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Tag: GreatLakesNews

  • WTO Advises Tanzania on Gas Wealth

    {{The outgoing head of the World Trade Organisation, Mr Pascal Lamy, has advised Tanzania to go for an efficient regulation system if it is to benefit fully from its newly-discovered offshore natural gas.}}

    Mr Lamy said many developing countries that have discovered oil and gas–and are also rich in natural resources–face regulation and management challenges.

    Mr Lamy, who retires at the end of August, called for transparency in the sector worth billions of Dollars.

    “The key is to ensure that the regulatory structure–including government oversight–is sufficiently developed to promote the efficient, transparent and equitable awarding of extraction rights,” he added.

    Making the most of these resources will call for transparent and equitable ways of collecting royalties. Tanzania has yet to benefit meaningfully from its mining sector–mainly because it does not have the right regulation and supervisory skills. And this despite world class gold mines and other minerals.

    “Transfer of technology to local interests is vitally important but this will require a foundation of know-how among local engineers and workers,” Mr Lamy went on.“To develop this sort of institutional infrastructure will take time but it is an investment that will go a long way to ensure that gains from this wealth are invested wisely.”

    Initial estimates show that Tanzania has 41.7 trillion cubic feet (tcf) of natural gas reserves. It is expected that, along with Mozambique, Tanzania will be the world’s third-largest exporter of natural gas in the near future. This implies that the East African region is hot on the heels of Qatar and Indonesia, the first and second largest producers of liquid natural gas in the world respectively.

    According to Energy and Minerals minister Sospeter Muhongo, Tanzania’s reserves will reach 100 trillion cubic feet in the next two years. The gas finds stand at 53 trillion cubic, with an estimated value of far over $430 billion (about Sh688 trillion), which is nearly 40 times this year’s national budget.

    Leading the gas findings is British Gas Group, which has made eight consecutive offshore natural gas discoveries, two successful appraisal wells and one successful field test. Norway’s Statoil Statoil and its partner ExxonMobil have made their third high-impact large offshore gas discovery in a year. Exploration companies plan to drill 17 new wells in 2013/14. “You have almost an embarrassment of riches in Mozambique and Tanzania, in terms of the volumes of gas being discovered,” says Mr Philip Wolfe of UBS financial services, which advises Thailand’s PTT Exploration and Production, now a major player in Mozambique.

    On the high economic growth and high poverty mismatch in resource-rich countries like Tanzania, Mr Lamy noted: “As Donald Kaberuka, the president of the African Development Bank, said recently, African governments still need to translate growth into greater social inclusion. But this is not exclusive of Africa. It is a challenge faced by many countries in the world today, developed and developing.”

    Education is the key to it all, he said. “If you want to ensure the development of your economy and the most equitable allocation of national income, education must be available to the majority of the citizens. Beyond this, you must have a sound system of revenue collection so that wealth can be redistributed and the gap between rich and poor narrowed.”

    NMG

  • Mass Slaughter of Civilians, Children in DR Congo: UN

    {{Armed groups in DR Congo’s war-torn east province slaughtered more than 200 people including scores of children between April and September, hacking some to death and burning others alive, the UN said Wednesday.}}

    “At least 264 civilians, including 83 children, were arbitrarily executed by armed groups in more than 75 attacks on villages between April and September this year,” the office of the UN’s High Commissioner for Human Rights said as it published a report into abuses in the Democratic Republic of Congo’s resource-rich east.

    Investigators focusing on the southern town of Masisi in North Kivu province uncovered evidence of victims being hacked to death with machetes.

    Others were burnt alive in their homes, investigators found, blaming the majority of the killings on two armed groups, Raia Mutomboki and their allies the Mayi Mayi.

    Raia Mutomboki is a homeland defence militia whose agenda is to ethnically cleanse the region, forcing all Kinyarwanda speakers out of DR Congo. But it has also seized the villagers it purports to be protecting, using them as porters.

    Fighters from an ethnic Hutu militia called Nyatura were also responsible for killings and other human rights abuses, the UN said, along with the Rwandan Hutu group the Democratic Forces for the Liberation of Rwanda (FDLR).

    Following publication of the report — the result of six missions and more than 160 interviews with victims and witnesses — UN High Commissioner for Human Rights Navi Pillay condemned the killings as “the most serious (human rights violations) we have seen in recent times in the DRC.”

    The number of killings could be considerably higher, the UN agency said, lamenting that security concerns had prevented investigators from probing other reported violations.

  • Juba says Khartoum wants to buy 4,500 barrels of oil for Kosti power plant

    {{South Sudan’s cabinet has approved the outcome of the recent mission of the country’s Vice President, Riek Machar, to Khartoum to mend the souring relations between the two neighbouring countries, saying the mission was very successful and revealed that Sudan requested an an oil purchase for power generation purposes.}}

    On Sunday 30 June, Machar led a high level delegation consisting of five ministers and chairperson of an independent commission to engage his Sudanese counter-part, first vice-president Ali Osman Taha, over the recent threats by President Al-Bashir giving an ultimatum of 60 days to close the oil pipeline carrying South Sudan’s oil through his country’s territory and sea port to the international markets.

    Bashir said he made the decision accusing the South Sudanese ruling party of supporting and harbouring its former comrades, the SPLA-N, who fight Khartoum in the two areas of South Kordofan and Blue Nile.

    In Khartoum, Machar met with president Omer Hassan Al-Bashir with who he discussed the claims of the support to rebels in the two countries.

    Following the recent talks, Khartoum backed down from its threats of oil shut down and suspension of the cooperation agreements, and the two parties recommitted themselves to the full implementation of the cooperation agreements.

    Barnaba Marial Benjamin, South Sudan’s minister of information and official spokesman, told the press on Friday that the cabinet had endorsed the report presented by the vice-president, Machar, putting the two countries back on the right track of peaceful dialogue rather than threats.

    Marial said the oil will now continue to flow uninterrupted and that Khartoum also has requested to further buy 4,500 barrels per day from the South Sudan’s crude oil passing through the pipeline in order to operate its power station in Kosti.

    A Memorandum of Understanding (MoU) has already been signed in Khartoum between the two petroleum ministers, he said, adding that the details for the terms of the agreement will be worked out by the two ministers soon in Juba.

    However, Khartoum is still insisting that South Sudan has been openly supporting the rebels of SPLA-N or under the umbrella of the Sudan Revolutionary Front (SRF) including those of Darfur to topple the regime in Khartoum.

    Juba has been denying the allegations and counter-accused Khartoum of supporting its rebels including David Yau Yau who is battling South Sudan army in Jonglei state.

    This week Khartoum bombed a border area – Jau – of Unity state claiming that rebels from South Kordofan have been organizing themselves in the area to launch an offensive against the government.

    In a joint statement issued in Khartoum by the two vice-presidents, Machar and Taha, the two countries have committed themselves to support peace initiatives in each other’s countries.

    South Sudan officials, while acknowledging that fighters in the two areas of South Kordofan and Blue Nile were their former comrades in the struggle, say they have no interest to support a war in Sudan but would be ready to use their influence as “honest broker” for a peaceful political settlement to the conflict.

    ST

  • KQ Plane Diverted to Athens After Fire ‘Warning’

    {{Kenya Airways (KQ) says the diversion of one of its flight to Nairobi from Amsterdam on Saturday morning was due to a fire warning indication in one of the cargo holds.}}

    The airline’s CEO Titus Naikuni said the diverted flight, a Boeing 777 200ER landed safely in Athens and all the 301 passengers on board are safe.

    He says the functional tests and profiling of the cargo to confirm the source of the fire warning, required a rescheduling of the flight.

    “As is the normal standard procedure in the industry, the fire suppression system was activated and the aircraft diverted to the nearest airport for further assessment,” Naikuni said in a statement.

    He said that all tests that were later conducted on the fire detection system and that the cargo hold is now functioning properly.

    “The flight landed safely in Athens and all passengers and crew were taken to a hotel in Athens,” he said.

    The flight is now scheduled to depart Athens today at 1700 hours Kenya time, arriving in Nairobi at 2255 hours.

    {agencies}

  • Kenya, Somalia ties Shacky over Jubaland Row

    Officials of Jubaland State say they have, cleared Kismayu of Mogadishu-backed militia.

    The army chief confirmed this just days after the military and militia clash left dozens dead.

    Although Kenya Defence Forces ( KDF) and other Amisom troops fighting Al Shabaab entered Kismayu on October 1, last year, the city remained dangerous.

    Warlords maintained control of several pockets in the city; militia killed civilians and erected illegal checkpoints.

    Now, the Jubaland administration says it has fully secured the port city. This follows the routing of two warlords – Barre Aadan Shire (Hiiraale) and Iftiin Xasan (Baasto) – in a three-day gun battle that ended last Sunday.

    “Kismayu… is free of hostile gunmen and warlords,” General Ismail Sahardid, the army chief, told this reporter on the telephone from Kismayu. “It is absolutely safe for the first time since we arrived here.”

    Differences

    However, this development has kicked up a diplomatic storm between Nairobi and Mogadishu, over what to do with the southern border regions.

    Somalia last weekend called on KDF to vacate Kismayu over claims they were supporting one of the warring parties.

    KDF who are serving under the Amisom, denied the allegations. This has not stopped agitation by Hiiraale and others.

    “We will return to Kismayu,” he told radio stations in Mogadishu. “The war is between us and Kenya.”

    He sensationally talked of “returning the sovereignty” of Somalia. Both Hiiraale and Abbas Ibrahim Gurey, a commander in the Somali National Forces, whose brief arrest by the KDF irked Mogadishu, said they would fight Kenyan forces, with Hiiraale “swearing to God” that his men will defeat Kenya and kill those captured “on the spot”.

    NMG

  • IMF Urges Ethiopia to Open Economy

    {{The International Monetary Fund has urged the Ethiopian government to allow more private investment in areas of the economy that it normally controls as a monopoly.}}

    A visiting IMF mission has for the last two weeks been meeting with several top government officials to discuss the country’s economy.

    Addis Ababa maintains tight control of companies in key sectors such as telecommunications and financial services.

    “It would be important to foster competition in areas where public enterprises enjoy monopolies, and gradually withdrawing from sectors where they crowd out the private sector,” Mr S. Kal Wajid, the head of the IMF mission, said in a statement.

    “Ethiopia’s public sector led development strategy has delivered robust growth and rising living standards but is now at crossroads. To sustain growth and employment creation, there is a need to carefully consider the balance between public and private sectors in the economy,” Mr Wajid said.

    “A vibrant private sector is essential to attain middle income status.”

    Last week, private sector representatives raised the issue of being “crowded” out by state enterprises during a business forum with the country’s prime minister, Hailemariam Desalegn.

    NMG

  • Tanzania Arrests Briton Wanted by UK on terror Charges

    {{Tanzania has arrested a British man suspected of involvement in unspecified “terrorism activities” in Britain, police in the east African country said.}}

    Iqbal Ahsan Ali was arrested in Tanzania’s southern Mbeya region after being found in possession of both British and Tanzanian passports, which is a crime in Tanzania as it forbids dual citizenship, police said.

    “We have been in contact with our counterparts in the UK and they have confirmed that the suspect is wanted in their country for involvement in terrorism activities,” Robert Manumba, director of criminal investigations, said in a statement on Friday.

    Manumba did not give further details of what Ali was sought for in Britain. British diplomats in Tanzania made no immediate comment.

    Several people have been arrested on terrorism charges in Tanzania since bombings killed at least eight people in May and June.

    Authorities in Tanzania, one of the region’s most stable countries, are concerned at the growth of an Islamist movement accused of indirect links to Somalia’s al Shabaab rebels.

    Police said they had verified Ali’s British passport as being authentic. They said the Tanzanian passport he was carrying was a fake.

    {{wirestory}}

  • Ugandan Container Seized with Ivory

    {{A joint team of the Uganda Wildlife Authority (UWA) the local police, International Police and Kenya Wildlife Service (KWS) are investing a company, Bajje Investments Uganda Ltd that is said to have been exporting a container of ivory to Malaysia.}}

    The consignment, reportedly originating from Uganda was intercepted in Mombasa while waiting to be shipped for Port Klanga, West Port Ehsan in Malaysia.

    Bajje Investments consignment is said to have used Giesenya Freight Logistics Ltd of Nairobi as the clearing agent.

    Dr Andrew Seguya, the UWA executive director, told the Daily Monitor in a telephone conversation yesterday that the team is investigating individuals connected to the container, including the exporting company and clearing agent before drawing any conclusion.

    According to a statement posted on the KWS website, the ivory, which was stashed in 69 bundles of several pieces, had been disguised as sun dried fish maws, which has a pungent smell intended to throw off sniffer dogs.

    Some bags had polished pieces of ivory while others had raw ivory. Export documents show that the consignment had entered Kenya from Uganda on June 12.

    The container arrived in Mombasa about two weeks ago and was parked at a petrol station in Jomvu in Mombasa until its entry into the port.

    NMG

  • EADB Receives Euros 25M for SME Financing

    {{The East African Development Bank (EADB) has landed a €25 million line of credit deal with the European Investment Bank (EIB).}}

    Granted under the Cotonou Investment Facility Resources Protocol, the line of credit will be used to part-finance projects implemented by private sector enterprises, and/or commercially run public-owned entities in the sectors of agriculture, agro-processing, fishing, manufacturing, construction, tourism and transport sectors, or education and healthcare services located in Kenya, Uganda, Tanzania and Rwanda.

    EADB Director General Vivienne Yeda said the facility also has a Technical Assistance component to support the institutional strengthening of the Bank’s risk management and internal control framework.

    Ms Yeda called on member states to prioritise regional integration noting thatthe region stood to gain much by opening up its borders.

    “There is no better way of facilitating the private sector to do what they do best than to open up our economies, enabling them to produce efficiently and access markets in a timely fashion,” said Ms Yeda.

    EIB Vice President Pim van Ballekom said the financing will enable entrepreneurs and established firms to invest in new markets and can be expected to contribute to new jobs

    He observed that the money will be used for co-financing debt and leasing transactions for start-up, expansion, diversification and modernisation projects undertaken by private sector SMEs in Kenya, Uganda, Tanzania and Rwanda.

    “Access by small and medium sized businesses to long-term finance is essential for creating new jobs and economic growth,” said Mr. van Ballekom.

    Ms Yeda asked the private sector to take advantage of the favourable business environment to innovate, diversify and discover new markets.

    “I am pleased that the facility we are signing with EIB today will enable private sector enterprises, particularly SMEs that are innovative and hungry for expansion to access affordable credit,” said Ms Yeda.

    The new EIB-backed lending programme is the first joint engagement to improve access to investment loans by small and medium sized companies and represents the start of a new era of cooperation between the European Investment Bank and the East African Community’s financial institution.

    The East African Development Bank (EADB) provides a broad range of financial services in its Member States of Kenya, Uganda, Tanzania and Rwanda with an overriding objective of strengthening socio-economic development and regional integration.

    EADB is owned by the four Member States of Kenya, Uganda, Tanzania and Rwanda. Other shareholders include the African Development Bank (AfDB), the Netherlands Development Finance Company (FMO), German Investment and Development Company (DEG), SBIC-Africa Holdings, Commercial Bank of Africa, Nairobi, Nordea Bank of Sweden, Standard Chartered Bank, London and Barclays Bank Plc., London.

    NMG

  • Tanzania Invites FBI to Boost Probe into Arusha Bomb Strikes

    {{Tanzanian police have invited detectives from the US and Kenya to boost investigations into recent grenade attacks in Arusha.}}

    Since the Soweto blast, on June 15, no major breakthrough in the investigation has been reported, even as pressure from the public piled against the security agencies to show results of their act.

    Arusha Regional Police Commander Lebaratus Sabas confirmed Wednesday that members of the Federal Bureau of Investigations (FBI) were on the ground to help unravel the mysteries surrounding the explosions.

    “Police are continuing with the Soweto grounds grenade attack, but we have invited the FBI and Kenyan police to also work closely with us as we try to piece information together,” Mr Sabas told a press briefing in the city.

    But the opposition Chadema Secretary-General Willibrod Slaa scoffed at the move and said it would not yield any useful results.

    “There is nothing new as it is not the first time that FBI have been mentioned in many other internal investigations,” said Dr Slaa.

    He said the opposition party stood by its earlier stance that the police were suspects and that they were still hoping an independent judicial inquest would be formed to investigate the Arusha bomb blast.

    {NMG}