Dar es Salaam - India and Tanzania sign no-double taxation treaty
Prime Minister Manmohan Singh last week announced a new line of credit (LoC) of $180 million for Tanzania.
The two countries also signed a double-taxation avoidance treaty and agreed to work together to curb piracy and terrorism.
On the last day of his official engagements in Africa, Manmohan Singh pitched for greater economic cooperation between the two countries and offered an LoC of $180 million for a drinking water supply project in the capital.
He also announced a fresh grant of $10 million for capacity building projects in the social and educational sectors.
"India, on its part, is ready to partner Tanzania in its nation-building efforts. We will focus on areas like agriculture, small and medium industries, healthcare and human resource development," Manmohan Singh said at the joint press conference. The two sides also agreed to facilitate the process of diversifying and increasing the investment of Indian companies operating on Tanzanian soil.
The two countries also signed a double-taxation avoidance treaty, which Tanzanian President Jakaya Kikwete said was important for bilateral trade.
While Singh called for increasing Indian investment in Tanzania, the Tanzanian president said he wanted India to help in manufacturing, information technology, textiles, tractors and irrigation equipment.
"We want India to invest in information and communication technology," Kikwete said. The two sides also signed a joint action plan for the small and medium industries. Indian investment in Tanzania currently stands at $1.3b.
The two countries also endorsed India's bid for a permanent seat in the United Nations Security Council. "India deserves it," Kikwete said, adding, "Whenever the Security Council is expanded, you cannot leave out India."
After the bilateral talks, Singh said India and Tanzania would intensify consultations and coordination to combat piracy and terror threats. Speaking on the problems faced due to pirates, Kikwete said, "Insurance costs are going up. Ships are taking longer routes, and so, transportation costs too, are rising."
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Tanzania, India sign no-double tax deal
Uganda considers geothermal energy
Kampala, Uganda-The challenge of the country experiencing rampant power shortages can be solved by exploiting the estimated 450 MW of geothermal energy.
The Government of Uganda recently recognized a need to promote the use of renewable energy sources as alternatives or supplements to other traditional sources like hydropower, and fossil fuels (oil and gas).
"Uganda has considerable potential for renewable energy from geothermal projects, especially in regions with volcanic activity," Assistant Commissioner, department of Geological survey and mines, Godfrey Bahati told East African Business Week.
Bahati explained that the recent studies on the Uganda geothermal systems have focused on three geothermal prospects including Katwe, Buranga and Kibiro, all located in the tectonically active and recent volcanic belt in the Western Rift valley along the border of Uganda and the Democratic Republic of Congo.
Currently, surface exploration is in its advanced phases.
"The three areas were chosen as priority areas because of their volcanic and tectonic features that are indicators of powerful heat sources and permeability," said Bahati.
The commissioner revealed that the government has since 1993 injected in $ 2 million but there is still $35 million needed to complete surface exploration, exploration drilling and installation of a power plant.
"With so many projects that need to be worked on including other alternative sources of power, geothermal energy has been left in a shadow," explained Bahati.
The current utilization is mainly for salt production at katwe and kibiro using geothermal water. Geothermal water is also used for bathing and treatment of diseases like Rheumatics.
"Once the project is completed as per the National Development Plan (NDP), it will push power to the national grid complementing Hydro electric power and other sources of energy," Bahati complimented. "Geothermal heat can be used for drying agricultural produce and extraction of minerals like salt from Katwe and Kibiro using modern technology."
Uganda would be far ahead in utilization of geothermal energy compared to Kenya. Bahati referred the delay to lack of expertise and funding given the many projects that need to be worked on.
"High initial investment costs and geological risks have been identified as the major problems hindering geothermal development," he added.
However Kenya is more committed to harnessing geothermal energy given the expertise and funding because the country has no alternative source of power.
The energy master enlightened that currently Kenya has an installed energy capacity of about 1300 MW and this makes it closer to affordable, reliable and clean energy.
Besides Uganda government commitment to fund the programme, Development Partners have drawn closer to support in fulfilling the project of geothermal exploration.
"The project is likely to benefit from the WB and KfW Risk Mitigation Fund (RMF) as insurance for drilling," he said.
The WB RMF is a component of the African Rift Geothermal Development Facility (ARGeo) while the KfW RMF is from the Germany Government.
The government has gone ahead to license two areas to the private sector including Cozumel Energy Limited in Katwe and Gids Consult in Bulanga.
Other geothermal areas are located on the outskirts and or close to the rift valley in South Western-Uganda and Northern Uganda Surface exploration in the three areas has reached advanced stages while in the other areas it is still at preliminary level.
Geothermal energy presents a high priority alternative to hydropower in the country.
"The subsurface temperatures of 160-200°C, 200°C, and above 200°C for the Katwe, Buranga and Kibiro prospects, respectively, have been inferred by geothermometry and mixing models," Bahati noted.
He explained that the temperatures are suitable for electric power production and direct use in industry and agriculture.
In order to use this geothermal energy efficiently, there is need for specific know-how to exploit this resource.
"The development of wells is a high-risk and very expensive exploration venture, which needs the support of financial instruments," remarked Bahati.
The Government of Uganda recently recognized a need to promote the use of renewable energy sources as alternatives or supplements to other traditional sources like hydropower, and fossil fuels (oil and gas).
"Uganda has considerable potential for renewable energy from geothermal projects, especially in regions with volcanic activity," Assistant Commissioner, department of Geological survey and mines, Godfrey Bahati told East African Business Week.
Bahati explained that the recent studies on the Uganda geothermal systems have focused on three geothermal prospects including Katwe, Buranga and Kibiro, all located in the tectonically active and recent volcanic belt in the Western Rift valley along the border of Uganda and the Democratic Republic of Congo.
Currently, surface exploration is in its advanced phases.
"The three areas were chosen as priority areas because of their volcanic and tectonic features that are indicators of powerful heat sources and permeability," said Bahati.
The commissioner revealed that the government has since 1993 injected in $ 2 million but there is still $35 million needed to complete surface exploration, exploration drilling and installation of a power plant.
"With so many projects that need to be worked on including other alternative sources of power, geothermal energy has been left in a shadow," explained Bahati.
The current utilization is mainly for salt production at katwe and kibiro using geothermal water. Geothermal water is also used for bathing and treatment of diseases like Rheumatics.
"Once the project is completed as per the National Development Plan (NDP), it will push power to the national grid complementing Hydro electric power and other sources of energy," Bahati complimented. "Geothermal heat can be used for drying agricultural produce and extraction of minerals like salt from Katwe and Kibiro using modern technology."
Uganda would be far ahead in utilization of geothermal energy compared to Kenya. Bahati referred the delay to lack of expertise and funding given the many projects that need to be worked on.
"High initial investment costs and geological risks have been identified as the major problems hindering geothermal development," he added.
However Kenya is more committed to harnessing geothermal energy given the expertise and funding because the country has no alternative source of power.
The energy master enlightened that currently Kenya has an installed energy capacity of about 1300 MW and this makes it closer to affordable, reliable and clean energy.
Besides Uganda government commitment to fund the programme, Development Partners have drawn closer to support in fulfilling the project of geothermal exploration.
"The project is likely to benefit from the WB and KfW Risk Mitigation Fund (RMF) as insurance for drilling," he said.
The WB RMF is a component of the African Rift Geothermal Development Facility (ARGeo) while the KfW RMF is from the Germany Government.
The government has gone ahead to license two areas to the private sector including Cozumel Energy Limited in Katwe and Gids Consult in Bulanga.
Other geothermal areas are located on the outskirts and or close to the rift valley in South Western-Uganda and Northern Uganda Surface exploration in the three areas has reached advanced stages while in the other areas it is still at preliminary level.
Geothermal energy presents a high priority alternative to hydropower in the country.
"The subsurface temperatures of 160-200°C, 200°C, and above 200°C for the Katwe, Buranga and Kibiro prospects, respectively, have been inferred by geothermometry and mixing models," Bahati noted.
He explained that the temperatures are suitable for electric power production and direct use in industry and agriculture.
In order to use this geothermal energy efficiently, there is need for specific know-how to exploit this resource.
"The development of wells is a high-risk and very expensive exploration venture, which needs the support of financial instruments," remarked Bahati.
College of humanities dominates MUK
Kampala, Uganda-Students flocked Makerere University to apply for private sponsorship scheme for the 2011/2012 academic year despite the online application system that was launched recently.
Both Ugandans and international applicants turned up to pick admissions seeking to further their education at the 87-year-old institution before the expiry of the deadline.
The University announced about 29,800 undergraduate vacancies. With the application fee doubled from Ushs 25,000 ($ 10) top Ushs 50,000 ($ 20), it has not reduced the turn up of the students but instead increased. The increase in the application fee has been inferred to an increase in the cost of processing admissions.
The university fees have, however, remained unchanged as students will follow the current fees structure. Queues were witnessed at the university's Senate building as well as Stanbic and Dfcu banks to bank the application fee and pick the forms.
Application forms are issued at the university's Senate building Senate Building which houses administrative offices.
Early this year Makerere University introduced online admissions. With the system applicants seeking to join the university and its affiliate colleges and schools do not need to queue to hand in their application forms but apply online.
The system was initiated to reduce congestion and end the old system where students travel from upcountry and outside the country to Kampala to pick application forms and at the end some are not considered.
However it seems like the system has not been efficiently utilized as the number of applicants swell day by day. "The online admission system procedure is not known therefore we cannot risk applying online without an assurance of being admitted," said an angry applicant.
As early as 7:00am, students had lined up to pick the forms while others submitting the filled forms.
Applicants who arrived in the afternoon were angered by the queues and left the university without getting the forms.
"I hope to be at the university as early as 6:30 to submit my forms because I have to go back to Arua tomorrow because I cannot afford accommodation in Kampala," said Ms Fatimah Nafse from Arua.
Other applicants vowed to submit filled in forms at a later date with reduced congestion.
According to the notice, the college of health sciences will admit 249 students, up from 139 last year.
The courses with the highest number of vacancies at the college include environmental health sciences, medicine and surgery, and bio-medical engineering.
Observing the students apply, many of them wanted the Journalism and Communication course in the Arts.
About 9,300 students are expected to apply for courses at Makerere University Business School (MUBS) in Nakawa about 2 km east of the city center while upcountry campuses in Jinja (Eastern Uganda) and Fort-Portal (Western Uganda), will take about 1,000 students each.
However, Bachelor of Arts under the College of Humanities has the highest number of slots, followed by Business Administration, Education, Information Technology and Social Sciences.
To qualify for admission, a student ought to have an O' Level certificate or its equivalent and at least two principal passes obtained at the same sitting of A' level examinations.
Alternatively, one can be admitted through the diploma scheme if they hold at least a second class or credit diploma relevant to the course.
Students who got grades X, Y, Z, 7 and 9 in O'level and those with Class Three diplomas are ineligible.
Both Ugandans and international applicants turned up to pick admissions seeking to further their education at the 87-year-old institution before the expiry of the deadline.
The University announced about 29,800 undergraduate vacancies. With the application fee doubled from Ushs 25,000 ($ 10) top Ushs 50,000 ($ 20), it has not reduced the turn up of the students but instead increased. The increase in the application fee has been inferred to an increase in the cost of processing admissions.
The university fees have, however, remained unchanged as students will follow the current fees structure. Queues were witnessed at the university's Senate building as well as Stanbic and Dfcu banks to bank the application fee and pick the forms.
Application forms are issued at the university's Senate building Senate Building which houses administrative offices.
Early this year Makerere University introduced online admissions. With the system applicants seeking to join the university and its affiliate colleges and schools do not need to queue to hand in their application forms but apply online.
The system was initiated to reduce congestion and end the old system where students travel from upcountry and outside the country to Kampala to pick application forms and at the end some are not considered.
However it seems like the system has not been efficiently utilized as the number of applicants swell day by day. "The online admission system procedure is not known therefore we cannot risk applying online without an assurance of being admitted," said an angry applicant.
As early as 7:00am, students had lined up to pick the forms while others submitting the filled forms.
Applicants who arrived in the afternoon were angered by the queues and left the university without getting the forms.
"I hope to be at the university as early as 6:30 to submit my forms because I have to go back to Arua tomorrow because I cannot afford accommodation in Kampala," said Ms Fatimah Nafse from Arua.
Other applicants vowed to submit filled in forms at a later date with reduced congestion.
According to the notice, the college of health sciences will admit 249 students, up from 139 last year.
The courses with the highest number of vacancies at the college include environmental health sciences, medicine and surgery, and bio-medical engineering.
Observing the students apply, many of them wanted the Journalism and Communication course in the Arts.
About 9,300 students are expected to apply for courses at Makerere University Business School (MUBS) in Nakawa about 2 km east of the city center while upcountry campuses in Jinja (Eastern Uganda) and Fort-Portal (Western Uganda), will take about 1,000 students each.
However, Bachelor of Arts under the College of Humanities has the highest number of slots, followed by Business Administration, Education, Information Technology and Social Sciences.
To qualify for admission, a student ought to have an O' Level certificate or its equivalent and at least two principal passes obtained at the same sitting of A' level examinations.
Alternatively, one can be admitted through the diploma scheme if they hold at least a second class or credit diploma relevant to the course.
Students who got grades X, Y, Z, 7 and 9 in O'level and those with Class Three diplomas are ineligible.
Wal-Mart gets first foothold in Africa
Wal-Mart, the world's biggest retailer, has gained its first foothold in Africa despite fierce opposition from trade unions.
South Africa's competition tribunal approved the multinational corporation's $2.4bn (£1.5bn) bid for Massmart, which has 288 stores in South Africa and a dozen other African countries, without conditions that could have jeopardised the deal.
The move clears the way for Walmart in a fourth continent, having already aggressively swept through America, Asia and Europe.
Supporters of the deal saw it as a vote of confidence in Africa's economic growth and proof that South Africa is "open for business".
But the country's powerful trade unions condemned it as likely to drive down wages and cost jobs, warning that they could respond with demonstrations, strike action and "the mother of all boycotts".
The deal has been seen as a test case for foreign investment in South Africa, which is home to the continent's deepest capital markets but where unions also hold huge political influence.
Walmart has made inroads into Brazil, China and Mexico but faced unusually strong resistance to its bid for a 51% stake in Massmart, a discount retailer that sells everything from alcohol to televisions.
The competition tribunal said that it had approved the deal, with the stipulation that Walmart must not cut jobs for two years and must work to develop local suppliers. Massmart must also "give preference" to re-employing 500 workers fired last year.
"The merging parties contend that the merger will indeed be good for competition by bringing lower prices and additional choice to South African consumers," the tribunal said. "We accept that this is a likely outcome of the merger based on Walmart's history in bringing about lower prices.
"However, the extent of this consumer benefit is by no means clear - Walmart itself has not been able to put a number to this claim, only that it is likely."
Three government departments and the unions had lined up against the deal, asking the tribunal to impose targets for local procurement and a freeze on job cuts. But the Arkansas-based retail group, which owns Britain's Asda supermarkets, had warned that it might walk away from the negotiations.
The government and unions are concerned about Walmart's global supply network which, they argue, could lead to a flood of cheap imports, sparking job losses and squeezing local suppliers. Unemployment in South Africa, one of the world's most unequal societies, rose to 25% in the first quarter this year.
Patrick Craven, spokesman for the Congress of South African Trade Unions, said: "Overall we think it's a victory for Walmart and we shall be continuing our campaign against the takeover of the Massmart stores. We believe all the reasons for that campaign are still valid."
He added: "Trade unions all around the world have been campaigning against Walmart. Walmart are a notoriously bad employer. Even in America there are campaigns against it in New York and Washington. They pay their workers low wages, they ban trade unions wherever they can get away with it.
"At the very time we're trying to create jobs in this country on a massive scale, we're going to see jobs disappearing as a result of this Walmart takeover."
He warned that pickets, demonstrations, a boycott of Massmart stores and strike action were all options that would be considered by the union body, which is aligned to the governing African National Congress.
But Tim Harris, shadow trade and industry minister for the opposition Democratic Alliance, argued that Walmart would "promote much-needed competition in the retail sector - to the benefit of all South Africans experiencing the rising price of their basic necessities."
He added: "The approval of the deal also sends the signal that South Africa is open for business, despite the protectionist instincts of certain economic ministers.
South Africa's competition tribunal approved the multinational corporation's $2.4bn (£1.5bn) bid for Massmart, which has 288 stores in South Africa and a dozen other African countries, without conditions that could have jeopardised the deal.
The move clears the way for Walmart in a fourth continent, having already aggressively swept through America, Asia and Europe.
Supporters of the deal saw it as a vote of confidence in Africa's economic growth and proof that South Africa is "open for business".
But the country's powerful trade unions condemned it as likely to drive down wages and cost jobs, warning that they could respond with demonstrations, strike action and "the mother of all boycotts".
The deal has been seen as a test case for foreign investment in South Africa, which is home to the continent's deepest capital markets but where unions also hold huge political influence.
Walmart has made inroads into Brazil, China and Mexico but faced unusually strong resistance to its bid for a 51% stake in Massmart, a discount retailer that sells everything from alcohol to televisions.
The competition tribunal said that it had approved the deal, with the stipulation that Walmart must not cut jobs for two years and must work to develop local suppliers. Massmart must also "give preference" to re-employing 500 workers fired last year.
"The merging parties contend that the merger will indeed be good for competition by bringing lower prices and additional choice to South African consumers," the tribunal said. "We accept that this is a likely outcome of the merger based on Walmart's history in bringing about lower prices.
"However, the extent of this consumer benefit is by no means clear - Walmart itself has not been able to put a number to this claim, only that it is likely."
Three government departments and the unions had lined up against the deal, asking the tribunal to impose targets for local procurement and a freeze on job cuts. But the Arkansas-based retail group, which owns Britain's Asda supermarkets, had warned that it might walk away from the negotiations.
The government and unions are concerned about Walmart's global supply network which, they argue, could lead to a flood of cheap imports, sparking job losses and squeezing local suppliers. Unemployment in South Africa, one of the world's most unequal societies, rose to 25% in the first quarter this year.
Patrick Craven, spokesman for the Congress of South African Trade Unions, said: "Overall we think it's a victory for Walmart and we shall be continuing our campaign against the takeover of the Massmart stores. We believe all the reasons for that campaign are still valid."
He added: "Trade unions all around the world have been campaigning against Walmart. Walmart are a notoriously bad employer. Even in America there are campaigns against it in New York and Washington. They pay their workers low wages, they ban trade unions wherever they can get away with it.
"At the very time we're trying to create jobs in this country on a massive scale, we're going to see jobs disappearing as a result of this Walmart takeover."
He warned that pickets, demonstrations, a boycott of Massmart stores and strike action were all options that would be considered by the union body, which is aligned to the governing African National Congress.
But Tim Harris, shadow trade and industry minister for the opposition Democratic Alliance, argued that Walmart would "promote much-needed competition in the retail sector - to the benefit of all South Africans experiencing the rising price of their basic necessities."
He added: "The approval of the deal also sends the signal that South Africa is open for business, despite the protectionist instincts of certain economic ministers.
Burundi holds communication fair
Burundi's Ministry of Information and Communication and the Telecommunications Regulation and Control Agency (ARCT) organised a four day trade fair where exhibitors showcased the latest products and services. Above is the Econet stand with Elsa Nibigira, the Head of marketing (right) and a colleague, Grace. Photo by Walter Isenged)
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