Vol ix issue xxiii

Page 1

 TOURISM

and now, a great way to get there ...on Ethiopian’s thrice weekly th

flights to its 8 destination in the far east. www.ethiopianairlines.com

SINGAPORE SINGAPORE

The Merlion Statue

Tanzania elephants face extinction

l ou

m

Singapore wants you to come and enjoy

Uganda gets new tourism board boss

Bright light,shopping,business e.t.c andby now, G ardens the B aya great way to get there...on Ethiopian’s Singapore wants you to come and enjoy thrice weekly flights to its 8th Bright lights, shopping , business, food destination in the far sightseeing east. , trade , great

OPENING UP NEW ROUTES TO THE FAR EAST

 TOURISM

Se

eekly to ulo

SINGAPORE SINGAPORE

Manila

SINGAPORE SINGAPORE

TO THE HTS OF BRAZIL

Ho Chi

The Merlion Statue

Singapore wants you to come and enjoy

PAGE 3

Singapore wants you to come and enjoy Bright light,shopping,business e.t.c and now, a

PAGE 19

Bright lights, , business, sightseeing , trade , great food great wayshopping to get there...on Ethiopian’s and now, a great way to get there on Ethiopian’s thrice weekly thrice weekly flights to its 8th flights to its 8th destination in the far east.

destination in the far east.

www.ethiopianairlines.com www.ethiopianairlines.com

www.ethiopianairlines.com

E AST

Minh

3 times weekly Seoul, Manila and Ho Chi Minh City www.ethiopianairlines.com

www.busiweek.com

A F R I C A N The Merlion Statue

Singapore wants you to come and enjoy

Gardens by the Bay

Bright lights, shopping , business, sightseeing , trade , great food and now, a great way to get there on Ethiopian’s thrice weekly flights to its 8th destination in the far east.

www.ethiopianairlines.com

UNVEILING OPPORTUNITIES

VOL. 9, ISSUE 23 FEBRUARY 3 - 9, 2014

KSH40; TZSH 1,000; USH 1,500; RWF 600; BIF 1,500; 5 BIRR, SS£ 2.5

Uganda approves ID card Project BY PAUL TENTENA KAMPALA, UGANDA –The government of Uganda has approved $55.6m (Ush 138.583b) supplementary budget for the operationalization of the National Identity Cards project. Uganda’s Information Minister Rose Namayanja said Uganda, in line with the East African Community protocol arrangement will start to issue National IDs to its citizens in April this year. “Government made a decision in the course of the financial year to implement the Identity Card project and was duly approved by cabinet. The money will be given to the National Citizenship and Immigration Control department to work on the project,” she told the media. However, the supplementary budget approved by cabinet will undergo parliamentary scrutiny before it’s given to the directorate. Late last year, the directorate had proposed a budget of Ush285b (USD$112m) to the government for printing of the cards. It said the job would be done in Kampala, following countrywide collection and verification of data. Accordingly, the money, government TO PAGE 2

BURUNDI GETS NEW TOURISM HEAD

Burundi Minister for Commerce, Industry and tourism Victoire Ndikumana (c) Holding trophies won in ITB Berlin (Burundi has won this trophy many times. On her right is Carmen Nibigira who has just been appointed Director general of Burundi's Tourism Board. Carmen is a Tourism expert and scholar and has been at the heart of Burundi's revival in tourism.

EALA approves an additional $2.1m East African Legislative Assembly, January 30, 2014; Kampala, Uganda: EALA today approved the EAC Supplementary Budget amounting to USD 2,143,960 for activities aimed at strengthening integration this Financial Year (ending June 2014), before adjourning sine die (indefinitely).

This followed the passing of the EAC Supplementary Appropriation Bill, 2014. The object of the Bill is to make provision for the supplementary appropriation out of the budget of the EAC of specified amounts of money for the services and purposes of the Community for the Financial Year ending 30th June 2014. TO PAGE 2

Dar gets over $48.6m for infrastructure

Rwanda and OFID sign US$ 40m roads project KIGALI, RWANDA-- The Government of Rwanda and the OPEC Fund for International Development (OFID) yesterday signed a financing agreement worth US$12 million, (approximately Frw 8.1 billion) that will be used in the rehabilitation of Huye-Kitabi road. A press release from the Ministyr of Finance and Economic Planning, states that the Huye-Kitabi road rehabilitation project is co-financed by OPEC fund, BADEA and Saudi Fund to a tune of US$ 36million while government injects US$ 4million. The project falls within the government program for the development of the transport sector in the country and aims to raise the level of the national road network, expansion and integration of asphalt road in the country. The project will link administrative areas to economic centers which will contribute to the economic and social development in the country. Construction of the 53 kilometer road will be implemented by Rwanda Transport Development Authority under the supervision of the Ministry of Infrastructure and is expected to be completed in 2017. Speaking at the signing event in Vienna, Austria the Chief Economist Leonard Minega Rugwabiza noted that construction of the road would enhance access to production areas, facilitate socio- economic development through fostering agriculture and tourism. “The 53-kilometer road will have a TO PAGE 2

Burundi to cut child mortality rates

BY KENAN KALAGHO

BY D. C. ININAHAZWE

DAR ES SALAAM, TANZANIA ---The Tanzania government has received Tsh 78.350 billion ($48 million) from Japan as grants for improving road and electricity infrastructure in Dar es Salaam city. The grants are said to cater for the widening of the new Bagamoyo road project which has received a grant of Tsh 77.861 billion ($48.3 million) and reinforcement of the power distribution project that

BUJUMBURA, BURUNDI-- The Second Vice-President of Burundi, Dr.Ir Gervais Rufyikiri has thanked Gavi-Alliance and other partners for the support extended to the Government of Burundi in the promotion of public health and he reiterated the commitment of the Government of Burundi to work closely with its partners for the well-being of Burundians. The second Vice-President said this recently while introducing a new vaccine against diarrhea caused by ro-

TO PAGE 2

TO PAGE 2


2

NEWS

East African Business Week I February 3- 9, 2014

EALA approves an additional $2.1m FROM PAGE 1

Presenting the Supplementary Budget Speech to the House yesterday, the Minister of State for EAC Affairs in Uganda, Hon Shem Bageine, remarked that the supplementary budget would prioritise on three main areas. Out of the specified amount, USD 1,142,763 sourced from USAID shall be incurred on activities related to Agriculture, Trade and Customs. USD 494, 700 shall be allocated towards the EAC-World Bank Public Financial Management Harmonisation Project while a corresponding USD 506, 497 is expected to be expended to strengthen the East and Southern Africa-India Ocean (ESA-IO) Maritime Security Project. Today, the House constituted itself into a Committee of Ways and Means as well as that of Committee of Supply following a motion tabled by Hon Shem Bageine. At the Bill Committee stage, Members went through the Bill stage by stage. Prior to this, the House received a Report of the Committee on General Purpose on the EAC Supplementary Budget for the financial year 2014. The Report was presented by the Chair of the General Purpose Committee, Dr. Martin Nduwimana, before an attentive House. The Committee was informed

Hon Patricia Hajabakiga addressing the Assembly that the financing arrangements had already been signed and that the activities were expected to start as soon as funds are approved by the Assembly. During debate, Hon Bernard Mulengani however noted that the Assembly had not received a status report of the previous budget (last financial year). He said there was need for the EAC to have fewer consultancies and workshops and but more of programmes. Hon Peter Mathuki said there was need to bring on board more stakeholder groups. “The budget only

makes provision for conferences for People with Disabilities, youth and women in business. There are various other groups that need to be considered”, the legislator added Hon Dora Byamukama criticized the notion of continuously presenting Supplementary budgets before the House. “We need to plan better in future”, she said Pierre Celestin Rwigema urged the EAC to work towards diversification of funds saying it was time for the region to look inwards for additional monies. Members in support were

Hon Mumbi Ngaru, Hon Celestine Kabahizi, Hon. Joseph Kiangoi and Hon Sarah Bonaya. Others were Hon Nusura Tiperu, Hon Nancy Abisai, Hon Christophe Bazivamo and Hon Patricia Hajabakiga. The Minister of State for EAC Affairs, Hon Shem Bageine assured the House that the EAC would present a Status Report as requested. “The Council of Ministers shall pick up the matter at its next meeting,” The Minister hailed the support of Development Partners for walking hand-inhand with the EAC.

Uganda approves ID Project FROM PAGE 1 is willing to release is less than over 50% (Ush147b) of the tentative budget suggested by the directorate. This may create a loophole for substandard work or inadequate collection of data. Internal Affairs Minister Gen. Aronda Nyakairima while launching the exercise late last year said it will be divided into two phases. The first phase will include the registration of all citizens aged 16 and above. The second phase will have all citizens below 16 years registered. Prior to the launch, the government had carried out a pilot ID project that had a number of loopholes. “Country wide collection and verification of data will be critically done.

The registration will be done at the parish/village level,” Nyakairima said during the launch. Namayanja said the government also provided Ush0.9b to the Ministry of the East African Community Affairs to clears bills and costs that were consumed at the hosting of the 15th EAC Summit of Heads of State that was held in Kampala. She said Ush60b was approved for additional recruitment and training of 3500 police officers as part of the 2016 election road map. Nyakairima estimated that the mass enrollment for the national ID project will ensure registration of over 18 million citizens aged 16 and above. The job will be done by the Ministry of Internal Affairs together with

sister ministries of Defence, Local Government, Information and Communications technology and National Guidance. According to Nyakairima, security agencies like Police, Army, Prisons, ISO and ESO will assist in the work as well as Uganda Bureau of Statistics, Uganda Registration Services Bureau, Citizenship and Immigrations Board, Uganda Revenue Authority, Electoral Commission and the National Information Technology Authority. Though Uganda's ID project has delayed for years due to procurement flaws, the minister was grateful that it will soon be realized. It is an EAC integration requirement that member states issue National IDs to their citizens. Rwanda and Kenya

have issued national IDs to their citizens.

““Country wide collection and verification of data will be critically done. The registration will be done at the parish/ village level,” Nyakairima said

Dar gets over $48.6m for infrastructure FROM PAGE 1 has received Tsh 489 million ($303,488). A statement availed to East African Business Week last week said the expansion of the new Bagamoyo road was aimed at addressing the emerging challenges that includes among others the unexpected amount of unstable soil which has caused shortfalls in the project. Japan's Ambassador to Tanzania Mr. Masaki Okada said in a statement that once the new Bagamoyo four lane road is completed, it will cut the city’s traffic congestion thereby facilitating economic activities. He said the remaining amount is aimed at enforcement of Ilala substation and the already existing Dar 132kv power transmission line project from Ilala substation to Ubungo substation in Dar es Salaam. The whole power trans-

mission project enforcement in Dar city would involve the construction of a new Jangwani beach substation as well as the construction of a distribution line from Jangwani beach substation to Tegeta substation, also the construction of Mwananyamala substation as well as construction of a distribution line from Mwananyamala substation to Makumbusho substation. Other power projects expansions will involve the expansion of Msasani substation as well as the expansion of Msasani substation to Makumbusho substation. The statement said through the implementation of these projects the city of Dar es salaam will be able to improve the stability of power supply thereby leading to economical development as well as improving the residents’ social services like hospitals and schools.

Burundi to cut child deaths tavirus in the commune of Isale in Bujumbura province. The introduction also coincided with the launch of the Mother - Child week and Celebration of the week dedicated to breastfeeding. The Second Vice president was accompanied by the Minister for Health and the fight against HIV/AIDS Dr. Sabine NTAKARUTIMANA in the several ceremonies to mark these events. The vaccine is given to children of one month and a half and two months and a half. In his speech, the Second Vice- President said that the introduction of this new vaccine and launch of the Child week is being done to promote good health for children and women in an effort to reach the Millennium development Goals. He said that even as parents respond massively to vaccinate their children, there is still a lot to be done to reduce the mortality rate among the under five year children and pregnant women. He urged parents to support vaccination with hygienic measures, good nutrition for their children and family planning. He has also called on all parents to bring their children to the vaccination centers and to always ensure their children are vaccinated. The Second Vice- President also urged the public to use mosquito nets in order to fight against malaria.

Rwanda and OFID sign Frw 8.1b Huye-Kitabi project FROM PAGE 1 regional impact, as it is part of a larger program to connect to neighboring Republic of Burundi and Democratic Republic of Congo. The Huye-Kitabi Road Rehabilitation will further help unleash the agricultural and tourism potential of Rwanda as it is in a part of the country which is reputed for its tea plantations and the Nyungwe National Forest, a major tourism site,” Mr. Rugwabiza said. This support demonstrates

the important relationship between OFID and Rwanda. OFID’s total commitments to the Republic of Rwanda over the years have been at approximately USD 147.15 million. More than 70% of the support has been focused in infrastructure. The cooperation between OFID and the Republic of Rwanda started in 1976 and has continued to grow ever since.


3

NEWS

East African Business Week I February 3- 9 ,2014

Uganda Tourism Board gets news boss BY BAZ WAISWA

BUSY: A DHL worker delivering the percels

DHL heightens on deliveries BY PAUL TENTENA

DHL Express has released its annual list of quirky, strange and speedy delivery requests for 2013 which ranged from delivering nine gorillas across two continents, to transporting the Webb Ellis trophy and a specific heart internal defibrillator. In addition to these global shipments, a few more interesting packages which were delivered closer to home have come to light and are worth mentioning. According to Sumesh Rahavendra, Head of Marketing for DHL Express Sub-Saharan Africa (SSA), within the SSA region there has been an increase in strange food delivery requests with each passing year. He says it is now becoming an increasingly interesting exercise to pin-point which deliveries stand out above the rest. “One unique shipment to mention is a 32kg consignment of Haggis which was moved from the UK to Tanzania for an event. The Scottish delicacy was swiftly transported through customs and delivered in time for the prestigious event.” Rahavendra says in Kenya, live human eyes are transported on a regular basis. ”Understandably, the corneas have an extremely short life span and are therefore highly perishable, which possess a significant challenge to us. “What adds to the complexity is the fact that the recipient is booked and prepped for surgery while the cornea is in transit. “The successes of these deliveries rely on prior customs releases, dedicated delivery vehicles and a passionate team of certified international specialists on the ground. When there is no margin for error and the result could affect another person’s opportunity for

sight, every stop is pulled out from pick-up to delivery.” DHL says another unusual personal delivery was for a customer who shipped his laundry from the United Kingdom to a Southern African country….for dry cleaning. For many people, a wedding is one of the most important and special days of their life, and the price of one’s happiness on ‘the big day’ is immeasurable, says Rahavendra. “In light of this, 1.7 tons of fresh flowers were sent from Johannesburg to Douala in Cameroon for such an occasion. This personal request came from a customer whose two sons were getting married on the same day. Fast forward a few short hours, and a splendor of colour was delivered to the event in time for the all-important nuptials.” He says on the conservation front, an interesting delivery in Kenya included the transport of butterfly larvae. “Any delay in the transport process would result in the premature hatching of the butterflies, from which they would not have survived. Following a similar operational process as the transport of the corneas previously mentioned, another successful, yet another unique delivery was completed. “From election ballots to presidential documents, DHL Express is trusted to pick up and deliver shipments as fast as possible around the world on a scheduled Express Network. “The customer is at the center of everything we do and it is this customer centricity that drives us to deliver two million packages across the globe on a daily basis, no matter how unique the package might be. “Although sometimes challenging and stressful, such requests certainly help bring a smile to our faces on a busy day”, concludes Rahavendra.

KAMPALA-UGANDA-- Following a vigorous search that has been on for months, Uganda Tourism Board got a boost last week when the Minister of Tourism, Wildlife and Heritage, Maria Mutagamba, confirmed Mr. Stephen Asiimwe as the new executive director. He replaces Mr. Cuthbert Baguma who has been at the helm of the country’s premier tourism promotion agency for quite some time. Mr. Asiimwe will be deputized by Mr. John Ssempebwa who together, the duo, will try to steer the budding and potentially rich tourism. Mr. Asiimwe has been the Managing Director and Editor in Chief of the East African Business Week Newspaper that operates in Uganda, Kenya, Tanzania, Rwanda, Burundi and Ethiopia. He brings a rich experience leadership, management, consultancy in various fields, marketing, human resource, journalism and management of professionals. In an interview, an ecstatic Mr. Asiimwe pleaded to promote domestic tourism and encourage local investors to inject their money into sector to recreate the country as favorite tourism destination. “Tourism is potentially the biggest foreign exchange earner for the country. There is so much to offer as a country but the country has been internally and externally silent,” Mr. Asiimwe stated. The new team according to MR. Asiimwe wants to ensure that tourism contributes the highest foreign exchange earning to the economy, increase employment and to also ensure it boosts social transformation in the country. Mr. Asiimwe explained that while there are remarkable achievements registered over the years, a lot needs to be done in branding, marketing and publicizing the country’s tourism potential and promoting internal tourism. To start with, Mr. Asiimwe and his team have set their eyes on attracting investment in tourism from local business people and to engage government to spend more on tourism. “Uganda spends less on tourism as compared to other African countries yet the receipts are huge. That’s going to be the priority for the team and the board,” he optimistically said. He said his reign will involve engaging the whole nation and working with regional partners, conservation groups, local government, cultural institutions and the media and as per the country’s tourism master plan which is embedded in the country’s ambitious Vision2040. “We are going to work with other countries on key tourism issues including the single tourism visa which will help grow the region,” he specified. Uganda has a number of cultural and historical sites that are not being utilized due a number of reasons including sloppiness of government in reviving and marketing these tourism viable sites. “We have a complete strategy to work with cultural institutions to revive such sites. Plans are underway with ministry and other stakeholders to see how to develop these sites,” he indicated.

Mr Steven Asiimwe “Uganda receives 1.2 million tourists as of 2012. We want to see that this number is doubled and quadrupled in the next four years,” he said adding that local investors should take keen interest in putting their money in tourism sector. “Local people should be the biggest investors in construction of hotels, restaurants, accommodation facilities, transport, services, ICT and tour guides. When you over market and there is no capacity it can affect you negatively,” he noted saying that capacity building through training is another priority which will take center stage in his administration reign. As a matter of routine in his daily work, Uganda Tourism Board will benefit from his demonstrated leadership abilities where he is well-positioned to developing, overseeing, supervising, implementing developing long and short term strategies, annual work programmes, budgets, procedures and systems. Biography Mr. Asiimwe is a multi-disciplined, skilled and experienced business manager. He is a pioneer media practitioner having worked as a journalist with the New Vision for 10 years, manager, marketer, businessman and editor. He has built two media concerns in six Eastern African countries in the last 10 years and these are the East African Procurement News as Editor in Chief and managing Director and Editor in Chief of the East African Business Week since May 2005. He is pursuing an MA in Organizational Leadership (MAOL) with the Development Associates International (DAI) and the Uganda Christian University (UCU). He also has a BA in Political Science and Sociology Makerere University (19901993), a Post Graduate training in Management, Media, Education, Marketing and also has an Honorary Degree of Doctor of Letters awarded to him by the United Graduate College and Seminary, based in Tennessee, USA. This was in recognition of being a founding member and best practices in business and developmental journalism. He is also an international faculty with the Haggai Institute of Advanced Leadership based in the US. He is writer, editor, teacher, trainer, speaker, lobbyist and strategist.


4

NEWS

East African Business Week I February 3 - 9, 2014

TRA sues mining firm for non-payment of $4.7 million in taxes BY ANDREW ZABLON MWANZA, Tanzania - A suit that started as a civil one has turned criminal, this time the Tanzania Revenue Authority (TRA) is suing an investor for non-payment of taxes. In the Criminal case No 158 of 2013 filed in the Resident Magistrates Court of Tabora, on December 17, 2013, TRA is suing Mabangu Mining Limited and its Director, one Don Mcleod. Mabangu is owned 100% by Resolute Tanzania Limited. The two (Mabangu/ Resolute) own 50% each in Golden Pride Project. Mr Mcleod is the Director for both companies, Resolute and Mabangu. According to the charge made available to East African Business Week last week, TRA alleges that Mabangu Mining Limited and Don Mcleod on March 3, 2009 and during subsequent days at Nzega, within the district of Nzega, Tabora region evaded taxes. The taxes evaded by the two, Mabangu Mining Limited and Don Mcleod was an income tax amounting to $4,705,611.19 assessed upon Mabangu Mining Limited by TRA vide assessment No. 18/10 of February, 2009. The case came for first mention last week January 29, 2014 at Tabora Resident Magistrate’s Court. The court documents show that Mabangu Mining Limited is a company incorporated in Tanzania with the major occupation in mining of gold jointly with Resolute Tanzania Limited at Golden Pride Project located in Nzega District,

HARD WORK: Small scale miners get busy at work in Tanzania. 2009 and TRA declined to admit the Tabora. Notice of Objection on the grounds that The 2nd accused, one Don Mcleod is no deposit was made as provided under an Australian national and is a Director section 12 (3) of Tax Revenue Appeals of Mabangu Mining Limited dealing with Act, Cap 408. mining of gold at Golden Pride. Both acIt was an appeal against the judgment cused use the same address, with offices of the Tax Revenue Appeals Board (the at Chole, Dar es Salaam. Board in tax appeal no 11 of 2011 delivThe genesis of the case is a Consoliered on March 16, 2012 whereby the Tax dated Appeal No. 10 and 13 of 2012 by the Commissioner, TRA against Mabangu Revenue Appeals Tribunal quashed the Boards decision. Mining Ltd. Because Mabangu Mining Limited nor The dispute was that on February its Director, Don Mcleod did not appeal 3, 2009 TRA issued an assessment to against the decision of the Tax Revenue Mabangu amounting to $4,705,611.19 in Appeals Tribunal, the law allows for the respect of dividend income. TRA to file a criminal case. Aggrieved by the statement, Mabanga lodged notice of objection on March 26,

Zanzibar introduces pre-verification BY PATRICK KISEMBO DAR ES SALAAM, Tanzania--- The Zanzibar Bureau of standards is planning to establish a pre-verification system for imports entering the Zanzibar market. The move comes after the government of Zanzibar established, for the first time, its own standards body in Zanzibar to help the government to perform its duty of checking the quality of imported or locally produced products. Announcing the plan, the principal Secretary in the Ministry of Trade, Industry and Marketing Mr. Julian Raphael said they were introducing the system to ensure quality for both imported and export goods. Recently, the government of Zanzibar enacted a standard legislation which, among other things, established a standard institution, the Zanzibar Bureau of standards. Previously, the island had no such an institutions and was using the Tanzania Bureau of Standards (TBS). Some of the companies from Zanzibar which have their products certified by TBS after satisfying the requirements of specifications relevant to their products are Zanzibar Bottlers (carbonated drinks), Zanzibar Milling

Corporation (wheat flour), Drop of Zanzibar (mineral water), Zainab Bottlers (Carbonated drinks), Zanzibar Tea Packers (roasted and ground coffee and blended black tea) and Alawy Supplies (facial tissues).The enactment of the ZBS law will also curb unscrupulous businessmen who have been producing and importing substandard products. The principal Secretary said the existence of the standard bureau was a key to supporting the Isles government in promoting local production of quality goods. “All is done as enshrined in various development policies such as the Trade policy, SMEs development policy and others national policies focusing on trade and export promotion,” he said. He however admitted that in order for the proposed system to operate effectively and efficiently a number of issues have to be adequately analysed and to assess their respective impact on domestic businesses, income, government revenues, regional competitive environment and the possibility of trade diversion. The bureau according to the PS, was currently designing and putting in place basic operational systems aimed at building requisite foundation for understanding its mandate.

Kenya defence budget to grow Nairobi, Kenya - A new report says Kenya’s annual defence budget will grow from the US$4.3 billion recorded in the last few years to US$5.5 billion by 2018 as the country acquires helicopters, armoured vehicles, unmanned aerial vehicles (UAVs) and border surveillance and monitoring equipment. Kenya is in the midst of a force modernisation programme aimed at equipping the armed forces to fight internal and external terrorism, arms smuggling, human trafficking and drug trafficking. The report, entitled “The Future of the Kenyan Defence Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018” says the Kenyan Defence Forces (KDF) capital expenditure budget will most likely increase from US$149 million this year to US$234.1 million by 2018, spurred by government initiatives to acquire more arms and ammunition. The country has apportioned an average of 2.4% of its GDP for defence purposes over the review period, a cumulative figure of US$4.3 billion. During the forecast period, the defence budget is expected to be US$5.5 billion cumulatively. “The country’s budget for homeland security (HLS) is projected to increase over

the forecast period, driven by increasing threats from human trafficking, drug, and arms smuggling. Demand for equipment over the forecast period is mainly expected to revolve around helicopters, armoured vehicles, unmanned aerial vehicles and surveillance and monitoring equipment,” the report says. Due to ongoing border tension and cross-border militia attacks which are blamed on Somali militants, Kenya is expected to acquire advanced surveillance equipment to secure the porous borders with South Sudan and Somalia. “Kenya has been involved in a border dispute with Somalia over the last couple of years with Somali militant groups operating in Kenya’s remote and barren North Eastern Province. Counties in the Kenyan region such as Wajir, Isiolo, and Mandera remain exposed to chronic instability making it difficult for local communities to lead a peaceful life. In 2010, extremist group Al-Shabaab attacked a Kenyan border patrol in Liboi, Lagdera.... Tensions between the two neighbouring nations heightened in 2012 following the discovery of offshore oil and gas deposits in East Africa, with both countries claiming to have ownership over the water zone.

Agencies

Trade fair in Brazzaville to boost tourism and trade for Rwanda BY: AGNES BATETA Rwanda is to gain more development in the trade and tourism industry due to her participation in the forthcoming regional trade fair that will take place in Congo Brazzaville come March this year 2014. According to a press release by MINICOM, this is not going to be the only fair Rwandan business people will attend since there are many others organized in West Africa for them to attend. Flights to Brazzaville will be sponsored by the country’s airline Rwandair which will not only be flying to Braz-

zaville, Lagos and Accra on its added on destination list but also to Doula by March 2014. With the cargo aircraft Rwandair has, goods have been exported to West Africa and will continue being exported. With such trade fairs, Rwanda will be showcasing investment opportunities and tourism hence helping bring in more investors and tourists into the country. These two sectors will again be supported by the new system of easy Visa processes current in African Union member states that allows citizens to get a Visa on arrivalat a certain

destination. According to the press release, this is a great opportunity to Rwandair since the airline can now go to more distant places in Africa. When people participate in such tourism fairs, this helps promote investment and trade in the country hence helping to build it up. Rwandans, since the genocide, have tried to rebuild the country and so far they have received good results. According to President Paul Kagame success has been achieved because of the sound national vision, discipline and a resilient mindset.


5

BANKING

East African Business Week I February 3 - 9, 2014

Rwanda SMEs to be supported by EIB

Rwandan boys transporting their produce to the market, BY AGNES BATETA

KIGALI ,RWANDA ---The European Investment Bank [EIB] is to support Rwanda develop small businesses with funds worth EUR8million which will go through the new I&M Bank lending programme. This partnership between the two banks was agreed upon last week by I&M Managing Director Sanjeev Anand and Kurt Simonsen the Head of the EIB‘s Regional representation for East and Central Africa. The Vice president EIB responsible for Sub- Saharan Africa, Pim van Ballekom. said “To reduce poverty hence achieve economic development Rwanda needs to strengthen

the private sector and therefore this is why EIB is to continue working with I&M Bank of Rwanda plus other banks in the region supporting the private sector.” Ballekom said this new engagement was part of EIB’s main aim of supporting large scale investment in water and energy in the country. Mr. Sanjeev Anand also said that SMEs and Corporate sector were a very important part of I&M Bank strategy in Rwanda since these could help the country achieve economic development. “Such support will therefore help I&M provide investment to SMEs hence help them become competitive in the market”, he said, thanking EIB for the support offered for the last 5 yrs. This new engagement is therefore part

of EIB’s East and Central Africa Private Enterprise Finance Facility that will see EUR160million go to supporting SMEs to over seven countries in the region which include Uganda, Kenya, Tanzania, Rwanda, Burundi, Democratic Republic of Congo and Djibouti. About 3000 companies will benefit from this support through the 10 local banks listed by the EIB and again EIB will offer technical support for the local banks plus the benefiting companies. “This is a timely engagement said Head of EU Delegation to Rwanda Mr. Michael Ryan, who added on saying that such support would complement EU’s private sector activities in agriculture as per European development fund for 2014-2020. So far, I&M Bank is the fourth bank to get such support in the region and such funds are

to go to sectors that include agriculture, fishing, construction, transport, tourism education among others. From such support, about 1.300 jobs will be created from the 120 SMEs that will benefit from the support. So far, EIB has supported the Development Bank of Rwanda, Bank of Kigali and I&M Bank with EUR31million and this has helped create over 1250 jobs and about 100 SMEs in the country. In its programs, EIB is preparing to help Rwanda with an investment to the Kigali sewage system. The bank has worked with different projects in Rwanda since 1977 which projects include renewable energy, upgrading Kigali international airport among others.

Commercial banks using agency banking to enhance financial inclusion BY EABW REPORTER Despite facing hurdles, especially within the rural areas, agency banking, a two year old banking concept is quickly gaining acclaim, commercial banks have said. Maurice Toroitich, managing director of KCB Bank Rwanda which is among the four banks using the platform, in an interview last week said that in spite of the concept getting known, there still needs to be trust created between the agent and the client. Toroitich said many people still feared to approach agency banking outlets because “they feared the agent would know how much he or she has in the account or other personal details, which is not the case.” The Kenyan commercial bank was the first to introduce the platform, which

allows commercial outlets like shops and supermarkets to act in some capacity on behalf of formal banks, in the Rwandan market in 2012 and has since seen the number of outlets increase from 130 to 456 countrywide. The service allows a client to withdraw or deposit cash, acquire and repay loans, pay bills and transfer funds. Apart from KCB bank, Equity Bank, Bank of Kigali and Urwego Opportunity Bank are the other banks using the cost saving banking model. Kizito Okute, in charge of agency banking at Bank of Kigali also noted that apart from the need for more customer education and sensitization in order to help change the customer’s mindset and understand the benefits of agency banking, the requirements for one to become an agent were prohibitive to an extent “it’s not easy to always find an existing business that meets all require-

ments and is also interested in offering the service.” “One of the agent approval requirements is that he or she is supposed to have operated for a minimum of 18 months and the fact that some may not be fully registered businesses or companies but meet other criteria, it’s not easy to recruit agents,” he explained. Last August’s monetary policy and financial stability statement indicated that there were a total of 1,161 banking agents by the end of June last year up from 844 countrywide end 2012. The central bank continues to urge commercial banks and micro-financial institutions to use such tools to enhance financial literacy while at the same time leading to financial inclusion for all, therefore the attainment of Rwanda’s Second Economic Development and Poverty Reduction Strategy (EDPRS 2). The Kenya Commercial Bank headquarters in Nairobi.


6

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

Time to invest in Somalia. “I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” - Warren Buffett. That seems to be a good adage for opportunities that abound for neighbor and sister country Somalia. Somalia is planning on their second Somalia Investment Summit (SIS) 2014 slated for Dubai in the United Arab Emirates from April 6-7. Hosted by the Somalia Investment Forum, the SIS 2014, will focus on opportunities in Somalia. But this is thanks to the African Union Mission in Somalia (AMISOM) group composed largely by an East African contingent led by among others Ugandan, Burundian and Kenyans troops that comprise the majority of the over 10,000 strong force. The over 20-year long civil war in Somalia could make the country look doubtful as an investment destination. Its capital city Mogadishu has been branded the most dangerous city in the world. That is changing now. Peace has come to this potentially promising country. That was mainly because of unemployment and a downturn in economic gains. Poverty brings insecurity and investment creates gains that can be protected by the population and discourage adventurism. But the environment and perceptions are changing already. Somalis from the diaspora are beginning to come back and many have set up business and inviting others to join in rebuilding the broken economy. Somalia is about the same size as France. Slightly smaller than the state of Texas in the US, the country is endowed with uranium, iron ore, tin, gypsum, bauxite, copper, salt, natural gas and oil. The country, in spite of the many years of conflict, has maintained an informal economy largely based on the export of livestock mainly camels and remittances of money from one of the world’s largest diasporas. It also exports fish, hides, charcoal and bananas. With the longest coastline on the African continent (3,025km), this could be a major hub between Africa and the Middle East. Gulf Arab states have started to make strategic investments in the country, with Saudi Arabia building livestock export infrastructure and the United Arab Emirates purchasing large tracts of farmland for commercial agriculture. The country is slowly overtaking the Gulf States dependence on its major source of livestock market - Australia. It also has very large potential for commercial agriculture and forestry. With only a population of 10 million, it has one of the largest Diasporas estimated at over 5 million living in North America, Europe and the Middle East. This group sends home billions of dollars annually. The country badly needs investment in energy, manufacturing, finance, telecoms, infrastructure and agribusiness. East Africa stands a chance to take advantage of this market and opportunities. This is also an opportunity to get the population engaged in meaningful economic activity that will stave off war caused by high unemployment, economic disenfranchisement and insecurity. With the geographical proximity, short distances by air travel, maritime accessibility, same language (especially in Kenya), this could be a game changer for the region and continent. Somalia at full scale commercial agriculture could feed the whole of Africa. The time is now and opportunities come once. Benjamin Franklin once said: “An investment in knowledge pays the best interest.” It is time to be greedy for opportunities because we told you so!!

EDITORIAL

East African Business Week I January 3 - 9, 2014

Tanzania to build airport near Serengeti BY JAMILAH KHANJI DAR ES SALAAM, Tanzania – A United States based billionaire conservationist has partnered with the government of Tanzania to construct a modern airport near Serengeti National Park. Mr. Paul Jones, who has heavily invested in tourism and conservation in Tanzania has agreed to finance the construction of the airport which will serve to ease movement of tourists intended to tour the national park. About Tsh50 billion ($30.8 million) has been set aside for the construction of the airport which would also help cut the time tourists spend to traveling from the nearest airport in Arusha to the national park and back to Arusha for Departure. The airport was designed to ease the movement of tourists, who intended to tour the world famous wild animal migration, thus adding the number of both local and international tourists, said the Constituency’s Member of Parliament. According to Serengeti Constituency’s Member of Parliament, Dr. Kebwe S. Kebwe there was more to gain than lose in erecting an airport closer to the national park. Dr. Kebwe said the government of Tanzania in collaboration with other partners is going for a public-private partnership in implementing the construction of the airport. “We are planning to start construction of the airport this year in a town called Mugumu which is located 20-30 km from Serengeti National Park so as to ease the movement of tourists,” Dr. Kebwe said. “The airport is going to be middle sized so that flights with the capacity of up to 60 passengers will be able to use it,” he added. He noted that the construction of the airport was aimed at exploiting the opportunity of both local and international tourists, who do not find road transport conducive for them due to poor infrastructure leading to the park. “The availability of this airport will enable tourist from different parts of the world to land directly in Mugumu airport which will be only minutes away from wildlife in the park,” he said. Almost a year has passed since the Serengeti district council allocated land in Uwanja wa Ndege ward in the area of Mugumu town for the construction of the airport. The Director General of the Tanzania Civil Aviation Authority, Mr. Fadhili Manongi refused to comment, saying he is was not aware of the plan. Late last year it was reported in the local media that Tanzania Civil Aviation Authority (TCAA) sent its experts to verify the plot where they met Serengeti District officials and gave the project the green light for the construction of the airport.

ALTERNATIVES: The Nearest Airport to Serengeti National Park, is the Mwanza Airport above. Serengeti is also served by a number of airstrips, the busiest being Seronera, a dirt strip that can be seen from the cockpit of an approaching plane above

Mugumu airport will enable tourists from different parts of the world to land only minutes away from wildlife


LETTERS & PERSPECTIVE

7

East African Business Week I January 3 - 9, 2014

Sudan should take stock

PERSPECTIVE

Image of the week

Jobs vital for African youth

Editor, It is a rather heartening development to read that the government of South Sudan has released some political prisoners. This is a step in the right direction. However, there is insecurity even though a cease-fire agreement has been signed. South Sudan is a very rich nation by all standards and the only way for her to harness her full potential is if she shakes off her warrior past and embrances the tools for development like peace, security and sound economic policies. South Sudan has also applied to join the East African Community. She is eligible on a number of fronts, sharing of borders and relative similarity of cultures. However, she still needs to take stock of all her obligations and put things right.

GIVING PEACE A CHANCE: President Uhuru Kenyatta of Kenya (third from right) stands with released South Sudan detainees. It is hoped that this gesture by the government in South Sudan will ease the suffering of the already war weary nation. This may also go a long way into paving the way for the admission of South Sudan into the East African community, a move that many think will enhance the economic growth of the region and bring a lasting peace and security.

Adam Muigai Nairobi, Kenya

Create superhighways to boost trade Editor, Whenever I need to transport my merchandise from Mombasa to Bujumbura, I go through a harrowing nightmarish journey through three capital cities Nairobi, Kampala, and Kigali. In almost all instances, I have to drive litteraly though the middle of the city. This has caused ma a lot of headache since the vehicles used are large vehicles and there is a minimal amount of flexibility attached to the use of such vehicles.

It is high time the EAC put their act together and sorted out this transport bottleneck by creating superhighways that connect these cities without one having to crawl through the rush hour traffic as one makes one’s way to their desired destination in another country. For me as a transporter, this will help reduce the time required to transport my goods, thus reducing the cost I will have to incur in hiring of both truck and man hours. As a result, it will also reduce my cost of doing busi-

ness and also reduce the time required for me to deliver my cargo to the required destination. Uganda and Kenya are going in the right direction, but the diversions of traffic still hit the major rush hour traffic. Our givernments should help put this infrastructure in place so that we can reduce both time and price of doing business NIYONZIMA Pierre Bujumbura, Burundi

Who is a refugee? Editor, There has been a big influx of people running away from the war in South Sudan, and this has been rathere baffling. There are the returnee citizens and those running away from their country. There are those who have the means for survival snd those who are destitute. So, who is the refugee? Patrick Lalobo Gulu, Uganda

EAC SECURITY SECTOR NEEDS TO RESPOND PROACTIVELY I am of the view that the Peace and Security Sector in the EAC should be dynamic in order to respond to the nature and form of the ever evolving security threats, crime types and trends owing to advancement in technology, information dissemination and globalization. I am hopeful that we shall con-

tinue to see enhancement in the security of the citizenry of the region, thus access benefits resulting from the Customs Union, Common Market, Monetary Union and ultimately, the East African Political Federation. I had the privilege of meeting the Speaker of South Sudan

last week immediately after the cessation of hostilities was signed in Addis Ababa, Ethiopia. It is comforting to note that apart from sporadic fires reported, peace largely prevailed in South Sudan over the weekend. The cessation of hostilities allows the two sides to begin talking. It also allows

the displaced civilians to have some peace, return home, treat their injured and forge some reconciliation” Hon. Margeret Zziwa EALA Speaker Kampala, Uganda

We need more peacekeepers in the region There is a huge risk of a major human tragedy because of the complete absence of any peacekeeping force. The situation in this part of the Central African Republic is very volatile and the international peacekeep-

ing effort is vital to protect the thousands of civilians from both [Christian and Muslim] communities. More deaths are very likely but this could be prevented by even a small presence of

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

international peacekeepers. In nearby towns with similar tensions, the presence of international forces is undoubtedly making a difference. The same is needed in Baoro and Bossemptele.

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

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

Peacekeepers were sent to the CAR with a clear mandate: to protect civilian lives. They must not fail it. Donatella Rovera Central African Republic

 Washington, January 27, 2014 –With more than half of Sub-Saharan Africa’s populationnow under the age of 25, and as many as 11 million young Africans expected to join the labor market every year for the next decade, creating millions of productive, wellpaying jobs will be vital to boost economic growth, significantly cut poverty, and create shared prosperity in Africa, according to a new World Bank report on youth employment in Africa. While many African economies have registered impressive economic growth in recent years, poverty levels across the region have not fallen as much as expected and young people looking for better-paying work have been at a great disadvantage. This is partly because many African countries rely heavily on oil, gas, and mineral extraction which boosts economic growth but does little to create new jobs for the region’s fast-growing youth population or reduce overall rates of poverty. In a new comprehensive regional report on the subject, ‘Youth Employment in Sub-Saharan Africa’ notes that close to 80 percent of the workforce will continue to work on small farms and in household businesses in the near future. While the modern wage sector is growing very fast in some countries, it cannot create enough jobs to meet the youth employment challenge now preoccupying governments in every corner of the continent. “Attracting investment into large enterprises that create wage jobs in the mainstream ‘formal’ economy is critical, but it is only part of the solution to Africa’s youth employment challenge,” said Makhtar Diop, World Bank Vice President for Africa.“For the millions of young people who are just surviving in the hidden ‘informal’ sector, they will need greater access to land, skills training, and credit to thrive. This will be a game-changer for small farmers and entrepreneurs who will prosper as African economies grow, in close cooperation with the private sector.” Diop adds that making high-quality science and technology education more accessible to young people and shaping higher education courses to fit the skills needed by the modern jobs market was increasingly a high priority for many African countries. New development partners such as China, India, and Brazil are actively working with the World Bank to help develop these science and technology skills for Africa’s youth. The new report notes that manufacturing, services, and agriculture are traditionally labor-intensive sectors that can generate productive work for young people. As working populations age in other parts of the world, young Africans could find their labor and skills increasingly in high demand internationally if their governments pursue policies that improve education and job training for their youth. For example, the report notes that young people who received cash grants from the Northern Uganda Social Action Fund to pay for their vocational training and assets needed to start a business later earned 41 percent more than others who did not receive this support. They earned more because nearly threequarters of them took the opportunity to pay for training and enter a skilled trade. The program was particularly successful in helping young women to break free of poverty.

Young people looking for better paying jobs are at a disadvantage

Nairobi +254 733249693 Or email them to Dar-es-Salaam +255 222460820 letters @busiweek.com or Kigali +250 252504165 editor@busiweek.com Bujumbura +257 79 (76) 918854


8

TRANSPORT

East African Business Week I February 3 - 9, 2014

SMOOTH RIDE: A network of good roads is good for business growth.

Lack of railway locomotives diverts 13.4million tons to roads BY PATRICK KISEMBO

DAR ES SALAAM, Tanzania--- The poor condition of the railway transportation system has forced Tanzania to transport only 300,000 tons of products through the central railway out of the 13.7 million tons transported annually. The Minister of Transport, Dr. Harrison Mwakyembe revealed this last week when the United Kingdom’s Deputy Prime Minister, Nicholas William Peter Clegg was in talks with Tanzania’s President, Jakaya Kikwete who was attending the World Economic Forum in Davos, Switzerland. President Kikwete was leading a delegation of Tanzanians to the forum which was also attended by Tanzanian minister for Agriculture, Food Security and Cooperation, Engineer Christopher Chizza. Tanzania has a total of 3,676 km of railway lines, the Tanzania railways Limited (TRL) and the Tanzania Zambia Railway Authority (TAZARA), but due to poor conditions of tracks and ageing rolling stock and locomo-

tives, tonnage freight volumes and passenger numbers have continued to fall every year (from 60% of port cargo in the 70s and 80s to 7% currently). Illustrating on the haulage challenges facing the country to the UK delegation, Mwakyembe said following railway dilapidation and lack of locomotive engines and wagons, the country was only able to transport 300,000 tons of shipments a year out of the supposed 13.7 million tons. He noted that the remaining 13.4 million tons were being shipped through road system. Earlier President Kikwete has requested Mr. Clegg and his government to provide Tanzania with used locomotive engines and wagons saying they might boost railway transport in the country and the East African nation. President Kikwete however stressed that if all goes well, the locomotives and wagons will be used in Dar es Salaam and the central line. The figures paint a picture of the actual transport situation in Tanzania where road construction is in progress, but the chances for road damage are exceptionally high in a short period of time, President Kikwete explained.

During the discussion, the president also requested the UK Deputy Prime Minister, Clegg to give a help hand in promoting Tanzania investment from UK by encouraging UK investors to invest in Tanzania. “Your one word is more powerful that my speeches that I make to companies and owners of companies in UK,” said Kikwete. Tanzania is making efforts to ensure that its railway and especially the central railway, operates effectively. In December last year, the country the government signed an agreement with the Canada based Commercial Corporation (CCC) a Memorandum of Understanding to improve performance of the country’s railway transport system. Under the agreement, the Tanzania Railway Limited (TRL) is expected to update and improve its operations countrywide. The Deputy Permanent Secretary in the Ministry of transport, Ms Monica Mwamunyange told East African Business Week that the investment was to focus on locomotive and wagons. “It is among the various efforts being made to revive the country’s railway sector,” she noted adding: “The agreement guarantees

improvements of locomotives and wagons to facilitate railway operations countrywide.” For his part, the Canadian High Commissioner Alexandre Levesque was quoted saying said Canada support will include maintenance and training services and refurbishment of Tanzania’s railway systems. “The two countries have been cooperating in the railway sector since 1972 during which the government of Canada provided 20 locomotives to the Tanzanian government,” he said. While the government is seeking for support to revive its railway system, floods caused by torrential rains swept bridges leaving thousands of passengers stranded and hundreds of vehicles stuck at Dumila in Morogoro district last month. The government has not recovered the area, and the army is making operations to ensure that transport system comes to normal. Apart from the said damage, at least 11 railway stations are said to have been washed away by floods. Floods of this intensity were last experienced in 2008 in Kilosa District. The said floods washed away crops and houses.

IFC announces $32 million for Thika higway real estate development IFC, a member of the World Bank Group, and CDC Group plc today announced an investment of $32 million in a new mixeduse real estate development along the Thika superhighway in Nairobi. The Garden City project is sponsored by Actis, and expected to create more than 650 jobs directly during the construction phase and over 800 more once completed. Garden City will be built in two phases, comprising a 50,000 square meter mall, 20,000 square meters of office space, 421 residential units and a three acre park. The project will meet retail needs in one of the fastest growing areas of Nairobi. An estimated 1.5 million people live within the immediate, primarily residential, catch-

ment area. Koome Gikunda, Investment Principal with Actis said: “Garden City will become a genuine mixed-use community and an enduring landmark that the residents of Nairobi and the region can be proud of. CDC and IFC are bringing their experience and expertise in backing this vision. The scale and ambition of Garden City builds on Actis’s reputation as sub-Saharan Africa’s most experienced private equity real estate investor.” Oumar Seydi, IFC Director for Eastern and Southern Africa, said, “Garden City opens new business opportunities and creates jobs by providing a modern real estate platform for the supply of goods and services

through local businesses. Garden City is actively working with IFC and CDC to encourage entrepreneurship and serve consumers through an initiative that aims to attract local artisans who will have access to affordable temporary market spaces.” CDC Regional Director, Dolika Banda, said: “Garden City will provide vital jobs in Nairobi, and benefit the local economy through its supply chain, infrastructure and new opportunities. Few investors have an appetite for greenfield real estate projects in sub-Saharan Africa, so this investment sends a strong signal of our commitment to Kenya’s development and our confidence in its economic potential.

Phase one now underway involves the construction in 2014 of 33,000 square meters of retail space and 76 residential units. Anchor tenants include Nakumatt, and Tile & Carpet Centre with possibility of housing Game, a South African chain store. The project is the first mixed-use development in Kenya, and will create a new asset class within the real estate sector. The building will be energy efficient in design. The sustainability measures to be incorporated include: generating energy from waste heat; utilizing roof space for solar collectors to generate residential hot water; introducing “green belt” and lakes to receive storm water runoff; and installing rainwater harvesting.


9

TENDERS

East African Business Week I Febrauary 3 - 9 , 2014

TANZANIA PORTS AUTHORITY

TANZANIA PORTS AUTHORITY

SECTION 1: INVITATION FOR BIDS FOR TENDER AE/016/2013-14/CTB/NC/22 FOR THE MAINTENANCE SERVICE FOR RADIOS AND RADAR EQUIPMENT

INVITATION FOR BIDS FOR TENDER NO. AE/016/2013-14/CTB/NC/25 FOR PROVISION OF INSURANCE BROKERAGE SERVICES TO TPA

1. This invitation for bidding follows the general procurement notice which appeared in the Citizen Newspapers of 16th and 24th August, 2013. 2. Tanzania Ports Authority (TPA) has set aside funds for its operations during the financial year 2013/14. It is intended that part of the proceeds of the fund will be used to cover eligible payment under the contract for which this invitation for bid is issued. 3. Tanzania Ports Authority (TPA) now invites sealed bid from eligible Service provider for provision of maintenance services for Radios and Radar equipment as described in the schedule of requirement. 4. Bidding will be conducted through the National Competitive Bidding procedures specified in the Public Procurement (Goods, Works, Non-Consultant Service and Disposal of Public Assets by Tender) Regulations, 2005 – Government Notice No. 97 and are open to you as defined in the Regulations. 5. Interested eligible Bidders may obtain further information from and inspect the bidding Documents at the office of the Director of Procurement and Supply, Tanzania Ports Authority, One Bandari Road, Dar es Salaam Room No. 48, on the second floor of the TPA Headquarters building from 09.00 to 16.00 HRS Local time Monday to Friday inclusive except on public holidays 6. A complete set of Bidding Document in English may be obtained by interested tenderers on submission of a written application to the address given under paragraph 8 below and upon payment of a non-refundable fee of Tshs. 50,000.00. Payment should be by Cash, Bankers cheque or bank draft payable to Cash office at TPA Headquarters. 7. All Bids must be accompanied by a bid security of 3% of bid price or a bid securing declaration form in the format provided in the Bidding documents. Bid not accompanied by bid security or bid securing declaration will be rejected. 8. Bids in one original plus one copy, properly filled in, and enclosed in plain envelopes clearly marked “ TENDER No AE/016/13-14/CTB/NC/22: MAINTENANCE SERVICE FOR RADIOS AND RADAR EQUIPMENT’’ must be delivered to the address below at or before 10:00 hours, Thursday 27th February, 2014: The Secretary, Central Tender Board, Tanzania Ports Authority P. O. Box 9184, DAR ES SALAAM, TANZANIA 9. Bids will be opened promptly thereafter in public and in the presence of Bidder’s representatives who choose to attend in the opening at the TPA conference Room no 39 on the 2nd floor of the Headquarters building. 10.Late Bids, Portion of Bids, Electronic Bids, Bids not received, Bids not opened and not read out in public at the bid opening ceremony shall not be accepted for evaluation irrespective of the circumstances. 11.Note that Tanzania Ports Authority is not obliged to accept the lowest bid or any bid. Issued by: Office of the Director General, Tanzania Ports Authority, P.O. Box 9184, DAR ES SALAAM, TANZANIA. Tel No. +255 022 211315 Fax No: +255 022 2112678, E-mail: dps@tanzaniaports.com

1.Tanzania Ports Authority has set aside funds for its operation during the financial year 2013/14. It is intended that part of the proceeds of the fund will be used to cover eligible payment under the contract for the insurance brokerage service. 2.Tanzania Ports Authority now invites sealed bids from eligible service providers of insurance brokerage service. 3.Bidding will be conducted through the National Competitive Bidding procedure specified in the Public Procurement (Goods, Works, NonConsultant Service and Disposal of Public Assets by Tender) Regulations, 2005 – Government Notice No. 97 and is open to all Bidders as defined in the Regulations. 4.Interested eligible Bidders may obtain further information from and inspect the Bidding Documents at the office of Director of Procurement and Supply, TPA Headquarters room No. 48, Bandari One road, Kurasini Dar es Salaam from 8:00 a.m. to 4:00 p.m. on Mondays to Fridays inclusive except on public holidays. 5.A complete set of Bidding Document(s) in English and additional sets may be purchased by interested Bidders on the submission of a written application to the address given under paragraph 4 above and upon payment of a non-refundable fee of TZS 50,000.00. Payment should either be by Cash, Banker’s Draft, or Banker’s Cheque, payable to Tanzania Ports Authority. 6.All Bids must be accompanied by a Bid Security in an acceptable form in the amount of Tanzanian Shillings Five Million (TZS 5,000,000.00) or any other freely convertible currencies in case of foreign Bidders. Insurance bond and a Bid Securing Declaration not allowed. 7.All bids in One original plus Two copies, properly filled in, and enclosed in plain envelopes must be delivered to the address below on or before 27th February 2014 at 10:00 a.m. Bids will be opened promptly thereafter in public and in the presence of Bidders’ representatives who choose to attend in the opening at the TPA conference Room on the 2nd floor 8.Late bids, portion of bids, electronic bids, bids not received, and not opened and not read out in public at the Bid opening ceremony shall not be accepted for evaluation irrespective of the circumstances. The Secretary, Central Tender Board, Tanzania Ports Authority, P.O. Box 9184, DAR ES SALAAM, TANZANIA


10

FEATURE

East African Business Week I February 3 - 9, 2014

BEAUTIFUL: Female models showcasing the different designs that are made by Gloria Kamanzi.

At 11-years Kamanzi was growing in business BY: AGNES BATETA

KIGALI, Rwanda--With the introduction of the Rwandan programme of empowering women, hence helping them get a better living, many women have gone into business and therefore have been able to not only develop themselves, but also the community they work from Gloria Kamanzi Uwizera, is from a business family and all she can say is that it is because of her grandfather and her mother that she got involved in business at an early age. Kamanzi is a 33-years-old woman entrepreneur, the founder and Chief Executive Officer of Glo Creations Rwanda, a company which deals mainly in designing and manufacturing of interior decorations which range from furnished fabrics to clothing and other art accessories. “My parents are of Rwandan origin and I have two sisters. I started my primary education from Rwanda moving to DR Congo later and then on to Uganda and then back to Rwanda to finish my high schools studies,” she says. “From there I went to study from Senegal Dakar in an Institute of marketing, accounting and international marketing,” says Kamanzi. She says that at the age of 11 she started he own business while still in Senegal and this was in the line of hand printing. “In 2004, I was fully involved in business and here I was still living in Dakar and after one year, I decided to bring this kind of business Rwanda,” she recalls. I remember I started with a capital of US$50 with no employee untill after two years, since this business was not so common

in Rwanda. “In 2007, I managed to hire one employee with whom O worked with for quite some time, and as of now I have about 5 employees,” she says. “Glo Creations happens to be a Rwandan textile and clothing design company and therefore it is renowned for its original handprints and colors,” said Kamanzi who added that this has made the company common for the unique design brands in textile designing. Kamanzi says she has been able to achieve a lot from this business she started as a young girl. “I have been able to build a reputation from what I can offer and again I have impacted the lives of people I work with,” she reveals. Like any other business, she faces challenges which include getting the right and good quality raw materials locally, and getting qualified and competent employees in the creative industry, but with hope all will be well in future. Kamanzi wants to grow her business locally expanding its line of products in home décor and clothing and making known its brand as a textile and clothing designing brand regionally and all over Africa plus the world at large. “I cannot say I know the current value business but I can only say it has been moving to higher levels ever since I started it,” she says. She encourages women not to fear starting up business since if they do so they can actually make a difference and impact the lives of the Rwanda community starting with their own families. She says that the employees she has now are able to take care of their basic needs, and this has helped them improve on their standards of living.

HARD WORK: Kamanzi in her studio working on a batik art works before they are exihibited (INSET) Gloria Kamanzi. Kamanzi says that sometimes one may not realize what she is doing for the community and she says that she not only does provide employment to the community but also shares her story with different people, which is a source of inspiration to many. “This has helped many young girls in

Rwanda and has also in a small way inspired women not lag behind in development,” she says. Her products are not only sold here in Rwanda but to different other countries in the region.


11

TENDERS

East African Business Week I February 3 - 9, 2014

Tender Notice ( TN) Nº 002./ICB/2013-2014/MPPD/DP RELATED TO SUPPLY OF PHARMACEUTICALS AND HEALTH PRODUCTS FOR 3 YEARS

TENDER NOTICE No 009 /PU/MOD/013-014 1.The Ministry of Defence invites qualified b idders to sub m it b ids for the fol l ow ing tender: a.Tender for the suppl y of m edic al suppl ies. b .Tender for the suppl y of c onstruc tion m aterial s. c.Re-launch of the tender for the supply of generator spare parts. d.Re-launch of the tender for maintenance of l aundry eq uipm ent. 2 .B idding doc um ent m ay b e ob tained from the Ministry of Defence’s Procurement Office PO Box: 23 igali-Rwanda Tel: 0788478908 E-mail: pu@minadef. gov.rw, emmanuel.rutebuka@minadef. gov .rw upon presentation of proof of paym ent of a non refundab l e fee of Ten thousand Rwandan Francs ( 10,000 Rwf) for each tender on Account Number 120 00 46 ( NFRA) in BNR. 3. Well printed bids properly bound must be submitted in 04 copies, one of which should be an original and 03 c opies c onform ing to the original . The sub m ission of b ids in seal ed env el opes

must be addressed to the Ministry of Defence’s Procurement office b efore 14h00 pm local time on 5/3/2014. Late bids shall be rejected. 4. The opening of bids will take place on the sam e date of sub m ission of b ids on 5/3/2014 in a public session from 14h30 pm local time in the conference room of the MoD’s Procurement office respectively as tenders are rank ed. 5. Any information regarding the aforem entioned tender m ay b e ob tained b y any interested b idder through a written letter addressed to the MoD’s Procurement Office at the address mentioned above not later than 14 days b efore the deadl ine for sub m ission of b ids. Done at igali, on 29 anuary 2014. oseph R TABANA C ol Permanent Secretary

1. The Rwanda Biomedical Centre/Medical Procurement and Production Div ision ( RBC/MPPD ( hereinafter c al l ed ‘ ’ C l ient” ) funded b y RBC-MPPD’s bugdet tow ards the c ost of Drugs, medical consumables and laboratory reagent. The C l ient intends to appl y a portion of the funds to el igib l e paym ents under the c ontrac t for w hic h this B idding D oc um ent is issued. 2 . The Rwanda Biomedical Centre/Medical Procurement and Production Div ision ( RBC/ MPPD) invites qualified bidders to submit bids for the S PPL OF PHARMACE TICALS AND HEALTH PROD CTS for a period of 3 years as indic ated in detail in the statem ent of Requirements. 3. Bidding Documents in 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-refundab l e fee of Twenty thousand Rwandan Francs ( 20,000 RwF) , or its equiv alent in any freely conv ertible currency, to Account N (CAMERWA Account number ) 010-0025133-03-25 ( SD) opened at Rwanda Commercial Bank, P.O. Box 354 igali, RWANDA, Tel.: 575591 – Fax 573395 – Email: bcr@rwanda1.com. 4. 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. The softcopy of price schedule may be available upon request, but note that the hard c opy prev ail in c ase of c ontradic tion. 5. All bids shall be accompanied by a Bid Security of 5 millions RW F or its equivalent in any freely convertible currency, FOR EACH SET, issued by a bank, as follows: Set 1: 297 items of pharmaceuticals (Medecines) Set 2: 277 items of health products (Medical Consumables) Set 3: 14 items of health products (Blood grouping and lab reagents) Set 4: 300 Orthopedics health products For example, if a supplier desires to bid for sets 2 and 3, they will have to provide a bid security of 10 million RwF. Foreign banks should have correspondent bank in Rwanda.

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 2 1 days prior the b ids sub m ission deadl ine. 7. Well printed bids in English or French, properly bound and presented in tw o ( 2 ) c opies and one ( 1) m andatory softc opy of pric e sc hedul e in 2 DVDs recordable, and one original must reach the reception of MPPD at the address mentioned above Not later than 03/April./2014 at 9:00 am, local time (7 am GMT). Late b ids w il l b e rej ec ted. 8. Bids will be opened the same day at 10:00 am, local time (8 am GMT), one (1) hour after bid submission deadline in the presence of bidders or their representatives who choose to attend, in the c onferenc e room of MEDICAL PROCUREMENT AND PRODUCTION DIVISION ( MPPD) at the abov e mentioned address. 9. The Outer envelope should clearly indicate the tender number and titl e. 10. Bidding will be conducted in accordance with the Law No05/2013 of 13/02/2013 modifying and completing the Law N 12/2007 of 27/03/2007 on Public Procurement. 11. Requirement for compliance are: bid submission form, price schedule, bid security and proof of purchase of the bidding document for evaluation. Post qualification requirements for award: confirmation of requirement of the bidder started in ITB 11. 12 . The F ram ew ork C ontrac t( s) shal l b e for duration of 3 years. 13. The Framework Contract(s) shall be executed by way of individual purchase orders, issued in writing by Medical Procurement and Production Division during the duration of the contract. Done at igali on 31/01/2014

Uganda National Roads Authority

Uganda National Roads Authority

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

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

OPEN DOMESTIC BIDDING

OPEN DOMESTIC BIDDING INVITATION TO BID FOR FRAMEW ORK CONTRACT FOR PROCUREMENT OF SERVICING OF CENTRAL AIR CONDITIONING SYSTEM AT UNRA HEADQUARTERS FOR THREE YEARS Procurement Reference Number: UNRA/SERVICES/2012-13/00013/01/01 1.The Uganda National Roads Authority has al l oc ated funds to b e used for the ac q uisition of Framework Contract for Procurement of Serv icing of Central Air Conditioning System at UNRA Headquarters for three years. 2 . The Entity inv ites seal ed b ids from el igib l e b idders for the prov ision of Framework Contract for Procurement of Serv icing of Central Air Conditioning System at UNRA Headquarters for three years. 3 . B idding w il l b e c onduc ted in ac c ordanc e w ith the open domestic bidding procedures contained in the Public Procurement and Disposal of Public Assets Act, 2003, and are open to al l b idders. 4. Interested eligible bidders may obtain further information and inspec t the b idding doc um ents at the address giv en b el ow in No. 7( a) from 10.00 a.m. to 4.00 p.m. during work ing days from Mondays to Fridays. 5. The Bidding Document in English m ay b e purc hased b y interested b idders on the sub m ission of a w ritten appl ic ation to the address b el ow in No. 7( b) and upon paym ent of a non-refundab l e fee of UGX 50,000 ( Uganda Shillings Fifty Thousand Only) . The m ethod of paym ent w il l b e b y cash to the NRA Cashier on fourth floor, Room No. 4Bl. It is upon the presentation of the original rec eipt and the appl ic ation l etter that the b idder w il l b e issued for the b idding doc um ents. 6. Bids must be delivered to the address below in No. 7(c) at or b efore 11:00 a.m. on 7th March 2014. All bids must b e ac c om panied b y a b id sec urity of UGX 500,000 or its equiv alent in any other freely conv ertible international currency. The sealed bids must be clearly mark ed with the abov e subj ect and

procurement reference number. Late bids shall be rej ec ted. B ids w il l b e opened in the presenc e of the b idders’ representativ es w ho c hoose to attend at the address b el ow in No. 7(d) at 11:30a.m. on 7th March 2014. 7. a)Documents may be inspected at: Procurement and Disposal Unit, Uganda National Roads Authority Ground Floor, Room No. GA3 Plot 5, Lourdel Road, Nak asero Kampala – Uganda Email: procurement@ unra.go.ug b) Documents will be issued from: Same as in No. 7( a) abov e c) Address bids must be delivered to: Same as in No. 7( a) abov e d) Address of Bid Opening: Same as in No. 7( a) abov e but PDU Boardroom, Ground Floor, Room No. GA4 The pl anned proc urem ent sc hedul e ( sub j ec t to c hanges) is as follows:

Activ ity a.

Date

Publish bid notice

30th anuary 2014

b .

B id c l osing date

7th March 2014

c .

Evaluation process

7th to 31st March 2014

d.

D ispl ay and c om m unic ation of b est ev al uated b idder notic e

31st May 2014

e.

C ontrac t aw ard and signature

31st uly 2014

EX ECUTIVE DIRECTOR

INVITATION TO BID FOR SUPPLY OF FUEL TO UNRA HEADQUARTERS AND STATIONS FROM PUBLIC FUEL OUTLETS Procurement Reference Number: UNRA/SUPPLIES/2011-12/00016/01/01-05 1. The Uganda National Roads Authority has al l oc ated funds to b e used for the ac q uisition of Fuel to UNRA Headquarters and Stations from Public Fuel Outlets for three years. 2 . The Entity inv ites seal ed b ids from el igib l e b idders for the prov ision of fuel to UNRA Headquarters and Stations from Public Fuel Outlets for three years. 3 . B idding w il l b e c onduc ted in ac c ordanc e w ith the open domestic bidding procedures contained in the Public Procurement and Disposal of Public Assets Act, 2003 and are 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 10.00a.m. to 4.00p.m. during work ing days from Mondays to Fridays. 5. The Bidding Document in English m ay b e purc hased b y interested b idders on the sub m ission of a w ritten appl ic ation to the address below in No. 8( b) and upon paym ent of a non-refundab l e fee of UGX 50,000 ( Uganda Shillings Fifty Thousand Only) per lot. The method of payment will be by cash to the NRA Cashier on fourth floor, Room No. 4Bl. It is upon the presentation of the original rec eipt and the appl ic ation l etter that the b idder w il l b e issued the b idding doc um ents. 6. Eligible bidders may bid for one or more lots (contracts). However, to q ual ify for aw ard of m ore than one l ot ( c ontrac t) sub j ec t to pric e comparison, such bidders must meet aggregate financial capability and experience requirements defined in the bidding document. The aggregate req uirem ent is the sum of the indiv idual l ot ( c ontrac t) req uirem ents. 7. The entity will hold a pre-bid meeting at UNRA offices Ground Floor, Room GA4 on 19 th February 2014 at 11:00a.m. 8. Bids must be delivered to the address below at 8( c) at or b efore 11:00a.m. on 12th March 2014. All bids must be accompanied by a bid security in the amounts listed below Lot No.

Lot Name

Bid Security required ( Uganda Shillings)

1

Central Region

90,000,000

2

Eastern Region

40,000,000

3

Northern Region

38,000,000

4

Western Region

26,000,000

5

Southern Region

25,000,000

or its equiv alent in any other freely conv ertible international currency. The sealed bids must be clearly mark ed with the abov e subj ect and procurement reference number. Late bids shall be rejected. Bids will be opened in the presenc e of the b idders’ representativ es w ho c hoose to attend at the address below in No. 8(d) at 11:30a.m. on 12th March 2014. a) Documents may be inspected at: Procurement and Disposal Unit, Uganda National Roads Authority Ground Floor, Room No. GA3 Plot 5, Lourdel Road, Nak asero Kampala – Uganda Email: procurement@ unra.go.ug b) Documents will be issued from: Same as in No. 8( a) abov e c) Address bids must be delivered to: Same as in No. 8( a) abov e d) Address of Bid Opening: Same as in No. 8( a) abov e but PDU Boardroom, Ground Floor, Room No. GA4 The planned procurement schedule (subject to changes) is as follows:

Activ ity

Date

a.

Publish bid notice

30th anuary 2014

b .

Pre-bid meeting

19th February 2014

c .

B id c l osing date

12th March 2014

d.

Evaluation process

12th to 31st March 2014

e.

D ispl ay and c om m unic ation of b est ev al uated b idder notic e

31st May 2014

e.

C ontrac t aw ard and signature

31st uly 2014

EX ECUTIVE DIRECTOR


12

NEWS

East African Business Week I February 3 - 9, 2014

Africa’s mining industry to be adversely affected Africa accounts for two-thirds of the world’s mineral reserves, but recent regulatory changes in the continent could have an adverse effect on the mining industry, which is already reeling from major price pressures. The Democratic Republic of Congo recently raised taxes on copper and cobalt beneficiation from USD 60 to USD 100 per metric ton, while Gabon has also introduced mandated beneficiation - a process that separates the mineral from the commercially worthless gangue material. Meanwhile, Ghana introduced the National Fiscal Stabilisation Levy Bill that will impose a 5% tax on profits of mining companies; Mozambique is set to introduce a 32% capital gains tax on the sale of local assets by foreign countries from January 2014, and Tanzania is expected to introduce mandatory procurement of at least 80% of goods and services from local businesses by 2015. Africa produces more than 60 minerals and is a major producer of gold, platinum group metals, diamonds, uranium, manganese, nickel, bauxite, cobalt and chromium. Its changes in the regulatory environment come at a time when metal prices across the world are falling. The S&P GSCI composite industrial metals index is 30% lower than its peak in 2011 and prices of most industrial metals have fallen. “Some clear trends emerged in 201213,” wrote Julian Jessop, Tom Pugh and Caroline Bain, analysts at Capital Economics, in a recent report. “The link between industrial metals and equity price movements collapsed as investors lost confidence in commodities as an asset class. However, the more intuitive inverse relationship between commodity prices and the US dollar broadly held, although it started to show some variance in 2013.”While the metals market received a boost as China tried to boost the economy, 2014 is expected to see a slowdown in industrial activity in the country.“Whilst we continue to expect China to avoid a ‘hard landing’, GDP growth will slow further and become less commodity-intensive in the coming years,” said the Capital Economics analysts. The government’s aim to curb credit growth will act as a further constraint on commodity imports.”

TANZANIA POWER PLANT IN UBUNGO: Many of Tanzania’s energy plants are ageing.

Tz needs $2.9bn investment to meet her power demand BY LEONARD MAGOMBA DAR ES SALAAM, Tanzania – It has been predicted that Tanzania’s power and energy infrastructure will require a new investment of about $2.9 billion annually for the period of 10 years to meet its power supply demand. This was revealed during the Powering Africa Tanzania, a symposium which brings together key public and private sector energy stakeholders from Tanzania and beyond as well as about 200 international observers. Speaking during the event organized by EnergyNet, a company dedicated to furthering development and investment in Africa’s power sector, the African Development Bank’s Chief of Power Engineer, Dr Babu Ram said, Tanzania’s infrastructure gap is large. “It is predicted that Tanzania would needs to invest $2.9 billion annually for 10 years to meet its power and energy infrastructure targets,” Dr. Ram told East African Business Week. Dr. Ram noted that spending at the level would absorb just over 20% of the country’s GDP, yet on average African nations are spending only 40% on infrastructure. Tanzania Electric Supply Company

(Tanesco)’s Managing Director, Mr. Felchesmi Mramba said that failure to replace ageing infrastructure as well as debts are the main cause of numerous operation challenges that the company is currently experiencing. Mramba said there is need to promote investment from the private sector and put in place strategies to generate more electricity using natural gas. He added that to ensure there is an enabling environment that supports sustainable economic growth, Tanzania needs to overcome inhibiting infrastructure challenges such as interrupted power supply. The current electricity production method has caused the power utility to enter a large loss, according to Mramba, the power utility has been using costly rented power plants whose bill ran up to a total of Tsh26.6 billion ($16.42 million). “Tanzania’s infrastructure gap is large and the capacity to borrow is not unlimited, so bringing in the private sector seems to be the obvious solution going forward,” said Thomas Baunsgaard, Tanzania’s Representative of the International Momentary Fund. According to the Africa infrastructure knowledge program, the power sector poses

Tanzania’s most serious investment challenge. An estimated 2GW of new generation capacity is needed to keep pace with demand. In order to face these challenges, Mramba said Tanzania will construct five large and fifteen small power distribution substations to boost distribution in the country. According to Mramba, the improvement project would be ready in one year and was aimed to curb power shortages in major cities, particularly Dar es Salaam. “The available distribution network in Dar es Salaam, for instance was constructed that time to cater for only a few people who were in town then, but the number has risen so drastically that we can’t continue relying on the outdated systems,” he said. Speaking during the signing ceremony of two memorandums of understanding between two Finnish and Tanzanian agencies in Dar es Salaam recently, the Minister for Energy and Minerals, Prof Sospeter Muhongo said that he is happy because the MoU would enable power production capacity to double. “We are actually planning to generate up to 3000Megawats by the end of 2015 thanks to the projects we are putting in place,” Prof. Muhongo told East African Business Week.

Barrick plant Bulyanhulu increases production BY KISIMA EMMANUEL DAR ES SALAAM, Tanzania – Africa Barrick Gold has recorded a tremendous increase production at its Bulyanhulu Gold Mine. However at Buzwagi, one of its entities has a low gold production. According to fourth quarter report ending 31 December 2013, Bulyanhulu produced 12% higher than the previous quarter, and the Buzwagi Gold Mine produced 20% lower than the previous year. The report said Bulyanhulu produced 53,186 ounces of gold which is 12% higher than the previous period. It added that Buzwagi produced 51,830 ounces of gold which is up 17% on third quarter 2013, but 20% lower than the previous year. It reveals that the increase in production was primarily due to a 10% improvement in grade compared to the fourth quarter of the year 2012, as availability of high grade stops increased due to improvements in paste filling. The report further added, that the 56,735 ounces of gold sold for the quarter were 7% higher than production due to the sale

of concentrate on hand from the third quarter of 2013. For the year 2013, the gold production of 198,286 ounces at Bulyanhulu was 16% lower than the previous year mainly due to lower tons mined as a result of reduced equipment and staff availability noted in the first half of the year. This was further impacted by a 3% decrease in grade due to paste fill delays in H1 2013 impacting on the availability of high grade stopes, it said, adding that this has since been addressed and paste filling has recovered to expected levels. Gold ounces sold for the year of 195,304 ounces were 17% below that of the prior year primarily due to the lower production base. Copper production in the fourth quarter of 1.3 million pounds was 12% higher than that of the same period in 2012 driven by improved copper grades in fourth quarter of 2013. For the full year, copper production of 4.9 million pounds was 20% lower than the previous year’s production of 6.1 million in line with reduced throughput and grades. At Bulyanhulu the report said, “we are in the process of completing the review of the life of mine using a $1,300 gold price to calculate our reserves as well as assessing the most

appropriate long-term mining methods.” Although the impact of this is likely to see a reduction in the reserves, Bulyanhulu remains a long life, high grade asset, as demonstrated by the recently released exploration results, and, “we are confident it will deliver an increasing production profile at lower costs than at present.” Meanwhile Gold production at Buzwagi for the third quarter was 20% lower than the previous year period. This was mainly a result of a 10% decrease in grade against fourth quarter of 2012 when mining focused on higher grade areas. The process plant continues to operate at its nameplate capacity of 12,000 tons per day, although due to predominantly planned plant downtime for maintenance purposes, throughput for the quarter of 0.9 million tons was 11% lower than in fourth quarter of 2012. Gold sold during the quarter amounted to 50,382 ounces, broadly in line with production. Gold production for the full year of 181,984 ounces was 10% higher than the prior year driven by increased throughput as a result of improved plant reliability as it operated at nameplate capacity during 2013.


BUSINESS

TIPS ON HOW TO CREATE ADVERTS THAT REALLY PULL

DIGEST BUSINESS WEEK, February 3-9, 2014

TO PAGE 14

When advertising matters

Do you think you have a great product? Unfortunately, no one’s going to know about it unless you advertise. Advertising, if done correctly, can do wonders for your product sales, and you know what that means: more revenue and more success for your business. But be warned: it is not a panacea. Below you will find a list of what advertising can and can’t do for your business, along with the steps you can take to start using advertising to your business’s advantage. What advertising can do for your business:-

CAPTIVATING OUTDOOR ADVERTS

Remind customers and inform prospective customers about the benefits of your product or service Establish and maintain your distinct identity Enhance your reputation Encourage existing customers to buy more of your product/ service Attract new customers and replace lost ones Slowly build sales to boost your bottom line Promote your business to customers, investors, and others What advertising will not do Create an instant customer base Cause an immediate, sharp

increase in sales Solve cash flow or profit problems Substitute for poor or indifferent customer service Sell useless or unwanted products or services Two important virtues of advertising You have complete control. Unlike public-relations efforts, you determine exactly where, when and how often your message will appear, how it will look and what it will say. You can target your audience more readily and aim at very specific geographic areas.

You can be consistent. Presenting your company’s image and sales message repeatedly to build awareness and trust. A distinctive identity will eventually become clearly associated with your company. Customers will recognize your brand and product quickly and easily if you’re consistent in presentation. Two drawbacks of advertising It takes planning. Advertising works best and costs the least when the planning and preparation are done in advance. For example, you’ll pay less per ad in newspapers and magazines by agreeing to

run several ads over time rather than deciding on an issue-by-issue basis. Likewise, you can save money by preparing a number of ads at once. It takes time and persistence. The effectiveness of your advertising improves gradually over time because it’s impossible for every customer to see every ad. You must repeatedly remind prospects and customers about the benefits of doing business with you. The long-term effort triggers recognition and helps special offers or direct marketing payoff. TO PAGE 14


BUSINESS DIGEST

14

East African Business Week I February 3-9, 2014

How to create adverts that really pull

HEAD TURNING: This advert of a chocolate brand is simple and hard-hitting

Ads that make you think FROM PAGE 13 Getting ready to advertise Use the following steps to help draw a blueprint for your business’s advertising plan: Design the Framework What is the purpose of your advertising program? Start by defining your company’s long-range goals, then map out how marketing can help attain them. Focus on advertising routes complementary to your marketing efforts. Set measurable goals so you can evaluate the success of your advertising campaign. For example, do you want to increase overall sales by 20% this year? Boost sales to existing customers by 10% during each of the next three years? Appeal to younger or older buyers? Sell off old products to free resources for new ones? How much can you afford to invest? Keep in mind that whatever amount you allocate will never seem like enough. Even giants such as Proctor & Gamble and Pepsi always feel they could augment their advertising budgets. Given your income, expenses, and sales projections, simple addition and subtraction can help you determine how much you can afford to invest. Some companies spend a full 10% of their gross income on advertising, others just 1 percent. Research and experiment to see what works best for your business. Fill in the Details What are the features and benefits of your product or service? When determining features, think of car brochures that list engine, body and performance specifications. Next, and more difficult, determine the benefits those features provide to your customers. How does your product or service actually help them? For example, a powerful engine

helps a driver accelerate quickly to get onto busy highways. Who is your audience? Create a profile of your best customer. Be as specific as possible, as this will be the focus of your ads and media choices. A restaurant may target adults who dine out frequently in the nearby city or suburban area. A computer software manufacturer may aim at information managers in companies with 10100 employees. A bottled water company may try to appeal to athletes or people over 25 who are concerned about their health. Who is your competition? It’s important to identify your competitors and their strengths and weaknesses. Knowing what your competition offers that you lack - and vice versa - helps you show prospects how your product or service is special and why they should do business with you instead of someone else. Knowing your competition will help you find a niche in the marketplace.

Knowing your audience will help you choose the media that will deliver your sales message

Arm yourself with information What do you know about your industry, market and audience? You can quickly and easily learn more about your customers by simply asking them about themselves, their buying preferences, and media habits. Another (but more expensive) alternative is to hire a professional market research firm to conduct your research. Build your action plan (evaluating media choices) Your next step is to select the advertising vehicles you will use to carry your message and establish an advertising schedule. In most cases, knowing your audience will help you choose the media that will deliver your sales message most effectively. Use as many of the above tools as are appropriate and affordable. You can stretch your media budget by taking advantage of co-op advertising programs offered by manufacturers. Although programs vary, generally the manufacturer will pay for a portion of media space, time costs or mailer production charges up to a fixed amount per year. The total amount contributed is usually based on the quantity of merchandise you purchase. When developing your advertising schedule, be sure to take advantage of any special editorial or promotional coverage planned in the media you select. Newspapers, for example, often run special sections featuring real estate, investing, home and garden improvement, and tax advice. Magazines also often focus on specific themes in each issue. Using other promotional avenues Advertising extends beyond the media described above. Other options in clude imprinting your company name and graphic identity on pens, paper, clocks, calendars and other giveaway

items for your customers. Your message on billboards, inside buses and subways, on vehicle and building signs, on point-of-sale displays and on shopping bags. You might co-sponsor events with nonprofit organizations and advertise your participation, attend or display at consumer or business trade shows, create tie-in promotions with allied businesses, distribute newsletters, conduct seminars, undertake contests or sweepstakes, send advertising flyers along with billing statements, use telemarketing to generate leads for salespeople, or develop sales kits with brochures, product samples, and application ideas. The number of promotional tools used to deliver your message and repeat your name is limited only by your imagination and your budget. The Advertising Campaign You are ready for action when armed with knowledge of your industry, market and audience, have a media plan and schedule, know your product or service’s most important benefits, and have measurable goals in terms of sales volume, revenue generated and other criteria. The first step is to establish the theme that identifies your product or service in all of your advertising. The theme of your advertising reflects your special identity or personality and the particular benefits of your product or service. For example, cosmetics ads almost always rely on a glamorous theme. Many food products opt for healthy, all-American family campaigns. Car advertising frequently concentrates on how the car makes you feel about owning or driving it rather than performance attributes.

EzineArticles.com

You need a strong headline. The headline is what catches or hooks the reader’s attention. For example: “What’s in it for me? AIDCA -- A winning formula. A good formula to follow when creating ads is AIDCA. AIDCA stands for: A: Attract Attention I: Create Interest D: Build desire for what you are offering C: Conviction. Be convincing & believable A: Ask for Action You attract attention with the ad’s headline and appearance. Then you create interest right away by tying into the headline and expanding on it with a first sentence or two in the body of the ad. You build desire for whatever it is you’re offering by describing its various features and turning them into benefits for the reader . You MUST itemize and describe all benefits. Know what your offer is. The “offer” is not necessarily the benefit or news that’s contained in your headline. You may be telling people that you can help them reduce fat or get fit. That would be in your headline. But your offer is the mechanism that gets them to ACT NOW. Use active phrases and sentences in your ads and promotional materials, not passive ones. Get to the point. And use simple sentences and phrases. On the whole, people aren’t as literate as they were years ago. And the welleducated will also appreciate it when you state things simply and get to the point! Write your ads the same way you would speak them. Do the same in your ads. Make them conversational. Hard-hitting, to the point, but conversational. Always turn product features into human benefits. Unless they are professional or technical buyers, people do NOT buy product features. They buy benefits. So you turn the features of your products or services into customer benefits. Like this: “Now you can get a 60-month car loan. This gives you more months to pay, so you pay less each month.” Always test your ad by having someone read it out loud to you. When you hear it coming back at you, you may hear things you don’t like and can change them. Also, watch to see if the person who’s reading it tunes out at a certain spot or “doesn’t get” something. You need to fix every spot where the reader could tune out so you can keep them flowing through your ad. Use these key words in your ads and promo materials. Use them in your headlines and in the text of your ads. They are time-tested, proven “hot” words. And they don’t wear out with usage:- You, free, yours, easy, how, now, how to, people, money, save, new, who, why, announcing, gift, hurry, handy, useful, big, large, secret(s), want. Increase your responses when you increase the size of your ad. However, you have to keep in mind costs. If you could get 52 responses from a 1/4 page ad, is it worth it to run a full page to get 76? Only you can decide based on your objectives, what it is that you’re selling, and your budget. When you can, use a photo in your ad or promo piece to increase its pulling power.

www.fastf.com www.fastf.com


15

BUSINESS KNOW-HOW East African Business Week I February 3-9, 2014

Characteristics of a Good Ad nents of good advertising

The 4 Components of Good Advertising

Hope Wilson MARKETING MOXIE  KAMPALA, UGANDA-“My boss has decided to start advertising our services in the business journal,” writes a new marketer. “I will be responsible for developing the content and design of our ad, but I have never done this work before. Can you please provide me with some suggestions for creating a good ad?” This is a very good question and one that is often disregarded by smaller companies. Creating a powerful advertisement can be a great way to increase interest in your products and services. Today, we’ll explore the characteristics of a good advertisement.

Features of Advertisements In marketing promotions, recall that there are six elements of the promotional mix: 1) advertising, 2) interactive/Internet marketing, 3) publicity, 4) direct marketing, 5) personal selling, and 6) sales promotion. (For more information on these elements, see my September 9, 2013 article: “Understanding the Promotional Mix.”) Advertising is paid, non-personal communication, usually through mass marketing. Examples of advertising include: Print ads in newspapers and magazines Commercials on television and radio Billboards and video message signs Advertising is a great way to reach a large audience with your message. This is an appropriate channel for promoting public events and widely-used products or services. Because of its ability to reach a large audience, advertising tends to be expensive when compared with other types of promotions. Another challenge is that many consumers have become immune to advertisements: we are exposed to so many ads that our brains don’t pay attention to them. The AIDA Model One of the fundamental theories of advertising is the AIDA Model, which is often credited to Elias St. Elmo Lewis in the 1890s. More than 100 years later, many advertising experts consider this to still be one of the most important advertising concepts. This theory outlines four compo-

markets: the USA page has more than 800,000 “likes;” the India page has more than 240,000 “likes.” According to MediaCom SA, the “Thank You, Mama” campaign in South Africa has delivered a 530% return on investment for the campaign (www.mediacom.co.za). Though this campaign is global, it’s imp ortant to note that P&G tailored their message at the national level, as well. When developing your advertisement, make sure that you understand your audience, including how to appeal to their emotions and capture their attention. 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

How to Design a Good Advertisement Avoid This

Do This

Putting too much information in the space/time that you have

Keep a simple design Use high-quality, attention-grabbing graphics

Graphics that are poor quality, have many details, have fonts that are small and/or difficult to read

Connect the entertainment value to your product or service

A message that is not easily associated with your company’s product or service

Inspire your audience to laugh, cry, or otherwise engage in emotions

Inspire negative feelings about your product, service, and/or company

Connect your creativity with your brand

Minimizing your brand, so that consumers forget what the commercial is about

Ask your audience to take action – call a phone number, visit a website, purchase a product

Fail to provide contact information and/or call to action for your company

and sales: Attention Interest Desire Action Attention The first step in developing a good advertisement is to capture the audience’s attention. Even if your message is very powerful, it will provide no benefit if your audience doesn’t listen to it. We must find a way to interrupt the audience’s current thoughts and focus instead on our message. Some of the ways we can do this are: 1) tailor our advertisements to our consumer’s specific needs, interests, and desires; 2) place our ads in unexpected channels; 3) surprise our audience with bold images, sounds, and statements. (When people say that “sex sells,” they refer to the ability to capture their audience’s attention with provocative images. When considering a method of surprise, be sure that it is something that will capture attention without offending or alienating your audience.)

Interest After you capture your audience’s interest, you must persuade them to stay interested in your topic. We do this by connecting the ad’s message to something that is important to the target audience. Desire Now that we have informed the audience about our product or service, we must inspire them to desire that product or service. This is the most difficult part of the advertising process; to be successful, we must understand how our audience thinks and makes decisions. Because our time or space is so limited, it is usually best to focus on just one aspect that makes it different from its competitors. Action Ultimately, the purpose of an advertisement is to encourage the audience to take action. Most often, we want the audience to purchase our products or services, or to donate money to our cause. Other actions we may seek is for them to call us or visit our website for more

information. Global Advertisements One of the most common questions that I encounter is: Can we create one ad campaign that appeals to a global market? In my opinion, it is possible. To be successful, however, you must be sure to associate it with a value or theme that appeals to people in the global audience. For example, in my recent article on developing successful corporate social responsibility (CSR) programs (January 13, 2014), I mentioned the 2011 Cone/Echol Global CR Opportunity Study, which indicated that as much as 94% of global consumers value positive corporate involvement in society. Building on this shared value may be one way to capture the attention of a global audience. Another example is Proctor & Gamble’s global “Thank You, Mom” advertising campaign for the Olympics, in which they capture our attention by reminding us of the love that mothers around the world have for their children. The company has also developed Facebook pages for their national

Rhetorical Tricks in Advertising 1. Weasel Words: Weaslers are words used to soften the claim, often to make exaggerated or otherwise false claims without actually lying. Commonly used weasel words include comparison words ‘like,’ ‘as much as.’ ‘Fights,’ not ‘stops.’ 2. Unfinished Claims: Ads often use unfinished claims, which make comparisons by suggestion. These do not finish the comparisons, but suggests to the reader or listener to make the inference and fill it in his or herself. E.g. “Magnavox gives you more.” More what? 3. Uniqueness Claims: Imply to the reader or listener that the product is better, because it is different. 4. “Water is Wet” Claims: “Water is wet” claims say something about the product that is true for any brand in that product category. The claim is usually a statement of fact, but not a real advantage over the competition. 5. “So What” Claims: This is the kind of claim to which the careful reader will react by saying, “So What?” 6. Vague Claims: The vague claim is simply not clear. This category often overlaps with others. The key to the vague claim is the use of words that are colorful but meaningless, as well as the use of subjective and emotional opinions that defy verification. “Its deep rich lather makes hair feel good again.” “For skin like peaches and cream.”


16

PICTORIAL

East African Business Week I Febraury 3 - 9, 2014

ECONOMIC TRANSFORMATION: Uganda’s Finance Minister Maria Kiwanuka (M) with state planning minister Matia Kasaija chat with the World Bank Uganda Country Manager Moustapha Ndiaye shortly after signing a $100m credit facility for the financing of the Competitiveness and Enterprise Development Project.

The week in pictures

ABOVE: Abudu Salam Waiswa the Uganda Revenue Authority Manager Debt Collection during the seizure of goods from an electronics shop in Kampala for failure to clear an outstanding tax liability of Ush1.1b (US$ 444,000). LEFT: Prime Minister Amama Mbabazi is welcomed by Miss Tourism 2013 Maria Nakitto (R) to the launch of the Pearl of Africa logo at Protea Hotel in Kampala. Looking on (L) is Maria Mutagamba the Tourism Minister.

NEW CONNECTION: Uganda National Roads Authority’s Dan Alinange explains to President Museveni how the new Nile Bridge will be constructed.

NEW IMAGE: Herbert Byaruhanga president Uganda Tourism Association (UTA) hands over a certificate to one of the Hotel Managers who completed a Hotel Managers’ Course in Kampala recently. The Hotel Managers were trained in different areas of the hospitality industry as Uganda prepares to kick start hotel classification and grading in line with the Tourism Act 2012.

POSITIVE LIVING: Sumin Namaganda (L), the Communications Manager of Rwenzori Bottling Company hands over boxes of Rwenzori Water to the Director Medical Services Mildmay Uganda Dr. Yvonne Karamagi. Mildmay Uganda currently offers HIV care and treatment to over 60,000 people.

GONG TIME: (L-R) Vivienne Yeda Apopo, the Director General East African Development Bank, Martin Aliker Vice Chairman Board of Directors National Insurance Corporation (NIC), Innocent Dankaine from the Uganda Securities Exchange and Amish Gupta, the Director Investment Banking at Standard Investment Bank during the bell ringing ceremony to mark the National Insurance Corporation Rights Issue. PHOTO BY EMMA ONYANGO.


FEATURE

East African Business Week I February 3-9, 2014

17

Arusha's AICC plans to extend services to southern Tanzania BY ELISHA MAYALLAH ARUSHA, Tanzania - The Arusha International Conference Centre (AICC) is planning to increase their investment portfolio in Tanzania by building a major convention centre to serve the Southern highlands of Tanzania. The AICC based in the East African Capital city of Arusha, which runs the Julius Nyerere Convention Centre (JNCC) in Dar es Salaam, has informed the authorities in the Iringa municipality of its plans to acquire a land for the purpose. “We are continuing with talks with Iringa municipal officials to build a new conference centre there so as to open the southern corridor”, the AICC’s Managing Director, Mr. Elishilia Kaaya said last week. Mr Kaaya told East African Business Week that he was upbeat the project would be realized with the full support of the government and other stakeholders. He further explained that the envisaged centre in the southern highlands is contained in the five-year Strategic Plan which emphasized expansion of the conference services outside Arusha city. The AICC will join the growing focus of the Tanzania’s tourism International Marketing Strategy in which it intends to see the products and services in the southern regions, primarily developed, to capture the conference segment targeting corporate institutions and the business travel. The Southern circuit has wide, uncrowded wilderness offering a spectacular range of flora and fauna, which include; The Selous Game Reserve, largest protected are in the World; Udzungwa Mountains, one the most biodiversity habitats on earth – new species of animals and plant life continue to be discovered. Also Mikumi national park located

Dignitaries in the Arusha International Conference Centre attending an Assembly.

“We are continuing with talks with Iringa municipal officials to build a new conference centre there so as to open the southern corridor”, the AICC’s Managing Director, Mr. Elishilia Kaaya said

COMPETITIVE: Diginitaries having a chat out side the Arusha International Conference Centre. partly on the highway Dar es Salaam to Iringa which extends to Zambia and Malawi; Saadani national park where the beach meets the bush, the only one in the East African region; Katavi and Kitulo national parks covering large mammals and a treasure of flora and fauna with over 50 species of orchids. The Ruaha national park, the tourist kingpin of the southern Tanzania, which was named by the National Geographic Traveller Magazine as the best winter trip destination for 2013, boasts an astounding number

of antelopes and their daily journey across the expanse of the 20, 226 sq km’s is spectacular. It is a transition zone between eastern and southern African fauna and flora home to a diversity of wildlife similar to those found in the famous Kruger Park in South Africa. It is the most southerly protected areas where large carnivores, including cheetah and leopards are found and possibly the only African park where both lesser and greater kudu, roan and sable live together. Ruaha is the second largest in Africa, after

Kafue in Zambia. AICC, according to Mr. Elishilia Kaaya, is eyeing the growing demand from institutions, companies and NGO operating in the Southern regions of Morogoro, Iringa, Mbeya, Njombe and Rukwa. Beyond the popular tourist attractions which include the largest park in Tanzania - Ruaha, Iringa, where the conference centre is earmarked, has a wealth of cultural and historic sites. A museum showcasing the Chief Mkwawa timeline of Ruaha (Iringa) who rallied his people against the

German colonists and fought pitched battles is a choice of many travelers in the surrounding neighborhood. In 1898 Mkwawa was surrounded by colonials and shot himself rather than be captured. His body was decapitated and his head sent back to Germany where it was displayed in the Bremen Anthropological Museum. It was returned to Tanzania for burial in 1954. Besides, Iringa is believed to host the first missionaries Burton and Speke who passed through town in their discovery missions, including Arab traders also used the same routes for their ivory and slave trade businesses. With the ongoing investment in roads (a road is being built to connect Iringa and Dodoma, the political seat of Tanzania) and communications as well as other infrastructure, accommodation and business facilities, Iringa face is likely to change in the next few years.The AICC is the leading conference centre in Tanzania with 10 meeting rooms with seating capacities ranging from 10 people to 1350 in the main auditorium room. All rooms have simultaneous interpretation systems, multimedia projectors, and other audio visual equipment. To complement this, Arusha city has a wide selection of accommodation to suit various budgets; so conference delegates visiting Arusha has a variety of options to spoil themselves.


NEWS

18

East African Business Week I February 3-9, 2014

Tanzania to build research capacity BY KENAN KALAGHO DAR ES SALAAM, TANZANIA-Tanzania has been advised to make sure it builds its capacity on research in order to find out both the ‘positive and negatives’ of whether or not GM crops could be relevant for the country. Speaking to East African Business Week in Dar es Salaam last week, Dr. Asifa Nanyaro of Tanzania Academy of Science said there was no way a country can develop without doing research because capacity building was all about practical research. Nanyaro was referring to a recent Tanzania’s biotechnology act that bears both the researchers and users including the manufacturer of GM product responsible for any effects that could be caused by GM crops. He said capacity building was an important tool that could help the government make sound decisions and stand at a better chance of advising the government because we are very behind in terms of human resource. “Academicians say that it is only through research that a country can be able to move and develop science forward, Nanyaro said adding that in most cases Africa has been using knowledge of other peoples’ products.” Nanyaro stressed that it is only through practical research that the

All we need is the use of professional team that would be titled to do professional assessment on biotech in order to know its pros and cons

A researcher explaining to colleagues his research on sweet potato virus

safety and security issues can be realized. Academicians work is to advise the government on biotechnology issues and give answers to the government be it sing foreign or local experts. “There is fighting for resources due to population increase and there comes the issue of technology application in order to increase food security which I believe should have been given the due priority.”

He however insisted that the research that needs to be car ried to determine the effects of GM crops in the country needs to be independent without any foreign interest attached to it. “All we need is the use of professional team that would be titled to do professional assessment on biotech in order to know its pros and cons.” He said that both cross breed-

Women traders head to Turkey KAMPALA, UGANDA-Uganda Global Business Association is also organizing the Turkiye-Africa Women Entrepreneurs Trade Bridge 2014. The forum will involve Business women from Africa in all sectors of business and will take place in Istanbul, Turkey from 26th Feb - 01st March 2014. Participants will meet over 500 Turkish business women in Business to Business meetings,product exhibitions and factory visits.

Qn: Who is eligible for Turkiye Africa Women Entrepreneurs Trade Bridge? Turkiye: Africa Women Entrepreneurs Trade Bridge is only open to importer companies. An applicant should have an interest to import from Turkiye at least in one product group among target sectors. Qn: What are the costs that I have to cover? Turkiye: Africa Women Entrepreneurs Trade Bridge is free for participants from Africa. You only need to cover your international airfare from/to Turkiye and accommodation expenses. Qn: What are the costs that I

have to cover? Turkiye: Africa Women Entrepreneurs Trade Bridge is free for participants from Africa. You only need to cover your international airfare from/to Turkiye and accommodation expenses. City tours and airport transfers will be free and offered by TUSKON”s affiliated business associations. Please keep in mind that the situation is not the same for Turkish participants. Both exhibitors and regular Turkish participants pay a significant amount of application fee. This makes the application process fundamentally selective for Turkish companies. Qn: How do you schedule thousands of B2B meetings? Turkiye: We receive business profiles among participants from Africa until the deadline. Turkish applicants review these profiles and choose online the companies they intend to meet. Then TUSKON starts B2B matchmaking process by using special software. Qn: I do not speak Turkish. How will I communicate with Turkish businesspeople during B2B meetings? Turkiye: There is no problem if you do not speak Turkish or a Turkish participant does not

speak any foreign language since TUSKON will provide you a separate interpreter who will be able to translate from your own language into Turkish and vice versa during B2B meetings. Qn: What are the mandatory and optional parts of the events? Turkiye: The main activities on February 28, Friday are mandatory to participate. istanbul city tour and factory visits on February 27, Thursday are optional. Qn: What are the recommended latest arrivals and earliest departure dates? Turkiye: You must arrive at istanbul no later than the evening of February 27, Thursday. You also should not leave the event before the close of the event on February 28,2014 Friday. Qn: What is the deadline for application? Turkiye: Application deadline for international participants IS February 20, 2014 Thursday. Qn: Whom shall I contact for detailed information and further questions? Turkiye: There is a TUSKON representative in your country. If you do not know our representative, please contact us at africa ratuskon.0rg

ing and hybridization involves the change of genes in order to come up with better ones and so is biotech application. Different organizations get funds from foreign firms to serve the funders interests and that should be refrained, he said, adding that those funders give funds to advance their interests just like on tea and coffee where Europe and the US have had an interest in funding research.

According to him, what is needed is for the country to allocate a 1% of its GDP just like the President Jakaya Kikwete had promised last year in order to advance research on crop related issues in the country. wHe said Tanzania government in collaboration with agriculture institutions in the country need to make sure that they produce more surplus seeds for all Tanzania farmers.

No Viral Hemorrhagic fever in Hoima district communities  KAMPALA, UGANDA-The Ministry of Health wishes to clarify on media reports of an outbreak of a viral hemorrhagic fever in Bugambe sub-county in Hoima district. The reports have been circulated in local radio stations and the social media hence causing panic among the community and the general public. The Ministry of Health informs the public that the cases referred to are Dysentery patients reported in Kiyora village, Bugambe sub-county two weeks ago. This disease occurred among Bakiga immigrants from Kabale district who settled in the area. Kiyora has.a poor access to clean water and has generally got poor sanitation practices and poor health seeking behavior. As a result, a number of immigrants developed poor sanitation related diseases with some of them dying. The patients reported with bloody stool and a high fever which was misunderstood as a viral Hemorrhagic fever. It is unfortunate that these cases never reported to health facilities for treatment and hence the upsurge in numbers. The district health team however intervened very fast after receiving reports. Samples taken from two patients in the community were tested at the Central Public health laboratories (CPHL) and did not

Samples taken did not show any signs of a viral hemorrhagic fever.

show any signs of a viral hemorrhagic fever. The District Health Office dispatched a team to Bugambe subcounty to sensitize the people on good hygiene practices as a preventive measure and timely seeking of health services from a qualified health worker whenever they fan sick. The district has further intensified its surveillance and monitoring to track any upcoming cases and no illness or death has been reported in the affected area. The Ministry of Health assures the general public that everything possible is being done to protect the people of Hoima and the surrounding districts. The Ministry of Health further appeals to the public to maintain a high standard of good hygiene to protect themselves against any sanitation related diseases. Dr. Anthony Mb nye Commissioner - Community Health


19

FEATURE

East African Business Week I February 3 - 9, 2014

LOSS: Tanzanian game rangers standing next to a dead elephant that was killed for its tusks.

Anti-poaching efforts to be enhanced in Tanzania parks ARUSHA, TANZANIA-Tanzania BY ELISHA MAYALLAH National Parks (TANAPA) the custodian of 16 national parks in Tanzania, has sent a strong message to all workers of the national parks, conservation agencies and other public institutions related to wildlife that if they are found to collude with the syndicate of people behind poaching activities they would face tough consequences. TANAPA’s Director General, Mr. Allan Kijazi said in Arusha last week that the war against poaching should be “a collective responsibility” and has to involve the conservation agency and other security organs as well as the community at large. Kijazi warned that the state machinery was “already at work”, tracing the brains behind the massacre of wildlife, illegal ivory trade and other vices aiming to deplete the country’s wildlife heritage. “It is estimated that the country is losing 30 elephants per day or 10,000 in a year. At the current rate of poaching, it is feared there will be no elephants in Tanzania in ten years’ time,” Kijazi said. He stressed that wildlife was key to the country’s tourism industry, but that the increasing incidence of poaching, mainly targeting the elephants, could threaten the multi-million dollar industry, now the leading foreign exchange earner for the economy. Besides the elephants, hunted for their ivory, other animals targeted by the poachers are rhinos, for their highly prized horns, leopards, cheetahs, lions, hippopotamus and a host of others.

Slaughtered family group of elephants in tanzania. Kijazi, who was speaking to TANAPA employees and their families during a ‘Family Day’ organized annually, said the parks body would continue to strengthen its anti-poaching unit and that 100 game rangers have just passed out and that many more would follow later this year. “In addition to boosting rangers’ stable, we are also going to be ordering new artillery and equipment to ensure that the force is well-armed

to protect our national heritage”, he pointed out. Stakeholders in the tourism sector have warned that poaching activities threatened the Tanzania’s elephant population. The Tourism Confederation of Tanzania (TCT), an umbrella organization representing the tourism private business sector involved in travel and tourism, has appealed to the government to reconsider its decision to

suspend indefinitely the anti-poaching campaign, Operation Terminate (Operation Tokomeza) on grounds of human rights abuse and violation. A statement issued by TCT in Arusha a few weeks ago beseeched the government to continue with the operation. “It is the position of TCT that the suspension of the operation will only aggravate the situation by giving poachers and their sponsors more time to reorganize and plan for

It is estimated that the country is losing 30 elephants per day or 10,000 in a year. At the current rate of poaching, it is feared there will be no elephants in Tanzania in ten years’ time

some new strategies that may have devastating effects on the remaining elephant herds in the wilderness,” read part of the statement. The TCT’s current members include the Tanzania Association of Travel Agents, Tanzania Air Operators Association, Hotels Association of Tanzania, Intra-African Travel and Tourism Association and the Tanzania Hunting Operators Association. Others are a Tanzania Professional Hunters Association, Tanzania Tour Guides Association, Zanzibar Association of Tourism Investors, Tanzania Association of Tour Operators and Tourism and Hospitality Professionals Association of Tanzania.


20

ENTERTAINMENT

East African Business Week I February 3- 9, 2014

Meet Lupita Nyongo’o, ON DSTV Kenya’s shining actress THIS WEEK

BY BAZ WAISWA

 American Idol XIII (Premiere): The thirteenth season of American Idol includes Keith Urban, Jennifer Lopez and Harry Connick Jr as judges. These performers go in search of America’s next big talent. It premieres on Friday 07 February at 20:30 CAT.

Princes of Malibu (Premiere): TFed up with his stepsons’ excessive lifestyle and their lack of jobs, David decides to teach them the value of a dollar by charging them rent, cutting off their credit cards and blocking their expense accounts. It premieres on Thursday 6 February at 22:00 CAT.

KAMPALA- UGANDA - Actress Lupita Nyong’o star has continued to shine ever since the movie “12 Years A Slave” in which she portrays slave girl Patsey made it to the silver screen across the globe. In her exploding career Lupita has managed to bag numerous awards including Screen Actors Guild and Critics’ Choice Award for Best Actress in a Supporting Role. She was nominated for the Golden Globe, BAFTA and Academy Award for Best and stands a chance to win an Oscar. Who is Lupita Lupita is a Kenyan talented actress who was born in Mexico City in 1983 while his father was a lecturer of political science in in the North American city. She is daughter of Dorothy and Peter Anyang’ Nyong’o the current Senator representing Kisumu County and also Secretary-General of the Orange Democratic Movement (ODM) in Kenya. She’s from a family that has produced some of Africa respected personalities like her cousin, Isis Nyong’o, who was named one of Africa’s most powerful women by Forbes magazine in 2012. Lupita at the tender age of 16, her parents who had moved back to Nairobi, sent her to Mexico to learn

Spanish from where she joined a US University. She has worked on the production crew of many films, including Fernando Meirelles’s “The Constant Gardener”, with Ralph Fiennes, and Mira Nair’s “The Namesake”. She starred in the 2008 short film East River, directed by Marc Grey. She returned to Kenya in 2008 and starred in the Kenyan television series “Shuga”. In 2009, she wrote, directed, and produced the documentary “In My Genes”, about the treatment of Kenya’s albino population, which played at several film festivals. She later joined Yale School of Drama where she appeared in many stage productions. She was cast in 12 Years a Slave immediately after her graduation from Yale in 2012 and the movie was released in 2013 to great critical acclaim. 12 Years a Slave 12 Years a Slave is a 2013 American-British epic historical drama film about slavery. In a preview, the Guardian’s, Paul MacInnes describes the slavery drama as “a brutal, excoriating and vital companion” In the movie, British director Steve McQueen lines up Chiwetel Ejiofor, Michael Fassbender and Lupita Nyongo’o in a star-studded cast.

“Wolf of Wall Street” banned BY WINNIE MANDELA Kampala, Uganda – Wolf of Wall Street a Oscar award nominated movie was banned from showing at Cineplex in Uganda and Kenya respectively due to its content which is rated R and can only be screen for people with the age of 18 and above. IN A statement released by Cineplex Cinema, it was revealed that the Uganda Media Council has suspended the screening of the Wolf of Wall street Film that stars Leonardo

DiCaprio. The movie that was being advertised left fans anticipating for its view by fans until they received the news. It’s a movie based on a true story of Jordan Belfort from his rise to a wealthy stock blocker living the high life to his fall involving crime, corruption and the federal government. The Media Council on the 7th December 2006 banned the selling of Newspapers with pornographic content in public places. On 15th February 2005 it also banned the showing of the rated R movies.

Coca- cola rated next back KAMPALA, UGANDA--Ugandans with a dream to kick-start a singing career can now fine-tune their voices and hit the stage to audition in the second season of the local singing talent show, Coca-Cola Rated Next, Sing It. This season’s leg, running in conjunction with Vision Group’s Urban TV, was launched last week at the home of Century Bottling Company in Namanve, the makers of CocaCola and the show’s main sponsors. Just like Season Two, the winner will once again walk away with sh50m and a life-changing recording contract. Speaking at the launch of the show, which screened live on Urban TV, Coca-Cola Managing Director Norton Kingwill said they were excited to partner with Vision Group once again to bring back an experience that last season involved traversing the entire country in search of singing talent. “Season one was very successful for us as a company that has always had a relationship

with not only music but also the academia, sport and the like. Now, together with Vision Group’s Urban TV, we are excited to bring you Season Two,” said Kingwill. Also present at the launch of Season Two were last season’s contest judges: X FM’s Siima Sabiti, local musician Maurice Kirya and producer Sharpe Sewali, who all said they couldn’t wait for the journey across the country to kick off. The first stop over this season will be in Mbarara on the weekend of January 17th and 18th , and hopefuls can just show up at the auditions venue and show the judges what they have going for them. Urban TV’s and X FM’s Denzel Mwiyeretsi, who also happens to be a former Big Brother Africa contestant, returns this season as the show’s host. Coca-Cola rated next is a music competition in which talented but unable musicians are sought for and the winners career in music uplifted.

Lupita Nyongo starred in 12 Years A Slave Based on a first-hand account, Ejiofor plays Solomon Northup, a freed black man living in Saratoga Springs, near New York City. When his wife takes a trip out of town, however, Northup is tempted into earning extra money by performing for a

travelling circus. He heads to Washington with new companions only to be drugged, kidnapped and bound in chains just a stone’s throw from the Capitol building. The brutal life in slavery and the fight for freedom ensues.

Vanessa reveals Superbowl XLVIII exclusively live on secret battle with alcohol DStv’s SuperSport  The Saturdays singer Vanessa  KAMPALA –UGANDA --The Superbowl is the crown jewel of American sport, a smorgasbord of hype where a 30 second TV commercial costs $4 million, Bruno Mars and the Red Hot Chili Peppers provide this year’s half-time show, and a television audience of around 110 million is expected in the United States alone. Unusually, both sides in this year’s Superbowl boast the best two records in the NFL throughout the regular seasons and playoffs. The Denver Broncos, quarterbacked by the great Peyton Manning, are also the NFL’s top offence this season and the Seahawks are statistically the best defensive side. The Seahawks have never won the Superbowl and are making just their second appearance after losing in 2005 to the Pittsburgh Steelers. The Broncos, by contrast, will be making their 7th appearance, although their first since 1999. They have won two Superbowls and Manning is looking to become the first quarterback in history to win with two different teams, having led the Indianapolis Colts to the coveted Vince Lombardi trophy in 2007. Superbowl XLVIII will be screened live exclusively on SuperSport, in what is expected to be a cold and snowy MetLife Stadium in New Jersey.

White has revealed she dealt with a secret struggle with alcohol in the past. The 24-year-old opened up about her battle with booze in The Sun’s Fabulous magazine admitting it got so bad at one point it began to jeopardise her career. She said: ‘My life started to spin out of control in 2010 and it was a dreadful year. I’d be out every night.’ While at the time the rest of her bandmates – Frankie Sandford, Rochelles Humes, Una Foden and Mollie King were in long term relationships she was single and partying away. The pretty star, who has been dating Gary Satler since 2011, admitted: ‘I drank vodka mainly but, to be honest, I drank anything. It massively affected the band and I felt lonely and drepressed.’ She reveals things were so bad that she would turn up to work so hungover that she wouldn’t be able to sing and she relied on her bandmate Una to take on her solos. Things came to a head at the end of 2011, just ahead of their All Fired Up tour and she turned to Rochelle for help. She reveals that she stayed with her bandmate Rochelle, who is married to Marvin and now a mother-of-one, for two weeks and didn’t drink – which she says helped her realise it was time to put an end to her boozing.


EAC

21

East African Business Week I February 3 - 9, 2014

Tz urged to leverage EAC integration BY EMMANUEL KISIMA

DAR ES SALAAM, TANZANIATanzania has been advised to use her geographical potentials to garner more gain from East Africa integration. The Finnish Prime Minister Mr. Jyrki Katainen made the comment at the roundtable discussion on ‘Bridging Africa’s Transformation Gap: What Europe and Africa need from each other,’ which was held in Dar es Salaam last week. Mr. Katainen said integration is frequently a challenging process, adding that giving up some political and economic sovereignty is a sen- Prime minister of Finland, Jyrki Katainen sitive and balancing act between region in the world, with member from poverty. different opinions. countries that have a strong annual “The challenge is how do we He said the current economic growth rates, averaging above 5% make economic growth inclusive crisis should not prevent counover the past decade. and create employment for all tries from seeing the benefits of For his part, the Prime Minister the people. We must make sure integration, noting that Africa has of Tanzania Mizengo Pinda said in a that people belonging to the most already benefitted from integration statement presented on his behalf vulnerable groups have fair and in the areas of political integration, by Minister without portfolio in equitable access to the benefits of which has given more credibility to the President’s Office Prof. Mark growth,” he explained. African countries in international Mwandosya, that African leaders Mr Katainen said there is ample forums. are committed to a prosperous and evidence that openness in trade is Mr Katainen however said the united continent that is effectively beneficial for economic growth in benefits of integration are unarguintegrated into global economic the long-run, adding that the best able as through the process the system where living conditions of results of poverty reduction have countries achieve more than the the people are characterised by been achieved by those countries individual country could. sustained improvement. He added that political integration that have embraced external trade He added, there is no doubt that and integrated into the global and brings stability and peace, while Africa is on the brink of a major regional economy. economic integration and liberatransformation, “The process is The renowned East Africa as one tion of trade inside Africa, boost achievable. Africa is increasingly of the fastest growing economic economic growth and raise nations

EALA hails Bageine for job well done

looking to integrate her economies and trade internally, shifting production to the continent and slowly growing its industrial sector.” The Chinese Ambassador to Tanzania, Mr Lu Youging, urged the international community to invest more in Africa and open international markets for products from the continent to create more job opportunities and revenue from taxes, which would in turn boost the continent’s economy Right after the round table discussion, the Finnish Premier witnessed the signing of two Memorandums of Understanding in Forestry and Mineral sectors between these two governments. Finnish Premier and Minister for International Development Pekka Haa visited to Tanzania on 29–30 January 2014. The purpose of the visit was to strengthen bilateral relations and trade and development links, as well as promoting trade and business partnerships between Finnish and Tanzanian companies. The Ministers was accompanied by a business delegation with representatives from 27 Finnish companies. The companies involved operate internationally in the fields of energy, infrastructure construction, logistics, the information society, extractive industry, education, health, and agriculture and forestry.

EAC seeks supplementary budget ARUSHA,TANZANIA-The EAC recently presented a Supplementary Budget Speech to the House seeking the go-ahead to expend an additional USD 2,143,960 for the Financial Year 2013/14 to meet its programmes. At the same time, the Assembly debated and adopted the Report of the Committee on Legal Rules and Privileges on the Assessment of Adherence to Good Governance in the EAC and the Status of the EAC Political Federation. Presenting the Supplementary Budget Speech to the House on behalf of the Chair of Council of Ministers, the Minister of State for EAC Affairs in Uganda, Hon Shem Bageine, remarked that the supplementary budget would prioritise on three main areas. Out of the specified amount, USD 1,142,763 sourced from USAID, shall be incurred on activities related to Agriculture, Trade and Customs. USD 494, 700 shall be allocated towards the EAC-World Bank Public Financial Management Harmonisation Project while a corresponding USD 506, 497 is expected to be expended to

strengthen the East and Southern Africa-India Ocean (ESA-IO) Maritime Security Project. Under the USAID Project, the Minister remarked that a total of USD 133,700 would be utilized for implementing the EAC Food Security and Nutrition Policy and developing Regional Animal Resources database at the Secretariat. A second amount of USD 341,150 shall be allocated to a raft of trade activities including facilitating the study of the EAC Common Trade Policy and Strategy, development of the AGOA Framework in all the Partner States and in the preparation of strategies promoting exports to the European and emerging markets. The development of a mechanism for the operationalisation of a Single Customs Territory and the institutionalization of the Revenue Authorities Digital Data Exchange are some of the priorities to be funded under the Customs component of the grant. The stipulated amount is USD 406,325. The Minister maintained that there was need to ensure harmonization of the procurement, accounting and oversight functions

The Report terms as fundamental, the need to establish a structure to sensitise on the integration process of the EAC as the process to embrace the Monetary Union Protocol commences. The Secretariat is thus expected to support the Partner States in the implementation of International Public Sector Accounting Standards, compliance with the best practices of the Institute of Internal Auditors and in the approximation of legal and institutional requirements, procurement processes and the capacity development requirements. The Chair of the Council informed the House that a specified amount of USD 506,497 would be

used to strengthen the capacity of the East and Southern AfricaIndian Ocean (ESA-1O) Maritime Security project. On its part, the Assessment Report on Good Governance and the status of the Political Federation notes that the EAC has drafted a Good Governance Protocol that incorporates a number of pillars including human rights, transparency, accountability and democracy among others. “The Wako Report recommended for an overlapping achievement of integration stages and the fast tracking of Political Federation”, a section of the Report reads. The Report tabled by the Chair of the Committee on Legal Rules and Privileges, Hon Dora Byamukama, terms the purpose of Political Federation as the desire to unite the Partner States into a Federal State with a unified and coordinated political authority. The proposed Federation will be governed by a Federal Constitution that will be negotiated and subjected to a referendum by the Peoples of the Partner States, the Report denotes. EAC

Hon. Shem Bagaine ARUSHA,TANZANIA-The House has passed a Resolution according special thanks to Hon Shem Bageine, Minister of State for the EAC in the Republic of Uganda, for his exemplary performance as Chairperson of the Council of Ministers. The Resolution moved by Hon Valerie Nyirahabineza, noted that Hon Bageine represented his people and the citizens of the EAC in the last one year with maximum dedication and commitment. During the period of service as Chair of the Council of Ministers (Nov 30th, 2012 – Nov 30th, 2013), the Minister made invaluable contribution to the advancement of the integration process. The Resolution recognizes Hon Shem Bageine’s commitment to enhance regional integration and his leadership style that has helped to hasten the process of regional integration.The Resolution avers that Hon Bageine competently steered Council business within the Assembly, answering questions put before Council, introducing Council Bills and debating important Bills and assisting in the passage of Bills before the House. It further appreciates Hon Bageine’s role in the EAC Monetary Union negotiations by inspiring Members of the High Level Task Force to fast-track the negotiations on the Protocol and his personal commitment. “EALA appreciates his outstanding contribution as the Chairperson of EAC Council of Ministers as the Chairperson of the EAC Council of Ministers on the EAC major projects including the fight against Non Tariff Barriers and assignment of specific tasks to Ministers” the Resolution reads in part. During debate, Members hailed the Minister for his energetic approach, selflessness and sincerity. “You could take his word which many times was equivalent to a ‘One Million dollar cheque’ to the bank”, Hon Kimbisa said. The Resolution was further supported by Hon Shy-Rose Bhanji, Hon Joseph Kiangoi, Hon Mumbi Ngaru, Hon Emmanuel Nengo, Hon Dora Byamukama, Hon Adam Kimbisa and Hon Susan Nakawuki. Others were Hon Chris Opoka, Hon AbuBakr Ogle, Hon Twaha Taslima, Hon Peter Mathuki, Hon Nusura Tiperu, Hon Hafsa Mossi and Hon Abubakar Zein The Members further welcomed on board the new Chair of Council of Ministers, Hon Phyllis J. Kandie. “You have the support of the whole House and we shall continue to collaborate closely with the Council”, they added. EAC


22

AGRICULTURE

East African Business Week I February 3-9, 2014

Zanzibar says no to clove liberalization BY ANDREW ZABLON UNGUJA, ZANZIBAR-Zanzibar government is not going to yield to demands to liberalize the clove industry in the Isles. The demands, mostly coming from farmers and businessmen want the Zanzibar government to liberalize the clove industry, but the government has turned a deaf year to the request. The Zanzibar Minister for Commerce, Industry and Marketing, Mr Nassor Ahmad Mazrui said: “We cannot let the farming of cloves go into private hands because the commodity is the symbol of Zanzibar.” Instead, Zanzibar has enacted a law prohibiting anyone from transporting cloves without government permission and it is unlawful for anyone to make charcoal from clove trees. On the other hand farmers and businessmen have asked that the crop be liberalized. With liberalization, they say, farming would be motivated because of price competitiveness. However, the Zanzibar government is against the policy saying it would encourage clove smuggling to the nearby Kenyan town of Mombasa. The demand for higher prices has made some businessmen and farmers use dhows and canoes to smuggle cloves and other crops out of Zanzibar. According to the Zanzibar Agricultural Transformation for Sustainable Development, 2010-2020 policy, cloves have been a major foreign exchange earner in Zanzibar for the last 150 years.

Clove trees take at least five years before they start flowering, so poor prices have dissuaded farmers from replacing old or diseased trees, and some have abandoned their fields

MONOPOLY: Cloves are dried on mats in the sun. The government is reluctant to privatise clove farming Its production has, however, registered a significant steady decline over the last four decades from an annual average of about 16,000 tons in 1970’s to a current average of between 1,500 to 3,500 tons in the 2000’s. The declining production has been attributed to climatic variations, inse-

curity of the three-acre land tenure system, diseases, poor management and limited replacement and ageing of clove trees. In an effort to rehabilitate the clove industry, Zanzibar commissioned a study in 2004 to review the existing structure of the Zanzibar clove

industry and proposed strategies for revamping the clove industry. Under Zanzibar law, farmers may only sell cloves to Zanzibar State Trading Corporation (ZSTC). Clove trees take at least five years before they start flowering, so poor prices have dissuaded farmers from

replacing old or diseased trees, and some have abandoned their fields. The islands’ retired President, Amani Abeid Karume has for years vowed to liberalize the clove industry, and in 2003 hired the Economic Research Bureau at the University of Dar es Salaam to formulate a development strategy to be in place by the end of 2007. But little was done, prompting many of Zanzibar’s farmers to turn to crops such as seaweed and coconuts, which are freely traded.

Decentralisation frustrating veterinary services BY SAMUEL NABWIISO KAMPALA, UGANDA-Veterinary doctors have decried poor delivery of veterinary services in the country. They attribute the inefficiency to the decentralization. The doctors are asking the Government to recentralize delivery of veterinary services in a bid to improve access to quality services. Dr Robert Ojala the Chief Executive Officer of the Uganda Veterinary Association (UVA) told East African Business Week that the current administrative system of decentralization has greatly affected veterinary service delivery in the whole country. “When you look at veterinary service delivery in the country, it is shocking. Many livestock farmers are not accessing these services because of the high costs. Some districts have failed to recruit staff because of limited resources and poor facilitation.” The Government introduced the decentralization system in 1997. Services were left under the control of Local Governments at the District Level as the lead agencies to offer services on behalf of the central Government. According to veterinary doctors the Government is supposed to avail Veterinary Laboratories for clinical trials in case there is an out-

Administering veterinary services in Uganda comes at a high cost because the veterinary drugs are imported from Europe and Asia

A veterinary doctor examining sheep in Kotido District brake of livestock related diseases. Ojala said, “The Government veterinary doctors have no transport, no proper accommodation and are paid poorly. As a result many doctors shun these jobs and prefer

opening up private clinics. Another Doctor who spoke to East African Business Week on condition of anonymity said: “Sometimes we get calls from farmers needing assistance but they cannot

pay for the necessary drugs. Dr. Abed Bwanika the former president of UVA said the decentralization policy disfranchises the delivery of veterinary services.He urged Government to come up with

policies aimed at controlling disease spread. Dr. Ojala said UVA plans to meet President Museveni to find mechanisms of improving the delivery of vet services. According to the survey which was conducted by the Intergovernmental Authority on Development Center for Pastoral areas and Livestock Development, the livestock sector contributes about 3.2 percent to the GDP.


LIVING East African Business Week I February 3 - 9, 2014

23

Tanzania misses out on its leather Tanzania ranks second after Ethiopia in availability of hides and skin needed for the development of leather manufacturing industries that could play a role in creating job opportunities and boosting the country’s economy. Joram Wakari, the Executive Secretary of the Leather Association of Tanzania talked to Kenan Kalagho of East African Business Week. Below are excerpts:Qn: Why has there been low investment in leather industry in the country despite the fact that we rank second after Ethiopia in raw materials availability? Answer: The leather industry in the country has the total installed capacity of 74.2 million square feet, but most of Tanzania hides and skins are smuggled to neighbouring countries like Kenya, leaving our few industries with a lack of raw materials. In that scenario with little availability of raw materials on the market, investors shun away from investing and or expanding their leather industries. Qn: What is the government doing to counter this and help in getting raw materials to local industries? Answer: The government has done a lot. First it imposed a 20% tax on the export of hides and skins in the country followed by a 40% tax increase in 2007 and by 2012 the tax was increased to 90%. This halted the export of hides and skins overseas and as of 2012 only 19.4 million square feet of hides were exported. Yet still, local leather industries suffered the same fate.

Joram Wakari, Executive Secretary, Tanzania Leather Association tanning and leather manufacturing industries because one hide is able to produce up to 20 pair of shoes which would be able to employ many Tanzanians. HIDES AND SKINS: The leather industries are deficient of raw materials forcing investors to shun the sector Qn: Do we have the market for our hides and skins? Answer: Yes we do have the market and most of our hides and skins are exported to the Far-East countries of Pakistan, India and China. There is need however to build our own capacity in producing the finished leather which could create a lot of job opportunities and improve the country’s economy rather than exporting our leather in a semi-processed form.

Qn: What are the challenges facing the leather industry in the country? Answer: There is lack of hides and skins because most of the raw materials are exported illegally through our ports and border posts. This is alarming because it denies the country taxes and job creation. Besides the competition for local industries in order to get the best hides and skins, there is also cheating on weight and price of leather at the

international market for the exported leather. Qn: What needs to be done in improving the leather industry in Tanzania? Answer: Only small scale industries are involved in leather manufacturing and that by 2011 only 6 percent of fine leather products were exported outside Tanzania because of price sensitivity in the country. There is a missing link between

Qn: Anything else? Answer: We need to exploit the industry in order to make sure that we consume what we produce. For example, in 2012 the country imported 31,000 pair of leather shoes and in 2011 around 42,000 pairs of leather shoes were imported while only less than 3 percent pairs were discovered to be of pure leather. This means that we import poor quality leather while we have the best quality raw materials in the country, thus making the country lose in both forex and employment opportunities.

Jobs for Youth Vital for Economic Progress, WB Report

BY BAZ WAISWA KAMPALA, UGANDA - A new World Bank report on youth employment in Africa reveals that creating millions of productive, well-paying jobs will be vital to boost economic growth, reduce poverty, and create shared prosperity in Africa. Unemployment remains one of the disturbing problems facing Sub Saharan Africa whose population is now under the age of 25 and in need of economic liberation. A big portion of this youthful population are attaining formal education and an expected 11 million young Africans are expected to join the labor market every year for the next decade. The new report, Youth Employment in Sub-Saharan Africa’ explains that 80 percent of the workforce will continue to work on small farms and in household businesses in the near future as formal jobs continue to eludes the young elites. While many African economies have registered impressive

Makhtar Diop, WB Vice President for Africa economic growth in recent years, poverty levels across the region have not fallen as much as expected and young people looking for betterpaying work have been at a great disadvantage. This is partly because many African countries rely heavily on oil, gas, and mineral extraction which boosts economic growth but does little to create new jobs for the region’s fast-growing youth population

For the millions of young people who are just surviving in the hidden ‘informal’ sector, they will need greater access to land, skills training, and credit to thrive

or reduce overall rates of poverty. Attracting investment into large enterprises that create wage jobs in the mainstream ‘formal’ economy is critical, but it is only part of the solution to Africa’s youth employment challenge,” said Makhtar

Diop, World Bank Vice President for Africa. “For the millions of young people who are just surviving in the hidden ‘informal’ sector, they will need greater access to land, skills training, and credit to thrive. This will be a game-changer for small farmers and entrepreneurs who will prosper as African economies grow, in close cooperation with the private sector.” Diop adds that making highquality science and technology education more accessible to young people and shaping higher education courses to fit the skills needed by the modern jobs market was increasingly a high priority for many African countries. New development partners such as China, India, and Brazil are actively working with the World Bank to help develop these science and technology skills for Africa’s youth. The new report notes that manufacturing, services, and agriculture are traditionally labor-intensive sectors that can generate productive work for young people. As working population’s age in other parts of the world, young

Africans could find their labor and skills increasingly in high demand internationally if their governments pursue policies that improve education and job training for their youth. For example, the report notes that young people who received cash grants from the Northern Uganda Social Action Fund to pay for their vocational training and assets needed to start a business later earned 41 percent more than others who did not receive this support. They earned more because nearly three-quarters of them took the opportunity to pay for training and enter a skilled trade. The program was particularly successful in helping young women to break free of poverty. “Governments can approach the youth employment challenge in two important ways—by helping to improve the business environment to spark more private investment, and also by investing more in young people’s education and other skills to create brighter life prospects for them,” said Deon Filmer, Lead Economist at the World Bank and a co-author of the report.


24

FINANCE

East African Business Week I February 3 - 9, 2014

Nicholas Malaki (L) a Senior Investment Manager at Pine Bridge Investments addressing the press during the meeting in Kampala last week. Photo by Emma Onyango

Economists predict strong growth BY EMMA ONYANGO KAMPALA , UGANDA-- Uganda has opened the year 2014 from a strong economic position with inflationary pressures subdued, underpinned by stable energy prices, moderation in food inflation, a stable exchange rate and supportive monetary policy platform. In fact, economists have even predicted that the economy could grow by 6.5% in the FY2013/14 given the positive economic outlook. They base their projections on increased public spending especially on infrastructure and credit expansion. One of the key driving factors in Uganda’s

economic resurgence according to pundits has been the stability of the currency. The shilling appreciated by about 6% over the last year. “Uganda’s overall macroeconomic conditions are favourable, growth is picking up, inflation remains low, the fiscal deficit remains manageable and the exchange rate is stable. That said, we still feel that the country has continued to perform below its potential and is capable of exceeding the 7% GDP threshold,” says Denis Mugalya, an Investment Manager at Pine Bridge Investments, an asset management firm. Mugalya however believes that the Uganda shilling is expected to reverse some gains as import demand increases. “Looking forward, the shilling outlook is a story of two halves with the shilling expected

to remain strong during the first half of 2014 and weaken against the hard currencies in the second half of the year,” said. Economic commentators also point to recent developments saying that these could scupper growth prospects, especially the South Sudan conflict given that it is Uganda’s largest trading partner. The question begs, what the impact of the turmoil in South Sudan on Uganda in economic terms will be given that Sudan’s contribution has grown in leaps and bounds and is now a major source of foreign exchange and a major destination of food and manufactured products from Uganda. Statistics from Uganda Bureau of Statistics show that of all Uganda’s exports to the

COMESA region in the FY2012/13, 27% or $346.82m was to South Sudan followed by Kenya 21% ($268.56m), DR Congo 20% ($255m) then Rwanda 17% ($217.24m). Mugalya also noted that much as inflation remained relatively stable in 2013, inflation tame could rise marginally in the second half of 2014 to between 8-10%. “Inflation in 2013 remained modest underpinned by relatively stable energy prices and moderation in food inflation. Looking forward, we expect inflation to rise in the second half of 2014 driven by base effects while food prices largely depend on weather.” He was addressing the press while releasing the Quarter 4 2013 Investment Brief at the Kampala Serena Hotel last week.

Uganda's January inflation down by 0.1% BY SAMUEL NABWIISO

KAMPALA, UGANDA - Uganda s Monthly Head line inflation has decline by 0.1% for the month of January 2014 as compare to the rise of 0.1% rise in December 2013 thanks to the good supply of food crop related items in the country. According to senior officers at the country’s Bureau of Statistics the country had good supply of food related items on the market this led to the traders cutting the price for food and other related items on the market country wide According to Dr Chris Mukiiza the Director of Macroeconomics at UBOS, the country monthly food inflation which includes price for

maize flour fish sugar and refined cooking oil went down in most centers “This reduction in the price of the commodities is attributed to the increased supplies of these items on the market how ever there was an increase in price of other food related items like sweet potatoes fresh cassava cabbages on the market” he explained Because of the good supply of food related items inflation in most centers went down although in other centers the price trend was still high for example Arua town registered the lowest inflation rate of about 1.4% from the 0.1 rise in Decembers 2013 Masaka and Jinja also had moderate one at 8.7% inflation The improvement in the supplies

On the non-food items the country registered increases in prices for commodities like fire wood and Pharmaceutical related products but with also reduction in the price of beverage drinks petrol cement and new clothes

of food related items can also be attributed to the conflicts in the Southern Sudan which used to be leading market for food related items from Uganda According to Mr Mukasa Bosco former Agro Business trader in Southern Sudan told the East African Business Week that since the insurgency broke out in the newly African state many Ugandan trades have stopped exporting Agriculture related products to southern Sudan thus improving the supply on the local market. On the non-food items the country registered increases in prices for commodities like fire wood and Pharmaceutical related products but with also reduction in the price of beverage drinks petrol cement and new clothes. Sector players in the beverage related products attributes the

reduction in the prices on soda products on the high competition on the market following the entries of other producers( Riham beverages ) on the Ugandan market this has compelled the international beverage s producers like Crown beverages ( pepsi )Century beverages to lower the prices of their products on the market. Comparing Inflation on Annually Basis Mukiiza noted that the Annually Headline inflation rate for the year ending January 2014 rose up by 0.2%(6.9%) compared to the 6.7% that was recorded for the year ended December 2013 this was due to the increase of the Annually food inflation which was high by 21.4% for the year ending January 2014 as compared to the 12.7% for the year ended December 2013


25

BUSINESS INFO

East African Business Week I February 3 - 9, 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) 0 310 0 0 0 0 0 83100 0 11.54 2.63% Jan 31 2014 TOL 8100 8100 8100 8100 3726000 3 0 3700 460 2388.92 64.71 Jan 31 2014 TBL 0 650 0 0 0 0 100 1300 0 11.61 47.60 Jan 31 2014 TTP 8600 8600 8600 8600 860000 1 11300 0 100 860.00 75.00 Jan 31 2014 TCC 2380 2380 2380 2380 128520 3 12800 0 54 151.54 62.50 Jan 31 2014 SIMBA 2700 2700 2700 2700 810000 1 0 7500 300 97.20 60.00 Jan 31 2014 SWISS 0 2660 0 0 0 0 0 43500 0 478.60 69.25 Jan 31 2014 TWIGA 0 490 0 0 0 0 0 38700 0 33.24 0.07% Jan 31 2014 DCB 2660 2660 2660 2660 11438000 7 22100 64100 4300 1330.00 38.57 Jan 31 2014 NMB 0 240 0 0 0 0 0 0 0 359.15 N/A Jan 31 2014 KA 0 5170 0 0 0 0 0 0 0 4088.30 N/A Jan 31 2014 EABL 0 5900 0 0 0 0 0 0 0 353.38 N/A Jan 31 2014 JHL 0 850 0 0 0 0 0 0 0 2524.79 N/A Jan 31 2014 KCB 320 320 320 320 40736000 9 682400 13000 127300 696.49 16.46 Jan 31 2014 CRDB 0 6000 0 0 0 0 0 2200 0 1131.25 N/A Jan 31 2014 NMG 0 5780 0 0 0 0 0 0 0 2370.29 N/A Jan 31 2014 ABG 0 470 0 0 0 0 0 130600 0 75.42 34.13 Jan 31 2014 PAL 0 600 0 0 0 0 0 7800 0 5.44 0.00% Jan 31 2014 MBP KAMPALA - USE COMPANY Date DEALS SHARES VOLUME High (UGX) Low (UGX) Closing (UGX) TURNOVER (UGX) 0 0 0 0 1,474 0 Jan 31 2014 ALSI 1 50 4,050 4,050 4,050 202,500 Jan 31 2014 BATU 7 388,668 115 115 115 44,696,820 Jan 31 2014 BOBU 0 0 0 0 1,054 0 Jan 31 2014 CENT 3 13,000 1,190 1,190 1,190 15,470,000 Jan 31 2014 DFCU 0 0 0 0 7,913 0 Jan 31 2014 EABL 0 0 0 0 903 0 Jan 31 2014 EBL 0 0 0 0 9,031 0 Jan 31 2014 JHL 0 0 0 0 361 0 Jan 31 2014 KA 0 0 0 0 1,297 0 Jan 31 2014 KCB 0 0 0 0 35 0 Jan 31 2014 NIC 0 0 0 0 9,174 0 Jan 31 2014 NMG 0 0 0 0 610 0 Jan 31 2014 NVL 4 192,975 30 30 30 5,789,250 Jan 31 2014 SBU 0 0 0 0 530 0 Jan 31 2014 UCHM 0 0 0 0 25 0 Jan 31 2014 UCL 8 55,131 365 365 365 20,122,815 Jan 31 2014 UMEME 0 0 0 0 261 0 Jan 31 2014 USE LCI 23 649,824 86,281,385 TOTALS KIGALI - RSE Date Security Last 12 Today’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 30, 2014 BOK 250 129 250 245 250 255 25,500 106,100 6,282,300 26,097,900 7 7 -5 Jan 30, 2014 BLR 900 630 838 838 838 840 1,000 45,900 838,000 38,420,000 1 5 -2 Jan 30, 2014 KCB 185 135 185 185 100 18,500 1 Jan 30, 2014 NMG 1,200 1,200 1,200 1,200 1,000 1,200,000 5 Jan 30, 2014 USL 175 165 165 165 500 82,500 1 -

Weekly Trends (EA Stock Exchanges) USE ALL SHARE INDEX 1,510

142

139.2 139.1 139 138.9 138.8 138.7 138.6 138.5 138.4

1,935.00

140

1,500 1,930.00

138

1,490

130

1,920.00

1,470

1,915.00

1,460

1,910.00

1,450

28-Jan-14

31-Jan-14

30-Jan-14

29-Jan-14

28-Jan-14

27-Jan-14

31-Jan-14

30-Jan-14

29-Jan-14

28-Jan-14

128 27-Jan-14

USE ALL SHARE INDEX

1,480

Financial markets Nairobi (NSE)

SECURITY

PRICES AS AT

RSE ALL SHARE INDEX 27-Jan-14

132

31-Jan-14

134

DSE ALL SHARE INDEX

1,925.00

30-Jan-14

NSE ALL SHARE INDEX

29-Jan-14

136

30-Jan-14

144

RSE ALL SHARE INDEX

1,520

1,940.00

29-Jan-14

DSE ALL SHARE INDEX 1,945.00

28-Jan-14

NSE ALL SHARE INDEX 146

PREVIOUS PRICE

% CHANGE

29.00 117.00 148.00 620.00 27.50 18.95 310.00

27.25 114.00 148.00 620.00 27.50 19.70 310.00

+6.42 +2.63 0.00 0.00 0.00 -3.81 0.00

41.50 13.50 11.95 6.20

45.00 13.50 11.95 6.00

-7.78 0.00 0.00 +3.33

16.95 86.00 214.00 31.00 30.50 127.00 43.25 34.50 59.00 294.00 17.40

17.00 89.50 223.00 31.50 31.00 135.00 45.25 34.50 60.00 301.00 17.90

-0.29 -3.91 -4.04 -1.59 -1.61 -5.93 -4.42 0.00 -1.67 -2.33 -2.79

4.15 20.25 11.95 14.95 316.00 51.00 27.75 44.50 17.95

4.55 20.25 12.60 14.85 320.00 53.50 28.00 45.00 18.50

-8.79 0.00 -5.16 +0.67 -1.25 -4.67 -0.89 -1.11 -2.97

86.00 205.00 83.50 15.20 72.00

90.00 210.00 84.00 16.50 70.00

-4.44 -2.38 -0.60 -7.88 +2.86

12.05 9.25 14.80 23.25 13.00

12.10 9.30 14.85 23.75 13.00

-0.41 -0.54 -0.34 -2.11 0.00

JANUARY 31, 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

5.85

6.05

-3.31

18.05 15.70 6.50 312.00 18.10 90.00

18.50 16.10 6.70 315.00 18.85 93.00

-2.43 -2.48 -2.99 -0.95 -3.98 -3.23

35.50 4.75 29.25

36.75 4.60 29.50

-3.40 +3.26 -0.85

11.10 170.00 570.00 40.00 259.00 2.85 3.00 2.95 20.00

11.10 170.00 550.00 40.00 276.00 2.95 3.00 2.95 20.00

0.00 0.00 +3.64 0.00 -6.16 -3.39 0.00 0.00 0.00

9.55 11.00

9.55 11.50

0.00 -4.35

8.00 5.50

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 19.3303 31.8195 0.1849 0.3084 0.2237 NAIROBI (Ksh) 86.1306 141.9383 116.6600 7.6622 28.6420 18.7395 7.8062 17.8187 23.4471 0.8402 1.3787 22.9639 14.2085 DAR ES SALAAM (Tsh) 1,614.4280 2,660.5798 2,194.2502 15.7551 25.8040 143.6563 439.5453 430.4739 18.7288 0.6496 2.3744 1.5438 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 19.1389 31.5045 0.1831 0.3053 0.2215

Selling 19.5217 32.1346 0.1868 0.3114 0.2259

86.3417 142.3339 116.9811 7.7428 28.8283 18.9015 7.9182 18.0946 23.5090 0.8417 1.3815 23.0232 14.2478

86.2361 142.1360 116.8210 7.7025 28.7352 18.8205 7.8622 17.9567 23.4781 0.8410 1.3801 22.9935 14.2282

1,606.3960 2,646.8588 2,183.2529 15.6798 25.6777 143.5795 437.3645 428.3380 18.6465 0.6444 2.3451 1.5380

1,622.4600 2,674.3008 2,205.2476 15.8304 25.9303 143.7332 441.7261 432.6099 18.8111 0.6547 2.4036 1.5496

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


26

EAST AFRICAN BUSINESS WEEK

26

FEB 3 - 9, 2014

TENDERS

TENDERS, JOBS & CONSULTANCIES East African Business Week I February 3 - 9, 2014

UGANDA

RWANDA

TANZANIA

TENDERS

TENDERS

TENDERS

The Ministry of Health and Social Welfare Tender Board invites eligible firms/consultants to express their interest in providing the services: Logistics Management of the long lasting insecticide treated net (LLIN) Replacement campaign in Tanzania.Contact: Permanent Secretary, Ministry of Health and Social Welfare, Plot 36/37 Samora Avenue, P. O. Box 9083, Dar es Salaam, Tel: +255 22 2120261-6, Fax No. 255 22 2137591. Deadline: February 14, 2014.

The Government of Rwanda wishes to identify investors who would be interested in developing the 5 tea sites: Sovu, Rugabano, Karumbi, Kibeho, Munini. 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

Uganda National Roads Authority invites bids for the supply, delivery and commissioning of Ro-Ro Ferry for Wanseko-Panyimur Crossing. Contact: Procurement and Disposal Unit, UNRA, Ground Floor, Room No. GA3, Plot 5, Lourdel Road, Nakasero, Kampala, Uganda. email:procurement@unra.go.ug. Deadline: March 21, 2014.

Temeke Municipal Council invites expression of interest for the development of plots within Temeke Municiapl Council Dar es Salaam, Tanznaia. Applicants may obtain information from the office of the Tender Board Secretary, Temeke Municipal Council at the Municipal Headquarter located along Mandela Road opposite National Stadium P. O. Box 46343 Dar es Salaam. Deadline: Feb 14, 2014. Ministry of Works invites sealed bids from eligible and qualified bidders for the supply, installation and commissioning operated CCTV cameras for Mikese, Mkuranga and Msata weighbridge Stations and being monitored at TANROADS Regional Manger Officer, TANROADS HQ, Road Fund Board and Ministry of Works. Contact: The Secretary, Ministerial Tender Board, Ministry of Works, 1st Floor No. 102, Holland House Samora Avenua, Dar es Salaam. Deadline: February 13, 2014. Government Procurement Services Agency invites sealed bids from eligible suppliers of stationery, office and school supplies. Contact: The Secretary, Government Procurement Services Agency Tender Board, P. O. Box 9150, Dar es Salaam, Tanznaia. Deadline: February 12, 2014. National Examination Council of Tanzania invites bids from eligible suppliers for bids mentioned below: Supply and Installation of Auxillary parts for the web offset printing machine (24/2/2014) Supply of forklift (10/2/2014) Supply of printing materials for offset machine (10/2/2014) Contact: Executive Secretary, National Examinations Council of Tanzania, P. O. Box 2624, Dar es Salaam. Tel: +255 22 27000493-6, Fax: +255 22 2775966, email: esnecta@necta.go.tz The Government of the Republic of Tanzania through Temeke Municipal Council, Dar es Salaam invites expression of interest for the development of plots within Temeke Municipal Council. Contact: Office of the Tender Board Secretary, Temeke Municipal Council at the Municipal Head Quarters located along Mandela Road opposite to National stadium P. O. Box 46343 Dar es Salaam. Deadline: Febuary 12,2014. 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 National Bureau of Statistics requests for expression of interest to provide consultancy services: For civil registration system adjustment and service level agreement in Tanzania. Contact: National Bureau of Statistics, Secretary, NBS Tender Board, P. O. Box 796, Dar es Salaam, Tanznaia, Fax: +255 22 2130852, email: dg@nbs.go.tz Deadline: Feb 14, 2014.

The Rwanda Biomedical Centre/Medical Procurement and Production Division (RBC/MPPD invites qualified bidders to submit bids for the supply of SUPPLY AND DELIVERY OF LABORATORY REAGENTS AND CONSUMABLES .Enquiries regarding this tender may be addressed to Head of Division, RBC/MPPD, Gasabo District, Kigali City, P.O. Box 640 – Kigali – Rwanda. Tel. (+250) 252 580156/580157 – Fax. 0250 252 582725; Email: camerwa@gmail.com no less than 21 days prior the day of submission and opening. Well printed bids, properly bound and presented in two (2) copies and one (1) softcopy of price schedule in 2 CDs recordable, and one original must reach the reception of MPPD at the address mentioned above Not later than 13/03./2014 at 9 am o’clock (7 am GMT). 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 11/02/2014 at 9:30 am. 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:

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.

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

Source: East African Business Week and The EastAfrican

Uganda National Roads Authority invites bids for the upgrading of Kyenjojo-Kabwoya Road (100km) from gravel to paved (bituminous) standard. 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 24, 2014. Uganda National Roads Authority invites bids for the provision of periodic maintenance of 44 selected national roads. 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 10, 2014. Uganda National Roads Authority invites bids for the supply, delivery and commissioning of a landing craft ferry for Sigulu Islands. Contact: Procurement and Disposal Unit, UNRA, Ground Floor, Room No. GA3, Plot 5, Lourdel Road, Nakasero, Kampala, Uganda. email:procurement@unra.go.ug. Deadline: March 21, 2014. Uganda National Roads Authority invites bids for the supply and delivery of protective wear for three years LOT1 &2. 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: Feb 21, 2014. 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. Uganda National Roads Authority invites bids for the supply, delivery of compact panel bailey bridges. Contact: Procurement and Disposal Unit, UNRA, Ground Floor, Room No. GA3, Plot 5, Lourdel Road Nakasero, Kampala, Uganda. email: procurement@unra.go.ug. Deadline: Feb 19, 2014. Uganda National Roads Authority invites bids for the supply, delivery and commissioning of a roll on roll off ferry and a slip way for Zengebe-Namasale crossing. Contact: Procurement and Disposal Unit, UNRA, Ground Floor, Room No. GA3, Plot 5, Lourdel Road Nakasero, Kampala, Uganda. email: procurement@unra.go.ug. Deadline: Feb 26,2014. 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 Uganda Electricity Transmission Company Ltd invites bids from eligible bidders for the supply of tele protection interfaces. Contact: UETCL, Plot 10 Hannington Road, Opposite Serena Hotel, Procurement Office-Ground Floor, Tel: +256 414 233433/4, Fax: +256 414 341789, email: procurement@uetcl.com Deadline: March 12, 2014. Source: East African Business Week and New Vision


IT

27

East African Business Week I February 3-9, 2014

KT to expand online services BY AGNES BATETA KIGALI, RWANDA-Korean Telecom Corporation under the [KT] has established their second joint venture company in Rwanda. KT is the Republic of Korea’s largest telecommunication provider. The new company Africa Olleh Services Ltd, will help improve on Information technology in the country. This was disclosed recently while signing a closing memorandum to fulfill their Shareholders agreement done last year 2013. The memorandum was signed by the Rwanda Development Board CEO Ambassador Valentine Rugwabiza, and the Global and Enterprise Group, KT Corporation Mr. HJ Kim. According to RDB, the government of Rwanda and KT entered a public partnership [PPP] which would help Rwanda get high speed broadband network and expand the nation’s online services capability which would help Rwanda meet her targets in the ICT sector. “Our mission is to help Rwanda get about 700 high skilled professionals to help her develop,” said HJ Kim according to a press release on RDB website. He said that this would help KT enter into Sub- Saharan African markets. “Developing a broad base of ICT

Developing a broad base of ICT skills is in line with the Rwanda’s goals as stated in the Economic Development and Poverty Reduction Strategy Program ll A man uses a tablet to communicate online. KT hopes to increase tech ways to increase access to information

skills is in line with the Rwanda’s goals as stated in the Economic Development and Poverty Reduction Strategy Program ll,” he noted. Olleh Rwanda Network Ltd that was established last year is to add 4G LTE to Rwanda’s comprehensive

national fibre optic infrastructure, providing speed mobile broadband, whereas Africa Olleh Services will expand Rwanda’s cloud service capability which will enabling businesses, the government plus individuals to conduct different activities online.

The first company will therefore cover over 95 percent of the Rwandan population by 2017. Amb.Rugwabiza said that so far the first company was operational and had received shareholder funding hence is on its target of completing 4G LTE wireless broad

Lenovo buying Motorola’s handset business from Google for nearly USD$3bn BY TERRENCE O’BRIEN  According to several sources Lenovo is nearing a rather stunning deal that would put Motorola’s cellphone business in its back pocket for roughly $3 billion. Google snatched up Motorola in 2011 for $12.5 billion. Since then it’s slowly broken the company up, scaled back its device lineup and added its massive pile of patents to its legal arsenal. Now, after losing money for several years straight, Mountain View is reportedly preparing to offload the division on Chinese computer giant Lenovo. The purchase of Motorola will probably also put to bed rumors of Lenovo purchasing BlackBerry... at least for a little while. The company has been looking to step up its mobile efforts for the last couple of years, and Motorola’s existing infrastructure, patent library and brand recognition should help it make a dent here in the US. For one, how will the sale of Motorola to a Chinese firm affect the company’s recent efforts to bring manufacturing jobs back to the US? Google has confirmed the deal, which will see Motorola Mobility change hands for $2.91 billion. Most of that money will be in the form of cash or a promissory note, but it will also include roughly $750 million

“ The LePhone is Lenovo’s first smartphone worth of Lenovo shares. The deal will also cause more than a few cynics to shout, Though, the deal does include a license for that intellectual property and Lenovo will take ownership of Moto’s brand and trademarks. Google also insists that this will not affect its other hardware efforts, including those that might involve wearables and smart home appliances. Though, the tone of the message seems to indicate that Google will be staying out of the mobile phone market for the foreseeable future. An internal memo said that Motorola would be “better served” by Lenovo in the “super competitive” smartphone market.

The advanced research unit of the company will be staying in Google’s possession, however, to help with those other hardware projects. For Lenovo, the deal means that it is now not only the largest PC maker, but it will also soon be the third-largest handset manufacturer in the Americas (not to mention the second-largest cellphone company in China as Lenovo). Motorola’s existing agreements with retailers and carriers instantly gives the Chinese manufacturer a broad reach into mobile markets all over the globe. The company also expressed confidence in Moto’s existing

The purchase of Motorola will probably also put to bed rumors of Lenovo purchasing BlackBerry... at least for a little while

team, and in the short term, it does not appear there are plans to close its Chicago headquarters or start laying off employees, including the executives. Though, things sound less rosy for employees at the Texas plant where the Moto X is manufactured. The company said only that it would do what made sense to grow the brand, and would not commit to keeping existing manufacturing jobs in the US. The current plan appears to be to maintain the Motorola brand where it enjoys recognition and success.

band roll out. “KT second company will start its operations in March 2014 and will firstly work with different government projects allocated to it,” she said. This is expected to ease business in the country by reducing transaction costs and time. Rubagwiza again said that productivity and efficiency would be boosted by the highly created employment throughout the economy.

Samsung extends smartphone lead More than one billion smartphones were shipped last year, with Samsung extending its lead as the world’s biggest vendor, a new survey has showed. According to market research firm IDC, 1.004 billion smartphones were shipped last year, marking a 38.4% increase from the previous year. South Korea’s Samsung accounted for the bulk of that figure, followed by Apple and China’s Huawei. Smartphones made up more than half of the 1.8 billion mobile phones sold. Ryan Reith Program Director, IDC said this was the first time more than one billion smartphone units were shipped in a single year. “Among the top trends driving smartphone growth are large screen devices and low cost,” said Ryan Reith, program director with IDC’s Worldwide Quarterly Mobile Phone Tracker. “Of the two, I have to say that low cost is the key difference-maker. Cheap devices are not the attractive segment that normally grabs headlines, but IDC data shows this is the portion of the market that is driving volume,” he said. “Markets like China and India are quickly moving toward a point where sub-$150 smartphones are the majority of shipments, bringing a solid computing experience to the hands of many.” South Korea’s Samsung extended its market dominance with 42.9% growth, the IDC survey said. Apple, however, saw its market share decline, posting slower growth than the overall market with 12.9% growth. A separate survey released by Strategy Analytics posted slightly differing figures. It said there were 990 million smartphones shipped last year, from an overall figure of 1.7 billion mobile phones. Agencies


28

HEALTH

East African Business Week I February 3-9, 2014

Pay more attention to cancer BY SAM JUMBWIKE KIGALI, RWANDA-As Uganda joins the rest of the world to commemorate the World Cancer, 4th February 2014, it is necessary to note that there is need to reflect on ourselves on what we know and what we have done to fight cancer. World Cancer Day was first organized by the International Union against Cancer in 2005 and like last year, this year’s theme rotates around reducing stigma and dispelling myths about cancer, under the tagline “Debunk the myths”. There are many myths out there which in turn are misleading the masses. Despite the gruesome facts before us that cancerous infections are now the leading causes of death in Uganda, the apathetic response with which Ugandans have responded to the alarm calls to this grave danger necessitates a multifaceted approach in the fight against cancer before the already bad situation degenerates to the worst. At the moment, it is like one has to first either be affected directly or lose a dear one before they can think of cancer as a real threat to their life. Besides that, very few Ugandans bother to take interest in what cancer is, their cause, the symptoms, prevention, diagnosis, treatment, and care for cancer patients because it is simply not their thing. The cancer myths are strongly

At Kampala’s Mulago Hospital a patient undergoes treatment using Uganda’s sole radiotherapy machine grounded in the minds of the majority of Ugandans to the extent that most of the information and evidence being availed just lands on deaf ears. Just last two weeks ago East Africa lost a high profile journalist, Kenya’s Jerry Okungu, who succumbed to prostate cancer. When you tell Ugandans that HIV/ Aids kills, the majority will respond with the necessary precautions, either by abstaining, being faithful or using condoms.

When you tell the same Ugandans that cancer kills, the response is the opposite, it is just the very few affected ones that will take interest in taking the precautions. Time and again we have encouraged Ugandans to go for screening at the earliest opportunity but very few see any sense in it. Cancer stories have been running in the media but still Ugandans are smoking their way to death on Shisha and cigarettes, cooking their food in

buvera, abandoning organic foods for junk, boozing day in and out and advocating for GMOs to be introduced. As long as we do not conquer the minds of Ugandans and impart it into them that cancer is real and a threat to life, all the investments undertaken by the various players in the cancer fight will continue having a minimal impact. On top of investing in scientific research and treatment, the psychological factors in adopting the cancer fight

strategies in Uganda need attention as well. Our strategy at Cancer Information Service of Uganda is to take the fight to learning institutions and work places as a starting point. We believe that having students on board in the cancer fight at this early stage will play a big role in reducing ignorance about cancer. We believe that the earlier the better. We are also engaging religious leaders, political leaders, celebrities, athletes and other stakeholders appealing them to come on board in this much needed sensitization drive. If high profile personalities like President Yoweri Museveni, Dr Kizza Besigye, Prof Gilbert Bukenya, Olara Otunnu, and Member of Parliament gave enough attention to cancer we believe there would a much bigger positive yield. Cancer Information Service of Uganda despite all the financial and manpower challenges that they cope with, continue and will go ahead to offer their best to fight cancer in the country. Our humble appeal to the public is that let’s change the way we live our lives, let us test for cancer and let’s encourage and avert stigma by offering moral support. We know it’s a long battle ahead of us but together we can tackle cancer in Uganda.

Sam Jumbwike is the executive director Cancer Information Service of Uganda

TBS bans secondhand underwear worth millions

BY PATRICK KISEMBO DAR ES SALAAM, TANZANIA-In its bid to ensure secondhand clothes are out of the market, the Tanzania Bureau of Standards, (TBS) last week carried special operation seizing over 20 bales of secondhand underwear worth million of shillings. Speaking to East African Business Week in a telephone interview from Arusha, the TBS Public Relations officer, Ms. Rhoida Andusamile said the secondhand underwear business was contrary to TZS 758:2003 requirements on compulsory standards for inspection and acceptance criteria for used textile products. Andusamile said they carried out a fruitful operation in collaboration with police in various markets located in Kilimanjaro and Arusha regions as part of the countrywide crackdown of the business. She named the markets in which undergarments were seized and burnt as Klolotoni, central market, Unga Limited market,–Memorial and Mbuyuni in Arusha and Moshi. “We would like to remind all people involved in the business of used garments that all used undergarments are not allowed to be imported and sold in the country due to health and safety reasons,” she noted. The standard body issued one-

A vendor sorting his mechandise at an open market. month notice two years ago to all dealers, importers and sellers of second hand clothes dubbed ‘mitumba’ to remove all second-hand innerwear such as socks, brassieres, vests, night dresses, camisoles and briefs from the local market. TBS declared a nation-wide inspection. The operation has been carried our in various regions in the country including Tanga, Kililimanjaro, Arusha, Dar es Salaam’s Ilala and Temeke districts. She disclosed that after Kilimanjaro and Arusha, the Bureau officers will carry their operation in other parts of the country including Dar es Salaam’s Kinondoni district, Ruvuma

region, Rukwa, Mbeya, Iringa and Mwanza before heading to other region for the same mission. The TBS’s officer disclosed that most of the secondhand clothes are illegally imported in the country because the authority had for a long time now managed to control its importation through the ports, and airports. “But we’re still seeing them in the markets! Who is importing them? We need these traders to disclose the agents, who import these clothes,” said Ms. Andusamile, adding that it was not easy to estimate the cost of the destroyed clothes due to the fact that secondhand clothes

There are 48 major importers of second-hand garments in Tanzania, who then distribute the same to retailers

vary in prices. “Nor do we target to use the punishment say of paying Tsh.50million ($30,979) to small traders through the punishment stays. What we want them to do, is to disclose those big agents who import these clothes. They are the oneS who will have to pay,” she said. She said they were not targeting at small scale entrepreneurs, but the authority wants them to name the agents. The TBS Quality Assurance Officer Mr. Paul Manyilika, said the ongoing countrywide operation is sustainable. He appeals to all violators that once caught they would be charged under Section 27 of the

Standards Act No 2 of 2009 and that their goods would be disposed of at owner’s cost. He said: “Worse is that majority of us fail to interpret the meaning of undergarments---these include underwear, stockings (Socks), night dresses etc,” he said. There are 48 major importers of second-hand garments in Tanzania, who then distribute the same to retailers, according to the Ministry of Industry and Trade. According to TBS, a person found selling secondhand underwear is subject to paying Tsh50 million ($30,979). Between 2005 and 2011, Tanzania imported an estimated 452,350 tons of second-hand clothing valued at approximately $284,000. Nearly 2,990 licenses were issued by Tanzanian authorities to traders and dealers of second-hand garments between 2009 and 2011,’’ said the Ministry’s report. According to TBS used garments are among the products listed for inspection by TBS agents before shipment. However analysts said it is difficult to control the use of such clothes from the fact that there is a lot of consumer demand for secondhand clothing which are often imported from Europe, as it is cheaper than locally produced items.


29

ADVERTORIAL

East African Business Week I February 3 - 9, 2014

UGANDA W ILDLIFE AUTHORITY UWA PROGRAMS CONTRIBUTE TO SOCIO-ECONOMIC TRANSFORMATION

U

ganda Wildlife Authority (UWA) is a semi-autonomous statutory body established in 1996 by an Act of Parliament. It is mandated to ensure sustainable management of wildlife and coordinate, monitor and supervise activities related to wildlife management. Uganda’s Vision 2040 has prioritized tourism as one of the opportunities for increasing Per Capita Income from USD 506 to USD 9,500. Accordingly, UWA continues to spearhead programs that target communities’ of people especially those neighboring the protected areas, and encourages the participation of all stakeholders in attracting more tourists to our country. According to the Vision 2040, Uganda is endowed with various tourism attractions including diverse nature based, faith based, culture and heritage, eco-tourism and MICE attractions. The main potential lies in nature based tourism where there is variety of flora and fauna and beautiful sceneries. True to its mission which is : To Conserve, economically develop and Sustainably Manage the Wildlife and Protected Areas of Uganda in Partnership with Neighbouring Communities and Other Stakeholders for the Benefit of the People of Uganda and the Global Community, UWA has implemented a number of programs and registered solid achievements . 1-Strategic plan 2013-2018 UWA has developed a five year strategic plan which maps the organization’s overall strategic direction towards achieving her core mandate. It defines the aspirations of the organization and lays down strategies for overcoming the constraining factors in achieving her vision, mission and strategic objectives. 2-Community livelihood projects Ugandans, particularly those neighbouring Protected Areas, have been given an opportunity to derive numerous benefits from the national parks and wildlife reserves. Through initiatives such as the Revenue Sharing Program, Resource Access Agreements, and Community Concessions, UWA has helped improve the livelihoods of many rural Ugandans who have used the resources to better their lives through. The Revenue Sharing program under which 20 percent of annual gate collections are given out to communities neighbouring the respective protected areas for community livelihood projects and interventions to reduce Human-Wildlife conflict e.g. elephant trenches. The Resource Use Agreements that are negotiated with the local communities and allow them to access resources such as water, firewood and medicinal plants from the protected areas The Wildlife Use Rights (WUR) program, which provides for the licensing of Ugan-

UWA also launched a cashless system of payment using a smart card known as the wildlife card with a microchip where the details of a client or tour operator are loaded to enable them access the national parks and all the products and services without the risk of carrying huge amounts of hard cash. The new system was piloted in Bwindi Impenetrable National Park and will in 2014 roll out to the rest of the parks. It has significantly improved revenue collections by plugging the revenue leakages at the gates, enhanced the security of the gate clerks and the visitors as well as enriching the data about visitors and their interests.

UWA ED Dr. Andrew Sseguya (M) in a group photo with staff. dans interested in undertaking wildliferelated ventures Encouraging local communities to form associations and partnerships through which they can access business opportunities within the tourism sector. • Many young people including women have gained employment either as members of dance groups that entertain tourists who visit the national parks, or a porters and guides. They have also improved incomes through sale of handcrafts to the tourists. In 2013, a total of One Billion One Hundred Forty Seven Million Four Hundred Ninety Four Thousand Two Hundred Thirty Five Shillings (1,147,494,235=) was disbursed in Revenue Sharing funds while about 7 billion is available for disbursement in 2014. The Resource Access Agreements initiative gives rural communities access to the various resources within the Protected Areas such as herbal medicines, firewood, pastures, honey and water. Communities neighbouring Bwindi Impenetrable National Park, Mt Elgon National Park, Lake Mburo National Park, Queen Elizabeth National Park, Kibale and Semliki National Parks, and Toro Semliki Wildlife Reserve continue to harvest resources from these Protected Areas especially during drought seasons when almost everything outside dries up. Tourism Development Through her tourism development initiatives, UWA has contributed to improving the incomes of many Ugandans both in the rural and urban areas. Many rural communities derive direct incomes through employment as guides and through investments in, operating accommodation facilities and restaurants within the Protected Areas, entertaining tourists with cultural songs and drama, and selling handcrafts. Businesses operated by the communities generate up to US$500, 000

per annum. Direct Employment UWA has a deliberate policy to recruit people from communities neighbouring the Protected Areas to work as rangers which has also boosted the incomes of many rural people, and has encouraged young people to embrace education as the best hope for a comfortable future. Of the over 1,300 people that UWA employs as full-time staff, two-thirds come from communities neighbouring the Protected Areas. Apart from the rangers who are fulltime staff, many rural people get employed in various program activities such as boundary survey marking and maintenance of buildings, roads and equipment thereby creating over 10,000 employment opportunities. Concessions and investments The concessions given to private businessmen to operate hotels within the Protected Areas have also boosted employment opportunities for local people. Hotels such as Mweya Safari Lodge and Jacana in Queen Elizabeth National Park, or Paraa Safari Lodge, Red Chili, Nile Safari Camp and Sambiya River Lodge in Murchison Falls National Park, Apoka Safari Lodge in Kidepo, employ massively from the local communities, and contribute revenue to the national coffers through the taxes paid. UWA recently advertised concessions for the provision of accommodation in Kidepo Valley National Park, Murchison Falls National Park, Mt. Elgon National Park and many others. Tour companies During the last few years, many tour and travel companies have sprang up all over the country with the aim of cashing in on the growing and vibrant tourism sector, which is mainly based on the wildlife, beautiful scenery and the water bodies within the Protected Areas. At least 90 per cent of the tourists who come to Uganda visit two or three national parks, and buy souvenirs from the cultural centres. Transport services Also benefiting from the tourism sector are transport companies that provide vehicles for hiring, airlines, crafts’ malls and the National Theatre crafts centre, mobile phone companies, hotels and restaurants. Through effective management of Uganda’s mountainous areas and forest areas such as the Rwenzori Mountains, Mt Elgon and Bwindi Impenetrable Forest, UWA has helped ensure a constant flow of clean water to the lakes and rivers where various commercial activities such as fishing take place. These water catchments support a host of economic activities especially agriculture.

Tourism Minister Maria Mutagamba (2L) is joined by US ambassador Mr. Scott De Lisi (L) to launch the Wildlife Card in Kampala.

Cashless system of payment

Promoting Domestic Tourism In a bid to encourage Ugandans to enjoy their own heritage and contribute to conservation, UWA has developed affordable accommodation and catering facilities in various national parks to supplement those run by private concessionaires. These include selfcatering houses, the Lower camp accommodation units and Tembo restaurant in Queen Elizabeth, construction of bandas in Semuliki and other guest houses in Moroto and Mbale. Game drive vehicles UWA has recently acquired new specialized Game viewing vehicles to improve customer experience. The vehicles fitted with phone can torch chargers plus fridge, are be providing night game drives and thus offering opportunities for tourists to interact with the rare nocturnal animal species. Tourism Infrastructure: A 600 metre Board walk at upper Bigo on the Rwenzoris was con-

International and local exhibitions UWA actively participated in the marketing of Uganda tourism potential through local and international exhibitions and Fairs including World Travel Market in London, IT Berlin, Buganda Tourism Expo, Bunyoro Tourism Fair and Busoga Tourism Initiative events as well as the World Tourism Day in Kabarole. Accolades Three of our National Parks namely Bwindi, Queen Elizabeth and Kibale received certificates of excellence the TripAdvisor while Kidepo Valley National Park was recognized by as the third best national park in Africa owing to spectacular landscapes and amazing wildlife herds especially the buffalos. NGS Buffet Award Our Deputy Director for Conservation (DDC) Mr. Charles Tumwesigye was the proud winner of the 2013 Warren Buffet award for leadership in conservation. He received his award from the US where he addressed eminent conservationists in the world. Capacity Building and Governance issues The Board of Trustees filled all the positions on top management by appointing the Director of Finance and Administration, deputy directors for Human Resources and Legal and Corporate Affairs The UWA ranger force grew by 431 staff following a four and half month training in military skills and wildlife management at Paraa training grounds in Murchison Falls National Park. The rangers were passed out by President Yoweri Museveni in April. Eighty of

President Museveni inspecting a guard of UWA rangers . structed to ease hiking as the Bigo bogs have been a pain to all tourists hiking the Rwenzori along the Central Circuit. Re- habituation of Mubare gorilla group: Following the death of the dominant silverback Mubare group the Gorilla family had almost disintegrated. However, after acquired an equal number of wild ones, the Bwindi National park staff re-habituated the group to have it viable for tourists. Shorter Batwa Trail: To increase selfsustainability and community benefits for the Batwa community, UWA in partnership with USAID STAR developed and opened up a shorter Batwa trail in Mgahinga National park.

these later underwent specialized training in intelligence management. Still under staff welfare, construction of decent accommodation structures was also accomplished in Mgahinga and Kibale National Parks.

Kidepo@50: In August, the tourism fraternity celebrated 50 years of Kidepo Valley National Park during which leading women in conservation were recognized, fallen heroes remembered and the wildlife card launched by the US ambassador Mr. Scott De Lisi. Rwenzori mountain Shorter Trail: A new shorter trail to the Rwenzoris (can be one or two days depending on the visitors wish) was constructed with support from USAID STAR. The new trail that goes up to Lake Mahoma was completed is available for use by tourists.

Prospects for 2014. *Establishment of a construction unit *Setting up an FM station to promote conservation awareness *Purchase of more game viewing vehicles including buses and tourist trucks *Construction of more staff accommodation houses and visitor accommodation *Participation in local and international tourism fairs *Training of rangers in wildlife management Conserving for Generations

High profile Visitors Murchison Falls NP hosted Uganda President Yoweri Museveni, Sri Lankan leader Mahinda Rajapaska, Members of Parliament, the US ambassador, Miss Tourism contestants, and the king of Bunyoro-Kitara. International Airport and airline executives also tracked gorillas in Bwindi after their Routes strategic summit in Kampala.


LIVING

30

East African Business Week I February 3-9, 2014

6

BUSIWEEK PUZZLE 2

1

3

4

5

6

7 9

8

10 11

14

12

13

15 16

17

18

19 20

21 22

23

24 25 26 27 28

DOWN

ACROSS 1. Africa’s Youngest Democracy (10) 5. Had seen more years (6) 9. Not forbidden by law (5) 10. Connects wire of electrical equipment to the main electrity supply (4) 11. Town in South Sudan (3) 12. Town in North Uganda (4) 14. Skin condition among youth (4) 18. Top of a wave (5) 22. State of being pure (6) 23. Very poor (8) 24. Assistant surgeon or doctor (6) 26. Pull down/Destroy (8) 27. Nakedness (6) 28. Level/Measure/Degree of quality (8)

Alexander Mbiro(LEFT), proprietor and managing Director of Jinja

One man’s effort to save Busoga heritage

BY BAZ WAISWA  JINJA, UGANDA–In Uganda, tourism is usually associated with people from Europe, North America and Asia who come to see the diversity that the country has to offer. This however has had a negative impact on the tourism sector, because when the numbers of foreign tourists dwindle the industry suffers. The Government has been using different platforms and campaigns to lure locals to embrace the idea of domestic tourism. However it remains a struggle. Uganda like many African countries is endowed with diverse cultures, natural features and a rich history which is fast diminishing as modernization takes big bites into our heritage. Low numbers of local tourists and the need to inform the world about the rich history of Uganda, especially the people in Busoga in Eastern Uganda

convinced Alexander Mbiro to set up the Jinja Museum. In the 1960s and early 1970s Jina was known across the region as Uganda’s industrial hub before falling onto hard times. According to Mbiro, the Managing Director of Jinja Museum, the facility aims to preserve the history of Busoga and that of Uganda at large. Mbiro, in an interview with East African Business Week, said the young generation is lacking a sense of historical pride as far as culture, science and technology is concerned. “Therefore, there is need to preserve our past experiences and educate the present and forthcoming generations,” Mbiro said. Because there is no museum in the vast Busoga region, Mbiro saw an opportunity to tap into this vacuum. Jinja Museum is located at Kakindu Community Centre, 300 metres from

the famous Source of the Nile site, on your way to Jinja town centre. A visit to the museum will present you with an opportunity to see artifacts that were used hundreds of years ago as the Uganda evolved into modernity. The artifacts include music and entertainment, communication, farming, hunting, security, kitchen ware and zoological section. Others are cultural costumes, an art gallery section and old bank notes. Mbiro said the museum

I encourage people to bring historical artifacts so that we can archive for the learning purpose of our young people

is targeting young people, especially teenagers, who might not have seen these artifacts when they were being used. He said the museum also gives foreign visitors a chance to see how Africans lived their life in past centuries. A graduate of zoology from Makerere University, Mbiro said a tourist now spends more hours during their stay in Jinja unlike before when the museum did not exist. Other small businesses have also latched on the presence of the museum. “Also, it is our responsibility to market to the tourist other great touristic sites in Busoga region which she or he should not miss during his/ her stay,” he said. To remain relevant to the tourism market, Jinja Museum recruited and trained staff who give good customer care and guided tours. Mbiro said: “The visitor

1. President of South Sudan (9) 2. Pressing need, immediate attention (6) 3. Morally good (4) 4. Referee (6) 5. Nullify (6) 6. Badge of honour for a winner (6) 8. Comes after monday (7) 12. Overshadow (7) 18. Be present (6) 19. Act contrary to (7) 21. Strongly disapprove (7) 23. Over there/A far (6) 24. Look at something for a long time (5) 25. Music piece (4)

5

SOLUTION TO BUSIWEEK PUZZLE 4

8

E S T A T E A P P OS I T E A E H Y L N S 10 9 T E R R A C E D A MU L E T U E R A P E R 11 12 T E N A C I T Y H A G GL E 13 E T H R D T O A 14 DI S I N H E R I T 15 16 17 S Y Y Y C O M C 18 A P P E A R A N C E 19 20 21 O D R E M E L R 23 22 P U R I T Y I N DI G E N T T C S A A C Y 25 26 24 I N T E R N D E MO L I S H W N E G E A 28 R 27 NU D I T Y S T AN D A R D

1

2

3

responses have been positive and encouraging so far with good remarks. Many local visitors have donated materials towards this noble cause.” Artifacts are bought from villages in their natural form, while others are collected from public institutions especially those on science and technology. Some people offer items to the museum free of charge. “I encourage people to bring historical artifacts so that we can archive for the learning purpose

5

6

7

of our young people. As it is well known, kids are good agents of change, even in nature conservation. We believe in 10 years local nationals will be majority tourists as a result of awareness to kids. Involvement of corporate companies by supporting local museums and parks either financially or materially will help to grow local tourism,” Mbiro said. He said managing the museum has been an eye opener in matters of culture, environment and nature conservation.


31

SPORTS

East African Business Week I February 3 - 9, 2014

Gov’t moves to sort FUFA BY EMMA ONYANGO KAMPALA, UGANDAThe Accountant General in the finance ministry has advised against Government funding FUFA/FUFA Limited following the Solicitor General’s opinion that the entity is operating illegally. Education and Sports minister Jessica Alupo made the remarks last week while appearing before the education committee of parliament over a recent petition by the Uganda Footballers’ Association that called on Government to suspend all dealings with FUFA Limited. She added that “regulations need to be issued in order to comply with the Solicitor General’s advice and the Constitutional Court Order that restrained them from recognising FUFA Limited as the national association”. During a meeting with the Committee, FUFA President

Jessica Alupo , Sports M inister Moses Magogo irked the legislators when he said that FUFA listening to complaints of non-members, like members of the public is just out of courtesy, and not an obligation. He is quoted by the media to have told the MPs that

“FUFA’s membership is by association” and since, as far as he is concerned the petitioners are not members of FUFA, they have no ground to challenge the decisions taken by those with a stake in FUFA. “For the record, FUFA is a membership based organization and as such the management of its affairs is fundamentally a preserve of its members as enshrined in its constitution and not for all members of the public to determine how the affairs of the federation are run,” the former FUFA Competitions Committee boss said, spawning sharp response from legislators. MPs on the Educations and Sports committee contend that such arrogance cannot generate consensus needed to diffuse wrangles in football, which has seen some people petition parliament and overnment, while others have

taken the matters to court for adjudication. Education Minister Alupo said that she was due to meet the Prime Minister, Amama Mbabazi so as to come up with a final position on the nature of registration recommended for national sports associations, and advise the Solicitor General accordingly. “Government needs to inform the football stakeholders and the public at large on the legal status of FUFA/ FUFA Ltd to diffuse their anxiety, uncertainty, divisions, petitions and quarrels among football stakeholders that have dogged football administration in the past few years,” she stated. As usual the FUFA President played their usual card, sending out that chilly message that these interferences could lead to a FIFA – World Soccer governing body – banning Uganda from international competitions.

What next for the Uganda Cranes

As seen on DStv

AFRICA RED 45009

BY NEVILLE IGASIRA .I. KAMPALA, UGANDA-1999, a year the Uganda Kobs participated in the All Africa Games in Johannesburg, a tournament the team subsequently impressed all who followed it. It was a dreamy team I can tell you that. Ibrahim Sekajja, Sulaiman Tenywa, Hakim M agumba, and the “Mu-Mu” lethal partnership upfront of Hassan Mubiru and Andrew Fimbo Mukasa. This young team of 1999 just took your breath away! Tactically they were so good, they oozed talent that had not been seen in a Ugandan team for a long time and the technical skill each individual player possessed saw most of these players enjoy glittering football careers to date. So it was somewhat an anticlimax later on in the tournament when they were beaten in the semi-finals and also in the 3rd place play-off by a relatively good South African team. I am convinced that if only Andrew Mukasa on the day played with more purpose and for the team leaving his off-field differences with Ibrahim Sekajja to one side, for just the full 90 minutes, Uganda Kobs would have gone further in the tournament or at least beaten South Africa convincingly. Fast forward to 2014, under the stewardship of the current FUFA president Engineer Moses Magogo, a formidable Cranes team featured in the CHAN tournament being held in South Africa. Uganda Cranes which has always found games against West African opponents tough and very tricky managed to convincingly beat Burkina Faso Stallions in the opening fixture of the group giving

LIVE TV GAMES ENGLISH FOOTBALL – PREMIER LEAGUE Mon, 03 Feb

Manchester City vs. Chelsea

21h00

Sat, 08 Feb

Liverpool vs. Arsenal

14h00

Sat, 08 Feb

Chelsea vs. Newcastle United

16h45

Sat, 08 Feb

Norwich City vs. Manchester City

16h50

Sat, 08 Feb

Swansea City vs. Cardiff City

19h00

Sun, 09 Feb

Tottenham Hotspur vs. Everton

15h00

Sun, 09 Feb

Manchester United vs. Fulham

17h30

SS3/SS3N SS3/SS3N Maximo360 SS5N/Maximo SS3HD/SS3 SS3/SS3N SS3N/Maximo

SPANISH FOOTBALL – LA LIGA Mon, 03 Feb

Villareal vs. Osasuna

22h55

SS5/SS5N

Sat, 08 Feb

Espanyol vs. Granada

18h55

SS7/SS7N

Sat, 08 Feb

Real Madrid vs. Villareal

20h55

SS5N/Maximo

Sun, 09 Feb

Almeria vs. Atletico Madrid

17h55

SS2HDASS5N

Sun, 09 Feb

Sevilla vs. Barcelona

21h55

SS3/SS3N

ITALIAN SERIE A Sat, 08 Feb

Fiorentina vs. Atalanta

18h55

SS5HD/SS5

Sat, 08 Feb

Napoli vs. Milan

21h40

SS7N/Maximo2

Sun, 09 Feb

Torino vs. Bologna

13h25

SS5/ Select2

Sun, 09 Feb

Verona vs. Juventus

15h55

SS5/SS5N

Sun, 09 Feb

Inter vs. Sassuolo

21h40

SS7/SS7N

GERMAN FOOTBALL – BUNDESLIGA Fri, 07 Feb

Borussia M vs. Bayer Leverkusen

21h00

SS3/SS3N

Sat, 08 Feb

Nuremberg vs. Bayern Munich

16h20

SS7/SS7N

Sun, 09 Feb

Schalke vs. Hannover

18h25

SS7/SS7N

FA CUP

hope to Ugandans that maybe the long held tag of chokers was about to be vanquished. Beating the 2013 African Nations finalists, who only lost to the eventual winners Nigeria was a statement in its’ self. “To see the kind of performance the boys put in, the work rate, desire, creativity and tireless defending, left most doubters eating humble pie because most didn’t give them much of a chance,” a very proud Micho Sredojevic said at a press conference in Uganda on team’s return home.

However, the Uganda Cranes in the second game showed another side to their personality. We can either put it down to nerves, complacency or luck of international experience but it looked like the team took this game for granted having beaten Burkina Faso earlier on, feeling that Zimbabwe would be a walk in the park. On the contrary the Cranes were totally out played in all departments, the team was a shadow of itself and a goalless draw flattered to deceive. Bringing us to the final group game against Morocco, one they went on to lose 3-1 after holding their own for long

Tues, 04 Feb

Fulham vs. Sheffield United

Wed, 05 Feb

Preston N vs. Nottingham Forest

spells of the match. Our tournament best performer, Yunus Sentamu notched his third goal of the campaign, his exploits coming to nothing as the Cranes crumbled in the last 10 minutes of the match conceding two goals. Something Micho credited to both the brilliance of the Morocco striker Iajour Mohcine and his boys failing to keep shape and concentration as the game winded down. You can say we football fans are fickle but if you witness performances such as the one the boys in yellow put in against the giant West Africans, then the shoddy performance against the Zimbabweans coupled with the indifferent performance

21h40 SS3/SS3N 21h40 SS3/SS3N

against the North Africans, Morocco. You were in for a rollercoaster ride for the duration of the tournament because I can tell you that we all jumped on the wagon and followed religiously when the team won the first game, jumped off the wagon completely and cursed the team when they lost. This team may not be as gifted as the one of 1999 or even the famous Cranes teams of the 70’s, 80’s and the early 90’s but there is a lot of potential to be hopeful that one of them is going to explode into the next Ugandan superstar, already some of the boys left a mark at the tournament.

GET

DS Sttv FO OR R FREE

Simply pay your subscription before your due date over the next 3 months and you could

WIN WI N 12 12 MO MONT NTHS HS DStv DS tv SU SUBS BS SC CRIPT CR IPTIO IP TION IO ON

Rewards

Open to all DStv packages. For more information, visit dstv.com. To subscribe call all 0312 245 245 or visit any of our MultiChoice branches countrywide. *Terms & Conditions apply.

@DStvUganda

www.facebook.com/DStvUganda


32

 EAC

Qualities of a good advert

EALA hails Bageine for job well done

East African Business Week I February 3 - 9, 2014

PAGE 15

PAGE 21

Uganda to increase power generation BY EMMA ONYANGO KAMPALA, UGANDA–The commissioning of the 250MW Bujagali Hydro Power dam in 2012 gave Uganda a sigh of relief given that the months preceding it, were characterized by widespread loadshedding. This had grossly affected Uganda’s competitiveness as manufacturers and traders incurred high costs of operation because they resorted to using generators. Statistics from Electricity Regulatory Authority (ERA) show that Uganda’s current total installed capacity is 682MW. Registered peak system demand in December 2013 stood at 503MW compared to 506MW in November. However, the country needs to find additional sources of power given that the demand for electricity is growing at an annual rate of between 10-12%. As a result, the country is looking at alternative sources of energy. Last year, ERA and the Ministry of Energy and Mineral Development issued several permits for different projects that will ease the increasing power demand in the country. The much anticipated commencement of construction of Karuma Dam by Sinohydro, a Chinese Firm contracted by the government of Uganda to construct the 600MW Karuma dam begun. A team of financiers from Exim Bank of China were in December 2013 taken on an assessment tour of the project site as negations for funding were drawing to a conclusion. They afterwards met the Finance Minister Maria Kiwanuka to close the deal. Speaking to journalists later on, Mr. Song Yi Jun, Sinohydro Project

Sinohydro and Exim Bank of China officials tour the Karuma project site Manager said, “As you can see, we have started assembling equipment and soon full scale construction will be under way.” The firm has lined up 500 Chinese Experts to provide for the task which will see some 3000 locals directly employed at the peak period. The Chinese government will provide 85% of the total project cost through a loan while Uganda will provide the remaining 15% and is to be completed with 60 months. Isimba hydropower project with an installed capacity of 183MW is also being developed by China International Water and Electric Corporation (CWE). The power plant and associated evacuation line will also be developed under bilateral cooperation between Uganda and China with the Chinese government providing a loan amounting to 85% of the total project cost with Uganda covering the other. The project will take 40 months.

Uganda also launched a country framework for nuclear that will help Uganda generate enough nuclear power which will only be used “for peaceful purposes.” Launching the program, Prime Minister AmamaMbabazi said that the nuclear plan matches nuclear technology to national priorities for sustainable development. The nuclear energy project was signed last year between Uganda and International Atomic Energy Agency (IAEA). Mbabazi said the drive for investment that Uganda craves for cannot be realized if there is no supporting infrastructure like electricity, roads and railways that lower the cost of doing business. According to Dr. Benon Mutambi, the Chief Executive Officer, ERA, The existing supply from renewable sources is sufficient to meet the current demand. We have reserve

The drive for investment that Uganda craves for cannot be realized if there is no supporting infrastructure like electricity, roads and railways.

capacity of 100MW from two heavy fuel oil-based plants, one in Tororo and the other in Namanve. “However, we recognize that this is expensive which must be dispatched only as a last resort as demand continues to grow. During 2013, the heavy fuel oil plants were not dispatched,” he told journalists at a briefing to share the developments in the electricity sub-sector recently. He also told the press that the Authority has in place plans to increase the uptake of renewable energy projects so as to accelerate them into production. “Among plans is the Global Energy Transfer for Feed-in-Tariffs (GETFiT) scheme which aims at incentivizing developers to accelerate renewable energy projects into production and includes a premium range 1-2 cents per kilowatt hour on Renewable Energy Feed-in-Tariffs (REFiT). “It avails a guarantee scheme to enhance the bankability of the projects and a syndicate of concessional funding from international financial institutions.” According to ERA, the first round of bidding for the GETFiT resulted in qualification of eight renewable energy projects with a combined in-

stalled capacity of 83.7MW. Construction of these projects starts this year and will be commissioned within two to three years. The second round of bidding for the remaining capacity of 67MW was initiated towards the end of 2013 and more renewable energy projects are expected to qualify for the GETFiT premium. In addition to GETFiT, ERA increased the Feed-in-Tariffs for renewable energy projects in order to accelerate project uptake hence commissioning. All these measures are aimed at ensuring availability of sufficient electricity supply to meet the growing demand. Government has commissioned construction of the 600MW Karuma Hydropower plant which will be developed under bilateral cooperation between Uganda and the Chinese government. In an effort to promote power generation from renewable energy sources, ERA issued five feasibility permits during the first half of the FY2013/14 to companies in order to facilitate undertaking of detailed studies for prospected development of a combined capacity 99MW of grid connected solar photovoltaic power in various parts of the country. According to Mutambi, the Authority is in advanced stages of procuring a consultant to package a tender development of 50MW from solar photovoltaic projects which will be commissioned by mid-2015. Five additional permits were issued for prospected development of 33.7MW of small hydropower plants. The Authority also extended the duration of three permits for the prospected development of a combined 36.2MW from renewable energy.

East Africans win awards to study in Australia DAR ES SALAAM, TANZANIA–Seventy one East Africans are going to be undertaking fully-funded post graduate study in Australia in 2014 after winning highly prized Australia Awards. The Statement availed to East African Business Week said Kenyans topped the list securing 23 Awards as 22 went to Tanzanians and 20 to Ugandans. The statement signed by Asif Khan, Senior Program Manager, Australian High

Commission said two applicants from Burundi and four from Rwanda also received Australia Awards. The successful scholarship recipients were selected from a pool of over 6,000 applicants from across Africa, said Khan. For his part, the Australia’s High Commissioner, Geoff Tooth, expressed his delight at the success of East Africans. “Australia Awards provide life-changing opportunities to participants from East Africa,” he said.

countries’ future when they return from Australia. “It is also great news for Australia’s bilateral relations with East Africa. Our alumni numbers are growing exponentially and leading to more, and deeper, people-to-people and institutional links,” said the envoy. Geoff Tooth, Australia Awards are deAustralia’s High Commissioner signed to develop capacity and leadership skills so that awardees are equipped to contribute Tooth said the Awards are to development in their home designed to develop leaders countries. who can contribute to their

Some 248 professionals from 25 African countries will commence post graduate studies in Australia this January having received a fully funded Australia Award scholarship. According to the Maryline Gachoya, Research and Communications Officer, Australian High Commission, the Awards provide enhanced leadership, knowledge and technical skills to professionals in partner governments, tertiary institutions and strategic organisations that are driving sustainable

development. “The Awards provide scholarships for Masters and PhD study in Australia, as well as fellowships for short-term professional development training courses both in Australia and Africa,” she noted in a statement. The full cost of tuition, training materials, travel, accommodation, living expenses and health insurance for basic medical and hospital care in Australia is covered by the Awards.

PUBLISHED BY EAST AFRICAN BUSINESS WEEK LTD. NAIROBI, KENYA At Meru Building off Upper Hill Road, Apartment No. 1 Tel: +254 733249693

KAMPALA UGANDA Plot 133, Kira Road Kamwokya Tel: +256 414 531345

DAR ES SALAAM, TANZANIA First Floor, Ubungo Plaza Tel: +255 22 2460820

KIGALI, RWANDA Trust House Muhima Tel: 250 252 504165

BUJUMBURA, BURUNDI Tel: +257 76 (79) 918854 Email: info@busiweek.com


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.