Government is finding it difficult to raise about US$12 million required to carry out coal-bed methane gas geological surveys in Matabeleland North Province, the Financial Gazette’s Companies & Markets (C&M) can report.

Francis Gudyanga, the permanent secretary in the Ministry of Mines and Mining Development, told (C&M): “We are still looking for about US$12 million to do a bankable study, which will confirm the commercial viability of the gas.”

Zimbabwe discovered coal-bed gas deposits in Lupane’s Lubimbi basin a few years ago but has not been able to determine the extent of the gas wealth.

It is, however, believed that the area is endowed with more than 40 trillion cubic feet of potentially recoverable coal bed methane gas reserves, meaning that Zimbabwe could be the largest strategic energy source in Sub-Saharan Africa.

But the country has not carried out comprehensive exploration to determine the extent of the gas due to lack of funding.

Exploration, which helps the country with geological data, is the most important part of the mining cycle, a process through which commercial concentration of resources are discovered.

It covers activities from preliminary collection of existing geological data to drilling and sample assays.

Foreign investors have been scared by the country’s policies, especially the indigenisation programme which compels foreign owned companies to cede at least 51 percent stakes to blacks in the resources sector.

Government has through its project promoter Lupane Gas, a unit of the wholly-government owned Industrial Development Corporation, tried to raise the required amount for gas exploration but failed. This has hampered all efforts to prove whether the resource is commercially viable or not.

In 2015, government gave a special grant to a company called Discovery Investment Limited to start coal bed methane gas extraction at Mzola and Dandanda communal areas in Lupane.

The company had been seeking an investor to fund its activities but financiers have been dragging their feet after government indicated that it would have a stake in all renewable energy projects in the country.

Another firm, Gazprom, a Russian energy giant, last year expressed interest in the extraction of gas in Matabeleland North Province.

Gazprom’s major business lines are geological exploration, production, transportation, storage, processing and sale of gas and oil, and generation and marketing of heat and electric power.

It holds the world’s largest natural gas reserves and at least 12 percent of the global gas output. The firm has a market value of about US$51 billion.

The coal gas is a form of natural gas extracted from coal beds. In the past decade it has become an important source of energy being predominantly utilised in the United States, Canada, Australia, and other countries.

Methane gas, which is a colourless, odourless gas with a wide distribution in nature, is mostly used in power generation and fertiliser production.

It is the principal component of natural gas, a mixture containing about 75 percent methane, 15 percent ethane, and five percent other hydrocarbons, such as propane and butane.

By Ndumiso Mlilo

Johannesburg — Ten South African university students are leaving for China on Friday for a two-week information and communication technology (ICT) training held by Huawei in Beijing.

The study program “Seeds for the Future” is being bankrolled by the Chinese ICT giant, Huawei Technologies. This is the first batch of 1,000 South African students who will be trained over the next five years in ICT by Huawei.

The students were selected on merit from different South African universities. On Thursday night, South Africa’s Minister of Telecommunications and Postal Services Dr. Siyabonga Cwele hosted a send-off reception during which he encouraged the students to come back with skills.

Bidding farewell to the students, Cwele said, “As you embark on this journey, remember that you carry with you hopes and dreams of the nation. Go out, seize and learn, I wish you safe travel and a journey back home full of knowledge and skills.”

He said the country has a deficiency in critical skills like ICT and the training will empower the students who will contribute to the country’s economic development upon their return.

Cwele said the students should expect to work hard in China. He said he went to a political school in China where they would work for long hours.

He said the Chinese are loyal, time-conscious and diligent and the students should expect that in China. He also said, “I urge you to make effective use of information and communication technologies to deepen your participation in the digital society.”

The students will be trained at the Huawei complex in China and other places as the training includes telecommunications networks, cloud computing and strategic global business initiatives, among others.

Likewise, China’s Economic and Commercial Counsellor Rong Yansong encouraged the students to work hard and come back with skills. He also praised Huawei for empowering the youth from South Africa and Africa and said when they return he expects them to contribute to the socio-economic development of their country.

“You represent the future of the country. All of you must cherish and take advantage of this to gain more ICT knowledge and understand more technology and make contributions to South Africa,” Rong said.

One of the students, Odwa Yekela, 24, told Xinhua that it will be his first trip to China and that he was very excited about it.

Yekela is pursuing a Master’s degree in ICT at the Nelson Mandela Metropolitan University. He said, “It is a privilege and honor for us to be afforded this opportunity and I am excited about the journey. I want to be a future innovator.”

Yekela said that in 5-10 years’ time, he wants to be producing and innovating programs. He also said he has been an admirer of the Chinese culture and hopes to study for his Ph.D.in China.

Mashego Dibetle, a third-year student working on her Bachelor’s degree at Tshwane University of Technology, said that the students won’t disappoint their country.

She said they are grateful for the opportunity and they will return and contribute to the good of the country. She said, “We are not going to try to do the best but will do our best.”

By Okello Stephen

Amuru — Residents of Amuru District have warmed up to the government’s request to them to offer land for agricultural investors but put a caveat barring sugar cane growing.

This follows seven years of stalemate on the proposed giveaway of 40,000 hectares of land to Madhvani Group of Companies for sugarcane growing. The decision was reached during a meeting with Lands minister Ms Betty Amongi who visited the residents at Kalolo in Amuru Sub-county where the land in question is situated. The meeting aimed at convincing the residents to withdraw their Court of Appeal petition over the disputed land.

Former legislators Livingstone Okello Okello (Chwa County) Michael Ocula (Kilak), David Ochieng Penytoo (Gulu Municipality) and others in 2008 sued Madhvani Group of Companies, late Gen Julius Oketta and former Amuru Land Board secretary Christine Atimango for wrongfully allocating communal land to private investors.

However in 2012, Gulu High Court Judge William Musene ruled that the district land board had a right to give away the land for investment, something that did not go well with the locals and they appealed the case.

Mr James Onen, a land owner, said they have now accepted other investments apart from sugarcane growing, adding that even Madhvani is free to invest in the area as long as he abandons sugarcane growing.

“Crops like sunflower and rice can do well in the area and if we get investors in such areas, residents’ lives will be transformed,” Mr Onen said.

He faulted government officials and security agencies in the district whom he accused of misleading President Museveni that the locals are against investment in the district.

Democratic Party president also a born of Amuru District, Mr Norbert Mao, said: “We want investors to come and invest on our land, but they should come and negotiate directly with the land owners, not the so-called representatives.”

Meanwhile, the MP for Kilak North, Anthony Akol, denied allegations that they had received money to giveaway land without consulting locals.

No sugarcanes

The locals say they have now accepted other investments apart from sugarcane growing, adding that even Madhvani is free to invest in the area as long as he abandons sugarcane growing. They claim that crops like sunflower and rice can do well in the area.

ANALYSISBy Florence Mugarula

Last week, Air Tanzania Company Limited (ATCL) launched its routes to Mwanza, Arusha and Zanzibar, with the management saying the company is prepared and ready to offer high quality and reliable services. For many years, ATCL operated poorly due to lack of aircraft, which would have offered reliable services to its passengers.

Flight cancelation and delays became normal for ATCL. All these issues weakened the company. As ATCL became weaker, private owned companies recorded good performance. Majority Tanzanians decided to fly with private owned companies as the national carrier kept struggling to catch up with changes in the market.

Last week, the company’s Director General, Mr Ladislaus Matindi said his company is determined to ensure there is no delay or flight cancellation. He said the company is ready for the business and it has already set strategies that will enable it to compete in the market.

With the revival of ATCL and purchase of new aircraft, it is obvious things will change for the better. Among sectors that expected to improve is tourism. Globally, aviation business has been a crucial factor for the growth of tourism sector.

The connectivity provided by international air transport facilitates the fast-growing global tourism industry. It is estimated that over half of international tourists travel to their destination by air.

Tourism makes a major contribution to the global economy. It directly contributed 2.2 trillion US dollars to the world GDP, almost 10 percent of the global economy, in 2015 and provided over 108 million jobs globally.

By 2024, the World Travel & Tourism Council expects direct employment in the tourism industry to be more than 126 million people globally. When looking at the jobs and GDP supported through the indirect and induced impacts of tourism, the figures are significantly higher at 285 million jobs, 8.7percent of employment, and 7.2 trillion US dollars or 9.8 percent of the global economy. By 2026, tourism could support some 370 million jobs and 11 trillion dollar in GDP.

Tourism sector is important in many developing countries, including Tanzania. With such prospects at global level and the ongoing fifth government efforts to revive ATCL, it is obvious Tanzania will not be left out of these successes in the tourism sector, employment opportunities and total economic growth. According to the ATCL’s plans, in the few coming years, the company will be able to fly across the country and beyond.

This means ATCL will be able to fly tourists to all regions at affordable prices and reliable services. President John Magufuli said last Friday that his government is looking forward to revive the national carrier and ensure it promotes tourism.

The Head of State is aware of the aviation contribution to the growth of the country’s economy, especially through tourism sector. He said more new planes are coming and that in few years to come ATCL will be plying to international routes. Various reports show that over 54 percent of international tourists now travel by air.

In Africa, an estimated 5.8 million people are employed in areas supported by the steady influx of overseas visitors, most of whom arrive in the region by air, and contributed 46bn/-US dollar to GDP in African economies in 2014. In 2014, the Tanzania Tourism Board (TTB) said the country was eying at 2 million tourists arrivals by 2017. Tourists arrival broke the 1 million-barrier for the first time in 2012 when the number of foreign visitors surged 24 per cent.

The country receives an average of 1.1 million tourists a year. The number rose 1.7 per cent in 2013 to 1.095 million, bringing in 1.85bn/- US dollar. Most of the visitors came from Britain, Germany, the United States and Italy.

Tourism is Tanzania’s numberone foreign currency earner. It’s quite clear that with the revival of the national carrier, Tanzania will be able to offer travel and tourism services accordingly. This will probably help to strengthen tourism sector and boost the country’s economy.

By Ivan Okuda

Kampala — Former presidential candidate Amama Mbabazi and Prime Minister Ruhakana Rugunda, among other shareholders of the defunct National Bank of Commerce (NBC), have asked the Constitutional Court to block the planned sale of shares of Crane Bank which took over NBC when it was closed four years ago.

In a November 4 letter to the Court’s registrar, copied to the Chief Justice Bart Katureebe and his deputy Steven Kavuma, Mr Mbabazi’s lawyers John Mary Mugisha and Severino Twinobusingye asked for an expedited hearing of their case filed on September 28, 2012.

NBC shareholders, including businessman Amos Nzeyi, in 2012 secured a court order issued by Justice Remmy Kasule barring Bank of Uganda (BoU) officials from continuing with the sale of NBC pending disposal of a case challenging the closure that year.

The Central Bank at the time said the court order had been overtaken by events since it was issued after it transferred NBC assets, liabilities and customer to Crane Bank, which BoU took over a fortnight ago.

This prompted NBC shareholders to, through the Attorney General, sue the officials and government (in constitutional petition number 42 of 2012-Humphrey Nzeyi versus BoU and eight others) for contempt of court.

Justice Kasule on February 15, 2013 maintained and extended an interim order earlier issued by Justice Kavuma until determination of a constitutional petition challenging takeover of NBC. Neither the contempt of court case nor the substantive application has been heard ever since. Following BoU’s takeover of the under-capitalised Crane Bank about two weeks ago, the government announced it is in talks with potential investors to buy some of the bank’s shares.

In last week’s letter written on behalf of Mr Humphrey Nzeyi, a son to businessman and NBC shareholder Amos Nzeyi, the shareholders warned prospective buyers of Crane Bank Ltd shares to “keep their hands off” as the takeover of NBC by Crane Bank remains a matter of litigation.

“We wish to express our deep concern that this related application to determine whether the various respondents committed acts of contempt of court has not been disposed either. To crown it all, the said (respondents) have had the audacity of proceeding to commit the very acts they are prohibited from doing involving transferring the assets of the NBC (U) Ltd to third parties; thereby infringing on our client’s fundamental rights,” the letter reads in part. Judiciary spokesman Solomon Muyita said he had not seen the letter and he would need to “consult with my superiors to establish what response they have given to the petitioners’ lawyers.”

Lawyers Mugisha and Twinobusingye in their latest petition wrote that: “Notice is hereby given to the general public by the shareholders of the NBC (U) Ltd that Crane Bank which is being presented for sale is a subject of litigation in the above cases where NBC and all its assets and property worth $200m (Shs680b) are in Crane Bank Ltd. We equally warn all and sundry to keep their hands off the purported sale of the NBC assets under the disguised sale of Crane Bank Ltd.”

Mr Twinobusingye who said he was speaking on behalf Mr Mbabazi and 270 other shareholders of the bank, including Mr Nzeyi and premier Rugunda, said: “The constitutional court made a ruling wherein Justice Kasule prohibited the dealing in any way; be it winding up or sale of NBC until the Constitutional Court petition number 44 (challenging BoU actions) has been disposed of. That ruling is still in force to the extent that the petition and all applications arising from it have not been determined.

We have now learnt that they are selling Crane Bank but how many banks are they selling? My clients’ view is that it is dangerous for anyone to attempt to buy Crane Bank when these matters have not been resolved.”

Background

Bank of Uganda revoked the license of the National Bank of Commerce (U) Ltd and ordered the winding up of its business under Sections 17(f), 89(2)(f) & (7)(c) and 99(1) of the Financial Institutions Act 2004.

“… the continuation of NBC’s activities is detrimental to the interests of its depositors,” said Mr Kasekende at the time. BOU moved to suspend the management and board of directors of NBC before transferring deposits, accounts and assets of the bank to Crane Bank with effect from October 1, 2012.

By Daniel Finnan

Authorities in Liberia are seeking the assistance of the US and UK governments to help them secure their internet infrastructure following a crippling cyberattack that brought down 60 percent of the country’s network. The size of the attack against Liberia is cause for alarm, according to Eugene Nagbe, the country’s information minister, who believes Liberia was targeted by hackers because its network was perceived as being weak.

“The scale of the attack tells us that this is a matter of grave concern, not just to Liberia but to the global community that is connected to the internet,” Nagbe told RFI by telephone. “We are actively pursuing the option of seeking assistance from friendly countries like the US and Great Britain.”

Nagbe dismissed reports that the cyberattack took down the entire network, saying that it did not affect the African Coast to Europe (ACE) submarine fibre cable that connects the country to the World Wide Web or the Libtelco and Cellcom service providers.

However, the attack was successful in crippling service provider Lonestar MTN, which provides about 60 percent of internet connectivity in the country, according to Nagbe. The company has already deployed a cyber-security specialist to Liberia to investigate what happened.

The internet outage, which lasted for about two weeks and continued until a few days ago, took the form of a Distributed Denial of Service (DDoS) attack, said Nagbe, who was speaking from London. A DDoS attack floods a system with data with the intention of overwhelming it with traffic from multiple sources.

Forensic audit

The minister would not confirm reports that the attack was carried out by the so-called “Mirai botnet” which uses a zombie network of compromised devices such as internet-connected digital cameras.

“We are probing to find the exact culprit,” he said.

Neither would he confirm reported figures between 500 and 600 gigabits per second, in terms of the amount of data that was used to attack Lonestar MTN’s network.

“Some of the figures are realistic,” said Nagbe, “but we want to get a full forensic audit before discussing the exact size of the data pumped into our network illegally”.

Nagbe is keen to point out that his country “already has a lot of protection” on its network, insisting that this helped to prevent the DDoS attack crippling the ACE fibre cable or Libtelco and Cellcom providers. But the government is “very, very concerned” that Liberia’s internet infrastructure could be attacked in this way, he said.

“Perhaps we were singled out because we were perceived to be a weak link,” said Nagbe. “Also perhaps because they are aware that we are still expanding and developing our own telecommunications infrastructure.”