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Archive for the tag “John Pombe Joseph Magufuli”

Opinion: Now that the World Bank has new priorities, they will most likely not loan to the pipelines in East Africa!

 

There is certain movements that will strike as more expensive for the East African Community (EAC). This being for the Government of Uganda (GoU) and the Government of Kenya (GoK), who has big plans of petroleum pipelines from their oil-fields and to the coast. That being from Turkana to Lamu Port. While the Ugandan oil goes from Hoima to Tanga Port in Tanzania. Both development and industrial projects will have issues with the funding. The World Bank has supported massive infrastructure projects in both countries.

Therefore, for the two counties big development and oil industry, this is giant set-back, since they have to find funding and loans for the pipelines on the open market. Even with higher interests and making the profits of it lesser, than it would have been with a World Bank loan. It would not hurt the pocket as much as it does on the open market. The banks wants more profits themselves and also make sure they are paid-in-full.

With all this in mind. There are speculations, but first. Parts of the self-answering service. Before we look at the reactions in Kenya and Uganda. All of are important, as the state is involved in the licensing and building the pipelines. They are directly into the development and procurement of the pipelines. That is why this is big blow for the administrations and their possible tax-profits on it.

Word Bank Q&A:

Q. How is “upstream” oil and gas defined?

Upstream is an industry term that refers to exploration of oil and natural gas fields, as well as drilling and operating wells to produce oil and natural gas” (World Bank, 2017).

Current projects in our portfolio would continue as planned. However, no new investments in upstream oil and gas would be undertaken after 2019, unless under exceptional circumstances as noted in the decision” (World Bank, 2017).

Kenya Pipeline:

The announcement by the bank, which has significant interests in Kenya’s oil prospecting sector, does not bode well for the country’s anticipated entry into the club of oil producing nations beginning next year. Analysts said they do not expect an immediate reaction to the announcement even as they acknowledged that it takes the shine from oil in the long term” (…) “Locally, the World Bank is offering technical support to the Kenyan government, through the Kenya Petroleum Technical Assistance Project, to prime all stakeholders for commercial oil production and sale. The six-year programme is scheduled to run until February 2021 and involves the World Bank managing a Sh5.2 billion fund set up by investors from Germany, Norway and Britain. The World Bank’s private lending arm, International Finance Corporation, is however directly involved in Kenya’s oil fields, having a 6.83 per cent stake in Africa Oil, the Canadian exploration firm with interests in northern Kenya oil blocks” (Mutegi, 2017)

Uganda Pipeline:

The pipeline, is expected to be completed by the year 2020, when the country is scheduled to start oil production. In fact, Uganda’s President, Yoweri Museveni and his Tanzanian counterpart recently commissioned the construction of the East African Crude Oil Pipeline. The two leaders laid mark stones for the crude oil pipeline in Mutukula, Kyotera district and Kabaale in Hoima district. Total E&P Uganda, a subsidiary of French oil giant, Total S.A, is spearheading the construction of the crude oil pipeline on behalf of the joint venture partners. Adewale Fayemi, the general manager, Total E&P Uganda says discussions are ongoing to discuss on the formalities of how the pipeline will be run. Already, an agreement has been reached that the East African Crude Oil Pipeline (EACOP) will be run and managed by a Special Purpose Vehicle (SPV) – private pipeline company. This means that a private company will be incorporated with joint venture partners – Tullow Uganda, Cnooc Uganda Ltd and Total E&P Uganda, and the governments of Uganda and Tanzania as shareholders in the company” (Ssekika, 2017)

Certainly, this will put a strain on the projects. They have to deliver another type of arrangement to make sure they get funding and have the funds to pay the added interests the banks wants. The added points on the dollar and the interest-rates will hit state-owned firms and the state itself. Since the pipelines most likely becomes more expensive and will be less profitable.

That the World Bank is pulling out of these projects is all within line of the Paris Accord, as they have professed is the reason. Still, this will make these projects more expensive and make sure they are earning less on it. Unless, the crude-oil prices are going up to a level that makes these investments even more profitable. That is only for time to tell. Since it is costly projects and also sophisticated to build. There is needed lots of expertise combined state planning to achieve the development plans.

This is just the beginning, but the pipelines and these investments are vital for both Kenya and Uganda. As the governments are already borrowing state funds on the possible earnings from the oil reserves in their basins. Therefore, they need to drill and need the petrodollar as quickly as possible. Peace.

Reference:

Mutegi, Mugambi – ‘World Bank dims Turkana oil hopes’ (14.12.2017) link: http://www.nation.co.ke/business/World-Bank-dims-Turkana-oil-hopes/996-4227848-u02v8n/index.html

Ssekika, Edward – ‘East African Crude Oil Pipeline: The Inside Story’ (11.12.2017) link: http://www.oilinuganda.org/features/economy/east-african-crude-oil-pipeline-the-inside-story-details-emerge-of-how-the-crude-oil-pipeline-will-be-financed-managed.html

World Bank – ‘Q&A: The World Bank Group and Upstream Oil and Gas’ (12.12.2017) link: http://www.worldbank.org/en/topic/climatechange/brief/qa-the-world-bank-group-and-upstream-oil-and-gas

My letter to President Magufuli: seems like you need some love 3.0

Dear Sir, His Excellency (H.E.) President John Pombe Joseph Magufuli of the United Republic of Tanzania.

I am sad, I have to write to you again on this sort of affair. It is not like you are cheating on your wife. If your going to trade war with fellow East African Countries. Not like you trying to stifle fellow counterparts of the TAZARA Railway. That would have interesting and been shocking.

I am not writing about the added taxes or the trying to earn bigger parts of the mineral wealth in Tanzania. That is something you should be saluted for and I understand your grievances against the International Mining Companies who earn massive profits on the minerals on your lands.

Well, I am writing because someone hurt your feelings. Someone wrote something that hit your little heart. Something that you cannot muster to understand and escape away from. The powers of Presidency should get under-fire and get criticism for the acts and regulations done by the high power. If cannot muster just resentment and arguments against your critics, you should step H.E. Magufuli.

I am not saying that with ease, because I am a nobody, I would wash your car, clear your garden, maybe carry your mail or be someone who worked in an office, doing demeaning clerical work. Still, I tell you, you cannot always get love and praise. I have told you what you deserve praise for, before going into this. Since if you cannot muster resentments and arguments, or being an honest big-man to let a paper named Mwanahalisi, write what they like.

Instead, your are a heartless person, who has silenced the paper for two years. You have silenced yet another part of the press. Since they call you a hypocrite. Is that all it takes to hurt you? Are you that small, Mr. President? Hypocrite? Really? Are you not more powerful and greater, are you not braver or are you just a figment of imagination of actual opposition against you?

It is like you expect love and praise, for the earth your walking on. That you cannot be told or be questioned by the local media. Now they cannot say anything without fearing losing license, suspensions or direct crack-down leading to the bankruptcy. Clearly, this is your tale Mr. President. I wish it was different. I wish you had heart and could manage to be put in question.

What would Magufuli do? He would have hated my letters and asked for my blog to be closed down. If I was in Tanzania, you would have detained me or even put me to Court. But I all want is for you to see how belittling you are. Instead of the character you could have. Brush it off and know you would get love for the actual good things you do and wants to achieve. That you will have adversaries is natural, your in public office. Not everyone will accept your policies and your statements. If you we’re saint and not an ordinary person. Which by heart you are, since your so offended by being called “hypocrite”, that you suspend a paper.

It would be necessary to give you love, but it is time for tough love and learn some humility Mr. President, His Excellency!

I know I ask a lot by saying it, but I think you need to hear it!

Best Regards

Writer of Minbane

The Order:

Law Society of Kenya – “The attempted assasination of the Pres of the Tanganyika Law Society is an act of cowardice which can never silence the voice of justice” (07.09.2017)

FAO issues alert over third consecutive failed rainy season, worsening hunger in East Africa (14.07.2017)

Number of people needing humanitarian assistance on the rise.

ROME, Italy, July 14, 2017 – Poor rains across East Africa have worsened hunger and left crops scorched, pastures dry and thousands of livestock dead – according to an alert released today by the UN Food and Agriculture Organization (FAO).
The most affected areas, which received less than half of their normal seasonal rainfall, are central and southern Somalia, southeastern Ethiopia, northern and eastern Kenya, northern Tanzania and northeastern and southwestern Uganda.

The alert issued by FAO’s Global Information and Early Warning System (GIEWS) warns that the third consecutive failed rainy season has seriously eroded families’ resilience, and urgent and effective livelihood support is required.

“This is the third season in a row that families have had to endure failed rains – they are simply running out of ways to cope,” said FAO’s Director of Emergencies Dominique Burgeon. “Support is needed now before the situation rapidly deteriorates further.”

Increasing humanitarian need

The number of people in need of humanitarian assistance in the five aforementioned countries, currently estimated at about 16 million, has increased by about 30 percent since late 2016. In Somalia, almost half of the total population is food insecure. Timely humanitarian assistance has averted famine so far but must be sustained. Conditions across the region are expected to further deteriorate in the coming months with the onset of the dry season and an anticipated early start of the lean season.

The food security situation for pastoralists is of particular concern, in Ethiopia, Kenya and Somalia, where animal mortality rates are high and milk production from the surviving animals has declined sharply with negative consequences on food security and nutrition.

“When we know how critical milk is for the healthy development of children aged under five, and the irreversible damage its lack can create, it is evident that supporting pastoralists going through this drought is essential,” said Burgeon.

Livestock prices have plummeted because of poor animal body conditions and this, coupled with soaring cereal prices, has severely constrained pastoralists’ access to food.  Rangeland and livestock conditions are expected to further deteriorate at least until the next rainy season starts in October.

Poor crop prospects

In several cropping areas across the region, poor rains have caused sharp reductions in planting, and wilting of crops currently being harvested. Despite some late rainfall in May, damage to crops is irreversible.

In addition, fall armyworm, which has caused extensive damage to maize crops in southern Africa, has spread to the east and has worsened the situation. In Kenya, the pest has so far affected about 200 000 hectares of crops, and in Uganda more than half the country’s 111 districts are affected.

In Somalia there are unfavourable prospects for this year’s main gu crops, after the gu rains were late with poor rainfall and erratic distribution over most areas of the country. In the Lower Shabelle region, the main maize producing area, seasonal rainfall was about 50 percent below- average and drought conditions are currently affecting up to 85 percent of the cropland.

In Ethiopia, unfavourable belg rains in southern cropping areas are likely to result in localized cereal production shortfalls. Drought is also affecting yields in Kenya’s central, southeastern and coastal areas. In Tanzania, unfavourable rains are likely to result in localized cereal production shortfalls in northern and central areas, while in Uganda there are unfavourable production prospects are unfavourable for first season crops in the southwestern and northern districts.

Cereal prices are surging, driven by reduced supplies and concerns over the performance of current-season crops. Prices in May were at record to near-record levels in most markets and up to double their year-earlier levels.

My letter to President Magufuli: seems like you need some love 2.0

Dear Sir, His Excellency (H.E.) President John Pombe Joseph Magufuli of the United Republic of Tanzania.

I am writing to you again, it strange how it comes to this. I wonder why it has turned to this. There was so much hope for you. You we’re a breath of fresh air, acted differently and seemed decent. Instead, the power has eaten your soul and you cannot handle critics or possible dossiers.

It seems like you have a little-man complex or power fatigue, as you expected to get showers of confetti and not get rainy days. I know it is weird, but life is usually what you serve it. If there are issues and corruption in the Mining Industry, it isn’t the tabloid paper Mawio, but it is the Mineral Extraction companies and civil servants who are corrupted. You should not have issues with the tabloid journalists in Mawio, they are just telling stories from Tanzania and from the different people that lives there. You should know this better than me, you are the Executive and running the Republic. Let’s take a brief look!

The Information minister Dr Harrison Mwakyembe imposed the 24-month ban through a statement released to the media by the Director of Information services Dr Hassan Abbasi on Thursday evening” (…) “I have been left with no other option than to use powers conferred to me by the Information Services Act to impose a ban on Mawio from publication for the next 24 months,” read part of the letter from the minister to Mawio editor” (…) “Mawio was accused of ignoring a government directive on reporting of the former presidents. On Wednesday, President John Magufuli warned the media against linking Mkapa and Kikwete to the government minerals dispute with mining giant Acacia” (The Citizen, 2017).

I know you must feel hurt… feel the pain and the sorrow of maybe being involved in possible mineral dispute like your previous peers. I know that the precious heart of yours must be shattered. That this Mawio tabloid paper wrote such a hideous story exposing the current president, you Magufuli are compered with them. It seems like you have lost your heart…

That your heart was shattered, that the deep sorrow are coming over you. Magufuli you need love and passion, as you have so little compassion. As a president your expected to get support and praise, but this is opposite. What Mawio wrote was maybe distasteful of your wished reputation, but if your connected and letting the government do similar as your predecessors. Shouldn’t that be informed by the media?

Seemingly, you are the President and your precious feelings are getting hurt so often. That the press are writing stories and revealing the government matters, which they shouldn’t in your opinion. Well, many would be to differ, especially when try to dig deep, like even a weekly tabloid Mavio did on Wednesday.

Someone needs to give you love, make it compassionate and be a caregiver to you. Since you cannot handle criticism and critic of any kind. As President and as Executive, you should have the heart, have the understanding and handle the media, as they are there to be part of the checks and balances of your work, President!

Your government are weak and pathetic if it cannot handle that a tabloid write stories about it. President Magufuli, I know you need love, lots of it. You need it so much, that if someone now writes against you and your government you hurt them. The Ministry of Information are suspending them on your accord.

Your usually gets what your hearts seeks. Your emotions seems to run a bit hot lately, as over the last few months… you have been hard on the media and journalists for so, so long!

Can someone please… for the love of god and everything holy, give the President some love. So that he can act like fellow brother and not as heinous totalitarian leader, not as the leader people expected you to be!

Best Regard

Writer of Minbane

Mawio Newspaper Suspended – United Republic of Tanzania – Statement in Swahili

Reference:

The Citizen – ‘Tanzania slaps 2-year ban on newspaper for linking Kikwete, Mkapa to mining row’ (16.06.2017) link: http://www.theeastafrican.co.ke/news/Tanzania-tabloid-banned-Magufuli-minerals/2558-3973200-37oyx/index.html

EAC: Signing of the Inter-Governmental Agreement between the Republic of Uganda and the United Republic of Tanzania for the East African Crude Oil Pipeline (EACOP) Project (26.05.2017)

Communique between the President of Tanzania and President of Uganda on Bilateral Talks between the Two Countries on the East African Crude Oil Pipeline (EACOP) Project on the 21st May 2017 at the State House Dar Es Salaam, Tanzania (21.05.2017)

EAC: Joint Communique: 18th Ordinary Summit of Heads of State of the East African Community (20.05.2017)

EU’s new regulation plans to scrap imports of conflict minerals by 2021!

The people back home wouldn’t buy a ring if they knew it cost someone else their hand”Maddy Brown (Blood Diamond, 2006).

The European Union are acting out of care and thinking of transparency for the industrial imports and mineral exporters. This is happening just a little month after the United States opened up their legislation for importing more from conflict zones. While the European Union plans to close the gate from areas and from sources that export Conflict minerals.

So the EU laws are becoming more stricter than the United States, even if the law they have enacted in the European Parliament and Council of the European Union, will be effective from 2021. So it is 4 years until it has giant effect and gives time to refinery and importers to change behavior. Something that is necessary, as well as the public have to grow concern of the affects of buying conflict minerals. Even as the conflict minerals still come into the market of Europe and into the refineries so the consumers doesn’t know and cannot follow where their products who contain minerals comes from war-zones.

That the European Union takes this serious and acts upon this Nobel, and proves that they does not want to support militias and guerrillas that keeps control of mineral rich areas and their exports to supply weapons and continue warfare in for instance the African Great Lakes Region. Take a look!

Background of new rule:

This Regulation, by controlling trade in minerals from conflict areas, is one of the ways of eliminating the financing of armed groups. The Union’s foreign and development policy action also contributes to fighting local corruption, to the strengthening of borders and to providing training for local populations and their representatives in order to help them highlight abuses” (EU, P: 8, 2017).

Conflict Minerals from Great Lakes Region:

The Commission and the High Representative of the Union for Foreign Affairs and Security Policy should regularly review their financial assistance to and political commitments with regard to conflict-affected and high-risk areas where tin, tantalum, tungsten and gold are mined, in particular in the African Great Lakes Region, in order to ensure policy coherence, and in order to incentivise and strengthen the respect for good governance, the rule of law and ethical mining” (EU, P: 16, 2017).

Trade of Minerals funds armed conflicts:

Preventing the profits from the trade in minerals and metals being used to fund armed conflict through due diligence and transparency will promote good governance and sustainable economic development. Therefore, this Regulation incidentally covers areas falling within the Union policy in the field of development cooperation in addition to the predominant area covered which falls under the common commercial policy of the Union” (EU, P:17, 2017).

Important Article:

Article 3: Compliance of Union importers with supply chain due diligence obligations

1. Union importers of minerals or metals shall comply with the supply chain due diligence obligations set out in this Regulation and shall keep documentation demonstrating their respective compliance with those obligations, including the results of the independent third-party audits” (EU, P: 23, 2017).

Date of Application:

Articles 1(5), 3(1), 3(2), Articles 4 to 7, Articles 8(6), 8(7), 10(3), 11(1), 11(2), 11(3), 11(4), Articles 12 and 13, Article 16(3), and Article 17 shall apply from 1 January 2021” (EU, P: 51, 2017).

What the statements on the law:

The Commission will consider making additional legislative proposals targeted at EU companies with products containing tin, tantalum, and tungsten and gold in their supply chain should it conclude that the aggregate efforts of the EU market on the responsible global supply chain of minerals are insufficient to leverage responsible supply behaviour in producer countries, or should it assess that the buy-in of downstream operators that have in place supply chain due diligence systems in line with the OECD guidance is insufficient” (…) “In the exercise of its empowerment to adopt delegated acts pursuant to Article 1(5), the Commission will take due account of the objectives of this Regulation, notably as set out in recitals (1), (7), (10) and (17). In doing so, the Commission will, in particular, consider the specific risks associated with the operation of upstream gold supply chains in conflict affected and high-risk areas and taking into account the position of Union micro and small enterprises importing gold in the EU” (…) “In response to the request of the European Parliament for specific guidelines, the Commission is willing to develop performance indicators specific to the responsible sourcing of conflict minerals. By means of such guidelines, relevant companies with more than 500 employees that are required to disclose non-financial information in conformity with Directive 2014/95/EU would be encouraged to disclose specific information in relation to products containing tin, tantalum, tungsten or gold” (EU, P: 57-58, 2017).

The European Union is doing something positive with this. That they show effort and care for the imports and what affects the export has locally, so if the minerals export is shady, the export will cease. So if the due diligence regulation works and the industry complies, the effect can be enormous. The consumer will also know that there are not supporting by third party purchase to pay for ammunition rebels, warlords or guerrillas in far away lands. This should all be seen as step of making a better world and honorable society. Where the money is where the mouth is! Peace.

Reference:

Council of the European Union – ‘Proposal for a Regulation of the European Parliament and of the Council setting up a Union system for supply chain due diligence self-certification of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict-affected and high-risk areas – Outcome of the European Parliament’s first reading (Strasbourg, 13 to 16 March 2017) – (20.03.2017).

Air Tanzania Revival: Tender for Provision of Indvidual Consultancy Service to Prepare a Comprehensive Five Year Business Plan for Air Tanzania Company Limited (21.03.2017)

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