Upload
others
View
4
Download
0
Embed Size (px)
Citation preview
THE EAST AFRICAN DIGEST
2015, Volume 1 & 2
Construction workers go about their work in front of a mural advertising dental services in Somalia’s capital, Mogadishu
REUTERS
2
A monthly summary of business and
political developments in East Africa.
We are a leading full service PR consultancy
with a global network of 88 offices in 49
countries and an extensive list of associates’
worldwide offering unrivaled expertise in
public opinion research, reputational
benchmarking, digital and social media
strategies, crisis communications, financial
communications, public affairs and more.
3www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_kewww.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke
East African Community Bloc
Kenya business
Kenya politics
Uganda business
Uganda politics
Tanzania business
Tanzania politics
Rwanda business
Rwanda politics
Burundi business
Burundi politics
Content
4
5
6
7
8
9
10
11
12
13
14
www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke4
East African Community Bloc• Consumers across Eat Africa will start paying more
for basic commodities after partner states agreed
to close a window that allowed for duty free imports
during shortages.
• Talks on the admission of South Sudan into the
East African Community are set to take center stage
at the EAC Heads of State Summit scheduled for
February 20, 2015. Also on top of the agenda is
the verification of an application by the war torn
Federal Republic of Somalia to join the five member
regional block.
• The MasterCard Foundation has put up a $50
million fund for financial service providers in East
Africa to finance farmers.
• Regional central banks have jointly agreed to hold
reserves in local currencies in a bid to reduce reli-
ance on the volatile dollar conversion rate, ease
pressure on local currencies and promote intra-
regional trade.
• Metropol Credit Reference Bureau Ltd is currently
carrying out feasibility studies on the Ugandan,
Tanzanian and Rwandan markets with plans to set
up subsidiaries before the end of the year.- The East
African.
• The East African Community Council of Ministers
is set to introduce the EAC Competition (Amend-
ment) Bill 2015 to curb the counterfeit menace amid
growing complaints by manufacturers and traders
affected by counterfeits.
• East African countries are reviewing their taxation
laws in a bid to reduce tax exemptions that have
seen their economies lose out on revenue. Current-
ly Tanzania and Rwanda have moved to effect new
VAT Bills that deal with tax exemptions.
• Uganda, Tanzania and Burundi are yet to secure in-
ternal approvals for the Double Taxation Agreement
(DTA) to operate in East Africa, five years after the
deal was struck leaving countries with cross border
investments paying tax on their invoices.
• The East African securities regulatory authorities
have set June 2015 as the deadline for harmoniza-
tion of market laws in Kenya, Uganda, Tanzania,
Rwanda and Burundi.
• Kenyan exporters of fresh produce to the EU are
The East African Legislative Assembly has adopted its new Rules of Procedure that are expected to take effect at the 5th Meeting of the 3rd session in March.
5www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke
demanding $10.7 million in compensation from the
government for losses incurred through taxes im-
posed on produce destined for the EU over a period
of three months beginning October 2014.
• According to the latest data from the Communica-
tion Authority of Kenya, there has been an increase
in mobile phone traffic of 16.9 % to 19.1 million
minutes, up from 16.3 million minutes posted dur-
ing the last quarter. The increase in telecommunica-
tions has been attributed to the One Network Area
agreement.
• The Kenya National Chamber of Commerce and
Industry will receive an $85,000 grant from Trade-
Mark East Africa to digitize the process of business
certification.
• Japan has advanced Kenya a $269 million loan to
fund the second phase of the Mombasa port expan-
sion. The money to be given through the Japan
International Corporation, is earmarked for the
construction of a container terminal of the west of
Kipevu land to create an additional three berths.
• EgyptAir has announced that it will resume direct
flights to Kenya as it seeks to deepen its business
ties with East Africa. The resumption date will be set
after negotiations.
• The African Digital Network (AND), a consortium of
Kenya’s three leading media houses, Nation Media
Group, Royal Media Services and the Standard
group, is planning to team up with a telecoms
company to offer internet services through set top
boxes.
• The Standard Gauge Railway (SGR) scheduled for
completion in 2017 could fall behind schedule
after a dispute over VAT erupted between major
suppliers to the Chinese contractors and the Kenya
Revenue Authority.
• A survey by the Ministry of East African Community
Affairs shows that the volume of Kenya’s exports to
the EAC has declined sharply with the major
Loans from domestic banks to Kenyan state corporations will not be guaranteed by the government. A new rule introduced by the
National Treasury to curb excessive borrowing also requires government ministries, state agencies and corporations to ensure their
cash flow requirements are handled through a single Treasury account..
BusinessKenya
www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke6
challenge being unfair competition from Chinese
traders and the country’s value added tax system
that has become an impediment to export business.
• Kenya is tipped to be among seven economies that
will replace the BRICS as new frontiers for long term
investment.
• According to corporate finance advisory firm Bur-
bidge Capital, Kenya and Tanzania accounted for
over 80 percent of the total deals concluded in the
natural resources sector last year.
• Kenya has agreed to acquire a 2.5 percent stake in
the planned Uganda oil refinery for an estimated
Kshs 5.6 billion.
• Panalpina one of the world’s largest freight and
logistics companies has opened its regional office in
Nairobi to serve clients in the oil and gas industries
in East Africa.
• The Central Depository and Settlement Corpora-
tion (CDSC) is set to introduce same day transaction
in the equities market by end of September, likely
pushing up the traded volumes.
• According to data from Central Bank of Kenya
shows mobile payments grew 24.8 percent to total
Kshs 2.1 trillion as at the end of November, exceed-
ing the Kshs 1.9 trillion handled in the full year
2013.
• Old Mutual raised its stake in U.A.P to 60.66% fol-
lowing an agreement to buy 37.33% stake held by
three private equity firms, at Kshs 180 per share
making U.A.P the second most valued insurer at the
Nairobi bourse.
• Centum investment got the greenlight to sign a $1.8
billion contract with the government to construct
a 960 megawatt coal power plant in Lamu. This
follows the dismissal of a petition filed by one of the
losing bidders in the tendering process.
• American aviation authorities will in March rule
whether Kenya can start direct flights to the US. Ac-
cording to Transport Secretary Michael Kamau said
the Federal Aviation will carry out the final evalua-
tion of the Jommo Kenyatta International Airport.
• Gulf Air has applied to leave the central billing plat-
form used by airlines and travel agents operating in
Kenya marking the last formality for the airline’s exit
following its November 2013 announcement.
• Kenya is likely to host the Tokyo International Con-
ference on African Development Summit in 2016,
the first ever in Africa, after Ethiopia, which had
earlier shown an interest, withdrew its bid.
• According to the Central Bank of Kenya Credit Of-
ficer Survey Report for 2014, Kenya Uganda and
Tanzania recorded a rise in their non-performing
loans last year from $872 million in 2013 to $1.12
billion an increase of 30.6 per cent .
BusinessKenya
7www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke
BusinessKenya• Manufacturers and traders in Kenya are set to
receive the first tranche of a total $206.3 million in
VAT refunds dating back to 2013 as the Treasury
finally verified the claims.
• The Kenyan government has allocated close to Kshs
7 billion to streamline supplies to the standard
gauge railway line project after major suppliers
were forced to pay VAT on their merchandise in ac-
cordance with the country’s tax laws.
• The Kenya Revenue Authority has approved the
merger of Kenya’s domestic taxes into a single
department as part of a wider reform programme
aimed at supporting increased revenue collection.
• According to a Bloomberg Survey of 57 countries,
Kenya has been ranked third globally whose
economy is projected to register the fastest growth
this year, placing the country ahead of other emerg-
ing markets in Africa.
• John Tanui, a former deputy CEO of Huawei’s Ke-
nya’s operations, has been appointed the first chief
executive officer of the government backed technol-
ogy city, Konza. John Tanui takes over the position
from Catherine Adeya, who held the position in
acting capacity.
• Kenyan firms stand to benefit from a Kshs 16.6 bil-
lion PTA Bank deal with European Investment Bank
that could see the business secure foreign currency
loans up to 15 years.
• Treasury secretary Henry Rotich has shifted the bur-
den of paying and accounting for capital gains tax to
investors at the Nairobi Securities Exchange ending
the fight with stockbrokers that nearly paralysed
trading at NSE.
• Former director-general of Vision 2030 Mugo Kibati
has been appointed the new chief executive of Pan
Africa Insurance Holdings marking his return to the
corporate world.
• Lake Turkana Wind Power project has won the Afri-
can Renewables Deal of the Year after it successfully
structured Kshs 70 billion financing. The project
feted by IJ Global Awards draws funding from more
than 10 European and African development finance
institutions, two commercial banks and two hedging
banks.
• Mastermind Tobacco’s electrical engineering
subsidiary, NGM Ltd and advertising firm Magnate
Ventures have signed lucrative tenders to construct
36 Kenya Power substations across the country at a
cost of Kshs 10.45 billion.
• Kenya’s installed capacity now stands at 579 MW af-
ter the injection of an additional 280 MW produced
in Olkaria to the national grid. This has lifted Kenya’s
global ranking as the eighth largest producer of
geothermal energy.
www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke8
BusinessKenya
• Parliament has passed a bill that could compel the Central Bank of Kenya to lower the minimum investable amounts in government securities, if President Uhuru Kenyatta
signs it into law. The Central Bank of Kenya (Amendment) Bill 2014 by MP Kabando wa Kabando seeks “lower minimum investment denominations in” in T-bills and bonds.
• Britam under Britam Asset Managers (BAM) has contracted Equity and Family Bank to sell its pension scheme to small and medium firms, the first such move in the financial
sector.
• Safaricom has revealed plans to introduce M-Pesa payment cards that will be used for settling government services and taxes. The M-Pesa debit cards and point of sale ter-
minals will enable customers to pay for government services, which the government has committed to shift online in a bid to curb corruption and ease transaction at public
offices.
9www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke
PoliticsKenya
• Kenya will establish a multi-agency committee to
monitor and oversee the implementation of the
international treaties it signs. The committee will
also be responsible for reviewing all conventions,
treaties and agreements that have been signed
since independence and advise the government on
the ones to maintain and those to drop.
• Kenyan diplomats at the Africa Union Summit in Ad-
dis Ababa failed to persuade other countries to fast
track plans for an African court to deal with cases
currently falling under the International Criminal
Court.
• The quorum hitch that has crippled business at the
CDF Board has been resolved, ending the long wait
by constituencies that are yet to receive develop-
ment cash since July last year.
• The Commission on the implementation of the Con-
stitution has asked the High Court to pay attention
to the reason being offered by the state as grounds
for amending the security laws.
• Commission for the implementation of the Constitu-
tion Chairman, Charles Nyachae has asked the anti-
corruption agency to start disciplinary proceedings
against leaders who have been involved in unruly
behavior in recent times.
• The defence team of Deputy William Ruto sought
to illustrate that the ICC investigations were full of
political undertones, following revelations that all
witnesses were from PNU.
• Former Industrial Court judges who declined to
re-apply for their jobs before the Judicial Service
Commission (JSC) following the promulgation of the
Constitution in 2010 have failed to get their jobs
back.
• A section of Jubilee leaders made a rare appeal to
Opposition leader Raila Odinga to come to the aid
of Deputy President William Ruto in the case he is
facing at the International Criminal Court.
• The government synergy suffered a major blow in
its attempt to enforce tough security laws after the
Court of Appeal refused to reinstate the suspended
clauses.
www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke10
BusinessUganda
• Uganda has applied for a $100 million loan from the
International Development Association to be used
to fund, among other things, the interconnection of
isolated systems and upgrading of existing transmis-
sion infrastructure.
• Copper mining at Uganda’s Kilembe mines will
resume later this year after a Chinese concessionaire
completes its rehabilitation.
• Vodafone Group that entered into a non-equity Part-
ner Market agreement with Afrimax Group to launch
Vodafone Uganda and serve mobile customers in
the Ugandan market with high quality voice and data
communications, has launched voice and 4G LTE
high-speed data services.
• The Dutch government through its foreign affairs
ministry announced a US$1.2mn (approx. Ush3.4bn)
support to 30 Business Process Outsourcing compa-
nies of Uganda under the Netherlands Trust Fund III.
• Civil Aviation Authority (CAA) has unveiled a 20-year
plan that will create four more international airports,
three regional and six local airports in addition to
expanding the Entebbe International Airport.
• Uganda Revenue Authority has reported a surplus
of Ush24.26 billion (about $8 million) after it col-
lected Ush4, 568.44 billion surpassing their target of
Ushs4, 544.17 billion. However this excludes non-tax
revenue and refunds for the period of July-December
2014.
• The National Social Security Fund recorded a 23 %
profit of Ushs 202 billion up from SHS 156bn during
the same period the previous financial year.
• Online money transfer service WorldRemit and tele-
coms operator MTN have signed a global partnership
that will enable WorldRemit customers to send remit-
tances instantly to MTN’s Mobile Money customers.
• The Electricity Regulatory Authority (ERA) has ap-
proved a three per cent increment in electricity
prices, which would see domestic consumers pay an
additional SHS13.5 this financial year.
• According to reports by Bank of Uganda remittances
from Ugandans living abroad fell from $930 million
in 2013 to $850 million in 2014 representing a 8.4
percent drop.
• ALTX Uganda is set to unveil new derivatives instru-
ments nearly 12 months after the firm secured a
license from Uganda’s Capital Markets Authority to
operate a derivatives market.
• A decline in aid dependence and improved tax collec-
tions has helped improve Uganda’s credit rating from
“B” to “B+”, enabling it to access lending at favorable
terms in international financial markets.
• Uganda’s insurance regulator is proposing reforms
to the sector’s laws to improve compliance and com-
pensation for accident victims under the motor third
11www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke
BusinessUganda
party insurance (MTPI) scheme.
• Locally owned service providers in Uganda’s oil and
gas sectors are opting for joint ventures with interna-
tional companies in preparation for the production
phase, which is capital intensive- The East African
• Russian-led consortium, RT Global Resources, a sub-
sidiary of Russian state corporation- Rostec has been
selected to build Uganda’s first oil refinery plant in
preparation for commercial drilling of crude.
• Power generation at the 183MW Isimba hydro power
plant in Kayunga and Kamuli districts will start in
2016, with 16 per cent of the work currently com-
pleted.
• According to a study, titled “Decentralized payroll
management in Uganda”, the Ugandan Government
saved Ushs 100 billion in workers’ salaries in the first
quarter of this financial year (2014/15) after it decen-
tralized the payroll.
• Uganda will extend its Electronic Cargo Tracking
System (ECTS) into Kenyan as part of strategy to curb
theft and diversion of goods destined for its market
through the port of Mombasa.
• Vodafone Uganda has commercially launched
voice and 4G LTE high-speed data services. The 4G
high-speed data services will initially be available in
Kampala and Entebbe, with plans to rapidly expand
to other cities soon.
• Cross listed Ugandan power distributor Umeme has
filled board positions left vacant on exit of two direc-
tors last November. Piet Faling and Ivan Kyayonka
have been appointed non-executive directors to re-
place Younes Maamar and Ian Francis representing
Actis who resigned last November following a major
change in ownership structure.
• The Uganda Chamber of Mines and Petroleum, an
association of private players involved in the extrac-
tives industry, wants government to expedite the
insurance of production licenses to two oil compa-
nies Total E&P and Tullow Plc, and the scrapping of
taxation on exploration projects.
www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke12
BusinessUganda• According to reports by Bank of Uganda remittances
from Ugandans living abroad fell from $930 million
in 2013 to $850 million in 2014 representing a 8.4
percent drop.
• ALTX Uganda is set to unveil new derivatives instru-
ments nearly 12 months after the firm secured a
license from Uganda’s Capital Markets Authority to
operate a derivatives market.
• A decline in aid dependence and improved tax collec-
tions has helped improve Uganda’s credit rating from
“B” to “B+”, enabling it to access lending at favorable
terms in international financial markets.
• Uganda’s insurance regulator is proposing reforms
to the sector’s laws to improve compliance and com-
pensation for accident victims under the motor third
party insurance (MTPI) scheme.
• Locally owned service providers in Uganda’s oil and
gas sectors are opting for joint ventures with interna-
tional companies in preparation for the production
phase, which is capital intensive- The East African
• Russian-led consortium, RT Global Resources, a sub-
sidiary of Russian state corporation- Rostec has been
selected to build Uganda’s first oil refinery plant in
preparation for commercial drilling of crude.
• Power generation at the 183MW Isimba hydro power
plant in Kayunga and Kamuli districts will start in
2016, with 16 per cent of the work currently com-
pleted.
• According to a study, titled “Decentralized payroll
management in Uganda”, the Ugandan Government
saved Ushs 100 billion in workers’ salaries in the first
quarter of this financial year (2014/15) after it decen-
tralized the payroll.
• Uganda will extend its Electronic Cargo Tracking
System (ECTS) into Kenyan as part of strategy to curb
theft and diversion of goods destined for its market
through the port of Mombasa.
• Vodafone Uganda has commercially launched
voice and 4G LTE high-speed data services. The 4G
high-speed data services will initially be available in
Kampala and Entebbe, with plans to rapidly expand
to other cities soon.
• Cross listed Ugandan power distributor Umeme has
filled board positions left vacant on exit of two direc-
tors last November. Piet Faling and Ivan Kyayonka
have been appointed non-executive directors to re-
place Younes Maamar and Ian Francis representing
Actis who resigned last November following a major
change in ownership structure.
• The Uganda Chamber of Mines and Petroleum, an
association of private players involved in the extrac-
tives industry, wants government to expedite the
insurance of production licenses to two oil compa-
nies Total E&P and Tullow Plc, and the scrapping of
13www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke
Politics
Uganda
taxation on exploration projects.
• Ms Maureen Kyalya Waluube, the outspoken presi-
dential advisor on poverty alleviation in Busoga, has
admitted that she regrets dropping her bid for a par-
liamentary seat in exchange for a State House job.
• A Chief magistrate’s court has ordered the Electoral
Commission to reveal the source of money and
names of funders of the ruling NRM. The order was
issued by Timothy Lumunye at Nakawa on October
31, 2014 but six months down the road the EC has
not complied.
• Uganda Revenue Authority (URA) has launched the
E-litigation system (e-Lit) to improve the effectiveness
of their legal system in handling internal cases.
• The National Resistance Movement leadership in
Bukomansimbi district was locked in wrangles over
allegations of exaggerating its popularity. It was
alleged that in a bid to impress President Museveni,
local leaders showed him avowed NRM supporters
as people who had crossed from the opposition.
• DP national chairman Mohammed Baswari Kezaala
has urged unhappy members to complain through
the party structure, instead of creating divisive fac-
tions. The Norbert Mao administration is at logger-
heads with DP politicians from Buganda, who have
recently organized rallies in a bid to strengthen the
party.
• East African Court of Justice’s (EACJ) First Instance
Division has heard a case filed by an applicant from
Uganda, Mr Godfrey Magezi against the Attorney
General (AG) of the Republic of Uganda, the Respon-
dent, accusing the country’s government of resourc-
es plunder.
• Tensions between former Prime Minister Amama
Mbabazi and the ruling NRM have reignited in the
Supreme Court, where the expelled party MPs are
fighting to retain their parliamentary seats. The NRM
has already fired two of its lawyers deemed to be
Mbabazi-leaning as it prepares to fight the expelled
MPs in the Supreme Court.
www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke14
BusinessTanzania• Tanzania is in talks with six multinationals companies
over plans for a joint venture to revive General Tyre
East Africa, the giant tyre manufacturing plant in
Arusha.
• Tanzania and Zambia are to inject $25 million into
the cash strapped 1,860km joint railway line that
runs from Dar es Salaam to Kapriri Mposhi in Central
Zambia.
• The High Court refused to grant two companies the
chance to present more submissions in a case involv-
ing demand for payment of over 787bn/- over fraud
by the Independent Power Tanzania Limited.
• TERACO Data Environments, Africa’s leading vendor
neutral collocation data centre operator and Internet
exchange point (IXP), has secured R400 million from
Barclays Bank to enhance its expansion.
• State owned Tanzania Telecommunications Limited
TTCL, inked a $182 million dollars deal with Huawei
Technologies aimed at helping the national tele-
phone communication build its landline and mobile
ICT networks.
• Airtel Tanzania unveiled Near Field Communication
(NFC) payment service, that enables holders of Airtel
Money accounts settle bills using their cards.
• The Parliamentary Public Accounts Committee (PAC)
has expressed disappointment at the trend of esca-
lating tax exemptions in 2013/2014. In total these
rose by over $ 200 million (Tsh.340 billion) to $10.70
billion (Tsh.1.82 trillion) from $ 8.70 billion (Tsh.1.48
trillion) despite its efforts to the government to
reduce the waivers.
• Tanzania and the World Economic Forum (WEF) are
working on the Central Corridor Acceleration Project
that will see railways, roads, marine and air routes
linking Dar es Salaam to the landlocked countries
of Uganda, Burundi, Rwanda and the Democratic
Republic of Congo.
• The National Bank of Commerce (NBC) announced
the appointment of Dr. Kassim Hussein, as interim
chairman of the bank’s board of directors. Dr. Hus-
sein fills the position left vacant by Professor Mussa
Assad who was recently appointed Controller and
Auditor General.
• Tanzania has approved the acquisition by Sky Associ-
ates Group Ltd of 50 per cent shares in Tanzanite
One Mining Ltd from Richland Resources for $5.1
million.
• Tigo Tanzania and Vodacom Tanzania have reached
an agreement to allow their customers to send
money across mobile platforms. The agreement has
created the first integrated money transfer network
in East Africa run by four rival telephone companies.
• The International Finance Corporation has agreed
to finance the expansion of the Songo Songo Gas to
15www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke
BusinessTanzania
Power project at a cost of $120 million to help ease
power crunch in Tanzania.
• The Gross Domestic Product (GDP) for the third
quarter of 2014 reached 10.7trillion- up from 10.3tril-
lion, - of the corresponding period in 2013 by using
2007 base year, meaning Tanzania’s economy grew
to 6.8 per cent in the third quarter of 2014, slightly
lower than 7.4 per cent growth in a similar quarter of
the previous year.
• The Tanzania Communications Regulatory Author-
ity (TCRA) intends to take measures against telecom
firms that reviewed promotion data tariffs without its
express permission.
• Small Industries Development Organisation (SIDO)
has ventured into public private partnership (PPP) as
a strategy to reduce its dependence on government
subsidy.
• VIP Engineering and Marketing Limited (VIP) has
petitioned the International Centre for Settlement of
Investment Disputes (ICSID) to protect the govern-
ment of Tanzania from paying Standard Chartered
Bank Hong Kong Limited (SCBHK) over 200bn/-.
• According to the Bank of Tanzania (BoT) monthly
economic review, good performance in exports of
manufactured goods and travel receipt pushed the
value of Tanzania’s exports to 8,812.5 million US
dollars for the year ended December, 2014, up from
8,459.7 million US dollars recorded in the corre-
sponding period in 2013.
• Joint Liquidators of Mechmar Corporation (Malaysia)
Berhad, were ordered to deposit 11 million US dol-
lars (about 20bn/-) before determination of a case
in which transfer of shares in Independent Power
Tanzania Limited (IPTL) is challenged.
• The African Development Bank (AfDB) has approved
a $145 million loan to fund the building of an elec-
tricity line between Tanzania and Kenya to improve
regional power connections. The funding would help
construct 507.5 km of transmission lines and substa-
tions along its path to allow for the transfer of 2,000
megawatts (MW) of electricity in either direction
between Kenya and Tanzania.
www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke16
PoliticsTanzania• The East African newspaper has been banned from
circulation in Tanzania, 20 years after it was launched
to cover the region. According to a letter sent to the
East African bureau chief in Tanzania, the decision
was taken because the paper “has been circulating
in the country without being properly registered,
contrary to section 6 of the Newspaper Act number
3 of 1976.
• Rwanda and Tanzania have clashed over the planned
military action against the Democratic Forces for
the Liberation of Rwanda who ignored the January 2
deadline to disarm.
• Parliament has summoned Tanzania Development
Corporation officials to a meeting in a bid to have the
government disclose 26 agreements it has signed
with foreign oil and gas exploration companies and
audit them amid concerns that companies may use
secrecy to inflate recoverable costs.
• Uncertainty is rising on whether the referendum
for a new constitution for Tanzania is going to be
held in April 30 this year as scheduled or if it will be
postponed due to legal technicalities around missed
deadlines and logistical problems.
• Former Tanzanian president Ali Hassan Mwinyi has
backed January Makamba, son of prominent Chama
cha Mapinduzi cadre and immediate former CCM
secretary general Yusuph Makamba for presidency
in this year’s general election.
• Tanzania’s Energy Minister, Sospeter Muhongo quit
becoming the third top government figure pushed
out of office over a multi-million dollar energy cor-
ruption scandal, although he insisted he was “not a
thief.”
• Tanzanian opposition lawmakers have called for an
overhaul of the country’s policing laws after accusing
police of using excessive force to disperse a demon-
stration in Dar es Salaam. Police arrested Civil United
Front (CUF) national chairperson Ibrahim Lipumba
and 30 other party members during a rally commem-
orating the deaths of party members in Zanzibar in
2001.
• The United Republic of Tanzania’s new Minister for
East African Cooperation, Hon Dr Harrison George
Mwakyembe was sworn-in as an Ex-Officio Member
of EALA.
• Civil Society organisations in Tanzania are preparing
to provide civic education on the proposed Constitu-
tion before the referendum slated for April 30, 2015
even as they disagree with the whole process that
culminated in the proposed law.
• The First Instance Division of the East African Court
of Justice, sitting in Arusha has heard and allowed
an application seeking to discontinue the case filed
by three Tanzanians, against the Republics of Kenya,
17www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke
PoliticsTanzania
Rwanda and Uganda.
• Mbinga West Member of Parliament and Member
of the ruling Chama Cha Mapinduzi (CCM) National
Executive Committee (NEC) Captain John Damian
Komba succumbed to death after suffering pressure
and diabetes.
• Premier Mizengo Pinda has cautioned leaders of the
ruling Chama Cha Mapinduzi (CCM) against impos-
ing candidates vying for leadership positions of their
choice, but instead should leave the public to make
their own choices.
• Legal and Human Rights Centre (LHRC) led Tanzania
Civil Society Consortium on Election Observation
(TACCEO) plans to dispatch 160 members country-
wide to monitor the registration of voters through
Biometric Voter Registration (BVR).
• The Acting Director General of Tanzania Ports
Authority (TPA), Engineer Madeni Kipande, has been
suspended over allegations of mismanagement.
• Tanzania Election Monitoring Committee (Temco),
will deploy a total of 13,400 long term and 298 short
term observers to monitor the voter registration
processes. Through a funding of US 4 million US
dollars (about 6.8bn/-) from the United States Agency
for International Development (USAID), the group will
effective start monitoring registration of voters as
well as the envisaged referendum on the proposed
constitution.
• Tanzania Parliamentary Group on Nutrition, Food
Security and Child Rights (PGNFSCR) has launched a
book on recommendations targeting political parties’
manifestos during this year’s general elections.
• The European Union envoy to Tanzania and the East
African Community (EAC), Mr Filiberto Ceriani-Se-
bregondi and EAC Secretary General Dr Richard Sezi-
bera, have signed a financing agreement committing
10.3bn/- for special Electoral Support Programme in
the country as well as Burundi polls slated for this
year
www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke18
Business
• Rwanda says it will be reducing its high import bill by
buying locally made products, especially construction
materials. In a five year plan, the Ministry of Trade
and Industry seeks to reduce the bill by 18%.
• Kenya Commercial Bank (KCB) Rwanda has suffered
a $3.1 million loss from the sale of an estate belong-
ing to a defaulter, DN International, after fighting
court battles for more than two years.
• Rwanda is overhauling its medical insurance scheme,
specifically the community based cover commonly
known as Mutuelle de Sante which will now be man-
aged by the Rwanda Social Security Board (RSSB),
instead of the Health Minsitry whose capacity to
manage the scheme has been questioned.
• The government is considering strategies on how to
revise downwards the retail prices of the recently
launched 4GLTE Internet by at least 50 per cent to
address the low uptake to the technology.
• The World Bank Group approved a $70-million
(about Rwf49 billion) credit to support Rwanda’s
social protection strategy. The fund will be disbursed
through the International Development Association
(IDA) and will help improve efficiency and widen the
scope of the strategy, including poverty reduction
through increased household income.
• Canadian firm, SteviaLife, has signed a Memorandum
of Understanding (MoU) with the Rwandan govern-
ment allowing it to promote the Stevia plant in the
country.
• Rwandair has been ranked among the safest airlines
globally by an Australian based rating website, airlin-
eratings.com, scoring five points out of seven points.
• The recently issued Rwf 15 billion Treasury bond
by the Central Bank was oversubscribed by 106 per
cent. Of the 62 applications the National Bank of
Rwanda (BNR) received for the three-year Treasury
Bond, 39 were individuals and Savings and Credit
Cooperatives (Saccos), representing 2.41 per cent of
the total amount offered.
• The Government has revised the 2014/2015 Budget
Estimates upwards by Rwf6.5 billion to Rwf1759.6 bil-
lion as its implementation entered the second part of
the financial year. In the revised figures, the govern-
ment will borrow more money to fund development
projects that would otherwise stall due to delays in
disbursement of external funding.
• The Rwanda Revenue Authority (RRA) has adopted a
new approach of door-to-door registration of taxpay-
ers, which is expected to enhance efficiency and sig-
nificantly ease revenue collection and administration.
• Bank of Kigali (BK) net profit rose by 23.5 per cent
last year. The bank’s net interest income grew by
11.5 per cent, from Rwf35.2 billion to Rwf39.3 billion,
while net non-interest income was at Rwf18.9 billion,
Rwanda
19www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke
BusinessRwanda
up by two per cent, from about Rwf18.5 billion, mainly driven by an increase in loans, foreign exchange-related income and net fee and commission income.
• The Energy Development Corporation Limited (EDCL) has brought in a new Managing Director, Emmanuel Kamanzi taking on from the outgoing MD Robert Nyamvumba who will
go to the Ministry of Infrastructure as the Energy Division Manager.
• Kenyan business leaders will soon start having structured round-table meetings with Rwandan President Paul Kagame to discuss policy matters that will improve the region’s busi-
ness environment.
• Airtel Rwanda and IHS, Africa’s leading independent mobile telecommunications infrastructure provider, have finalised a takeover deal of the telecom firm’s 200 towers country-
wide, a move is expected to improve the telecom’s service delivery and ensure affordable rates for customers.
• The Rwanda Revenue Authority (RRA) has announced that it registered Rfw 411.5 billion in tax collection during the first semester of the 2014-2015 fiscal year. The Commissioner
General of RRA, Richard Tusabe, said this represents 95.1% of the target for the period from July to December, which was Rfw 432.7 billion.
www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke20
Politics
• The Rwandan government has begun attaching
abandoned properties of genocide suspects, includ-
ing those still on the run or convicted in absentia.
The move is aimed at ensuring that the properties
are properly managed or sold off to so that owners
do not benefit from them and victims are compen-
sated.
• The Norwegian Borgarting Court of appeal upheld
a maximum sentence for Sadi Bugingo, who was
in February 2013 sentenced to 21 years in jail for
his role in the 1994 Genocide against the Tutsi that
claimed over a million lives.
• The Ugandan authorities extradited to Rwanda evan-
gelist, Jean-Paul Birindabagabo sought by his country
for participation in the 1994 genocide. The evangelist
is on the list of people sought by international police
organization Interpol.
• Rwanda’s dominant ruling party Rwanda Patriotic
Front party has started laying the groundwork to
mobilise citizens countrywide to demand a third
term for President Paul Kagame whose term in office
expires in 2017.
• The High Court in Kigali sentenced popular Rwandan
musician Kizito Mihigo to 10 years in prison after he
was found guilty of conspiracy to murder or harm
President Paul Kagame and other top leaders of the
country.
• Rwanda and the Democratic Republic of Congo are
inching closer to reaching a deal to send home ex-
combants of the new defunct M23 rebel group who
have been living in internment camps in Rwanda’s
Eastern and Western Provinces.
• President Paul Kagame appointed Julienne Uwacu
as the Minister for Sports and Culture, replacing
Joseph Habineza. The appointment was announced
in a brief communiqué signed by the Prime Minister,
Anastase Murekezi..
• According to a report titled “Decentralisation and
Human Development: Accelerating Socio-economic
Transformation and Sustaining Accountable Gover-
nance” Decentralisation and citizen’s participation
in decision making are responsible for improved
wellbeing of the population.
• Members of the of parliamentary Public Accounts
Committee (PAC) have begun a follow-up exercise in
selected public entities to check on the implemen-
tation of resolutions adopted by the House during
the analysis of the 2012/2013 report of the Auditor-
General.
Rwanda
21www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke
BusinessBurundi
• The World Bank Group’s Board of Executive Directors approved a US$25 million International Development Association (IDA)* grant to support the Government of Burundi’s
program to create jobs, improve its business environment and increase diversification in promising growth sectors such as coffee and mining through private sector-led economic
growth.
• Burundi Revenue Authority (OBR) revenue collection in 2014 increased by 16.8% compared to the collection of 2013. According to temporary results released by Burundi Revenue
Authority (OBR), show that it had collected BIF 63.5 billion in December 2014, an amount which is less by BIF 0.7 billion compared to the forecasts for the month, recording a
decrease of 1.1%.
• The Burundi Federal Chamber of Commerce and Industry has signed a financing agreement to receive $450,470 from TradeMark East Africa to enhance the participation of Bu-
rundi’s private sector in formulation and implementation of policies.
www.hkstrategies.com/global-presence/nairobi [email protected] n phone: + 254 20 444 0822/3/6/9/31 n twitter: @hkstrategies_ke22
Politics
• The East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) jointly launched Round-Tables for Consolidating Regional Stability through
Peaceful Elections in the Republic of Burundi. Themed Peaceful Elections in Burundi for Regional Integration, the COMESA-EAC Roundtables are joint dialogue initiatives/activities
geared towards promoting a peaceful environment for elections, prevent elections-related violent conflict and support a smooth transition during and after the 2015 elections in
Burundi.
• Former Prime Minister, Justice Joseph Warioba, is among officials who will make up a team of East African Community observers of the Burundi general elections to be held be-
tween May and June, this year.
• An alleged plan by President Pierre Nkurunziza’s allies to hand him a third term in office office has met fresh opposition after 2 civil society organisations including that of eminent
persons and that of elders signed a petition against it.
• The Court of Appeal in the Burundian capital, Bujumbura, ordered the release on bail of the well-known journalist Bob Rugurika. Rugurika, director of Radio publique africaine
(RPA), was arrested on January 20, 2015, after his station broadcasted a series of investigative reports on the September 2014 murder of three Italian nuns in Burundi.
• Thousands of Burundians took part in a government-backed rally “for peace”, where speakers took aim at the opposition, civil groups and the media, accusing them of leading the
country towards war.
Burundi
• The East African
• The New Times
• Business Daily
• Daily Nation
• East Africa Business Week
• The Observer
• CIO East Africa
• Tanzania Daily News
• Rwanda Focus
• Yahoo News
Source of content
SAMUEL KARANJAManaging Director
H+K Strategies Kenya
[email protected] + 254 20 444 0822/3/6/9/31
M + 254 734 755 633
Hill+Knowlton Strategies Riverside Green Offices
Baobab Suite - 1st Floor, Riverside DriveP.O. Box 34537 00100 GPO
Nairobi, Kenyahkstrategies.com
JOSEPH KANYAMUNYUCountry Manager
H+K Strategies Uganda
[email protected]: + 256 752 601002
Kalamu House 3rd floor Plot 1B Kiira Road