Vol x issue xxv by East African Business Week

n NEWS

n EAC

URA to tighten grip on ivory trade

Serengeti issue in EAC court

PAGE 3

PAGE 21

E AST

UNVEILING OPPORTUNITIES

VOL. 9, ISSUE 25 FEBRUARY 17 - 23, 2014

www.busiweek.com

A F R I C A N

KSH 40; TZSH 1,000; USH 1,500; RWF 600; BIF 1,500; 5 BIRR, SS£ 2.5

Uganda amends bids law

BY PAUL TENTENA

nKAMPALA, Uganda- The Public Procurement and Disposal of Public Assets Authority (PPDA) last week started working under a new law after amendments to the 2003 Act.

According to a directive to all government accounting officers, the main reasons for the amendment is to strengthen the PPDA by giving it additional powers and to regulate procurement planning. The Public Procurement and Disposal of Public Assets Authority Regulations, 2013

which came into force on February 7, 2014 will also ensure transparency and accountability by making Accounting Officers personally liable for their actions in the procurement process. It will also promote local and small enterprises through preference and reservation

BY CLAUDINE NIZIGIYIMANA

BY EABW REPORTER

TO PAGE 2

Burundi to review procurement

Five to list on Rwanda exchange nKIGALI, Rwanda---The Rwanda Stock Exchange (RSE) will see more activity with the expected listing of at least five firms later this year. Officials and brokers from the Rwanda Stock Exchange are optimistic the bourse will receive more Initial Public Offering (IPO) this year, considering the strides it made in both the regulatory framework and increase in annual turnover. Celestin Rwabukumba, the Chief Executive Officer, said last week they had received confirmation of five companies to list this year. However he declined to give details since it would be premature. “The interest in the market is there and during the course of this year, we shall see more (listings) on the stock market,” he said.

schemes and guarantee the confidence of the public in the procurement process by establishing the PPDA Tribunal. This will act as a court of appeal. The PPDA Act of 2003 was not making

OPTIMISTIC: Rwabukumba said there is strong interest shown by investors and the Central Bank reported that turnover at the mart continues to rise, especially after the regulatory framework had improved.

Tz to destroy $50m ivory stockpile Dangote stirs up Kenya cement BY KENAN KALAGHO and the United States that have for long nDAR ES SALAAM, Tanania--Tanzania’s 90 metric tonne stockpile of ivory valued at about $50 million si to be destroyed. Tanzania President Jakaya Kikwete was speaking last week in Dar es Salaam while launching an advertising campaign on antipoaching. He said burning the tusks would send a signal to poachers that the country was now serious over the slaughtering of its elephants. This means that Tanzania has now joined other countries like Kenya, Japan , France

supported destroying ivory stockpiles instead of putting them up for sale through auctions. This has been a hard time for Tanzania which has for long argued for the sale of the ivory stockpile in order to finance the anti-poaching campaigns including the recruitment of game rangers and help to subsidise personnel salaries. President Kikwete said it is high time the country suspended any plans for selling the ivory stockpile. He said this would further the ill intenTO PAGE 2

BY HUMPHREY LILOBA nNAIROBI, Kenya--Competition is heating up in Kenya’s lucrative cement sector with the imminent entry of more players, such as Nigeria’s Dangote. Established players, such as La Farge’s Bamburi and the East African Portland Cement EAPCC are finding the going tough especially with the increase in capacity at Athi River Mining, another big producer of the commodity. In the recent times, a number of Chinese firms have also set up shop in Kenya; manufacturing TO PAGE 2

nBUJUMBURA, Burundi---Burundi Second Vice-President, Dr. Gervais Rufyikiri, has said the government is aware that the current procurement code still has gaps. He said last week this is the reason why the government started two major exercises for reforming the system The first involves an audit of the compliance of the public procurement since the implementation of the 2008 reforms and the other is on a review of the Code. Dr. Rufyikiri was chief guest during ceremonies to recognise Contracting Authorities who had distinguished themselves in management of public procurement in their administrative entities during 2013. He congratulated the Contracting Authorities and encouraged others to follow their example, making more efforts during the year 2014 to join the circle of the best. The Ministry of Agriculture and Livestock and the General Directorate of Penitentiary Affairs performed the best. Dr. Rufyikiri said good management of public procurement is a foundation for the fair management of public finances and an important catalyst for the promotion and consolidation of good economic governance. The Second Vice-President further recalled that through the 2008 procurement reforms the various contracting authorities have been more empowered through their cells including procurement management, while better control structures were implemented. Concerning the review of the Public Procurement Code for further improvement, the Second Vice-President said the Public Procurement Regulatory Authority (ARMP) has already initiated a participatory process of consultation with all partners and other direct stakeholders for TO PAGE 2

NEWS

East African Business Week I February 17 - 23, 2014

Tanzania to destroy $50m ivory stockpile FROM PAGE 1 tions of the poachers and further reduce the number of elephants which currently stands at 13,084 from the previous population of over 100,000 recorded in the early 1970s. He said the country would destroy the entire ivory stockpile in order to intensify the fight against poaching that will also aim to send a severe signal to poachers and deny them market opportunities. “We will soon start using the high tech of drone surveillance in all our national parks to protect the both elephants and other animals that are been the target in the country like lions and leopards,” Kikwete said. He said the country can rely on positive international support. He said the efforts of the government on anti-poaching would only be realized if there is a total ban on ivory trade throughout the region and the whole world at large. He also said countries like China, Vietnam, and Thailand should advocate for a ‘no ivory buying’ campaign to boost anti-poaching efforts. The President however said that the catchment areas being occupied by the country’s national parks were not that easy to combat illegal poaching especially with the country’s financial

accounting officers personally liable for their actions in the procurement processes and had no arbitrating tribunal for bidders who may want to question or challenge an awarded tender. In the new law, the role of an Accounting Officer has been expanded beyond that appointed by the State to include heads of statutory bodies or state enterprises. It stipulates that when conducting procurement audits, compliance checks or investigations, an authorised officer of the Authority may enter any premises of a Procurement and Disposal Entity, at a reasonable time and inspect the premises. The PPDA official can make any inquiries that may be necessary for the collection of information.

FROM PAGE 1 comments, opinions and suggestions useful for this purpose. He said the ultimate goal of the exercise is to finalize a revised Procurement Code,

clearer, easier to interpret and more suited to realities on the ground, without forgetting to align it with those of different regional economic communities of which Burundi is a member.

Five to list on Rwanda bourse FROM PAGE 1

Tanzania President Jakaya Kikwete was speaking last week in Dar es Salaam while launching an advertising campaign on anti-poaching. capacity at carrying out anti-poaching exercise. “Selous National Park is more than 200,000 square kilometres, and this is a

great challenge when it comes to fighting against poaching in the country” he said.

Uganda amends bids law FROM PAGE 1

Burundi to review procurement

The law also states that where an authorised officer is refused entry or is prevented from entering premises, a magistrate may, on application by the Authority, issue a warrant authorising the Police to enter the premises, using such force as may be reasonably necessary and to conduct the search and obtain the required information. “Where there is persistent or serious breach of this Act or regulations or guidelines made under this Act, the Authority may direct the concerned Procurement and Disposal Entity to take such corrective action as may be necessary in the circumstances, to rectify the breach,” the directive reads in part. The new law also gives powers to the Authority to, on its own initiative; accredit an alternative system for Procurement and Disposal Entity which is

not able to comply with a procurement or disposal procedure required under this Act. ‘The Authority shall, in consultation with a competent authority and relevant stakeholders, specify the public procurement contracts to be subject to a reservation scheme and shall designate the particular sectors, within a specified geographical area, that are eligible to participate in the reservation scheme. ‘The Authority may on the recommendation of a PDE or after investigations on its own initiative, or where it is determined after a special audit or by a court that a bidder is engaged in corrupt or fraudulent practices, suspend a provider from engaging in any public procurement or disposal process for a period determined by the Authority,’ the directive states.

According to the Central Bank, from July to December last year, the RSE market recorded a total turnover of Rwf 25.8 billion (about $38.4 million) traded in 42.2 million shares compared to a total turnover of around Rwf 11b ($16.4million) traded in 58.2 million shares for the same period in 2012 which is a 133.18% increase in turnovers and decrease of 27.44% in shares. The RSE also added a new listing in October from Uchumi Supermarkets, a company primarily listed on the Nairobi Stock Exchange. As regards the price development, the RSE Rwanda Share Index (RSI) and RSE All Share Index (ALSI) went up by 4.99 per cent and 4.34 per cent respectively from July to December last year compared to the same period in 2012 where the RSI and ALSI went up by 50.05% and 22.4% respectively. In November last year, stock brokers, investors and the media were thrown into a frenzy after it was leaked that Crystal Ventures, the investment arm of the Rwanda Patriotic Front was going to sale its 20% stake in MTN Rwanda through an Initial Public Offering. Apart from the 20% stake in MTN Rwanda, the firm has interests in real estate development, construction and civil works, telecoms, security services, building materials, furniture, as well

as agro-processing. Jean Aime Habimana, a stock broker with Standard Bank Group Securities in Kigali, said that if the shares are floated on the stock, they would perform well “considering that MTN is the leading telecom company in Rwanda and that other listed domestic companies’ shares are doing well.” “It will be a good boost for the stock market. Investors like being availed with a number of options to choose from,” he said. It is not yet clear how many shares the company wants to sell to the public, and the amount of money they are targeting to raise from the sale but what may be for certain is that the telecom will be among the listed on the bourse by the end of the year. Since the official launch of the Rwanda Stock Exchange in 2011, a total of five companies have been listed with the returns continue to be promising. There are only two domestic companies, Bralirwa and Bank of Kigali listed on the RSE while Kenyan firms, Nation Media Group (NMG), Uchumi Supermarkets Limited and Kenya Commercial Bank (KCB) are the only regional crosslistings. . Rwabukumba said that most of the counters have been active over the past three years, signaling the ever increasing confidence investors are gaining on the stock exchange.

Dangote stirs up Kenya cement industry FROM PAGE 1 cement which retails at heavily discounted prices. This has sounded alarm bells within the industry at a time when the construction sector in Kenya is booming. There is also the entry of Savannah Cement; a company associated with Lagos based Dangote Group, one of the most diver-

sified business conglomerates in Africa. The Group’s activities encompass cement, manufacturing, packaging and distribution. Kenya’s cement industry is however a complicated affair and is undergoing some structural changes especially during the last three months. For instance there have been boardroom wrangles at East African Portland Cement. According to news reports, the Kenyan

government halted the appointment of Bill Lay to the chairmanship of EAPCC just hours after his appointment. The current chairman, Mark Karbolo, went to court to block Lay’s appointment, claiming that he still has seven months in office. He added that he would be content to leave after finishing his term, but not to be bundled out as if he had run down the company. Lay had earlier thanked president Uhuru

Kenyatta for giving him the opportunity to serve the country in the capacity of chairman of EAPCC. However, EAPCC’s board rejected Lay’s appointment as director when the government tried to introduce him late in 2013 as a director to the company. Not long ago, Athi River Mining Cement had to defend itself against allegations of polluting the environment brought by a lobby group.

NEWS

East African Business Week I February 17 - 23 , 2014

Minister Maria Mutagamba being shown some of the Ivory in URA’s custody.

Minister Maria Mutagamba examines the Ivory in URA’s custody.

URA to tighten grip on ivory trade BY HERBERT SSEMPOGO

nAt LEAST 1318 pieces of ivory representing over 600 Elephants killed, have been impounded, a sign that more needs to be done to stop the illegal trade. Of these, 867 pieces are in Uganda Revenue Authority (URA)’s custody, 444 are at the Aviation Security offices in Entebbe while about seven are said to be at Central Police Station in Kampala. Following tests, 35 pieces recovered in 2012 at Entebbe International Airport were traced to Angola, Southern Africa. Although the recoveries are commendable, the international community and treaties like the Convention on International Trade in Species of wild fauna and flora demand that Uganda has to double its effort to stop the vice. Indeed, one of the stakeholders, the Ministry of Tourism, Wildlife and Antiquities, voiced its concern in a January 30, 2014 letter to the URA Commissioner General. “Under the Convention on International Trade in endangered species of world flora and fauna (CITES) Uganda as a contracting party is obliged to ensure that international trade in specimen of wild animals and plants does not threaten their survival,” the letter read in part. “Article three of the Convention obligates Uganda to regulate trade in specimen of species in Article I. However, during the

16th meeting of the conference of parties to CITES that took place in Bangkok, Thailand in March 2013, Uganda was named among the eight countries that act as conduits for trade in Ivory.” Elephants are cited under appendix I of CITES. The letter added, “Although Uganda was tasked to outline and implement measures to address the vice, recent media reports continue to reveal numerous cases of seizures of Ivory.” “The Ministry of Tourism, Wildlife and Antiquities (MTWA) as the management authority for CITES is thus increasingly getting concerned about the handling and management of these cases.” MTWA boss, Maria Mutagamba in a follow up to the letter last week visited the Aviation Security office in Entebbe and the URA head office in Nakawa, Kampala. “We have to increase our enforcement to ensure that we stop movement of contraband in Uganda,” Mutagamba stated at Nakawa, adding that President Yoweri Museveni would soon appear at an international meeting to disclose what is being done to combat the problem. “The most important thing is not to impound but to stop the trade because by the time Ivory is impounded, Elephants have already been killed.” Wondering why Uganda continues to be a

conduit for Ivory from other countries, she demanded that “gaps should be identified” and action taken immediately. The practice persists partly because of Uganda’s porous borders, URA Commissioner Customs, Richard Kamajugo told Mutagamba during the Nakawa meeting. Nonetheless, he pointed out, URA constantly engages with Uganda Police Force and Uganda People’s Defense Forces to tackle the problem. He pledged that more was being done to ensure to combat smuggling. Allaying the Minister’s fears, Kamajugo said the Ivory in the URA’s stores was safe and would be handed over to when the cases are disposed of. David Ocaya, a suspect, he disclosed, had been arrested in connection with 832 pieces of Ivory recovered from Luzira, a city suburb late last year. The matter is at Nakawa court. This Ivory is said to have originated from Democratic Republic of Congo. Mutagamba, who was accompanied by Uganda Wildlife Authority (UWA) personnel, proposed “maximum publicity” as one of the deterrents. “These practices should be publicized as much as possible otherwise the international community might think that nothing is being done,” she said. Over the past four years, there has been an upsurge in cases of smuggling Ivory mainly from Tanzania where the grip has been tight-

ened, UWA deputy director for conservation, Charles Tumwesigye told the meeting. Tests, he announced, would soon be done on the pieces in Entebbe to ascertain their origin. Earlier, samples were picked from the 832 pieces recovered from Luzira. Tumwesigye assured the Minister that Ivory in URA’s custody was safe. Moreover, URA has in the past handed over Ivory to UWA. Painting a gloomy picture, Tumwesigye added that the Elephant population had dwindled to about 250,000 in Africa.

“

“The Ministry of Tourism, Wildlife and Antiquities (MTWA) as the management authority for CITES is thus increasingly getting concerned about the handling and management of these cases.”

Israel plans to open embassy in Dar es Salaam BY LEONARD MAGOMBA

nDAR ES SALAAM, Tanzania – Israel will soon open a fully-fledged embassy in Dar es Salaam to make it easier for visa processing and boosting trade between the two nations. The resumption of the diplomatic relations will mean the development of political and economic ties. Tanzania was among the first nations to establish diplomatic ties with Israel after it won its independence in 1963. But it was also among the many African

nations that broke off ties with Israel in the aftermath of the 1973 Yom Kippur War. A survey carried out by East African Business Week revealed that tourists and business communities have been complaining that they incur extra costs to travel to Nairobi for visa processing. They said this is the main reason why trade between Tanzania and Israel deteriorated. “There is a need to open a full-fledged embassy here in Tanzania so as to ease visa processing,” said one of the travelers, Edwin Kibanda. Israel’s Ambassador to Tanzania, Uganda, Kenya and Malawi, Gil Haskel told East

African Business Week the two nations are now working on establishing an embassy in Tanzania. “We are planning to open a full-fledged embassy in Dar es Salaam. The only hindrance for the time being is the global economic challenges, but once things are settled, we will open it,” Haskel said. When asked why it has taken this long to open an embassy while tourism and trade are still being polarized between the two nations, he noted that the delay is not an ideological but rather an economic challenge. He also confirmed that it is true, for the time being, that Tanzania has no embassy in

Tel Aviv. He added that Israel use Nairobi as a regional embassy to serve Tanzania, Kenya, Uganda and Malawi. He said about 20 Israeli companies have invested in Tanzania. The firms are involved in agriculture, agro-technology, irrigation, water management, IT and tourism. In 1995, Israel and Tanzania finally decided to resume diplomatic relations at the ambassadorial level. However since then, there have been no further developments until now. This is despite a tourism boom which has influenced El Al (Israel’s flagbearer airline) to launch flights between the two countries.

SPECIAL REPORTS

East African Business Week I February 17-23, 2014

Uganda faces Sudan Sudan fallout BY EMMA ONYANGO nKAMPALA, Uganda--The conflict in South Sudan has no doubt put Uganda’s economy between a rock and a hard place given that South Sudan is Uganda’s biggest export destination in the COMESA region. Statistics compiled by Pine Bridge, an Investment Firm 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 at 21% ($268.56m), DR Congo 20% ($255m) then Rwanda 17% ($217.24m). From the figures, it only goes on to show that prolonged conflict in the World’s youngest economy could scupper Uganda’s growth prospects. Dr. Louis Kasekende, the Deputy Governor of Bank of Uganda while releasing the February 2014 Monetary Policy Statement recently summed up the situation: “The domestic economy faces a risk of an adverse demand shock if the conflict in South Sudan is sustained.” He however maintained that it was too early bring out concrete figures of how much the conflict in South Sudan will affect Uganda. “We can only be able to find out the full impact in March or April. But if this is sustained, then it will definitely have an impact on imports, exports and the growth of the economy.” The question now 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. Allen Kagina, the Commissioner General of Uganda Revenue Authority (URA) while releasing the half year revenue performance for the FY2013/14 that showed that there was a deficit of Ush246.93 billion ($99m) sounded another alarm. “We are closely watching the situation in South Sudan and we see that the pace at which the volumes are growing will not help us recover the lost revenue. We are already seeing volumes to Juba going up but are yet to see an increase in volumes to other cities.” Corporation tax was the largest

INSTABILITY: A population on the run is the most distressing sight and especially for business people looking to sell their products. contributor (Ush161.19b ($64 million)) to the large shortfall experienced given that a number of companies declared little or no profits at all. Richard Kamajugo, the Commissioner for Customs at URA explains that a stagnation in exports to South Sudan could eventually lead to a reduction in corporation tax. He however stresses that South Sudan doesn’t contribute directly in terms of revenue because there are not a lot of imports from there. “It is a very important destination for our exports because many of our industries here produce for export to South Sudan. If you look at our exports to South Sudan, they were mainly wheat flour, steel products, Cement, beverages, among others. “These sectors are important in that they pay corporation tax after they make profits. Now when the exports decline, it means these companies will not sell and hence not be able to contribute to

“

corporation tax.” Putting it into perspective, Kamajugo revealed to the East African Business Week that as at the end of January 2014, about 850 containers with goods worth Ush50 billion destined for South Sudan were stuck at the border. He also added that the December 2012 exports were double the exports in 2013. He was however optimistic that there is hope given that the situation is improving. Nazarius Rukanyangira, the Head of Marketing at Uganda Clays Limited told this newspaper that the firm had to close its outlet in South Sudan and currently has outstanding orders. “Insecurity in South Sudan is seriously affecting our market because it is our leading export market. Currently we have orders of Ush1.2b but we cannot supply because of the situation,” he told

Insecurity is seriously affecting our market

the East African Business Week in an interview. Dr. Adam Mugume, the Executive Director for Research at Bank of Uganda while speaking to the press at the BoU Headquarters recently explained that the situation in South Sudan trickles down even to the households. He said, “For those exporting to South Sudan or those involved in activities there, there is a return…there is aggregate demand especially if ‘I can return in home.’ Once there is conflict, there is unemployment of resources. So there is no payment to these resources. So aggregate demand even at household level will go down.” The conflict in South Sudan started in midDecember, after President Salva Kiir reportedly accused his former deputy, Riek Machar, of attempting a coup. It has since morphed into what is looking like a full-scale civil war, complete with peace talks in another country – Ethiopia. Many Ugandans who dominate the informal trade in the capital Juba have suffered heavy losses and a number of them have returned home ever since.

UN Security Council tells combatants to show restrain

elcoming the start of the latest round of talks between South Sudan’s sparring factions aimed at resolving the crisis in the country, the Security Council last week stressed that the dialogue will only succeed if “fully inclusive”, and called for all detained and formerly detained political leaders to be allowed to take part in the process. In a wide-ranging statement the Security Council’s ongoing concerns about human rights violations and the deteriorating humanitarian situation in the world’s youngest country, the 15-nation body expressed strong support to the mediation effort being led by the Intergovernmental Authority on Development (IGAD) and welcomed the start of the second round of the political talks between South Sudan lead-

ers on February 11. The talks, between the Government of South Sudan and the Sudan People’s Liberation Movement/Army (SPLM/A), are taking place in the Ethiopian capital, Addis Ababa, achieved a ceasefire last month between the two sides. What began as a political dispute between President Salva Kiir and his former deputy president, Riek Machar,erupted into fullscale conflict in mid-December. Over the past two months, thousands of people are believed to have been killed by the fighting and some 870,000 others have fled their homes, 145,000 of them to neighbouring countries and 75,000 to the bases of the UN Mission the country (UNMISS). Security Council members in their statement condemned violations of the ceasefire agreement by all parties, result-

ing in further violence, death and destruction and urged the establishment by IGAD of the Joint Technical Committee, as well as immediate deployment of the Monitoring and Verification Mechanism. Urging full cooperation with IGAD and UNMISS, the Council called for redeployment and/or progressive withdrawal of allied forces invited by either side, and warned of the “serious consequences” which could result from any regionalization of the conflict. The Council also noted with serious concern recent reports alleging indiscriminate use of cluster munitions by parties to the conflict. As for the fresh round of talks, the Council noted that the exercise now under way between the parties should aim to foster an inclusive political dialogue and

national reconciliation ensuring durable peace and rule of law in South Sudan, “while addressing the underlying causes of the conflict and preventing further escalation of inter-ethnic violence and division.” They welcomed the release of seven of the detained political leaders on January 29 and urged the immediate release of the remaining four detained leaders, “so that they can join Government, political, civil society, women, youth, traditional and religious leaders in participating in the political dialogue and a reinvigorated constitutional process.” Stressing that the dialogue will succeed only if it is fully inclusive, the Council therefore called for all the detained and formerly detained political leaders to be allowed to take part in the political process and supported the intent

of the IGAD Special Envoys to host a series of public consultations in support of national dialogue, as mandated by the IGAD Heads of State. In the statement, Council members strongly condemned widespread violation of human rights and international humanitarian law, including “targeted violence against civilians and specific ethnic and other communities”,. They also expressed concern about the deteriorating humanitarian situation and fastapproaching rainy season, that when combined with the existing food insecurity crisis of 3.7 million South Sudanese, “may result in famine in 2015 and regional instability”. UN News Centre

NEWS

East African Business Week I February 17 - 23, 2014

Tanzania tree firm pays $1.8 million in taxes BY PATRICK KISEMBO nDAR ES SALAAM, Tanzania--The government has earned $1.85 million (about Tsh3 billion) over three years from various taxes paid by the Kilombero Valley Teak Company Ltd (KVTC) between 2010 and 2012. In an exclusive interview with East African Business Week, the Kilombero Valley Teak Company Ltd (KVTC) General Manager, Hans Lemm, said his company has so far contributed $1.85 million between 2010 and 2012. “Our records indicate that we have been contributing in terms of taxes, duties, and other levies $616,000 (Tsh1 billion) every year. We did that in 2010, 2011 and in 2012,” Lemm said. He said, however, that the company has not released the actual amount of taxes it has paid to the government in 2013, though he admitted that the amount is likely to be a bit lower as a result of a number of tax refunds. The General Manager revealed that the company exported around 400 con-

tainers of teak to various destinations during 2013. “In the same year we managed to sell around 4,500 tons of sawlogs to other sawmills who in turn would have exported most of the products that they produced from this material,” he said without revealing the company’s turnover on the exports and sales made in 2013. He told East African Business Week they were expecting to see an increase in production during 2014 to about 550 containers for the year and around 6,000 tons of saw logs. “And we expect that the business will continue to grow for the foreseeable future as the plantation is slowly maturing and reaching its full potential around 2025,” Lemm said. He said that KVTC pre-dominantly exports its products to India and South East Asia and less than 5% of its products are actually used in the local markets. “We would love to sell more products in the domestic market but till date we have not been able to promote teak as an alternative for local

VALUABLE: Teak is a prized wood used in ship and boatbuilding, veneer, furniture, exterior construction, carving, turnings, and other small wood objects. hardwoods. Internationally teak is valued because of its ease to work with, durability and golden brown colour,” he said. “Currently our biggest challenge is the economic circumstance in some of our export markets, in particular India, and the impact on pricing of our products which has not been very good during the past 18 months,” he said. Lemm emphasized: “As a result we have to be very careful

how we manage our business and find a balance between the long term investments in the plantation and the short term ability to generate enough revenue to cover our cost and preferably a bit more than just that.” Lemm said they were very pleased with the progress the company was making although they had to make several adjustments to their strategy over the years both in terms of how to grow the trees as well as what

products provides the company with the best return Regardless of realizing the rapid growth of economy of the country (Tanzania), the KVTC General Manager said, the development results into increasing costs of businesses. “Taxes and levies have gone up sharply in recent years, which in combination with a strong Tanzanian Shilling is resulting in cost increases in US dollar terms,” he noted.

VACANCY HEALTH ECONOMIST Introduction The World Bank’s involvement in the health sector in Zimbabwe is through: (i) grant financing to the Government of Zimbabwe through a Result-Based Financing mechanism with Cordaid as the Project Implementing Agency; (ii) technical support to the Ministry of Finance in budget preparation and analysis; and to the Ministry of Health and Child Care (MoHCC) in various mutually defined technical areas. The Results-based financing (RBF) project was initiated in 2011 to support the country to improve technical, managerial and financial capacity to meet MDGs 4 and 5. The project provides performance-based incentives to health facilities to increase service utilization and quality of care on key MCH indicators. The initial evidence in 18 rural districts indicates that utilsation of MCH services and equity indicators have improved substantially. Building on the success of the RBF program in the initial 18 rural districts, the Government has requested the World Bank to fund a pilot voucher scheme for low-income women in selected low-income urban Districts in Harare and Bulawayo. The urban pilot has been designed in collaboration with two ministries (i.e. Health and Labour) and Cordaid will serve as the implementing agency. This urban pilot combines both demand side and quality improvement interventions in urban health facilities. Cordaid and the Ministry of Health and Child Care seek to recruit a suitably qualified Health Economist to support the Result-based Financing program, broader health financing interventions including Bank’s engagement in the health system aspects as indicated below:Position:HEALTH ECONOMIST Reporting to:- CORDAID Country Director Ministry of Health and Child Care - Principal Director- Policy, Planning M&E Office:Harare Purpose The Health Economist will work on: (1) Results-based financing (RBF) project described above and (2) providing technical assistance to the MOHCC on broader health system and financing aspects. The position serves as a key technical member of the Cordaid team and in the National RBF Management Team in the MOHCC.

Key Responsibilities and Accountabilities: The main duties and responsibilities will include, but will not be limited to: 1. Result –based financing project • Support the management of the urban voucher component (responsibilities include, but are not limited to, monitoring of internal and external control measures of voucher scheme, out-of-pocket expenditure assessment etc) • Perform costing and cost control aspects of the overall project (rural and urban components) in line with requirements of the World Bank grant for periodic reviews of RBF subsidy prices • Strengthen and support data analysis undertaken by the Cordaid team • Promote the frequent use and exchange of results among Cordaid, the Government, development partners and the Bank for project monitoring and propose adjustment if necessary • Support internal dissemination and use of results and evidence from the RBF within the MOHCC • Support RBF in terms of expenditure trends and forecasting. • Work in close collaboration with the MOHCC, the World Bank and other development partners on health financing work on RBF(demand-and supply-sides) • Work on other analytical products for the MOHCC and the project as required 2. Support to the MOHCC on broader health system and financing aspects • Provide technical assistance to the MOHCC in support of efforts to institutionalize RBF and other promising health financing approaches as defined by MOHCC. • Serve as a resource to strengthen health financing and RBF technical capacity in the MOHCC. • Support work on national health accounts and other health sector expenditure reviews as defined by the MOHCC • Provide technical input into forecasting work by the MOHCC, costing of benefits packages etc. • Serve as a key technical resource to the MOHCC in the development of health financing technical and policy briefs and documents to inform policy and management decision makingand strategy development

• Work with the Government and the task team on various health financing aspects. This will include budget analysis, development of financing strategies (e.g. community based insurance), stakeholder consultations, evidence generation, analysis of data etc. • Provide inputs into regular stakeholder consultations (e.g. Ministry of Finance, Ministry of Health, Ministry of Labour, Zimstat, Cordaid, World Bank task team, health providers in the RBF project, TARSC, Development partners, etc.) • Support the MOHCC’s efforts to scale-up RBF nationwide including analysis of national performance trends, and expenditures including from domestic co-financing. Qualifications and Requirements • Post graduate degree (Masters or PhD) in Economics, Public Policy, and Public Health. • Minimum 5 years proven experience as Health Economist. • Training in health economics and familiarity with health financing and economic analysis methodologies • Knowledge of the Health Service Delivery System in Southern region of Africa is an added advantage. • Prior direct working experience in Ministries of Health or in providing technical support to Ministries of Health in Eastern and Southern Africa in health economics, health financing and strategy development constitutes a distinct advantage. • Excellent analytical and report-writing skills • Excellent interpersonal and diplomatic skills • Self-starter • Relevant international exposure and an interest in public health preferred • Previous World Bank experience a plus but not mandatory • Willing to travel in Zimbabwe as and when required Mention the vacancy reference in subject line: - (e.g. Health Economist HEc001 – Harare Application: Submit an application letter and extensive CV in English, including the full contact details of at least three professional referees, should be forwarded to hr.zimbabwe@cordaid.net before the end of day 25th of February 2014. A written test will constitute part of the interview process.

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

African Diaspora need pampering

bout two decades ago, it was fashionable for African governments to invite long lost citizens, now top flight professionals working abroad, to come home and help build the home economies. The invitation came at the height of the clamour over brain-drain, with sub-Saharan Africa constantly losing its best people to North America, and Western Europe. Some did turn up, but admittedly not for very long due to several reasons including the governments’ unwillingness to pay the super high salaries being demanded and governance issues. In other words, many did not understand how we did things over here. Today, the interest has shifted to their savings. But not just that of the doctors, engineers and lawyers. Also that of those working in the lower levels of the services sector abroad. As official development aid (ODA) has gradually fallen off, (except from the Scandinavian countries), remittances from Africans employed abroad have been steadily going up. World Bank figures show that remittances to different regions in Africa hover between 1 per cent and 5 per cent of gross domestic product (GDP). Total remittances to Africa stood at $41.6 billion in 2011, while in 2012 the figure rose to $60 billion. Estimates for 2013 range between $75 billion and $90 billion. Again according to the World Bank, during 2012, ODA to sub-Saharan Africa totalled $44.6 billion. These figures show that the more than 140 million Africans working outside the continent are remitting far more money to Africa than the development aid funds received from international donors. Indeed, the harsher effects of the global economic downturn since 2008, have been mitigated by these flows of cash into African economies. It mostly comes for paying school fees, housing construction, subsidising family incomes and investment in medium business enterprises. According to latest figures, Kenyans lead int he East African Community after sending $1 billion to folks back home while Ugandans, Tanzanians and Rwandans take up the rear. This money has become hugely important to sustaining regional economic growth. This makes it all the more wiser that governments do not antagonise our far flung brothers and sisters. We need their money, so within limits, lets pamper them. Quibbling over dual citizenship is one such issue. Giving them voting rights is another. However, the ome thing that these African professionals can offer and what we desperately need, is expertise. For many years, they have been exposed to the modern ways of getting things done. They can help transfer this knowledge to people back home. An understated point about Chinese rapid economic growth, is that the government sent hundreds of young people to the best universities abroad. After their studies they were obligated to return and share that knowledge at home. In our case, why not offer our professionals working abroad short term contracts to mentor our young people. It will be difficult in the beginning adjusting to the circumstances, but in the long run much cheaper than the technical assistance offered by development partners. This is also a way of giving them a stake in the country, besides encoursaging them to invest more in the relevant home economy. After all, many of them do not have to ever come back at all.

EDITORIAL

East African Business Week I February 17- 23, 2014

Women miss out on regional business deals BY BAZ WAISWA nKAMPALA, Uganda-Women involved in Small and Medium Enterprises (SMEs), are seemingly unaware of the various business opportunities available to them. This is despite the existence of the Common Market which provides for free movement of goods and services across the East African Community (EAC). Experts say this is because they lack information and powers of interpretation, even as the region is fast integrating economically. Uganda’s Minister of Trade, Industry and Cooperatives, Amelia Kyambadde last week said, some women doing crossborder trade still use panya routes to avoid taxes which were long ago scrapped with the coming of the Customs Union and Common Market. The minister said such uninformed women are part of the 52% who make up the 11 million economically active Ugandan population. She said they are mostly in the SME sector which regional governments incresingly see as the engine of future rapid economic growth. “Let’s sensitize them (women) about opportunities in East Africa. We need to disseminate this information to actual entrepreneurs. Let us simplify our form of communication. We are not at the same level of internalizing information,” Kyambadde said. In the last decade, the EAC has undergone rapid changes as regards to economic integration and harmonization of key policies intended to make it more business friendly. These include the implementation of a customs union, common market and recent signing of a monetary union to accumulate in a single currency in 10 years. However women, especially those carrying out cross-border trade find it difficult to interpret the protocols and governments have not been overly helpful. A consultative meeting in Kampala recently organised by TradeMark East Africa in partnership with the iCON Enterprise Foundation, East African Business Council and East African Women in Business Platform (EAWiBP) and attracted several leading women entrepreneurs. In both their presentations, Rhona Serwadda a Commissioner at Ministry Of East Africa Affairs and Ruth Kihiu a Coordinator at EAWiBP echoed the need for interpretation of such information into easily understandable languages including vernaculars. Serwadda stated that this is the time for women to understand these protocols and for them to participate in the regional integration. Kihiu said East Africa is a potential market of 145 million people which provides a big opportunity for women in business if they know what to do. She said that 45% of the SME in the country are ran by women and are growing at an annual rate of 25 despite being managed informally. The minister also expressed discontent

ITS NOT EASY: Asiimwe (left) chats with a participant. over continued organizing of advocacy meeting at five star hotels instead of reaching out to the intended beneficiaries in area where they operate and are comfortable to have such deliberations. “That’s why they don’t want to come here, they even rarely get to know about these meetings, let’s have some of these meetings in Mpigi so that they get this information. By all means if we want to celebrate our role as women in business lets harness rural women,” the Minister said. Sseasoned businesswomen, Adyeri Omalla, of Delight Industries Limited reasoned that women in business are money and profit driven.

“

of growing prosperity in East Africa through trade, established a East African Women in Business Platform to position and catalyze the participation of women in EAC integration process. The platform’s key strategies are to increase effective participation of women in business in EAC integration processes, improve economic contribution of women in business in EAC Partner States, and increase progression of women-owned enterprises in EAC from informal to formal status. Allen Asiimwe, Director Trade Mark East Africa-Uganda, said the Platform has member organizations at the national level who together with other women associations address issues with different levels of success. Asiimwe however said the capacity of these organizations to adequately research, articulate and advocate on key policy issues affecting their engagement in EAC regional trade remains limited. Kyambadde pointed out the many difficulties women face in business, including outright discrimination. Deborah Kaddu Serwadda, the Regional Director iCON Enterprise Foundation encouraged all stakeholders to take advantage of the meeting as an initial step to interact with key trade policy makers in the region.

That’s why they don’t want to come here and rarely get to know

Adyeeri explained that they prefer to make money at their workplace rather than come to a five-star hotel for a workshop. TradeMark East Africa (TMEA) an organization funded by a range of development agencies with the aim

PHOTO BY BAZ WAISWA

LETTERS & PERSPECTIVE East African Business Week I February 17- 23, 2014

Are we ready for looming famine?

PERSPECTIVE

Image of the week

US against big dams

Editor, The situation in Northern Kenya is becoming alarming. News reports indicate that people are desperate for food and livestock are beginning to die off for lack of water. Some cattle-keepers have herded their animals into Uganda for relief. Depending on how hospitable the Ugandan brothers and sisters are, this is also a recipe for conflict. The Kenya government is currently trying to buy up as much maize as possible for distribution to the north. However, the weather people have been warning about this drought threat for sometime. What has been happening in the meantime you wonder? Why is it that we are never prepared? Regional governments have to think seriously about building more grain silos. Traditionally we have always had grannaries. It cannot be difficult to build national grannaries. In these days of climate change, we cannot be sure about anything. But one thing all governments must be sure of and that is food security. If not then you become a hostage to others who may not wish you well. Like for example donating GMO-based foodstuffs, even as you have not adequately prepared your people for this technology. Nor do you have the legislation to protect your agriculture sector against the fall-out.

BLOWN AWAY: Last week, the UK was hit by the worse weather ever in recent memory and climate change doubting politicians were put to task by the general public, to explain the floods and 100kph winds that swept people off their feet like this lady in central Manchester. Prime Minister David Cameron was forced to make a national apology and promised to do “whatever it takes” to help those affected which included thousands of people having to abandontheir homes as water levels rose to alrming levels.

Hotel grading cannot be underscored Editor, I have read with some frustration that Uganda has once again delayed the hotel grading exercise. It makes you wonder about our priorities. If we agreed much earlier that this is an important thing for our tourism sector, then why not get on with it and finish it! The usual story of lack of funds cannot always be true.

Joseph Njui Nairobi, Kenya

Why announce such plans when you do not have the cash to implement them? It would be better to keep quiet and not give interested people false hopes. I would not be surprised that some establishments may not want this exercise to happen in the first place. Many of our so-called ‘hotels’ are nothing more than hovels. I also hear some ‘hotel’ owners are asking for

money from government to help them meet the expected standards. This does not make sense to me. If you decide to go into the business of service delivery, it is not the government that told you too. The responsibility of looking after your premises is yours. Christopher Kato Kampala, Uganda

Reviving Uganda Airlines smacks of prestige not sense Editor, This may sound crude, but it makes a lot of sense to me. Those who are clamouring for reviving Uganda Airlines should pay for it out of their own pockets and not the tax payers. We have been down this road before. The economics of a national carrier now are even more complicated than when Uganda Airlines was struggling to get off the ground in the late 1990s. Even the Tanzanians are presently desperate for an investor to inject much needed money into ailing Air Tanzania. We have to learn to be realistic. In the old days, there was

much prestige and indeed it was required to have a national airline. But not anymore. Prestige can be very expensive. In the United States, once upon a time, Pan Am and TWA were giants no one could even imagine ever collapsing. But the two eventually did and are no more after deregulation. Agreed, it was nice to see the flying Crane at some airport, but the point is, how competitive will the revived Uganda Airlines be? Besides, there are far more important things we can do with the money Yusuf Tamale Kampala, Uganda

IFAD money can transform Rwandan farming Editor, The funds that were donated by the International Fund for Agricultural Development (IFAD) to rural farmers recently will make a big difference in improving productivity. Under the post-harvest

project our farmers will be able to gain more income, because waste will be reduced. I am also pleased to learn about the crop intensification program which mainly looks at land consolidation and fertilizers use. If Rwanda is to become com-

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

petitive we must adopt modern farmijng methods. The IFAD money will also go towards marketing support. Hence will be able to get storage facilities and know-how to handle our harvestsin a more organized way which will eventually help quality.

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

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

In the long run the IFAD project will boost such farmers to improve on their welfare plus that of their families and at the same time sustain Rwanda’s economic growth. Augustine Mugenzi Gatuna, Rwanda

nWASHINGTON, USA--In mid-January the United States legislature passed an annual appropriations bill that looks to have significant repercussions for the International Monetary Fund (IMF) and World Bank. Despite significant lobbying by the US Treasury and think tanks in Washington, the bill did not include language supporting IMF governance reforms agreed in 2010. The US legislature has singlehandedly stalled the implementation of the very small reforms that have already been agreed and thus also prevented talks continuing on another round of reforms. Douglas Rediker, a former US executive director at the IMF and now at think tank Peterson Institute of International Economics, described Congress’ action as “a big slap in the face of the IMF by the US at a time when the US is trying to re-establish its global leadership both in the organisation and more broadly”. In a far-reaching mandate, the legislature instructed the US representatives to “ensure that each such institution responds to the findings and recommendations of its accountability mechanisms by providing just compensation or other appropriate redress to individuals and communities that suffer violations of human rights.” It also spells out specific measures for communities affected by the Chixoy dam in Guatemala who after 20 years still have not received compensation for their lands and the residents of Boeung Kak lake in Cambodia some of whom have also not received compensation despite commitments by the Cambodian government and the Bank. The Bank has no mechanisms for providing compensation, and generally claims that responsibility for redress lies with its clients, be they countries or corporations. Astonishingly, the bill mandates US representatives at International Financial Institutions to vote against almost all forestry and hydropower projects. The law instructs them “to vote against any financing to support or promote the expansion of industrial scale logging or any other industrial scale extractive activity into areas that were primary/intact tropical forest as of December 30, 2013”. They also must “oppose any loan, grant, strategy or policy of such institution to support the construction of any large hydroelectric dam” as defined by the World Commission on Dams. According to David Pred of US-based NGO Inclusive Development, the Bank “will need to think twice, because the Bank’s largest shareholder has just made it the law of the land that the US will use its influence to ensure that these public financial institutions stop denying victims their right to an effective remedy.” “It clearly sends a strong message to the IFIs that efforts to pursue their goals of reducing poverty and encouraging economic growth must be consistent with effective safeguards,” Jolie Schwarz of Washington-based Bank Information Center said.

“

The bank has no system for providing compensation

Brettonwoodsproject

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

BRIEFLY Ethiopia chooses DRC for new hub nADDIS ABABA Ethiopian Airlines Enterprise said it will locate its fourth hub in the Democratic Republic of Congo as Africa’s second carrier seeks to tap Chinese economic links and fill long-haul flights to destinations such as Brazil. Ethiopian Airlines is negotiating with the Congolese government and could agree terms for a startup carrier based in Kinshasa later this year, Chief Executive Officer Tewolde GebreMariam said today in an interview in London.

Precision joins Air Uganda for code nDAR ES SALAAM Air Uganda and Tanzania’s Precision Air have code sharing arrangement. Air Uganda marketing executive Jennifer Musiime said: “With this partnership, we are certain that business and tourism will grow between our respective countries.” Precision Commercial Director Patrick Ndekana said: “This partnership offers our customers a wider range of choices when planning for their trip. Now you can book Precision Air flight through Air Uganda, or vice versa.”

Airline CEO explains African route difficulties nLONDON Africa is not ready for airlines such as Fastjet, the brainchild of EasyJet founder Stelios Haji-Ioannou. Ethiopian Airlines chief executive Tewolde Gebremariam told the Aviation Club last week, “We have a different view of the low-cost model in Africa because cross-border traffic in Africa is fragmented. Low-cost carriers are based on utilising aircraft 10 times a day, then unit costs come down. It is very difficult to do that in Africa. Point to point will be challenging on the continent (because) 60% of market segments in Africa have less than 50 passengers per day,” he said.

TRANSPORT

East African Business Week I February 17 - 23, 2014

Mombasa sets new container record BY PAUL TENTENA nMOMBASA, Kenya-- The Mombasa Port Container Terminal has once again set a new record in cargo handling performance, registering 834 container lifts (moves) in a single shift of 8 hours. According to a statement sent to East African Business Week from Mombasa, confirmed Operations reports indicate that, Mv. Maersk Cairo, the widest ever container vessel to call at the port set the new record at the recently commissioned berth No.19. The presidents of Kenya, Uganda and Rwanda have opened a new dock in Kenya’s Mombasa port which has received a $66 million makeover. Huge amounts of trade has flowed through the shipping hub but it has suffered in recent years from congestion, delays and corruption. The special WAF MAX class vessel designed for African Sea ports was on her maiden call and is 37.5 meters wide with a draft of 13 meters. She has a capacity of 4350 TEUs. The ship which worked with three ships to shore gantry cranes registered a performance of 364 moves to also break the one crane performance of 354 moves set by MSC Namibia on September 19, 2013. The new record by the fairly new ship continued at the expiry of the initial 24hrs after commencing operations when she achieved 1569 moves. This record wiped out an earlier record performance of 1556 moves set by a sister vessel Mv. Maersk Buxlink in September 2012. Mv. Maersk Cairo with a length overall of 249 meters was piloted into the Kilindini channel by the General Manager, Operations Capt. Twalib Khamis. The vessel did a total of 2973 moves during her two day stay at the port. She was earlier received in a ceremony graced by the KPA

GO: Kenyatta (right) hosted Museveni and Kagame last August.

$66 million

Cost of port makeover

Mv Maersk Cairo

Widest vessel to date

4350 TEUs

Number of containers

Chairman Danson Mungatana, the Managing Director Gichiri Ndua and key stakeholders. During the brief ceremony, the master of the vessel Capt. Christopher Hall acknowledged the special reception accorded to his vessel. He was extremely impressed with the initial performance and predicted that their expected four day stay at the port would be shortened by half and indeed it was. Following the breaking of the new record, the management has congratulated the operators for their

dedication on the entire operation cycle and the engineers for providing well-oiled machinery that didn’t break down when handling the vessel. The management attributed the performance to also non interruption of electricity saving the operations from the usual surges and blackouts. Sudi Mwasinago, the Head of Container Operations commended staff for upholding team work spirit, effective yard and ship planning that ensured fluidity at the busy container terminal. He said the good performance was also as a result of the twin lift 20 foot containers by the new Ship-to-Shore cranes. He added that the recently implemented traffic management regulations at the container thad improved receipt/ delivery operations.

Uganda pays out $30m for roads BY SAMUEL NABWIISO nKAMPALA, Uganda The government through the Uganda Roads Funds recently released funds towards the up-grading of national roads across the country According to a press release from URF 75,186,928,066 about $30.7 million has been released in the third quitter of the financial year 2013/2014 to fund designated roads agencies across the country to upgrade the country’s road network Engineer Dr Micheal Odongo, the URF Executive Director said in the statement that the funds will be distributed through Roads designated agencies like Uganda National Roads Authority ( UNRA) Kampala Capital City Authority (KCCA) Districts Municipalities Town councils. Money has been set aside for emergency/special interventions to carry out routine maintenance on public roads across the country Odongo said UNRA will take the biggest share of the money about $22 million followed by KCCA. However he also threatened to withdraw the allocation of funds to some local governments across the country for mismanaging of the money. “The URF strongly cautions agencies that have continued to abuse roads maintenance funds and its attention procedures to desist with or else funding will be withheld as provided for in Uganda Road fund Act 2008” Engineer Odongo cautioned. He asked for strict accounting and quality work in the awarded contracts.

Tz travel firm launched online link BY PATRICK KISEMBO

HAPPY: Within hours all your travel needs are catered for.

nDAR ES SALAAM, Tanzania,Travelstart Tanzania, Africa’s fastest growing global travel search site has launched the first website in Tanzania to offer mobisite bookings via mobile devices. Speaking to East African Business Week last week in Dar es Salaam, the company’s Country Manager, Sadiq Walji said the mobile website, detects and adjusts to different mobile device screens and allows customers to search, book and pay for domestic and international flights. He said booking confirmation is received instantly via email. Walji said research by the Tanzania

Communication Regulatory Authority (TCRA) has indicated that more than 80% of the country’s population has access to at least one mobile network, and over 60% own a mobile device. “We see these statistics as a major motivator for online businesses in the country. Mobile connectivity in Tanzania accounts for a significant portion of Internet users who solely connect using their cellphones and tablet computers,” Walji said. He said the development represents a vast, untapped market well within the company’s potential customer base. He said the mobile version of Travelstart Tanzania Limited is set to improve their customers’ shopping

experience as they seek real-time travel information and flight prices on the go. The online travel agency reported a 464% increase in mobile traffic to Travelstart.co.tz between 2012 and 2013 which further indicated the need for a mobi-site. It’s an effective travel agent in your pocket and you don’t need the latest smartphone device to use the mobile version of the website. It’s an indispensable tool for travelers everywhere who are keen to search for flights on the go, and its saves time and money,” Walji said. Since opening in South Africa in 2006, Travelstart has expanded to include emerging markets throughout Africa.

TENDERS

East African Business Week I Febrauary 17 - 23 , 2014

UWA wins case against residents of Mpokya nKAMPALA, Uganda-ganda Wildlife Authority (UWA) has won a Constitutional Petition in the case of Tukamuhebwa George and 2720 others in the Court of Appeal sitting as a Constitutional court. The petitioners were residents of Mpokya subcounty in Kabarole District who sued UWA and Attorney General (AG) for allegedly illegally and unlawfully evicting them from their land which was situate in a Game Reserve and had their homes and schools destroyed. They alleged that as a result of the eviction, the petitioners were deprived of their right to education, livelihood and family. That these actions by UWA were illegal and contravened their rights under the 1995 Constitution. They thus petitioned the constitutional court for redress. When the petition came

up for hearing, the respondents (UWA and AG) raised preliminary objections on points of law which included the following: 1. That the petition was incompetent because it does not raise a question for constitutional interpretation 2. The matter had already been adjudicated upon (heard) by the High Court and it dismissed it on a point of law 3. That UWA was wrongly sued because it was not in law in existence on or about the 31st of March 1992 when the alleged evictions were carried out since it was created by section 4 of the Uganda Wildlife Act 1996. That the provision of Uganda Wildlife Statute where all liabilities and assets of the Game Department and the Uganda National Parks Board of Trustees were vested in the Uganda Wildlife Authority was repealed during the revision of the 2000 Laws

of Uganda. This therefore means that the issue of UWA inheriting those liabilities had been settled and the petitioners could not rely on that provision. Court in its wisdom upheld all the three preliminary objections raised and dismissed the petition in favor of UWA and Government. UWA was ably represented by the DDLCA Mr. Chemonges Sabilla Mongea and the AG was represented by Ms. Maureen Ijanga whereas the Petitioners were represented by Mr. Godfrey Lule. The Coram constituted of the following Honorable Justices of the Court of Appeal: Hon Mr. Justice Remmy Kasule Hon Mr. Justice Eldad Mwangusya Hon Mr. Justice Faith Mwondah Hon Mr. Justice Kenneth Kakuru Hon Mr. Justice Geofrey Kiryabwiire

International Tender Notice No 67/W/INT/RSSB/2013-2014 TITLE: CONSTRUCTION OF INTERIORS FIT OUT FOR RSSB HEADQUARTER BUILDING LOCATED AT KIYOVU/KIGALI. 1 . R wanda S ocial S ecurity Board (R S S B), (hereinaf ter called ‘ ’C lient” ) wishes to hire an independent F irm to carry out the Construction of interiors fit out for RSS Head office located at iyo u igali. 2 . R wanda S ocial S ecurity Board hereby invites all interested companies, national and international, to submit their bids for the Construction of interiors fit out for RSSB Head office located at Kiyovu Kigali. 3 . I nterested bidders may obtain the tender document at RSSB Office located at Kiyovu, Nyarugenge, P.O Box 2 5 0 / 6 6 5 5 K igali- R wanda, Tel. + 5 9 8 4 0 0 F ax : + 5 8 4 4 4 5 . 4 . A compulsory site visit f or bidders is scheduled f or 2 7 F ebruary 2014 at 10.00 am local time and will be conducted by C lient representatives. 5 . The submission of bids, well printed, properly bound and sealed, in 4 copies of each one is marked ORIGINAL is scheduled not later than 0 3 rd of April 2014 at 2:00 pm at the reception of R S S B headq uarters, and the outer envelope should be marked as f ollows:

KIYOVU/KIGALI “TO OPEN IN PUBLIC SESSION” 6 . The bid must be accompanied by a bid security of FRW 20,000,000. (Twenty Millions Rwandan Francs) provided by a reputable bank or an insurance company as per attached sample f orm. 7 . The opening of the bids will take place in public in the presence of bidders’ representatives who chose to attend on the same day 0 3 rd April 2014 at 2.30 pm local time in meeting room (10th oor). 8 . F urther inf ormation may be obtained f rom procurement unit at the R wanda S ocial S ecurity Board headq uarters at Kiyovu Kigali; th oor. 9 . The bids will remain valid f or 9 0 (N inety) calendar days f rom the date of the bids opening. Badly presented and late bids shall be rej ected. D one at K igali on 1 4 th F ebruary 2 0 1 4 Y ours sincerely.

THE DIRECTOR GENERAL RWANDA SOCIAL SECURITY BOARD P.O BOX 250 or 6655 KIGALI TEL. 0252 598400, Fax. +250252584445 Email: info@rssb.rw/procurement@rssb.rw TITLE: PROPOSALS FOR THE CONSTRUCTION OF INTERIORS FIT OUT FOR RSSB HEADQUARTER BUILDING AT

Plot 103 Ubumwe Cell, African Union Boulevard, • Kiyovu, Nyarugenge • P.O Box 250/6655, Kigali Tel: +598400 Fax:+250 584445 • E-mail: info@rssb.rw • web: www.rssb.rw

Uganda National Roads Authority Plot 5 Lourdel Road, Nakasero P.O.BOX 28487, Kampala, Uganda Request for Proposals CONSULTANCY SERVICES FOR SUPERVISION OF PERIODIC MAINTENANCE WORKS OF 44 SELECTED NATIONAL ROADS – PHASE II (8 LOTS) Procurement Reference Number: UNRA/SERVICES/2013-14/00027/02/01-08 1 . The Uganda National Roads Authority (UNRA) has f unds within the P rocuring and D isposing E ntity’s budget to be used f or the acq uisition of Consultancy Services for the Supervision of Periodic Maintenance Works of 44 Selected National Roads - Phase II (8 Lots). Lot No.

Procurement Ref No.

Road Name

0 1

U N R A / S ervices/ 2 0 1 3 - 1 4 / 0 0 0 2 7 / 0 2 / 0 1

Soroti-Gweri-Magoro

0 2

0 3

0 4

U N R A / S ervices / 2 0 1 3 -1 4 /0 0 0 2 7 /0 2 /0 2

U N R A / S ervices/ 2 0 1 3 - 1 4 / 0 0 0 2 7 / 0 2 / 0 3

U N R A / S ervices/ 2 0 1 3 - 1 4 / 0 0 0 2 7 / 0 2 / 0 4

Station

Scope of Works

5 4

R egravelling

S oroti

Length (Km)

0 5

U N R A / S ervices/ 2 0 1 3 - 1 4 / 0 0 0 2 7 / 0 2 / 0 5

A pala- A loi- A lebtong

L ira

3 1

A loi- A baka- BataD okolo

4 5

A duku- Teboke- L oro

3 5

A pac- C egere- Teboke K itgum- K alongoP atongo

2 8 K itgum

7 7

M agoro- N gariam

2 7

A muria- A mucuK apelebyong

3 6

P atongo- L ukee Gulu

1 0 0

A muria- O balangaA lito

3 9

A ber- A nyeke- N gaiA romo- A were O bongi- K ulikulinga

M oyo

4 5

A rapai- A muria

3 0

K alaki- L walaK aberamaido

2 9

K aberamaido- D okolo

1 6

S erere- K asiloK agwara

3 8

0 6

K aitabawala- Busota

J inj a

K apenguria- K woti

M bale

5 8 1 5

U N R A / S ervices/ 2 0 1 3 - 1 4 / 0 0 0 2 7 / 0 2 / 0 6

2 0

A dj umani- S hinyanya

3 3

O z aipi- Tete- N imule 0 7

U N R A / S ervices/ 2 0 1 3 - 1 4 / 0 0 0 2 7 / 0 2 / 0 7

K yabakuz a- K yoj j aM atete- K aliiro

7 0

Zirobwe- L waj j aliK abimbiri

L uwero

2 2

K asambya- N abakaz i

M ubende

2 4

M pigi

2 0

Bugusege- Butez a

K abasanda- K akinduZigoti

H oima

K atasiha- Bugambe Tea Estate Gate

7 1 6

Waiga- BuganaN gwedo

M asindi

2 2

N kenda- BugoyeN yakalingij o

K asese

1 8

R washamaireK yaf ora- K iyenj e

K abale

1 9

M uhanga- K yogoK amwez i

2 0

K atobo- BugangariBwambara

4 4

K anungu- R wegyeyoK abaranga

3 9

K ihihi- N yamiramaK ikongi- Burama

2 6

K atuna- R ubayaM uko

6 7

R egravelling 0 8

U N R A / S ervices/ 2 0 1 3 - 1 4 / 0 0 0 2 7 / 0 2 / 0 8

R egravelling

GRAND TOTAL

L ukolo- Bunj ako

1 3

K ayabwe- N koz iN gando- K abulasoke

4 5

R wenj az a- K abuj ogera

R egravelling

5 8

Budaka- K aderunaButebo

M airirwe- Bugambe

R egravelling

3 5 M asaka

M biriz i- M ateteS embabule- K atonga R egravelling

R egravelling

M barara

3 4

K abuj ogera- K agongo

R uhoko- K agongo

K yankanda- BitsyaR uhoko and A ccess

5 6

N yakiraguj u- Bugamba- K itwe

5 3

R egravelling

1,508

2 . The E ntity invites sealed proposals f rom eligible bidders f or the provision of Consultancy Services for the Supervision of Periodic Maintenance Works of 44 Selected National Roads Phase II (8 Lots). The roads in the lots totaling 1 ,5 0 8 km are detailed in the table below. 3 . Bidding will be conducted in accordance with the O pen D omestic Bidding procedures contained in P ublic P rocurement and D isposal of P ublic A ssets A ct 2 0 0 3 , and are open to all bidders f rom eligible source countries. 4 . I nterested eligible bidders may obtain f urther inf ormation and inspect the bidding documents at the address

given below at 8 (a) f rom 9 :0 0 am to 4 :0 0 pm (L ocal time) during working days (M ondays to F ridays). 5 . R eq uest f or P roposal documents in E nglish may be purchased by interested bidders on the submission of a written application to the address below in N o. 8 (b) and upon payment of a non- ref undable f ee of Ugx 100,000/- (Uganda Shillings One Hundred thousand only) per lot. The method of payment will be cash payable to the UNRA Cashier on 4th Floor, Room No. 4B1. I t is upon the presentation of a satisf actory evidence of payment that the bidder will be issued the bidding documents. . There shall be a pre-bid meeting at NRA Head Ofﬁce, Plot 5 Lourdel Road, Nakasero, Ground oor, PD Boardroom, Room No. GA4, at 11:00am on the dates indicated in the proposed schedule in this notice. 7 . P roposals must be delivered to the address below at 8 (c) at or bef ore 11:00am on 19th March 2014. L ate proposals shall be rej ected. Technical proposals will be opened in the presence of the bidders’ representatives who choose to attend at the address below in N o. 8 (d) at 11:30am on 19th March 2014. 8 . (a) Bid documents may be inspected f rom: Procurement and Disposal Unit, Uganda National Roads Authority, Ground Floor, Room No. GA3 Plot 5, Lourdel Road, Nakasero, Kampala, Uganda E-mail: procurement@unra.go.ug (b) Bid documents will be issued f rom: Same as in No. 8(a) above (c) A ddress bids must be delivered to: Same as in No. 8(a) above (d) A ddress of bid opening: Same as 8(a) above but in PD Boardroom No. GA4. 9 . The priced proposals f or those which will be technically responsive will be opened in the presence of the bidders’ representatives who choose to attend at the time, date and at the address to be advised by the E mployer af ter the evaluation of the technical proposals. 1 0 . E ligible bidders may submit proposals f or a max imum of 2 (two) lots (contracts). H owever, to q ualif y f or more than one lot (contract) such a bidder must meet aggregate req uirements and demonstrate availability of separate resources f or the two lots (contracts) (i. e. E x perience and P ersonnel). 1 1 . The planned procurement schedule (subj ect to changes) is as f ollows:

Activity

Date

P ublish Bid N otice

1 0 th F ebruary 2 0 1 4

P re- bid meeting where applicable

2 6 th F ebruary 2 0 1 4

Bid closing date

1 9 th M arch 2 0 1 4

E valuation process

2 0 th M arch to 5 th M ay 2 0 1 4

D isplay and communication of best evaluated bidder notice

1 9 th M ay 2 0 1 4

C ontract award and signature

1 3 th J une 2 0 1 4

EXECUTIVE DIRECTOR

FINANCE

East African Business Week I February 17- 23, 2014

Tanzania bank to open new branches

BRIEFLY Uganda working on mobile money law nKAMPALA The government is drafting a law that will regulate the mobile money and internet banking business. Preparatory work includes identifying gaps in the legal framework with reference to the existing legal regimes that are relevant to mobile money and internet banking with view of bridging gaps. Also exploring solutions and proposals aimed at addressing the current challenges such as consumer protection, curbing fraud, system vulnerability, privacy and allocation of liability.

Tanzania house lending shows growth nDAR ES SALAAM By December 2013, total lending by banking sector for the purposes of residential housing was $96.8 million representing an annual growth of 46% “Total number of mortgage loans also grew rapidly, from 1,889 at the beginning of 2013 to 2,784 by end of December 2013, being an increase of 47%,” the Bank of Tanzania reported last week. It was pointed out that a major factor that led to the increase included a favorable interest rate environment during the year.

Rwanda committed to SME support nKIGALI John Rwangombwa, the National Bank of Rwanda Governor, has said much of their focus now is supporting Small Medium Enterprises (SME). However many do not have security or a poor credit history. According to the biannual Monetary Policy and Financial Stability Statement released last week by BNR Jnearly 6000 loan applications were rejected-a 7.5 per cent increase from 4,865 turned down in 2012. Rwangombwa said that some SME operators waste the money due to lack of priorities.

BY PATRICK KISEMBO

FASTER CONNECTIVITY: Customers in the region will now experience a faster and more efficient service.

Equity upgrades its system across region BY HUMPHREY LILOBA nNAIROBI, Kenya --Equity Bank customers across East Africa can transact business seamlessly and conveniently after the bank successfully upgraded its core banking system. Finacle 10 will help the bank roll out offerings faster, explore new lines of business and deliver a superior banking experience to its customers. The bank, currently ranked as the fastest growing and the champion of financial inclusion especially among the low-income earners, has over 8.7 million customers in Kenya and the rest in Uganda, Tanzania, Rwanda and South Sudan. Courtesy of the upgraded system, customers across borders will now experience a faster and more efficient one-stop payment gateway after the bank upgraded to the Way4 payment switch that allows advanced shopping and mobile payments. The move is expected to provide solutions for payments

8,8 million

Customers across region

12 months

Installation period

2 hours

Reduced working hours

of goods and services on the spot, anywhere and in practically any situation. James Mwangi, Equity Bank Group chief executive officer, told a media briefing in Nairobi last week that the new banking platform is the fastest globally and most scalable engineering system. “A vast amount of data will be generated daily since the number of Equity bank account holders is also expected to rise,” he said when he announced the group’s upgrading efforts. Mwangi said the system calls for an enhanced way of transacting business for the benefit of custom-

ers in the region. Equity Bank started as a building society in Kenya before it grew into a deposit taking micro-finance institution and eventually a bank. It one of the most celebrated and awarded Kenyan home-grown financial insititutions. Venkatramana Gosavi, Vice President and Regional Head, Finacle, Infosys said: “Africa is experiencing rapid economic growth. It is imperative that banks take advantage of modern technology to realise their true potential in this dynamically growing market. We are privileged to have been a part of the success story that Equity Bank has scripted over the past decade. Our journey with Equity Bank is a great example of how financial institutions can accelerate growth and delight customers with the right technology foundation.” The new solution has reduced end-of-day operations by over two hours. The complex, five- country implementation was completed in a less than 12 months.

nDAR ES SALAAM, Tanzania --The CRDB Bank is planning to open branches in all regions in the country, the management has revealed. The bank currently has over 104 branches and agencies including 13 mobile branches countrywide with over 530 ATMs. Last year, CRDB opened a branch in Bujumbura, Burundi, the first time the Dar es Salaam listed financial institution crossed national borders. Speaking to reporters in Arusha late June, the CRDB Bank Managing Director, Dr Charles Kimei said “Our target is to grow the bank into a financial giant in East and Central Africa.’’ Last week at the bank’s party to celebrate the achievements made in 2013, Dr Kimei said they are to start offering loans to Savings and Credit Cooperatives (Saccos) in the country. This is intended to increase financial inclusion by reaching more people in across the country. He said their aim was to reach as many Tanzanians as possible including the low and middle income people who have not been receiving banking services. “We will make sure the plan goes in line with offering various services to the majority of Tanzanians, especially in rural areas in order to increase the bank’s social responsibility and rural banking market,” Dr Kimei told guests. Apart from that, the bank has launched a Fahari Huduma Agencies Services that serves the majority of Tanzanians especially those not accessing banking services.

KCB Uganda touts children savings BY PAUL TENTENA

GARTEFUL: Odongo (right) hands out the first prizes.

nKAMPALA, Uganda- KCB Uganda has revamped its existing saving product targeting the young generation. This is in a bid to encourage the saving habit at an early age,. The ‘Cub Account’ will now have added benefits such as an education insurance cover, free standing orders and free deposits and withdrawals, in addition to the low minimum opening balance meant to encourage parents and guardians build a long-term savings plan for their children. As part of the revamp, over 45 children will win school fees each term

throughout the year in a new school fees promotion. Speaking during the launch of the Cub Account marketing campaign, KCB Uganda Managing Director, Albert Odongo, said the account has been designed to nurture saving money. “Not only will this product allow parents and guardians to work with their children in making savings, it will in a very practical way teach children about the importance of savings and investing for the future and interact with financial institutions at an early age,” he said. Uganda’s unbanked population is estimated to be at 27 million out of a population of 34 million. The cost of banking services, geo-

graphical remoteness of banks and the lack of familiarity with banking services and products are major causes of this financial exclusion. The move by KCB signals the growing prominence of junior savings accounts that is sending banks back to the drawing board. The Cub account is targeting children from birth to 18 years. “When you sign up your child fmor this account, he/she will become eligible for the KCB Cub Education Plan which will ensure that your child’s school fees continues to be paid in case of death or permanent injury of the parents or guardian until the child finishes primary school,” Odongo said.

TENDERS

East African Business Week I February 17 - 23, 2014

THE UNITED REPUBLIC OF TANZANIA

UNITED REPUBLIC OF TANZANIA MINISTRY OF TRANSPORT

TENDER No. AE/018/2013-14/HQ/C/04 FOR THE PROVISION OF INDIVIDUAL CONSULTANCY SERVICES FOR IMPLEMENTATION OF A SYSTEM FOR CHECKING AND MONITORING PROCUREMENT ACTIVITIES IN TANZANIA REQUEST FOR EXPRESSION OF INTEREST AND DETAILED CVs . T is e i Pro uremen No i e follows e eneral Pro uremen No i e w i a eare in e aily News of on ay 2n e ember 20 ssue No. 0985 an e Tan ania Pro uremen ournal ol issue No. 8 of e ember 20 . 2. T e overnmen of e ni e e ubli of Tan ania roug e inis ry of Finan e as re eive a loan from e fri an evelo men Fun owar s e os of ns iu ional u or Pro e for oo overnan e , an i in en s o a ly ar of e ro ee s of is loan o over eligible aymen s un er e on ra for Provision of onsul an y ervi es for m lemen a ion of a ys em for e ing an oni oring Pro uremen ivi ies. . T e Publi Pro uremen egula ory u ori y PP now invi es eligible in ivi ual onsul an s o in i a e eir in eres in rovi ing e servi es w i in lu e bu no limi e o visi e Pro uring En i ies an assess e im lemen a ion of e ys em an e use of moni oring e lis s an re or ing ools in all a egories of ro uremen for e nan ial year 20 / 4. T is is o e ermine w e er e sys em is being im lemen e as re uire , an a e ro uremen is arrie ou a ieve e ex e e e onomy an ef ien y alue for oney for e allo a e esour es . ore e ails are on aine in e TO . 4. n eres e in ivi ual onsul an s mus rovi e informa ion in i a ing a ey are uali e o erform e servi es by submi ing u a e s, es ri ion of similar assignmen s, ex erien e in similar on i ions an relevan s ills. lying in ivi ual onsul an s s all no submi nan ial ro osals. 5. n eres in ivi ual onsul an s are re ues e o submi wri en Ex ression of n eres , one original e aile urri ulum i ae an ree o ies of e eaile in wri ing by 0.00 ours lo al ime on e nes ay 26 February 20 4. T e Ex ression of n eres an e aile s all be en lose in a single envelo e an mar e “Detailed CV for Provision of Consultancy Services for Implementation of the System for Checking and Monitoring (SCM) Procurement Activities in Tanzania” an s all be submi e o e e re ary, PP Ten er Boar , PPF Tower, ing 80 , un ion of O io an ar en venue, P. O. Box 49, ar es alaam. 6. T e o ening of s s all a e la e imme ia ely af er e ea line for submission, a e a ress in i a e un er ara. 5 above. lying in ivi ual onsul an s are invi e o a en e o ening eremony. .

onsul an will be sele e in a or an e wi e ro e ures se ou in e frian evelo men Ban s ules an Pro e ure for e se of onsul an s.

s s all be evalua e on e basis of e ri eria in i a e in e Terms of eferen e. T e u ori y s all sele all in ivi ual onsul an s w o will s ore above e minimum ass mar of 5 . T e on ra s all be signe before s ar ing e assignmen owever, engagemen s all be on all basis e en ing on e availabili y of e onsul an a e ime of all o erform e servi e.

9. ny re ues for lari a ion wi regar s o is assignmen s all be a resse o e un ersigne . T e lien s all res on o lari a ions re eive no less an one wee before e ea line for submission. 0.Faxe , Emaile an la e submi e ex ression of in eres s all no be a e e for evalua ion irres e ive of e ir ums an e. T e ief Exe u ive Of er, Publi Pro uremen egula ory u ori y, PPF Tower, 8 Floor, ing 80 , P. O. Box 49, ar es alaam. Tel: +255 22 2 2 2 6/ Fax: +255 22 2 2 2 8 Email: eo@ ra.go.

CREDIT NO: 4724-TZ Invitation for Bids NO. ME/028/2013/14/HQ/MDU/TSSP/G/02 For THE SUPPLY OF FWD STATION WAGON VEHICLE (5 DOORS) ONE UNIT Date: 07/02/2014

.T e overnmen of Tan ania as re eive fun s from e orl Ban Trans or e or u or Pro e T P for e o era ion of e inis ry of Trans or uring e nan ial year 20 /20 4. is in en e a ar of e ro ee s of e fun will be use o over eligible aymen un er e on ra for T E PP OF F T T ON ON E E 5 OO ONE N T w i is invi a ion for uo a ion is issue . 2.T e N T OF T N PO T now invi es seale bi s from eligible u liers of F T T ON ON E E 5 OO ONE N T. .Bi ing will be on u e roug e NATIONAL COMPETITIVE BIDDING ro e ures s e i e in e Publi Pro uremen oo s, or s, Non onsul an ervi e an is osal of Publi sse s by Tener egula ions, 2005 overnmen No i e No. 9 an is o en o all Bi ers as e ne in e egula ions. 4. n eres e eligible Bi ers may ob ain fur er informa ion from an ins e e Bi ing o umen s a e of e of e N T OF T N PO T, P OT NO. 220 -5/ 2 P B T EET T N OT O E F T F OO OO NO: 24 P. O. BO 9 44 E from 08:00 5:00 on on ays o Fri ays in lusive ex e on ubli oli ays. 5. om le e se of Bi ing o umen s in EN an a i ional se s may be ur ase by in eres e Bi ers on e submission of a wri en a li a ion o e a ress given un er aragra 5 above an u on aymen of a non-refun able fee of 00,000/ T . Paymen s oul ei er be by as , Ban er s raf , or Ban er s e ue, ayable o N T OF T N PO T. 6. ll bi s mus be a om anie by a bi se uring e lara ion in ma rovi e in e Bi ing o umen s.

e for-

. ll bi s in one original lus 2 T O o ies re uire, ro erly lle in, an en lose in lain envelo es mus be elivere o e a ress N T OF T N PO T, P OT NO. 220 -5/ 2 P B T EET T N OT O E F T F OO OO NO: 24 P.O. BO 9 44 E a or before 0:00 a.m. a e: 0 ar , 20 4. Bi s will be o ene rom ly ereaf er in ubli an in e resen e of Bi ers re resen a ives w o oose o a en in e o ening a e N T OF T N PO T, P OT NO. 220 -5/ 2 P B T EET T N OT O E F T F OO ONFE EN E OO , P.O. BO 9 44 E 8. a e Bi s, Por ion of Bi s, Ele roni Bi s, Bi s no re eive , Bi s no o ene an no rea ou in ubli a e bi o ening eremony s all no be a e e for evalua ion irres e ive of e ir ums an es. PERMANENT SECRETARY MINISTRY OF TRANSPORT; P. O. BOX9144, DSM

NEWS

East African Business Week I February 17 - 23, 2014

Kampala to host insurers

BRIEFLY Authorities seize fake tapes of Wall Street

BY PAUL TENTENA

nNAIROBI--Dozens of pirate DVD traders have been arrested in Kenya for selling banned copies of The Wolf of Wall Street, Kenya’s film censors told the BBC last week. Kenya Film Classification Board banned the Oscar-nominated film in January for its “extreme scenes of nudity, sex, debauchery, hedonism and cursing”. But many Kenyans have already atched it on pirated copies sold in small DVD shops for about $0.57. The new Martin Scorsese film has been heavily censored in several countries around the world.

Grain brokers meet in Nairobi nNAIROBI -- East Africa Exchange in partnership with the Eastern Africa Grain Council hosted a stakeholder engagement meeting entitled ‘Building Trade’ in Nairobi, last week that took place at the Stanley Sarova Hotel. It brought together all the leading grain traders so that the newly established regional commodity exchange could be introduced to the Kenyan market During the half day session, EAX executives shared electronic trading knowledge, including presentations on auctions, spot trading, forwards and futures.

Tigo in banking deal with NMB nDAR ES SALAAM -- Around 1,000,000 customers registered with Tanzania’s NMB Mobile can now useTigoPesa agents to deposit or transfer directly into their bank accounts at any time. This is the latest deal worked between TIGO and NMB Bank. There are more than 20,000 active TigoPesa agents in Tanzania. Tigo’s Ruan Swanepoel said, “Our plan is to integrate our mobile financial services with other sectors of the economy in the country so that at the end of the day bank account holders will no longer need to go to a branch to deposit or withdraw funds.”

PERISHABLE: Exporters of fresh produce to South Sudan had to seek alternative markets very quickly.

Not enough cold storage in Uganda BY SAM NABWIISO

nKAMPALA, Uganda--the agribusiness community, including horticulture farmers want the government to join the private sector to construct cold rooms across the country. They told East African Business Week that their business are faced with the inadequate standard storage infrastructures facilities. “In Uganda the production of horticulture produce is good, because of the conducive climate. However if there’s is a huge supply of produce both farmers and the buyers are cheated since the products are perishable. Many tend to sell it off before the produce it starts going bad. However if there is such facilities many farmers can store them in the cold rooms as they wait for the market” Joseph Mutasa, agri-business man said. A cold room is an insulated enclosure that is fitted with refrigeration equipment. It maintains a set temperature above 0°C.

Items like milk, fruits, vegetables and flowers require cold rooms Whenever the supply chain is disrupted, like when South Sudan broke out into violent clashes, perishable goods have to be sold off at a loss. “Many Ugandan farmers have picked interest in the growing of horticulture related crops like tomatoes and passion fruits on a large scale. But the challenge has been accessing a good market and storage for the produce,” Hakim Baliraine the chairperson of The Eastern and Southern Africa Small Scale Farmers Forum (ESAFFUganda) said. Hsaid improving the infrastructure in the horticulture sector will improve the farmers earnings from the sub-sector. Ronald Mutende, a tomato farmer in Mbale, Eastern Uganda said their business becomes very stressful during the dry season. “You cannot keep boxes of tomatoes during dry season like now that is why we offer our products at

take way price because you cannot store the produce for long period since they ripen easily that is why we need the temperature cooling facilities like the cold room such that our business are protected from the changing environment in the country. The government should establish such facilities in all the region in the country” he said. Sources at the Ministry of Agriculture Animal Husbandry and Fisheries revealed to Business Week said that it’s the commercial farmers who are trying to come up with their private cold rooms especially in flower culture and dairy sector. “With those two sectors there has been some development. There are many milk cooler centers in western Uganda for the storage of milk and cold room for the flowering sector at the Entebbe Airport, but if the private sector people wants to venture in establishing cold rooms that opportunity is there for such investor in the agriculture sector,” he said.

nKAMPALA, Uganda--Kampala city will host an international insurance conference aimed at furthering professionalism with in the sector. The conference will be hosted by the Insurance Institute of Uganda (IIU) is on 28th February 2014 at Speke Resort Munyonyo. It is themed ‘Insurance, The Rise of a New Dawn - Managing Emerging Risks in a developing economy.’ According to the Chairman of the Insurance Institute of Uganda Governing Council Geoffrey Kihuguru, this one-day international conference is part of IIU’s 50 year celebrations. It is expected to attract over 150 participants from across the East African Community countries of Uganda, Kenya, Tanzania, Rwanda, Burundi and South Sudan. According to Kihuguru, representation will also come from various insurance institutes that partner with IIU like South Africa, Zimbabwe, Malawi, and the Chartered Insurance Institute of London. He said the insurance players and experts will discuss diverse strategies on how to manage the emerging risks in the insurance sector and beyond. “With the rampant shortage of professionally qualified manpower in Uganda’s insurance industry coupled with numerous reports of lack of integrity, we believe that this year’s international conference will go a long way in delivering a more innovative, efficient, excellent and up-to-date insurance sector,” Kihuguru said. The conference will also create a platform for the insurance industry players to network and dialogue on how they can better tap into various opportunities.

Access to credit ranks first as regional handicap nLONDON, United Kingdom--The Regus research, canvassing over 26,000 business managers and owners in 90 countries, confirms that nimble and flexible East African entrepreneurs regard lack of access to credit (86%) as the biggest deterrent to setting up a business today. Red tape (70%), lack of government support (57%) and market domination by large corporations (57%) followed. Over two fifths of East African entrepreneurs also cited the state of the economy as a serious hindrance. Commenting on the findings, Joanne Bushell, Vice President Africa for Regus says: “Thank goodness for the Unstoppable Entrepreneur! Who knows what state the economy would be in if they decided to play safe and downsize like a lot of their larger and arguably better resourced competitors. “The challenges they face are not new, but they are clearly saying that little impact has been felt from state support initiatives, despite the best efforts of government,” she said.

Toshi Kalema, Consultant for Zinger Solutions, an IT Training and Consultancy Company with a Regus virtual office in Kampala, Uganda said “I agree, official mechanisms have not done anything much for my business. But if you want to be a successful entrepreneur, you soon find that nothing comes easily. It’s a white knuckle ride and you have to have nerves of steel. “That’s why it’s usually the entrepreneurial community that generates growth out of an economic downturn, while the big boys run for cover. I just don’t understand why government doesn’t recognise this and change its focus to more evenly pay attention to SMEs. We generate around half the nation’s wealth, but we get a tiny fraction of state attention! Nevertheless, running my own business was the best decision I ever made and I’d do it over again any day,” he said, SMEs are “engines of growth” accounting for up to 99% of businesses and 40 % to 50% of GDP. Globally, 50% of all jobs are generated by SMEs, yet, in spite of this, they attract just a

tiny proportion of overall investment across the G20. Bushell adds: “Entrepreneurial firms will need to remain nimble to navigate choppy waters and succeed. The lack of institutional support means that business owners will continue to increasingly favour flexible working in order to avoid lengthy leases and free up their working capital so they can concentrate on growing their business.” All the East African Community countries recognise the importance of SMEs are working on policy that is tailor-made to help boost their contribution to national economies and over all regional growth. Regus is the global workplace provider. Its network of more than 1,700 business centres in 100 countries provides convenient, high-quality, fully serviced spaces for people to work, whether for a few minutes or a few years. Companies like Google, Toshiba and GlaxoSmithKline choose Regus so that they can work flexibly and make their businesses more successful.

BUSINESS

THE MARKETING FINANCIAL ANALYSIS CIRCLE

DIGEST BUSINESS WEEK, February 17-23, 2014

TO PAGE 14

Don’t play down accountants

nFor those starting a small business on a limited budget, you have probably spent some time trying to figure out where you can cut costs and do more on your own in order to stretch the funds you have available. One area you may consider doing it yourself instead of hiring it out is accounting. If you have an accounting background and a solid understanding of business finances, then this may be a good place to cut costs. However, if you lack experience in managing the books of a business and expect to learn as you go, you should think twice. Managing your own accounting system incorrectly can hurt your business not only now, but also in the long-term.

Starting a new business is exciting, but in that excitement are many decisions to be made. Out of all them all, the financial backbone of your business needs to be seriously taken into consideration. Few people start a business because they are good with numbers. In fact, the terms ‘accounting’ and ‘financial analysis’ tend to put business owners to sleep or send them screaming from the room. But to run a business effectively, most owners need to have some understanding of their finances. It is, for example, entirely possible for a company to be profitable but fail anyway because it does not have enough cash coming in to pay its bills. A large part of that are the accounting decisions you will need to

make. When starting a new business, you will want to spend some time on the following areas: The type of organization your business is. Are you a sole proprietor or are you in business with someone else? Will you organise as a partnership or as a corporation? Limited liability companies are the newest form of entity – is this form right for your business? Choosing an organisational type will determine what income tax forms to file. For example, a corporation may have to file annual reports. The fiscal year of your business. Most businesses use the calendar

year, but that may not be the proper choice for your business. For tax purposes, many businesses choose a different beginning and ending date than the January through December calendar year. Financial records for your business. You have many choices here! Are you going to use paper ledger sheets to record sales and purchases? Are you going to keep track of income and expense using a computer program? Some bookkeeping software has the ability to integrate your data with an accounting professional, thus saving you money. You will need to decide the best method for your business. Feeling a little overwhelmed?

All of the above can be much easier if you have an accounting professional to guide you. Unfortunately, too many new businesses skimp on setting their accounting backbone up correctly at the start of their business. The financial backbone needs to be strong, as it is the support of your entire venture. You can get expert help in these initial stages, and decisions, in setting up a new business, so that your business starts off right. Starting a new business is exciting! If you take the time to talk with your accounting professional about the above decisions, you will help ascertain the best possible beginnings for your business. TO PAGE 14

BUSINESS DIGEST

East African Business Week I February 17-23, 2014

Marketing financial analysis circle

Acounting analysis is vital FROM PAGE 13 When you are ready to grow your business, your accountant can be an integral resource who provides advice and helps you manage the process. Here are some examples of what an accountant can do: Help you determine areas for growth by providing insight on cash flow patterns, inventory management, pricing and business financing Provide advice on property and equipment leasing and purchase Help you prevent getting audited by the revenue authority. Prepare you for and guide you through an audit, if necessary Create financial forecasts so you can make better decisions in your business Work with you to create a business budget that will support your business goals. Provide advice and resources to assist you with the sale of your business These are just some of the ways accountants can work with small business owners. You can opt to hire an accountant for all of your financial activity, or you can choose a combined approach that limits his or her hands-on activity, reducing the expense. For example, you can hire an accountant during the start-up phase, and have him/her handle your annual reporting, but work with a bookkeeper to manage your books on a regular basis. In fact, a bookkeeper and an accountant can form a very efficient accounting team for your small business. As a start-up business grows into a small business, it is common for the accounting duties to overwhelm the business owner. This is generally the time that a search begins for some help. But does your business need a bookkeeper or an accountant? While some job tasks may overlap the two jobs are defined differently.

What is a Bookkeeper? A bookkeeper handles the mechanical functions of maintaining accounting records. They follow a regimented monthly schedule and enter all transactions into subsidiary ledgers. These functions are broken down into accounts receivable, accounts payable and payroll in larger companies. It would be ideal to have each function separated between employees for security reasons. However, for smaller companies one bookkeeper might perform all of these functions. What is an Accountant? Accountants are less involved in the day to day tasks of entering transactions, but take a higher level look at the business. They compile the subsidiary ledgers into the general ledgers. They design and prepare reports that are useful in helping managers make informed decisions about the business. An accountant can do all the work of the bookkeeper but they normally delegate these tasks off to lower paid employees. Your small business seems to

Managing your own accounting system incorrectly can hurt your business

be doing fine. You have plenty of customers and your employees are working hard. Yet, your bank account is empty and you’re having problems paying the bills. On the outside, it looks like everything should be terrific, but somehow, it isn’t. So, what’s wrong? How do you figure out where all your money is going when it seems you have plenty coming in? The answer may be in your financial statements. It may be time to analyze the financial side of your business, and that’s exactly where financial statements can help you. Financial statements are more than a simple listing of business income and expenses. Appropriately prepared financial statements can show you the cash flow of your business, any outstanding debts, and the value of your assets. Basically, once you do this, you’ll see that the total in your cheque book is not necessarily the income you have earned. There is far more to income than actual deposits in the bank. To really comprehend where your business stands, it is critical to look at certain financial statements. Financial statements are generated by first organising, and then analysing, numbers from your accounting activities. You’ll want to start with the two primary financial statements, which are your Profit and Loss Statement, also called an Income Statement, and your Balance Sheet. After which, you may want to delve deeper, and look at your Cash Flow Statement, as that will show you exactly where your cash is coming from and then where it is going. So, what you want to have is: The Balance Sheet – this is a record of your business’s assets, liabilities, and capital, up to a specific point in time.

The Profit and Loss Statement (the Income Statement) – this is the summary of your business’s earnings, expenses, and net profit (or loss) over a specific amount of time. The Cash Flow Statement – this will show the actual inflows and outflows of cash coming into and out of your business. There are other financial statements that you may find helpful; depending upon your specific business, but the above three will give you detailed information in which to begin. When you look at these financial statements, much of the mystery surrounding the finances of your business will disappear. In black and white, you will be able to see every shilling that has come into your business and every shilling that has gone back out. Financial statements are only as good as the information that is backing them up. If you do not have complete accounting records, your financial statements will not be reliable. It is extremely important to keep accurate financial records when you run a business. This is important not only for the revenue authority, but for your own peace of mind, as well. You will find that financial statements, when backed up with complete accounting records, will help you plan better for today, for tomorrow, and for the years to come. When it comes to a career that is safe and stable, few can beat being an accountant. Accountants have been critical to businesses for hundreds of years. All companies use them, whether it’s having accountants/bookkeepers on staff or hiring outside accounting services. William Shakespeare may have written, ‘First, kill all the lawyers,’ but it’s a safe bet the playwright had a good accountant.

EzineArticles.com

Financial analysis can be used to serve many purposes in an organisation but in the area of marketing it has four main functions: To gauge how well marketing strategy is working (situation analysis) To evaluate marketing decision alternatives To develop plans for the future To control activities on a short term orday to-day basis. In effect these four functions comprise what can be called the “Marketing Financial Analysis Circle” For each of the four functional areas where financial analysis is useful in marketing, there are a number of associated activities viz: Financial situation analysis (how well marketing strategy is working) This involves the study of: the study of trends comparative analysis assessment of present financial strengths and limitations for the whole business, brand or component of the business, e.g. transportation. Financial evaluation of alternatives This involves the study of a number of factors like the market place, competitors etc., and is used for decisions whether to: introduce new products/delete mature products expand the sales force or do more advertising delete a market operation e.g. close a Dairy Board depot or increase the sales fleet move into a new market or markets build a new grain depot or silo. Financial planning (projections concerning activities which marketing management has decided to undertake) Financial planning is used for a number of activities like: the introduction of a new range of products the forecasting of sales and costs market liberalisation. Financial control (actual compared to planned results) This activity is mainly centered around keeping plans on course. Marketing financial analysis There are a variety of methods used in each of the four functional areas. Some of these include the following: Financial situation analysis Ratio analysis Profit and contribution analysis Sales and cost analysis. Financial evaluation of alternatives Sales and costs analysis Break even analysis Profit contribution, cash flow analysis, profit projections Return on investment Return on capital employed Sustainable growth rates. Financial planning Sales and costs forecasts Budgets Proforma income statements. Financial control Sales and costs forecasts Actual results compared to budgets (analysis of variance) Profit performance.

http://www.fao.org

BUSINESS KNOW-HOW East African Business Week I February 17 - 23, 2014

Mastering the SWOT Analysis Representation and organisation of a SWOT table

Hope Wilson MARKETING MOXIE n KAMPALA, Uganda - “Hope, I know there are opportunities for our company to succeed. However, I can’t identify which one would be best for us at this time. Can you please help me?” To find the best path towards growth, we must fully understand the company’s current position. I recommend that companies begin the planning process with a SWOT analysis: an evaluation of their current (S) Strengths, (W) Weaknesses, (O) Opportunities, and (T) Threats.

Organization of the SWOT Table In the diagram, note that we create a box for the SWOT analysis. We divide the box in four parts, with S, W, O, and T assigned to specific boxes. This is done for a reason: The top two boxes—S and W—represent issues that are internal to the organization. The bottom two boxes—O and T—represent issues that are external to the company. There is also vertical alignment: The two boxes on the left side—S and O— address positive items, while the boxes on the right side—W and T— address negative items. The benefit of this organization is that it allows us to easily view the internal factors that we can control, the external factors that we can’t control, the positive factors that may encourage us to pursue our course, and the negative factors that may discourage us from proceeding. Now, let’s take a moment to address each of the four sections: Strengths STRENGTH Strengths encompass the internal aspects of our company that help us to succeed in a given situation. Some of the common examples of Strengths that I encounter are: We produce high-quality products and services Our employees have a high level of education and motivation We have strong revenues and profits Weaknesses Weaknesses include the internal aspects of our company that create barriers to our success. Examples of Weaknesses that I often encounter are: We lack available financial capital to make the investment Our procedures and processes are inefficient We lack internal knowledge about the market, laws, or other key issues

The top two boxes—S and W—represent issues that are internal to the organization. The bottom two boxes—O and T—represent issues that are external to the company. There is also vertical alignment: The two boxes on the left side—S and O—address positive items, while the boxes on the right side—W and T—address negative items.

Opportunities Remember, Opportunities and Threats pertain to things that we can’t control, but that affect our business. Examples of Opportunities that I often hear are: New technology can reduce our cost and improves efficiency Social issues create opportunity to launch a CSR program THREATS In the Threats section, we need to identify challenges that are outside of your control, so that we can find ways to mitigate it. New laws and taxes that affect the business Lack of physical infrastructure (roads, electricity, etc.) make it difficult to operate consistently Be sure to write down your responses; these will be important for reference throughout the planning and evaluation process. How to Complete the SWOT When I am leading a team in the completion of a SWOT analysis, I start with Strengths. I do this because it helps to generate confidence: these are positive items that are directly within the organization’s control. When people begin by listing all of the things that are great about the organization, it helps them to become enthusiastic about the SWOT and helps to offset disappointment when they address the negative aspects of the analysis. After listing as many Strengths as possible, we move on to the Weaknesses, then Opportunities and Threats. During the discussion, it is common for the team to think of items that fit in other categories; I simply pause and note their remarks. It is not necessary to main-

“

Teams may feel discouraged by all of the weaknesses and threats that they have identified... we identify ways that we can convert our Weaknesses to Strengths, and our Threats into Opportunities. tain complete focus on the category being addressed at the moment. Another thing I’ve learned from leading many, many SWOT analyses over the years is that this is not the time to be critical of people’s suggestions. At times, I may ask for brief clarification of an idea, or suggest that we place the item in a more appropriate category, but I don’t want to discourage anyone from participating. Sometimes, great insights come from unexpected sources! Often, I complete an initial SWOT session, then encourage the team to move on to an unrelated activity.

After a couple of days, I’ll revisit the SWOT with the team. The elapsed time between the sessions helps to stimulate creativity and bring insights and ideas into our minds. By the end of the SWOT process, teams may feel discouraged by all of the weaknesses and threats that they have identified. So, I always add one more step to this process: we identify ways that we can convert our Weaknesses to Strengths, and our Threats into Opportunities. For example, if a lack of employee training is a Weakness, then we’ll discuss ideas for training programs, as well as other opportunities that the education would create for the company. Or, if a poor economy is a Threat, then we’ll generate ideas for products or services that our target market needs in that economy. Always begin by helping the team to feel positive about the value that they bring; it will help them to be honest about the negative aspects. Always end by helping the team to feel empowered to respond productively to Threats; it motivates them to pursue innovations and overcome adversity. Applications of SWOT analyses In business school, many students are taught to complete a single SWOT that assesses the company’s position in the marketplace. However, I frequently use SWOTS for: Specific Challenges or Opportunities. Don’t limit your use of SWOTs to major company strategies; this process can be helpful for much smaller issues. I have used this tool to help executives decide which capital improvements investments would be most beneficial, small marketing

campaigns tailored for an individual event, and many other decisions. Mentoring New Marketers. When mentoring younger marketing personnel, I like to assign challenges that are within their skill level, then ask them to complete a SWOT analysis, other appropriate research and analyses, and provide at least three options that will resolve the challenge. This helps them to develop their research and analysis skills, engages their minds, and gives them areas of authority. (After agreeing to a solution, I also ask them to manage the resulting project. I require regular status updates so that I can provide guidance.) Competitor/Client Perspectives. Pretend that you work for your competitor or client. Conduct a SWOT from this perspective. Often, this will help you to discover differentiators and other competitive advantages. Personal Decisions. In addition to company issues, I like to use SWOTs when I’m faced with a new professional or personal opportunity. This allows me to view the situation objectively, consider the resources I have and need, and allocate my time and resources in the most effective manner. 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

PICTORIAL

East African Business Week I February 17 - 23, 2014

ENERGY STRATEGY: Rural Energy Agency (REA) Director General Dr. Lutengano Mwakahesya (L) explains a point to consumers of rural power. Rural areas in Tanzania will need at least Tsh480bn ($300m) in order to boost power connectivity to realize the Tanzania Development Vision 2025.

The week in pictures

EARLY SAVING: Albert Odongo (R) the KCB-Uganda Managing Director hands a One Million Shillings cheque to Andrew Munira, one of the 12 winners of school fees and scholastic materials for first term. This was during the official re-launch of the KCB Cub Account in Kampala. He said more winners will be announced for second and third term. PHOTO BY PAUL TENTENA

DESTINATION DUBAI: Gospel singer and Omo Brand Ambassador Judith Babirye picks a winning envelope of a lucky Ugandan who will fly to Dubai. Unilever Uganda Ltd the makers of Omo Detergent Powder were concluding their Wash and Fly promotion. SCHOOL ALWAYS: Staffs of KCB Uganda dressed like School Children hold placards with words emphasizing the need to save for child education. KCB Uganda revamped their “KCB Cub Account” that will help parents save money to finance the education of their children at primary school level.

MODELLING: Africa’s next top model Aamito (M) poses with Charles Hamya (L) General Manager of Multichoice Uganda and Steven Musoke, the Multichoice Uganda Chairman last week. This was shortly after her win.

BEAUTY: Carmen Akineza, 22, (M) was last week crowned the winner of the City of Kigali preselection for the subsequent Miss Rwanda 2014. Emmanuella Erica Urwibutso,19, and Nadia Uwera,23, emerged first and second runnerups. Fifteen contestants will compete for Miss Rwanda 2014 this year.

NO CONNIVANCE: Uganda Wildlife Authority Senior Law Enforcement Officer Col. Charles Tusiime speaking to journalists in Kampala. The authority dismissed reports that its staffs collude with poachers to kill wildlife for international trade. Looking on is Dr. Andrew Sseguya the Executive Director. PHOTO BY PAUL TENTENA

ADVERTORIAL

East African Business Week I February 17-23, 2014

UGANDA WILDLIFE AUTHORITY GOVERNMENT COMMUNICATION GURUS TOUR KIDEPO VALLEY NP

Uganda Wildlife Authority Public Relations Manager Jossy Muhangi (R) joins other communications specialists from government departments and ministries in a group photo.

efore setting off from the Postel Building in Kampala in the wee hours of Tuesday 4th February, 2014, some scores of the team members were heard praying loudly for journey mercies, protection against warriors, getting stuck in impassable sections of the roads and serenity through the regions formerly infested by insurgents. The prayers came from pockets of over 30 communication and public relations gurus for Government ministries, departments and agencies who last week took time off their usually busy schedules to adventure into the picturesque Kidepo Valley National Park, better known as Africa’s True wilderness park. It was a different story during their three day stay in the valley encircles by Rocky Mountains and during their return journey with some of them claiming they had been taken to a different Karamoja

region. Under their umbrella organization, Government Communication Officers Forum (GCOF) coordinated by the Office of the Prime Minister (OPM),the familiarization and tourism promotion trip sponsored by Uganda Wildlife Authority(UWA) took them through Gulu, Kitgum and Kaabong. It attracted officers from State House, OPM, Directorate of Public Prosecution, Ministry of Tourism, Wildlife and Antiquities, Kampala Capital City Authority, Ministry of Education and Sports, Internal Affairs, East African Community Affairs, Uganda Media Centre, Ministry of Information and National Guidance, Foreign Affairs among others. Once in Kidepo Valley National Park, the team could not hide their visual excitement at the spectacular landscapes including rocky outcrops, termite mounds, the hot springs as well as huge herds of wildlife espe-

They enjoyed the Epoka and Edonga dance with the Karamajong community.

cially the buffalos along the Narus valley. Before setting off from the Postel Building, there were murmurs and fears about the state of the roads and shaky bridges, possible insecurity from former cattle raiders, traversing the areas formerly occupied by insurgents, state of accommodation and food in Africa’s true wilderness park among other concerns. On the contrary, the murram road surface between Gulu via Kitgum to Karenga in Kaabong district proved more comfortable than that the stretch between Kafu and Gulu where endless pot holes initially turned the joyride into a nightmare. Thanks to the partnership between UWA and UNRA, the stretch between Kitgum to Karenga and from the park gate to Apoka Tourism centre offered a perfect mitigation for the earlier experience. Big wildlife herds and historical names Peter Kaujju of KCCA and Pius Mwinganisa of the OPM temporarily changed their vocabulary during the three days stay in the Kidepo Valley National Park owing to the interesting interpretation offered by the UWA professional guides about the meaning of names given to various places and features. Names like Kidep which means to pick from down, Epoka for - soup, Narus for a permanently muddy or watery place as well as romantic names such as Kanagarok, Kakalu, Kalabe, Nagusokopile and Maji-Moto was on everybody’s lips. It was not uncommon to hear people asking “Who has kidepped my bag? meaning who has picked the bag. Ms Linda Nabusayi camera could never rest as she got attracted virtually to everything from the amazing sand rivers particularly Kidepo,

the Borassus palm tree fruits, the bubbling waters of the Kanangorok hot springs and the termite mounds. The team occasionally stopped the driver to have a closer sight of the endless herds of elephants flapping their wide ears, buffalos making mock charges, the playful Jacksons hartebeests, the mane less zebras and a variety of birds particularly the Abyssinian ground horn bills. The elated team also sighted ostriches and by the time they returned could tell the difference between male and female ones and they also had a short occasion to step on South Sudan’s Eastern Equatorial province land without visas. One of the members known as Imelda Mirembe claimed to have sighted a lion on a cliff near River Kakalu. The group must have missed sighting a pride of lions by a whisker on their way from Lomeji airstrip since the foreign tourists who were following closely in their footsteps sighted a pride at the junction leading to Nataba gate. The communicators also marveled at God’s creation when they visited Katurum lodge under construction with some of the rocks acting as natural walls, the naturally existing swimming pool at Apoka Safari Lodge and Geremech rock near the park offices. Communing with wildlife

The communicators experience was further enriched when during a fireplace gathering, a host of wildlife loitered around their Apoka bandas particularly the jackals while the zebras and waterbucks were common sight in the vicinity. Hundreds of warthogs walked around with ease grazing around the bandas while loner buffalos rested unbothered under the tree sheds offering the communicators unique photo opportunities. The Karamojong dance The trip would have been incomplete without the communicators participating in the taxing Epoka and Edonga dance when they visited Lorukur village in the outskirts of the park where they were taken around a typical Karamojong village with cultures surrounding marriage, traditional medicine, food storage and a diversity of dances explained. The communicators crowned their tour by joining the Karamojong dance competing with the locals on who jumped higher where the sky was the limit. Kidepo Valley National Park is Uganda’s third largest national Park at 1,442 square kilometers and was gazetted in 1962. It harbors ostriches, cheetahs and birds only endemic to this region. On 28th February,2014, the Tourism fraternity will converge in Kidepo at Apoka village to celebrate 52 years of conservation.

In the dry River Kidepo, the Public Relations Managers had a group photo. River Kidepo is a seasonal river.

NEWS

East African Business Week I February 17 - 23, 2014

Controversy takes over Inga dam “

“The World Bank Group is fully committed to supporting the Inga III hydropower project, which has the potential to improve the lives of millions of Africans,”

President Kabila is being caught up in the biggest dam project in the world. nWASHINGTON, Watchdog groups here are warning that a deal has been struck that would see Chinese investors fund a massive, contentious dam on the Congo River, the first phase of a project that could eventually be the largest hydroelectric project in the world. Discussions around the Inga III dam proposal, in the Democratic Republic of Congo (DRC), have been taking place in some form for decades. They have picked up speed over the past year, however, under the auspices of the World Bank, the Washington-based development funder. On Tuesday, the bank’s board of directors were to have voted on an initial 73-million-dollar loan for the project, to be offered through the International Development Association (IDA), the institution’s programme for the world’s poorest countries. Last week, however, that vote was abruptly postponed. Now, civil society groups are reporting that the project may be going forward instead under the World Bank’s private-sector arm, the International Finance Corporation (IFC), with the backing of Chinese investors. Yet critics, who have long worried about the local social and environmental impact of the Inga project, worry that greater involvement by the private sector will result in skewed prioritisation of beneficiaries.

“Handing the project over to a private investor will make it even less likely the country’s poor people would benefit from the project,” Peter Bosshard, policy director for International Rivers, an advocacy group, said Monday. “The IFC deal was arranged behind closed doors without any accountability to the DRC parliament, the World Bank’s board of directors, or civil society … Non-transparent deals such as the Inga 3 Dam are the best recipe for deepening corruption in the DRC. They will not strengthen the public accountability that is necessary for social and economic development Citing multiple sources within the bank, Bosshard says the decision to change the Inga III funding modality appears to have been made between high-level officials from the World Bank, the IFC and USAID, the U.S. government’s main foreign-aid arm, reportedly bypassing the bank’s board of directors. Thus far, none of these institutions have publicly confirmed any deal. “The World Bank Group is fully committed to supporting the Inga III hydropower project, which has the potential to improve the lives of millions of Africans,” a bank spokesperson told IPS in a statement. “We postponed presenting to our Board a Technical Assistance package related to the design of the project’s operation, but the project has not been cancelled, and our commit-

ment to Inga III is unchanged.” Primary beneficiaries As currently envisioned, the Inga III dam would be the first in a series of hydroelectric installations along the Congo River, collectively referred to as the Grand Inga project. This would include a single 145 metre dam, which would flood an area known as the Bundi Valley, home to around 30,000 people. The full project could provide up to 40,000 megawatts of electricity, a power potential that has been eyed hungrily by the rest of the continent for decades. While DRC’s chaotic governance has stymied forward progress on the project for years, the Grand Inga vision received an important boost last year when the South African government agreed to purchase a substantial amount of power produced by Inga III. The 12-billion-dollar dam is now supposed to be built by 2020 and, according to Congolese government estimates from November, would produce around 4,800 MW of electricity. Of this, 2,500 MW would go to South Africa while another 1,300 MW would be earmarked for use by mines and related industry in the province of Katanga. “There is little indication that the dam development schemes underway would address the issue of access to electricity for the population at-large; industrial users stand to be the primary beneficiaries,” Maurice Carney, executive

director of Friends of the Congo, an advocacy group here, told IPS. “Only 10 percent of Congo’s population has access to electricity and the situation is even worse for rural population, where only 1 percent has access to electricity. For a country like the DRC that is endowed with a plethora of alternative energy options, smaller-scale renewable energy technologies would be the best way forward.” Carney and others are calling for a cumulative assessment of the Grand Inga scheme, to include study of all social and environmental impacts. Indeed, these have been longstanding concerns, but now some development advocates worry that greater private sector involvement in the Inga III project will further exacerbate such issues. “We have questions about whether the scheme can deliver any development at all in the hands of the private sector,” Joshua Klemm, manager of the Africa programme at the Bank Information Center, a watchdog group here that focuses on the World Bank, told IPS. “For good or bad, if this project belongs to the Congolese government, there’s at least some hope to expand electricity access in the country. That would go out the window if we’re talking about a purely private sector project.” Duelling U.S. stances As the Inga III project picked up momentum in recent months,

USAID too expressed its interest in the proposal. The agency’s administrator, Rajiv Shah, visited the Inga III dam site in mid-December, and stated that the proposal could be added to a new, large-scale initiative by the United States to significantly increase electrification across Africa. Although USAID was unable to comment for this story by deadline, any involvement by the agency in brokering a deal with the IFC would be interesting. Just last month, the U.S. Congress passed a landmark new law requiring the U.S. Treasury to formally vote against multilateral funding for large-scale hydroelectric projects in developing countries. The new provisions, contained in a huge appropriations bill funding the federal government, impact both on bilateral U.S. funding through agencies such as USAID, as well as on the significant contributions that the United States provides to multilateral development institutions, particularly the World Bank. (The U.S. Treasury was unable to comment by deadline.) “Under the [appropriations] language, the United States will have to oppose the Inga III dam at the IFC as much as it would have had to do this if it were an IDA project,” International Rivers’ Bosshard told IPS. “There’s no difference there, but it is ironic that the USAID administrator would have pushed the deal.”

TOURISM

East African Business Week I February 17 - 23, 2014

SUMMIT: The dormant volcano is an ideal place for mountain climbers and tourists because its peak provides a good view of the local scenery.

Locals told to spin new attractions BY ELISHA MAYALLAH nARUSHA, Tanzania - The Local Government Authorities in the north of Tanzania will work with state tourism authorities, Tanzania National Parks (TANAPA) and (Tanzania Tourist Board (TTB), to start promoting unexploited destinations in the northern part of the country. According to Felix Mabula, the Hanang District Executive Director in Manyara region, which borders Arusha region, the number of tourist attractions in the northern part of the country needs to be promoted. “Local communities will be

engaged through groups to facilitate implementation and sustainability,” Mabula said. Local authorities are working on setting up strategies on how best such kinds of tourist destinations will be managed and promoted in and outside the country. “This is a community driven project where they are empowered to conserve the environment and promote tourism, including their own culture, to generate more income and to improve their livelihood,” Mabula said. He also said that Mount Hanang at 3,417 metres, is one of the tourist spots that is yet to be exploited fully as a destination. The dormant volcano

is an ideal place for mountain climbers and tourists because its peak provides a good view of the local scenery. Mt. Hanang is the third highest in Tanzania after Mt Meru (4,566m) and Kilimanjaro (5895m). The promotion targets Mount Hanang among other tourism attraction sites in Manyara region. The move will make the mountain as the main source of revenue of local government and the central government as it is to other tourist destinations in the country, Mabula said, adding that the promotion will involve different stakeholders. Manyara Regional Commissioner Elaston Mbwilo said Mt Hanang is

one of the tourist destinations that need to be promoted for higher economic growth. Others include Mt. Kwahara, which provides beautiful scenery of Babati Township and Lake Babati. Besides, Hanang has some natural, cultural and man-made attractions, hot water springs Balang’da-Lalu and Balang’da-Gidaghang’d (Gendabi) salt lakes, Lake Bassotu; huge rocks some with prehistoric rock drawings. This promotion is being spearheaded together with TANAPAa nd local government authorities to help diversify tourism products while also boosting income for the local communities.

“

“Local communities will be engaged through groups to facilitate implementation and sustainability,” Mabula said.

Uganda rangers deny helping poachers BY PAUL TENTENA KAMPALA, Uganda-- The Uganda Wildlife Authority (UWA) has dismissed media reports linking its staff with aiding and abetting poachers kill the animals. UWA also denies helping poachers find markets for the animal trophies. Dr. Andrew Sseguya, the Executive Director told a news conference, UWA as a law enforcement institution cannot be criminal-friendly. He said UWA staff have been on several occasions under attack for executing lawful duties. “UWA does not condone any illegality committed by anybody and whoever is implicated is always brought to book and punished accordingly,” Sseguya said. “All poachers and encroachers arrested are charged and prosecuted in courts of law and accordingly sentenced. Any staff found to be involved in any illegalities is also disciplined in accordance with the law and established rules and regulations,” he said. Sseguya said UWA has been able to effectively enforce the wildlife law in Uganda through partnership with other security

forces, including the UPDF, Police, Prisons and other agencies. He said this partnership has helped to ensure the security and integrity of the protected areas, including the safety and security of tourists. “We employ a ranger force of over 1300, well trained and skilled personnel in addition to over 700 UPDF officers and men who specialize in wildlife protection plus over 600 Tourism Police officers deployed to ensure the safety of tourists with 233 of these deployed in wildlife areas,” Sseguya said. Sseguya said the level of illegal wildlife activities in protected areas has been substantially and systematically been contained and the wildlife numbers have been steadily growing during the recent past. Sseguya also dismissed reports that his staff were involved in the murder of “seven suspected poachers” who disappeared in Murchison Falls National Park. He said, the matter is under investigation and before courts of law and it is improper to comment on it. “However, the public need to be informed that neither UWA nor its staff condone the killing of communities and Ugandans for whom they conserve wildlife for and on

STERN: Dr. Sseguya said UWA rangers have often been attacked for carrying out their statutory duties. behalf. “Any person found in the protected areas without permission or found committing any wildlife crime is arrested and handed over to police for prosecution. On the contrary, it is the staff of UWA who have

been victimized by the thugs and criminals leading to loss of many lives of both UWA rangers and UPDF officers while defending the wildlife and the protected areas for the good of all Ugandans,” Sseguya said.

ENTERTAINMENT

East African Business Week I February 17 - 23, 2014

THIS WEEK

ON DSTV

nE! ENTERTAINMENT (Channel 124) : The Drama Queen: If you’ve ever wondered what goes into creating the hype and publicity that separates a celebrity from a one-hit wonder, this series is here to answer all your questions. Join GOtv and E! As we explore the world of Hollywood celebrity manager Marki Costello, as she deals with demanding clients chasing dreams of stardom, while managing her family life as a mother and girlfriend. It airs on Sundays at 22:00 CAT.

nAL JAZEERA (DStv Channel 406) :Head to Head: Hosted by Mehdi Hasan Head to Head tackles some of the biggest issues of our time with leading international figures. Back for a second series Head to Head returns to the Oxford Union for some lively interviews, discussions and debates. Host, Mehdi Hasan (political editor of the Huffington Post) goes head to head with leading international figures and is joined by an expert panel on the chosen topic who add their thoughts, opinions and questions. Watch it on Friday 21 February at 22:00 CAT.

Pepsi chasing Bruno Mars BY BAZ WAISWA nKAMPALA- UGANDA -Corporation in America are scrambling to sing on songstar Bruno Mars are their ambassador but the 28-year- old Grammy Award winning singer has yet to fall in love with Madison Avenue. Mars, whose worldwide fame grew enormously after his Super Bowl halftime performance last week, has so far turned a deaf ear on the host of endorsement offers sitting in his lap. Among the companies chasing him is soft drink makers Pepsi who has so far

looks likely to land the star, Microsoft, LG Electronics, Beats and a range of soft drink firms are chasing the Hawaiianborn star, who has 17.6 million Twitter followers. If marketers had their way, Mars would look more like a Nascar driver than the cool crooner he is. Mars’ music has been licensed to appear in ads for Hyundai and Pepsi. Mars was named Billboard artist of the year in 2013 and recently picked up a Grammy Award. The Warner Music Group artist is worth around $17 million. Reports indicate that the artist’s appeals to Latin Americans where both the Mars and Pepsi have a big following.

Mirembe for Asian beauty contest World Uganda Stella Nankya nKampala, Uganda – Arguannounced MIrembe as the winably one of the country’s ner fending off competition from brightest models, now other renowned city Doreen Nina Mirembe, as her wish Kabarebe and Doreen Faith. would be, is facing a task of “Congratulations, you have representing Uganda at the the highest votes. You will 2014 Miss Asia Pacific World represent Uganda at 2014 Miss beauty pageant. Asia Pacific World in Seoul, The international beauty South Korea,” Miss Asia Pacific contest will be held on NovemWorld Uganda wrote on their ber 2014 in Seoul, South Korea, facebook wall after the counting where Mirembe will have to the votes. pull off a stunner to beat other gorgeous beaus from other countries. Nina Mirembe to represent Uganda at the 2014 Miss Asia Pacific World World beauty pageant come November 2014 in South Korea. The 21 year old professional model will be the second contestant to represent Uganda after the South African based Ugandan model Stella Nankya. Nankya who is now thedirector of Miss Asia Pacific Nina Mirembe

GOTV livens up Valentines

The PRO MultiChoice Uganda Tina Wamala (R) hands over Valentine goodies to East African Business Week staff Baz Waiswa last week. Photo by Winie Mandela

Bruno Mars

Omo flies lucky 13 people to Dubai nKampala, Uganda –Unilever Uganda last year launched a promotion aimed at rewarding customers who buy their new OMO washing powder with an all-expense paid trip to Dubai and a horde of other goodies worth Ush500m. The promotion launched on December 12, 2013 has so far seen 13 lucky individuals win the trip plus $500 spending money. The promotion called Wash and Fly to Dubai was announced at the event held at Unilever Head Offices where gospel artist, Judith Babirye was formally introduced to the public as OMO’s Brand Ambassador. Customers can enter the promotion by purchasing a 1kg, 500g or 45g pack to qualify for the promotion. Customers submit an envelope with their name, address, phone number and the empty pack attached and drop it into the promo bins located at selected shops and supermarkets. Throughout the promotion, Omo will be having in-store and market activities that will see Unilever customers win some exciting gift hampers including shopping vouchers, flat irons, and washing machines among others.

British Airways in Charity Soccer tourney BY BAZ WAISWA nKampala, Uganda –Kampala, Uganda –British Airways together with its partners Corporate League Uganda, G4C Secure Solutions and AAR Insurance are organizing a charity soccer tournament to raise money that will go into helping needy children in Uganda and other parts of the world. The tourney is targeting corporate organisations in the country to contribute Ush1m ($400) as donation/registration fee. Faith Chaitezvi, British Airways Country Commercial Manager while addressing a press conference at their offices in Kampala said the one day event is scheduled to take place this Sunday, 23rd February at Kyadondo Rugby Grounds. The tournament is part of British Airways and Comic Relief charity program, Flying Start, a global charity partnership initiative aimed at raising money to help underprivileged children across the world. Chaitezvi also revealed that already some companies have

expressed their willingness to take part in the mini soccer tournament. Trevor Ariho, the Public Relations Officer at AAR, at the same meeting explained that sports is one of the cheap ways in which one can stay health. Ariho said AAR will bring their health insurance expertise to ensure that participants are guarded against any health complications that might arise at the event. Similarly Martin Mungai, Head of Business Development and Sales at G4C, a security solutions provider said they will ensure that the right security measures are undertaken. The Chairman of Corporate League, Richard Kawere, said that the charity soccer tournament marks the beginning of another highly competitive year for the Corporate League and was hopeful this will be a platform for further similar engagements between these partners. British Airways and Corporate League a memorandum of understanding to strengthen their relationship that will pave way for future engagements.

EAC

East African Business Week I February 17 -23, 2014

CONTENTIOUS: According to the Frankfurt Zoological Society, the planned road would result in the decline of wildebeests from the current 1.3 million to around 200,000.

Serengeti issue in EAC court BY ELISHA MAYALLAH

nARUSHA, Tanzania - A case filed by the Kenyan based Africa Network for Animal Welfare (ANAW) contesting Tanzania’s proposal to build a ‘super highway’ across the Serengeti National Park, is likely to be thrown out. This is because of the absence of the ratification of the Protocol on Environment and Natural Resources by the five Partner States. Plans by the Tanzanian government to build a road through the Serengeti National Park have elicited widespread protests from wildlife activists and several quarters in the tourism industry. Counsel for Tanzania, Gabriel Malata, a Principal State Attorney,

submitted at the East African Court of Justice in Arusha last week that, there was no violation of the Treaty, because the government had at the time the case was filed, not decided on which road to construct (whether tarmac or gravel). Secondly, after a feasibility study on impact assessment report, it was decided to construct a gravel road for tourism and administrative purposes and that the same would have no effect on the eco-system at Serengeti. According to a statement issued by the EACJ, Malata added that the orders sought by the Applicant if granted, will frustrate the tourism sector in the entire East Africa citing that the road is there to facilitate the movement of tourists. He therefore asked the Court to dismiss the case with costs as against

the United Republic of Tanzania. However the ANAW lawyer, Saitabao Kanchory Mbalelo, said the action of constructing the road across the national park is unlawful and infringes Articles 5 3 (c), 8 1 (c), 112 1 (e), 114 1 (a) of the Treaty for the establishment of the East African Community. He added that the road will create a negative impact which will adversely affect the eco-system and the environment and that the Court has jurisdiction to entertain the dispute. He argued that the road will be a potential threat to wildlife as it will interrupt their movements and migration. Saitabao said the five kilometre road is gravel level and not open yet. But the Respondent (United Republic of Tanzania) intends to open it for public use.

He submitted that, however the initial intention of the Government of Tanzania was to construct a tarmaced road, but later changed to gravel and that might cause the same effect in the National Park environment. He therefore asked the Court to be pleased to find that the Government of Tanzania contravened the Treaty for the establishment of the EAC by the above actions. Counsels appeared before The Principal Judge Hon. Mr. Justice Jean Bosco Butasi, The Deputy Principal Judge Hon, Mr. Justice Isaac Lenaola and Hon. Mr. Justice John Mkwawa in open Court. The proposed highway is seen as a major threat to the Masai Mara National Reserve and Serengeti ecosystems as it would seriously affect the annual wildebeest migration, a major

revenue earner for both countries. According to the Frankfurt Zoological Society, the planned road would result in the decline of wildebeests from the current 1.3 million to around 200,000. It also warns that increasing traffic into the Serengeti National Park and easier access would see a rise in poaching by criminal syndicates. Tanzania has been urged to consider building the road elsewhere so as to avoid adversely affecting the Serengeti and Masai Mara ecosystems. While it is crucial for the Tanzanian government to link various parts of the country, it should consider calls to build the road between Arusha and Musoma outside the park.

US gives $25million for improving regional trade BY PATRICK KISEMBO DAR ES SALAAM, Tanzania---The United States government has signed a cooperative agreement with TradeMark East Africa (TMEA) worth $25million signifying partnership with President President Barack Obama’s Trade African Initiative. The signing took place recently in Nairobi Kenya between the officials from the United States Agency for International Development (USAID) and TradeMark East Africa (TMEA). TMEA is based in Nairobi. A statement availed to East African Business Week reveals that basically the aim is to increase trade within East Africa by reducing the time and cost of transiting and transporting goods across the region. The partnership will also support East African Community (EAC) regional integration. Through

Trade Africa, TMEA will broaden its regional integration program at the ports of Mombasa and Dar es Salaam and key border posts along the Northern and Central Corridors, and will work with EAC Member States to remove barriers to trade. “In July, 2013, President Obama announced the United States Trade Africa Initiative, a new partnership between the United States and sub-Saharan Africa that seeks to increase internal and regional trade within the East African Community, and expand trade and economic ties between Africa, the United States, and other global markets,” USAID’s Associate Administrator, Mark Feierstein said in his remarks. He said the agreement signed will unite donor efforts across the region to support the EAC to implement the shared vision of a prosperous, growing East Africa. TradeMark CEO Frank Matsaert said trade infrastructure is critical

to East Africa’s prosperity, and in creating much needed employment in the region. Currently East Africa’s trade corridors are characterized by long transit times and high costs. “Freight costs per kilometre are more than 50% higher than costs in the United States and Europe, and for the landlocked countries, transport costs can be as high as 45% of the value of exports,” Matsaert said. He said the US is an important partner in promoting regional and economic integration in East Africa. Matsaert confirmed that TMEA will continue to focus its efforts on increasing trade and prosperity in East Africa, primarily through investments that have the biggest benefit for East Africa’s people and the private sector. “This investment supports those projects that provide the catalyst needed to bring prosperity to the region,”

Matsaert said. He said that Trade Africa will assist TMEA to address economic growth constraints by promoting intra-regional exports, as well as enabling exports to new markets including the US. The partnership will also help reduce the barriers to crossborder trade which can result in a 15% reduction in average time to import or export a container from Mombasa or Dar es Salaam to Burundi and Rwanda and a 30% decrease in the average time a truck takes to cross selected borders. “By reducing the time and costs of moving goods and services across borders, Trade Africa will both support greater intra-regional trade within the East African Community and support greater U.S.-EAC trade and investment, including under the African Growth and Opportunity Act,” Florizelle Liser the Assistant US Trade Repre-

sentative for Africa said. Feierstein and Gast were in Kenya last week to evaluate the progress of President Obama’s initiatives toward fostering publicprivate partnerships to address U.S. and Kenya’s shared development objectives. TradeMark East Africa is a company limited by guarantee (with offices in all East African countries, as well as Juba, South Sudan) that provides technical and monetary support to the EAC Secretariat, national governments, private sector and civil society to improve the ease of trading in East Africa through an emphasis on streamlining port, transit, customs and border operations in order to enhance trade. It has been supported largely by European bilateral donors and works to promote rapid advances in East Africa’s economic integration, trade and global competitiveness for all East Africans.

AGRICULTURE

East African Business Week I February 17 - 23, 2014

SSORTING: Rwanda agriculture authorities say washing stations that do not conform to quality standards will be fined.

Rwanda coffee told to scale up BY AGNES BATETA.

nKIGALI, Rwanda—People involved in Rwanda’s coffee industry have been asked to keep quality uppermost in their minds as the country tries to increase annual production levels. Recently, a meeting that brought together all coffee stakeholders in Rwanda and was organized by the National Agricultural Export Board (NAEB) together with the Ministry of Agricultural and Animal Resources (MINAGRI). Participants were told of the importance of quality coffee production and raising the quantity of coffee produced. This meeting was presided over by agriculture minister, Agnes Kalibata, together with the NAEB Director General Amb. George William Kayonga. Several agricultural experts

also attended. Addressing people present in the meeting, Kalibata said Rwanda had built a good name in producing quality coffee. She said this was going to continue, with help from all those in the industry from farmer to processor. “The coffee farmers, plus producers we have now are the ones we had before and the different items needed to produce quality coffee (fertilizers, funding, training) are the ones we used last year. Therefore there is no need not to produce quality coffee even now”, she said. In the coffee Cup of Excellency awards of 2013, it was noted that less lots of coffee were received which contributed to Rwanda not participating well in the C.o.E competitions. This was blamed on farmers who sent in their lots late and coffee processors who actually do not want to pay coffee farmers well which

demoralized them. “We want to start preparing lots early enough this year, and we request producers to pay farmers so as to motivate them into producing quality coffee,” Amb Kayonga said. Kayonga requested different coffee producers to send in names of farmers early enough plus to let such farmers be the ones to determine what award they want as one way of encouraging them to participate more in quality coffee production. The meeting came as the coffee harvest season is about to begin. Kalibata said that to increase on coffee production different standards were going to be put on coffee washing stations, and here she said that coffee produced with no proper requirements would be fined. She said that fully washed coffee was going to be given a greater priority such that ordinary coffee will

only be sold after selling off the fully washed coffee. “We again want to make a follow-up on the coffee farmers adding more training to them on what they have to do to produce quality coffee,” she said. The Head of Coffee Division at NAEB, Dr. Celestin. M. Gatarayiha said to improve on coffee quality and quantity, they needed to get coffee factories and other coffee producers together and prepare them for the coming in harvest season. “We want to produce quality coffee since last year we actually went down from the 35% we had in 2012 to 33%,” he said “This year around, we have a target of hitting 45% but this requires good collaboration amongst all coffee stakeholders,” he said. Dr. Gatarahira again said that they had agreed upon a minimum price

at which coffee was supposed to be bought from a farmers and this was going to be respected as one way of helping farmers gain more from farming. “In this coming in coffee season, Rwf142 per kilogram is the amount at which coffee washing stations will be able to buy coffee from farmers”, he said. It is noted that in 2013, Rwanda had about 220 coffee washing stations with capacity which is against the 210 she had in 2013 and among these 210 CWS 110 were for cooperatives whereas the 110 were individual companies. Again, in 2012, Rwanda was able to produce about 58.939 tons of cherries as against the 48.516 produced in 2013 which raised a difference of 17.7% in the last concluded year 2013.

Liability clause hurts Tz farming research BY LEONARD MAGOMBA

nDAR ES SALAAM, Tanzania-The delay to remove a clause on strict liability for agricultural technology has been blamed by scientists for driving away donors, who are ready to fund research projects. Scientists say the clause may also negatively impact President Jakaya Kikwete’s call, for scientists to conduct research on genetically modified organisms (GMOs) so as to establish the practicality of the technology in the country. Basically the clause means that if anything goes wrong, the researchers are liable. A Member of the National Biosafety Advisory Committee, Dr Roshan Abdallah said amending the 2004 NEM Act would help scientists get approval for research into the safety of biotechnology. The scientists were speaking during a visit by journalists at the Mikocheni Agricultural Research Institute (MARI) last week. It was organized by the Open Forum on Agricultural Biotechnology (OFAB), Tanzania Chapter.

The scientists said donors have been running away from sponsoring agricultural research specifically on GMOs due to strict liability clause in the 2004 NEM Act. The ongoing hurdles among scientists around the country over the delay to review and repeal of a clause that holds any liable to punitive sanction should anything go wrong in development of agricultural technology, the scientists said.The National Coordinator of Open Forum on Agricultural Biotechnology (OFAB), Tanzania Chapter, Philbert Nyinondi said the strict liability is the legal responsibility for damages, or injury, even if the person found strictly liable was not at fault or negligent. It has been applied to certain activities in tort, such as holding an employer absolutely liable for the torts of her employees, but today it is most commonly associated with defectively manufactured products. However, Tanzanian scientists are optimistic that the government’s vow to fund tissue culture technology in the 2014/2015 national budget would assist farmers to battle vulnerabilities of their traditional crops. A Senior Researcher of the Tanzania

Commission for Science and Technology (COSTECH), Dr Nicholas Nyange said if the application of the biotechnology would delay due to this clause, there is no need to worry because the government is willing to fund tissue culture. “As long as the government is able to fund tissue culture, this could also be used as a way of helping farmers to fight against diseases,” Dr Nyange told East African Business Week last week.MARI’s Head of Cashew Biotechnology, Dr Emmarold Mneney asked the government to transfer banana tissue culture to small-scale farmers so as to defeat challenges that contributes to the declines of the agriculture sector.“If the government wants to overcome the challenges that deteriorated the agriculture sector as well as boosting productivity and production, they have to transfer knowledge to smallholder farmers, who are many,” he said.Dr Mneney said tissue culture technology is the best option for them. He insisted, if exploited efficiently in the agricultural sector, the technology could save commercial farming and hence boost the nation’s forex earnings.

BUSY: Funding tissue culture research is seen as a major way in fighting crop diseases.

INFRASTRUCTURE

East African Business Week I February 17-23, 2014

Uganda weighs new dam benefits BY EMMA ONYANGO

he truth is, Uganda really does have some surplus electricity since the commissioning of the 250 MW Bujagali Hydropower station in 2012. According to Dr. Benon Mutambi, the Chief Executive Officer of the Electricity Regulatory Authority (ERA), any power outages that may be experienced in parts of the country are only isolated cases and are as a result of flaws in the transmission process and not generation. “Current supply is sufficient to meet the demand. We have a reserve capacity of 100MW (thermal) but we’ll only use it as a last resort,” he told a news conference recently. Figures from ERA show that Uganda’s current total installed capacity is 682MW. The registered peak system demand in December 2013 stood at 503MW compared to 506MW in November. This shows that there is surplus electricity at the moment though this may be a temporary situation given that electricity demand is growing at more than 10% per annum. The 14% of Uganda’s population that is connected to grid electricity have witnessed a drastic reduction in power outages that characterized the era prior to the commissioning of the 250MW plant. On top of that, the government has saved considerable money that it had to pay for thermal generation as well as the subsidies it had to provide to the 14% of Uganda’s population that is connected to grid power. However, the question that could be lingering on many a person’s mind, is whether the population that affected by the construction of the dam and the nearby villages also feel the benefits of the ‘surplus’ electricity. A joke is always peddled around that Jinja District, home to three of Uganda’s dams (Bujagali, Nalubaale and Kiira) also experiences the same, if not worse power outages compared to other parts of the country. This joke is often shrugged off as a ‘taxi driverlike’ conversation only meant to engage down-town chaps and not one that intellectuals would get engrossed in. But, this joke if put into context could generate debate that could help highlight a number of issues such as; what is the plight of the persons displaced by the construction process, what about the white water rafting the area was famous for, what of the youth who were making a living from entertaining the tourists, those who were guides? Before the dam was constructed, white water rafting was one of Uganda’s trademark adventure activities, attracting droves of tourists who enjoyed the thrills on the Bujagali Falls. The locals at the vicinity of the falls also therefore got the chance to make an extra buck; selling crafts, providing tourists with entertainment, guides, among other activities. Ever since the commissioning of Bujagali Dam, the falls have since flooded and the area has turned into a lake of sorts. Only few tourists go there mainly for quad biking adventures. However, all is not lost according to Dr. Emmanuel Beraho, the former Social and Environmental Manager of Bujagli Energy Project. He told East African Business Week there was an inventory and thorough survey that was carried out and that all the affected persons were properly compensated. “For the informal persons; the ‘jerrycan’ boys and those who had tourism as a mainstay, we gave them the chance to bring to us their proposals detailing whatever

BUJAGALI HYDRO-ELECTRIC DAM: The regulator says Uganda now has a reserve capacity of 100MW, but only for use as a last resort.

BENEFITS: Bujagali Energy Limited has built new schools and rehabilitated several health centres. they wanted to venture into and we compensated them. Some channeled their money into other activities like photography, others bought land, others purchased boats.” He added that for the formal companies, facilities were constructed downstream at Kalagala falls so as to ensure a seamless transition. Nile River Explorers, one of the companies that had a foothold in the area was given a luxurious cruise boat worth $100,000. This according to Beraho was to ensure that the reservoir that had flooded also becomes a tourist attraction and to also provide for luxurious boat cruises on the Nile River. “The Net effect of tourism in Jinja was not really affected. The white water rafting now starts downstream,” he maintains. Some of the operators have time and again protested against the move arguing that relocating the river entrance downstream has not really done enough to attract the numbers that made a beeline for the Bujagali falls. Moreover, with the proposed Isimba Dam, there is a possibility that up to 16 kilometers behind the dam could be once again turned into another mini lake, flooding rapids crucial to the rafting sport and potentially forcing these companies to close shop.

Several individuals involved in the rafting and kayaking business have warned that this could effectively kill rafting in Uganda, leading to a major loss of jobs and foreign exchange earnings, as tourists seeking such thrills would then divert their visits to Zambia and Zimbabwe where they can raft on the Zambezi River or the upper sections of Kenya’s Tana River or to South Africa’s white water rivers. On the other hand, Bujagali Energy Limited (BEL) has done commendable work in the community; equipping health centres, providing tap water, rural electrification, building schools, markets, fish farming projects among others. According to Beraho, the project injected Ush1b into equipping a community Health Center IV, a further Ush3 billion was injected into providing piped water to the nine villages located near the dam. There has also been semblance of rural electrification in the community. Budondo Health Center IV currently serves a population of 200,000 persons who previously trekked almost 20 kilometres to the Jinja referral hospital. Tenywa Sulaiman, the Local Council (1) Chairperson of Budondo Village told this newspaper that there has been an improvement in the livelihoods of the community as a result.

PHOTOS BY EMMA ONYANGO

He however notes that there is still ignorance among the population and because of this sometimes resistance is met especially when it comes to passing pipes over some people’s and its even dire when it comes to electric poles. Naminya, the village where the community that previously occupied the land where the dam is currently located was transferred to currently has a Primary and Secondary School that they are proud of. Naminya Roman Catholic Primary School for instance had a 100% pass rate in the recently released 2013 Primary Leaving Examinations (PLE) results. The Deputy Headteacher Peter Kasule explained to East African Business Week that the performance would have been better had it not been for some disruptions last year (National teachers’ strike). Only time will tell whether the Bujagali community and Jinja District that has in recent times been associated with White Water Rafting that attracted hordes of tourists to this Eastern Uganda town will also enjoy the advantages that come with increased power generation. But one thing is very obvious, the voices that were once vociferous agains the dam are heard no more!

FINANCE

East African Business Week I February 10 - 16, 2014

Investors Guide for Beginners n Stocks or shares are the bread and butter of investing. A share can be represented by a digital entry or certificate, or a in a stockbroker account. It represents ownership of a small piece of a business, which brings with it the entitlement to a share of any cash dividends paid out to investors, as well as a share of any of the assets left over if the business winds up.

Stock Market & Share Prices The entitlement of a shareholder to future dividends allows investors to place a value on the share itself. If a share is expected to receive $5 in dividends every year, then investors may be willing to buy that share for $50, in which case the $5 dividends would represent a 10% annual return on the price they paid. The stock market works in a way similar to an auction, whereby greater demand for a company’s shares will lead to a higher market price. Share prices move so often because investors’ expectations of future dividends and company profits are constantly changing. If good news emerges regarding the success of a new product launch, then investors will anticipate higher future profits than previously anticipated, and will be prepared to pay a higher price to own a single share. Therefore the stock market constantly reacts to all kinds of news that may affect companies, causing expectations to be revised, and prices to move accordingly. Risk of Shares Shares have the highest expected return of any major asset class, but they also present a high level of risk. If a company enters bankruptcy and stops paying dividends, then the company’s shares would become virtually worthless. This sounds like a rare nightmare

scenario, but given that roughly 4% of large companies become insolvent each year, this is a major risk for anyone holding shares. This risk can be reduced by holding a basket of many different shares in a fund or directly, (ie the Science of Diversification), but not all risks can be so easily avoided. For instance, bad economic news will cause share prices of all companies to fall, meaning a rough economic cycle can hit your share prices hard. Look at examples of well-known brands like Boeing of late… Within the stock market, different shares and funds will have different levels of risk and return. Not all shares are created equal. A share of British Telecom, for instance, would not be expected to move as volatile as a small oil exploration company which relies upon infrequent, large discoveries to continue to survive. Because the oil explorers dividends will be much more risky, the price of the shares will be lower to reflect this. This represents the opportunity for a much greater return on your investment if the oil explorer is successful. This is the basis of the close relationship between risk and return.

“

In Uganda, treasury bills are very low risk short term debt instruments regularly issued by Government through Bank of Uganda to the public.

Bonds What Types of Bonds do you get? Bonds come in various different forms. In essence they are an IOU from a borrower to a lender, with the promise to repay a fixed amount plus interest at a date in the future. From an investor point of view, these can be issued in many forms, and by many different types of institutions. Bonds are popular with investors as they provide regular and fixed income. Bonds are perceived to be lower risk than shares, but higher risk than bank accounts…although with things like the Cypriot debacle of late, this is also debatable. Bank Bonds Banks offer ‘bonds’ to savers, which act very much like a bank account. You deposit funds into the account and receive interest, usually at the end of a fixed period. By investing in such schemes, you’re not really buying a ‘bond’ in the proper sense, as you are unable to sell or transfers your bonds to others, which means you are unable to make capital gains on these accounts. What’s more, in the UK these bonds are also usually covered by the deposit protection scheme, just like any other savings account. As a result, you should not expect to receive any premium for taking risk with these investments. Government Bonds These are issued by the government at regular intervals to finance the public debt. These are understood to be the safest investments available in countries like the UK, as they are backed by Her Majesty’s Treasury, which can in theory always print money to pay the bonds back. In Uganda, treasury bills are very low risk short term debt instruments regularly issued by Government through Bank of

Uganda to the public. Treasury bills are usually issued with maturities of 91days, 182 days and 364days. Treasury bonds on the other hand are long term debt instruments also issued by the Government through Bank of Uganda to the investing public. Treasury Bonds are issued with maturities of 2, 3, 5and 10 years. In what denominations are Treasury bills or bonds Issued? Ugandan Treasury Bills or Bonds are issued in multiples of UGX 100,000 starting with a minimum of UGX 100,000.

Property Whilst shares are considered as the core investing category – property is in reality the most popular. This is because so many of us aim to own our own home, that we invest in property at an early age to ‘get on the property ladder’. The relatively high prices of housing in 1st world countries is pushing the average purchase age ever upwards, with recent price falls in 2009 and 2010 making little impact on the overall trend of house prices in the UK. The standard method of investing in property is to save a deposit of between 10% – 25% of the property’s full purchase price, and fund the gap with a secured loan known as a home loan or ‘mortgage’. Most of the bigger banks in Uganda offer Mortgage deals. Investing in a property in this way is a high risk activity from a finance point of view. Funding 75-90% of the house purchase with a loan means that house price changes will have a disproportionate effect on your actual equity (ownership value) in the house. For example if you put a $20,000 deposit down on a $100,000 house, and house prices fall by 10% to $90,000, you will only have equity worth $10,000 after the $80,000 mortgage value is deducted. In other

words, by only putting down a 1/5th of the purchase price in cash, you exaggerate returns by a multiple of 5 times, which can quickly lead to a buyer being in negative equity.

Offshore Savings Plans The vehicle and ‘all access pass’ to some of the best funds in the world ! As professional financial advisors we always recommend a good diversifying strategy. The chances that ALL asset classes will perform poorly all at the same time is virtually nil and so spreading your risk or “not putting your eggs into one basket” as it were, improves your chances for a return on investment. Beware of people or organizations, schemes etc. who promises to double your money in 6 months, as an example...it’s just not realistic. I personally put a big emphasis on Wealth Protection. Obviously we want to grow your portfolio, but with unit cost averaging, dollar cost averaging, TIME and professional portfolio management on your side we should be able to more than just beat inflation ! For a free financial planning consultation, be sure to contact me today. I am an experienced and CII (Chartered Insurance Institute of the UK) qualified advisor. Be sure to book a meeting with me this week or next and let me explain the various incredible options available to you…and lastly: Help Daniel not toil in vain and be so kind as to forward this email to a few people you think might have benefit in connecting with me. There are 10’s of 1000’s out there who need to hear the news, and YOU are connected to some of them. Thank you.

Daniel van Niekerk Investment Adviser – Africa

BUSINESS INFO

East African Business Week I February 17 - 23 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) 0 220 0 0 0 0 0 0 0 32922 N/A Feb 14 2014 KA 2660 2660 2660 2660 17260740 9 31100 64100 6489 133000 3857 Feb 14 2014 NMB 0 490 0 0 0 0 0 166500 0 3324 007% Feb 14 2014 DCB 0 2600 0 0 0 0 0 79500 0 46780 6925 Feb 14 2014 TWIGA 2700 2700 2700 2700 3453300 4 0 35100 1279 9720 6000 Feb 14 2014 SWISS 2440 2440 2440 2440 2440000 2 9400 0 1000 15536 6250 Feb 14 2014 SIMBA 8800 8800 8800 8800 29040000 2 8800 0 3300 88000 7500 Feb 14 2014 TCC 650 650 650 650 3640000 1 3300 0 5600 1161 4760 Feb 14 2014 TTP 8000 8000 8000 8000 13600000 2 10700 13300 1700 235943 6471 Feb 14 2014 TBL 310 310 310 310 310000 1 0 49500 1000 1154 263% Feb 14 2014 TOL 0 4660 0 0 0 0 0 0 0 368501 N/A Feb 14 2014 EABL 0 5740 0 0 0 0 0 0 0 34380 N/A Feb 14 2014 JHL 0 860 0 0 0 0 0 0 0 255449 N/A Feb 14 2014 KCB 300 300 320 300 10695000 21 823400 19600 35590 65296 1646 Feb 14 2014 CRDB 0 5810 0 0 0 0 0 0 0 109543 N/A Feb 14 2014 NMG 0 7340 0 0 0 0 0 0 0 301003 N/A Feb 14 2014 ABG 0 470 0 0 0 0 0 0 0 7542 3413 Feb 14 2014 PAL 0 600 0 0 0 0 0 0 0 544 000% Feb 14 2014 MBP KAMPALA - USE COMPANY Date DEALS SHARES VOLUME High (UGX) Low (UGX) Closing (UGX) TURNOVER (UGX) 0 0 0 0 1429 0 Feb 14 2014 ALSI 0 0 0 0 4050 0 Feb 14 2014 BATU 0 0 0 0 100 0 Feb 14 2014 BOBU 0 0 0 0 1091 0 Feb 14 2014 CENT 1 965 1190 1190 1190 1148350 Feb 14 2014 DFCU 0 0 0 0 7101 0 Feb 14 2014 EABL 0 0 0 0 941 0 Feb 14 2014 EBL 0 0 0 0 8727 0 Feb 14 2014 JHL 0 0 0 0 335 0 Feb 14 2014 KA 0 0 0 0 1305 0 Feb 14 2014 KCB 0 0 0 0 35 0 Feb 14 2014 NIC 0 0 0 0 8841 0 Feb 14 2014 NMG 0 0 0 0 600 0 Feb 14 2014 NVL 11 426550 30 30 30 12796500 Feb 14 2014 SBU 0 0 0 0 506 0 Feb 14 2014 UCHM 0 0 0 0 20 0 Feb 14 2014 UCL 6 77111 370 365 369 28485515 Feb 14 2014 UMEME 0 0 0 0 258 0 Feb 14 2014 USE LCI 18 504626 42430365 TOTALS KIGALI - RSE Date Security Last 12 Todayâ&#x20AC;&#x2122;s Prices Total Shares Equity Turnover (Rwf) Total Deals Change Months (Rwf) Traded in Rwf High Low High Low Closing Previous Today Previous Today Previous Today Previous Today Feb 13 2014 BOK 285 129 285 264 285 280 458400 162800 121480500 41741600 10 9 +5 Feb 13 2014 BLR 900 630 845 840 845 845 68700 45500 58039700 38409600 4 8 Feb 13 2014 KCB 185 135 185 185 100 18500 1 Feb 13 2014 NMG 1200 1200 1200 1200 1000 1200000 5 Feb 13 2014 USL 175 165 175 175 175 175 200 6400 35000 112000 1 1 -

Weekly Trends (EA Stock Exchanges) DSE ALL SHARE INDEX

USE ALL SHARE INDEX

1,950.00 1,940.00

141.4 141.2 141 140.8 140.6 140.4 140.2 140 139.8

1,435

1,890.00

NSE ALL SHARE INDEX

137.4 137.2

DSE ALL SHARE INDEX

1,880.00

1,425

1,860.00

137

USE ALL SHARE INDEX

1,430

1,870.00

PRICES AS AT

14-Feb-14

13-Feb-14

12-Feb-14

10-Feb-14

14-Feb-14

13-Feb-14

12-Feb-14

11-Feb-14

10-Feb-14

Financial markets Nairobi (NSE)

SECURITY

11-Feb-14

1,420

1,840.00

14-Feb-14

13-Feb-14

12-Feb-14

11-Feb-14

10-Feb-14

7-Feb-14

1,850.00

136.8

RSE ALL SHARE INDEX

13-Feb-14

1,900.00

137.6

12-Feb-14

1,910.00

137.8

1,440

9-Feb-14

1,920.00

138

11-Feb-14

1,930.00

138.2

8-Feb-14

138.4

RSE ALL SHARE INDEX

1,445

10-Feb-14

NSE ALL SHARE INDEX

PREVIOUS PRICE

% CHANGE

2800 12000 16000 62000 2750 1725 29600

000 000 000 000 000 000 000

4000 1350 1195 610

000 000 000 000

1655 10200 22000 3300 3325 12600 4575 3425 6000 28700 1770

000 000 000 000 000 000 000 000 000 000 000

435 2025 1180 1425 30900 5000 2825 4300 1730

000 000 000 000 000 000 000 000 000

9000 20700 8350 1585 7150

000 000 000 000 000

1180 945 1430 2225 1300

000 000 000 000 000

February 14 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

605

000

1945 1625 640 30000 1915 11500

000 000 000 000 000 000

3875 490 2900

000 000 000

1110 15100 54500 3900 24300 305 300 300 2200

000 000 000 000 000 000 000 000 000

955 1180

000 000

675 550

000 000

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

6977

9419

2490

836

252

- 110kg

12791

13605

15174

Irish Potatoes (White)

- 110kg

3721

1944

3565

Maize Grain

- 90kg

3488

3256

2099

Millet Grain

- 90kg

6977

8895

4447

Rice

- 90kg

10245

Sorghum Grain

- 90kg

4186

8372

2597

Soy Beans

- 100kg

5296

Sweet potatoes

- 98kg

3721

1163

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 193710 322450 01849 03107 02251 NAIROBI (Ksh) 862917 1436435 1180212 78134 284281 187361 77952 178595 234922 08494 13840 230087 142346 DAR ES SALAAM (Tsh) 1,617.6321 2,690.2855 2,210.0098 15.8576 25.9132 145.8863 440.4057 431.3283 18.7442 0.6538 2.3774 1.5469 KAMPALA (Ush) 2,463.4800 4,098.2450 24.1150 3,366.3450 28.5150 128.2700 3.6335 1.5850 1.5160 12.2850 223.5050 KIGALI (RwF) 667.8237 110.1783 902.7640 1,089.2204 6.5802 0.4358 35.6270 0.4214 0.2740 0.2727 179.7961 10.5640 176.0802 59.3735 BUJUMBURA (FBu) 15.1160 1,543.8000 2,565.7956 2,101.5749 17.8888 140.2052 0.9500 0.6255 2.2770

Buying 191792 319257 01831 03076 02229

Selling 195628 325642 01868 03138 02274

864639 1439539 1182778 78739 285891 188894 79034 181269 235417 08500 13884 230552 142642

863778 1437990 1181490 78437 285086 188128 78493 179932 235170 08497 13862 230319 142494

1,609.5842 2,676.5775 2,198.8529 15.7802 25.7864 145.3940 438.2206 429.1881 18.6727 0.6486 2.3463 1.5411

1,625.6800 2,703.9935 2,221.1666 15.9349 26.0400 146.3785 442.5907 433.4684 18.8157 0.6590 2.4084 1.5527

2,458.8600 4,090.5600 24.0700 3,360.0300 28.4600 128.0300 3.6270 1.5820 1.5130 12.2620 223.0900

2,468.1000 4,105.9300 24.1600 3,372.6600 28.5700 128.5100 3.6400 1.5880 1.5190 12.3080 223.9200

674.2288 111.2350 911.4226 1,099.6672 6.6433 0.4400 35.9687 0.4255 0.2767 0.2701 181.5206 10.6654 177.7690 59.9430

680.6340 112.2918 920.0811 1,110.1141 6.7064 0.4442 36.3104 0.4295 0.2793 0.2753 183.2450 10.7667 179.4578 60.5124

14.9951 1,531.4496 2,545.2692 2,084.7623 17.7457 139.0836 0.9424 0.6205 2.2588

15.2370 1,556.1504 2,586.3220 2,118.3875 18.0319 141.3269 0.9576 0.6305 2.2952

EAST AFRICAN BUSINESS WEEK

FEB 10 - 16, 2014

TENDERS

East African Business Week I February 17 - 23, 2014

TENDERS, JOBS & CONSULTANCIES UGANDA

RWANDA

TANZANIA

TENDERS

Tanzania Port Authority invites sealed bids from eligible service providers for provision of maintenance services for radios and radar equipment. Deadline: Feb 27, 2014.

The Rwanda Biomedical Centre/Medical Procurement and Production Division invites qualified bidders to submit bids for the SUPPLY OF PHARMACEUTICALS AND HEALTH PRODUCTS for a period of 3 years. Well printed bids in English or French, properly bound and presented in two (2) copies and one (1) mandatory softcopy of price schedule in 2 DVDs recordable, and one original must reach the reception of MPPD not later than 03/April./2014 at 9:00 am, local time (7 am GMT).

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.

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. 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.

The Ministry of Defence invites qualified bidders to submit bids for the following tender: a. Tender for the supply of medical supplies. b. Tender for the supply of construction materials. c. Re-launch of the tender for the supply of generator spare parts. d. Re-launch of the tender for maintenance of laundry equipment. 2. Bidding document may be obtained from the Ministry of Defence’s Procurement Office PO Box: 23 Kigali-Rwanda; Tel: 0788478908; E-mail: pu@minadef.gov.rw, emmanuel.rutebuka@minadef.gov.rw upon presentation of proof of payment of a non refundable fee of Ten thousand Rwandan Francs (10,000 Rwf) for each tender on Account Number 120 00 46 (NFRA) in BNR.Well printed bids properly bound must be submitted in 04 copies. The submission of bids in sealed envelopes must be addressed to the Ministry of Defence’s Procurement office before 14h00 pm local time on 5/3/2014. The Rwanda Biomedical Centre/Medical Procurement and Production Division 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.

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.

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.

Source: East African Business Week

Source: East African Business Week and The EastAfrican

CONSULTANCIES Tanzania Port Authority invites sealed bids from eligible service providers of insurance brokerage service. Contact: The Secretary, Central Tender Board, Tanznaia Ports Authority, P. O. Box 9184, Dar es Salaam. Deadline: February 27, 2014.

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

East African Business Week I February 17 - 23, 2014

MTN Rwanda ponders $20m future costs of maintaining the infrastructure and enable MTN to focus on providing its products and services,” he said. He said the latest deals are testament to their commitment to client service, enabling the most efficient, effective and reliable networks for our clients. Last year, Rwanda’s telecom industry realized a 25% year on year decline in revenues as a result of the tariff cuts the telecoms undertook with the completion growing. But all the three telecom firms are upbeat that they will attract more subscribers. They argue that a new wave of applications and ‘mash-ups’ of services, driven by high-speed networks, social networking, online crowd sourcing and innovation, will help them achieve this target. Mobile phones are increasingly being used to carry out financial services, which have transformed the lives of the rural masses.

BY EABW REPORTER nKIGALI, Rwanda- MTN Rwanda will invest $20 million in its infrastructure and service delivery as the competition in the industry heats up, Ebenezer Asante, the firm’s chief executive officer said recently. Speaking during a news conference, Asante said the company, in spite of having invested over Rwf130 billion ($193.6 million) over the past five years in its internet, mobile money, voice and non-voice platforms, more investment is required if they were to achieve sustainable growth. “The market is very small, but still presents a lot of potential which requires more investment,” he said. According to statistics from the Rwanda Utilities Regulatory Agency (RURA), MTN Rwanda’s subscribers increased to 3,556,497 as of end December last year up from 3,454,270 end January in the same year, a five per cent growth despite challenges in SIM card registration that saw the leading telecom company switch off over 80,000 unregistered customers between August and December. The firm remains ahead of the pack, with figures showing that Rwanda’s mobile penetration rate stands at 63.5% or 6,689,158 subscribers in December, with Tigo and Airtel having 2,175,127 and 957,534 subscribers respectively. Asante said to achieve sustainable growth, the company will focus on customer satisfaction through efficient distribution, good network quality, brand preference, voice and

“

HEADQUARTERS: MTN says its transacted value stands at Rwf100 billion since the inception of mobile money services in 2010. data services, employing experienced service providers, effective market segmentation. He said the new investment will mainly boost their goal of providing an all-round digital experience especially in areas like mobile money, internet

and enterprising services that are becoming more profitable in the industry. MTN says its transacted value stands at Rwf100 billion since the inception of mobile money services in 2010.

Using SMS to halt banana wilt nKAMPALA, Uganda-- Imagine yourself living in Uganda, a landlocked country in East Africa, where more than 14 million people eat bananas almost daily. In fact, as a resident in Uganda, chances are you and everyone you know is consuming 0.7 kilogrammes of bananas per day. Citizens of no other country in the world eat more bananas than Ugandans. But suddenly, bananas, your staple food, are under threat. Banana bacterial wilt (BBW), a disease, is attacking bananas. It has already destroyed 90% of bananas on some farms. BBW is known to spread rapidly via soil and other plants, and it can cause total crop loss within a year. Not to exaggerate, but this could be a disaster for Uganda. The bacteria needed to be stopped immediately. That’s what Lyudmila Bujoreanu, an information and communications technology consultant at the World Bank, thought when she found out about bacteria destroying bananas. She started to explore solutions that would save the staple food. She found out about U-report, a communications technology developed by UNICEF Uganda to “give young Ugandans a voice on issues they care about.” There are more than 240,000 U-reporters and the number is growing every day. You just have to text “join” to 8500 in Uganda to become a U-reporter. Bujoreanu and the team reached out to UNICEF to see if U-reporters can help “visualize the BBW epidemic and disseminate information to affected communities.” Then she and her colleagues launched a five-day campaign with UNICEF and others to save bananas. The first SMS was sent on March 26, 2013 to almost 190,000 U-reporters with a question: ‘Do you know any farmers whose banana plantations or crops are infected

TEXTING: The first SMS was sent on March 26, 2013 to almost 190,000 U-reporters with a question: ‘Do you know any farmers whose banana plantations or crops are infected with banana bacterial wilt disease? YES or NO’ with banana bacterial wilt disease? YES or NO’ Within 24 hours, responses from over 35,000 U-reporters helped track the spread of BBW across Uganda. In days that followed, SMSs were sent out to inform U-reporters about BBW and how to control it. Within just five days, 190,000 Ugandans learned about BBW and what they can do to save bananas on their farms. Using U-reporters to save bananas was a simple, effective, and cheap solution. It only costs 3 U.S. cents per person for each SMS. If BBW had destroyed bananas in Uganda, the country could have lost $360 million per year. World Bank

He said 140 towers had been set up in the hilly western region of the country, but in a bid to cut its operational costs, the company sold all its towers in the country to IHS Holdings in December last year. “The deal will unlock value, reduce

“The market is very small, but presents a lot of potential which requires more investment,” he said.

UN agency says mobile money can be improved nPARIS, France--Mobile money – the use of cell phones for money transfers, payments and more sophisticated financial activities such as credit, savings, and insurance – is increasingly popular in East Africa. The United Nations Conference on Trade and Development (UNCTAD) in its latest report says that while it offers the potential for increased financial inclusion, mobile money could benefit from region-wide rules to coordinate and harmonize regulations. The report, ‘Mobile Money for Business Development in the East African Community: A Comparative Study of Existing Platforms and Regulations’, focuses on the East African Community as a way of addressing wider issues raised by mobile money. The study is of high relevance also to countries beyond East Africa. According to the GSM Association, which tracks mobile money deployments around the world, more than half (118) of the world’s known mobile money systems had been implemented in Africa as of January 2014. As many as 37 of them, were in 18 French-speaking countries. UNCTAD stresses that ensuring mobile money services bring the desired broad benefits - especially

to the poor - will require heightened coordination and cooperation across various regulatory and market sectors, such as telecommunications, banking and electronic commerce. Building consumer confidence and trust in the systems is essential, the report says. Steps are needed to address concerns related to consumer protection, registration and transaction limits, regulatory collaboration and interoperability, meaning interconnection between telecommunication networks. Nearly seven-in-ten Kenyans (68%) who own a cell phone say they regularly use their mobile device to make or receive payments. Half in Uganda say this as well. Meanwhile, even though only 29% of mobile owners in South Africa and 24% in Senegal say they use their phones for monetary transactions, these are still among the highest percentages across all the countries surveyed. Only in Russia (24%) do as many cell owners use their device for such purposes. In the 18 countries surveyed outside of sub-Saharan Africa, a median of only 8% use their cell phones for making and receiving payments.

HEALTH

East African Business Week I February 17-23, 2014

Eight ways to lose weight easily n Weight is an issue for more people today than it ever was. More people have quick access to foods that are cheap, easy to get, and full of fat and other harmful ingredients. As a result, more people weigh more now than ever before. It can be hard to make a change to lose weight and become healthier. There are a few things that people can do every day to lose weight more easily to keep them motivated to doing more. Start moving more every day. Just a half an hour every day for a week is going to get the body prepared to start moving more. Increase this amount of time every week for a month. You will start seeing the results of your extra movements when you realize that you can do it a little easier each time. Your muscles will start to tone and you will use up more of your caloric intake. Choose healthier eating options. Instead of a handful of chips, choose a handful of carrots. Replace a soft drink with a glass of water a day. Eat fresh fruit instead of a couple of cookies. Changing things here and there is a lot easier than changing everything at once. You can still stay have a treat now and then. You just need to limit your portions and how often you allow yourself to indulge. Set small goals for yourself instead of unrealistic ones. If you think you are going to lose a significant amount of weight in just a short amount of time, you are setting yourself up for disappointment. That disappointment will make you give up your dreams of weighing less. Instead of making unrealistic goals, make short and attainable ones. Join a support group or try to lose weight with a friend. Studies have shown that trying

to lose weight with someone else helps a person to lose weight faster. If you try to lose weight with someone else, you can encourage each other to keep going when you do not feel like sticking to your goals. Keep a journal of your eating and exercising habits. This allows you to see exactly what you have been doing and how hard you have worked to get as far as you have. You can always refer back to the journal to see how far you have come. You do not want to give all of that effort up with a huge meal or snack splurge. Looking at your journal when you have a craving can be a deterrent for making mistakes. If you lose sight of your goal one day, get back on track after you have made a mistake. Even if you do make a mistake, it is not the end of your attempt to lose weight. You can still get back on track that very same day to ensure that your diet doesn’t go down the drain. Everyone makes a mistake once in a while, but that does not give them license to give up altogether. Tell important people about your attempt to lose weight. Telling people who mean something to you puts you personally accountable for your weight loss efforts. You don’t want to disappoint anyone if you stop trying to lose weight, so you will be less likely to quit so easily. Remember that you will not likely lose a lot of weight right away. Do not give up your efforts to lose weight just because success didn’t happen overnight. Do not try and deceive yourself: losing weight takes a lot of hard work and dedication. Stick with it and you will see results eventually.

EzineArticles.com

Simplified ways to loss weight n It can be extremely overwhelming trying to learn about weight loss. No matter which way you turn, someone is telling you about a “miracle pill”, a new machine, some sort of gimmick that guarantees quick weight loss with little to work on your part, other than paying them. There is literally thousands of diet plans that claim they are the best. None of that is necessary. Weight loss isn’t as complicated as the health and fitness industry wants you to believe. Here is the simplest way that I can explain how it really works. Calories = Energy Fat = Stored Energy So, if you want to lose energy, you simply need to burn more energy

than you take in. There are 3 healthy options for doing this.

Take in less calories (energy). Your body needs a certain amount of energy to function throughout the day. If it is not getting enough from the food that you are taking it, it takes it from your energy storage, which is fat. A lot of people decide to take this too far and starve themselves, That is an extremely unhealthy decision. Your body needs certain nutrients to function properly, and you need to eat to get them. You may lose weight if you stop eating, but you will do more harm than good form your body.

Use more energy. The more physical activity that you do (exercise), the more your body will need to tap into your stored energy. People always want to know what the best exercise that they can do it. My answer is simple. The best exercise for you is the one that you will do. If science proved that running was the best exercise, but you refuse to run, running isn’t the best exercise for you. Combine exercise and proper nutrition. This is the most efficient way to lose weight. By reducing the amount of energy that you take in, along with burning more of your stored energy

by exercising, you will get maximum results. Also, this combination is the most efficient way to improve you health. The exercise will not only help you lose weight, but it improves your heart and lung health. Eating healthy will give your body the nutrients it needs to function properly, along with reducing the amount of energy that your body stores. Too many people look for a magic pill that will help them lose weight. Weight loss pills do one of two things. They either flush out your body’s water weight, which is extremely unhealthy, or they increase your heart rate to speed up your metabolism, which is also unhealthy.

EzineArticles.com

“

Your body needs a certain amount of energy to function throughout the day. If it is not getting enough from the food that you are taking it, it takes it from your energy storage, which is fat.

LIVING

East African Business Week I February 17-23, 2014

Nommo Gallery aims for better BY WINNIE MANDELA

merged with the national theatre.

n KAMPALA, Uganda–Uganda’s national gallery and component of the Uganda National Cultural Center (UNCC) Nommo Gallery, is a haven for many visible artists in Uganda. It has enabled artists catalogue the works that speak mostly of the diverse cultures. The gallery boasts of impressive art masterpieces from paintings, batiks (tie-and-dye), ceramics, art prints, photographs and sculptors, among others. About two weeks ago, the Gallery got a new manager Kayira Franco Owendogambitwo. He spoke to East African Business Week reporter Winnie Mandela. Here are the excerpts.

Qn: What immediate plans do you have for Nommo Gallery? Answer: Some of my immediate plans include uplifting the standards of the gallery. I intend to uplift and improve the structure and image of the gallery. I also intend to bring fine artists of all generations together including the ones studying it at institutions so that we can find avenues of improving quality of Fine Art generally in Uganda. Thirdly, I intend to popularize the national gallery because the public needs to know, visit and take pride in the national gallery. I call upon artistes to venture into drawing more unique art works so that they can persuade the public into connecting with the gallery. I also intend to introduce new African fashions and exhibiting them at the national theatre for the general public to view and also construct a craft shop to boast the gallery’s income.

Qn: Tell us a little more about yourself. Anwers: I am a professional artist with a bachelors degree, postgraduate diploma and masters degree in Fine Art. I am a teacher of Fine Art at several institutions that include Michael Angelo School of Creative Arts that was once affiliated to Kyamboggo University, Buganda Royal Institute, Mutesa I University and St.Lawrence University. I am currently the new Manager of Nommo Gallery under the Uganda National Cultural Centre. The Uganda National Cultural Centre is part of the Ministry of Gender, Labour and Social Development

Qn: What is your long term vision and mission for the gallery? Answer: As a company, we intend to improve Fine Art to compete with International Art and expose Ugandan Art far beyond Africa. The aim is to find market for Ugandan Art so that through art pieces the different people around the globe can appreciate Uganda’s culture. We intend to introduce school

programmes and move to the different schools teaching about the importance of Fine Art. The aim is to ensure that Fine Art is taken serious from the grass roots. In rural and urban schools at Primary Level, Secondary Level, Vocational Institutions and Institutions of Higher Learning. We shall hold workshops to bring together artists in Uganda, East Africa, and Africa and beyond so as to promote, develop, conserve and present the rich cultural heritage of Uganda through the visual arts and also exhibit the special. Nommo gallery also expects to collect arts of all generations and gather them together for future reference just like it’s done in a museum. Qn: Nommo gallery has been over shadowed by other cultural places, do you think it still has any relevance? Answer: Being a national gallery, I think it still has relevance although it needs uplifting in quality of art work produced. The gallery also offers industrial training to fulfill its educational role. It carries out industrial training with students from Uganda’s institutions of higher learning and universities. The gallery designed programmes such as Child Art Programme and plays its social responsibility role by working with other organizations on developmental projects like anti-corruption and anti-malaria, to

mention but two. It also coordinates with other countries through their embassies to promote culture. Qn: Why do you think Ugandans don’t appreciate Fine Art as opposed to say music? Answer: Lack of popularity especially of artists and art work made in Uganda especially since most Ugandans have the mentality that imported things are better than the locally made ones. Besides that, as the global economy goes through turbulent times, it is becoming clear that art is regarded as one of the few investments which people regard as a safe bet. But, there’s more to Fine Art than money, despite the relationship the two are often seen as having. Artiste’s unwillingness to scale up their creativity has led to lack of appreciation of their work. Much of the work displayed is duplicated so we lack originality. Artists need to create their own art works. Most people pursue Fine Art at school for the purpose of passing to the next level. There is a perception that in Fine Art students do not have to read. The attitude of pursueing Fine Art for the love of it has fadded. The existing lack of love for art among Ugandans coupled with the cost of Fine Art pieces forces people to shun Fine Art. Qn: Can one earn a living from fine art in Uganda?

Answer: Yes. One can earn a living from Fine Art especially if they learn to diversify and produce trendy pieces of art rather than sticking to old fashions that may not be relevant to a given situation in time. Qn: In your opinion what should the government do to scale up Ugandan Fine Art? Answer: The Government should learn to appreciate art more by setting a good foundation of Fine Art studies at the lower levels of education and by constructing well equipped art studios just like it does with the science laboratories. Government should also appreciate the already existing artists by recognizing their efforts and giving them more support financially.

“

The gallery offers industrial training to fulfill its educational role. It carries out industrial training with students from Uganda’s institutions of higher learning and universities.

LIVING

East African Business Week I February 17 -23, 2014

Man versus plane

BUSIWEEK PUZZLE

8 2

4 9

13 14

22 24

23 25

27 28

34 37

42 44

SET GO: British Airways launched an international competition between 5 amature athletes and the new A380 aeroplane.

n DURBAN, South Africa An extraordinary race unfolded at Durban’s King Shaka International Airport on Monday 3rd February as four amateur athletes and a local sport radio presenter vied to emulate Springboks and Toulon Rugby player Bryan Habana’s sprint against a British Airways’ A380 and a chance to win the trip of a lifetime. Last year, Bryan Habana’s incredible Man vs Plane race, grabbed international attention, generating almost 2 million online views and rating as one of the top 10 most watched YouTube clips in South Africa. This prompted British Airways to launch an international competition to find people who would take up the challenge, to pit their physical prowess against its largest and most modern aircraft. “Last year I accepted the challenge to race British Airways new A380 and won, but it wasn’t easy,” says Bryan Habana, “To take this on, the runners need to be physically fit and have plenty of strength, stamina and speed.” The competitors were selected from thousands of entries through a competition hosted on ba.com. They were flown to Durban, where they were hosted over the weekend by Tourism KwaZulu Natal. Watched on by Rugby legend and local hero Bry-

an Habana and the world’s media, the runners from the UK, France, Israel and South Africa each took their turn to race the plane over 200m on a wet taxiway, parallel to the runway. Under starters orders, each runner gave all their might, as they faced the A380’s four Rolls Royce Trent-900 engines, each generating over 70,000 pounds of thrust. In the end, there could be one winner, 23 year old Project Manager from Cape Town, Rudolph Raath took the crown to become the fastest runner on the day, with a time of 23.800 seconds. Raath wins two Club World return tickets on one of British Airways’ A380 direct flights to London, Los Angeles, Hong Kong or Johannesburg. British Airways Man Vs Plane was designed to showcase the incredible capability of the human mind, body and soul. In the end, the power of the

“

Under starters orders, each runner gave all their might, as they faced the A380’s four Rolls Royce Trent-900 engines, each generating over 70,000 pounds of thrust.

A380 was too much for the competitors, as it took the chequered flag on each of the five individual races. About the runners: Rudolph Raath, 23, has the closest to home ground advantage. A Capetonian who played first-team rugby, water-polo and cricket for Fish Hoek High School, now works as a project manager for a roofing contractor. Since school Rudolph has completed six Argus Cycle Tours and is training for a seventh this year. He shares a passion for travelling with his girlfriend. Before the race he said “I’m absolutely thrilled to be racing against British Airways’ new A380 super-jumbo. It’s so unreal - bring it on!” Elliot Havakuk, 35, has dual Israeli and British citizenship, is self-employed and assists companies in the environmental sector, including some involved in developing agriculture, water access and energy supply in Africa. A keen sportsman, Elliott has had six knee operations as a result of football injuries, but is now lean and fit. Heidi Hawkes, 30, works in the security industry and is due to get married next year. She was overwhelmed to hear that she had won a place in the race. Julien Maderay, 33, is a French Air Force officer, based in Brussels. He thought the idea was crazy, but his friends convinced him to enter.

He was shocked to win a place in the race and immediately began a 10-day training regime to improve his chances. Also pitting his skills against the British Airways A380 aircraft, not to win the tickets, but just for the thrill of trying, was former Sharks Academy rugby player and East Coast Radio’s breakfast sports reporter, Mak Dlamini. The British Airways A380 has been at Durban’s King Shaka International Airport since 27 January for flight crew training. The airline will begin scheduled A380 flights to South Africa on 12 February, with three services a week. This will increase to six in March and together with its 747-400 services the airline will offer two flights a day between London and Johannesburg. It also flies twice daily to Cape Town. About British Airways British Airways, part of International Airlines Group, is one of the world’s leading global premium airlines and the largest international carrier in the UK. The carrier has its home base at London Heathrow, the world’s busiest international airport and flies to more than 70 different countries. In 2012, the airline carried more than 37 million customers. The airline currently has a fleet of more than 270 aircraft’s. Agency

ACROSS

DOWN

1. Cut up for examination (7) 5. Dwell permanently (7) 9. Exude/flow slowly out (4) 11. Study of animals and their behavior (7) 13. Get better (6) 14. Personal computer (2) 15. Well known for being bad (8) 20. Not able (6) 22. National Resistance Army (3) 24. Compass point (5) 25. Gross Domestic Product (3) 27. Vegetable plant (4) 28. Goat’s young (3) 29. Human Resource (9) 32. Misnomer, another name (5) 33. Examination of business

2. Look for talent (5) 3. The self (3) 4. Play thing (3) 5. Save from danger (6) 6. Murders several people in a similar way (6,6) 7. Not night (3) 8. Tell someone to go somewhere (4) 10. Zambia Associated Publisers (3) 12. Smile widely showing teeth (4) 16. Uganda’s president after independence (5) 17. Promises of truth telling (5) 18. Pressing (6) 19. Not happy (3) 21. Defect through which was lost (7) 23. Offer especially of price (3) 26. Kings home (6) 29. Illegal hunter (7) 30. Clear/relieve of (3) 31. Choice/preference (6) 35. Underground waste channels (5)

records (5) 34. Opening/window on hinges (8) 37. Accustom to danger hardship (5) 38. Wrong/make mistake (3)

SOLUTION TO BUSIWEEK PUZZLE

MU S E K T 8 A R AB P 10T A I R S 12 P I T Y I 16 A UC T B S 20 U A 23 S T A B I B 26 V E N O E T 1

V E N I M E 9 S P E T E R I T A N Y C 13 14 B E HA R S 17 S N O I T I 21 H G L E N 24 25 L U R E 27 M F D O

P HA E R S I S G 11 H E T T 15 V E D 5

S E I T U A L T I N O N

U R E 19 I E 22 OV E R NS E I O V N E E OW R Y R 18

SPORTS

East African Business Week I February 17 - 23, 2014

Schools benefit from Cranes CHAN goals BY EMMA ONYANGO

nKAMPALA, Uganda -

When Uganda’s national soccer team, the Cranes traveled to South Africa to participate in the African Nations Championship (CHAN) last month, the nation was hoping the team would emerge with a decent result. However, there was another group of individuals that was hoping that the team would notch as many goals as they could. This is because every goal scored would go a long way in ensuring that a Primary School somewhere in the country would receive funding for their sports development. The goals for goals initiative that was launched by Airtel, the official sponsor of the Cranes aims at impacting the lives of children in Uganda by improving and supporting Primary Schools across the country. Prior to the tournament, the telecom operator pledged to offer Ush2m to Primary Schools in Uganda for every goal the team would score at the CHAN tournament. The Cranes indeed managed to better their 2011 performance where they exited the tournament with a solitary goal; this time they notched three: a 2:1 win over Burkina Faso, a stalemate against Zimbabwe before bowing out of the tournament after a 3:1 defeat at the hands of Morocco. Speaking during the hando-

AFRICA RED 45009 As seen on DStv

ENGLISH FOOTBALL – PREMIER LEAGUE Sat, 22 Feb

Chelsea vs. Everton

14h00

Sat, 22 Feb

Manchester City vs. Stoke City

16h45

Sat, 22 Feb

Arsenal vs. Sunderland

16h50

Sat, 22 Feb

Crystal Palace vs. Man. United

19h00

Sun, 23 Feb

Liverpool vs. Swansea City

15h00

Sun, 23 Feb

Newcastle United vs. Aston Villa

15h20

Sun, 23 Feb

Norwich vs. Tottenham Hotspur

17h30

SS3/SS3N SS3N /Select2 SS5HD/SS5 SS3N/Maximo2 SS3N/Maximo SS5/SS5N SS3HD/SS3

SPANISH FOOTBALL – LA LIGA Mon, 17 Feb

Malaga vs. Real Sociedad

22h55

SS5/SS5N

Sat, 22 Feb

Real Madrid vs. Elche

16h55

SS7/SS7N

Sat, 22 Feb

Real Sociedad vs. Barcelona

20h55

Maximo

Sun, 23 Feb

Valencia vs. Granada

19h55

Maximo

Sun, 23 Feb

Osasuna vs. Atletico Madrid

21h55

SS3N/Maximo

ITALIAN SERIE A

Officials from FUFA and Airtel during the handover of the money in Kampala last week. ver of the money and sports kits to St.Ponsiano Kyamula Primary School at the Airtel Head Office in Kampala last week, Arindam Chakrabarty, the Chief Commercial Officer of the telecom explained that the money would be channeled towards improving sports infrastructure in the school. “Education is the bedrock of development…through this initiative, we wanted to contribute to both the social and economic development of our country. We know this is not sufficient enough but we still believe that it will make a difference, however small it may be.” He also added that the Goals for Goals initiative will be an ongoing activity and

will apply to all the Uganda Cranes International engagements. The funds raised will be channeled towards building sports infrastructure in a primary school adopted by Airtel under the ‘Adopt-ASchool’ campaign. Chakrabarty clarified, “We could increase the number of schools to benefit from the initiative as and when the national team scores more goals.” Edgar Watson, the Federation of Uganda Football Association CEO said that the Goals for Goals campaign gives football a social nature and also helps the players contribute sports development. “When a player scores, it not only helps us on the

pitch but also supports the foundation of sports development. For us, that is a good compounding effect. So it is a challenge to the footballers to score more goals and benefit society. The Airtel Rising Stars initiative is now being felt on the national team,” he said. Uganda Cranes Head Coach, Milutin Sredojevich told the East African Business Week that the initiative will help Uganda build future athletes. “I think we are killing two mosquitoes here; first we are making the nation happy by scoring goals, then we also have the chance to build for the future. So I think it is a good idea and we are happy to be part of it.”

EA FIFA rankings yet to improve nKAMPALA, Uganda - According to the latest FIFA rankings, East African teams are yet to make significant leaps, with a number of them losing ground. According to the rankings released last week, Rwanda dropped four spots to 134 from 130 with 195 points in the world, while the team

LIVE TV GAMES

is ranked at position 39 in Africa. Uganda on the other hand despite bowing out at the group stages of the recently concluded African Nations Championship (CHAN) in South Africa, remains the top ranked team in the region at 84 in world and18th on the continent. Ethiopia dropped six places

to 101st in the world and 28th in Africa, while Kenya moved up one spot to sit at 108th position in the world and 31st in Africa. Tanzania, Sudan and Burundi, ranked at 116th, 123rd and 124th respectively all come ahead of Rwanda in the monthly world rankings. In Africa, Côte d’ Ivoire remains the top footballing

nation followed by Algeria, Cape Verde Islands, Ghana and Egypt. Spain, Germany and Argentina retained first, second and third places respectively, while Switzerland (6th, up 2) leapfrogged Uruguay and Italy.

Sat, 22 Feb

Bologna vs. Roma

21h40

SS7/SS7N

Sun, 23 Feb

Inter vs. Cagliari

15h55

SS7/SS7N

Sun, 23 Feb

Juventus vs. Torino

19h25

SS7/SS7N

Sun, 23 Feb

Lazio vs. Sassuolo

21h40

SS7/SS7N

GERMAN FOOTBALL – BUNDESLIGA Fri, 21 Feb

Schalke vs. Mainz

21h00

SS3N/Maximo

Sat, 22 Feb

Wolfsburg vs. Bayer Levekusen

19h25

SS7/SS7N

Sun, 23 Feb

Ein. Frankfurt vs. Werder Bremen

16h25

Maximo360

Sun, 23 Feb

Hannover vs. Bayern Munich

18h25

SS5/SS5N

FA CUP Mon, 17 Feb

21h40 SS3/SS3N

Brighton vs. Hull City

UEFA CHAMPIONS LEAGUE Tues, 18 Feb

Manchester City vs. Barcelona

Tues, 18 Feb

Bayer Leverkusen vs. PSG

Wed, 19 Feb

Arsenal vs. Bayern Munich

Wed, 19 Feb

Milan vs. Atletico Madrid

21h00 SS3N/Maximo 21h00 SS5/SS5N 21h00 SS3N /Select1 21h00 SS5/SS5N

UEFA EUROPA LEAGUE Thur, 20 Feb

POAK vs. Benfica

Thur, 20 Feb

Dnipro vs. Tottenham Hotspur

Thur, 20 Feb

Juventus vs. Trabzonspor

Thur, 20 Feb

Swansea vs. Napoli

Thur, 20 Feb

Porto vs. Eintracht Frankfurt

Thur, 20 Feb

Ajax vs. Red Bull Salzburg

19h30 Maximo 19h55 SS3/SS3N 19h55 SS7/SS7N 22h00 SS3/SS3N 22h00 SS5N/Maximo 22h00 SS7/SS7N

FIFA

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

BUSINESS DIGEST

East African Business Week I February 17 - 23, 2014

Don’t play down Accountants PAGE 13-14

Mastering the SWOT analysis

PAGE 15

Kenya to revamp dry ports BY HUMPHREY LILOBA nNAIROBI, Kenya– The government has embarked on an ambitious programme to refurbish and increase capacity at the dry ports to cater for the increasing cargo volumes to the region. Kenya Ports Authority (KPA) has unveiled a three year plan to expand and spruce up its dilapidated dry ports in Nairobi and Kisumu. The urgency is due to a decision by the government to build a new standard gauge railway (SGR) which is expected to sharply increase transit cargo with the main drop-off points being Nairobi, Kisumu and Malaba. KPA plans to expand its current holding capacity in Nairobi Inland Container Depot (ICD) to accommodate an extra 100,000; 20-foot containers to tap into the anticipated opportunities after the launch of the SGR. “We are alive to the fact that our port capacity as it is now cannot handle large volumes of cargo. As we shift attention from road to rail, we want to make sure the dry ports along the railway are spruced up and ready for the expected influx of cargo. We

“

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

Mungatana said the the dry ports along the railway should be spruced up and ready for the expected influx of cargo. want to address any hindrances that may come in the way of free trade in the region,” said KPA Chairman, Danson Mungatana while addressing the media in Mombasa. Inefficiencies at KPA has seen the authority lose billions in revenue and big spenders like coffee, tea and sugar firms diverted

from rail to road transport. This is the market that the authority is keen to recover in its latest attempt at capacity building and infrastructure enhancement. The last 20 years have seen the percentage of cargo transported from the port of Mombasa by train drop

Israel offers Tz taxation expertise BY LEONARD MAGOMBA nDAR ES SALAAM, Tanzania– Israel has invited Tanzania to share experience on the taxation system for the oil and gas sector. Israel said, they have a vast experience in how to collect tax and share the nation’s wealth between the investors and government. According to Israel’s Ambassador to Tanzania, Uganda, Kenya and Malawi, Gil Haskel, their understanding come from experience they acquired since they discovered natural gas in Leviathan. Leviathan Natural Gas Field, located in the eastern Mediterranean Sea area, off the coast of Israel, was discovered in December 2010. Production is expected to commence in 2017. At the time of discovery, the Leviathan gas field was the most prominent field ever found in the

sub-explored area of the Levantine Basin, which covers about 83,000 square kilometres of the eastern Mediterranean region. According to Ambassador Haskel, Tanzania could learn a lot on how to collect tax from the oil and gas marketing companies. “We want to share experience with Tanzania in the area of taxation…we want to tip them (Tanzania) on at what extend should tax be collected,” Haskel told East African Business Week in Dar es Salaam last week during the exclusive interview. Tanzania expects its gas resources to increase fivefold within the next two years if new finds in east Africa’s second-biggest economy prove productive. t is expected that Tanzania’s natural gas resources will rise to 200 trillion cubic feet after the next two years. Discoveries offshore of Tanzania and Mozambique’s waters

have led to predictions that the region could become the world’s third-largest exporter of natural gas, with the country strategically located for exports to Asia. The country has previously estimated it has 43.1 trillion cubic feet (tcf) of recoverable natural gas reserves, most of it found offshore south of Tanzania. Minister for Energy and Minerals, Prof Sospeter Muhongo was recently announced that the exploration companies planned to drill 17 new wells in the country during the 2013/14 (July-June) fiscal year at a cost of at least $680 million. While as per the US Geological Survey estimates, the entire Leviathan Basin holds a mean approximation of 1.7 billion barrels of recoverable oil and a mean of 122 tcf of recoverable gas. The Leviathan gas field’s natural gas reserves are estimated to be about 17 trillion tcf.

from 30 per cent to under five per cent due to a dilapidated railway infrastructure thus heavy reliance on road transport. The Nairobi facility, lying on 29 hectares of land, has a sprawling area estimated to accommodate a throughput of over 180,000; 20-foot containers annually but only 20 per

cent is utilized. According to officials, the facility receives an average of 34 containers daily translating to about 13,000 containers annually. “The fresh plans to develop a new container holding area and purchase of new equipment, the daily capacity is projected to rise to 800; 20 foot containers daily,” said Mungatana. The standard gauge railway will cost Kenya $523.5 million and is expected to rave up the country’s transport system, reduce shipping costs and save roads from damage when heavy cargo is transported via trucks. The project is expected to drastically cut the cost of doing business in East and Central Africa. The cash to be pumped into the port projects will be drawn from a portion of money set aside for railway construction. Plans to repair Kisumu port have kicked off though not quite advanced with insiders indicating the facility’s development could go in tandem with Nairobi’s. Machinery and infrastructure are been under utilized over the years due to a sharp drop in preference on rail networks as a means of shipping cargo by farmers, manufacturers and logistic firms.

African bank gives Rwanda $40m for power BY AGNES BATETA nKIGALI, Rwanda–The government and the African Development Bank recently signed a finance deal in which Rwanda would get $40 million for expanding electricity coverage. The money will go towards construction of the 119 kilometre transmission line from Rusumo Power Plant to Birembo substation in Kinyinya, Gasabo district. Currently Rwanda has 17% of household with access to electricity but by 2018, the target is to raise this to 70%. The plan is to gradually provide the industrial sector, SMEs with adequate but cheap electricity vital for growth. According to a press release by Ministry of Finance and Economic planning, this was going to help Rwanda achieve a sustainable economic development. “More employment opportunities

will be created with easy access to electricity, plus off farm jobs, which will contribute to industrial development plus reduced production costs because of a reduction on electricity tariffs”, Gatete Claver, the Minister of Finance and Economic Planning said. Gives “This support is going to contribute a lot to Rwanda’s aim of achieving sustainable growth plus it will facilitate economic transformation of the country,” the AfDB Country Representative Negatu Makonnen said. Tanzania, Burundi and share the Rusumo Falls hydroelectric power plant and this plant is expected to generate 80 MW which will be equally shared amongst the three countries. The AfDB has continued to support Rwanda with the Electricity Access Rollout Program with funds equivalent to $43 million. The bank is financing 23 other projects with $ 500 million mainly in infrastructure which covers a 60% of the financing.

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