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  • Congo News|
  • Featured
  • DRC Blocks Katanga Gecamines Land Deal

    by Kevin Davids
    April 1, 2020

    April 1, 2020 By Kevin Davids

    Katanga Mining has been ordered to withhold about $250 million earmarked as payment for a land deal with the Democratic Republic of Congo’s Gécamines as an investigation into the state miner’s executives continue.

    Katanga’s subsidiary Kamoto Copper Company (KCC) agreed in December to buy land next to its mine from Gécamines and said it would pay an initial $150 million.

    However, Congolese prosecutors have issued an injunction preventing the company from consummating the deal until the investigation, announced in December, has concluded.

    “KCC has provided notice to Gécamines that the order constitutes a force majeure under the agreement and that its obligations under the agreement are suspended,” Katanga said Tuesday.

    Prosecutors in the DRC are investigating a €200 million (US$219 million) line of credit issued to Gécamines by a company owned by Israeli billionaire Dan Gertler, who is subject to US sanctions.

    The land in question includes multiple blocks for construction of a new long-term tailings facility and the possible exploitation of additional resources that would enhance KCC’s ability to more efficiently operate its mines and facilities and fulfil other key infrastructure requirements.

    Katanga also said it would delay the commissioning of its acid plant to the second half of the year due to delays caused by the coronavirus outbreak. The previous target had been by end June.

    KCC is 75%-owned by Katanga and produced 234,500 tonnes copper and 17,100t cobalt last year. It is an important growth project for Swiss-based Glencore, and the construction of a new acid plant would help cut costs at the operation. The Katanga mine complex has the potential to become the world’s largest producer of copper and cobalt.

    Filed Under: Congo News, Featured

  • Africa|
  • Featured|
  • Health & Education
  • AfDB Approves $2M For WHO Fight Against COVID-19 In Africa

    by Kevin Davids
    April 1, 2020

    April 1, 2020 By Kevin Davids

    The Board of Directors of the African Development Bank on Tuesday approved  $2 million in emergency assistance for the World Health Organization (WHO) to reinforce its capacity to help African countries contain the COVID-19 pandemic and mitigate its impacts.

    The grant, which is in response to an international appeal by the WHO, will be used by the world body to equip Regional Member Countries to prevent, rapidly detect, investigate, contain and manage detected cases of COVID-19.

    It is one part of several Bank interventions  to help member countries address the pandemic which, while slow to arrive in Africa, is spreading quickly and is  straining already fragile health systems.

    Specifically, the WHO Africa region will use the funds to bolster the capacity of 41 African countries on infection prevention, testing and case management. WHO Africa will also boost surveillance systems, procure and distribute laboratory test kits and reagents, and support coordination mechanisms at national and regional levels.

    This grant “ will enable Regional Member Countries to put in place robust containment measures within 48 hours of COVID-19 case confirmation and also support the WHO Africa Region to disseminate information and increase public awareness in communities,” said the Bank’s Human Capital Youth and Skills Development Department.

    The grant will contribute toward a $50 million WHO Preparedness and Response Plan,  which other partners including the United Nations system, are also supporting.

    It is estimated that Africa will require billions of dollars to cushion the impact of the disease as many countries scramble together contingency measures, including commercial lockdowns, in desperate efforts to contain it. Globally, factories have been closed and workers sent home, disrupting supply chains, trade, travel, and driving many economies toward recession.

    The Bank Group is expected to unveil a financial assistance package that will enable governments and businesses to undertake flexible responses to lessen the economic and social impact of this pandemic.

    Last Thursday, the Bank raised an exceptional $3 billion in a three-year social bond, the proceeds from which will go to help alleviate the economic and social effects of the pandemic. It is the largest dollar-denominated social bond launched in international capital markets to date.

    Filed Under: Africa, Featured, Health & Education

  • Africa|
  • Featured
  • EAC Borders Stay Open For Transport Of Goods And Services

    by Kevin Davids
    March 27, 2020

    March 27, 2020 By Kevin Davids

    Free movement of goods and services will continue in the East African Community (EAC) bloc despite the Covid-19 outbreak.

    However, in order to ensure thorough screening, trucks will be disinfected before they are allowed to continue to their final destinations. Crew members will be quarantined for 14 days in countries of destination, according to new national guidelines.

    These are among decisions made by the Health ministers and ministers responsible for EAC Affairs from the six partner states on Wednesday during their video conference.

    “The partner states should implement 100 per cent exit and entry screenings,” the ministers said, adding that movement of trucks carrying goods would continue.

    They resolved that the EAC organs and institutions would utilise video conferences, Webinars and Skype in crucial meetings instead of face-to-face encounters.

    Besides strict screening, the truck drivers would be required to stop only at designated points along the transport corridors “so as to limit chances of spread of Covid-19 during transit”.

    The crew for cargo planes and vessels will be determined by the specifications of the aircraft or ship and set international guidelines. The crew will be quarantined at a government designated hotel for the period of their stay.

    The ministers directed the partner states to establish a surveillance system to monitor crew health and enable contact tracing.

    The East African Health Research Commission (EAHRC), an institution of the EAC, was requested to conduct research on Covid-19 which to date has affected four of the six partner states.

    Research on the deadly virus, it was stressed, would enable the EAC countries to be informed on new technologies, advances in care and treatment, vaccines, behaviour of the virus and diagnostics among others.

    Until Wednesday, there were 91 confirmed cases of Covid-19 in four EAC states – Tanzania (12), Kenya (28), Uganda (14) and Rwanda (41).

    No cases had been reported in Burundi and South Sudan although the two countries have like the rest of the world applied mandatory measures against Covid-19.

    Already, a number of countries in the region have taken various steps in a deliberate move to contain further spread of the coronavirus.

    As part of the additional measures to curb the spread of the virus, President John Magufuli said earlier this week that Tanzania would put all visitors and Tanzanians arriving from the high risk countries under quarantine at their own expenses for 14 days. President Magufuli also called upon Tanzanians, especially public servants to avoid travel to countries which have recorded high infection rates.

    The country was already in partial lockdown as the government closed schools, colleges and universities as soon as the first coronavirus cases were confirmed.

    Rwanda became the first nation in Africa to be placed on lockdown for at least 14 days in an effort to fight the coronavirus outbreak.

    The country banned unnecessary movement and visits outside the home by the country’s 12 million citizens, except for essential services such as health care, food shopping or banking, and for the personnel performing such services. All employees, public and private, would be working from home, except for those providing essential services. Rwanda has also closed its borders, except for shipments of goods and cargo and returning Rwandan citizens and legal residents, who will be subject to mandatory 14-day quarantining at designated locations.

    Kenya is in a partial lockdown after President Uhuru Kenyatta announced the closure of schools, and imposed sweeping travel restrictions.

    Travellers from any country with a single case of the virus have been barred from entering Kenya for the next 30 days.

    Only Kenyans and foreigners with residence permits will be allowed in, so long as they agree to be quarantined.

    Uganda, which has so far confirmed a total of 14 Covid-19 cases, announced that no person will be allowed to enter the country starting from Monday this week in a bid to stem the coronavirus outbreak in the landlocked East African nation.

    Filed Under: Africa, Featured

  • Congo News|
  • Featured
  • DRC Declares State Of Emergency, Closes Borders

    by Kevin Davids
    March 26, 2020

    March 26, 2020 By Kevin Davids

    Congolese President Félix Tshisekedi has declared a countrywide state of emergency, and shut down national borders in a bid to stop the potential spread of the coronavirus pandemic.

    Speaking on national television on Tuesday night, the DRC leader said the move had been occasioned by the rising numbers of new infections for Covid-19.

    “In view of the gravity and the dangerous nature of this situation, I declare a state of emergency taking into account the security situation which prevails at the moment in our country in connection with the Coronavirus pandemic”, said Tshisekedi.
    DRC reported one cured patient on Tuesday, but then reported new cases on the same day. By Tuesday night, 48 people had been confirmed infected, according to Health Minister Eteni Longido.

    The presidential decree means there will no longer be passenger flights from Kinshasa to the provinces and vice versa, until the state of emergency is lifted.

    The country is also shutting down its land, sea and air borders to passenger, private or commercial travel.

    But freight services and emergency transportation would be spared with their crews strictly screened before admittance.
    The head of state also ordered the “establishment of minimum services within services and institutions.”

    DRC, still smarting from an Ebola scourge has some of the poorest health systems in Africa.

    With Coronavirus, the population has been largely in panicky mode as seen on Monday when a plan landed with passengers showing symptoms in Lubumbashi, the capital of southeasten province of Haut-Katanga.

    “The two suspected cases have been tested negative by the laboratory of the national biomedical research institute,” said Félix Tshisekedi.

    With reports that chloroquine can fight against the Coronavirus, the Congolese head of state instructed the “task force” of the fight against Covid-19 to “be able to reflect on this opportunity to eradicate the Coronavirus virus pandemic.”

    Filed Under: Congo News, Featured

  • Featured|
  • Kenya News
  • Lawyers Fight Kenya-US Trade Agreement

    by Kevin Davids
    March 24, 2020

    March 24, 2020 By Kevin Davids

    Two lawyers have moved to court seeking to have Kenya’s Free Trade Agreement (FTA) with the United States revoked.
    Lawyers Christopher Ayieko and Emily Osiemo have filed a petition at the East African Court of Justice challenging Kenya’s plans to sign an FTA with the US.

    They accusing President Uhuru Kenyatta’s administration of violating the East African Community (EAC) Treaty and its protocols. The duo want Kenya’s proposed FTA with the US declared illegal, null and void.

    “That Kenya, without due regard to the provisions of the EAC Treaty and the protocols for the establishment of the Customs Union and Common Market Protocol, to which it is a party, entered into, negotiated and/or expressed intention to negotiate a bilateral Free Trade Agreement with the United States of America in total violation of the Treaty and the protocols,” the two lawyers argued in their application.

    They also want Kenya barred from importing American wheat from Idaho, Oregon and Washington States on grounds that the government failed to provide information on the proposed agreement and the adopted phtyosanitary protocol of the certification of wheat grain with the US to the EAC Council on trade relations.

    Kenya is a net importer of wheat, bringing in two-thirds of its requirement to meet the annual consumption of 900,000 tonnes, against an annual production of 350,000 tonnes.

    Filed Under: Featured, Kenya News

  • Africa|
  • Featured
  • AfDB Approves $200M Trade Finance Risk Participation Agreement

    by Kevin Davids
    March 23, 2020

    March 23, 2020 By Kevin Davids

    The Board of Directors of the African Development Bank (AfDB) have approved a $200 million Trade Finance Risk participation agreement (RPA) between Sumitomo Mitsui Banking Corporation Europe (SMBCE) and the African Development Bank.

    The RPA, replacing an earlier one that expired in late 2019, will incorporate $100 million each of unfunded and funded risk participation to build on the successes of its predecessor in strengthening African trade finance, particularly in the agriculture, energy, manufacturing, and construction sectors, and will expand intra-African trade. The recently expired RPA covered solely unfunded risk participation.

    “This agreement represents yet another effort to bring scale and innovation to the Bank’s partnership with SMBCE to better serve the trade finance needs of the continent, said Yaw Kuffour, head of trade finance at the Bank.

    Under terms of the agreement, the Bank will extend a 3-year funded and unfunded RPA limit up to $200 million that SMBCE will match, to a total limit of $400 million, in support of a portfolio of eligible trade finance instruments originating from 45 local and regional African banks active in about 17 Regional Member Countries.

    In addition to providing liquidity, the Bank will leverage its AAA credit rating to offer SMBCE risk-cover to underwrite trade transactions by the African banks. African Development Bank participation helps to mitigate, for international commercial lenders like SMBCE, some of the perceived risk associated with African banks.

    The RPA is structured to ensure that small and medium enterprises (SMEs) will benefit, a continuation of the strategic focus of the earlier RPA, for which SMEs accounted for 83% of utilization. The agreement also contains provisions targeting women-owned businesses, which are a strategic priority for both the Bank and SMBCE.

    SMBCE is a wholly-owned subsidiary of Sumitomo Mitsui Banking Corporation Group that focuses primarily on trade finance and project finance in the Middle-East, Africa, and Europe.

    Filed Under: Africa, Featured

  • Energy|
  • Featured|
  • Project Updates|
  • Water
  • Uganda Increases Threshold For Electricity Export

    by Peter Orengo
    March 13, 2020

    March 13, 2020 By Peter Orengo

    Uganda’s electricity export receipts increased by 13 per cent in the period ending January 2020, according to data from Bank of Uganda.

    Uganda exports its electricity to Kenya, Tanzania and parts of eastern DR Congo.

    According to a Bank of Uganda report released early this month, in the period between January 2019 and January 2020, Uganda exported about 320,372 megawatts of electricity, which earned the country Shs$46m (Shs170b).

    This was an improvement in the same period the previous year in which 228,808 megawatts worth $40m (Shs148b) were exported.

    Ms Pamela Nalwanga Byoruganda, the Uganda Electricity Transmission Company Limited (UETCL) public relations officer, at the weekend told Daily Monitor the increase in export earnings and volumes had been occasioned by “an increase in on the availability of generated power.

    Uganda’s current installed electricity capacity stands at 1,252.4 megawatts. However consumption stands at slightly above 650 megawatts during peak hours, which creates a surplus of half of what is generated.
    At least by the end of 2020, Uganda’s generation capacity is expected to grow to 1,681 megawatts.

    As of April 2019, national generation capacity was 1,177 megawatts.
    Much of the surplus is exported to Kenya, Tanzania, South Sudan and DR Congo through UETCL.

    UETCL is in charge of bulk electricity supplies for both the local and export markets.

    In October last year, Kenya indicated it had increased its power imports from Uganda due to a reduction in tariffs from Shs787.3 to Shs501 per unit. Kenya’s Energy Cabinet Secretary Charles Keter said at the time the sharp growth in electricity imports from Uganda had been informed by a tariff reduction of about 50 per cent.

    The Muhoroni generator which largely supplies the region is Shs1,252.6 per unit compared to Uganda’s which was Shs787.3 per unit before June and is now Shs501 per unit,” he said.

    Mr Keter also revealed that the tariff is expected to reduce further to Shs357.8 at the end of October, adding that this, being hydro power: “Gives us [Kenya] a lot of stability in the region even as demand continues to rise.”

    Step in the right direction

    According to Mr Ramathan Ggoobi, a Makerere University Business School lecturer and an economist, the increase in electricity exports is good, “although some Ugandans would not want to see the country export electricity when they don’t see enough transmitted to them.”

    Mr Ggoobi also notes that the export sector is still weak, therefore, if there is anything that brings in some dollars, it must be supported, highlighting that most of the electricity is a result of long-term agreements that Uganda signed with its neighbours. However, he notes, UETCL must strategically use the resources earned to make electricity cheaper.

    Filed Under: Energy, Featured, Project Updates, Water

  • Featured|
  • Health & Education|
  • Kenya News|
  • Public Spaces
  • Kenya Economy Suffers Ripple Effects Of Coronavirus

    by Peter Orengo
    March 13, 2020

    March 13, 2020 By Peter Orengo

    Kenya is feeling the economic effects of the coronavirus, despite having no infections, as imports from China fall because of travel bans for people and goods.

    Airlines are incurring losses, and small traders in Kenya said they fear their stocks will soon run out, putting them out of business.

    There is little activity these days at a container terminal in the Kenyan port of Mombasa.

    The coronavirus outbreak has brought shipments from China to a halt. Kenya’s small traders depend on manufactured goods from China that are normally unloaded at this port.

    Samuel Karanja heads the 50,000-member Importers and Small Traders Association of Kenya.

    Sizable price increases

    “We’re going to see a hike of the price of some commodities, two or three times than what we are paying for,” Karanja said. “The reason we go to China is because of the cost, the value for our money. So, you can have several goods for the same price, not compromising the quality but at very good rates. We are not going to find this anywhere in the world.”

    Karanja said consumer goods such as electronics, clothing and cosmetics are the first to feel the pinch.

    While Kenyan traders scramble for other suppliers, the coronavirus keeps spreading and having an impact.

    Winnie Gathoni, owner of a small cosmetics shop in Nairobi, is counting the last lipstick tubes from China she still has for sale.

    “Maybe in about two months or so, we will basically close down, yes,” Gathoni said.

    It’s a similar situation at a Nairobi electronics store. Abu Bakr Kareem, a father of three, says his stock of Chinese-made phones is almost sold out.

    “If the virus goes on the way it is now, people are going to be affected well,” Kareem said. “Also, my family, other families.”

    Vital to economy

    Kareem’s shop is among the thousands of small businesses that authorities say provide more than 80% of Kenya’s employment.

    Yet, the coronavirus outbreak has created a boom for one business in Kenya — shops selling face masks. Stephen Mbugwa manages the Nairobi Safety Shop.

    “In the last two weeks we have dispatched hundreds of thousands,” Mbugwa said. “The most common demanded one is the drip plié. This drip plié is the one that almost everyone is looking for.”

    Since even these face masks are made in China, they too will run out.

    Meanwhile, Kenya’s Ministry of Health is preparing for a coronavirus outbreak, says ministry official Rashid Aman.

    “We have a very active emergency operation center at our department of surveillance and response that responds to any suspected cases or other alerts,” Aman said.

    As Kenya prepares for a possible outbreak, the country’s traders can only hope that the virus is contained soon so that imports from China can resume and they can get back to business as usual.

    Filed Under: Featured, Health & Education, Kenya News, Public Spaces

  • Energy|
  • Featured|
  • Tanzania News
  • Canadian Firm To Invest $1.7 Million In Tanzania’s Rural Electrification Project

    by Peter Orengo
    March 13, 2020

    March 13, 2020 By Peter Orengo

    Canadian start-up Jaza has recently secured $1.7 million to provide access to electricity for households in rural Tanzania. The funds were obtained through a crowdfunding.
    Good news for Jaza. The Canadian start-up has obtained new capital to expand its activities in Tanzania. The start-up has successfully raised $1.7 million. The funds were raised through a crowdfunding exercise involving the Shell Foundation, the Draper Richards Kaplan Foundation (DRK), Ceniarth, the EEP Africa multi-donor trust fund and Active Impact Investments.

    Several individuals also participated in Jaza’s fundraising. The $1.7 million raised will help expand the services of the start-up in Tanzania. In this East African country, the young company provides battery recharging services in remote areas. In villages, Jaza is building battery charging points managed by women. These kiosks are powered by solar-powered mini-grids, which allow the batteries to be recharged. Electricity storage devices are rented by households. In these families, they make it possible to supply a small electrical network that can support a few small devices such as radios or mobile phone chargers.

    The deployment of the solution in Kigoma.

    “It has been very interesting to see directly how our customers have responded to the energy services we provide. Our solution costs our customers half of what they previously spent on kerosene for lighting,” says Radhina Kipozi, Jaza’s marketing director.

    Currently, the company has 70 battery recharging points installed in rural areas of Pemba and Mtwara regions. These solar energy production and distribution facilities supply 23,000 people and employ 140 women. With the $1.7 million obtained from several investors, Jaza plans to build battery recharging points in the Kigoma region of north-western Tanzania. These new charging points will create 200 additional jobs in rural areas.

    Jaza’s social, economic and environmental model convinced Electrification Financing Initiative (ElectriFI); a European Union investment fund has decided to inject USD 1.5 million into the project.

    Filed Under: Energy, Featured, Tanzania News

  • Featured|
  • Project Updates|
  • Tenders|
  • Uganda News
  • Uganda Target $117 Million Loan For Oil Roads

    by Peter Orengo
    March 12, 2020

    March 12, 2020 By Peter Orengo

    The government of Uganda is seeking US $117m loan from China for construction of oil roads. Uganda Media Centre communications and media relations manager Denis Katungi, announced the report and said the Cabinet agreed to borrow the funds.

    “The Government will borrow the money from the Industrial and Commercial Bank of China to finance the construction of Masindi-Biiso, Kabaale-Kiziranfumbi and Hohwa-Nyairongo-Kyarusesa-Butoole roads,” said Denis Katungi.

    According to Mr. Denis, upgrading and constructing the national oil roads will facilitate the efficient development of the strategic national oil resources. It will also add to the network of road infrastructure required for movement of construction materials, workers and consumables from other parts of the country to the oil region.

    Uganda has a target of completing a large section of its “oil roads” across the region. The set target of 2021 is a year behind schedule, and officials are citing funding challenges.

    According to a 2016 Cabinet directive to the Uganda National Roads Authority (Unra), the 12 critical oil roads, about 700km in total, were supposed to be completed by 2020 to facilitate the production of oil in 2023.

    Last year, the government signed a contract with China Railway Seventh Group to design and construct a 97km road connecting Masindi-Biso, Kabaale-Kiziranfumbi and Hohwa-Nyairongo-Kyarushesha-Butoole.

    Minister of State for Planning David Bahati also presented to Parliament a loan request of US $456.37m from China Exim Bank to fund the upgrade and construction of national oil roads. 550km of the roads for which funding has already been secured will be completed by 2021.

    Filed Under: Featured, Project Updates, Tenders, Uganda News

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