24th June 2022 Trade & Financial Services Round Up

  • 24 Jun 2022
  • 5 Mins Read
  • 〜 by Amrit Labhuram

Hoteliers, traders jostle for piece of KSh6bn rally windfall

Palatial homeowners with spacious grounds in Naivasha are hurriedly setting up tents to cash in on the windfall from the World Rally Championship.

With lodging spaces having been problematic during last year’s event, ingenuity is at play as business people use every opportunity to make money.

President Uhuru Kenyatta, who is the patron of the Safari Rally, said on Thursday the motor sport event boosted the county’s economy by injecting KSh6 billion during the first edition last year.

Visitors are expected to spend on accommodation, food and drinks, transport, reservation services (for instance, tour agencies and operations) and attractions (mainly, nature and culture-based).

“The historic nature of this rally is undeniable. Last year (2021), a record 78 million people in 150 countries watched the rally, with every sector sharing in the pie, including players in the hospitality and transport sectors as well as micro, small and medium enterprises in Naivasha and its surrounding towns,” President Kenyatta said.

(Source: Business Daily)


Tanzania and oil companies to complete HGA negotiations in six months

Tanzania’s Government Negotiation Team (GNT) and International Oil Companies; Shell Tanzania and Equinor have six months from now to complete the Host Government Agreement (HGA) negotiations. The completion will expedite the implementation of the Natural Gas Processing and Recycling Project (LNG).

President Samia Suluhu Hassan issued the directive, a few days ago, to complete the HGA by December this year to proceed with the preparatory steps for Pre FEED and FEED before signing the Final Investment decision (FID) in 2025 to start production.

Speaking at the signing of the initial HGA agreement, Shell Tanzania vice-president Jared Kuchel and Equinor vice-president (Exploration and Production International), Unni Skordtad Fjoer pledged to complete the talks within the allotted time with President Samia urging all parties to be ready.

The TSh70 trillion project involves the construction and processing of more than 47 trillion cubic feet of gas discovered in the Indian Ocean in the southern regions.

(Source: The Citizen)


Cooking gas prices rise by 30 percent 

Prices of cooking gas, which is also known as liquefied petroleum gas, have increased by an average of 30 percent, according to a market survey conducted by Daily Monitor.

Prices have been increasing since November last year. However, Daily Monitor has established that they have been more volatile in the last three months, in which the cost to refill a 13-kilogramme cylinder has risen by an average of UShs26,000 while refilling a six-kilogramme cylinder has surged from UShs46,000 in November to UShs68,000, an increase of UShs22,000.

Dealers, many of whom are fuel retailers, have different prices for different sizes of cylinders

According to data from the Ministry of Energy, at least 1 percent of Ugandans cook using liquefied petroleum gas.

However, the government had taken deliberate steps to increase consumption of cooking gas to mitigate deforestation.  Some of the measures included repealing the value added tax on gas in 2019, which saw prices drop by 20 percent.

However, the current volatility, occasioned by the Russia-Ukraine conflict threatens the plan given that prices have surged above pre-value added tax removal.

Dealers also indicated that prices might increase further due to difficulties related to accessing supplies.  

(Source: The Monitor)


Nation earns close to USD514 million from gold exports in 11 months

Ethiopia has generated USD513.9 million from the export of gold in the past 11 months of the current Ethiopian fiscal year, according to the Ministry of Mines.

During his media briefing today, Mines minister Takele Uma said Ethiopia has generated  USD513.9 million from the export of gold in the past 11 months.

Gold, which is exported through the National Bank of Ethiopia, has become the second export product generating highest foreign currency next to coffee exports, it was indicated.

The ministry is working with the National Bank of Ethiopia to further boost the gold deposits and export trade in the country.

The government has been undertaking reform of the mining sector to maximise the benefits the country needs to get from the resource in the past few years.

Noting that the government has enacted inviting policy and revised workable proclamation to create an enabling business environment for investors to engage in the mines sector, the minister said “the government has created an enabling environment for both domestic and foreign companies to invest in the country.”

(Source: Ethiopia News Agency)


Resistance in Sudan to proposed UAE-funded $4 bn Red Sea port development

Sudan’s Alternative Sea Port Workers Union announced its rejection of a reported project to establish a new port funded by Abu Dhabi Ports in partnership with the DAL Group private company. The company itself has denied reaching any agreements.

Osman Taher, head of the Alternative Syndicate, told Radio Dabanga that the United Arab Emirates is a major competitor to Sudan’s ports in the Red Sea and cannot seek to develop them.

He warned the Dal Group not to go ahead with this step, threatening to close all its facilities in the port. He called for the implementation of the project for the benefit of Sudan in cooperation with regional and international banks in order to preserve Sudan’s sovereignty.

The Abu Dhabi Ports Company, listed on the Abu Dhabi Securities Exchange, in turn denied concluding agreements to enter into a joint venture to build a port in Sudan.

The company indicated that it is “in preliminary discussions with the concerned authorities in Sudan, in light of its continuous efforts to study and evaluate new projects”.

It confirmed that it will disclose to the market if any new project and investment is approved or approved in accordance with the applicable regulations.

Osama Daoud, owner of the Dal Group, a partner in the project, told Reuters on Sunday that the United Arab Emirates will build a new port on the Red Sea in Sudan, as part of an investment package worth $6 billion.

Osama Daoud said that the $4 billion port, which is a joint venture between the Dal Group and Abu Dhabi Ports, owned by Abu Dhabi Holding Company, will be able to handle all types of goods and compete with the country’s main national port, Port Sudan. He said it was located about 200 kilometres north of Port Sudan.

(Source: Radio Dabanga) 


President Hassan Sheikh meets with Somali businessmen in the UAE

The President of the Federal Republic of Somalia, Hassan Sheikh Mohamud, met with members of the Somali Diaspora in the United Arab Emirates (UAE) to discuss the ongoing efforts by the Somali Government to strengthen ties with the UAE.

The President briefed the Somali community and business community on the overall situation in the country, noting that the Federal Government of Somalia attaches great importance to economic growth, bank development, investment in the country, especially in the areas of agriculture, livestock and other natural resources.

“During my meeting with the President, the first things I discussed were visa facilitation, visa and travel for citizens in general. Immediately, the President of the United Arab Emirates ordered that their embassy in Mogadishu be taken directly by the Somali people. “Also, we have agreed to address all other challenges and technical committees to facilitate business, banking, investment and regulatory activities,” he said.

The Somali community and business community briefed the President on the situation of the Somali community in the United Arab Emirates, noting that relations between the two countries have deteriorated in recent years and have had a significant economic impact on Somali businesses. They thanked the President for his priority in improving key relations between Somalia and the UAE.

President Hassan Sheikh Mohamud urged members of the community to strengthen their unity and help each other, as well as to live well with the people and government of our brotherly UAE.

(Source: Radio Dalsan)