World bank ranks: Kenya second on logistics


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Ian Cruz

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In Summary

  • The bank’s Logistic Performance Index (LPI) released yesterday ranks Kenya at position 42 globally after it scored an average score of 3.33 points.
  • By comparison, the survey ranks Uganda and Tanzania at positions 58 and 61 respectively. Uganda has an average score of 3.04 while Tanzania has 2.99. The World Bank has classified Kenya as the best logistics performer in East Africa as continued removal of administrative controls and improved infrastructure pay dividends points.
 
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Ian Cruz, no way since 80% of ur people do not board KQ but use roads n railway.

On the other hand our railway infrastructure is 3 times Kenya's! Oil pipeline is 4 times Kenya's, for roads we have connected all the borders! Whereas for kenya only Namanga, Lungalunga (recently) n Malaba border posts r tarmarcked!
Your railways are old and dilapidated and your pipelines are no larger than the ones that supply Nairobi residents with water.
We have a better road network than Tanzania which connects only major towns.Most of Nairobi especially the western part is fully tarmacked.
Same to Mombasa.
Kenya has even shopping centres connected to major towns by tarmac.
Tanzania does not.
Last I checked The Busia, Isebania, Taveta, and Amagoro border posts all have tarmacked roads.
We do not trade with Somalia, civil war and all.The roads to Nadapal and Moyale are all under construction with the latter nearly complete.
So No.
 
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Uganda-Tanzania crude oil pipeline to start in June
By Simon Peter Atwiine -
January 31, 2019
Uganda-Tanzania-oil-pipeline

The construction of the US $3.5 billion Uganda-Tanzania crude oil pipeline is expected to start June this year once leaders of the countries endorse the agreements reached during the negotiations.

Tanzania’s Energy Minister Medard Kalemani said yesterday during a live broadcast on state television.

The minister said energy ministers of Uganda, Tanzania and other stakeholders met in Kampala last week to formalize discussions that will formalize the long-awaited 1,445 km long project that runs from Hoima district in Uganda to the Indian Ocean port of Tanga Port in Tanzania.

“Tanzania has completed eight core professional works that needed to be finalised after the foundation stone was laid and also before the construction can begin,” he said. He said Tanzania needed to identify an area where five crude oil storage tanks, each with capacity of 2.5 litres million would be installed.


He said government in Tanzania has completed the evaluation and compensation of land owners to the tune of Tsh5 billion.
He said government would by March this year have complete geological and geotechnical evaluations in areas of Manyara Sigida Kagera and other regions along the oil pipeline route. The same process has been completed in Tanga.

Since the inauguration of the project in 2007, there have been a series of technical meetings between the two countries.

Some of the issues that needed to be resolved were; distribution of revenue, registration of the companies to be involved in the project, issues related to security and citizens’ participation.

80 percent of the pipeline will pass through eight regions of Tanzania that include 28 districts, 126 villages and 232 wards. The pipeline will have 18 stations, 16 of them will be in Tanzania.

The projects will provide over 15000 jobs during and after completion.

Uganda has proven oil reserves of 6.5 billion barrels with about 2.2 billion recoverable.

Uganda-Tanzania crude oil pipeline to start in June - Eagle Online
 
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Tigo’s Zantel buyout in last stages
SATURDAY FEBRUARY 2 2019





Tigo Tanzania is in the final stages of wholly acquiring Zanzibar Telecom. PHOTO | NMG
In Summary
  • Tanzania's second largest telecom to acquire Zanzibar Telecom.
  • If approved, Tigo will be fighting for the top spot with Tanzania’s largest telecom operator, Vodacom.
  • Tigo is also moving closer to listing on the Dar es Salaam Stock Exchange.


By ALLAN OLINGO
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Tanzania's second largest telecommunications operator is in the final stages of wholly acquiring Zanzibar Telecom (Zantel) from the United Arab Emirates’ Etisalat Group, coming barely three-and-a-half years after it bought the majority stake (85 per cent) in the telco.

Millicom International Cellular, which trades as Tigo, has written to the country’s competition watchdog, the Fair Competition Commission requesting regulatory approvals for it to acquire the entire shares of Zantel and its subsidiary, Telesis Tanzania Ltd, which provides 4G telecommunications network capacity and coverage to operators.

“FCC is investigating the intended acquisitions… parties (both legal and natural) who deem themselves as having sufficient interest in these mergers… shall file and register such interest(s) or information by way of written submissions to the FCC within 14 days,” the agency said in its January notice.

If approved, Tigo will be fighting for the top spot with Tanzania’s largest telecom operator, Vodacom as it will narrow down the subscribers number to a difference of under 200,000.

As at mid last year, Zantel had 1.07 million subscribers while Tigo had 12 million, so this merger would bring the total to 13.07 million. Vodacom has 13.27 million subscribers.

When it bought the majority stake, Tigo had said it would not change Zantel’s name, allowing it to trade under the Zantel brand, but this is bound to change after it buys out the Zanzibar government’s stake in the telecom.

This merger will further solidify competition among telecommunication players in Tanzania where seven players are scrambling for the country’s 41.8 million voice subscribers and 20.8 million mobile money users.

In December, Tigo said it was moving closer to listing on the Dar es Salaam Stock Exchange after finalising the legal requirements for an initial public offering.

The telecommunications firm said it would list “soon” to comply with the Electronic and Postal Act of 2010, which requires telcos to list 25 per cent of their shares on the bourse.

“We have completed legal conversion from a private limited company to a public limited company,” it said in a statement.

Tigo’s Zantel buyout in last stages
 
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Bagamoya, from fish to 20m containers
Tanzania’s port out of Africa
A small Tanzanian fishing port could be as large and busy as Rotterdam within 10 years, backed by money from China and Oman. This might industrialise a country in ever deeper debt to China.
by Jean-Christophe Servant

Tanzania’s port out of Africa



Last of the fishing boats: Dar es Salaam’s rapidly growing port.
Daniel Hayduk · AFP · Getty Images

Bagamoyo, a small fishing port 70km north of Dar es Salaam, Tanzania, may become Africa’s biggest container port in the next 10 years. China’s largest public port operator, China Merchants Holdings, is about to start what the Ecofin Agency called ‘the most significant construction project in the last four decades of Chinese-Tanzanian relations’.

Part of the $10bn funding will come from the Sultanate of Oman’s sovereign wealth fund and China’s Exim Bank. There will be a special economic zone modelled on Shenzhen, China. The piers and docks will extend along 20km of coastline, and handle 20m containers a year, more than Rotterdam, Europe’s biggest port. Tanzanian authorities say it will create an industrial revolution in a mainly rural country where 80% still live below the poverty threshold.

Tanzania, a rare example of stability in this region, has been governed by John Magufuli since late 2015. He is the political heir of the Chama Cha Mapinduzi (CCM, Party of the Revolution), founded in 1977 by Julius Nyerere. According to Daudi Mukangara, a political scientist at the University of Dar es Salaam, the CCM’s original brand of socialism did not withstand ‘the neoliberal assault of the late 1980s and 90s, which denationalised the very notion of nationalism’. Tanzania has one of Africa’s strongest growth rates, 5.8% in 2018 and a forecast of 6% in 2019 according to the IMF, and has begun a massive infrastructure development programme (seeTanzania revives rail).

The Bagamoyo project will let Oman regain a foothold in Africa; the nearby island of Zanzibar was Omani territory from 1698 and a major centre of the slave trade supplying the Gulf states. China, too, is extending its influence in East Africa in Tanzania, which has been a pillar of Sino-African cooperation (see How China joined Tanzania and Zambia). Until the mid-19th century, Bagamoyo was an important transit point for copra (dried coconut), ivory and slaves. Many (...)

Tanzania's port out of Africa
 
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Freight or passengers, old or new track?
Tanzania revives rail
There’s exploding demand for new rail infrastructure in East Africa, but whose interests will ambitious — and very expensive — new projects serve?
by Anne-Cécile Robert

Tanzania revives rail



Zambia’s Royal Livingstone Express draws tourists, but East African politicians have grand ambitions for brand-new rail infrastructure
Sergi Reboredo · VW Pics · UIG · Getty

Tanzania’s transport minister, Isack Aloyce Kamwelwe, speaking at the East and Central Africa Roads and Rail Infrastructure Summit in Dar es Salaam last October, detailed how much rail track the country is building. He projected maps and graphics as he described the routes of future lines, the stations, the tonnes of cement and ballast.
He focused on the 700km of electrified line from Dar es Salaam west towards the border with the Democratic Republic of the Congo (DRC). Then he went on to 400km of track that will link his country to Rwanda; this was approved in February 2018, though the $8bn funding is still lacking.

About 50 investors, researchers, entrepreneurs and political decision makers from Ethiopia, Kenya, Uganda, Zambia and the DRC were present. There were also entrepreneurs and company representatives from Turkey, China, Israel, Belgium, Korea, Japan and Germany, and an EU representative. The conference was organised by Magenta Global, a Hong Kong-based events company.

In Tanzania, and throughout Africa, rail is being reborn after losing ground to road transport. East Africa attracts attention because of its geographical advantages, and its ease of access to the Arabian peninsula, and, by sea, to Asia. The vast mineral wealth of the DRC — a huge, landlocked country at the heart of the continent — is transported to the sea, mainly destined for major eastern powers, especially China. The ports of Mombasa (Kenya), Durban (South Africa) and Dar es Salaam are at close to full capacity. New ports are being built (Lamu in Kenya) or planned (Bagamoyo, north of Dar es Salaam). ‘The demand for freight transport has exploded since 2015,’ said Bruno Ching’andu, managing director of the Tanzania-Zambia Railway Authority (Tazara). ‘Traffic from Kisangani and Kasai Province, in the DRC, is up by 18%.’

With rising commodity prices, the market for raw materials has boomed since the early 2000s, even if there was a marked slowdown last year. The (...)

Tanzania revives rail
 
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Uganda-Tanzania crude pipeline talks to continue this week


MONDAY FEBRUARY 4 2019







An oil pipeline. Talks between Uganda and Tanzania on the pipeline connecting the two countries are ongoing. FILE PHOTO
In Summary
  • Tanzania and Uganda have also agreed to partner in a joint security operation and a standing committee has been instituted.
  • Countries will also have to harmonise their domestic laws. In Uganda, the affected laws include the Public Finance Management (Amendment) Act, Petroleum Exploration and Production Act, the Land Act and the Tax Act.


By AFP
Technocrats from Uganda and Tanzania are scheduled to hold another round of discussions this week to iron out three contentious issues that were deferred during negotiations of the Host Government Agreements (HGAs) for the East African Crude Oil Pipeline (EACOP).

During the January 25 meeting in Kampala, the officials are said to have agreed on most of the issues under the agreements, but arbitration, revenue sharing and taxes were deferred to a later meeting.

They agreed on registration of local companies, security of the pipeline, immigration, national content, insurance of the project, environmental obligations, investor duties, relevant standards and procedures, construction and operation of the project, as well as the required stability clauses.

The Permanent Secretary in Uganda’s Ministry of Energy Robert Kasande told The EastAfrican that the contentious issues will be discussed on February 7 in Tanzania.
Although the officials describe the negotiations as successful since they reached harmonised positions on most issues, arbitration, which is a significant component in a trade agreement, remains unresolved.

“We did not conclude discussions on the question of arbitration. The important issue is, where should it be? We have pushed it forward for further discussions,” Mr Kasande said.

EACOP is a 1,445km export pipeline that will transport crude oil from Kabaale in western Uganda to the Chongoleani peninsula near the Tanga port in Tanzania. The proposed 24-inch diameter pipeline will export 216,000 barrels of crude oil per day.

In May 2017, Tanzania and Uganda signed the Inter-Governmental Agreement (IGA) which provides a legal basis for the implementation of the EACOP project. As part of the implementation, parties are required to sign the HGAs individually because of the transboundary nature of the project.

The HGA is an agreement between a host government and investors, relating to the implementation of the project in the specific territory.

The EACOP will have three agreements — one between Uganda and Tanzania, the second one between Uganda and the joint venture oil companies, and the third between the joint venture oil companies and the Tanzanian government.

Revenue sharing
Also on the agenda of the February 7 meeting is the issue of sharing of revenue. Legal officers at Uganda National Oil Company (UNOC) say that the pipeline will be held by a company that all the partners will jointly own, or a contractor will be employed to run its operation.

Value added tax as per the agreement will be deemed as paid during the three years of the construction phase. The pipeline depreciation rate has been fixed at five per cent.

However, there are proposals that the country that the company managing EACOP is registered in should charge taxes. For example, if the main company is in Uganda, Uganda can charge corporate tax, and if it has a subsidiary in Tanzania, Tanzania can charge a branch tax. This is expected to be resolved in the next meeting.

Another resolved issue is that Tanzania will not pay tariffs for crude export to overseas markets because it does not have the resources. Uganda and joint venture oil partners China National Offshore Oil Company, Total E&P and Tullow Oil Uganda will meet this cost.

The arrangement also caters for future partners. For example, if a company that is exploring for oil in Uganda or Tanzania makes a discovery, that company can be accommodated in the EACOP. The same rules will apply to a country that decides to join EACOP.

EACOP is expected to lead to a 60 percent increase in foreign direct investment per year for the two countries during the construction phase, by attracting investors and companies to explore the potential in the region.

Tanzania has suggested it will take up five per cent shares in EACOP. The Tanga port will handle large volumes of the materials required during the construction phase.

Tanzania and Uganda have also agreed to partner in a joint security operation and a standing committee has been instituted.
Countries will also have to harmonise their domestic laws. In Uganda, the affected laws include the Public Finance Management (Amendment) Act, Petroleum Exploration and Production Act, the Land Act and the Tax Act.

“In Tanzania, nothing is pending in terms of the law. All our laws are within the agreement. We have only now to take the signed agreement before our parliament for ratification,” Minister for Constitutional and Legal Affairs Palamagamba John Kabudi said at the launch of the IGA.

Uganda-Tanzania crude pipeline talks to continue this week
 
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