tag:blogger.com,1999:blog-39533652656328900202024-03-12T23:14:06.335-07:00EAER BriefsThis is the site for Business brief from East africa common MarketEast Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.comBlogger44125tag:blogger.com,1999:blog-3953365265632890020.post-57246241910427439032018-08-29T04:36:00.004-07:002018-08-29T04:43:04.910-07:00JKIA gets LPoD certification <table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi84xcgg2mjixZ363JJ7_C_hfeXcqe9CoHvJhg0_D6Fb0bOmPOQTqna9aKBh8VECQYDh6UJUeertKx8lozYiDjHk0UP_DadpDGilxBfVT3q1jahtdYEoIjtQ7CQP2c1Rk0fCgy_BW8-T5c/s1600/kq%252Bpix.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="300" data-original-width="595" height="161" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi84xcgg2mjixZ363JJ7_C_hfeXcqe9CoHvJhg0_D6Fb0bOmPOQTqna9aKBh8VECQYDh6UJUeertKx8lozYiDjHk0UP_DadpDGilxBfVT3q1jahtdYEoIjtQ7CQP2c1Rk0fCgy_BW8-T5c/s320/kq%252Bpix.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><span style="font-family: "arial" , "helvetica" , sans-serif;">KQ: Last hurdle down</span></td></tr>
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<span style="background-color: white; color: #333333; font-family: times, "times new roman", serif; font-size: 14px;">The US government has finally granted JKIA Last Point of Departure status which allows the airport to facilitate direct flights between Kenya and the United States of America. </span><br />
<span style="font-family: "times" , "times new roman" , serif;"><span style="background-color: white; color: #333333; font-size: 14px;"><br /></span> <span style="background-color: white; color: #333333; font-size: 14px;">This means that Kenya Airways can make the maiden direct flight from Nairobi to New York t from Jomo Kenyatta International Airport (JKIA) on October 28, 2018. </span></span><br />
<span style="font-family: "times" , "times new roman" , serif;"><br /></span> <span style="background-color: white; color: #333333; font-family: "times" , "times new roman" , serif; font-size: 14px;">“This is a major achievement for Kenya as JKIA becomes one of the elite African airports to be certified as aLast Point of Departure to the United States.</span><br />
<span style="font-family: "times" , "times new roman" , serif;"><span style="background-color: white; color: #333333; font-size: 14px;"><br /></span> <span style="background-color: white; color: #333333; font-size: 14px;"> JKIA is now poised to become the premier hub in Africa.” said Kenya Airports Authority Managing Director, Jonny Andersen. </span></span><br />
<span style="font-family: "times" , "times new roman" , serif;"><span style="background-color: white; color: #333333; font-size: 14px;"><br /></span> <span style="background-color: white; color: #333333; font-size: 14px;">This comes after the meeting between President Uhuru Kenyatta and his US counterpart Donald Trump at the White House in Washington DC</span></span><span style="background-color: white; color: #333333; font-family: "raleway" , sans-serif; font-size: 14px;">. </span>East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-25023329203870555932018-01-22T04:41:00.001-08:002018-01-22T04:41:02.360-08:00Did Tanzania falsify its GDP data?<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhU-1kZeSuiedpse3fdFeiP0smW5DNxHA6oZqpyhvNVMn8q8VeW-E1cFzP3_WeFxXNzAH4itpQZfmPs5jNbRKURXMZXJhds_dg69Yj8AfFyNUlfvJWtT13I8J67jrqyl1h89CCwK7y9ipA/s1600/Magu.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="183" data-original-width="275" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhU-1kZeSuiedpse3fdFeiP0smW5DNxHA6oZqpyhvNVMn8q8VeW-E1cFzP3_WeFxXNzAH4itpQZfmPs5jNbRKURXMZXJhds_dg69Yj8AfFyNUlfvJWtT13I8J67jrqyl1h89CCwK7y9ipA/s1600/Magu.jpg" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><b>President Magufuli of Tanzania(R). <br />Heavy-handedness paying off?</b></td></tr>
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TANZANIA's economic growth, which slowed down in the first half of last year compared to previously, could be revised down after weaknesses in the compilation of national accounts data are addressed, the International Monetary Fund (IMF) has revealed.</div>
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Economic growth was subdued in the first half of last year compared to previously, raising concern among some opposition politicians about the direction of the national economy. <o:p></o:p></div>
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But the IMF now reckons that an ongoing review of the government's method of computing the gross domestic product (GDP) figure, will likely reveal that the economy actually grew at a slower speed than the already reported 6.8 percent in H1 2017.<o:p></o:p></div>
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The IMF said in a new report that its East Africa Regional Technical Assistance Centre (East AFRITAC) is currently working with the state-run National Bureau of Statistics (NBS) to help review the GDP growth figures.<o:p></o:p></div>
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"The East AFRITAC is assisting the authorities in addressing weaknesses in national accounts’ compilation, which is likely to lead to downward revisions to the published growth number for the first half of 2017," IMF said in its latest 55-page country report for Tanzania released this week.<o:p></o:p></div>
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The officially published GDP growth figure for the first half of 2017 is 6.8 per cent, down from 7.7 percent in H1 2016.<o:p></o:p></div>
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However, the IMF warned that a review of data compilation for the national economy will probably reveal that the economy grew at a slower speed than the reported 6.8 per cent in the first half of last year.<o:p></o:p></div>
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"A decline in private sector credit, a sharp increase in non-performing loan (NPL) ratios, and weaknesses in tax revenue collections would suggest a deceleration in economic growth," it said.<o:p></o:p></div>
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The IMF said Tanzania's economy, which has been growing at around 7 per cent annually over the past decade, will now probably miss its GDP growth targets.<o:p></o:p></div>
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"Based on recent developments of the leading indicators of economic activities in the first half of 2017, the (government’s) targeted growth rate has been revised downwards to 7.0 per cent against the initial estimate of 7.1 percent," it said.<o:p></o:p></div>
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The World Bank said in November last year that Tanzania’s full-year GDP growth would likely decline to 6.6 percent in 2017 versus the government’s revised growth target of 7.0 percent. <o:p></o:p></div>
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The IMF said in its report that while Tanzania's economy grew at around 7.0 percent in fiscal year 2015/16, GDP growth will likely slow down to 6.0 percent in 2016/17.<o:p></o:p></div>
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According to IMF projections, Tanzania’s GDP growth will likely grow by 6.2 percent in 2017/18, followed by 6.5 percent (2018/19), 6.8 percent (2019/20) and 6.7 percent (2020/21).<o:p></o:p></div>
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“HEAVY-HANDEDNESS”<o:p></o:p></div>
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"The deteriorated perceptions regarding the business climate may become a drag on economic activity by failing to unlock new investment opportunities and deterring private sector participation in the major infrastructure projects," the IMF warned.<o:p></o:p></div>
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A decline in investor confidence in Tanzania over the past two years due to the uncertainty of government policies was hurting the economy, said the fund.<o:p></o:p></div>
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"Some recent events have increased private sector concerns about heavy-handed and arbitrary enforcement of rules, increasing uncertainty and negatively affecting private investment," the IMF noted. <o:p></o:p></div>
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"These include, for example, an export ban on mineral concentrates, heavy-handed changes to the mining laws and the delayed repayment of value-added tax (VAT) refunds."<o:p></o:p></div>
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According to the IMF, only 58 billion/- in VAT refunds were paid in 2016/17, compared with a staggering 570 billion/- paid in 2015/16 due to "broad and protracted audits of related claims."<o:p></o:p></div>
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"A continued low rate of execution of public infrastructure spending would have a negative impact on economic activity in the near term and reduce the growth potential going forward," it said. <o:p></o:p></div>
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"Additionally, a prolonged slowdown in private sector credit growth could affect economic activity."<o:p></o:p></div>
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The IMF said the fundamentals of Tanzania's economy remain robust, but the government needs to urgently address warning signs from key economic indicators.<o:p></o:p></div>
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"Although GDP data point to continued strong growth, other high-frequency data suggest a weakening economic activity. Tax revenue collections are lower than expected and credit growth has stagnated reflecting in part banks’ rising NPLs. Inflation remains moderate, and international reserves have increased substantially," it said.<o:p></o:p></div>
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"Strong growth and job creation are needed to address high poverty and a large underemployed youth population. Infrastructure gaps and the business climate have also become increasingly challenging and require a response. Sustained reforms will be needed to achieve the strong private sector-led growth envisioned by the government’s development plan."<o:p></o:p></div>
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Additional domestic revenue needs to be mobilised through tax policy and administration reforms while improving the functioning of the VAT refunds system, said the IMF. <o:p></o:p></div>
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Despite forecasts from both the IMF and the World Bank of slowing GDP growth in Tanzania, the government remains bullish that it will meet its revised 7.0 percent economic growth target for 2017.<o:p></o:p></div>
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The Minister for Finance and Planning, Dr Philip Mpango, said last month that Tanzania remained one of the fastest-growing economies in Africa, driven by construction, transport, communication and financial services sectors.<o:p></o:p><br />
From the Sunday Guardian</div>
East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-31064558793393650462018-01-10T04:54:00.000-08:002018-01-12T23:55:41.654-08:00 KQ to fly to direct New York from October<div class="MsoNormal">
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Kenya Airways will begin daily flights between Nairobi and New York in October. The flight will cut 7 hours of travel between the two cities.<o:p></o:p></div>
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Those keen top travel in October on the maiden flight can now start buying tickets whose sale begins on Thursday. Kenya Airways has already secured a landing slot at JFK.<o:p></o:p></div>
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The trans-Atlantic flights, scheduled to depart Jomo Kenyatta International Airport (JKIA) at 10:30pm every day, will last 15 hours arriving at JFK Airport at 6.30 am EAT. The return flight will depart JFK at 1: 30 PM landing in Nairobi at 10.30 am the next day.<o:p></o:p></div>
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Passengers traveling to JFK will arrive at 6:30am, in time for morning meetings, while the return flight from JFK will depart at 1:30pm and arrive in Nairobi at 10:30am the next day.<o:p></o:p></div>
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Each flight has a capacity of 234 passengers – 204 in Economy and the rest in Business Class of the national carrier’s Dreamliner aircraft.<o:p></o:p></div>
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Kenya Airways, known in short as KQ, has shelved plans to operate the flights through a code-share partnership with US carrier Delta Airlines, its SkyTeam partner.<o:p></o:p></div>
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Delta and three other airlines - Virgin Atlantic and KLM Air France- are currently involved in lengthy merger forcing Kenya Airways to go it alone for now.<o:p></o:p></div>
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KQ could add another flight to the US through West Africa, once the merger between her code-share partners is over.<o:p></o:p></div>
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For the Kenya government which has worked hard for the direct flights, it’s a sigh of relief. Phew it’s over! The government expects the direct flights to boost exports to the US and help jumpstart the tourism sector. An estimated100,000 Americans visit Kenya each year.<o:p></o:p><br />
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Also read http://eaers.blogspot.co.ke/2014/07/how-soon-kqs-direct-flights-to-us.html</div>
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East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-45662750069222560482014-10-27T06:05:00.000-07:002014-10-27T06:06:23.581-07:00Construction of Bagamoyo Port begins in 2015<h1 style="background-color: white; border: none; color: #464646; font-family: arial, helvetica, sans; font-size: 30px; line-height: 1; margin: 0px 0px 6px -1px;">
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<span style="font-family: verdana, helvetica, sans; font-size: 13px; line-height: 15.6000003814697px;">Construction of a Chinese-funded port and special economic zone in Tanzania worth at least $10 billion will start in July 2015, the president's office said in a statement on Monday, for the first time setting a start date for the delayed initiative.</span></div>
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<div style="font-family: verdana, helvetica, sans; margin-bottom: 1em; padding: 0px;">
<span class="focusParagraph"> The construction of Bagamoyo Port begins in July 2015. The proposed port is locatedat Bagamoyo, 75 km (47 miles) north of commercial capital Dar es Salaam.</span></div>
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</span><span id="midArticle_2"></span><span class="focusParagraph"><div style="font-family: verdana, helvetica, sans; margin-bottom: 1em; padding: 0px;">
A construction agreement for the port and associated zone was signed on Sunday and follows a framework deal signed last year. An official said a start date for building work had taken time to set because of other negotiations about infrastructure to link the port to national transport networks.</div>
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The planned Bagamoyo port, new investment in Dar es Salaam and other spending on roads and railways are part of Tanzania's efforts to become a transport hub that could challenge the dominance of Mombasa in neighbouring Kenya.</div>
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"The Tanzanian government signed a memorandum of understanding with two major international institutions ... to develop the Bagamoyo economic zone," Tanzania's presidency said in a statement, adding construction would start on July 1 next year.</div>
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Tanzania said it signed the infrastructure development agreement with port developer China Merchant Holding International (CMHI) and Oman's biggest sovereign wealth fund, the State General Reserve Fund (SGRF).</div>
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Tanzanian President Jakaya Kikwete witnessed the signing of the agreement in Shenzhen, southern China.</div>
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A framework agreement between Tanzania and the Chinese port operator was signed when Chinese President Xi Jinping's visited the African nation in March 2013.</div>
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Li Jianhong, executive chairman of China Merchants Holdings, asked Tanzania's government at the signing of the construction contract to remove obstacles that have delayed implementation.<span id="midArticle_byline"></span></div>
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"We will do everything possible to ensure that this project takes off because it will bring enormous economic benefits to the entire country," President Kikwete said in the statement.</div>
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Separately, Tanzania and China on Oct. 24 signed deals with Chinese firms worth more than $1.7 billion, including one to build a satellite city to ease congestion in Dar es Salaam, deepening Beijing's ties with east Africa.</div>
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China, which built a railway linking Tanzania and Zambia in the 1960s and 1970s, is financing a $1.2 billion, 532 km (330 mile) natural gas pipeline. China's Sichuan Hongda Co Ltd in 2011 signed a $3 billion deal with Tanzania to mine coal and iron ore</div>
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East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-25114770799335609222014-10-22T02:14:00.003-07:002014-10-22T02:16:16.276-07:00East Africa neighbours close to picking consultant for oil export pipeline<div class="MsoNormal">
<span style="font-family: 'Trebuchet MS', sans-serif;">KENYA, UGANDA and Rwanda are
in the final stages of deciding on a consultant to oversee building a pipeline
to pump the region's new oil bonanza to the coast for export, a senior Kenyan
energy ministry officials said on Thursday.</span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">In June, the three countries invited bids for a consultant
to oversee a feasibility study and initial design for the construction of a
1,300-km (808-mile) oil pipeline to transport crude to the Kenyan coast.<o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">"We are in the final stage of negotiating with the
consultant who will do a feasibility study and the front end engineering design
for a crude oil pipeline which should run from Hoima to coastal region of this
country," Joseph Njoroge, principal secretary at the Ministry Energy and
Petroleum told an east African oil and gas conference.<o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">"Very soon, early next month," Martin Heya,
commissioner of petroleum at the same ministry said of the award timing.<o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">Njoroge said the consultant would be required finish the
study within five months of the award.<o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">In addition to the pipeline, the consultant would be
required to supervise the construction of a fibre optic cable from Hoima in
Uganda through the Lokichar basin in northwest Kenya to Lamu, and tank
terminals in Hoima, Lokichar and Lamu.<o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">The project will also involve the construction of a 9-km
pipeline from the Lamu tank terminal to an offshore mooring buoys.<o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">Kenya's energy ministry said earlier this year the aim of
having a single consultant for the whole project was to ensure consistency in
the quality of the whole pipeline.<o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">East Africa has become potentially lucrative for
international oil firms after Kenya and Uganda's commercial oil finds and
discoveries of gas off the coast of Tanzania and Mozambique.<o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">Tullow Oil and Africa Oil, which control blocks in Kenya,
have estimated discoveries in the South Lokichar basin at 600 million barrels,
a level experts say is enough to make a pipeline viable even without Uganda.<o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">In neighbouring Uganda, the government estimates its crude
reserves at 6.5 billion barrels.<o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">Njoroge put the estimated crude oil recoverable reserves at
about 1 billion barrels from the tertiary Rift Valley Basin, and about 1
trillion cubic standard feet of natural gas in the Anza Basin, and about 750
billion cubic feet of gas in the Lamu Basin, all in Kenya.</span><o:p></o:p><br />
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<span style="font-family: Trebuchet MS, sans-serif;"> By Reuters</span></div>
East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-51599565687773007102014-09-25T00:39:00.002-07:002014-09-25T00:39:31.267-07:00 The corrupt fuel violence in Kenya<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">CORRUPT businessmen and politicians have been fanning
insecurity in Kenya. They use violence as a red herring to divert attention
from corruption to insecurity in a bid to cover their trucks or to blackmail
the government into stopping criminal investigations. A case in point is the
violence in Lamu County in June and July this year. <o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"> Corrupt characters had
grabbed huge tracts of land- to be precise- some 500,000 acres of public land. The land covers much of the area set aside for
the proposed US$23 billion Lamu
Port-South Sudan - Ethiopia transport corridor, LAPSSET. The land is public land occupied by squatters.
The grabbers therefore hired goons- who pretended to be Al-shabaab militants-
to violently evict them. <o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">This opened a Pandora’s Box.
Investigations into the cause of the violence unearthed the scandal. The land grab was executed by 22 entities that
grabbed 500,000 acres in 2011/2012. It is note worth that that was the period
immediately preceding the general election in Kenya in 2013. Kenya’s President
Uhuru Kenyatta pulled fast and bold one on the avaricious: He shocked the nation by announcing that just
a group of 22 entities, had grabbed some 500, 000 acres of public land in Lamu
County. The president ordered the repossession of the land and also
investigation with a view to prosecuting the culprits. <o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">The presidential announcement solved a paradox: Lamu is a
sparsely populated County, where population density is just sixteen per square
Kilometre: Why does the region suffer landlessness and violence related to land
ownership? Now 500,000acres of land
measures some 2000 square kilometres. This is enough land to accommodate some
32,000 people. This means that the 22
well-healed land grabbers displaced some 32,000 people.<o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">The land is a prime piece of real estate considering that it
borders the site of the proposed US$25 billion Lamu Port south Sudan Ethiopia
transport (LAPSSET) corridor. This corridor’s developments include the Lamu
Mega Port on 9000 hectares of land, a 2000km high speed Railway line, a Crude
Oil pipeline, a120, 000bpd Crude oil refinery, a highway a resort city and an economic zone. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"> The Port will also be
at the head of the equatorial bridge, a Railway line connecting Lamu Port on the
Indian Ocean to Douala port in Cameroun on the Atlantic Coast. This makes the
land a real gold hence a prime target for grabbing. LAPSSET will turn the backwater Lamu County
into a bustling energy and logistics hub in east Africa thus increasing demand
for land and consequently pushing up its price.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">Construction of the first three berths begins in the
32-berth port was proposed to begin this month hence the urgency to evict the
squatters. At least 100 people were slaughtered
in an orgy of violence lasting about three weekends.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"> The predators
according to intelligence reports were business men and politicians from both
the coast and up country. A majority
appears to be members or supporters of the opposition party, ODM, which is an
affiliate of the CORD coalition, the official opposition party in Kenya. One of
the kingpins of the opposition, Siaya senator James Orengo was the Minister in
charge of Lands in 2011/2012 when the land was dished out. Orengo is a Member of the Opposition CORD
coalition led by Raila Odinga who was the Prime Minster in the last coalition
government. He and Orengo are also at
the fore front of change the Constitution Movement. Ironically, among the
issues they want voted for is Corruption and insecurity. He has already
recorded a statement with the Police over the land grab.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"> The corrupt are adept
creating smokescreens and red herring s to cover up its shenanigans. For
instance, when the violence broke out in Mpeketoni in Mid- June, the government
blamed local political networks. The opposition
led by Raila Odinga, stopped short of calling the President an idiot insisting
that the violence is perpetuated by the Somali militant group-Al- Shabaab. Interestingly,
the Somalia based Al-shabaab militants “claimed responsibility for the carnage.” However, a person suspected to be an ODM
supporter, was later arrested for using a fake Al-shabaab twitter account to
issue the said admission.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"> The admission by
Al-shabaab was puzzling; the Militants are under siege, nay on the run, in
Somalia. Few thought they have the stomach
to attack targets across the borders. The land scandal has blown the cover on the
avaricious in Kenya. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">A part from displacing people from their land and therefore
their daily economic activities, the violence has devastated the tourism
sector.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">The coastal economy is largely depended on tourism. The sector, which was just emerging from bad
business caused by uncertainties associated with last year’s elections, is now
back in the doldrums. Travel advisories by western source markets have emptied
the white sandy beaches of tourists. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">The industry employs some 500,000 people directly and
millions others indirectly. These jobs are
at stake. Hotels have already declared a
significant proportion of these employees redundant. The national economic growth rate which is forecast
at 5.5 to per cent this year is also threatened. The crisis in the tourism
sector could shave off up to one per cent off the forecast growth. Last year,
the decline in tourist numbers shaved off 0.7 per cent of economic growth.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">It is perhaps this realisation that informed the bold move
by the government to cancel the title deeds and repossess the land. In
addition, to stop the bloodletting and hemorrhage of the economy, the government
sent the military to hunt down the criminals with a devastating effect. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<br />
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">Intelligence reports indicate that a large number of the
criminals were killed in security forces’ raids on their hideout in the
expansive Boni forest. If government sustains its aggressive stance on crime,
insecurity will decline. In fact, in august, insecurity was down significantly.</span><o:p></o:p></div>
East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-18843534556295501712014-09-16T02:04:00.000-07:002014-09-16T02:04:05.482-07:00East Africa’s EOI for Pipeline extension<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">Kenya, Uganda and Rwanda have invited EOI (Expression Of Interest) to build a 784-kilometre pipeline
to transport while petroleum products. The project, to be built in in two
phases will transport refined petroleum products from Kenya to both Uganda and
Rwanda.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">A</span></span></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">The project, part of east African regional integration plans, involves
extending an existing pipeline that runs from the Kenyan port of Mombasa and
the western town of Eldoret.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">The extension will link that pipeline to Kampala and Kigali and also serve
markets in Tanzania, Burundi, South Sudan and the Democratic Republic of Congo.
Products now have to be trucked by road.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">Uganda and Kenya have discovered commercial quantities of oil and plan to
start production in about three years. Those finds are among a series of
discoveries along Africa's eastern coast and Rift Valley which runs through
Kenya and other states.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">As well as exporting crude, Uganda plans to refine some oil, making products
that could flow through the pipeline extension. Plans include modifying the
existing pipeline, which pumps products from the coast inland, so products can
flow both ways.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;"> Interested parties should submit the
bids by Sept. 30.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;"> The advertisement does not have a
price tag. However, previously the tag was estimated at $300 million.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">The existing products pipeline is owned and operated by the state-run Kenya
Pipeline Company (KPC).<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">The extension would be built in two phases, comprising a 350-km stretch
between Eldoret and Kampala and a 434-km pipeline between the Ugandan capital
to Kigali. It also includes construction
of storage terminal at Kampala, Mbarara and Kigali.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<br />
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">Separate to the products pipeline, Kenya, Uganda and Rwanda invited bids in
June for a consultant to oversee a feasibility study and initial design for a
1,300-kilometre oil export pipeline to the Kenyan coast. </span><o:p></o:p></span></div>
East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-35793698929975040562014-09-09T03:00:00.001-07:002014-09-09T03:02:27.701-07:00EOI call for Kenya's oil jetty<span style="font-family: Trebuchet MS, sans-serif;">Kenya's National Oil Corp has floated an EOI for a project adviser for a new oil jetty in the port city of Mombasa.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;"> The tendedr, published on Monday, NOCK invites firms to submit expressions of interest by Sept. 29 to act as adviser for the Public Private Partnership (PPP) project.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">"The successful candidate will review the original feasibility study to cater for the oil discoveries which have made Kenya a potential oil exporter.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;"> The initial plans unveiled in 2012 for the oil jetty, or single buoy mooring, and storage facilities were pushed back to change the scope and design after oil was found in Kenya. The initial plan was to cost some US$500 million.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">"We originally envisaged to work with a specific jetty design as a net importer of oil but that changed because of the discovery of oil deposits in Kenya in 2012," NOCK spokesman Temesi Mukani told Reuters.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">The tender document said the project aimed to ensure the port was more efficient, cut delays and made Kenya's coast a competitive choice for oil tankers. Another objective is to "provide the infrastructure that will support east African states to export their discoveries to global markets".</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">The main export route discussed up until now for Kenyan and Ugandan oil, both still a few years from major production, would be via a planned pipeline in north Kenya to a new port at Lamu.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">Kenya is under pressure to boost storage facilities and develop a strategic reserve to stabilise petroleum supplies. The country has no strategic reserves and relies on oil marketers' 21-day reserves required under industry regulations.</span><br />
<br />
Crude has also been found in next door Uganda, part of a string of hydrocarbons finds along Africa's east coast and the Rift Valley that passes through Kenya and neighbouring states.<br />
<br />
Fuel prices have a big impact on inflation in the east African nation, which relies heavily on diesel for transport, power generation and agriculture, while kerosene is used in many households for cooking and lighting.<br />
<div>
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East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-81043187813223312872014-09-03T12:26:00.003-07:002014-09-03T12:26:48.232-07:00Kenya Bourse's IPO oversubscribed<div style="font-family: verdana, helvetica, sans; margin: 0px 0px 1em; padding: 0px;">
<span class="articleLocation">NAIROBI, Sept 3</span> (Reuters) - The Nairobi Securities Exchange (NSE) has raised 627 million Kenyan shillings ($7.1 million) for expansion in an oversubscribed initial public offering as part of plans to demutualise the bourse.<span id="midArticle_byline"></span></div>
<div style="font-family: verdana, helvetica, sans; margin: 0px 0px 1em; padding: 0px;">
Demutualisation is seen as a way of curbing the influence stockbrokers have over the exchange's management, which has been criticised for reacting slowly to breaches in regulations.</div>
<div style="font-family: verdana, helvetica, sans; margin: 0px 0px 1em; padding: 0px;">
The funds raised will be used to develop new products such as derivatives, exchange-traded funds and Sharia-compliant indexes, NSE Chief Executive Peter Mwangi said in a statement late on Tuesday.</div>
<div style="font-family: verdana, helvetica, sans; margin: 0px 0px 1em; padding: 0px;">
The completion of the IPO makes the NSE the second African exchange after the Johannesburg Stock Exchange to be demutualised and transition from a private, mutual company to a public, listed company.</div>
<div style="font-family: verdana, helvetica, sans; margin: 0px 0px 1em; padding: 0px;">
The NSE had said it was seeking to raise 627 million shillings by selling up to 66 million new shares at a price of 9.50 shillings per share. Investors applied for 504,189,700 new shares worth 4.8 billion shillings garnering a subscription of 764 percent, and an over subscription of 664 percent.</div>
<div style="font-family: verdana, helvetica, sans; margin: 0px 0px 1em; padding: 0px;">
The new shareholders will be able to trade their NSE shares next Tuesday, the NSE said.</div>
<span class="focusParagraph" style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_0" style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_1" style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_2" style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_3" style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_4" style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_5" style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-family: arial, helvetica, sans; font-size: 13px; line-height: 15.600000381469727px;"></span><br />
<div style="font-family: verdana, helvetica, sans; margin: 0px 0px 1em; padding: 0px;">
Following the listing - planned since 2005 - the NSE shares will trade like any other company on the bourse.</div>
<div style="font-family: verdana, helvetica, sans; margin: 0px 0px 1em; padding: 0px;">
Reuters</div>
East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-64329121359105866362014-08-29T09:28:00.002-07:002014-08-29T09:28:49.162-07:00Uganda Lifts Oil Reserves<div style="background-color: white; font-size: 15px; line-height: 23px; margin-bottom: 20px; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">UGANDA has revised upwards to 6.5 billion barrels after an appraisal that also showed commercial deposits of natural gas, officials said.</span></div>
<div style="background-color: white; font-size: 15px; line-height: 23px; margin-bottom: 20px; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">The east African country discovered commercial hydrocarbon deposits in the Albertine rift basin that straddles its border with the Democratic Republic of <span class="mandelbrot_refrag"><a class="mandelbrot_refrag" data-ls-seen="1" href="http://www.reuters.com/places/congo?lc=int_mb_1001" style="color: #006e97; cursor: pointer; outline: none; text-decoration: none;">Congo</a></span> in 2006.</span></div>
<div style="background-color: white; font-size: 15px; line-height: 23px; margin-bottom: 20px; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">Production has been repeatedly delayed since then by contractual disagreements, tax disputes and infrastructure setbacks and is now expected from 2017.</span></div>
<div style="background-color: white; font-size: 15px; line-height: 23px; margin-bottom: 20px; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">In a speech seen by Reuters on Friday, Ernest Rubondo commissioner for the energy ministry's Petroleum Exploration and Production Department, said only 40 percent of the basin had been explored so far and that estimated recoverable oil stood at 1.4 billion barrels.</span></div>
<div style="background-color: white; font-size: 15px; line-height: 23px; margin-bottom: 20px; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">Production of the discovered oil could last 20 to 30 years, and even more oil could be found, Rubondo said.</span></div>
<div style="background-color: white; font-size: 15px; line-height: 23px; margin-bottom: 20px; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">"Since additional exploration and appraisal is expected ... this could lead to additional resources being discovered in the country, hence prolonging the production period," Rubondo said.</span></div>
<div style="background-color: white; font-size: 15px; line-height: 23px; margin-bottom: 20px; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">Rubondo said Uganda was preparing for "open competitive licensing rounds" for the remaining acreage in the basin, but did not yet have a time frame for the process.</span></div>
<div style="background-color: white; font-size: 15px; line-height: 23px; margin-bottom: 20px; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">Ugandan officials say they aim to get better terms from explorers in future oil deals now that the country's exploration risk has been diminished by the discovery of more commercially viable oil deposits.</span></div>
<div style="background-color: white; font-size: 15px; line-height: 23px; margin-bottom: 20px; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">In a separate statement, the energy ministry said on Friday that the country had some 500 billion <span class="mandelbrot_refrag"><a class="mandelbrot_refrag" data-ls-seen="1" href="http://www.reuters.com/finance/stocks/overview?symbol=CUB&lc=int_mb_1001" style="color: #006e97; cursor: pointer; outline: none; text-decoration: none;">cubic</a></span> feet of natural gas.</span></div>
<div style="background-color: white; font-size: 15px; line-height: 23px; margin-bottom: 20px; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">Ugandan oil officials have long suspected the presence of gas traces, but on Friday they confirmed publicly for the first time the existence of commercial natural gas deposits.</span></div>
<div style="background-color: white; font-size: 15px; line-height: 23px; margin-bottom: 20px; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">East Africa has been a focus of hydrocarbon exploration after substantial <span class="mandelbrot_refrag"><a class="mandelbrot_refrag" data-ls-seen="1" href="http://www.reuters.com/finance/commodity?symbol=GB@IB.1&lc=int_mb_1001" style="color: #006e97; cursor: pointer; outline: none; text-decoration: none;">crude oil</a></span> deposits were found in Kenya, although commercial viability has yet to be established. Major gas reserves have been discovered in Tanzania and Mozambique.</span></div>
<span style="font-family: Trebuchet MS, sans-serif;"><span id="midArticle_4" style="background-color: white;"></span><span id="midArticle_5" style="background-color: white;"></span><span id="midArticle_6" style="background-color: white;"></span><span id="midArticle_7" style="background-color: white;"></span><span id="midArticle_8" style="background-color: white;"></span><span id="midArticle_9" style="background-color: white;"></span><span id="midArticle_10" style="background-color: white;"></span><span id="midArticle_11" style="background-color: white;"></span><span id="midArticle_12" style="background-color: white;"></span><span id="midArticle_13" style="background-color: white;"></span><span id="midArticle_14" style="background-color: white;"></span></span><br />
<div style="background-color: white; font-size: 15px; line-height: 23px; margin-bottom: 20px; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">London-listed Tullow Oil, France's Total SA and CNOOC of <span class="mandelbrot_refrag"><a class="mandelbrot_refrag" data-ls-seen="1" href="http://www.reuters.com/places/china?lc=int_mb_1001" style="color: #006e97; cursor: pointer; outline: none; text-decoration: none;">China</a></span>, are exploring for oil in Uganda. Tullow has estimated Uganda could earn up to $50 billion from its oil reserves. </span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
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East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-29703897827303611762014-07-30T06:18:00.004-07:002014-07-30T06:21:25.509-07:00America's scramble for Africa<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<div style="margin: 0px 0px 1em; padding: 0px;">
<span style="font-family: 'Trebuchet MS', sans-serif;">"<span style="font-size: large;"><b>E</b></span><i><span style="font-size: large;">ngaging with Africa not as a choice, but as a necessity,</span></i>"</span></div>
<div style="margin: 0px 0px 1em; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;"> The Obama administration on Tuesday pushed for Congress to renew a 14-year-old trade program giving African countries duty-free access to U.S. markets, warning that allowing the prog</span><span style="font-family: 'Trebuchet MS', sans-serif;">ram to expire would disrupt trade flows between the two regions.</span></div>
<div style="margin: 0px 0px 1em; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">U.S. Trade Representative Michael Froman said the African Growth Opportunity Act, or AGOA, which expires on Sept. 30 next year had both benefited African countries and supported 120,000 U.S. jobs.</span></div>
<div style="margin: 0px 0px 1em; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">Froman's remarks came just days before the White House is set to host 50 African leaders at a three-day U.S.-Africa summit aimed at strengthening relations. AGOA, which is at the heart of U.S.-Africa trade ties, will be a key issue.</span></div>
<div style="margin: 0px 0px 1em; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">Enacted in 2000, AGOA gives about 7,000 products from sub-Saharan African countries access to U.S. markets free of import duty. Nearly 40 African countries are eligible to take part.</span></div>
<div style="margin: 0px 0px 1em; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">"Given that Africa is home to the world's fastest growing middle class and six out of 10 of the fastest growing economies in 2014, it's easy to see why companies like General Electric Co, Caterpillar Inc and Procter & Gamble Co increasingly view engaging with Africa not as a choice, but as a necessity," Froman said.</span></div>
<div style="margin: 0px 0px 1em; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">The head of the House Ways and Means trade subcommittee, Devin Nunes, told reporters Congress could package AGOA renewal together with fast-track power for trade negotiations, or trade promotion authority (TPA), and other outstanding trade issues.</span></div>
<div style="margin: 0px 0px 1em; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">"We have so many of these trade issues that are basically standing behind TPA, we have got to get TPA first," he said.</span></div>
<div style="margin: 0px 0px 1em; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">Exports from sub-Saharan Africa to the United States under AGOA and other trade preferences totaled $26.8 billion in 2013, according to USTR data. Most of those exports were petroleum products; non-oil goods accounted for just $4.9 billion.</span></div>
<div style="margin: 0px 0px 1em; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">"That is still relatively modest and we want to see that grow," Froman said at an event sponsored by the Brookings Institution.<span id="midArticle_byline"></span></span></div>
<div style="margin: 0px 0px 1em; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">The trade program has been criticized for disproportionately benefiting certain industries and a handful of countries, including Nigeria, South Africa and Angola.</span></div>
<div style="margin: 0px 0px 1em; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">Some African leaders have also said their countries lack the skilled labor and infrastructure to take advantage of it. Several African countries, for instance, are plagued with poor roads and shortages of electricity, which leads to power rationing that interrupts manufacturing.</span></div>
<div style="margin: 0px 0px 1em; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">Froman said the Obama administration plans to address AGOA's shortcomings and expand access to the program while also holding eligible countries more accountable. His office wants Congress to renew the program in advance.</span></div>
<div style="margin: 0px 0px 1em; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">Lawmakers will likely demand overhauls to the program, including making it more </span></div>
<div style="margin: 0px 0px 1em; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">reciprocal so the United States can enjoy open access to African markets.</span></div>
<span style="font-family: Trebuchet MS, sans-serif;"><span class="focusParagraph" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_0" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_1" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_2" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_3" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_4" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_5" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_6" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_7" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_8" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_0" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_1" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_2" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_3" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span id="midArticle_4" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span><span class="focusParagraph" style="background-color: white; font-size: 13px; line-height: 15.600000381469727px;"></span></span><br />
<div style="margin: 0px 0px 1em; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">"The specific parameters of AGOA, of course, are ultimately a prerogative of Congress, and we look forward to working with them to put in place a program that reflects the reality of Africa's rise," Froman said.</span></div>
<div style="margin: 0px 0px 1em; padding: 0px;">
<span style="font-family: Trebuchet MS, sans-serif;">Reuters</span></div>
East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-82740217290872724172014-04-30T11:56:00.003-07:002014-04-30T12:03:53.168-07:00Tullow to Conduct Extensive Appraisal Drilling and Testing for Oil Production in Kenya<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">B</span><span style="font-family: Arial, Helvetica, sans-serif;">ritish firm, Tullow Oil Plc, says it will conduct extensive appraisal
drilling and testing throughout year 2014 and 2015.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Arial, Helvetica, sans-serif;">The objective of the extensive appraisal drilling and testing is to
finalize a commercial production development report.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Arial, Helvetica, sans-serif;">This report is what the government of Kenya wants. Nairobi wants to start
selling oil as early as 2016 or 2017 and Tullow Plc must provide a
comprehensive development report.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Arial, Helvetica, sans-serif;">Speaking in Nairobi, Robin Sutherland, Tullow Oil Plc exploration manager
for Sub Saharan Africa said the company is expected to submit a field
development plan to the government of Kenya in the fourth quarter of 2015.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Arial, Helvetica, sans-serif;">“We are expecting to submit our field development plans to the government
in the fourth quarter of 2015,” Robin Sutherland told an oil and gas conference
in Nairobi.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<br />
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Arial, Helvetica, sans-serif;">The appraisal drilling and testing will quantify the commercial viability
thresholds; enable both the government and the investors to make projections.</span><o:p></o:p></span><br />
<i><span style="font-size: x-small;"><span lang="EN"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span></span></i>
<i><span style="font-size: x-small;"><span lang="EN"><span style="font-family: Arial, Helvetica, sans-serif;">Source:</span></span><span style="font-family: Arial, Helvetica, sans-serif;">.intelligencebriefs.com/</span></span></i></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;"><i> </i></span></span></div>
East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-3786171819911043682014-03-31T00:32:00.001-07:002014-03-31T00:36:27.697-07:00Kenya's Airport financiers named<div style="background-color: white; box-sizing: border-box; color: #2d2b2c; font-family: akzidenz-grotesk-std-bloom; font-size: 1.1em; line-height: 1.3125em; margin-bottom: 28px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi5hWgCpDuokCVrDZ6YsdFPJQIbRxpjncGrHRjmD-VEXqu1MSo8dUotDHrtpGxjU8Bk8CLV71dWbONTL-9m2xdxNMfDPxRzRmxsqoFH-NEo_dxeZQXgppBhsEsnaBRzUIews-weOJ3B2kU/s1600/JKIA+gf.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi5hWgCpDuokCVrDZ6YsdFPJQIbRxpjncGrHRjmD-VEXqu1MSo8dUotDHrtpGxjU8Bk8CLV71dWbONTL-9m2xdxNMfDPxRzRmxsqoFH-NEo_dxeZQXgppBhsEsnaBRzUIews-weOJ3B2kU/s1600/JKIA+gf.jpg" height="134" width="200" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><span style="font-family: Trebuchet MS, sans-serif;">The prototype of the new terminal</span></td></tr>
</tbody></table>
<a density="full" href="http://topics.bloomberg.com/kenya/" style="box-sizing: border-box; color: #003399; cursor: pointer; font-weight: 700; outline: none; text-decoration: none;">Kenya</a>’s government is in talks with four companies, including <a class="web_ticker" density="sparse" href="http://www.bloomberg.com/quote/SBK:SJ" style="box-sizing: border-box; color: #003399; cursor: pointer; font-weight: 700; outline: none; text-decoration: none;" ticker="SBK:SJ" title="Get Quote" topic_url="http://topics.bloomberg.com/standard-bank-group-ltd/">Standard Bank Group Ltd. (SBK)</a>, Africa’s biggest lender, about funding the construction of a $653 million Green field airport terminal, the Kenya Airports Authority said.</div>
<div style="background-color: white; box-sizing: border-box; color: #2d2b2c; font-family: akzidenz-grotesk-std-bloom; font-size: 1.1em; line-height: 1.3125em; margin-bottom: 28px;">
The state is in discussions with the African Development Bank, China Development Bank Corp. and Sunnyvale, California-based AAE Systems Inc. about funding 85 percent of the project cost, Managing Director Lucy Mbugua told reporters today in the capital, Nairobi. The first phase of construction of the new terminal in Nairobi will begin in July and is expected to end in 2017, she said.</div>
<div style="background-color: white; box-sizing: border-box; color: #2d2b2c; font-family: akzidenz-grotesk-std-bloom; font-size: 1.1em; line-height: 1.3125em; margin-bottom: 28px;">
“They have already given us their terms and we are in discussion,” Mbugua said.</div>
<div style="background-color: white; box-sizing: border-box; color: #2d2b2c; font-family: akzidenz-grotesk-std-bloom; line-height: 1.3125em; margin-bottom: 28px;">
<div style="font-size: 1.1em;">
Kenya is expanding its Jomo Kenyatta International Airport as it seeks to boost arrivals of tourists who are the second-biggest source of foreign-currency earnings in East <a density="sparse" href="http://topics.bloomberg.com/africa/" style="box-sizing: border-box; color: #003399; cursor: pointer; font-weight: 700; outline: none; text-decoration: none;">Africa</a>’s largest economy. The new terminal will have the capacity to handle 20 million passengers a year, compared with the 7 million that the existing terminal, built in 1978, can process.</div>
<b><i>From Bloomberg</i></b></div>
East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-26157089382567922762014-03-25T01:53:00.002-07:002014-03-25T01:53:26.110-07:00Six DreamLiners for Kenya Airways this year<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvyfu0hTC5aVonBcF0MWEpoUmlh4UYvOxvou7JP6CpVTWEGjG6CDWgEY_FnINlgZllZd-_ItyYJmUvnervO4-KD5bZyXSUrhDK-ve1S7IU6cBRXzA1QDhJYy3ftmllqq8ys0C21Pk4qNE/s1600/E190-FFF2.gif" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvyfu0hTC5aVonBcF0MWEpoUmlh4UYvOxvou7JP6CpVTWEGjG6CDWgEY_FnINlgZllZd-_ItyYJmUvnervO4-KD5bZyXSUrhDK-ve1S7IU6cBRXzA1QDhJYy3ftmllqq8ys0C21Pk4qNE/s1600/E190-FFF2.gif" height="141" width="200" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><span style="font-family: Trebuchet MS, sans-serif; font-size: xx-small;"><b>The Pride of Africa</b></span></td></tr>
</tbody></table>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">Kenya Airways will take delivery of its first Boeing 787 on April 4,
marking the first of six of the type to join its fleet in 2014.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">Nairobi-based Kenya Airways said the new additions, which also include a
777-300ER slated for delivery in May, form a key part of its Project Mawingu
10-year growth strategy.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">The aircraft will be used as part of a “deliberate effort” to step up Kenya
Airways’ long-haul capacity, allowing the carrier to increase its number of
direct flights, and add new destinations and frequencies.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">“Routes to Paris, Amsterdam and Beijing are among the destinations
earmarked for direct flights, as we continue exploring new markets that will be
instrumental in helping us achieve our objective, to contribute toward the
sustainable development of Africa,” Kenya Airways CEO Titus Naikuni said.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<br />
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">Kenya Airways also recently confirmed plans to launch new budget carrier
Jambo Jet on April 1.</span><o:p></o:p></span></div>
East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-72115716526050977292014-02-12T23:00:00.003-08:002014-02-12T23:09:09.801-08:00Kenya to call or EOI on crude pipelin<div class="MsoNormal">
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9Y2jlLVv-vgZz7KhnPtldSSlcBu1mTU2mbxVCM-sRj7aqBINWIE0RVvPYiST5Aw538_ediLzvOgOwMu0Aj_ZjFgyaPn7Hy8qNtSZvw2xGZmhdzN5L7lgxvm4DSJ_icTLj5lWwBf2GonM/s1600/Juba-lamu.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9Y2jlLVv-vgZz7KhnPtldSSlcBu1mTU2mbxVCM-sRj7aqBINWIE0RVvPYiST5Aw538_ediLzvOgOwMu0Aj_ZjFgyaPn7Hy8qNtSZvw2xGZmhdzN5L7lgxvm4DSJ_icTLj5lWwBf2GonM/s1600/Juba-lamu.jpg" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><b>An oil Pipeline. Pipedream turns reality?</b></td></tr>
</tbody></table>
<span lang="EN">KENYA will soon float an EOI for the design and construction of a crude oil
pipeline from Turkana to the proposed Port of Lamu. Although the ownership of
the project is yet to be decided, the government appears to be thinking a PPP.<o:p></o:p></span><br />
<span lang="EN"><br /></span></div>
<div class="MsoNormal">
<span lang="EN">Available information seems to suggest that the government could be looking
at a DBFO. The cabinet Secretary in charge of Energy in Kenya has indicated
that the government will expect prospective investors to submit engineering,
procurement and construction (EPC) models as well as their financing
arrangements.<o:p></o:p></span><br />
<span lang="EN"><br /></span></div>
<div class="MsoNormal">
<span lang="EN">The US$3 billion pipeline was initially conceived to transport crude oil
from South Sudan to the port of Lamu. That was before Kenya discovered oil in
2013. Now that Kenya has discovered commercial quantities, she is set take the
lead in the development of the pipeline. South Sudan is stumbling from one
crisis to the next which could slam the breaks on the country’s development
agenda. South Sudan for all intends and purpose is going to be a passenger on
the project.<o:p></o:p></span><br />
<span lang="EN"><br /></span></div>
<div class="MsoNormal">
<span lang="EN">Toyota Tshusho, the investment arm of Japan Toyota Motor Corporation had
tendered a US$3 billion bid to build the Pipeline with an option to extend it
to Uganda for a total cost of $5 billion.
It is not clear what become of that unsolicited bid. However, her preliminary
designs for the project, with several components in addition to the pipeline
including a 120,000bpd refinery at Lamu. That could stand her a good stead in
future bids.<o:p></o:p></span></div>
<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
</div>
<span lang="EN">Kenya’s oil finds have reached commercial thresholds. Consequently, it was
time the country started preparing infrastructure ahead of commercial
production, hopefully in three years.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN">So far Kenya’s oil wealth is estimated at 600 million barrels out of seven
wells. Exploration is still going on and more crude is likely to be discovered.
<o:p></o:p></span><br />
<span lang="EN"><br /></span></div>
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<span lang="EN">The plans by the ministry of Energy and Petroleum got a boost after Uganda
signed a memorandum of understanding with Britain’s Tullow Oil, France’s Total
and China’s CNOOC last week in a significant step towards launching oil
production in the country. Uganda is also looking at exporting her crude oil
through the LAPSSET corridor, that is the Lamu port.<o:p></o:p></span><br />
<span lang="EN"><br /></span></div>
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<span lang="EN">A development plan prepared by the Energy ministry shows that production is
likely to begin during the 2016/7 financial year.<o:p></o:p></span></div>
<br />
<div class="MsoNormal">
<span lang="EN">The pipeline is on the Lamu port, South Sudan, Ethiopia transport corridor
(LAPSSET). Consequently, it is expected to be extended to South Sudan, and Ethiopia.
Although it is not clear the distance of pipeline in Kenya, the initial
proposal placed the distance at 2000 km from Juba to Lamu. <o:p></o:p></span></div>
East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-91790024918475258442014-02-04T06:58:00.000-08:002014-02-04T06:58:00.463-08:00Tanzania’s US$30bn Power gap<h1 style="background-color: white; border-bottom-color: rgb(220, 220, 220); border-bottom-style: solid; border-bottom-width: 3px; color: #333333; font-family: Helvetica, Arial, sans-serif; font-size: 20px; font-weight: normal; line-height: 19.200000762939453px; margin: 0px; padding: 8px 0px 6px;">
<span style="color: #666666; font-size: 10px;">03 February, 2014 06:28:00</span></h1>
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<span style="font-size: 12pt;"> Reports indicate that Tanzania's energy infrastructure will require a new investment of almost $3 billion annually for the period of 10 years to meet its power supply demand.</span></div>
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<span style="font-size: 12pt;">The figure was revealed during the Powering Africa Tanzania symposium, a gathering that brings together key public and private sector energy stakeholders.</span></div>
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<span style="font-size: 12pt;">The African Development Bank's Chief of Power Engineer, Dr Babu Ram, says Tanzania has a massive infrastructure gap and it’s getting worse every day.</span></div>
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<span style="font-size: 12pt;">Dr. Ram believes that spending at the increased level would absorb just over 20% of the country's GDP. On average, African countries are spending only 40% on infrastructure.</span></div>
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<span style="font-size: 12pt;"><a href="http://www.twitter.com/AfricanBJournal" style="color: #002bb8; text-decoration: none;">@AfricanBJournal</a></span></div>
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East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-34479572806757475742013-11-29T00:52:00.001-08:002013-11-29T01:09:17.195-08:00African Development Bank funds EA hydro project<div style="background-color: white; border: 0px; color: #535353; font-family: 'Open Sans', sans-serif, serif; font-size: 13px; line-height: 22px; margin-bottom: 15px; padding: 0px; vertical-align: baseline;">
The African Development Bank Group’s (AfDB) on Thursday approved US$ 113 million for the 80MW Regional Rusumo Falls Hydropower Project. The African Development Fund (ADF) and the Nigeria Trust Fund will cough US$97.3 million while the the Sustainable Energy for All (SE4All) window approved a grant of US$16 million. The project will benefit Tanzania, Rwanda and Burundi.</div>
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“Africa has incredible untapped hydropower potential: only four per cent of which has been exploited,” explained Alex Rugamba, Director of the AfDB’s Energy, Environment and Climate Change Department.</div>
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“Through projects such as the Rusumo Falls project we are looking to leverage Africa’s natural assets for universal access to modern, reliable and affordable energy services on the continent,” Rugamba added.</div>
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The development agency said in an official statement that the construction of the transmission facilities of the power generation plant is expected to be completed by August 2018 with the three beneficiary countries sharing the power equally and Burundi receiving 50 percent of it’s current peak power demand.</div>
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“The project will enhance the process of regional integration by the countries developing and managing the joint assets,” AfDB said.</div>
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The Rusumo Falls is on Kagera River in Rwanda. The project is a Programme for Infrastructure Development for Africa (PIDA) priority project. In 2012, African Heads of State endorsed a set of priority energy projects to be implemented by 2020 as part of the PIDA.</div>
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Rusumo Falls is one of nine hydropower projects identified for the PIDA energy infrastructure program, which focuses on major hydroelectric projects and interconnects the power pools between countries.</div>
East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-792057249406705152013-11-14T01:55:00.002-08:002013-11-27T23:36:20.542-08:00Mombasa-Kigali Railway to be launched on Nov.28th<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGynR6t6QGffLE40hnH8KWoOHhOFEVJ1GVxMJJaL160xasjtvK7J6PmG4S43ULSwqlitUUHelicUHZ4LAqAIzNWGCLqdoEDTgrWh16U_j8-p4G2OVlGsGaRe4M_1D0Vq4NawT7pAxO4xQ/s1600/Rail-contruction-600x400.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGynR6t6QGffLE40hnH8KWoOHhOFEVJ1GVxMJJaL160xasjtvK7J6PmG4S43ULSwqlitUUHelicUHZ4LAqAIzNWGCLqdoEDTgrWh16U_j8-p4G2OVlGsGaRe4M_1D0Vq4NawT7pAxO4xQ/s200/Rail-contruction-600x400.jpg" width="200" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><span style="font-family: Trebuchet MS, sans-serif;">A railway Line Under construction. </span><br />
<span style="font-family: Trebuchet MS, sans-serif;">This is how we do it</span></td></tr>
</tbody></table>
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<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">The ground breaking ceremony for the Mombasa –Kigali standard Gauge Railway
line is slated for November 28<sup>th</sup>, we can report. This marks the
beginning of the construction of the US$ 13.5 billion 2937KM standard Gauge railway
line sponsored by the governments of Kenya, Uganda and Rwanda.<o:p></o:p></span></span></div>
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<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;"><br /></span></span></div>
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<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">Kenya has already secured US$3.75 from China for the construction of the
line and rolling stock. The Kenyan side of the line will cover some 1185km
running from Mombasa through Nairobi to Malaba with a branch line to Kisumu. This
section is expected to be completed by 2017. The entire project is expected to be complete by 2018.<o:p></o:p></span></span></div>
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<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFKguPnY5IW_6obsAZhAUTTTsPiajJSx1hJyOQiqPfSOG9UTxlty7htYDsk4qG9TmK7PwDCNCYqGmQk69C13iqTj_q5nFHV9lhu_Fklhj33S-GPWzqmPhoodtEvvxmaHw4BrhsKsrwWfM/s1600/mombasa-port1.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFKguPnY5IW_6obsAZhAUTTTsPiajJSx1hJyOQiqPfSOG9UTxlty7htYDsk4qG9TmK7PwDCNCYqGmQk69C13iqTj_q5nFHV9lhu_Fklhj33S-GPWzqmPhoodtEvvxmaHw4BrhsKsrwWfM/s200/mombasa-port1.jpg" width="199" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">M<span style="font-family: Trebuchet MS, sans-serif;">ombasa Port: Congested</span></td></tr>
</tbody></table>
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<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;"> Across the borders the project will
involve; a 1,400km rail from Malaba to Kampala and branching to four Ugandan
towns before connecting to the main line to Rwanda at Mirima Hills; a 200km
rail from Mirima Hills to Kigali and an extra 150km rail to other towns in
Rwanda. <o:p></o:p></span></span></div>
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<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">The new line will enable passenger trains to run at 120Km per hour while
freight trains will do 80km per hour. It is expected to cut freight costs from
the port of Mombasa to Kisumu by whopping75 per cent from about US$1,648 to
US$353 per 20 foot container.<o:p></o:p></span></span></div>
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<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;"><br /></span></span></div>
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<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">The Mombasa Port-Kampala-Kigali Railway line, christened Mokaki, comes at
an opportune time as the Port of Mombasa, the largest Port in east Africa, is
also being expanded to meet the growing demand. The Port which handled 21
Million tons of freight last year, plans to raise its capacity to 40 million
tons a year from 2015. Read <u><a href="http://eaers.blogspot.com/2013/07/kenya-ports-post-panamax-project-ahead.html">http://eaers.blogspot.com/2013/07/kenya-ports-post-panamax-project-ahead.html</a></u><o:p></o:p></span></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN"> Freight to and from Uganda and
Rwanda stood at 23 million tons last year and grows at three percent a year. A
part from imports, growing trade between Kenya and her two neighbours will also
benefit from the construction of the high-speed Railway line. For further
reading visit:</span><span lang="EN"> </span><a href="http://eaers.blogspot.com/2013/07/coming-soon-mombasa-kigali-express.html">http://eaers.blogspot.com/2013/07/coming-soon-mombasa-kigali-express.html</a></span><span lang="EN"><o:p></o:p></span></div>
East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-87581058076367347782013-10-30T08:59:00.000-07:002013-10-30T09:01:04.207-07:00Kenya's power generator seeks US$5.5 bn to expand output<span style="font-family: Trebuchet MS, sans-serif;">Kenya Electricity Generating Co., the East African nation’s biggest power producer, said it will seek to raise $5.5 billion through a mix of 70 percent debt and 30 percent equity to finance a doubling of its output capacity, reports Bloomberg.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">Development finance institutions, export agencies, commercial banks and other lenders will provide about $3.85 billion, while $1.65 billion will come from joint ventures, a rights offer and revenue, acting Chief Executive Officer Simon Ngure told reporters today in the capital, Nairobi.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">KenGen, as the company is known, plans to generate 2,500 megawatts of additional capacity over 40 months, representing half of the government’s target to boost installed capacity by 5,000 megawatts by 2017, he said.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">“We need this power to drive economic growth in this country,” Ngure said.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">With the economy growing and the population expanding, electricity consumption in Kenya is rising an average of 8 percent a year. KenGen produces 1,239 megawatts, while four private producers account for the remainder of the countrywide installed capacity of 1,664 megawatts, according to the company.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">The state owns about 70 percent of KenGen, which currently relies on hydropower generation that is affected by recurrent drought. President Uhuru Kenyatta said in September the country plans to become more reliant on natural-gas and coal-fired generation to lower costs by as much as six-fold.</span><br />
<br />
<span style="font-family: Trebuchet MS, sans-serif;">East Africa’s biggest economy is preparing to sell its inaugural Eurobond to raise as much as $2 billion by early next year to fund infrastructure development such as power projects.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">KenGen is also considering a bond offer and in addition may sell an asset-backed bond linked to geothermal resources, Ngure said. Kenya is Africa’s largest geothermal-power producer.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">“We are thinking about a year from now but we need to work on the numbers,” he said. “The size will be driven by the market and the value of the steam.”</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">The company yesterday announced profit surged to 5.25 billion shillings ($61.7 million) in the 12 months through June from 2.82 billion shillings a year earlier.</span><br />
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East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-65615700480221607772013-05-20T23:59:00.000-07:002013-05-20T23:59:54.323-07:00 Safaricom SACCO calling Kenyans in the Diaspora<br />
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THE Safaricom Investment Cooperative is developing a Kshs
1.0 billion shilling housing project in Mlolongo dubbed Blue Bells Gardens. Blue Bells Garden is the Cooperative’s first
housing project and the only one of its kind in Mlolongo.<i><o:p></o:p></i></div>
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The 300 unit project is being put up in partnership with the
Co-operative Bank and is expected to be fully completed in 2015. <o:p></o:p></div>
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The phase one of the two-phase project will build 160 units
while in the phase two, 140 units will be build. A three-bedroom flat will
retail at Kshs 6.6 million while a 2-bedroom unit will cost Kshs5.6 million. <o:p></o:p></div>
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Blue Bells Gardens is a top of the range residential
facility nestled along the busy Nairobi-Mombasa Road Highway and ICT center. It
will have a world class health care facility and a commercial center
with large open spaces for children’s play grounds. <o:p></o:p></div>
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Ms. Mackrine Abukah, the Chairperson of Safaricom Investment
SACCO announced that it is inviting non-safaricom staff to join the SACCO. To
join one needs to pay a subscription fee of Ksh 6 000 and a monthly
subscription of kshs 325.<o:p></o:p></div>
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She also announced that the SACCO is open for Kenyan in the
diaspora whom they are inviting to invest in the Mlolongo housing project
either as buyers or investors in the SACCO. The modalities for Diaspora membership
are being worked out, she said. Apart from the Mlolongo development, the SACCO
also owns plots in Kajiado, Nanyuki, Kisumu and Machakos on which she develop
houses for sale.</div>
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<o:p></o:p></div>
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At the end of last
year, the SACCO had a capital base of <b>Kshs.503.78million</b>
up from <b>Kshs.273.13million</b> in 2011.<o:p></o:p></div>
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The development is targeting middle to upper income earners
working in Nairobi and Machakos counties. She is targeting Kenyans in the
diaspora to help them invest in housing and help curb the runway housing
shortage in Kenya. Kenyans in the diaspora have been duped by dishonest people in
the past.<o:p></o:p></div>
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East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-91438736618698919082013-05-07T08:43:00.001-07:002013-05-07T08:43:57.086-07:00AfDB Launches US$1.26B Kenya – Ethiopia Electricity Highway<br />
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The African Development Bank today launched the
1,068-kilometre high-voltage electricity highway to be built between Kenya and
Ethiopia.<o:p></o:p></div>
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The project, which is expected to be completed in less than
five years, involves the construction of transmission lines of about 437 km in
Ethiopia and about 631 km in Kenya and associated AC/DC converter stations at
Wolayta-Sodo (Ethiopia) and Suswa (Kenya) substations with a transfer capacity
of up to 2,000 MW in either direction.<o:p></o:p></div>
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Speaking at the launch, organized to brief on the project’s
technical resources, African Development Bank’s Regional Director for East
Africa Resource Centre (EARC), Gabriel Negatu, reiterated the importance of the
project to the East Africa’s cross-border trading.<o:p></o:p></div>
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“The African Development Bank recognizes of each of the
country specific economic blueprints as well as the region’s economic
priorities. This project establishes power trade between Ethiopia and Kenya and
the wider East Africa region. It not only improves electricity access at
affordable prices and enhances cross-border trade, but also provides an
important opportunity to generate revenues for countries having excess power
generation capacity, as is the case for Ethiopia,” said Negatu.<o:p></o:p></div>
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He added: “The direct beneficiaries of the project are
households, businesses, and industries in communities located in Kenya, the
direct off-taker of the power. The interconnection with Ethiopia will ensure
access to reliable and affordable energy to around 870,000 households by 2018.”<o:p></o:p></div>
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AfDB played a leading role in the preparation of the project
by financing some of the feasibility studies required to making the project
bankable.<br />
<br />
The African Development Bank, the World Bank, the Governments of Ethiopia and
Kenya will finance the project. In addition the French Development Agency
expressed interest to finance the project.<br />
<br />
The financing for the project breaks down as follows: African Development Bank,
US $338 million; World Bank US $684 million; Government of Ethiopia, US $32
million; Government of Kenya, US $88 million; and the expected financing from
the French Development Agency, US $118 million.<br />
<br />
The African Development Bank’s financing will be used for the financing of the
total cost of the transmission line subcomponent and part of the cost of the
converter station subcomponent in Ethiopia; part of the cost of the
transmission line subcomponent in Kenya; the total cost of the consultancy
services for supervision and management for both Ethiopia and Kenya, as well as
part of the cost of capacity building component in Ethiopia and in Kenya.<br />
<br />
The World Bank’s financing will be used for the financing of the total cost of
the subcomponent converter stations in Kenya and total cost of transmission
system reinforcement in Kenya and the major part converter stations in Ethiopia
as well as part of the cost of the capacity building component in Ethiopia and
in Kenya.<br />
<br />
Financing from French Development Agency is expected to cover part of the
transmission line subcomponent for Kenya. This story was lifted from the Afdb website unediuted.Pleaase read<o:p></o:p></div>
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<a href="http://www.afdb.org/en/news-and-events/article/afdb-launches-us-1-26b-kenya-ethiopia-electricity-highway-11733/?ut">http://www.afdb.org/en/news-and-events/article/afdb-launches-us-1-26b-kenya-ethiopia-electricity-highway-11733/?ut</a><o:p></o:p></div>
East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-56208665357647509922013-01-31T03:49:00.002-08:002013-01-31T03:49:28.317-08:00IFC's foray into African capital markets<br />
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<o:p><span style="font-family: Trebuchet MS, sans-serif;">THE INTERNATIONAL </span></o:p><span style="font-family: 'Trebuchet MS', sans-serif;">Finance Corporation, the private sector
arm of the World Bank, has launched its foray into Africa’s capital markets. It
will begin by issuing a US$50 million equivalent bond in the Nigeria Securities
Exchange. Next in line will be Kenya which said to have issued the necessary
approvals.</span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">Kenya and Nigeria are among the 10 securities exchange
targeted for IFC’s <span lang="EN">Pan-African
Domestic Medium-Term Note Programme. Other countries targeted include Botswana,
Ghana, Kenya, Namibia, Rwanda, South Africa, Uganda, and Zambia.<o:p></o:p></span></span></div>
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<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;"> The programme will see IFC issue local
currency bonds in the targeted countries to support the local private sector
and also the capital market, says a statement from IFC. While the domestic
capital markets are excited about IFC’s foray, they are concerned at the small
amounts it is issuing. “US$50 million in the Nigeria market is not even a drop
in the ocean,” say analysts.<o:p></o:p></span></span></div>
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<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;"><br /></span></span></div>
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<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;"> It is not clear what the size of the Kenyan
issue will be. However, it could be in the same region as the Nigerian issue
US$50million. IFC’s entry into any market raises its profile among investors
and fund managers leading to more foreign activity in the local markets. IFC,
said a Kenyan Banker in whose bank IFC is an investor,” is a confidence
builder. If it invests in your stock, other investor follow suit.” </span></span></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;"><br /></span></span></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">Consequently, the markets are excited and are seeing even increased activity in
anticipation of IFC’s entry.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">Stock market
players in Kenya agree saying IFC’s entry into the market is a vote of
confidence in the market. Stock brokers
in Nairobi say IFC’s entry will raise NSE’s profile among skeptics in West.
Africa whose bond market is generally small is likely to witness a huge influx
as countries issue infrastructure bonds to finance their huge infrastructure programmes. </span></span></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: Trebuchet MS, sans-serif;">Kenya has already floated More Kshs 100
billion (US$1.2 billion) infrastructure bonds</span><o:p></o:p></span></div>
East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-13088252715001728352012-11-19T00:59:00.002-08:002012-11-19T02:50:15.262-08:00Ground breaking for Mombasa port this week. <br />
<span style="font-family: Trebuchet MS, sans-serif;">The Ground Breaking ceremony for the expansion of Mombasa Port on Thursday November 22nd 2012, we can report.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">The ceremony to be officiated 2012,by President Mwai Kibaki will launch the second of the Port’s two-phase upgrading project that began last year. The US$ 320 million project will turn the Mombasa port into a Mega port.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">The first phase of the development project included the dredging of the port to a depth of 15 Metres. It also widened the Likoni Channel from 250 Meters to more than 300 meters, while the turning basin was widened to 600 meters. It cost a US$62 million.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">The second phase involves construction of three berths with a straight-line quay of 900 meters, reclamation of 100 hectares of land, second container terminal with a capacity of one million TEUs, construction of a 5KM link road to Mombasa southern by-pass and a Railway line. At the end of the two-year- US$200 million project, the Mombasa Port will have a capacity of 1.25 Million TEUs. </span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">The Mombasa port, which is the hub of shipping business in east and central Africa, has come under intense pressure to expand in the recent past due to robust economic growth in the region and also changes in vessel sizes. </span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">Robust economic growth both in Kenya and among her landlocked neighbours such as Uganda, Rwanda, Burundi and South Sudan generated increased demand for imports and exports through the port.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">This growth in large vessels put pressure on major ports in Africa to invest in capacity expansion. The Mombasa Port was no exception. The expansion project that will be completed by the end of 2014 will ensure that Mombasa retains its positions as a major port in Africa. </span><br />
<span style="font-family: 'Trebuchet MS', sans-serif;"><span style="font-size: xx-small; font-style: italic;">For detail please go to </span></span><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">http://eaers.blogspot.com/2012/11/expansion-of-Mombasa-port-begins-in.html</span><br />
<span style="font-family: 'Trebuchet MS', sans-serif; font-size: xx-small;"><i><br /></i></span>East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-59706358718589779932012-11-01T04:27:00.003-07:002012-11-19T02:49:14.450-08:00Konza City's ground breaking this month<span style="font-family: Trebuchet MS, sans-serif;">The ground breaking ceremony for KonzaTecho city will take place before the end of this month, we can report.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">We have reliably learnt that the ceremony, which was slated for last Month was post phoned due to security Concerns and the President's busy Diary.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">"The President is keen on the project," said the source. The line Ministry, the Ministry of information is ready for the ceremony and is only waiting for signal from the president's Office.The President was due to lead the ground breaking ceremony.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"> Top Ministry of information officials met earlier this week to review its preparedness and all is set, said the source. They are now awaiting the date from OP to roll out. The US$7 billion Techno city is billed the silicon Savannah. Some investors are already rearing to go and were beginning to worry about the delay.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">For more details on the story Go to <a href="http://eaers.blogspot.com/2012/09/konza-techno-city-begins-in-october.html">http://eaers.blogspot.com/2012/09/konza-techno-city-begins-in-october.html</a></span>East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0tag:blogger.com,1999:blog-3953365265632890020.post-82209293771429436022012-10-21T23:09:00.001-07:002018-01-10T05:04:11.659-08:00Oh no! Not the World Bank again! <div class="MsoNormal">
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><img border="0" height="161" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgMPd8E9u8bHvzHpephOOMcCmzFwLx3xEH1O62CR6K0r0pAdKepBscI3pWlbwsZisD0-_YFzr5gMRGgmnk4Y7KYQtHc17qFab0D33NNO_NzGwY0C1ahPYEe8iiEjia6XjgzjisgxyHLQQI/s320/wind-power.jpg" style="margin-left: auto; margin-right: auto;" width="320" /></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><b><span style="font-family: "trebuchet ms" , sans-serif;">A windfarm: LWTP proposes to build a similar project</span></b></td></tr>
</tbody></table>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgMPd8E9u8bHvzHpephOOMcCmzFwLx3xEH1O62CR6K0r0pAdKepBscI3pWlbwsZisD0-_YFzr5gMRGgmnk4Y7KYQtHc17qFab0D33NNO_NzGwY0C1ahPYEe8iiEjia6XjgzjisgxyHLQQI/s1600/wind-power.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;">The World Bank has pulled out of Africa's largest wind power project, we
have reliably learned. The bank, according to reliable sources, says the
project is not viable and has therefore refused to offer guarantees sought by
financiers.<o:p></o:p></span></span></div>
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<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;"><br /></span></span></div>
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<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;">This is the third project in Kenya the World Bank has sabotaged in the last
six years citing feeble excuses. In 2010 its private sector lending arm- IFC
pulled of Southern by pass in Nairobi at the last minute citing the
"credibility of some of the contractors." In 2006 IFC also pulled out of the
concessioning of Kenya and Uganda Railways at the last-minute, also citing
"unfulfilled conditions" by Sheltham Railways. The concession is still
fighting for its life, six years on.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;"><br /></span></span></div>
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<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;">The World Bank is also said to be raising irrelevant issues on
the Kenya- Ethiopia Power connection deal-that could derail it.<o:p></o:p></span></span></div>
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<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;"> In the case of Lake Turkana wind
power project, The World Bank is says that the wind farm is too big for the national
power grid and huge amounts of electricity could go to waste. This, argue the
mandarins at the Bank, would deny LTWP revenues and hurting its ability to
repay the loans. <o:p></o:p></span></span></div>
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<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUmUtjDGlJvUzm-amI2FEtLzKDncOyLrC9vPp4u00RH9DNnUTV5jZQ_zTF7sx7IrmRkzUnyoJ0lCLJU_C2vMhyigweSRqnzJiRaLqO4UlNXCHvfzdDdpz97KxlTdxYksAgTKpdqk4Q7qY/s1600/Bujagali+1.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="215" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUmUtjDGlJvUzm-amI2FEtLzKDncOyLrC9vPp4u00RH9DNnUTV5jZQ_zTF7sx7IrmRkzUnyoJ0lCLJU_C2vMhyigweSRqnzJiRaLqO4UlNXCHvfzdDdpz97KxlTdxYksAgTKpdqk4Q7qY/s320/Bujagali+1.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><span style="font-family: "trebuchet ms" , sans-serif;"><b>Bujagali Hydropower: Was a victim of World Bank's<br />feeble Analysis</b></span></td></tr>
</tbody></table>
<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;">This is an argument that analysts find baffling. If the problem is the
capacity of the national grid to distribute all the power produced in the
country, the solution is to upgrade it not to try to kill a project, analysts
argue. </span></span></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;"><br /></span></span></div>
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<span style="font-family: "trebuchet ms" , sans-serif;"><span lang="EN"><o:p></o:p></span><span lang="EN">It is noteworthy that the bank was using the similar arguments against
Bujagali Hydro power in Uganda, and is using similar arguments to stall Karuma
power plant, also in Uganda. In the case of Bujagali, the the bank and its
cohorts were proved wrong. The plant produces 250MW which has doubled
electricity supply in Uganda, but sources indicate demand will exceed supply in
the next two years. <o:p></o:p></span></span></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;"><br /></span></span></div>
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<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;">The Bank wants to the capacity of Karuma dam reduced from 600-750MW to 400
-450 MW arguing that 700MW is excess capacity that cannot be sustained. Sound
familiar?<o:p></o:p></span></span></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;"><br /></span></span></div>
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<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;">In both cases, Uganda has demonstrated boldness and leadership in pursuing projects that
are critical to national well being. Bujagali was built despite objections.
Karuma dam also appears headed in the same direction.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;"><br /></span></span></div>
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<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;"> In Kenya, the southern by-pass in Nairobi, which was meant to be toll-road when IFC pulled out, has now been funded by
China and construction is on-going. It is a public road but going by Kenya's paradigm
shift, we shall not be surprised if it becomes a toll-road on completion.<o:p></o:p></span></span></div>
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<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;"><br /></span></span></div>
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<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;">In the case of LWTP, the government turned to the World Bank to offer sovereign guarantees after
the financiers ' reluctance to fund the project on the strength of its PPA with Kenya Power and Lighting company, the power distributor in Kenya. The Kenya government was reluctant to offer the sovereign guarantee for a private sector funded project. </span></span></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal">
<span style="font-family: "trebuchet ms" , sans-serif;"><span lang="EN"><o:p></o:p></span><span lang="EN">However, it seems, it will have to offer such guarantee. It has already been endorsed ans a flagship project by the Vision 2030 delivery secretariat. Vision 2030 is the long term development blue print for Kenya.</span></span></div>
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<br /></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;"> All is not lost however for the lead
financial arranger; AfDB has re-affirmed its commitment to finance the project.
"The African Bank is now looking at ways of getting other guarantors to
ensure the project does not delay further," local media reported.<o:p></o:p></span></span></div>
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<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;"><br /></span></span></div>
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<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;">The €582 million Lake Turkana wind project in Northern Kenya will produce
some 300MW of wind generated electricity, also another first in Africa. That
will be close to 40 per cent of the electricity currently generated in Kenya.
LWTP has a 21 year PPA with KPLC to sale electricity to it at less than 10 US
cents per unit, the cheapest in the country.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;"><br /></span></span></div>
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<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;">Lake Turkana wind farm will be located on a 40,000-acre farm in Loyangalani
in Marsabit County. It will comprise of 365 turbines each with a capacity of -
850Kwh; the associated overhead electric grid collection system and a high
voltage substation. <o:p></o:p></span></span></div>
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<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;"><br /></span></span></div>
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<span lang="EN"><span style="font-family: "trebuchet ms" , sans-serif;">Already a contract for the construction of 300KM of road in the project
area has been awarded.</span><o:p></o:p></span></div>
East Africa Economics Reporthttp://www.blogger.com/profile/06336638272766088431noreply@blogger.com0