By Nicholas Bariyo
KAMPALA, Uganda--The country has issued a tender for the sale of its first crude oil as the East African nation moves closer to the commercialization of its vast crude reserves, the energy and minerals ministry said Monday.
The 40,000 barrels of crude are presently stored in specialized containers at four locations in block two, operated by U.K.-based Tullow Oil PLC (>> Tullow Oil plc), according to Ernest Rubondo, the head of the state oil body, Petroleum Exploration and Production Department.
"The crude oil was accumulated when carrying out testing of the different wells during appraisal of the respective oil and gas discoveries in the Albertine Graben," Mr. Rubondo said.
"Several industries in the country currently use imported heavy fuel oil for different activities in their industries and we expect that these are going to be among the potential bidders," he added.
The sale is the first since Uganda confirmed commercial oil reserves in 2006. Mr. Rubondo said that the quantities are quite small compared with the country's expected rate of 200,000 barrels-a-day of oil when its commercial output peaks.
The recent slump of global crude prices has raised concerns about the viability of Uganda's 6.5 billion barrels of crude reserves, which require some $15 billion to develop. But the country's chamber of petroleum remains optimistic that prices will recover to support the projects.
China's Cnooc Ltd. (>> CNOOC Ltd) is currently developing the $2 billion Kingfisher oil field, which is expected to start producing 40,000 barrels-a-day of crude by around 2018.
-Write to Nicholas Bariyo at [email protected]
but it is still flying still developing... and this being africa still holding on by the skin of its teeth..always figuratively looking over its shoulder waiting for the change poltical, policy or personal to the enviroment that will break it!
Posted in Business on February 25, 2015 by Online User
ESTHER MSETEKA, Lusaka
FASTJET Zambia, an airline intends to invest US$15 million in the initial stage of its operations in Zambia after an air service permit last year.
Airline chief executive officer Ed Winter said the resources will be channelled in buying aircraft spares parts, training of staff among other logistics needed to set up an airline base.
Mr Winter said during Fastjets’ celebrations of one year of flying Zambian skies that the airline is making progress in finalising the remaining legal processes before it can acquire formal approval to start its flights both domestic and international.
Currently, the airline flies from Tanzania’s Dar-es-Salaam to Lusaka and has not set up base yet.
“I believe that this investment will result in Zambia’s international airport being seen among the best airports in Africa both from an infrastructure and a service delivery viewpoint. Our engagements at all levels have been very positive.
“The team is now focused on submitting the remaining necessary document to complete the application process for an air operating certificate. Once the certificate is issued, this means that formal approval has been secured for flights to start [operating from within Zambia],”he said.
Mr Winter said the airline will continue introducing affordable air travel to enable local customers benefit.
The airline intends to introduce international routes between Lusaka and Johannesburg in South Africa, Nairobi in Kenya and Harare in Zimbabwe.
By Phil Davies |25 March 2015 at 08.44 GMT0 Comments
African budget carrier Fastjet has won the initial green light to start services in Zimbabwe.
The airline has been granted an air service permit, described as being a “significant” step towards obtaining an Air Operating Certificate from the country’s aviation authority.
Receiving the permit means that the Civil Aviation Authority of Zimbabwe and the Ministry of Transport have approved the business plan, aircraft choice and proposed structure of the planned airline as appropriate to operate and compliant with Zimbabwe regulations, Fastjet said.
The Tanzania-based airline plans to launch Fastjet Zimbabwe in due course.
Interim chairman and chief executive Ed Winter said: "We recognised the real potential in Zimbabwe some time ago and as such have been working with the authorities both to build Fastjet Zimbabwe and obtain permission to commence operations to various domestic and international destinations from the country.
“The granting of the air service permit demonstrates the ever-increasing reputation that Fastjet has built across the region and marks a significant step forward for our business."
He added that the carrier had identified many potential routes within and from Zimbabwe “where it believes that the low cost model will stimulate the market and tap into the huge market of passengers currently travelling by bus”.
“For example there are as many as 100 buses a day travelling the 1,100km between Harare and Johannesburg at fares up to $120 return,” Winter said.
Costa Rica deserves a huge round of applause, and perhaps even a high five, for managing to produce all of its electricity from renewables for 75 days straight. According to the state-owned Costa Rican Electricity Institute (ICE), the country hasn’t had to burn fossil fuels to supply the grid with electricity so far in 2015, a stretch that has never been previously attained by any nation. Of course, we don’t mean all of their energy has come from renewables as their vehicles, for example, still use fossil fuels, but what they have achieved is extremely laudable.
“The year 2015 has been one of electricity totally friendly to the environment for Costa Rica,” the ICE said in a statement last week.
As reported by Think Progress, the country’s clean streak is predominantly attributable to heavy rains experienced this year, which have kept four of the main hydroelectric power stations busy. In fact, these have been churning out so much energy that virtually all of 2015’s electricity demands have been met through these plants, according to Quartz. The remainder of the country’s grid requirements have been met through a combination of wind, solar, biomass and geothermal energy.
In Latin America, Costa Rica ranks second in terms of electricity service provision (behind Uruguay) with a household coverage rate of 99.4%. And thanks to this boon in renewables, citizens are shortly due a 12% drop in electricity rates this year and given the reserves so far accumulated, this downward trend is predicted to continue in the second quarter, Latin American Herald Tribunereports.
Costa Rica is determined to become carbon-neutral by 2021, which seems an achievable goal given that the country is currently meeting around 94% of its energy needs from renewables. Around 68% is sourced from hydroelectric power plants, followed by geothermal energy that contributes about 15%. This dedication to clean energy combined with the country’s broader environmental policies has meant that Costa Rica has been consistently ranked in the top five eco-friendly countries worldwide, according to The Telegraph.
Although what Costa Rica is achieving is something to aspire towards, it won’t be easy for many countries to follow in their footsteps. The tropical country is adorned with a string of active volcanoes that allow for geothermal projects, such as the $958 million endeavor approved last year. Costa Rica also experiences high rainfall and features a mountainous landscape, both of which are ideal for the generation of renewable energy. Furthermore, the country is able to invest substantial amounts into environmental issues due to the fact that it ditched its military back in 1948.
While Costa Rica’s dependence on renewables is commendable, it also has its drawbacks and leaves the country vulnerable to the effects of climate change. A drought, for example, would impede their ability to produce electricity from hydropower stations. Furthermore, hydroelectric dams can have negative effects on fish populations.
Costa Rica is, of course, not the only country dedicated to going green. The EU has set renewable energy goals for 2020, but Sweden, Bulgaria and Estonia managed to meet these eight years ahead of schedule. China is also investing a substantial amount in renewables, which has been proposed to be a key factor in the fact that CO2 emissions stalled last year. Bonaire, a small Caribbean island, also currently produces almost all of its energy from renewable sources.
Read this next: Scientists May Have Solved Origins Of Mysterious Feature In Venus' Atmosphere
more money raised and the value of my investment falls.... but this buisness model is sound and it function is an economic multiplier!
Travel Sunday, April 19, 2015 Fastjet raises $70m for African expansion
LONDON, UK - Low cost carrier, Fasjet, the parent of Fastjet Tanzania, recently raised just over $70 million to pay for further future expansion across sub-Saharan Africa writes JOHN SAMBO.According to reports here, investors snapped up the five billion shares on offer at one British pence each, resulting in the 50 million pound cash pile. OLd Mutual is a notable name that took part in the $73.8 million fundraising.With its hub at the Julius Nyerere International Airport in Dar es Salaam, Fastjet Tanzania operates several domestic and regional routes including Lusaka, Harare and Entebbe.Ed Winter, the Fastjet Chief Executive Officer said they want to set up operations in Kenya, South Africa, Uganda, Zambia and Zimbabwe. However, approvals for Nairobi flights is stilling pending a final decision by Kenya aviation top officials.He said in addition to Tanzania, the five countries account for about 20% of the total population of Africa. He told financial media here, “You’ve got 210 million people. If I could just capture say two and a half million people as my regular customers who flew with me twice a year, that’s 10 million seats. Ten million seats at $100 a seat, that’s $1billion turnover. “That’s enough seats to fill 34 aircraft flying flat out. That’s pretty well what our business plan through to the end of 2018,” he said.Sir Stelios Haji-Ioannou, the man behind setting up Fastjet invested $7 of his own money into the airline. He is also the founder of UK-based successful LCC, easyJetbeforee relinquising control several years back.Fastjet was founded when Rubicon Diversified Investments bought Fly540, which flew in Kenya, Ghana and Angola, from Lonhro in a reverse takeover in 2012. It then started its own operations at JNIK as Fastjet Tanzania and is gradually expanding into other African countries while Fly540 operations were either sold off or suspended.Fastjet sold loss-making Fly540 Kenya to a director of that airline for a nominal fee, and has suspended the remaining Fly540 operations out of Ghana and Angola.Meanwhile, Fastjet started expanding the operations by adding international flights out of Tanzania to its original domestic flights there. It also signed a partnership with Lusaka-based regional airline Proflight Zambia, enabling passengers to travel between the destinations offered by the carriers.When queried on their business plan, Winter said, “This is a positive and logical step in the implementation of our model of local investment and local finance for growth, and will aid in Fastjet Tanzania being granted additional rights under Bilateral Air Service Agreements with other African countries on the continent.” By John Sambo, Sunday, April 19th, 2015
AFRICA BUSINESS-Uganda's 'oil rush' town stuck in the slow lane
By REUTERS PUBLISHED: 10:00, 10 May 2015 | UPDATED: 10:00, 10 May 2015
By Elias Biryabarema HOIMA, Uganda, May 10 (Reuters) - Before the discovery of large amounts of oil in Lake Albert, Hoima was a forlorn and remote town in Western Uganda, whose main sources of income were farming and the trickle of tourists heading to nearby national parks. A decade later, an oil-fuelled boom is transforming the town nearest the lake, with smart new office blocks and hotels drawing scores of new businesses and people from engineers to prostitutes to bankers. But with the east African nation yet to pump a single drop of oil, this rapid development may be premature. Oil executives say production will start in 2018 at the earliest. "Everybody in the country and the region is looking at Hoima," said Betty Tibesigwa, manager of Rosaline Suites, a new hotel and office complex that is home to Chinese oil company CNOOC's operations in Uganda. "People from all over the world will be visiting Hoima," she told Reuters enthusiastically. "We're coming in to offer services at the standard one would expect of a town with such promising and booming business." CNOOC, Britain's Tullow Oil and France's Total are among companies exploring for oil beneath Lake Albert, a pristine body of water in the heart of the Rift Valley estimated to contain crude reserves of 6.5 billion barrels. The discovery of oil there about 10 years ago unleashed dreams of an economic windfall that would lift Uganda's 38 million people out of poverty but development has proceeded at a snail's pace, stymied by spats over planning and taxes. CRUDE DREAMS "Oil comes with its own hype. This investment seems to be way ahead of its time," says Stephen Kaboyo, managing director at Alpha Capital Partners, a leading Ugandan fund manager. "These investors won't find enough business activity to support them right away. We'll have idle capacity." Officials are now eyeing 2018 as the start of production, but Kaboyo believes this is still too optimistic, pointing to infrastructure delays such as a $4.5 billion, 1,300 km export pipeline to the Kenyan coast that has not yet been started. The tender to build a $2.5 billion domestic refinery was awarded only early this year, to Russia's RT-Global Resources, and construction is not expected to start before 2016. Government economists estimate that developing the oil fields will cost $15-22 billion, against $50 billion that Tullow says the country could earn from crude sales during the lifetime of the Lake Albert fields. Such sums are exciting investors around Hoima, where a new tarmac highway shimmers westwards through marshes and forests before plunging over an escarpment to the Albertine basin and the border with Democratic Republic of Congo. Alongside the road, warehouses are springing up in lush green fields, next to banks, motor showrooms, office blocks and shopping malls. Estate agents estimate land prices have gone up 50 percent in the last four years as speculators have snapped up plots. They anticipate huge demand from a population that has quadrupled since 2002 to 100,000, according to census data. "I see these two -- food and housing -- as the next growth hotspots in Hoima," said Ddembe Kawaga Setumba, 46, a grain and cereals dealer. EARLY BIRDS But the delays in oil production are pushing back the expected payday for investors who have banked on the arrival of oil men ready to splash out on everything from burgers and beer, fancy clothes and electronics, to schooling for their children. For 40-year-old Godfrey Muleke, who sells and services Renault and Mitsubishi trucks and water pumps and generators, business in the last two years has not been brisk. Since opening he has sold only 10 Renault trucks and has about 25 off-roader vehicles under management on both lease and rental arrangements. But he still believes he made the right choice by getting his foot in the door before anybody else. "Moving in now is good," Muleke told Reuters. "You invest less when you move in early. And you're given a bird's eye view of the scene." ($1 = 2,995 Ugandan shillings) (Editing by Ed Cropley and Catherine Evans)
the usual story of graft in there... Development needs clarity...
Tanzania to finalise land acquisition for LNG project
10 May 2015
Tanzania plans to spend 12 billion shillings ($6 million) in the next fiscal year to buy land for the planned construction of a liquefied natural gas (LNG) terminal, raising hopes it is speeding up progress of the long-delayed project. The two-train onshore LNG export terminal, which the government says could cost up to $30 billion, has run into delays mainly due to complex land acquisition procedures and an uncertain legal and regulatory framework.
Along with neighbouring Mozambique, Tanzania is in a race with Russia, Australia, the United States and Canada to build LNG export plants, aiming to exploit a gap in global supply that is expected to open up by 2020.
'The government has set aside 12 billion shillings in 2015/16 for assessment and compensation of 450 people ... where the (LNG) terminal will be built,' the government's planning commission said in a report seen by Reuters on Saturday. The 2015/2016 fiscal year starts on July 1, 2015.
The terminal would be built in the small southern town of Lindi, located close to an offshore deep-sea region where huge natural gas discoveries have been made.
Tanzania is estimated to have more than 53.2 trillion cubic feet (tcf) of gas reserves off its southern coast, but its energy sector has long been dogged by allegations of graft and other problems. Tanzania's parliament last year accused senior government officials of fraudulently authorising the transfer of at least $122 million of public funds to a private energy company. Three cabinet officials, including the energy minister, lost their jobs.Analysts said the graft accusations, coupled with delays in passing new gas legislation, are holding back the development of the sector.
British gas company BG Group, together with partners Statoil, Exxon Mobil and Ophir Energy, plans to build an LNG export terminal, expected to start operating in the early 2020s, but a final investment decision is only set for 2016. Royal Dutch Shell agreed to buy BG Group last month for $70 billion in the first large oil merger in more than a decade, giving the Anglo-Dutch company access to BG's multi-billion dollar projects in Tanzania.
BY PROF. WOLFGANG H. THOME, PH.D., ETN AFRICA CORRESPONDENT | MAY 17, 2015
Adv: News is filtering in from Nairobi that another Africa airline has had to stop flying. Kenya’s Southeast Airlines – The Spirit of Liberty - has finally faced up to reality and halted operations. The airline, which used a leased African Express Bombardier CRJ100 aircraft, and which according to the airline’s own launch advert was operated by African Express, found it, according to aviation pundits, more and more difficult to compete with the top dogs on the route, namely Kenya Airways and its LCC subsidiary, Jambojet, which among them are reportedly carrying over 85 percent of the traffic between Nairobi and Mombasa. Southeast had maintained its launch fares, which while by the look of it, appeared more expensive than Jambojet and included a meal on board as well as checked baggage. However, later bookings on Jambojet closer to departure closed the fare gap in favor of Southeast, and yet the airline was unable to carry viable numbers ensuring financial survival in the longer term. Suggestions by the company’s management that the aircraft size was to blame - the CRJ operated with a single class cabin of 50 seats - were immediately rubbished by other aviation sources, pointing out that even Fly540 was using the same aircraft type and threw the claims back into Southeast’s faces for only operating one flight a day when other competitors were operating multiple frequencies which allowed passengers a same-day return after doing their business in either Mombasa or Nairobi, avoiding the expense of an overnight trip. The same sources equally doubted assertions by Southeast’s management that they would return to the market later in the year or in early 2016 with one source in particular, on condition of anonymity, saying: “Jetlink tried to come back, and they did not. Jetlink was much better established and a known brand, and Southeast never made it into brand recognition status. That was one problem besides operating only one daily flight. Now should Fastjet be given a license to set up shop in Kenya, it will be a game of cat and mouse between KQ [Kenya Airways], Jambojet, and Fastjet, and even 540 will probably not stand the heat. However, I think the KCAA [Kenya Civil Aviation Authority] may use the excuse of Southeast’s failure to claim that there is overcapacity in the market and keep Fastjet out for the time being and then, of course, … fares [will] rise sooner or later. Either way, it is the consumers which will pay the price by having less choice and probably paying higher fares than they should. This is Kenya aviation for you!” True enough, single aircraft operators of this kind in Kenya, and elsewhere for that matter, do not exactly take the markets by storm, not over low fares nor over sufficient frequencies to make the market take notice, and there have been suggestions that the KCAA should employ higher thresholds for upstarts to qualify for first an air service license, in short ASL, and then an air operators certificate, in short AOC. “Ideally … a startup airline [should] have two aircraft if they want to go into scheduled services and show available capital to pay for operational expenses and startup losses for at least a year, maybe for longer,” suggested another regular aviation contributor from Nairobi, justifying the need for a second aircraft with operational backup requirements during periods of maintenance of when technical problems occur with a plane. “If you have only one plane and it gets grounded over technical issues, a second aircraft will be the key to keep a resemblance of maintaining a flight schedule. But if an airline only [have] one plane, there is no back up, and normally they do not have the funds to wet lease another aircraft instantly,” the source then added for further clarification. Be that as it may, the Kenyan aviation industry appears to be mourning another casualty of the air fare wars being waged between the various carriers now remaining in the air.
African low-cost carrier Fastjet will to add “a number” of aircraft to its fleet this year, starting with an initial Airbus A319 on lease from ICBC International Leasing Co.
In a stock market disclosure released Monday, Fastjet said it has signed a letter of intent with ICBC covering a single A319 slated for entry into service in the third quarter. In the meantime, the aircraft will be reconfigured and painted with Fastjet’s livery.
“With Fastjet’s current fleet of three aircraft almost fully utilized, additional aircraft will be required to support the planned expansion of Fastjet Tanzaniaand to facilitate the startup of planned new fastjet operations in both Zambiaand Zimbabwe,” it said in the disclosure.
Each aircraft will add roughly 1,000 daily seats, or 275,000 annual passengers to Fastjet’s operation, which is currently running at a 75% load factor. POPULAR NOW FBI investigates computer security expert’s aircraft hacking claims Air India rejects pilots on psychological grounds Qatar Airways’ chief fires back at anti-Gulf carrier campaign
“It will be a strong step forward to add another aircraft to our fleet and embark on our planned expansion funded by our recent £50 million ($78.6 million) placing. We are currently negotiating to bring further aircraft into the fleet,” Fastjet CEO Ed Winter said. Despite hitting hurdles with expansion plans, fastjet is still aiming to operate 34 aircraft across a network of 40 destinations by the end of 2018. These operations will span Kenya, South Africa, Tanzania, Uganda, Zambia and Zimbabwe.
I have an interest in this company.... But to me the fact that it starts production imminently and the consumption is in the local Tanzanian Market is a economic multiplier....I had posted a earlier article about corruption in Tanzania..
AMINEX PLC("Aminex" or "the Company")INTERIM MANAGEMENT STATEMENT - FIRST QUARTER 2015
Aminex PLC ("Aminex" or "the Group" or the "Company"), an oil and gas company listed on the London and Irish Stock Exchanges, today releases its Interim Management Statement for the period 1 January 2015 to the date of this statement. HIGHLIGHTS· On schedule to be a new East African producer - first gas from Kiliwani North expected mid 2015· Completion of sale of 6.5% interest in Kiliwani North Development Licence to Solo Oil plc with purchaser's option to acquire a further 6.5% on signing of the Kiliwani North Gas Sales Agreement· Competent Persons Report ("CPR") completed on Tanzania assets. Kiliwani North-1 and Ntorya-1 assigned 98 BCF gross (70 BCF net) Contingent Resources· Nyuni Area PSA work programme varied, subject to an Environmental Impact Assessment which is now complete and the eventual acquisition of 3D seismic in the deep water· Ongoing restructuring and cost monitoringChief Executive Jay Bhattacherjee commented:"This is a very promising time for the Company, with imminent first commercial production from Kiliwani North, early stage development options for Ntorya-1 identified and the completion of a CPR which verifies the world class nature of the onshore Ruvuma Basin. Over the course of the last 18 months the Company has made the transition from exploration to development and production and will seek opportunities to expand its business across Africa."
Glossary of initials used
mmscfd Millions of standard cubic feet of gas per dayPSA Production Sharing AgreementPSC Production Sharing ContractGIIP Gas Initially In PlacePmean Average (mean) probability of occurrenceBOE Barrels of oil equivalentMCF Thousands of cubic feet of natural gasTPDC Tanzanian Petroleum Development Corporation The Company is pleased to release itsInterim Management Statement for the period 1 January 2015 to the date of the statement. This has been a highly active period that has seen Aminex make significant strides in moving from explorer and developer to East African producer.KILIWANI NORTH GAS FIELD The Kiliwani North-1 gas well, which tested at 40 mmscfd, has been completed and is ready to produce. Initial gas production will enable the pipeline operator to pressure-test the pipeline and gas plant mid-2015 with revenue gas flowing shortly thereafter. Following an engineering review, it is now anticipated that a sustained production rate of between 20 to 30 mmscfd, higher than previously planned, would optimise the maximum life of the reservoir. A Gas Sales Agreement ("GSA") is effectively complete but awaiting the finalisation of payment protection clauses and guarantees prior to final signature by all Joint Venture partners. First Kiliwani North commercial gas will be delivered into a 36" regional pipeline system, the construction and pressure testing of which is now complete and will result in Aminex's first commercial production in Africa. The pipeline operator has constructed a sales pipeline from Kiliwani North to the nearby processing plant at its own cost with the Company supplying and installing a gas metering unit. The Company will therefore sell its production at the wellhead, greatly simplifying commercial and management issues and allowing for low operating and production costs. First gas from Kiliwani North will be a major achievement for Aminex. In February 2015, the Company completed the sale of a 6.5% interest in the Kiliwani North Development Licence to Solo Oil plc ('Solo') for a consideration of $3.5 million. This reduced Aminex's interest in the licence to 58.5%. Under the terms of the Asset Sale Agreement, Solo has an option to acquire a further 6.5% interest in the field for $3.5 million within 30 days of the Gas Sales Agreement being signed. Approval from the Tanzanian authorities for this second sale was obtained in conjunction with the first sale. RUVUMA PSA In 2012, the Ntorya-1 discovery well in the Ruvuma PSA tested 20 mmscfd together with 139 barrels of associated condensate. The Company has now completed an infill seismic programme designed to high-grade leads into drill-ready prospects across the Likonde and Ntorya channel fairway. The recently completed CPR by LR Senergy attributed 4.17 TCF Pmean GIIP (gross) for the discovered and undiscovered resources on the PSA. Ntorya 1 was attributed 70 BCF (gross) as Contingent Resources (Best Estimate) and the Company is evaluating options to put the well into development as a pilot producer. The Company is planning to drill the Ntorya-2 appraisal well in late 2015 subject to available finance or acceptable farm-out offer. Ntorya-2 will target the Cenomanian and the secondary Tertiary reservoir intervals and will test 1.5 TCF of Pmean GIIP. The four main drillable targets: Ntorya Updip, Likonde, Namisange, and Sudi have been attributed 3 TCF Pmean GIIP and these prospects and leads will act as the catalyst for a drilling programme to meet the remaining licence obligations. NYUNI AREA PSA After further detailed technical review, Aminex and its partners have decided to expand their exploration efforts towards the highly prospective deep water portion of the Nyuni Area PSA acreage. The discovery success rate targeting the prolific Tertiary reservoir in neighbouring licences based on 3D seismic is over 90%. The geology in the deeper, eastern part of the Nyuni Area acreage, is analogous to the recent major deep water discoveries in the vicinity. The Tanzanian authorities have approved the variation of the initial period work programme to enable the acquisition of up to 700 km2 of 3D seismic and the deferral of the current two-well commitment into the first extension period, scheduled to end in October 2019. The deferral is subject to an Environmental Impact Assessment, which has already been completed, and the eventual acquisition of the 3D seismic. The proposed deep water seismic programme will be subject to the completion of a tendering process but will not be conducted until an appropriate vessel is in the area, as the mobilisation costs for a single acquisition programme of this scope would otherwise be prohibitive. Aminex is unlikely to be in a position to drill deep water well in the Nyuni Area in the foreseeable future without introducing a larger company as a farm-in partner. EGYPT In February 2015, the South Malak 2 well was declared a discovery well by the Ministry of Petroleum in Egypt. Aminex is currently assessing the economic benefit of this discovery to the Company and will act accordingly. STRATEGY, FINANCING AND OUTLOOK Aminex has four primary goals for the remainder of 2015. Firstly, to complete the repayment programme of its $8 million corporate loan facility, final repayment date of which is in July. $3.3 million has already been repaid since the beginning of the year and the Company is in constructive discussions with the lender to extend the final repayment date if need be. Should Solo Oil exercise its option to acquire a further 6.5% for $3.5 million within 30 days of the signing of the Kiliwani North GSA, the proceeds of this sale will be applied to further debt retirement. With or without the exercise of this option, however, Aminex has a reasonable expectation of being able to repay or re-finance the remainder of the loan or extend the repayment period, particularly with the benefit of the expected revenues from Kiliwani North.Secondly, the Company's main operational priority is to bring gas from the Kiliwani North Field on to production, which should be achieved with the now complete and pressure tested pipeline, the expected near-term completion of the gas processing plant infrastructure, and the signing of the Kiliwani North GSA. Thirdly, on the Ruvuma PSA, the Company's priority is to appraise the Ntorya-1 discovery by drilling the Ntorya-2 well and gain a better understanding of it and its neighbouring leads and prospects in the two exploration licences. Any potentially commercial gas field in the Ruvuma PSA would find a ready market in Dar es Salaam via TPDC's new regional pipeline and the fast-tracking of such a development would be strongly encouraged and assisted by the Tanzanian authorities. Fourthly, on the Nyuni Area PSA, the Company's priority is to appraise with 3D seismic a lead identified in the deep-water portion, which the Board views as a compelling opportunity for a potential future high-impact discovery.
By Kudzai Chawafambira HARARE – London Stock Exchange-listed low-cost airline Fastjet has embarked on a recruitment drive as the company moves to establish operations in Zimbabwe.
Fastjet sets base in Zimbabwe
“We are growing quickly and are on the lookout for talented people to implement our business model and be part of our team,” said the airliner on Thursday.
The available vacancies, which include pilots, head of ground operations, cabin crew and dispatch supervisors among others, will enable individuals to become a part of one of Africa’s fastest growing airlines.
Since commencing operations in 2012, Fastjet has welcomed over a million passengers on board with 35 percent of them being first time flyers.
The low-cost airline, which aims to provide a pan-African service, launched its maiden flight to Zimbabwe on the Dar es Salaam-Harare route in August last year.
The airline has since increased its frequency on the route to three times a week after being overwhelmed by demand for its tickets.
Zimbabwean traders and car importers use the port at Dar es Salaam extensively while Victoria Falls in Zimbabwe and Zanzibar to the east of Tanzania are popular tourist destinations.
Speaking at the budget airline’s launch of a third weekly flight to Harare last year, Transport and Infrastructural Development minister Obert Mpofu said Fastjet’s entry into Zimbabwe demonstrated the ministry’s ongoing commitment to improve the country’s aviation industry.
He said the ministry would look forward to continuing the discussions with Fastjet regarding the airline’s further expansion in Zimbabwe.
“The Government of Zimbabwe is delighted that Fastjet is expanding its international route network to include Harare and that in doing so it is bringing its low-cost, reliable and safe service to the people of Zimbabwe,” Mpofu said.
The minister added that the initiative would go a long way in increasing connectivity and would also improve trade between Zimbabwe and Tanzania.
He, however, urged Fastjet to take advantage of another opportunity to introduce direct flights to Victoria Falls from Mount Kilimanjaro in Tanzania.
The Ambassador of Tanzania to Zimbabwe Adadi Rajabu said Fastjet’s entry into Zimbabwe was another move to consolidate air connectivity in the region and in particular it would connect directly Zimbabwe and Tanzania.
“We believe this bilateral air connectivity between Zimbabwe and Tanzania will have magnified effects to neighbouring countries.
“However, we know for sure that Africa trades little to itself than to other continents.
“Thus Fastjet, with a commencement of direct flight, we strongly believe that it will minimise the transport stop-over, immigration desks, custom clearances and infrastructure mystery with an impact to time reduction and further to improve bilateral trade between Zimbabwe and Tanzania,” Rajabu said.
Fastjet is one of 17 carriers to fly into Zimbabwe, a move that improves the country’s accessibility and tourist arrivals. Daily News
Africa Skies: An untapped, underutilised glaring opportunity
By Heinrich Böll Foundation on May 21, 2015 — Under the changing climate no stone need to be left unturned. A liberalized African commercial airspace and developed airports represent an authentic, relatively affordable under exploited route for enhancing transport connectivity in the region, growing domestic and international trade, including trade in agriculture and affordable transportation in the continent, thus contributing toward inclusive socio-economic development for Africa
Africa’s growth trajectory for over a decade has been impressive as reported by the World Bank, the African Competitive Report and theAfrican Economic Outlook. This impressive course is projected to sustain and even rise to 5.5% in 2015. However, leaders in the continent worry, and rightly so, that without adequate road and railway networks, the translation of this growth into real socioeconomic development for Africans may not happen. Indeed countless socioeconomic activities depend on reliable transport connectivity. Changing climate creating an imperative? The 2nd Africa Adaptation gap report projects among impacts to Africa’s cities, increased risk of flooding and sea level rise potentially displacing millions and damaging infrastructure anddisrupting road, and rail transportation. This could spiral down to impacting trade infrastructure and routes, with potential losses to African economies that could range in the millions or billions of dollars. In such a scenario, affordable air transport could go a long way in ensuring intra-regional connectivity and mobility is not completely paralyzed. Other than damage to infrastructure, climate change is also projected to affect agricultural productivity, with significant yield reductions of key staples in some areas being offset by increases in others. For instance, while yields in maize, a staple in most of Africa, are projected to decrease by 11% in Southern Africa, 13% in Central and the Sahel and 7% in West Africa between 2030 – 2050, East Africa may experience 15 – 18% yield increases over the same period. This would mean affordable air transportation could be vital in distributing maize from high yielding surplus areas to low yielding, high demand areas and boost food security and intra-Africa trade in the process. Climate change can cause increased risk of flooding potentially displacing millions and disrupting road, and rail transportation. Source:manna-anglican
Good Transport Network – A delivery tool for good Economic and Social Benefits? A good transport network will deliver economic and social benefits by connecting firms to international and regional markets, and by enabling individuals to reach water, fuel, schools, clinics, jobs, and relatives. It will boost the transportation of goods and raw materials, facilitate transactions and negotiations, boost tourism and positively impact ordinary lives in diverse ways. For instance, it will ensure people get to hospitals quickly during emergencies. At national and regional level, without reliable and competitively priced transport connectivity, nations have little hope of trading their goods on the most advantageous terms. Transport makes markets work. Inadequate connectivity for Africa is impacting negatively on a number of fronts. Poor transport network hampering Africa intra and inter competitiveness? In trade, lack of adequate roads is translating to high transportation costs and trade barriers. As a testament, transport costs alone are 63% higher in Africa than in developed countries, hampering the continents competitiveness in the international and local markets. Transport costs represent between 30 – 50% of total export value in Africa, meaning profitability of exports is greatly hampered. Development experts believe poor roads and railways are having a negative impact on intra-African trade, which is currently at a lowly 11%, relative to similar developing regions, such as trade among Southeast Asia’s 10 countries, at 37%. Indeed the Africa Competitive report observes that Africa’s infrastructure deficit is limiting regional integration and intra-regional trade, currently lowest in Africa at 12% compared to 25% in South East Asia, 45% in North America and 65% in Western Europe. To quantify this loss in trade in monetary terms, the World Bank reports that while Africa currently produces staple food worth USD 50 billion annually, the region could add an extra USD 20 billion per year if it dismantles barriers to trade in agriculture, among them inadequate transport connectivity. Intra-African trade suffers from poor international transport infrastructure and high communication costs. Source:hsrc
Infrastructural deficit- compounding a precarious crisis under the changing Climate In the agriculture sector, which has been reported by the recently launched 2015 2nd Africa Adaptation gap report as among key sectors in Africa that will be adversely affected by climate change, with up to 40% yield reductions in major staples across the continent hence serious implications on food and nutritional security, inadequate infrastructure threatens to compound this scenario, by contributing significantly to postharvest losses and limiting access by populations to available food. In rural Africa, less than 50% of the rural population lives close to adequate roads, which compounds transportation of inputs and produce. While the need to invest in infrastructure is appreciated, ‘high upfront costs’ required in such investments constitutes a major barrier. For instance, in the transport infrastructure gap, Africa needs to invest up to USD 11billion annually to bridge this gap. Africa Airspace – an untapped, underutilized glaring opportunity Analysis of costs is however not homogeneous. Investments needed to develop the continents airports are relatively cheaper than what would be spent on road and railway developments. Estimates of aggregate development costs for the year 2006 – 2015 document that rural roads cumulatively would require an investment of about USD 43billion, urban roads USD 20billion, railways USD 10billion while airports are at USD 8billion. While this is a glaring opportunity, the level at which the continent has tapped to this potential is dismally low. Currently, in Sub-Saharan Africa, road transport is the predominant means of connectivity and movement for passengers and freight averaging over 80% and over 60% respectively, the highest in the world. While this is the case for road transport, the intra-African airline market is at less than 1%. The level at which the continent has tapped into its airspace potential is dismally low.Source:airliners
Regardless of Africa’s high dependence on road transport, only a third or about 30% of Africa’s rural population, which constitutes about 70% of total population, has access to these roads. The socio-economic benefits of transport connectivity earlier elucidated therefore evade a majority in the continent. In some countries, the situation is worse. The Democratic Republic of the Congo (DRC), Africa’s second largest country sprawling over 905,000 square miles, has no roads connecting one end of the country to the other, 54 years after its independence. This makes air transport the only means to travel between two distant points. Such a scenario could be the case in several Sub-Saharan African states given that some are reported as having similar low human development or even ranked lower than DRC in the human development index (HDI). Consequently, developing the aviation sector in Africa could represent a hitherto under-exploited, cheaper alternative to enhancing transport connectivity and ensuing benefits to the continent. The potential benefits of affordable intra-Africa airline transportation While inadequate road, port, and railway infrastructure often constrains the rapid and efficient transportation of export goods as well as passengers, and the high costs needed to address this deficiency constitute a bottle neck, in addition to cheaper costs of developing African airports discussed earlier, reforming air transport policies, to facilitate an ‘open sky’ model for the African commercial airspace could offer an additional alternative, least costly route to reducing connectivity barriers to trade and development in a shorter time space. This can be done by implementing the Yamoussoukro decision. This decision provided a framework that became fully binding in 2002, for implementing the Yamoussoukro declaration of 1988 that sought to create a liberalized intra-African aviation market. Implementing the decision would mean a harmonization of air transport policies throughout the continent and a creation of an ‘open skies’ policy – a non-restricted, deregulated air services market open to transnational competition, liberalized tariffs and fair competition, and reaping the market benefits of liberalization. These include affordable fares, increased traffic, improved competitiveness and quality of service, all enhancing trade including in agriculture that could be worth an additional USD 20billion annually and tourism where 20% of tourism related jobs in the continent are supported by tourists arriving by air. By extension, considering that agriculture and tourism are underpinned by ecosystem services such as water and biodiversity, promoting earnings in these sectors through a competitive airlines industry will create a great incentive to sustainably manage these ecosystems in Africa. As of 2013, air transport in Africa had grown by 6.6% over a decade to become the most rapid growth region globally. Source:arabia
As of 2013, air transport in Africa had grown by 6.6% over a decade to become the most rapid growth region globally. The Word Bank projects that with a potential market of about 12% of the world population, African air traffic can potentially grow at 5.7% annually, over and above the global average of 4.9%. Unlocking aviation potential in Africa- operationalizing the Yamoussoukro Declaration and Decision To fully unlock aviation potential in Africa, the need to implement the Yamoussoukro Declaration and Decision has been further buttressed by the AU agenda 2063 as among key priorities. Jointly, the Yamoussoukro Declaration and Decision set the legal basis for a liberalized commercial air space in Africa, which will see Africa reap short-run benefits including affordable fares, increased flight routes and frequencies, and lower travel times, benefits similar to European open skies, that have seen flying to an African city via Europe being cheaper and easier than a direct Africa flight. In the medium term, a liberalized air space results in air traffic growth, which has wide ranging benefits including expanding investments, trade, and tourism that translates to enhanced economic growth, productivity and job creation in the long run. For instance in Europe, liberalization greatly increased competition on many routes, resulting in many more new routes operating, and a 34% decline in discount fares. The benefits of a liberalized African air space are immense. For instance, open skies in only 12 African countries could encourage tourism thereby create more than 150,000 jobs and add USD 1.3billion to the continent’s gross domestic product. Additional analysis of the potential benefits of open skies in Africa can be cited. For instance, an agreement of a more liberal air market between South Africa and Kenya in the early 2000s led to 69% rise in passenger traffic. Ethiopia’s pursuit of more liberal bilateral has contributed to Ethiopian Airlines becoming one of the largest and most profitable airlines in Africa. It is reported that on intra-African routes with more liberal bilateral, Ethiopians benefit from 10-21% lower fares and 35-38% higher frequencies (compared to restricted intra-Africa routes). The 2006 Morocco-EU open skies agreement led to 160% rise in traffic and the number of routes operating between points in the EU and points in Morocco increasing from 83 in 2005 to 309 in 2013. Ethiopia’s pursuit of more liberal bilateral has contributed to Ethiopian Airlines becoming one of the largest and most profitable airlines in Africa. Source:centreforaviation
Under the changing climate no stone need to be left unturned. A liberalized African commercial airspace and developed airports represent an authentic, relatively affordable under exploited route for enhancing transport connectivity in the region, growing domestic and international trade, including trade in agriculture and affordable transportation in the continent, thus contributing toward inclusive socio-economic development for Africa. Africa is rising and this should not be a hype cliché but one that betters prosperity and abundant life for majority of her people. The last 30 years have been phenomenal in human history and there is no doubt that Africa is set to converge. But it should also be known that this is not pre-ordained. It will depend upon, not the declarations of intent but the willingness to operationalize what has been declared for the collective benefit and prosperity of all African people. Dr. Richard Munang is a climate change policy specialist & expert. He tweets as @mtingem Mr. Robert Mgendi is the Ecosystem-based Adaptation Expert
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Climate change can cause increased risk of flooding potentially displacing millions and disrupting road, and rail transportation. Source:manna-anglican
Intra-African trade suffers from poor international transport infrastructure and high communication costs. Source:hsrc
The level at which the continent has tapped into its airspace potential is dismally low.Source:airliners
As of 2013, air transport in Africa had grown by 6.6% over a decade to become the most rapid growth region globally. Source:arabia
Ethiopia’s pursuit of more liberal bilateral has contributed to Ethiopian Airlines becoming one of the largest and most profitable airlines in Africa. Source:centreforaviation
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