For Online E-newspaper
The East African : Dec 15th 2014
64 DECEMBER 13-19,2014 BUSINESS, MARKETS AND FINANCIAL ANALYSIS THE MARKET WHISPERER EQUITY MARKETS (WEEKLY CHANGE IN BENCHMARK INDEX) NSE 20 Share Index Kenya 5,124.80 -1.16% (CUMULATIVE MOVEMENT) DSE All Share Index Tanzania 2,562.93 -1.95% USE All Share Index Uganda 1,921.00 -0.79% RSE All Share Index Rwanda 133.02 -1.18% JSE All Share Index South Africa 47,855.20 -3.22% NGSE All Share Index Nigeria 30,240.35 -8.99% up a 20 MW on-grid solar energy project in Uganda, as it seeks to tap its renewable energy potential. Executives at Uganda’s Uganda set fo≥ 20MW on-g≥id sola≥ ene≥gy T wo energy consortia have been selected to set Electricity Regulatory Authority and the GET FiT programme said they picked the Ugandan-Italian consortium — Simba Telecom Ltd and Building Energy SpA — and the United Arab Emirates-Spain consortium of Access and TSK Electronica to develop four solar plants of 5MW each to be shared between Tororo and Soroti districts in eastern Uganda, respectively. The projects, which at- tracted 24 foreign and local firms, are expected to be completed by GET FiT — a $370 million facility that was set up by ERA and the German development bank KfW in 2013, with support from the European Union — to provide qualified private developers of 1MW to 20MW with result-based premium payment on top of the regulated Renewable Energy Feed-in-Tariff. Four solar plants of 5MW each will be set up in Tororo and Soroti districts in eastern Uganda. Picture: File Initially, the programme targeted projects in hydropower, bagasse, and biomass because determining the appropriate tariff for solar energy in East Africa was challenging due to lack of reference projects. As such, developers were asked to bid a price per kWh, complying with the Uganda Electricity Act and sector regulations as well as technical, environmental, financial and legal requirements established under GET FiT. Benon Mutambi, ERA’s chief executive officer, said the solar plants are suitable for Uganda because they are quick to implement and The projects, which attracted 24 foreign and local firms, are expected to be completed by GET FiT — a $370 million facility can be built close to consumers, reducing transmission losses. He said that whereas the average tariff for the first 20MW solar projects over the 20-year operation will be set at $16 cents per kWh, end users will only pay $11 cents per kWh, with the remaining costs covered by the GET FiT programme. Moses Murengezi, the ad- visor to the Permanent Secretary in Uganda’s Ministry of Energy and Mineral Development, said the country has been reluctant to invest in solar energy due to high feed-in-tariffs. “However, over time, the Ugandan economy has been growing and this economic growth needs more electricity to support industrialisation,” said Eng Murengezi. Uganda’s electricity generation has increased over the past decade from 380MW in 2003 to 852MW in 2013 after the commissioning of one major and several mini hydropower projects and co-generation by sugar producing companies. BoU ≥etains neut≥al stance on inte≥est ≥ates in Dec UGANDA’S CENTRAl banker kept its benchmark policy rate stable at 11 per cent during its last monetary affairs meeting for 2014, a decision mainly premised on a continuing need to contain inflation below the official target as it battles global trends that have stimulated sharp gains in the US dollar. The country has maintained an averaged core inflation target of five per cent per year since the mid2000s in an attempt to achieve robust growth without losing ground to sharp inflation cycles. Annual headline inflation rose slightly to 2.1 per cent in November compared with 1.8 per cent posted the previous month, a pattern that has brought some relief to policy experts ahead of a tense election season anticipated in 2015 but is somewhat clouded by underlying price pressures, observers say. Under these circumstances, an- nual core inflation is projected in the range of 2-4 per cent, before increasing to around five per cent over the next 12 months — a scenario that has prompted the use of cautious policy measures necessary to curb future spikes in inflation movements. On the other hand, the Uganda shilling has lost more than five per cent against the US dollar since September; a fate shared by other currencies amid strong signs of recovery exhibited by the US economy over the past six months. Faced with relatively modest re- serves of roughly $2.9 billion, Bank of Uganda appears resigned to letting the storm pass with limited intervention. “Core inflation is expected to rise because of increased domestic demand over the forecast period and the pass-through of the nominal depreciation of the exchange rate to domestic prices, which is yet to complete. However, the BoU recognises that there are upside risks to inflation over the medium term that include the risk that domestic demand may be stronger than is currently forecast,” explained Bank of Uganda Governor Emmanuel Tumusiime-Mutebile “In addition there may be further exchange rate depreciation pressures and food prices may rise by more than expected if harvests are poor next year,” he added. Published at Nation Centre, Kimathi Street, and Printed at Mombasa Road, Nairobi by Nation Media Group, Box 49010, GPO Nairobi, 00100. Registered at the GPO as a newspaper. Nairobi Office, Tel: 3288000, 211448, 337710, Fax 214531, 213936. Dar es Salaam Office. Tel: 2119657/8. Kampala Office, Tel: 232771, 232772. Fax 232781 Download free QR Readers from the web and scan this QR (Quick Response) code with your smart phone for pictures, videos and more stories Fo≥ fi≥st time in 5 yea≥s, oil b≥eaks $60 th≥eshold THE US benchmark price for crude oil broke the symbolically important $60 a barrel mark on Thursday for the first time in more than five years, underscoring a remarkable drop of over 40 per cent since early June. It was accompanied by an- other steep decline in petroleum prices, with the AAA motor club reporting that the national US average for a gallon of regular petrol on Thursday fell to $2.62, nearly 2 cents below the day before. The immediate cause for the continuing collapse in oil prices was a comment by Ali Al-Naimi, the Saudi Oil Minister, in Lima, Peru, on Wednesday that suggested that the OPEC cartel was not likely to change any time soon its decision last month to leave production quotas unchanged. “Why should I cut production?” Al-Naimi said. Saudi officials had projected that oil prices would drop to about $60.
Dec 8th 2014
Dec 22nd 2014