Saturday, July 26, 2014

East Africa's new found wealth to bring regional transformation - CNBC Africa

East Africa has emerged as a significant prospect for oil and gas that is set to fundamentally transform the regional economies.

East Africa's new found wealth to bring regional transformation
According to Standard Bank, the discoveries in Uganda, Kenya, South Sudan, Ethiopia, Tanzania and Mozambique have emerged as some of the most prolific oil and gas exploration spots in the region and in the world over the last 10 years.
“It really comes from the fact that it [East Africa] has been ignored for the last 40 years. The oil industry has been much more interesting in Russia or in the developed markets and really in  Africa it looked at North and West Africa, so Nigeria, Algeria, Egypt, Libya, places like that but East Africa was perceived as a barren area,” Simon Ashby Rudd, global head of oil & gas at Standard Bank told CNBC Africa.
A survey by the United States has estimated that more gas lies off shores of Kenya, Tanzania and Mozambique than off Nigeria, Africa's biggest energy producer.
“Fist discoveries were really made in Uganda by the likes of Heritage and Tullow and then Mozambique where they found huge volumes of gas. In the last four years they have found almost 200 trillion cubic feet (Tcf) of gas which is equivalent to what they have discovered in Nigeria in 40 years. So East Africa is now on the radar,” Rudd noted.
“We are seeing more discoveries in Tanzania, more gas in Tanzania and more oil in Kenya, potentially Ethiopia and the industry [oil and gas] believe this is a start of a major development in this part of the world,”
East Africa's oil & gas discoveries to bring regional transformation
According to Standard Bank, recent oil & gas discoveries in East Africa will fundamentally transform the regional economies as the resources bring in new investment in other infrastructure.
The major challenges identified by organisations in the oil and gas industry are that East African countries not only lack infrastructure and technical expertise, they also lack distinctive oil and gas policies, while legislation of the sector is uncertain.
“The challenge now is about getting the regulatory environment right in order to encourage investment. These discoveries while they are world class discoveries, they are in isolated locations and the investment that is going to be required is going to substantial,” Rudd explained.
According to Rudd, getting the regulatory and commercial environment right now and making sure that it is beneficial to all stakeholders, that is, the country, the economy of the local region and to the investors are critical components to ensuring the oil and gas industry in East Africa flourishes.

Thursday, July 3, 2014

Eastern Africa integration meet Kagame hosts Museveni, Kenyatta

Kagame hosts Museveni, Kenyatta for integration meetPublish Date: Jul 03, 2014
Kagame hosts Museveni, Kenyatta for integration meet
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President Yoweri Museveni addressing the Pan African Youth Conference at Serena Hotel Rwanda under the theme Beyond Liberation Movements Sharing Our Future, on Thursday. PHOTO/Enock Kakande

Presidents Yoweri Museveni and his counterparts Uhuru Kenyatta of Kenya plus South Sudanese leader Salva Kiir Mayardit will today join Rwanda’s President Paul Kagame in Kigali for the sixth summit on Northern Corridor integration projects.

Delegations from Burundi, Tanzania, and Ethiopia are also at the summit. Tanzania and Ethiopia are attending the meeting as observers.

The sixth summit on Northern Corridor Integration Projects opened in Kigali on Monday, with an experts’ meeting assessing the implementation of the projects.

The Council of Ministers who yesterday deliberated on recommendations from technical teams, will today submit their report of the recommendations’ assessment to the Heads of State at the summit today.

The ministers at the meeting yesterday included: Minister for Foreign Affairs Sam Kutesa, Rwanda’s Finance and Economic Planning minister Claver Gatete, Burundi’s Denise Sinankwa, senior advisor to the president, Kenya’s Michael Kamau, the Cabinet Secretary for Transport and Infrastructure, and Ethiopia’s Tedros Adhanom Ghebreyesus.

South Sudan was represented by Dr Barnaba Marial Benjamin Bil, the minister for foreign affairs.

Projects that were to be assessed included the standard gauge railway that will connect Kigali to Mombasa port through Uganda, construction of a regional oil pipeline that will connect Kigali to Eldoret via Kampala, a regional power project, and fast tracking political federation.

Today’s Heads of State summit on the integration projects is expected to be attended by other high level officials, including Jin-Yong Cai, the chief executive of International Finance Corporation, an institution affiliated to the World Bank and offers investment, advisory and asset management services to encourage private sector development in developing countries.

Jin-Yong is expected to make some commitments on the financing of the regional oil pipeline as well as the Mombasa–Kigali standard gauge railway line that is estimated to cost about $13.5 billion.

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Prof. Muse Tegegne has lectured sociology Change &  Liberation  in Europe, Africa and Americas. He has obtained  Doctorat es Science from the University of Geneva.   A PhD in Developmental Studies & ND in Natural Therapies.  He wrote on the  problematic of  the Horn of  Africa extensively. He Speaks Amharic, Tigergna, Hebrew, English, French. He has a good comprehension of Arabic, Spanish and Italian.