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The East African : June 9th 2014
12 NEW STATUS Refugees to call Tanzania home Bu≥undians and Bantu-Somalis allowed to settle in the count≥y Food prices have risen due to inflation. Picture: File Kenya stakes budget on $1.5b Eu≥obond TURN FROM PAGE 8 cent of the budget while the justice, governance, law and order sector will take up 9.9 per cent. The government plans to spend at least eight per cent on national security while investments in agricultural, rural and urban development will take a combined 5.3 per cent of the budget. Health is budgeted to take 4.2 per cent, environment, water and natural resources a combined 4.4 per cent while social protection, culture and recreation will be allocated 2.1 per cent of the budget. “Incoming investors must be factoring in the issue of security,” said Gitahi Gachathi, the chief executive officer of EY, the audit firm. “Other key risks include bureaucracy, infrastructure, corruption and the high cost of doing business. The good thing is that at least there is a good story in what is being done about these risks,” said Mr Gachathi. The country’s energy sec- tor, which will be critical in uplifting the economy, has registered sluggish growth due to the high initial capital outlay and inability to mobilise adequate financial resources to undertake massive investments. Statistics from the Energy Ministry show that the national peak demand for power as at May 2013 had reached 1,347MW, against an installed capacity of 1,672MW, leaving the country highly exposed. The scenario is further blighted by the fact that Kenya experiences losses of close to 20 per cent on its national grid. Kenya depends on hydro- power for about 60 per cent of its energy but this has proved unreliable, especially whenever there are poor rains. Food security has also been a challenge, with thousands of families living in arid and semi-arid areas facing the threat of starvation each year despite the country’s high potential for irrigated agriculture. The second phase of Vision 2030 was announced in October 2013 and replaces the earlier round of policies that defined government operations between 2008 and 2012. “The second medium term plan aims to build on the successes of the first MTP, particularly in increasing the scale and pace of economic transformation through infrastructure development, and strategic emphasis on priority sectors under the economic and social pillars of Vision 2030,” the Eurobond document says. “Under the second MTP, transformation of the economy is focused on rapid economic growth in a stable macroeconomic environment, modernisation of infrastructure, diversification and commercialisation of agriculture, food security, and a higher contribution of manufacturing to GDP,” it adds. In the initial year of the first MTP, Kenya focused on a number of projects that were aimed at national healing and reconciliation following the 2007 post-election violence that was triggered by disputed presidential election results. Reported by Jeff Otieno, Joshua Masinde, Steve Mbogo and Kennedy Senelwa By ERIC KABENDERA The EastAfrican T anzania’s Ministry of Home Affairs has granted citizenship to 3,000 people who were originally Tanzanians but were captured by Arab slave traders centuries ago and sold to Somalia. They returned following the outbreak of the civil war in Somalia. The ministry has al- so granted citizenship to 162,256 Burundians who migrated to Tanzania in 1972, ending a decade long confusion over their status. However, the government is facing a dilemma over whether to relocate them to other parts of the country or keep them in Tabora where they have lived for 40 years. The UN refugee agency had advised that the refugees be distributed to 52 districts countrywide. However, the relocation came to a halt when some of the areas earmarked asked for money to establish development projects to support them and others rejected the idea due to security concerns. The Bantu-Somalis are ethnically from the Wazigua tribe from northeast Tanzania. Centuries after their ancestors left Tanzania, they retraced the route they took as slaves. At a meeting with the former refugees to grant them naturalisation certifi- The EastAfrican NEWS JUNE 7-13,2014 Refugees at a camp. Tanzania has given citizenship to refugees who had lived in the country for several years. Picture: File cates in Tanga, the Minister for Home Affairs Mathias Chikawe said some 150 Somali-Bantu refugees had opted out, hoping that the situation in Somalia would stabilise and they could return. “I call upon the refugees granted the citizenship to refrain from being persuaded by terrorists to participate in terrorism,” Mr Chikawe said. The process to grant citi- zenship to Somali-Bantus was put on hold in 2010 after the government discovered 3,000 By JOSHUA MASINDE Special Correspondent INVESTORS ACROSS East Africa will from Monday have a chance to invest in the Swala Oil and Gas initial public offering (IPO), seeking to raise TSh4.8 billion ($3 million) to finance its expansion. Swala Oil and Gas in Tanzania is a subsidiary of Australia-listed Swala Energy. The company received regulatory approval last month to sell 9.6 million shares at Tsh500 ($0.31) per share to upscale its oil and gas exploration activities in the country. “The amount raised from the IPO will provide sufficient working capital to meet the company’s anticipated business development, work programme, overheads and administration expenses,” a note from Tanzania Securities Ltd, the transaction advisors for the IPO, states. Tanzanian applicants will be allo- that the process was marred with corruption. The refugees who rejected citizenship will remain at a refugee camp and maintain their refugee status. Mr Chikawe said the former Burundians are now Tanzanians, and that the government is hesitant to relocate them to other parts of the country because it would contravene their right to live in any part of the country as new citizens. UNHRC Representative in Number of Bantu-Somalis given Tanzanian citizenship Tanzania Joyce Mends-Cole said making the Somali-Bantus citizens would enable them to build their lives and become self sufficient. “The decision by the Tanza- nian government to welcome the descendants to reapply EVICTED Last year, Tanzania expelled 15,000 Burundian and 7,000 Rwandan nationals accused of living in the country illegally. In an order issued on July 25, 2013, Tanzania’s President Jakaya Kikwete told 35,000 irregular migrants from Rwanda, Burundi and Uganda to leave the country by August. Many of them had lived in Tanzania for several decades. for their citizenship voluntarily is commendable. It shows the catalyst role Tanzania has played to look for solutions to global solutions,” she said. Swala Oil and Gas IPO opens in Da≥ cated priority shares, followed by the rest of East African and then foreign investors. “Applications may be subject to scal- ing back, pro rata, depending on the extent of the applications made by other applicants,” said Tanzania Securities Ltd on Friday. The IPO will open on June 9 and close on July 4, after which the oil and gas explorer’s shares will be on the Enterprise Growth Market Segment that lists small and medium enterprises on the Dar es Salaam Stock Exchange. Swala began the IPO process in 2013 and had hoped to list on the DSE before the end of the year but the process was “The amount raised from the IPO will provide sufficient working capital” Tanzania Securities Ltd delayed due to the slow process of approvals to be allowed to list. The minimum number of shares on offer are 100, valued at Tsh50,000, but there is no cap on how much an investor can buy. By the date of the prospectus issue, the company had issued 80 million ordinary shares. The offer represents 9.97 per cent of the issued capital assuming 100 per cent subscription of the IPO. The company has been operating in Tanzania since July 2011. The energy explorer is seeking to position itself in Tanzania amid the increasing oil and gas discoveries in East Africa and along the East African coast towards Mozambique. This follows the recent success of its exploration activities within the Rift Valley and work recently undertaken by Swala in the Kilosa-Kilombero and Pangani licenses. The firm’s assets in the East African Rift System span over 17,500km².
June 2nd 2014
June 16th 2014