Tanzania plans to invest $1.9 billion each year by 2025 in energy projects in a bid to end power shortages and boost industrial growth in East Africa's second-biggest economy, its prime minister said. Tanzania aims to boost power generation capacity to 10,000 megawatts from around 1,500MW at present, using natural gas and coal and reducing its dependence on hydro power sources. "Tanzania’s electricity sector faces another important challenge. As it is heavily dependent on hydropower, energy provision cannot be ascertained in times of drought," Tanzania's prime minister, Kassim Majaliwa, said in a statement late on Tuesday. "Severe and recurrent droughts in the past few years triggered a devastating power crisis as electricity generation in most of the hydropower stations have progressively been declining in recent years, occasionally resulting in long hours of power black outs." Majaliwa said the government wants to see more private capital investment in the energy sector. "The projected power projects funding exceeds the existing government fiscal space," he said. "To attract private capital, the government is improving institutional set up, legal and regulatory frameworks." Investors have long complained that lack of reliable power was one of the obstacles of doing business in Tanzania. Tanzania said last week Japan's Koyo Corporation plans to invest $1 billion in a gas-fired power plant near big offshore natural gas fields off the African country's southern shore. Source: CNBC Africa

It’s already Nigeria’s largest city, but it’s still growing – and fast. The population of Lagos is predicted to increase by an astonishing 77 people every hour between 2010 and 2030, according to United Nations data, making it the fastest-growing city in Africa. Strong economic growth, led by an oil boom, has driven the rural poor towards the city, and the population surge is also being driven by high birth rates and the return of Nigerians living abroad. Image: UN World Urbanisation Prospects, 2014 Following in second place is Kinshasa in the Democratic Republic of Congo, while Cairo completes the top three. The figures are calculated using actual population figures for 2010 and forecasts for the likely populations in 2030, taken from 2014’s UN World Urbanization Prospects report. Can the infrastructure keep up? Seventy-seven people an hour. That’s 1,848 people a day, or 12,946 a week, or 56,179 a month – roughly the equivalent of the entire population of Greenland moving to Lagos every month. The big question is whether Africa’s urban infrastructure can keep up. Lagos already suffers from electricity supply problems and its road system is nearly paralysed. However, $50 billion worth of new infrastructure is due to transform the city. A rapid-transport system, new power plants and Africa’s first suspension bridge are planned to make life easier for Lagos residents. This is a pattern repeated across Africa, as expanding populations put a strain on urban resources. However, African cities are acting to build resilience and reduce the risks associated with expanding populations. In an article for...

Kampala. Plans for Uganda and Bangladesh to trade in textile and jute have been finalised, senior officials have said. Officials said the two countries are set to sign a Memorandum of Understanding (MoU) to share information and technology on trade where Bangladesh will be extending its textile and jute products to the country. Mr Mahmood Hudda, the Honourary Consul of Bangladesh in Uganda, said the exportation of jute products to Uganda is timely as the country moves from plastic packaging to biodegradable materials. “The MoU has been presented to the Ministry of Internal Affairs for vetting of documents to formulate the bilateral trade. We are also looking at the Trade ministry to look into tax exemption on importation of jute to facilitate the trade on duty free basis,” Mr Hudda said over the weekend. On taxing jute products, former Trade minister Amelia Kyambadde said it is an issue that will be considered in future since the country has undergone the budgeting process. Mr Hudda, who led a delegation from Bangladesh for a meeting with the Ms Kyambadde, also revealed that Uganda will also be exporting rice to Bangladesh for food security. “This is a long-term strategy because we want to encourage our private sector to extend expertise in Jute and textile production in Uganda to promote development,” he added. Ms Kyambadde said the exportation of jute products to Uganda comes at a time when Uganda is phasing out the use of plastic materials for packaging because it will increase the...

LUSAKA Africa remains the second-fastest growing economic region after East Asia, says a report. It, however, notes there is need for a higher expansion rate, if the continent is to make a meaningful dent in poverty levels. The report by the African Development Bank (AfDB) said the continent’s average growth is projected at 3.7 per cent in 2016 and will pick up to 4.5 per cent in 2017, provided the world economy strengthens and commodity prices gradually recover. Titled African Economic Outlook 2016, the survey says Africa’s economic performance held firm in 2015 amid global headwinds and regional shocks. Last year, it said, net financial flows to the continent were estimated at $208 billion, 1.8 per cent lower than in 2014, due to a contraction in investment. The report was released on Monday during opening of the lender’s annual meeting in Lusaka, Zambia. The forum brings together several delegates from around the world. MAKE REAL IMPACT While launching it, AfDB acting director development research department, Mr Abebe Shimeles, said to make any real impact at reducing poverty, Africa needs to grow at a rate of 7 per cent per year. And during a panel discussion on sustainable cities and structural transformation in Africa, UNDP assistant administrator and regional director, Mr Abdoulaye Mar Dieye, said Africa had made some gains in human development, especially in education. Mr Dieye said one of the major challenges facing cities on the continent was governance as local administration was neglected by national governments. UN Habitat...

After a decade of strong economic growth at the start of the millennium, Africa now faces a less favourable external economic environment — which has led to a slowdown in the economy at home. The planned Continental Free Trade Area (CFTA) has the potential to reinvigorate Africa’s development at this watershed moment. It could prove crucial for the creation of well-paying jobs, especially for Africa’s youth, but political leadership focused on African integration will be decisive. Weaker commodity prices and slowing demand in emerging economies have dampened the outlook for Africa’s commodity export revenues. Western donor attention has substantially shifted to the refugee and migrant crisis in Europe, and tighter external financial conditions for Africa’s frontier markets have led to sizeable capital outflows. At the same time, we’re still seeing illicit financial flows, in part down to weak taxation regimes and a race to the bottom for investment incentives. Severe drought in parts of Southern and Eastern Africa is also putting millions of people at risk of famine. There is also a strong chance that Africa could be left behind on the technological front — as we have seen before. Manufacturing value chains in Africa are often depicted as the next logical place for foreign investment to flow, as the price of labour gets more expensive in China and the country is moving its focus away from exports to domestic consumption. But with innovation rapidly making a robot workforce a real possibility in countries like the US, China, Germany and Japan, and low-cost energy...

Transport Cabinet Secretary James Macharia has confirmed second phase of the Standard Gauge Railway (SGR) line which runs from Nairobi to Naivasha has been fast-tracked and construction will commence in September. This will be followed closely by the the Naivasha – Kisumu line, which will pass through Narok, Bomet, Kericho, Nyamira then terminate in Kisumu where a block modern port will be constructed in case Uganda and Rwanda  pull out of the project. Macharia yesterday told the National Assembly’s Transport committee chaired by Starehe MP Maina Kamanda that neighbouring countries will be the losers in case they fail to link their line to the Kenyan network. The CS also allayed fears that Kenya will lose out in case  Rwanda and Uganda fail to construct line connecting the economies of the three countries, together with Southern Sudan, which is part of the Northern Corridor. “In the event that one or both of the two countries pulls out, Kenya has an option of ending its line at the Kisumu port from where the goods will be delivered to the two countries, as well as Tanzania. Our line will still be viable and we will not have a reason to build the Kisumu – Malaba line because that depend if Uganda are constructing a line linking ours at Malava,” Macharia said. During the First Infrastructure Summit attended by regional leaders held in June 2013, the Kenyan line was planned to end in Malaba from where Uganda was to pick to Kampala and then...

Transport and Infrastructure ministry is set to deploy a team of bureaucrats to Melbourne as Kenya starts negotiating the terms under which Australian construction firm, John Holland, will manage the Standard Gauge Railway (SGR). John Holland, which is said to have 65 years of experience in engineering servicing, contracting and managing rail projects, became a subsidiary of China Communications Construction Company (CCCC) following an acquisition deal finalised in 2015. Transport principal secretary Nyakera Irungu said the team set to leave on June 11 comprises officials from Kenya Railways Corporation (KRC), Kenya Ports Authority (KPA), Treasury, Office of the Attorney-General and the Ministry of Transport. “We are going to China and Australia to conduct due diligence on John Holland, the firm that will jointly manage SGR with CCCC,” said Mr Irungu. “During the trip, we will find out how John Holland will operate the rail, the capacity that they can accommodate, what they bring on board and how they will eventually integrate local expertise into the project.” Of importance also to Kenya is how freight, which is the key revenue attraction in the SGR, will be handled at the port of Mombasa. The deal to offer CCCC the contract was reached at a summit of the East African Community heads of State attended by President Uhuru Kenyatta in Kampala last month. “They directed that the contractors for the Mombasa-Kampala section undertake operations in the interim as the two partner states build their local capacities,” read a statement from the summit. Rift...

Kenya’s economy is expected to expand by 6 percent in 2016 after 5.6 percent growth last year, the country’s central bank governor said on Tuesday. Governor Patrick Njoroge also affirmed that Kenya’s current account deficit was expected to narrow to 5.5 percent ofGDP in 2016 from 6.8 percent. On Monday, the Central Bank of Kenya (CBK) cut the Central Bank Rate (CBR) from 11.50%, where it had been resting since last July, to 10.50%. Njoroge said falling inflation offered room for an easing of monetary policy. Inflation fell to 5.3 percent in April from 6.5 percent in March, well within the government’s target range. The Kenyan shilling has remained stable this year, supported by a narrower current account deficit driven by cheaper oil imports, improved earnings from tea and horticulture exports and strong diaspora remittances. These have helped boost foreign exchange reserves to $7.7bn, equivalent to 5 months of import cover, up from $7.4bn in March. Analysts say Kenya’s 2016 GDP growth will be supported by infrastructure projects, rising agricultural production, low oil prices and a looser monetary policy, even though ongoing security issues and uncertainty surrounding next year’s elections pose downside risks. In 2015, the Kenyan economy expanded 5.6%, which marked a pickup over 2014’s 5.3% reading. Source: Africa News

Rwanda’s aviation industry is slowly coming of age, and the country is positioning itself towards becoming an aviation hub for the region. To realise this plan, government has invested heavily in aviation infrastructure development, with over $17 million already spent on the upgrade of the Kigali International Airport and rehabilitation of Kamembe Airport. These efforts have already paid off with the Kigali International Airport being ranked one of the best airports in the region. The government is also undertaking other key projects in the sector, including the impending expansion of Rubavu Airport in the Western Province, and construction of the proposed Bugesera International Airport, that are expected to turn around the aviation industry once they are completed. The government also supports the national carrier, RwandAir, to make it more competitive on the continent. However, Samil Said Karakas, the Turkish Airlines vice-president for sub-Saharan Africa and sales department chief, says Rwanda needs to invest more resources in infrastructure development, as well as support the local hospitality industry to achieve its dream of becoming an aviation hub.Business Times’ Peterson Tumwebaze caught up with Karakas in Istanbul, Turkey last week, and he talked about sector issues, especially the secrets of building a strong aviation industry that can drive the country’s economy. Rwanda is trying to position itself as an aviation hub in Africa; what lessons can the country learn from Turkey to help it realise this ambitious plan? First and foremost, it is important to note that the centre of aviation is moving...

President Paul Kagame and his Kenyan counterpart Uhuru Kenyatta have endorsed the ‘New Deal on Energy’, a vehicle through which the African Development Bank (AfDB) will invest in delivering electricity for all Africans, by 2025. Both Kagame and Kenyatta were speaking on a live CNBC-Africa television debate that also featured AfDB president Dr Akinwumi Adesina, yesterday afternoon, on the sidelines of the 51st AfDB Annual Meeting ongoing in Lusaka, Zambia. Speaking to a fully packed audience, the three leaders shared their ideas on the ‘path to universal access to energy in Africa by 2025’, which is what the AfDB’s new deal on energy intends to achieve under President Adesina’s leadership. “This new deal on energy is a big deal for Africa,” said President Kagame adding that it brings a new momentum in the efforts of doing what Africa should otherwise have done, long time ago. Kenya President Uhuru Kenyatta also backed the ‘new deal’, noting that Africa has a lot of potential in renewable energy sources that just needs further enhancement. “We have heard and had enough of the theory. It is now time for practical engagement by supporting the AfDB to leverage Africa’s huge potential,” said President Kenyatta. In his remarks, Adesina noted that Kagame and Kenyatta represent what Africa needs most at the moment, the political will to translate Africa’s potential into tangible benefits for its people. “Money is not the key. Political will is all we need to get things done,” said Adesina. Dr Adesina noted that...