Friday, August 31, 2012

UN wants new global currency to replace dollar

Crumpled dollar bill - UN wants new global currency to replace dollar

The dollar should be replaced with a global currency, the United Nations has said, proposing the biggest overhaul of the world's monetary system since the Second World War.In a radical report, the UN Conference on Trade and Development (UNCTAD) has said the system of currencies and capital rules which binds the world economy is not working properly, and was largely responsible for the financial and economic crises.

It added that the present system, under which the dollar acts as theworld's reserve currency , should be subject to a wholesale reconsideration.
Although a number of countries, including China and Russia, have suggested replacing the dollar as the world's reserve currency, the UNCTAD report is the first time a major multinational institution has posited such a suggestion.
In essence, the report calls for a new Bretton Woods-style system of managed international exchange rates, meaning central banks would be forced to intervene and either support or push down their currencies depending on how the rest of the world economy is behaving.
The proposals would also imply that surplus nations such as China and Germany should stimulate their economies further in order to cut their own imbalances, rather than, as in the present system, deficit nations such as the UK and US having to take the main burden of readjustment.

Tuesday, August 21, 2012

Lapsset: Kenya hits the ground running

The design layout of three berths
KENYA HAS HIT THE ground running in the development of the second transport corridor. The seven component project, popularly known as Lamu Port-South Sudan- Ethiopia Transport corridor, Lapsset, has now entered the tendering stage. The government of Kenya has invited tenders for design and construction of first three of the 32- berth Lamu Port.
 The government funded project will cost an estimated  US$200 million. This figure has provided for allocated in the current (2012/2013) fiscal year’s budget.
Apart from this, the Kenyan president, Mwai Kibaki, is globe- trotting marketing Lapsset and the Konza Technocity to the world.
 The advertised tender is for the construction of one general cargo berth, one bulk cargo and a container berth at Manda Bay, Lamu. All will be dredged to depth of 18.5 Metres. Other works include; construction of a 113 Ha hard standing yard, Construction of; internal roads, Administration buildings, slipways and workshops for small crafts, and associated infrastructure such as water supply, storage and reticulation; Power and ICT infrastructure.
The three berths will be used to transport materials for the construction of other components of the Lamu South Sudan- Ethiopia Transport corridor (LAPSSET)\. These include; a high speed railway line,  a highway, a 1,260 KM of crude oil pipeline, a 980KM white oils pipeline, a 120,000 bpd refinery, a 32- berth sea port, three resort cities and two international airports.
Eliye Springs in Turkana One of the three Resort cities
The need for the development of a second transport corridor serve landlocked East Africa has been on the card for some time.  The two existing ports; namely the 26 berth Mombasa Port and the 10 berth Dar-es-salaam port, cannot cope with exports and imports activity in the region.
Consequently a number of proposals to remove this bottle neck were floated. Among these is the development of alternative transport corridors or improvement of the existing ones. The proposed routes include LAPSSET, the Juba- Gulu Kampala-Nairobi-Mombasa line, the Dar-Es-salaam-Isaka- Kigali- Bujumbura Railway Line, and the Tanga- Musoma –Uganda line.

Could Fossil Fuels pose a security risk in eastern Africa?

Guarding Crude oil Refinery in South Sudan.
SOUTH SUDAN vs.SUDAN,TANZANIA vs.MALAWI, KENYA vs SOMALIA.. There is a worrying growth of boundary disputes in eastern Africa. The quarrels, given what is at stake, pose a risk of violence in the region. The region has become significant producer fossil fuels. News of discovery of oil or LNG dominated the Pages in the first half- of this year. Visit

To date, an estimated 100 trillion cubic Feet (tcf), of recoverable LNG had been discovered in Tanzania and Mozambique. Kenya for the first time joined Uganda and South Sudan in the crude oil producing class. Kenya is also seeking for LNG for it is estimated that some 286 trillion cubic feet lie off the eastern Africa coast, Kenya included.

 Sadly, the frequent discoveries are rekindling long ignored boundary disputes in the region. Previously silent disputes , such as the Tanzania- Malawi and the Kenya-Somali maritime border are becoming loud and public. Few in these countries knew of the 50 year- old disputes. To many observers in the region, the only border dispute existed between the Sudans.

This dispute was, and still is, an attempt by Sudan to sabotage the independence of the South which impoverished Sudan. At her independence last year, South Sudan took with her 75 per of Sudan's oil output, leaving with a paltry 25 per cent or 125,000 barrels per day. Khartoum then sought to sabotage Juba by raising the cost-transporting crude from the South.

Basically the dispute is about how Khartoum can plug the financial hole left by the departure of the South which turned off the taps for some 350,000 barrels of crude a day. Before the South's independence, Sudan generated some US$15-US$20 billion a year in oil revenue. The cessation of the South reduced that to just about $3.5 billion to $5.0 billion a year depending on the world market prices. Khartoum had been reduced to a pauper by just a stroke of a pen. See
Does Kenya want a piece of Somalia?

However the boundaries disputes between Kenya and Somalia and between Tanzania and Malawi are surprising. Both are quarreling over Maritime boundaries of long ago. Both are arguing over where the border between them should be.

Kenya would like the maritime boundary to run due east from the point at which the two countries touch on land. However, Somalia would like the border to continue diagonally southeast into the ocean, following the border between the two countries on land.

For their part Tanzania and Malawi are arguing over the ownership of Lake Malawi, also known as Lake Nyasa in Tanzania. Malawi claims that the whole lake belongs to her according to colonial boundaries. Tanzania holds that half the Lake belongs to her.

EAC: How Tanzania is shooting herself at the foot

 President Jakaya Kikwete: Shadow boxing
Regional integration?

TANZANIA'S LAGGARD stance on integration in the region, is stymying their own country, analysts say. Its spirited attempt at sabotaging Kenya, has not paid off, they add. If anything, Tanzania is losing out.   Her efforts to sabotage Kenya are guised as efforts to protect her family jewels in Tanzania.
 Initially, her concerns were reasonable and beneficial to the country. She feared that her weak industry will be elbowed out of the market by imports from Kenya. This resulted in asymmetrical tax system in which Kenyan exports were taxed at 90 per cent discount while Tanzania and Uganda Exports came to Kenya tax free.
The result has been an impressive 319 % rise Tanzania’s exports to Kenya between 1996 and 2010.  Official data shows that Tanzanian exports to Kenya stood US$6.6 million in 1996 -the first full year of the operation of the EA Customs Union toUS$210.5 million in 2011. Such growth would not have been possible without some form of protection for the weak Tanzanian manufacturing sector.
 However, as the region sought to deepen its integration, Tanzania’s concerns graduated to “Kenya Phobia.” According to Kenyan officials, “Tanzanians always think the first beneficiary of any progress in the region is Kenya. So they simply reject things out of hand.”  And they are hurting their country’s interests.
A Kenyan Factory: Many shun investing in Tanzania
The latest step is her refusal to ratify discussion on the proposed political Union in the region due to the issue on Land. The proposed document wants the citizens of the East African common market to be free to own land anywhere in the bloc. No says Tanzania. Our land is for Tanzanians only. Last week, Tanzanian government officials minced no words: “some countries in East Africa are greedily eyeing our land. We shall not bulge,” they told the local media.
 According to Kenyan officials familiar with the negotiations, in Tanzanian parlance “other countries” means Kenya. Kenyan officials dismiss this as “Kenya phobia and myopic stance. They claim that Tanzania objects to every move that in their eyes could benefit Kenya.  For years, for instance, they objected to exports of Kenyan assembled vehicles saying they do not meet the rules of origin of the East African community. Other members of the Community accorded Kenyan assembled vehicles a preferential status. Tanzania finally relented after stalling for nearly a decade.

Toyota bids for Africa's largest PPP project

An oil pipeline: Bid in place for Africa's largest PPP project
TOYOTA TSUSHO, the investment arm of Toyota Motor Corporation of Japan, has bid for the construction of the US$3 billion, Juba-Lamu oil Pipeline. The pipeline will initially transport some 700,000 to one million barrels per day (bpd) of Sudanese crude to the Lamu Port in Kenya which is under construction. Eventually it is expected to transport crude from Kenya and Uganda to the Lamu port for export.
Apart from the 2000Km Pipeline, the bid also includes the construction “of an oil refinery, power stations, jetties and other infrastructure facilities” said Dennis Awori, Chairman-Toyota Kenya Ltd.
The bid, if successful, will be the largest PPP project in Africa. In a statement released this week, the company said it has proposed to develop the Pipeline on a Built-Operate and Transfer (BOT) basis on a 20 year concession.
The company is still doing a feasibility study of the project whose construction is expected to begin in June 2013. The construction is expected to last 18 months to the end of 2014.South Sudan expects to turn the tabs through Kenya come 2015. However, some analysts say that a project of this magnitude lasts three –years citing logistical and security concerns in the general area on which the pipeline is to be constructed.
Lamu-Juba Railway line: Next   in line 
Toyota Tsusho has also announced that the project could be expanded to include a pipeline to Uganda and another to Djibouti through Ethiopia. This would raise the cost of the entire project to US$5 billion. The proposal is apparently based on non-binding MOUs signed between South Sudan and Ethiopia to construct a pipeline to Djibouti through Ethiopia. South Sudan has already signed an agreement with Kenya for the construction of the 2000KM pipeline through Kenya to the Lamu Port.

Tanzanian Royalty Exploration Corp


Suite 404
1688 152nd Street, South Surrey
US - Map
Phone: 604-5367873
Fax: 604-5362529

Exchange: AMEX
Stock: Tanzanian Royalty Exploration Corp. (US)
Industry: Gold
Employees: 78

Tanzanian Royalty Exploration Corporation is a mineral resource company with exploration-stage properties, which engages in the acquisition of interests in and the exploration of natural resource properties. The Company’s main area of interest has been in the exploration of gold properties, with a primary focus on exploring for gold properties in Tanzania. The Company’s principal exploration properties are all located in the United Republic of Tanzania, Africa. The Buckreef Project is located in north central Tanzania immediately to the south of Lake Victoria, in the Mwanza Provincial District. The Kigosi Project area is principally located within the Kigosi Game Reserve controlled area. The Lunguya Property is located in the Kahama District of Tanzania. Its subsidiaries include Itetemia Mining Company Limited, Lunguya Mining Company Ltd., Tancan Mining Company Limited, Tanzania American International Development Corporation 2000 Limited and Buckreef Gold Company Limited.

Tanzania to Option Uranium Properties to Karoo Exploration

VANCOUVER , /CNW/ - Tanzania Minerals Corp. (the "Company" or " Tanzania ") (TZM.V) (FRANKFURT: CA87600X1087) is pleased to announce that it has entered into a non-binding Letter of Intent dated May 15, 2012 , with Karoo Exploration Corp. ("Karoo") whereby Karoo can acquire a 100% interest in certain mineral claims located in the Songea and Lindi regions of southern Tanzania (the "Property").  Karoo is a privately held mining company, incorporated under the laws of British Columbia.
Pursuant to the non-binding Letter of Intent, Tanzania will grant to Karoo the option to acquire a 100% interest in the Property (the "Option"), by issuing 1,200,000 common shares to Tanzania , and incurring exploration expenditures on the Property totaling $750,000 , all over a three year period.  Upon exercise of the Option, Karoo will grant to Tanzania a 2.0% NSR on the proceeds of any commercial production from the Property.  One-half of the NSR and a right of first refusal on the other half can be purchased by Karoo for a cash payment of $2,000,000 .  The other half of the NSR can be purchased by Karoo for a cash payment of $5,000,000 .
During the term of the Option, Tanzania will have the right to nominate 2 individuals to the board of Karoo.  It is anticipated that prior to exercise of the Option, Karoo will list its shares on a public stock exchange, or complete a transaction with an existing publically traded company. The transaction is conditional upon Tanzania entering into a definitive option agreement with Karoo.
For more information, contact Kal Matharu at (204) 942-3191.

Wednesday, April 18, 2012

Eastern Africa coast: An emerging fossil fuels giant

An oil rig. These monsters discover oil from the earth's bowels
THE ENTIRE EASTERN Africa coast is emerging as a fossils fuels giant. A flurry of finds of commercially viable deposits of oil and natural gas has spawned intense activity in exploration of these resources.

In the last decade or so, commercially viable oil deposits were found in South Sudan and Uganda. Natural gas has been found in Tanzania  while in Kenya an oil find announced this week, is awaiting commercial verification. There are reports of viable oil deposits in lawless Somalia.

Since it takes about three years or so to verify commercial viability, the implication here is by 2016/17, this region of an estimated population of 200 million people will be a major player in the world’s energy market. An exploration mapping high potential areas in Kenya, indicates that eastern Africa could rival some middle east oil producers.

The frequent discoveries raise confidence on the potential of the region’s fossil oil’s exploration. This is expected to attract more investments into exploration in eastern Africa. So far an estimated US$8 billion has been sunk in oil exploration since 2006. However, this figure is expected to rise as more explorers seek licenses to explore for oil and gas deposits.

 Tanzania  for example, will hold an oil exploration licensing round for 16 offshore blocks starting in September this year, reported Reuters. Some firms spend an estimated US$2 million a day in oil exploration in east Africa, say sources in the energy sector.   Tullow oil Plc, which discovered oil in Uganda, Kenya and Ghana is said to have sunk an estimated US$800 million in Uganda.

 It is not clear how much has sunk in Kenya where it has struck oil at the first well. The find, what they describe as 20 metres of net oil, was struck at 1,041 metres way below the expected depth of 2,700 metres. The company says it will still drill up to 2,700 metres.

Apart from spending on exploration, more investment is expected in construction of infrastructure, Including Refineries, Oil Pipeline, railroads, roads and other related infrastructure. See  .  In Uganda, reported the East African, the consortium led by Tullow oil Plc will sink another US$10 billion to build such infrastructure. Tanzania will invest some US$1.1 billion to build a gas transportation pipeline from Songo  Songo wells to Dar-Es-salaam, the capital city.

This is how to make Oil and Gas windfall a boon-Experts

Investing in Roads, housing and Water and
 electricity supplies among others 

would  benefit every one 

 COMMENTS IN RESPONSE to  my  or comments on the subject matter is positive that well managed oil  and gas windfall can  boost development in east Africa. Many have suggested ways in which to turn the windfalls into a boon for the region. here is a synthesis of their views

One of the commentators, the President of the Africa Development Bank, AfDB, Donald Kaberuka is poignant.  He advised east Africa to avoid increasing recurrent expenditure and instead use the windfall on development expenditure. Mr. Kaberuka was speaking in an interview with the wire service, Reuters He argued that increasing recurrent expenditure, especially through sharp increases of public sector salaries will lead to high inflation and eventually conflict.

Economists and oil industry experts in Nairobi agree with this view. They argue that, the public sector is the single largest employer in east Africa. Sharp increases of public sector salaries, experts argue, will increase domestic demand for goods and services which in turn lead to high rates of inflation.

This is how it works: currently, there is a given stock of goods and services in the region. This stock ranges from food, to housing to schools and health facilities, to locally manufactured consumers goods, to power plants, oil refineries roads, railroads  similar infrastructure. In the short-run this stock is more or less fixed as it depends on the availability of other factors. To increase this stock will require expansion of production capacity and the infrastructure to produce and distribute the goods and services equitably.

Tanzania Stalls EA Monetary Union negotiations

President Jakaya Mrisho kikwete:
Combative  president combative Country?

Tanzanians have, as usual, stalled the negotiations on the creation of Monetary Union inEast Africa. Media reports say that the Tanzanian delegation to the task force on the creation of a monetary union, at EntebbeUganda, opposed every item in the background Paper.

The background paper will eventually become the protocol for the East African Monetary Union.  At the table for discussion was Article 24 which proposes a universal monetary and fiscal policy.

President Kibaki of Kenya:
The Giant of the region worrying Tanzania
The delegation also stalled article 17, which proposes that member states coordinate tax policies at the community level. This will require that partner states to disclose fiscal policies to other partner states.

These two proposals mean that member-states will have to cede some of their sovereign power to a regional authority such as an East African Central Bank and common Customs Authority.

The refusal by the Tanzanian delegation to discuss these issues did not surprise many Observers in the region. Tanzanian delegations have always stalled discussion on the creation of East African Common Market right from the start. At times, said a delegate familiar with Tanzanian attitude, “they just flatly refuse to discuss an issue, declaring an imaginary dispute.”

It is for this reason that the integration process has always virtually been forced downTanzania’s throat, says a source familiar with the process.

Beginning with the East African co-operation in the 1995 to the customs Union in 2005 and the East African Common Market in 2010, Tanzania is the reluctant partner, said the source. In fact, she agreed to the East African Common Market protocol when it became clear that other members were ready to leave her out.

Friday, March 16, 2012

Remove trade barriers, Kibaki urges EAC ministers

East Africa Community Musa Sirma (right) and EAC secretary general Richard Sezibera address a news conference at Laico Regency March 16, 2012. President Kibaki urged the EAC ministers to urgently remove barriers that hinder the free movement of people and goods within the region. PHOEBE OKALL

East Africa Community Musa Sirma (right) and EAC secretary general Richard Sezibera address a news conference at Laico Regency March 16, 2012. President Kibaki urged the EAC ministers to urgently remove barriers that hinder the free movement of people and goods within the region. PHOEBE OKALL 
President Kibaki has urged East Africa Community ministers to urgently remove barriers that hinder the free movement of people and goods within the region.
President Kibaki noted that some of the non-tariff barriers were so cumbersome that they inhibited intra-EAC trade.
"We cannot fully boast of regional integration when our people still cannot interact freely and do business without restrictions,” President Kibaki said Friday during a meeting with EAC ministers, who paid him a courtesy call at his Harambee House office.
The Head of State welcomed the decision that Kenyan trucks entering Tanzania will no longer be charged Sh16,000.

Non-bank primary dealers set for June in Uganda

Mutebile pointed out that demand for bonds and bills was more than twice that recorded in the years 2009 to 2011

By Samuel Sanya
THE central bank has announced a wave of reforms that will see non-bank institutions participate directly in Uganda’s thriving debt market come June this year.
Yields on Uganda’s three year treasury instruments have risen as high as 21% as the Bank of Uganda (BoU) battles high inflation through reducing money in circulation.
“The enhanced Central Securities Depository system is expected to go live by June this year….the debt reforms that will lead to the introduction of non-bank broker/dealers in the debt market are on-going,” said Emanuel Mutebile the BoU governor.
He was speaking at the Primary Dealer of the year award ceremony in Kampala where Stanbic Bank Uganda was pronounced winner for the year 2011. 
Mutebile pointed out that demand for bonds and bills was more than twice that recorded in the years 2009 to 2011 on the primary market with demand on the secondary market growing by 35%.
Uganda currently uses a primary dealer system where six banks are authorized to compete for treasury instruments from the central bank, later reselling the same to the public on the secondary market.
The Central bank intends to introduce a bond calendar to improve predictability and regularize debt issuance, in addition to upgrades of the banks Reuters system, website and Central Securities Depository system.
The changes will see the introduction of e-bidding, automated repo auctions, on-line secondary market trading, to enhance transparency while minimizing price distortions in the market.
Stephen Kaboyo, the BoU director for financial markets said that the reforms will enable investors to plan their cash flows better and diversify their investments.
He noted that brokerage firms, and pension funds have already expressed interest in joining the six banks in the primary dealer system.
Philip Odera, the Stanbic bank boss hailed the changes saying that reforms will widen and deepen participation in Uganda’s debt market, strengthening the economy in all ways.

Wednesday, March 14, 2012

Private sector keen on EAC trade

Workers prepare to load a cargo container on a ferry at Port Bell in Luzira. EAC recently launched a border management project to cut the cost of doing business in the region

By David Ssempijja
WITH the current hindrances to the flow of trade within the East African Community (EAC), there is a need to strengthen partnerships between private and public sectors to improve the region’s investment climate, a regional forum has observed.
A two-day investment forum held last week at Silver Springs Hotel in Kampala to define a regional framework for investment incentives for the EAC, attributed the persistent barriers to trade to the absence of a strong public-private partnership in trade promotion initiatives.
The chairman of the Uganda Allied Chamber of Commerce, Industry and Agriculture (UACCIA), Chris Kyereere, told a press conference that the forum resolved to lobby EAC governments to promote the presence of the private sector arm in dealing with issues of trade facilitation.
Facilitating trade is about streamlining and simplifying international trade procedures to allow easier flow of goods national and international levels.
The private sector contends that there are overwhelming trade related tasks that the EAC governments cannot effectively handle in isolation of the private sector.
“We need to see governments getting more involved in giving fair contracts to private companies, ensuring that firms born within the EAC are prioritised over those from overseas to build the capacity of those locally established,” Kyereere said.
Amos Tindyebwa, an international consultant working with the Trade and Business Development Centre, noted that the private sector development strategy adopted in 2006 by the EAC had not adequately taken the public- private partnership approach into account to improve the region’s investment climate.

Tuesday, February 28, 2012

Tanzania Minerals Corp. provides operational update and announces grant of incentive stock options and change in corporate secretarial staff

VANCOUVER, Feb. 8, 2012 /CNW/ - Tanzania Minerals Corp. (the "Company"), (TSXV:TZM) (FRANKFURT: TM0.F) is pleased to provide an operational update with respect to exploration at its Mrangi and Mrangi South gold properties in the Lake Victoria Goldfields area of Tanzania.  Fourteen diamond drillholes, approximately 200 metres depth each, for a total of 2,673 metres, and 58 reverse circulation for a total depth of 8,598 metres have been drilled to date.  Drilling was conducted to determine the cause of arsenic and gold soil anomalies detected by traditional soil geochemistry exploration and multiple element anomalies (e.g., As, Cu, Zn) detected using a portable XRF unit over the same area.  The drilling reported in this release focused on secondary priority targets on the licence related to a strike extension of the Phoenix mine vein swarm and metal anomalism.  Results from initial drilling were reported in a press release dated October 14th, 2011.  Preliminary gold exploration on four licences in the Kagera Region has also been initiated.
Kal Matharu, CEO of Tanzania Minerals Corp. commented, "I am pleased with the latest results of our exploration program and the identification of the two new mineralized zones encountered.  I look forward to receiving the next assay results from the drilling program to test the lateral extent of the system."  He added, "Initial exploration on our Mrangi South and four Kagera Region gold licences is encouraging, and we eagerly await the results of the soil and lithogeochemical sampling programs."

Aminex reveals new gas find in Tanzania - Aminex has revealed a gas discovery at the Ntorya-1 exploration well in the Ruvuma Basin onshore in Tanzania. 

Aminex said that further to its update on 15 February, which reported strong gas shows in a good quality Cretaceous reservoir sand at a depth of 2,660 metres, the open hole has now been logged from total depth of 2,750 metres across the zone of interest. 

Electric logs show a gross sand interval of 25 metres between 2,660 metres and 2,685 metres with a three-metre net gas bearing pay zone in sandstones with 20% porosity at the top and a 16.5 metre thick lower sandstone interval with further possible gas pay. 

Proving the presence of reservoired hydrocarbons in Cretaceous sands in Ntorya-1 opens up the potential for additional plays in thick Mesozoic sands encountered by Aminex and partners in the Likonde-1 well just 14 kilometres north of the Ntorya-1 well. 

Tanzania securities to bail out Dar es Salaam stock market

DAR ES SALAAM, TANZANIA - Tanzania's Dar es Salaam Stock Exchange (DSE) trading are expected to pick up because yields for fixed income securities and money market instruments keep on falling, thanks to easing tight money stance in the economy.
The stock exchange turnover last week dipped by almost 78% as money investors eyeing risk free government securities that in recently days offered handsome yields of between 13% and 18%.
On average stocks' dividend yields per year is around 10%. The Tanzania Securities Business Analyst Joel Nkya said, this week they anticipate improvement in the level of stocks activities following signs of coming down of treasury bills and bonds at primary market.
"Yields for fixed income securities and money market instruments keep on falling amid easing of the tight liquidity policy by the centre bank," said Mr. Nkya on the stock brokerage firm weekly report.

Tanzania NSSF to float shares to raise funds

Photo/Adam Ihucha  NSSF Director General, Dr Ramadhan Dau: He said the pension fund will withhold some shares for its members.
Photo/Adam Ihucha NSSF Director General, Dr Ramadhan Dau: He said the pension fund will withhold some shares for its members.  
By ADAM IHUCHA Special Correspondent

Tanzania’s National Social Security Fund plans to sell shares in several companies it has a stake in.It is seeking to raise more funds to meet rising pension obligations and expand its portfolio.
The public pension manager says it will float shares at the Dar es Salaam Stock Exchange, giving investors a chance to own stocks in the companies.
The Fund is working out the details of which companies it is likely to divest from in an exercise sources said could happen later this year or by mid 2013.
Ramadhan Dau, NSSF Director General, said his team is currently finalising details on the shares to float and the amount of money it expects to raise before seeking approvals from market regulators.

Tanzania, Uganda in big oil & gas deals: British firm to invest $20b in Tanzania gas

The Tanzania Minister for Energy and Minerals, Mr William Ngeleja inaugurates the gas plant in Ubungo Dar es Salaam recently. (Photo by Leonard Magomba)
The Tanzania Minister for Energy and Minerals, Mr William Ngeleja inaugurates the gas plant in Ubungo Dar es Salaam recently. (Photo by Leonard Magomba)

DAR ES SALAAM, TANZANIA - Massive  discoveries of natural gas to the offshore of Tanzania have attracted a number of international oil and gas explorers to venture into exploration project.
According to British Gas International (BGI), appraisal work showed that the offshore Tanzania contained about 3 trillion cubic feet of natural gas in the southern part of the country.
A British based firm, BGI, last week announced a massive investment plan in gas and to the Tanzanian economy as President Jakaya Kikwete said the government would make sure that the deal benefits both Tanzanians and investors.
The delegation of British investors which headed by the chairman of BGI, Sir Robert Wilson, last week briefed President Kikwete on a plan to put US$10 to US$20 billion in the economy to develop infrastructure to exploit the country's huge gas reserves.
"We are planning to invest between US$10b and US$20b in second half of this decade in gas and the Tanzanian economy," said Sir Wilson and adding, "Tanzania should prepare its economy to handle such an amount of money."
Wilson said the company has discovered huge reserves of natural gas in three wells including a deepwater one which were drilled in 2009 and last year in the Indian Ocean.

Tanzania Stock Market Commentary – Week Ending February 17, 2012

The Dar ALSI edged up 71bps to 1,310.3. The most actively traded stocks were NMB, Tanzania Breweries (+13.2% to 2,400) and CRDB Bank. The week’s top and only gainer was Tanzania Breweries. All other counters remained flat.
On the economic front, Tanzania’s year-on-year inflation rate for the month of January came in at 19.7%. This barely a relief from the inflation rate of 19.8% for the month of December.  Easing of inflationary pressure in the country as has been seen in the other East African countries may come much slower, with an expected rise in electricity costs of about 40%.
In company news, gold production in Tanzania by Africa Barrick Gold (ABG) fell by 2% in 2011 to 688,000 ounces. According to the company’s management the cost of production went up by 22% to USD 692 per ounce on the back of higher energy and labour costs. ABG projects gold production in 2012 to come in at between 675,000-725,000 ounces. The company is also considering investments in West and Northeast Africa through mergers and acquisition.

Tanzania Stock Market Commentary – Week Ending February 3, 2012

The Dar ALSI went up marginally by 5bps during the week to end at 1299.0. The week’s top trader was Twiga which accounted for 83% of the week’s turnover of TZS 1.3bn (USD 0.8m). Other actively traded counters were NMB, Simba Cement (-0.8% to TZS 2380), Tanzania Breweries (+1.0% to TZS 2060) and CRDB Bank. The week’s top gainers were Swissport (+3.6% to TZS 870) and Tanzania Breweries. Simba Cement was the week’s only declining stock.
In economic news, The IMF has forecast a decline in inflation to 9% in June, as a result of an expected drop in fuel prices and good harvests. High food and fuel prices resulted in inflation escalating to 19.8% as at December 2011. The IMF is advocating for tightening of the monetary and fiscal policies to aid in lowering of inflation. Economic growth is projected to ease to 6% on the back of power outages and a slowdown in the global economy.
Tanzania expects to make major commercial discoveries of natural gas over the next five years. The government is putting in place strategies to facilitate investments in this industry.

Too Rich, Too Soon

Volatility Rising: How to Hedge the 2012 Rally

Volatility Rising: How to Hedge the 2012 Rally

If you've caught the explosive rally since late last year you're left with a high class problem: how to lock in gains without incurring short-term gains tax or leaving yourself out of the market when stocks are still rising.More »Volatility Rising: How to Hedge the 2012 Rally

Wednesday, January 11, 2012

Tanzania sees inflation in single figures by mid 2012

NAIROBI (Reuters) - Tanzania expects its year-on-year rate of inflation will fall to single digits by June this year from 19.2 percent in November, the east African country's president said. "We are still hopeful that our economy will grow at around 7 percent and that inflation will be brought down to single digits by June, 2012," President Jakaya Kikwete said in a statement released on Wednesday.