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East African Oil Pipeline Launch Extended To April




Launching the East African Crude Oil Pipeline (EACOP) project has been extended to April , the Petroleum Authority of Uganda (PAU) has announced.

The much-awaited event which was initially scheduled for March 22, this year has been moved to April following the death of Tanzanian President, Dr John Magufuli.

In a statement posted on its website, the authority hailed Dr MagufuliÕs astute leadership which set a strong foundation for the EACOP project, with key milestones that included the signing of the Inter-Governmental Agreement (IGA) in 2017, and the initialing of the Tanzania Host Government Agreement (HGA) in 2020. Last October, Tanzania finally sealed the HGA with TOTAL in implementing EACOP, after long protracted negotiations.

The long protracted move in reaching an agreement with the French firm was due unresolved matters pertaining to harmonisation issues between Dar es Salaam and Kampala, two East African countries which are sole beneficiaries of the 1.7tri/- project.

Speaking shortly after signing an agreement with the French multinational integrated oil and Gas Company in October last year, the Attorney General of Tanzania Adelardus Kilangi, who also led the country’s team on the negotiating table said the deal signaled TanzaniaÕs readiness and commitment in welcoming potential investors to the country.

Professor Kilangi insisted that Tanzania had demonstrated its strong will in creating an enabling environment to foreign investors in the country.

This was an open and transparent negotiation which had to take place as the two countries had contrasting policies and laws that governed the gas and oil sector,” explained the AG.

The construction of the East African Crude Oil Pipeline from Uganda to Chongoleani area on Tanzanian seaport in Tanga on the Indian Ocean is expected to generate 496bn/- in revenues and offer 10,000 employment opportunities.

The multi-national plan is led by French petroleum giant in partnership with China CNOOC and struggling British group Tullow Oil, which is seeking to finalise selling its stake in the venture.

Last week, Uganda President Yoweri Museveni revealed that two weeks ago, he had written to the late President Magufuli a letter that would have seen the two Heads of State meet in Entebbe, to seal the oil pipeline deal on March 22nd, a day in which Tanzania held a state funeral for the late leader, who passed on March 17th, this year.

President Museveni gloomily narrated this at a small gathering of Ugandan government leaders in Kampala, as they paid their respects to the late Tanzanian President Dr Magufuli.

“Two weeks ago, I wrote to Magufuli about the oil pipeline. This was because today (March 22nd) was supposed to be the signing day for the tripartite between Uganda, Tanzania, and Total,” said President Museveni.

Little did I know that instead of signing the deal, I will be signing a condolence book following his death, he sadly stated.

The oil pipeline is intended to transport crude oil from Uganda oil fields in Hoima to the Port of Tanga, Tanzania on the shores of the Indian Ocean.

Once completed, the pipeline will be the longest heated crude oil pipeline in the world. The late President Magufuli died of a heart condition at the age of 61 last Wednesday.

The mortal remains of the departed Jemedari were buried in Chato District, Geita Region last Friday.

His sudden demise was received with great sorrow by heads of state, government officials, ambassadors across the world and the people of Tanzania, making the entire nation go to a standstill.


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Most Expensive Home in America To Be Auctioned



The One mansion of the largest private homes ever built, with a colossal 105,00sq ft of living space will go to the highest bidder tonight during a public auction.

Once valued at $500 million, The One mansion in Bel-Air is being sold for $295 million and will be on the open market until it is auctioned off by Concierge Auctions, an online auction marketplace, from February 28 to March 3.

The home will be sold without reserve, meaning it will sell to the highest bidder. Even if it sells close to the price it’s listed at, it will surely break records.

Currently, billionaire and hedge fund tycoon Ken Griffin’s $238 million New York penthouse in 2019 holds the record as the most expensive U.S. home ever sold.

Developed by Nile Niami, the massive estate took more than 10 years to build and created massive debt for Niami. His development company, Crestlloyd, filed for bankruptcy last year, forcing the home to careen towards auction as part of the bankruptcy proceedings.

However, the home still has about 12 more months of work. The buyer will have to put down nearly $340,000 as a deposit.

The Los Angeles home is one of the largest ever built, and is twice the size of the White House. It spans 105,000 square feet and the property sprawls over 3.8 acres.

Outdoor features include a moat of water on three sides of the home, five pools, a 10,000-square-foot deck and a 400-foot outdoor running track.

The home is more like a personal, private resort than a single-family home. There are a whopping 21 bedrooms, 42 full bathrooms and seven half bathrooms.

Despite its grandiose nature, there is a pared-down, neutral color palette throughout and calming water features.

Within the home, there are custom-curated artworks from artists Mike Fields, Stephen Wilson and glass artist Simoe Cenedese, to name a few. Soaring, 26-foot ceilings make the home feel even larger than it is (if that’s possible), and rooms are oversized and expansive.

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Rwanda-Uganda Full Trading Resumes



Full trading between Rwanda and Uganda is scheduled to resume on Monday January 31st following Kigali announcement that it had opened locks on its borders shut in March 2019.

“Rwanda has taken note that there is a process to solve issues raised by Rwanda, as well as commitments made by the government of Uganda to address remaining obstacles,” Kigali said in the statement.

Since the border closure Rwanda and Uganda recorded a significant reduction in trade flows and was further worsened by the covid-19 pandemic that struck a year after Rwanda had slammed its doors to the northern neighbour.

Before the border was closed in 2019, Uganda export revenues fetched from trading with Rwanda were valued over U$600million. During 2020 Uganda Exports to Rwanda was US$2.31 Million, according to the United Nations COMTRADE database on international trade.

President Paul Kagame said in his new year address that Rwanda prospered in the economic front.

“We are beginning the year 2020 after a successful 2019.Our country remained safe as a result of our efforts”.

The Africa Development Bank in its 2019 outlook on Rwanda, projected robust growth prospects even as the standoff with Uganda heightened.

For example, Rwanda and Tanzania signed the standard gauge railway (SGR) deal dubbed, sub-Saharan Africa’s first 570 Km bullet line with Tanzania worth US$2.5 billion.

Also Rwanda by December 2019 signed a U$1.3 billion deal on Bugesera Airport with Qatar.

One of the biggest blows that Uganda suffered in its standoff with Rwanda was the emergence of Tanzania as Rwanda’s new major trading partner.

Uganda exports to Rwanda include; mineral fuels, oils, distillation products ,plastics ,textiles ,cereals , electronics, vehicles, machinery, fish, edible fruits, soaps, cement, lubricants, waxes, candles and an assortment of manufactured articles.

With the border slated for opening on Monday, the gesture is expected to boost  the movement of goods, transport, persons and services and under strict observation of restrictions against covid-19 pandemic.

How Museveni Lost to Kagame in Race For Regional Dominance

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Akabanga Tycoon Diversifies to Petroleum



Sina Gerard famed for producing the hot oiled pepper ‘akabanga’ has diversified into petroleum products, Taarifa Business desk reports.

Under a new company registered as Sina Gerard Petroleum Ltd, the tycoon’s decision indicates that he is reading from a good business book on diversification strategy.

Diversification is a business development strategy in which a company develops new products and services, or enters new markets, beyond its existing ones.  Companies diversify to achieve greater profitability.

Diversification will never be an easy game, and managers must study their cards carefully. It takes smart players to know when it’s best to raise their bets and when it’s best to fold.

Havard Business review research suggests that if managers consider the following six questions, they can push their thinking still further to reduce the gamble of diversification. Answering the questions will not lead to an easy go-no-go decision, but the exercise can help managers assess the likelihood of success.

The issues the questions raise, and the discussion they provoke, are meant to be coupled with the detailed financial analysis typical of the diversification decision-making process.

Together, these tools can turn a complex and often pressured decision into a more structured and well-reasoned one.

Thus, when managers consider whether or not to diversify, they should ask themselves the following questions:

What can our company do better than any of its competitors in its current market?

Before diversifying, managers must think not about what their company does but about what it does better than its competitors.

What strategic assets do we need in order to succeed in the new market?

To diversify, a company must have all the necessary strategic assets, not just some of them.

Can we catch up to or leapfrog competitors at their own game?

Will diversification break up strategic assets that need to be kept together?

Managers need to ask whether their strategic assets are transportable to the industry they have targeted.

Will we be simply a player in the new market or will we emerge a winner?

What can our company learn by diversifying, and are we sufficiently organized to learn it?

Like good chess players, forward-thinking managers will think two or three moves ahead.

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