MINING IN EAST AFRICA
COUNTRY
LANGUAGES
POPULATION GDP
TANZANIA
SWAHILI /
ENGLISH
44.9 MIL
$67.9
BIL
COASTAL
KENYA
SWAHILI /
ENGLISH
43 MIL
$71.4
BIL
COASTAL
UGANDGA
ENGLISH /
SWAHILI
35.9 MIL
$47.8
BIL
LANDLOCKED
RWANDA
FRENCH /
ENGLISH
11.7 MIL
$13.7
BIL
LANDLOCKED
BURUNDI
KIRUNDI /
FRENCH
8.6 MIL
$5.2 BIL
LANDLOCKED
ETHIOPIA
REGIONAL 12
91.2 MIL
$94.9
BIL
LANDLOCKED
SOMALIA
SOMALI /
ARABIC
10.1 MIL
$5.9 BIL
COASTAL
MOZAMBIQUE
PORTUGUESE
24.5 MIL
$23.9
BIL
COASTAL
COUNTRY
Precious Gemstones
Metals
Industrial
Minerals
Rare
Earths
TANZANIA
X
X
X
X
KENYA
X
X
X
X
UGANDA
**
**
X
RWANDA
X
BURUNDI
X
ETHIOPIA
X
SOMALIA
X
MOZAMBIQUE
X
X
X
Coal / Peat&
Natural gas
X
*
X
X
X
X
X
**
X
X
X
X
X
Country
Mining & Processing
Tanzania
Gold, Iron Ore, Nickel, Copper, Cobalt, Silver, Diamonds,
Tanzanite, Ruby, Garnet, Limestone, Soda Ash, Gypsum, Salt,
Phosphate, Coal, Uranium, Gravel, Sand & Dimension stone
Kenya
Copper, Gold, Iron Ore, Zircon, Titanium & Zirconium, Hematite,
Ilminite, Nickel, Cobalt, Zinc, Lead, Soda Ash, Fluorspar,
Diatomite, Vermiculite, Gemstones
Uganda
Diatomite, Feldpar, Granite,Graphite, gypsum, Kaolin, Kyanite,
Limestone, Marble, Mica, Phosphates, Rock salt, Silica sand, Talc,
Vermiculite
Rwanda
Cement, Columbite, Gold, Natural gas, Peat, Tin, Tungsten
Burundi
Gold, Niobium, Peat, tin, Tungsten
Ethiopia
Clays, Coal, Columbite, Diatomite, Feldspar, Gemstones, Gold,
Gypsum, Lime, Platinum, Salt rock, Silver, Soda ash, Dolomite,
Granite, Ignimbrite, Limestone, Marble, Rhyolite, Sand, Scoria,
Iron ore
Somalia
Gold, Natural Gas
Mozambique
Aluminium, Beryl, Clays, Coal, Diatomite, Gemstones, Gold,
Natural gas, Niobium, Quarts, Sand, Garnite, Limestone, Marble,
Titanium, Zirconium
INFRASTRUCTURE
Roads
Airports
Rail
Ports
Tanzania
947,300 sq km
Paved:6,578km
Unpaved:8,4471km
106
P: 11
3,689km
2
Kenya
580,367 sq km
Paved: 11,197km
Unpaved:149,689km
195
P: 15
2,066km
2
Uganda
241,038 sq km
Paved: 16,272km
Unpaved:54,474km
46
P: 5
1,244km
None
Rwanda
26,338 sq km
Paved:2,662km
Unpaved:11,346km
7
P: 4
None
None
Burundi
27,830 sq km
Paved: 1,286km
Unpaved: 11,036km
7
P: 1
None
None
Ethiopia
1,104,300 sq km
Paved: 6,980km
Unpaved: 29,489km
58
P: 17
681 km
None
Somalia
637,657 sq km
Paved: 2,608km
Unpaved: 19,492km
62
P: 7
None
2
Mozambique
799,380 sq km
Paved: 6,303km
Unpaved:24,028km
100
P: 21
4,787 km
3
ENERGY
Production
KWh
Consumption
KWh
Transnational issues
Tanzania
4.489 bil
3.589 bil
Stable
Dispute with Malawi
Kenya
6.573 bil
5.516 bil
Stable
Uganda
2.445 bil
2.217 bil
Armed Fighting –
Ethnic groups
Rwanda
240.2 mil
301.4 mil
Armed Fighting –
Ethnic groups
Dispute with Burundi
Burundi
127 mil
198.1 mil
Armed Fighting –
Ethnic groups
Dispute with Rwanda
Ethiopia
4.039 bil
3.648 bil
Ethnic fighting, civil
unrest
Somalia
315 mil
293 mil
Unrest, fighting &
unstable, Piracy
Mozambique
16.79 bil
10.19 bil
No Disputes / Stable
COMMUNICATION
Telephone main lines Mobile
Assessment
Tanzania
161,100
25.666mil
Marginal
Kenya
283,500
28.08 mil
Inadequate /
small
Uganda
464,800
16.697 mil
International &
internet satellite
Rwanda
38,900
4.446 mil
Inadequate
Burundi
30,000
1.915 mil
Sparse, low
capacity
Ethiopia
829,000
14.172 mil
Inadequate
Satellite req
Somalia
100,000
655,000
Inadequate and
limited
Mozambique
88,100
7.855 mil
Fair
CREDIT RATING
FITCH
STD & POOR
DAGONG (CHINA
BASED)
TANZANIA
B (Stable)
B (Stable)
-
KENYA
B+ (stable)
B+ (Stable)
B (Stable)
UGANDA
B (Stable)
B+ (Stable)
-
RWANDA
B (Stable)
B (Stable)
-
BURUNDI
-
-
-
ETHIOPIA
-
-
CCC (stable)
SOMALIA
-
-
-
MOZAMBIQUE
B (Stable)
B+ (stable)
-
SOUTH AFRICA
BBB (Stable)
BBB (Stable)
A (Negative)
NIGERIA
BB- (Stable)
BB- (Stable)
BB+ (Stable)
GHANA
B+ (Stable)
B (Stable)
-
ZAMBIA
BB- (Stable)
BB- (Stable)
BB+ (Stable)
AAA
Highest credit
quality
Lowest expectation
of default risk
AA
Very High credit
quality
Very low default
risk
A
High credit quality
Low default risk
BBB
Good credit quality Default risk
currently low
BB
Speculative
Elevated
vulnerability to
default risk
B
Highly speculative
Material default
risk
CCC
Substantial credit
risk
Default real
possibility
CC
Very High levels of
risk
Default appears
probable
C
Exceptional high
levels
Default is
inevitable
GENERAL POINTS:
APPLICATION FOR MINING RIGHTS
(1)
An application for a mining licence for minerals
shall be made to the Minister in the prescribed form and shall be
accompanied by the prescribed fee.
(2)
Every application under this section shall(a) identify the relevant prospecting licence;
(b) describe the area, not exceeding the maximum area
prescribed over which a mining licence is sought, and
shall be accompanied by a sketch plan in sufficient
detail to enable the Minister to identify the area;
(c) describe the mineral deposits in the proposed area;
(d) include a feasibility study which should set out(i) the proposed programme of mining operations
including such measures as the applicant proposes to take in
relation to any adverse impacts to the environment;
(ii) the estimated recovery rate of ore and the applicant's
proposals for its treatment and disposal;
(iii) the applicant’s estimate of the quantity of minerals to be
produced for sale annually;
(e) state the duration, for which the mining licence is sought;
(f) append a plan on employment and training of “locals” and
succession plan on expatriate employees in accordance with the
Employment and Labour Relations Act as appended to the special
mining licence;
(g) include a statement giving particulars of financial and technical
resources available to the applicant;
(h) submit a procurement plan of goods and services available in
the country
(i) include such further information as the Minister may required for
disposing of the application.
Years
Tax
Royalties
Tanzania
10
35%
3 to 5% of market
value
Kenya
20
Res 30%
Non Res: 37.5%
5%
Uganda
20
25% to 45%
Based on income
3% to 5 %
Mozambique
30
32%
3% to 8%
TAX INCENTIVES
MOZAMBIQUE
Resident Companies
Corporate income tax
−Standard rate
32%
− Tax free zone operators and enterprises (industrial zones) exemption in the
first 10 years; 50% reduction of general tax rate from 11th to 15th year; 25%
reduction in remaining years of the project.
−Tax free zone operators and enterprises (special zones) exemption in the
first 5 years; 50% reduction of general tax rate from 6th to 10th year; 25%
reduction in remaining years of the project.
Special Tax on Mining exploration
mineral).
3% - 10% (depending on the nature of the
Special Tax on Oil exploration
Special Tax on Gas exploration
10%
6%
Capital gains
incorporated in the taxable business income
Dividends
20%*; exempt if paid to another local company in which the
shareholding is at least 20%.
Comments on trading issues in Africa
“Defragmenting Africa”