Year: 2016

West African Countries Ban ‘Dirty European Fuel’

Five west African countries have banned some European fuel imports, because they say they are too dirty. Nigeria, Benin, Togo, Ghana and Côte d’Ivoire are introducing stricter standards to cut vehicle emissions and improve air quality in cities.

Nigeria, Benin, Togo, Ghana, and Côte d’Ivoire have decided to ban fuel coming from Europe after campaign group Public Eye issued a damning report which said that European trading firms have been exploiting weak regulations in west Africa to export fuels with levels of sulphur up to 300 times higher than those permitted in Europe.

The Dirty Diesel report highlight the pivotal role played by Swiss commodity trading companies in Africa’s fuel industry. On land or at sea, they mix a petrochemical cocktail from refinery products and other components known in the industry as “African quality”.

“It increases the amount of sulphur dioxyde produced, so sulphur in fuel directly transforms but it also has a corrosive effect on cars and especially on the emission control technology in cars,” Valentino Viredaz, one the report’s authors, told RFI. “It will then increase the overall amount of air pollution, in terms of particulate matter, but also nitrogen oxide and many other pollutants.

“Also this “African quality” fuel not only has a high sulphur content but also toxic substances such as benzene and polycyclical aromatic hydrocarbons, all substances that are shown to be very toxic for humans”.

The group’s analysis revealed the diesel samples contained up to 378 times more sulphur than is permitted in Europe.

After a summit with the United Nations Environment Programme (Unep) the five countries decided to limit sulphur in fuels from 3,000 parts per million to 50 parts per million, 60 times less.

This means that these countries will have to adopt stricter rules when it comes to what they import.

Nigeria’s example crucial

“Our standard organisations that regulate the importation of some of these fuels are basically not doing their work,” Adetunji Babatunde, from the University of Ibadan in Nigeria, told RFI.

“In the case of Nigeria, we have the Department of Petroleum Resources that should check the quality of some of the imported fuels. And that shows they haven’t done so”.

Babatunde said this will force Nigeria to upgrade its standards and move towards cleaner energy, meaning Nigeria has to improve its own public and private refineries to meet the same higher standards by 2020.

“Over the half of the diesel consumed in west Africa is consumed by Nigeria. For us, it’s very significant that Nigeria made that move,” Jane Akumu, from Unep, comments.

“Now it will be easier for the other countries to follow. West Africa is sending a strong message that it is no longer accepting dirty fuels from Europe”.

By taking such measures, Nigeria will set an important example in the region, she says.

Companies will go unpunished

Despite the results, Viredaz from Public Eye said it was unlikely the companies exporting “African quality” fuel will be held accountable.

Because, while it’s toxic, it’s not illegal.

“They’re adapting their behaviour to the laws in place in those countries,” he pointed out. “They’re providing fuel that conforms to what the country asks for. So there’s absolutely nothing illegal there”.

So the only way to stop the trade is to inforce stricter rules and have them comply with the UN’s Guiding Principles on Business and Human Rights adopted in 2011.

Tanzania: More Emerge On Dangote Plant Woes

New revelations have emerged over the reason behind Dangote Cement Factory’s production suspension, with the investor’s Country Representative, Ms Esther Baruti, citing sabotage by some politicians and businesspeople. Ms Baruti’s latest remarks have sharply contrasted the widely circulated reports that the factory ceased the cement production due to high costs.

At different occasions this week, she spoke to different local media stations, maintaining that, “There is no conflict pitting the government against Dangote. There are only people with wicked interest plotting to ensure that the factory relocates from Mtwara.”

According to Ms Baruti, billionaire Aliko Dangote is being ‘confused’ by middlemen who are everywhere and bent to do anything within their reach to frustrate the investment.

She further revealed that Mr Dangote had political and business enemies who were working hard to hamper his business initiatives or projects.

Ms Baruti, who coordinated the initial plans of the project, complained further that saboteurs were non-residents of Mtwara region, adding: “…from the information I have, the law enforcers have already embarked on the search for those inciting residents in the country.

” Since the factory started production, said the Country Representative, people have been stealing its raw materials in a mission to impede operations. She said politicians, businesspeople and neighbouring countries were behind the sabotage campaign.

“I am the one who know many internal things of the investment and I cannot remain silent while bad things are said about and happening to the factory,” she stressed, adding that the industry management was more conversant and capable of handling the technical problems facing the industry.

Ms Baruti recalled how she spearheaded the initial meeting on the establishment of the factory between former President Jakaya Kikwete and Nigerian billionaire Dangote who expressed interest to invest in the country’s cement sector.

After the talks, former president Jakaya Kikwete directed Ms Baruti to convene another meeting between Dangote and the Tanzania Petroleum Development Corporation (TPDC), to enable the two parties to discuss the price of gas to be pumped into the factory for power generation.

Mr Dangote concluded the talks with TPDC, agreeing with the public utility to consult with the Energy and Water Utility Regulatory Authority (EWURA) over the gas price for Dangote industry. Recently, the TPDC noted that EWURA were expected to announce the prices of natural gas in January.

But, Ms Baruti was upbeat that the government would consider Mr Dangote’s plea of reducing the price of natural gas sold to the Mtwara cement manufacturer as per the promises given during the initial steps of setting the investment.

Beijing Hosts AFCHAM’s 1st Conference on African Growth and Opportunities

The conference, the first of its kind, took place on Wednesday November 30th 2016 in Novotel, Wangfujing in the heart of Beijing. Dignitaries attending the conference included diplomats from embassies of African countries in China such as Nigeria, Senegal, Cameroon, Chad, Niger, Benin, Rwanda and South Sudan. Mr. Dee Zhang, international department deputy director, represented the China-Africa Industrial Forum and China WTO Africa Affairs Committee. Vice president Tian Wenhui represented the China-Asia Economic Development Association. CEOs of companies doing business in Africa, leaders of governmental and non-governmental organizations in China working in Sino-African relations, young entrepreneurs, researchers as well media personnel, in 5hours, examined issues regarding business and development in Africa from three perspectives; agribusiness, urban infrastructure and energy.

 

The African Chamber of Commerce (AFCHAM) organized the conference as a first of a series of upcoming conferences aimed at gathering stakeholders in Africa’s booming construction industry. Opening the conference, AFCHAM’s sitting chairperson D. Nkwetato Tamonkia delivered a speech in which he emphasized mainly on the need for all plans on the development of Africa to involve Africans. He frowned on policies made for Africa outside the continent without the participation of Africans. “Build with Africans” He put it in short. He called on companies doing business in Africa to “grab but grab with care, care for the environment, care for the underprivileged and care for social issues.” Among other things, he announced the introduction of the AFCHAM Corporate Social Responsibility program to help companies and organizations have a more positive impact on the African society.

 

The conference moderator Mr. Daniel Ntui, chief strategist at AFCHAM, lauded the efforts and sacrifices attendees had made in order to be present at the conference. He introduced six keynote speakers who made presentations on six different topics:

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Ms. Ada Shiferaw, the first keynote speaker from Ethiopia, talked about the abundant opportunities for business and growth in agribusiness in Africa. Drawing from her experience working with the Chinese Academy of Agricultural Mechanization Sciences, she presented stunning facts and figures showing fertile areas for investment in the sector.

 

The next keynote speaker was an experienced South African agro-business entrepreneur Mr. Buyambo Mantashe who elaborated on some of the points that had been raised by the previous speaker and drew particular attention to investment opportunities in South Africa. He highlighted recent measures taken by the South African government to facilitate the growth of the agribusiness sector. He pledged his availability and unconditional support for any projects investors had in mind for Africa in general and South Africa in particular.

 

Architect Daan Roggeveen; founder of More Architecture took to the floor next, to share his research experiences on urbanization in China and Africa. The Dutchman juxtaposed urban growth in China with that of Africa using as case study, one of his projects, the ongoing Accra city expansion mega project, a project he hoped could become a point of reference for similar projects in future in Africa.

 

The next presentation was on the recently launched AFCHAM Corporate Social Responsibility program. The program was presented to participants at the conference by the duo Emily Yeates and Tova Levin from the United Kingdom and the United States respectively and both working at AFCHAM. The two young ladies explained the objectives and advantages of the program. They said the CSR rating system developed by AFCHAM would henceforth distinguish companies doing business in Africa while giving back to the society from companies only interested in exploiting resources without any care for the society. Many representatives of large companies at the conference immediately rushed to consult the paperwork for the CSR program that had been laid out prior to the conference.

 

The last segment of the conference had two keynote speakers. First, the Global Marketing Director of GCL System Integration Technology Co., Ltd Algerian-born Mr. Laid Sahraoui drilled the audience on the indispensability of energy, especially solar energy, to the development of Africa. He reproved the popular belief that solar energy was expensive and not affordable to the poor by illustrating how cheap, available and easy to set-up the technology had become. He presented small, medium and large-scale quick plug-and-play solar energy solutions which he believed could go a long way to curb frequent outages in Africa as well as provide off-grid, remote and or enclave areas with energy while saving cost as the case is in Northern African countries.

 

The last keynote speaker for the day was the founder and Managing Director of SIVECO China, Mr. Bruno Lhopiteau. The Frenchman drew from his 18-year experience in maintenance consultancy to show the disparate approaches in construction by Chinese and Western construction companies while pointing out the merits and demerits of both approaches. Stressing on the importance of ensuring the sustainability of infrastructure, he outlined the fact that many countries in Africa allow construction companies to engage in multi-million dollar projects without taking into consideration this aspect only to find out later that more money needs to be spent on huge repairs or entire malfunctioning facilities need to be abandoned.

 

The quality of questions participants asked at the end of each presentation was good proof of how enriching and enlightening the conference had been. As the conference came to an end, participants, eager to mingle and socialize with other participants were seen shaking hands, hugging and exchanging business cards while the stage was cleared for souvenir picture poses in front of the backdrop with AFCHAM partners, member companies and sponsors.

 

The after conference party was an exquisite inter-continental buffet style dinner at the VIP dining section of the hotel which lasted until late. Big thumbs up to team AFCHAM as absentees itch for the second conference which sources close to AFCHAM management say will likely be coming up early in 2017.

 

Malawi’s Long Way to Making Buildings Accessible

ANALYSIS

Lilongwe — As he “walks” into one of the banks in Lilongwe, Burton Chisale whispers something under his breath. He hails the designers of the building for making the entrance usable even to people with disabilities like him.

Chisale has a disability that affects both his legs and he cannot make any movement without using his hands, and neither can he stand upright.

But as Chisale gets into the banking hall, he realizes he had rushed to praise the designers of the facility for now Chisale faces one challenge: ‘standing’ on his knees, he can hardly see the teller on the other side of the counter and he realizes communication would not be that easy.

This is just one scenario among many facing persons with disabilities in the country despite calls by government through the line ministry to make all public and private buildings accessible to all.

“It’s really an embarrassment to us,” explains Chisale in an interview with this reporter. “Imagine all eyes on you as you struggle or even fail to make it into a building because there is no alternative way for persons with disabilities to access the building.”

But Chisale’s scenario at the bank reveals that making buildings accessible ought to go beyond just making the entrance usable to all. Desks and counters in every building have to be designed in a way that suits everyone; with or without disability.

Malawi signed and ratified the Convention on the Rights of Persons with Disabilities (CRPD) in 2007 and 2009, respectively to advance the global agenda on disability in the country.

In addition, the Disability Act of 2012 outlines provisions for the equalization of opportunities for persons with disabilities through promotion and protection of their rights

Section 8 (d) of the Act mandates government to take appropriate measures to ensure “the attainment of a barrier-free environment that enables persons with disabilities to have access to public and private buildings and establishments and such other places in line with universal designs”.

Section 9 (2 a & b) of the same Act sets penalties of MK100,000 and MK1,000,000 fines for a natural person or a body of corporate, respectively, who contravenes sub-section 9 (1) of the Act which stipulates that “No person shall be denied access or admission to any premises or the provision of any service or amenity, on the basis of disability”.

During the launch of the Disability Awareness Month on November 3 this year in Lilongwe, the Ministry of Gender, Children, Disability and Social Welfare, Dr. Jean Kalirani, noted with great concern that despite the laid guidelines to have all buildings made accessible to everyone, the compliance rate is very minimal.

Kalirani sadly recalled how at one time a fellow senior party member with disability failed to attend a meeting at one of the hotels in Blantyre just because the member couldn’t make it to the upper floor where the meeting was to be convened.

“Imagine that scenario, with no lift – and there was nothing we could do because we could not carry the senior member up the stairs to the meeting,” explained Kalirani.

The minister said that her ministry gave all public and private sectors the guidelines of the required standards for the buildings and that during the Disability Awareness Month her ministry would inspect the buildings to check compliancy, starting with the Capital Hill.

But with or without the inspection one known thing is that even Capital Hill is restrictive in nature in as far as accessibility is concerned.

This is so because the original planning of the buildings over four decades ago did not incorporate alternative ways for people with disabilities to fully access the buildings, according to Chief Architect in the Ministry of Transport and Public Works, Knight Munthali.

“About ten years ago a directive was made by the Chief Secretary of the time that we should make all our buildings accessible and that’s what we are doing with every building we are constructing,” explains Munthali.

He adds, “But with the old buildings like the Capital Hill it’s not possible to modify the design or install a lift to make it accessible due to the way the buildings were designed.”

The Chief Architect cites the new Lilongwe University of Agriculture and Natural Resources (LUANR) building as one such infrastructure that is designed for accessibility as demanded by the laid guidelines.

“We do not want learners with disabilities to be confined to the ground floors but they should be able to go anywhere within the building as they please,” continues Munthali.

But while some planners of private and public buildings in the country are constructing access ramps alongside stairs, persons with disabilities, like Chisale, describe these ramps as “face-savers”.

“Next time you come to a ramp I want you to take a close look at it and see if it is user friendly,” challenges Chisale. “Most ramps are too steep for a person on a wheel chair to use without a helping hand and you tend to wonder for what use were these slopes put there.”

Malawi joins the world in commemorating the International Day of Persons with Disability (IDPD) on 3 December every year and the 2016’s theme is “Achieving all the 17 Sustainable Development Goals for the Future we Want”.

The statutes promoting the rights of persons with disabilities are there in black and white with proposed penalties for those who contravene them – and, perhaps, they are being contravened on daily basis. Until government, the public and all stakeholders seriously stand up to walk the talk; like the access ramps in Chisale’s view, the statutes and everything contained therein will but remain a scarecrow meant just to ‘save a face’.

Africa: Experts Highlight Africa’s Energy Needs

Sustainable Energy stakeholders have highlighted the need to scale and speed up support to sustainable energy in Africa’s least developed countries, including Tanzania.

The experts met in Dar es Salaam for a two-day regional meeting on sustainable energy for Least Developed Countries (LDCs) and suggested that access to finance was vital for Africa’s poorest countries to develop sustainable energy initiative and build renewable power capacity.

Speaking at the official launching of the meeting, Minister for Energy and Minerals, Professor Sospeter Muhongo expressed the government’s commitment to stamp out energy problem in the country, saying in the next five years the government would have made a considerable improvement on sustainable energy.

To achieve this, already the government allocated US Dollars 500 million (over 1bn/-) for rural electrification projects in the 2016/2017 financial year. He called upon participants at the meeting to spend more time to deliberate on energy demand.

“Sustainable Development Goal number 7 (SDG7) provides for access to affordable, reliable, sustainable and modern energy for all by 2030, and my government has already embarked on implementation of various projects to attain this,” said Prof Muhongo.

According to Under-Secretary- General, UN Office of the High Representative for LDCs, Landlocked Developing States (UN-OHRLLS), Mr Gyan Chandra Acharya said two thirds of those living in Africa’s LDCs do not have access to electricity, yet the majority of those countries are endowed with vast reserves of renewable energy.

“These opportunities together with those technologies, offer many solutions for gaining energy access, therefore I hope this event will inspire new ideas on accelerating reliable access to energy and mobilizing finance bringing swift benefits to Africa’s poorest communities,” he said at the meeting.

The meeting was co-organised by (UN-OHRLLS), and the Government of Tanzania, with support from UNDP Tanzania. By the end of business today, it will consider many constraints to accessing finance for expanding modern energy.

According to UN Resident Coordinator Alvaro Rodriguez, sustainable energy is central to economic growth, social progress and environmental sustainability, as recognised in the 2030 agenda for Sustainable Development, which includes a standalone goal on energy (SDG7).

Mr Rodriguez who doubles as UNDP representative added: “Over the past two decades, UNDP has mobilized around US Dollars 2 billion in grant financing and for sustainable energy projects in more than 110 countries and territories worldwide.

Zambia: Lungu Dates South Africa

PRESIDENT Edgar Lungu is this week expected in South Africa for a three-day State visit at the invitation of his South African counterpart Jacob Zuma.

The two heads of State will hold a series of bilateral meetings aimed at strengthening cooperation between countries.

Zambian High Commissioner to South Africa, Emmanuel Mwamba, who announced the occasion, said Mr Lungu, is expected in that country on Wednesday.

The President would be accompanied by Foreign Affairs Minister Harry Kalaba, Energy Minister David Mabumba, Tourism and Arts Minister Charles Banda and Commerce, Trade and Industry Permanent Secretary Kayula Siame, among other Government officials.

“On Thursday, President Lungu will hold meetings with President Zuma in Pretoria, during which important decisions are expected to be made by the two leaders.

“President Lungu and President Zuma will also address a gathering of Zambian and South African captains of industry, business entities and executives organised under the auspices of the Zambia-South Africa Business Forum (ZSABF),” Mr Mwamba said.

This is according to a statement issued in Lusaka yesterday by Press Secretary at Zambia’s High Commission in South Africa, Nicky Shabolyo.

Mr Mwamba said Mr Lungu’s visit will be preceded by the signing of a Joint Commission for Cooperation (JCC) between the two countries, through which issues of common interest and concern will be addressed.

He said the session of the JCC would be held in Pretoria today and tomorrow, after which a ministerial session would follow on Wednesday.

Mr Mwamba said additional cooperation agreements in agriculture, tourism, infrastructure, trade and energy between the two countries were also earmarked for assent.

“Mr Kalaba and South African Minister for International Relations, Maite Nkoana-Mashabane, will sign the memorandum of understanding of the JCC on behalf of their countries.

“Ms Siame will lead the senior official delegation from Zambia to the JCC session that will consider areas of cooperation under political and diplomatic, economic, social, security and defence segments,” he said.

Mr Mwamba said President Lungu will, on Friday visit an energy project as part of the quest to find solutions to the power deficit that has befallen Zambia.

He said Mr Lungu would also meet Zambians living in South Africa and visit Freedom Park in Pretoria, where he will lay a wreath.

Freedom Park is the memorial site for the people killed in the first and second wars and the apartheid era.

Meanwhile, Patriotic Front Kasama Central Member of Parliament Kelvin Sampa has urged lawmakers to revisit the Law Association of Zambia (LAZ) Act and ascertain if the organisation is still functioning within its original mandate.

Mr Sampa alleged that LAZ has veered away from its mandate of providing guidance to the nation on legal matters owing to its current style of operating like a Non-Governmental Organisation (NGO).

He alleged that the association is peddling the agenda of the opposition United Party for National Development (UPND), a situation which had compromised its relevance in the country.

“I am calling on our seasoned lawyers in this country to stand up and salvage the image and the crucial role of LAZ which is on the verge of being compromised under the current leadership.

“Society looks up to LAZ to provide unbiased and non-politically inclined guidance and should demand that the original LAZ is brought back,” Mr Sampa said in Lusaka yesterday.

He said it was important to interrogate whether or not LAZ was designed to serve as a political pressure group, hence his interest in consulting the parliamentary statute that enshrines its existence.

Mr Sampa also warned UPND president Hakainde Hichilema and his vice Geoffrey Mwamba to desist from taking politics to places such as markets because such maneuvers were detrimental to effective service delivery.

Malawi Fails to Meet Extended Credit Facility Deadline – IMF Approves ‘More Time’

The International Monetary Fund (IMF) has approved that Malawi government authorities be granted more time to achieve the Extended Credit Facility (ECF) programme objectives for which it borrowed $146.7 million for (about K108 billion).

The extension, approved on Monday — without an executive Executive Board meeting — will go until June 2017.

In a media statement which Nyasa Times has seen “an earlier extension of the arrangement from June 30, 2016 to December 2016 and an augmentation of access of about US$ 49.2 million was approved by the Board on June 20, 2016.”

According to the IMF, the decision was reached at to strengthen the country’s response to the El Niño-induced drought.

Malawi has suffered massive floods and droughts in the last two consecutive years putting at least 8 million people at risk of food insecurity.

The international monetary body hopes that with the extension, “maintenance of macroeconomic stability and implementation of policies and structural reforms to spur growth, diversify the economy and reduce poverty” will be achieved.

Malawi authorities have also requested for waivers of non-observance of performance criteria related to net domestic borrowing by the government and net international reserves.

The impoverished southern African country, which gets 40 per cent of its budgetary support from external donors including the IMF, continues to suffer a malaise economic show up.

In the last two years, the country’s currency — the kwacha — has wobbled due to devaluation with the current inflation rate at 22 per cent.

The three-year ECF arrangement for Malawi in total amounts to about US$ 144.4 million.

The ECF is a lending arrangement that provides sustained program engagement over the medium to long term in case of protracted balance of payments problems.

South Africa: President Zuma Congratulates Team SA On Positive Credit Rating

Pretoria — President Jacob Zuma has congratulated government, business, labour and all South Africans after three major credit rating agencies kept South Africa’s sovereign debt credit rating status above junk status.

Rating agency Standard and Poor (S&P) on Friday affirmed South Africa’s sovereign credit rating at one notch above junk status and kept it at BBB with a negative outlook. This is investment grade rating.

“We congratulate Team South Africa particularly government, business and labour for ensuring that the country’s sovereign debt credit rating status is not downgraded to junk status. Unity in action and hard work have paid off against a very volatile global economic climate,” President Zuma said.

“Working together as government, business and labour we can overcome the current economic challenges and we must continue working hard and creatively to reignite growth so that jobs can be created for our people,” the President said

He assured international investors that South Africa remains an important and strategic investment destination.

The latest announcement by S&P means that all three rating agencies including Moody’s and Fitch have retained South Africa in an investment grade. The Fitch ratings firm last week kept South Africa one notch above junk, but dropped its outlook from stable to negative.

Uganda: Experts Ask Govt for Affordable Housing

Kampala — Real estate experts have asked government to prioritise affordable housing to alleviate the current housing crisis in the country.

While addressing guests at the Buganda Investment Forum in Kampala on Tuesday, Knight Frank managing director, Ms Judy Rugasira, said much as the struggle to resolve the current housing crisis should be a product of a collaborative partnership between the private sector, government should formulate policies that will salvage the situation.

“Affordable housing programmes are not sustainable without the direct fiscal policy of government. If left to landlords alone, we shall never have affordable housing because their end goal is to make money,” she said.

According to the Uganda National Housing Policy (UNHP), affordable housing is housing for which the associated financial costs are at a level that does not threaten other basic needs and represents a reasonable proportion of household income.

With a population of 34m people living in 7.7m households, Uganda has a housing deficit of 1.6 million units according to UNHP and remains with a requirement of 200,000 units per year. However, only about 5,000 units are built per year as per ministry of Lands.

Ms Rugasira pointed out that attempts have been made to provide better housing but current house prices are very high and continue to rise between 10 to 15 per cent per year amidst low growth in household income.

Commenting on home ownership, Shelter Afrique managing director James Mugerwa, said instead of finding scarce finances for mortgages, government, should intervene in the rental market as 90 per cent of Ugandans cannot afford to buy a home.

Tanzania: No Change in Dangote Incentives, Says Minister

Dar es Salaam — Minister for Industries, Trade and Investments Charles Mwijage said yesterday that Dangote Cement is still enjoying the same incentives it was promised when the company was invited to invest in Tanzania.

Addressing a press conference yesterday, Mr Mwijage said the new government under President John Magufuli didn’t do away with any of the investment incentives which were negotiated granted by former President Jakaya Kikwete’s government.

The press conference was attended by the acting managing director of Tanzania Petroleum Development Corporation (TPDC) Kapuulya Musomba and acting commissioner of minerals John Shija.

The minister didn’t reveal the incentives as his aides, who were present in the meeting, advised him not to.

Reports are rife that the current government is of the view that some of the incentives accorded to Dangote Industries Tanzania Limited to install the $500 million (Sh1 trillion) industry were unjustifiable and had to be scrapped. The refusal by the government to continue granting Dangote incentives such as exemptions on import duty for diesel have led to what the company sees as overly high production cost.

Stressing that the observation wasn’t correct, Mr Mwijage said: “The matter is exaggerated… Dangote Cement is still enjoying all the incentives that they were getting when they opened shop during the last administration.

“Of course, it is difficult to fulfil an investor’s wishes by 100 per cent… indeed many wish for more and more tax reliefs, but a law was passed to control tax incentives by the last regime in 2014.”

Mwijage said the government would do nothing to compromise the Dangote investment since it is the game changer in the cement industry in the country.

“Since they started production, prices have gone down from Sh16,000 per bag to Sh11, 000. But we can’t take the risk of lowering costs for them alone. Currently we have 11 manufacturers with a capacity of producing 10 million tonnes out of which Dangote can produces 3 million. So even these 10 also need our eye and care.”

According to Mr Mwijage, another big cement manufacturer, named Engro, has shown interest in opening up shop in the country and has requested the same incentives that Dangote receives and said it doesn’t have any problems with that.

Addressing the issue of high production cost that is purportedly crippling the Dangote plant, the minister said the company has two options at its disposal to avoid high cost: using local coal or using natural gas.

TPDC currently charges $5.14 per 10,000 cubic feet but the Minister for Energy and Minerals, Prof Sospeter Muhongo, is facilitating negotiations to enable Dangote Cement pay at least $4 because the factory is located near the gas wells.

“There’s $3 dollar charged as head-well tariff which covers costs of extraction and processing which is not contested; there’s also $2.14 for transportation, this is the one that is somehow contested, and to avoid more bureaucracy, Prof Muhongo is sorting this matter and at the end consumers will pay in accordance to their location,” he said.

The minister also addressed concerns raised by Igunga MP who chairs the Parliamentary Committee on Industries, Trade and Environment, Dr Dalay Kafumu, who posted in social media sites that the government was slow in delivering promises which were made to attract the company to invest in the country, including providing access to cheap limestone, tax relief, ample land and cheap natural gas.

But the minister said the Dangote factory stands at the heart of limestone deposits which it can exploit for more than a century. “The issue of tax reliefs is hearsay; there’s no evidence to back it up and it is exaggerated.”

With regard to local coal, the minister said early this year that the price of a tonne was $45 but that was reduced to $39. “As of yesterday (Wednesday), the cost of a tonne until it reaches the Dangote plant was $90 and from South Africa was it is $103. So our coal is much cheaper and of better quality.”