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Showing posts with label Tanzania Today. Show all posts
Showing posts with label Tanzania Today. Show all posts

Wednesday, January 18, 2017

Tanzania Transport Sector Record 12.2% Growth in Q3 2016



Tanzania’s transport sector grew at a rate of 12.2% in Q3 2016 reaching TZS865b at constant prices, compared to TZS771b in Q3 2015 and a growth rate of 6.7%.

 The results were included in a report recently issued by the Tanzanian National Bureau of Statistics (NBS), covering the country’s GDP performances for Q3 2016.

 NBS attributes the growth to a rise in the number of passengers and cargo transported by road and rail, as well as increased transportation of natural gas via pipelines.

 The report indicates that natural gas transported via pipelines in Tanzania rose by 32.4%, from 8,353m standard cubic feet (MMSCF) in Q3 2015 to 11,060 MMSCF in Q3 2016. 

This follows the inauguration of the 532km long Mtwara-Dar es Salaam natural gas pipeline in October 2015, which has a capacity to transport up to 210m cubic feet per day (MMCFD). Furthermore, the number of rail passengers in Tanzania increased by more than 400%, from 230,000 in Q3 2015 to 1.2m in Q3 2016. 

Tanzania’s rail freight rose by 31%, from 75,000t in Q3 2015 to 98,000t in Q3 2016.




Lindi to Produce Up to 40,000 Tons Graphite Concentrate per Year



Australia-based mineral exploration company Walkabout Resources (ASX:WKT) estimates that the annual production target of its Lindi Jumbo Graphite Project in southeastern Tanzania is between 25,000t and 40,000t of graphite concentrate.

 The projection is based on the results of a recently conducted scoping study for a proposed open pit mine and graphite processing plant at the Lindi project.

The study shows that the mine production rate is between 150,000t per annum for the 25,000 option and 250,000t for the 40,000 option.
 The operating cost per ton in concentrate is estimated at USD290 to USD350, which is the second lowest amongst peer group and lowest in Tanzania.

Moreover, the study indicates that the project is economically viable even at current “10 year low” prices. Walkabout Resources is currently in discussion with various parties regarding potential off-take deals or funding opportunities for the project.

“The Company believes that the highly robust economics, relative efficient capital intensity, premium products produced, and project size and approach will all facilitate successful fund raising for the project,” Walkabout notes.

 Lindi Graphite Project The Lindi Jumbo Graphite Project is located in the emerging graphite province in southeastern Tanzania approximately 75km to the west of the coastal town of Lindi.

 In 2015, Walkabout entered into a Memorandum of Understanding (MoU) for a staged purchase of 70% of four prospecting licenses (PL’s 9992/2014, 9993/2014, 9994/2014 and 9906/2014) totaling 325km2.

 Currently, the company holds 70% of four licenses at Lindi Jumbo with an option to acquire the remaining 30% share (currently owned by joint venture partners).

n December 2016, Walkabout announced that the Lindi high grade mineral resource increased from 11.7m tons to 29.6m tons (+165%), containing 3.25m tons of graphite. In October 2016, the company announced that it will focus on expandable and battery markets following the first set of tests on the Lindi graphite conducted by an independent German laboratory, NGS Trading and Consulting.




Monday, January 16, 2017

Tanzania GDP Growth Slows to 6.2% in Q3 2016



Tanzania’s GDP grew at a rate of 6.2% in Q3 2016 reaching TZS11.6tn at constant prices, compared to TZS10.8tn and a growth rate of 7.3% in Q3 2015.

The results were included in a report recently issued by the Tanzanian National Bureau of Statistics (NBS), covering the country’s GDP performances Q3 2016 GDP.

 NBS notes that in Q3 2016, the mining and quarrying sector recorded the highest growth rate of 19.9%, followed by water supply (14.5%), and information and communication (14.3%).

 The overall GDP growth rate was also attributed by significant increase in transport and storage (12.2%), generation of electricity (11.8%), and financial and insurance services (8.8%).

However, agriculture and real estate recorded lower growth rates of 0.3% and 2.3% respectively. GDP Growth in East Africa In the East Africa Region, the economic performance observed during Q3 2016 shows that, Kenya’s economy expanded at a rate of 5.7% compared to 6% in Q3 2015.

Rwanda’s GDP grew at a rate of 5.2% in Q3 2016 compared to 5.9% in the corresponding quarter of 2015.

 Uganda’s economy grew at a rate of negative 0.2% in Q3 2016, compared to a growth rate of 1% in Q3 2015.

 Tanzania GDP Tanzania’s annual GDP growth rate averaged 7% over the past 5 years, making it one of the 20 fastest growing economies in the world and beating the Sub-Saharan Africa average GDP growth rate of 4.4% during the same period.

The Bank of Tanzania (BOT) forecasts in its latest State of the Economy report from September 2016, that in 2016 the country will achieve its goal of 7.2% annual GDP growth thanks to favorable economic activity.



According to the International Monetary Fund (IMF) the economy of Tanzania will grow by 7.2% in 2016 and by 7.1% in 2017, while the World Bank (WB) estimates for the same period are 6.8% and 7%. During the same period the WB estimates that the Sub-Saharan region’s GDP is projected to grow by 4% in 2016, and 5.1% in 2017. The WB notes that in the coming years, Tanzania’s economic growth will be driven by hospitality, construction, finance, and trade.

Read more at: http://www.tanzaniainvest.com/economy/gdp-growth-q3-2016 and follow us on www.twitter.com/tanzaniainvest 

Thursday, January 12, 2017

Tanzania Face Downside Macroeconomic Risks, IMF Warn


The fifth review of the International Monetary Fund (IMF) program in Tanzania indicates that the country faces downside macroeconomic risks that could adversely affect its economic growth.

These risks include the currently tight stance of macroeconomic policies, the slow pace of credit growth, slow implementation of public investment, and private sector uncertainty about the government’s new economic strategies.

 The conclusion was made by the Executive Board of the IMF after they completed the fifth review of Tanzania’s macroeconomic performance under the Policy Support Instrument (PSI), on January 9th, 2016.

The PSI helps low-income countries to design effective economic plans that once approved by the IMF, are addressed to international donors, multilateral development banks, and foreign markets.


Despite the risks, the IMF notes that Tanzania’s macroeconomic performances remain strong. “Economic growth was robust during the first half of 2016 and is projected to remain at about 7% this fiscal year. Inflation came down below the authorities’ target of 5% and is expected to remain close to the target […],” the IMF indicates.

The IMF also states that the authorities of Tanzania have recently stepped up efforts to advance structural reforms identified under the IMF program.

 These include measures taken to strengthen public financial and debt management, modernize the monetary policy framework, and improve monitoring of parastatal enterprises.

 “The current tight macroeconomic conditions should be addressed by loosening the short-term policy stance, in line with program targets.
 After recording a small fiscal surplus in July-September, the government is committed to stepping up budget implementation, particularly in public investment, including by mobilizing external financing. Monetary policy should be eased to address the tight liquidity situation and support credit to the private sector,” the IMF advises.

The IMF further notes that the strong drive against corruption and tax evasion has led to higher fiscal revenues, which, if sustained, will provide a good foundation for the envisaged scaling up of infrastructure investment, starting with the 2016/17 budget. The IMF concludes that full involvement of all stakeholders in policy design and implementation, including importantly the private sector, will be crucial.



Tanzania Macroeconomic Performances

Tanzania’s GDP grew by 7% in 2015, with activity particularly strong in the construction, communication, finance, and transportation sectors. 

Inflation in Tanzania remained in single digits throughout 2015, averaging 5.6%, close to the authorities’ target of 5%. 

In September 2016, the country’s annual inflation rate fell to 4.5%. Bhaswar Mukhopadhyay, Resident Representative of the IMF in Tanzania, said in a recent interview with TanzaniaInvest: “Tanzania does not need financial assistance for maintaining macroeconomic stability. The country is not facing pressures on its balance of payments and its debt is at safe levels. 

Inflation is low, and the exchange rate has stabilized after a depreciation in 2015. Overall, these broad indicators of macroeconomic stability show that Tanzania is on the right track.”

Read more at: http://www.tanzaniainvest.com/economy/macroeconomic-risks-imf-review and follow us on www.twitter.com/tanzaniainvest



Monday, December 26, 2016

UAE and Tanzania to Cooperate in Tourism Development



The United Arab Emirates (UAE) and Tanzania have signed an air transport agreement and a Memorandum of Understanding (MoU) for enhanced cooperation in tourism development.

 An air transport agreement is an agreement which two nations sign to allow international commercial air transport services between their territories.
The agreements were signed at the first ministerial meeting of the UAE-Tanzania joint higher committee in Abu Dhabi on December 20th, 2016.
 At the meeting, the two countries also recognized the importance of concluding negotiations regarding the agreement on promotion and protection of investment and the agreement on avoidance of double taxation on income.
”Barriers that hinder free flow of investment between the two trading partners should be removed,” said Al Hashemi, Minister of State for International Cooperation of the UAE. She also explained that the private sector can play an important role in boosting bilateral ties in areas of trade and investment if provided and empowered with adequate means to achieve that.

 Al Hashemi called on both countries to explore business and investment opportunities in vital areas of priority like agriculture, infrastructure, energy and tourism.

 ”The meeting underscores our resolve to build a strategic partnership that does not only contribute towards deepening the bilateral ties based on shared values and visions, but also enables the two countries to advance efforts aimed at realising peace, security and stability in our two regions and beyond,” Augustine Mahiga, Minister of Foreign Affairs and East African Cooperation of Tanzania, said addressing the meeting.

He said he was glad to be in Abu Dhabi and termed the first ministerial meeting of the joint higher committee as ‘ historic’ as it would contribute to further solidifying bilateral relations and co-operation.

UAE Tanzania Relations ​From 2003 to 2016, UAE’s direct accumulative investment in the Tanzania rose to USD991.5m. The trade balance between UAE and Tanzania stands at around USD2b annually.

Tanzania imports mainly refined petroleum products from the UAE, while the UAE is the largest buyer of cloves from Tanzania.

 ”Despite the slight decline of 8.8% in non-oil trade exchange between the two countries from USD1.58b in 2014 to USD1.45b in 2015, Tanzania, occupies the 41st rank in the list of UAE’s non-oil trading partners,” Minister Al Hashemi noted.




Sunday, December 25, 2016

Gas Drilling Commence in Ruvuma Basin


Oil exploration and production company Aminex (LON:AEX) announced that gas drilling at the Ntorya-2 appraisal well in the Ruvuma basin in onshore southern Tanzania recenlty commenced.
The Ntorya-2 well is planned to be drilled to an estimated total depth of 2,860 meters and is targeting the same sandstone channel complex as found at Ntorya-1, but located further up-dip.

The Ntorya-2 appraisal well is located approximately 1,500 meters southwest of the Ntorya-1 discovery well, which flow tested at 20 million cubic feet per day of gas (mmscfd).

Aminex has a 75% operated interest in the well, while the remaining 25% are held by oil and gas investment company Solo Oil (LON:SOLO). Neil Ritson, Solo’s Chairman, commented: “Solo is especially excited that the spud of the Ntorya appraisal well is now imminent since this well has significant upside potential for Solo’s asset holdings in Tanzania.

”’ Tanzania Natural Gas Tanzania has the second largest natural gas reserves in East Africa with more than 57 trillion cubic feet (tcf) so far discovered, behind Mozambique with 100 tcf according to the Energy Information Administration (EIA). The Tanzania Petroleum Development Corporation (TPDC) estimates that the country’s gas fields are large enough to make Tanzania the next natural gas hub in Africa.

UK Based Telecom Expand in Tanzania


UK-based data, voice and IP provider for Africa, Liquid Telecom, is set to expand in Tanzania through the acquisition of Raha, the country’s leading internet service provider.

 Liquid Telecom recently announced that it has received the final regulatory approval to become the majority stakeholder of Raha.

 The Tanzania Communications Regulatory Authority (TCRA) approved the agreement on December 8th, 2016.

Following the acquisition, Tanzania will become the latest market to be added to Liquid Telecom’s extensive fibre network, which is the largest of its kind serving eastern, central and southern Africa, spanning over 40,000km across 12 countries. “We are very pleased to announce that this transaction has received its final approval.

The agreement enables Liquid Telecom to expand its footprint into Tanzania, a growing and dynamic African country,” said Nic Rudnick, CEO of Liquid Telecom.

 “We are thrilled with this approval and look forward to being part of a pan-African connectivity movement,” said Aashiq Shariff, CEO of Raha.

 Raha today serves over 1500 businesses as well as a growing number of retail customers with a range of connectivity solutions, including fibre, satellite, WiMAX and Wi-Fi.

Liquid Telecom has operating companies in the UK and across Africa in Botswana, the DRC, Kenya, Lesotho, Rwanda, South Africa, Uganda and Zambia, and Zimbabwe.

Liquid Telecom is currently working on a new submarine cable set to run along the East African coast and into the Red Sea. The new fibre-optic cable will help boost internet speed and mobile communication in Tanzania.

Tanzania Internet Internet services’ users in Tanzania reached 17.3m in 2015 (34% of total population), compared to only 5.3m (12% of total population) in 2011.

 The number of mobile wireless users also increased significantly during 2011–2015, from 3.7m to 16.2m, accounting for more than 90% of the total number of internet users.

The most common broadband service in Tanzania is given through 2G connections, which offers a speed of up to 0.3 Mbps and is used by 85% of the mobile subscribers in Tanzania. Currently (2016), 3G and 4G services with speeds of up to 8Mbps are being used by 2.53m mobile subscribers across the country.

Tuesday, December 20, 2016

Sweden Grant USD5m to Tanzania to Boost Horticulture Production




The Development Corporation Division (DCD) of Sweden has approved USD5m grant to Tanzania to boost horticulture production.

The funds will be disbursed to the Tanzania Horticultural Association (TAHA) over a period of five years. The deal was signed by Ulf Källsting, Deputy Head of Mission at DCD, in Dar es Salaam on November 28th, 2016. Källsting said that the aim is to add value to horticulture production in Tanzania.

He also added that the funding is in line with Tanzania’s industrialization goals. Jacqueline Mkindi, CEO of TAHA, noted that the funding will help TAHA to develop the horticultural industry in Tanzania, particularly in the Mwanza Lake Zone.

Tanzania Horticulture The main horticultural crops of Tanzania include tomatoes, cabbages, onions, carrots, round potatoes, mangoes, oranges, and flower seeds, among others.

TAHA indicates that the horticultural industry in Tanzania largely depends on smallholder farmers, with export of fruits and vegetables alone being 70% dependent on farmers with land holding less than 2ha.

Tanzania Horticultural Association TAHA is an apex private sector member based organization that advocates for the growth and competitiveness of the horticultural industry in Tanzania.

TAHA safeguards the interest of the private sector and ensures the industry issues are well mainstreamed at the national and international agenda. Since its inception in 2004, TAHA has acted as a voicing platform for producers, traders, exporters and processors of the horticultural products.



Thursday, December 15, 2016

AfDB Approve USD74.9m for Mozambique-Tanzania Road Connection



The African Development Bank (AfDB) recently approved USD71.8m grant and USD3.1m loan to the Government of Mozambique to improve road connectivity with Tanzania.

The road segment Mueda – Negomano in Northern Mozambique represents a missing link on the transport corridor between Mozambique and Tanzania. AfDB will finance the paving of the road for phase I, which includes the construction of an asphalted 70km road section which starts at Negomano, located adjacent to the Ruvuma River, the natural frontier with Tanzania.

The section ends in the locality of Roma.

The improvement of the road will reduce from three to one hour the time to travel between the two localities. That first phase will be complemented by a second one, planned to start in 2019, which will connect Roma to Mueda and includes the construction of a one stop border post.

 “The project is key for traders and road users, who transport goods between Tanzania and Mozambique.

 Following the completion, they will benefit from more direct and shorter journeys to the ports of Pemba in Mozambique and Mtwara in Tanzania, effectively enhancing regional trade” said AfDB Chief Transport Engineer, Aymen Osmannn Wednesday 7 Ali. The new road will extend the paved road recently built in the Tanzanian side, financed by an AfDB project approved in 2012.

The project included the upgrading of the Dodoma-Babati road (188km) in central Tanzania and the Tunduru-Mangaka-Mtambaswala road (204km)in southern Tanzania, near the border with Mozambique. SHARE TWEET PIN SHARE




Friday, December 9, 2016

South Korea to Open Energy Center in Tanzania in 2017

The Government of South Korea plans to open a center for renewable energy technology in Arusha, Tanzania in 2017




. According to local media, the announcement was made by Juliana Pallangyo, Deputy Permanent Secretary in Tanzania’s Ministry of Energy and Minerals in Dar es Salaam on December 2nd, 2016.

 The center, aimed at energy development, will be situated at the Nelson Mandela African Institute of Science and Technology in Arusha.

In November 2016, Tanzania secured USD50m in concessional loans from the Government of South Korea the construction of power transmissions grids, which will be jointly developed with the African Development Bank (AfDB).

 The funds will be provided through the Korea Exim Bank’s Economic Cooperation Development Fund (EDCF), established by the Korean Government in 1987 to assist developing countries through the provision of long-term, low-interest credit. “More recently, there is an increasing demand for infrastructure development in sub-Saharan African countries thanks to the end of civil wars and stable governance.

It is also expected that the middle-income bracket will gradually grow larger. These factors combined are giving reason for Korean companies to look to Africa as a new land of opportunities,” Korea Exim Bank notes.


Moreover, the South Korean Embassy in Tanzania indicates that Tanzania has been selected as one of Korea’s priority partner countries for Official Development Assistance (ODA) starting 2016 “and as a result, the Embassy looks forward to enhanced mutual cooperation with Tanzania through tailored assistance.”


Monday, December 5, 2016

Tanzania and Zambia to Increase Strengthen Trade and Investment Relations


Tanzania and Zambia have agreed to cooperate for stronger trade and investment relations to benefit the economies of both countries.

 The assurance was given by both countries’ leaders during a recent visit of the Zambian President Edgar Lungu to Tanzania.

For this, Tanzania’s President John Magufuli and President Lungu signed agreements to revitalize the Tanzania Zambia Railway Authority (TAZARA) and the Tanzania Zambia Mafuta (TAZAMA) pipeline.

Magufuli said that TAZARA’s performance has been deteriorating and noted that the cargo volume has dropped from 5m t in 1976 to 128,000t in 2016, while TAZAMA has the capacity to transport 1.1m t of oil per annum but currently it is handling only 600,000t per year.

 In relation to TAZARA, the Presidents of Tanzania and Zambia agreed that the key issues arise from inefficient management.

 For this, they agreed to amend the law, which will therefore allow for recruitment of competent and knowledgeable people to manage TAZARA. President Lungu noted that in addition to reviving TAZAMA, Zambia expects to benefit from the recent gas discoveries in Tanzania.

 During his stay in Tanzania, President Lungu also visited the Tanzania Ports Authority (TPA) and committed to continue using the Dar es Salaam port; however, he advised Tanzania to further improve the cargo handling services at its port.

Magufuli noted that Zambia is one of the leading countries by cargo volume cleared through the Dar es Salaam port with 1.9m t in 2015 and pledged to continue strengthening the port.

Zambia is a landlocked country and most of its goods are exported and imported through the port of Dar es Salaam. Mainly vehicles and refined oil are transported from Dar es Salaam to Zambia and copper is transported from Zambia to the Tanzanian port.




AfDB Lend USD120m to Tanzania to Support Infrastructure and SMEs



The African Development Bank (AfDB) approved a USD120m Line of Credit (LOC) to Tanzania to finance infrastructure and Small and Medium Enterprise (SME) projects.

The LOC is allocated to CRDB, the largest commercial bank in Tanzania, which supports various sectors such as power, manufacturing, agriculture, and SMEs.

 AfDB and CRDB signed the loan agreement in Nairobi, Kenya on November 30th, 2016. By leveraging CRDB’s branch network and agents, the LOC will increase lending to SMEs and women enterprises in both urban and rural areas to create more jobs and to promote inclusive growth for Tanzania’s economy, the AfDB indicates.

 The LOC will also stimulate regional trade and promote regional integration through expanding capacity of the country’s port and airport, which in turn will stimulate tourism and government revenues.

Tonia Kandiero, AfDB’s Resident Representative in Tanzania, when in conversation with TanzaniaInvest, said: “With its geographical location, peace, and political stability, the commitment of Tanzania to regional integration will position the country as a very important player in the economy of Africa in the near future.

” Over the past 5 years, the focus of the AfDB in Tanzania has been mostly on infrastructure development and governance.

 The African Development Bank (AfDB) has recently approved the 2016–2020 concessional resource assistance package for Tanzania worth over USD1.1bn for infrastructure development and better governance.

The loan will be used mainly to fund infrastructure projects in the transport and energy sectors to promote domestic and regional transport connectivity while improving access to reliable, affordable and sustainable electricity.




Tanzania Purchase USD200m Bombardier Aircraft



The Government of Tanzania recently signed a USD200m purchase agreement with Canadian manufacturer Bombardier for two CS300 jetliners and one Q400 turboprop aircraft.

They will be used for commercial airline operations by Air Tanzania Company Limited (ATCL), the national carrier of Tanzania.

The Q400 aircraft will have an all-economy, 76-seat interior with two lavatories. The two CS300 airliners will be configured in a dual-class layout, and will be equipped with WiFi internet and in-flight entertainment.

 “The domestic market in Tanzania as well as the regional market are becoming more competitive as both business and leisure travel are steadily increasing,” said Leonard Chamuriho, Permanent Secretary at Tanzania’s Ministry of Works, Communications and Transport.

 “Therefore it is vital to operate aircraft that offer superb passenger comfort and amenities. Of course, high reliability, operational flexibility, as well as excellent fuel efficiency and economics are also necessary.

Both the Q400 and CS300 aircraft more than satisfy these parameters,” he added. In September 2016, Bombardier delivered two Q400 turboprop airliners to Tanzania following the purchase agreement signed in August 2016.

 “We are delighted that the Q400 aircraft which entered service with Air Tanzania earlier this year are proving their superior economics and versatility.

 The CS300 aircraft will allow Air Tanzania to expand both its domestic and regional markets, and it has the range to open new international destinations such as the Middle East and India at the lowest cost.

The C Series jet aircraft have the right attributes to develop these markets,” said Jean-Paul Boutibou, Vice President, Sales, Africa and the Middle East, Bombardier Commercial Aircraft. 

Air Tanzania ATCL is the flag carrier airline of Tanzania based in Dar es Salaam with its hub at Julius Nyerere International Airport (JNIA). It was established as Air Tanzania Corporation (ATC) in 1977 and wholly owned by the Tanzanian Government until 2002 when it was partially privatized.

 The Government therefore reduced its shareholding to 51% and entered into a partnership with South African Airways. The partnership ended in 2006 when the Government of Tanzania repurchased the shares and the airline became once again a wholly owned government company.




Tuesday, November 29, 2016

France AFD Approve USD12m Credit for Tanzania Renewable Energy


The French Development Agency (AFD) approved a USD12m credit line to the Bank of Africa – Tanzania (BOA-T) to finance renewable energy and energy efficiency projects in the country.

The credit facility agreement was signed by Bruno Deprince, AFD East Africa Community Regional Director and Ammishaddai Owusu-Amoah, Managing Director and CEO of BOA-T, on November 22nd, 2016.

 The credit line will enable BOA-T to provide both short-term and long-term funding at attractive interest rates to both public and private sector clients to implement renewable energy and energy efficiency projects.

 “The project will contribute to increasing energy efficiency and the share of renewable energy in the Tanzania economy, consequently contributing to reduction of CO2 emissions and the pressure placed on fossil fuels,” BOA-T and AFD joint press release indicates.

“The facility will thus help in facilitating Tanzanian entities and businesses to access affordable green technologies and to invest in rationalization of energy use, thus helping them to improve their efficiency and overall competitiveness as well develop clean energy.

” The credit line is also accompanied with a technical assistance program funded by the European Union (EU) to enable BOA-T to strengthen its capacities in green finance.

The technical assistance will also provide expertise for potential investors and project developers to further build on their expertise in developing viable renewable energy and energy efficiency investments.

This support covers the entire investment process and includes projects preparation, risk assessment, and bank capacity building.

The signed agreement falls under the Sustainable Use of Natural Resources and Energy Finance (SUNREF) East Africa program.

SUNREF East Africa Launched in 2011, SUNREF East Africa is promoting the development of a low carbon economy in the region (Tanzania, Uganda, Kenya) by financing the development of renewable energy and energy efficiency solutions.

 To support private investment in green energy and energy efficiency, AFD supports local banks in identifying green investment opportunities and in allocating green loans with favorable conditions for tailor-made debt.



Wednesday, November 23, 2016

Australian Company Granted License for Chilalo Graphite Project



The Tanzanian Ministry of Energy and Minerals recently granted a 10-year mining license to Australian resource company Graphex Mining (ASX:GPX) for the Chilalo graphite project in south-east Tanzania.

 The mining license has been granted for a period of 10 years and covers an area of 10sq. km (the Shimba graphite deposit at Chilalo).

 Phil Hoskins, Managing Director of Graphex, said: “Securing the mining license is a significant step towards our objective of commencing project development and commercial production at Chilalo.” He added: “We continue to make progress with our project partners regarding offtake and finance for the development of Chilalo and the receipt of the mining license, combined with the expected near-term conclusion of their technical due diligence, will allow these negotiations to move to a more advanced stage.

” Chilalo Graphite Project The Chilalo graphite project is located in south east Tanzania, within the Mozambique belt, which is well known for hosting some of the world’s highest grade and coarse flake graphite deposits.

Average annual production is expected to be 69,000t of graphite concentrate over 10 years. Graphex indicates that the Shimba deposit has a total resource (indicated and inferred) of 25.

1m t; however, after a recent drilling program, Graphex has identified a new mineralized zone 200–300 meters north of Shimba.

Accordingly, this will underpin an increase in the Shimba mineral resource estimate, which is expected to be announced in the near future, Graphex notes. Hoskins commented:

“We have still only scratched the surface on our tenements and I expect additional exploration to be carried out following the finalization of project offtake negotiations.

Given the number of untested targets, Chilalo has the potential to host one of the world’s largest graphite resources.”




EAC to Benefit from USD194m EAC-US Grant Agreement





The US will grant USD194m to the East African Community (EAC) to improve regional integration in the EAC member states, which include Tanzania, Burundi, Kenya, Rwanda, Uganda, and South Sudan.

The grant agreement was signed by representatives of the US Agency for International Development (USAID), on behalf of the US Government, and the EAC, at the EAC headquarters in Arusha, Tanzania on November 16th, 2016.

Under this agreement, the EAC and the United States will work together to: Advance regional economic integration. Increase trade and investment between member states and with the United States.

 Improve the sustainable management of natural resources in the Lake Victoria Basin and Mara River ecosystems.

Improve access to integrated health services in border areas. Strengthen the EAC’s organizational leadership.

 About USD30m of the total grant will fund institutional strengthening within the EAC Secretariat, while the remainder will support other development partners in their efforts to contribute to the EAC regional integration agenda.

 At the signing ceremony, Virginia Blaser, Chargé d’Affaires of the US Embassy to Tanzania and US Representative to the EAC, said that the US supports “governments and regional bodies such as the EAC in their collaborative efforts to unlock this region’s full potential for the benefit of its people.

” The agreement is also expected to strengthen the partnership between the USAID and the EAC. Liberat Mfumukeko, EAC Secretary General, said:
 “The partnership continues to expand and be strengthened through mutual development objectives and funding for programs such as trade and investment, biodiversity, climate change, agriculture, food security, water supply and sanitation, and institutional support.

” He also said that the grant deal would deepen integration, improve cross-border risk management and strengthen regional institutions leadership and learning.

He added that the grant would support harmonization of policies and standards, and scale up technologies and best practices in trade, investment, agriculture, energy, and environmental and natural resource management.

East African Community The EAC is an intergovernmental organization composed of 6 countries with total market size of 158m people, land area of 2.42m sq km and a combined GDP of USD169.5b. Tanzania is the largest country in the EAC and borders 4 of the EAC partner states: Burundi, Kenya, Rwanda and Uganda.




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