Joint Communique on the Occassion of the State Visit to Uganda by Her Excellency Samia Suluhu Hassan, President of the United Republic of Tanzania, 10th – 11th May 2022 (10.05.2022)

Civil Society Coalition on Oil and Gas (CSCO) – Civil Society Statement on the Announcement of the Final Investment decision for Uganda’s Oil and Gas Sector (07.02.2022)

Ugandan and DRC CSOs’ Communique Rejecting Secret Agreements Signed for the Lake Albert Oil Project in Uganda (13.04.2021)

Joint Communique between the President of the Republic of Uganda and the President of the United Republic of Tanzania on the Implementation of the East African Crude Oil Pipeline (EACOP) Project on the 11th April, 2021 at the State House Entebbe, Uganda (11.04.2021)

Trump’s Trade-War is now hitting East Africa: Because of possible lost trade with Second-Hand Clothes!

Museveni buying shoes in Wandegeya, 02.06.2017.

United States of America is really just cherry-picking the world right now, they are evolving into a beast and not an Uncle Sam. President Donald J. Trump don’t like to have friends, unless they are related or Roger Stone. That is now seen with his recent activity, not that he knows of these countries or these market. That I say, because he has no hotel or haven’t laundered money from there. The countries being hurt by his new policies are Rwanda, Uganda and Tanzania. Places he would never travel to or have consideration about. That is because in his mind, they are shitholes, but as long as they serve as vassal states for the United States. Everything is fine and dandy.

What we are talking about is this:

(A) THE PRESIDENT IS AUTHORIZED TO DESIGNATE A SUB-SAHARAN AFRICAN COUNTRY AS AN ELIGIBLE SUB-SAHARAN AFRICAN COUNTRY IF THE PRESIDENT DETERMINES THAT THE COUNTRY (SEE NOTE*)

(1) (A country that) has established, or is making continual progress toward establishing–

(A) a market-based economy that protects private property rights, incorporates an open rules-based trading system, and minimises government interference in the economy through measures such as price controls, subsidies, and government ownership of economic assets” (AGOA – ‘AGOA Country Eligibility’).

It is special that the US President is using this against these three states on the imports of used-clothes and shoes. That these three republics trying to develop their own textile and clothes industry, to create work and also revamp the economies. That would mean, that people would also earn more money and spend more money. In the end buying foreign produced clothes on the fashion-lines, that usually are branding American and European brands. Therefore, I don’t understand why Trump suddenly acts like this, when Rwanda, Uganda and Tanzania wants to secure their industries.

Because, it is not many days ago, since the President himself used rules and provisions to secure the Steel and Aluminum industry on his own soil. So, that the giant United States can control it, but their trading with other can be spoiled, because it doesn’t favor the President. Seems like double-standard to be. It is easy to muffle the poor and the ones with lack budgets, that are in need of donors. They need to stifle the demands of the powerful, but the ones with power can just use the same means themselves. Still, that doesn’t make it right.

That the United States are trying to force their used-clothes on Rwanda. Like they don’t deserve their own clothes industry and to secure better products, local designs and local textiles is insane. Why shouldn’t they strive for that? Why shouldn’t Uganda strive for their own Bata’s? What is wrong with Tanzanian made shoes? Nothing really, that should be supported, especially if the United States wants to think long-term and create better exports. They would earn even more on ordinary trade of clothes, not second-hand that sold bulk and through other channels. But I am sure that Trump has no knowledge of this or even could imagine it.

This is clearly a step of imperialism from United States, since they cannot stomach, that the partners and the ones getting donations through USAID. Isn’t accepting to be a bazaar for their used stuff. The products that is B-Level and already had their day in the sunshine.

Knowingly, how he is America First, the man himself should understand how others wants to build to their own industries, but thinking Trump has that capacity of thinking is overstepping and thinking that he could actually calculate, that others are sovereign too and not only his state. The East African Republic’s shouldn’t be punished for acting in their own interests over second-hand clothes. Neither second hand shoes. That is insulting and infuriating. If it was just charity and done out direct needs. It would make sense, but if your forcing bad products, because of own will for quick-profits and at the same time destroying local industries. I understand why Rwanda, Tanzania and Uganda is trying to ban it and stop it. I respect that and stand behind it. Who wants a old T-Shirt, when you can buy a local-made?

If you buy a local-made, it would create a job for the one making it, the one designing it and the one selling, plus the distribution within the state. That is good business and create lots of job. These jobs create other jobs and funnel money in the system. So some of them will buy foreign design and clothes, that might even be American. That is how the United States should think, if they cared about a free-market narrative, but they are now planning to punish Rwanda and others, because they want to build-up own industry.

Trump is creating a trade-war over Second Hand Clothes.

Second Hand Clothes to East Africa!

Washington, DC – The President determined today the eligibility of Rwanda, Tanzania, and Uganda for trade preference benefits under the African Growth and Opportunity Act (AGOA). In response to a petition filed by the U.S. used clothing industry in March 2017, the Administration initiated an out-of-cycle review of Rwanda, Tanzania, and Uganda’s AGOA eligibility regarding their decisions to phase in a ban on imports of used clothing and footwear. The review found that this import ban harms the U.S. used clothing industry and is inconsistent with AGOA beneficiary criteria for countries to eliminate barriers to U.S. trade and investment. Based on the results of the review, the President determined that Rwanda is not making sufficient progress toward the elimination of barriers to U.S. trade and investment, and therefore is out of compliance with eligibility requirements of AGOA. Consequently, the President notified Congress and the Government of Rwanda of his intent to suspend duty-free treatment for all AGOA-eligible apparel products from Rwanda in 60 days” (AGOA – ‘ President Trump Determines Trade Preference Program Eligibility For Rwanda, Tanzania, And Uganda’ 30.03.2018).

This is infuriating and not cool. AGOA should be used as a method to not destroy industry in the developing countries, but add revenue both ways. Now the United States is just using imperialism. Trade-War with East African Countries.

Trump is foolish and also, this is not gaining sympathy and the reasons for this. This isn’t adding and just show how belittling and narrow-minded he is. But that we knew, we just have to see who spanks him. Peace.

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

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.

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)

Mogadishu Declaration on Regional Cooperation on the Current Drought (22.02.2017)

East-Africa

Mogadishu – Wednesday, 22 February 2016The following joint declaration was made in Mogadishu by H.E. Ismaïl Omar Guelleh, President of the Republic of Djibouti, H.E. Hailemariam Desalegn, Prime Minister of the Federal Democratic Republic of Ethiopia, H.E. Uhuru Kenyatta, President of the Republic of Kenya, and H.E. Mohamed Abdullahi Mohamed, President of the Federal Republic of Somalia.

1. We have come together as the heads of government of four countries in a region facing significant stress as a result of the current drought. Multiple seasons of failed rains and global weather patterns have, yet again, negatively affected the resilience mechanisms of millions of our people. This is evident in the immediate humanitarian crisis facing us today and will show up in longer term socio-economic vulnerability in communities that today are selling all their assets and uprooting their families for survival.

2. This situation, which may worsen in Somalia and result in a renewed famine over the coming months, could also have security and political implications in our region and beyond, as coping mechanisms are eroded and tensions over dwindling resources risks sparking conflict. Scores of people are moving both within countries and across borders in the hope of increasing their chances of survival. This upheaval is taking a particularly heavy toll on children and women, and makes people vulnerable to exploitation, human rights abuses and to criminal and terrorist networks. Drought-related disease outbreaks and inter-communal conflict are already on the rise.

3. While each of our governments is mobilising to respond, the dire situation calls for international collaboration and regional partnership between governments, civil society, aid organisations, business and international donors.

4. We commit ourselves to regional cooperation to facilitate a more comprehensive response and strong partnership.

5. We commit to strengthening our cross-border collaboration and our efforts to establish security and stability in Somalia to ensure an effective response to the drought and to enable further progress in peace building and state building in Somalia. We further commit to the provision of appropriate protection and assistance to those compelled to leave their areas of origin as a consequence of the drought, including those who have fled to neighbouring countries.

6. We will be consulting on a regular basis to review progress on these issues, and to agree upon any necessary collective action that will help our countries and region respond to this emergency. Furthermore, we have instructed our respective foreign ministers and drought response teams to work together and keep us briefed.

7. In the longer term, we commit to working together bilaterally and through existing regional bodies such as IGAD, the African Union as well as the United Nations to address the underlying structural issues that commonly affect our economies, environments and communities, including cross-border rangeland and water resource management.

END

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