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.