The Global Infrastructure Outlook report released yesterday said spending such amount would also enable the country to attain UN Sustainable Development Goals (SDGs). The report showed that between 2007 and 2015 the country spent an average of 7.7 per cent, which was considerably lower than the required 12 per cent yearly. Global Infrastructure Hub Chief Executive Officer (CEO) Chris Heathcote said the report released showed that the country was currently spending 206 billion US dollars on its infrastructure against an investment need of 321 billion US dollars until 2040. “Outlook tells…how much each country needs to spend on infrastructure to 2040, where that need is for each infrastructure sector, and what their gap is, based on their current spending trends,” Mr Heathcote said. The CEO said in a statement that the report gave the country and sector spending data that governments and funding organisations have been calling for. For instance, in order to achieve SDGs, an additional investment of 57 US billion dollars with all of this required in the electricity sector, taking the overall total to 378 billion US dollars. The report also showed that GDP was expected to increase more than four-fold between 2015 and 2040, which was an indication that the required amount is attainable with an average annual rate of growth of 6.0 per cent. Globally, the report, prepared by Global Infrastructure Hub, showed that infra investment needs to reach 97 trillion US dollars by 2040. GI Hub outlines infrastructure investment needs globally and individually for...

International oil companies engaged in the construction of a Sh67-trillion) $30-billion liquefied natural gas (LNG) project are establishing a commercial framework for the scheme, BusinessWeek has learnt. The framework will define and compare alternative commercial and financial arrangements involving government and the private sector in a way that addresses the unique attributes of the project. It basically outlines the rights and obligations of each party (between the government and the investors) in the process of executing major projects such as the LNG one. BG Tanzania external relations manager Patricia Mhondo told BusinessWeek that the companies have done groundwork to establish the LNG commercial framework. “The report has been submitted to the government and we are awaiting response,” she said. The Statoil senior vice president and country manager for Tanzania, Mr Oystein Michelson, shared similar sentiments. He noted that the job of bringing the gas onshore was difficult but noted that the companies were optimistic it could be done. Reports show that the government announced it will conduct an environmental impact assessment (EIA) at Likong’o Village in Lindi Region where LNG Plant is to be built. Tanzania has found at least 55 trillion cubic feet of natural gas reserves. BG Group - which was last year acquired by Royal Dutch Shell - along with Statoil, Exxon Mobil and Ophir Energy plan to build the onshore LNG export terminal in partnership with the Tanzania Petroleum Development Corporation (TPDC). TPDC owns a title deed for the 2,071.705 hectares where the plant will be...

Private sector leadership and a section of trade analysts want the Cabinet to ensure policies of commercial nature are properly implemented. Mid-last week, the Cabinet approved the National Policy on Services Trade at State House Entebbe after four years of discussion. Although passing of the policy is a step forward, the analysts say many other good policies are gathering dust on government shelves. “The issue now is not the policy, but its implementation,” research analyst with the Economic Policy Research Centre Martin Luther Munu told Daily Monitor on Tuesday. The policy, if implemented properly, will make it easy for people to trade in services without regulatory and legal hindraces that restrict them from trading freely. Trade in services refers to the sale and delivery of an intangible product between a producer and consumer. Employment avenue According to statistics from the ministry of trade, services sector employs 45 per cent of the country’s population, an indication of the growing contribution of the sector, and need for the policy. In her submission, Trade minister Amelia Kyambadde said the Cabinet endorsement will provide coordinated direction on policies, regulatory and institutional structures that are necessary to enhance the growing potential of the service sector. The contribution of services to GDP (Gross Domestic Product) has been consistently higher than Agriculture and Industry over the last eight years, making the service industry a major driver of the country’s economic growth. Minister Kyambadde says trade in Services has increased significantly over the years, increasing from $4.21b (Shs15...

Local firms should take advantage of the forthcoming Rwanda International Trade Fair (RITF) to deepen their market reach locally and abroad through networking and partnerships, the Private Sector Federation (PSF) has said. According to Eric Kabeera, the head of communications at PSF, the expo also gives Rwandan producers and service providers a huge opportunity to interact with customers and showcase their innovations, as well as market Made-in-Rwanda products. It is also an opportunity for local companies to learn and share knowledge with foreign firms, he added. “The overall objective of RITF is employment creation, poverty reduction, import substitution and general economic development. This will lead to increased exports, job opportunities, more consumption of locally-made products, as well as appropriate technology transfer; all of which drive economic development,” Kabeera said yesterday while giving an update on the annual event. Exhibitors from 20 countries have so far confirmed their participation in the expo slated for August 22 to September 6, he said, adding that PSF expects more 500 local and international firms to showcase their products and services at the two-week event. Exhibitors that have confirmed participation are from the United Arab Emirates, Egypt, Canada, Iran, Pakistani, Turkey, Singapore, Malaysia, Nigeria, Ghana, USA and the East African Community (EAC) member states, among others. Over 270,000 showgoers are expected to attend the trade fair. Experts believe there is need for value addition to locally-made products if they are to be competitive and also penetrate other markets like EAC, Common Market for Eastern and...

The cost of the August 8 General Election on Kenya’s economy has started to emerge, with firms scaling down production, investors holding on to their cash and neighbouring countries redirecting their cargo to Tanzanian ports, away from Mombasa. Foreign governments, especially in the West, driven by uncertainty, have stepped up travel advisories to their citizens in the country and those intending to visit, warning that “in the past, some political protests, rallies and demonstrations have turned violent.” International organisations whose business is outside the provision of humanitarian services and foreign firms have given their staff permission to leave for neighbouring countries a week before and stay until a week after the elections, citing uncertainty over the poll, whose main contenders are Jubilee’s President Uhuru Kenyatta and National Super Alliance’s Raila Odinga. GRIM PICTURE Sources in the business community who sought anonymity for fear of being seen to be painting a grim picture over the elections said a majority of companies had scaled down production, while investors are holding onto their finances awaiting the outcome of the elections. They were particular that banks, which are normally hard hit with uncertainty, had limited the amount of loans lent to individuals until after the elections, with one of the sources saying they were lending out a maximum of Sh5 million. However, businessman Vimal Shah played down fears within the business community, saying: “So far, so good. I don’t know of any business that has suffered as a result of the election fever. People...

Uganda's new-found oil reserves may account for as much as 4 percent of its economy annually in coming years if managed well, the International Monetary Fund's country chief says. IMF Mission Chief for Uganda Axel Schimmelpfennig writes in a blog post that the country also needs some strategic infrastructure investment and better debt management. Uganda's economy has taken a hit over the past decade -- particularly on a per capita basis -- but is recovering. According to IMF figures, growth was around 4.7 percent in 2016, currently above average for Africa. That was up from just 2.6 percent in 2011, but still well off its 10.4 percent high as the global financial crisis broke. The IMF projects gross domestic product will grow at 5.7 percent in 2018, but Schimmelpfennig sees greater growth beyond. "Drought in the Horn of Africa, regional conflict, and slow credit growth have contributed to (the decline), with per capita growth falling to half a percent from an average of 5 percent for the past 20 years," he said in his blog post. Per capita GDP -- a closer measure of ordinary Ugandan's conditions -- has plunged in the past few years along with weakness in key exports such as tea, coffee and some minerals. The shilling, Uganda's currency, has also weakened, in particular during the run up to the February 2016 presidential election. But with oil, all this could change. "In our estimates the revenues could range on an annual basis from about half a percent...

plans to achieve a cashless economy and financial inclusion in Rwanda could be boosted further, thanks to the launch of a new electronic payment system. The AuraSoft RIHA mobile wallet, an electronic payment platform, will boost Rwanda’s drive to become a cashless economy, according to Alain Ndayishimiye, the AuraSoft chief executive officer. “We are leveraging the power of innovation and technology to improve efficiency and reduce the cost of transactions in real time through seamless payment solutions,” Ndayishimiye said. This e-payment facility uses Bluetooth, tap and pay, near field communication, as well as point of sale merchants, he added at the launch of the facility on Monday. he said the firm would work with the already existing players to further deepen the cashless economy and financial inclusion. Innovative merchant payment solutions are “a right step that will help Rwanda push to realise its goal of a cashless economy and ensure all Rwandans have access to financial services. “Therefore the launch of such products comes at a time when the government is encouraging the financial sector players and ordinary Rwandans to embrace electronic platforms, not only for their efficiency and safety when carrying out business transactions, but also because digital financial services have proven to spur economic growth through widening tax base and employment while promoting cashless economy,” said Patrick Mbarushimana. Rwanda aims at becoming a financial and digital hub by the year 2020 where all citizens will be financially included. According to the Finscope report released last year, formal inclusion...

Dar es Salaam/Arusha. Tanzania and Kenya plan to form a joint committee and set up a channel of communication to deal with future trade disputes. The decision was reached during a meeting between the Minister of Foreign Affairs and East African Cooperation, Dr Augustine Mahiga, and his Kenyan counterpart, Ms Amina Mohamed, last Sunday in Nairobi. The two ministers met to discuss a trade dispute triggered by Kenya’s ban on cooking gas imports from Tanzania. Dr Mahiga told reporters on Monday in Dar es Salaam that in addition to the joint trade committee, the two countries would also set up a communication channel to facilitate real time consultations in case of a trade dispute. The proposed committee will supplement the Joint Cooperation Commission (JCC) that was revived last November after President John Magufuli visited Kenya. “The committee will look into all business-related issues on which the two countries diverge,” Dr Mahiga said. “It’s a committee that will be formed to deal specifically with trade disputes. It will work closely with sectorial ministries from both countries.” Kenya and Tanzania have in recent years been engaged in on-and-off trade and investment disputes, some of which have taken a long time to resolve. Kenya recently banned imports of liquefied petroleum gas from Tanzania, citing safety and quality concerns. Tanzania retaliated by banning imports of cigarettes, margarine and tyres from Kenya and blocked vehicles transporting maize from Zambia to Kenya from passing through Tanzania. Kenya hit back by banning wheat imports from Tanzania. A...

Kenya should set in motion plans for engaging Britain over post-Brexit trade arrangements to avoid shocks to fresh produce exporters, and likely fall in official development funds, a governments policy think-tank has recommended. The Kenya Institute for Public Policy Research and Analysis (Kippra), Tuesday said the country will be among those hardest hit when Britain starts renegotiating more than 100 trade deals it has under the 28-member European Union. Britain’s exit from the EU, Kenya’s second largest export market after the East African Community (EAC), is likely to take a few years, but Kippra wants the government to start putting precautionary measures in place. Brexit will likely hit exports of tea, flowers and vegetables, and donor funds for infrastructural development projects, largely renewable energy. “As Britain realigns its engagement with other trading partners, Kenya and EAC need to prepare effectively and adequately to engage Britain for mutually beneficial trade relations,” Kippra argues in the Kenya Economic Report 2017 it launched in Nairobi yesterday. “The EU development assistance to Kenya and the EAC might fall because Britain significantly contributes towards the European Development Fund.” The value of exports to the UK fell 7.45 per cent year-on-year in three months through March to Sh10.06 billion, the latest data from the Kenya National Bureau of Statistics shows, representing 26.67 per cent share of the country’s Sh37.72 billion exports to the EU. “The impact will depend on how Britain positions itself in terms of bilateral agreements that it will have (after Brexit),” Kippra said....

 Tanzania’s Bakhresa Group of companies has assured its Kenyan customers that its products will now be available after agreement to lift trade restrictions which affected products and services exchanged between the two countries. Kenya banned wheat flour and gas imports from Tanzania due to what it called safety and quality concerns and Tanzania reciprocated by slapping a ban on Kenyan tyres, margarine and fermented milk. President John Magufuli and his Kenyan counterpart, Mr Uhuru Kenyatta intervened into the saga and agreed to lift restrictions on imports from either country. The decision was announced at the weekend. Bakhresa exports to Kenya almost all its products including water, soft drinks, biscuits and wheat flour. “We thank and congratulate the two presidents for this bold agreement that will remove the trading hurdles,” Bakhresa said in a statement. “Our intention is to continue producing safe and high quality products for both local and international markets. We also urge all other manufacturers to make sure they meet these standards for the Tanzanian products to penetrate in the international markets and ultimately help the government efforts in driving the country into the industrial economy,” it stated. Source: The Citizen