By Katare Mbashiru

Plans are well underway for the government to purchase two more new aircrafts to revamp the ailing national flag carrier, Air Tanzania Company Limited (ATCL).

President John Magufuli affirmed in Dar es Salaam yesterday that already the government has allocated adequate money to buy a 160-seater aircraft and another plane with capacity to carry over 240 passengers.

"If we purchase the aircraft that carries 240 passengers, customers will be assured of direct flights from Dar es Salaam to China or US and our tourists from China, US, Russia, Germany and other countries will comfortably arrive in our country," he said.

Dr Magufuli was speaking at the Julius Nyerere International Airport (JNIA) at the official launch of the two new aircrafts that have just arrived from Canada. The government procured the two brand new Bombardier Q400 NextGen aircrafts from Canada at a cost of 46.6 million US dollars (over 90bn/-).

The planes are expected to boost ATCL's performance in the domestic and international flights.

The president said the government decided to buy the aircrafts that have been leased to ATCL to operate professionally and recoup the government's invested capital.

He expressed his satisfaction on the new board, saying it was one of the best with good brains, insisting that the government hired the ATCL's Chief Executive who was working abroad.

The president said the government has already allocated 100bn/- for the construction of various airports countrywide to enable people interested on using air transport to do so without any problem.

In improving transport in Dar es Salaam city, the president hinted that the government plans to buy trams, buy more wagons for commuter trains and build interchange at Ubungo junction.

The official inauguration of the two new aircrafts was attended by, among other leaders, Chief Secretary (CS), Ambassador John Kijazi and the Minister for Works, Transport and Communications, Prof Makame Mbarawa.

ATCL recently got a new Director General Ladislaus Matindi and new board of directors chaired by Eng Emmanuel Korosso. Prof Mbarawa last week gave ATCL a three-month ultimatum to restructure the entire management.

Ambassador Kijazi, speaking at the event yesterday, said that the two aircrafts were not an ultimate solution to the ATCL's woes. "The company needs to come up with a strategy that will help it to run commercially and generate profit … the challenges are known and it's now time to make changes," he said.

He said the two government owned planes through ATCL will be operated on lease agreement.

Dr Magufuli said they opted for the modality in order to ensure that the planes were not operated in 'business as usual' style that has crippled ATCL in the first place.

Executive Secretary, Carlos Lopes, of the Economic Commission for Africa officially told ECA staff Thursday that he was stepping down from the organization he has led for the past four years.

Speaking at a town hall meeting, Mr. Lopes, who joined the ECA as its eighth Executive Secretary in September 2012, said he was proud of what the ECA had collectively achieved during the last four years, in particular the production of quality and credible products like the Economic Report on Africa, Country Profiles and others, that are increasingly being used by Member States in policy formulation, among other things.

He commended the ECA staff for what he said were their tremendous efforts in supporting and working with him in his vision to make sure the ECA became a think tank of repute on the continent, making a difference in the lives of Africans through various products that are and will continue to make a positive impact long after his departure.

“ECA has gone up quite considerably in terms of image and credibility in terms of its work and I’m sure people feel it in their interactions everyday with our interlocutors,” Mr. Lopes said, adding the ECA did indeed live by the model of Africa First in all its work in pushing for the development of the continent through structural transformation, industrialization and regional integration, among others.

“We have done it because of Africa. There’s a lot to be proud of and I’m very proud of what we have been able to achieve together and this is the reason why I have confidence that the ECA will continue to shine. My wish, hope and conviction is that the ECA will continue to shine,” he told the ECA employees.

Mr. Lopes, who was flanked by his two deputies, Abdalla Hamdok, Chief Economist and Deputy Executive Secretary, Knowledge Generation Pillar, and Giovanie Biha Deputy Executive Secretary for Knowledge Delivery, said he had no doubt that from what the ECA has been able to deliver during his tenure, the organization will collectively continue to work together with its strategic partners like the African Union and the African Development Bank to promote Africa’s economic development.

“I’m just one person. With or without me the work has to continue. I was certainly your leader during these four years but all things have to come to a close,” he said. “It is very important for us to realise that leaders are always transitional leaders if they are supposed to be good leaders. To be a good leader you have to be capable of leaving when you think the time is appropriate not when you are being pushed so that’s why this decision was on my terms and my timing.”

Speaker after speaker praised Mr. Lopes for, among other things, the role he played in reforming the ECA and taking the relationship between the organization, its partners and member states to a higher level, beautifying the ECA compound, leading the organization to host big conferences impacting on Africa’s development and empowering employees across the shop floor, mostly ensuring there was gender parity in the organization.

He leaves the organization on the 30 th  of October.

Issued by:

Communications Section
Economic Commission for Africa
PO Box 3001
Addis Ababa
Ethiopia
Tel: +251 11 551 5826
E-mail: ecainfo@uneca.org

COLUMNBy Moremi Marwa

Last week I had an opportunity to attend the US-Africa Business Forum in New York.

The US-Africa Business Forum is an initiative by President Barak Obama and aims at bringing together African political and business leaders to actively engage with their US counterparts with the common objective of forging joint business enterprises and development projects that can tap the resources, experience and skills from both ends of the Atlantic.

Along with this forum, were other sideline meetings between US strategic as well as portfolio investors, (such as pension funds, private equities, development financial institutions) and African business leaders as well as entrepreneurs. What was somehow clear to me in all these series of meetings and forums was the existing financing gap on the African side and the significant need for such financing from other parts of the world, major financing gap are particularly in infrastructure [from power/energy, to transport to social infrastructure such as schools, health centres, water and sanitation to irrigation) where the World Bank and the African Development Bank estimates a financing gap of $93 billion per annum, this is despite the relative significant observed efforts by our Chinese friend in this aspect of our development. And therefore, if Africa will be able to finance this investment gap of $ 93 billion at the current value for the next two decades, then that is when we will be able to fill in our infrastructure development gap. It was also clear to me, out of those deliberations, that there is a knowledge/awareness gap in part of the US investors and financiers on the potential opportunities available in Africa (which says we need to do more engagements), but also there are limitations that some of the US investment and financing institutions have, especially at these times and age, when it comes to investments accruing outside the US.

And so what was also clear to me is probably the need for us in Africa to seriously consider looking inside Africa as we try to source the financing needs for our development. And, like in many cases, one thing came clear to my mind — the need to develop our bonds markets, especially for us in the sub-Saharan Africa (with the exceptional of South Africa) where only three countries have specific infrastructure development bonds issuance within their financial market platforms. Why do we need to develop our bond markets?

First, sub-Saharan Africa has been heavily dependent on external grants and concessional loans for funding capital spending and government deficits.

Only a small number of countries have developed their local currency bonds markets and also accessed global capital markets via issuance of sovereign bonds or eurobonds. Gross official developmental assistance to sub-Saharan Africa amounted to over $55 billion in 2015, accounting for about 30 per cent of total government consumption expenditure, with almost 85 per cent grants and 15 per cent concessional loans, according to the recent reports and data by the World Bank and the Organisation for Economic Cooperation and Development (EOCD). Additionally, the fact that western donors are currently facing substantial fiscal challenges in their home fronts that says that consequently donor flows to sub-Saharan Africa may continue to be scaled back significantly, as has been in recent cases. Without access to alternative sources of finance, including bond markets, many African countries could find it difficult to finance critical needs such as the highly needed infrastructure.

Second, well-functioning bond markets help sustain economic stability. The Asian experience supports this point. According to the 2010 International Monetary Fund (IMF) report, since the 1997 Asian financial crisis, many Asian economies have made significant progress in strengthening bond market development. This has in turn helped these Asian economies weather the recent (2008) global financial crisis because deeper financial markets generated valuable funding sources for these countries to finance fiscal stimulus packages.

Third, the development of bond markets in sub-Saharan Africa can improve the intermediation of savings. Although Africa needs money, Africa is a net capital exporter to the rest of the world (IMF, 2015). This is mainly because there is a lack of effective intermediate channels to absorb this capital. As a result, some of us claims that there is a general lack of liquidity in many African capital markets. As it turns out, this is rather a structural and ethical problem, where funds from the continent are exported as savings or investments to developed economies, instead of being effectively used at home. Bond markets are an effective way to intermediate these capital savers with capital users, who needs these funds to finance our own development.

Fourth, promoting bond market development in sub-Saharan Africa can improve the structure of the African financial system. Since the period of liberalisation of our financial markets as part of the Structural Adjustment Programs, the African financial sector has been dominated by banks.

The non-banking sector, capital markets and bond markets, both public and private, are still in their infancy. Bond markets and bank finance are complementary rather than incompatible. While banks tend to be more adept at providing short-term (working) capital, bond markets enjoy a comparative advantage in financing government deficits and infrastructure investment, and providing longer-term capital to companies for growth.

Last week I had an opportunity to attend the US-Africa Business Forum in New York.

The US-Africa Business Forum is an initiative by President Barak Obama and aims at bringing together African political and business leaders to actively engage with their US counterparts with the common objective of forging joint business enterprises and development projects that can tap the resources, experience and skills from both ends of the Atlantic.

Along with this forum, were other sideline meetings between US strategic as well as portfolio investors, (such as pension funds, private equities, development financial institutions) and African business leaders as well as entrepreneurs. What was somehow clear to me in all these series of meetings and forums was the existing financing gap on the African side and the significant need for such financing from other parts of the world, major financing gap are particularly in infrastructure [from power/energy, to transport to social infrastructure such as schools, health centres, water and sanitation to irrigation) where the World Bank and the African Development Bank estimates a financing gap of $93 billion per annum, this is despite the relative significant observed efforts by our Chinese friend in this aspect of our development. And therefore, if Africa will be able to finance this investment gap of $ 93 billion at the current value for the next two decades, then that is when we will be able to fill in our infrastructure development gap. It was also clear to me, out of those deliberations, that there is a knowledge/awareness gap in part of the US investors and financiers on the potential opportunities available in Africa (which says we need to do more engagements), but also there are limitations that some of the US investment and financing institutions have, especially at these times and age, when it comes to investments accruing outside the US.

And so what was also clear to me is probably the need for us in Africa to seriously consider looking inside Africa as we try to source the financing needs for our development. And, like in many cases, one thing came clear to my mind — the need to develop our bonds markets, especially for us in the sub-Saharan Africa (with the exceptional of South Africa) where only three countries have specific infrastructure development bonds issuance within their financial market platforms. Why do we need to develop our bond markets?

First, sub-Saharan Africa has been heavily dependent on external grants and concessional loans for funding capital spending and government deficits.

Only a small number of countries have developed their local currency bonds markets and also accessed global capital markets via issuance of sovereign bonds or eurobonds. Gross official developmental assistance to sub-Saharan Africa amounted to over $55 billion in 2015, accounting for about 30 per cent of total government consumption expenditure, with almost 85 per cent grants and 15 per cent concessional loans, according to the recent reports and data by the World Bank and the Organisation for Economic Cooperation and Development (EOCD). Additionally, the fact that western donors are currently facing substantial fiscal challenges in their home fronts that says that consequently donor flows to sub-Saharan Africa may continue to be scaled back significantly, as has been in recent cases. Without access to alternative sources of finance, including bond markets, many African countries could find it difficult to finance critical needs such as the highly needed infrastructure.

Second, well-functioning bond markets help sustain economic stability. The Asian experience supports this point. According to the 2010 International Monetary Fund (IMF) report, since the 1997 Asian financial crisis, many Asian economies have made significant progress in strengthening bond market development. This has in turn helped these Asian economies weather the recent (2008) global financial crisis because deeper financial markets generated valuable funding sources for these countries to finance fiscal stimulus packages.

Third, the development of bond markets in sub-Saharan Africa can improve the intermediation of savings. Although Africa needs money, Africa is a net capital exporter to the rest of the world (IMF, 2015). This is mainly because there is a lack of effective intermediate channels to absorb this capital. As a result, some of us claims that there is a general lack of liquidity in many African capital markets. As it turns out, this is rather a structural and ethical problem, where funds from the continent are exported as savings or investments to developed economies, instead of being effectively used at home. Bond markets are an effective way to intermediate these capital savers with capital users, who needs these funds to finance our own development.

Fourth, promoting bond market development in sub-Saharan Africa can improve the structure of the African financial system. Since the period of liberalisation of our financial markets as part of the Structural Adjustment Programs, the African financial sector has been dominated by banks.

The non-banking sector, capital markets and bond markets, both public and private, are still in their infancy. Bond markets and bank finance are complementary rather than incompatible. While banks tend to be more adept at providing short-term (working) capital, bond markets enjoy a comparative advantage in financing government deficits and infrastructure investment, and providing longer-term capital to companies for growth.

Fifth, deeper bond markets will enable central banks in sub-Saharan Africa to conduct monetary policy more effectively. At present, many markets have few domestic fixed-income.

Local currency bond markets in sub-Saharan African countries are still at a nascent stage of development with market capitalisaation of both government securities and corporate bonds typically much lower than those of other developing, emerging, and advanced economies as a percentage of Gross Domestic Product (GDP). The government securities market capitalization as a percent of GDP was 15 percent in 2014 in sub-Saharan Africa. In contrast, Asian and Central European countries surpass this measure, and generally speaking most Latin American countries do as well.

This disparity is even greater for corporate bonds. On average, the capitalization of corporate bonds was 2 percent of GDP in 2014 for sub-Saharan countries, whereas this figure was generally much larger for other developing and emerging economies. Moreover, the low level of development of the bond market is particularly apparent upon comparison with the capitalization of more advanced economies, and, in the case of the corporate bond market, the capitalization ranges from 30 percent of GDP for Canada to over 90 percent for the United States.

Also evident is a notable disparity for sub-Saharan Africa in terms of the relative importance of government securities and corporate bonds in local currency. In this region, the local currency bond market is dominated by government securities, with a share of 90 percent of the total market capitalisation, compared to the share of corporate bonds which stands at just 12 percent, in 2014. This contrasts with the situation in other areas of the world. Aside from Poland, the share of corporate bonds in total bonds in sub-Saharan Africa is smaller than in other developing and emerging economies.

Here at home, our total bonds market (at Sh5.2 trillion) is just 5 per cent of GDP, outstanding corporate bonds, at Sh60 billion is 0.06 per cent of the GDP and 1 percent of the total bonds market. We have general purpose bonds issued by the central government via the Bank of Tanzania as a fiscal agent. We do not have infrastructure bonds issued specifically for particular infrastructure projects which can be transparently accounted for. We neither have municipal bonds. However, our infrastructure investment deficit is currently at about Sh10 trillion per annum, according to the Five Year Development Program. Therefore development of the local bonds markets is a no brainer, that it can be used as one of the tools for financing our development, especially in the infrastructure space for both public and private sector.

Fifth, deeper bond markets will enable central banks in sub-Saharan Africa to conduct monetary policy more effectively. At present, many markets have few domestic fixed-income.

Local currency bond markets in sub-Saharan African countries are still at a nascent stage of development with market capitalisaation of both government securities and corporate bonds typically much lower than those of other developing, emerging, and advanced economies as a percentage of Gross Domestic Product (GDP). The government securities market capitalization as a percent of GDP was 15 percent in 2014 in sub-Saharan Africa. In contrast, Asian and Central European countries surpass this measure, and generally speaking most Latin American countries do as well.

This disparity is even greater for corporate bonds. On average, the capitalization of corporate bonds was 2 percent of GDP in 2014 for sub-Saharan countries, whereas this figure was generally much larger for other developing and emerging economies. Moreover, the low level of development of the bond market is particularly apparent upon comparison with the capitalization of more advanced economies, and, in the case of the corporate bond market, the capitalization ranges from 30 percent of GDP for Canada to over 90 percent for the United States.

Also evident is a notable disparity for sub-Saharan Africa in terms of the relative importance of government securities and corporate bonds in local currency. In this region, the local currency bond market is dominated by government securities, with a share of 90 percent of the total market capitalisation, compared to the share of corporate bonds which stands at just 12 percent, in 2014. This contrasts with the situation in other areas of the world. Aside from Poland, the share of corporate bonds in total bonds in sub-Saharan Africa is smaller than in other developing and emerging economies.

Here at home, our total bonds market (at Sh5.2 trillion) is just 5 per cent of GDP, outstanding corporate bonds, at Sh60 billion is 0.06 per cent of the GDP and 1 percent of the total bonds market. We have general purpose bonds issued by the central government via the Bank of Tanzania as a fiscal agent. We do not have infrastructure bonds issued specifically for particular infrastructure projects which can be transparently accounted for. We neither have municipal bonds. However, our infrastructure investment deficit is currently at about Sh10 trillion per annum, according to the Five Year Development Program. Therefore development of the local bonds markets is a no brainer, that it can be used as one of the tools for financing our development, especially in the infrastructure space for both public and private sector.

Petroleum Bulk Procurement Agency (PBPA) has rolled-out cargo by cargo tender system of fuel importation for November delivery that witnessed falling costs.

This is a single product tendering system where petroleum products importers bid to supply Diesel, petrol and Jet fuel and kerosine separately.

The PBPA Acting Executive Director, Mr Michael Mjinja, said in Dar es Salaam yesterday that in just the first day of the tendering system, figures put forward by bidders are down compared to the old system.

"It is very much encouraging for the country when looking at the tendering numbers put forward by importers particularly tender winners," he said in his closing remarks after the tender committee chairman Mr Ali Ahmed declared the successful bidders of cargo by cargo.

He said the declining importation costs may be translated into falling fuel prices in December only if global oil prices remain low.Company that emerged successful at the cargo by cargo tender meeting is Addax Energy SA for delivering 78,284 metric tonnes of gasoil at 18.990 US dollars per metric tonnes and 14.970 US dollars per metric tonnes for cargo I&II respectively.

Also the total bid price value of the cargo I&II is 1,486,633.150 US dollars and 1,171,911.480 US dollars respectively. Similarly, Addax Energy SA won the tender of Jet A-1 of importing 23,962 metric tonnes at 21.120 US dollars per metric tonnes and total bid price value of 506,077.440 US dollars.

For Motor Spirit Premium, Trafigura Energy SA emerged winner of importing 35,150 metric tonnes after offering 8.800 US dollars per metric tonnes and 9.200 US dollars for cargo I&II respectively at a total bid price value of the cargo I&II of 309,328.800 US dollars and 323.380 Us dollars.

Other companies that participated in the tender processes are Sahara Energy SA, Vitol Bahrein E.C, Augusta and Enoc Africa Limited.

On his part, the Energy and Water Utilities Regulatory Authority (EWURA) Principal Commercial Officers- Petroleum Engineer Lorivii Long'idu said the new system has been interesting with hope for more companies to participate in the following tenders.

"This means that local companies that complained of being locked out due to heavy financial requirements, can now take part in the tendering process," he said.

 

By Ejiofor Alike with Agency Report

Despite the decision of the Organisation of Petroleum Exporting Countries (OPEC) to cut crude oil production by 200,000-700,000 barrels per day to achieve price recovery, oil prices fell yesterday after the gains recorded on Wednesday.

This was just as Royal Dutch Shell on Thursday in Rio de Janeiro, Brazil, launched its "#makethefuture" programme, where it unveiled six new technologies from different youth entrepreneurs around the world to provide sustainable and cleaner energy than conventional energy sources.

OPEC agreed on Wednesday to implement modest oil output cuts in the first such deal since 2008, with the group's leader Saudi Arabia softening its stance on arch-rival, Iran, amid mounting pressure from low oil prices.

Under the deal, OPEC would reduce output to a range of 32.5 million barrels per day to 33 million barrels per day from the current estimates of 33.24 million bpd.

The Wall Street Journal reported that OPEC's surprise proposal prompted the largest gains in crude prices since April on Wednesday, but the rally ran out of steam as investors wondered if the cartel's members would stand by an agreement.

Concerns have also been raised over how much sway the cartel now has over a market still brimming with crude from around the world.

The group reached an understanding at a meeting Wednesday in Algeria that there was a need to scale back production.

However, analysts also argued that the scope of the reduction–between 200,000 and 700,000 barrels a day–was inadequate to arrest the supply growth and bring balance back to the supply-demand dynamics.

OPEC members will wait until the next official meeting in November to complete the details, including the quota for individual producers.

But despite the agreement, Brent crude, the global oil benchmark, yesterday fell 0.8 per cent to $48.85 a barrel, while West Texas Intermediate futures were trading down 0.5 per cent at $46.85 a barrel.

Meanwhile, Royal Dutch Shell Plc's "#makethefuture" programme launched in Brazil yesterday was targeted at bringing bright energy ideas into action to benefit local communities around the world, and also highlighted the need for greater global collaboration to create more energy to meet the world's growing population.

The six new energy solutions include: Pavegen, which converts kinetic energy generated by footsteps into electricity; and Capture Mobility, which converts human and vehicular traffic into electricity.

The Pavegen solution has been deployed in Nigeria where Shell built Africa's first human and solar-powered football pitch at the Federal College of Education, Akoka, Lagos.

Others include GravityLight, which generates electricity from falling objects; Insolar, which provides communities easy access to solar energy; MotionECO, which turns waste cooking oil into energy; and Bio-bean, which converts waste coffee into energy.

Speaking at the launch of the programme, Shell's Global Head of Integrated Brand Communications, Malena Cutuli, identified the lack of access to cleaner energy as one of the greatest challenges facing the world.

She advocated the need for donors and sponsors to support entrepreneurs around the world to develop ideas and power of innovative options for communities to access cleaner energy.

"We want to improve our lives, our communities, and our countries, and we are constantly developing new technologies and methods to do so. But we thereby face a global problem: the more we reach for a brighter future, the more energy we consume along the way.

"Our current access to energy is neither enough to satisfy our growing energy needs, nor is it sustainable. The ways in which it is being provided now contribute to climate change, as well as costing the planet valuable resources. We need more and cleaner energy. But we can't do it alone," she explained.

She further stated that the "#makethefuture" campaign was the company's call for collaboration to create smart energy solutions that would generate more and cleaner energy across the world.

"It is a privilege to see how ideas are transformed into realities," she added.

"Working together, we are turning gravity into light, coffee into energy, cooking oil into fuel, footsteps and roofs into power sources, and roadside turbulence into electricity.

"Communities in Brazil, Kenya, China, United States and UK will experience, first hand, the benefits of these new sources of energy. And we will all see how a different future is possible, a future that is in our hands to create," Cutuli said.

Also speaking, Shell Brazil's External Relations Manager, Glauco Paiva, described Brazil as the world's leader in the oil and gas business of exploration and production (E&P), adding that Brazil would host Shell's Eco Marathon competition where any technology that consumes less energy would emerge the winner.

In an apparent justification of Shell's investment in the project in the face of the slump in oil prices, Paiva noted that the energy need of the world's population of seven billion would continue to grow, thereby providing justification for investment in renewables.

Six artistes selected across the world, including Nigeria's award-winning Yemi Alade, Brazil's Luan Santana and British singer, dancer, actress and song writer, Pixie Lott, performed at the event to promote cleaner energy solutions.

In his remark, the founder of Paven and British entrepreneur, Laurence Kembell-Cook, stated that his idea harnesses kinetic energy generated by footsteps to generate electricity.

According to him, before he built Africa's first human and solar powered football pitch at the Federal College of Education, Akoka, Lagos in Nigeria, Shell and football icon, Pele, had helped Pavegen to launch the world's first people-powered football pitch in Morro da Mineira, a favela in Rio de Janeiro, adding that the technology had been deployed in various high-football locations around the world.

By Paidamoyo Chipunza and Praise Bvumbamera

The Zimbabwean and South African governments are working on measures to deal with unemployed but qualified teachers in Zimbabwe while at the same time addressing the needs gap in the "Rainbow Nation".

The process is expected to see Zimbabwean teachers in South African being registered and licensed.

The move comes against the backdrop of an unquantifiable number of qualified Zimbabwean teachers working in South Africa. Some of the teachers are not in the education sector and those in the education sector are employed mostly in private schools, where authorities cannot easily monitor their conditions of service.

Addressing a Press conference, flanked by South Africa's Basic Education Minister Angelina Motshekga, after a two-day conference on identifying possible areas of cooperation, Primary and Secondary Education Minister Dr Lazaraus Dokora said issues of human resources, research, curriculum implementation and assessment are earmarked for collaboration.

"The way we have discussed this issue is to say that, when our teachers proceed to work in South Africa, we want to know where they are, how they are being deployed and we also safeguard their interests," said Minister Dokora.

Dr Dokora said the collaboration was meant to find a common ground with South Africa for the benefit of not only the two countries but also the teachers themselves. Minister Dokora said both countries also need to cooperate on curriculum implementation and assessment to modernise the two in line with the demands of the 20th century.

He also said that other areas included educational conferences to keep learning from each other and arts festivals.

Minister Motshekga said South Africa had always held Zimbabwe's education system in high esteem and therefore had a lot to learn for her northern neighbour.

She said one area her government was keen to learn from Zimbabwe was the area of public examinations from which, she said the country was way ahead compared to South Africa.

"Historically, South Africa looks forward to the education system of Zimbabwe and thus we never hesitated to take up your invitation to this meeting to see how best we can collaborate," she said.

Minister Motshekga said a series of meetings will follow the engagement with her Zimbabwean counterpart to start operationalising other areas that do not necessarily require a Memorandum of Understanding.

Both ministers, however, said they were looking forward to have an MOU in place before the end of the year.

The Dangote Industries Limited 17 billion-dollar refinery project will create over 300,000 direct and indirect jobs by the first quarter of 2019, the Chief Operating Officer, Mr Olakunle Alake, has said.

Alake made the disclosure in an interview with the Newsmen in Lagos on Monday, adding that the refinery, petrochemicals and fertiliser plants were in one location.

He said the project would be the single largest stream in the world.

"The refinery and fertiliser projects will create job opportunities for the communities and Nigerians when it becomes operational.

"The refinery will have a refining capacity of about 650,000 barrels of crude a day," he said.

Alake said the project would force down the price of Premium Motor Spirit (petrol) in the country and save money spent on importation.

He said that projects such as these would optimise government revenue and wean Nigeria from relying solely on oil.

According to him, the best way to diversify Nigeria's economy is through agriculture and the fertiliser plant is in line with that goal.

The chief operating officer said that the 98 per cent of basic engineering on the fertiliser plant had been executed, while the construction had progressed by 30 per cent.

" By the time we finish our gas pipeline it will be able to generate about 12,000mw which can be exported to other African countries.

"We will have the capacity to store four billion litres of products and load 2,680 trucks per day.

"The project will aid the country with about 7.5 billion dollars forex savings on importation.

"It will also generate five billion dollars forex earnings from savings and another 5.5 billion dollars export earnings," he said.

Alake gave assurance that there would be markets for the refined products, saying that only three countries in Africa had effective and functional refineries, while others imported.

Alake said the projects would help the country save five billion dollars on oil importation when it became operational in 2019.

"By the time we complete this project, there will be opportunity to take on agriculture and say bye to poverty because there will be jobs; no sector has more job potential than agriculture.

"Though the project is an ambitious one but when completed it will give Nigeria a new economic direction in its quest for economic diversification."

He said excess products would be exported to give Nigeria the much needed foreign exchange.

"That is when diversification starts," he said.

Alake said, however, that access to foreign exchange posed serious challenges to the projects.

"We aim to complete the projects within the time frame to assist in easing the forex problem.

"We appeal to the Federal Government to support these private initiatives by providing funding for the projects.

"However, government through the Bank of Industry schemes has given us a credit facility of N50 billion to develop the fertiliser plant.

"We have also gotten another N75 billion approval for the refinery, which we have not yet accessed," Alake said.

PRESS RELEASE

Government is investing massively to transform the country in a sports hub and provide adequate sports facilities across Mauritius to offer the opportunity to everyone to practice a discipline of his choice, observed the Minister of Youth and Sports, Mr Yogida Sawmynaden, this morning at the Hennessy Park Hotel, in Ebène.

The Minister was speaking at the opening of a Consultative Meeting and Workshop on the Development of a National Sport for All Strategy and Action Plan with the aim to maximise the contribution of Sport to national development priorities. The workshop is being organised by the Ministry of Youth and Sports in collaboration with the Commonwealth Secretariat.

In his address, the Minister stated that at a time when everything we do is performance-based we have to face growing health-related challenges and issues affecting our population and this workshop comes at a right time and deserves to be highlighted.

Mauritius, Mr Sawmynaden pointed out, is among the top countries in the world whose population has a high incidence of diabetes and cardiovascular diseases associated with physical inactivity. It is therefore imperative to combat these ills of modern life in order to tackle health issues which have a negative, social and economic impact on the population as a whole, but also, on our youth, he stressed.

The Minister highlighted the need for collaborative efforts both by public and private stakeholders in the sports sector to build a fitter and a healthier nation in line with Government's policy. Sports is an activity which thrives on discipline and team spirit and these are the values that we are looking for in building and guiding future generations, he added.

For his part, the Head of Sport for Development and Peace, Commonwealth Secretariat, Mr Oliver Dudfield, stated that people under the age of 30 constitute 60% of the Commonwealth countries' population and there is a strong interlink between young people and the potential of sports and physical activity.

He called for reflection on the role that sport plays in enhancing sustainable development and national development, and in the case of Mauritius, in enhancing health, promoting education, strengthening community cohesion and in enhanced sport for all and mass sports across the country.

The workshop

The one-day workshop has as main objectives to: reflect on the contribution of sport to improving health, social cohesion and the inclusion of marginalised groups in Mauritius; and, consider strategies to increase participation in sport and physical activity in Mauritius and maximise the contribution of sport to sustainable development in Mauritius.

Discussions are focusing on: Sport, the Sustainable Development Goals and Mauritius Vision 2030; Sport for Development Programme Theories; Enhancing Sport and Physical Activity Participation in Mauritius; and, Developing National Sport for All and Sport for Development Strategy and Action Plans.

By Ludger Kasumuni

Dar es Salaam — Chinese capital investment for revamping the Tanzania Zambia Railway Authority (Tazara) is awaiting pending negotiations to decide on public-private partnership (PPP) in the project.

Speaking on the sidelines of the 7th East and Central Africa Roads and Rail Infrastructure Summit, Tazara public relations manager Conrad Simuchile said yesterday said that a Tazara management team would visit China next month for the talks.

"Negotiations on revamping Tazara to make it attractive to Chinese investors are at an advanced stage. The only pending issue is the form of PPP that will form part of the contractual terms," said Mr Simuchile.

Addressing the summit, Tazara managing director Bruno Ching'andu said that the struggling firm needed an urgent capital injection of $250 million for rehabilitation of the railway line and equipment.

"Tazara has been performing poorly over the years. We need investors to revamp Tazara. The design capacity of Tazara was to transport five million tonnes of goods a year, but it now transports only 1.3 million tonnes. It ferries less than five per cent of cargo handled at Dar es Salaam port," he said.

The Tazara railway line was originally designed to carry three million passengers annually, but the current traffic is only 450,000 passengers.

Mr Ching'andu blamed the firm's poor performance on worn-out equipment, an ageing workforce, low operating capital and stiff competition Dar es Salaam Port was facing from other ports in eastern and southern Africa.

He said, however, that 20 percent of the firm's wagons had been repaired as a result of the management's efforts to turn the company around, adding that transit time between Kapiri Mposhi in Zambia to Dar es Salaam had been reduced from 30 to six days.

Mr Ching'andu also said investment opportunities in commuter train services provided by Tazara had increased significantly in recent months.

The Minister of Works, Transport and Communications, Prof Makame Mbarawa, said when opening the conference that the government would attract significant investments for upgrading roads and railways to make the country's vision of becoming a middle-income economy by 2025 a reality.

President Muhammadu Buhari Tuesday said Nigeria will continue to expand its relationship with India in the areas of health, education, agriculture, technology and trade.

Receiving the Indian Vice President, Mohammad Ansari, at the State House, President Buhari said Nigeria had over the years benefited from the cooperation of the Asian country in trade and investment, agriculture, technology and the fight against terrorism.

The President welcomed the proposed investment of $5 billion in the Nigerian economy by the business delegation that accompanied the Vice President, while noting that India had already invested $10 billion in the Nigerian economy.

President Buhari said Nigeria would emulate the Asian country's agricultural model and capacity to feed its 1 billion population, and also export to other countries, describing the country as "sustainable and prosperous."

The President noted that Nigeria would continue to support the reform of the United Nations Security Council, pointing out that it was unfair on the rest of the world for five countries to exercise the power of "yes or no" in the UN.

In his remarks, the Indian Vice President said his country, which is the leading buyer of Nigeria's crude oil, will increase its purchase of the commodity in addition to natural gas.

According to him, the relationship between Nigeria and India is near perfect as both countries "have nothing to quarrel about".