Dar es Salaam. Policy predictability is a crucial factor that can make local firms participate in large-scale projects such as the construction of the Tanga-Hoima oil pipeline in a more meaningful way, the private sector players have argued. Tanzania Private Sector Foundation’s (TPSF) executive director Godfrey Simbeye made this argument on Wednesday in the city. He was speaking at the occasion of mobilising local service providers in the oil and gas sector to use the emerging opportunities in the construction of Tanzania-Uganda crude oil export pipeline. Mr Simbeye argued that without some level of policy stability, it would be difficult for local entrepreneurs to compete against the well capitalised, high skilled foreign firms. President John Magufuli and his Ugandan counterpart Yoweri Museveni will be in Tanga on Saturday to lay the foundation stone for the 1,400-km pipeline, whose construction is expected to start soon. Mr Simbeye advised that it would be crucial for the Tanzanian government to stick to the terms and conditions they agreed with Uganda during the whole process of the construction of the pipeline to guarantee returns for service providers. “We need huge investments like that of the Tanzania-Uganda crude oil export pipeline, if Tanzania is to attain the middle income economy status by 2025,” noted Mr Simbeye. He added: “To attract investors in these projects, the government should make its policies stable, so that investors would not be scared away.” Besides, he said, policy stability can also work better if the local content section in the...

Regional private equity fund Aureos East Africa Fund LLC has started the process of exiting its investments in East Africa. The fund which was established by Aureos Capital in 2003, had made several investments in Kenya, Uganda and Tanzania. Its key sectors included banking, manufacturing, tourism, advertising, wholesale and retail. Recently, the fund which is managed by the Abraaj Group announced that it had entered into an agreement to sell its entire 5.53 per cent (6.83 million shares) stake in the clothing retailer Deacons East Africa Plc. The value of the transactions is yet to be made public but conservative estimates based on the current  market value of the company’s stock on the Nairobi Securities Exchange puts the price  at around  Ksh24 million ($240,000). The share sell-purchase transaction which is still subject to regulatory approval will be executed off the NSE as a private transaction. The fund has also invested in the cement firm Athi River Mining, Bank of Africa, Athi River Steel Plant, Cable Holdings Ltd, Dorini (Tourism) and advertising firm Ovidian. In Uganda and Tanzania, the fund has invested in the Bank of Africa (Uganda) and Bank of Africa (Tanzania). The $40 million fund is incorporated in Mauritius and seeks to make equity and quasi-equity investments in small and medium-sized enterprises (SMEs) with strong potential for profitable growth and regional expansion. Aureos seeks to invest in East Africa with a focus on Kenya, Tanzania and Uganda, with investments of between $0.5 million and $4 million per transaction. It holds its investments for...

Five years ago, a season like this, John Losunyen was queuing for relief food somewhere in Isiolo county , in the central part of northeastern Kenya. Luckily, today, that is not the case as he is currently tending to his tomatoes on a two and a half acre farm where he also rears poultry and keeps cows. With training and the use of mobile phone technology to access markets and get farming information, Mr Losunyen has been able to fend for his family. The use of mobile phone applications in agriculture is changing lives by providing crucial and handy information which farmers are using to boost the productivity of many farmers across the region. Data shows that demand for food is set to grow as the global population increases, more people live better lives as their economic situations and standards of living improve, couple with increased urbanisation. There is a need to innovate to feed this population and one of the market leaders in innovation in agriculture is a United States global hunger and food security initiative, Feed the Future, which come with advancements that are immensely changing the lives of farmers in East Africa. iProcure From technological innovations, like iProcure Ltd, smallholder farmers are able to get quality inputs for better productivity. Through the last mile distribution of farming inputs, iProcure is a digital platform through which farmers can order for inputs and have them delivered through co-operatives to ensure that they get genuine and affordable inputs. iprocure’s ojective...

President John Magufuli and his Ugandan counterpartpart Yoweri Museveni are expected to lay a foundation stone for the construction of the 3.55 billion US dollars crude export pipeline from Uganda oil fields in Hoima to Tanga port city of Indian Ocean. Our survey has shown many people from different regions of Tanzania have flocked to the project site for the purpose awaiting unfolding opportunities. The survey established that many people are coming from Mwanza, Tabora, Morogoro, Dodoma, Kagera and Shinyanga regions. “At Chongoleani there are a lot of people from different regions of Tanzania and most of them are coming from the Lake Zone regions,” said Jumaa Hussein. He said most of them were masons, plumbers, carpenters and others came to look for opportunities for catering services and other cleaning and medical services. Another person identified himself as Kakore Adam from Same District in Kilimanjaro Region said he came there to look for opportunities and he plans to start up a small company that will offer services to the people at the work site. “This is a golden opportunity, I have come to look for economic opportunities even if to introduce my local company that will offer services to pipe sites,” he said. Furthermore for the people of Mkinga District where the pipe will pass, said they were thankful and optimistic to utilise the opportunities well to boost their earnings. “Tanga people will be the first beneficiaries because fuel price will decline. Many will need to relocated to pave the...

Rainbow Rare Earths Ltd plans to build a mineral processing plant in Kabezi district, 10 km south of Bujumbura, the capital city of Burundi. The $1.5 million rare earth element (REE) plant will be about 20 km from Gakara mine, which was set up by the London Stock Exchange-listed firm that raised $8 million by listing 65 million shares in order to fast-track production in fourth quarter of 2017. Rainbow said the processing site has an asphalt road that will ease collection of the rare earth concentrate by container trucks for export either through the Mombasa or Dar es Salaam ports. Sales of ores by the end of 2017 to ThyssenKrupp Metallurgical Products of Germany will mean Burundi becomes a producer of REEs ahead of Kenya and Tanzania which have also discovered these much sought after minerals. Demand for rare earth elements in the global market is increasing due to rising usage of powerful magnets used for electric vehicles, motors and wind turbines. Highest concentration The Ngualla rare earth deposit licensed to Peak Resources Ltd near Mbeya, Tanzania, has a capital expenditure of about $206 million. Pacific Wildcat Resources Corporation in 2013 announced discovery of rare earth deposits valued at $62.4 billion in Kenya’s Coastal Kwale County. Rainbow’s chief executive officer Martin Eales said they have completed re-routing an existing lane from the rare earth elements plant processing site in Kabezi to allow the local people to get access to the Lake Tanganyika shore and fishing vessels. Mr Eales said...

The co-founder of Association of Tanzania Oil and Gas Service Providers (ATOGS), Mr Abdulsamad Abdulrahim, told reporters in Dar es Salaam yesterday that indigenous Tanzanian individuals and corporate bodies have what it takes to deliver services for the construction of the pipeline. The project is expected to be launched in Tanga after laying of a foundation stone on Saturday by President John Magufuli and his Ugandan counterpart, Mr Yoweri Museveni. “ATOGS wishes to assure the government that local suppliers have demonstrated capacity and readiness to deliver most of the services both technical and nontechnical that will be required in this project,” he said. Uganda and Tanzania are jointly constructing a 1,445 kilometre world’s longest heated pipeline from Hoima oilfields in Uganda to Tanga Port of the Indian Ocean at an estimated cost of 8tri/- (3.35 billion US dollars) to pump oil discovered in Uganda to the international markets. About 80 per cent of the construction of the pipeline will be conducted in Tanzania as it will be passing through the following regions - Kagera, Geita, Shinyanga, Tabora, Dodoma, Manyara and Tanga. It is expected to create about 10,000 direct jobs in Uganda and Tanzania, many more indirect jobs and thousands of trade and business opportunities. According to ATOGS cofounder, local suppliers were capable of delivering in construction, engineering services, procurement of materials, logistics and indirect services such as accommodation, transport, facilities management, operation and maintenance. Other areas which can be served by local businesses include financial services such as banking...

This was unveiled in Dar es Salaam yesterday by AfDB Executive Director of the East Africa constituency, representing seven countries including Seychelles Dr Nyamajeje Weggoro after holding talks with the Deputy Finance and Planning Minister Dr Ashatu Kijaji. He said the bank, through its board of directors have decided to support the SGR project that will spur the country’s economic growth after being impressed by the performance of the fifth phase government. The Tanzania line will run from Dar es Salaam port to Rwanda’s capital, Kigali. Two other lines will branch off to Musongati in Burundi and to Mwanza port on the shores of Lake Victoria to service Ugandan shippers. The line to Kigali is expected to ultimately connect to the eastern Democratic Republic of Congo. “The bank is ready and awaits government proposal in order to find out how much it could finance the project,” he said adding that also the bank will find and work with other stakeholders to realise the project. The 2561 km long SGR project will cost 7.6 billion US dollars where the first phase of the project from Dar es Salaam to Morogoro Region kicked off recently. Also, Dr Weggoro said the bank will collaborate with the government to improve the state owned power firm, (TANESCO), particularly on its structure and heavy debts for it to contribute in building the industrial economy. “AfDB will release funds to improve the efficiency of the power firm. We will discuss and involve other stakeholders in order to...

Addressing a news conference in Dar es Salaam yesterday, the Chief Government Spokesperson and Director of Information Services, Dr Hassan Abbas said Tanzania’s economy is growing at an average rate of 7 per cent, the leading speed compared to other EAC nations. “Despite the global economic crisis, Tanzania has continued to remain strong in economic growth, becoming the leading economy destination in Africa and the first in EAC,” he said. According to statistics, Tanzania is leading with 7 per cent economic growth rate, whereas Kenya stands at 6.4 per cent, Rwanda 6 per cent and Uganda 4.5 per cent. Dr Abbas said that the report by the World Bank and International Monetary Fund (IFM) also indicates strong economic growth in Tanzania. He also noted that statistics by the Bank of Tanzania (BoT) and IFM affirms that Tanzania has sustained high economic growth. “The strong growth is supported by reforms done in various development sectors, including health, energy and education sectors,” he said, adding that the performance is also attributed by huge investments being initiated by the government and soaring collection of revenues. Commenting on revenue collection, Dr Abbas said that the revenue collection has increased from 925bl/- in 2015 to 1.069tri/- in 2017, recording a 15 per cent increase per year. In investment performance, Dr Abbas said that the Quantum Global Research reports indicate that Tanzania is ranked number eight in Africa and the first in EAC in investment drive. In 2015, Tanzania was ranked 19 among African countries. In...

Horticulture sector players and agriculture students will soon be able to acquire modern farming skills, thanks to a new Israel-sponsored project. Epimaque Nsanzabaganwa, the head of horticulture division at National Agriculture Export Board (NAEB), said the $2.5 million (about Rwf2 billion) Horticulture Centre of Excellence will target agriculture university students, researchers, and sector stakeholders, especially those working informally. “Under the project, the target groups will be trained in modern skills and the latest knowledge about growing of vegetables and fruits, which they will then pass on to farmers,” Nsanzabaganwa explained. The initiative was launched last Friday and the centre will be based at Mulindi. The training will focus on how to grow vegetables in harsh weather climatic conditions given the fact that Rwanda experiences long drought spells similar to those in Israel, the official added. Nsanzabaganwa said: “Usually, Rwandans invest in vegetable and fruit farming but on a small scale. Therefore, we expect the skills gained from the project to help farmers increase output and exports to regional and other international markets.” In 2014, Rwanda signed bilateral treaties with Israel, and the two countries have economic and political ties, NAEB officials said. The cooperation was extended to agriculture sector where Rwanda sends 120 students every year for training in Israel. The country has also helped Rwanda to construct a Rwf23.7 million power generation station that supplies 8.5MW of solar energy in Eastern Province. Horticulture remains a high potential value chain for Rwanda’s economic diversification, revenue generation and job-creation, according to...

Kenya is counting on the establishment of a national commodity exchange to protect cross-border traders from exploitation by middlemen. The proposals, contained in the new Trade Policy, also aim at promoting efficiency in domestic and regional trade, supporting pricing transparency for farmers and traders, as well as attracting more investors and creating jobs. Trade Principal Secretary Chris Kiptoo said preparations were in top gear to put up a commodities exchange by June next year as the country moves to implement agreements made under the northern corridor infrastructure projects. “A commodity exchange will address supply chain weaknesses where, for example, maize farmers get very little compared to maize flour prices; they are not comparable because of too many parties in between. We want to create a platform that allows the interaction between the supplier and the trader or the consumer directly,” Mr Kiptoo said. The exchange will involve the use of regional warehouses with modern facilities where farmers and traders can take their products to minimise on storage wastage as well as exploitation by middlemen. The structure is meant to operate in the larger East African region with Rwanda already running a commodity exchange. Kenya and Uganda are laying legal and infrastructural structures. Mr Kiptoo said the three countries had agreed on 18 commodities, setting the stage for the start of the venture which holds key to regional trade. The exchange will also ensure prompt payments in partnership with financial institutions. “If you take your goods to Kisumu, it will check...