News Tag: Tanzania

TZ signs Sh16bn port deal with Chinese firm

Tanzania's government signed a $154 million (Ksh15.92 billion) contract on Saturday with the state-run China Harbour Engineering Company (CHEC) to expand the main port in the commercial capital, Dar es Salaam. Tanzania is seeking financing for infrastructure projects as part of its plans to transform the country into a regional transport and trade hub. Under the contract funded by a World Bank loan, CHEC, a subsidiary of the state-run China Communications Construction Co Ltd, will build a roll-on, roll-off (ro-ro) terminal and deepen and strengthen seven berths at Dar es Salaam port. Tanzania hopes expansion of the port will increase container throughput to 28 million tonnes a year by 2020 from around 20 million tonnes currently. "Deepening and strengthening of the berths will allow big container ships to dock in Dar es Salaam. All these efforts are being done in order to increase competitiveness of the port," said Works, Transport and Communications minister Makame Mbarawa at the signing of the contract. East Africa's second-biggest economy wants to profit from its long coastline and upgrade its rickety railways and roads to serve the growing economies in the land-locked heart of Africa. Big gas finds in Tanzania and oil discoveries in Kenya and Uganda have turned East Africa into an exploration hotspot for oil firms, but transport infrastructure in those countries has suffered from decades of under-investment. Tanzania said in January it will receive a $305 million loan from the World Bank to expand its main port, where congestion and inefficiencies are...

East African Community develops ambitious industrialisation policy

The East African Community has developed an ambitious industrialisation policy to promote the manufacturing sector, which is expected to account for 25 per cent of the regional GDP — up from 10 per cent — by 2032. Anchored in value addition and product diversification, the policy shift is expected to ease the dependence on agriculture and increase the value of manufactured exports to at least 40 per cent, up from the current eight per cent. “The EAC industrialisation strategy and its action plan must guide all our policy actions and deliver results,” said Rwandan Prime Minister Anastase Makuza, during the Second East African Manufacturing Business Summit in Kigali. Over the period, 2006 remains the best performing year, when manufacturing sector growth peaked of 8.2 per cent before crumbling to a low of 1.4 per cent in 2012 and recovering in 2015 to 5.7 per cent. In 2016, its growth shrank to 4.7 per cent. Competition Of note is that while the growth of manufacturing in the EAC is higher than the sub-Sahara Africa average of 4.3 per cent, it is significantly lower than that of the West African economic bloc that stands at 8.7 per cent and Ethiopia whose sector is expanding at a rate of 9.6 per cent. “The growth of the EAC manufacturing sector is not sufficient to create structural transformation or to reach ambitious industrialisation targets,” said Ruth Pollak, research and industrial policy advisor at the United Nations Industrial Development Organisation. Ms Pollak added that although the...

Plan to boost manufacturing in East Africa

The East African Community has developed an ambitious industrialisation policy to promote the manufacturing sector, which is expected to account for 25 per cent of the regional GDP — up from 10 per cent — by 2032. Anchored in value addition and product diversification, the policy shift is expected to ease the dependence on agriculture and increase the value of manufactured exports to at least 40 per cent, up from the current eight per cent. “The EAC industrialisation strategy and its action plan must guide all our policy actions and deliver results,” said Rwandan Prime Minister Anastase Makuza, during the Second East African Manufacturing Business Summit in Kigali. Over the period, 2006 remains the best performing year, when manufacturing sector growth peaked of 8.2 per cent before crumbling to a low of 1.4 per cent in 2012 and recovering in 2015 to 5.7 per cent. In 2016, its growth shrank to 4.7 per cent. Competition Of note is that while the growth of manufacturing in the EAC is higher than the sub-Sahara Africa average of 4.3 per cent, it is significantly lower than that of the West African economic bloc that stands at 8.7 per cent and Ethiopia whose sector is expanding at a rate of 9.6 per cent. “The growth of the EAC manufacturing sector is not sufficient to create structural transformation or to reach ambitious industrialisation targets,” said Ruth Pollak, research and industrial policy advisor at the United Nations Industrial Development Organisation. Ms Pollak added that although the...

East Africa unveils national budgets

The government is expected to increase spending to 32.945tri/- from the current 29.5tri/-, to finance implementation of flagship infrastructural projects aimed at enabling Tanzania to make optimal use of its strategic position as a transport hub in the region. The 2017/18 budget is aimed at financing the second year of the ambitious Five- Year Development Plan II (2016/17 - 2020/21) which is geared towards heavy investments in infrastructure to transform the nation from an agricultural economy to an industry based economy. Key development projects with significant multiplier effects to the economy as outlined in the plan include construction of the standard gauge railway (SGR) to link the Dar es Salaam Port with Mwanza on Lake Victoria and Kigoma on Lake Tanganyika, as well as neighbouring Rwanda and Burundi. The government is funding construction of the first phase of the line, about 207km from Dar es Salaam to Morogoro which will be constructed by a Turkish Company Yapı Merkezi and Portugal’s Mota-Engil under a turnkey contract at a cost of 1.2bn US dollars. The government has also lined Mchuchuma Coal Mining and Liganga Iron Ore Mining, a 3bn US dollar project which includes construction of a 600MW coal-fired power station and an iron plant expected to make Tanzania the third largest African producer of iron ore and generate 32,000 jobs. Other flagship projects include revamping of the national carrier, Air Tanzania Company Limited, to boost tourism and air transport sectors. The government purchased two bombardier aircrafts for the national carrier last...

Search on for new EAC symbols

The East African Community secretariat on Tuesday took the ongoing competition for design of the new symbols of the regional bloc to the University of Rwanda’s College of Arts and Social Sciences (CASS) in Huye District. The symbols that need to be changed are the emblem and logo of the six-nation bloc. The competition follows a decision taken last year by the Sectoral Council of Ministers responsible for EAC affairs to adopt the bloc’s brand architecture strategy and directed the secretariat to involve the region’s youth in developing this new brand. According to Richard Owora, head of corporate communication and public affairs at the EAC Secretariat, the EAC brand architecture strategy proposes activities that include: re-designing a new emblem and logo, developing a common unique identifier for all EAC organs and institutions; developing one main EAC corporate colour and one secondary colour; and developing a single visual identity emblem for the Community. Regional youth or students aged 18 to 35 are partaking in the competition in which the first prize is $25,000. The second and third prizes are $5,000 and 2,500, respectively. “EAC does not have clearly defined brand architecture for its organs and institutions and this has created a gap that has led to the inconsistent design of new logos for the institutions,” Owora said. “There is also lack of a visual connection between the current three main organs; the EAC Secretariat, the East African Legislative Assembly, and the East African Court of Justice, and the eight other institutions.”...

China’s transforming Africa by the rail or off the trail

Although China highly spoke of its first African built railway from Tanzania to Zambia during the Cold War heydays, it is a rare occasion for China to link a railroad to a grand design, such as “the Belt & Road Initiative” proposed by President Xi Jin- ping in 2013. Recently, after the completion of the railroad from Nairobi, the capital city of Kenya, to its key port city Mombasa, a three-part documentary produced by Xinhua News Agency in a title of “My Railway, My Story” made its debut on Kenyan television on 29th and 30th May respectively and on Chinese international television New China TV. The major public state broadcaster in Kenya, the Kenya Broadcasting Corporation also showed the two parts "Bridges" and "Stations" documentary which revolve around the 79 bridges and many stations along the 480-km long railroad with stories of people who were dedicated to its construction during prime time slots. Kenyan observers lauded the initial two part documentary which aired and showcased spectacular Chinese workmanship in the construction of Standard Gauge Railway. For sure, the legacy of the railway line would live on, as the SGR is set to transform the country's socio-economic bearing for many years to come. However, the question that comes into focus in the many minds of many and the subject of this article is why did China invested 3billion US$ into the huge East African rail-network and how does the world perceived the railroad in East Africa within the backdrop of Chinese-initiated...

Bid for an EA regional mining umbrella afoot

The EAC Mining Bill that was moved by Mr Chris Opoka- Okumu (Uganda) hopes to provide a legal framework for the regulation of mining operations in the East African Community (EAC). It seeks to implement the EAC Vision 2050 and specifically to operationalise Article 114(2) (c ) (iv) of the EAC Treaty that calls for harmonisation of mining regulations to ensure environmentally friendly and sound mining practices. The Bill further provides for a transparent and accountable mechanism for reporting mining and mineral related activities in the region. It is aimed at ultimately reducing differences in the operating environment for the sector. It sailed through after the first reading and sent to a committee for necessary actions. It is apparent that by seeking to harmonize mineral and mining laws and policies, stems from acknowledgement of the great potential that mineral resources have in contributing to poverty alleviation and to national and regional economic development. This comes at a time when the mineral-rate eastern African country is attracting foreign explorers. The region is considered to have a great potential of minerals, ranging from oil, natural gas, titanium, and gold, among others. Analysts, however, warn that lack of a comprehensive policy on mining could deny regional economies a chance to enjoy the proceeds of the business. The EAC Vision 2050 lays out a broad perspective in which the region optimizes the utilisation of its resources to accelerate productivity and the social wellbeing of its people. It portrays a future East Africa with rising...

World Bank Report Shows How to Boost Private Sector Investment in Africa’s Transmission Sector

A new World Bank report released today called for increased private sector investment in Africa’s under-developed electricity transmission infrastructure, a vital ingredient for reaching Africa’s energy goals. Africa lags the rest of the world when it comes to electricity, with just 35 percent of the population with access to power and a generation capacity of only 100 GW. Those who do have power typically consume relatively little, face frequent outages and pay high prices. Transmission infrastructure is a crucial middle part of the electricity value chain. Alongside generation and distribution, improving and increasing transmission infrastructure is key to closing the access gap. So far, transmission in Africa has been financed from public sources and new models of financing involving the private sector have received insufficient attention from policymakers or financiers. The ‘Linking up: Public-Private Partnerships in Power Transmission in Africa’ report examines private sector-led investments in transmission globally and how this approach is applicable in sub-Saharan Africa.  The private sector has participated successfully in transmission networks in many countries in Latin America and Asia, and this approach could be replicated. “Private finance has supported the expansion of electricity transmission infrastructure in many regions of the world and the same can happen in Africa.  To attract private sector investment, however, governments need to adopt policies supportive of this strategy and establish the right business, regulatory and legal environment to sustain investor interest,” said Riccardo Puliti, Senior Director and head of Energy and Extractives Industries at the World Bank. Estimates of annual...

New regional seed trade laws unveiled

National seed review teams from seven Common Market for Eastern and Southern Africa (Comesa) member states have launched harmonised national seed laws. The teams from Kenya, Uganda, Rwanda, Burundi, Zimbabwe, Zambia and Malawi meeting in Nairobi backed the new laws meant to improve the movement of seeds across the region. Agriculture Cabinet Secretary Willy Bett described the move as a historic opportunity to collectively reflect on how best to plan and mitigate risks that face the agriculture sector in the region. Historically, the regulatory environment surrounding seed production and certification has made it costly to do business in this sector, discouraging private sector companies from investing in innovation and expanded production.  The new laws are expected to bring about consistency in seed certification. Source: Standard Digital

Songas to increase power generation

The deal will enable Songas to increase gas-fired power generation by 10megawatts (MW). Currently the turbines are generating 180MW equals to 25 per cent of total power generation for nation grid. The MYA encompasses GE’s platform of total plant solutions, helping Songas to ensure the long-term, reliable operation of its power plant. “The upgrades will help Songas to increase the efficiency and the plant’s capacity at the Ubungo plant by approximately 10megawatts (MW),” a statement issued by GE read. Songas Managing Director Nigel Whittaker said “Songas owns six gas turbines, including 4 GE LM6000 gas turbines which it has been operating at Ubungo Power Plant since 2004. “Songas and GE have been working together for several years to ensure high performances of these turbines. “Songas is very pleased about this new initiative with GE to help increase the efficiency and reliability of the plant throughout the duration of its agreement,” Whittaker said. Under the terms of the deal, GE Fleet 360solution will upgrade three of the four LM6000 gas turbines in the fleet from the LM6000PA to the LM 6000PC, expected to increase the output of the units from 38MW to 43 MW each — and reaching output levels of up to 46 MW. The eight-year MYA, which also includes maintenance and repairs of the gas turbines, will help Songas to increase the efficiency of the Ubungo plant to around 41 per cent —approximately a 3.0 per cent improvement. “As the government of Tanzania continues to pursue the expansion of...