Weekly roundup of news from the Eastern African and Indian Ocean region – Third edition October 2011

East Africa News
EAST AFRICAN CURRENCIES KEEP SLIDING
The three main East African currencies, the Kenya Shilling, the Tanzania Shilling and the Uganda Shilling are all trading in record low territory now to the dismay of the business community and local consumers but the delight of foreign visitors, who get substantially more for their Dollars, Euros and Pounds than a month ago. Rwanda is a notable exception from this trio as usual little data if any are available from the EACs fifth member Burundi since The Land of a Thousand Hills has also defied the trend of double digit inflation so far which has hit the founder trio of the EAC.
Kenyas shilling is progressively advancing towards the 110 versus one US Dollar margin which has been suggested three weeks ago by financial analysts while the Uganda Shilling is steadily creeping towards the intermediate 2.900 mark versus the greenback, eventually feared to reach the dreaded 3.000 while in Tanzania the currency has descended deep into the 1.700 range with further outlooks equally grim.
Speculation is thought to be one of the key factors in these developments though some of the underlying factors like inflation, trade imbalances and excessive government spending, in particular in Uganda, have ran down foreign currency reserves to levels which makes the Central Bank chiefs more than just a little nervous. The added insurance levies heaped on imports and exports by the threat of ocean terrorists from Somalia too has cost the East African economies dearly and the threat of conflict spreading from Somalia across the border, recent abductions of foreigners by militias are a case in point, is further clouding the outlook for tourism and impacting on the economy as a whole.
In Kenya the constitutionally necessitated formation of new bodies is considered a huge drain on an already stretched economy, besides the income of parliamentarians said to be amongst the highest in the world, and elections looming next year does not help either to restore market confidence on the quick. In Uganda the creation of ever more districts has caused government budgets to strain at the seams and spats between Bank of Uganda chief Prof. Tumusime Mutebile and the powers that be have not helped either to calm the markets down nor inject some positive perceptions about the immediate future in the Pearl of Africa. In fact, latest developments touching on the nascent oil sector have cast grave doubts over the anticipated production start as parliament is now formally investigating alleged corrupt practices which could throw the sector into turmoil for a while.
Economic prospects overall for a united East Africa are generally thought brighter than the presently looming clouds would suggest but this integration is neither absolutely certain, in view of the brakes being applied by one memberstate on fast tracking crucial issues like freedom of movement of people and cross border investments non tariff barriers playing a major role nor is there a reliable time frame available right now. Yet, tourism, one of the regions economic locomotives, is one of the sectors bedeviled by NTBs and generation old sentiments, with key borders between the Masai Mara and the Serengeti remaining closed over economic fears rather than environmental concerns as it being publicly professed, while safari airlines cannot fly their clients straight into a national park across the borders, with the exception of Uganda which has designated several fields as gazette entry and exit points several years ago already in preparation of greater integration. Precision Air, arguably the most successful airline in Tanzania and number three in the wider region behind Ethiopian and Kenya Airways, has often been portrayed by such backward forces in Tanzania as foreign, i.e. Kenyan though not true in fact as 51 percent of the shares are held by a local citizen. Here a crucial taxi way was not built in timely fashion by Tanzania Airport Authority to connect a multi million US Dollar investment in a maintenance hangar at JNIA in Dar and their IPO suffered multiple delays right up to the launch date last Friday, when several commercial banks inexplicably received the IPO application forms too late in the day.
Instead of pooling resources and standing united, these divisions, amongst many more, are one of the causes for the lackluster economic performance and are aiding the slide of the national currencies. While a plan exists to introduce an arguably stronger common East African Shilling in due course, this is a long way off and the prospect alone of a common currency does not help at present to stem the onrush of the devaluation tide. And as the saying here goes, watch this space for more updates and fresh thoughts.

Uganda News
AIR UGANDA SET FOR ANOTHER CHANGE AT THE TOP
Hugh Fraser, Air Ugandas Chief Executive, is reportedly set to leave the airline at the end of October. His main achievement during his time at U7 was to return the carrier to level keel and bring it into calmer waters, following multiple management changes in key positions during the first one and a half years of Air Ugandas operation. Inexplicably were MD 87s introduced by an Italian management which failed to appreciate the ability of the market to absorb these aircraft, thought too large to fly with any chance of breaking even, and Hugh on his arrival swiftly returned to implement the initial strategic plan. Stung by substantial losses the principals of U7 eventually consented to bring 2 CRJ200 into the fleet, keeping just one of the twice as large MD 87s as a backup aircraft and to serve the route to Juba on most traffic days.
Hugh also restored friendly relations with the travel agents community and returned to a cordial working relationship with the Ugandan regulators, which had suffered somewhat from what was at times described as abrasive and confrontational style by the initially largely Italian managers. Gods speed to Hugh and Happy Landings wherever he is headed to for a new assignment.
New in the apparently hottest airline seat across East Africa is Mr. Kayle Haywood who joins Air Uganda from Air Arabia and has previous experience with Gulf Air and British Airways. Welcome to Uganda, the Pearl of Africa.

SOUTH AFRICAN AIRWAYS HOSTS SOUTH AFRICAN WINE FESTIVAL
Star Alliance member South African Airways, the only airline flying a daily nonstop service between Entebbe and Johannesburg, on Friday night hosted the travel and business community to their annual South African Wine Festival, co-sponsored by fellow South African companies MTN and Stanbic Bank, both of which are long established market leaders in Uganda in their respective sectors. The Kampala Serena was the venue of the function and provided as usual excellent food though the prawns were decidedly in short supply and even the skies over the city cleared in time after much of the day was a total washout with rain threatening to spoil the party. Sponsors speeches were kept to a bare minimum, leaving participants to interact, exchange the latest news from the aviation and travel scene in Uganda and fuel the rumour mill for which Kampala has become so famous, but most important to sample a wide selection of wines from participating South African vineries.
On offer were some of the best South African wines to taste and the Ingenuity Red by Nederburg was the undisputed winner after impressing this correspondents spoiled palate. Wine maker Wilhelm Pienaar was at hand to give expert information on the vineyard locations, grapes used and the process to make this superb wine, showing that South African wines indeed can now claim their place amongst the very best, a proud achievement for the African continent.
South Africans daily service arrives every evening at 7 pm in Entebbe, allowing for easy onward connections from Johannesburg and then returns the next morning to Joburg after a nightstop in Uganda. Visit www.flysaa.com for more information on Star Alliance member SAA and www.nederburg.co.za for details on one of South Africas foremost winemakers.

NEW FIBRE OPTIC BACKBONE GOING INTO OPERATION IN UGANDA
Years of waiting and billions of Uganda Shillings in expenditure are now coming to a successful conclusion as Chinas Huawei is handing over the finished product to the Ugandan government, which has paid for the installation of fibre optic cables across the country to connect The Pearl of Africa within and with the rest of the world at affordable cost. This second phase now connects Uganda to the borders with South Sudan but also to Kenya where it supplements existing fibreoptic networks by the three commercial cable operators. The present capacity of 2.5GB 24 core cable, with the option to upgrade to 10GB, will for the time being enable data traffic for outsourced business activities including e-learning and e-medicinal applications.
The new public fibre optic connection is thought to provide redundancy to the commercial cables, which in the past have been prone to vandalism or accidental down times, hugely affecting all internet based communications and business transactions. The final project phase will go underway soon aimed to connect Uganda with the Rwandan border, completing the rollout of fibre optic networks across the country, although that has been talk to also connect the borders with Tanzania on the Western side of Lake Victoria in anticipation of a link from Dar es Salaam, which would provide added redundancies, as the saying here goes just in case.
On a related note it could not be established if at all the new links will help to bring the cost of internet connections to make it more affordably, especially for schools and institutions of higher learning, in the capital, key urban centres and rural areas, and for business and domestic users many of whom have often complained about the high cost of using the internet, which puts it beyond what most Ugandans can afford. Watch this space.

BUJAGALI ENTERES TEST PHASE
The Bujagali hydroelectric power plant has reportedly commenced the testing phase with the first installed 50 MW turbine, due to go into production in November, according to reliable sources.
The plant, worth over 860 million US Dollars, was initiated by the IPS Kenya, itself part of the Aga Khan Fund for Economic Development, in short AKFED.
Long suffering electricity users, hotels, manufacturers, the business community at large and of course households across the country have been waiting for this moment with bated breath, and often in darkness at night, as the Ugandan government failed to pay up contractually agreed subsidies to independent thermal power plant operators, causing several of them to reduce production or shut down altogether. The has in recent months caused widespread electricity rationing, not helped by another much critizised decision to phase out diesel propelled plants over cost considerations, instead of awaiting the coming on line of Bujagali. Once in production the new hydro electric power plant will progressively add the remaining turbines, with the second on in place by December and the fifth unit by about April 2012. When in full production Bujagali is expected to feed 250 MW into the national grid at which time power rationing should be a thing of the past. In yet another twist however was it learned that tariffs might not be reduced when the cheaper electricity becomes available, as statements have been attributed to government sources that the savings would be used to recover the substantial subsidies paid out already, or still due to be paid out, which if true would amount to a broken promise though not unexpected considering that the coffers of government are quite empty.
The opening of Bujagali has also brought changes to the adventure tourism activities along the upper Nile valley. Rafting has shifted to a starting point below the power plant, as much of the upstream rapids, including the Bujagali Falls proper are now fully or partly submerged, creating a mini lake between the dam of the power station all the way to below the Nile Porch and the Nile River Explorers base camp. However, with these rather inevitable developments new opportunities have arisen and additional tourism activities like house boating or even waterskiing can now be introduced, though the rafting fraternity will still remember some of the biggies they have now lost as they take their adrenalin junkies down the river.
Meanwhile have sections of the business community started to demand that government make public the progress on the newly planned Karuma Falls power plant, which in a few years time should bring another 600 MW on line, but for which information of late has become too little for comfort, causing fears of delays which in a few years time could result in more electricity rationing, should Karuma not be ready when the gains made through the commissioning of Bujagali have been absorbed by increased use of electricity in the country. Watch this space.

SHELL ACCUSED OF DAYLIGHT ROBBERY OVER NEW AVGAS PRICES
Shell Uganda is fast becoming a byword for all things negative and bad for those in the aviation fraternity using traditional piston engined aircraft, when news emerged that the cost for AVGAS has just again been raised inexplicably by the company. A large number of aircraft registered in Uganda, used by locally registered air charter companies and flying schools, but also owned by individuals for business or leisure flying, continue to use AVGAS and will do so for many years to come.
Information received from regular aviation sources confirms that the cost of a litre of AVGAS in Nairobi for instance is at present US Dollars 1.59 while in Uganda, even considering the extra delivery distance, a litre now sells for an incredible US Dollars 2.81. Aviators have blamed the company of profiteering and one more outspoken source called it alleged racketeering, mindful of the legal consequences, but overall has this latest increase in fuel cost put a damper on the local aviation scene.
Pleasure flying has according to a source at KAFTC reduced considerably and the cost for training has risen sharply again, making it ever harder for the next generation of young Ugandans being able to afford getting the initial PPL before moving towards a CPL where they can get the hours needed before they can be employed.
While the chronic shortages have now been addressed through the initiative of Kajjansi based operators which installed tanks and a bowser, reportedly Shell again was unable to guarantee regular supplies making this significant added investment necessary, the cost differential of AVGAS between Kenya and Uganda, even considering that the value of the Uganda Shilling has depreciated considerably, can no longer be justified, more so as the commodity trades in US Dollars anyway.
Safari operators using air charters in their itineraries for clients also appear upset by the constant added fuel supplement charges which have driven the cost of upmarket safaris further up, making the destination even more pricey than it was before and starting to have a serious impact on the use of chartered aircraft.
Meanwhile has a regular CAA source feigned ignorance over the problem but had to concede that fuel suppliers are working under a CAA concession and that overpricing and arbitrary price fixing would very likely contradict concession terms, and while wishing not to be quoted suggested that affected local airlines make formal complaints to the Civil Aviation Authority providing all the relevant data and details including price comparisons with Kenya, Tanzania and Rwanda. Watch this space for the inevitable next chapter of another never ending story.

QATAR AIRWAYS CEO AKBAR AL BAKR EXPECTED IN UGANDA FOR INAUGURAL FLIGHT
It was confirmed yesterday that the outspoken CEO of Qatar Airways will be present at the launch of flights between Doha and Entebbe on the 02nd November, when the inaugural flight will come to Uganda.
Also published was the schedule for the new connections, which will see the new kid on the block fly daily nonstop using an A320 aircraft.
Officials at the Civil Aviation Authority this correspondent spoke with expressed their delight with the additional flights, saying that the expansion by Qatar Airways in this region is a natural progression, considering that the airline is already serving Nairobi and Dar es Salaam.
A source from the Qatar Airways office in Kampala pointed out that Entebbe will be the airlines 16th African destination which is a commitment to connecting Africa via Doha to the world.
Qatar, in the limelight this year for bagging the FIFA World Cup for 2022, has in recent years made a significant impact on the global aviation scene and will next year open a brand new super airport only a few miles away from the current terminal, making it a new hub of Qatar Airways, the fastest growing premium airline in the recent past. The new mega airport will give connecting travelers the best facilities when open, be it in the quality of duty free shopping, lounges, restaurants and other facilities and cater for the expected growth in traffic routing via Doha in the future.
Parallels are becoming visible when comparing the airlines global expansion drive with Gulf cousin Emirates, which successfully put itself on the aviation map and Qatar Airways is pursuing a similar global growth, with the added component of being a 5 Star Airline as far as inflight services are concerned. Presently operating a fleet of just over 100 aircraft this number is set to double when deliveries commence of the B787 Dreamliner, more B777 aircraft already on order and of a range of Airbus models including the giant A380 and the brand new A350, which is still under development by the European manufacturer. Watch this space as the countdown is now in full swing towards the launch of Qatar Airways flight to Entebbe, connecting The Pearl of Africa with the rest of the world and giving travelers to and from the country added choices.

SHERATON TO HOLD OKTOBER FEST FROM 27TH TO 29TH
Kampalas annual Oktoberfest will as usual be held at the Sheraton Kampala Hotel in the heart of the city, where the German and international community will be joined by Ugandans keen to sample German beer, German food and German umptata music.
The Oktoberfest is an annual event, celebrated not just in Munich but around the world by the German Diaspora and expatriate communities and generally a highlight in the annual calendar of events, often enjoying corporate partnerships from companies with links to the old country. German chefs tend to be flown in, as are brass bands and most importantly drums upon drums of beer from Bavaria to show off the culinary delights to those unable to make it in real time to Munich, where the original lasts for two weeks between the end of September and the beginning of October. Time to dust the Janker and the traditional Bavarian hat with the Gemsbart and mark the last weekend of the month when the who is who in Kampala will stream to the Sheraton once again for some special German style hospitality.

Todays regional forum has four specific objectives on the agenda as listed below:

Outcomes and results will as usual be published here in due course, so watch this space.

Kenya News
KENYA GOVERNMENT CHANGES STRATEGY, ALLOWS HOT PURSUIT
In a long awaited policy shift has the Kenyan government now given their military, and probably all security organs involved in keeping Al Shabab at bay, permission to cross the border with Somalia in pursuit of militants. While it was not immediately known if this is being applied in retrospect to the cases of the abduction of four foreigners from Kenyan soil, first a tourist from Kiwayu, then a part time resident from Manda Island in Lamu and two days ago two MSF doctors who were working at the worlds largest refugee camp a short distance from the Somali border, that much is now clear that any further incursions will trigger a military response. A statement released yesterday in Nairobi the minister for internal security announced that The Kenyan Government has decided to take robust measures to protect and preserve the integrity of the country and the national economy and security. This is taken as a thinly concealed reference to keeping Kenyas vital tourism sector assured that border security and what is generally considered a forward defense is not officially on top of the agenda and that finally all measures available will be taken to ensure the safety of visitors, and Kenyans of course alike. The Dadaad camp near the border now houses over half a million refugees from Somalia, most of which are trying to escape the senseless violence inflicted on them by hardline Islamic militias, which try to enforce a warped and what has been described perverted Islamic rule, or the cross fire when fighting breaks out amongst competing militias trying to widen their territorial control. However, there have been allegations that militants have used the constant stream of refugees across the border to the UN operated camp to hide amongst genuine asylum seekers aimed to create a fifth column in the camp or else slip away into Kenya ready to commit terror attacks. International staff have been withdrawn from the camp for the time being and Kenyan security operatives are now starting to screen the camp population attempting to flush out militants posing as refugees.
It is understood that several units of the Kenya Army and also of the Kenya Air Force have been mobilized and are enroute already to their new deployment areas, a development reminiscent to the Shifta War in the 1960s, when the government in Mogadishu tried to repossess what they claimed was Somalias land across the border in Northern and North Eastern Kenya, leading to an undeclared but nevertheless active war, which Kenya eventually won. This was the only active engagement Kenyan troops ever had to undertake, other than countering a coup attempt by the air force on 01st August 1982, when they were deployed with General Service Units and other pro government security organs to counter the coup plotters, clear them off the streets of the capital and neutralize them.
Kenyas navy is already deployed since the second abduction in Lamu and is now actively patrolling the waters along the extensive coastline from the Somali border to beyond Lamu and they too it is understood from a Nairobi based source are now free to engage in hot cross border pursuit. If this is a broad signal that Kenya is now actively hunting across the border for the militants and their hostages has not been confirmed but it is thought a likely scenario, considering the heated internal debate between a government which has hitherto sat back and reacted while the public at large demanded active and robust responses against the constant violation of the countrys border with Somalia.
The most likely scenario now seems that units of the Kenya Army, supported by air force surveillance and navy units, will establish a forward buffer zone inside Somalia to widen the distance militants would have to travel to get into Kenya without being challenged and then run hot pursuit missions on the ground, assisted by air support, very likely in a coordinated fashion with the African Union mission in Mogadishu, which is also seeking more troops to expand their operational capabilities and push the militants back.
This latest development has been broadly welcomed by regional powers already involved in the AU mission as it will likely force the militants to fight on two fronts in the future, and it is understood that in particular Ethiopia is keenly monitoring Kenyas move, very likely prompting a renewed engagement in Somalia in support of the AUs force on the ground. There is also greater pressure on the UN Security Council now to consider and decide on imposing a full air and sea embargo on Somali to make it considerably harder for Al Shabab and other militants to get fresh supplies from their foreign godfathers and either complement or take over the role the African Union has played on behalf of the world community in the past years.
Meanwhile though have words of caution also been voiced, demanding that security inside Kenya be stepped up considerably and immediately, following this change in policy, to prevent any attempts by Al Shabab and other Al Qaida affiliates to destabilize Kenya, with in particular the tourism and aviation sectors being potential targets. Watch this space as new developments are evolving.

KENYA AIRWAYS GETS SHAREHOLDER APPROVAL FOR NEW SHARE ISSUE
The Annual General Meeting of The Pride of Africa at the Bomas of Kenya in Nairobi yesterday produced the anticipated result, when the shareholders overwhelmingly voted YES when the proposal by the Board of Directors for a new share issue was tabled. A meeting of the board on 13th September had passed the relevant resolution although the fact itself was known for some time already, only awaiting pen being put to paper ahead of the airlines AGM.
Kenya Airways intends to raise much needed funding from the new share issue to finance the ongoing expansion drive, and key shareholders like the Kenyan government and KLM / Air France have already indicated that they will take up their entire allotment, which in the case of government alone will cost them an approximate 60 million US Dollars.
With the shareholder approval now in the bag the final stage will be with the financial regulators which have to sanction and approve the planned transaction before shareholders will receive formal notification of their entitlements to new shares and the final price tag. The required Cautionary Statement as prescribed under the Capital Markets Regulations of 2002 for Public Offers, Listings and Disclosures, has been issued following the board meeting in September. News that the financial authorities have approved the application will appear here in due course.

BRITISH TOURIST DEFIES BAD WEATHER WARNING, DROWNS
A tourist from Britain drowned earlier in the week off the beach in Watamu, where he went swimming inspite of strong if not categoric warnings of bad weather, high surf and off limit guidance from the hotel and officials. Kenya has in past days experienced unusually high waves hitting its beaches accompanied by torrential rain and the meteorological department and other offices concerned with public safety had issued warnings in the media to stay off the beaches. Fishermen, though some of them defied the orders, by and large also observed staying on shore due to the strong currents and difficult conditions reaching their fishing grounds. The accident was witnessed by other tourists from the beach who alerted authorities and search and rescue then was dispatched to recover the body. The unusual weather conditions have been attributed to a low pressure system over the Indian Ocean which has whipped up winds and surf but normal weather is expected to resume over the weekend.

UNWTO EXECUTIVE COUNCIL ELECTS KENYAS TOURISM MINISTER AS CHAIRMAN
Tourism Minister Najib Balala was elected chairman of the important executive committee of the UNs World Tourism Organization during the just concluded assembly of the UNWTO in South Korea. The 31 member committee runs the affairs of the UNWTO between general assemblies and for the first time ever met in Africa earlier this year at the Mombasa Serena Resort and Spa.
Balala has been vice chairman of the Executive Committee previously but his elevation to the chairmanship is as much a recognition of Kenya as a force in world tourism as of his own personal work and achievements on the committee.
The global tourism industry is faced with many challenges at present, from the slowing economies around the globe to the crisis in the Eurozone and an array of new and planned eco taxes on aviation, used as a convenient tool by government to create easy but misdirected tax revenues levied on air tickets through carbon taxes and eco duties. Sustainability and ethics too are high on the agenda of the UNWTO in coming months and years and the executive committee will have its work cut out if it is to keep tourism on a sustained growth path.
The UNWTO general assembly this year ran from 07th of October until yesterday 13th October and was held in Geongju / South Korea. Congrats to Hon. Balala for brining this honour back to Kenya and East Africa!

KENYAS AIR TRAFFIC CONTROLLERS GO SLOW
Nairobi aviation sources confirmed a go slow by air traffic controllers overseeing operations at the countrys main gateway Jomo Kenyatta International Airport and also at Wilson Airport, where most of the tourism related safari flights originate.
Negotiations between the Civil Aviation Authority and the Aviation and Allied Workers Union apparently broke down earlier in the week prompting a warning strike which however appears concealed under a work by the book approach, which delayed flights in and out of Nairobi.
Inflation and opportunities to work abroad have made many technical experts currently employed in air traffic control and other key areas of the CAA demand higher packages, to fairly compensate our work and value as one source put it overnight to this correspondent, at least for those who wish to stay at home and not succumb to the overtures of foreign employers, with the Gulf region in particular working like a hoover to siphon out qualified aviation staff as another source had put it a while ago when discussing the pilots situation in Kenya.
There has been no indication at the time of going to press if the work by the book approach will extend into Friday and the weekend or if negotiations between union and employer will resume to seek a negotiated outcome rather than having to face a walk out and strike, which could hugely damage Kenyas economy and have a substantial impact on tourism arrivals, business travel and air cargo shipments of often perishable goods, which would not survive extended storage. Watch this space for updates as and when available.

ABDUCTION OF AID WORKERS FROM REFUGEE CAMP CASTS FRESH DOUBTS
News broke yesterday of several aid workers in the main refugee camp at the border with Somalia getting abducted including two foreigners working with MSF Medicines Sans Frontiers in another daring raid by suspected Al Shabab militants into Kenya.
It prompted immediate doubts on Kenyas preparedness to counter such cross border raids, more so in the light of the abductions of two foreigners from the Kiwayu Safari Village, which has since been closed due to lack of business, and from Lamus Manda Island, which caused tourism to that destination to collapse too when embassies put an embargo on all but the most essential travel to that part of Kenya.
It was only after the second abduction of a wheelchair bound French woman that the government in Nairobi really got into gear, but according to local sources the exercise at the coast is already showing signs of complacency creeping in while statements about defending our borders have come to all but naught with the latest attack yesterday.
Usually well informed sources with up close experience in the Somalia situation have indicated to this correspondent that Al Shabab, under intense military pressure in Mogadishu already, may have changed tactics and expand its operations into neighbouring Kenya to draw the country into an open confrontation and to open up a new front. There is also speculation that the abducted doctors could also be used, not just as human shields but to treat wounded Al Shabab militants and at least one source questioned if the abduction of doctors was not spurred by the need of the other two hostages taken from the Kenyan coast for treatment to keep them alive as bargaining chips.
Diplomatic activity has reportedly also flared up since these latest abductions and a flurry of activities has been unfolding to hold urgent meetings, not just in Kenya but on AU level and UN level to discuss the Somalia crisis which is now, something this correspondent has long said, openly threatening the peace and prosperity in the wider region. Somalias Islamic militants and Al Qaida affiliates operating from or hiding in Somalia, allegedly backed by the regime in Eritrea and godfathers from further abroad are pitted against a coalition of African Union sanctioned troops, presently from Uganda and Burundi, which however is short of numbers and short of crucial UN decisions on a full air and sea embargo, while off shore a naval coalition is dealing with the menace of piracy originating from Somalia.
It is high time, especially in the light of the successful Special Forces operation to free captives from a highjacked vessel held in a Somali pirates safe haven earlier in the week, the first openly admitted on land deployment, to bring the two sides together and map out a common strategy and approach using land based and sea based forces, plus the capabilities of UAVs now based in the region, to comprehensively tackle the Somalia conflict and robustly engage militants, pirates and Al Qaida affiliates. Otherwise, leaving the burden to Kenya to defend her long and porous border with Somali from cross border raids, will only produce more such problems until a forward defense strategy is employed and action taken inside Somali to deal with the menace. Watch this space.

BRITISH AIRWAYS RAINS ON KENYA AIRWAYSS PARADE
As Kenya Airways is putting final touches on the preparations for todays annual general meeting, where shareholders are expected to sign off on plans for a new shares issue as proposed by the Board of Directors, and only days after the airline announced the acquisition on a long term lease of two more B777-300ER, has British Airways sneaked in a nasty on them, according to industry observers timed to rain on KQs parade. Some weeks ago it was announced here and widely broadcast that Kenya Airways had acquired a B747-400F to commence cargo operations, supplemented by as many as three B737F planes used to feed and de-feed cargo from the wider region. British Airways has now announced in Nairobi that they too would introduce a B747F which was due to fly from London via Nairobi to Johannesburg and back and commencing services ahead of the planned launch by Kenya Airways.
This is a sneaky move said a regular commentator from Nairobis aviation fraternity before adding and the announcement well timed to coincide with KQs AGM and acquisition announcement. This is not a coincidence but was meant to rain on Kenya Airways parade.
Rivalries between the BA led One World alliance and SkyTeam, to which Kenya Airways and major shareholder KLM / Air France belong, are thought to be responsible for this latest competitive push by British Airways on not only the East African but the broader African market, where One World is ranking a distant third behind market leaders Star Alliance and Sky Team in terms of volume share.
They had to come up with something but this is not a problem for us. JKIA is the biggest air cargo market in Africa now and it is our home base. We work hand in hand with our partner KLM / Air France in shipping cargo from Nairobi to Europe already on our daily wide body flights and when our freighter comes on line we will absorb demand already in place. I am not speculating on the timing of the announcement by British Airways, they do their thing and we do ours said a source close to the action from Nairobi, showing confidence that KQs strategy would be a winning one and that there would be no rain on the parade.
Watch this space for aviation updates from Eastern Africa and the Indian Ocean region, fresh off the press.

KENYA AIRWAYS SIGNS UP WITH GECAS FOR TWO MORE B777-300ER

DOUBLE LOSS AS RHINO CUB DIES AFTER MOTHER WAS KILLED
The Lake Nakuru National Park, Kenyas first official rhino sanctuary established some decades ago, was the scene of a double whammy, when first the remains of a female rhino were found with her horn cut off and then news emerged that her cub, only a few months old, has now also died probably of hunger and exhaustion. Information received yesterday via a source from Kenya Wildlife Service confirmed that the female rhino was apparently killed using poisoned arrows before her horns were hacked off. The poachers then artfully concealed the body so that it was only found several days after the incident. The source also insisted that the entire park, relatively compact in fact and largely fenced, is regularly patrolled and that it was only the evasive measures taken by the poachers which prolonged the period to find the carcass.
Security was immediately stepped up not only in Nakuru but other parks too were rhinos are located, as well as on private game sanctuaries and conservancies and investigations launched aimed to track down the syndicate behind the recent killings of rhinos in Kenya.
While still far from the regular slaughter seen in South Africa, Kenya is nevertheless seeing an upsurge in poaching activities, for ivory and rhino horn, and a series of arrests for attempted ivory smuggling at Jomo Kenyatta International Airport and the main seaport in Mombasa in recent months has also highlighted that poaching is becoming a major curse for wildlife conservation.
The source would not go into details of what added security measures are now being taken and where more personnel would be deployed, understandably to keep operational details out of the media, but assured this correspondent that the response would be swift and comprehensive. Watch this space.

KENYA AIRWAYS STRENGTHENS SOUTHERN AFRICAN PRESENCE WITH NEW APPOINTMENT

MORATORIUM AFTER ALL FOR THE MARA AND AMBOSELI?
Announcements made by Kenyas tourism minister Najib Balala a few days ago have heartened the conservation fraternity and given them hope that once the long overdue management plan for the Masai Mara Game Reserve has been launched, due to be gazetted very soon and then becoming law, a moratorium on new developments can be put into effect. This would according to a conservation source allow to study the long term impact of ever more camps and lodges in the wider Mara conservation area and permit the development of mitigating measures to preserve the wilderness status and not literally put another camp on every corner as a regular source from Nairobi put it.
The minister also referred to the immediate neighbourhood of Amboseli National Park, where disturbing attempts were made of late to change the use of land right in the centre of age old migration paths of game, coming and going from the park to as far as the Chyulu Hills. Here too it is expected that stricter measures will be introduced to keep those crucial corridors open while creating added regulations on the use of land owned by the group ranches around the parks.
In this connection is it worth mentioning that the more foresighted Masai clans have entered into conservancy agreements, near Amboseli notably with Porini / Gamewatchers, where the partnership created the Selenkay Conservancy adjoining the park and were not only land degradation was dialed back but where often more game is found than in the park itself.
The present renewed discussion about the new Wildlife Act, following the aborted consultations a few weeks ago, is also aimed to fully iron out concerns about such issues like keeping migration paths open and regulating the creation of new lodges and camps in sensitive sections of parks and game reserves, in the face of relentless pressures by developers who in the words of a regular contributor are about to open a cornershop at every twist of a road in every park and reserve in the country, as long as they can make money. And they give a rats *** about conservation, for them it is only potential profits which matter and if the going gets tough they cut and run. Watch this space.

Tanzania News
KIKWETE BLAMES CORPORATE FAILURES ON INCOMPETENT FOREIGN MANAGEMENT
In an astonishing outburst has Tanzanias president Kikwete laid into selected foreign companies, blaming them for huge corporate failures when opening the Lake Tanganyika Investment Forum earlier in the week. He cited in particular the Tanzania Railways Corporation and the City Water Company although the equally failed joint venture between Air Tanzania and South African Airways falls into the same category.
What was not mentioned is that his own government had selected these partners after what was supposed to have been due diligence and sufficient scrutiny of investors financial and technical capabilities, but it now appears that either these processes were seriously flawed or else influenced by considerations other than meeting the outlined specs alone. It could also not be established in any of the cited cases what role the respective company boards played in which the Tanzanian government was fully represented, and if such corporate failures had not been caused by other underlying reasons, as was the case with Air Tanzania.
When that joint venture was eventually dissolved the ailing airline only made a brief recovery, before spinning out of control again, according to observers due to political influence peddling, poor management chosen for political reliability rather than for technical competence, failure to avail the required funds at the time to renew the fleet and finally the influence of unions. The latter is in fact a reason blamed for scaring potential investors away, fearful of inheriting a substantially overstaffed airline with huge financial obligations and being unable to make the necessary staff changes without being tied up in courts for years, meanwhile bleeding money.
In contrast have many purely private investments, where government has no shares, flourished and grown, inspite of an often more difficult working environment compared to other East African countries like Rwanda and Uganda, casting further doubts on the presidents assertion why past joint public / private enterprises have failed. Watch this space.

SAUTI ZA BUSARA 2012 NEWS
Zanzibars globally renowned music, film and culture festival, Sauti Za Busara, has just announced the final lineup for selected artists participating in next years event, in their latest information sent out to the media.
A partial reproduction of their latest news letter, which also includes a final call for Movers and Shakers as well as for the submission of films by 18th November, is shown here below to give Sauti Za Busara all the publicity they deserve and all the global exposure they need to make the festival the biggest and best yet.

Final call for African music films

Top

We are looking for a variety of stimulating and entertaining music films to screen, from the African Continent and diaspora. These may be full length features, recorded concerts, documentaries, music clips and videos or more experimental films. We are looking primarily for:

> Films with great visuals, quality sound and music that is firmly rooted in Africa

> Films that tell of new and unheard of sounds as well as established artists

> Music films that represent the wealth and diversity of music from East Africa and beyond

Foreign language films should ideally be subtitled in Kiswahili and/or English
Deadline for applications: 18th November 2011.

More information and application form at www.busaramusic.org/callforfilm

If you have a suggestion, link, or African music video you think we should know about, please email busara