Vol x issue xxvi by East African Business Week

n TOURISM

n TRANSPORT

Tz regulators ponder amphibious bus use

Court clears Umubano sale PAGE 3

E AST

VOL. 9, ISSUE 26 FEBRUARY 24 - MARCH 3, 2014

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Three leaders gripped by speed BY JOHN SAMBO nKAMPALA, UGANDA –Leaders in East Africa will soon launch the Central Corridor Infrastructural Projects to incorporate Tanzania and Burundi, President Uhuru Kenyatta has said. The Central and Northern infrastructural Corridors will cover all the member states of the East African Community with the ultimate objective of minimising delays in the movement of goods and people across the region. Speaking during the 4th Northern Corridor Infrastructural Summit in Kampala, President Kenyatta stressed the need to fast-track the central infrastructure corridor with the ultimate goal of linking all the EAC member countries. “A journey of one thousand miles starts with one step. The new central corridor will link waterways and power initiatives in the region,” The President said. He pointed out that regional leaders are concerned primarily with improving infrastructure in the region and easing the movement of people and goods. The President said a lot of progress has been made in removal of non-tariff barriers to allow free movement of TO PAGE 2

President Kenyatta (C) said the new central corridor will link waterways and power initiatives in the region after discussions with President Museveni (L) and President Kagame (R) PPU Photo

Agriculture cash inflows rebound BY PAUL TENTENA nKAMPALA, Uganda—Investment in agriculture has rebounded following long years of steady decline, according to the latest update from the Uganda Investment Authority (UIA) published last week. Agriculture was the fastest growing sector by investment

value while finance, real estate, insurance and business services recorded the largest planned capital investment,” Dr. Frank Ssebowa said. He said the outlook is positive considering the public investment in infrastructural development this financial year and the next. “Once the much needed TO PAGE 2

Russians eye Tz gas blocks nMOSCOW, Russia—Gazprom, one of the world’s biggest energy companies, is evaluating the prospect of bidding for one of Tanzania’s off-shore gas blocks. The government has put to tender licenses for seven blocks in the deep-water shelf and the application period expires in the middle of May. According to media reports here, the Russian interest is brought on by the market demands in East Asia and the possibilities of getting into the Tanzanian gas industry on the ground floor rather than a latecomer. To date, the British and Norwegians are setting the pace and have already mooted construction of a large gas plant near Lindi. “Most likely, one or even a few plants manufacturing liquefied gas will be built in Tanzania. The current orientation is towards the Asian market, so Gazprom will become very close to the Indian market which is potentially very capacious,” Ivan Bagramov, a leading analyst at the Institute of Energy and Finances was quoted by Voice of Russia. The Tanzanian gas industry began its active development only recently. Nevertheless, the country has already opened its doors to such leaders of the world oil and gas sector as Exxon Mobil, Statoil, Shell and Petrobras. Tanzania’s prospective gas resources are about 2trln cubic metres. Western companies are planning to build a plant manufacturing liquefied natural gas with a capacity of 10 million tons a year. Tanzania has a large export potential due to both its great gas resources and a favourTO PAGE 2

Burundi puts into Rwanda to get $23m action Vision 2025 solar power complex BY CLAUDINE NIZIGIYIMANA nBUJUMBURA, Burundi—The government together with development partners, mainly the UNDP, has developed and is implementing the ‘Burundi 2025’. According to Dr. Gervais Rufyikiri, the Second Vice President, “This is the strategic framework for growth and fight against poverty, with a primary mission to trigger accelerated growth by promoting a favorable global environment for sustainable develTO PAGE 2

BY AGNES BATETA nKIGALI, Rwanda—A new solar power plant that can generate 8.5MW is being built with help from the Dutch firm, Scatec Solar Company and Norway’s Gigawatt Global Cooperatief at a cost of $23.7million. Norfund is putting up a considerable part of the cash. Basically solar energy involves channeling the sun’s rays onto panels that heat up and transform this heat into electricity. TO PAGE 2

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

FROM PAGE 1

NEWS

East African Business Week I February 24- March 2, 2014

Agriculture cash inflows rebound

FROM PAGE 1

transport and power systems are in place, agricultural and mineral resources and the domestic and regional market is assured. Uganda will be more attractive, because the country is not short of the factors of production,” he said. However, actual investments to Uganda in the last quarter (October to December 2013) declined despite a growth in the number of licensed projects. The Uganda Investment Authority (UIA) reported last week the number of licensed projects in the second quarter 2013/14 were 123 over shooting the 98 new projects they recorded in the first The outlook is positive considering the public investment in infrastructural development quarter (July to September this financial year which support agricultural investment. 2013) by 25 projects. licenses. is doing well with investors Dr. Frank Ssebowa the UIA manufacturing were also “An investment license now at ease with registration, mentioned by investors. Executive director said at a enables the holder to receive acquisition of work permits, According to him, by the press conference in Kampala business facilitation services that this saw a rebound in the end of the quarter (December getting first hand tax inforfrom government in a more mation and land acquisition 2013), some investors were number of licensed projects structured and regularized procedures. still in the process of carryand planned investments manner,” noted Ssebowa. “The One Stop Centre is ing out feasibility studies to from the first quarter. He said global economic doing very well. Business establish the viability of their “Ugandan owned compadevelopments have contininvestors used to line up projects. nies also rebounded registerued to affect the performance “These are among the 46% at the Uganda Registration ing 19% of the total projects of Uganda’s FDI inflows. Services Bureau with people that have not implemented in the second quarter. “Projects from Europe aclooking for birth or marriage their projects. It should be However, actual investment counted for 11% of the total certificates taking a lot of noted that out of the 123 declined during this quarter,” projects, a reflection of the time but now only wait for projects licensed, 20% are alSsebowa said. continued decline of FDI outfellow investors before they ready operational, while 34% Quoting investors, Sseflows from Europe to Africa are served,” he said. are under implementation. bowa said the slow perforand Uganda in particular. He said investments for “This implies that 54% of mance in business implemen“During this quarter, India the last quarter are expected the licensed projects are in tation resulted from financial to generate about 17,522 jobs remained the largest source the process of implementing constraints, slow processes of planned FDI projects. even though only 1038 have their projects. UIA expects in land ownership transfers, In contrast, China had the been actualized. to license more projects in delays in acquisition of work largest planned value of “The quarter is also the third quarter, considering permits by directors and erFDI overtaking UK which continuous increased interest expected to register new doratic power supply. was number one in the last mestic investors in response from China and India,” he Other barriers he added quarter. to the ongoing UIA promostressed.Asked about the were delays in acquisitional and facilitation efforts performance of the recently tion of operating licenses, encouraging local enterlaunched UIA One Stop Ceninsufficient land for agro prises to acquire investment tre, Ssebowa said the centre processing, construction and

Three leaders gripped by speed FROM PAGE 1 goods and people in the region since the 1st Tripartite Infrastructural conference last year. President Kenyatta and his Rwandan counterpart Paul Kagame on Wednesday gained entry into Uganda using their identity cards as travel documents, signifying the launch of national identity cards, students’ cards and voters’ cards as travel documents in the three countries. The President, who is chair of EAC, said through the integration, peace and stability in the region would improve to enable people to prosper through rapid social economic development.

“Am certain that with concerted efforts of all of us, we can transform the region to an economic powerhouse in the continent and the world,” he added. He said through cooperation, Africans can also chart a new way forward to safeguard sovereignty and integrity of Africans as a people. Speaking during the occasion, President Kagame encouraged EAC member states to accelerate implementation of various components of the Northern Corridor joint Infrastructural projects spearheaded by their countries. Under the joint tripartite agreement, Uganda committed to lead the railway devel-

opment and political federation sector while Rwanda is spearheading customs, single tourist visa and East African Community e-identity card as Kenya leads the implementation of the oil pipeline and electricity generation. The Rwandan leader said Kenya, Uganda and Rwanda would be having a common pavilion during the international tourism fair slated for Berlin Germany next month. The host, President Yoweri Museveni urged people in the region to engage in activities that improved the economic wellbeing of the region. President Museveni said partisan interests that tend to slow down regional integration should be avoided at all

costs. During the Summit also attended by representatives from Tanzania, Burundi and South Sudan, a special single tourist visa that allows tourists to visit any of the three countries was launched. The visa allows a tourist to enter three countries for only $100. Speaking at the launch of the visa, Uganda Tourism Board CEO, Stephen Asiimwe said the visa would ease movement, facilitate travel and would increase tourist arrivals to the region exponentially. "We are now a borderless region, and with this visa, that makes us a preffered destination for travellers with a bigger product menue, Asiimwe said.

Burundi puts into action Vision 2025 FROM PAGE 1 opment , creation of jobs, redistribution of the fruits of this growth and rapid and profound transformation of the Burundian economy.” He was speaking during a workshop on ‘How community recovery can pave the way to sustainable development in the Great Lakes Region’. Participants exchanged and shared experiences as a way to put into place innovative development systems between reintegration and sustainable development. The Second Vice President said the government has already adopted a national policy for decentralization and its action plan. A law establishing the autonomy of municipalities is being implemented. This will mean they are equipped with all municipal community development plans and an investment fund that is an important factor for the implementation of projects

and programs of local development. He stressed that the government appreciates the relevance of the topics on the agenda of the workshop to learn the social and economic reintegration, local economic development, local governance and decentralization as well as the public -private partnership. Dr. Rufyikiri said the government's wants to see the outcome of this workshop providing appropriate responses to the social and economic concerns of the countries in the region in general and Burundi in particular. He said significant progress has been made in many areas of social and economic life of Burundi . However, he stressed that many challenges remain and mentioned extreme poverty, the aftermath of the conflict across the country, unemployment, rapid population growth, energy deficit, food insecurity, resettlement

Rwanda to get $23m solar complex FROM PAGE 1

The additional power which is expected by the end of 2014, will help reduce pressure on the national power utility, Energy, Water and Sanitation Authority (EWSA). This new power plant is being built in Rwamagana district, at Agahozo- Shalom Youth Village According to an agreement signed between the investors and EWSA the government is to buy electricity from the new power plant for 25 years. “EWSA is expected to buy a kilowatt hour at $16.5 from the investors which will later be channeled onto the national power grid,” James

Twesigye , the EWSA official in-charge of Solar Energy said. “Again a 10MW solar plant construction in Kayonza district in Rwinkwavu is under study and EWSA will request for investors to come up and invest in it when such a study is complete,” Twesigye said. Scatec Solar CEO Raymond Carlsen said, “We are very happy to be able to realize this first utility scale project in Rwanda. Through this project, we will demonstrate that with the combined efforts of experienced partners and national authorities, solar energy is fast and cost-effective to build.”

Russians eye Tz gas blocks FROM PAGE 1 able geographic position. In addition, the Tanzanian market itself is of great interest. The main source of energy in the country is wood and practically all oil is imported. Nevertheless, considering Tanzania’s potential oil and gas resources, its government intends to build a new gas-based economy with the help of attracting foreign investment. Even though the extraction industry is only

beginning to develop in the country, international investors have already appreciated the potential. China alone intends to invest up to $10 billion in the Tanzanian economy in the next few years. One of the projects involves building a gas pipeline worth $1bln 200mln. This pipeline is to connect gas fields in the south of the country with Dar es Salaam.

NEWS

East African Business Week I February 24- March 2, 2014

Agriculture cash inflows rebound

FROM PAGE 1

Rwanda to get $23m solar complex FROM PAGE 1

NEWS

East African Business Week I February 24 - March 2 , 2014

DEBTS: The government has not been happy over failure by Soprotel to renovate the hotel.

Rwanda court clear Umubano sale BY GEOFFREY KARENZI

nKIGALI, Rwanda--The on-going talks on whether Umubano Hotel will be sold have gone ahead with the liquidator, Emmanuel Butare calling on the valuers to evaluate the four-star hotel. Speaking during a news conference at the hotel last week, Butare said despite efforts by Soprotel, a Libyan government-affiliated company that holds majority shares (60 per cent) in the hotel to appeal in the Supreme Court against the liquidation process, the

appeal hadn’t been accepted. This was a factor that allowed them to carry on with the liquidation. “We are continuing with the process through the approval of the provisional execution of the judgment given by the court to continue with the exercise while the appeal is still in the Supreme Court,” he said. The court appointed Butare to head a creditors’ committee to call on to the hotels’ creditors to register their claims before the end of last month. Butare said the committee comprised of representatives from both parties involved

in the ownership of the hotel and that he was just a neutral in the case. The liquidator assured journalists present that the hotel wasn’t bankrupt and was profitable, therefore clients needed not to fret over the ongoing liquidation process. In April last year, government which holds the remaining 40 per cent stake in the hotel halted the sale after Soprotel promised to renovate it. This followed the United Nations sanctions imposed on Libya during the anti-Muammar Gaddafi revolution whereby the Libyan shareholders assumed their representation

in Soprotel. The Rwandan government had raised concerns over the failure of Libya to honour its contractual obligations, including renovating the hotel. The contractual obligations that were allegedly violated relate to an increase in share capital, renovation and expansion of the hotel and sale of minority shares. According to the government, shareholders of the hotel failed to agree on business transactions and management of the hotel leading to the need to liquidate it.

MINISTRY OF ENERGY AND MINERAL DEVELOPMENT RURAL ELECTRIFICATION AGENCY

BID NOTICE UNDER OPEN DOMESTIC BIDDING

RURAL ELECTRIFICATION AGENCY ADDENDUM TO THE TENDER N° 05/RURA/ICB/2013-14

Reference is made to the tender N° 05/RURA/ICB/2013-14 regarding the CONSULTANCY TO ELABORATE AND IMPLEMENT THE BALANCE SCORECARD IN RURA of 02/01/2014, Considering that some bidders expressed the need to extend the period of bids preparation, Considering that the Procurement Law in Rwanda allows the Procuring Entity (RURA) to extend the bidding period, RURA is pleased to announce that the deadline for submission of bids for this tender has been extended to 12/03/2014. The submission and opening venue and time remain unchanged. Sincerely, Done at Kigali, on 21/02/2014 Maj. François Régis GATARAYIHA Director General P.O Box: 7289 Kigali-Rwanda Telephone: +250 252 58 45 62

E-mail: info@rura.rw Website: www.rura.rw

PROCUREMENT REFERENCE NUMBER: REA/SRVCS/13-14/00231 1. The Rural Electrification Agency of the Ministry of Energy and Mineral Development has obtained financing for construction of power lines and intends to apply part of the funds towards payments under the contract for Consultancy Services to undertake Way Leaves Acquisition for 33kv Distribution Power Lines in: Lot 1: All project areas under Wakiso/Mpigi/Mityana/Busunju/Gomba (80Km) Lot 2: All project areas in Kayunga/Jinja/Kamuli/Luuka/Iganga/Buyende/ Tororo/Busia/Manafwa (150Km) Lot 3: All project areas in Mbale/Manafwa/Tororo/Butaleja/Kapchorwa (160Km) Lot 4: All project areas in Masindi/Lira/Nakasongola (50Km) Lot 5: All project areas in Lwengo/Mbarara/Isingiro/Ibanda/Kiruhura (125Km) Lot 6: All project areas in Bushenyi/Buhweju/Kasese/Kyenjojo (75Km) Lot 7: All project areas in Rukungiri/Kanungu/Ntungamo/Kabale (130Km) Lot 8: All project areas in Kabale/Lyantonde/Ibanda/Sembabule/ Nakasongola/Bindibugyo/ Rukungiri/Kiruhura/Mubende (80Km) 2. The Rural Electrification Agency invites sealed bids from eligible property valuation firms for provision of Way leaves Acquisition Services for the areas listed in (1) above. 3. Bidding will be conducted in accordance with the open domestic bidding procedures contained in the Government of Uganda’s Public Procurement and Disposal of Public Assets Act, 2003, and is open to all bidders from eligible source countries. 4. Interested eligible bidders may obtain further information from The Rural Electrification Agency and inspect the bidding documents at the address given in 7 (a). 5. A complete set of Bidding Documents in English may be purchased by interested bidders on the submission of a written application to the address below at 7(b) and upon payment of a non-refundable fee of Uganda Shillings Two Hundred Thousand Only (UGX 200,000). The method of payment shall be by cash at REA Accounts Offices and an official receipt issued. 6. Bids must be delivered to the address below at 7(c) at or before 11:00 a.m. (Local time) on March 28, 2014. All bids must be accompanied with bid securities as follows: Lot 1: All project areas in Wakiso/Mpigi/Mityana/Busunju/Gomba (80Km) – UGX 2,000,000 (Uganda Shillings Two Million) only; Lot 2: All project areas in Kayunga/Jinja/Kamuli/Luuka/Iganga/Buyende/ Tororo/Busia/Manafwa (150Km) – UGX 3,500,000 (Uganda Shillings Three Million Five Hundred Thousand) only; Lot 3: All project areas in Mbale/Manafwa/Tororo/Butaleja/Kapchorwa (160Km) - UGX 3,500,000 (Uganda Shillings Three Million, Five Hundred Thousand) only;

Lot 4: All project areas in Masindi/Lira/Nakasongola (50Km) – UGX 1,100,000 (Uganda Shillings One Million, One Hundred Thousand) only; Lot 5: All project in under Lwengo/Mbarara/Isingiro/Ibanda/Kiruhura (125Km) – UGX 2,700,000 (Uganda Shillings Two Million, Seven Hundred Thousand) only; Lot 6: All project areas in Bushenyi/Buhweju/Kasese/Kyenjojo (75Km) – UGX 1,700,000 (Uganda Shillings One Million Seven Hundred Thousand) only; Lot 7: All project areas in Rukungiri/Kanungu/Ntungamo/Kabale (130Km) - UGX 3,500,000 (Uganda Shillings Three Million, Five Hundred Thousand) only; and Lot 8: All project in in Kabale/Lyantonde/Ibanda/Sembabule/ Nakasongola/Bindibugyo/ Rukungiri/Kiruhura/Mubende (80Km) – UGX 2,000,000 (Uganda Shillings Two Million) only. Late bids shall be rejected. Bids will be opened in the presence of the bidders’ representatives, who choose to attend at the address below at 7(d) at 11:15 a.m. (local time) March 28, 2014. 7. (a)Address where documents may be inspected at: Rural Electrification Agency Procurement & Disposal Unit Plot 10 Windsor Loop, Kololo 2nd Floor House of Hope P.O. Box 7317 ,Kampala, Uganda Telephone: +256-312-318100 Facsimile Number: +256-414-346013 Email address: procurement@rea.or.ug (b)Address where documents will be issued from:Same as in 7(a) (c)Address where Bids must be delivered to: Same as in 7(a) (d)Address of Bid Opening: Rural Electrification Agency, Boardroom 8. The planned procurement schedule (subject to changes) is as follows:Publish Bid Notice

February 18, 2014

Bid Closing Date

March 28, 2014

Evaluation Process

Within 14 Working Days from bid closing date

Display and Communication of Best Evaluated Bidder Notice

Within 5 Working Days from Contracts Committee approval of the evaluation report

Contract Award and Signature

After expiry of the Best Evaluated Bidder Notice and SG’s approval

The Rural Electrification Agency (REA) is not bound to accept any bid. EXECUTIVE DIRECTOR

SPECIAL REPORTS

East African Business Week I February 24- MArch 2, 2014

Technocrats tear into procurement BY EMMA ONYANGO nKAMPALA, Uganda-Exhausting procedures rather than focusing on value for money in public procurement process is not only denying Ugandans a chance to enjoy better services, but can also mean paying extra. David Luyimbazi, the Director for Planning at the Uganda National Roads Authority (UNRA) said when procuring a $100 million project, for every month the project delays to take off, an additional cost of $1 million is incurred. “This is the cost of intervention and is a cost to the tax payer. When it comes to implementing a project, by following the procurement law it takes us on average 46 months; that is to have it properly approved by the Solicitor General. “Factor in what it will cost you monthly; this will cost a lot of money and too much time. These delays are avoidable and once reflected in financial terms can lead to major savings,” he said He cited an example of the overlay on the Malaba-Tororo-Jinja Highway that had an 11 months delay. This was because of complaints from the contractors. “11 months factor in the $1 million per month…you can imagine the cost we had to pay,” he said. Luyimbazi was presenting a paper titled ‘The Effect of procurement on Resource absorption and project implementation’ during the first National Development Policy Forum held at the Kampala Serena Hotel last week. He also faulted the Ugandan procurement system labeling it ‘Overly prohibited’, having a ‘full bible’ to accompany its legislation. “Often procurement is understood to focus on processes. The common practice is that we must comply with the laid down procedures. ‘Tick the boxes and dot the I’s.’ This is what destroys procurement. Procurement is supposed to agree on joint objectives. Match the contractors’ ability and the expected output…this is what procurement should be. “When you go to Ethiopia, their procurement system is a proclama-

FIFTEEN STEPS: A leading criticism of Uganda’s public procurement system is that its inflexible which often means major projects delay. tion with no prescriptions. Under the Uganda’s Public Procurement and Disposal of Public Assets Authority (PPDA) Act, everything is prescribed...there’s no space for innovation. In Ethiopia, contract management is in the hands of the Accounting Officer, in Uganda it’s under the procurement function and this causes delays,” he said. Luyimbazi said because of the processes involved, procurement procedures negatively affect the draw down on the budget. “The long procurement adds unnecessary costs to the procurement process. Unfortunately, these costs are not on the balance sheet of government in many instances and so they have to be passed on to the tax payer,” he said. Luyimbazi also took a swipe at the latest amendments to PPDA Act that come into effect on March 1, 2014. “You can’t know the market price until you get feedback from the market. But now the Act requires that you know the market price before hand and you can’t sign a contract without the market price. This is going to lead to further delays. “The challenges we envisage going forward

“

are delays from the PPDA and the Solicitor General. Every month we delay starting a project, we delay the onset of enjoyment of services to the general public,” he said. During the 6th East African Procurement Forum held in Kampala last year, Prof. Augustus Nuwagaba, the Managing Consultant at Reev Consult said a number of countries in the region tend to put excessive emphasis on processes rather than output. He said at the time, “The major problem we have here is that we tend to glorify procedures, so much rather than delivering value for money. We tend to believe so much in procedures rather than in delivery of services. These procedures are even affecting the budget performance,” he said. He said in Uganda the accounting officers follow cash budgeting process as opposed to approval budgeting. “That is not a very good thing for procurement, because it means that by June 30 if the money is not spent, it is taken back to government. You therefore find budget performance failing not because money was not available,

Procedures are affecting budget performance

but because of the procedures needed to follow before that money is released.” Dunstan Balaba, the Chairperson, Association of the Chief Administrative Officers agrees with this notion stating that ‘you can only operate as and when the money is available.’ “The issue of the budget year; we are supposed to lay our budgets by June 30 and council has to have approved it by August 30. You can only commence procurement after the budget has been approved. Anything can happen between the time the budget is laid and the time of its approval. “If you are going to start procuring after September, with that long process, you may find that you have only four months left to the end of the financial year and yet the funds are available,” he said. According to Balaba, at times even the auditors who follow up on contracts often ask whether the set procedures were followed but don’t bother to follow whether there was any output. “Prior proper planning prevents poor performance,” he concludes. Uganda’s current public procurement process comprises 15 major steps that need to be undertaken in order to procure goods and services. However, the new regulations that are in the offing have reduced some of the processes.

PPDA amendments tie up loose ends BY PAUL TENTENA

he reasons behind amending the 2003 Public Procurement and Disposal of Public Assets (PPDA) Act was basically to strengthen the regulator by giving it additional powers, over procurement planning and ensuring transparency and accountability by making Accounting Officers personally liable for their actions in the procurement process. The law was also amended to promote local and small enterprises through preference and reservation schemes and guaranteeing the confidence of the public in the procurement process by establishing the Public Procurement and Disposal of Asset Tribunal. The Act has limitations where

the procurement does not allow procurement procedures under bilateral tied loans. Where there is a condition of a bilateral loan or negotiated grant that the provider should originate from the country of the donor, procurement of such a provider shall be in accordance with the Act. However, the amendments stipulate if there is a conflict between the Act, Regulations or any directions of the Authority and a condition imposed by the donor of funds, the condition shall prevail with respect to a procurement that uses those funds and no others. The Act gives powers and new functions to the Authority like when entering into the Procuring and Disposal Entity premises. It allows that when conducting procurement audits, compliance checks or investigations, an

authorised officer of the Authority may enter any premises at a reasonable time and inspect the premises. He or she can make any inquiries that may be necessary for the collection of information. ‘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,’ adds a clause in the new law. ‘Where there is persistent or serious breach of this Act or regulations or guidelines made under this Act, the Authority may direct the concerned PDE to take such corrective action as may be necessary in the circumstances,

to rectify the breach.” According to the new law, the Authority may, on its own initiative, accredit an alternative system for a PDE which is not able to comply with a procurement or disposal procedure required under the Act. The regulator can 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 law also allows the Authority 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. It stipulates that an Accounting Officer shall not sign a contract before a procurement is approved by the Contracts and Disposal Committee except where there is an emergency. It reads in part, ‘The Accounting Officer shall inform the Contracts and Disposal Committee of the Contract within seven working days of signing the contract and submit to PPDA a report on the contract within 10 working days’. The law now empowers the accounting officer prior to starting a procurement process to carry out an assessment of the market price of the supplies, services or of the unit costs of the works. The Accounting Officer cannot sign a contract where the price quoted by the bidder is higher than the market price established.

FINANCE

East African Business Week I February 24- March 2 2014

NMB in push for bigger coverage

BRIEFLY African Development Bank set on electricity nTUNIS --The African Development Bank (AfDB) is planning to deepen its engagement in Power Africa in 2014. The AfDB is an anchor partner of Power Africa, a five-year United States Presidential initiative aimed at supporting economic growth and development by doubling access to power in SubSaharan Africa. Last year alone, this support included; issuing a loan of EUR 115 million for the 300 MW Turkana Wind Power Project in Kenya, along with a partial risk guarantee (PRG) of EUR 20 million.

Barclays aims for top spot in Africa nJOHANNESBURG--Barclays Africa Group, with headquarters in South Africa, wants to be one of the top three banks by revenue in Kenya, Ghana, Botswana and Zambia, its four biggest markets outside South Africa. Adressing a news conference last week, Chief executive, Maria Ramos said, the Group posted an 14% rise in full-year earnings. The results are the first since Barclays sold most of its African operations to South African lender Absa in exchange for a bigger stake in Africa’s thirdbiggest banking group.

World Bank to hike lending by 50% nWASHINGTON-- The World Bank wants to raise its lending by 50% over 10 years by cutting costs, loosening a restriction on how much it can lend, and charging richer nations higher fees for some services, several people familiar with the matter said. According to Reuters, the bank’s board agreed to raise lending by $100 billion in 2014 and the details are supposed to be worked out ahead of the spring meetings of the World Bank/IMF in April. The Bank also plans to cut $400 million from its administrative budget over three years.

BY ELISHA MAYALLAH

SAVINGS: Kasi (right) agreed with Bitature that the tie-up would be convenient. PHOTO BY SAM NABWIISO

Centenary in deal to ease utility payment BY SAMUEL NABWIISO nKAMPALA, Uganda--Umeme, Uganda’s electricity distribution company, has joined Centenary Bank to help consumers pay for power using their mobile phones. Under the arrangement, Umeme also hopes to make considerable savings by eliminating cash payment offices across the country Speaking during the launch of the partnership last week, Umeme Chairman, Patrick Bitature said, “As a power distribution company, we have been incurring costs to maintain these centres. But with this arrangement all our clients will be in position to pay for their power bills, especially those on prepaid power billing system this will enable them not to experience power interruption,” he said. He said in the coming five years Umeme will focus on reducing power losses. This is why they want to partner with institutions that have efficient

Full service branches

1,300,300

Customers

12%

Connected to grid

infrastructure which can be used by their clients to clear their bills in time. “We are going to focus on improving our distribution system and leave other services to other players like the commercial banks and mobile phone companies to manage our paying systems,” he said Among the activities which the power distribution is going to put much emphasizes include upgrading transmission lines and expanding the prepaid power system across the country. Only about 12% of the population are on the grid. Speaking on behalf of Centenary Bank, Fabian Kasi, the Managing

Director said the partnership will give their customers the most innovative and convenient way of paying power bills. “The partnership is very timely vital when the bank is embracing edirection for most of our services. This arrangement will potentially give our customers access to the most innovative way of power bills settlement,” Kasi said Centenary Bank has a network of just over 60 bank branches together with another 100-plus linked automated teller machines across Uganda. The bank boasts of about 1,300,000 deposit customers. Apart from this new partnership Centenary also recently launched a new initiative known as the ‘cente-Mobile’ which allows signed customers to access services such as the transfer of funds from their Centenary Bank accounts to another Centenary Bank account, and also monitor and check their balances request for the mini statements purchase airtime and pay other utility bills.

nARUSHA, Tanzania --The National Microfinance Bank Plc (NMB) is seeking to increase its market share by opening new branches. The bank presently has over 150 branches with more than 500 ATM points countrywide. Recently a branch at Usa River, nearly 25 kilometres from Arusha was officially opened. This was soon followed by another one at Himo in Moshi Urban District, Kilimanjaro Region. Management say the ultimate goal is to take services closer to the people. The new branches will offer various services, including credit facilities, money transfer, payment services to the government and its institutions, foreign exchange and remittances. It will also offer NMB Mobile and mobile money transfer services (NMB ‘money chap chap’ and NMB ‘Pesa Fasta’, among others. NMB Mobile enables a customer to transfer his/her money from the bank account to Vodacom’s M-Pesa. This is a flexible, convenient and reliable means of effecting payments. On the other hand, with NMB Chap Chap, a customer is able to open an account and access ATM services within 10 minutes. Bank officials say it removes inconveniences to customers in the process of handling their accounts and accessing financial services. NMB was established under the National Microfinance Bank Limited Incorporation Act of 1997, following the break-up of the old National Bank of Commerce, by an Act of parliament.

Rwanda offers $18m bond to public BY AGNES BATETA

FUTURE: Amb. Gatete said the bond is a good investment.

nKIGALI, Rwanda- Rwandans were advised by the Minister of Finance and Economic planning Amb. Claver Gatete to invest in the $18.3 million (Rwf12.5billion) Treasury bond currently beign offered. The bond’s maturity period is three years and was issued last week. Speaking during a news conference at the Ministry headquarters in Kigali Amb. Gatete said the issuance of the bond was aimed at reviving the bond market. He said every Rwandan was entitled to investing in the future development of the country. Top representatives from the Central

Bank of Rwanda, the Rwanda Stock Exchange (RSE), Capital Markets Authority (CMA), the Rwanda Social Security Board (RSSB), and various banks also attended. “This is a time for Rwandans to invest in a more productive venture which is still aimed at developing their country since such funds will be used to promoting infrastructure projects plus capital markets development,” he said. Gatete said in 2008, the Central Bank of Rwanda together with MINECOFIN issued long term government bonds and this was mainly aimed at promoting the capital market in the country. “The Rwandan government aimed at making the treasury security period

longer and again attracting more long term savings for the Rwandan people,” he said. He said in the 2008- 2011 period, the government issued Treasury bonds of Rwf31 billion which it was able to pay back and is now remaining with Rwf8.5 billion to be paid. Gatete said currently the bond market could be described as small and inactive at both secondary and primary levels, because of the success of the Rwanda Eurobond of $400million which was issued last year. The money helped pay off Rwandair debt, construct parts of the Kigali Conventiona Center and the 28MW Nyabarongo hydro power plant.

EDITORIAL

East African Business Week I February 24- March 2, 2014

BY LEONARD MAGOMBA

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Vital to push for new infrastructure

ast week, the Fourth Northern Corridor Integration Projects Summit was held in Kampala. For the unitiated, these summits are officially supposed to up-date the Heads of States on the progress being made on building new infrastructure that is geared to strengthening regional integration. In this regard we are talking about good roads, railways and easing the bureaucracy that slows the flow of goods and services across East African borders. It was a symbolic gesture for President Uhuru Kenyatta and President Paul Kagame to use their national IDs to enter Uganda, and not their passports. By regularly holding these meetings, it is clear the regional leaders are very serious about what they are about.But our choices are limited. Investors rarely go to places where there are no roads or other communications. Infrastructure is a key measure of a country’s position on the global stage. It is also the second pillar that is assessed by the World Economic Forum when determining the competitiveness of a nation ( national institutions, being the first). Good infrastructure usually translates into easy conveninence and that is a major attraction for investors, both foreign and local. At the most basic level of economic development, competitive advantage is determined by resources, such as low-cost labour and access to natural resources. Many developing countries, and most least developed countries, are mired in this stage. The export mix is extremely narrow and typically limited to low value-added products. Dependence on international business intermediaries is high, and margins are low and susceptible to swings in prices and terms of trade. East Africa wants to break out of these constraints. Infrastructure includes capital goods that serve industries including paved roads, railroads, seaports, communication networks, financial systems, and energy supplies. These are the factors that support production and marketing for industries within a country. Beside that, the quality of an infrastructure directly affects a country’s economic growth potential and the ability of an enterprise to engage effectively. Infrastructure provides services that support economic growth by increasing the productivity of labours and capital thereby reducing the costs of production and raising profitability, production, income and employment. The investment and consumption of infrastructure services also has a significant bearing on sustainable development objectives. Infrastructure investments can be funded by the public or private sectors, or a combination of the two. This is determined, to an extent, by the type of investment or infrastructure being considered. Governments can influence this by putting in place the appropriate measures to promote private sector investment, such as setting out a long-term vision in terms of planning, fostering political and regulatory certainty, and supporting the vision with financial concessions. Private investors will require comfort on the EAC plans over the next 30 plus years if they are to invest in long-term assets. All the EAC countries have a Vision. Infrastructure will determine the reality.

South Africans to shore up Tanzania logistics BY LEONARD MAGOMBA nDAR ES SALAAM, Tanzania-The Development Bank of Southern Africa (DBSA) has joined forces with the Tanzania Investment Bank to finance various infrastructure projects. The new partnership is expected to pay for the rehabilitation of berths one to seven at Dar es Salaam port and also parts of Mtwara port. No details of the actual amount of money involved are provided however in a memorandum of understanding the two banks will also pay for additonal rail wagons and locomotives. Other projects include the construction of the new Mwanza and Arusha airport terminals, together with other projects in the water and energy sectors. The joint fund is expected to enable Tanzania Railways Limited (TRL) to transport over three million tons of goods per year by 2015 and also allow Tanzania Airport Authority (TAA) to double its handling capacities for both Mwanza and Arusha airports after the completion of the terminals. Speaking in Dar es Salaam recently, the Minister of Transport Dr. Harrison Mwakyembe said the government was looking at all available channels for raising the resources to modernize the the country’s transport system. He said the government has long realized it cannot depend on its own resources to develop the much needed infrastructure. “We have come to realize that dependence on government budget will not enable us to achieve our objectives in the short term. “We welcome the efforts made by the two financial institutions that will enable the transport sector to meet its long term objectives and also enable the Ministry accomplish its projects,” Dr. Mwakyembe said. He said the signing of the MOU will support the financing of different projects in the country that will underpin the country’s economic growth. Peter Noni, TIB’s Managing Director, said the cooperation and co-financing with

TANZANIA RAILWAYS: Some money will go into buying new locomotives. ABSA (one of South Africa’s top banks) is in line with the bank’s collective objectives of supporting economic growth through development to ensure rapid and sustainable infrastructure development in the country. Noni said the partnership was an important milestone for the bank in ensuring the attainment of the nation’s Vision 2025. According to Patrick Dlamini, the DBSA Chief Executive, their bank was proud to partner with TIB in development of an innovative financing solutions to fast-track infrastructure development.

Dlamini said that the synergies between the respective rich heritage and specialties of the two institutions was the main driver to promote regional economic development and growth by providing support to development projects in Tanzania. The DBSA is a development finance institution wholly owned by the South African government with the main responsibility to finance key strategic infrastructure projects in South Africa and the rest of the African continent. This is intended to enhance the prosperity and well being of the people across the continent.

Rwanda minerals sector grows BY AGNES BATETA

nKIGALI, Rwanda-Rwanda has been listed among the 20 countries with an abundance of minerals in sub-Saharan Africa. According to ‘Data Mining in Africa Country Investment Guide 2014’, ‘Such minerals bring in more income to the country if exported’. The report shows that Rwanda has plenty of untapped mineral wealth and could earn considerable revenue by developing gthis sector. Latest figures provided by the government state that the country earned $196.3 million during the first three quarters of 2013. This report that was complied by Singapore based research body Global Reports and was featured during the annual conference on African Mining which took place in early February 2013 in Cape Town, South Africa. This report states that growth in mineral exports was due

to an increase in Coltan exports of 161% and that of Wolfram which was at 7 per cent. Cassiterite exports rose by 13%. Cassiterite is used in making tin. It was and still is used for making tin cans for food storage. It is also used in polishing compounds. Wolfram or tunsgsten is vital for incandescent light bulb filaments, X-ray tubes and superalloys. According to the report, ‘Coltan benefitted from an increase in price per kilogramme which contributed to an overall increase of its value to $121.3million’. Wolfram contributed a 7.4 per cent hence brought in $24million whereas Cassiterite brought in $50.5 million because of a value increase of 13% and therefore a 9.7 increase in price per kg. To date, Rwanda has three minerals which are predominantly mined and traded in the country, these being Cassiterite, Woltramite, Colombo- tantalite and some gold. This report indicated that the government had set different strategies which can help bring in more international investors and help it develop the sector.

LETTERS & PERSPECTIVE East African Business Week I February 24- March 2, 2014

Tanzania iron venture will unleash industry

PERSPECTIVE

Image of the week

UAE now African hub

Editor, Permit me to comment on the event when Tanzania begins to exploit its iron ore and goes into making steel. The world over, it has been seen that the coal and steel sector forms the basis for all other industries. Lucky for Tanzania, it also has plenty of coal. You cannot industrialise without ample supplies of steel, so Tanzania is on the right course. This has been seen in how the likes of Malaysia and Thailand also developed their domestic capacity to make capital goods, like vehicles and machinery. I am also pleased that the government is making provisions allowing for a stipulated percentage of locals participating in the upcoming project. However we should also take note of mistakes done by other African countries like Nigeria. In the 1980s the Ajaokuta Steel Complex, which took nearly four years to complete eventually collapsed. The reasons behind this included installation of obsolete equipment, and political infighting. In the Tanzanian case, we have Chinese assistance and technology on hand. Much has been written about Chinese dominance in Africa, but if they can help us develop our industrial capacity, I find nothing wrong with their presence here.

TURMOIL: The situation in the Central African Republic continues to worsen as hundreds of thousands of Muslims seek refuge out of the country, fleeing bans of rampaging Chrisitian youth intent on killing them. Critics say the international peace keeping force, led by French soldiers, cannot keep up with mass campaign of retaliation against the Muslim population who are being targeted, including women and children.

Get politicians out of procurement Editor, It was interesting reading about the amendments to Uganda’s public procurement laws. Not least of all, that local companies will be given preferences for some contracts. However all these fine changes will not be effective unless politicians are totally removed from the public procurement process.

Juma Benage Dar es Salaam, Tanzania

My reasoning is that whenever things go wrong there are three or four politicians lurking in the background. This applies across the region and not just only Uganda. It beats me why politicians cannot allow the professionals to handle the whole process while they remain with the oversight role. But due to their own vested interests, politicians

often compromise or force public officers to do what they are not supposed to do. The amendments have given Uganda’s regulator more clout. But I believe much more should be done to insulate the professionals from influence peddling that is the common cause of messy public procurement. Jovi Tugume Masindi, Uganda

Business people should feel happy about reduced red tape Editor, I cannot remember in recent memory a time when East African governments tried to bend backwards to get business moving in the region. Although there are still some lingering critics, but privatisation of state enterprises in the late 1990s and early 2000s was the catalyst to this trend today. Formerly, parastatals flourished on captive markets, political expediency and subsidies which caused a false complacency. Luckily that thinking is no longer relavant, because govern-

ments have to look for money to build roads, hospitals and schools with less foreign donor help. That means allowing businesses to flourish. I am sure busisness people are happy at how the bureaucracy is steadily being done away with and we should applaud when another milestone in this direction is achieved. Mombasa and Dar ports are undergoing big changes to suit the new business environment. However I do not think the two should compete, but complement each other. Karim Tanji Mombasa, Kenya

Poaching problem dodges big elephant in the room Editor, Permit me to write about the elephant in the room in relation to the current poaching crisis that has beset several African countries. I am the first to recognise how the Chinese have helped

transform our infrastructure for the better. But we cannot ignore the fact that increased poaching has been almost proportional with their increasing numbers in the region. The law of supply and demand clearly comes into play. Unscrupulous locals coming

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

into contact with equally unscrupulous Chinese and surely some deal must be struck. The incentive is that the profits are very good. Recently, President Kikwete suggested stronget emphasis on the ‘no ivory buying’ campaign in the leading con-

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

sumers, China, Vietnam and Thailand. I doubt this will work, because of their cultural/suspicious ties with ivory. Very punitive fines is much better. John Wamai Nairobi, Kenya

nDUBAI, United Arab Emirates-- “The UAE has served as a central logistics hub through which to support more and more of our customers across the African continent,” Peng Xiongji, the UAE general manager of Huawei, the Chinese telecoms giant said last week. It opened a logistics facility in Jebel Ali Free Zone last year from which it can quickly ship smart phones and other technology to the GCC and Pakistan, but also to African nations including Kenya and Tanzania. Huawei hopes the facility will allow it to target greater spending on ICT by African governments. The UAE’s links with Africa have swelled in recent years amid rising trade and investments. Trade between Dubai and Africa rose 27% to $30 billion in 2012 compared with the year before. The Dubai Chamber of Commerce and Industry has been active in encouraging companies in Dubai to boost exports to a continent with a market of more than one billion people. It opened a trade office in Ethiopia in 2012 and plans to open others. As the UAE has built a reputation as a businessfriendly destination, some multinationals are even considering relocating their African headquarters to the emirate. While pockets of Africa are still beset with political unrest and terrorism, the UAE has remained a haven of stability. CBRE, the property consultancy, has experienced a 30% rise in inquiries from businesses considering moving offices from Africa to Dubai. “The airlines and the pool of talent here are the two critical issues that make people come here,” said Nicholas Maclean, CBRE’s managing director in the Middle East. “We are seeing a significant increase in companies currently based in Africa which have two difficulties – one is travelling around the continent of Africa and two is staff. Expanding their business to match the growth in GDP is critically difficult and therefore the assumption is that there’s an easier of way of doing that by relocating their business within Dubai,” he said. Emirates Airline has strengthened its services to Africa in recent years, bringing its total passenger destinations to 26 across the continent. It also serves 15 destinations through its freighter service, SkyCargo. This week the carrier announced the launch from August 1 of a daily linked service between Dubai and the Nigerian cities of Abuja and Kano. “The country is strategic to Emirates’ global expansion, as is Africa,” said Thierry Antinori, the executive vice president and chief commercial officer. Etihad Airways flies to seven destinations on the continent, as well as to the Seychelles. The Abu Dhabi-based airline said it was opening a sales office in Johannesburg to serve its newly created Africa sub-Sahara and Indian Ocean region. Peter Baumgartner, Etihad’s chief commercial officer, said: “Africa is quickly developing into the next big investment destination, with business growth on the rise and African economies amongst the fastest growing in the world. We are experiencing strong passenger loads right across the continent.”

“

Trade between Dubai and Africa rose 27% to $30b

The National

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TRANSPORT

East African Business Week I February 24 - March 2, 2014

Ethiopian to start Somali flights

BRIEFLY Fastjet get new manager for expansion nDAR ES SALAAM -- Lowcost airline Fastjet has appointed Jimmy Kibati as General Manager, East Africa. He joins from Kenya Airways, where he is currently acting commercial director. Kibati will be responsible for leading the airline’s expansion in East Africa, just as Kenya Airways is soon to start its own low cost airline, Jambo. Kibati will take up his new position on March 17 and initially be based in Dar-es-Salaam, overseeing Fastjet Tanzania.

South African in loses on international flights nJOHANNESBURG-- South African Airways chief executive officer, Monwabisi Kalawe told a parliamentary committee last week, none of the airline’s international routes is making a profit. “At the moment we’ve got Airbus equipment. Most of them have four engines – these things are gas guzzlers. Most of our international routes are loss-making mainly because of these,” Kalawe told legislators. He added that South Africa’s geographic location is also a disadvantage.

Rwandair named airline for Kili 2014 KIGALI--- Rwandair has joined the marketing campaign for this year’s Kilimanjaro Marathon. ‘The management of RwandAir is honoured to be the official airline partner for the 2014 Kilimanjaro Marathon. ‘RwandAir, the national carrier of Rwanda and Africa’s fastest growing airline has yet again strategically placed itself in the position to market itself through this headline making event,’ the airline said in a statement last week. The event is scheduled to take place on March 2 and is expected to attract several thousands.

LOOKS FUN: The buses are popular as tourist transport in such places as North America and Holland.

Tz regulators ponder amphibious bus use BY ANDREW ZABLON nMWANZA, Tanzania--An ambitious transport project to introduce amphibious buses originally slated for this year, may take longer to happen due to lack of a regulation policy. Tanzania Surface and Maritime Transport Regulation Authority (SUMATRA) Communications Manager, David Mziray told East African Business Week, much has to be done before something like this can start. “As of now Tanzania has no regulation to control such kind of transport. This must be in place before the project takes over,” he said. The project is a joint bid by a local Tanzanian company, Trasevents Marketing Limited of Tanzania and a Dutch company, DAT b.v (Dutch Amfibious Transport Vehicles) of Nijverheidsweg, the Nertherlands. DAT designs and manufactures amphibious vehicles and one of its leading products, is the Amfi-

45 t0 50

Passenger capacity

100kph

Top speed on land

15kph

Top speed on water

bus. It is an ultra-modern amphibious vehicle that has been fully certified and widely used in many parts of world. The buses have been manufactured in such a way that they can be used both on land and water, thus the name ‘amphibious’. In addition to offering a versatile way to tour cities, the ‘Amfibus’ is a tourist attraction in itself. It provides tourists with the ultimate sightseeing vantage point for admiring the skyline. Mziray said: “We welcome the idea, let them come with a viable proposal and then we start working on it. But as of now nothing tangible has taken place.” The sponsors say, if the project were to start it would significantly reduce the problem of traffic jams in Dar es Salaam.

Some of the buses could even be used to ply between Mombasa (Kenya) and Mtwara town, Southern Tanzania. Already the Environmental, Social Impact Assessment (ESIA) has started involving other government authorities, SUMATRA and police. In Africa, Tanzania would be the first country to have such buses. SUMATRA, is optimistic that such project would bring in great changes in the transport sector in Tanzania. TheTransevents Executive Director, Peter Nzunda was quoted as saying recently the project would boost tourism. Nzunda said the buses would make it easier for tourists to visit places like the historical town of Bagamoyo, Mbudya and Mafia Islands in Coast region. He said apart from DAT’s ambition to introduce such technology in Tanzania, the Dutch government was also ready to support the project.

nMOGADISHU, Somalia-Ethiopian Airlines plans to start new flights to Somalia’s capital, Mogadishu, for the first time in the history of the two countries. In an interview with the state run radio, Somalia’s Minister of Transport and Air Travel, Said Jama Qorshel said that his government has signed a cooperative agreement in the fields of aviation and transportation with Ethiopia. He added that Ethiopia will help training the staff of Somali Civil Aviation Authority, to have the capability to manage the country’s airspace for the first time in many years. The minister did not mention when the flights of Ethiopia’s air carrier will be started, but he stated that this step would be a sign of improvement for the country. Since the collapse of Somalia’s central government, The Civil Aviation Caretaker Authority of Somalia (CACAS) – a UN created agency – has been managing the country’s airspace. In May 2013, Somali government said it will soon take over its airspace, saying staff within Somalia are receiving training to deal with management duties. In March 2012, Turkish Airline became the first major commercial airline to land in Mogadishu in more than 20 years. Somalia also announced a joint program which Addis Ababa and Mogadishu will launch involving training skilled Somali Airlines staff and as well training the Somali Civil Aviation officials in order to revive the country’s collapsed air services. Resumption of scheduled flights to the Somali capital is seen as a major indicator of growing normalcy.

Kenya to get road toll stations BY JOHN SAMBO

nNAIROBI, Kenya--The government is to introduce toll stations on the main highways as a means to subsidise maintenance costs. The Thika Superhighway and Nairobi-Mombasa Highway are likely to be the first candidates for the proposed scheme. However, some civil society groups have already expressed their displeasure of such a thing. ‘Road maintenance is done using funds from the road maintenance levy which is attached to the retail price of fuel and so subjecting road users to toll-

ing would amount to double taxation,’ the Consumer Federation of Kenya quickly came out in a statement last week. Toll stations involve motorists having to pay for use of the roads once the said roads are put under a private investor in what is known as concessioning. In advertisements running in major newspapers, the government said it was seeking expression of interest from consultants who could provide transaction advisory services for the tendering of maintenance, operation and tolling of the Mombasa-Nairobi Highway and Nairobi-Nakuru Highway through public-private partnership (PPP).

The government is looking for a lead financial advisor, an environmental consultant, traffic and engineering consultant and a legal consultant as per the advertisement to advice on the public private partnership arrangement. After completion of the KampalaEntebbe Expressway, it is expected Ugandans will also be subject to paying for use of the road. Introduction of an electronic toll station system in South Africa’s Gauteng Province, (which contains Johannesburg), continues to cause widespread criticism among low income people. Effective from December last year, motorists have to get e-tags.

COSTLY: The government is looking a public-private deal.

TENDERS

East African Business Week I Febrauary 24 - March 2 , 2014

MINISTRY OF HEALTH AND SOCIAL WALFARE

CALL FOR CANDIDATES MEDICAL STORES DEPARTMENT INTERNATIONAL COMPETITIVE BIDDING INVITATION FOR TENDER Tender No: IE-009 /2013-14/HQ /G/30 SUPPLY OF EMBOSSMENT MACHINE

SPECIAL EXECUTIVE ASSISTANT DUTY STATION: Dar es Salaam, Tan ania APPLICATION DEADLINE: Thursday, March 6, 2014

1 . Thi s I n v i t a t i o n f o r t en d er s f o l l o w s t he G en er a l P r o c u r em en t N o t es f o r t hi s P r o j ec t w hi c h a p p ea r ed i n t he D a i l y N ew s , The G u a r d i a n , M w a n a n c hi a n d M a j i r a N ew s P a p er d a t ed J u n e 1 2 t h 2 0 1 3 .

APPLICATION INSTRUCTIONS: P l ea s e s en d c o v er l et t er , r es u m e a n d t w o p r o f es s i o n a l references to info alma2015.org. Documents should be sent as PDF files attached to email.

2 . M ed i c a l S t o r es D ep a r t m en t u n d er t he M i n i s t r y o f H ea l t h a n d S o c i a l W el f a r e ha s s et a s i d e f u n d s f o r the Procurement of mentioned items below during the financial year 2013/14. It is intended that part o f t he p r o c eed s o f t he f u n d w i l l b e u s ed t o c o v er el i g i b l e p a y m en t u n d er t he c o n t r a c t f o r t he s u p p l y o f E m b o s s m en t M a c hi n es .

About ALMA The African Leaders Malaria Alliance (ALMA) was launched by African heads of state and government during the United Nations General Assembly in September 200 to provide African leaders with a high-level forum to ensure efficient procurement, distribution, and utili ation of m a l a r i a c o n t r o l i n t er v en t i o n s ; f a c i l i t a t e t he s ha r i n g o f ef f ec t i v e m a l a r i a c o n t r o l p r a c t i c es ; a n d ensure that malaria remains high on the global policy agenda. ALMA members are concerned that malaria affects over 200 million Africans and costs Africa at least 12 billion USD annually in direct costs to development. ALMA is comprised of 4 African heads of state and government w ho a r e c o m m i t t ed t o r ea c hi n g t he U n i t ed N a t i o n s S ec r et a r y -G en er a l ’ s g o a l o f en d i n g m a l a r i a deaths by 2015.

3 . The M ed i c a l S t o r es D ep a r t m en t n o w i n v i t es s ea l ed t en d er s f r o m el i g i b l e Ten d er er s t o s u p p l y t he f o l l o w i n g i t em s a s p er t a b l e b el o w

I TE M

DESCRIPTION OF GOODS

S u p p l y o f E m b o s s m en t m a c hi n e

UANTIT

4. Tendering will be conducted through the International Competitive Tendering under Open Tendering procedures specified in the Public Procurement Act (Goods, Works, Non Consultant Service and Disposal of Public Assets by Tender) Regulations, 2005 – Government Notice No. 7 and is open to all Tenderers as defined in the Regulations. 5. The Tenderer may obtain further information from and inspect the Tender Document at the office of t he S ec r et a r y , MSD Tender Board, off Nyerere Road, K eko Mwang a P. O. Box 9 081, Dar es Salaam, from 19 th February 2014 at 8.00 to 3.30 Hours l o c a l t i m e o n i n c l u s i v e ex c ep t o n p u b l i c ho l i d a y s . 6. A complete set of Tendering Document in English may be purchased by a bidder upon submission o f t he a w r i t t en a p p l i c a t i o n t o t he Director General, Medical Stores Department, J amana Building ,2nd Floor , Nyerere Road , P.O. Box 9 081 Dar es Salaam a n d u p o n p a y m en t o f a n o n -r ef u n d a b l e f ees o f TSHS 100,000/= o r U S D 1 0 0 o r eq u i v a l en t i n a f r eel y convertible currency at the prevailing exchange rates.Payment should be in Cash to the Director General, Medical Stores Department, J amana Building , 2nd Floor , Nyerere Road , P.O. Box 9 081 Dar es Salaam, or through bank transfer ( Extra charges of US Dollar 25 as a bank transfer charges should be added in the fee) from 1 th February 2014 at 8.30 am to 3.00 pm Monday to Friday inclusive except on public holidays. Cheque will not be accepted. The following bank details should be used BANK: STANDARD CHARTERED BANK-INTERNATIONAL HOUSE ACCOUNT NO.TSHS 0104006000400 US : 8704006000400 SWIFT CODE: SCBLT TX 7. Tender must be accompanied by a Bid security of 2.5 of a total bid price in bid currency. 8. Tender in one original plus one copy and soft copy, properly filled in, and enclosed in plain envelopes m u s t b e d el i v er ed t o t he a d d r es s S ec r et a r y M ed i c a l S t o r es D ep a r t m en t Ten d er B o a r d o f f N y er er e Road, Keko Mwanga P.O.Box 081 Dar es Salaam Tender No: IE-009 /2013/14/HQ /G/30 for Supply of Embossment Machine . NOT TO BE OPENED AT OR BEFORE 10.00 HRS ON Tuesday 8th April 2014.Ten d er s w i l l b e o p en ed p r o m p t l y t her ea f t er i n p u b l i c a n d i n t he p r es en c e o f Ten d er er s ’ r ep r es en t a t i v es w ho c ho o s e t o a t t en d i n t he o p en i n g a t t he MSD Board Room. . Late Tenders, Portion of Tenders, Electronic Tenders, Tenders not received, Tenders not opened and n o t r ea d o u t i n p u b l i c a t t he t en d er o p en i n g c er em o n y s ha l l n o t b e a c c ep t ed f o r ev a l u a t i o n i r r es p ec t i v e o f t he c i r c u m s t a n c es . D i r ec t o r G en er a l , M ed i c a l S t o r es D ep a r t m en t , P.O. Box 081 D a r es s a l a a m Tel: 255 22 28608 0-7 Fax No. 255 22 2865814/1 Email: info msd.or.t Website: www.msd.or.t

The obj ectives of ALMA are to: Keep malaria high on the political and policy agenda at global, national and local levels; Provide a forum for high level advocacy for the attainment of the 2015 malaria targets, includi n g t he f u n d i n g n eed s ; Provide a forum to review progress and address challenges being faced in meeting the m a l a r i a t a r g et s ; Maintain the focus and collective attention on malaria within the International Community, the United Nations, and regional organi ations; Furnish a platform for collective advocacy with multilateral organi ations on such policy priorities as the timely release of donor funds and the efficient implementation of the global strategy es s en t i a l f o r m a l a r i a a w a r en es s , a c q u i s i t i o n , a n d d i s p en s i n g m a l a r i a c o n t r o l a s s et s ; a n d Provide a forum for sharing best practices on combating malaria The ALMA Secretariat is comprised of a fast-paced and dynamic group of highly- skilled professionals working across three continents. The ideal candidate for this job is a highly organi ed and independent, self-starter with excellent interpersonal and written communication skills and adapts easily to changing environments. See position responsibilities and qualifications below: Maj or Duties and Responsibilities Organi e and ensure the seamless operations within the Office of the Executive Secretary Provide all necessary and requested support including all aspects of meeting planning, correspondence and travel logistics for the Executive Secretary and Senior Director/Country Liaison Manage all currency, receipts, reimbursements and disbursements for the Executive Secretary and Senior Director/Country Liaison Manage all aspects of Executive Secretary’s calendar including scheduling, and preparing briefing materials etc. Respond consistently on behalf of the Executive Secretary to ALMA members, the ALMA S ec r et a r i a t t ea m a n d ex t er n a l p a r t n er s Travel with the Executive Secretary when required Efficiently synthesi e, analy e and troubleshoot logistical issues Support the operations of the Dar es Salaam office Perform any other duties assigned by the Executive Secretary ualifications Prior experience as Special or Executive Assistant (experience staffing senior individuals in global health is a plus) Experience working with a range of dignitaries, leaders and partners across various s ec t o r s Advanced degree in global health, international affairs or related field preferred Must possess exceptional relationship management skills in order to manage sensitive information and situations with exibility and diplomacy Proficient in French (Swahili and/or Portuguese is a plus) Proficient in using various technology and communications platforms including Microsoft Office, Apple Products (iPad and iPhone), BlackBerry, Skype etc.

NEWS

East African Business Week I February 24- March 2, 2014

Kenya to increase cancer funding

BRIEFLY Vietnam telecom eyes Burundi market nSAIGON Vietnam’s telecom group Viettel has obtained a license to provide mobile services in Burundi. Le Dang Dung, deputy general director of Viettel, told reporters here, Burundi has a population of over 10 million, of which around 10% use mobile services. He said Viettel has seen an opportunity to invest in the market. The group is preparing to set up Viettel Burundi Company and expand its business network in the country. Viettel has plans to expand its business to three new markets every year.

Turkey plans fair for Addis Ababa nADDIS ABABA The Meridyen International Fair Organization, a major Turkish event organizer, is planning to hold a “major business event” in Addis Ababa in 2015. About 50 private companies from all business sectors have been invited, project director Yusuf Kirdar told a news conference last week. “The trade fair that is being planned is exclusively Turkish,” Kirdar said on the sidelines of the 18th Addis Chamber International Trade Fair.

Kenya moots waivers for textile makers nNAIROBI Kenya is considering tax waivers for the three special economic zones being developed. The move is intended to lure global textile firms and help it seize a share of the West’s textile market now dominated by Asian rivals. Industry Minister Adan Mohamed the country has a diversified economy and is popular with tourists, but exports are dominated by farm commodities with volatile prices and low returns, leading to a gaping current account deficit.

BY HUMPHREY LILOBA

CLEARING CONTAINERS: There are concerns that activity at the busy port may be interrupted by the row.

Kenya Revenue puts agents into turmoil BY HUMPHREY LILOBA nNAIROBI, Kenya -Over 600 cargo clearing and forwarding agents at the busy port of Mombasa could be denied 2014 operating licences due to a row pitting them against the industry umbrella body. Kenya International Freight and Warehousing Association (Kifwa) brings together all the cargo and clearing and forwarding agents. Applications for renewal of licences for the agents were rejected by the Kenya Revenue Authority (KRA) due to various reasons key among them lack of clearance letters from Kifwa. The move has angered the agents who have threatened to move to court. Association of Importers and Exporters of Kenya Chairman Peter Mambembe said KRA had rejected more than 600 applications, which had already expired in December last year. KRA requires all cargo agents to

600

Rejected applications

$82/$200

Cost of licenses

December 2013 Deadline breached

be fully paid-up members of Kifwa, but many have walked out of the association due to endless leadership wrangles. Untamed, the situation could easily lead to a serious pile-up of cargo at the port ultimately interupting business in the region. Agents have refused to pay $82 and $200 demanded by KIFWA for renewal of licence and new applicants respectively. Mambembe said that the condition that cargo agents must be vetted by Kifwa before being issued with licences was unconstitutional. “It is important to note that all applications should be approved by

the KRA by December 31each year, therefore the question of rejecting documents because of Kifwa clearance is not in order but unlawful and unconstitutional,” he said. He said their rules stipulate all payments are due every March. KRA Assistant Commissioner in charge of marketing and public relations Fatma Yusuf said KRA only registers, clearing agents who meet conditions stipulated by the Customs Licensing department. “There are certain obligations which are a requirement, before one succeeds in applying for the licence, if one meets these conditions the next step is to undergo an interview, and if the agent passes then a licence is issued,” she said. Mombasa branch Chairman Alloys Mwanthi distanced himself from the KRA’s decision to deny the agents licences despite some pointing fingers at the association. “We are not involved in this issue nor are we aware of any agent who has been denied a licence,” he said.

nNAIROBI, Kenya-- Tanzania --The Kenyan Government has announced it will allocate funds in the coming financial budget to public palliative cancer treatment centres. This is in realization of cancer-caused deaths that are on the rise in the East African country. Health Cabinet Secretary James Macharia said this will guarantee proper medical care for cancer patients who have often had to travel abroad to seek treatment. “Starting this year 2014/2015 we shall allocate budgets for those cancer care centres because we require those patients to have comfort.” “I know the Senators will support us when it comes to Parliament in terms of asking for budgets,” said Macharia as he channelled his remarks to Kisumu Senator Anyang’ Nyong’o, himself a cancer survivor. Macharia assured that the ministry is also looking at ways of equipping public hospitals across the country to benefit all other patients following concerns of the poorly equipped hospitals. “The public sector is strained in terms of trained personnel to treat and care for the cancer patients, something as ministry we are working tirelessly to see that is solved. People are flying out for cancer treatment, cardiovascular and diabetes, we saw the statistics and they are about 7,000 annually.” “If we were to invest the close to $117.6 million that they spend abroad then we would be able to get value and improve our own facilities,” Macharia said.

EU helps in new River Nile project BY SAMUEL NABWIISO

A BATH: Increased human activity is ruining the river.

nKAMPALA, Uganda- Nile Basin Initiative (NBI) are coming up with new monitoring system centre which will help to monitor the quality and quantity of waters in the longest river in Africa. NBI manages the waters and other projects on the river. NBI executive Director Teferra Beyene told a news conference in Kampala loast week, the new effort is being done with European Union help. These include developing an advanced satellite monitoring system which will enable them to monitor the fate of the river. especially monitoring

ther river. “The quality and quantity of water in the river is becoming big challenge. We cannot monitor the two effectively. That is why NBI in collaboration with the European Union we are coming up with this system which will help to monitor the quality and quantity of water across the river Nile from its source to the end points in Egypt” he said. He said due to the increasing human activities near the river and lakes banks which feed into the water it has become highly contaminated by both industrial wastes andsilted soils. He also highlighted countries like Egypt which he blamed for pumping huge volume of water for irrigation

projects in the desert regions where many Egyptian grow food crops and also the upper countries (Riparian countries) Uganda Kenya Tanzania for not protecting the river from industrial pollutants. which ends up into the water stream thus affecting the Quality of River Nile waters River Nile is source of livelihood for 11 countries that entirely depends on the river for its power generation, irrigation and water for domestic consumption. The 11 NBI members are Rwanda , Burundi , Tanzania, Democratic Republic of Congo Sudan Southern Sudan Ethiopia Egypt Uganda and Eritrea as an observer.

TENDERS

East African Business Week I February 24 - March 2, 2014

REPUBLIQ UE DU BURUNDI PROJ ET DE DEVELOPPEMENT DES SECTEURS FINANCIER ET PRIVE

REQ UEST OF EXPRESSIONS OF INTEREST No PSD/C/49 /2014

PROJECT MANAGEMENT AND PROJECT OWNERSHIP ASSISTANCE FOR THE MODERNIZATION OF THE IT INFRASTRUCTURE AND THE BANKING INFORMATION SYSTEM OF THE CENTRAL BANK AND THE MODERNIZATION OF THE PAYMENT SYSTEMS OF BURUNDI 1 . FOREWORD The G o v er n m en t o f t he R ep u b l i c o f B u r u n d i ha s r ec ei v ed a g r a n t f r o m t he World Bank to finance the financial and private sectors development project.

The F i r m s ho u l d ha v e a t l ea s t t hr ee y ea r s r el ev a n t ex p er i en c e m a n a g i n g complex IT projects in the banking sector (high-ranking commercial banks). An experiment with a central bank would be appreciated/an advantage.

6 . DURATION AND ORGANIZ ATION OF THE SERVICE I t i s ex p ec t ed t ha t p a r t o f t he d o n a t i o n i s u s ed t o f u n d s er v i c es o f a n I T The d u r a t i o n o f t he m i s s i o n i s es t i m a t ed a t 2 4 m o n t hs . The F i r m s ha l l projects Management Consultant with the Bank of the Republic of Burundi in provide a permanent mission for the Technical Assistant and Chief of Mission charge of monitoring the implementation of the CentralBank IT projects and a n d s ho r t -t er m a s s i g n m en t s f o r o t her ex p er t s . m o d er n i z a t i o n o f p a y m en t s y s t em s o f B u r u n d i . 2 . OBJ ECTIVES OF THE MISSION The Firm, with the quality of Coordination Adviser for BRB projects funded by the World Bank, will provide assistance to the project management, project ownership and quality assurance for the implementation of projects r el a t ed t o : The IT infrastructure; The banking information system; ATS I CSD system components including ACH, RTGS and CSD; 3 . TASK S OF CONSULTANTS The selected firm will align the following staff: -A Head of Mission, Permanent Technical Assistant -Expertise in IT Infrastructure and Server Rooms -An Expert in Banking Information System -Expertise in Payment Systems (ATS, CSD, Scanning, Electronic Banking) The Bureau recruited will reassure the effective transfer of knowledge to BRB staff by integrators first but also by himself. To do this, he will work closely and honestly with BRB project teams. 4 . EXPECTED RESULTS At the end of this contract, the BRB and the PSD will appreciate, with the Firm, the success of the three projects taking into account: 3Timely execution of three major projects and server room Ngo i ; 3 Adherence to budgets ; 3 uality Assurance of delivered products;

The Head of Mission will coordinate the interventions of other experts as needed related to the status of projects in close collaboration with the BRB and the PSD. The expected duration of the three projects is as follows: 3 IT Infrastructures : months; 3 Banking Information System: 10 months; 3 Payment Systems ATS I CSD: 12 months. The three projects will be launched in the first quarter of 2014. The calendars will be refined during negotiations with suppliers of these systems. 7 . SELECTION MODE The Firm will be selected according to the Selection based on quality and costs , according to the guidelines Selection and Employment of Consultants by World Bank Borrowers, 2004 edition revised October 2006 and May 2010 8 . PROCEDURES FOR SUBMITTING Expressions of interest are open to all eligible consultancy firms. Expressions o f i n t er es t m u s t be delivered to the address below at or before (5:00pm, on 14th March 2014, Mr. J erome SIBOMANA, Coordinator, Financial and Private Sector Development Proj ect (FPSDP) lmmeuble SOCAR, j onction Bd de l’ lndependance et Avenue d’ ltalie B.P. 159 0 Buj umbura, BURUNDI Tel : (257 ) 22 24 9 59 5, Fax : (257 ) 22 24 9 59 2 E.mail : pag e@ pag e.bi Website : www.psd.bi

5 . CANDIDATE PROFILE The eligible applicant is a Firm of multi- disciplinary experts with many years of experience primarily in the IT Project Management and Risk, in monitoring Expressions of interest sent by e-mail will be copied to following addresses: jsibomana page.bi; jngurin ira page.bi; drwankine a page.bi the implementation of IT projects and the implementation of related action p la n s .

BRIEFLY Generators arrive for new Tz project nDAR ES SALAAM Completion of Tanzania’s proposed 240 MW Kinyerezi power plant, using natural gas, is coming closer with the arrival of two generators last week. Japanese conglomerate, Sumitono won the contract to build Kinyerezi, which is technically referred to as gas-fired combined cycle power plant. Experts say by supplying nearly 20% of the country’s total power generation capacity, Kinyerezi is a good solution to present serious power shortages in Tanzania.

Norwegians to build Rwanda solar complex nKIGALI The first grant for $400,000 under President Barack Obama’s Power Africa Initiative, has gone to Rwanda for a new solar power complex. However Norway’s Scatec Solar and Norfund, together with Dutch firm, Gigawatt Global Coöperatief raised the bulk of the $23.7 million from mostly Norwegian and Dutch official sources. The solar power complex is to be situated 60 kilometres outside Kigali. Rwanda’s power utility, EWSA will buy the ouput in a 25 year deal.

Nairobi to launch waste to power plant NAIROBI Nairobi County Governor, Evans Kidero is expected today to launch the construction of a $314 million waste recycling plant. According to the lead German contractors, Sustainable Energy Management UG and ISO International Development & Consulting GmbH, the new plant will turn a big chunk of Nairobi’s solid waste into electricity. “With this project, our projections show we can generate 70 megawatts of electricity per hour from the waste the city produces,” Kidero said last week.

ENERGY

East African Business Week I February 24-March 2, 2014

Belgium gives $23m for Rwanda power

BY AGNES BATETA

nKIGALI, Rwanda-Belgium has stepped in to boost Rwanda’s infrastructure budget by giving $30 million including $23 million specifically for increasing electricity grid connections in rural areas. The 22 million EUR (just over $30 million) grant agreement was signed between the two governments and is part of the EUR 160 million ($220 million) financial package for the period of 20112014. The package includes assistance to Rwanda’s health, energy and decentralization sectors. According to a press release issued by the Ministry of Finance and Economic Planning last week, about Euro 17 million ($23 million) will help improve sufficient, affordable and reliable access to on-grid electricity for both rural households and rural public institutions. This program is under the Electricity Access Rollout Program (EARP) overseen by the Energy, Water and Sanitation Authority (EWSA). The EWSA is Rwanda’s main power utility. Finance minister, Amb.Claver Gateta said these projects were vital for sustaining economic development and therefore a priority for the government. He said, “The Rwandan government aims at improving service delivery offered by public institutions to its people and therefore such funds were going to contribute to such.” About 21.000 households from the districts of Kirehe, Kayonza and Gatsibo are expected to benefit the power project is fully implemented. “We will construct power lines connecting to different households in these districts and therefore even the vulnerable people will be able to get access to electricity,” Edward Kasumba , the EARP Program Coordinator at EWSA said.

DEMAND: The government does not want an imbalance between fast urban growth as tylified by Kigali City and no power in the rural areas.

$220 million

Belgium package for 2011-2014

21,000

Households to be connected

$95

Connection fee

He said the money will help EWSA put up both medium and low voltage lines. However the vulnerable people in the selected districts will get first priority. “Such rural residents will be request-

ed to pay Rwf66,000 (about $95) which amount can be paid in installments with a first installment of Rwf15,000 and then the balance can be paid whenever people go to buy cash power as one way of making electricity easily accessible for the population,” he said. Some $6.8 million will go to maintenance of infrastructure, management and supporting functions. The money will also help in creating a competent staff at EWSA.

Ormat bolsters Kenya electricity BY JOHN SAMBO nNAIROBI, Kenya-Ormat, a Nevada-based alternative energy firm, has increased Kenya’s electricity supply by 110MW. The Americans have been working on completion of Plant 3 at the Olkaria III geothermal power plant complex located near Naivasha town. Speaking recently, Dita Bronicki, Ormat chief executive officer said, “Olkaria III is a prime example of our multi-stage approach to project development generating higher investment returns and reducing risk.” “In less than one year, we’ve completed construction of two additional plants and, over the course of five years, more than doubled the facility’s generating capacity,” he said. The power generated by the Olkaria III is sold under a 20-year power purchase agreement (PPA) with Kenya Power. The Olkaria III complex was financed with a $310 million debt facility provided by the Overseas Private Investment Corporation (OPIC). OPIC is a US agency that helps to pay for projects that will use American expertise and inputs and generally advance US commercial interests abroad. In November 2013, Ormat used the remaining $45 million for completion of Plant 3. Bronicki said: “Kenya is an important market for our future growth due to its high geothermal potential and we are focusing our efforts on increasing our operation in Kenya.” Ormat has installed over 750 power units worldwide. but also owns and operates 515 MW of green energy power plants.

Tz warned on gas search risks BY LEONARD MAGOMBA

INDIAN OCEAN : Off-shore Tanzania exploration picked after 1999.

nDAR ES SALAAM, The Tanzania government has been advised to keep a close eye on the many oil and gas exploration activities, because any lapse could mean a severe environmental hazard. Carlos Mbuta, the Principal Environmental Management Officer at National Environment Management Council (NEMC) was recently presenting a paper titled, ‘Social and environmental challenges of gas development in Tanzania’. Mbuta told East African Business Week the major areas of environmen-

tal concern include the impact on the ecosystem, atmospheric and aquatic. “I would like to take this opportunity to ask the government to keep a close eye on oil and gas exploration activities so as to preserve among other things, the seafloor which may lead to fish disappearance,” Mbuta said. He said the extraction of oil and gas is a major activity and the industry operates under complex and diverse environmental and social issues. He said the exploration of oil and gas could either boost or undermine countries’ progress depending on how the boom is managed.

“The search for rock formations with oil or natural gas deposits after the geographical prospecting involves, blasting and or exploratory drilling, he said, adding this may lead to seafloor disturbance from drilling template installation, accidental oil/gas or non-petroleum releases,” he said. He said the major impact of waste streams arises from the toxicity, high pH and salt content of chemicals used as drilling fluids. The result is often pollution of ground and surface waters. The exploration for oil and gas in the deep offshore Tanzania took off in the big way in 1999.

BUSINESS

MAKING A HOMEBASED BUSINESS WORK

DIGEST BUSINESS WEEK, February 24-March 2, 2014

TO PAGE 14

Top business people think alike

Regardless of your definition of success, there are, oddly enough, a great number of common characteristics that are shared by successful business people. n You can place a check beside each chYou can place a check beside each characteristic that you feel that you possess. This way, you can see how you stack up. Even if you don’t have all of these characteristics, don’t fret. Most can be learned with practice and by developing a winning attitude, especially if you set goals and apply yourself, through strategic planning, to reach those goals in incremental and measurable stages. Like any activity you pursue, there are certain musts that are required to be successful in a chosen activity. To legally operate a vehicle on public roadways, one must have a driver’s license; to excel in sports, one must train and practice; to retire comfortably, one must become an informed investor and actively invest for retirement. If your goal is success in business, then the formula is no different. There are certain musts that have to be fully developed, implemented and managed for your business to succeed. There are many business musts, but this article contains I believe to be some of the more important musts that are required to start, operate and grow a profitable home business. Do what you enjoy. What you get out of your business in the form of personal satisfaction, financial gain, stability and enjoyment will be the sum of what you put into your business. So if you don’t enjoy what you’re doing, it’s safe to assume that will be reflected in the success of your business--or subsequent lack of success. In fact, if you don’t enjoy what you’re doing, chances are you won’t succeed.

Take what you do seriously. You cannot expect to be effective and successful in business unless you truly believe in your business and in the goods and services that you sell. Far too many home business owners fail to take their own businesses seriously enough, getting easily sidetracked and not staying motivated and keeping their noses to the grindstone. They also fall prey to naysayers who don’t take them seriously because they don’t work from an office building, office park, storefront, or factory. Little do these skeptics, who rain on the home business owner’s parade, know is that the number of people working from home, and making very good annual incomes, has grown by leaps and bounds in recent years. Plan everything. Planning every aspect of your home business is not only a must, but also builds habits that every home business owner should develop, implement, and maintain. The act of business planning is so important because it requires you to analyze each business situation, research and compile data, and make conclusions based mainly on the facts as revealed through the research. Business planning also serves a second function, which is having your goals and how you will achieve them, on paper. You can use the plan that you create both as map to take you from point A to Z and as a yardstick to measure the success of each individual plan or segment within the plan. Manage money wisely. The lifeblood of any business enterprise is cash flow. You

need it to buy inventory, pay for services, promote and market your business, repair and replace tools and equipment, and pay yourself so that you can continue to work. Therefore, all home business owners must become wise money managers to ensure that the cash keeps flowing and the bills get paid. There are two aspects to wise money management. The money you receive from clients in exchange for your goods and services you provide (income) The money you spend on inventory, supplies, wages and other items required to keep your business operating, (expenses) Ask for the sale. A home business entrepreneur must always remember that marketing, advertising, or promotional activities are completely worthless, regardless of how clever, expensive, or perfectly targeted they are, unless one simple thing is accomplished--ask for the sale. This is not to say that being a great salesperson, advertising copywriting whiz or a public relations specialist isn’t a tremendous asset to your business. However, all of these skills will be for naught if you do not actively ask people to buy what you are selling. Remember it’s all about the customer. Your home business is not about the products or services that you sell. Your home business is not about the prices that you charge for your goods and services. Your home business is not about your competition and how to beat them. Your business is all about your customers, or clients, period. After all, your customers are

DETAIL AND EMPHASIS: A chef puts final touches on a customers meal the people that will ultimately decide if your business goes boom or bust. Everything you do in business must be customer focused, including your policies, warranties, payment options, operating hours, presentations, advertising and promotional campaigns and website. In addition, you must know who your customers are inside out and upside down. Become a shameless self-promoter (without becoming obnoxious). One of the greatest myths about personal or business success is that eventually your business, personal

abilities, products or services will get discovered and be embraced by the masses that will beat a path to your door to buy what you are selling. But how can this happen if no one knows who you are, what you sell and why they should be buying? Self-promotion is one of the most beneficial, yet most underutilized, marketing tools that the majority of home business owners have at their immediate disposal. Project a positive business image. You have but a passing moment to make a positive and memorable impression on people with whom you intend

to do business. Home business owners must go out of their way and make a conscious effort to always project the most professional business image possible. The majority of home business owners do not have the advantage of elaborate offices or elegant storefronts and showrooms to wow prospects and impress customers. Instead, they must rely on imagination, creativity and attention to the smallest detail when creating and maintaining a professional image for their home business. TO PAGE 14

BUSINESS DIGEST

East African Business Week I February 24 - March 2, 2014

Making a home based business work Get and stay organized. The key to staying organized is not about which type of file you have or whether you keep a stack or two of papers on your desk, but it’s about managing your business. It’s about having systems in place to do things.You want to establish a routine by which you can accomplish as much as possible in a given workday, whether that’s three hours for a part-time business or seven or nine hours as a full-timer. In fact, you should develop systems and routines for just about every single business activity. Small things such as creating a todo list at the end of each business day, or for the week, will help keep you on top of important tasks to tackle. Creating a single calendar to work from, not multiple sets for individual tasks or jobs, will also ensure that jobs are completed on schedule. Incorporating family and personal activities into your work calendar is also critical so that you plan from a single calendar.

FROM PAGE 13 Get to know your customers. One of the biggest features and often the most significant competitive edge the home based entrepreneur has over the larger competitors is the he can offer personalized attention. Call it high-tech backlash, but customers are sick and tired of hearing that their information is somewhere in the computer and must be retrieved, or told to push a dozen digits to finally get to the right department only to end up with voice mail--from which they never receive a return phone call. The home business owner can actually answer phone calls, get to know customers, provide personal attention and win over repeat business by doing so. It’s a researched fact that most business will come from repeat customers rather than new customers. Therefore, along with trying to draw newcomers, the more you can do to woo your regular customers, the better off you will be and personalized attention is very much appreciated and remembered. Level the playing field with technology. Avoid getting caught up in the hightech world, but you should also know how to take advantage of using it. One of the amazing aspects of the internet is that a one or two person business operating from a basement can have a superior website to a $50 million company, and nobody knows the difference. Make sure you’re keeping up with the high-tech world. The best technology is that which helps you, not that which impresses your neighbors. Build a top-notch business team. No one person can build a successful business alone. It’s a task that requires a team that is as committed as you to the business and its success. Your business team may include family members, friends, suppliers, business alliances, employees, subcontractors, industry and business associations, local government and the community. The most important team members will be your customers or clients. Any or all may have a say in how your business will function and a stake in your business future. Become known as an expert. When you have a problem that needs to be solved, do you seek just anyone’s advice or do you seek an expert in the field to help solve your particular problem? Obviously, you want the most accurate information and assistance that you can get. You seek an expert to help solve your problem. You call a plumber when the hot water tank leaks, a real estate agent when it’s time to sell your home or a dentist when you have a toothache. Therefore, it only stands to reason that the more you become known for your expertise in your business, the more people will seek you out to tap into your expertise, creating more selling and referral opportunities. Becoming known as an expert is a way of prospecting for business. Instead of finding new and qualified people to sell to, these people seek you out for your expertise.

WORKING AT HOME : Find a way to work when nobody else is at home or will be an inconvenience Create a competitive advantage. A home business must have a clearly defined unique selling proposition. This is nothing more than a fancy way of asking the vital question, “Why will people choose to do business with you instead of doing business with a competitor and buying his product or service?” In other words, what one aspect or combination of aspects is going to separate your business from your competition? Will it be better service, a longer warranty, longer business hours, more flexible payment options, lowest price, personalized service, better customer service, better return and exchange policies or a combination of several of these? Invest in yourself. Top entrepreneurs buy and read business and marketing books, magazines, reports, journals, newsletters, websites and industry publications, knowing that these resources will improve their understanding of business and marketing functions and skills. They join business associations and clubs, and they network with other skilled business people to learn their secrets of success and help define their own goals and objectives. Top entrepreneurs attend business and marketing seminars and training courses, even if they have mastered the subject matter of the event. They do this because they know that education is an ongoing process. There are usually ways to do things better, in less time, with less effort. In short, top entrepreneurs never stop investing in the most powerful, effective and best business and marketing tool at their immediate disposal--themselves. Be accessible. We’re living in a time when we all expect our fast food lunch to be ready in mere minutes, our dry cleaning to be ready for pick-up on the same day, and our money to be available at the cash machine. You see the pattern developing--you must make it as easy as you can for people to do business with you. You must remain cognizant of the

fact that few people will work hard or be inconvenienced just for the privilege of giving you their money. The shoe is always on the other foot. Making it easy for people to do business with you means you must be accessible and knowledgeable about your products and services. You must be able to provide customers with what they want, when they want it. Build a rock-solid reputation. A good reputation is one of the home business owner’s most tangible and marketable assets. You can’t simply buy a good reputation; it’s something that you earn by honoring your promises. If you promise to have the merchandise in the customer’s hands by Wednesday, you have no excuse not to have it there. If you offer to repair something, you need to make good on your offer. In what you offer is the other key factor. If you cannot come through with the same level of service for clients, they have no reason to trust you . . . and without trust, you won’t have a good reputation. Sell benefits. Pushing product features is for inexperienced or wannabe entrepreneurs. Selling the benefits associated with owning and using the products and services you carry is what sales professionals worldwide focus on to create buying excitement and to sell, sell more, and sell more frequently to their customers. Your advertising, sales presentations, printed marketing materials, product packaging, website, newsletters, trade show exhibit and signage are vital. Every time and every medium used to communicate with your target must always be selling the benefits associated with owning your product or using your service. Get involved. Always go out of your way to get involved in the community that supports your business. You can do this in many ways, such as pitching in to help local charities, becoming involved in organizing community events, and getting involved in local politics. You can join associations and clubs that

concentrate on programs and policies designed to improve the local community. It’s a fact that people like to do business with people they know, like and respect, and with people who do things to help the community. Grab attention. Small-business owners cannot waste time, money and energy on promotional activities aimed at building awareness solely through long-term, repeated exposure. If you do, chances are you will go broke long before this goal is accomplished. Instead, every promotional activity you engage in, must put money back in your pocket so that you can continue to grab more attention and grow your business. Master the art of negotiations. The ability to negotiate effectively is a skill that every home business owner must master. It’s perhaps second in importance only to asking for the sale in terms of home business musts. In business, negotiation skills are used daily. Remember mastering the art of negotiation means your skills are so finely tuned you can always orchestrate a win-win situation. These winwin arrangements mean everyone involved feels they have won, which is really the basis for building long-term and profitable business relationships. Design your workspace for success. Carefully plan and design your home office workspace to ensure maximum personal performance and productivity and, if necessary, to project professionalism for visiting clients. Resist the temptation to turn a corner of the living room or your bedroom into your office. You’ll want a separate room with a door that closes to keep business activities in and family members out, at least during prime business and revenue generating hours of the day. A den, spare bedroom, basement or garage are all ideal. If this is not possible, you’ll have to find a means of converting a room with a partition or simply find hours to do the bulk of your work when nobody else is home.

Take time off. The temptation to work around the clock is very real for some home business owners. After all, you don’t have a manager telling you it’s time to go home because they can’t afford the overtime pay. Every person working from home must take time to establish a regular work schedule that includes time to stretch your legs and take lunch breaks, plus some days off and scheduled vacations. Create the schedule as soon as you have made the commitment to start a home business. Of course, your schedule will have to be flexible. Give yourself a backup hour or two. All work and no play makes you burn out very fast and grumpy customer service is not what people want. Limit the number of hats you wear. It’s difficult for most business owners not to take a hands-on approach. They try to do as much as possible and tackle as many tasks as possible. Ability to multitask, is a common trait shared by successful entrepreneurs. However, once in a while you have to stand back and look beyond today to determine what’s in the best interest of your business and yourself over the long run. Most highly successful entrepreneurs will tell you that from the time they started out, they knew what they were good at and what tasks to delegate to others. Follow-up constantly. Constant contact, follow-up, and follow-through with customers, prospects, and business alliances should be the mantra of every home business owner, new or established. Constant and consistent follow-up enables you to turn prospects into customers, increase the value of each sale and buying frequency from existing customers, and build stronger business relationships with suppliers and your core business team. Follow-up is important with your existing customer base, as the real work begins after the sale. It’s easy to sell one product or service, but it takes work to retain customers and keep them coming back.

Entrepreneur

BUSINESS KNOW-HOW

East African Business Week I February 24 - March 2, 2014

Steps to Achieve Your Mission Ways to advance your vision and mission Value statement: Identifies the company’s core priorities and beliefs. It can be a powerful tool as you establish your brand image and company culture.

Hope Wilson MARKETING MOXIE n KAMPALA, Uganda - Last week, we explored the value of vision and mission statements. We discussed the differences between the two, the value that they provide to company stakeholders, and their promotional benefits. This week, we’ll build upon this foundation, addressing ways that we can advance our vision and mission.

Value Statements Last week, we studied PepsiCo as a positive example of vision and mission statements. Building upon these, PepsiCo also developed a set of guidelines that support this vision and mission. Called “Performance with a Purpose,” this list includes: Human Sustainability, demonstrated by “providing wholesome ingredients, responsible marketing and labeling, and strong community partnerships” Environmental Sustainability, demonstrated by their efforts to protect natural resources by using innovative, efficient approaches to operations Talent Sustainability, demonstrated by employee development programs and job opportunities for local residents Global Citizenship, demonstrated by “developing partnerships and programs in underserved regions that provide opportunities for sustained and improved health, environment and education (You can learn more about Pepsi’s well-developed visionary plan on their website: www.pepsico.com.) Though PepsiCo doesn’t refer to this list as a value statement, it has the same intent: A value statement identifies the company’s core priorities and beliefs. It allows stakeholders—including potential clients—to understand further the intent behind the vision and mission statements. It can be a powerful tool as you establish your brand image and company culture. Consider which values most contribute to the advancement of your vision and mission. Continue to hone your list until you have four or five key values for your company. Code of Conduct To achieve a goal, we must begin with daily habits and actions that support that goal. A code of conduct informs employees of how they should behave in the workplace on a day-to-day basis; it should support your company’s mission and vision. Let’s return to PepsiCo once more for an example of this concept.

Code of conduct: Informs employees of how they should behave in the workplace on a day-to-day basis; it should support your company’s mission and vision. Setting goals: Each year, you

should set goals for the company that advance your mission. Make sure your goals are SMART.

Mission, Vision and Values

Introduce your vision:

By sharing your vision and mission, you allow your passion to shine through. People want to be inspired, to be part of a bigger purpose.

Create daily remainders: It’s important to inspire your own employees, stakeholders and executive management. Create regular reminders of your vision, mission, values, goals, and code of conduct.

“

When you establish and communicate your company’s purpose, you create an opportunity for them to be part of this bigger purpose as a client or business partner.

PepsiCo states that all employees are expected to: “Show respect in the workplace; Act with integrity in the marketplace; Ensure ethics in our business activities; and Perform work responsibilities for our shareholders.” Codes of conduct are only effective if they are enforced; it should be easy for employees to report violations, without fearing retribution. Pepsi’s “Speak Up” hotline provides employees with a way to accomplish this. Other techniques that busi-

nesses use include: Creating punishments for employees who know about a code violation and fail to report it Clearly outlining a process for reporting violations in the employee handbook, clearly noting that employees will not be punished for reporting violations in the appropriate manner Posting the code of conduct throughout the office, on the company intranet, and frequently discussing them in employee meetings. Which behaviors help to support your vision and mission? What behaviors convey your company’s values? How will you enforce these behaviors within your company? Be sure to clearly state and communicate these expectations to your employees. Setting Goals Each year, you should set goals for the company that advance your mission. Some examples include implementing a new software system, starting a corporate social responsibility program, or launching an employee training program. As you hone your goals, make sure that they are SMART: Specific – Answers the 6Ws: who, what, when, where, why, and which Measurable – Has firm criteria that can be used to gauge progress Attainable – Ensures the team has the skills and resources to be successful Realistic – Can be accomplished within the given timeframe Time-bound – Has a deadline Furthermore, when you share these goals with your stakeholders, make sure that you explain how the goals will help you to move towards your vision for the future: This will help

to create stakeholder support.

client or business partner.

Introduce Your Vision When engaged in business networking, it’s common for new acquaintances to ask, “What does your business do?” Most people respond by listing their products or services: “We sell stoves,” they might say. Or “We provide construction services.” The next time you are asked this question, try sharing your vision and mission instead: “We envision a world where every child has access to good education. We contribute to this by selling affordable books and supplies, and helping to build school facilities in underdeveloped areas.” By sharing your vision and mission, you allow your passion to shine through. People want to be inspired, to be part of a bigger purpose. When you establish and communicate your company’s purpose, you create an opportunity for them to be part of this bigger purpose as a

Create Daily Reminders In addition to inspiring external stakeholders, it’s important to inspire your own employees. Create regular reminders of your vision, mission, values, goals, and code of conduct. When I work with firms that need to build their company culture, some of the ways that I suggest they communicate these components include: Print them on large posters and hang them in the office hallways and work spaces Post them on your company website and intranet Add your mission statement to your email signature block During staff meetings, discuss one aspect of your values, goals, or code of conduct Reward employees who demonstrate your values, promote your code of conduct, and advance your mission through recognition programs, bonuses, promotions, and other benefits It is helpful for all stakeholders— even executive management—to be reminded of the greater purpose and values that the company embraces. Now that you’ve established your vision, mission, values, goals, and code of conduct, use this foundation to build a great 2014!

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Your goals should be specific, measurable, attainable, realistic and time-bound

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 24 - March 2, 2014

The week in pictures MALNUTRITION FIGHT: A team of nutritionists from USAID Tuboreshe Chakula Project in Tanzania making a presentation about Nutrition and Food Fortification to women in Babati District. This was during the launch of the fight against Malnutrition in various Tanzanian Districts last week.

CUSTOMER CARE: Robert Gruttke, the Dell Head of Support and Deployment for Southern and Central Africa (L) and Bradford McKenzie, the Services Sales Director Southern and Central Africa at the launch of the Dell ProSupport Services in Uganda.

LETS WORK TOGETHER: Patrick Bitature, the Chairman Umeme Ltd (L) shakes hands with Fabian Kasi, Managing Director Centenary Bank after signing to unveil the CenteMobile-Yaka at Mapeera House last week. Centenary Bank is Ugandaâ&#x20AC;&#x2122;s largest indigeneous Bank.

HAPPY TIMES: Nyimpini Mabunda (2R) Managing Director Uganda Breweries Ltd pose for a photo with students who graduated from Makerere University Andrew Pamba, Beatrice Byaruhanga, and Richard Mugarura. They were part of the over 30 students that have benefitted from the EABL University Scholarship program of Skills for Life pillar.

LUCKY WINNER: NBC Bank Tanzania Liabilities and Affluent Banking Manager, Dorothea Mabonye (2 L), presses a button to get the first winner of the Weka Upewe grand draw in Dar es Salaam last week. Seated are the Gaming Board of Tanzania Inspector, Abdallah Hemedy, NBC Lake Zone Manager, Gaudence Shawa, the Head of Retail Banking, Musa Jallow and Raymond Mutagahywa the Acting Head of Branch Network and Channels for NBC. PHOTO BY PETER MGONGO.

EAC MATTERS: Stephen Asiimwe (R),the Uganda Tourism Board Chief Executive Officer attending an EAC meeting in Arusha on how Tour Operators and Safari Guides will streamline their work in line with the integration process. There were suggestions that registered Tour Operators and Guides will hand over tourists to their colleagues with in the region. Next to him is Boniface Byamukama the AUTO Chairman.

ADVERTORIAL

East African Business Week I February 24- March 2, 2014

UGANDA WILDLIFE AUTHORITY MPs impressed by UWA innovations, attractions in Queen Elizabeth NP

MPS trying out a dance at the visitors information centre in Queen Elizabeth during their recent visit.

embers of Parliament on the committee of Statutory Authorities and State Enterprises (COSASE) last week joined the list of the few lucky tourists to have interacted at a close range with a pride of seven healthy lions in the open grasslands of Queen Elizabeth National Park, after an adventurous boat ride on Kazinga channel the previous evening. The legislators led by Patrick Amuriat flanked by his vice chairperson Ms Angelina Osege, members Ephraim Biraaro, Peter Mugema Panadol, John Ssimbwa among others forfeited their breakfast and the comfort of their beds to ensure they caught up with the shy cats which are found of seeking shelter in the shrubs when the early morning sun heat reigns. With the help of tracking device, the management of Queen Elizabeth who have radio collared selected heads of various prides made it possible to locate the much sought after lions on Wednesday morning The cats inspite of human presence relaxed in the open offering the legislators and technical staff ample opportunity to capture unique images. Lion tracking according to the Warden Tourism here, Mr. Godfrey â&#x20AC;&#x2DC;Balyesiima has gained popularity since the visitors are assured of sighting the lions though it comes with extra cost of 150 dollars under what is dubbed experiential tourism. Several visitors are willing to part with the dime in order to move with the researchers to track the lions mostly in the wee hours of the day or the evening .Legislators hailed UWA management for the innovation which will attract more tourists including repeat visitors since a trip without sighting lions appears incomplete. Awesome boat ride on Kazinga channel Before sighting the lions in the Kasenyi kobs mating grounds, the legislators had debated and

Dr. Andrew Sseguya enjoying a boat ride on Kazinga Channel with the legislators.

passed a resolution that a boat ride on Kazinga channel was the highlight of their trip to one of Ugandaâ&#x20AC;&#x2122;s oldest and most popular national parks. They could not believe the sight of getting as close to the wildlife including big mammals like elephants, hippos and buffalos like they did aboard the UWA boat. The experience was made richer and more exciting by a professional and passionate interpretive guide Ms Patronella Bira fondly known as Patra who lectured them on the behaviour of various mammals and birds, reproductive cycles, relationships and other interesting drama within their schools, prides and herds. The law makers optimally utilized their cameras and I pads to capture every moment occasionally wondering why many countries in other continents charge visitors exorbitantly to look at museums and few adopted animals in the zoos. Hon. Peter Mugema Panadol from Iganga Municipality was convinced that Uganda had a lot to offer in terms of wildlife and spectacular landscapes/sceneries urging the relevant stake holders to scale up marketing of the country as a prime destination. Hon. Mugema and his colleagues were in agreement that the Tourism sector needed an improved budget to promote the countryâ&#x20AC;&#x2122;s potential while the efforts to conserve the natural heritage ought to be supported in all ways possible. Domestic Tourism Legislators were impressed with UWA innovations to construct alternative accommodation and catering facilities for the budget visitors to spend longer time in the national parks like Queen Elizabeth where a number of tourists would visit in a rush due to lack of adequate and affordable

UWA staff joined the MPS for a group photo.

accommodation. MPs noted that the existing Mweya Safari Lodge cannot cater for all accommodation needs and classes of visitors and thus the provision of alternative accommodation by UWA through converting former senior staff houses into self catering units should be supported. Some of the legislators promised to make use of the said facilities in future by bringing their families to spend weekends at the Mweya Peninsular which offer a panoramic view of the park sprawling on the floor of the Western Rift Valley. Three houses, Jumbo, Pelican and Hippo which combined can offer accommodation to at least 20 visitors, have recently attracted domestic tourists espe-

cially families to spend holidays and weekends in the park. The self catering houses have also been supplemented by more rooms in the lower camp overseeing Kazinga channel and the flourishing Tembo Restaurant offering a diversity of mouth watering dishes and drinks at affordable and friendly rates. Plans are also underway to renovate Buwenda Guest House near Katwe salt Lake to provide accommodation and conference facilities. Problem Animal Management interventions The legislators were impressed by the innovations to dig deep and long trenches to prevent elephants from raiding crops and disturbing communities neighbouring the national park. However, the UWA Executive Director Dr. Andrew Seguya informed them that trenching was one of the most expensive ventures and that a t times they meet obstacles like roads. The elephants are intelligent mammals which can choose to walk along the trench until they reach a road and cross to the communities, or at times they use they refill the trenches to rescue young ones which have fallen in or even to ease their crossing. The legislators encouraged management to pursue the possibility of fencing off the problematic areas of the parks. Modern Gate The law makers also spent the time admiring the architectural plans for the modern main park gate at Kabatooro to replace the current grass thatched one. The two lane state of the art gate is designed to accommodate the structures and installations for the recently introduced cashless systems of payment using the magical wildlife card with a micro chip on which all the visitor details and the activities one has paid for to enjoy in the park are loaded. The House members advised UWA to strengthen systems to minimize revenue leakages, ensure safety of the tourists, staff and investors, and enhance community benefits for the areas neighbouring the parks and reducing Human-wildlife conflict. Through their interaction with UWA management, legislators learnt about challenges faced by conservationists including encroachment on the park land, rampant poaching, poisoning of lions by the pastoral communities, wild fires, natural disasters like diseases and the cost of maintaining roads within the parks among others.

The law makers admiring the architectural plans for the modern main park gate at Kabatooro.

TECHNOLOGY

East African Business Week I February 24 - March 2, 2014

President Kabila is being caught up in the biggest dam project in the world.

DStv Uganda launches new Decoder nFebruary 2014: MultiChoice Uganda through its DStv brand has announced another innovation milestone with the launch of its next-generation PVR decoder - the DStv Explora. This move heralds an exciting new era for digital television which allows viewers to gain more control and personalize their DStv viewing experience. The purchase price for the Explora in Uganda will be UGX 958,000 for the decoder only and UGX1,160,000 for the full kit. The Explora introduces additional new features and offers more recording space, providing DStv subscribers with a world of extraordinary entertainment. With

the Explora subscribers can now: · View more - with much more Catch Up, viewers can save up to 220 hours of personal recorded content, view one programme while recording the other and record lots more series, movies and sport; · Discover more - with content discovery, viewers can search for their favorite programmes and find out when next they will air again without surfing the TV guide; And · Control more – where viewers can pause live TV for up to 2 hours, retain buffering when changing channels, conduct word searches and even personalize individual user themes. “It is another innovation which

bears testament to our continued investment in technology to ensure DStv delivers the best television experience in Uganda. The Explora forms part of the businesses fast technology developments and ensures that our subscribers get the best viewer experience. We can only appreciate the evolution of television that our susbcribers have enjoyed as result of some of our exciting innovative products we have introduced over the years such as the Explora” says Charles Hamya, General manager MultiChoice Uganda. With its ability to meet the most unique viewer needs in the fast changing world, the Explora is an

unparalleled technological innovation set to change television as we know it while providing convenience to meet DStv subscriber’s busy and demanding lives. The Catch Up services provide a rich, high-definition video-on-demand experience. Expanded Video-on-Demand Content – Catch Up The DStv Catch Up service has been significantly expanded on the Explora, and now offers three times more video-on-demand programming to DStv subscribers. This means that viewers will always be able to catch-up with all the hot new TV series. DStv Explora is packaged with a

brand new, stylish HD user interface, which makes finding favourite shows or movies on Catch Up so much easier. Content is displayed using HD poster-art – just like an Internet VOD service. The Explora additionally has powerful search features that help subscribers find programmes quicker and easier as it searches across the eight-day TV Guide, Catch Up, and their own recordings (playlist). Explora’s remote control further enhances the experience with dedicated shortcut buttons to DStv Central, Catch Up, Playlist, Search, Live TV and other viewing options. Through the Explora, you will never miss your favorite programme ever again!

Dell upgrades customer services BY BAZ WAISWA n KAMPALA, UGANDA- International computer technology provider, Dell, last week announced that they will be providing, ProSupport, their industry leading support service that enables them to provide technical support their customers in Uganda. Dell officials, during a news conference to launch the customer care service in Kampala, said the new service offers access to highly trained and certified engineers to address challenges faced by the customers. “Our customers in Uganda will now get all the benefits of Dell’s ProSupport services in the exact manner as customers in Europe or US markets. Dell Services will provide expert support for our customer environments, with various response options for spare parts delivery and onsite engineering resources,” Christian Yob said. With Dell ProSupport, a customer has a twenty four seven access to certified hardware and software experts, timely delivery of spare parts, remote monitoring, crisis management, monthly check ups, system maintenance and quality customer care. This kind of systems upgrades and servic-

ing enables clients to carry on with their work schedules on time and reduces monetary and resource loses. The global company, five years ago, started a transformational initiative to become a leading provider of end to end enterprise solution and services. “We want to ensure that we listen to our customers and give them what they are asking for,” Bradford McKenzie, the Dell Services Sales Director, Southern and Central Africa told journalists why ProSupport is important to Dell. To achieve this, through their partners, Dell has put in place a telephone number onto which their clients can call to report malfunctions and have the problems diagnosed. “If a dispatch is required, we can have our engineers sent to a customer site to sort out the problem. We want to be closer to our customers,” Yob explained. Yob stated that they are undertaking an investment of about $1million to kick start the service in Uganda and have customer issues addressed quickly. Dell together with partners are also having a store of spare parts worth between $500,000 to $1m full stocked to enable quick response to emergencies. Altogether, Dell

ships out spare parts worth $11 million dollars annually to a vast global market. ProSupport services have been operational in 27 English speaking countries in Africa with Kenya, Tanzania and now Uganda being the only countries in East Africa enjoying the supplementary services. Andrew Ochola, Dell channel Account Manager, East Africa said they have recorded success stories in both Kenya and Tanzania where customer satisfaction has improved in the four years ProSupport has been running in the coastal nations. In Uganda Dell, according Ochola, Dell is growing pretty strong on the client front with increased use of desk top computers and laptops. He adds that there is a shift from only clients picking up storage services to enterprises to attract governments. In Uganda, Dell is working with two partners, Repair Junction and Ensure, who will offer the service’s basic warranty upon purchase of a product or service at a fee that differs from products t product. Dell, which has interest in hardware and software development, servers, networking, storage and cloud computing has positioned itself as one of the leading computer hardware and software makers onto which it continues to be innovative to take on more high

tech computer services like cloud computing. To maintain their position in a competitive ICT global business, Dell has carried out acquisitions of ICT firms like SonicWALL Worldwide, Wyse,, Quest Software, KACE, and others to enable them develop products and services to meet their business objectives. These acquisitions have helped them to position themselves to become an all-round IT global solutions provider and to also attract some of the world’s top organization who either use Dell products and services or are powered by Dell’s vast IT solutions. Through practical innovations, Dell builds a relationship model different from their competitors but align with their partners to answer customers pressing needs. In his presentation, Mckenzie explained that close to three billion people will connect electronically via mobile or internet by the year 2014, one billion of which by 2020 will be in Africa. HE further says that $20bn will be spent on cloud computing worldwide and another $440 billion was spent on IT in emerging markets in the year 2013 representing a 10.4 percent increase from the year 2010.

TOURISM

East African Business Week I February 24 - March 2, 2014

Single visa out amidst squabbling OUR FIRST: Tourists, Allison Alto-Bond, Laia Sole Amat and Paul North line up in between Presidents, Yoweri Museveni, Paul Kagame and Uhuru Kenyatta after the official launch of the Single Tourist Visa in Kampala last week. BY JOHN SAMBO nARUSHA, Tanzania -A compromise is being worked out to suit the East African Community (EAC) Partners concerning cross-border tourist circuits, but observers say it may be an uphill task. The situation comes against a backdrop when the East African Single Tourist Visa has been introduced and is now operational in Kenya, Rwanda and Uganda. Tanzania is yet to join while Burundi is leaning towards strong interest. Tanzania says the revenue sharing formula is suspect.

Kenya and Tanzania are caught up in a long standing dispute over allowing tour drivers to ferry tourists in their relevant countries. The Kenyans complain that Tanzania does not allow their drivers to operate in Tanzania. Last week, the Tanzania Society of Travel Agents (TASOTA), insisted that tour vehicles from neighbouring countries should continue being denied entry into Tanzania. They said their members’ livelihood depends on this restriction. Tanzania also charges Ugandan tour operators a $100 fee as a working permit.

However for Kenyan operators to satisfy Tanzania authorities, they must be in a four-wheel drive vehicle with Tanzanian registration numbers and driven by a Tanzanian national. Apparently Kenyan tour guides/drivers are classified as foreigners and pay same fee as tourists, to enter premium parks. This does not apply for Tanzanian tour/driver guides who are charged much less. There is a fierce rivalry between East Africa’s biggest countries over the rich pickings from the tourism industry which in 2012 brought nearly $3 billion in total to the EAC. The five-day Arusha meeting which

ended Friday, was supposed to come with answers that would resolve the situation. The three Partner states raised their concern on their tour operators being denied entry into either country in 3rd and 4th Meeting of the Sectoral Council on Tourism and Wildlife Management (SCTWM) in February 2010 and in September, 2011 respectively. The EAC secretariat thus requested each Partner State to present their issues in writing to the so as to enable coordination of the meeting between the three Partner States. Among issues raised were; Partner States denying entry of tourist

Tz sets four anti-poaching points BY PATRICK KISEMBO DAR ES SALAAM, Tanzania - The government has outlined four priority areas to combat wildlife poaching and illegal trafficking, Recently the Minister for Natural Resources and Tourism, Lazaro Nyalandu , highlighted these areas during a roundtable discussion with stakeholders in Dar es Salaam. He said the container control programme will be introduced to increase capacity for efficient and thorough monitoring of export containers at air and sea ports. “We are expecting to conduct a comprehensive training programme for customs staff on aspects of risk analysis, cargo inspection, information exchange and post-seizure investigations,” he said. Nyalandu said port control units will be established at container terminals, with liaison points with the Wildlife Crime Unit and existing National and Transnational Serious Crimes Unit. According to him, each unit will be equipped to target high-risk containers, increasing the efficiency of searches. “We shall ensure that customs departments are equipped with

British underpin UWA efforts in Uganda BY SAMUEL NABWIISO

MENACE: The government has set up the Wildlife Crime Unit as a focus of attack to limit more elephant poaching. and trained in the use of high-tech scanning equipment and trained sniffer dogs,” he said. He said departments will also be given additional staff members in order to increase the rate of detection of smuggled goods. The minister emphasised that selected staff will have to act as clandestine monitors, with recording devices, to support intelligence gathering. He said the first priority of the government is to boost and align the intelligence capabilities in the wildlife sector and improve links with national systems and

response mechanisms, including the National and Transnational Serious Crimes Unit. “Our strategy therefore includes the creation of a Wildlife Crime Unit housed in my Ministry but effectively linked to all other arms of government. “This national Wildlife Crime Unit will be overseen by a proposed Ministerial Committee on Wildlife Security that will allow a linkage to other related Ministries, in order to unite the wildlife and security sectors in addressing wildlife trafficking,” he said.

vehicles registered in other Partner States, harassment of driver guides at the border crossing into another Partner State, disparities in fees charged, cross border cooperation in wildlife law enforcement, cooperation and support in addressing multi-lateral environment agreements. The Arusha meeting was scheduled to discuss these challenges and also deliberate on how to effectively involve other sectors to improve and enhance cooperation in Tourism and Wildlife Management sectors in line with Articles 115 and 116 of the Treaty for the Establishment of the East African Community.

nKAMPALA, Uganda---The British High Commission in Kampala, recently handed Uganda Wildlife Authority (UWA) 5000 pounds towards fighting illegal poaching in the Uganda’s national parks Allison Blackburne, the High Commissioner, said although Uganda has a high potential to earn more revenue from the tourism sector, the country may not see this potential if it does not intensify its efforts in combating illegal poaching. “The illegal wildlife trade is so much more than just an environmental issue threatening biodiversity and ecosystem but it drives corruption and insecurity and undermines efforts to cut poverty and develop sustainably developing countries like Uganda should develop efforts to see that the problem is controlled this is the only way the country can benefit more from the tourism sector,” she said. The global ivory trade has more than doubled since 2007 with prices now at $2,000 per kilogramme. UWA Executive Director Dr Andrew Sseguya thanked the British, saying the money will help them in

buying gadgets needed in tracking poaching in the country’s national . However, he requested the government to speed up the amending of the tourism regulations to bring them up to date. “Our Laws need to be reviewed especially the Wildlife Act, but we are very happy that the reviewed act is at Cabinet level. The amended law, once approved by the Parliament, will have stringent and deterrent punishment for persons convicted of wildlife crimes,” he said

“

“Our Laws need to be reviewed especially the Wildlife Act, but we are very happy that the reviewed act is at Cabinet level.

ENTERTAINMENT

East African Business Week I February 24 - March 2, 2014

Why Ugandan songs ON DSTV no longer last THIS WEEK

BY WINNIE MANDELA

nM-Net SERIES REALITY (DStv Channel 115) GIRLFRI3NDS (Premiere): Emma Willis returns to host a new round of the dating show in which three women try to find love by selecting eligible bachelors to visit them in an opulent mansion. Watch it from Thursday 27 February at 21:00 CAT.

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.

nKAMPALA- UGANDA -The late Philly Bongole Lutaaya’s songs continue to amaze in 2013 and yet he recorded them in the 1980s. Afrigo Band one of Uganda’s celebrated bands also has a lot of enduring songs. Some were recorded in the early 1990s but listening to them now, one would think they were recorded yesterday. The same cannot be said of songs being released today. Ugandan songs of these days seem not to live long enough as to co-exist even with the next song released by the same artiste. Today, we have ‘Valu Valu’ and it is in every night club, on every pair of lips, cherished by the young and old, and playing on all airwaves, and the next day we have ‘Badilisha’ doing the same and burying the former as if it never existed. Not so long ago, we had Rema’s ‘Oliwange’ and Fire ‘Tonight’ were very huge songs, but they lasted for under 6 months, with her latest ‘kukaliba’ making us forget those two even existed. This is in contrast to the great and enduring records by the late Elly Wamala, Philly Bongole Lutaaya and Afrigo Band whose songs –from the first to the last sounds equally good and displays the same kind of standard they must have done at their time.

Kamwokya based musician Bobi Wine puts the blame on the ‘curse’ of variety stemming from the easy access to resources for production. He says that the current economy offers the public freedom of choice of television stations, social media/internet and as a result, artistes, producers and consumers have more power than back in the day when it was hard to break through. Many artistes mean consumers will always have something new while forgetting the old. It also means that artistes will not take time to produce songs that will last, because of the desire to have some more music out. In the 1970s, 1980s and early 1990s, Uganda had a just a few artistes with limited facilities so when a hit dropped, the crowds embraced it like a new baby, treated it like an only child and even when the next one came, two three or more lone children would co-exist. Dream studios manager Eddy Yawe attributes the failure to the need to make quick money by artistes in the music industry today. According to him, a song like ‘Basima Ogenze’ is crosscutting and that universality gives it an advantage over other songs. ‘Emmesse’ on the other hand passes for a momentary hit – one to make an artiste famous so that he throws a concert and gets some money or makes a better hit and gets a bigger fol-

The late Philly Lutaaya lowing.” The competitive nature of the industry has surely affected the longevity of songs. Sometimes good songs are actually produced, but better ones do come through in a short span of time making the public forget the previous ones. In some instances the artistes entering the field have little or no training and experience. Time and thought go into producing great songs so a lasting song is a well written song. Sometimes it is not about the song playing in the media but the ideology. Some people have complained

about the attitude of people who distribute the music, from DJs to radio presenters and others. They tell you the song is now old when you’ve hardly made enough sales to support you into another The free entry of artistes and the diversity available to audiences has cost the industry great songs not only in Uganda but the world over. Even in the United States, or in the United Kingdom, its common to find this time next year the songs that were hits are forgotten.Therefore artistes have to take time, especially when they are off the limelight, to do a lot of work.

Golola to battle Mugula nSONY ENTERTAINMENT (CHANNEL 127) CSI: Crime Scene Investigation, a gritty, fast-paced drama series set in the world of forensic science, returns for another season of Emmy®-winning criminal intrigue. Once again this vintage series transports viewers on to the mean streets of Las Vegas, where a sinister underbelly belies the glitz and glamour. On Tuesdays at 20:00 CAT.

nKampala, Uganda –Moses Golola will next week on 7th March take on Ronald Mugula in what will be a tale of friends turning into foes at least for the time the two kick boxers will spend in the ring in a non-title fight at Freedom City. The fight commissioned by Kick Boxing Federation of

Uganda and promoted by KT Promotions pits two of the countries strongest and bravest fighters and the result will give bragging rights to whoever will emerge victorious. While Golola is regarded by many as the best kick boxer Uganda has ever seen, the emergence of Mugula and his eye catching style makes this

KCCA approves chameleon launch BY WINNIE MANDELA nKampala, Uganda –Considering all the hardships from Kampala Capital City Authority and Uganda Police, organizers had to go through last year to hold concerts at the spacious Kyadondo rugby grounds, Dr. Jose Chameleone has decided to get an early pass to hold his concert at the spacious grounds. After the misconduct that was experienced at the Battle of Champions concert that was between the

GoodLyfe Duo and the Gagamel CEO Bebe Cool, which was supposed to end as early as midnight according to KCCA ground rules but it went on up to 4am in the morning, the organizers of the Battle of the Titans, Chameleone Vs. Davido, faced a guarantee payment of 30M to hold the concert. News coming through confirms that Police and Kampala City Council Authority (KCCA) have allowed Jose Chameleone to hold his concert at Kyadondo Rugby Grounds. Chameleone will hold the first major music concert of 2014 on 28 March at Lugogo. The concert is expected to

feature as many artistes as possible and on this day he will launch his latest music album Tubonge as well as celebrate 14 years as a commercial musician Superstar Jose Chameleon is also known to pack venues to full capacity for any type of concert he decides to do. This year he has planned to unleash yet a bigger concert for the ‘Tubonge’ single. Sources close to the Leone Island boss say he wants to make it bigger than ‘Badilisha’ which could have broken the record for concerts at the venue where it was launched.

fight a fascinating duel. Golola is credited for being the man who fathered kick boxing in the country after he singlehandedly though in a comical way promoted the game. He promoted kick boxing to give it a platform that is being enjoyed by the likes of Mugula, Titus Tugume and other upcoming kick boxers. Mugula arrived when Golola’s weakness as a kick boxer had been exposed by Hungarian opponents Andreas Naggy and Mate Zsamboki. Mugula most admired for his technical abilities gath-

Golola Moses training

ered a huge fan base when he conquered Adreas Naggy the Hungarian who exposed Golola’s kick boxing inabilities Since Mugula’s arrival fans have been wondering who of the two fighters is better, now that the two are going to fight, an answer is going to be found. In the last few days words have been treading from one side to another camp giving more hype to the fight build up as it’s customarily done. Golola goes into this match with a win from his previous fight after he knocked out Tugume in the first minute of their fight.

EAC

East African Business Week I February 24 -March 2, 2014

EAC acquires compliance tool nARUSHA, Tanzania - The Secretariat is to implement a way to monitor member countries who fail to comply with the agreed provisions of the East African Community Common Market Protocol. According to a press release issued last week, the EAC Secretary General Amb. Dr. Richard Sezibera said, “The Scorecard is well aligned with the EAC’s implementation priorities. It will foster peer learning and facilitate the adoption of best practice in the region. This will contribute to and strengthen the regional market, grow the private sector and deliver benefits to consumers.” The Scorecard is entitled: East African Common Market Scorecard 2014: Developed with the help of the World Bank, the new Scorecard will assess the progress toward developing the EAC Common Market. The Scorecard measures Partner States’ compliance to the free movement of capital, good and services. However no mention is made of the penalties

Richard Sezibera, EAC Secretary General member countries are likely to face for non-compliance. Dr Richard Sezibera officiated at the launching ceremony of the Scorecard at the Secratariat. It was developed at the request of

the EAC Secretariat and developed over a period of 18 months under the supervision of the EAC Secretariat and Partner States. The areas of capital, services and goods were selected for scoping as they are foundational for the operation of the common market. Catherine Masinde, Head, East and Southern Africa, Investment Climate, said, “The EAC Scorecard provides transparent, rigorous, unbiased and client-led data on the key implementation gaps to the integration of the region’s economies. It also highlights possible reform areas to improve compliance to the Common Market Protocol.” The chairperson of the EAC Council of Ministers, Mrs Phyllis Kandie, said the EAC community deserves an effieicent and effective Common Market. She said: “People in the region would like to enjoy the benefits that come along with market integration.” She said because of the slow pace of implementing the protocol, the optimism among East Africans

during the launch of the protocol is fading away and being replaced by some level of despair.” The restrictions identified by the Scorecard limit cross-border trade and foreign direct investment into the East African region. The Scorecard notably identifies at least 63 non-conforming measures in the trade of services and 51 non-tariff barriers affecting trade in goods while in the area of Capital, only 2 of the 20 operations covered by the Common Market Protocol are free of restrictions in all of the EAC Partner States. It makes four key recommendations: Elimination of non-tariff barriers; greater effective implementation of the common external tariff; complete elimination of tariffs and equivalent measures and continuation of the process of harmonization and mutual recognition of sanitary and phytosanitary standards as well as standards preventing technical barriers to trade.

EALA members tour Kenya

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The Scorecard is well aligned with the EAC’s implementation priorities. It will foster peer learning and facilitate the adoption of best practice in the region. This will contribute to and strengthen the regional market

EAC Secretariat

EABC set to build a regional business centre in Arusha BY ELISHA MAYALLAH

The East African Legislative Assembly (EALA) Members in session in Arusha nARUSHA, Tanzania - Members of the East African Legislative Assembly (EALA) are currently on a 10day extensive tour of Kenya that ends this weekend. The tour which is being held with the support of the Kenya government through the Ministry of East African Affairs, Commerce and Tourism, involves touring several projects and meetings with various stakeholders in five counties. In his address to the 3rd Meeting of the 2nd Session of the 3rd Assembly in November 2013, President Uhuru Kenyatta pledged his government’s support for the Kenya tour. “Madam Speaker, my government not only supports the Assembly’s working tours; we have committed ourselves to facilitate your tour of our country. If East African integration is to be truly people-centred, the Assembly must be able to fully discharge it responsibility of sensitizing the Community’s citizens,” President Kenyatta said at the time. The visit takes the EALA to Mombasa, Kilifi and Nairobi counties in the first leg before winding up with a tour of Nakuru and Machakos counties. The main objective is for the EALA to appreciate the diversity of the Kenyan people and the development initiatives that Kenya has to offer to the region. According to a press release, ‘At the same time, the legislators shall interact directly with citizens and hear their

views, aspirations and fears on the integration process. Legislators are also expected to get first-hand experience on the workings of a devolved government following the promulgation of the Constitution in Kenya in 2010’. According to the Co-ordinator of the trip, EALA MP (Kenya), Peter Mathuki, the tour will give a chance for the legislators to fully apprise and acquaint themselves with developments in Kenya and key integration issues. Mathuki said at the start of the tour, “Article 5 of the Treaty envisages a People-centred integration. In this regard, we must enhance involvement of the people in deciding on the matters of the Community. It is important for the Assembly to be in tandem with the needs of the people through structured interface and the working tour is one such avenue.” Notable destinations include, Kenya Ports Authority and then a visit to the Mombasa County Government and the Kilifi County Government respectively. While in Nairobi, EALA is to meet with the top leadership of the Lamu Port Southern Sudan-Ethiopia Transport (LAPSSET) Corridor project, Project, Konza Techno City, Vision 2030 Secretariat as well as the officials of the Kenya Private Sector Alliance (KEPSA) and the East African Business Council (EABC).

EAC Secretariat

nARUSHA, Tanzania - As part of strengthening their operations in Arusha, the East African Business Council (EABC) plans to construct a one-stop centre of regional bodies affiliated to it in Arusha. The proposed facility will also include a training unit for business people, the EABC told East African Business Week. The EABC’s Executive Director, Andrew Luzze said the council has secured funds to put up the ultra-modern regional centre, pending availability of land, in Arusha region. “Last week, we met the Arusha district/urban authorities over a request for a piece of land and were assured of one because already some areas have been demarcated for international and regional organizations,” Luzze said. Luzze said the Council has written to governments of all the five EAC partner states seeking land in their respective capitals for investment purposes. But Arusha remains the EABC preference because it is the EAC headquarters. He said the proposed building would include EABC headquarters and will host several regional business organizations operating from different premises in Arusha and others from

the rented offices of the Council. These include; the East African Farmers’ Federation (EAFF), Eastern African Grain Council (EAGC), East African Employers’ Organization (EAEO), East African Womenin-Business (EAWiB) and the Federation of East African Pharmaceutical Manufacturers (FEAPM). Meanwhile: the EABC is concerned with fears of a fragile situation in South Sudan following some reports that the ceasefire between the two warring parties had not been honoured to the letter. This concern was raised Luzze, who stressed that peace is a key determinant of the uptake of business in the region, as it is all over the world. “We expect some pressure on long-term peace negotiations in South Sudan as we now see foreign investors re-assessing their risk and should culminate in a slower incline than has been the case in the new nation which has already applied to join the EAC bloc,” he emphasized. South Sudan is a key market for exports from East Africa partner states, and any distortion will hamper all the business prospects. South Sudan has been contributing a lot in business growth in the region. It is also a market for products from Kenya, Uganda, Rwanda and Tanzania.

AGRICULTURE

East African Business Week I February 24 - March 2, 2014

Uganda maize prices stay stable “

BY SAMUEL NABWIISO nKAMPALA, Uganda —Maize prices have remained stable in Uganda despite a shortage and looming famine being experienced in Kenya. A survey carried out in most maize millers in Kampala showed that they still have sufficient maize stocks following a good harvest season last year. In January Kenya started experiencing shortages due to the long dry spell which hit some of the maize growing parts of the country especially in north eastern parts of Kenya. Kenya’s Cabinet Secretary for Agriculture and Livestock, Felix Koskei admitted there is a crisis. He however said the Kenyan government is looking for alternative means. “We are facing huge challenges as a country, but I want to assure the nation that we have enough food that can feed the people until May. Although we have a shortage of between seven million and 10 million bags, we are monitoring the situation to ensure that we respond as early as possible,” The Minister was quoted by one of the dailies in Nairobi. Kisenyi maize dealer, Kizito Philipe Mukasa said, “Yes there is problem in Kenya, but our people should not worry, because Uganda still has enough. Most stores in Kampala, Jinja, Gulu and Masindi are well stocked.” He said prices may be stable until May but he warned that if the crisis in Kenya does not improve, it will inevitably lead to a decline in supply and increase in the price of maize flour in. Currently the price of a kilogram of unprocessed grade one maize in

“Yes there is problem in Kenya, but our people should not worry, because Uganda still has enough. Most stores in Kampala, Jinja, Gulu and Masindi are well stocked.”

DEALER: The maize sector in Uganda is boosts of a surplus but Kenya is faced inadequate supply of maize Kampala is between Ush550 and Ush 600. A 50 kilogramme sack of maize flour costs Ush60,000 (about US $24) at the wholesale market. Kenya has frequently been susceptible to shortages due to the severe climatic conditions which affect the production of maize across many parts of the country.

It is also the biggest user of fertilisers in the East African Community. According to the study carried out by Tegemeo Institute, an agriculture think-tank attached to Egerton University, maize production fell by 33.4% due to poor rainfall and delays in planting. But although some Kampala maize

dealers are projecting prices not to hike, other dealers are worried. Peter Walumbe a manager at the Baida Maize Company in told the East African Business Week that the Kenyan situation poses a threat when purchasing from Eastern Uganda. “When farmers in Eastern Uganda realize that Kenya has run short of

maize, our supplies also changes. The price drastically goes up, because they know there is high demand for their produce this does affect supply side and profitability,” he said. In Uganda, if the prices go up, it has a negative impact on the livestock sector , because many cattle keepers depend on maize as a supplementary feed. This also applies to the poultry sector. According to Mzee Amos Mutabazi, a dairy farmer in Wakiso, Central Uganda, “Livestock feeds processing companies also hike their prices to catch up with the increasing price for maize on the local market.”

New Tanzania horticulture boss chosen BY EABW REPORTER nDAR ES SALAAM, Tanzania-Eric Ng’imaryo has been recently chosen as the new Chairperson of the Tanzania Horticultural Association (TAHA). He replaces Colman Ngalo who has held the position for a decade. Ng’imaryo said he is honoured and humbled to have been selected as the association’s chairman and that he is looking forward to taking up the roles and responsibilities by working with the board and secretariat to ensure the association’s vision is attained. “I will play my part in making TAHA even more of a success in the future. I would also like to thank Mr. Ngalo, the outgoing Chairperson, for his great leadership and commitment,” Ng’imaryo said. He also extended gratitude to Ms. Jacqueline Mkindi, the CEO, and the TAHA Secretariat for their strong contribution to TAHA and the horticultural industry.

NEW BOSS: Eric Ng’imaryo the new Chairperson of TAHA “Jackie has been an exemplary CEO. Her commitment has commanded trust and respect from the policy makers and development partners,” he added.

Ng’imaryo has been the Chairman of Arusha Blooms Company Limited, one of the leading vegetable producers and exporters in the country.

He is a professional lawyer, who has been practicing law in Tanzania since 1987. He is also a commodity trader, farmer and creative writer. Along with Ng’imaryo, the Vice Chair and eight members of the TAHA Board were also chosen at the TAHA’s Annual General Meeting (AGM) which took place in Arusha recently. In his speech, Ngalo said: “On behalf of the outgoing Board, I would like to congratulate Eric on his election as the Board Chairman and looking forward to working with him in the years ahead.” The Tanzania Horticultural Association (TAHA) is an apex private sector member based organization and has participated effectively in transforming the Tanzania horticulture since its establishment in 2004. TAHA has attracted support from a number of partners including the government, the Development Partners such as USAID, BEST-AC, the Royal Netherlands Embassy, ITC, and Finnish government.

“

I will play my part in making TAHA even more of a success in the future. I would also like to thank Mr. Ngalo, the outgoing Chairperson, for his great leadership and commitment. On behalf of the outgoing Board, I would like to congratulate Eric on his election as the Board Chairman

COMMENTARY

East African Business Week I February 24-March 2, 2014

“ The higher women climb up the corporate landder, the fewer children they have, whereas the reverse is true for men Alexis Graham

CONFIDENT: The author says if Tanzania continues to make girls’ education a priority, more women will steadily advance in society.

Women in leadership add value

t is a fact that organizations with diverse leadership teams, including women, have been found to be those with the best overall performance and highest rates of profitability. More than that, organizations with diverse leadership teams have higher operational excellence in the areas of work environment and values, direction, leadership, motivation, innovation, coordination and control, accountability and external orientation. Despite these important findings, however, women in top positions are rare in Tanzania. Why is this the case and how can we ensure that in the future both men and women are well-represented in leadership roles in order to optimize successful outcomes for the country? Tanzania is one of the fastest growing economies in Africa, boasting growth of 7% GDP per year. The government is in the midst of implementing several initiatives that aim to increase economic growth and elevate the skills and education levels of all Tanzanians. While

gender issues are on the agenda for policy makers, the reality is that men still hold the majority of power in the country and there is still a long way to go before women are enabled to be leaders to the same degree as men. Overall, women in Tanzania have less access and control over assets and resources than men in all aspects of life and therefore have fewer economic opportunities than their male counterparts. Women also face real obstacles in the professional world, such as obvious and discreet forms of sexism and sexual harassment. Moreover, women are often confronted with significant institutional impediments that make it challenging to juggle both family and successful careers. The choice between professional success and work-life-balance also has more consequences for women, as illustrated by the fact that the higher women climb up the corporate ladder, the fewer children they have whereas the reverse is true for men. Despite these facts, there have been important advancements for

women in the country, particularly with respect to ensuring that women are in leadership roles in the Government. In addition to establishing national policy and institutional frameworks that support the promotion of gender equality, Tanzania’s Constitution requires that 30% of the seats in parliament are reserved for women candidates. Of the 323 members of the National Assembly, 98 seats are held by women, which is significantly better than the 20% global average. While more women in Parliament does not necessarily result in better outcomes for women generally, it is hard to ignore the fact that only four years after this constitutional change was put in place, an amendment to the Land Act was passed that granted equal rights and access to land, loans, and credit for women. These changes have also helped slowly chip away at the belief that women are not competent leaders, as evidenced by the composition of the Cabinet where there are currently seven female Ministers and ten

female Deputy Ministers. Additionally, Tanzania’s largest hospital is now headed by a dedicated and capable woman, as is the National Bank of Commerce. An obvious first step in empowering women to lead is to give them a good education. Today, women make up 33% of university students in Tanzania. If the country continues to make girls’ education a priority, including at the post-secondary level, this figure will continue to rise and more women will steadily advance and begin to assume more leadership positions. Individual and societal attitudes and behavior towards women in the workplace must also change and strategies need to be developed and respected that support women rising to senior positions. Organizations need to make women’s issues a priority and implement policies such as flexible working arrangements, longer paid maternity leaves and establish professional development programs to support more female leaders. Additionally, women need to break down their

own internal barriers by appreciating their value, taking a seat at the table and believing that they are capable of assuming the responsibilities of senior positions. The laws of economics tell us if the entire collective of human resources and talent is tapped, our overall performance will improve. This is an important point when considering how development might be accelerated in Tanzania. Given all of the changes happening in the country, as well as the need to establish a competent and competitive workforce, there is a real opportunity for women to take on more leadership positions. When more people get in the race, more records will be broken. It is time to encourage women who want to seek challenges, break the mold and make it to the top. In doing so, all in the country will benefit. Alexis Graham is a Principle Consultant at Deloitte Consulting Limited. The views expressed are hers and not necessarily of the firm. She can be reached at algraham@deloitte.co.tz

FEATURE

East African Business Week I February 24-March 2, 2014

A Coca Cola employee talking to pupils at Akia primary school

GOOD TIMES: Pupils at Pokwelo PS having a meal after a good academic performance in last years PLE exam

Solar lightens classes in northern Uganda BY BAZ WAISWA

n GULU, Uganda–Sheila Ayo, 13, a former pupil of Pokwelo Primary School in Gulu, northern Uganda, will be joining her dream school, Trinity College Nabbingo, after a good performance in the Primary Leaving Examination (PLE). She passed with a first grade (12 points) last year. Dominic Ondongo, a former pupil of Labuuoromor Primary School passed his PLE with a super second grade, 14 points, granting him passage to secondary school education. Earlier on in the Primary Level Mock Examinations Ondongo scored 25 points. That kind of performance or a worse performance wouldn’t enable him go to a good school and threatened his post primary education. Ondongo had to study hard and improve so he could get better marks to join Gulu Secondary School, the school he fancies. The success story of Ayoo and Ondongo is one that is earned on a bed of roses but rather through hard work, perseveres and sacrifice. The two pupils and many others in northern Uganda are enduring terrible learning conditions just to achieve the promises that formal education can deliver to them. Some pupils are lucky to get past Primary Level and progress to Secondary Level and later join a university or tertiary institution. Many bow out at the Primary Level because of diverse reasons. Some especially the girl-child are forced into early marriage. Some children are forced to labour to earn a wage. Some children are orphaned and have no one to turn to for financial support. The reasons are diverse. Fact is pupil need tuition fees, scholastic materials, financial and moral support. Northern Uganda continues to

nurse and heal the wounds inflicted during the two decades of war orchestrated by Lord’s Resistance Army led by Joseph Kony. The war demobilized the way of life in the region. Elders and leaders in the region are relying on education as a pillar in the quest for a better life and eventual return of greatness that once described the region. This quest however has its well documented hurdles that have made it hard for the realization of proper education standards if compared to other parts of the country particularly central Uganda. The lack of scholastic materials, classrooms, teaching staff and continued poverty has made it hard for the northern region to acquire quality education. Northern Uganda was one of the regions with a poor performance in the last PLE examinations. But all hope is not lost as new partnerships are being formed to ensure that less privileged learners are in different ways helped to improve academically and be at the same level with the well privileged ones in urban areas.

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We took it upon us to do something for the communities. The best foundation you can give to the future leaders is education,”

For the second and now third year running, employees of Century Bottling Company (CBL) also known as Coca-cola Uganda the makers of Coke products in the country have been able to install solar energy panels in different schools in northern Uganda. The solar panels produce light which has been wired in classrooms, teacher’s staff rooms and security lighting. The availability of lighting has enabled pupils and teachers to have extra learning hours and enabled pupils to learn at night. Coca-cola Uganda employees under their Community Development Projects initiated the Light for Education project in which they pool together money from their salaries and other resources and they send it to northern Uganda to help rural schools. To date Ush150m (about US $ 56,603) has been spent on installing solar panels in 35 schools to enable pupils carry on with their studies in when darkness returns. The solar panels provide lighting in classrooms, teacher’s staff rooms and security lighting. In the first year of the projects nine schools in the districts of Pader, Lamwo and Kitgum benefitted. Last year, January 12 schools in Gulu had solar panels installed benefiting over 1000 pupils. Last week, CBL employees where in Lira district at Akia Primary School to commission the Light for Education project that will benefit close to 1500 pupils in14 schools in the area. “We took it upon us to do something for the communities. The best foundation you can give to the future leaders is education,” said Maureen Kyomuhendo, the Corporate and Public Affairs Manager at Century Bottling Company. Such help has motivated pupils to read hard during night and morning preps. The availability of light also

“

The performance has improved drastically. All of them succeeded. This year we have not had any fourth grades or ungraded pupils. They all passed because the solar lightings helped them read extra hours, it enables them to come for evening preps meant that teachers can plan for the next day’s lessons early enough. “We learnt so much during preps. We were inspired to come in and study at night and those who couldn’t come in the night would come in early in the morning at five and read,” Ayoo, a former P7 pupil and beneficiary said in an interview. Joyce Acan Orema, the headmistress of Pokwelo Primary School stated that since the solar lights were installed, there has been an improvement in class performance as the PLE exams showed. Acan said that Pokwelo P/S in 2012 had only one first grade out of 38 candidates but when Coca Cola installed the solar power lights in 2013 the school has improved its performance

after it registered eleven first grades, 38 second grades and six in third grade out of the 55 candidates who sat the final national examinations. “The performance has improved drastically. All of them succeeded. This year we have not had any fourth grades or ungraded pupils. They all passed because the solar lightings helped them read extra hours, it enables them to come for evening preps,” the headmistress pointed out. The headmistress adds that light was a motivation for pupils to read and revise. Simon Elaku, a Primary 7 teacher at Pokwelo Primary School said the school was privileged to have solar at the school because it made reading and revising effective. “We encouraged our pupils to read so they can improve. The presence of solar light has done something to motivate pupils and teachers,” Elaku said. Elaku explained that the presence of lights around the schools has improved security. He said the schools never incur any maintenance costs because the sponsors, Coca Cola takes care of that always. Elaku observed that not all pupils were able to come to school to make use of the facilities because they have to walk several miles to get school. It was not safe for them to come to school at night. The same challenge affected teachers who couldn’t come to teach in the night for fear of their safety. Elaku says that if the school had dormitories and enough teacher houses the case would have been different and many learners would have benefitted and passed well. Kyomuhendo said that Century Bottling was committed to reach other schools because they want rural schools to favorably compete with the pupils of Kampala and other urban centers.

BUSINESS INFO

East African Business Week I February 24 - March 2, 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) 0 300 0 0 0 0 9,800 49,800 0 11.17 2.63% Feb 21 2014 TOL 8,100 8,,100 8,100 8,100 810,000 1 2,100 2,600 100 2,388.92 64.71 Feb 21 2014 TBL 0 650 0 0 0 0 0 0 0 11.61 47.60 Feb 21 2014 TTP 8,800 8,800 8,800 8,800 8,870,400 7 8,600 0 1,008 880.00 75.00 Feb 21 2014 TCC 0 2,440 0 0 0 0 8,000 0 0 155.36 62.50 Feb 21 2014 SIMBA 2,700 2,700 2,700 2,700 108,000 1 0 37,000 40 97.20 60.00 Feb 21 2014 SWISS 2,580 2,580 2,580 2,580 516000 1 0 107,400 200 464.20 69.25 Feb 21 2014 TWIGA 0 490 0 0 0 0 27,900 101,500 0 33.24 0.07% Feb 21 2014 DCB 2,660 2,660 2,680 2,660 20,958,860 1 19,500 64,100 7,871 1,330.00 38.57 Feb 21 2014 NMB 0 220 0 0 0 0 0 0 0 329.22 N/A Feb 21 2014 KA 0 4,270 0 0 0 0 0 0 0 3,376.61 N/A Feb 21 2014 EABL 0 5,950 0 0 0 0 0 0 0 356.38 N/A Feb 21 2014 JHL 0 840 0 0 0 0 0 0 0 2,495.09 N/A Feb 21 2014 KCB 320 315 320 305 20,057,635 23 540,300 10,800 63,369 685.61 16.46 Feb 21 2014 CRDB 0 5,820 0 0 0 0 0 0 0 1,097.32 N/A Feb 21 2014 NMG 0 7,320 0 0 0 0 0 0 0 3,001.83 N/A Feb 21 2014 ABG 0 470 0 0 0 0 0 21,700 0 75.42 34.13 Feb 21 2014 PAL 0 600 0 0 0 0 0 0 0 5.44 0.00% Feb 21 2014 MBP KAMPALA - USE COMPANY Date DEALS SHARES VOLUME High (UGX) Low (UGX) Closing (UGX) TURNOVER (UGX) 0 0 0 0 1,387 0 Feb 21 2014 ALSI 4 98,760 4,400 4,080 4,399 434,480,000 Feb 21 2014 BATU 0 0 0 0 115 0 Feb 21 2014 BOBU 0 0 0 0 1,134 0 Feb 21 2014 CENT 0 0 0 0 1,190 0 Feb 21 2014 DFCU 0 0 0 0 6,479 0 Feb 21 2014 EABL 0 0 0 0 920 0 Feb 21 2014 EBL 0 0 0 0 9,019 0 Feb 21 2014 JHL 0 0 0 0 335 0 Feb 21 2014 KA 0 0 0 0 1,270 0 Feb 21 2014 KCB 1 9,500 30 30 30 285,000 Feb 21 2014 NIC 0 0 0 0 8,819 0 Feb 21 2014 NMG 0 0 0 0 605 0 Feb 21 2014 NVL 11 487,607 30 30 30 14,628,210 Feb 21 2014 SBU 0 0 0 0 525 0 Feb 21 2014 UCHM 0 0 0 0 25 0 Feb 21 2014 UCL 18 4,924,665 375 365 375 1,846,610,375 Feb 21 2014 UMEME 0 0 0 0 264 0 Feb 21 2014 USE LCI 34 5,520,532 2,296,003,585 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)

141.4 141.2 141 140.8 140.6 140.4 140.2 140 139.8

PRICES AS AT

13-Feb-14

12-Feb-14

9-Feb-14

11-Feb-14

8-Feb-14

RSE ALL SHARE INDEX

7-Feb-14

2/21/2014

2/20/2014

USE ALL SHARE INDEX 2/19/2014

Financial markets Nairobi (NSE)

SECURITY

RSE ALL SHARE INDEX

10-Feb-14

1,390 1,385 1,380 1,375 1,370 1,365 1,360 1,355 1,350

2/21/2014

2/20/2014

DSE ALL SHARE INDEX 2/17/2014

2/21/2014

2/20/2014

2/19/2014

2/18/2014

2/17/2014

NSE ALL SHARE INDEX

2/19/2014

136.4 136.2 136 135.8 135.6 135.4 135.2

USE ALL SHARE INDEX

DSE ALL SHARE INDEX 1,940.00 1,930.00 1,920.00 1,910.00 1,900.00 1,890.00 1,880.00 1,870.00 1,860.00 1,850.00 2/18/2014

NSE ALL SHARE INDEX

PREVIOUS PRICE

% CHANGE

27.75 120.00 163.00 620.00 27.50 16.95 299.00

27.75 120.00 164.00 620.00 27.50 16.95 305.00

0.00 0.00 -0.61 0.00 0.00 0.00 -1.97

30.25 13.50 11.95 6.35

31.25 13.50 11.95 6.25

-3.20 0.00 0.00 +1.60

16.10 101.00 228.00 32.00 33.00 132.00 44.00 34.25 62.50 298.00 18.30

16.10 102.00 220.00 32.25 33.50 123.00 44.50 34.25 62.50 292.00 18.00

0.00 -0.98 +3.64 -0.78 -1.49 +7.32 -1.12 0.00 0.00 +2.05 +1.67

4.45 20.25 11.75 14.20 303.00 49.75 32.75 45.00 18.80

4.55 20.25 11.75 14.20 309.00 49.25 34.75 45.00 18.40

-2.20 0.00 0.00 0.00 -1.94 +1.02 -5.76 0.00 +2.17

88.00 207.00 76.00 15.75 73.50

88.50 208.00 83.50 15.60 71.50

-0.56 -0.48 -8.98 +0.96 +2.80

11.10 9.50 14.45 22.00 13.00

11.60 9.55 14.40 23.00 13.00

-4.31 -0.52 +0.35 -4.35 0.00

February 21 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 Safaricom Ltd Ord 050 PREFERENCE SHARES Kenya Power & Lighting Ltd 4% Pref 2000 Kenya Power & Lighting Ltd 7% Pref 2000

5.95

0.00

19.20 16.25 6.45 314.00 19.60 125.00

19.10 16.30 6.30 316.00 19.60 124.00

+0.52 -0.31 +2.38 -0.63 0.00 +0.81

40.00 4.80 28.75

39.75 4.80 29.00

+0.63 0.00 -0.86

11.10 165.00 580.00 38.75 244.00 3.05 3.00 3.05 25.00

11.10 165.00 546.00 39.00 227.00 3.20 3.00 3.00 24.75

0.00 0.00 +6.23 -0.64 +7.49 -4.69 0.00 +1.67 +1.01

11.40

0.00

6.75 5.50

0.00 0.00

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

SOURCE - Nairobi Stock Exchange

Food market prices (wholesale) US$ Commodity

Package

Kenya

Nairobi Beans (Rosecoco)

- 90kg

Fish (Tilapia)

- 1 kg

Ground Nuts

Uganda

Eldoret

Kampala

Lira

Tanzania

Rwanda

Burundi

Dar-es-salaam

Kigali

Bujumbura

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) 86.0144 143.1680 117.9742 7.7797 28.3900 18.7952 7.8313 17.7626 23.4180 0.8398 1.3826 22.9347 14.1206 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

86.1922 143.5206 118.2583 7.8586 28.5650 18.9503 7.9754 18.3806 23.4671 0.8409 1.3855 22.9828 14.1545

86.1033 143.3440 118.1160 7.8191 28.4775 18.8728 7.9034 18.0716 23.4426 0.8403 1.3841 22.9587 14.1376

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 24 -

MARCH 2, 2014

TENDERS

East African Business Week I February 24 - March 2, 2014

TENDERS, JOBS & CONSULTANCIES UGANDA

RWANDA

TANZANIA

TENDERS

The Ministry of Transport invites sealed bids from eligible suppliers of FWD Station wagon vehicles (5 Doors) one unit. Contact: Ministry of Transport, Plot No. 2203-5/32 Pamba Street-Tancot House First Floor, Room No. 124, P. O. Box 9144, Dar es Salaam at or before 10.00, March 10. 2014.

Rwanda Development Board invites qualified bidders to submit bids for HIRING OF LOCAL, REGIONAL AND CONTINENTAL MEDIA SERVICES FOR A PERIOD OF ONE YEAR. Enquiries regarding this tender may be addressed to: The Chief Financial Officer,Attn: Procurement Office, RWANDA DEVELOPMENT BOARD ,4th Floor, RDB Building,NYARUTARAMA Road B.P. 6239, KIGALI, RWANDAEmail: procurement@rdb.rw Well printed bids, properly bound and presented in four copies one of which is the original must be submitted at the address mentioned above not later than 03/04/2014 at 3:00 pm, local time or 1:00 pm GMT.

Uganda National Roads Authority invites bids from eligible bidders for the provision of of fuel to UNRA Headquarters and stations from public fule outlets for three years. 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 12, 2014.

Tanzania Port Authority invites sealed bids from eligible service providers for provision of maintenance services for radios and radar equipment. Contact: The Secretary, Central Tender Board, Tanznaia Ports Authority, P. O. Box 9184, Dar es Salaam, Tanzania.Deadline: Feb 27, 2014. Tanzania Port Authority invites sealed bids from eligible service providers for provision of insurance brokerage services to TPA. Contact: The Secretary, Central Tender Board, Tanznaia Ports Authority, P. O. Box 9184, Dar es Salaam, Tanzania.Deadline: Feb 27, 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 Tanzania Building Agency is now issuing General Procurement Notice in accordance with requirement of the Public Procurement Act No. 21 of 2004 and its regulation, 2005 for the purpose of informing the reputable suppliers, contractors, service providers, consultants and General public tender opportunities during the financial year 2013/2014. Interested suppliers, contractors, service providers and consultants requiring additional information should contact the Procurement Management Unit (PMU) at Tanzania Buildings Agency Headquarters, Sokoine Drive No. 2 opposite Karimjee Hall from 7.30 am -3.30 p.m Monday to Friday inclusive except Saturdays, Sundays and Public Holidays. The Ilala Municipal Council is issuing a general procurement notice. Contractors, suppliers consultants and Non consultants may obtain further information from the office of the secretary of the tender board, Iiala Municipal Council Depot along Nyerere Road, P. O. Box 20950 Dar es Salaam.

CONSULTANCIES The Public Procurement Regulatory Authority invites eligible individual consultants to indicate their interest in providing the services : Implementation of a system for checking and monitoring procurement activities in Tanzania. Contact: The CEO, PPF Tower, 8th Floor, Wing 801. Deadline: Feb 26, 2014. 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

CONSULTANCIES Rural Electrification Agency of the Ministry of Energy and Mineral Development invites sealed bids from eligible bidders for the provision of consultancy services for the design and construction supervision of REA Headquarters. All bids must be accompanied by abid security in form of un conditional bank guarantee of 7,000,000 Ug shs. Contact: Rural Electrification Agency, Procurement and Disposal Unit, Plot 10 Windsor Loop, Kololo, 2nd Floor House of Hope. Deadline: March 7, 2014. Uganda National Roads Authority has funds within the procuring and disposal entity’s budget to be used for acquisition of consultancy services for the supervision of periodic maintenance works of 44 selected National Roads-Phase II (8 Lots). 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 19, 2014. Source: East African Business Week

The Rwanda Biomedical Centre/Medical Procurement and Production Division (RBC/MPPD) invites qualified bidders to submit bids for the SUPPLY AND DELIVERY OF LABORATORY COMMODITIES for a period of 3 years. 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 bids submission deadline. 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 CDs recordable, and one original must reach the reception of MPPD at the address mentioned above Not later than 03/04/2014 at 9:00 am, local time (7 am GMT). 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). 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). 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 and The EastAfrican

Uganda National Roads Authority invites bids from eligible bidders for the provision of of framework contract for procurement of service of central air conditioning system at UNRA Headquarters for three years. 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 7, 2014. 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. 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 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 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 24 - March 2, 2014

TANZ ANIA PETROLEUM DEVELOPMENT CORPORATION

PRESS RELEASE

TERMNINATION OF PRE-CONTRACT NEGOTIATIONS FOR A PRODUCTION SHARING AGREEMENT OVER LAKE EYASI- WEMBERE BASIN O n 1 4 t h F eb r u a r y 2 0 1 4 S w a l a E n er g y L i m i t ed ( b a s ed i n A u s t r a l i a ) , a p a r en t c o m p a n y o f S w a l a O i l a n d G a s Ta n z a n i a L i m i t ed ( S O G TL ) , i s s u ed a s t a t em en t t o t he A u s t r a l i a n S t o c k E x c ha n g e t ha t Ta n z a n i a P et r o l eu m D ev el o p m en t C o r p o r a t i o n ( TP D C ) ha s t er m i n a t ed t he n eg o t i a t i o n s f o r a P r o d u c t i o n S ha r i n g A g r eem en t i n r es p ec t o f L a k e E y a s i -W em b er e B a s i n . S w a l a E n er g y L i m i t ed f u r t her a l l eg ed t ha t TP D C ’ s d ec i s i o n w a s q u es t i o n a b l e a n d t ha t i t r a i s ed q u es t i o n s o f t r a n s p a r en c y i n r es p ec t o f t he p r o c es s t o b e f o l l o w ed i n t he o n g o i n g l i c en s i n g r o u n d a n d TP D C ’ s c o m m i t m en t t o t he l o c a l c o n t en t a n d p a r t i c i p a t i o n o f Ta n z a n i a n s . TP D C ha s n o t ed w i t h s er i o u s c o n c er n t he s t a t em en t b y S w a l a E n er g y L i m i t ed a n d w o u l d l i k e t o i n f o r m t he g en er a l p u b l i c t ha t t he s t a t em en t c o n t a i n s m u l t i p l e i n a c c u r a c i es a n d i s m i s l ea d i n g . W e w i s h t o i n f o r m t he g en er a l p u b l i c t ha t TP D C i n v i t ed t he t en d er t hr o u g h r es t r i c t ed t en d er i n g from five oil exploration companies including Swala Oil and Gas ( Ta n z a n i a ) L i m i t ed o n 3 0 t h A p r i l , 2 0 1 2 . Thr ee b i d s w er e r ec ei v ed i n c l u d i n g t ha t o f S w a l a O i l a n d G a s ( Ta n z a n i a ) L i m i t ed i n j o i n t v en t u r e w i t h P u r a V i d a E n er g y N L ( b a s ed i n A u s t r a l i a ) o n a 5 0 % p a r t i c i p a t i n g i n t er es t b et w een t he t w o c o m p a n i es . A c c o r d i n g t o S O G TL , t he j o i n t v en t u r e w a s i n t en d ed t o d em o n s t r a t e t ha t the pair had the requisite financial resources, technical expertise and a p p r o p r ia te ex p er i en c e t o u n d er t a k e t he ex p l o r a t i o n w o r k . A f t er t he b i d ev a l u a t i o n , t he j o i n t v en t u r e b et w een S O G TL w i t h P u r a V i d a E n er g y N L s c o r ed t he hi g hes t p o i n t s b a s ed o n t he c r i t er i a s et f o r t h i n t he bidding document, which included, work programme, technical, financial a n d ex p er i en c e c a p a b i l i t i es . I n a d d i t i o n , t he ex t en t o f l o c a l p a r t i c i p a t i o n a n d ho w m u c h t he G o v er n m en t w i l l g et f r o m t he l i c en s e w er e c o n s i d er ed . The J o i n t V en t u r e ( S O G TL a n d P u r a V i d a E n er g y N L ) w a TP D C f o r p r e-c o n t r a c t P S A n eg o t i a t i o n s o n 2 8 t h M a r c h, 2 s t a g e d o es n o t i n a n y w a y c o n s t i t u t e a n a w a r d o f t he t en d i s o n l y m a d e a f t er s u c c es s f u l c o m p l et i o n o f p r e-c o n t r a c t n I n t he c o u r s e o f n eg o t i a t i o n s , M / s P u r a V i d a E n er g y N L , w t he n eg o t i a t i o n s s t a t i n g t ha t t hey w a n t ed t o f o c u s o n t he n ex p l o r a t i o n r i g ht s i n M o r o c c o , G a b o n a n d M a d a g a s c a r .

s i n v i t ed b y 0 1 3 . Thi s er . A n a w a r d eg o t i a t i o n s . i t hd r ew f r o m ew l y a c q u i r ed

TP D C w i s hes t o i n f o r m t he g en er a l p u b l i c t ha t t he w i t hd r a w a l b y P u r a V i d a E n er g y N L m a t er i a l l y a n d s u b s t a n t i a l l y a f f ec t ed t he j o i n t b i d a n d t he n eg o t i a t i o n s f o r t ha t m a t t er f o r t he f o l l o w i n g r ea s o n s :

( i ) The i n v i t a t i o n f o r p r e-c o n t r a c t n eg o t i a t i o n s w a s b a s ed o n t he t ec hn i c a l expertise, financial resources, and the experience of the consortium w i t h p a r t i c i p a t i n g i n t er es t o f 5 0 % ea c h. A f t er t he w i t hd r a w a l o f P u r a V i d a E n er g y N L , t he 5 0 % i n t er es t o f t he j o i n t v en t u r e c o u l d n o l o n g er s u p p o r t t he a p p l i c a t i o n ; ( i i ) E v a l u a t i o n o f t he b i d w a s b a s ed o n t he s t r en g t h o f t he j o i n t v en t u r e p a r t n er s a n d t he a w a r d c o u l d ha v e b een m a d e t o a j o i n t v en t u r e u p o n successful pre-contract negotiations and not to any of the individual firm; ( i i i ) The w i t hd r a w a l o f o n e p a r t y f r o m t he j o i n t v en t u r e d u r i n g p r e-c o n t r a c t n eg o t i a t i o n s m a d e t he j o i n t v en t u r e i n el i g i b l e; ( i v ) The r ea s o n f o r S O G TL a s s o c i a t i n g w i t h P u r a V i d a E n er g y N L w a s t o enhance their financial and technical capability and bring in the required ex p er i en c e. A f t er t he w i t hd r a w a l o f P u r a V i d a E n er g y N L , t he a c c r u ed a d v a n t a g es o f t he c o m b i n ed ef f o r t s f el l a p a r t . ( v ) F u r t her , i n t he D eed o f Ter m i n a t i o n a n d R el ea s e d a t ed 1 5 t h J a n u a r y 2 0 1 4 b et w een M / S P u r a V i d a E n er g y N L a n d M / S S w a l a O i l a n d G a s Ta n z a n i a L i m i t ed , t he t w o d ec l a r ed t he J o i n t B i d d i n g A g r eem en t w a s t er m i n a t ed a n d l o s t i t s l eg a l b a s i s . The D eed o f Ter m i n a t i o n a n d R el ea s e w a s s i g n ed b y D r . D a v i d M es t r es R i d g e a n d N ei l C . Ta y l o r r ep r es en t i n g S O G TL a n d b y D a m o n N ea v es a n d C hen C hi k O n g o n b eha l f o f P u r a V i d a E n er g y N L . B y r ea n o lo n 2 0 1 4 . fo r b id

s o n o f t he f o r eg o i n g c i r c u m s t a n c es , p r e-c o n t r a c t n eg o t i a t i o n s c o u l d g er b e t en a b l e a s t he j o i n t v en t u r e c ea s ed t o ex i s t o n 1 5 t h J a n u a r y L a k e E y a s i – W em b er e a r ea i s t her ef o r e o p en a n d w i l l b e a v a i l a b l e d in g .

Issued by: MANAGING DIRECTOR TANZ ANIA PETROLEUM DEVELOPEMENT CORPORATION BWM PENSIONS TOWER, AZ IK IWE/J AMHURI STEET P.O.Box 27 7 4, DAR ES SALAAM TANZ ANIA Date: 20th February 2014

FEATURE

East African Business Week I February 24-March 2, 2014

A growing number of countries are also taking climate change seriously and seeing economic opportunities in action

Climate change climbs up agenda n WASHINGTON, USA--In corporate boardrooms and the offices of CEOs, climate change is a real and present danger. It threatens to disrupt the water supplies and supply chains of companies as diverse as Coca-Cola and ExxonMobil. Rising sea levels and more intense storms put their infrastructure at risk, and the costs will only get worse. CEOs know this. They also know there is opportunity in how they respond. But while there are standout leaders, many others are holding back until they have more certainty about what governments will do. This week at the World Economic Forum in Davos, World Bank President Jim Yong Kim called on government leaders to break out of the small steps of business as usual and provide that structure. First, by putting a price on carbon and by having financial regulators require companies and financial institutions to assess their exposure to climaterelated risks and disclose it. Kim also called for doubling the market for green bonds, which support climate adaptation and mitigation projects such as renewable energy, energy efficiency, and carbon reduction, to $20 billion this year and $50 billion by the time a new international climate agreement is reached in Paris in 2015. He urged institutional investors to commit to green bonds targets in their portfolios. “We have seen great climate leadership from countries and companies, but emissions are still rising, the poor are suffering,” President Kim said. “This is the year to take action on climate change. There are no excuses.” The costs of failing to act on climate change are staggering in the lives affected and investments lost. Globally, have risen from an

average of about $50 billion a year in the 1980s to close to $200 billion a year over the last decade, making climate-resilient and disasterresilient development critical. In the poorest countries, climate change will increase the cost of development by 25 to 30 percent, according to World Bank Group estimates. The impacts could roll back decades of development gains and push millions of people back into poverty within our lifetimes. “We have to help poorer countries in this transition,” President Kim said. “We have to reduce the risks of low-carbon investments, especially in developing countries, but we can do it – development financial institutions can leverage their capital and use the Green Climate Fund to reduce that risk and catalyze new investment in resilience.” There are leaders, both in the private and public sectors, that recognize the first-mover advantage and are grabbing the competitive edge. Among them: Google recently flipped the switch on one of the world’s largest solar power arrays – 9,200 panels covering its corporate headquarters – and acquired smart-thermostat maker Nest in an anticipated ramping up of work on products that can reduce home energy use. Google is one of several companies already using a shadow price on carbon for strategic planning. Philips is rolling out off-grid lighting, LED street lighting, and has a goal of improving the energy efficiency of all its lighting products by 50 percent by 2015. Investors are seeing the payoff: exchange-traded funds in clean energy saw returns reaching up to 140 percent last year. Many of these leaders will be represented at the World Economic

Forum, where world leaders will be attending a full day and 23 sessions discussing climate change, building resilience, and sustainable development through public-private partnerships. A growing number of countries are also taking climate change seriously and seeing economic opportunities in action: Morocco has set up an agency for solar energy and is working to develop a “super grid” that integrates solar power, wind power, hydropower, and biomass. It also is putting the region’s wealth of sunshine to work through concentrating solar power plants with support from the World Bank Group. Mexico, which has a 35 percent renewable energy target and a carbon tax, is starting to allow retail electricity consumers connect their renewable facilities to the national grid for billing credit. Mexico’s policies have led corporate purchasers such as Walmart, Coca-Cola, and Grupo Bimbo to invest in renewable energy self-generation. The Philippines is already feeling the consequences of extreme weather as it works to rebuild from

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The costs of failing to act on climate change are staggering in the lives affected and investments lost.

Typhoon Haiyan. To meet its aggressive renewable energy targets, the government is offering incentives such as income tax holidays, accelerated depreciation, and net metering to allow consumers generating power to sell back to the grid. There is also encouraging movement on carbon pricing instruments. China launched five emissions trading pilots in cities and provinces last year and has an aggressive target for a national system. Through the Partnership for Market Readiness, other countries are developing and implementing policy options and the next generation of carbon pricing instruments that can promote growth, competitiveness, and low emissions. The World Bank Group is focusing on five key areas that can help get prices right, get finance flowing, and make progress where it matters most. Building low-carbon, climate resilient cities, particularly through assistance with low-carbon planning, energy-efficiency assessments, and securing finance, targets the fast-growing metropolitan areas that are connected to 70 percent of global emissions. Moving forward on climate-smart agriculture improves yields to feed a growing global population, reduces emissions, and adds carbon storage. Accelerating energy efficiency and investment in renewable energy helps shifts the world away from high-carbon fossil fuels. The Bank Group is also supporting work on ending fossil fuel subsidies and developing carbon pricing to get prices right for emissions. Another important move that can make a difference quickly: By reducing short-lived climate pollutants, such as soot from fires and diesel vehicles and methane from landfills and extractive industries, countries can reap a double reward of reducing

the impact on snow and glaciers and lowering the costs to human health and crops. There is still much work to do. Last November, at the international climate conference in Warsaw, governments agreed to seal a new international agreement by 2015 that would be applicable to all countries and would begin bringing down global greenhouse gas emissions. We know that current emissions reduction pledges are not enough to prevent a 2 degree Celsius temperature rise and that they could still leave the world to face a 4 degree-warmer world by 2100, possibly earlier. Throughout this year and next, the World Bank will be working closely with governments to provide the data, evidence, and analysis necessary for each to set robust national emissions reduction targets and for developed countries to also provide the technology, finance, and capacitybuilding support that developing countries need to start on a cleangrowth trajectory. The next big summit is in September, when UN Secretary-General Ban Ki-moon convenes global leaders from governments, businesses, and communities. The summit is considered crucial for catalyzing action and building political momentum for a successful global agreement in 2015. “In 20 years, all of us will be asked the question, ‘What did you do to fight climate change?’” President Kim said. “The leaders here in Davos, both from the private sector and from governments, have in their power to act in substantive ways. Now is the time to act for future generations before it is too late.”

World Bank

LIVING

East African Business Week I February 24-March 2, 2014

Mzee Oloiboni second left, third his younger brother and the writer.

With western influences afoot, Maasais are moving towards a new way of life by developing the things they need to survive and prosper within their villages such as water supplies and school houses. They strive to maintain their cultural heritage and incorporate it into their new way of living.

Mzee Oloiboni, his brother and children talking to writers

A visit to Eslalei: One man’s village BY ELISHA MAYALLAH n ARUSHA, Tanzania–For centuries the Maasai people, who are found in northern Tanzania and southern Kenya, have lived in harmony with nature. They view their place in the complex ecosystem of Africa as its guardians. The Maasai are semi-nomadic and follow the rains with their herds of cattle. The men in the society are warriors and herders. Since they are out with the herds all day the women are in charge of village maintenance. They build the houses, maintain the water supply, and gather the firewood, cook, and handle any other duties involved in running the village. About 100 kms from Arusha on the way to Ngorongoro and Serengeti, in a remote area deeper in the wilderness, there is one Maasai village, Eslalei, which has been drawing tourists albeit on a low scale, according to analysts. This is a village owned by one Maasai man Mzee Oloiboni Meshuko Ole Mapii. The Boma is perched on a hill and within the vast wildernesses that traverse through its heart and one of those exquisite wonders is the fact that Mzee Oloiboni Meshuko Ole Mapii (with his age not known but believed to be over 110 years old) is the proud husband of eight wives and it is home to over 300 members of his family that includes sons, daughters and grandchildren.

In the Maasai culture polygamy is widely accepted and has been practiced for many years, Mzee told says. This, he says, shows a man’s wealth, but also assures the continuation of the man’s clan. All sons and grandchildren, are also married to between three and five wives. Fronted by a hill and wilderness the Oloiboni’s Maasai village, which looks like a suspended town, has the right ingredients for a culturalgetaway. In the comfort of the coolness of the area, we enjoyed the endless view over this magnificent scenery, stretched over soft plains and acacia trees. From here we could watch giraffes, zebra and gazelles crossing the wildlife corridor of Tarangire and Lake Manyara national parks. On my recent visit accompanied by Elirehema Maturo from the Tanzania Tourist Board (TTB) responsible for Cultural Tourism Programme, I meet Eslalei’s oldest citizen. In a voice that cracked with age, he described how he arrived in the area 60 years ago, full of expectations for his new life and later a life loaded with ‘his’ unique small village setting. After the short introductions and warmed by their welcoming, we headed to a place where the old man was sitting. One of his main daily activities is to consult with most of the family members to make sure there is peace and unity among the family members, we were told. In addition, he consults on all

cattle herders (now over 40 herders who takes cattle, goats and sheep out for grazing) daily to make sure they are loyal and happy with their work. “I am so proud of my wives and all family members,” said Mzee Oloiboni, flanked by his younger brother and two grandchildren aged more than 40 years. He says he moved into the area

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Mzee Oloiboni is a keen cattle owner with over 3500 cows and over a thousand goats and sheep. However, in Maasai culture one is not supposed to give the exact number of cattle, so we knew the figures were not real.

migrating from Ngorongoro crater, nearly 50 kms away and settled in the area where he married one wife after another until he had eight wives (two of whom have now passed on). With the typical Maasai friendliness that is born out of Mzee Oloiboni, he invited us to visit his hundred plus grass thatched huts that are well spaced out to ensure a reasonable amount of privacy and several cattle enclosures within his sprawling village. The two grandchildren walked us through the vast area, including one of Mzee’s new houses, built within the surrounding areas furnished with modern or city-like furniture’s and amenities. Mzee Oloiboni is a keen cattle owner with over 3500 cows and over a thousand goats and sheep. However, in Maasai culture one is not supposed to give the exact number of cattle, so we knew the figures were not real. And as part of his help in the communities nearby Mzee Oloiboni loans out a few cows to outsiders for a few years for them to have milk and blood. Mzee is a connoisseur for fresh cattle blood as well as meats, milk and local medicine roots boiled as soups and served alongside main dishes. It was not until the early 1980s that Maasais became much more entrenched in a market economy and, hence, more impoverished generally speaking. As a result, the Maasai, which once was a proud and

self-sufficient society, is now facing many social, political and economic challenges. With western influences afoot, Maasais are moving towards a new way of life by developing the things they need to survive and prosper within their villages such as water supplies and school houses. They strive to maintain their cultural heritage and incorporate it into their new way of living. Naturally, Mzee Oloiboni has also grasped the modern culture and has put up two houses that depict the urban styles and a primary school (Oloiboni Primary school) with classes from nursery to standard six owned fully by him. The school, with a total number of 160 children, is registered in Monduli district and three teachers are seconded here by the government of Tanzania to teach alongside other teacher volunteers from Heart Tanzania, one of the donors for the school. The school has six classrooms and at the school, I met teachers who had a very fruitful working relationship with the clan’s siblings. Despite of its uniqueness of the Maasai Boma cum village owned by one clan it sees a limited number of tourists both local and international, and has only managed to attract a small number. “If only tourists could come here more often then I would ask them to help me to support the school” Mzee Oloiboni said as we left.

LIVING

East African Business Week I February 24 - March 2, 2014

Cars that drive you to sleep

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ACROSS

DOWN

1. Uganda’s capital city (7) 5. Spotty deadly disease (7) 9. Accompany another on a journey (6) 10. Not fake, sincere (7) 11. Delights in (6) 14. Common car made in Japan (5) 15. Choice of foods/regulated course of foods (4) 16. Stall or confined place (5) 17. Outside limit of an object (4) 19. Precision careful about details (6) 21. Training college (2) 22. Not difficult (4) 24. Night before the event (3) 27. The last of it killed the camel (5) 28. Write your name at the back of a cheque (7) 29. Floating structure of logs (4) 32. Please leave alone (3) 33. Not made public/misnomer (9) 35. Uganda’s independence month (7) 36. Uganda Young Democrats (3) 37. Make a choice (3) 38. Sweets (5) 41. Used for rowing a boat (3) 43. Long wooden seat (5) 45. Grain from cereal plant (3) 47. Too cold to be comfortable (6) 48. Defends somebody (8) 49. Sea creatures with hard shells and eight legs (5) 50. Further education (2)

1. President of Rwanda Republic (6) 2. Loot, steal during the war (7) 3. Not strict, mild (7) 4. Opposite of septic (7) 5. Reminder of something important (8) 6. Emergency room (2) 7. Past tense of eat (3) 8. Relationship between production trade and money supply (7) 12. Catch doing wrong (3) 13. Learners/scholarship holders (8) 18. Bring to maturity (7) 20. Longed for (7) 23. Absent (4) 25. Pass a law (5) 26. Commander of batterion (7) 27. Look for (6) 30. Federation Motorsport Uganda (3) 31. Japanese car make (6) 34. Uganda Drivers’ Association (3) 37. One time only (4) 39. Agrees with the head (4) 40. Nonstandard spelling of youth (4) 42. Ridge of rocks near the surface of the sea (4) 43. Bacon lettuce and tomato sandwich (3) 44. New York City (3) 46. Playing card with large symbol (3)

SOLUTION TO BUSIWEEK PUZZLE 1

D I S S O B 11 Z OOL E 16 B 17 15 N OT O B A 24 NO R T H T P E R S O I A U D I C H Y D R E A R OME 33

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ReadwriteDrive

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Rinspeed says this technology will free up passengers to read, listen to music, surf the web, play games, watch movies on demand, or conduct video conference calls

web, play games, watch movies on demand, or conduct video conference calls. Again, it appears that we have already caught up to the future of driving. Just a few years ago, auto show concept cars with an array of screens providing navigation, entertainment, and driver assistance were cast as something our kids or grandkids might one day enjoy. The XchangE concept continues to convey these features as aspirational—but they can already be found in Tesla’s oversized dashboard display, or for that matter, in the smart phones and tablets that passengers bring aboard. The chief difference between Rinspeed’s vision and what is already happening is that, in today’s cars, one person—namely, the driver—has to look up and drive. That requires a steering wheel. The XchangE’s steering wheel uses hand-recognition and transparent multifunction keys, and can be moved to the middle of the dashboard—essentially becoming a “steer-by-wire” control console, somewhat similar to gaming controls or, according to Rinspeed, a little bit like what is used modern jet aircraft. If we can truly relieve the driver of the responsibility to pilot a vehicle, then the biggest opportunity will be to redesign seating configurations. This is much more about industrial design than software design. For the XchangE concept, Rinspeed collaborated with Otto Bock Mobility Solutions, a manufacturer of medical prosthetics, to allow seating for the driver and passengers not just to recline, but to more radically tilt and swivel into 20 possible seating arrangements—creating ideal accommodations for workstation productivity or media consumption.

see designs and technologies— until very recently relegated to the realm of science fiction— crop up in cars available at your friendly local neighborhood auto dealership. In Rinspeed’s press release, we are told the XchangE can communicate with other cars, the road, and cloud-based services via an LTE network. Travel-specific services, such as warning messages about road conditions and recommendations for efficient routing, are available in real time. Wait a second. Dashboard displays and mobile apps already offer these types of features. Vehicle-to-vehicle systems using DSRC and LTE are being widely tested. Admittedly, at this stage, the stream of data still needs to be interpreted into driving decisions by a human being. The next step is to use a data feed to alter and control core operations of the vehicle, such as acceleration and braking. Today, many cars have similar driver-assist systems—although mostly using inputs from onboard sources such as radar, lasers, and sensors. Rinspeed says this technology will free up passengers to read, listen to music, surf the

n LONDON, UK–The star attractions of many major international auto shows are the way-out futuristic concept vehicles that stand little to no chance of going into production. These crazy high-tech cars are an invitation to imagine an alternative transportation reality in which vehicles can fly, swim, think, and move us— physically and psychically—in unpredictable ways. But the latest concept vehicle from Rinspeed, a Swiss tuner shop known for exotic cars, reveals that today’s automotive technology is quickly catching up with the future. The concept car, dubbed “XchangE,” is intended to be a meditation on the interior layout of cars when—in about a decade—vehicles are capable of completely driving themselves. This will relegate passengers into a passive role, and turn car cabins into living room and office spaces on wheels. Rinspeed will display the XchangE at the upcoming 2014 Geneva Motor Show, which will be taking place March 6-16, 2014. Previous far-out concept cars from Rinspeed have been dazzling, both in their vision of future mobility and their creative combination of upperand lowercase letters. There was the 2008 sQuba, a Lotus Elise that doubled as a speedy submarine. There was the 2009 shape-shifting iChange, a concept sports car that transformed its seating configuration—with the swipe of an iPhone—for one, two or three passengers. And in 2010, Rinspeed unveiled the UC micro electric car, piloted by a joystick instead of a steering wheel, and dockable into a network of drive-in highspeed trains. However, with the XchangE, which uses the Tesla Model S as its platform, we are starting to

BUSIWEEK PUZZLE

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I DE S A E A Y N D B L E 23 E B R A I 28 K I D I A S G ME N T A R MI C OL V E E 36

SPORTS

East African Business Week I February 24-March 2, 2014

Lessons learned from Man City vs Barcelona BY NEVILLE IGASIRA .I.

nKAMPALA, Uganda - These are two of Europe’s free scoring teams with over 100 goals pocketed by each of these giants so far this season. So it’s no surprise that most if not all the betting houses all tipped it to be a high scoring game. But at the end of it, questions were raised as to whether Manchester City (Man City) where really on the level of Barcelona (Barca). Man City was reduced to mere passengers in the game as they failed to exert any control over proceedings in their 2-0 defeat at the hands of the Tiki Taka kings. So the big question mark is, was Martin Demichelis’s sending off the sole reason the tie was tipped in Barca’s favour? Barca’s highest pass completer was Xavi Hernandez with 123. Equal to City’s top three of Yaya Toure (43), Vincent Kompany (40), Gaël Clichy (40) Jose Mourinho the current Chelsea manager and former real Madrid Manager said, this is the worst Barcelona side in recent years but the street fan will tell you that they won the league last season with no coach for half the season. Mourinho makes it look like there is something about Barcelona that many teams are yet to master and to think that they are the only ones that

Former UNRA boss wins World Cup trip BY PAUL TENTENA

nKAMPALA, Uganda can determine whether they can be beaten on a given day. Man City sat back and invited Barcelona to keep the ball in the opening 20 minutes, a sign of some much respect and lack of confidence in their brand of football. Cesc Fábregas illustrated why he will become the heartbeat of the Barcelona team when Xavi retires. Whether popping up on the left, right, or in the centre, the Spaniard was his side’s fount of energy and invention. Yaya Toure struggled to impose himself on the game only showing a glimpse of his devastating ability. Barca did what we have grown to

know them to do. Dominate the possession and territory. Beating Barca by more than 2 goals at the Nou Camp is a huge task and it is with this that Manuel Pellegrini will have to earn his handsome wages and also pray that his special weapon Kun Aguero is back in the squad to give is team a fighting chance against a Lionel Messi led team. Seems from the game showing Man City still has a long way to become a European power house and this is still a learning curve for them, meantime we watch and see if money can buy them the experience they need to make that transformational quicker.

Uganda confirm Zambia friendly BY BAZ WAISWA

Hussein told East African Business Week, Cranes Coach Mulutin Sredojevic was expected to announce his tentative squad is working on putting up a list of player he will need for the encounter. This will be the first time Cranes is regrouping after that not so successful trip to South Africa to part in CHAN.

nKAMPALA, Uganda -

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Uganda national football team, Uganda Cranes, will play 2012 Africa Cup of Nations champion Zambia in a friendly on 5th March, 2014 at Zambia’s Levy Mwanawasa Stadium in Ndola. Ahmed Hussein, the Federation of Uganda Football Associations (FUFA) spokesperson confirmed the development revealing that Football Association of Zambia (FAZ) agreed to the friendly proposal. ‘We are happy to have such a high profile friendly with one of the biggest teams on the continent. We are certain that it will help the coach test out his players against a good team’ said FUFA CEO Edgar Watson.

transaction. “We’re glad this campaign achieved our set objectives. We were able to educate more Ugandans about the use of the VISA card product. “All these are steps in the right direction in our effort to contribute to a cashless economy and enabling our consumers transact conveniently within the bigger global village which has gone cashless,” said Fiona Mulema, the Stanbic Head of Personal Markets. Ssebanakita was one of the 720 customers who participated in the “Your card is as good as cash” campaign. He met all the requirements to take part in the electronic draw, which saw him win the ultimate prize of a fully paid trip to the 2014 FIFA World Cup in Brazil.

Zambia Coach Patrice Beaumelle

Uganda Cranes Coach Micho Sredojevic

The Zambian federation has gone ahead to name a star studded squad that will take on the Ugandan side including professional and senior players. Some of the players Zambia’s Chipolopolo called up include goalie Kenneth

Mweene, Emmanuel Mayuka and Stoppila Sunzu both of Sochaux in France. Hichani Himoonde of Mamelodi Sundowns, Rainford Kalaba of TP Mazembe and ever green Crhistopher Katongo who is currently not attachd to any club.

“We are happy to have such a high profile friendly with one of the biggest teams on the continent.”

Eng. Peter Ssebanakita, the former Uganda National Roads Authority (UNRA) executive director was the lucky winner of a fully paid trip to watch a World Cup game in Brazil courtesy of Stanbic Bank. Ssebanakita, together with his spouse will watch the Portugal versus Ghana match in Brasilia on 26 June 2014. He was the lucky winner of the prestigious prize that Stanbic Bank and VISA sponsored in their “Your card is as good as Cash promotion.” It aimed at educating and encouraging more Ugandans to use their cards (credit and debit) for

Bigger rewards in the offing for soccer fanatics BY EMMA ONYANGO

nKAMPALA, Uganda-

Imagine how it would feel not to touch a penny of your salary or just to have an extra Ush1.5m at the months end. Yes, you guessed it…smiles. Perez Kasoro and Dean Ocama were in ecstatic mood last week as they each received Ush1.5m as well as a DStv Walka 7 courtesy of Guinness for taking part in the Guinness Fantasy Manager game. Kasoro and Ocama topped the monthly leaderboards for the month of

December 2013 and January 2014. Phoebe Nakabazzi, the Guinness Brand Manager says the brand plans to make the game show more exciting in the coming seasons with bigger offers. “ We want to create more hype around this game and we hope to make it bigger in the coming years to the extent that we want some of the winners to be flown out to watch some English Premier Legaue Matches.” Ok, so if that is not reason enough to get on to that mobile phone or computer and embark on playing this game, then what is?

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BUSINESS DIGEST

East African Business Week I February 24-March 2, 2014

Cars that can drive you to sleep PAGE 13-14

Steps to achieve your mission PAGE 15

Kenya Housing gets $7m credit BY HUMPHREY LILOBA

nNAIROBI, Kenya–Multi-state owned East African Development Bank (EADB) and mortgage lender, Housing Finance will cofinance construction of a housing venture backed by the latter with a $7.3 million credit line. The two institutions signed the agreement yesterday to finance the construction of Kahawa Downs, a joint venture between Housing Finance and the Mbugua Kibathi family which owns Sagret Hotels in Nairobi. Kahawa Downs will deliver 220 units of two-bedroom (70) and three bedroom (150), which are being built in 22 blocks of 10 units each. The development sits on five acres of land at Kahawa Sukari on Thika Road and will have a commercial block and a kindergarten. HF’s subsidiary KBS is managing the project in which the mortgage lender has contributed $1.2 million. Construction started last November and will cost about $14 million to complete, according to KBS executive director James Karanja. Units are for sale at Ksh5 million (about $57,000) and Ksh6 million ($69,000) each for the two-and three-bedroom respectively, which

Vivienne Yeda Director General EADB

Frank Ireri MD Housing Finance

has seen bulk-buying by buy-to-let investors and speculators seeking to flip at a higher price (capital gains) by completion. “Growth of the middle class, rapid urbanisation and emergence of growth centres in counties has presented business opportunity for private and public sectors to provide housing to meet increased demand,”

Kahawa Downs will deliver 220 units of two-bedroom (70) and three bedroom (150) apartments built in 22 blocks of 10 units each

said Vivienne Yeda, EADB’s directorgeneral. “Our interest rates to commercial clients are below market rates to enable them pass over the benefit to end-buyers,” she said. Kahawa Downs is HF’s second joint venture having struck the first in Riruta Satellite that will have 328 units of one-to three-bedroom. The

JV – christened Precious Gardens – sits on a 5.4-acre parcel of land. KBS contributed Ksh186 million in equity with construction co-financed by HF and Shelter Afrique – a pan-African housing lender. Frank Ireri, HF managing director, said the lender aims to be “a one-stop-shop” for housing solutions, hence its involvement in the entire supply chain. It has diversified its

funding sources to include bonds and sovereign debt. “We have a pot of $30 million (Sh2.59 billion) just for foreign currency-denominated mortgages,” Ireri said. Under the new product, it has already lent $5 million (Sh431 million) to the Buffalo Mall Development in Naivasha and $10 million (Sh861.8 million) to a local private university.

Tz to upgrade Tanga-Arusha line Fuel prices rise in Uganda BY ANDREW ZABLON nMWANZA, Tanzania–The government plans to upgrade two railway lines to strengthen the transport infrastructure. The railway lines currently earmarked for immediate upgrading are the Tanga-Arusha, Isaka-Mwanza and would also provide a new railway link between the proposed Mwambani port and Tanga line. The move is in line with Tanzania’s determination to limit inadequacy of transport services along the main international and regional trade routes as well as internal and rural access so as to facilitate economic growth. The aim is to increase freight and passengers transport quality and capacity along the two corridors. Already COWI Tanzania Limited, a consultancy firm, has been contracted on behalf of Reli Assets Holding Company (RAHCO) to undertake full Environmental and

Social Impact Assessments (ESIA) for upgrading the two lines. According to ESIA and Audit Regulations, 2005, activities associated with this type of construction fall under projects requiring mandatory EIA. The ESIA seeks to address all potential significant impacts, both positive and negative associated with the project in order to provide objective information to the decision makers. According to RAHCO Managing Director, Eng. Benhadard Tito, in 50 years to come Tanzania would aim at upgrading 982 km of railway line from Dar es Salaam to Isaka from the existing ‘meter gauge’ to ‘standard gauge’ and construction of about 620 km of new railway line from Isaka-Kigali (Rwanda)/Keza/ Gitega-Musongati (Burundi). This is contained in RAHCO’s statement to mark the Ministry of Transport to mark 50 years of Tanzania (mainland) independence. Eng. Tito was reporting about

the development plans of Tanzania’s railway network of 2,707 kms previously operated by TRC and now by TRL. RAHCO will also construct about 664 km of a new standard gauge railway line from Arusha to Musoma. The line will include two branch lines to the already operational fertilizer plant at Minjingu and the other to the proposed soda ash plant at Wosiwosi near Lake Natron. Upgrading of 435 kms from Tanga – Arusha railway line so as to be compatible with new Arusha – Musoma railway line and construction of Mtwara – Songea to Mbambabay railway line with spurs to Liganga and Mchuchuma mineral areas is also a priority. Section 11 of the Railways Act of 2002, confers powers on RAHCO to develop, manage and maintain rail infrastructure and to provide rail transport services through Joint Venture, Concession and the like.

BY BAZ WAISWA nKAMPALA, Uganda–Fuels prices in different parts of Uganda went up unexpectedly causing uneasiness in the transport sector. However industry sources say the real cause of the sudden increase in fuel pump prices is speculators who wanted to create scarcity and make quick profits. Some economy analysts were quick to blame Uganda Revenue Authority (URA) for the high fuel prices because of its ongoing Single Customs Territory (SCT) project which started with fuel dealers, Vivo Energy and Total the leading importers of petroleum products. URA started clearing fuel under Single Customs Territory procedure that requires that all imports are checked and cleared at one main border point of entry, in this case Mombasa,. This is believed to be the cause of the delays in clearing fuel destined for Uganda at Mombasa however inside sector reports indicate that some fuel importers don’t know how to go about

the procedures. But the tax body in a circulated statement denied claims that SCT had brought delays and consequently fuel shortage. They blamed the shortage on the global oil prices exaggerated by speculators. ‘The Ush50 to Ush100 increase in the pump prices of petrol was as a result of about 20% increase in world oil prices to $11 over the past few weeks. Similar and slightly higher price increases have been experienced in other countries in the region,” a URA statement reads in part. The pump prices for especially Petrol (super) and Diesel (ago) has been shifting but there has been a shift from Ush 3,600 (about $1.45) to Ush 3,800 or more depending on which gas station you go to and where.There has been an increment of more than Ush200 to the price at which motorist bought fuel two week ago. The scarcity didn’t spar upcountry towns where speculators took the game higher by applying the hoarding method and stocking to extort more money from motorist.

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