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...

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...

Kenya’s effort to seal loopholes for dumping and tax leakage have run into legal headwinds after local firms moved to court to block the joint deal with Uganda and Rwanda. The firms which offer cargo tracking services in Kenya have sued seeking to block the Kenya Revenue Authority (KRA) from implementing its e-tracking system in partnership with the two landlocked neighbours. The nine firms through the Electronic Cargo Tracking System Providers Association of Kenya claim that the KRA has stabbed them in the back by introducing the Regional Electronic Tracking System (Rects) which is already on a pilot phase in Kenya. The platform, launched by the KRA in March, allows the real-time tracking of cargo from Mombasa to its final destination. The new system will allow Uganda and Rwanda’s tax collection organs to also monitor the cargo. The KRA in March announced that the new cargo tracking system would be offered to transporters for free, a move that has sparked the vicious war with firms currently providing the monitoring services at a fee. The taxman in its response says that the system’s introduction was necessary to reduce dumping and diversion of goods in transit, give the taxman more control over data of cargo being transported and to reduce paperwork while maximising use of technology. But the lobby group says the KRA in February assured its members that the new regional system would only be used occasionally for arming sensitive cargo, and even invited it to the launch of the platform....

The fund named after the president is managed by CRDB after President Shein asked the bank, some five years ago to look into means to enable youth and women to access loan with minimum bank’s conditions. According to CRDB Managing Director, Charles Kimei, the fund so far has reached 1,341 people in Zanzibar mostly small and medium entrepreneurs deal in clove, seaweed and rice farming and fishing. “The fund has turned up to be successful as most of the borrowers were start-up businesses and repayment rate was very high,” Dr Kimei told Zanzibar President Dr Ali Mohamed Shein during the bank’s Chake Chake branch inaugural over the weekend. The Fund started with initial deposits of 100m/- and increased o 150m/- by 2015. “The deposits are increasing very well, so is the amount loaned out,” Dr Kimei said. He said the repayment rate was also high as out of total money loaned out only 30m/- are yet to be paid back. Most beneficiaries are female where they control about two-third of amount lent or 852 compared to 459 males. During the inauguration of the branch, the first for the largest bank in Pemba, the bank also donated 150 desks to two primary schools which are facing acute need of desk — as most pupils are seating on floors. CRDB’s Director of Marketing, Research and Customer Services Tully Esther Mwambapa said the desks would go to Madungu and Chanjajawire Primary Schools. “Initially we planned all desks to go to Chanjajawire but after...

Dar es Salaam. At least 120 exhibitors are expected in Tanzania this month to attend the Dar Construction Trade expo 2017, alongside the Furniture Expo 2017, being hosted by Mikono Speakers. The 55th events will also attract at least 9,600 visitors and 1,324 professional visitors, according to the organisers. Mikono Speakers International Chief executive officer, Mr Deogratius Kilawe, said in a statement that the exhibitions will be accompanied with the East Africa Smart building Summit, scheduled to begin with the 6th Executive Breakfast Meeting themed “The Emerging of Smart Cities in East Africa, Challenges and Opportunities.” All these events will take place at the Julius Nyerere International Convention Centre, on August 17th and 18th 2017. Mikono Speakers International is a fast growing multi-sectoral consulting firm in Africa providing a wide range of services which are tailor-made for clients’ needs and desires. It also deals with business consulting, inspirational and transformational conferences, workshops and coaching services. Mikono Speakers International is set to expand In North Africa and West Africa by 2018. It has its offices based in Tanzania and South Africa. ‘’Our plan for the first quarter of  2018  is to open offices in Lagos and for  the third quarter  to open another one in Casablanca which is in line with our global expansion strategy,” he said. This year Mikono Speakers is marking its 9th Anniversary since its establishment in 2008 with remarkable works that have been accomplished both in production of 1.2 million quality human capital across Africa and number of...

There was optimism last week after Kenya and Tanzania announced they had resolved a trade dispute that was threatening the economic and diplomatic ties between the two East African Community nations. However, despite the apparent truce, Kenyan businesses have complained that Tanzania has continued to place restrictions. Authorities in the neighbouring country have been accused of placing multiple hurdles for Kenyan products. It is noteworthy that Tanzanian traders now enjoy the benefits of the agreement that, among other things, has allowed them to bring into Kenya Liquefied Petroleum Gas and wheat. This not only leaves local traders at a disadvantage but is also frustrating, considering that the announcement of the deal by Kenya’s Foreign Affairs Cabinet Secretary Amina Mohammed and her counterpart Augustine Mahiga was seen as an indicator of better times ahead. TRADE WARS It is important for the Foreign and Trade Cabinet Secretaries to take seriously issues raised by the business community, including the Kenya Association of Manufacturers, and resolve what appears to so far be a lopsided arrangement that favours Tanzania. It is in nobody’s interest for these two EAC members to sustain trade wars of any kind. While it is true Kenya-Tanzania relations have not been at their best in recent years, the latest move to resolve the standoff shows there is a great opportunity to resolve any pending economic and diplomatic issues. It is, however, crucial that any deal reached must be implemented fully and in good faith by both sides. Indeed, the region should...