The Government has leased its Rubirizi National Hatchery to Flow Equity, an American firm, at Rwf750 million for 25 years.

The decision, announced after last week’s Cabinet meeting, is aimed at revamping the facilities to increase productivity that, in return, would reduce import bill on chicken and eggs.

The decision comes five years after the Government upgraded the facility to modern level at a total budget of Rwf2.3 billion and had sought to increase the eggs production to 100,000 per month.

Explaining the decision, yesterday, Tony Nsanganira, the state minister for agriculture, described the move as timely and profitable for government, which not only would enhance the spirit of remaining a facilitator but also create jobs.

“There were many attempts to have the Rubirizi hatchery privatised, but the recent one was very successful and it falls in line with the government policy of surrendering businesses to members of the private sector,” he told The New Times.

“Part of the agreement we managed to settle is that they will revamp the existing facilities to enhance production capacity and work more closely with small-holder farmers. We have also agreed that the factory will employ nationals to create more jobs on the market,” he said.

Facilitation

Nsanganira said that, under the deal, the Government would also allocate 15 hectares of land in Bugesera District to the company to facilitate their expansion and provide wider avenues for suppliers.

According to the minister, the company, which will operate under the name of Uzima Chicken Ltd, will be paying Rwf30 million per year for a period of 25 years.

The minister said after the period, the Government will decide whether to renew the lease or retake over the assets.

In a brief interview with The New Times, one of the company’s partners, Joshua Rugema, said their business – which has branches in Ethiopia and Northern America – aims to not only boost the production rate of hatchery but also make prices of chicken products affordable.

“In a drive to reduce imports of chicks, on top of increasing production, we shall also seek to improve quality of the products,” he said.

Rwanda produced more than 16,000 tonnes of poultry meat and 6,973 tonnes of eggs per annum in 2014, according to statistics from Rwanda Agriculture Board.

By 2011, the Government had been importing two million eggs per year, to produce between 6,000 and 1,000 chicks per month compared to national demand of 40,000 per month.

Africa’s data and Internet communications infrastructure has improved so much in the last decade that it’s easy to become complacent. The dual challenges of price and quality of service have not been overcome.

African regulators have never been good at imagining the future and with all the improvements they seem to have taken their eye off the ball. Russell Southwood looks at why things are stuck and what might get them moving again.

Africa’s transition to data is crucial for the next round of investment in the continent. The existence of relatively cheap Internet access and the services and content it brings with it are needed to power a second wave of economic growth.

The challenge of all challenges is that the operators in Africa’s Internet market need to be able to deliver cheaper data access than elsewhere because most Africans do not earn US or European salaries. Getting Internet access prices to US or European levels is not enough, they have to go lower.

Sub-Saharan Africa has countries that are amongst the most expensive places to operate in. So whoever Africa’s operators are or will be, they have to become pioneers in lowering the costs of both building and operating data infrastructure. Government and regulators need to understand the scale of this challenge and help operators become cost-cutting pioneers.

African regulators are not currently in a good place to make this happen. In the main, mobile operators have taken over as the market incumbents and are no longer forcing the pace of change but largely simply reacting to what’s happening elsewhere. The need for an effective, large capacity data network seems to have caught many of them off-balance.

African regulators who have pursued the opening of African telecoms markets have been slow to react to changed market circumstances. In many cases, even what were once quite competitive markets are now stuck. A brief summary of some of the difficulties may be helpful:

* Dominant Players:

A number of Africa’s telecoms markets are now dominated by a single player. Sometimes efforts have been made to declare them dominant players in regulatory terms but these have largely been ineffective. These dominant players have operated skillfully as price progressives (lowering tariffs) and in so doing have cemented their market position.

In Kenya, Safaricom has such an unassailable and central position that whatever anybody does, it usually ends up benefitting. If you need a telecoms or network partner, why bother with those who have less than 30% of the market? The recent Kenya Power partnership deal on Fibre-To-The-Home will reinforce its position in yet another market niche.

In Senegal, Sonatel is testing Free-Wi in Rufisque. Free Wi-Fi is undoubtedly a good thing but who’s paying? And this in a country where there are no independent Internet service providers, no alternative fibre providers and its two mobile competitors struggle to make it anything like a fair, competitive fight.

And then there’s MTN in Nigeria who for all their recent troubles, occupy the commanding heights of the country’s telecoms and data markets… ..Others could be added to list.

* Old school stuck:

Some of Africa’s regulators have simply not got off the blocks in terms of creating a competitive market. In these countries the dominant player is usually a decaying state-owned telco with about as much appetite for innovation as a sleeping dog. The Governments in these countries have chosen to foster an inefficient job creation scheme over being able to offer cheaper Internet and a more efficient economy.

The country that heads this category must surely be Ethiopia where the absence of any competition means that the market is probably about a third smaller than it might otherwise be. The State lacks the capital to make these financially leaky dinosaurs effective. But in this long list of countries, we must include places like Djibouti, Togo and Cameroon.

Take Cameroon where the Government has ensured that it has ownership of all the landing stations and its telco Camtel has a de facto monopoly over wholesale bandwidth. And all of these dilapidated incumbents who are without strategy, innovation or ideas want to be mobile operators.

* Last man standing “consolidation”:

More conventional industry analysts are keen on seeing “consolidation” as one answer to current problems. To be fair to their argument, Africa has more operators than many other places globally.

But what does consolidation mean? There will be less operators (two per country?) and their market power will be even greater. The last man standing theory is that if you are one of the lucky surviving operators you will then be able to hike your prices back to the level they were when the markets first opened.

With Airtel selling off some of its smaller opcos to Orange, the full scale of this is not immediately apparent. But what if this was really just the start of Bharti Airtel’s long goodbye to Africa? Consolidation will inevitably happen but then how do regulators ensure that markets maintain a competitive dynamic?

Minister of Information and Communications has stated that the country’s mineral rich resources have woefully failed because they were yet to provide the necessary benefits expected by the people

Mohamed Bangura was speaking last Saturday (August 13) during a press conference hosted by his ministry and the World Bank in honour of the bank’s Executive Director of Sierra Leone, Dr. Louis Rene Peter Larose.

During the presser that was hosted at the Golden Tulip Hotel in Freetown, the bank’s Country Manager, Parminder Brar announced support of a 4500,000 project to have sustainable internet connectivity in universities and secondary schools across Sierra Leone.

According to Mr. Bangura, the brutal civil conflict which the country suffered for 11 years was as a result of the rich mineral resources, which he said have not yielded any dividend.

He assured that the information and communication technology sector, which the World Bank was ready to support, would not be the same as the country’s mineral resources, adding, “ICT will not let us down. We will benefit from it. It should be the bread basket of this country.”
The information minister described the project that would provide internet connectivity in universities and schools in the next six months, as historic not only for his ministry but for the country as a whole.

“This is a project that everybody can see and feel. This time around, school going pupils will now have the opportunity to browse the web quick and fast. We are not going to let you down,” he assured the World Bank.

He commended the bank’s Country Manager for his support in helping change the ICT landscape in Sierra Leone, and further that as a government, they would make sure that every project that comes from the bank, would be prudently managed.

Managing Director of the Sierra Leone cable limited (SALCAB),Mohamed Sheriff said: “The idea of this project was developed by SLCAB .We took it to the World Bank and the Country Manager was excited about it. We will work hard to see that internet access reaches everyone. We are going to reach out to four schools in the western area, as well as two each in the east, north and south.”

ANALYSIS
By Asafa Jalata, University of Tennessee
Country-wide demonstrations by the Oromo in Ethiopia have flared up again. Ethiopia’s authorities reacted with heavy force, resulting in the death of 100 civilians. The Conversation Africa’s Samantha Spooner asked Professor Asafa Jalata about the country-wide protests.

Who are the Oromo people?

The Oromo are the single largest ethno-national group in northeast Africa. In Ethiopia alone they are estimated to be 50 million strong out of a total population of 100 million. There are also Oromo communities living in Kenya and Somalia.

Ethiopia is said to have about 80 ethno-national groups. The Oromo represent 34.4% while the Amhara (Amara) 27%. The rest are all less than 7% each.

The Oromo call themselves a nation. They have named their homeland “Oromia”, an area covering 284,538 square kms. It is considered to be the richest area of northeast Africa because of its agricultural and natural resources. It is often referred to as the “breadbasket” of the region. 60% of Ethiopian economic resources are generated from Oromia.

The capital city of Ethiopia is located in the heart of Oromia. What the world knows as Addis Ababa is also known to the Oromo as their capital, “Finfinnee”. When the Abyssinian warlord, Menelik, colonised the Oromo during the last decades of the 19th century he established his main garrison city in Oromia and called it Addis Ababa.

Despite being the largest ethno-national group in Ethiopia, the Oromo consider themselves to be colonial subjects. This is because they have been denied equal access to their country’s political, economic and cultural resources. It all started with their colonisation by, and incorporation into, Abyssinia (the former Ethiopian empire) during the Scramble for Africa.
Today, comprising just 6% of the population, Tigrayans dominate and control the political economy of Ethiopia with the help of the West, particularly the US. This relationship is strategic to the US who use the Tigrayan-led government’s army as their proxy to fight terrorism in the Horn of Africa and beyond.

The Oromo community has been demonstrating since November last year. What triggered the protests?

The Oromo demonstrations have been underway for over eight months, first surfacing in Ginchi (about 80 kms southwest of the capital) in November 2015. It began when elementary and secondary school students in the small town began protesting the privatisation and confiscation of a small soccer field and the selling of the nearby Chilimoo forest.

The sentiment quickly spread across Oromia. The entire Oromo community then joined the protests, highlighting other complaints such as the so-called Integrated Addis Ababa Master Plan and associated land grabbing. The master plan was intended to expand Addis Ababa by 1.5 million hectares onto surrounding Oromo land, evicting Oromo farmers.

Last year’s demonstrations were the product of over 25 years of accumulated grievances. These grievances arose as a result of the domination by the minority Tigrayan ethno-national group. Because of this dominance the Oromo people have become aliens in their own country, lost ownership of their land and have become impoverished.

What was different about these demonstrations was that, for the first time, all Oromo branches came together in coordinated action to fight for their national self-determination and democracy.

Which part of the Oromo community is organising the rallies?

It is believed that underground activist networks, known as Qeerroo, are organising the Oromo community. The Qeerroo, also called the Qubee generation, first emerged in 1991 with the participation of the Oromo Liberation Front (OLF) in the transitional government of Ethiopia. In 1992 the Tigrayan-led minority regime pushed the OLF out of government and the activist networks of Qeerroo gradually blossomed as a form of Oromummaa or Oromo nationalism.

Today the Qeerroo are made up of Oromo youth. These are predominantly students from elementary school to university, organising collective action through social media. It is not clear what kind of relationship exists between the group and the OLF. But the Qeerroo clearly articulate that the OLF should replace the Tigrayan-led regime and recognise the Front as the origin of Oromo nationalism.

What are their demands?

Their immediate demands are for the Ethiopian government to halt the so-called Addis Ababa Master Plan, land grabbing, corruption, and the violation of human rights.

Their extended demands are about achieving self-determination and sovereignty by replacing the Tigrayan-led regime with a multi-ethno-national democratic government. These demands gradually emerged to create solidarity with other ethno-national groups, such as the Amharas, who also have grievances with the regime.
How has the government reacted to the protests?

The government reaction has been violent and suppressive. Despite Oromia being the largest regional state in Ethiopia, it has been under martial law since the protests began. The government has been able to use this law to detain thousands of Oromos, holding them in prisons and concentration camps.

Security structures called tokkoo-shane (one-to-five), garee and gott have also been implemented. Their responsibilities include spying, identifying, exposing, imprisoning, torturing and killing Oromos who are not interested in serving the regime.

There have also been deaths and reports of thousands of Oromos who have been maimed as a result of torture, beatings or during the suppression of protests. For example, during the Oromia-wide day of peaceful protest on July 6 the regime army, known as Agazi, massacred nearly 100 Oromos. According to Amnesty International, 400 Oromos were killed before July 6. But in reality nobody knows exactly how many Oromos have been victims of violence.

What impact have these protests had on the country?

The Oromo protest movement has started to change the political landscape of Ethiopia and shaken the regime’s foundations. Erupting like “a social volcano”, it has sent ripples through the country with different groups changing their attitudes and standing in solidarity with the Oromo. The support of the Ahmaras has been particularly significant as they are the second largest ethno-national group in Ethiopia.

For the first time in history, the plight of the Oromo people has also received worldwide attention. International media outlets have reported on the peaceful protests and subsequent government repression.

This has brought about diplomatic repercussions. In January the European Parliament condemned the Ethiopian government’s violent crackdown. It also called for the establishment of a credible, transparent and independent body to investigate the murder and imprisonment of thousands of protesters. Similarly, the UN Human Rights Experts demanded that Ethiopian authorities stop the violent crackdown.

Not all global actors are taking a strong stance. Some are concerned about maintaining good relations with the incumbent government. For example, the US State Department expressed vague concern about the violence associated with the protest movement. In sharp contrast they signed a security partnership with the Ethiopian government.
Nevertheless, the momentum of the Oromo movement looks set to continue. The protests, and subsequent support, have seen the further development of activist networks and Oromo leadership, doubling their efforts to build their organisational capacity.

Is this the first time that the Oromo have demonstrated their grievances in this way?

No. The Oromo have engaged in scattered instances of resistance since the late 19th century when they were colonised.

In the 1970s the Oromo started to engage in a national movement under the leadership of OLF. The front was born out of the Macha-Tulama Self-Help Association, which was banned in the early 1960s and other forms of resistance such as the Bale Oromo armed resistance of the 1960s. Successive Ethiopian regimes have killed or sent Oromo political and cultural leaders into exile.

How do you believe their grievances can be resolved?

Critics believe the Tigrayan-led minority regime is unlikely to resolve the Oromo grievances. Oromo activists believe that their national struggle for self-determination and egalitarian democracy must intensify.

I am sure that, sooner or later, the regime will be overthrown and replaced with a genuine egalitarian democratic system. This is because of the size of the Oromo population, abundant economic resource, oppression and repression by the Tigrayan-led government, the blossoming of Oromo political consciousness and willingness to pay the necessary sacrifices.

Coffee growers from Murang’a County have raised concerns with some of the new coffee regulations terming them as detrimental to the coffee sub-sector.

The Murang’a County Coffee Farmers Co-operative Union said some regulations published in the Kenya Gazette June 27, 2016 will restrict transportation, introduce cherry hawking and promote coffee theft.

According to Mr Francis Ngone, the board’s chairman, the gazetted rules will also kill the coffee co-operatives societies and promote cartels.

Mr Ngone said the transportation of parchment to the nearest mille is an affront to the growers’ right to property, adding that compelling coffee societies to deliver their coffee to uncertified millers will not only compromise on the quality but also the price.

He lamented that the process and bureaucracy involved in attaining the movement permit from the county government was too long and time consuming.
He added that as a result, the process will be exposing coffee societies to a lot of risk including theft.

RIGHT TO SELL OWN PRODUCE

“Pooling of coffee grower for marketing by the county government denies them the right to sell their own produce which they have toiled to maintain,” he said.

Speaking in Murang’a Town, the farmers added that they were strongly against farm-gate cherry and parchment trading since it will introduce cherry hawking and promote coffee theft.

Mr Ngone lamented that introduction of pulping stations, a major shift from the current model of cooperatives and estate-based pulping will kill coffee cooperatives since it will allow individuals to own pulping stations.

He said the gazetted rules will kill cooperatives as they will no longer handle any sales proceeds and consequently fail to fulfil their current role of financing their members.
CENTRAL DEPOSITORY UNIT

On the central depository unit (CDU), Mr Ngone noted that farmers already have accounts with various local saccos of their choice where they receive their coffee payment and advances.

‘Urging them to open other accounts with the CDU is uncalled for and will only lead to the collapse of these saccos,” he remarked.

“The concerned authorities should instead strengthen their corporate governance structure and enforce the existing laws,” he added.

He urged the government to give real-time information to the coffee growers on the true value of their crop on the global market so that they can make informed decision on where to sell their coffee.

“Murang’a County coffee farmers appeal to the concerned authorities to facilitate the national task force on [the] coffee sub-sector reforms to present their report to the coffee farmers, whom it was intended to benefit, through nationwide seminars,” he concluded.

The intention is to feed, on a permanent basis, with fine cotton its textile industries: Satec, in northern Cuanza Norte province, Textang II, in Luanda, and Africa Têxtil, in Benguela, which are industrial complexes rehabilitated under the country’s industrialisation programme.

For the start of the above plants set for this year, the country will import 20,000 tons a year in the first phase. According to the minister of Agriculture, Afonso Pedro Canga, some private investors are designing their projects to launch the production of the raw material for the textile industry. “In the first years, we are going to import the raw material, before we start producing slowly, as 20,000 tons a year with the new technology we can produce and need not much to reach this volume of cotton yarn ,” he explained. The minister said arrangements are in progress to assist family peasants that will engage in growing cotton, starting from Cuanza Sul province, where an area has been put in place, including technical assistance and water to respond to the needs of the emerging industry. According to him, lands have been allocated to private investors in the provinces of Malanje and Cuanza Norte, to grow cotton and later in Benguela.

Following the recent decision made by Burundi to sever trade ties with Rwanda, Rwanda will trade with other regional countries. The remarks have been made by trade minister, Francois Kanimba.

“The Burundian government decided to ban exports to our country but this has little impact on our economy; the products that have been imported from there can be got from Uganda and Tanzania,” Kanimba said.

Kanimba affirmed that Burundi’s decision is a violation of the EAC treaty on common market protocol among member states.

The EAC Common Market protocol was effected on July 1, 2010 following ratification by all the six partner countries.

Rwanda has been exporting manufactured products, maize, cassava flour, milk, potatoes, unprocessed maize flour and wheat flour to Burundi. In turn, it was mainly importing fruits from Burundi such as mangoes and oranges, dried silver fish and palm oil.

Daniel Fred Kidega, the East African Legislative Assembly (EALA) Speaker, said the Communications Trade and Investment Committee shall ascertain facts of Burundi’s decision.

“It is important to add that the region is implementing the customs union and the common market. It would be counterproductive for partner states to deprive citizens of the associated benefits,” Kidega said.

Burundi’s economy

Burundi is one of the poorest, smallest, and most densely populated nations in Africa. Its poor transportation system and its distance from the sea have tended to limit its economic growth.

The economy is almost entirely agricultural, especially subsistence farming. Major crops include corn, sorghum, sweet potatoes, bananas and manioc.

Coffee, the country’s chief export, accounts for 80% of its foreign exchange income. Cotton, tea, sugar, and hides are also exported. Cattle, goats, and sheep are raised.
The country’s industries include food processing, manufacturing of basic consumer goods such as blankets and footwear, assembly of imported components and public works construction. Bigger industries are government-owned.

Burundi relies on international aid for economic development and has incurred a large foreign debt. Nickel, uranium, and other minerals are mined in small quantities; platinum reserves have yet to be exploited.

Burundi’s imports (capital goods, petroleum products, and foodstuffs) considerably exceed the value of its exports.

Germany, Belgium, Kenya, and Tanzania make up its chief trading partners. Most exports are sent by ship to Kigoma in Tanzania and then by rail to Dar-es-Salaam on the Indian Ocean.