Magazines and Newsletters

INVESTORS BET ON RWANDA - Pg 12
NOT
FOR
SAL
April-June, 2007
http://www.kenyarwandabiz.org
Edition 01
EAC GROWS
Regional bloc opens the door for Rwanda and Burundi
GOING WILD
Tourists flock in despite travel advisories -Pg 20
SCIENCE
Rwanda shows the way to boost funding - Pg 28
ECONOMY
-Pg 30
China woos Africa
www.ey.com
CONGRATULATORY MESSAGE
Ernst & Young congratulates the Kenya-Rwanda Business Association (KRBA) on the official launch of its East Africa Business Focus Magazine
We are proud to be associated with KRBA in promoting investment in East and Central Africa.
Kenya Kenya-ReTowers Upperhil Off Ragati Road P O Box 44286 00100 Nairobi, G.P.O Tel: +254-20-2715300 Fax: +254-20-2716271 Mob:+254-0735-995500
Uganda Ernst & Young House 18 Clement Hill Road Shimoni Office Village P O Box 7215 Kampala, Uganda Tel: +256-41-343524 Fax: +256-41-251736 Mob: +256-752760082
Rwanda Rugigana House Avenue de la Paix P O Box 3638 Kigali, Rwanda Tel: +250-572634 +250-572528 Fax: +250572557 Mob: +254735994400
Tanzania Ernst & Young IPS Building, 6th & 7th Floors Azikiwe Street P O Box 2475 Dar es Salaam, Tanzania Tel: +255-022-2667368 Fax: +255-022-2666948 Mob: +255-0784780334
The Ernst & Young offices mentioned above are all members of Ernst & Young Global.
Contents
6 9 10
Cover Story Feature
Partnering for the future Rwandese delight Mumias stirs sugar market
Investors bet on Rwanda
12
Agriculture
Investment
36 14 16
Trade
Taking Stocks
Kenyas changing skyline Tips on building a successful team
Construction
Management
23 30 20 26 28
The land-locked nation is a virgin territory with high potential for growth
Trade ties that bind China woos Africa
30
32 34 38
KRA tightens noose on tax cheats All that gliters ... Six Business Blunders
China woos Africa
Going Wild Giving a home and a future Time for experiments
Tourism Charity
Tax
Counterfeit Life Skills
Science & Technology
17 Exporting ideas
Kenyas Export Promotion Council forms crucial link between exporters in Kenya and the available business opportunities
Since Narc took over power in 2002, it has embarked on policies that focus on economic development, building and rehabilitating infrastructure and creating employment. President Hu Jiantao
Kenya Rwanda Business Association opens new chapter
25
East Africa Business Focus April - June, 2007
Editorial
Expanding New Horizons

Publisher Kenya-Rwanda Business Association Editor Florence Mukiebe Consulting Editor Stephen Sirma Revise Editor Peter Sibomana Contributors Jacques Kamazi, Njonjo Kihuria, Francois Makasi Marceline Nyambala and Kimani Chege and Newton Mutuma Production Assistant Sheila Mbiti Pre-Press Services David Mwangi Photos PPS Kenya, Douglas Otieno Advertising/Sales Inforkomm Media Services Contact person: Clifford Nturibi P.O. Box 16352-00100 Nairobi, Kenya Tel: +254 20 2733209 / 2734484 Email: ideas@inforkommmedia.com Distribution Kenya Lilian Muli KRBA Kenya Office P.O. Box 44286-00100 Nairobi, Kenya Tel: +254 20 607154 Rwanda KRBA Rwanda Office P.O. Box 6627 Kigali, Rwanda Tel: +250 08302001
East Africa Business Focus is published quarterly by Inforkomm Media Services on behalf of the Kenya Rwanda Business Association. Views expressed in this publication are those of the authors and do not necessarily reflect the position of the publishers. Copyright 2007 East Africa Business Focus. All rights reserved. Material may be reproduced if prior arrangement is sought and with acknowledgement of East Africa Business Focus magazine.
n Africa, the birth of a child brings joy not only to the family in which it is born but also to the larger society.This is the joy we feel as the Kenya Rwanda Business Association (KRBA) members as we launch the Kenya Chapter of our association and at the same time unveil the inaugural issue of our magazine, East Africa Business Focus. The magazine, to be published four times every year, will highlight issues affecting businesses in the region with a view to helping promote best practices in business and promote growth of trade in the region. A new-born child is easily integrated into the society in which it is born. It is our hope that EA Business Focus and KRBA, will be accepted by the business community and professionals in the region. The magazine and the association present a forum for members and the larger business community to learn from each other for the better management of their respective businesses and overall growth of economies of our nations. For us to realise growth in our businesses, there must be good governance, a principle that has been a focus of our governments in the region, hence the visible growth of our economies. I would like to challenge businessmen to take advantage of the conducive investment environment and explore the various business opportunities in the region to further expand our horizons. I would also like to invite those who havent joined the Kenya Rwanda Business Association to do so because as the saying goes, there is strength in numbers. We need to form a strong team of business people that can lobby regional governments on issues affecting business development, a function we hold dear. For the members of the association, this has been a long journey ever since the idea of a business club was floated. From recruiting new members to the Kigali launch of the Rwanda Chapter of KRBA in October last year, members have put so much effort to make this association a success. And their efforts are bearing fruits. From the point at which KRBA was just an idea, the association has grown to a level where there are members from various professions and businesses represented either as individual or corporate entities. What remains for these members is to actively be involved in various activities that the association hopes to engage in, including workshops, training and interactions with other business associations in order to improve our ways of doing business. As an association, we promise to provide timely and accurate information geared towards promoting ideal business opportunities in the best interests of our members. And in what other better forum than through our magazine! Let us all support this initiative and let us know your views by writing to us. Explore!
Chairman KRBA
April - June, 2007 East Africa Business Focus
Cover
Partnering for the

The expanded East African Community leaders move to tighten ties to increase prospects of trade and open investment opportunities for their citizens
By EABF Correspondent
hen Rwanda and Burundi joined the East African Community last November, the region crossed a major milestone. The move now expanded the community to five nations. This substantially increased prospects of trade and opened more investment opportunities for citizens in the region. The inclusion of the two countries was endorsed at the EAC heads of State summit
chaired by Kenyas President Mwai Kibaki. Rwanda and Burundi, which neighbour each other, had been seeking to join the bloc since its relaunch in 1999. This decision opens a new chapter in our cooperation, Tanzanian President Jakaya Kikwete told an EAC summit in Arusha. I congratulate Rwanda and Burundi for joining our family of EAC members. It was President Kikwete who broke the news to members during a plenary session at the summit, which was also attended by
Story
From Left to Right: President Amani Karume of Zanzibar, President Paul Kagame of Rwanda, Ugandan President Yoweri Museveni, Kenyan President Mwai Kibaki, Tanzanian President Jakaya Kikwete and President Pierre Nkurunziza of Burundi in a past EAC summit in Arusha, Tanzania
future
the presidents of Rwanda, Burundi, Uganda and the semi-autonomous Tanzanian island of Zanzibar. You have joined a vibrant community with a lot of prospects, President Kibaki said at the end of the one-day summit.
Size matters
For President Yoweri Museveni of Uganda, the large size of the regional body matters a lot. According to him, it will make its market attractive to the world. A functional common
market is currently emerging in the region backed by agreements on tariffs across the countries borders. Rwandas President Paul Kagame expressed his countrys readiness to play an active role in the development of the regional economic and political bloc. Initially, EAC had only Kenya, Uganda and Tanzania as members. Over the last one year, the three countries have been campaigning to transform the region into a political federation. The community agreed on a customs union last
year and plans to launch a common market for its population of about 90 million by 2010. They also plan to have a monetary union by 2009 and a common president and parliament by 2010. At present, its most active institutions are its secretariat and customs union, but it also has a regional court and Parliament.
Divergent views
The first attempt at East African Cooperation ended in 1977 because of the three partners widely divergent political and economic
Cover Story
Regional market expands

thinking. The predecessor of the current economic bloc was formed soon after independence from Britain in the early 1960s. Leaders of the three countries agreed that the region would be stronger operating as a single economic unit and ultimately a political federation. The three founder member states of the relaunched bloc had earlier said that Burundi would not qualify for membership unless it held democratic elections and tackled the insecurity that had plagued it during a civil war that killed 300,000 people. Rwanda and Burundi had applied to join the economic community to boost regional trade. Their applications had not been acted on for several years as the original members worked to get the five-year-old organisation on its feet and set up a customs union that sets common duty rates for imported goods among the countries. Things have since changed for the better. Had Rwanda and Burundi not maintained peace and stability, Kenya, Uganda and Tanzania would have automatically turned down their application to join the bloc. But when they were admitted to the fold, the two countries became the first French speaking EAC members, making the bloc bilingual. Donors now support the government of Burundian President Pierre Nkurunziza, who was elected in 2005. The new administration has been trying to boost the countrys fragile economy after 12 years of conflict. Rwanda, too has been struggling to rebuild its economy which was shattered after the 1994 genocide in which 800,000 people were killed in three months. The small landlocked country in the Central Africa borders Uganda in the north, Burundi in the south, Tanzania in the East, and the Democratic Republic of Congo in the west. It is the most densely populated country in Africa with a population of eight million people and a total area of 26,338 square miles. More than 90 per cent of the population lives in rural areas.
Over 18 million consumers join East African Community as Rwanda and Burundi are admitted
Rwanda is a land of great diversity and beauty. Popularly known as the land of a thousand hills, it has six volcanoes, 23 lakes and numerous rivers, some forming the source of the great River Nile.
Beauty
More women
The country has more women than men. Women account for 54.3 per cent of the population, with 34 per cent of them heading homes and 92 per cent involved in subsistence farming.
Landscapes in this green country are breathtaking. Many a visitor to Rwanda has remarked that the physical beauty of the country is without equal on the African continent. Spectacular volcanoes and dense tropical forests dominate the north of the country, while gentle hills and valleys, calm lakes and turbulent rivers dominate the rest of the country. Burundi on the other hand, occupies a high plateau divided by several deep valleys. It is rich in natural resources that include a variety of minerals. However, the society is largely agricultural. Besides the EAC, Burundi, Kenya, Rwanda, and Uganda are members of the Community of East and Southern African States (Comesa). Formed in 1994, the Comesa bloc has 20 members but Tanzania withdrew in 2000, citing trade imbalances with member states.n
Feature
Rwandese delight
Cathy Kamau was a delegate to the KRBA launch but ended up as a part-time tourist. Here is her take on life in Kigali
wanda is fondly referred to as the land of a thousand hills thanks to its beautiful mountains and the world-famous mountain gorillas that attract thousands of tourists into the country every year. Mine was not a tourist expedition but it turned out to be. As a delegate from Kenya to witness the launch of the Kenya Rwanda Business Association, Rwanda Chapter, I was overwhelmed by the hospitality of the Rwandese. I must say I was a bit apprehensive before the safari because the only stories I had heard or read about this tiny African country was the 1994 genocide and I wondered what to expect upon arrival. To my surprise, the people of Rwanda turned out to be so welcoming to visitors. No sooner had we disembarked from the Rwandair Express flight than we were suddenly dazzled by the beauty of the hilly land. And as it turned out, the hospitality we had experienced on board the flight to Kigali was not just a professional courtesy. It reflected the warmth and friendliness of the Rwandese. Checking in was swift and efficient. We were promptly informed that we would not need to buy local network sim cards, since our hosts, KRBA-Rwanda Chapter, had some ready for us at the hotel. What a pleasant surprise! Our rooms at the Hotel Des Mille Collines were beautiful and clean. But this was not just another hotel. It was the Hotel Des Mille Collines which starred
Checking in was swift and efficient. We were promptly informed that we would not need to buy local network sim cards, since our hosts, KRBARwanda Chapter, had some ready for us at the hotel. What a pleasant surprise!
recently in a box office hit movie, Hotel Rwanda. Soon after settling in, our hosts were threatening us with a hectic agenda of fun-filled activities starting with a cocktail hosted by the Kenyan ambassador to Rwanda, Amb. Alex Keter, and his gracious wife. The ambassador and his wife made us all feel quite at home, with some Kenyan business people with businesses in Kigali also present at the party. Between moments of bonding and laughter, we were introduced to various Rwandese business people. Later that evening, we ended up at a nyama choma joint eating Kenyas favourite dish with an assortment of condiments. It surely felt like home. Then off to sleep we went, preparing for Day Two. Two winks and it was sunrise! Time for breakfast and the
business presentations. The presenters knew their stuff and took us through the paces painlessly before we took off for a round of golf in the afternoon. The Golfers (and non-golfers too) quickly got into their vans and off we went to Nyarutarama. The golfers could hardly wait to tee off with their Rwanda counterparts. As for the non-golfers, we had all the time in the world. We sat and ate mshkakis (skewered meat) and got to know each other. Before we could say the 19th hole, it was evening and time to go back to our hotel to spruce up for the KRBA launch dinner. We were shown to our respective tables, and conversation was soon humming around the ballroom. This was the business that brought us to Rwanda in the first place, but there was much more besides. But that is a story for another day. n
Agriculture
Mumias stirs sugar market

Leading miller has come a long way. Besides trying its hand in energy production, it is also seeking to become king of the sweetening industry. But how did it all start? Njonjo Kihuria traces the roots of the firms success
he year was 1967 and the Government of Kenya was exploring the possibility of growing cane in Mumias area ruled by a king before the colonial era. To achieve its goal, it commissioned Booker Agriculture and Technical Services (now Booker Tate) to carry out a feasibility study. At the time, the area was underdeveloped. Land was not being put to good use as farmers grew food crops on small portions while the rest of their land was idle. The relative remoteness of the area and poor communication network prevented the growth of a vibrant market economy. However, land in the area had been subdivided and farmers given freehold title deeds, which favoured the proposed sugarcane project. After Booker experts completed their studies, they had one verdict: The proposed project could take off. According to them, it was possible to set up a viable sugar scheme. The factory would
be supplied with cane from its nucleus estate and the outgrower farmers from nearby areas. The Government accepted these findings and on July 1, 1971, the Mumias Sugar Company was incorporated. The Government was to hold majority shares (71 per cent) while the Commonwealth Development Corporation had 17 per cent. The Kenya Commercial Finance Company had a five per cent stake while Booker McConnell had four per cent and the East African Development Bank three per cent. Some of the key objectives of setting up the company were to provide income for farmers and create job opportunities since there was no major industrial undertaking in the area at the time. This was expected to prevent rural-urban migration, reduce overdependence on importation and aim for self-sufficiency in sugar production. The company was also expected to operate on a commercial basis and make profits. The first bag The original factory had a milling capacity of 80 tons of cane per hour (tch), which translated to 45,000 tons of sugar per year. The first bag of sugar rolled from the conveyor line on July 1, 1973, just a year after the factory was built. The factory had a provision for expanding its crushing capacity to 75,000 tons of sugar per year. It was originally intended to implement this expansion during the 1978/79 financial year but owing to its good performance, the Government brought forward the programme to 1975/76. Milling at 125 tch rate began in July, 1976. Improved performance encouraged the
Mumias Sugar MD, Evans Kidero

Government to consider further expansion to between 170 tch and 300 tch. Following a decision to expand to 300 tch, there was need to build a new factory to meet the new demand. In August, 1976 contracts for the supply of equipment and construction of the factory were signed and government approval obtained during the 1979/80 financial year. Work on the new factory was completed in early 1985 giving Mumias a potential capacity of 210,000 tons of sugar per year. The construction was financed mainly by loans from the Commonwealth Development Corporation amounting to 3.25 million sterling pounds and a further 19,720,000 million sterling pounds from the National Westminster Bank. The new factory design capacity was reached and surpassed for the first time in 1986/87. From then on, production stabilised at between 210,000 and 220,000 tons of cane per year. Production increased every year save for a brief interruption in 1982 when low cane
The relative remoteness of the area and poor communication network prevented the growth of a vibrant market economy. However, land in the area had been sub-divided and farmers given freehold title deeds, which favoured the proposed sugarcane project
10
Agriculture
yields affected supply until 1986/87 when the situation improved. During the first year of sugar production in 1973, Mumias produced 20,891 tons from 194,217 tons of mill cane. In 1993, the Government signed the COMESA Treaty, which allowed free trade among member countries, and this opened a floodgate for imported sugar affecting local sales, which then were being carried out by the Kenya National Trading Corporation. The move immediately sent the government to the drawing board and it came up with a privatisation programme that saw Mumias Sugar sold to the public in 2000. Currently, the company is listed on the Nairobi Stock Exchange (NSE). In December 2006, it stirred up the stock market when it sold more shares to the public through a second share offering. The shares were gobbled up but the prices have been declining from about Sh50 at the time to Sh32 in February and March, 2007. During the 2005/2006 financial year, Mumias Sugar posted an after-tax profit of Sh1.52 billion compared to the previous year when it posted Sh1.28 billion. This reflected an increase of 18.3 per cent over the previous year. Closer to customers The company is supplied with cane from its nucleus estate and local farmers who have contracts with the company under the Mumias Outgrowers Company (MOCO). The company provides contracted farmers with inputs on loan, supervision and extension services. Mumias Sugar also accepts raw cane from farmers. To ensure that the cane is of the highest quality, the company recruits farmers, supplies inputs and services on loan, for instance ploughing, harrowing, furrowing, provision of seed cane and fertiliser. It also provides supervision and extension services, besides harvesting and transporting the cane once it matures. To educate cane farmers, the company organises educational programmes, public meetings, seminars, field days, farmers education days and field demonstrations in collaboration with relevant government ministries and other relevant service providers such as the Kenya Sugar Research Foundation, the Ministry of Agriculture and the Provincial Administration.
Brown sugar Mumias Sugar provides 60 per cent of Kenyas sugar through appointed distributors countrywide. The company also exports some of its sugar to international markets mainly in the European Union. Last year, it exported 20,000 metric tons of brown sugar. Mumias aims to live on as the market leader. This is a drive that can only be achieved by giving its customers what they want the way they want it. The firm has also introduced brown and white sugar to carter for emerging preferences among tea consumers in the region. The sugar is sold in varying quantities to fit the pockets of both the rich and the poor. Besides sugar production, Mumias has ventured into other avenues including generation of energy. It is investing $35 million in the project. Once completed, Mumias will have the capacity to produce 35 megawatts of
electricity, of which 20 megawatts will be sold to the Kenya Power and Lighting Company. Other areas under consideration include power alcohol through production of ethanol from sugarcane for the motor industry. Besides, it has a bursary scheme through which the 20 top KCPE candidates 10 of whom must be children of company employees and ten of farmers contracted to the company are awarded four-year bursaries to study in secondary schools. Mumias is also involved in environmental conservation. Last year, it distributed six million seedlings to cane farmers, women and youth groups, schools and other public institutions. The company is piloting the Nzoia River Basin Management Initiative aimed at conserving Nzoia River, which is the lifeline of the area residents - from Cherengani Hills to Budalangi in Busia District.n
11
Investment
Investors bet on Rwanda

The land-locked nation is a virgin territory with high potential for growth, says investment chief
By Florence Mukiebe
T
12
he World Banks revelation that it is easier and faster to start a business in Rwanda than in neighbouring countries might have attracted the attention of hawk-eyed Kenyan investors. Many of them travelled to Kigali to witness the grand launch of the Rwanda chapter of the Kenya-Rwanda Business Association (KRBA) last October. But why did Rwanda receive this verdict from the World Bank? Since the end 1994 genocide, the landlocked nation has been attracting goodwill from the international community and has much going for it. According to World Bank ratings, the country tops the region on good governance and has the lowest level
of corruption. It has a strong leadership committed to encouraging the businesses to thrive. It also gives various incentives to lure investors. These include free residence and work permits and duty free importation of raw materials and machinery among others. There are other economic milestones such as high economic growth - with an average rate of six per cent; single digit inflation and a stable currency operating in a free exchange rate regime. All these are bound to attract investors. Investment opportunities are to be found in exports, large-scale farming, industrial processing, building of greenhouses and cold storage facilities, production of packaging materials and farm inputs such as fertilisers and pesticides. According to Clare Akamanzi, the
deputy director of Investment at the Rwanda Investment Promotion Authority (RIEPA), almost all sectors of the economy have been growing steadily over the last five years. Fruit and vegetable production has increased tremendously, creating potential for export. This is a good sign considering that agriculture commands 46 per cent of the countrys GDP, with the main exports being tea and coffee. Addressing KRBA members at the Rwanda Chapter launch, Ms Akamanzi also stressed her governments commitment to develop its information communication technology (ICT). However, access to the internet and other fields of communication is still low. But for investors, this is a ripe opportunity as they are encouraged to tap into this fairly underdeveloped but
Investment
Rwandas untapped resourses

emerging market. ICT also presents a unique opportunity for Rwanda to overcome conventional development obstacles and benefit from the rapid growth of the global knowledge economy. To many foreigners, Rwanda is known for the 1994 genocide. Because this perception of the civil war is still strong, the good in the Rwandese people and the suitable environment for investment offered by the country can easily go unnoticed. However, the country has made significant progress in rebuilding its economy and social infrastructure. Organisations like RIEPA were set up to speed up Rwandas economic growth. The agency is the flagship of Rwandas investment and export promotion programmes and a key cog in the economic development wheel. Apart from facilitating the approval and licensing of new investment projects and managing the incentives given to investors, RIEPA also initiates investment promotion activities and seminars to sensitise the international business community on the opportunities available in Rwanda. According to RIEPAs Director General, William Nkurunziza, Rwandas uniqueness and attractiveness lies in the fact that it is a virgin economy, untapped and full of potential. For the discerning investor, Rwanda represents the virgin territoryevery sector from agriculture to Information Communication Technology, from tourism to manufacturing, from mining to financial services abounds with opportunity because little has happened in all of them, says Nkurunziza. Indeed, in areas like the financial sector, only seven per cent of the eight million Rwandese have opened bank accounts. Firms in the insurance industry also lack the capacity to cover large projects. This leaves a large segment of the population and businesses unattended and the market unexploited. But with the attractive investment incentives and the growing spirit of the regional cooperation, perhaps investors should consider casting their nets wider as Rwanda beckons. n
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13
Construction
Kenyas changing skyline

Growing economy sparks construction boom across the country
By Newton Mutuma
K
14
enya is on its way to becoming a concrete jungle, thanks to the boom in the construction industry. One hardly passes through any town or shopping centre without noticing commercial and residential buildings going up as though reaching for the sun. Economic experts had predicted a growth rate of 5.2 per cent in this financial year but
this can even be higher considering the high rate of the upcoming constructions in the housing sector and the huge allocations in the roads sector, says Victor Musumba, an economist in Nairobi. However, a surprise increase in the cost of construction materials towards the end of last year caused jitters within the industry. Kenyas construction industry offers great prospect particularly for manufacturers of building material and low-cost building methods.
It is also good news for cement manufacturers and suppliers since the demand for the primary product in construction has gone up. Real estate agents in Nairobi say that most entrepreneurs are cashing in on the boom more than ever before.
Ready market
We have been doing well especially from 2004 and getting better. I believe there is more to come our way since there is a ready
Construction
Construction boom
market either for purchase of houses or rentals, says Barnabas Njaga, a real estate developer in Nairobi. And Erastus Mbakigane adds: This growth is an indication of the economic boom being experienced in the region. Mbakigane is a Ugandan civil engineer working for a major construction company in Upper Hill, Nairobi. Records from the Central Bureau of Statistics (CBS) indicate that the industry experienced tremendous growth in 2005, with cement consumption rising from 1.4 million tonnes in the previous year to 1.6 million tonnes, representing an increase of 10.9 per cent. Consumption in June 2006 rose by a further 8.1 per cent to 654,565 metric tonnes from 605,571 metric tones over the same period in 2005. There has also been an increased budgetary allocation to the road subsector and tax incentives contained in the 2006/2007 Budget. The incentives include making cost of constructing selected buildings income tax deductable and industrial building allowance of 10 per cent for educational buildings. A remarkable economic upsurge has been recorded on the continent and particularly in Eastern Africa. In Rwanda, building and construction pundits say growth has been spurred by an urge to rebuild the country that is recovering from a genocide that claimed almost a million people from its population and brought the economy to a complete standstill. Rwandas real estate sub-sector is skyrocketing with many investors flocking into the country especially from the East African region, says an official at the Kenyan Embassy in Kigali, Rwanda. Another market opened up is the Southern Sudan after the signing of the peace accord between the South and the Khartoum government. The Comprehensive Peace Agreement restored peace in the oil rich region, paving the way for construction activities that are now in full gear. A
spot check at the major towns of Juba and Rumbek areas reveals a high rate of construction especially in the housing and roads sub-sectors. Most of the roads, which were either nonexistent or dilapidated are being financed by donors such as the European Union and their completion is underway. Companies working on these projects are mainly from Kenya and Uganda. However, the cost of housing is still high since most rental establishments are privately owned. Currently, accommodation in Southern Sudan is a nightmare. Visitors in the now relatively calm region are either forced to pay dearly for the few existing lodgings or have to hire tents, which cost up to $150 per night, excluding meals.
Renewed growth
The renewed growth of Kenyan cement factories attest to growing regional construction industry. One such beneficiary is East Africa Portland Cement which has experienced a turn-around from a loss-
making state corporation to a profit-making enterprise. After Narc took over government, its leaders vowed to revamp moribund state corporations or to close them down altogether if they failed to perform efficiently. One beneficiary of revival was East Africa Portland Cement. The firm attest to how State corporations can be valuable channels of spurring growth as it managed to trade in the gown of mismanagement for one of efficiency, excellence and achievement. Portlands growth has been spurred by the opening up of new markets in the region. It was among the first cement manufacturer to pitch camp in Southern Sudan, competing for the market share with others from Egypt and Uganda. The company has established a warehouse in Juba and Rumbek, which has contributed to a fast and effective supply of the commodity. It is now seeking to venture into new markets in the region such as Yei, another upcoming major town.n
15
Management
Tips on building a successful team
any people wonder how business powerhouses like that of Donald Trump or Warren Buffet have made it. The fact is they just do what you dont. One of the important skills for leaders to master is the ability to recruit high-potential talent into the organization. Recruiting shouldnt be reactive performed only when you have an opening
on your team. It should be an ongoing activity so that your pipeline of candidates is full and you can start interviewing shortly after a need has been established. Follow these tips to make the most of your efforts: l Look to your existing employees for a promotional opportunity, first. You should always look within the organization before you consider external candidates. Reward
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employees who are actively developing their skills and are loyal to the company. Is there someone who is ready to take on new responsibilities? l If you are an active member of your professional community, start building a rapport with prospective candidates. Recruiting is a lot like marketing the more positive contact you have with prospects, the more receptive they will be to talking to you about making a move to your organization. Keep in contact with those you would like to have on your team one day. l Build a reputation as a strong leader. This is one of those times when you want your reputation to precede you. If you are known for being a great leader, candidates will want to work for you. Year after year, lack of opportunity is cited as one of the main reasons for employee turnover. Judicious candidates know that their manager can make or break that opportunity and they make their decisions accordingly. l Dont be intimidated by dynamic, highpotential candidates. Instead of worrying about someone taking over your job, think about who could potentially replace you when you move on to a bigger role. l Avoid the temptation of hiring someone just like you. It is great when you have a connection with a candidate, but try to remember that you arent hiring someone to be your friend. Instead, look for someone who will complement your teams strengths and weaknesses. l Select candidates who are passionate about their work. Passion is difficult to ascertain during an interview. However, there are signs you can look for and questions you can ask to better determine if this is someone who is passionate about their work. Stop settling for mediocrity. Dont be afraid to hold off on making a selection decision until you have the right candidate. Get creative in the way you manage your employee shortage. Consider redistributing the duties on your team and hiring a temporary administrative employee to take up the slack. This is a great time for your employees to gain additional experience. n Adapted from Jill Franks book, Top 7 Skills of Building a Successful Business Team
16
Trade
Exporting ideas
Council forms crucial link between exporters in Kenya and the available business opportunities
enya is essentially an agricultural economy mainly driven by horticulture and cash crops such as coffee and tea. However, tourism also plays a key role in the economy and is increasingly becoming a key income earner. Since Narc took over power in 2002, it has embarked on policies that focus on economic development, building and rehabilitating infrastructure and creating employment. But even before this, the ongoing liberalisation of the economy that was initiated over 10 years ago by Kanu has laid the groundwork for an investment-friendly environment in Kenya. The government has also taken various steps to create enabling environment to encourage both foreign and domestic investment in line with the economic recovery strategy programme. The economic recovery strategy hopes to achieve an eight per cent growth rate annually and help Kenya become a newly industrialised country by 2025. This is a long-term vision for the economy and the success will depend on how the current administration of the day handles the process. Kenya is an important player in East Africa.
The country is strategically placed with a major port, Mombasa, where goods for the region land en route to their respective countries, including landlocked Rwanda, Uganda and Burundi. Kenya also has well developed financial markets, making it a hub for various services including transport banking and health.
Export promotion
One of the agencies helping the government to speed up economic growth is the Export Promotion Council (EPC), a premier institution in the development and promotion of export trade. Established in 1992, EPCs primary objective was to address bottlenecks that were facing exporters and producers of
export goods and services with a view to increasing the performance of the export sector. The council was set up to give an outward orientation to an economy that was hitherto inward looking. Over time, the EPC has embraced the mandate of co-ordinating and harmonising export development and promotion activities in the country and providing leadership to all national export programmes. Today, the council is the focal point for export development and promotion activities in the country. To ensure maximum impact, it has structured its operations to focus on various sectors of the economy. Six priority sectors, out of the 14 prioritised in the National Export Strategy (NES), have been identified for focus under this approach. They include horticulture
17
Trade
Exporting ideas
Horticultural products are a major export commodity in Kenya and other agricultural products, textiles and clothing, commercial crafts and SMEs, fish and livestock products, and services other than tourism. Each sector has a champion designated to drive agendas affecting the sectors in terms of product and market development, trade information needs; capacity enhancement and policy environment. The councils objective is to identify export market opportunities for Kenyan products and to formulate appropriate market entry and penetration strategies. The strategies used include contact promotion programmes, market research and investigations, trade fairs and exhibitions, buyer-seller meetings, trade missions among others. The main objective of product development is to facilitate the expansion and diversification of Kenyas export product range. This is achieved by assisting producers/exporters develop and adapt their products to suit specific market requirements through quality improvement, value added processing, improved packaging and presentation, new product design and styling, identification of new exportable products and adherence to industry codes of practice. The Council recognises that relevant, timely and current trade and market information is critical to the competitiveness of exporting firms. To address this identified need, Centre for Business Information in Kenya (CBIK) was established with support from the government and the European Union. This centre contains current and relevant information from credible sources, some of which include the ITC, World Trade Organisation (WTO), trade promotion organisations such as the Japan External Trade Organisation (JETRO), Centre for the Promotion of Imports from Developing Countries (CBI), among others. Information is accessible through print and electronic modes. In addition, CBIK has a library (reference centre),which is freely accessible to all. The Council looks at trade policy facilitation in relation to the growth and development of the export sector. This includes facilitation of the review of domestic and external trade policies in order to enhance the competitiveness of Kenyas export products. The Council develops skills and imparts knowledge on relevant topics to the exporting fraternity through seminars and workshops in collaboration with development partners such as JETRO, JICA, ITC, CBI and EU. Under this pillar frequent promotion of public awareness of the need for an export culture is disseminated through print and electronic media, export news and related fora. The EPC provides the right connection between exporters, importers and the available opportunities in the expanding economy. n Additional materials from EPC website. http://www.epckenya.org
The strategies used include contact promotion programmes, market research and investigations, trade fairs and exhibitions, buyerseller meetings, trade missions among others
18
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19
Tourism
Going Wild
By Florence Mukiebe
frica has been experiencing a tourism boom in recent years despite travel warnings issued by the US. With 842 million arrivals, 2006 exceeded expectations as the tourism sector continued to enjoy above average results, making it a new record year for the industry. The latest World Tourism Barometer figures show that 2007 will consolidate the positive performance and turn into the fourth year of sustained growth.
Despite risks facing global tourism 12 months ago in particular terrorism, health scares due to avian flu and rising oil prices 2006 was another year of good growth above the long-term forecast rate of 4.1 per cent, backed up by one of the longest periods of sustained economic expansion, says UNWTO Secretary General Francesco Frangialli.
Tourists flock in despite travel advisories from the US

One of the features of 2006 was the continued positive results of emerging destinations, underscoring the links to economic progress. As one of the most dynamic sectors, Tourism plays a key role in the fight against poverty and promoting sustainable development. By integrating sustainable tourism in the international development agenda, our sector can make a significant contribution to advance the Millennium Development Goals through a more moderate, solid and responsible type of growth, says Frangialli. Three years ago, world tourism began a historically new phase of growth, as it broke the barrier of 800 million international arrivals, growing more than 20 per cent since then. We are now responsible for making this new phase of growth more economical in its use of energy and natural resources.
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Major destinations
Africa has outpaced all other regions with almost twice the rate of global growth reaching 8.1 per cent in 2006, following an already strong 2005. This star performance was led by Sub-Saharan Africa (+9.4 per cent), while North Africa (+5.8 per cent) also ended the year above average. Major destinations such as South Africa, Kenya and Morocco all continued to post
excellent results. Figures released in January by the Kenya Tourism Board (KTB) indicated that tourism was the countrys leading foreign exchange earner with figures running to Sh56.2 billion, after 1.8 million tourists visited Kenya last year alone. This reflected a growth of 15 per cent from the Sh48.9 billion the sector earned in 2005. If well managed, tourism could help to
reduce poverty because the high numbers of arrival will create more jobs and more facilities to cater for the tourists. This also calls for improvement of the infrastructure and additional bed capacity as these are some of the challenges that hinder faster growth of this sector. Currently, the number of classified tourist beds stand at 39,321. With the demand rising steadily, an additional 20,840 beds are needed.
21
Tourism
Tsunami
Asia and the Pacific (+7.6 per cent) region maintained its extraordinary growth due to the recovery of Thailand and the Maldives from the impact of the December 2004 tsunami, as well as remarkable performances from emerging destinations in the region. International tourist arrivals in South Asia grew by 10 per cent, boosted by India, the destination responsible for half the arrivals to the sub-region. Europe performed on target last year (+4 per cent). Germany took advantage of the Football World Cup 2006, while Italy had a strong comeback. Spains solid results also contributed to the generally positive outcome. In the Middle East, international tourist arrivals are estimated to have risen by four per cent in 2006, after the bumper years of 2004 and 2005, and in spite of armed conflict, particularly the Israel-Lebanon and IsraelPalestine crises. Although the two per cent growth in the Americas looks disappointing, regional results vary considerably. The rise in the USA was not sufficient to compensate for the weak development in Canada and Mexico. On the other hand, the results from Central (+6.1 per cent) and South America (+7.2 per
cent) show how Latin America is on track to consolidating the positive outcome of recent years: Chile, Colombia, Guatemala, Paraguay and Peru all grew at double-digit rates.
Anticipate shocks
The increase in international tourist arrivals is projected to be around 4 per cent, much
some uncertainties remain on the global economic front and they could impact the tourism forecasts. Rising interest rates in some countries and regions could diminish available income. A weaker US dollar might affect foreign travel demand by Americans. On the other hand, a stronger euro could stimulate European international travel
in line with the forecast long-term annual growth rate of 4.1 percent through 2020. Growth is expected to be more solid as businesses, consumers, governments and international institutions such as the UNWTO are now better able to anticipate shocks and to respond more effectively to crises. Travellers are better informed and have become more adept at weighing their options and now include security factors as just another consideration among others when choosing their destinations. As a whole, the global economy is expected to maintain last years growth level. Oil prices have been less volatile and do not pose a major risk to economic stability as they did a year ago. Nevertheless, some uncertainties remain on the global economic front and they could impact the tourism forecasts. Rising interest rates in some countries and regions could diminish available income. A weaker US dollar might affect foreign travel demand by Americans. On the other hand, a stronger euro could stimulate European international travel. Against the good tourism results of the past three years and given the still favourable economic outlook, this positive trend looks likely to grow in 2007.n
22
Trade
Trade ties that bind

By Florence Mukiebe
Businessmen from Rwanda and Kenya form a unique team to boost investment opportunities across the borders
n todays corporate world, no business can stand on its own. Each must lean on others to succeed. And that is where networking comes in handy because in the global village, no business can operate like an island. All need to network to achieve faster and higher growth. This was one of the reasons why the Kenya Rwanda Business Association (KRBA) was formed by a group of business people drawn from Kenya and Rwanda but with business interests in the East African region. A not-for-profit association, KRBA was formed to help promote investments in East and Central Africa. The associations members are experienced business people and high profile corporations whose combined wealth of experience will help boost the growth of individual businesses. According to KRBA chairman Philippe Nsanzimana, the organization aims to promote excellence in business among professionals in Kenya and Rwanda. It also takes a keen interest in law-making, policy formulation and economic and social matters to promote basic commercial freedom and good corporate governance. We came together as a group to help each other excel in our respective businesses. Many of our members have gained a lot from our relationship either at personal level or at group level, says Nsanzimana. Our association operates like a club of businessmen and members are more than willing to help one another. The launch of the KRBA-Kenya Chapter follows the successful launch of a similar branch in Rwanda last October. Members from Kenya travelled to Rwanda to meet their counterparts not only for the launch but also to exchange ideas and contacts. During the launch, the chairman said: I have no doubt and it is my wish that each participant will go back home with one or more contacts that may lead to greater business opportunities. The aim of KRBA is to highlight all available opportunities and package them in a way that attracts capital in form of joint ventures and/or
foreign direct investment. As a team with the same vision, we will be able to draw attention of our own investors and those from outside to our untapped resources, adds Nsanzimana. Eugene Rutagarama, a member of KRBA says of the association: I joined KRBA when members were preparing for the launch of KRBA-Rwanda Chapter. At the time, I was planning to set up a high end restaurant in Kigali and was interested in networking. The trip to Kigali opened an opportunity for my business because I made good links with businessmen in Rwanda and KRBA members based in Kigali. Now the members meet weekly in my restaurant, boosting my business. Eugenes story is no different from Joy Muchinas, an events organiser based in Nairobi. Joy joined the organisation late last year but her business contacts have grown since. Joy is the proprietor of Silverlining PR.
The launch of the KRBAKenya Chapter followed the successful launch of a similar branch in Rwanda last October. Members from Kenya travelled to Rwanda to meet their counterparts not only for the launch but also to exchange ideas and contacts
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Trade
Trade ties that bind
KRBA chairman Philippe Nsanzimana (left), Paul Ouma and Clare Akamanzi deputy director RIEPA I have a lot of clients who are referred to me by members who in turn introduce other clients, she says. I strongly believe that KRBA will go a long way in fostering lasting and mutually beneficial business relationships between businesses both in Kenya and Rwanda. Our members are so willing to help and thats how we are able to grow both individually and as a team. The opportunities that await those daring to venture are many and varied. The economys uniqueness and attractiveness lies in the fact that Rwanda is a virgin economy, untapped but full of potential. Some of our members have interests of expanding to Rwanda. The beauty is, our counterparts from Rwanda can also expand to Kenya and since Rwandese get a lot of products from Kenya, it is now easier to get trade contacts through our association, explains Nsanzimana. He says some of the activities that the association hopes to engage in are hosting other business associations for business talks, organising workshops for business people and sending delegates to international business fora. We can only grow as a group if we are able to interact with other business people both locally and internationally the reason why we have lined up activities for this purpose all through the year. The world has really become a global village and we dont want to be left behind, he says. And for Patrick Ndisanze things can only get better for his business. He was one of the first people to join the association. KRBA has given me the opportunity to know people from diverse industries and that has given my business, Zena.net Services, a preview of other fields, he says. With the launch of the Rwanda Chapter, KRBA has opened a window of opportunity in attracting business from across borders. With the official launch of the two chapters, members now hope to work closely with the governments of both countries, national institutions and individuals to further promote business growth in Kenya and Rwanda.n
With the launch of the Rwanda Chapter, KRBA has opened a window of opportunity in attracting business from across borders
24
Trade
Kenya Rwanda Business Association opens new chapter

By Ken Oduor
he venue was Kigali. And the event of the moment last October was the launch of the Kenya Rwanda Business Association, Rwanda Chapter. Kenyas Minister for Trade and Industry, Dr Mukhisa Kituyi, his Rwanda counterpart, Vincent Karega and Kenyas Cooperative Development Minister, Njeru Ndwiga, were among the dignitaries present. Over 35 Kenyan investors with business interest in the region also attended the launch. We love our Rwandan brothers... Our government has given 150 Freshian dairy cows to our friends here, Mr Ndwiga said with a light touch. According to Paul Ouma, the chairman of the KRBA Rwanda chapter, the launch of the association was taking place at a time when the global economic order is driven by economic blocs such as the European Union, the Southern Africa Development Cooperation and the East African Community. Access to large and new market opportunities is just one of the benefits we are poised to have, he told the delegates. Rwanda is a virgin land beckoning for handsome investors. It offers opportunities across the board. For instance, the country
runs a substancial trade deficit because she imports almost everything. This means that there is lack of import substitution, which is where the investors can come in, especially in the production of consumer goods. Other dignitaries who attended the launch were Rwandan Minister for Public Services, Skills, Development and Vocational Training, Prof. Manasseh Nshuti, Kenyas ambassador to Rwanda, Amb. Alex Keter, Rwandas ambassador to Kenya, George W. Kayonga, Chairman of KRBA (Kenya Chapter)
Trade Minister Hon. Mukhisa Kituyi (in hat), Hon. Njeru Ndwiga (second right) and KRBA members at the launch of the associations Rwanda Chapter
Philippe Nsanzimana, RIEPA Director General, William Nkurunziza, Chairman of the Rwanda Private Sector, Robert Baigamba and Secretary General of RPSF, Emmanuel Hategeka. n
KRBA chairman Philippe Nsanzimana (second left) and other participants during the associations launch in Rwanda
Rwandan Trade Minister Hon. Vincent Karega receiving a gift from KRBA chairman, Chapter and his Rwandan Chapter counterpart
25
Charity
Giving a home and a future

Martin is typical of many children who grow up in SOS Childrens Villages, having been orphaned or abandoned at a young age. SOS Childrens Villages believe that every child should belong to a family and grow up with love, respect and security. The mission of the organisation is to build families for children in need, helping them shape their own futures and sharing in the development of their communities. In many developing countries, unemployment, heavy debts and poor harvests are everyday challenges, with children often bearing the brunt of families financial and social difficulties. The effects of the Aids pandemic and other diseases also weigh heavily on children in less developed countries, where the social support network is becoming even weaker. Violence, neglect and being forced to live on the streets are real threats for these children. SOS Childrens Villages is an independent non-governmental social development organisation which has been working to meet the needs and protect the interests and rights of children for nearly 60 years. They operate over 450 villages in 132 countries and territories, offering love, protection, respect, education and medical care in a family based environment. Around the world, over 55,000 children and adolescents enjoy the love and support of an SOS family and over 650,000 people benefit from SOS Childrens Villages educational, health and social centres. There are currently four SOS Childrens Villages in Kenya, three in Rwanda, four in Burundi and two in the Democratic Republic of Congo. Each village cares for an average of 120 children (sometimes more) where they are looked after by specially trained SOS mothers in family houses, together with their SOS siblings. Many of them attend SOS kindergartens, schools, vocational training centres, (all open to community members as well) while others are at university or college. All are provided for until they can look after themselves. Children are only admitted to an SOS Childrens Village if they cannot - or are unlikely to - return to their biological
F
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our-year-old Martin never knew his parents. His earliest memories are of his grandmother, who looked after him. He also remembers the sisters from the convent who used to give them food. He was often hungry and sometimes in pain from the jiggers (insects that lay eggs under toe nails) in his feet. The nuns could not help being aware of his condition, noting that Martins grandmother was not capable of looking after him. Apart from being in poor health, she was also mentally challenged, and looking after
her grandson presented her with many difficulties.One day, when he was about three, Martins grandmother took him to the convent and left him there. Concerned, the sisters went to her house but found that she had abandoned her home and could not be traced. Eventually, the nuns took Martin to a nearby SOS Childrens Village where he was taken into a family house and given a new mother, brothers and sisters. Today Martin is a happy, confident boy who attends the neighbouring SOS Hermann Gmeiner School and has a bright future ahead of him.
Charity
to poor children
Top: An SOS mother supervises children during a meal while and an older child enjoys a ride with a friend. Facing page, SOS children on their way to school families. When families have difficulty in providing for their children, SOS Childrens Villages has programmes which are designed to strengthen families, either through medical, social and educational support, or through income generation schemes. Through these programmes, families learn to cope with crises which might otherwise force them to split. Apart from villages, SOS also operates social and medical centres, kindergartens, schools, day care centres and even hospitals. And in countries where children may be temporarily displaced due to conflict, famine or other crises, SOS also operates emergency relief programmes, helping children to survive until they can be reunited with their families. The organisation was founded in 1949 to improve the lives of deprived children after the Second World War. The challenges that these children faced then are similar to those faced by many children today hence the need for continuation. Due poverty, disease, war and natural disasters, over 140 million children worldwide live without the support of one or both parents. Without a family to support them, these children are deprived of what others may take for granted; access to health, education, food, shelter and care; all requisites for a good start in life. In the family set up, children can develop an identity, self confidence and individual talents. Strong and caring families are essential for ensuring a peaceful society for the future. As a non-profit making organisation, SOS relies on the goodwill and generosity of supporters to maintain its hundreds of projects and to expand and develop the assistance it provides to children and families in need around the world. Indeed, in many non-European regions where SOS works, the available educational and vocational training facilities are inadequate and the organisation often runs its own kindergartens, primary and secondary schools, and vocational training centres for the children and young people in their care and also for children from the neighbouring communities. Priority, however is given to the poorest families. Seeing the good work that SOS is involved in, all those who have something to spare are asked to assist in making a difference in the lives of these children. If you would like to know more about SOS Childrens Villages, Log onto: www.soschildrensvillages.org or www.sosea.org n
27
Time for experiments

By Kimani Chege
Rwanda shows the way to boost funding for research in science and technology
secondary schools, and sectorbased centres of higher learning and research in agriculture, health, infrastructure, environment and biodiversity. 2005 was a major milestone for us in that we begun to implement our national policy on science, technology and innovation. An important goal of this policy is to increase the number of science students in tertiary institutions the target being 70 per cent of the student population, Kagame told African presidents. While addressing the AU Summit, Kagame noted that most countries need to give more attention to scientists who have called for increase in funding to promote research. President Kagame noted: We are spending one percent of Gross Domestic Product on science, technology and research in our countries as recommended by African science ministers, is this not too little too late? The emphasis is the need to prioritise on how the money is used to meet the most pressing needs of the continent. Clearly, it is not just about investment in science and technology, but also about improving the efficiency of this investment for greater impact in all aspects of national life, President Kagame added. For him, it is about applying science and technology holistically - in all levels of education and training, commercialising ideas, developing businesses and quickening the pace of wealth and job creation. The Rwandese President also praised other regions in Africa for promoting innovation, calling them islands of innovation with the potential to propel Africa into development. With a political will and resources, these regional dynamos can provide the momentum needed to speed up Africas transformation through science and technology.
frican science is coming out of the woods at last, thanks to renewed interest by African presidents. With the leaders awakening to the need to increase research funding, scientists are keenly watching and waiting for the shot in the arm that could mark a turning point in the continent. African science has for a long time lagged behind due to poor funding by governments, leaving scientists with little room for innovation. While most countries, especially in Europe and Asia, have used science to develop their technologies and economies, Africa has become a permanent importer of both technology and expertise. However, scientists in Africa had reason to celebrate when the Africa Union summit in Addis Ababa recently dedicated the whole meeting to talks on science and technology. The recognition by heads of state of the role science plays in the development and utilisation of the continents natural resources came as a surprise to many. According to one scientist, the AU summit was a day of reckoning for African science. However, the dedication of the summit to science and technology was enough to promote renewed interest. While science attracted little attention compared to the launch of the Africa Year of Football, scientists acknowledge that it has taken a long time to bring the sector to the level of heads of State in Africa. Though most African nations shy away from funding research, Rwanda has moved to lead them in providing adequate financial suppport for science and technology, thereby encouraging innovative science. President Paul Kagame, an enthusiast of science and technology, told African heads of State in Addis Ababa that his country was not only providing enough funds for research, but was willing to double budgetary allocation to scientists. According to him, Rwanda was pushing for an African countries resolution to allocate at
least one percentage of their Gross domestic Product (GDP) to their science sectors. Rwanda has allocated at least 1.6 per cent of its GDP to science in this financial year and the sum is set to double in the next five years. If Rwanda approves this funding to three percent, it will be at par with most developed nations whose allocation for research has helped boost several sectors of the economy. The funding is now supporting Rwandas science and research institutions - including the teaching of science in primary and
Clearly, it is not just about investment in science and technology, but also about improving the efficiency of this investment for greater impact in all aspects of national life President Kagame
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Kagame champions science drive

These nascent centres must become the basis of pooling African resources to build viable networks for larger economies of scale and greater impact on the ground. In a practical approach to encouraging local students to take up sciences, he said plans are underway to initiate a regional science tournament modeled on the East and Central Africa football Challenge Cup. Rwanda has been instrumental in funding football competitions in the region and is exploring ways to duplicate this success in science. Building on the successes of the Kigali Institute of Science and Technology, we intend to create a scholarship fund for bright and capable youth from our region to study science and technology at this institute, President Kagame announced. His calls were supported by African Presidents and scientists who saw this as an example of how Africa can tap its resources using science to develop. We just need two or three more presidents like Kagame who can stand by us when we ask for more fundsfor research on issues that will help the common man, said one scientist attending the AU event. At a meeting in Cairo earlier last year, science ministers agreed to lobby for allocation of at least one per cent of GDP to science. They also proposed the setting up of an innovation fund and an African presidents science council. However, during the AU summit whose main theme was science, technology and climate change, the proposal to form the presidents council was shot down. It had been suggested that several presidents be pooled into a club to share ideas on science and technology with advice from experts. Professor Calestous Juma, a Kenyan scientist who also heads the AU panel on modern biotechnology, asked African heads of State to use their influence to increase funding for research. He said the formation of the presidents council could provide the required link between science and executive decisions. Bringing science and technology to the
centre of Africas economic renewal will require more than just political commitment; it will take executive leadership, he added. This challenge requires concept champions, who in this case will be heads of state spearheading the task of shaping their economic policies around science, technology and innovation. Prof Nagia Essayed, the AU commissioner for science and technology, said her commission was increasingly talking to governments to allocate more funds to their ministries of science and technology. Most
Bringing science and technology to the centre of Africas economic renewal will require more than just political commitment; it will take executive leadership
of the recommendations her committee had put forward, including the Cairo report, have been adopted by the AU executive committee. She said the commission was also encouraging the participation of governments in science. This includes the raising of the required quorum to make an executive decision in AU meetings Through a decision reached by the AU Executive Committee in Addis Ababa, Ethiopia was asked to raise the quorum required before passing a binding resolution of African Ministers of Science and Technology to 56 per cent. In the Cairo ministerial meeting which passed several important resolutions on science and technology, 27 of the 53 member States failed to send their ministers. We have realised that this is an imperative issue for AU. However when there is low quorum in a ministerial meeting, we dont say we cannot discuss and agree on issues until we have enough participants. n
29
Trade
China woos Africa
Economic giant has been making inroads into the African market and its influence has been growing by the year, reports Marceline Nyambala
funded enterprises at 715, with their operations in Africa ranging from trade, processing, manufacture, transportation and agriculture. The Far East country has spent billions of dollars securing oil-drilling rights in Nigeria, Sudan and Angola, and has exploration or extraction rights deals with Chad, Gabon, Mauritania, Kenya, the Republic of Congo, Equatorial Guinea and Ethiopia. China has also invested in the copper industry in Zambia and Congo; timber in Gabon, Cameroon, Mozambique, Equatorial Guinea and Liberia. In 2002, a Chinese company, Dong Song, opened East Africas first concrete poles factory at a cost of $3 million in Kenya. China also built the TaZara -Tanzania-Zambia Railway line. China mainly exports low-cost finished products to Africa. Its main products are machinery and electronics, textile and apparel, hi-tech goods, while her imports from Africa concentrate on crude oil, iron ore, cotton, diamond and other natural resources. For those African countries that do not have much oil or raw materials to export, trade with China is not as attractive. During FOCAC II, 25 African countries received zero-tariff treatment or special preferential tariff rates on products bound for China, ranging from food, mineral and textile products to machinery and electronics. China also encourages capable Chinese enterprises to invest in Africa to create jobs and achieve common development. Rwanda has not been left behind as it is one of the upcoming economies that China has an interest in. The governments of Rwanda and China signed eight agreements between 1972 and 2001 for economic and technological co-operation. Some of the projects supported by China in Rwanda include rice transplantation and reclamation projects; sugar-refinery; a cement plant that is now managed for the Rwandese government
hinas earnings from its trade with Africa has grown by 400 per cent over the last seven years. In 2000, the value of the ChinaAfrica Intergovernmental Human Resources Development Plan, which the Chinese Ministry of Commerce has used to train professionals from 48 African countries in trade, investment and economic management. In November 2006, China hosted more than 40 African heads of state in the Beijing Summit of the Forum on China-Africa Cooperation. In terms of investment, 77 Chinesefunded enterprises in Africa were started in 2004. Other statistics put the number of ChinesePresident Hu Jiantao
Africa import and export trade exceeded $10 billion, according to official figures. The sum jumped to more than $32.17 billion in the first ten months of 2006 with exports and imports hitting $15.25 and $16.92 billion respectively. It is now estimated that Chinas trade with the continent stands at more than $40 billion and is still increasing. Meanwhile, Sub-Saharan Africas economic growth rate has nearly doubled since 2000 and analysts attribute this partly to increasing trade with China. China has in the past hosted African heads of state in many Sino-Africa trade fora. The First Ministerial Conference of China Africa Cooperation Forum, 2000 (FOCAC I) set up the African Human Resources Development Fund. During the second ministerial conference of 2003 (FOCAC II), China resolved to exempt import tariffs for certain countries to ease their entry into the Chinese market. It later launched the 2004-2006 China
The influx (or dumping) of such cheap imports has been blamed for the death of several indigenous industries, such as the textile subsector in some of Chinas African trade partners.
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Trade
Chinas trade with Africa grows

by a Chinese company; construction of the Kigali highway, a sports stadium and hospital expansion. Chinese companies have also been involved in other road and bridge construction, hydropower and civil engineering projects. The Chinese government also endorsed Rwanda with the Approved Tourist Destination status as part of its effort to facilitate bilateral trade. This raised to nearly 10 the number of tourism destination countries recommended for Chinese tourists. Kenya, Tanzania, Zimbabwe, Tunis and Ethiopia are among the other beneficiaries. China-to-Rwanda trade has been increasing steadily. In 2002, the value stood at $9.05 million, with imports taking up $5.19 million and exports taking up $3.86 million. Chinese exports to Rwanda include cheap textile goods, light industry articles, agricultural tools and ferrous metals. China imports mainly niobium and tantalum or, and Paulonia logs from Rwanda.
Chinas Presence
But not everyone is pleased with Chinas presence in Africa. Unease appears to be rising across the continent as the Chinese become significant players and in some places, the dominant ones. Huge quantities of cheap Chinese-made products are suddenly available across the continent. The influx (or dumping) of such cheap imports has been blamed for the death of several indigenous industries, such as the textile sub-sector in some of Chinas African trade partners. African and Western activists say Chinas coziness with the troubled governments of Angola, Nigeria, Sudan and Zimbabwe are undermining efforts to nurture democracy and improve human rights there. But when Chinese President Hu Jintao toured Africa, he dispelled concerns about his countrys growing presence on the continent. He said Chinas development will not be a threat to anyone but would create opportunities and space for development abroad. He told reporters in Nairobi that China followed a policy of non-interference in the internal affairs of other countries.
A Chinese worker in a silk factory Other critics have warned Africans that when the deal is too good, they should think twice while others say it is about time Africa defined its destiny, put in place governance structures and anti-poverty programmes without donors or investors dictating the agenda. When all is said and done, it remains to be seen how Chinese invasion of Africa will influence global politics and business trends.n
31
Tax
KRA tightens noose on tax cheats

As Government seeks to raise more revenue, the taxman is reaching out to more traders to give to Caesar what is his, writes Newton Mutuma
ime has run out for traders who have hitherto been enjoying an unofficial tax holiday. It is time for them to meet the taxman, but they do not look ready for the formal introduction. Only last year, hundreds of them, led by opposition mps, marched and chanted outside Times Tower to protest over the deadline imposed for traders to install Electronic Tax Registers popularly known as ETRs. This time round, in the words of the KRA Commissioner General Michael Waweru, there is no escape for tax evaders. The crafty operatives - reputed for trashing Safaricoms security code system that was to render stolen mobile phones useless - have found their superlative match in the name of the Kenya Revenue Authority which has been working round the clock to get all taxable people pay taxes. The Commissioner for Domestic Tax told a media workshop at the Windsor Golf Club some time last year that time had come for each one to give to Ceasar what belonged to Ceasar and to God what is His. The arrival of the ETRs is set to revolutionalise the way Kenyans do business. Except maybe for your monthly shopping at the supermarkets, rarely does one receive receipts for the domestic accessories bought at the nearby kiosk or from hawkers who ply their trade on the highways during traffic jams. KRA is now casting the net wider to ensure that even the kiosk operators pay Value Added Tax (VAT). You will concur with me that this is no mean task, but the tough talking Commissioner of Tax is definite that it will happen, come rain or sunshine. The government having trimmed down to domestic borrowing at a time when donor funding is erratic, has probably no choice but to use the authority to raise as much revenue as possible. Indeed, KRA is targeting over Kshs 300 billion per year, money that will be drawn from tax payers pockets.
KRA Headquarters, Times Tower building in Nairobi Hypothetically, everybody pays 16 percent on any purchase made. However, this grand cash does not reach the presumed recipient, KRA thus the need of strict measures such as the ETR application to monitor sales. So once the roadside kiosk is forced to acquire an ETR, you will be expected to ask for a receipt for everything you carry away, from a kilo of sugar to basic groceries. According to KRA, the success of this campaign will depend on the public
32
Tax
Tax cheats on notice

awareness drive currently on course. You might have seen billboards there and about proclaiming Unique Selling Messages loud and clear such as Do You Love Kenya? Prove It By Supporting Fiscalisation. A similar campaign has been carried out in Italy and succeeded so Kenya will not be an exception. The success of the ETR in Italy was largely attributed to media support. News flashes about the prosecution of tax evaders jammed media channels and everyone was keen to follow the new taxation law. Several countries that have taken no reprieve on tax collection have established Financial Police to deal with tax related crimes. The Greek arm of this force is headed by a General Secretary based in Athens with 13 regional agencies staffed by officers trained in Banking and Information Technology. The department has 1,400 workers with powers to arrest, hold suspects in cells and prosecute them in a court of law. This department executes around 30,000 cases per year, which are triggered by monthly tax return reports at the central bureau. Following its success, KRA hopes to replicate it in Kenya. KRA is currently piloting on A similar campaign a viable project that involves directly connecting big has been carried organisations with its systems out in Italy and to enable quicker and more succeeded so effective uploading their daily tax submissions. An Electronic Kenya will not be Data Interchange, a platform that an exception. The links electronic devices together for online submission is set to success of the ETR emerge. This may ease audit in Italy was largely activity and bring down fraud, as attributed to media every transaction is authenticated. What is an ETR? flashes about the This is a gadget fitted with fiscal prosecution of tax memory used to record all sales and issue receipts. It is similar evaders jammed to those used in supermarkets media channels and save for its fiscal memory. everyone was keen The memory is a special read only built into the tax register to follow the new to store tax information. Large taxation law organisations can configure the gadget into their established network to reduce costs. Anyone who beat the December 31st deadline in purchasing the ETR will get a refund through tax deductions by KRA. n
CLARKSON NOTCUTT (INSURANCE BROKER) LTD

Clarkson Notcutt Limited is an insurance broking company whose predecessor parent companies kicked off operations in East Africa in 1958. The Company has its headquarters in Nairobis Madison Insurance House and a branch in Southern House in Mombasa. The Uganda office is situated at Plot 6, Airways House, Suite 7, Colville Street, Kampala. The Company employs over 40 qualified and experienced professionals in insurance, reinsurance, finance, information technology and administration and has a wide client base that includes market leaders in all sectors. The Company has embraced information technology in its operations and is constantly enhancing its hardware, software and training in order to remain competitive and keep abreast of international trends and practices. Its re-insurance broking department was established in 2004 and is run by professionals with long and distiguished careers in insurance, reinsurance as well as broking. In addition to handling routine placements of treaty and facultative business across all classes, the unit is well equipped to handle special risks in East & Central Africa and beyond. Clarkson traces its origins to at least six parent companies. They are H. Clarkson and Ernest Notcutt of the United Kingdom; Arbon Langrish and Southern Shipping Lines, Clarkson and Southern; and Notcutt Longaroni.
Products & Services Offered:

General Insurance Motor Professional Indemnity for doctors Computers Goods In Transit Group Personal Accident Aviation Marine Public Liability Travel Contractors All Risks Contractors Plant and Machinery All Risks
MADISON INSURANCE HOUSE UPPER HILL ROAD, CAPITOL HILL, P.O. BOX 30279-00100 GPO, NAIROBI TELEPHONE: +254 (020) 2731310/1/2/3 FAX: +254 (020) 2713772 EMAIL: clarknot@clarknot.com WEBSITE: www.clarknot.com
Medical Insurance Group Covers for both in and out-patient Individual Covers Fund Administration Employee Benefits Group Life Insurance Pension Schemes Provident Funds Reinsurance Treaties Facultatives Special Risks
SOUTHERN HOUSE, MOI AVENUE P.O. BOX 84726, MOMBASA TELEPHONE: +254 (041) 2226165 FAX: +254 (041) 2221462 EMAIL: clarknot@msa.clarknot.com Suite 7, Plot Airways House Colville Street P.O. Box 2308 Kampala, Uganda Tel: 256-41-256658; 235499
support. News
33
Counterfeit
All that glitters

Why fake goods are bad for the economy
Law enforcers destroy fake goods By Njonjo Kihuria
F
34
ake and pirated goods cost Kenya Sh6 billion in lost taxes annually, says the Kenya Revenue Authority (KRA). Kenyan manufacturers estimate that they also lose about Sh30 billion annually through trade in counterfeits, which accounts for about 20 per cent of domestic transactions. The most counterfeited goods include medicines, clothing, electronics, stationery, motor vehicle spare parts and chemicals. Manufacturers incur heavy losses due to price undercutting by the illegal traders. The flooding of counterfeits and pirated
products in the local market also undermines the importation of genuine one, making fair competition difficult. Often, unsuspecting consumers end up blaming genuine manufacturers when a product fails the quality test. At times, however, consumers knowingly buy counterfeits or sub-standard goods because they are cheaper. But in the long run, the counterfeits are more expensive because they have a short lifespan. Others like medicines and electronics pose danger and can harm consumers.
Purchasing power
Liberalisation has contributed to the increase
of counterfeit goods in the domestic market, as has low purchasing power, lack of consumer awareness. Other factors include lawlessness in neighbouring countries due to armed conflicts. This has led to diversion of transit goods into the Kenyan market. This malpractice is fuelled by lack of appropriate laws to tackle the crime. The Kenya Bureau of Standards (KEBS) has waged a campaign against counterfeits but it faces numerous challenges, one of which, again, is lack of proper laws against piracy and counterfeits. It is also difficult for the bureau to identify where counterfeits are manufactured as this
Counterfeit
Pirated goods bad for the economy

is usually happens in residential areas. The government has however made attempts to curb the fake goods by seizing and destroying them. It is also in the process of enacting a Bill that will comprehensively deal with the menace. Recently, Finance Minister Amos Kimunya urged the bureau to enter into memoranda of understanding with neighbouring countries to carry out thorough inspection of goods on transit to avoid dumping of sub-standard goods in Kenya. Unscrupulous business people have been known to register imported cargo as goods on transit but later sell them locally, denying the government revenue. The bureau of standards has also prepared a plan of action that includes stopping imported counterfeit goods at the source through the Pre-export Verification of Conformity to Standards programme. It has also among other measures increased surveillance in the market and inspection of goods at all ports of entry and continues to lobby or the enactment of the Counterfeits Goods Bill. However, the government is yet to enact the Kenya Anti Counterfeit Bill that was proposed in 2004 and published in August 2006. Last month, Kimunya promised it would be tabled before Parliament by the end of this year. Modelled on the South African law, the Bill seeks to create a one-stop law to crack down on fake goods unlike the current situation where provisions are scattered over various laws. Once the Bill is passed into law, it will protect intellectual property rights and empower the commissioner of customs to detain suspected counterfeit goods. The Bill also provides for the creation of a special agency, to be known as the Counterfeit Goods Agency, which will among other things spearhead anti counterfeit campaigns. The agency will be mandated to inform the public on matters relating to counterfeiting and also train officers on how combat the crime. In a recent interview, Trade and Industry Minister Mukhisa Kituyi said trade in Kenya suffers from among other things counterfeiting, which undermines investments and consumer confidence besides denying the government revenue through tax. This, he said, adversely affects Kenyas Gross Domestic Product (GDP) through evasion of taxes and non-conformity to legal standards while discouraging new investment. But the most adversely affected by the influx of counterfeit goods was industry through loss of jobs and market share, shrinking investment, brand damage, risk of of firms involved in counterfeiting. This is expected to send a strong message to others who are involved and those who facilitate the illegitimate businesses. Several committees have also been formed, including the publicity and awareness team and others for training, enforcement and legislation, which will impose stiff penalties against offenders. They will also have powers to arrest and prosecute. The committees will also decided what action is to be taken against stockists and buyers of fake goods. They will also be required to boost the policing of border posts and set up a special police unit to deal with counterfeits. They will also be required to establish regional packaging standards and codes. Meetings have also been held with the Finance, Planning and Trade Committee of Parliament to lobby for laws which will strengthen penalties for trading in counterfeit and substandard goods. During the last Budget speech, the Minister for Finance enhanced penalties under the Customs and Excise Act to a maximum of Sh1.5m from Sh500,000. He says the enforcement committee has in the recent past carried out more than 70 raids in Mombasa, Nairobi, Nyeri, Karatina, Meru, Embu, Nanyuki, and Thika. Recently, a large consignment of CDs and radio cassettes were destroyed at Jomo Kenyatta International Airport (JKIA), through the efforts of the enforcement committee. There are over 20 cases currently pending in court and so far some people have been jailed, several without the option of a fine for a total of nine-and-a-half years for manufacturing and exposing for sale counterfeit products. The minister says appropriate legal procedures are being followed to ensure that the cases reach their logical conclusions. A report released last year indicated that the firms hardest hit by counterfeits were UDV and Eveready which lost hundreds of millions. n
prosecution by consumers and the enormous cost of tracking goods. The health of the consumers is also at risk and more often than not, consumers do not get value for their money. But the Ministry of Trade is determined to eradicate the crime. Kituyi said dealers in counterfeit products enjoy an advantage of more than 50 per cent over traders in genuine products due to tax evasion. This makes it impossible for a compliant manufacturer to compete against those who deal in counterfeits. As one way to curb the illegal trade, the ministry has been revoking trade licenses
35
Investment
Investors have reason to pop the champagne as profits from shares grow
By Ritah Mutuku he Nairobi Stock Market has firmly taken its place as a driver of Kenyas economy and an alternative investment avenue for local investors, having generated over Sh329 billion in 2006. The high turnover led to thousands of shareholders posting immense profits. The turnover realised by the rise in share prices and listing of new shares and companies falls Sh45 billion short of what the Government targets to collect as tax in the 2006/2007 financial year. In 2005 alone, Sh96 billion worth of shares changed hands at the NSE while the market turnover grew by 162.62 per cent, from Sh36 billion. Effectively, Sh60 billion more worth of shares was traded last year. The turnover, measured by the number of shares sold and expressed in currency, broke the Sh1 billion mark on October 4, 2006 for the number of shares sold in a single day.
Taking stocks
T
Trading accounts
The number of investors who have so far opened trading accounts with the Central Depository and Settlement Corporation (CDSC) - a prerequisite for trading at the NSE - has also grown to about 180,000. The number stood at slightly 70,000 before the largest Initial Public Offer (IPO) that the country saw, the listing of the energy distributor Kenya Electricity Generating Company (KenGen). In tandem with the NSE boom, the 20 Share Index, which tracks the performance of listed blue-chip companies opened the year above the 6,000 mark, having closed the previous year 42.10 per cent up at 5,645.65 points compared to 3,973.04 posted at the close of 2005. In October 2006, the index broke the 12year record of 5,030 points. Analysts say that there seems to be a lot of free-floating cash in Kenya and this accounts for the high turnover which is way beyond the Sh3 billion realised in 1999. All IPOs that came after KenGen - which opened Kenyans eyes to the opportunities
offered by trade in shares, have been largely over-subscribed. In addition, the tax concessions that the government continues to announce to companies to encourage them to seek additional capital through the stock exchange has seen companies lining up to be listed on the NSE. With all the tax waivers, the challenge is for more companies to come to the NSE and expand, says James Murigu, the managing director of Suntra Investment Bank.
Incentives
Among the incentives is the offer for newly listed companies to pay corporation tax at 20 per cent for a five-year period provided that 40 per cent of their stakes go to Kenyans. Foreign investors can buy shares subject to a 25 per cent minimum reserved ratio to
domestic investors in each listed company. Kenyans are yearning for more especially as the government expects to offload its stakes in various companies such as Safaricom, Kenya Reinsurance Company and many more, says NSE chairman Jimnah Mbaru. According to him, the performance of IPOs and Offers for Sale similar to that used by Equity Bank in its recent share offer, is encouraging private firms to look to the NSE as either a potential source of equity or partial privatisation. On his part, Murigu attributes the bullish sentiment to a stable macro-economic environment, adequate product innovation and investor protection through the Capital Markets Authoritys regulations. But other factors such as good corporate
36
Investment
governance, integration with other stock exchanges and technology-driven improvements in the trading systems are likely to continue to spur growth. Murigu says the performance of the NSE can only be pegged to a growing economy as well as Kenyans appetite for investment opportunities. More share issues would certainly make the NSE grow, and for sure the more than eagerly expected Safaricom IPO would do the bourse well, he adds. Mixed reactions have come in with the performance of the NSE 20 share index which jumped to the 6,000 level in January. The high index was attributed to overstretching of share pricing. Murigu says that while the index has served the NSE at its best, the overstretching is caused by increased demand on some counters while supply is at its peak, yet there is no supply of shares in some counters. We hope that new issues will decrease the demand that the bourse continues to witness as new companies always help ease the supply/demand curve, says Murigu. The Suntra managing director also explains that the review of the NSE 20 share index is a normal modification to enable it reflect the performance of the price changes.
New bourse
Late last year, plans by the Uganda Stock Exchange and the NSE to merge soon after the signing of an agreement to cross-list blue chip companies were at advanced stages. According to Mbaru, the region is likely to have a new bourse to be known as the East Africa Stock Exchange (EASE), with trading floors in Kampala and Nairobi. Out of the 54 companies listed at the NSE, East African Breweries Limited is the largest by market capitalisation, on both Nairobi Stock Exchange and Uganda Securities Exchange. Kenya Airways is listed across the three bourses while Jubilee Insurance Company Limited is listed at the Dar-es Salaam Exchange. A further 30 companies are expected to cross over once all the necessary arrangements are complete to have the EASE in place. Despite the enthusiasm and confidence that local investors have shown on the stock market, Mbaru says politicians have been trying to pour cold water on the gains. Murigu agrees with him. Mbaru noted that the increased funds come from, among other sources, Kenyan
parents who dont have to pay primary school fees anymore since the advent of free primary education, better management and compliance of pension funds, increased insurance premium collections and increased corporate earnings as well as substantial remittances by Kenyans in the Diaspora estimated at $750 million to $1 billion annually.
Uganda Stock Exchange and the NSE to merge soon after the signing of an agreement to cross-list blue chip companies were at advanced stages. The region is likely to have a new bourse to be known as the East Africa Stock Exchange (EASE), with trading floors in Kampala and Nairobi.
Mbaru says the NSE continues to ride high under its 2006-2008 corporate plan implemented in July 2005. The two main components of the plan are increased supply of products to achieve increasing liquidity to have a 60 per cent market capitalisation by next year. This would represent 150 per cent of Kenyas gross domestic product. Performances of the African stock exchanges have been positive, outperforming the SMP 500 and the London Stock Exchange (LSE) over the last few years and contributing to strong economic growth in different countries. Analysts say that as stock markets worldwide look for direction in 2007, Africa can look back at 2006 as another stellar year for the continents exchanges. Performances on the continent may come as a surprise to outsiders but to professionals on the continent, where economic growth has been picking up since 2000, the rise in stock prices at Africas nearly 20 bourses continues to dazzle. This has been witnessed in countries with bigger bourses such as South Africa, Egypt and Nigeria. Kenyas is considered smaller than these three but strong public interest has helped lift the NSEs profile.n
37
Life Skills
Business quotes
1. The successful man will profit from his mistakes and try again in a different way Dale Carnegie The toughest thing about success is that you have got to keep on being a success Irving Berlin The way a team plays as a whole determines its success. You may have the greatest bunch of individual stars in the world, but if they dont play together, the club wont be worth a dime Babe Ruth The secret to managing is to keep the guys who hate you away from the guys who are undecided Casey Stengel The best executive is the one who has sense enough to pick good men to do what he wants done, and selfrestraint to keep from meddling with them while they do it Theodore Roosevelt The big shots are only the little shots who keep shooting Christopher Morley To succeed in business, to reach the top, an individual must know all it is possible to know about that business J. Paul Getty To win without risk is to triumph without glory Pierre Corneille The man who does not work for the love of work but only for money is not likely to either make money nor find much fun in life Charles M. Schwab
Six Business Blunders

Are You to Blame?
By Kate Lorenz Have you ever been in a situation at work where you said something and knew right away that you made a major faux pas? While it can be tough to be on your absolute best behavior 24 hours a day, there are some major etiquette blunders that you must avoid if you want to achieve professional success. Jodi R.R. Smith, president and founder of the etiquette consulting firm Mannersmith, tells us the biggest slip-ups that happen at work and how to avoid them: 1. Being late Showing up late for appointments not only makes you look bad, but it can also have a negative impact on your success. Smith says she knew a service provider who was late to two separate meetings with the same client. What was the consequence? They lost an $80 million account. You have to be very respectful of peoples time, especially your clients, she says. While you may occasionally run into circumstances beyond your control, you can avoid this costly blunder by always giving yourself more than enough extra time to make the trip. Remember, its better to be 30 minutes early than 5 minutes late. 2. E-mailing the wrong person the wrong message E-mail has given us a whole new set of etiquette guidelines. And with such an immediate communication tool, it is easy to make a mistake with the push of a button. If you mistakenly push reply or reply all instead of forward, your note to a friend reading, Can you believe this joker sent me this? in response to a boss e-mail could wind up back in your boss inbox instead. To ensure that your complaints dont end up in the wrong place, be extremely cautious about what you put in writing. If you dont have anything nice to say, say it face to face, Smith says. Or dont say it at all. 3. Inadvertently sharing others e-mail addresses How many times have you had your e-mail shared with complete strangers because a friend sent a mass e-mail with 50 e-mail addresses in the To or Cc column? While some people dont mind, others are extremely sensitive about sharing their e-mail addresses. If you are sending a mass e-mail, Smith suggests putting all addresses in the blind carbon copy, or Bcc field. This will get your message to the right people without sharing private information with the entire distribution list. 4. Having a wimpy handshake According to Smith, most of us tend to generalize peoples competence based on first impressions, and your handshake is an extremely important part of your overall image. People really underestimate the power of the handshake, she notes. If you meet someone for the first time and have a handshake that is weak, you run the risk of being labeled as lacking self confidence. Practice your handshake with someone who will give you honest feedback. 5. Dressing inappropriately In todays business environment, it can be hard to figure out how professionally or casually you should dress. Doing your homework can save you from making a major gaffe. It is always better to be overdressed than underdressed, Smith says. She suggests that when you are meeting with clients, check out their attire policy in advance and dress one notch higher. 6. Forgetting that business social events are still business In every company, there are stories of individuals who attend company social functions and take the partying too far. Yes, it might be a happy hour, but that does not give you the green light to overindulge. Smith warns that you must remember that business social events are still business. She suggests asking yourself this question: Is what Im doing, wearing or saying going to enhance or distract from my professional image? If your answer is not positive, you need to alter your behavior before you make a major mistake. Adapted from CareerBuilder.com Editor
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38
Kenya Meat Commission

HISTORY Formed in 1950,Kenya meat commission is a Government owned corporation. It is therefore the most experienced meat processor in Kenya and the region. ABOUT KMC The Kenya Meat Commission is a fully integrated meat processor. Our strength lies in the unrivalled efficiency of our meat processing plant along with our ability to process high volumes of quality meat in line with consumer tastes and preferences. Our facilities includes the following: An abattoir for slaughter of 1,000 large stock and 1,500 small stock per day. A meat deboning section for processing high quality prime beef cuts. A meat value addition section for the preparation of beef burgers, meat balls, stir fries and several new products under development. A by-product processing facility where skins and hides are prepared for sale, processing of meat and bone meal, animal feed and many more. A meat canning line where two separate lines exist one for products such as corned beef and a separate line for pet food. Vast cold storage facilities for both chilling and freezing. FACTS ABOUT KMC KMC is an export slaughter house. KMC has two meat processing facilities namely KMC Athi River Factory and KMC Kibarani factory in Mombasa; scheduled to be opened in early 2007. KMC processes beef, goat and lamb. The factory is able to avail all grades of meat ranging from Prime, Choice, FAQ to Commercial. All slaughter is undertaken in line with HALAL practices. QUALITY Stringent quality measures are undertaken at every stage of processing from sourcing, to the end product so as to ensure that only high quality products are sold to consumers. MEAT INSPECTION All meat and meat products from KMC are derived from livestock which are inspected by the veterinary inspectors. PROCESSING All the meat from KMC is processed using modern processes. The products are handled in a sanitary and hygienic way. The meat is therefore of high quality, wholesome and healthy. OUR PRODUCTS Carcases of all grades namely Prime, Choice, FAQ, Standard and Commercial. High quality prime cuts such as Rumpsteak, Sirloin, Fillet, Topside, Silverside, Rib eye, T-bone steak and many more. Value added products such as meat balls, beef burgers, stir fries, beef cubes, minced meat both lean and ordinary. Family pack a 5kg assortment of 5 special cuts to delight the whole family. Canned products such as corned beef and ox tongue Canned pet food By products such as meat and bone meal, skins and hides, horns, hoofs. OUR MARKETS These includes; Butcheries, Supermarkets, Hotels, Institutions, colleges, Schools, Restaurants and Export Market. CONTACTS Sales and Marketing Department Kenya Meat Commission P.O. Box 2, Athi River e-mail: marketing@kenyameat.co.ke Fax: +254-45-26520 Tel: +254-45-26041 / 3 / 4 Athi River.

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Products & Services Offered:

April - June, 2007 East Africa Business Focus

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