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.

Niamey — Niger President Mahamdou Issoufou on Tuesday morning inaugurated the Niamey General Referral Hospital which was a donation from China.

The inauguration ceremony was attended by China’s ambassador to Niger Shi Hu, as well as the head of Niger’s Parliament Ousseini Tini, heads of public institutions, ministers, members of parliament and representatives of diplomatic corps in Niamey.

Issoufou said the facility with capacity of 500 beds is the largest and most modern referral hospital in West Africa.

The hospital whose construction cost 40 billion CFA Francs (over 68 million U.S. dollars), was built on a 16 hectares piece of land in northern Niamey, for the benefit of Nigeriens and people from neighbouring countries.

The hospital will be able to provide all services, including emergency, cardiology, 16 operation rooms, laboratory, blood bank, imaging and hospitalization.

It will equally serve as a medical training center and will provide both in-patient and out-patient services.

Niger’s Public Health Minister Kalla Moutari said the treatment costs at the hospital will be subsidized. This is expected to reduce the annual medical cost for Niger which spends over 5 billion CFA Francs to evacuate patients to foreign countries.

At the moment, Sino-Niger cooperation covers a wide range of sectors, from politics, economics, energy, culture, security and infrastructure.

Other projects funded by China include General Seyni Kountche stadium, various roads, the second bridge on river Niger, the water project in Zinder as well as schools and training equipment in the health sector.

The Pipelines and Product Marketing Company, PPMC, earned N957 billion from the sales of petroleum products in 12 months, between July 2015 and June 2015, according to data obtained from the Nigerian National Petroleum Corporation, NNPC.

The NNPC, in its Monthly Operations and Financial Reports for June 2016, disclosed that the amount was earned from the sales of white products, comprising Premium Motor Spirit, also known as petrol; Automotive Gasoline Oil, AGO, and Dual Purpose Kerosene, DPK.

PMS sales accounted for 89.19 per cent of PPMC’s total revenue, with N854.2 billion, while revenue from AGO and DPK sales stood at N41.2 billion and N62.376 billion respectively.

In particular, the report stated that the PPMC sold 10.74 billion litres of white products between July 2015 and June 2016, with PMS accounting for 88.79 per cent of total sales with 9.54 billion, while AGO and DPK sales were put at 403.906 million litres and 800.308 million litres respectively.

For the month of June, the NNPC report noted, “A total of 860.46 million litres of white product was distributed and sold by PPMC in the month of June 2016 compared with 1.256 billion litres in the month of May 2016. This comprised 761.04 million litres of PMS, 66.31 million litres of kerosene and 33.11 million litres of diesel.

“A total value of N101.96 billion was collected as sales revenue for white products sold by PPMC in the month of June 2016 compared with N115.66 billion collected in the previous month of May 2016.”

Giving a breakdown of total white products sales for the period under review, the report stated that in the months of July, August, September, October, November and December 2015, the PPMC earned N48.756 billion, N46.288 billion, N44.236 billion, N38.67 billion, N52.853 billion and N66.958 billion respectively.

On the other hand, the PPMC earned N80.338 billion, N85.23 billion, N85.66 billion, N79.503 billion, N115.66 billion and N101.96 billion from the sale of white products in January, February, March, April, May and June 2016 respectively.

Consequently, the report noted that the PPMC posted a deficit of N3.668 billion in its operations for the first six months of 2016, after recording revenue of N555.078 billion and expenses of N558.745 billion.

Commenting on factors responsible for the unimpressive financial performance of the PPMC, the report said, “Incessant vandalism and products theft have continued to destroy value and put NNPC at disadvantaged competitive position.

“Reduction in vandalism will indeed unlock several industry upsides which include improved upstream oil production due to reduced pipeline disruptions, improved refinery utilisation due to increased crude oil feed from restored pipelines, and reduction of crude/product losses.

“A total of 3,120 vandalised points have been recorded from July 2015 to June 2016. Therefore, crude and products losses have continued to cost NNPC and the nation huge amount of money.”

Conversely, the PPMC earned N5.853 billion, from July 2015 to June 2016, from the sales of special products, comprising Low Pour Fuel Oil, LPFO, among others.

Specifically, the PPMC earned N3.812 billion from the sale of LPFO, while it earned N2.041 billion from the sales of other special products.

The Naira on Monday depreciated against the dollar at the parallel market, the News Agency of Nigeria (NAN), reports.

The Nigerian currency lost N3 to exchange at N393, from N390 posted on Friday; while it traded at N505 and N435 against the Pound Sterling and the Euro respectively . At the Bureau De Change (BDC) segment of the market, the naira closed at N385, N505 and N420 against the dollar, Pound Sterling and the Euro, respectively.

The naira appreciated at the official interbank market to close at N317.34, from N320.25 posted on Friday.

Traders at the market said that the demand for the greenback was still on the high side.

NAN reports that the market was eagerly awaiting the sale of forex by banks to BDCs during the week.