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AWIEF Awards celebrate women entrepreneurs in Africa

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Our Reporter
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AWIEF Awards celebrate women entrepreneurs in Africa

The Africa women Innovation and Entrepreneurship Forum (AWIEF) annual Awards recently honoured and celebrated the achievements of women entrepreneurs and innovators across the African continent. Twenty-two women founders and entrepreneurs were selected as finalists, from 10 different African countries, across eight different categories.

The 2019 AWIEF Awards, which took place at the Cape Town International Convention Centre (CTICC), showcased a diverse representation of finalist entrepreneurs from across the continent, including from Cameroon, Ethiopia, Ghana, Kenya, Mali, Nigeria, South Africa, Tanzania, Uganda and Zambia.

“We are happy to celebrate with our trailblazers and congratulate them for their achievements,” said Irene Ochem, AWIEF founder and chief executive officer.

Promoting excellence in entrepreneurship and innovation amongst women-owned businesses in all sectors and across all 54 African countries is the aim of AWIEF, which celebrated the five-year anniversary of its benchmarking annual Conference and Expo this year, October 29-30, 2019, in Cape Town.

The AWIEF Awards’ panel of judges is made up of high-calibre industry experts and thought leaders spread across the continent.

Young Entrepreneur Award
Winner:
Lola Alli, Lagos Executive Cardiovascular Clinic (Nigeria)
Runners-up:
Ola (Orekunrin) Brown, Flying Doctors (Nigeria)
Beatrice Haule, AfriAgric Products (Tanzania)

Tech Entrepreneur Award
Winner:
Caroline Corbett, SmartBlade (South Africa)
Runners-up: 
Rebecca Enonchong, AppsTech (Cameroon)
Diane Temogne, Engineering Consulting and Services (Cameroon)

Social Entrepreneur Award
Winner:
Sizani Ngubane, Rural Women’s Movement (South Africa)
Runners-up:
Laurence Esteve, Zip Zap (South Africa)
Efua Asibon, Dislabelled (Ghana)

Global Brand Award
Winner: 
Shantelle Booysen, Elim Spa Products (South Africa)

Agri Entrepreneur Award
Winner:
Caroline Pomeyie, ProFish (Ghana)
Runners-up:
Affiong Williams, ReelFruit (Nigeria)
Evelyn Namara, Vouch Digital (Uganda)

Empowerment Award
Winner:
Charlot Magayi, Mukuru Clean Stoves (Kenya)
Runners-up:
Mary Inzofu, Njia Empowerment Organisation (Kenya)
Nambula Kachumi, WeCreate (Zambia)

Creative Industry Award
Winner:
Genet Kebede, Paradise Fashion (Ethiopia)
Runners-up:
Kapasa Musonda, Mangishi Doll Co. (Zambia)
Abby Ikomi, House of Irawo (Nigeria)

Lifetime Achievement Award
Winner:
Kristine Pearson, Lifeline Energy (South Africa)
Runners-up:
Oumou Sangaré, Festival International du Wassulu (Mali)
Joke Silva, LUFODO Group (Nigeria)

AWIEF Awards 2019 featured also the inaugural APO Group African Women in Media Award and the TIA Women in Innovation Awards.

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Tullow Oil says too early for new FID date on oil project as Energy Minister reveals govt has solution

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Our Reporter
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Tullow Oil

Tullow Oil has said it is still too early to give a new timeline on a final green light for investment in Uganda’s first oilfields, Tullow Oil Chief Executive Paul McDade said on Wednesday, reiterating the company’s plan to sell down its stake to TOTAL and CNOOC in US$900 million transaction that still hangs in balance over tax issues.

“We will not make an FID (final investment decision) on the project at the current equity,” McDade told news agencies. “To get the right conditions to sell down more of the project, we need more certainty over the progress towards FID.”

Tullow’s plan to sell another stake in its 230,000 barrel per day project in Uganda to France’s Total and China’s CNOOC, already partners in the fields, was called off in August due to a tax dispute with the Government of Uganda which wants to earn more tax revenue than what companies are willing to give.

Energy Minister Eng. Irene Muloni said on Wednesday she was optimistic the government can resolve a tax dispute with oil companies in time to get first oil flowing by 2023.

Muloni said yesterday in South Africa that she expected a final investment decision (FID) from oil companies Tullow, France’s Total and China’s CNOOC by the end of the first quarter next year on an oil export pipeline through neighbouring Tanzania.

Muloni said the government had offered a solution. “We have engaged with the companies. We have offered to them a solution,” Muloni said at the Africa Oil Week conference in Cape Town.

“We are hopeful that between now and the end of the year they will re-engage to try to find a solution,” she said, adding that it would enable first oil through the pipeline by 2023.

Tullow’s plan to sell a stake in the project to partners Total and CNOOC was called off in August after the firms failed to reach agreement with Ugandan tax authorities on the tax relief on money Total and CNOOC would have paid to Tullow.

Once pipeline construction begins, Muloni said it would take about three years to complete.

Meanwhile Muloni has invited bidding on five blocks, speaking at an African oil conference in Cape Town.

Muloni added that she was keenly awaiting companies to take a final investment decision regarding the construction of an oil export pipeline through neighbouring Tanzania.

In January 2017, Tullow announced that it had agreed a substantial farm-down of its assets in Uganda to Total. Under the Sale and Purchase Agreement, Tullow agreed to transfer 21.57 percent of its 33.33 percent interest in Exploration Areas 1, 1A, 2 and 3A in Uganda to Total for a total consideration of US$900 million.

CNOOC Uganda Limited (CNOOC) subsequently exercised its pre-emption rights under the joint operating agreements to acquire 50 percent of the interests being transferred to Total on the same terms and conditions.

In August 2019, Tullow announced that this farm-down was terminated, following the expiry of the Sale and Purchase Agreements (SPAs). The termination of the transaction was a result of being unable to agree all aspects of the tax treatment of the transaction with the Government of Uganda.

Technical work on the development and the upstream pipeline is well advanced and the Joint Venture Partners had been targeting reaching FID by the end of 2019, but the termination of the farm-down agreement with Total and CNOOC, has created uncertainty to the extent that some suppliers who had invested expecting to get contracts are now worried.

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Burundi boosts AMISOM operations with combat vehicles

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Our Reporter
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Burundi's combat vehicles delivered in Somalia

The Burundian contingent under the African Union Mission in Somalia (AMISOM) has acquired a fleet of armoured personnel carriers to reinforce ongoing counter-terror operations in Somalia.

The Government of the Republic of Burundi delivered at least 20 combat vehicles as contingent-owned equipment to its troops serving under AMISOM.

The high rate of wear and tear of equipment due to the harsh operating environment requires AMISOM troop-contributing countries to replace equipment periodically to ensure the efficiency of operations.

Burundian troops alongside other forces from Djibouti, Ethiopia, Kenya, and Uganda, are deployed in Somalia under a UN Security Council mandate to support the Somali security forces to defeat terrorist groups.

On Tuesday, the Special Representative of the Chairperson of the African Union Commission (SRCC) for Somalia, Ambassador Francisco Madeira, inspected the new equipment in Mogadishu.

Also presented was the Deputy AMISOM Force Commander in-charge of Logistics and Support, Maj. Gen. George Owinow, and the Commander of the Burundian troops under AMISOM, Brig. Gen. Richard Banyankimbona.

Madeira, who is also the Head of AMISOM, noted that the military hardware would boost AMISOM’s capacity to combat terrorism while ensuring safety of the soldiers.

“Our soldiers are valiant and brave however they need protection while fighting. So, these armoured personnel carriers will protect them as they fight the enemy,” said Ambassador Madeira.

“They are force enablers and force multipliers, no doubt and I thank the Burundi President for providing this essential equipment,” he added.

The AMISOM Burundi contingent commander, Banyankimbona said the carriers would enhance his troops’ movement, protection of civilians, UN and AMISOM personnel. The Burundian troops under AMISOM secure Middle Shabelle region.

“We are deploying them to support the implementation of AMISOM mandate,” said Banyankimbona.

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China gifts EAC 12 cars worth US$400,000 for capacity building programmes

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Our Reporter
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Political Counselor at the Chinese Embassy in Dar es Salaam Mr. Liang Lin and EAC SG Liberat Mfumukeko

The People’s Republic of China has made a commitment to give the East African Community (EAC) Secretariat 12 cars worth US$400,000 to be used in various capacity building programmes at the Community.

Making the announcement,  Mr. Liang Lin, the Political Counselor at the Chinese Embassy in Dar es Salaam, Tanzania, said that China was keen on working with the EAC in, among other fields, education, infrastructure development, trade, prevention of Ebola, peace and security, and capacity building initiatives.

Lin, who paid a courtesy call on the EAC Secretary General, Amb. Liberat Mfumukeko, at the EAC headquarters in Arusha, Tanzania, disclosed that China was working on infrastructure projects that would promote connectivity across the entire African continent including road and railway networks, adding that other areas were developing hydropower, power transmission and expansion of seaports.

He further said that China would also assist in building industrial parks in the EAC Partner States, and is looking forward to more discussions on the EAC initiative on Bamboo farming in the region.

He revealed that plans were underway to implement infrastructure development projects worth US$16 billion to be implemented over a three year period on the entire African continent courtesy of the 2018 Beijing Summit of the Forum on China-Africa Cooperation.

On capacity building, Lin said China would be providing 50,000 scholarships to African countries and urged EAC to tap into these study opportunities.

Lin, who represented the Chinese Ambassador to Tanzania and the EAC, further presented a donation of US$200,000 from China’s Ministry of Foreign Affairs to the Secretary General, monies which will go towards capacity building programmes in the EAC.

EAC Secretary General, Amb. Liberat Mfumukeko on his part expressed his appreciation to the People’s Republic of China for its generous donation towards the Community’s capacity building programmes.

Mfumukeko informed Mr. Lin that the EAC integration process was well on course with consistent implementation of the EAC Customs Union, Common Market and Monetary Union Protocols.

Mfumukeko said that EAC Partner States had agreed to harmonise cross-border rules and procedures and to open their borders thereby increasing intra-regional trade.

On the free movement of persons, the Secretary General said that there were no visa fee requirements for East Africans traveling across the region with some Partner States allowing the use of national identity cards as traveling documents, adding that the countries were issuing the International East African e-Passport which enables travel within the region and beyond.

On infrastructure development, Mfumukeko informed the Chinese envoy that the EAC Partner States were jointly implementing regional infrastructure projects that had been agreed upon by the biennial infrastructure development retreats by the Summit of EAC Heads of State.

He urged China to upscale multilateral financing for development projects in East Africa to complement the current bilateral financing for the same.

On the EAC Political Federation, the Secretary General informed Lin that the Community’s ultimate goal was to become a Federation and that it would launch the national stakeholders’ consultations on the Draft Constitution for the EAC Political Confederation before the end of the month, adding that Partner States had provided a budget for the process.

Mfumukeko said that each EAC Partner State had nominated two Constitution Making Experts and one Legal Draftsman to assist in drafting a basic law for the proposed Political Confederation which is a transitional model to the Political Federation.

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COMESA, TMEA in deal to promote trade in the region

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Our Reporter
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TMEA Executive Director Frank Matsaert (L) and Secretary General Chileshe Mpundu Kapwepwe signing the MoU in Lusaka

COMESA and the Trade Mark East Africa TMEA recently signed a Memorandum of Understanding to promote trade in the region by removing obstacles that impede the smooth flow of trade amongst the Member States in the region.

Working closely with international and regional organizations, such as Trade Mark East Africa, national institutions, the private sector and civil society organizations, this will enable promote trade by unlocking the economic potential of the COMESA region through increased physical access to markets, enhanced trade environment and improved business competitiveness.

The MoU marks an important milestone in providing a framework of cooperation and partnership between the two organizations on areas of common interest. These include market access, development of border post infrastructure, improvement of trade environment through trade facilitation and inclusion of the private sector as key players in economic development.

Trade Mark East Africa Executive Director Frank Matsaert and COMESA Secretary General Chileshe Mpundu Kapwepwe signed the pact at the COMESA Secretariat days ago. “We are getting into this partnership to ensure that through policy formulation, creation of trade facilitation tool which are automated as well as standards and nontariff barrier (NTB) removal so that business people, whether SME or large enterprises get the benefits,” said Matsaert.

Ms. Kapwepwe indicated that jointly, COMESA and TMEA will implement trade facilitation initiatives in the region through application of respective regional and international instruments. In particular, support will be provided to Member States to implement the World Trade Organization Trade Facilitation Agreement.

The partnership between the two organizations is envisaged to speed up the implementation of joint programmes and actions aimed at; improving infrastructure and application of Technical Standards and Sanitary and Phyto-Sanitary measures; reducing the cost, time and other barriers in the movement of transit goods through electronic monitoring, regional transit guarantees and other initiatives.

It will also support the improvement of efficiency along the major trade and transport corridors including logistics and monitoring performance along such corridors; addressing gender related barriers to effective participation of women and youth in trade including capacity building, research and joint mobilization of resources for implementation of programmes of mutual interests, among others.

The partnership is in line with the aims and objectives of COMESA to cooperate in strengthening the relations between the Common Market and other partners to contribute to the economic development of the region.

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10 Ways to trample and smother business innovation

By
Guest Writer
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Martin Zwilling

By Martin Zwilling

Success in any business these days requires a constant flow of new and innovative solutions, to keep up with changes in the market, competition, and to attract new customers. Yet in my role as a small business advisor, I still see a singular focus on achieving repeatable processes and “cookie-cutter” manufacturing. I don’t believe these two objectives have to be mutually exclusive.

The best entrepreneurs, and the best executives in mature businesses, have learned how to foster both high efficiency and high creativity, in a balance that keeps their business ahead of the pack on both sides of the equation. These business leaders are constantly are on the prowl for mistakes to avoid and opportunities to improve their impact.

I saw some good insights on the most common mistakes that crush creativity, in the classic book, “Lateral Thinking Skills,” by Paul Sloane. Sloane is well recognized for his work on innovation and lateral thinking (new ways of looking at a problem rather than proceeding by logical steps). Here is my summary of the ten top creativity mistakes we both still see too often:

Criticize any new idea or employee suggestion. A natural human reaction to any new idea is to point out potential weaknesses. New ideas tend to not be fully thought through, so it is easy to reject them as ‘bad.’ This only discourages the person from making any future suggestions. You must praise creative thinking, and evaluate results later.

Avoid brainstorming sessions to find solutions. Brainstorming is still seen by many as old-fashioned and passé. Recent evidence is that brainstorming, done right, is still one of the best ways of generating fresh ideas from people at all levels. Keep brainstorming sessions short, non-judgmental, high energy, and chaired by an enthusiastic facilitator.

Escalate all problems upward to senior management. In fact, people lower in the organization are often closer to the customer, and have more insight into what works and what doesn’t. Avoid the macho concept that only top management can solve problems, or address strategic challenges. Decisions made lower down always get more buy-in.

Pervasive focus on efficiency rather than innovation. There is nothing wrong with a focus on making the current business model work better. Yet ‘better’ sometimes requires ‘different’ (innovation), rather than just more efficient (faster or cheaper). An exclusive focus on efficiency is a dangerous and limiting to long-term growth.

Promote the belief that hard work will solve all problems. Often we need to find a different way of solving a problem than just to work harder at the old way of doing things. Every working day needs time for some fun, some lateral thinking, some wild ideas, and some testing of new initiatives. Make sure people take time to look for new opportunities.

Plan in great detail and avoid things not in the budget. Markets and needs change so quickly these days that the view we had last week can be out of date today. Business plans should be loose frameworks to be used as guidelines rather than detailed route maps. Budgets must be reviewed monthly for adjustments to accommodate innovations.

Create a culture of finding blame for every failure. Many innovation projects will fail, but are still worthwhile, because only by trying them can you determine whether a promising idea is a dud or a winner. If people fear they will be blamed for failures, they will quickly avoid attempting something new. Encourage an entrepreneurial culture.
Provide bonuses for volumes, not milestones.

Typical incentives give percentages of quarterly revenues and contribution as rewards for success. You need different rewards for a team running an innovation project, such as reaching agreed milestones. An even better alternative could be stock options, linked to the long-term success of the company.

Always promote from within rather than seek fresh blood. Promoting from within is generally a good thing, but should not be used exclusively. For real creativity and innovation, an outsider not bound by your company cultural assumptions and beliefs, and bringing a new set of experiences to the table, will see and fight for new opportunities.

Assign innovation projects to production organizations. Existing production teams are generally too busy meeting monthly deadlines and targets to give new innovations the attention they need. It is better to put new products or services into a new or special department, sometimes known as an innovation incubator, to get the focus they require.

Creativity and innovation are fragile business elements, and they can be easily starved, smothered, and trampled by the larger daily operational demands and old ways of doing things. Business leaders, and every member of their team, need to proactively use lateral thinking skills to develop and nurture creativity and innovation. Your long-term business survival depends on it.

The writer is a veteran startup mentor, executive, blogger, author, tech professional, professor, and investor. Published on Forbes, Entrepreneur, Inc, Huffington Post, etc.

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Global coffee yields to decrease 0.9 percent in 2019/20

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Our Reporter
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Mature coffee tree

World coffee output in coffee year 2019/20 is projected 0.9 percent lower at 167.4 million bags with a 2.7 percent decline in Arabica output to 95.68 million bags, while Robusta production is expected to rise by 1.5 percent to 71.72 million bags, according to the International Coffee Organisation (ICO).

ICO in its Coffee Market Report for October 2019 says South America’s production is expected to fall by 3.2 percent to 78.08 million bags, due largely to the decline in Brazil’s Arabica output in its off-year of the biennial crop cycle. While Production from Asia & Oceania is projected to grow by 1.9 percent to 49.58 million bags due largely to a recovery in Indonesia’s output while Viet Nam is expected to remain stable.

Central America & Mexico could see an increase of 0.9 percent to 21.54 million bags.

Africa’s output is estimated to decline by 0.6 percent to 18.2 million bags. Increases in production from Ethiopia of 1.2 percent to 7.55 million bags and from Uganda of 1 percent to 4.75 million bags will likely be offset by declines from other African producers. Côte d’Ivoire’s output is projected to decrease by 4.1 percent to 2 million bags, following an increase of 41.6 percent to 2.09 million bags in 2018/19. Tanzania could see a decrease of 17.9 percent to 924,000 bags in 2019/20 as its Arabica crop enters an off-year.

World production in coffee year 2018/19 is estimated at 169 million bags, which is 5.4 percent greater than in 2017/18. Production of Robusta increased 11 percent in 2018/19 to 70.67 million bags. Arabica production rose by 1.7 percent to 98.33 million bags, as declines from Honduras, Mexico and Peru offset the increase from Brazil.

World coffee consumption

Meanwhile, according to the report, world coffee consumption growth is likely to slow in 2019/20 in line with the slower growth expected for the global economy, and demand is projected to increase by 1.5 percent to 167.9 million bags.

Compared to an average annual rate of 2.1 percent in the previous 10 years, growth in global consumption in 2018/19 and 2019/20 is estimated to be slower. World consumption in 2018/19 grew 1.7 percent to 165.35 million bags, and in 2019/20, it is expected to rise by 1.5 percent to 167.9 million bags.

Global coffee demand

Global coffee demand is expected to be affected by a slowdown in global economic growth, particularly for emerging markets and developing economies, as described by the International Monetary Fund in its October 2019 World Economic Outlook. In 2019/20, coffee demand in Asia & Oceania is projected to grow by 3 percent to 37.84 million bags, and in North America by 1.7 percent to 30.97 million bags. Africa’s demand for coffee is estimated to grow by 1.8 percent to 11.94 million bags, and Central America and Mexico’s demand by 1.4 percent to 5.47 million bags and Europe’s by 1.2 percent to 54.54 million bags. However, consumption in South America is likely to remain stable at 27.14 million bags in 2019/20.

Global coffee exports

Global exports in September 2019 declined by 3.1 percent to 9.29 million bags. Robusta shipments fell by 12.9 percent to 3.02 million bags, and Colombian Milds decreased by 8.5 percent to 1.08 million bags. However, exports of Other Milds increased by 5 percent to 1.98 million bags while Brazilian Naturals grew by 5.2 percent to 3.21 million bags.

Despite the fall in September shipments, total exports for coffee year 2018/19 reached a new record of 129.43 million bags, 8.1 percent higher than in 2017/18. Shipments of both Arabica and Robusta increased in 2018/19, by 12.3 percent to 85.01 million bags and 0.9 percent to 44.43 million bags, respectively.

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BOU lauds credit institutions as they accumulate Shs963b in assets

By
George Mangula
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Customers in banking hall

All credit institutions remained adequately capitalized as at end of June 2019 and held strong liquidity buffers. The sub-sector registered significant growth in total assets from Shs624.5 billion as at end June 2018 to Shs963 billion as at end June 2019, says the Bank of Uganda (BOU) in its Financial Stability Report for June 2019.

The report attributes the increase to a new entrant in the subsector.

Net loans and advances for the sub-sector, according to the report,  increased from Shs.337.7 billion to Shs596.4 billion over the period under review, while total deposits rose from Shs437.8 billion to Shs.463.1 billion.

Capital Adequacy

As at end June 2019, the credit institutions sub-sector’s core and total capital adequacy ratios stood at 21.9 percent and 23.5 percent respectively, an improvement compared to 20.9 percent and 22.5 percent as at end June 2018.

Asset Quality

The sub-sector’s Non-Performing Loans (NPL) ratio stood at 4.2 percent as at end June 2019, up from 4.1 percent in the previous year. Non-performing loans in the sub-sector increased from Shs13.7 billion as at end June 2018 to Shs25.6 billion as at end June 2019, largely due to one institution, whose asset quality deteriorated, accounting for 85.3 percent of the sub-sector’s total non-performing loans.

Profitability

On aggregate, Credit institutions registered a net profit of Shs7.5 billion in the year to June 2019. The cost-to-income ratio remained high and was in part attributed to high costs of deposits. Interest income was the main source of income for credit institutions, rising to 83.6 percent of total income during the second quarter of the year 2019.

Liquidity

The Credit Institutions’ aggregate ratio of liquid assets to total deposits stood at 52.9 percent as at end June 2019, well above the minimum prudential requirement of 20.0 percent. Liquid assets increased from Shs208.7 billion to Shs244.7 billion in the year to June 2019. The sub-sectors total loans to deposits ratio was 126.3 percent mainly due to one institution which had a high ratio, as its loans were largely financed by borrowings.

MDIs see total assets grow to 642.3 billion

All five licensed Microfinance Deposit-taking institutions (MDIs) remained adequately capitalized in the year to June 2019. Total assets held by MDIs increased to Shs642.3 billion from Shs.562.2 billion largely due to growth in gross loans by Shs55.2 billion and fixed assets by Shs.14.9 billion.

Capital Adequacy

On aggregate, the sub-sector’s core and total capital to risk-weighted assets ratios stood at 41.8 percent and 45.0 percent, compared to 44.4 percent and 48.0 percent as at end June 2018, respectively. Both ratios were above the statutory minimum requirements of 15 percent and 20 percent, respectively.

Asset Quality

The MDIs portfolio-at-risk ratio improved to 3.9 percent from 4.4 percent due to an increase in gross loans by Shs55.2 billion. The ratio of provisions to non-performing loans stood at 88.3 percent, indicating adequate provisions to cover potential credit losses.

Earnings

Aggregate net profit after-tax was up by Shs1.7 billion and amounted to Shs9.1 billion as at end June 2019. This was due to a more than proportionate increase in total income of Shs10.0 billion, compared to an increase in total expenses of Shs8.1 billion. Four of the five licenced MDIs were profitable during the period under review.

Liquidity

All MDIs maintained liquid asset ratios in excess of the statutory minimum requirement of 15 percent of total deposit liabilities. Total liquid assets held increased by Shs7.4 billion to Shs.156.3 billion largely due to an increase in investment in government securities. However, the liquid assets-to-deposits ratio declined to 63.4 percent as at June 2019 compared to 68.9 percent as at end June 2018 while the ratio of total loans to total deposits stood at 77.4 percent, below the 85 percent prudential limit.

The Retirement Benefits Sector

The sector comprises 63 licensed retirement benefits schemes with a total of Shs 13.0 trillion assets under management (AUM) as at end June 2019. Assets in the retirement benefits sector rose by 4.1 percent over the past four quarters to June 2019. The sector posted a 1 year median return of -11.8 percent, 15.6 percent and 9.8 percent compared to -8.8 percent, 10.9 percent and 9.6 percent for quoted equities, fixed income and money markets respectively.

Systemic market assessment

Asset allocation for retirement benefits schemes continues to depict a heavy bias towards fixed income securities with government securities accounting for 74.6 percent.

Investments in quoted securities are the second largest accounting for 13.5 percent of the total sector investment. The performance of equities largely mirrored that of the Kenyan stock market due to the large proportion (70 percent) of quoted equities held in Kenya.

The insurance sector

The insurance industry registered 9.1 percent growth in total assets at the end of June 2019. Similarly, total industry gross written premiums (GWP) increased by 12.2 percent to Shs.495 billion in June 2019, from Shs.442 billion in June 2018.

Non-life GWP increased by 8.4 percent Shs USh.310 billion to sHS336 billion while life GWP increased by 24.7 percent from Shs99 billion to Shs124 billion during the same reference period.

In addition, health maintenance organization (HMO) GWP increased by 9.0 percent from Shs28.5 billion to Shs35.6 billion while specialist Micro insurer GWP amounted to USh.29 million in June 2019.

Between June 2018 and June 2019, the industry’s net incurred claims increased by 5 percent, from Shs131.2 billion to Shs137.7 billion. This was attributed to a rise in the non-life net incurred claims and HMO which rose by 17.2 percent and 27.6 percent over the same period. On the other hand, the life net incurred claims declined by 22.2 percent from Shs46.4 billion to Shs36 billion.

According to the report, management expenses for the sector stood at Shs121.2 billion, with the specialist micro insurer accounting for the largest proportion of these expenses.

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Uganda and Equatorial Guinea pave way for Africa’s oil future

By
George Mangula
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Uganda’s Minister of Energy and Mineral Development Irene Muloni, is leading Ugandan delegation

Africa Oil Week got off to a high profile start with a prestigious Ministerial and VIP Symposium on the in Cape Town, South Africa. Over 200 senior executives from International Oil Companies (IOCs)  and National Oil Companies (NOCs) along with ministerial delegations from leading African nations joined to look for solutions to Africa’s energy challenges.

Amongst the traditional African oil giants were several countries that have been rapidly growing their oil and gas credentials in the form of Uganda and Equatorial Guinea.

Uganda joins the exporters club

The prospects for the hydrocarbon sector in Uganda are looking bright – Uganda will soon export its first crude oil from its Lake Albert oil discovery to the international market, making it one of the countries to have joined the oil exporting countries after the government came to an agreement with Tanzania that enables it to transport its crude oil through the East African Crude Oil Pipeline (EACOP), a 1,445-kilometre pipeline from Hoima, Uganda, to the port of Tanga in Tanzania is the proposed route.

“It is exciting times for Uganda, we are now preparing for production,” Hon Irene-Margaret Muloni, minister of energy and mineral development, Uganda, says. “It has taken us some time, but we are there. The exploration discovered six billion barrels and we have plans to recover about 1.4 billion of these. And now the issue is to get that out of the ground. We’ve already agreed with Tullow, Total and CNOOC the way forward to commercialise that oil.

“We need two big destinations. One is access to the international markets through the pipeline to add value and ensure security of supply within the East Africa region. Also, we are importers of petroleum products now, so we have a refinery under development.” That refinery is planned for Kabaale in Western Uganda’s Hoima district, along the eastern shore of Lake Albert, close to the border with the Democratic Republic of Congo. Once the refinery is completed, expected to be in 2022, it will produce kerosene, gasoline, diesel, heavy fuel oils for Uganda and other local markets. In addition to the refinery an airport, hospital and a 100-megawatt thermal power plant are being constructed.

“For these two big projects the pipeline is more advanced with the FEED signed and an intergovernmental agreement with Tanzania. We are now negotiating the host government agreements between us and setting up the private companies that are going to own and operate the pipeline. For the refinery we’ve already approved the configuration of the refinery that will handle 60,000 barrels per day. Those two projects are ongoing and as a country we are preparing the infrastructure.”

With the Lake Albert oil beginning to flow, Uganda has set its sights on further resources and in May announced a second licensing round for additional oil exploration in five blocks in western Uganda that will be announced before the end of 2019. “It is all about attracting companies to come and join us in the exploration. We have only licenced about 15% of the resources but the appetite is there because the parameters are world class. The success rate when you drill is hovering around 85%, meaning every time you drill a hole there is a good chance of success.”

More from Equatorial Guinea

Later this month Equatorial Guinea will announce the winning bids for its 27 oil and gas licences. The bidding round is reported to have attracted a high level of interest, especially among Chinese oil and gas companies following a roadshow in Beijing.

“We have many companies who have expressed an interest,” Hon Gabriel Mbaga Obiang Lima, Minister of mines, industry & energy, Equatorial Guinea says. We have pre-selected some of these because we see the most serious companies, but the important thing is that the key blocks have already attracted interest.”

Equatorial Guinea is already home to several majors including ExxonMobil. Kosmos, Marathon and Noble and hopes to attract several more in this latest round.  “We are doing well, and we are delivering great revenue,” Gabriel Mbaga Obiang Lima adds. “But the issue here is what we are going to do in the future. Two of the fields are mature fields and we need to decide about them going forward. That revenue has allowed us to carry out investment in our infrastructure, but we are still keen on bringing in more companies.”

This year has been the Year of Energy 2019 in Equatorial Guinea, that saw several high-level investment conferences and roadshows in Malabo and internationally, and they are following that up next year with the Year of Investment 2020. “It has been very successful,” the minister explains. “A lot of people have heard more about what to do and we have been able to promote more content. We have also been able to prepare ourselves for the next year, 2020, which is going to be the investment year. We are looking to build refineries which will be the next stage of our development.”

Two of the challenges that often curtail investment in Africa are stringent local content rules and a regulatory framework that can be fluid. For Equatorial Guinea the subject of local content is not an issue according to Gabriel Mbaga Obiang Lima. “We have a limited population so local content have been mainly focused on a specialised sector such as the service industry,” he explains. “In general, I can say that more than 90% of the companies have done a very good job regarding local content that we’re happy with.”

As for the regulatory regime, Equatorial Guinea are going to be working next year on the new law. “We believe that our national companies will work more efficiently if, rather than having regular responsibility from a minister, it will be controlled by a law.”

Equatorial Guinea and Uganda were amongst almost forty ministerial delegations in attendance at the symposium. It was a fertile breeding ground for the movers and shakers of the industry and amidst the presentations, cocktails and networking, new deals and partnerships were being forged that could bear fruition over the coming months.

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MTN unveils voice bundles for clients to call across all networks in Uganda

By
Our Reporter
-
a lady making a call

In a move aimed at giving customers even more value, MTN customers are set to talk more this festive season following the launch of revolutionary daily voice bundles that give customers the freedom to make calls to both MTN customers and those on other networks, using the same voice bundle and at no additional cost.

Under the theme “More supu in your MTN daily Voice Bundles”, the new offer from MTN is the first ever such service that complements the government’s efforts to reduce the cost of making calls to Ugandans. Commenting on this new development, MTN Uganda Chief Executive Officer, Mr. Wim Vanhelleputte said, “For the first time ever, the cost of calling an MTN number is the same as that of calling other mobile networks in Uganda. Customers will still pay the same amount of money for their daily bundles, get the same number of minutes except that some minutes can now be used to make calls to numbers on other networks in Uganda”. In either instance, the minutes can be used to call both mobile and fixed numbers.

Until now, MTN has offered customers competitive daily voice bundles designed to fit their budgets and communication needs. These promotional on-net and off-net daily voice bundles however, further emphasize MTN’s intention of making communication more affordable.

“We are offering competitively priced voice bundles to our customers but are continuously looking for even more ways of giving more value to our customers. This offer demonstrates our efforts to continue being the network that gives more “supu” (more value) in our services”, added Wim.

MTN daily voice bundle costs range from as low as Shs500 for 6 minutes to Shs2,000 for a duration of 60 minutes valid for 24 hours. This promotional offer however means that some of these minutes in the daily voice bundles can be used to call other networks though a customer can still choose to use all the minutes to call MTN to MTN numbers. This offer undoubtedly, makes MTN daily voice bundles the best option on the market today. It offers customers great value, allowing them the flexibility to call numbers of their choice without worrying about additional costs.

“It’s opportune that this offer comes to the market as we draw close to the festive season, when the need for customers to talk to family, friends and conduct business is high. MTN is glad to be the network that adds more “supu” to your festivities,” concluded the MTN Uganda CEO.

What you need to know!

  1. The offer is effective November  6, 2019 for a limited period applies to MTN daily voice bundles.
  2. To activate a daily voice bundle, customers dial *160*21#
  3. What does a customer get when they activate a daily voice bundle now?
  4. Customers can buy as many minutes as they like, both for themselves or any other MTN customer.
  5. This offer is applicable to daily voice bundles only. Minutes can be used to call either mobile and fixed lines both on MTN and to other networks. The customer also has the choice of using all their minutes (in the voice bundle) to make MTN to MTN calls.
  6. This is a promotional offer.
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