopted by Kenyans as a way to send money from urban centres back to rural hometowns. A husband working in Nairobi can send money home to the countryside with a couple of taps on his mobile phone. His wife can cash out at the increasingly ubiquitous shops with M-Pesa agents—the number of agents across the country increased 40 percent last year to more than 65,000—and she can also leave the money on her device to make digital payments with the hundreds of businesses who accept them. In April 2007, following a student software development project from Kenya, Safaricom launched the new mobile phone based payment and money transfer service, known as M-Pesa. The service allows users to deposit money into an account stored on their cell phones, to send balances using SMS technology to other users (including sellers of goods and services), and to redeem deposits for regular money. Users are charged a small fee for sending and withdrawing money using the service. M-Pesa has spread quickly, and has become the most successful mobile phone based financial service in the developing world. GSMA estimates that there are 200 million active subscribers of mobile money services throughout the world.

huge amounts, for example Ush3 million (about $1,200). After sending, they give the agent fake currency and distract him so that he doesn’t realize the counterfeit. By the time you realize it is fake, the fraudster has vanished. Subscriber numbers shared among the four mobile money providers have grown from under three million last year to more than four million in 2012, surpassing the country’s about 3.5 million bank accounts.

LIVING

East African Business Week I January 20-26, 2014

BUSIWEEK PUZZLE 1

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LIKE GRAND DAD: Christopher Baker and David Baker at Murchison Falls National park

Reliving Sir Samuel Bakers voyage to Murchison falls BY SAMUEL NABWISO n MASINDI, UGANDA–Sir Samuel Baker’s great grandsons have pledged to market Uganda’s Murchison falls national park across Europe as way to boost the tourism sector in Uganda. The great grandsons Christopher Baker and David Baker were in Uganda to trace the footsteps of their great grandfather Sir Samuel Baker. The journey has been named “Bakers long Trail”. Christopher Baker said: “As family we shall continue promoting the site because it has historical background. The site has got tremendous tourism attractions including the waterfalls. This will help keep alive the legacy of our great grandfather” Christopher said tracing for the trail foots steps of their great father Sir Samuel Baker has great impact on the tourism sector of Uganda because the are many Europeans interested in visiting places where the great explorer stepped. During their Bakers Trail in Uganda the Grandsons visited historical places in Gulu, Karuma falls and their climax venue was at the Top of Murchison falls. Sir Samuel Baker was the first European who discovered Lake Albert on March 14, 1864 and Murchison Falls. Muchison falls is one of the powerful waterfalls on the river Nile. This is the second time the great grandsons of Sir Samuel Baker are in Uganda. The first visit was in 2013 when David, aged 74, and his daughter Melanie, visited Masindi, Hoima, Wanseko, Butiaba, Fort Patiko in Gulu, Karuma and Murchison Falls National Park This time round David decided to come back to Uganda with his brother Christopher Baker to plant markers at various spots along the trail. The trail is believed to have been used by his ancestor in 1864 when he named Lake Albert and the spectacular Murchison

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As family we shall continue promoting the site because it has historical background. The site has got tremendous tourism attractions including the waterfalls.

Falls. The development will culminate into the “Baker Trail” which will subsequently be promoted as a modern tourism product. According to the area conservation manager, Tom Okello the park is the most visited National park in Uganda after Bwindi National park but the place is not widely marketed. He said the management in collaboration with other Government Agencies have tried to market the park but more effort is needed. Okello said: “The Number of visitors is increasing. The park receives more local tourist during the festive seasons like Easter and Christmas. Also during the winter season Europe the number of international tourist tends to go up. We certain if we invested in marketing the park then, the parks contribution to the tourism sector will improve drastically.” The parks Tourism Officer Peter Mbwebwe said the park is challenged with the problem of poaching which has led to the reduction in population of wild Animals in the park. Mbwebwe said: “Poaching is still big challenge many porches are poaching the parks animal for meat and others for trade. The most affected animals include Antelopes and Elephants. As management we are doing our level best to see that the

culprits are got and prosecuted in courts of Law.” Uganda Wild Life Authority Business Development Manager, Masaba Stephen challenged the Government to ensure that all the infrastructure which aid the development of Tourism sector in the country are in good condition. “The potential to maximizes our tourism sector is being challenged by the poor infrastructures such as poor Roads substandard hotels and even lack of professional tourism service providers. The Government should ensure that all roads to tourism sites are in good conditions,” he appealed David Baker, now 74,is a retired RAF Group Captain, who after a career in aviation is now a consultant on European Regulatory Affairs. Christopher Baker is the Director of Mechanical Engineering at Carl Zeiss in Dublin CA. He spent four years in Africa during his late twenties. He designed and built the equipment for a start-up iron and steel foundry in Zimbabwe. Murchison Falls National Park measures approximately 3,840 square kilometres. Together with the adjacent Bugungu Wildlife Reserve and the Karuma Wildlife Reserve, the park is part of the 5,308 square kilometres Murchison Falls Conservation Area. The park is bisected by the Victoria Nile from east to west for a distance of about 115 kilometres. The park is the location of the famous Murchison Falls, where the waters of the majestic Nile River squeeze through a narrow gorge, only 7 metres wide, before plunging 43 metres below. Also in the park, adjacent to the MasindiGulu Highway, are the Karuma Falls, the location of the 600 MW Karuma Power Station, , currently under construction and expected to come online sometime around 2018. In Murchison there are four of the “big five”. Buffalos, elephants, lions and leopards.

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SOLUTION TO BUSIWEEK PUZZLE

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SPORTS

East African Business Week I January 20-26, 2014

EA in FIFA rankings BY EMMA ONYANGO nKAMPALA, UGANDAEast Africa finds itself in familiar territory with the release of the latest FIFA rankings published last week. With the exception of Rwanda and Tanzania that climbed three and two places respectively, the other nations either dropped places or remained static. Despite dropping a place in the rankings Uganda remains the highest ranked nation in the region. The Cranes are ranked 87th position in the world and 22nd on the continent. There was no movement for Kenya as the Harambee Stars maintain their 109th position in the World and 32nd in Africa. They have main-

Sepp Blatter, FIFA President tained the position they held in the last rankings released in December 2013, when the Harambee Stars had moved eight places up. Tanzania’s Taifa Stars on

Eto’o tops EPL foreign-born wealth list nChelsea striker Samuel Eto’o is the

wealthiest foreign-born player in the English Premier League, with a net worth of $64 million, according to a survey conducted by Singapore-based Wealth-X. The company, with one of the world’s largest collection of curated research on ultra-high-net worth individuals, puts Welsh footballer of Manchester United Ryan Giggs as the second-wealthiest foreign-born player in the EPL with a net worth of $45 million. Eto’o’s team mate at Stamford Bridge Fernando Torres, who hails from Spain, comes third with $42 million. Manchester City stars Yaya Toure from Ivory Coast and Argentina’s Sergio Aguero completes the top five with a net worth of $41 million and $39 million respectively. Although the EPL is often regarded as being dominated by foreign players, the survey reveals that the combined net worth of the top ten wealthiest English-born EPL players led by Wayne Rooney with a net worth $73 million is roughly $20 million greater than the combined net worth of the wealthiest foreign-born players performing in the EPL. “The results of this survey may come as a surprise for many, who may have been under the impression that foreign-born EPL players receive more rewarding compensation than their English counterparts,” said Michael Byrne, Wealth-X UK Director. Agency

the other hand have climbed two positions in the January edition of the FIFA World rankings and start the year in the 118th position. They also notched up two places on the continent to occupy 34th position in Africa. Burundi on the other hand maintained its 124th position in the world and 37th on the African continent. Rwanda though being the biggest mover in the region remains the lowest ranked East African region. The Amavubi Stars climbed three places to occupy the 130th position and also climbed three places on the continent to the 39th position. There was no movement whatsoever in the top 25. World and European champions Spain top the FIFA rank-

ings for the seventh time in a row followed by Germany. Brazil who host this year’s World Cup finals are in tenth position. There has been no change at the top of the African charts with Ivory Coast and Ghana staying put at first and second positions respectively. The Ivoirians’ remain the best placed African country, placing at 17 on the World map. More movement is to be expected in the February edition of the FIFA rankings, which will take into account all the results from the 16team CAF African Nations Championship (CHAN), which is underway in South Africa. The tournament is exclusive to players based in their home countries.

LIVE TV GAMES ENGLISH FOOTBALL – PREMIER LEAGUE Mon, 20 Jan

Mon, 20 Jan

Athletic Bilbao vs. Real Valladolid

22h55

SS5/SS5N

Sat, 25 Jan

Real Madrid vs. Granada

16h55

SS5HD/SS5

Sat, 25 Jan

Valencia vs. Espanyol

20h55

SS5/SS5N

Sun, 26 Jan

Rayo Vallecano vs. Atletico Madrid

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SS3N/Maximo

Sun, 26 Jan

Barcelona vs. Malaga

21h55

SS3N/Maximo

ITALIAN SERIE A Sat, 25 Jan

Napoli vs. Chievo

18h55

SS5N/Maximo

Sat, 25 Jan

Lazio vs. Juventus

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SS3HD/SS3

Sun, 26 Jan

Verona vs. Roma

13h25

SS5HD/SS5

Sun, 26 Jan

Inter vs. Catania

15h55

SS5N/Maximo2

Sun, 26 Jan

Cagliari vs. Milan

15h55

SS7/SS7N

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Fiorentina vs. Genoa

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GERMAN FOOTBALL – BUNDESLIGA

Fanatics bagging Guinness goodies BY EMMA ONYANGO you have the knowledge to match the soccer prowess of an English Premier League Coach. If your answer is yes, then you probably have to prove it in the Guinness Football Manager, a Fantasy game that allows one to make transfers, substitutions and major decisions. That’s not all, if the players you choose perform in the actual league games, then rewards will literally come flying in your direction. When former Chelsea Manager Roberto Di Matteo launched the fantasy game in Kampala in August last year, he said, “The beauty

about this game is that when your team does not perform, you don’t get sacked.” Bakashaba Donald, a student from the Uganda Christian University Mukono did not take this advice lightly and ended up topping the monthly leader board and in the process earned a cash prize of Ush1,500,000 and a DSTV Walka 7. He picked his dream team and scored 384 points to emerge the Guinness Football Manager of the Month in October 2013. The Manager of the week awards went to Andrew Mwanguhya, Douglas Kabuye, Clovis Tinka and Olivia Namiyonga received DSTV Walka 3.5 and a crate of Guinness each.

Ronaldo to buy Madrid physios cars BY EMMA ONYANGO

nKAMPALA, UGANDA-Cristiano Ronaldo was clearly overwhelmed after winning the Ballon d’Or title this week, but Real Madrid’s physio team were probably equally delighted. Indeed, the group of special trainers who look after the Real team, including Ronaldo, are now in line to scoop a brand new car of their choice – after a special promise from the Portuguese forward. According to reports in Spain, Ronaldo promised Madrid’s physios that if he won the Ballon d’Or, they would each get a new car, as a present for helping keep him fit in the last 12 months. Many think Ronaldo edged Lionel Messi for the prize because of the Argentine’s recent injury trouble, which has seen him miss

SS3/SS3N

21h30

SPANISH FOOTBALL – LA LIGA

BRIEFLY nKAMPALA, UGANDA-Think

West Brom vs. Everton

Fri, 24 Jan

Borussia Moe vs. Bayern Munich

21h00

SS4HD/SS4

Sun, 26 Jan

Hamburg vs. Schalke

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SS7/SS7N

FA CUP Fri, 24 Jan

Arsenal vs. Coventry City

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SS3/SS3N

Sat, 25 Jan

Bournemth vs. Liverpool

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SS3HD/SS3

Sat, 25 Jan

Stevenage vs. Everton

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SS3N/Maximo2

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Sheffield United vs. Fulham

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Chelsea vs. Stoke City

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CAPITAL ONE CUP Tues, 21 Jan

West Ham vs. Manchester City

Wed, 22 Jan

Manchester United vs. Sunderland

21h40 SS3/SS3N 21h40 SS3N/Maximo

NATIONAL BASKETBALL ASSOCIATION – NBA Mon, 20 Jan

New York Knicks vs. Brooklyn Nets

Tues, 21 Jan

Atlanta Hawks vs. Miami Heat

Tues, 21 Jan

Chicago Bulls vs. LA Lakers

Thur, 23 Jan

S. Antonio S vs. Oaklahoma City

Sat, 25 Jan Sun, 26 Jan

Chicago Bulls vs. LA Clippers Miami Heat vs. San Antonio Spurs

21h15 SS6HD/SS6 00h30 SS9/Maximo 03h00 SS9/Maximo 04h15 SS6HD/SS9 02h45 SS6HD/SS9 19h45 SS9/Maximo2

2014 CHAN Mon, 20 Jan

Morocco vs. Uganda

19h00

Mon, 20 Jan

Burkina Faso vs. Zimbabwe

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Tues, 21 Jan

Ethiopia vs. Ghana

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Tues, 21 Jan

Congo vs. Lybia

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Burundi vs. RD Congo

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Wed, 22 Jan

Mauritania vs. Garbon

19h00

Cape Town Stadium,

the last few weeks of action. And whether that was the reason or not, Ronaldo clearly believes they had an influence, and is ready to open his cheque book to say thank you. Agency

Athlone Stadium, Free State Stadium, Peter Mokaba Stadium, Peter Mokaba Stadium, Free State Stadium

n SPORT

East African Business Week I January 20-26, 2014

Ronaldo to buy Real Madrid physios new cars

Eto’o tops EPL foreign-born wealth list

PAGE 31

Tz private sector boosted BY LEONARD MAGOMBA nDAR ES SALAAM, TANZANIA– The Tanzanian government efforts to support the private sector by lowering the cost of doing business, have been given a major boost from World Bank. The government has already signed the financial agreement for additional financing to the Private Sector Competitiveness Project (PSCP) with the World Bank totaling $60.2 million. The PSCP supports the implementation of Tanzania’s program to develop the private sector by lowering the cost of doing business, according to a statement from World Bank’s Dar es Salaam office. The money will go towards scaling up of two components: strengthening the country’s business environment and improving access to financial services. The

fund is financed by a credit from the World Bank’s International Development Association (IDA). During the past decade, Tanzania has experienced high rates of economic growth, due to economic reforms, sound macroeconomic policies, and an expanding public sector, said Philippe Dongier, World Bank Country Director for Tanzania. “The PSCP’s focus on securing land ownership and improving access to finance will facilitate increased flows of private investment into the country’s industries, light manufacturing firms and farms, while boosting shared growth and jobs and improving the quality of life for Tanzanians,” he said. The PSCP supports activities designed to improve land registration, land use planning and regularization of tenure rights. The project has already piloted a

Philippe Dongier, World Bank Country Director faster land demarcation and registration approach to replace the traditional high cost registration, (which is about 10 times more

expensive.) Today’s project will help to further advance land administration reform, complete business registration reform, and help implement the Government’s Big Results New initiative to speed up delivery of priority programs such as agriculture, education, energy, transport and water. Already PSCP activities have helped 166,000 households participate in microfinance, benefiting more than one million people. Another 35,000 people have benefitted by participating in Village Savings and Loan Associations and Village Community Banks. The additional financing aims to build on this success by strengthening the legal and regulatory framework for the financial sector, improving the capacity of financial regulators, and supporting the development of products such as finance leasing and savings bonds.

$600m to shore up Kenya power BY HUMPHREY LILOBA nKAMPALA, UGANDA-Kenya’s main power distributor Kenya Power has announced a $600 million investment in the country’s power sector in an effort to stem a biting shortage in the sector. The money will be seeded in the company’s electricity distribution networks over the next three years. According to Kenya Power Managing Director Ben Chumo, the project is especially expected to address a surging demand for electricity in the industrial and commercial consumer category. Kenya is one of the African countries with a a heavy deficit in electricity supply prompting the country to import power from neighboring countries such as Uganda and Ethiopia in efforts to bridge the gap. The country will need to boost its power supply and distribution capacity if it is to meet the ambitious economic growth levels envisioned in the national development Vision 2030. The vision aims at transforming Kenya into a newly industrialized middle income country. Chumo said the company was working on projects that will provide dedicated power supply lines to industrial and commercial cen-

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Ben Chumo Kenya Power Managing Director tres with adequate redundancy to ensure continuous supply during periods of system maintenance. “Our business is to support economic growth, and we plan mega investments in the network to make it robust to support manufacturers increase their productivity and expand capacity that will create more employment and wealth,” he said. Chumo explained that there is an on-going initiative to strengthen the existing distribution network by addressing inherent weakness-

Kenya is one of the African countries with a a heavy deficit in electricity supply prompting the country to import power from neighboring countries such as Uganda and Ethiopia in efforts to bridge the gap.

es to improve quality and reliability of electricity. National power generator Kengen cannot meet the power demands of the country. This forces the economy to make do with the overly price independent power producers (IPP) which charge almost triple the amount. He said the target of having a capacity of 5,000 Megawatts (MW) by the year 2030 was on course adding that by August this year 280 Megawatts from competitively priced geothermal power would be injected into the grid. This, he added, will bring down the cost of power. This comes as the company be-

gun a countrywide meter inspection exercise aimed at ensuring customers receive correct bills, and at the same time secure the company’s revenue. The company’s Installation, Inspection and Fraud Control Deputy Manager for Commercial Services, Thagichu Kiiru said the inspection will target about two million customer installations in domestic, industrial and commercial segments. Kiiru revealed that the company loses about five percent of revenue every year attributed to theft of electricity and hopes to reduce the loss by one percent this year. He said besides contributing to loss of revenue for Kenya Power, compromised metering equipment through tampering and bypassing has often led to incorrect bills for customers, and may lead to electrical accidents. He also revealed that the company suffers about 18.6 percent on technical/system losses per year which is being addressed by building bigger substations and re-wiring the existing lines. The company’s security reports indicate that illegal connections have been the major cause of electrocutions and slum fires which have been on the increase in the recent past.

Cross-border payments made easier BY EMMA ONYANGO nKAMPALA, UGANDA–East African traders will have much less difficulties with cross-border payments after three of the five East African Community countries linked their Real Time Gross Settlement (RTGS) systems. The East African Cross Border Payment System (EAPS) which is an initiative of the East African Central Banks is a multi-currency system in which payments are effected using any of the currencies of the EAC partner states. The EAPS links the Real-time gross settlement systems within the East African Central Banks. According to Bank of Uganda, currently EAPS is only operational in Uganda, Kenya and Tanzania. “Rwanda and Burundi will join when they are ready. Rwanda has implemented their RTGS and so has Burundi and testing is ongoing. When they are satisfied, they will join,” Joyce Okello, the Manager Payments and Settlements at Bank of Uganda told a news conference late last year. She explained that, a customer instructs their commercial bank detailing the currency they intend to transfer across the border and then the banks will effect the transaction through the EAPS. She said: “Within the Central Bank…money will move from the customer account to the Central Bank account and then we’ll do the inter central bank settlement. Once the money goes across the border, funds will then be transferred to the beneficiary banker.” According to Dr. Louis Kasekende, the Deputy Governor Bank of Uganda, EAPS will make cross border payments easier and also facilitate safe and efficient transfer of monetary value within the region. “This will ideally mean that if you needed to say transfer money to a Kenyan supplier, you do not have to change from the Uganda shilling to the dollar then to the Kenya shilling so as to settle a cross border payment,” Kasekende said. Okello however clarified that the system does not operate on a 24-hour basis but operates based on the RTGS cut off times. Prior to the launch of the system, cross border settlements were effected using corresponding banking relationships which would mean the customer would have to incur losses as a result of the currency conversion. Also these transactions would take 2-3 days to be effected. EAPS on the other hand takes only a day. Okello adds, “Local charges of commercial banks apply, nothing really changes. These charges range between Ush5,000 and Ush10,000. The EAPS has no specific charges.”

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