Home > Insights > Tanzania is set to be a major gold hub once its first refinery is completed in the country’s administrative capital Dodoma in the next six weeks
Tuesday, 17 Sep 2019

Tanzania is set to be a major gold hub once its first refinery is completed in the country’s administrative capital Dodoma in the next six weeks


Insights Africa

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Economic Outlook

Economic Outlook

  • Tanzania is set to be a major gold hub once its first refinery is completed in the country's administrative capital Dodoma in the next six weeks. The gold refinery is currently more than 80% complete, and the first trial is set for October 25.
  • One of the most important recent events in Kenya was crude oil export to Malaysia in August at a cost of 1.2 BN KES (12 MM USD). Tullow Oil, the mining company in charge of the Turkana Project, estimates that Kenya fields in Turkana hold up to 560 million barrels of oil and expects to produce up to 100,000 barrels per day from 2022.
  • In Kenya, the value of mobile money payments increased by 11.1% to hit 2.5 TR KES (24 BN USD) in the first seven months of 2019. A major driver of the increase in the value of transactions are commercial banks that have taken mobile banking in a big way.
  • More than 90% of companies failed to pay corporation tax in 2018/2019. Kenya Revenue Authority (KRA) stated that out of 401,306 companies registered for corporation tax in Kenya in 2018/2019, only 33,426 paid taxes on their net income.
  • Concerns about high pricing and bad environmental practices have hit Kenya's tourism competitiveness ranking for 2019, according to a Tourism Travel Competitiveness survey by the World Economic Forum (WEF). Kenya slipped two spots to 82nd position compared to 2018.
  • In Uganda, President Museveni tasked Finance Minister Matia Kasaija to ensure that the budget for 2020/2021 lowers the cost of doing business in order to encourage economic growth and job creation.
  • Uganda is seeking 3.5 BN USD in private investment to expand its power-transmission network in attempt to control spending without slowing its economic growth.
  • Rwanda agricultural exports decreased by 9% in 2018/2019 reaching 465 MM USD compared to 515 MM USD in 2017/2018. This decrease is due to a drop in diversified and horticulture exported products, reduced rainfall that affected production, and amount of export in tea and coffee affected by the fall in international prices.
  • According to Zambia Chamber of Mines, Zambia copper production is set to decrease by around 100,000 tons in 2019 reaching 750,000 tons compared to 860,000 tons in 2018.
  • The Reserve Bank of Zimbabwe (RBZ) has increased the interest rate on its overnight window to 70% per annum from 50% as it continues its bid to calm inflationary pressures.
Political Events

Political Events

  • The Government of RwandaUNHCR, the UN Refugee Agency, and the African Union have signed an MoU to set up a transit mechanism for evacuating refugees and shelter seekers out of Libya by welcoming and providing protection to them on a voluntary basis.
  • Uganda President, Yoweri Museveni and Kenya President, Uhuru Kenyatta have signed an MoU on a joint cross-border integrated program for sustainable peace and social-economic transformation for Turkana, West Pokot and Karamoja.
Stock Market

Stock Market

  • The Nigerian Stock Exchange (NSE) is set to launch X-Mobile, a dynamic and user-friendly mobile app, to enhance investors' participation in the Nigerian capital market.
  • Monthly bond turnover at the Nairobi Securities Exchange (NSE) dropped to the lowest level in nine months in August, driven by investor uncertainty over the direction of rate cap law and the pressure on the shilling.
Companies Transactions

Companies Transactions

  • Multinational energy company Engie is set to expand its presence in Africa through acquiring Mobisol. Consequently, Engie will provide solar home systems in three additional countries of Tanzania, Rwanda and Kenya where Mobisol is operating and already installed more than 150,000 solar home systems.
  • This week Equity Bank disclosed plans for another acquisition in the Democratic Republic of Congo (DRC). It has entered into negotiations to acquire a controlling stake in the Banque Commerciale Du Congo (BCDC).
  • Family Bank has launched a salary advance facility enabling employees to borrow up to 50% of their salaries via the PesaPap App. The salary advance repayable in a one-off deduction at month-end will attract a 300 KES or 10% commission on salary advance borrowed.
  • Telkom Kenya has disputed a 906.6 MM KES (8.7 MM USD) debt that Safaricom is demanding from the firm before its merger with Airtel in a twist that could delay the transaction between the two telecommunication companies seeking to fight Safaricom's dominance.
  • A shortage of 106 pilots has cost Kenya Airways 5 BN KES (4.8 MM USD) in about 12 months through flight cancellation and delays amid plans by the national carrier to cut down routes in a race to improve efficiency.
  • Australian-owned Base Resources received 3.5 MM USD (363 MM KES) from Kenya Revenue Authority (KRA) in 2018/2019 as part of the accumulated VAT refund claims.
  • TransCentury has taken additional loans of 311 MM KES (2.99 MM USD) from its main shareholder Kuramo Capital, raising its indebtedness to the private equity firm to 699 MM KES (6.7 MM USD).
  • African natural resource investor Armadale Capital PLC is focusing on progressing its graphite project in Tanzania as it recorded a small profit in H1-2019 reaching 68.6 MM TZS (29,860 USD) compared to 643.5 MM TZS (279,946 USD) loss in H1-2018.
  • Chinese company Huawei announced a sponsorship of 110,000 NAD (7,500 USD) for the hosting of the coming Namibian Information and Communication Technology (ICT) annual summit. According to the company, the sponsorship makes them a platinum sponsor to the annual event.

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