EACOP vs Lamu pipeline

[KIBAKI GENIOUS]

Unasema wakenya ni watu werevu kuliko wote Africa mpaka wazungu wanawaogopa lakini hapo hapo unasema kigezo cha ninyi kuwa werevu Africa na wazungu kuwaogopa ni kwa sababu mnahost UN offices, Google, US embassy, Microsoft, ngos

Kweli wewe mkenya
Msiba huu

Ni wapi nimesema kuhost headquarters za UN ndicho chanzo cha werevu wetu! Hiyo ni mojawepo ya sababu ambazo zinafanya Wabeberu kuona ngumu kusababisha vita Kenya, ukisababisha vita Kenya macho yote ya ulimwengu yatapata habari kuwa ni wewe unayeisababisha na kwa hivyo mambo yako yataharibika. Uhuru Kenyatta alipochukua hatsmu za urais jambo lililokuwa la kwanza ni kuwaita matais wote wa kiafrika makao makuu ya AU mada ikiwa kwani mahakama ya ICC iliundiwa mtu mweusi tu! .Natumai unapata picha jinsi Kenya ilivyo nomaa. vita vingi husababishwa na raslimali kama petroli na madini mengineo, ufaransa na nchi nyingine za kimagharibi huzua vurughu wakitumia waasi ili wafyonze hizo raslimali. DR Congo,South Sudan,Gabon,Angola na nyinginezo zimekumbwa na vurughu ilihali zina utajiri mkubwa wa madini kwa sababu Wafaransa na wabelgiji ndio wenye kuyaiba madini yao.

 

[Geza Ulole]

 

[Geza Ulole]

Oil pipeline works to start from Tanzania​

WEDNESDAY APRIL 14 2021​

ILLUSTRATION: The oil pipeline route from Hoima (Uganda) to Tanga (Tanzania).

​

Summary​

• Although officials do not state the exact start date, they say a few items need to be sorted to pave the way for works.

By Frederic Musisi
More by this Author

The construction of the proposed East African Crude Oil Pipeline (EACOP) will start on the Tanzanian side en route to Uganda, officials have revealed but without stating the start date.

Speaking yesterday at a press briefing on the oil agreements signed on Sunday, the Eacop company general manager, Mr Martin Tiffen announced that construction works on all the oil projects - Total E&P’s Tilenga in Nwoya and Buliisa districts, Cnooc’s Kingfisher in Hoima and Kikuube districts, and the pipeline - will move simultaneously.

“We are not retracting on the momentum,” Mr Tiffen said.

He explained that the pipeline would start in Tanzania because the distance is longer moving into Uganda.

Although Mr Tiffen was unwilling to provide additional details, sources told Daily Monitor that in Tanzania land acquisition is much easier because government owns the land. In Uganda the airport is not yet ready meaning construction materials have to be brought by road.

The Tanzanian pipeline section from the border town of Mutukula to Chongoleani terminal in Tanga at the Indian Ocean is 1,443km. The Ugandan section from Hoima through 10 districts of Hoima, Kikuube, Kakumiro, Kyankwanzi, Mubende, Gomba, Ssembabule, Lwengo, Kyotera to Mutukula in Rakai is 296km.

Mr Tiffen further explained that there are only few pending items in the way of starting construction works, including government giving not to the Engineering, Procurement, and Construction (EPC) contracts, and signing of the Host Government Agreement (HGA) with the Tanzanian government “expected in the coming weeks.”

Oil and gas companies often rely on EPC contractors for large-scale and long-term projects that require skilled labour and fine-tuned project management.

The Tanzanian HGA was due for signing on Sunday but was delayed due to last minute changes in Tanzania’s shareholding in the EACOP. The new shareholding structure, as detailed in the Shareholders Agreement, which defines the rights and responsibilities of the shareholders in the pipeline company as signed on Sunday, is; Uganda through Unoc with 15 per cent, Total Holdings International B.V. with 62 per cent, Tanzania through its national oil company, TPDC, with 15 per cent, and Cnooc with 8 per cent.

“The Shareholders Agreement is significant because it has constituted the EACOP Company, and will now guide the funding of shareholding, finance structure and general governance of the company,” said Energy minister Goretti Kitutu.

The EACOP funded in debt-to-equity ratios of 60:40, is expected to cost $3.5b (Shs13trillion). Total Holdings International B.V, the majority shareholder and which is domiciled in the Netherlands, is so far mum on how it will raise its lion share of project finances.

Left-Right: Total Business Development and Public Affairs Director Nathan Morgan, East African Crude Oil Pipeline (EACOP) General Manager Martin Tiffen, Ministry of Energy and Mineral Development Permanent Secretary, Robert Kasande and Total Uganda General Manager, Pierre Jessua after the press briefing at Kampala Serena Hotel yesterday. PHOTO/DAVID LUBOWA

However, at yesterday’s press conference, the Total E&P general manager, Pierre Jessua as well as Ms Kitutu and the Energy ministry Permanent Secretary Robert Kasande were upbeat about the Ugandan oil project progressing fast after Sunday’s signing of the three EACOP agreements.

“With these agreements in place, the oil companies and government will proceed with the approval and award of contracts to the main EPC contractors. This will enable the construction work for the projects to proceed.”

According to the Energy ministry, the development/construction phase is expected to generate 14,000 directs jobs, 45,000 indirect jobs by the contractors, and induced employment of another 105,000 people as a result of utilisation of other services by the oil and gas sector: 57 percent of these are expected to be Ugandans and would yield at least $48.5m (Shs175b) payments annually.

Contracts
Already, according to the ministry, contracts worth $167m (Shs604b), out of the $1.3b (approx. Shs4trillion) EPC contracts for the Tilenga and Kingfisher projects under review by the oil sector regulator—the Petroleum Authority, are to be awarded to Ugandan companies. This is however, subject to approval by government and subsequent award by Total E&P and Cnooc.

The ministry also expects that participating Ugandan enterprises in the provision of goods and services during the development/construction phase are expected rake in at least $4.2b (Shs15 trilliion), the equivalent of 28 per cent of the total expected investments of $15b (Shs54 trillion) by the oil companies over the next five years.

“This only accounts for 19 out of the over 30 work packages to be awarded by the licensees. However, it is important to note that there will be many more subcontracts given to Ugandan companies through subcontracting by the Level-1 contractors,” Ms Kitutu added.

Sunday’s signing ceremony at State House, Entebbe attended by Tanzanian President Samia Hassan Suluhu, and the French oil giant Total SE chief executive Patrick Pouyanne, Ms Kitutu revealed marked commencement of the project “and there is no document that will be signed for, or called, “FID”.

“It is a demonstration of the commitment the respective governments and oil companies have for the projects.”

Other factors kept constant, commercial oil production is expected to start the earliest, 2025.

editorial@ug.nationmedia.com

Oil pipeline works to start from Tanzania

Although officials do not state the exact start date, they say a few items need to be sorted to pave the way for works

www.monitor.co.ug

MY TAKE
GoT has upped her stake to 15% in the EACOP

CC: Tony254

 

[eliakeem]

Ni wapi nimesema kuhost headquarters za UN ndicho chanzo cha werevu wetu! Hiyo ni mojawepo ya sababu ambazo zinafanya Wabeberu kuona ngumu kusababisha vita Kenya, ukisababisha vita Kenya macho yote ya ulimwengu yatapata habari kuwa ni wewe unayeisababisha na kwa hivyo mambo yako yataharibika. Uhuru Kenyatta alipochukua hatsmu za urais jambo lililokuwa la kwanza ni kuwaita matais wote wa kiafrika makao makuu ya AU mada ikiwa kwani mahakama ya ICC iliundiwa mtu mweusi tu! .Natumai unapata picha jinsi Kenya ilivyo nomaa. vita vingi husababishwa na raslimali kama petroli na madini mengineo, ufaransa na nchi nyingine za kimagharibi huzua vurughu wakitumia waasi ili wafyonze hizo raslimali. DR Congo,South Sudan,Gabon,Angola na nyinginezo zimekumbwa na vurughu ilihali zina utajiri mkubwa wa madini kwa sababu Wafaransa na wabelgiji ndio wenye kuyaiba madini yao.

A Day Dreamer, full of wishful thinking.

Kwa hiyo unafikiri Tanzania ni rahisi kuingizwa kwenye vita!!!?

Wakati saa hii ninyi huko isiolo watu wameuana kwa sababu ukabila. Upumbavu wa hali ya juu.

Kwani hujui ya kuwa Miongoni mwa issue zilizofanya mkose bomba ni hiyo social and political unrest!!?

 

[Geza Ulole]

 

[eliakeem]

We need the heading to be read "EACOP UPDATES".

CC: Moderator
Invisible

 

[Just ails]

How many barrels of oil will uganda be producing,200,000 per day? That's too little to be wanking all day about.there are things to cum about like devki steel mill, manufacturing value added that will employ hundred thousands of people directly or indirectly not little transit fees.

 

[Lewis254]

kuna mtu atakuja lizwa hapa

 

[Lewis254]

We need the heading to be read "EACOP UPDATES".

CC: Moderator
Invisible

actually it should read UCOP UPDATES. the U is for Uganda. Tanzania is just acting like an errand boy earning peanuts.

 

[Geza Ulole]

How many barrels of oil will uganda be producing,200,000 per day? That's too little to be wanking all day about.there are things to cum about like devki steel mill, manufacturing value added that will employ hundred thousands of people directly or indirectly not little transit fees.

Motisun: supplying a diverse business portfolio in Africa​

Admin
|Apr 25|

15 min read

|Read in Magazine
Motisun: supplying a diverse business portfolio in Africa | Brochure | Supply Chain Digital

The port of Dar es Salaam, the ‘haven of peace’, is the gateway to eastern, central and southern Africa. The former Tanzanian capital has an international airport, and rail links to the landlocked nations, including the Chinese-funded TAZARA linking it with Zambia’s Copper Belt and a planned 2,190-km railway to Rwanda, Burundi and the DRC. It is expanding to rival Mombasa and Djibouti as the country develops its industry and the port acclimatizes with the demand for container and bulk mineral export capacity.

Tanzania is not being left behind in Africa’s internet transformation. Dar es Salaam is connected to the rest of the world by all the major undersea cables that have been laid in recent years, including SEACOM and the Eastern Africa Submarine Cable System (EASSy). Other deepwater ports such as Pangani, Mtwara and Bagamoyo are being developed to take the pressure from Dar es Salaam and provide access for Panamax vessels.

This vibrant city has been home to the Motisun Group since it was founded in 1992 by Subhash Patel. And, though it has grown to rank among the strongest business groups on the continent, it remains a family concern. It started with a small-scale steel plant with a single induction furnace and rolling mill, but today MMI Steel Mills produces more than 200,000MT of steel a year. However, steel is only one of many products the group produces. It also manufactures paints, pipe, beverages and juices sold under the Sayona brand, as well as cabling and plastic products of all kinds, distributing them throughout Tanzania and exporting them to all African markets. It manufactures locally in some of those markets. More recently, Motisun Group has been able to diversify into hospitality, hotels, resorts and real estate.

A glance at the diversity of interests reveals a complex logistics and supply chain network. Key to the smooth running and cost management of this network is the procurement department. Manoj Kumar is Head of Global Procurement for Motisun, oversees this vital part of the business from his office in Dar es Salaam and manages a team of procurement professionals there in each of the businesses.

The businesses are very diverse, he says. “Under the Sayona brand, we diverse range of juices, carbonated soft drinks and packaged drinking water, and we started going into pure fruit juices, which are produced at state of the art a new plant on a 40-acre site in the Mboga area, Bagamoyo, which is 150 km from Dar es Salaam.” The juices are prepared using fresh fruit sourced from Tanzania, and the beauty of this product is that fresh fruit of the highest quality, such as mangos, pineapple, Guava and Orange is available across Africa.

If raw materials for Sayona products are comparatively simple and reliable to source, the supply chain for the paints produced under the Kiboko brand is somewhat more complex. Only 30% of finished goods are imported, the rest is manufactured in high-capacity factories, backed by an in-house resin & emulsion manufacturing plant. The Kiboko division can produce 50 tons of top-quality paint a day to satisfy the 60% share of the Tanzanian market that Kiboko holds. Packaging and labelling are manufactured at a separate facility. The onward supply chain relies upon stockists with warehouses all over Tanzania, from Dar es Salaam to Mwanza and Arusha to Mtwara. No area is too remote.

Motisun: supplying a diverse business portfolio in Africa

Motisun Group has grown to become one of Tanzania and Africa’s dominant conglomerates, achieving stellar growth and diversification...

www.supplychaindigital.com

Leading steel manufacturer in Tanzania talks about business and economy​

Gagan Gupta, Chairman of Kamal Steel Group​

Interview with Gagan Gupta, Chairman of Kamal Steel Group​

Tanzania’s real GDP growth is forecast to average about 6.3 percent between 2016 and 2020. This is a very brisk growth trend and it obviously reflects the relatively robust domestic demand in the consumption sector. How is this buoyant macroeconomic backdrop helping to benefit Kamal Steel?

Tanzania is now on the world map. After the exploration of the hydrocarbon sector from all over the world, there is much attraction and interest in investing here, which will play a very big role towards the growth and development of the GDP in Tanzania. Kamal Steel will see a direct advantage from any investment that comes to the country because we produce the steel which is the basic core material for infrastructure, construction, or even the LNG. There are also benefits from policies with the World Bank, how to consume the local product, as well as how local industry can benefit from foreign investment. Kamal Steel will therefore directly benefit from that GDP growth and continue to participate in the rapid growth of Tanzania.

Kamal Steel or Kamal Group registered its flagship company, Kamal Steels Limited, here in 2004 and today has become the largest Hi-Tensile Steel and Re-bars producer in East Africa. Can you provide a brief history and the context of your corporate journey in Tanzania?

We went into business in 2004 and it was not a planned journey. I had come here to Dar es Salaam just on holiday as a tourist. It was my first trip to Africa. Then, as a businessman, I became interested in steel because we are involved with steel in India. I went to some individuals who were dealing with steel here in Tanzania and asked what they were doing and what the prices were like. I spotted a large gap between the raw material and the finished product.

You spotted an opportunity?

Yes. My first concern was the cost of the importing. The raw material is already here, but people are still importing. I did not know anyone in business in Tanzania because I was just a tourist. I did not have any relatives here. Immediately, though, I found the right person. Unfortunately, he passed away five years ago. His name was Mr. Salgar, and he was the CEO of the Safal Group with Chandaria, which is a Kenya based group. They are a very large group in Africa. I had the chance to meet him and told him that this business was very interesting to me. I asked him what I could do here and what challenges there were. He told me that there was very good business to be had here and that if I wanted to pursue this, Tanzania had good policies and would support me.

He also warned that there are challenges of course and you have to fight. I said I was ready to fight these challenges. Then he offered me some land he had to sell. I asked him where it was and it was actually right next to his land. So on that first day, I agreed to buy the land for my factory and they are still my neighbors today. I then sent my team from India to install the factory, machines and orders. That was the starting point in 2004. We started production in March 2005. It was very quick. I made my decision without any feasibility study or consultancy. It was a good decision at the time. Now, Kamal is active in different sectors. We are producing gas and our oil refinery is ready to produce around 30,000 tons per year from the oil. We are producing 80,000 tons of steel. Our production line is ready to produce another 50,000 tons. Within the next six months, we will have produced almost 130,000 tons. However due to the power challenges, my project is delayed by another year, but we are now putting together another 300,000 ton steel mill. Before 2020, we want to produce more than a half million tons in this country. Demand is growing. New infrastructure being built all the time and they need domestic steel as an imort substitute.

What is the total market demand here?

The Tanzanian market has a demand more than a half million tons and year and the East African market combined is more than one million tons combined.

We want to grow slowly. We want to meet the demand of the country slowly. We have different operations and different challenges in the various sectors we operate in, so we have to concentrate on them piecemeal.

Kamal Steel presents an inspiring example of the benefits that can result from a South-South engagement of an Indian company coming to another undeveloped or not yet fully developed economy.

The market is always beneficial for us because it is a newly growing market and India is already quite developed in the steel sector. The relationship between India and Tanzania has been very strong for a long time. We have always received support from both the Indian and Tanzanian governments.

As an Indian investor, you gauged and identified the opportunities which were presented by a fruitful and growing market here, and then pursued these opportunities to the benefit of both yourself as an investor and the country that is reaping the benefits of this investment.

Correct.

Steel production is set to reflect the trajectory of the overall construction sector here. Obviously the bridges and high-rises have added to Tanzania’s man-made landscape. In August 2014, Kamal Steel inaugurated the new 200 million dollar addition to its Chang'ombe Plant in Dar es Salaam providing you with an additional 80 million tons annual capacity. How will this new plant form a part of your overall strategy?

Our Chang'ombe factory is fully developed. That is why we have developed our new steel mill facility about 32 kilometers away along the Bagamoyo Road in the 300 acre industrial park. We have already given land to investors from Dubai, China and India and we are keeping almost 60 acres of land for ourselves for future projects. The investors have their own prospects on planning so they can establish their own industry. We are promoting similar industry here to create more employment, which is of course a basic need here in Tanzania. The unemployment rate, especially among youth, is very high so we need to provide them with employment. Kamal employs more than 300 employees in steel. In addition to our other factories, we directly employ more than 400 people today.

Kamal employs more than 300 employees in steel. In addition to our other factories, we directly employ more than 400 people today.

Since you first came to Tanzania in 2004, Kamal Group has successfully branched into several other industries ranging from mining, industrial, medical gases, and other construction related industries. What are some other promising subsectors you see Kamal expanding into?

In Tanzania, the major challenge is power. Without power no industry can run. The power must be constant and reliable. Most industries need 24 hour power to perform without issues arising, from cement factories to glass factories to steel factories. We cannot have a disturbance in the power. One breakdown can create big losses. That is a very important and challenging factor in Tanzania. In 2013, we developed our industrial park and that was quite a challenge for us. We talked with the government and told them we needed this power and they told me to see this challenge as an opportunity. I met with the people of TANESCO who also appreciated the opportunity this challenge posed, and we decided to build a 225-megawatt power project and establish an industrial park. We have done a lot of work already with documenting, gas supply agreements and negotiations, locations of the gas, as well as an extensive environmental impact assessment. We are now in the final stages.

Because of the size of the power project in Tanzania as a whole, we decided to sell back some of the power to TANESCO, which we will then buy back. So my production facilities will have continuous, good quality power. This is all because an investor from Dubai bought the land for the Siemens Plant, another investor bought the land for a medicine factory, and we also have automobile investors from India showing keen interest to start industry over here.
Because our background is in the industrial sector in India, it was easy for us to convince the investors because we already have a success story in Tanzania.

I am promoting the industry here, but I cannot do it all. I am promoting Tanzania as an investment destination. I am the Chairman of the Indian Business Forum and we are also a part of the Industrial Association in India. We have held a lot of meetings and seminars in India, Singapore, China, and Dubai to attract more investors to come here and invest in Tanzania. It is one of the best destinations for investment and we are proof of that.

So you have personally been banging the drum for Tanzania?

It helps with the GDP growth. If these people come and construct buildings or houses or factories tomorrow, they will need steel. Therefore it is mutual growth for everyone, and we as Kamal Steel benefit directly from that trend. That is why we are promoting Tanzania. We are getting investors from the United States because they believe in us as businessmen. We are not bothered by inviting competition. Let the investment come. That is more important than worries about competition.

The company has also launched its own private Export Processing Zone or EPZ. More generally, the government has placed a specific policy priority to focus on industrialization and boosting manufacturing productivity and so forth, obviously in a bid to attract investment into all of those sectors. The government also intends to expand and establish several more Special Economic Zones. Do you hope these will open the door to investors who will potentially make similar contributions to the private sectors in Tanzania?

I am always thinking about how to promote the country and bring in more industry. We organize a lot of seminars and we particularly talk on the ground level. TIC people and investors want to visit your industry because if people see, then they can do much better. I have followed our Excellency, the Honorable President Doctor John Magufuli, since the elections last October. From the first day, his focus was on industrialization and bringing in more industry. If the President is talking about industrialization and understands the core points, that is very good news for the investor. He supports all industrializations and he understands that only industrialization can bring change and create employment.
When the Indian Prime Minister was here, he talked about how to bring more industrial investment from India, because India is also an industrial country. Kamal Steel is lucky in that we are already here. It is a very good opportunity for us. In 2010, we developed the first industrial park . The whole country had no specified industrial area. I decided to develop the industrial park for heavy industries and we had to travel 32 kilometers from the city center. My dream has come true because my President wants the same thing that we have already implemented.

Do you have Tanzanian citizenship?

Not in law. I am an Indian passport holder. But my younger brother, Sameer, is a Tanzanian now. So our interest is here. We are here for the long term.

Regionally, you have a dealer network which already encompasses many countries in the area, such as Zambia, Burundi, Congo, Kenya, Malawi, and so on. Do you intend to continue to deepen your footprint across the African continent at large?

No. My work style is different. We are making a footprint in Zambia, Rwanda, Burundi and neighboring countries also, but I want to fulfil the demand of Tanzania first and foremost. My full focus is on Tanzania and identifying where there are weaknesses, in the power sectors, the steel sector. Expanding our business is a different issue. Tanzania is a very big market. You can put a footprint anywhere and open an office. I do not want that. I want to focus on one place and make it strong so I can be part of the growth of Tanzania. We are participating in terms of the revenue and taxes and we are doing good work in the country.

How much satisfaction do you take personally in being a member of the Tanzanian business community and being able now to actively contribute towards its overall social economic development?

There are challenges. Yet it is also true that if there is a challenge, then there is a profit to be made. We have to face the challenges. My father always told the story of industrialization in India in the 1960s and 70s which were a very difficult time. He taught me to not be worried about challenges, but to fight them. In my personal view of Tanzania, I never feel away from home, here. I never feel scared. People are very humble and very supportive.

They are extremely respectful. I am from India and this is my first-choice destination. So I have a great respect for this country and this country has also given me a lot in terms of my growth and my respect. We are also doing whatever we can do on a social level and through social corporate responsibility. We have adopted two schools. For many years we have fed 1,600 children every day. We are giving lunch every day to these children so they will come to school and study. The parents are also happy.

By 2020, we want to feed at least 10,000 children. We can adopt more schools because food and education are both related.

For now we are focusing on steel and power. We have the refinery already established and other projects are in progress. We are working very hard in the agriculture sector. We are focusing on different sectors to find what can benefit the country, the weaknesses, and where we can make a bridge between India and Tanzania. India is also importing a lot of crops and everyday staple foods from Tanzania. We are talking with the government and different organizations in India to make a better bridge so that Tanzanian farmers can benefit from good regulations and fair prices in the future and really benefit from the market. They need this. The Indian Business Forum is inviting the big farmers and introducing them straight to the Indian buyers so they can export directly and get a good price, which will then allow them to grow more.

As I am here in Tanzania, it is my duty to pass on that opportunity to the Tanzanian people.

Leading steel manufacturer in Tanzania talks about business and economy

Leading steel manufacturer in Tanzania talks about business and economy in an exclusive interview. View more about the major steel producing company in Tanzania.

marcopolis.net

 

[eliakeem]

actually it should read UCOP UPDATES. the U is for Uganda. Tanzania is just acting like an errand boy earning peanuts.

It'll make sense if read KCOP, coz Kenya is a master loser of the project.

 

[Geza Ulole]

actually it should read UCOP UPDATES. the U is for Uganda. Tanzania is just acting like an errand boy earning peanuts.

and that errand boy will be getting around $100 mln in fees monthly from crude transiting her territory aside tankers calling at Tanga port! in a year around $1.2 bln more than what Kenya gets from her largest export i.e. tea!

 

[Just ails]

Motisun: supplying a diverse business portfolio in Africa​

Admin
|Apr 25|

15 min read

|Read in Magazine
Motisun: supplying a diverse business portfolio in Africa | Brochure | Supply Chain Digital

The port of Dar es Salaam, the ‘haven of peace’, is the gateway to eastern, central and southern Africa. The former Tanzanian capital has an international airport, and rail links to the landlocked nations, including the Chinese-funded TAZARA linking it with Zambia’s Copper Belt and a planned 2,190-km railway to Rwanda, Burundi and the DRC. It is expanding to rival Mombasa and Djibouti as the country develops its industry and the port acclimatizes with the demand for container and bulk mineral export capacity.

Tanzania is not being left behind in Africa’s internet transformation. Dar es Salaam is connected to the rest of the world by all the major undersea cables that have been laid in recent years, including SEACOM and the Eastern Africa Submarine Cable System (EASSy). Other deepwater ports such as Pangani, Mtwara and Bagamoyo are being developed to take the pressure from Dar es Salaam and provide access for Panamax vessels.

This vibrant city has been home to the Motisun Group since it was founded in 1992 by Subhash Patel. And, though it has grown to rank among the strongest business groups on the continent, it remains a family concern. It started with a small-scale steel plant with a single induction furnace and rolling mill, but today MMI Steel Mills produces more than 200,000MT of steel a year. However, steel is only one of many products the group produces. It also manufactures paints, pipe, beverages and juices sold under the Sayona brand, as well as cabling and plastic products of all kinds, distributing them throughout Tanzania and exporting them to all African markets. It manufactures locally in some of those markets. More recently, Motisun Group has been able to diversify into hospitality, hotels, resorts and real estate.

A glance at the diversity of interests reveals a complex logistics and supply chain network. Key to the smooth running and cost management of this network is the procurement department. Manoj Kumar is Head of Global Procurement for Motisun, oversees this vital part of the business from his office in Dar es Salaam and manages a team of procurement professionals there in each of the businesses.

The businesses are very diverse, he says. “Under the Sayona brand, we diverse range of juices, carbonated soft drinks and packaged drinking water, and we started going into pure fruit juices, which are produced at state of the art a new plant on a 40-acre site in the Mboga area, Bagamoyo, which is 150 km from Dar es Salaam.” The juices are prepared using fresh fruit sourced from Tanzania, and the beauty of this product is that fresh fruit of the highest quality, such as mangos, pineapple, Guava and Orange is available across Africa.

If raw materials for Sayona products are comparatively simple and reliable to source, the supply chain for the paints produced under the Kiboko brand is somewhat more complex. Only 30% of finished goods are imported, the rest is manufactured in high-capacity factories, backed by an in-house resin & emulsion manufacturing plant. The Kiboko division can produce 50 tons of top-quality paint a day to satisfy the 60% share of the Tanzanian market that Kiboko holds. Packaging and labelling are manufactured at a separate facility. The onward supply chain relies upon stockists with warehouses all over Tanzania, from Dar es Salaam to Mwanza and Arusha to Mtwara. No area is too remote.

Motisun: supplying a diverse business portfolio in Africa

Motisun Group has grown to become one of Tanzania and Africa’s dominant conglomerates, achieving stellar growth and diversification...

www.supplychaindigital.com

Leading steel manufacturer in Tanzania talks about business and economy​

Gagan Gupta, Chairman of Kamal Steel Group​

Interview with Gagan Gupta, Chairman of Kamal Steel Group​

Tanzania’s real GDP growth is forecast to average about 6.3 percent between 2016 and 2020. This is a very brisk growth trend and it obviously reflects the relatively robust domestic demand in the consumption sector. How is this buoyant macroeconomic backdrop helping to benefit Kamal Steel?

Tanzania is now on the world map. After the exploration of the hydrocarbon sector from all over the world, there is much attraction and interest in investing here, which will play a very big role towards the growth and development of the GDP in Tanzania. Kamal Steel will see a direct advantage from any investment that comes to the country because we produce the steel which is the basic core material for infrastructure, construction, or even the LNG. There are also benefits from policies with the World Bank, how to consume the local product, as well as how local industry can benefit from foreign investment. Kamal Steel will therefore directly benefit from that GDP growth and continue to participate in the rapid growth of Tanzania.

Kamal Steel or Kamal Group registered its flagship company, Kamal Steels Limited, here in 2004 and today has become the largest Hi-Tensile Steel and Re-bars producer in East Africa. Can you provide a brief history and the context of your corporate journey in Tanzania?

We went into business in 2004 and it was not a planned journey. I had come here to Dar es Salaam just on holiday as a tourist. It was my first trip to Africa. Then, as a businessman, I became interested in steel because we are involved with steel in India. I went to some individuals who were dealing with steel here in Tanzania and asked what they were doing and what the prices were like. I spotted a large gap between the raw material and the finished product.

You spotted an opportunity?

Yes. My first concern was the cost of the importing. The raw material is already here, but people are still importing. I did not know anyone in business in Tanzania because I was just a tourist. I did not have any relatives here. Immediately, though, I found the right person. Unfortunately, he passed away five years ago. His name was Mr. Salgar, and he was the CEO of the Safal Group with Chandaria, which is a Kenya based group. They are a very large group in Africa. I had the chance to meet him and told him that this business was very interesting to me. I asked him what I could do here and what challenges there were. He told me that there was very good business to be had here and that if I wanted to pursue this, Tanzania had good policies and would support me.

He also warned that there are challenges of course and you have to fight. I said I was ready to fight these challenges. Then he offered me some land he had to sell. I asked him where it was and it was actually right next to his land. So on that first day, I agreed to buy the land for my factory and they are still my neighbors today. I then sent my team from India to install the factory, machines and orders. That was the starting point in 2004. We started production in March 2005. It was very quick. I made my decision without any feasibility study or consultancy. It was a good decision at the time. Now, Kamal is active in different sectors. We are producing gas and our oil refinery is ready to produce around 30,000 tons per year from the oil. We are producing 80,000 tons of steel. Our production line is ready to produce another 50,000 tons. Within the next six months, we will have produced almost 130,000 tons. However due to the power challenges, my project is delayed by another year, but we are now putting together another 300,000 ton steel mill. Before 2020, we want to produce more than a half million tons in this country. Demand is growing. New infrastructure being built all the time and they need domestic steel as an imort substitute.

What is the total market demand here?

The Tanzanian market has a demand more than a half million tons and year and the East African market combined is more than one million tons combined.

We want to grow slowly. We want to meet the demand of the country slowly. We have different operations and different challenges in the various sectors we operate in, so we have to concentrate on them piecemeal.

Kamal Steel presents an inspiring example of the benefits that can result from a South-South engagement of an Indian company coming to another undeveloped or not yet fully developed economy.

The market is always beneficial for us because it is a newly growing market and India is already quite developed in the steel sector. The relationship between India and Tanzania has been very strong for a long time. We have always received support from both the Indian and Tanzanian governments.

As an Indian investor, you gauged and identified the opportunities which were presented by a fruitful and growing market here, and then pursued these opportunities to the benefit of both yourself as an investor and the country that is reaping the benefits of this investment.

Correct.

Steel production is set to reflect the trajectory of the overall construction sector here. Obviously the bridges and high-rises have added to Tanzania’s man-made landscape. In August 2014, Kamal Steel inaugurated the new 200 million dollar addition to its Chang'ombe Plant in Dar es Salaam providing you with an additional 80 million tons annual capacity. How will this new plant form a part of your overall strategy?

Our Chang'ombe factory is fully developed. That is why we have developed our new steel mill facility about 32 kilometers away along the Bagamoyo Road in the 300 acre industrial park. We have already given land to investors from Dubai, China and India and we are keeping almost 60 acres of land for ourselves for future projects. The investors have their own prospects on planning so they can establish their own industry. We are promoting similar industry here to create more employment, which is of course a basic need here in Tanzania. The unemployment rate, especially among youth, is very high so we need to provide them with employment. Kamal employs more than 300 employees in steel. In addition to our other factories, we directly employ more than 400 people today.



Since you first came to Tanzania in 2004, Kamal Group has successfully branched into several other industries ranging from mining, industrial, medical gases, and other construction related industries. What are some other promising subsectors you see Kamal expanding into?

In Tanzania, the major challenge is power. Without power no industry can run. The power must be constant and reliable. Most industries need 24 hour power to perform without issues arising, from cement factories to glass factories to steel factories. We cannot have a disturbance in the power. One breakdown can create big losses. That is a very important and challenging factor in Tanzania. In 2013, we developed our industrial park and that was quite a challenge for us. We talked with the government and told them we needed this power and they told me to see this challenge as an opportunity. I met with the people of TANESCO who also appreciated the opportunity this challenge posed, and we decided to build a 225-megawatt power project and establish an industrial park. We have done a lot of work already with documenting, gas supply agreements and negotiations, locations of the gas, as well as an extensive environmental impact assessment. We are now in the final stages.

Because of the size of the power project in Tanzania as a whole, we decided to sell back some of the power to TANESCO, which we will then buy back. So my production facilities will have continuous, good quality power. This is all because an investor from Dubai bought the land for the Siemens Plant, another investor bought the land for a medicine factory, and we also have automobile investors from India showing keen interest to start industry over here.
Because our background is in the industrial sector in India, it was easy for us to convince the investors because we already have a success story in Tanzania.

I am promoting the industry here, but I cannot do it all. I am promoting Tanzania as an investment destination. I am the Chairman of the Indian Business Forum and we are also a part of the Industrial Association in India. We have held a lot of meetings and seminars in India, Singapore, China, and Dubai to attract more investors to come here and invest in Tanzania. It is one of the best destinations for investment and we are proof of that.

So you have personally been banging the drum for Tanzania?

It helps with the GDP growth. If these people come and construct buildings or houses or factories tomorrow, they will need steel. Therefore it is mutual growth for everyone, and we as Kamal Steel benefit directly from that trend. That is why we are promoting Tanzania. We are getting investors from the United States because they believe in us as businessmen. We are not bothered by inviting competition. Let the investment come. That is more important than worries about competition.

The company has also launched its own private Export Processing Zone or EPZ. More generally, the government has placed a specific policy priority to focus on industrialization and boosting manufacturing productivity and so forth, obviously in a bid to attract investment into all of those sectors. The government also intends to expand and establish several more Special Economic Zones. Do you hope these will open the door to investors who will potentially make similar contributions to the private sectors in Tanzania?

I am always thinking about how to promote the country and bring in more industry. We organize a lot of seminars and we particularly talk on the ground level. TIC people and investors want to visit your industry because if people see, then they can do much better. I have followed our Excellency, the Honorable President Doctor John Magufuli, since the elections last October. From the first day, his focus was on industrialization and bringing in more industry. If the President is talking about industrialization and understands the core points, that is very good news for the investor. He supports all industrializations and he understands that only industrialization can bring change and create employment.
When the Indian Prime Minister was here, he talked about how to bring more industrial investment from India, because India is also an industrial country. Kamal Steel is lucky in that we are already here. It is a very good opportunity for us. In 2010, we developed the first industrial park . The whole country had no specified industrial area. I decided to develop the industrial park for heavy industries and we had to travel 32 kilometers from the city center. My dream has come true because my President wants the same thing that we have already implemented.

Do you have Tanzanian citizenship?

Not in law. I am an Indian passport holder. But my younger brother, Sameer, is a Tanzanian now. So our interest is here. We are here for the long term.

Regionally, you have a dealer network which already encompasses many countries in the area, such as Zambia, Burundi, Congo, Kenya, Malawi, and so on. Do you intend to continue to deepen your footprint across the African continent at large?

No. My work style is different. We are making a footprint in Zambia, Rwanda, Burundi and neighboring countries also, but I want to fulfil the demand of Tanzania first and foremost. My full focus is on Tanzania and identifying where there are weaknesses, in the power sectors, the steel sector. Expanding our business is a different issue. Tanzania is a very big market. You can put a footprint anywhere and open an office. I do not want that. I want to focus on one place and make it strong so I can be part of the growth of Tanzania. We are participating in terms of the revenue and taxes and we are doing good work in the country.

How much satisfaction do you take personally in being a member of the Tanzanian business community and being able now to actively contribute towards its overall social economic development?

There are challenges. Yet it is also true that if there is a challenge, then there is a profit to be made. We have to face the challenges. My father always told the story of industrialization in India in the 1960s and 70s which were a very difficult time. He taught me to not be worried about challenges, but to fight them. In my personal view of Tanzania, I never feel away from home, here. I never feel scared. People are very humble and very supportive.

They are extremely respectful. I am from India and this is my first-choice destination. So I have a great respect for this country and this country has also given me a lot in terms of my growth and my respect. We are also doing whatever we can do on a social level and through social corporate responsibility. We have adopted two schools. For many years we have fed 1,600 children every day. We are giving lunch every day to these children so they will come to school and study. The parents are also happy.

By 2020, we want to feed at least 10,000 children. We can adopt more schools because food and education are both related.

For now we are focusing on steel and power. We have the refinery already established and other projects are in progress. We are working very hard in the agriculture sector. We are focusing on different sectors to find what can benefit the country, the weaknesses, and where we can make a bridge between India and Tanzania. India is also importing a lot of crops and everyday staple foods from Tanzania. We are talking with the government and different organizations in India to make a better bridge so that Tanzanian farmers can benefit from good regulations and fair prices in the future and really benefit from the market. They need this. The Indian Business Forum is inviting the big farmers and introducing them straight to the Indian buyers so they can export directly and get a good price, which will then allow them to grow more.

As I am here in Tanzania, it is my duty to pass on that opportunity to the Tanzanian people.

Leading steel manufacturer in Tanzania talks about business and economy

Leading steel manufacturer in Tanzania talks about business and economy in an exclusive interview. View more about the major steel producing company in Tanzania.

marcopolis.net

who are you trying to scare with a humongous excerpt.lol

You don't even understand the steel industry.do you even understand the difference between primary steel making and re moulding/bar.

 

[Just ails]

Open a steel thread and I will school you.

And stop lying about transit fees.

 

[Geza Ulole]

 

[Geza Ulole]

Ready to take part in EACOP....

 

[Geza Ulole]

Regional Pipeline Deal Signed By Uganda and Tanzania​

Mon, 04/19/2021 - 14:12

Posted in:

• PIPELINE BUSINESS

Flag of Tanzania and the national flag of Uganda (copyright by Shutterstock/esfera)

It is some 15 years since commercial sized crude oil deposits were discovered in Uganda near Lake Albert. During Sunday 11 April 2021, in Uganda’s state capital Kampala, Yoweri Museveni , President Samia Suluhu of Tanzania, and Patrick Pouyanne chief executive of the French oil company Total signed off on the East African Crude Oil Pipeline (EACOP).

This 1,445-kilometre heated crude oil export pipeline, the longest of its kind in the world will link Uganda’s Lake Albert oil fields to Tanzania’s Indian Ocean port of Tanga. The pipeline starts in Hoima in the Albertine Graben western Uganda and terminates at Tanga Port in Tanzania. The pipeline is expected to carry some 216,000 barrels of waxy Ugandan oil crude oil per day and could unlock up to $15 billion in investment.

The day marked the first official foreign trip of Samia Soluhu as President since she replaced John Magufuli in March 2021. The previous Tanzanian President was a keen backer of the $3.5 billion East African Crude Oil Pipeline (Eacop).

Tanzania will earn at least $12.70, from every oil barrel transported through the pipeline.

Regional Pipeline Deal Signed By Uganda and Tanzania | Pipeline Technology Journal

It is some 15 years since commercial sized crude oil deposits were discovered in Uganda near Lake Albert. During Sunday 11 April 2021, in Uganda’s state capital Kampala, Yoweri Museveni , President Samia Suluhu of Tanzania, and Patrick Pouyanne chief executive of the French oil company Total...

www.pipeline-journal.net

 

[Geza Ulole]

REGIONAL REPORT​

Uhuru pursues Suluhu: Why Kenya is dying for a new chapter with Tanzania​

Presidents Yoweri Museveni and Hassan witnessed the signing of the East African Crude Oil Pipeline project agreement​

In Summary
• On Saturday, through a message, Uhuru assured President Hassan that Kenya is ready to cooperate with Tanzania and extended an invitation to her to Kenya.
• The following day, Hassan was in Uganda for a one-day visit; it was her first international trip as president.

by ELIUD KIBII
Subeditor and writer
Siasa
18 April 2021 - 05:00

Tanzania President Samia Suluhu Hassan speaks with the media after talks with Kenyan special envoy Amina Mohamed (Sports CS) at State House, Dar es Salaam, on April 10, 2021.
Image: STATE HOUSE DAR ES SALAM

President Uhuru Kenyatta last Saturday dispatched Ambassador Amina Mohamed to Dar es Salam to deliver a message to his counterpart Samia Suluhu Hassan just a day before she flew to Kampala.

During the visit, Sports CS Amina and President Hassan discussed the intent to enhance relations between Tanzania and Kenya, which have been hostile in recent years.

A statement by State House Dar es Salam director of communications said President Hassan assured Uhuru of her readiness to continue the good things that were underway during her predecessor John Magufuli’s administration.

She said they will solve challenges between Kenya and Tanzania because the two East African Community states are siblings and historical friends.

In this regard, President Suhulu called on ministers and experts from the two states establishing the Joint Permanent Commission, who have not met since 2016, to immediately meet and find ways of improving the ties.

“There are many other issues we will engage diplomatically through diplomatic channels to improve our relations. The message was that Kenya is ready to enhance our ties and work with us,” President Hassan told the media after the meeting.

Uhuru assured Hassan that Kenya is ready to cooperate with Tanzania and extended an invitation to President Hassan to Kenya.

Rais wa Jamhuri ya Muungano wa Tanzania, Mhe. Samia Suluhu Hassan leo 10 Aprili, 2021 amekutana na Mjumbe Maalum wa Rais wa Jamhuri ya Kenya Mhe. Uhuru Muigai Kenyatta Ikulu Jijini Dar es Salaam. pic.twitter.com/B5i6oBahtf
— ikulu_Tanzania (@ikulumawasliano) April 10, 2021

The following day, Hassan was in Uganda for a one-day visit. It was her first international trip as president.

Presidents Yoweri Museveni and Hassan witnessed the signing of the East African Crude Oil Pipeline project agreement, paving the way for the construction of a 1,440km crude oil pipeline from Uganda's Albertine region to Tanzanian seaport of Tanga.

The signing was set for March 22 but was postponed following the death of Magufuli.

Hassan assured Museveni that her government will continue enhancing their relations, including seeking new areas of cooperation. Museveni, for his part, termed the signing of the deal as "the third victory for Uganda and Tanzania".

The pipeline deal effectively means Kenya's plans to jointly set up an oil pipeline with Uganda have gone up in smoke.

In 2014, Kenya, Uganda and South Sudan had agreed to set up the Uganda–Kenya Crude Oil Pipeline with South Sudan joining the project at its Unity State as an alternative to its only current oil export route through Port Sudan. In 2015, however, Uganda opted to partner with Tanzania, saying it was cheaper.

Museveni said the decision to opt for the Tanzania route was based on economic benefits and acknowledgment of Dar's role in the removal of Idd Amin and as well as proof of friendly cooperation.

Why the bid to reach out to Tanzania under Hassan's administration?

Speaking in Dodoma during the state funeral service for Magufuli, President Hassan promised to enhance Tanzania's ties with regional states.

“We will enhance and promote our relations with our neighbours. Tanzania will continue to be a good neighbour and an important ally in regional and international cooperation. Our ties will continue to be good and even get better under my leadership,” she said.

Unlike Magufuli, who was inward looking, Hassan appears ready to reach out. She is not new to regional or international diplomacy, having been delegated the function of representing Tanzania in most UN, AU, SADC and EAC meetings.

Hassan tasked newly appointed Foreign Affairs Minister Liberata Mulamula to improve Tanzania’s relations with the region and the international community.
“We don’t want to go alone,” she told Mulamula during her swearing-in.

However, African Affairs Editor at China Global Television Network Douglas Okwatch says Hassan's policy is one of continuity rather than a shift.

He said the two countries share a history, where Tanzania has played an interventionist role in Uganda's political affairs in times of crisis.

"I think Kenya, its regional economic prowess—which elevates its leader as the region's leader—serves to repel Uganda as this clashes with Museveni's own regional power interests. In Kenya, therefore, Museveni may be happier playing political spoiler," Okwatch said.

International relations lecturer Dr Kigen Morumbasi told the Star that as an anchor state, it is in the interest of Kenya to have cordial and beneficial ties with its neighbours.

"The recent meeting between the Uganda and Tanzania heads of state was expected due to the progress that had been achieved by President Museveni of Uganda and former Tanzania President Magufuli," Dr Kigen said on Thursday.

He teaches at Strathmore University and is a visiting lecturer at the Rwanda Defence Force Command and Staff College. He is also chairman of the International Relations Society of Kenya.

Noting that the Tanzania-Uganda meeting was set earlier, Dr Kigen said for Uganda, it was formalisation of earlier resolutions while for Kenya, it was to signify goodwill for cooperation with President Hassan.

On the implication of the Uganda-Tanzania deal on the region, Kigen noted that it will likely bring in new state and non-state actors.

"The planned oil pipeline will provide alternatives for other countries in the region such as South Sudan and DR Congo. This is ushering and era of sea port diplomacy in the East Africa region, with Tanzania and Kenya emerging as strategic countries," he said.

"At the regional level, Kenya has also established an agreement with Ethiopia on the Eastern Electricity Highway".

Uhuru pursues Suluhu: Why Kenya is dying for a new chapter with Tanzania

President Hassan has promised to enhance Tanzania's ties with the EAC region states

www.the-star.co.ke

MY TAKE
It is good to see that Kenyan technocrats r waking up to a reality South Sudan and DRC ilfields r to join EACOP! However they wake up too late from their slumber moody..

 

[Geza Ulole]

 

[Geza Ulole]