In our latest East Africa update, Michael Strain, James Pius and Amreen Ayub highlight some of the key recent developments investors should be aware off, including the development of power projects in Tanzania, investment opportunities in Kenya, top sectors to watch in Rwanda and much more.
Key recent developments in East Africa:
Tanzania
Tanzania turns focus to oil and mineral exploration
Oil exploration
The Government of Tanzania has issued a seven-month target to petroleum authorities in the country to complete oil explorations and embark on drilling and production as it seeks to widen sources of revenue. The Tanzania Petroleum Development Corporation announced in late 2019 that it was investing TZS 2 billion into drilling three oil wells with 300 metres-depth each as part of the project.
The oil exploration project aims to commercialise oil discovery, which will give Tanzania an upper hand in terms of the amount of profit accrued from present and future projects.
Mineral exploration
The Government of Tanzania and British company Kabanga Nickel Ltd (Kabanga) have executed a binding framework agreement for the development of the Kabanga Nickel Project by forming a new joint venture to be known as Tembo Nickel Corporation Limited (Tembo). Tembo will create two subsidiary companies: Tembo Nickel Mining Company Limited, which will be responsible for the mining activities; and Tembo Nickel Refining Company Limited, which will build a value-addition facility and smelter in Kahama region.
The agreement is important as it will help Tanzania and Kabanga to develop the world’s largest development-ready battery grade nickel sulphide deposit and the economic benefits of the project will be shared on a 50/50 basis between the mining company and the Government.
European Union boosts Dar es Salaam power projects
Tanzania has received a grant of TZS 84 billion (approximately USD 36.2 million) from the European Union through the French Development Agency (the FDA) to finance the construction of an electric transmission line between Tanzania and Zambia.
According to the Permanent Secretary of the Ministry of Finance and Planning, Dotto James, the grant will be spent on building a power station in Tunduma and the construction of a 4km transmission line for 330 KV from Tunduma to the border with Zambia. The move is expected to increase the availability of reliable electricity and boost production in rural areas, particularly in the Southwest of the country where there is a high level of poverty.
The Resident Director of the FDA, Ms Stephanie Essombe, stated that the FDA had also signed a soft loan agreement worth TZS 280 billion (approximately USD 120.8 million) for the construction of the Tanzania-Zambia electric transmission line. Ms Essombe further stated that the project was the final part of implementing a corridor project that links Ethiopia, Kenya, Tanzania and Zambia which is meant to reduce costs of electricity and boost the economies of these countries.
Tanzania turns focus to oil and mineral exploration
Oil exploration
The Government of Tanzania has issued a seven-month target to petroleum authorities in the country to complete oil explorations and embark on drilling and production as it seeks to widen sources of revenue. The Tanzania Petroleum Development Corporation announced in late 2019 that it was investing TZS 2 billion into drilling three oil wells with 300 metres-depth each as part of the project.
The oil exploration project aims to commercialise oil discovery, which will give Tanzania an upper hand in terms of the amount of profit accrued from present and future projects.
Mineral exploration
The Government of Tanzania and British company Kabanga Nickel Ltd (Kabanga) have executed a binding framework agreement for the development of the Kabanga Nickel Project by forming a new joint venture to be known as Tembo Nickel Corporation Limited (Tembo). Tembo will create two subsidiary companies: Tembo Nickel Mining Company Limited, which will be responsible for the mining activities; and Tembo Nickel Refining Company Limited, which will build a value-addition facility and smelter in Kahama region.
The agreement is important as it will help Tanzania and Kabanga to develop the world’s largest development-ready battery grade nickel sulphide deposit and the economic benefits of the project will be shared on a 50/50 basis between the mining company and the Government.
European Union boosts Dar es Salaam power projects
Tanzania has received a grant of TZS 84 billion (approximately USD 36.2 million) from the European Union through the French Development Agency (the FDA) to finance the construction of an electric transmission line between Tanzania and Zambia.
According to the Permanent Secretary of the Ministry of Finance and Planning, Dotto James, the grant will be spent on building a power station in Tunduma and the construction of a 4km transmission line for 330 KV from Tunduma to the border with Zambia. The move is expected to increase the availability of reliable electricity and boost production in rural areas, particularly in the Southwest of the country where there is a high level of poverty.
The Resident Director of the FDA, Ms Stephanie Essombe, stated that the FDA had also signed a soft loan agreement worth TZS 280 billion (approximately USD 120.8 million) for the construction of the Tanzania-Zambia electric transmission line. Ms Essombe further stated that the project was the final part of implementing a corridor project that links Ethiopia, Kenya, Tanzania and Zambia which is meant to reduce costs of electricity and boost the economies of these countries.
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