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  • Sweden Warns East Africa on Single Currency

    Sweden has advised East African Community (EAC) member states to first create strong economic fundamentals for convergence before rushing to introduce a single currency in the region.

    The advice was given yesterday by the Swedish minister for Finance, Mr Anders Borg, during a public lecture on “Lessons from the European Crisis” at the University of Dar es Salaam.

    He said: “I am a supporter of the monetary union, but I would advise that the EAC countries take cautious steps by building very strong economic fundamentals, without which partner states are likely to see negative productivity and a high rate of unemployment.”

    He said, if rushed, the monetary union may backfire by dragging even better performing economies to negative growth because of disparity in productivity among them.

    Instead, he advised that the EAC partner states make use of the over 130 million people of the regional market at their comparative advantage to increase trade integration and productivity among themselves.

    Although Sweden is a member of the European Union, it rejected a proposal to adopt the euro currency in 2003 and has since recorded better economic performance than the rest of Europe.

    While productivity has been negative in Europe in the past few years, Sweden is growing at 1.5 per cent, three times that of European countries.

    According to Mr Borg, who was on a state visit to–South Africa, Zambia and Tanzania, Sweden has been able to perform well as a result of structural reforms that it underwent within the past 20 years.

    These especially concerned strengthening the fiscal framework that involved deregulating the agricultural sector, improving entrepreneurial climate and increasing investment in research and development (R&D).

    In a quick rejoinder, local economists said looking at the experience of the Eurozone economic crisis, concurred that the EAC bloc should not rush into establishing a single currency.

    “We must be very careful with the monetary union in EAC. We could start with increasing the degree of our political relations and labour market issues before saying farewell to our currency, which would mean giving away financial sovereignty as a tool to regulate the economy,” said Mr Adolf Mkenda, an economist at the University of Dar es Salaam (UDSM).

  • Mugabe Honoured by UN’s World Tourism Organisation

    President Robert Mugabe of Zimbabwe and Zambias leader Michael Sata have been honoured by the UN’s World Tourism Organisation, when they signed an agreement in the no-man’s-land on Victoria Falls Bridge.

    The agreement will see the two countries co-host the UNWTO general assembly in August next year.

    It is not a formal position, although the UNWTO said Mugabe would receive an open letter like other heads of state who have joined its tourism campaign.

    Taleb Rifai, secretary general of UNWTO, said: “By coming here, it is recognition, an endorsement on Zimbabwe that it is a safe destination.”
    However, the move has been criticised by political opponents.

    Kumbi Muchemwa, a spokesman for the Movement for Democratic Change (MDC) said, “Mugabe is under international sanctions. How do you have an international tourism ambassador who can’t travel to other countries?
    Mugabe’s spokesman Rugare Gumbo said that the “situation on the ground in Zimbabwe is not as bad as portrayed”.

    Mugabe and his aides are subject to an EU travel ban that prevents him from travelling to EU countries.

    Navi Pillay, the UN human rights chief, last week urged Western countries to suspend sanctions against Mugabe and his close aides to give Zimbabwe a chance to implement much needed reforms.

    “I would urge those countries that are currently applying sanctions on Zimbabwe to suspend them, at least until the conduct of the elections and related reforms are clear,” she said in Harare after a five-day visit.

    “Sanctions should be entirely suspended for people to entirely focus on economic issues that need to be addressed.”

  • Rwanda Warns Non-State Actors on Regional Stability

    Rwanda’s Foreign Affairs Minister Louise Mushikiwabo has warned against reckless interference by non-state actors in the region.

    “We will not fall for all these provocations and so-called leaked reports designed to inflame tension and create conflict. Far from it. Rwanda and the DRC have been working even closer than before to resolve the situation in DRC.”

    Minister Mushikiwabo said that the government was aware of a new fundraising effort by Human Rights Watch who are planning to release another batch of recycled rumours designed to implicate Rwanda, and warned that the region is not a playground for non-state actors to play politics or raise money while fomenting violence and human suffering.

    “Who benefits from continued instability in the eastern DRC? Not the Rwandan people, not the Congolese people. The primary beneficiaries are the FDLR terrorists who feast on insecurity.

    But unaccountable actors like Human Rights Watch also profit from this by raising millions of dollars through the dissemination of simplistic reports based on the same old unverified reports and lies.”

    The Government of Rwanda warned Human Rights Watch and other non-state actors in the region against conduct that can result in human suffering, including more than one hundred women who have been raped by FDLR and other rebels who have taken advantage of the insecurity breach.

    “The irresponsible words of lobbies like Human Rights Watch are no less dangerous than bullets or machetes. We read today in the Guardian newspaper of killings and the disfigurement of dead bodies.

    Rwanda knows these tell-tale signs too well. These are the same forces who killed over one million people in Rwanda in 1994. We know their modus operandi. Their actions today carry a chilling ring of familiarity.”

    Minister Mushikiwabo said that the government of Rwanda understands that the stakes are too high for the region.

    That is why she has requested Roger Meece, UN Special Representative to the DRC to come to Kigali to explain why MONUSCO is spreading false rumours aimed at aggravating the volatile situation in Eastern DRC, undermining ongoing collaboration between Rwanda and DRC governments to manage insecurity and shelter refugees fleeing the conflict.

    “We are not involved in internal DRC political or military affairs. Allegations to the contrary have no basis in fact. Even the source of this week’s rumours has backed off them, admitting there is no evidence for any involvement by the Rwandan Government.”

  • Tanker Crashes Canadian Embassy Car

    An SUV belonging to Canadian mission in Rwanda has been crashed by a fuel tanker this morning at Gishushu near the traffic lights area along Airport road.

    The incidence happened at about 11AM 31st .

    The Crashed car REG: 18CD005R belongs to the canadian embassy was waiting at the traffic lights when a fuel tanker REG:RAB 341 H arrived from Remera side with failed brakes and crashed into the rear of the SUV.

    There were no major casualities however, the Car belonging to the canadians was being driven by an unidentified canadian woman and her child was in the passenger seat when the tanker crashed into their car.

    The mother of the child is currently in a state of shock and the child was not injured.
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  • New Marijuana Does not Stone People

    A new type of cannabis narcotic has been developed by Israeli scientists. They claim it is very simmillar to the natural type but doesn’t get people stoned.

    The new type may help those smoking marijuana for medical purposes as reported in Maariv daily on Wednesday.

    The new cannabis looks, smells and even tastes the same, but does not induce any of the feelings normally associated with smoking marijuana that are brought on by the substance THC, or tetrahydrocannabinol.

    “It has the same scent, shape and taste as the original plant — it’s all the same — but the numbing sensation that users are accustomed to has disappeared,” said Tzahi Klein, head of development at Tikkun Olam, the firm that developed the species.

    “Many of our patients who tried the new plant come back to us and say: ‘You tricked me,’” because they assumed they had been given a placebo, he said.

    According to Maariv, Tikkun Olam sought to neutralise the effect of the THC and to increase the effect of another substance called CBD, or cannabidiol, which has been shown to help diabetics and to ease various psychiatric disorders.

    Not only does it leave users stone-cold sober, it also doesn’t induce the munchies, the hunger pangs that the drug’s smokers generally suffer.

    Despite the innovation, it is unlikely to have any impact on Israeli law, which outlaws the use of marijuana as illegal except for medical purposes.

    According to figures published earlier this year by Sheba Medical Centre and the Israel Cancer Association, medical marijuana has been approved for use by about 6,000 Israelis suffering from various illnesses.

  • Rwandan Peacekeepers Saluted

    On 29th May was the United Nations Peacekeepers day,an occasion to salute the 120,000 peacekeepers serving in 17 missions in some of the world’s most volatile and dangerous environments.

    Rwanda’s Violette Kabatesi serving under UN in East Timor (UNMIT), Private Samuel Ntakirutimana and Cpl. John Twahirwa formerly in Darfour(UNAMID), and Sgt. Serge Kamari in Haiti (MINUSTAH) were honoured.

    Rwanda’s Ambassador to the Unite Nations, Eugene-Richard Gasana accompanied by Col. Vincent Nyakarundi attended the medalion function dubbed Dag Hammarskjöld Medal.

    This Day is also a time to mourn fallen peacekeepers. In 2011, 112 men and women died devoting their lives to peace. In the first four months of this year, another 27 peacekeepers have died while serving the United Nations.

    In his message the UN secretary General Ban KiMoon said, “ we honour the memory of the more than 2,900 peacekeepers who have lost their lives in the line of duty over the years, and we pledge to carry on their work to bring stability to war-ravaged countries.”

    The fallen peacekeepers came from many different troop-contributing countries, a poignant reminder of the global partnership that underpins United Nations peacekeeping.

    Currently,116 Member States contribute military and police personnel to our operations. This impressive number reflects growing global confidence in the value of United Nations peacekeeping as a tool for collective security.

    Moon noted that the new observer mission in Syria is the latest example that demonstrates how the international community looks to the United Nations for solutions to emerging challenges.

    The Mission is facing difficult challenges but serves bravely to help keep the parties, starting with the Government of Syria, to their commitments to cease the violence that has killed thousands of people.

    It is part of the larger UN efforts led by the Joint Special Envoy to end the violence and seek a political solution to the Syrian crisis.

    The ultimate goal of any UN peacekeeping mission is to no longer be necessary.Until we reach that objective, we make every effort for peacekeeping to be as effective and efficient as possible.

    “I am deeply grateful for every contribution of troops and police, as well as for the financial and material resources that make peacekeeping possible. I also thank all countries that provide political support and leadership.”

    Members of the Security Council, in particular, guide and strengthen our work by establishing mandates and updating our deployments to respond to changing conditions on the ground.

    Regional organizations play an increasingly important role. The African Union and the United Nations, for example, are working closely together in Darfur and Somalia while jointly addressing the threat posed by the rebel Lord’s Resistance Army.

    These partnerships help give UN peacekeeping the flexibility it needs to address today’s wide-ranging challenges to international peace and security.

    Moon also said, “let us remember the sacrifice of those who have served, and let us pledge to strengthen the global partnerships that make our blue helmets a beacon of hope to millions of people around the world”.

  • Infrastructure Investments to Attract More FDI to Africa

    As Africa’s infrastructure development to the private sector catalyse economic growth and attract substantial foreign direct investment, the founder of Africa’s largest private equity firm said yesterday at the World Economic Forum on Africa 2012 in Addis Ababa, Ethiopia.

    “Africa today is where China was 30 years ago. It is a continent of 1 billion consumers, with the right demographics and abundant natural resources. Governance in Africa has been the catalyst of the positive change in investor interest,” said Ahmed Heikal, Chairman and Founder of Citadel Capital, the leading private equity firm in Africa and the Middle East with US$ 9.5 billion in investments under control.

    “Africa’s share of global FDI remains small at 4.35% of global activity. The infrastructure investments necessary to support what will become the world’s largest workforce by 2040 will see this figure climb substantially in the years ahead. Economists have demonstrated that over the last 30 years, infrastructure investments accelerated the annual growth convergence rate by over 13 percent in Africa.

    This has attracted foreign investment that has helped create 1.6 million new jobs in Africa in the last eight years alone,” Heikal said at a discussion entitled ‘Accelerating Infrastructure Investments.’

    He added, “Infrastructure spending in Africa currently clocks in at just over US$ 45 billion a year against needs of more than US$ 93 billion. Scaling private investment in regional infrastructure projects will help in facilitate trade and transport across national boundaries, create integrated energy markets, particularly power pools, support regional water resources management and spark national economic growth.”

    Across Africa, lack of investment in rail infrastructure means that transport costs are higher than anywhere else in the world. As a result, the cost of overland transport stands at as much as 50% of the sales price of goods in landlocked countries such as Uganda, Rwanda and Malawi.

    Citadel Capital estimates that an efficient rail network could, in time, bring East African transport costs down by as much as 35% due to the operational and fuel efficiency of shipping by rail.

    “The result of under-investment in infrastructure is clear across Africa: Hundreds of millions of citizens and businesses do not have reliable access to electricity. Our road, rail and port infrastructure is not a continent-wide network, but a patchwork of isolated national and sub-regional assets.

    Intra-regional trade stands at just 9% of total trade in Africa versus nearly 50% in emerging Asia, and our global exports lag far behind our potential,” Heikal said.

    He pointed out that despite this stark brake on growth, six of the ten fastest growing economies in the world in the 10 years to 2010 were in Africa, and seven of the ten fastest growing in the period 2011-15 will be on this continent.

    He referenced IFC’s recent comments that 21 African nations were home to investable private equity opportunities in 2011 versus just one — South Africa — a decade ago.

    “Our infrastructure investments are about creating solutions,” Heikal pointed out. “They are revitalizing the national railway of Kenya and Uganda. They are eliminating Egypt’s reliance on diesel imports while simultaneously preventing the release of nearly 180,000 tons of sulfur dioxide each year.

    They are easing road congestion and reducing emissions by shifting transport off highways and onto un-used water ways and railways as part of a network that will link the Mediterranean port of Alexandria with the port of Mombasa.

    They are ensuring food security in South Sudan and Sudan. They are distributing natural gas and electricity to households and industry alike. They are turning waste into energy for industry. These are textbook examples of how private equity can both catalyze growth and help meet the aspirations of more than 1 billion Africans.”

    Citadel Capital raised equity and debt of nearly three quarters of a billion dollars in 2011 for its 19-platform companies. The lion’s share of this sum was raised from leading international institutional investors for investment in African infrastructure, including US$ 234 million in equity and debt raised for Rift Valley Railways (RVR), the national railway of Kenya and Uganda, as well as additional sums committed to Nile Logistics, the Egyptian Refining Company and solid-waste platform Tawazon.

    Two rounds of investment for RVR in 2011 helped Kenya close the year atop Deloitte’s league table of top destinations for private equity investment in East Africa.

    A private-sector led approach to structuring infrastructure investments, the Citadel Capital Chairman emphasised, provides governments with a unique opportunity to both revitalize existing assets and build new infrastructure.

    Citadel Capital was recently named the largest private equity firm in Africa by Private Equity International in its PEI 300, the annual benchmark ranking of global private equity firms, marking the fourth consecutive year that the firm has been named the largest in Africa.

  • MTN Mobile Money Extends to Diaspora

    MTN Rwanda and MFS Africa today announced the launch of an online money transfer service that enables MTN Mobile Money customers to receive international remittances directly on their mobile phones.

    The service referred to as MTNMMO.COM is an online facility that enables MTN Mobile Money customers in Rwanda to receive international remittances directly on their mobile phones from senders in the Diaspora.

    MTN Rwanda is among the first MTN operations to connect to this service. The service is also being rolled out across multiple MTN Mobile Money countries currently including Cote d’Ivoire. Other MTN Mobile Money operations including Cameroon and Ghana will join the service during the year,

    How does ‘MTNMMO.COM’ work?

    Senders from outside Rwanda can register on the website MTNMMO.COM and send funds from their debit card or bank transfer via the internet to Rwanda by simply entering a beneficiary’s mobile phone number.

    Funds are delivered immediately to the beneficiary’s Mobile Money account in Rwanda at attractive price levels. While Mobile Money customers today can already send and receive money from within Rwanda, the MTNMMO.COM service for the first time enables cross-border transfers into MTN Rwanda.

    The ‘MTNMMO.COM’ service in Rwanda is facilitated by MFS Africa, in partnership with BCR (Banque Commerciale du Rwanda Ltd).

    According to Albert Kinuma, Head of MTN Business, “Making the connection to MTNMMO.COM to enable international remittances together with MFS Africa was high priority for us to better serve our customers, understanding their need to use their Mobile Money accounts to receive money from abroad.

    We are thankful to the Central Bank of Rwanda for allowing us to launch this groundbreaking service for the benefit of the Rwanda population.”

    “We will continue to add new services to MTN Mobile Money, and grow our agent network, now standing at over 700 agents across Rwanda. With MFS Africa as a partner, we look forward to introducing additional products to Mobile Money in the near future, he added.

    Auke Algera, the General Manager East Africa at MFS Africa said MTNMMO.COM is the first product being launched in Rwanda by the company.

    “The service extends the benefits of Mobile Money to the Rwandan Diaspora. Long travelling times and uncompetitive remittance costs are now a thing of the past. We established ourselves in Rwanda because we are committed to deploying a range of innovative financial products for mobile money providers in the region,” Algera said.

  • Hon. Kantengwa Elected 4th Vice-President of Pan-African Parliament

    A Rwandan legislator Juliana Kantengwa has been elected the Fourth Vice-President of The Pan-African Parliament (PAP) based in South Africa.

    Hon. Kantengwa beat other contenders to take the post to represent the Eastern African Region, a Kenya Member of Parliament with 89 votes over 59.

    Rwanda’s high commissioner to South Africa, Vincent Karega, said Madame Kantengwa’s vote reflects the trust Rwanda has won overtime among countries.

    Together, other five Members will form the Bureau of the Pan-African Parliament, during its Third Parliament, which will extend for a period of three years.

    The Pan-African Parliament was established in March 2004, by Article 17 of The Constitutive Act of the African Union, as one of the nine Organs provided for, in the Treaty Establishing the African Economic Community signed in Abuja, Nigeria, in 1991.

  • Taylor to Remain in Jail for 50 Years

    Charles Taylor has been sentenced to 50 years in jail. A UN-backed war crimes court sentenced the former president of Liberia Wednesday for arming Sierra Leone rebels in return for “blood diamonds”.

    “The trial chamber unanimously sentences you to a single term of imprisonment for 50 years on all counts,” said Special Court for Sierra Leone judge Richard Lussick at the court based just outside The Hague.

    “The accused has been found responsible for aiding and abetting some of the most heinous crimes in human history,” said Lussick.

    Taylor, 64, dressed in a smart dark suit, white shirt and golden tie, listened with his eyes closed and a drawn face as the judge handed down the sentence, which Taylor can appeal.

    The former president was convicted on April 26 on all 11 counts of war crimes and crimes against humanity for aiding and abetting Sierra Leone’s Revolutionary United Front (RUF) during the country’s 1991-2001 civil war.