Ecobank Transnational Inc. (ETI), the parent company of the Ecobank Group, the largest pan-African banking group by geography, with presence in 35 countries, is pleased to announce the acquisition of The Trust Bank Ghana Limited (TTB). Under the terms of the transaction, which was approved on 9 December 2011, ETI will execute a share swap agreement with existing shareholders of The Trust Bank for 100% stake in TTB. Subsequently, ETI will execute a share swap with Ecobank Ghana Limited under which ETI will transfer its 100% stake in TTB to Ecobank Ghana in exchange for shares in Ecobank Ghana. An Extraordinary General Meeting (EGM) is scheduled for 20 January 2012 to pass the necessary resolutions to effect the above transaction.
Meanwhile, a new Board of Directors of The Trust Bank Ghana Limited has been constituted with Sam Ashitey Adjei, Managing Director of Ecobank Ghana Limited as Chairman, whilst Emelia Atta Fynn, will assume the role of Acting Managing Director. Prior to her appointment Emelia served as Head of Compliance on the executive management committee of Ecobank Ghana Limited and previously as Country and regional Treasury.
The combined Ecobank Ghana and TTB will be the largest bank in Ghana in terms of assets with the largest ATM network and over 70 branches.
The Ecobank Group is delighted to welcome employees, customers and shareholders of The Trust Bank aboard to the Ecobank family.
Furthermore, the Ecobank Group expresses its appreciation to the regulators, shareholders and the Board of Directors of The Trust Bank Ghana Limited for their confidence and support in facilitating this landmark merger.
Wednesday, January 25, 2012
Green Investments in the Marine Sector Can Bring Tide of Economic and Social Benefits
Report Spotlights Opportunities for Green Jobs and Growth in Tourism, Transport, Energy and Other Areas
Manila/Nairobi, 25 January 2012 – Healthy seas and coasts would pay healthy dividends in a green economy, according to a report released by the United Nations Environment Programme (UNEP) and partners that highlights the huge potential for economic growth and poverty eradication from well-managed marine sectors.
The report, Green Economy in a Blue World, argues that the ecological health and economic productivity of marine and coastal ecosystems, which are currently in decline around the globe, can be boosted by shifting to a more sustainable economic paradigm that taps their natural potential - from generating renewable energy and promoting eco-tourism, to sustainable fisheries and transport.
The report was produced by UNEP in collaboration with the United Nations Development Programme (UNDP), Food and Agriculture Organization of the United Nations (FAO), International Maritime Organization (IMO), United Nations Department of Economic and Social Affairs (UN-DESA), International Union for Conservation of Nature (IUCN), WorldFish Center and GRID-Arendal.
It highlights how the sustainable management of fertilizers would help reduce the cost of marine pollution caused by nitrogen and other nutrients used in agriculture, which is estimated at US$100 billion (EUR 80 billion) per year in the European Union alone.
With five months to go before world governments meet at the UN Conference on Sustainable Development (Rio+20) in Brazil, Green Economy in a Blue World presents a case to stimulate countries to unlock the vast potential of the marine-based economy in a green economy transition that would significantly reduce degradation to our oceans, while alleviating poverty and improving livelihoods.
The synthesis report also examines how Small Island Developing States (SIDS), such as those in the Asia-Pacific and Caribbean regions, can take advantage of green economy opportunities to reduce their vulnerability to climate change and promote sustainable growth.
With as much as 40 per cent of the global population living within 100 kilometres of the coast, the world’s marine ecosystems (termed the ‘Blue World’ in the report) provide essential food, shelter and livelihoods to millions of people. But human impacts are increasingly taking their toll the health and productivity of the world’s oceans.
Today, some 20 per cent of mangroves have been destroyed, and more than 60 per cent of tropical coral reefs are under immediate, direct threat.
“Oceans are a key pillar for many countries in their development and fight to tackle poverty, but the wide range of ecosystem services, including food security and climate regulation, provided by marine and coastal environments are today under unprecedented pressure”, said UN Under-Secretary-General and UNEP Executive Director Achim Steiner. “Stepping up green investments in marine and coastal resources and enhancing international co-operation in managing these trans-boundary ecosystems are essential if a transition to low-carbon, resource efficient Green Economy is to be realized.”
“In the run-up to Rio+20, this report shows that a shift to a Green Economy can if comprehensively implemented unlock the potential of marine ecosystems to fuel economic growth – particularly in small island developing states – but in ways that ensure that future generations derive an equitable share of marine resources and services," added Mr Steiner.
Dr. Linwood Pendleton, one of the contributors to the report, and Director of Ocean and Coastal Policy at the Nicholas Institute for Environmental Policy Solutions, said: “This report provides concrete examples of how emerging ocean industries—including ocean energy and aquaculture industries—can become more profitable, more sustainable, and meet the needs of a growing population without sacrificing the health of our fragile ocean ecosystems.”
Green Economy in a Blue World lays out a series of recommendations across six marine-based economic sectors.
Fisheries and aquaculture
Approximately 30 per cent of the world’s fish stocks are overexploited, depleted, or recovering from depletion and 50 per cent are fully exploited. According to FAO and World Bank estimates, the world economy can gain up to USD 50 billion annually by restoring fish stocks and reducing fishing capacity to an optimal level.
· Aquaculture, the fastest growing food production sector, is creating new jobs and trade opportunities. But when poorly planned, it can increase pressure on the already suffering marine and coastal ecosystems.
· Adoption of green technologies and investments to lower fossil fuel use could dramatically reduce the carbon footprint of the sector, while enhancing its contribution to economic growth, food and nutrition security and poverty reduction. Green technologies include low-impact fuel-efficient fishing methods and innovative aquaculture production systems using environmentally friendly feeds.
· Small-scale producers and traders in developing countries make up the majority of the 530 million fishery-dependent people in the world. Strengthening regional and national fisheries agencies, as well as community and trade fishing associations and cooperatives, will be critical to the sustainable and equitable use of marine resources.
Marine transport
International shipping transports around 90 per cent of world commerce and is the safest, most secure, most efficient and most environmentally sound means of bulk transportation. The sector already benefits from a global regulatory framework and agreements such as the MARPOL Convention, which regulate emissions of air pollutants and energy efficiency measures.
Further greening of the sector could be achieved, argues the report, by supporting countries to implement and enforce standards, switching ships to environmentally sound fuel sources and preventing the transfer of invasive aquatic species transported via ships’ ballast water or hulls (the effects of which are estimated to cost US$100 billion a year), and addressing the technical, operational and environmental aspects of the increasing size of ships.
Marine-based renewable energy
Marine-based renewable energy (wind, wave and tidal) potential is high, yet in 2008 these energy technologies represented just one per cent of all renewable energy production.
Installed capacity is unlikely to become significant until after 2020, because, with the exception of offshore wind energy, most marine-based renewable energy technologies are in the conceptual or demonstration phase. Technical costs also remain a barrier.
Marine-based renewable energy also carries significant potential for green job creation. The type and scale of opportunity will vary according to national context and energy source.
To harness the potential of marine-based renewable energy to drive a green economy, the report recommends:
· Consistent long-term policies, with specific targets for marine-based renewable energy, and targeted financial support from governments to overcome technical barriers. Incentives such as grants, subsidies and tax credits are required to encourage private investment to move from small prototypes to pilot plants.
· Governments need to proactively guide developments to reduce potential for social environmental and legal conflicts and promote synergies with other marine users.
Ocean nutrient pollution
Fertilizers such as nitrogen and phosphorous are essential to global food security and have played a key role in increasing crop yields. But inefficient use of nutrients is contributing to the degradation of marine ecosystems and groundwater, including the formation of oxygen-poor ‘dead’ zones.
The amount of nitrogen reaching oceans and coasts has increased three-fold from pre-industrial levels - primarily due to agricultural run-off and untreated sewage. This could expand by up to 2.7 times by 2050 under a ‘business as usual’ scenario.
The report says nutrient pollution and can be reduced – and innovation, public-private partnerships and job creation enhanced – through:
· A ‘cyclical approach’ including substantial recovery and recycling of waste nutrients
· Policy instruments that include stricter regulation of nutrient removal from wastewater, mandatory nutrient management plans in agriculture and enhanced regulation of manure.
· Subsidies that encourage nutrient recycling
Coastal tourism
The tourism economy represents 5 percent of global GDP and contributes 6 to 7 per cent of total employment. Estimates are that more than one-third of travellers favour environmentally friendly tourism.
There is considerable potential for creating more green jobs in the tourism sector, given that one job in the core industry is shown to create one and a half jobs in tourism-related sectors. Sourcing local products (from sustainable farming and fishing) and safeguarding local culture are examples of where green investments could be targeted.
Key steps outlined in the report include:
· Improving waste management to save money, create jobs and improve the appearance of tourism destinations
· Mobilising multi-sector partnerships and financing strategies to spread the costs and risks of green investments and support small and medium size enterprises (which represent the majority of tourism businesses).
· Investment in energy efficiency, which can generate significant returns within short payback periods
· Cross-sectoral consultation (between governments, communities and businesses) and integrated coastal zone management to help ensure sound development strategies in tourist areas that meet the needs of diverse stakeholders
Deep-sea minerals
Deep-sea minerals are a possible new revenue stream that could support national development goals. However, the deep-sea environment is one of the least understood regions of the planet and there is still only a rudimentary understanding of the ecosystems services that these environments support. Management of these resources must be informed by sound science and best environmental practices applied.
· All stakeholders need to be considered when managing deep-sea mining activities in the context of sustainable use of oceans. Management practices should be holistic, based on an integrated overview of all present and future human uses and ecosystems services.
Notes to Editors
Copies of the Green Economy in a Blue World report can be downloaded from: http://www.unep.org/pdf/green_economy_blue.pdf
Additional quotations from partners:
Dr Peter Prokosch, Managing Director of UNEP/GRID-Arendal, said: "Mining of minerals in the deep-sea provides a unique opportunity for developing countries towards reaching their development goals. Operating in a largely unknown natural environment, it may put additional pressure on already stressed marine ecosystems. However, it can relieve some of the burdens of mining in the terrestrial environment. Careful and responsible planning of deep-sea minerals mining needs to apply the Precautionary Principle, and consider the other sectors and in particular future generations."
Mr. Arni Mathiesen, Assistant Director-General of FAO’s Fisheries and Aquaculture Department, said: “The food production potential of the oceans is at risk and with it the livelihoods of hundreds of millions of people who depend on fisheries and aquaculture. If the current trend in unsustainable use of marine resources is not reverted the ability of our oceans to deliver food for future generations is severely compromised. Ocean fisheries and aquaculture are among humanity’s best opportunities to deliver highly nutritious food to a growing population. To lose this opportunity would be a crime on future generations.”
Manila/Nairobi, 25 January 2012 – Healthy seas and coasts would pay healthy dividends in a green economy, according to a report released by the United Nations Environment Programme (UNEP) and partners that highlights the huge potential for economic growth and poverty eradication from well-managed marine sectors.
The report, Green Economy in a Blue World, argues that the ecological health and economic productivity of marine and coastal ecosystems, which are currently in decline around the globe, can be boosted by shifting to a more sustainable economic paradigm that taps their natural potential - from generating renewable energy and promoting eco-tourism, to sustainable fisheries and transport.
The report was produced by UNEP in collaboration with the United Nations Development Programme (UNDP), Food and Agriculture Organization of the United Nations (FAO), International Maritime Organization (IMO), United Nations Department of Economic and Social Affairs (UN-DESA), International Union for Conservation of Nature (IUCN), WorldFish Center and GRID-Arendal.
It highlights how the sustainable management of fertilizers would help reduce the cost of marine pollution caused by nitrogen and other nutrients used in agriculture, which is estimated at US$100 billion (EUR 80 billion) per year in the European Union alone.
With five months to go before world governments meet at the UN Conference on Sustainable Development (Rio+20) in Brazil, Green Economy in a Blue World presents a case to stimulate countries to unlock the vast potential of the marine-based economy in a green economy transition that would significantly reduce degradation to our oceans, while alleviating poverty and improving livelihoods.
The synthesis report also examines how Small Island Developing States (SIDS), such as those in the Asia-Pacific and Caribbean regions, can take advantage of green economy opportunities to reduce their vulnerability to climate change and promote sustainable growth.
With as much as 40 per cent of the global population living within 100 kilometres of the coast, the world’s marine ecosystems (termed the ‘Blue World’ in the report) provide essential food, shelter and livelihoods to millions of people. But human impacts are increasingly taking their toll the health and productivity of the world’s oceans.
Today, some 20 per cent of mangroves have been destroyed, and more than 60 per cent of tropical coral reefs are under immediate, direct threat.
“Oceans are a key pillar for many countries in their development and fight to tackle poverty, but the wide range of ecosystem services, including food security and climate regulation, provided by marine and coastal environments are today under unprecedented pressure”, said UN Under-Secretary-General and UNEP Executive Director Achim Steiner. “Stepping up green investments in marine and coastal resources and enhancing international co-operation in managing these trans-boundary ecosystems are essential if a transition to low-carbon, resource efficient Green Economy is to be realized.”
“In the run-up to Rio+20, this report shows that a shift to a Green Economy can if comprehensively implemented unlock the potential of marine ecosystems to fuel economic growth – particularly in small island developing states – but in ways that ensure that future generations derive an equitable share of marine resources and services," added Mr Steiner.
Dr. Linwood Pendleton, one of the contributors to the report, and Director of Ocean and Coastal Policy at the Nicholas Institute for Environmental Policy Solutions, said: “This report provides concrete examples of how emerging ocean industries—including ocean energy and aquaculture industries—can become more profitable, more sustainable, and meet the needs of a growing population without sacrificing the health of our fragile ocean ecosystems.”
Green Economy in a Blue World lays out a series of recommendations across six marine-based economic sectors.
Fisheries and aquaculture
Approximately 30 per cent of the world’s fish stocks are overexploited, depleted, or recovering from depletion and 50 per cent are fully exploited. According to FAO and World Bank estimates, the world economy can gain up to USD 50 billion annually by restoring fish stocks and reducing fishing capacity to an optimal level.
· Aquaculture, the fastest growing food production sector, is creating new jobs and trade opportunities. But when poorly planned, it can increase pressure on the already suffering marine and coastal ecosystems.
· Adoption of green technologies and investments to lower fossil fuel use could dramatically reduce the carbon footprint of the sector, while enhancing its contribution to economic growth, food and nutrition security and poverty reduction. Green technologies include low-impact fuel-efficient fishing methods and innovative aquaculture production systems using environmentally friendly feeds.
· Small-scale producers and traders in developing countries make up the majority of the 530 million fishery-dependent people in the world. Strengthening regional and national fisheries agencies, as well as community and trade fishing associations and cooperatives, will be critical to the sustainable and equitable use of marine resources.
Marine transport
International shipping transports around 90 per cent of world commerce and is the safest, most secure, most efficient and most environmentally sound means of bulk transportation. The sector already benefits from a global regulatory framework and agreements such as the MARPOL Convention, which regulate emissions of air pollutants and energy efficiency measures.
Further greening of the sector could be achieved, argues the report, by supporting countries to implement and enforce standards, switching ships to environmentally sound fuel sources and preventing the transfer of invasive aquatic species transported via ships’ ballast water or hulls (the effects of which are estimated to cost US$100 billion a year), and addressing the technical, operational and environmental aspects of the increasing size of ships.
Marine-based renewable energy
Marine-based renewable energy (wind, wave and tidal) potential is high, yet in 2008 these energy technologies represented just one per cent of all renewable energy production.
Installed capacity is unlikely to become significant until after 2020, because, with the exception of offshore wind energy, most marine-based renewable energy technologies are in the conceptual or demonstration phase. Technical costs also remain a barrier.
Marine-based renewable energy also carries significant potential for green job creation. The type and scale of opportunity will vary according to national context and energy source.
To harness the potential of marine-based renewable energy to drive a green economy, the report recommends:
· Consistent long-term policies, with specific targets for marine-based renewable energy, and targeted financial support from governments to overcome technical barriers. Incentives such as grants, subsidies and tax credits are required to encourage private investment to move from small prototypes to pilot plants.
· Governments need to proactively guide developments to reduce potential for social environmental and legal conflicts and promote synergies with other marine users.
Ocean nutrient pollution
Fertilizers such as nitrogen and phosphorous are essential to global food security and have played a key role in increasing crop yields. But inefficient use of nutrients is contributing to the degradation of marine ecosystems and groundwater, including the formation of oxygen-poor ‘dead’ zones.
The amount of nitrogen reaching oceans and coasts has increased three-fold from pre-industrial levels - primarily due to agricultural run-off and untreated sewage. This could expand by up to 2.7 times by 2050 under a ‘business as usual’ scenario.
The report says nutrient pollution and can be reduced – and innovation, public-private partnerships and job creation enhanced – through:
· A ‘cyclical approach’ including substantial recovery and recycling of waste nutrients
· Policy instruments that include stricter regulation of nutrient removal from wastewater, mandatory nutrient management plans in agriculture and enhanced regulation of manure.
· Subsidies that encourage nutrient recycling
Coastal tourism
The tourism economy represents 5 percent of global GDP and contributes 6 to 7 per cent of total employment. Estimates are that more than one-third of travellers favour environmentally friendly tourism.
There is considerable potential for creating more green jobs in the tourism sector, given that one job in the core industry is shown to create one and a half jobs in tourism-related sectors. Sourcing local products (from sustainable farming and fishing) and safeguarding local culture are examples of where green investments could be targeted.
Key steps outlined in the report include:
· Improving waste management to save money, create jobs and improve the appearance of tourism destinations
· Mobilising multi-sector partnerships and financing strategies to spread the costs and risks of green investments and support small and medium size enterprises (which represent the majority of tourism businesses).
· Investment in energy efficiency, which can generate significant returns within short payback periods
· Cross-sectoral consultation (between governments, communities and businesses) and integrated coastal zone management to help ensure sound development strategies in tourist areas that meet the needs of diverse stakeholders
Deep-sea minerals
Deep-sea minerals are a possible new revenue stream that could support national development goals. However, the deep-sea environment is one of the least understood regions of the planet and there is still only a rudimentary understanding of the ecosystems services that these environments support. Management of these resources must be informed by sound science and best environmental practices applied.
· All stakeholders need to be considered when managing deep-sea mining activities in the context of sustainable use of oceans. Management practices should be holistic, based on an integrated overview of all present and future human uses and ecosystems services.
Notes to Editors
Copies of the Green Economy in a Blue World report can be downloaded from: http://www.unep.org/pdf/green_economy_blue.pdf
Additional quotations from partners:
Dr Peter Prokosch, Managing Director of UNEP/GRID-Arendal, said: "Mining of minerals in the deep-sea provides a unique opportunity for developing countries towards reaching their development goals. Operating in a largely unknown natural environment, it may put additional pressure on already stressed marine ecosystems. However, it can relieve some of the burdens of mining in the terrestrial environment. Careful and responsible planning of deep-sea minerals mining needs to apply the Precautionary Principle, and consider the other sectors and in particular future generations."
Mr. Arni Mathiesen, Assistant Director-General of FAO’s Fisheries and Aquaculture Department, said: “The food production potential of the oceans is at risk and with it the livelihoods of hundreds of millions of people who depend on fisheries and aquaculture. If the current trend in unsustainable use of marine resources is not reverted the ability of our oceans to deliver food for future generations is severely compromised. Ocean fisheries and aquaculture are among humanity’s best opportunities to deliver highly nutritious food to a growing population. To lose this opportunity would be a crime on future generations.”
Friday, July 29, 2011
INFLATION HARD HITTING THE REAL ESTATE SECTOR
The real estate sector is likely to slow down for the first time in the last decade following high inflation that has seen a slowdown in construction and flattening of property rent. According to a report by Hass consult the high inflation has led to an increase in construction cost with the sector registering an overall growth of 1.8% in the last quarter. Although the sales index for standalone houses and apartments registered marginal growth closing prices for upper end properties falling by 2%. According to the report developers suffered from reduced profit margins, with some reviewing their building plans to reduce cost whereas others are delaying completion.
‘Where completion rests on these extra payments, they are achieving some increases. But buyers are unwilling to commit from fresh to higher prices’ Farhana Hassanali, property development director Hass consult.
Landlords have also seen reduced profits with asking prices for rentals especially for townhouses dropping by 2.4%.Overall the rental market was almost static growing by a mere 0.1%. The report further states that although this might be good news for new home owners not in for investment purposes the situation might lead to a diversification of funds by investors to sectors with higher returns. Although statistics are still scarce on the rental prices for houses situated in the informal sector a senior officer working at the Kenya slum upgrading programme speaking on condition of anonymity told the Kenya broadcasting corporation that the default rate may have increased as the cost of living rises with no parallel income growth. In Q2 of 2010 building and construction sector registered the highest growth developing at 18% ahead of the financial sector at 16% and manufacturing at 6.8%.
‘Where completion rests on these extra payments, they are achieving some increases. But buyers are unwilling to commit from fresh to higher prices’ Farhana Hassanali, property development director Hass consult.
Landlords have also seen reduced profits with asking prices for rentals especially for townhouses dropping by 2.4%.Overall the rental market was almost static growing by a mere 0.1%. The report further states that although this might be good news for new home owners not in for investment purposes the situation might lead to a diversification of funds by investors to sectors with higher returns. Although statistics are still scarce on the rental prices for houses situated in the informal sector a senior officer working at the Kenya slum upgrading programme speaking on condition of anonymity told the Kenya broadcasting corporation that the default rate may have increased as the cost of living rises with no parallel income growth. In Q2 of 2010 building and construction sector registered the highest growth developing at 18% ahead of the financial sector at 16% and manufacturing at 6.8%.
EVALUATION OF THE BUSINESS ENVIROMENT FOLLOWING THE ENACTMENT OF THE NEW CONSTITUTION A YEAR AGO
Attracting foreign investments is the aim of every country with various incentives all over the place for anyone wishing to relocate or expand their business. In Kenya for example in a bid to increase bed capacity for tourist as the country targets 3 million tourist in the next 2 years the government has allowed any investor willing to invest in a hotel to import capital goods tax free. But tax exemptions and deductions are not the ultimate magnet. The regulatory framework in any country as well as how efficiently it is exercised is of major concern to any investor. To put this in perspective business involves credit. for example: wholesalers acquire goods on credit from manufacturers, while suppliers offer credit to retail chains. With credit comes defaults, hence any country that lacks the capability to dispense any such cases quickly and with just is not a favorable business location. In Kenya setting up a business involves certain legal requirements. Certain acts regulate and stipulate how this should be done. It all starts with the type of business one has in mind with the business name governed by the business name act while each sector has its own laws with banks for example having the banking act. In total there are up to 200 licenses that investors are expected to acquire from various government agencies. To issue the licenses is the national government and local governments. And with the enacting of the new constitution Lawyer George Kithi says the structure of local governments is likely to be taken up by county governments almost in the same structure. "The number licences are likely to remain the same with the counties taking the responsibility of local government with some cases it involving the use of the same offices." With that brief overview of just some of the licence requirements, of main concern to any investor is about other laws of the land such as those protecting individual property and nature of doing business
"Investors must understand that the constitution protects everyone in kenya and their property including foregn nationals. They should know that in no way will the government seize their property unless it is necessary and is such scenario due compensation will be given with the current market rates been utilized." George Kithi He explains that should all systems be functional and bodies like the toothless monopolies commission exercise its powers this would drive up competition and encourage investment based on quality products and not profit margin as witnessed especially in the oil sector. As seen in the monopolies commission Kithi says various government agencies actually act as an deterrent to foreign investment. Bureaucracy in various ministries and the decentralization of services also acts as a major let down. To this end the need for automation of services as seen in the attorney general’s office can lead to increased efficiencies. Due to the inefficiencies created by the bureaucracy as well as some motivated by the vice of corruption it is estimated that for one wishing to start a company in Kenya will take about 14 days to have all documents in place. Now compare this with other east African community member states especially Rwanda where the process can take as little as a single day. The role of the judiciary in expedition of cases cannot be over emphasized as in the past has cost the country investors whereas also leading to huge losses to locals and investors as well. One casing point is the Titanium case that is still in court years since the mining of the mineral was to kick of with the miner Tiomin of Canada incurring heavy losses after carrying out various feasibility studies just to name a few but also the residents of Kwale are yet to benefit from the project. In the long run Kithi believes that efficiency of the judiciary will determine how Kenya performs in attracting businesses as well as retaining them. He is however happy with reforms the institution is currently undergoing and hopes that the kenya chamber of commerce can get back to its feet to help in arbitration of cases without necessarily having to end up to court.
"Investors must understand that the constitution protects everyone in kenya and their property including foregn nationals. They should know that in no way will the government seize their property unless it is necessary and is such scenario due compensation will be given with the current market rates been utilized." George Kithi He explains that should all systems be functional and bodies like the toothless monopolies commission exercise its powers this would drive up competition and encourage investment based on quality products and not profit margin as witnessed especially in the oil sector. As seen in the monopolies commission Kithi says various government agencies actually act as an deterrent to foreign investment. Bureaucracy in various ministries and the decentralization of services also acts as a major let down. To this end the need for automation of services as seen in the attorney general’s office can lead to increased efficiencies. Due to the inefficiencies created by the bureaucracy as well as some motivated by the vice of corruption it is estimated that for one wishing to start a company in Kenya will take about 14 days to have all documents in place. Now compare this with other east African community member states especially Rwanda where the process can take as little as a single day. The role of the judiciary in expedition of cases cannot be over emphasized as in the past has cost the country investors whereas also leading to huge losses to locals and investors as well. One casing point is the Titanium case that is still in court years since the mining of the mineral was to kick of with the miner Tiomin of Canada incurring heavy losses after carrying out various feasibility studies just to name a few but also the residents of Kwale are yet to benefit from the project. In the long run Kithi believes that efficiency of the judiciary will determine how Kenya performs in attracting businesses as well as retaining them. He is however happy with reforms the institution is currently undergoing and hopes that the kenya chamber of commerce can get back to its feet to help in arbitration of cases without necessarily having to end up to court.
Monday, July 25, 2011
Commuter Railway set to revolutionize Nairobi
Following concession of Kenya railways operations to rift valley railways Kenya railways mandate was revised to include among others promotion, facilitation and participation in national and metropolitan railway development. To effect this Kenya railways is expected to develop commuter railway services in Nairobi metropolitan, construction of standard gauge railway from Mombasa to Kampala, construction of a standard gauge railway within the Lamu corridor which includes Lamu-Juba, Nairobi-Addis Ababa and development of railway cities around the railway stations at Nairobi, Mombasa and Kisumu. The main role of the commuter railway will be to especially decongest roads in Nairobi by transporting passengers hence expansion to new routes. The project is to be developed in 3 phases with phase 1 covering the core system which is over 100 kilometres. Among areas in focus include provision of services between Nairobi railway station and Ruiru, Embakasi village, Jomo Kenyatta and Kikuyu. Phase 2 covering Thika, Lukenya and Limuru will cover 70 kilometers. the third phase will be capital intensive and will include among others building of new infrastructure to extend services to areas with missing links which include Ngong, Kiserian, Ongata Rongai and Ruai totaling an additional 100 kilometers. Just the core system of phase 1 is expected to cost 16 billion although various adjustments have been considered to reduce cost. One such modification is the scrapping of a 120 meter tunnel crossing below Mombasa road that would cost a massive 3.2 billion and which was the most expensive part of the venture. The tunn el has been replaced by a flyover where Mombasa road will instead be elevated. The commuter service is expected to substantially reduce the amount of time it takes to access the city centre with for example a journey from Syokimau costing just 60 shillings and taking about 12 minutes from the current 90 minutes. For those heading to the airport it will then take another 5 minutes using a shuttle bus service before the line is complete. Just this station is expected to handle 20,000 once it opens in December saving the economy billions. The transport PS Cyrus Njiru is now challenging the private sector to invest on high capacity vehicles to ferry passengers from the railway stations. However a few challenges such as access to the Nairobi railway station which is currently a bus station and encroachment of the railway corridor continue to undermine expansion efforts ::UPS:: The core system is expected to be complete in June 2014.
Monday, July 11, 2011
Kenya to launch diaspora bonds
The Central Bank of Kenya is for first time targeting Kenyans living abroad in the upcoming infrastructure bond.
CBK intends to raise 36 billion shillings through the issuance of the infrastructure bond.
In a statement, CBK says it believes the avenue will offer the Kenyan Diaspora with an attractive investment opportunity as it is estimated they hold up to 160 billion in checking accounts around the world.
Modalities to facilitate the diaspora to participate in the Infrastructure Bond are being worked out.
Finance Minister In Uhuru Kenyatta in his budget estimates tabled last month said that there was a deficit of 7.4% of GDP or 236.2 billion shillings 119.5 billion of which would be sourced from the domestic market and 116.7 billion externally.
Of this 30% of the domestic borrowing or 36 billion shillings was to be raised through an infrastructure bond.
The decision to involve the Diaspora is also believed to have been fueled by improved remittances that hit 57.8 billion last year and were ranked the 4th largest foreign exchange earner in the country after tea, horticulture and tourism.
The last infrastructure bond issued by CBK was oversubscribed by 18% receiving 781 bids worth Sh37.4 billion against the Sh31.6 billion on offer.
Once the process succeeds, CBK says other long tenured government paper will also be available for Kenyans abroad.
"Once this first step is successfully accomplished, lucrative bonds such as the 30 year Savings Development Bond and other long tenured bonds will also be rolled out to the Diaspora" said CBK in a statement.
CBK intends to raise 36 billion shillings through the issuance of the infrastructure bond.
In a statement, CBK says it believes the avenue will offer the Kenyan Diaspora with an attractive investment opportunity as it is estimated they hold up to 160 billion in checking accounts around the world.
Modalities to facilitate the diaspora to participate in the Infrastructure Bond are being worked out.
Finance Minister In Uhuru Kenyatta in his budget estimates tabled last month said that there was a deficit of 7.4% of GDP or 236.2 billion shillings 119.5 billion of which would be sourced from the domestic market and 116.7 billion externally.
Of this 30% of the domestic borrowing or 36 billion shillings was to be raised through an infrastructure bond.
The decision to involve the Diaspora is also believed to have been fueled by improved remittances that hit 57.8 billion last year and were ranked the 4th largest foreign exchange earner in the country after tea, horticulture and tourism.
The last infrastructure bond issued by CBK was oversubscribed by 18% receiving 781 bids worth Sh37.4 billion against the Sh31.6 billion on offer.
Once the process succeeds, CBK says other long tenured government paper will also be available for Kenyans abroad.
"Once this first step is successfully accomplished, lucrative bonds such as the 30 year Savings Development Bond and other long tenured bonds will also be rolled out to the Diaspora" said CBK in a statement.
Wednesday, September 1, 2010
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