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Vivo Energy Rwanda Acquires ENES, GEMECA Petroleum Assets

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Vivo Energy Rwanda, the company that markets and distributes Engen-branded fuels and lubricants in Rwanda, has acquired Energy Solution (ENES) and GEMECA petroleum assets.

The move is meant to increase its retail network and provide more convenience to its customers, according to the company’s executives.

With this acquisition, Vivo Energy Rwanda will increase its network by 13 operational service station and three new land banks which plan to be developed within the following 12 months.

Vivo Energy’s retail network will thus increase from 24 to 40 service station sites across the country.

Hans Paulsen, Executive Vice President of Vivo Energy East and South said that adding 13 new sites to their network, and significantly increasing its market share is a milestone that places a lot of value on the experience provided to customers.

In the past year, the company’s focus has been on raising the standard of convenience services, quick shops, car wash and other facilities in order to offer unmatched customer service at Engen-branded service stations.

“We are delighted to bring more stations and more choice to our customers with these newly added service stations,” Paulsen said.

This acquisition builds on the company’s strategy to invest to grow the business. Currently, the ENES and GEMECA branded service stations are being rebranded to Engen.

Paulsen continued: “We targeted the ENES and GEMECA portfolio for the outstanding quality of its staff and assets, its key account customer base, and for the strategic fit with our business. As such, I am very pleased that our Managing Director Saibou Coulibaly and the entire team at Vivo Energy Rwanda have been able to close this deal with both companies alongside our partners.”

Rwanda Development Board (RDB) Deputy CEO, Zephanie Niyonkuru, who was invited at the ceremony to announce the acquisition, said that this private transaction reflects a lot about the current business environment in Rwanda.

He said that this is a “vote of confidence” that Rwanda is a conducive environment for such transactions to take place. “In fact, we are encouraging the business community to take advantage of other existing facilities such as the Rwanda Stock Exchange,” he said, adding that, “when such transactions are going on, we would encourage you to consider cross-listing on the Rwanda Stock Exchange and raise more capital, but also give an opportunity your customers to be shareholders into the company.” “When one stops at the gas station to refuel, they should feel proud that they are spending to support the business they have stake it.”

Meanwhile, this transaction was facilitated by Bank of Kigali (BK).

BK CEO, Dr. Diane Karusisi told Taarifa on Thursday evening that they believe in consolidation because they have an advantage to go into economies of scale, invest in better services, safety and standards as opposed to small companies that struggle to meet the minimum standards.

“We picked interest because they also have a strong network across the globe, they are listed on the South Africa and London Stock Exchanges,” Dr. Karusisi said.

Vivo Energy Rwanda will ensure the smooth transition of this process working together with ENES and GEMECA.

Meanwhile, the company has also launched partnership with Victoria Motors where it will be installing electric charging points at service stations.

This is line with its mission to decrease carbon emission and offer eco-friendly solution solutions to  customers.

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Mozambique Scandal: Credit Suisse & U.S. Conclude Deal

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Credit Suisse Group AG is nearing an agreement with the U.S. government that would resolve a criminal probe regarding its role in a U$2 billion Mozambique bond scandal, according to people familiar with the matter.

The discussions with the U.S. Justice Department involve a deferred prosecution agreement that would include a fine, according to the people, who asked not to be identified because the talks are confidential. An agreement is expected to be announced Tuesday.

Any deal with U.S. prosecutors would be the latest action in a multi-year, international legal saga arising out of the 2013-14 deals that were supposed to fund a new coastal patrol force and tuna fishing fleet in Mozambique, one of the world’s poorest countries.

In a 2018 indictment, the U.S. Justice Department alleged the contracts were a front for government officials and bankers to enrich themselves.

Three former Credit Suisse bankers have pleaded guilty to U.S. charges stemming from the scheme.

Credit Suisse declined to comment on any agreement, as did the U.S. Justice Department.

A deal could help put to bed one scandal, even as the bank has been punished this year by investors for its stumbles with Archegos Capital Management and Greensill Capital, which have spurred broad management shakeups.

Mozambique has filed suit against Credit Suisse and shipbuilder Privinvest, one of several cases in U.K. courts that involve the bond deal.

Unlawful Conduct’

In defending its London lawsuit, Credit Suisse has insisted that it was deceived by rogue bankers and couldn’t be held responsible for their “unlawful conduct” when it arranged the loans in early 2013.

The Swiss bank has said it carried out its usual due diligence before the transactions and was aware of the risk of bribery and corruption.

Andrew Pearse, who led the global financing group in the bank’s London office, testified at a federal trial in Brooklyn, New York that he’d pocketed at least U$45 million in illicit payments for his role in the arrangement of the loans.

The Credit Suisse loans were for three separate maritime projects including a tuna fishing fleet, the building of a shipyard and surveillance operation to protect Mozambique’s coastline and protect against pirates, according to Pearse.

Mozambican government officials, corporate executives and investment bankers stole about U$200 million, prosecutors said.

Both Pearse and his successor at the bank, Surjan Singh, who also pleaded guilty, testified at the 2019 trial of Jean Boustani, a Privinvest Group executive accused by the U.S. of being behind the plan to get Mozambique to borrow billions of dollars and overpay for dubious maritime projects.

A third banker, Datelina Subeva, Pearse’s subordinate, also pleaded guilty but didn’t testify.

All three bankers await sentencing. After a six-week trial in late 2019, a federal jury cleared Boustani of all charges.

Bloomberg

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DRC Opposition Protests Against Phone Tax

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Martin Fayulu, DRCs leader of opposition coalition LAMUKA has called upon all citizens to take to the streets and demand for the abolition of a controversial mobile phone tax.

In June 2020, the DRC government set up – through the ICT, Post and Telecoms Ministry – a CEIR system (Central Equipment Identification Register), with the aim to fight fake devices and the theft of mobile devices.

However, Telephony mobile users claim the Mobile Device Registry (RAM), a controversial new tax is robbing them of their units and making them poorer.

In terms of RAM, mobile operators are cutting a big chunk of units monthly from their customers’ mobile devices, which many users believe is too high and unnecessary.

“We are calling for the immediate withdrawal of RAM. Because it’s theft, a scam. That no one is demobilized. Let’s march and denounce it because it is outright  theft. Once withdrawn, all money collected must be returned, ”said Martin Fayulu.

During a meeting this Saturday, October 16, 2021 in Kinshasa, Martin Fayulu called for the outright abolition of this fee.

During the rally, the leader of Lamuka pinpointed other topical issues, including the issue of appointing the leaders of the Independent National Electoral Commission (CENI).

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Tanzania’s Economy Records 4.3% Expansion in 2nd Quarter

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Tanzania’s economic outlook seems very impressive as the country registered a 4.3% expansion between April and June according to the country’s National Bureau of Statistics (NBS).

Compared to the country’s economic performance in the same period last year, there has been a 0.3% upward expansion.

Briefing the media on Friday, Daniel Masolwa NBS Director of Economics Statistics, said, “Real GDP increased to Shs 33.4trillion from Shs 32trillion in the corresponding period in 2020, an equivalent to a 4.3% growth,” he said.

During the second Quarter of 2020, Tanzania’s economy registered the lowest growth rate of 4.0% since 2017 mainly due to the devastating effects of Covid-19 pandemic following the introduction of lockdowns and many countries to mitigate spread of this pandemic.

However, Masolwa tried to cool down any skepticism saying, the annual economic growth in 2021 is projected at a 5.0% rate. In terms of economic activities, he  said, during the period under review, information and communication attained the highest growth of 12.3%, followed by electricity generation at 12.1%.

Meanwhile, other services include arts and entertainment and households as employers (10.8%), accommodation and food services (10.1%), water (8.4%), and mining and quarrying (7.3%).

According to Masolwa, the expansion of economy by 4.3% during the second Quarter of 2021 was spearheaded by key drivers of growth which include Agriculture (13%), transport and storage (8.4%), trade and maintenance (8.1%), manufacturing (7.6%) and construction (7.1%).

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