[Kenya and Tanzania have been urged to take tough action against illegal immigrants from the Horn of Africa, some of whom could be a threat to security in the region.]

BURUNDI :

Le Cinoche à l’heure de la fête de l’amitié Burundi-Suisse

www.journaldujura.ch/04.07.11

La traditionnelle fête africaine prévôtoise, organisée par l’Association des amitiés Burundi-Suisse et par le Cinoche, s’est déroulée samedi dès 17h30 et jusqu’au bout de la nuit.

La manifestation, qui se tient chaque année à la même époque, a démarré avec la projection du film «Africa United», à laquelle une quarantaine de personnes ont assisté.

La soirée s’est poursuivie par un repas au cours duquel le public nombreux a eu l’occasion de goûter aux saveurs burundaises, en particulier aux brochettes Tanganyika, qui tirent leur nom d’un des grands lacs d’Afrique. Autres mets au menu, des beignets et des samboussas qui ont su ravir les papilles des plus gourmandes.

RWANDA :

Bank of Kigali floats 45% shares

Monday, 04 July 2011 / Eugene Rugambwa /www.busiweek.com

.KIGALI, RWANDA- Bank of Kigali Limited has put on market its 45% shares for the public in an effort to increase its capital base.

The offer has been opened to investors of all nationalities as the government offers 20% of its share holding while another 25% new shares will be created and to be listed on Rwanda Stock Exchange end August.

The 45% shares represent 300, 304, 400 shares of the total 667, 337, 000 shares. The government is offering over 133, 467, 400 shares while the bank of Kigali offers 166, 837, 000 shares.

The Bank expects to earn an additional capital base of over Rwf 37.5bn (US $ 62. 9m) if all 45% shares are successfully sold.

Each share cost Rwf 125 (US $ 0.209732) and each slot of shares is supposed to be 100 shares.

Investors from the East Africa can apply for the 82,591,440 shares under a sub-pool and foreign investors beyond EA can apply for shares under the international pool.

During the initial public offer (IPO) late last week, the minister of Finance John Rwangombwa said that development of the capital market in Rwanda is a deliberate strategy to enhance the long term capital formation.

Rwangombwa who unsealed the Bank’s IPO said that government is keen to create the culture of savings and investment through wide spread ownership of shares and other financial assets in Rwanda.

The Bank’s Managing Director James Gatera told the press earlier that the selling of these shares will help them execute their strategies of evolving into a universal bank, with high capacity electronic banking channels, fund the growth and reduce the asset/liability maturity gap.

The government is also planning to sell its shares in MTN Rwanda and expects to raise Rwf25 billion(US $ 41.9m) from both bank of Kigali and the latter.

This is government’s move to encourage private equity investment among Rwanda’s citizenry and to promote development of the local capital markets.

The government embarked on privatization programme of state owned enterprises to reduce the shares it has in public companies thus alleviating the financial burden on its resources through the elimination of subsidies and state investment.

RDC CONGO:

Première visite en RDC pour le nouveau ministre des Français de l’étranger

(AFP)/04072011

PARIS — Le nouveau secrétaire d’Etat chargé des Français de l’étranger, l’ancien judoka David Douillet nommé à cette fonction mercredi dernier, effectue dimanche et lundi sa première visite à l’étranger en RD Congo, a indiqué le ministère des Affaires étrangères.

“Pour sa première visite à l’étranger, David Douillet, secrétaire d’Etat chargé des Français de l’étranger, se rend aujourd’hui en République Démocratique du Congo (RDC) où il inaugurera la nouvelle ambassade de France à Kinshasa”, indique le Quai d’Orsay.

Lors de cette visite, M. Douillet aura notamment un entretien avec le ministre congolais des Affaires étrangères et de la Coopération Alexis Thambwe Mwamba et rencontrera les représentants de la communauté française qui compte plus de 2.000 ressortissants.

“Pays francophone de première importance, la RDC accueille la 37ème session de l’Assemblée parlementaire de la Francophonie”, souligne le ministère.

Le secrétaire d’Etat se rendra ensuite en Afrique du Sud pour y soutenir, aux côtés du Premier ministre François Fillon, la candidature d’Annecy aux Jeux Olympiques d’hiver de 2018. Le chef du gouvernement conduira la délégation française, accompagné de la ministre des Sports de Chantal Jouanno.

UGANDA :

Ugandan officials defy EAC rules

Monday, 04 July 2011 /David Muwanga ./ www.busiweek.com

NAMANGA, TANZANIA – Ugandan Immigration officials at the border posts are not giving travelers outside Uganda the required six months as required by the East African Community Common Market Protocol.

According to Regulation 5 of the Protocol on the Free Movement of Persons, a citizen of a partner state who seeks to enter, transit or exit a territory of another partner state, has to present a valid common standard travel document or a national identity card where a partner state has agreed to use machine readable and electronic national identity cards as a travel document.

Upon fulfillment of the requirements, a person is issued with a pass which entitles that citizen to enter into the territory of the host partner state and stay for a period of six months.

However, due to the complicated processes and the many requirements of acquiring a passport and national identity cards which have only been introduced by Kenya and Rwanda, the other partner states citizens of Uganda, Tanzania and Burundi are mostly using temporary movement permits which they get at the border posts like Busia in Uganda at a cost of about $50.

The temporary movement permit issued at the border mentions your name, where you are coming from and going, purpose of visit and validity.

“For us in Tanzania we offer the temporary permits free of charge for one year and it is only when it exceeds one year that one is required to pay,” said the Tanzanian Officer in charge of the Namanga Immigration station Albert Kishe.

A traveler from Uganda to Tanzania who talked to East African Business Week at Namanga said that she paid Ush5000 ($2) to get the temporary movement permit at Busia border post.

The validity of her document is only 30 days as offered by the immigration officer at Busia.

“At Namanga we cannot give a Ugandan citizen more time which is beyond the validity of the 30 days offered by the immigration officer at Busia. It is them who limit Ugandan citizens on the time they should stay in another partner state,” he told journalists at Namanga.

“They are supposed to give an East African Citizen three to six months although the Kenya and Tanzania governments extended this period to one year aimed at encouraging East African integration process and this became effective after the operationalisation of the Common Market Protocol in July 1, 2010,” he explained.

Kishe said the protocol also allows a citizen whose pass is due to expire and who wishes to stay in a partner state longer to apply to the immigration office of the partner state for an extension of the pass before the expiry date.

“A pass issued under these regulations shall be issued without a fee,” he added.

Assistant Inspector, Immigration Azizi Kirondomara said they have received complaints from Tanzanians who travel to Kenya that they are issued with one week of one month stay even if they ask for the official six months when they are holding an East African Passport.

“The question is when the partner states’ governments will introduce a common travel document that serves all categories of citizens,” he asked.

He said most of Somali illegal immigrants use corrupt Kenyan and Tanzanian officials to allow them entry in their mission to transit to Mozambique and South Africa.

“Kenyans who are issued with temporary permits sell them to Somalis where they substitute their original photos and travel as owners of the documents,” he said.

“There have been cases where Kenyan passports have been issued to Somalis using forged supporting documents to the passport issuing authorities and use these to Mozambique and South Africa,” Kirondomara told journalists who visited the Namanga border post to assess the challenges facing Common Market Protocol in July 1, 2010.

Ugandan teachers used bomb as bell

July 4 2011 / Sapa-dpa

Addis Ababa – Students in a Ugandan school might not always have been happy to hear the sound of their school bell, but it turns out the alternative could have been much worse.

A group that travels the country to spread awareness about the dangers of unexploded mines – still a major problem in a region that has been scarred by conflicts over recent decades – was shocked to find that teachers were using an unexploded bomb as a school bell, reported the Daily Monitor on Sunday.

Worse, the bomb was still live, even as teachers at the primary school in south-western Uganda’s Kasese district banged it with a rock to call children to classes or assemblies, the newspaper reported.

About 700 children attend the school.

“It was a shock to us to find out that what the school was using as a bell was a bomb,” Wilson Bwambale, co-ordinator of the Anti-Mine Network Rwenzori, told the Daily Monitor. He said he noticed the problem when teachers used the bomb in his presence to call the students to order.

He said it was lucky that the teachers were only using a rock to bang on the bomb. Bwambale said the bomb was of a design that required a stronger force than impact with a rock to force detonation.

“Its head was still active, which means that if it is hit by a stronger force, it would explode instantly and cause untold destruction in the area. But we withdrew it to a cordoned place, where it will soon be exploded,” Bwambale said.

This was the second bomb found in a Ugandan school within six months. Teachers at a different school found students using an unexploded bomb as a toy earlier this year.

Uganda was ravaged by a massive civil war 20 years ago, with fighting between 1996 and 2002. Numerous bombs are believed to still be strewn throughout the region. – Sapa-dpa

Buganda now takes federo debate to UK

Written by Edris Kiggundu & Agencies / www.observer.ug/Sunday, 03 July 2011

As Beti Kamya, Lukyamuzi clash

Buganda recently renewed its demand for a federal system of governance during a conference in London, where prominent kingdom officials accused the government of deliberately ignoring Buganda’s demands. The London conference was organised by the Uganda Federal Confederates (UFC), a pressure group that campaigns for a federal system of governance in Uganda.

It was held at the University of East London, Docklands campus. Daniel Muliika, the former Katikkiro of Buganda, said the inadequate unitary system of governance, coupled with autocratic leaders, is the main cause of Uganda’s problems, such as corruption.

“The unitary system of governance does not take into account the role of traditional nations such as Bunyoro, Acholi and Buganda, among others, in building a coherent lasting peace,” he said.

Muliika, who presented a paper titled: ‘Embracing Federalism is Embracing Diversity’, added that the traditional entities that make up Uganda are never consulted by the central government on policies or bills, which causes friction between the traditional institutions and the government.

“Before the British colonialists left, they handed power back to Ugandans at a meeting in London at Lancaster House in 1961, where all the 14 nations that make up Uganda attended,” Muliika said.

“The names of these nations are inscribed at the entrance of the parliamentary building in Kampala; these are the true stakeholders and guardians of Uganda.”

The Leader of the Opposition, Nandala Mafabi, said without strong opposition parties, a free media and a healthy civil society, it is impossible to have good governance. He said these are all necessary checks against government abuses.

“In the case of Uganda, we have an arbitrary political system that leads to harassment of the political opposition. This places arbitrary obstacles in the way of ordinary citizens to hold free and fair elections,” Mafabi said.

The Budadiri West MP added that donors should use the tools at their disposal to promote good governance.

“Conditionality doesn’t have to be seen as a threat or a punishment. It should be a simple matter of good practice and common sense because no one would invest his or her family savings in a company with corrupt or bad management practices,” Mafabi said.

Kamya Vs Lukyamuzi

The conference had its interesting moments, like the exchange between the Rubaga South MP, John Ken Lukyamuzi, and Beti Kamya, president of the Uganda Federal Alliance (UFA). Lukyamuzi accused Kamya of hoodwinking Ugandans, pretending that she is opposing the government yet she is funded by President Museveni. Kamya, who looked disturbed by these accusations, shot back.

“It’s unfortunate for someone like Lukyamuzi to go ahead and level accusations against me even when he knows they are not true,” she said.

Kamya said the problem with most opposition leaders in Uganda is that they think Museveni is the problem, yet it is the system of governance that needs to be addressed.

Muliika criticised Kamya for turning UFA into a political party, arguing that it should have remained a pressure group. In her keynote speech, Carol Semanda, a trainee solicitor, said the aim of the conference was to consult on how Ugandans can take back ownership of their own country.

Muwanga Zaake, a senior lecturer at the University of Greenwich in London, said Buganda has been unfortunate in attracting the ire of Uganda’s dictators, who carefully circumvent the Buganda question.

“The Buganda question is truly a demand for fundamentals which constitute Buganda as a nation. Buganda is a multi-tribal nation. Yet, whenever someone wants to damage the federal debate, she or he scares people about tribalism and lies that Baganda will chase other nations out of Buganda,” Muwanga said.

Other speakers such as Salaamu Musumba, the FDC vice president for eastern Uganda, and Mustapha Semanda Magero, interim chairman of the Uganda Federal Confederates, urged Ugandans to continue assertively demanding better governance.

Norbert Mao (DP president), Olara Otunnu (UPC president), Erias Lukwago (Kampala Lord Mayor), Betty Nambooze (Mukono municipality MP), Ssemujju Nganda (Kyadondo East MP) and Hussein Kyanjo (Makindye West MP) sent apologies, having failed to attend.

ekiggundu@observer.ugThis e-mail address is being protected from spambots. You need JavaScript enabled to view it

Uganda hits $1.7b investments

Monday, 04 July 2011 / Eriosi Nantaba ./ www.busiweek.com

Kampala, Uganda – Uganda has registered planned investments worth US$1.7 billion over the last twelve months, a report by the Uganda Investment Authority (UIA) has showed.

This is a 5.6% increase compared to the year before when UIA registered investments worth $1.55 billion.

Addressing the press at the media centre in Kampala recently, the State minister for Privatization Mr. Aston Kajara revealed the figures while presenting the UIA performance report for the just concluded financial year.

“UIA licensed 337 projects worth $ 1.7 billion with a planned job creation of over 130,000 jobs compared to the 340 projects licensed last year worth $ 1.55 billion,” said Kajara.

The electricity and gas sector topped the list with the highest number of planned investments in the country. “The sector registered a total of $445 million with 75,547 jobs between June 2010 and July 2011,” he explained.

Following closely was the financial, insurance, real estate and business services sector which recorded a planned investment of $ 432 million, 15927 jobs and 94 projects.

Expressing his gratitude to UIA for the notable figures, the minister stressed the need for more emphasis on job creation and adherence to the objectives of the National Development Plan (NDP).

“Over 30,000 graduates are released from universities every year, therefore emphasis must be placed on vocational training and entrepreneurship skills development as a stepping stone for job creation,” he said.

According to the Private Sector Investment Survey funded by the Bank of Uganda and UIA, net employment increased by 5.2% from 119,791 employees to 127,589 employees with the highest figures recorded in the manufacturing sector.

“Manufacturing leads in employment creation due to a good number of people employed as both skilled and unskilled,” he said.

SOUTH AFRICA:

Poachers Killed 193 Rhinos in South Africa in First Six Months, WWF Says

By Nasreen Seria – /www.bloomberg.com/ Jul 4, 2011

South Africa, which has the world’s largest population of African rhinos, lost at least 193 of the animals to poaching in the first six months of the year, said WWF International, the conservation group.

At this pace, the number of rhinos poached may exceed the record 333 killed last year, the Gland, Switzerland-based group said in an e-mailed statement, citing figures from South Africa’s national parks department.

South Africa has made 123 arrests, with six convictions, for poaching in 2011, adding to last year’s 165 arrests and four convictions, WWF said. Swaziland, which borders South Africa, lost its first rhino to poaching in almost 20 years in June, raising concern that the crime may be spreading. Rhinos are poached for their horns, which are smuggled out of South Africa to Asia and used in traditional medicine.

“We cannot allow poaching to proliferate across rhino range countries,” Joseph Okori, coordinator of WWF’s African Rhino Program, said in the statement. “Swift prosecutions of wildlife crimes and strict sentences for perpetrators will serve as a deterrent to potential criminals. Poachers should be shown no leniency.”

Rhino poaching is an organized crime, with hunters sometimes using helicopters and automatic weapons, WWF said. Kruger National Park, which was established 113 years ago and spans about 2 million hectares, has been the hardest hit by poaching, losing 126 rhinos this year, adding to the 146 killed last year, WWF said.

SABMiller Plc (SAB) has helped fund the building of a DNA database for rhinos to help police track poachers. The DNA from captured rhino horns will help to link them to poaching incidents at wildlife parks, Cindy Harper, head of the Veterinary Genetics Laboratory that’s creating the database, said on June 22.

To contact the reporter on this story: Nasreen Seria in Johannesburg at nseria@bloomberg.net.

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net.

SOUTH AFRICA: Government gets lowest rating on xenophobia

4 July 2011 /IRIN

JOHANNESBURG, 4 July 2011 (IRIN) – In a week that saw two Somali traders shot dead in Cape Town and two more in Port Elizabeth, the South African government’s handling of xenophobia received the lowest possible rating in a report by the African Peer Review Mechanism (APRM) Monitoring Project.

Three years after widespread violence against foreigners broke out across the country, evaluators from the Monitoring Project noted that the government had failed to prioritize the issue, and that “there is even an element of denialism on the part of some officials.”

Tara Polzer Ngwato, of the African Centre for Migration and Society (ACMS) at the University of Witwatersrand in Johannesburg, agreed with the assessment. “Government responses have been fragmented, poorly resourced and with limited political commitment,” despite a significant rise in attacks on foreign-owned shops in several provinces since the beginning of 2011.

The African Union introduced the APRM in 2003 as an instrument for improving governance and accountability. After agreeing to participate, countries identify their weaknesses and develop a National Programme of Action (NPoA) to address them.

The Monitoring Project, made up of civil society researchers and activists from the South African Institute of International Affairs (SAIIA), the Africa Governance Monitoring and Advocacy Project (AfriMAP), and the Centre for Policy Studies (CPS), evaluated the government’s track record on implementing its NPoA, and graded its progress on critical government issues.

Green is the highest rating, orange indicates some progress, and red little or no progress. Xenophobia was among seven areas given a red rating with others including corruption, poverty and unemployment. Successful management of elections got the only green rating.

Government initiatives fall short

South Africa’s NPoA did not mention xenophobia, but a section in an official review of APRM implementation released in January 2011 covered government actions to address the issue, including setting up a unit to counter xenophobia and a communications programme to promote greater harmony between citizens and foreign nationals.

However, the Monitoring Project report described the section as “poorly written with inadvertent repetition and… clearly assembled in a hurry”.

Several of the initiatives it listed have not been sustained or rolled out nationally; one, the Counter-Xenophobia Unit in the Department of Home Affairs, got off to “a bright start” according to the report, but “appears to have lost momentum”.

Sicel’mpilo Shange-Buthane, director of the Consortium for Refugees and Migrants in South Africa (CoRMSA), told IRIN that after doing some initial awareness-raising, the group had been renamed the Integration and Repatriation Unit, but under new leadership in the Home Affairs Department it had been reluctant to implement xenophobia-related programmes.

Polzer Ngwato commented that the Unit was severely understaffed, and the new name had narrowed its mandate to dealing only with refugees and asylum seekers.

An Inter-Ministerial Committee on Xenophobia, set up after the 2008 attacks, is no longer active and the drafting of a National Action Plan to address xenophobia started in 2009 has still not been finalized. “Various departments are involved in social cohesion campaigns but there’s no coordination in terms of what they’re doing,” said Shange-Buthane.

Political leaders implicated

There is no centralized system for monitoring and recording xenophobic violence, but in the first quarter of 2011 the Human Sciences Research Council tracked 20 deaths, 40 injuries, 200 foreign-owned shops looted and thousands displaced. One recent incident – the beating and stoning to death of a Zimbabwean national in an informal settlement outside Polokwane in the northern Limpopo Province – was followed by the arrest of a local ward councillor affiliated with the ruling African National Congress party for allegedly inciting the attack.

Local government officials have been implicated in several similar attacks in the last two years. Research by ACMS has identified competition for political and economic power in local communities as a key trigger of violence against foreigners.

“There are… many political leaders, along with much of the general population, who perceive foreigners to be a direct threat to citizen economic empowerment and service access, even though there is no evidence that this is in fact the case,” said Polzer Ngwato, noting recent comments by Maggie Maunye, who chairs the parliamentary oversight committee of the Department of Home Affairs.

A local newspaper, The Star, reported that during a briefing Maunye asked Home Affairs officials how much longer South Africa was going to allow foreigners to enter the country. “Is it not going to affect our resources, the economy of the country?” she was reported as saying.

“Here we have people who are living in poverty daily, people who are unemployed. We’ve never enjoyed our freedom as South Africans – we got it in 1994, and we had floods of refugees or undocumented people in the country.”

Tina Ghelli, spokesperson for the United Nations Refugee Agency (UNHCR) in South Africa, said a Protection Working Group, set up by civil society groups and UNHCR to provide an early warning system for potential xenophobic violence, worked closely with the South African Police Force’s Visible Policing Unit and had experienced some success in preventing attacks.

“They have been more responsive than in the past, but it hasn’t trickled down to the local police everywhere,” she told IRIN. “One of the big issues is… impunity – people think if they do something to a foreigner there are no repercussions.”

In a list of recommendations to the now inactive Inter-Ministerial Committee in June 2010, CoRMSA urged better access to justice for victims of xenophobic violence. “Perpetrators are often not held accountable, which results in a perception of impunity for crimes against foreign nationals.”

The APRM Monitoring Project report concludes that failing to address xenophobia in South Africa’s NPoA “indicates the ambivalence of government in recognizing and dealing with the issue as a priority, and in a systematic way. The disastrous consequences of May 2008 and subsequent outbreaks of violence are further testimony of this.”

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Princess ‘tried to flee three times’ Henry Samuel, Monaco

July 4, 2011. /Henry Samuel, Monaco/www.smh.com.au

Princess Charlene of Monaco tried to flee home to South Africa three times before her marriage to Prince Albert II, according to reports in French newspapers.

Fairytale turns sour

The couple’s glittering religious wedding drew crowds of thousands to the Mediterranean principality on Saturday and the guest list included a host of heads of state, European royals and stars of the fashion and sports world.

But sources cited by Le Journal du Dimanche said the former Charlene Wittstock, 33, tried to take refuge in her country’s embassy in Paris when she went to the French capital in May to try on her wedding dress.

Instead palace officials confiscated her passport and persuaded her to take part in the weekend’s nuptials.

Later that month she also tried to escape during the Monaco formula one grand prix, they alleged.

Then, last week, she allegedly had her passport confiscated en route to Nice airport via the helicopter service that runs regularly between Monaco and France.

The reports followed confirmation by palace sources while the wedding was in full swing that Prince Albert, 53, was due to have DNA tests because of claims by at least one woman that he had fathered another illegitimate child.

He already has a 19-year-old daughter and six-year-old son.

Le Journal du Dimanche quoted Monaco “policy advisers” among those discussing “two illegitimate children – one already born, the other to come”.

A French news agency said anonymous officials spoke of “the truth” of a reported falling out between the couple earlier in the week and of a probable demand that Prince Albert take a paternity test.

Despite all the talk of palace intrigue, residents of the low-tax haven are standing by the royal couple, who hosted a private marriage brunch yesterday and are due to fly to South Africa on honeymoon on Tuesday.

“When the most famous of bachelors gets married, naturally there are jealousies,” real-estate tycoon Michel Pastor said.

The Telegraph, London

Taximen taking to skies may be in for rough ride

July 4 2011 / www.iol.co.za/GCWALISILE KHANYILE

SOUTH AFRICA’S aviation industry is set for a fresh battle with the proposed entry into the sector by taxi bosses who are to launch their own airline come September 2011.

The entry by the South African National Taxi Council (Santaco), until this week an unlikely contender to the country’s skyline wars, can only mean cheaper airfares for South Africans reeling from the spiralling cost of living. But experts warn that the taximen may be in for a bumpy ride.

Most Kulula and 1Time customers are first-time travellers, showing there is great potential for low-cost airlines to boom, probably one of the reasons Santaco decided to enter this market. As happened when Kulula and 1Time entered the market, price wars are expected to follow Santaco’s arrival.

Santaco’s business development officer Nkululeko Buthelezi says their airline will provide the lowest prices. “We have not yet finalised the prices but the highest price will not be more than R700. We will be targeting first-time flyers, who could not afford plane tickets before,” Buthelezi said.

He added that although the prices will be affordable, they will be a bit higher than taxi fares, because they don’t want to compete with taxis.

He said there was no need to worry, because no taxi driver will fly the aircraft – at least not in the near future.

Santaco Airline will operate from Lanseria Airport to Bisho Airport in the Eastern Cape and Cape Town International Airport, to make trips shorter for their customers who normally travel long distances on the road.

Buthelezi said they will first operate with only two flights and the number will increase based on a demand for their services.

“Shuttle services will be free to Santaco Airline commuters. Our passengers will be taken from the taxi rank to the airport for free and when they reach their destinations they will again be taken from the airport to a taxi rank,” Buthelezi said, adding that they planned to sell plane tickets in taxi ranks to make tickets easily accessible.

However, Standard Bank economist Johan Botha warns that Santaco Airline might be in for a rough ride as other airlines are losing rather than making profits.

“This is a very difficult industry. Profits are very low. It is going to take more than just low ticket prices to get clients. People are currently cutting back on things that are not necessary and flying is one of them,” Botha said.

He added that low-cost airlines will be shaken by the introduction of Santaco Airline, but Santaco must build trust first in terms of safety, reliability and punctuality.

Buthelezi said they needed $10 million (R67 million) to run the airline and that all of their resources came from their members, because they wanted them to own the business.

“Our members are buying shares and we are still negotiating with other investors. We didn’t take a bank loan and government is not our investor,” Buthelezi said.

Botha warns: “If Santaco’s funding model is money from members, it might be risky. They should not risk losing their members’ money. But if they have other funding methods such as banks, they might be on the safer side because banks won’t give money willy nilly.”

Buthelezi said: “Everything will be run by well-experienced people – AirQuarius – on our behalf. They will provide us with aircraft, pilots, the flight crew, they will maintain our aircraft and also do skills transfers to our members.” Buthelezi said the airline would be competing with South African Express and SA Airlink, who are also operated by AirQuarius.

Santaco Airline will be officially launched on September 16 and the first commercial flight will take to the skies towards the end of November 2011.

Buthelezi said taxi hubs where their airline commuters will take shuttles are Park Station in Johannesburg, Bosman in Pretoria, Mdantsane in the Eastern Cape and Bellville in the Western Cape.

“We will not risk people’s lives. To prove that, soon after the launch our 2 500 delegates will be ferried by our very own aircraft around the country. So if anything has to happen it will affect our delegates first,” Buthelezi said, adding that their delegates will be going to Durban’s Inkosi Albert Luthuli International Convention Centre as Santaco will be celebrating 10 years on September 18, this year.

He said Santaco Airline was a result of the TR3 2020 strategy which is aimed at redefining, restructuring and re-positioning the taxi industry. He said that they will be launching a training academy in August aimed at taxi drivers and taxi owners.

“We are revolutionising the taxi industry and soon will be on railway systems,” Buthelezi said.

AirQuarius general manager Michael Goodwin said they were not at liberty to answer questions related to Santaco.

Kabelo Ledwaba, spokesperson for the Civil Aviation Authority (CAA), said the CAA was expecting Santaco to apply to the CAA and the Department of Transport for the necessary approvals.

“Once the necessary approvals have been granted, the operator (in this case an airline) will be expected to comply with all the applicable civil aviation regulations,” Ledwaba said.

An Air Operator’s Certificate (AOC) holder will be responsible for operations and compliance with all safety regulations, insurance, aircraft maintenance, crew and issuance of tickets.

He said if any advertising is done, it should be in the name of the AOC holder.

Mango Airline chief executive Nico Bezuidenhout welcomed the initiative that could make air travel more affordable.

“A large number of our guests have been and are first-time flyers, indicating that there is a significant market with growth potential for affordable air travel in South Africa,” Bezuidenhout said, adding that “transportation lies at the heart of the South African economy – who’s to say that airlines won’t start up taxi operations at some point in the future?”

Numsa members gather for JHB march

Rahima Essop / www.eyewitnessnews.co.za/Monday, 04 July

A small group of striking National Union of Metal Workers of South Africa (Numsa) members have gathered in Newtown in preparation for a march to their employer’s office.

The march is part of a nationwide strike by over 200,000 Numsa members.

Wearing thick jackets, gloves and wooly hats, a group of Numsa members danced outside the Workers Library and Museum in the Johannesburg CBD.

They are getting ready to march to Anderson Street where they will hand over a memorandum to bosses in the engineering sector.

An 11thhour attempt to prevent the strike from going ahead was rejected by the Labour Court.

Talks have broken down between unions and the Steel and Engineering Industry’s Federation of South Africa over wages and the use of labour brokers.

Workers want 13 percent but the employers are offering seven percent.

Meanwhile, the Steel and Engineering Industries Federation of South Africa has appealed to striking workers to respect the rules and laws around demonstrations and industrial actions.

SIEFSA’s website stipulates that those taking part in the strike will not be paid.

Strikers will also not be allowed to enter the premises of their companies.

Numerous marches are planned in Johannesburg, Cape Town, Port Elizabeth and Durban.

(Edited by Lindiwe Mlandu)

Zuma urged to clarify land policy

by Own Corespondent / ZimOnline./Monday 04 July 2011

JOHANNESBURG – South Africa’s official opposition Democratic Alliance (DA) party has called on President Jacob Zuma to urgently clarify his government’s position on land reform following reports of farm invasions in the country’s Eastern Cape province.

According to the DA the invaders said they had been given permission by ruling ANC party youth leader Julius Malema to occupy a farm in the province, while police reportedly would not intervene to remove the invaders off the property telling owners to first apply for an eviction order.

DA spokesman Athol Trollip said he would write to Zuma and Land Reform Minister Gugile Nkwinti to find out when the government that has said it would take a re-look at its land reform programme plans to release its green paper on the revised land policy.

Trollip urged Zuma to come forward and publicly denounce the radical policies espoused by Malema, adding it was crucial that the President puts an end to the “dangerous speculation” regarding land reform.

“It is not sufficient for President Jacob Zuma to simply state that land grabs are not ANC policy,” Trollip said in a statement.

Addressing an ANC Youth League conference last month, Malema urged the government to seize white owned farmland without paying compensation, warning senior party leaders they could be removed from their positions in government should they fail to heed the league’s calls for quicker land reforms.

Malema, whose youth league does not determine policy but is one of the most influential voices in the ANC, said the government’s preferred willing buyer/willing seller policy has failed to ensure transfer of enough land to the country’s land hungry blacks.

Under the willing buyer/willing seller policy the government pays market prices for land voluntarily offered on the market.

But Malema queried why black South African should pay for land that was originally stolen from them, echoing the argument of neighbouring Zimbabwe’s President Robert Mugabe who has refused to pay for land grabbed from whites saying it was stolen from black Zimbabweans in the first place.

Thousands of poor blacks are still waiting for the ANC government to deliver on its promise on coming to power in 1994 when it set itself an ambitious target of redistributing 30 percent of all agricultural land to the black majority by 2014.

With three years before the delivery date the government says it has been able to transfer only seven percent of land to blacks so far, while some of that land has been sold back to whites to leave only five percent of agricultural land in black hands.

South Africa – just like Zimbabwe – inherited an unjust land tenure system from previous white-controlled governments under which the bulk of the best arable land was reserved for whites while blacks were forced to crowd on mostly arid and infertile soils.

But South Africa, which has one of Africa’s biggest farming sectors and its biggest economy, has repeatedly said it will not follow the example of Zimbabwe where Mugabe has confiscated most of the farms owned by that country’s about 4 500 white commercial farmers and gave them over to blacks.

The farm seizures are blamed for plunging Zimbabwe — once a net food exporter — into severe food shortages since 2001 after black peasant farmers resettled on former white farms failed to maintain production because the government failed to support them with financial resources, inputs and skills training. — ZimOnline.

IG South Africa Cuts Commission Rates

July 4, 2011 /PRNewswire

JOHANESSBURG,

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SOURCE IG Markets South Africa

TANZANIA:

Act on illegal aliens, Tanzania and Kenya urged

Monday, 04 July 2011 /By Zephania Ubwani, The Citizen Bureau Chief

Arusha. Kenya and Tanzania have been urged to take tough action against illegal immigrants from the Horn of Africa, some of whom could be a threat to security in the region.

Officials manning the border posts between the two countries say the two neighbouring states should agree on a common approach in tackling the problem.

“This is our problem. The two countries should sit down and find ways to address the issue,” said Mr Albert Kishe, the officer-in-charge of Tanzania’s Immigration desk at the Namanga border town.

He said illegal immigrants from war-torn Somalia in particular had proven too shrewd and were notorious in avoiding the official entry and exit border posts.

The Tanzanian official said cooperation between the two countries was necessary because some of the illegal aliens from the Horn of Africa forged travel documents.

“Our experience has shown that some of them have forged travel documents or illegally acquired Kenyan passports indicating that they were Kenyan nationals,” he said.

Hundreds of immigrants from the Horn of Africa states, mostly Somalia and Ethiopia, have been using Kenya and Tanzania to transit to southern Africa and possibly Europe.

The problem has proven burdensome in Tanzania where hundreds have been arrested, prosecuted, jailed and later repatriated to their home countries on state expenses.

Mr Kishe told Arusha-based journalists who visited Namanga at the weekend that Tanzanian immigration officials would no longer tolerate illegal aliens from the troubled region.

“Even those holding genuine passports would be thoroughly scrutinised,” he said, noting that their concern was that some were pretending to be Kenyans.

His officers have been tasked to screen all Somali people entering the country, including those holding Kenyan passports to establish their nationalities. He said some authorities in Kenya were giving passage to the illegal immigrants from the Horn of Africa.

Mr Kishe was categorical that the East African states cannot give the aliens transit visa to southern African countries, including South Africa, where most of them claim to be destined for.

“We can’t give them transit visa because once they are rejected there they would be returned to Tanzania. That would add another burden to us,” he said.

The Immigration post in charge said Somalis seeking refugee status, as scores have claimed, should register first with the United Nations High Commissioner for Refugees (UNHCR).

Hundreds of Somali immigrants have often claimed they were running away from bloody conflicts that have battered their country in the last 20 years. Others say they left their country because of famine due to debilitating drought and associated natural disasters which are common in much of the semi- arid Horn of Africa.

Mr Kishe said that Kenya, also burdened with both illegal immigrants and refugees from Somalia, may be deliberately avoiding to give referred visas to Somalis leaving their country.

“This may be because once they are back in Nairobi, they can’t get out of Kenya,” he said.

The head of Kenya’s immigration post at Namanga, Mr Raphael Mutinda, admitted that it had been difficult to distinguish Kenyan Somalis and Somalis from Somalia.

See editorial on Page 8

“Even those holding the genuine travel documents (passports) are stopped at the border,” he said, noting that illegal immigrants normally use the porous border between the two countries.

He wondered how the illegal aliens obtained Kenyan passports and other travelling documents given the stringent conditions to obtain one.

Mr Mutinda said 72 illegal immigrants from the Horn of Africa were recently arrested near Namanga.

He declined to confirm claims that most of the illegal aliens from Somalia were using Kenya to forge travel documents, which indicated they were bona fide nationals of Kenya.

His remarks were echoed by head of Kenya’s immigration desk at Loitoktok, Ms Senewa Koilel, who blamed the problem on porous borders and local facilitators.

“Once we get them (illegal immigrants), we charge them and return them to their home countries. This is a common problem and there are some people who are facilitating them,” she said.

Ms Koilel said 50 such illegal aliens were arrested in the vicinity of Loitoktok last year hiding in the bush either trying to enter Tanzania or after they were rejected or thrown out.

A Tanzanian immigration officer at the Tarakea border post in Kilimanjaro Region, Mr Frederick Kiondo, on Tuesday said one way of tackling the problem was to allow such immigrants passage to southern Africa.

“There should be a mechanism to enable them proceed with their journeys if they hold legal travel documents or if the registered as refugees,” he told the media team.

See editorial

Tanzania sisal board to boost biogas plants

Monday, 04 July 2011 / www.busiweek.com/ Dorothy Ndeketela .

DAR ES SALAAM, TANZANIA – The Tanzania Sisal Board has set aside US$ 31.1 million to increase the capacity of its sisal biogas electricity plants to contribute power generation in the country.

This move is meant to increase biogas production from one plant at Hale Estate to 14, with the capacity to produce about 7000KW of electricity where by each plant has expected to consume about 500KW in which the excess electricity from sisal biogas could be sold and channeled to the National Grid.

According to the Tanzania Sisal Board, the 14 estates that have been marked for biogas electricity installation include Gomba estate under Gomba Agricultural Industries Ltd, Rudewa estate under China State Farms Ltd, Mkumbara estate under D.D.Ruhinda & Company Limited, Magunga estate under Katani Ltd, Fatemi estate under Mohammed Enterprises Ltd, Kigombe estate under Amboni Plantations Ltd, Kwaraguru estate under Sagera Estates Ltd.

Other earmarked estates include Toronto estate under Unicord Tanzania Ltd, Mazinde estate under Mohammed Enterprises Ltd, Lugongo estate under Dominion Plantations Ltd, Mwelya estate under Katani Ltd, Ubena estate under Highland Estates Ltd, Mwera estate under Amboni Plantations Ltd and Magoma estate – Katani Ltd.

Deogratias Ruhinda the Research Officer of Tanzania Sisal Board told the East African Business Week that the study has been confirmed that sisal can be utilized to produce biogas which can be used to produce electricity.

He said that Hale estate was installed as the part of pilot study in Tanzania where by the study was succeed to generate about 300KW of sisal biogas electricity and also they expect to modify utilization and increase to generate up to 1MW of sisal biogas for the contribution of electricity in Tanzania.

“Tanzania Sisal Board is expecting to contribute a lot on power generation in Tanzania on a way to 2020 after accomplish its mission to reduce the energy cost in the country”. Ruhinda said

Mr. Hamis Mapinda, the Tanzania Sisal Board (TSB) acting Director General told this paper that sisal plants are useful materials for production of reliable electricity in the country and if are well utilized they can remove Tanzania from the ongoing power-blues.

“In a way to stabilize the 14 sisal estates for electricity generation, we are planning to increase the utilization of the sisal plant from the current level of two percent to at least 50%.

Tanesco, Aggreko sign $37m deal

Monday, 04 July 2011 / John Mbalamwezi /www.busiweek.com .

DAR ES SALAAM, TANZANIA-The Tanzania Electric Supply Company (TANESCO) has signed $37million (£23million) contract with the Netherlands based firm, Aggreko plc, supply 100MW of emergency power for 12 months.

According to Aggreko plc the contract involves providing two 50 MW diesel-powered plants at Ubungo and Tegeta, as well as managing the fuel supply associated with the power generation.

Mr. Rupert Soames, Chief Executive of Aggreko said that “the estimated value of the power contract is $37 million; the pass-through fuel contract is similar to that currently operated by Aggreko in Uganda and in previous years in Sri Lanka, and involves managing the fuel supply to the power plants.

“The value of the fuel contract will depend on the monthly price of diesel, and the amount of power generated and Aggreko will charge a small fee for managing the fuel supply,” said Mr. Soames.

Mr. Soames said that “having successfully delivered 40MW of emergency power between 2006 and 2008, we are delighted that, following a competitive tender process, we have once again been selected to be of service to Tanzania .”

He also said that the award of this contract will take Aggreko’s order intake in the first six months of 2011 to at least 630MW.

Aggreko plc is said to be the world leader in the supply of temporary power and temperature control solutions. Recent Aggreko plc customers include the FIFA World Cup in 2010, the Vancouver 2010 Olympics and the power utilities in over 50 countries including the UK , France , Angola , Kenya , Indonesia , Bangladesh , Venezuela , Chile , Brazil and the USA .

More than two-thirds of Tanzania ‘s electricity is hydro-powered; the prolonged drought that besetting East Africa has resulted in a significant reduction in the amount of electricity being generated by hydro plants.

The reduced supply of electricity, combined with the rapid growth of the Tanzanian economy and consequent increase in demand for power, means that power rationing has become a regular event.

Badra Masoud, the Tanesco Communications Manager, said that the addition of 100MW of power would help stabilize the country’s power supply and support continued economic growth while the Tanzania Electric Supply Company worked to implement long-term solutions to improve power generation and distribution.

She also said that the government is in a move to accomplish many power projects expected to mitigate power deficit that still twists the economy. Ms. Masoud said that the government is in a line for another 70MW power project expected to begin soon in Tanga region which will be added to the national grid.

“In a line to cub the power deficit in the country” she said, “the government of Tanzania has set to receive a $700 million hydropower plant which will work to cover 25% power demands in the country when completed”, she noted.

Ms Masoud said that the Russian based-Zarubezhstroy Corporation (ZARS) will embark on a five-year project on hydroelectric power plant at Rumakali in Iringa region, Tanzania and will initially generate 222 MW which will be fed directly into the national grid.

According to the report by Mr. Razmik Tarzerdyan ZARS, the Chairman of the Board of Directors, the plant which will be the largest independent hydropower project and is set to cater for the country’s power demands by 20 to 25 %.

According to statistics from the Ministry of Energy and Mineral Resources, about 14% of the country’s population is connected to the power grid. Analysts say that if Tanzania will go on depending on the hydropower, then Tanzania will never be out of electricity deficit. According to them hydropower is never reliable due to the climate fluctuation.

” Tanzania has to adopt new technology to power the country for further developments,” they said. Tanzania ‘s interconnected grid system has an installed capacity of 773MW, of which 71% is hydropower.

TRA launches risk management policy

Monday, 04 July 2011 / Daniel Semberya / www.busiweek.com .

DAR ES SALAAM, TANZANIA – The Tanzania Revenue Authority (TRA) has launched the first Enterprise -wide Risk Management Policy and Framework (ERMF) to achieve equal treatment to taxpayers and enable TRA attain its vision of becoming a modern Tax Administration.

Speaking during the launch, TRA Commissioner General Harry Kitillya said the objectives of having ERMF include to providing scope and guidance in setting priorities and decision making at corporate, departmental and regional levels.

Others are to contribute to building a risk-smart workforce and environment that allows for innovation and responsible risk taking while ensuring that legitimate precautions are taken to protect Government revenue, maintain public trust, and ensure due diligence.

To propose a set of risk management practices that departments can adapt to their specific circumstances and mandate.

“ERMF is fundamental for us as we are implementing the Third Corporate Plan (2008/9-2012/13), which has five strategic goals of which (goal No.4), is to promote Voluntary Tax Compliance. One of the initiatives under this goal is to introduce Enterprise-wide-Risk Management system,” he explained.

According to Kitillya, the kind of risk management introduced by TRA is the first among all Revenue Authorities in the East African Member States.

Risk management process helps to identify and analyze the different steps in decision making process; that is to identify, assess and treat the attaching risks and hence facilitate explicit and better decisions in each stage of the process.

“Our Enterprise-Wide Risk Management Policy statement states: “TRA shall adopt best practices in the identification, assessment, treatment, monitoring and evaluation of risks to ensure that they are minimized to an acceptable level.

This implies that risks embedded in TRA processes are minimized to an acceptable level in a cost effective way using both quantitative and qualitative risk assessment tools and methods.

For TRA, Enterprise-wide Risk management is central in achieving equal treatment to taxpayers; focusing the burden of auditing to non-compliant taxpayers; best use of the available human, financial and technical resources and increased voluntary compliance of taxpayers.

And the Policy’s specific objectives are to ensure among others: collection of Government revenue is maximized by reducing risks in the areas of identifying potential taxpayers, assessing, collecting and accounting of taxes.

However, TRA boss has told staff that when the authority is adopting a “risk Management culture” that emphasizes the importance of managing risks as part of each person’s daylily activities to first and foremost exert their maximum efforts towards implementing the ERM Policy and Framework; to systematically manage risks and maximize opportunities in their area of responsibility consistently with the ERM Policy and Framework.

The Risks that have been identified in the ERM Policy include those of strategic, reputation, compliance, information and communication technology and operational risks.

TIC keen to create middle-class group

Monday, 04 July 2011 /By The Citizen Reporter

Dar es Salaam. The Tanzania Investment Centre (TIC) will continue its endeavour toward elevating the country’s middle class to ensure sustainable development.

The assurance was given by the TIC chairman of the Board of Directors, Mr Elly Mtango, when closing a two-day Business Linkages Entrepreneurship Training workshop held in Dar es Salaam. over the weekend.

He said among TIC priorities is to develop the Tanzania middle class with Tanzanian indigenous businessmen at the base.

“We have the zeal and we are committed to making tireless efforts,” he noted at the event run jointly by TIC and the United Nations Conference on Trade and Development (Unctad), where a total of 23 participants were awarded certificates.

However, he said, in order to succeed TIC needs cooperation and support of various stakeholders in selecting potential entrepreneurs they would like to nurture.

Giving his advice to participants, Mr Mtango told them that they should take care of their customers by providing high-valued products at a minimal cost.

“The way to run a profitable business is to make your customer happy. Never run your business solely for your own benefit. You must produce products to help your customers make more profit themselves,” he said.

The Unctad Empretec International Master Trainer, Mr Eriab Kiiza, said such trainings was the most effective solution in transforming societies towards prosperity.

However, he said, such programmes have worked well in countries that have heavily invested in them.

The director of facilitation at TIC, Ms Nakuala Senzia, thanked Unctad for their partnership through the programme.

“Such a partnership has helped us to empower SMEs with suitable interventions that can improve the local sourcing of goods and services from entrepreneurs like you,” she told participants.

SME linkages can upgrade their local productive capacities and enhance their industrial performance by integrating their enterprise into global supply chains of large foreign firms.

A total of 90 SMEs have so far benefited from such trainings.

KENYA:

Drought in Kenya declared national disaster

www.tntmagazine.com /2011/07/04

A drought in Africa, described as the worst one in decades, is threatening up to 10 million lives.

Aid agencies have scrambled to help countries in the Horn of Africa in response to a call from the UN Under-Secretary-General for Humanitarian Affairs and Emergency Relief, who say famine is imminent.

Baroness Amos says there must be a united international approach to the relief effort in the affected areas, including large areas of Somalia, Ethiopia, Djibouti and Kenya.

The government of Kenya has declared the situation as a national disaster.

Food prices in some parts of Kenya were up to 80% higher than the five year average, while in Ethiopia, the consumer price index jumped about 41%.

Cattle and sheep are dying at higher rates than usual, reaching up to 60% of mortality in some areas.

More than 1000 Somali refugees arrive daily at the refugee settlements of Daadab in northern Kenya.

But the humanitarian organization CARE International warns the drought situation in the eastern Horn of Africa is deteriorating and unlikely to improve until next year.

“The situation in Daadab is grave. Thousands of Somalis are walking for weeks to reach the camp, many of them arriving acutely malnourished, dehydrated, with nothing but the clothes on their backs,” says Stephen Gwynne-Vaughan, Country Director of CARE in Kenya.

Currently, almost 367,000 refugees have sought a safe haven in Daadab; it is the world’s largest refugee settlement.

The high influx of new refugees is putting severe pressure on already limited resources. CARE calls for more funding for refugees in Kenya.

“Refugees need urgent support. They need food and water. At the same time, funding is needed to provide emergency assistance for Kenyans who are also affected by the current drought,” Gwynne-Vaughan says.

“CARE is distributing food from the World Food Programme (WFP) to the refugees in Dadaab, however, without additional funding, the food aid pipeline for refugees will run dry by September.”

As a temporary emergency response to the national disaster, CARE Kenya was distributing emergency food rations of high energy biscuits to new arrivals at reception centres in the Daadab refugee settlements.

But the nutritional status of the newly arrived refugees is poor, so now complete food aid baskets and household kits of blankets, water containers, sleeping mats, plastic sheets and kitchen sets are now being distributed. CARE is also trucking potable water and expanding existing water

supply and distribution systems to meet needs of new arrivals.

Okemo says laundering was no crime in Kenya

By FRED MUKINDA, fmukinda@ke.nationmedia.com/ www.nation.co.ke/Sunday, July 3 2011

Nambale MP Chris Okemo wants to be spared money laundering charges in Jersey on the grounds that the offence was not a crime in Kenya when it was allegedly committed.

The argument is part of an application to the High Court seeking to block his extradition to the island for trial.

The government is expected to move to court this week to seek the extradition of Mr Okemo and former Kenya Power and Lighting Company boss Samuel Gichuru.

Mr Okemo says in the court papers: “Prior to the enactment of the Proceeds of Crime and Anti-Money Laundering Act 2009, it was not an offence in Kenya, hence the charges do not satisfy the dual criminality principle.”

The MP also wants the court to rule that allegations of misconduct in public office made by the Jersey authorities should not be tried there.

“As the alleged criminal conduct took place in Kenya, it has sole jurisdiction to try the alleged offender,” says his petition.

The MP faces 15 counts of money laundering and misconduct in public office allegedly committed between February 1, 1998 and June, 28 2002, which he denies.

“In the event the offences were committed, the State which lost money is Kenya. It is a fact that no funds which are owned by Jersey or its institutions were lost,” he says.

Mr Okemo, who has held the Energy and Finance portfolios, further wants the magistrates court, which is supposed to issue extradition orders, prohibited from “accepting or hearing” any request to that effect.

When the matter was filed, he wanted the Attorney General and Director of Public Prosecution barred from filing such proceedings in the lower court but High Court judge Nicholas Ombija declined, saying it would be “speculative.”

Mr Okemo also says he would not have a fair trial if the case is heard in Jersey.

Interpol issued a red notice against him and Mr Gichuru after a warrant by the Bailiff and Chief Justice of the island of Jersey, United Kingdom in April 2011.

Kenyan Lobbies Push Government to Halt Importation of GM Maize

Written by Naftali Mwaura / www.africasciencenews.org/Monday, 04 July 2011

Lobby groups in Kenya representing small holder farmers, consumers and social justice movements Friday made an appeal to the government to halt importation of genetically modified maize into the country.

The renewed pressure by lobby groups coincide with emerging evidence that wealthy millers are negotiating with the government to be allowed to import tones of GM maize as the East Africa`s largest economy grapple with a gaping deficit on maize.

Local press reports have alleged that unscrupulous traders have sneaked in genetically modified maize into the country through porous borders.

Nevertheless, activists reiterate that Kenya is ill-equipped to handle massive infiltration of GM maize against a backdrop of weak legal, political and policy safeguards.

Justus Lavi, the Secretary, Kenya Small-scale farmers’ forum, challenged the government to “immediately put a stop to importation of GM maize”.

Lavi read a petition on behalf of smallholders urging the authorities to review the position of GM maize in addressing food security.

“Farmers demand a stop to importation of GM maize. Patented seeds and chemical fertilizers threatens the livelihoods of smallholders”, said Lavi.

He noted that “farmers are seriously endangered by GM products”.

Lavi raised alarm on ongoing research in universities and agricultural research institutes that heavily favors large scale adoption of genetically modified crops.

He decried laxity and official lethargy that is to blame for creating a conduit for unscrupulous traders to sneak GM maize into the country.

According to Lavi, Kenya has the potential to solve hunger if the government explores innovative ways to assist the small holders.

“Genetically modified crops can only give short term solutions “noted Lavi.

Multinational giants in their push to export GM maize into Kenya threaten food sovereignty of smallholders.

CidiOtieno, the Convenor, UNGA Revolution, an Umbrella of grassroots movements in Kenya, challenged the government to safeguard the interests of small scale farmers in push to attain food security.

“Citizens should be consulted before importation of GM maize. It is the constitutional mandate of the government to protect Kenyans against importation of products that are harmful to their health”, said Otieno.

The grassroots lobby will soon collect signatures to petition the government to destroy GM maize docked at the port of Mombasa.

Gacheke Gachihi, a social Justice activist, Bunge La Mwananchi Social Movement, said that “it is a crime against humanity that we have a crisis of maize in the country, yet the government is feeding the people with maize flour that is poisoned (read GM Maize)”.

Gachihi condemned “multinationals that are violating the rights of small peasant farmers”.

He noted that Kenya is being held hostage by a cabal of four powerful millers who have negotiated with the government to import GM maize.

Bunge La Mwannachi has vowed to block importation of GM maize through court injunctions.

Gachihi revealed that the lobby will organize demonstrations in July to press the President and the Prime Minister to halt importation of GM maize.

Kenyans to benefit from slum upgrading

Monday, 04 July 2011 /www.busiweek.com/Esther Mugoh .

Nairobi, Kenya – Over one million slum dwellers are set to benefit from an ambitious Ksh15 billion (US$ 165 million) upgrading project to be funded by a group of donors and run by the Government.

Dubbed the Kenya Informal Settlements Improvement Programme (KISIP) is an undertaking that seeks to improve the living standards of slum dwellers by availing to them basic amenities such as water and sanitation systems as well as through the improvement of infrastructure in the selected slums.

KISIP will be implemented by the Government jointly through the Lands, Local Government and Housing ministries over a five year period beginning August this year.

It will be bankrolled by the World Bank to the tune of Sh8.9 billion (US$100 million) the Swedish International Development Cooperation Agency (Sida) at Sh0.89 billion (US$10million) and the Agence Française de Développement (AFD) at Sh4 billion (USD$5million) respectively.

The Government will on the other hand contribute Sh0.89 billion (US$10 million) as counterpart financing which will include non-cash contributions.

Speaking during its launch, Housing minister Soita Shitanda hailed the programme as transformational saying it would greatly complement Government’s efforts of improving housing conditions of Kenyans which was now anchored as a right in the new constitution.

While Projecting that Kenyan urban areas will account for 54% of Kenya’s population by 2030, Shitanda regretted that rapid urbanization and inadequate capacity to cope with the housing needs of Kenyans in urban areas had contributed to the sprouting of informal settlements.

“Rapid urbanization continues to be a major challenge in developing countries. More than 70% world population will be living in the cities by 2050. Our policies must therefore be informed by this reality. We must plan in advance and in accordance to the size of the problem,” he said.World Bank country director for Kenya Johaness Zutt said the programme would be a big boost for Kenya’s efforts to provide adequate infrastructure, housing, as well as social services to urban populations which increased at an alarmingly high rate.

“Every year over 200,000 Kenyans move to cities and formerly rural areas, are becoming increasingly urban. Twenty years ago only 18 % of Kenyans lived in cities.

Today 30 % do and by nearly 2030 nearly half the population will live and work in cities. Urban management and infrastructure will therefore have to be significantly strengthened to meet the challenges,” he said.

Speaking at the launch, Lands Minister James Orengo noted long running illegal land acquisition practices had compounded the problem of housing in Kenya by leading to high land prices locking many out of access to decent housing and amenities.

“Land has been used as basis for primitive accumulation of capital. This has made development of housing very difficult,” he said, adding however that the new Constitution through a revamped Judiciary provided an opportunity to mend the present challenges of land distribution.

Housing Assistant minister Margaret Wanjiru challenged Local authorities to enhance their capacity to deal with housing challenges at the grass roots.

She added that the housing challenge in slums could be resolved if the issue of security of tenure for the slum dwellers would be resolved.

Among the targeted local Authorities in Kenya by the project out of a total of 45 include Eldoret, Embu, Garissa, Kakamega, Kericho, Kitui, Kisumu, Machakos, Malindi and Mombasa.

Others include Nairobi City, Naivasha, Nakuru, Nyeri, and Thika.

The project will run for an initial five years ending in 2016. It is renewable for a further five years, subject to its success or failure.

ANGOLA:

Angola Seeks to End Ban on Sale of Polished Diamonds

04.07.11/ www.israelidiamond.co.il

Angola, the fourth-largest diamond producer in Africa, is seeking to boost its local diamond industry by putting an end to a ban on local sales of polished diamonds, Bloomberg reports.

A bill submitted to parliament by the Industry and Mines Ministry stipulates that domestic trade in polished diamonds would be “free subject to conditions and formalities which safeguard the market stability and safety of transactions.”

The proposed legislation would give diamond manufacturers exclusive rights to conduct high-volume sales of polished diamonds, while local retail jewelry stores would be entitled sell gems polished domestically.

In addition, the legislation discusses investment in diamond projects, giving the Industry and Mines Ministry the authority to green light diamond projects up to $25 million, while projects costing more than that will be subject to approval from President Jose Eduardo dos Santos.

Governor recognises church?s commitment to resolve social problems

7/4/11/www.portalangop.co.ao

Luanda – Governor of Luanda, José Maria dos Santos, recognised on Sunday here the role played by the church and its leaders in the resolution of many social problems faced by the capital city of Angola.

José Maria dos Santos said so at the end of a mass held in the parish of Assembly of Pentecostal God Church in Maculusso ward in Maianga district, in the ambit of his visits to some religious institutions.

According to him, churches and pastors have doing a great work to open the way of the government officials in resolution of problems faced by Luanda.

After attending the mass, José Maria dos Santos said that he feels rejuvenated to solve various problems faced by the population of Luanda.

During the mass, the governor was accompanied by the directors of the provincial culture and press departments, Manuel Sebastião and Ladislau Silva, respectively.

AU/AFRICA:

Turbulent times for EA currencies

Monday, 04 July 2011 / Paul Tentena & Daniel Semberya / . www.busiweek.com

KAMPALA, UGANDA – If you were anywhere in Kampala, Nairobi and Dar es Salaam last week and you needed US Dollars, you know by now that you received far less Dollars for your large amounts of shillings.

The Shilling in three of the five member states of the East African Community (EAC) depreciated against the US Dollar – reaching record levels in all the three countries.

The Uganda Shilling hit an all time record low of Ush2,745 having quickly accelerated from between Ush2610 per dollar in a space of less than 24 hours.

The rapid rise in the rate was blamed on the increasing global demand for the United States dollar.

The story was the same in Tanzania as the shilling lost ground against the greenback considerably.

The Tanzanian currency has slid by 13% against the Dollar during the past one year. It was exchanging at an average of Ush1,379 for $1 in July last year but has since dropped to an average Ush1,570.

A weekly spot survey in Dar es Salaam shows the Shilling traded between Tsh1,590-1620 against the US Dollar at the end of last week compared to Tsh1,570 and 1,585 during the previous week.

In Kenya, the Shilling was not spared either as it traded at Ksh91.45 against the Dollar on Tuesday last week up from on Monday’s Ksh91.25. The Central Bank of Kenya intervened in the market on an almost daily basis to try and stabilize the currency.

The Bank of Tanzania (BoT) attributed the situation that has sent the prices of imported products skyrocketing, to external factors.

The reasoning was the same in Kampala where the Bank of Uganda (BoU) singled out the Greece issue as well as large corporate demand.

This impact of a weakening shilling is hitting businesses hard, as the rising exchange rate is contributing to higher fuel prices, which are pushing up costs of doing business.

Kampala, which has become a trade hub for neighbouring South Sudan, eastern DR Congo, Rwanda and Burundi importers are facing the brunt of a week shilling.

“For example you go to Dubai to import your goods at a certain market value. When you come back, the Uganda Revenue Authority (URA) gives different quotations. This squeezes your profits and it’s a burden,” said Mr. Lubega Byayi, the spokesperson of the Uganda Importers, Exporters and Traders Association (UGIETA).

He adds that even the walk to work campaigns, that hit the country in April and May contributed to the weakening of the Shilling as most tourists feared to visit, as well as international Forex Bureaus closing their shops in fear of the consequences.

The Shilling was mid last week trading at between Ush2,745 against the United States dollar. It however slowed down to between Ush2450 and Ush2610 after the Bank of Uganda intervened by selling more dollars into the market.

According to an official with Jet Set Forex Bureau, there was a drop of between Ush200 and Ush300 in the value of the dollar against the Uganda Shilling as of Thursday last week. There was a strong intervention by the central bank.

“If the Bank of Uganda sustains its intervention, there might be a downward trend and if it doesn’t, the trend will continue up,” noted the official on Thursday last week.

However, the clearing agents under their umbrella body, the Uganda Clearing and Forwarding Industry Association (UCIFA) say that the government should support local exporters by subsidizing and supporting exporters to attract more dollars into the country.

“With little or no more donor funding, the government should strengthen capacity of exporters, subsidize on fuel and subsidization of the transport sector. This will bring in more dollars and the issue of a weakening Shilling will not arise,’ noted Mr. Kassim Omar, the UCIFA president.

He added that the government should also subsidize the manufacturing sector, to encourage local production of goods.

Most Forex Bureaus in Kampala like the Shalom Forex Bureau by Thursday; figures showed that the Shilling was gaining momentum against the United States dollar.

Importers of different goods into the country have had their commodities shooting up.

The latest was Iron Sheet manufacturers Roofings Limited, who had all their commodities, rise up by 8%.

The Uganda Wildlife Authority, the managers of Uganda’s wildlife also increased their park entry fees. They attributed it to the weakening Shilling, appreciating United States dollar and the increasing cost of living.

In Tanzania, the Director of Research and Economic with BoT, Dr. Joseph Masawe, the US Dollar has been increasing because many people in Europe now prefer to buy dollars to the Euro and Pound for the safety of their money. They don’t know what the situation will be with the Greece economy at the end.

However, Masawe said that shillings in other East African countries are depreciating because Kenya and Uganda have allowed the so called ‘Capital Account Liberalization’, whereby their people are allowed to go and buy houses or invest in stock markets in foreign lands.

H e said that as a result, this has led to a big demand of dollars in those countries.

Dr. Honest Ngowi, the Mzumbe University Business School Lecturer said the Tanzania shilling’s free fall disturbs fiscal management because Government procurements are done and budgeted for in local currency while purchases are made in US dollars.

“A big chunk of the budget will be eaten up by the depreciation. It will also increase dollarization and holders losing faith on the local currency which is not good for the economy,” Dr Ngowi said.

The economist suggested that the Central Bank should intervene in the foreign exchange market to rescue the situation before it is too late.

Recently, the Tanzania Finance and Economic Affairs Minister Mustafa Mkulo told the International Monetary Fund (IMF) in a letter of intent that the exchange rate will remain market determined.

This squeezes your profits and it’s a burden,” said Mr. Lubega Byayi, the spokesperson of the Uganda Importers, Exporters and Traders Association (UGIETA).

He adds that even the walk to work campaigns, that hit the country in April and May contributed to the weakening of the Shilling as most tourists feared to visit, as well as international Forex Bureaus closing their shops in fear of the consequences.

The Shilling was mid last week trading at between Ush2,745 against the United States dollar. It however slowed down to between Ush2450 and Ush2610 after the Bank of Uganda intervened by selling more dollars into the market.

According to an official with Jet Set Forex Bureau, there was a drop of between Ush200 and Ush300 in the value of the dollar against the Uganda Shilling as of Thursday last week. There was a strong intervention by the central bank.

“If the Bank of Uganda sustains its intervention, there might be a downward trend and if it doesn’t, the trend will continue up,” noted the official on Thursday last week.

However, the clearing agents under their umbrella body, the Uganda Clearing and Forwarding Industry Association (UCIFA) say that the government should support local exporters by subsidizing and supporting exporters to attract more dollars into the country.

“With little or no more donor funding, the government should strengthen capacity of exporters, subsidize on fuel and subsidization of the transport sector. This will bring in more dollars and the issue of a weakening Shilling will not arise,’ noted Mr. Kassim Omar, the UCIFA president.

He added that the government should also subsidize the manufacturing sector, to encourage local production of goods.

Most Forex Bureaus in Kampala like the Shalom Forex Bureau by Thursday; figures showed that the Shilling was gaining momentum against the United States dollar.

Importers of different goods into the country have had their commodities shooting up. The latest was Iron Sheet manufacturers Roofings Limited, who had all their commodities, rise up by 8%.

The Uganda Wildlife Authority, the managers of Uganda’s wildlife also increased their park entry fees. They attributed it to the weakening Shilling, appreciating United States dollar and the increasing cost of living.

In Tanzania, the Director of Research and Economic with BoT, Dr. Joseph Masawe, the US Dollar has been increasing because many people in Europe now prefer to buy dollars to the Euro and Pound for the safety of their money. They don’t know what the situation will be with the Greece economy at the end.

However, Masawe said that shillings in other East African countries are depreciating because Kenya and Uganda have allowed the so called ‘Capital Account Liberalization’, whereby their people are allowed to go and buy houses or invest in stock markets in foreign lands. H e said that as a result, this has led to a big demand of dollars in those countries.

Dr. Honest Ngowi, the Mzumbe University Business School Lecturer said the Tanzania shilling’s free fall disturbs fiscal management because Government procurements are done and budgeted for in local currency while purchases are made in US dollars.

“A big chunk of the budget will be eaten up by the depreciation. It will also increase dollarization and holders losing faith on the local currency which is not good for the economy,” Dr Ngowi said.

The economist suggested that the Central Bank should intervene in the foreign exchange market to rescue the situation before it is too late.

Recently, the Tanzania Finance and Economic Affairs Minister Mustafa Mkulo told the International Monetary Fund (IMF) in a letter of intent that the exchange rate will remain market determined.

News Reporter

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