Sunday, August 28, 2016

Executives meet for the 2nd Edition of Mikono Speakers International Executive Breakfast Meeting in Dare salaam

More than 150 Business owners  and finance personnel met on the 26th of August  for an Executive Breakfast Meeting hosted by Mikono Speakers in Dare salaam and discussed as to which is the best way for financing the expansion of one’s business. This was focused more on expanding businesses with a turnover of Tsh500million into a billion Tsh turnover, as well as businesses which turnover is above Tsh20 billion and is looking forward to expand into a regional level  to countries like DRC Congo,Burundi,Rwanda,Uganda,Kenya and other nations. The Executive breakfast panelists were experts who had a wealth of knowledge on both debt and equity as ways of financing their businesses.
The  2nd edition of the Mikono Speakers International Executive Breakfast Meeting, was attended by executives and experts from the financial sector, different senior people and  elites from the business community, financial institutions and academia, for discussions on the topic: ‘Expanding your business: equity or debt’ at a breakfast meeting organized Mikono speakers International, and supported by Tanzania Financial services Expo, My Staff check, Dun and Bradstreet credit Bureau.
The panelists included; Adebowale Atobatele General Manager Dun & Bradstreet Credit Bureau Tanzania Ltd ,Sanjay Rughani C.E.O; Standard Chartered Bank,Patrick Mususa: Manager: Projects & Business Development at Dar es Salaam Stock Exchange and Oswald Urassa:Chief Finance Officer at Tanzania Mortgage Refinance Company Limited (TMRC) and Moderated by Ambrose Nshala .

Different experts from the Panel were of the opinion that   delegates may choose either equity or debt or even both depending on the nature of one’s business. Equity is not a very common method of financing business in Tanzania because it’s still a new concept for most Tanzanians as we used to be in a closed economy and the DSE was opened late in 1990’s so it emphases for Business to opt for this new concept here in Tanzania. Panelists were of the opinion that most people have been opting for dept part of debt as means of financing their businesses without losing ownership of the business and what is needed is people to have good credit profile and people to become ethical and trustworthy.
Mr Adebowale Atobatele commented that ‘’One reason as to why most people fail to repay loans is because they are borrowing more to finance their Life style rather than to expand their businesses.’’
Equity is when an investor or another business institution buys into the operations of a business, making the former a part owner of the entity. The money invested through the partnership can then be used to support the operations and expansions of the entity for the two to share profits as well as risks.
Mr Partick Mususa Urged that ‘’To list your company with DSE is one of the best and easiest way to finance the Expansion of your Business as for the DSE requirement only 25% shares of your company need to be sold to the public. We have great examples such as the Mwalimu commercial bank plc and many others who succeed because of IPO with more than 200,000 subscribers and their capital is increasing so fast through DSE. This is a great opportunity for other SMEs and Startup companies looking for ways to finance the expansion of their Business’’

Debt on the other hand is when a business entity borrows at an agreed interest rate from financial institutions to support its operations and according to Mr. Sanjay Rughani-The C.E.O of Standard Chartered Bank Tanzania as Tanzanians we need to change our culture, we need adopt good values such as transparency and compliance, to avoid borrowing without discipline and without insurance. Also in the case of the judiciary we need cases on loan payment defaults to be sorted out quickly as the value of money changes over a period of time. We are really optimistic as for the reforms in the judiciary and some cases have already taken the fast track. Also the new regime is emphasizing more on these values and has waged a clear war on lack of transparency and corruption. This will create a more conducive environment for lenders and borrowers to work together.
While debt is repayable, mostly with interest and within a specified period of time, equity makes the investor a part of the business, with the option to exit at an agreed time.
Mr. Yacine Faqir Director General @D&B Credit Bureau Morocco aired his views that there is one underline denominator which is Trust, if you want to build a strong company you need to build trust with your staff, the same way if you want to build a great relationship with lenders you need to build trust by keeping your part of bargain, thus paying, and what is going on in Africa especially where i come from thus Morocco SME's need to build trust with Lenders. One reason as to why interest rates are high is lack of trust as most people have been defaulting in paying, once this is changed even the central bank will want to calm down the situation as most Banks keep high interest rates because of fear of losing their money, so we need to build trust between Banks and SME's.
The theme, of 2nd Executive Breakfast Meeting which was full sponsored by Tanzania Financial services Expo 2016, was to expose participants and the entire business community to the advantages and disadvantages of the two sources of funding available to businesses in the country.

GE Tanzania: Overview of the Energy Sector and Power Generation Industry

Araf Sykes, Regional Sales Manager at GE Tanzania

Araf Sykes, Regional Sales Manager at GE Tanzania (Image courtesy of Marcopolis)
Tanzania is ideally hoping to grow its economy and prepare itself for middle-income status by 2025. Do you feel this is achievable?
Yes, definitely. Last year, our GDP growth was running at around 6.9% and it’s currently at 7%. Given our President’s agenda, and the growth that he seeks, especially in the energy sector, we are currently at around 1.5 GW for the entire country, and we are looking to grow that to 10 GW by 2025. As everybody knows, in order to grow the economy, you certainly also have to grow the power sector, which is underway. There are two projects going on at the moment, in terms of power generation, so I definitely feel that we are headed in the right direction.
And what industry trends and developments in East Africa overall, are you most excited about?
Definitely the power sector, I would say. That’s the most exciting part. As I said, everything hinges on that, and we do currently have a number of setbacks with regards to power, especially in terms of production. For instance, we have had large cement companies mushrooming all over Tanzania, and their biggest concern is power. So, if we can address that issue, then we will definitely be on the right track. Energy is therefore key.
I would also add healthcare, which is growing steadily. The national budget for 2016-2017 has almost quadrupled, so this is also currently a very exciting sector.
And what are the key areas that you feel need to be addressed in this country, in relation to power?
Education, for certain, along with local content, which definitely needs to improve, as well as job creation.
So why do you think foreign investors in your sector should pay more attention to this country and this region?
We are among the most stable countries in the area, together with growth, as you mentioned earlier. We have many areas investors can target: energy, tourism, healthcare, transportation – with a central corridor to be constructed soon, and which will provide significant access to the land-locked countries around Tanzania. On top of this, there have been huge discoveries of gas, helium and the list goes on.
In terms of the EAC region countries, how can they best cooperate to make the most of the opportunities in power generation? Are they able to work in partnership with each other, in order for their efforts to be complementary?
We have the East African Community, which basically strives to improve the region. In terms of working together. As I mentioned, we have a central corridor in the works, which will link us to Rwanda and Burundi, and will definitely increase trade. We have the Uganda oil pipeline project, and we are also looking to put more rail infrastructure in place with World Bank funding. On the power sector side, grid activity is going to increase between Tanzania and Kenya, as well as Zambia, which has huge issues with regards to power. If we are able to export our power to Zambia, this is another way of earning foreign currency, so there are many opportunities there too.
And where do you see the most interesting opportunities in energy production in Tanzania specifically?
In terms of energy generation, the most immediate one is gas to power, as the Chinese pipeline has recently been constructed. There is also coal, but which is probably more long-term, and given that it’s not a very clean form of energy, many investors could be somewhat wary. But there is some opportunity there. Then there is renewable energy, which has received a significant push lately, especially in the West of Tanzania, in an area called Singida. There are many studies around wind energy. Therefore, renewable energy will definitely play a major part in the future, hopefully including solar energy.
There have always been significant challenges regarding reliable power supply in this country. The infrastructure is quite dilapidated, there are issues of theft with the transmission system, etc. But what is the situation now for investors wanting to set up industrial and manufacturing facilities in Tanzania?
Moving forward, as I mentioned earlier, given that there is such a big drive for power generation in Tanzania – and this is actually at the top of our President’s agenda – this should provide a certain level of comfort to investors, in that we are addressing the issue and things will get better. We recently completed the power station Kinyerezi I, with 150 MW. On the back of this, we just received approval to go ahead with an additional 185 MW. There is also Kinyerezi II with Sumitomo, the Japanese grant, which has also recently begun. So, we are heading in the right direction and there is definitely more to come.
That is good to hear. I believe the proven natural gas reserves, according to the consensus, are in the order of 55 trillion cubic feet. How can they ensure that this gas will be extracted and used for local energy production, and not just be sold on to international markets?
Well, there is a consortium that includes BG (Shell), Exxon Mobil, Statoil and TPDC, which is the local arm. Most of the foreign investors are obviously looking for their return on investment (ROI), so much of the gas will be for export, especially to Asian markets and the Far East, but it is also stipulated that a certain amount will be used for local consumption, mainly in terms of power generation. There have been discussions about exporting some of the gas to Kenya and perhaps other neighbouring countries, but this is still neither here nor there. Still, there are projects such as the fertiliser plant set to be constructed for gas use, so we are fairly confident that a certain amount will be used for local consumption, even if most of it is earmarked for export.
While they recover their initial costs, I suppose?
Of course.
Could you tell us what the impact of these LNG discoveries will be for Tanzania and the energy sector more generally? Does it represent a total game-changer?
Most definitely, yes. It has offered us significant stability, in terms of power generation, as well as growing other sectors within Tanzania. It will obviously provide us with more foreign income, and will hopefully help grow the economy, including the textile industry, etc., thereby allowing us to achieve middle-income status as well.
And what role will the private sector have to play as Tanzania strives to meet its energy demands, in terms of technology transfer, human capacity and the level of capital investment in this country? I imagine they can’t go about on their own?
Yes, there will obviously need to be a certain percentage of foreign investment, as you mentioned. Education is also key, including local content. If we have a stronger population in terms of their level of education, then everything will tend to fall into place.
Energy poverty is particularly acute in the rural areas of this country. The statistic I have is that only 20% of the population is linked in any way to the national grid. Why are the traditional ways of delivering power insufficient to reach these communities, and how long will it be before this huge imbalance begins to be addressed?
Those figures are probably correct and are essentially about the national grid. There has been a lack of investment, in terms of transmission and supplying all rural areas. Today we have REA, which is the rural agency.
Established in 2006?
That is correct, better late than never. A good deal of solar energy is also being implemented in rural areas, in seeking to address the issue for households. But, in the long term, the only way to actually reach those villages is essentially to diversify, in terms of having more power generation in different areas. I mentioned Singida with its wind energy, and there is solar in Dodoma, as well as coal in the south and in Rukwa.
This seems to be quite a mixed and multifaceted approach they are taking.
Yes, because currently over 80% of power generation in Tanzania is hydroelectric, and this has been the case for over 50 years now. We had a very big drought about 10 years ago, which basically placed the country in a limbo, meaning we had to look for emergency power. This is obviously very expensive, and was supposed to be a short term solution, but it has ended up becoming a very long term ‘solution’. This more or less crippled the country, in terms of TANESCO’s limited ability to grow, as they were busy trying to pay off the emergency power, with much higher rates than for standard power. But the issue is currently being addressed, so we should now hopefully see growth in the area.
Just to digress slightly, I was told that Zanzibar’s power chord was severed and the entire island was cut off for three months.
That’s correct, yes. But you have the original underwater cable, and then you also have a second one, put in place by MCC (Millennium Challenge Corporation). Within Zanzibar, they are looking to diversify. I know that the EU is carrying out a wind generation study there, so they will hopefully be able to diversify in the future and be less dependent on the submarine cable, which currently feeds them power.
Returning to GE as an organisation, clearly Tanzania is trying to partner with as many private sector players as it can, in order to fund and develop major energy projects, in an attempt to bolster the country’s grid. You mentioned the Kinyerezi natural gas plant, for which I believe GE supplied the gas turbines?
That is correct. We supplied four LM6000 gas turbines, all under an open cycle basis. The project has gone very well and is currently running at full capacity, producing 150 MW. This is the largest gas to power plant in Tanzania to date.
My question really was how that particular project will help reduce Tanzania’s dependence on expensive rental units and strengthen the overall reliability of its power supply?
Initially, as they stop using emergency power, new power generation will start filling that gap. This does not necessarily mean growth to start with. But on the back of this project, like I said, we are planning to produce an additional 185 MW on the same site, namely the Kinyerezi I extension.
And what is the expected completion date for this?
It should take around two years, but delays also need to be factored in. Right next door there is also Kinyerezi II, which is a Japanese grant and is expected to produce 240 MW on a combined cycle basis. Therefore, if you add all these numbers up, you can see that there is going to be significant growth, along with other gas power projects earmarked in Nkoaranga and Mtwara. As a result, we should see significant growth and change over the next five years in Tanzania’s power sector, which will then hopefully motivate investors to come and put up textile industries, assembly and manufacturing plants. EPZ zones have also been set up, especially for export, so we can expect plenty of activity over the coming 5 years.
Finally, could you tell us more generally about your overall hopes for the continuing partnership between GE and Tanzania?
GE works in several sectors in Tanzania, not just power. We are also very involved in healthcare, which we are looking to strengthen. We recently held a Healthcare Conference, which was attended by the former President, Kikwete, as well as the Minister of Health. It was very positive. We are moving forward in the health sector and look forward to playing a greater role in that field. We are also involved in transportation and locomotion. As you know, we are currently very dependent on the all too often dilapidated road infrastructure, therefore rail is another front where we hope to improve a good deal, especially through our locomotives. Finally, there’s the oil and gas sector. These are the areas where we are looking to grow in Tanzania and add value. There are all sorts of opportunities.
The revival of Air Tanzania is also on the cards, as the national airline. Since we also manufacture jet engines and are very active in that area, this is yet another opportunity for us to add value and offer assistance.
Source: Marcopolis

Your Business future and your business Success Now is Certain with Excel Management

Thursday, August 25, 2016

Interview with Deogratius Kilawe Managing Director at Excel Management and Outsourcing Tanzania

deogratius kilawe excel tanzania

TanzaniaInvest had the pleasure of interviewing Deogratius Kilawe, Managing Director of Excel Management and Outsourcing, a company offering a comprehensive range of HR, Investments and Corporate Branding advisory services in Tanzania. Mr Deogratius Kilawe talks about the state of human capital market in Tanzania and discusses the role of his company in its development. TanzaniaInvest (TI): Can you brief us about Excel Management and Outsourcing? Why and when did you start in Tanzania? Deogratius Kilawe (DK): Around 2012, we identified a gap in human capital skills and competence in Africa.

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TanzaniaInvest had the pleasure of interviewing Deogratius Kilawe, Managing Director of Excel Management and Outsourcing, a company offering a comprehensive range of HR, Investments and Corporate Branding advisory services in Tanzania. Mr Deogratius Kilawe talks about the state of human capital market in Tanzania and discusses the role of his company in its development.
 TanzaniaInvest (TI): Can you brief us about Excel Management and Outsourcing? Why and when did you start in Tanzania?
Deogratius Kilawe (DK): Around 2012, we identified a gap in human capital skills and competence in Africa. This is why we decided to form Excel Management and Outsourcing. Till date, we have trained over 140,000 people to be best skilled, in South Africa, Uganda, Kenya and Tanzania.
TI: What is your take about the human capital market of Tanzania?
DK: Tanzania used to be a socialist economy until it opened to capitalism in the mid ‘80s. In the quest for liberalization, extensive know-how was needed. Most of the universities used to enroll lecturers lacking experience in the private sector, but nowadays, they outsource part-time lecturers who have worked in the private sector.
Excel Management contributes to skill development by providing coaching, training and mentoring This helps in filling the skill gap in Tanzania. Excel Management contributes to skill development by providing coaching, training and mentoring.
Tanzania has big potential, because the government wants to industrialize the country by 2025. However, in Tanzania, 96% of the CEOs of large companies that are working with us are foreigners and only 4% are local Tanzanians. In Kenya, about 45% are local CEOs and 53% are foreigners. This is because we don’t have a system of producing the best skilled people, which is an obstacle for local entrepreneurs. Because we don’t have enough Tanzanian CEOs, we end up owning small businesses in this country. 

We need to develop CEOs who can, at least, fill the gap to about a 50-50 balance. we want Tanzania to have the best human capital And we want Tanzania to have the best human capital, as this represents a huge advantage. I would advise the Government of Tanzania to ease working permits for foreigners since they share their experiences with Tanzania. If foreigners are evicted in Tanzania, the skills gap is going to continually increase.
 TI: What is the type of training and coaching that you provide? Which other services do you supply?
 DK: Excel Management specializes in recruitment, as well as providing different forms of coaching services like executive coaching and corporate coaching. In executive coaching, we coach CEOs and top executives on a one-on-one basis, while in corporate coaching we assist a company and coach its CEOs on a regular basis throughout the year. We also organize workshops, open to everyone looking to improve their skills.
We partner with Mikono Speakers, our sister company, in arranging public conference trainings and in-house training, tailored to the needs of the client. we work with some of the best trainers like Brian Tracy And we work with some of the best trainers like Brian Tracy mostly for self-development conferences. Soon next year we expect to work with Robert Kiyosaki, Victor Antonio and John Maxwell. In addition to all that, we conduct market researches and assist companies in collecting financial data and analyzing reports. Finally, we help business in their establishment, helping them in registering, getting certificates from the Tanzania Investment Centre (TIC), securing intellectual property rights, and creating brands.
TI: In your experience, what do you find that the Tanzanian market demands the most in terms of training?
DK: In Tanzania like other African nations and world we have leadership skills deficit. Thus why every two years we host world leadership conference with world top trainers like Brian Tracy and also each quarter we conduct leadership training. Companies in Tanzania are mostly looking for sales and business presentation skills Companies in Tanzania are mostly looking for sales and business presentation skills. Some of them, especially non-profit organizations and large corporate, are also asking for team building activities.
TI: And how do you ensure that you have the capacity to provide the adequate training for that?

DK: Our team is of international standards. All the trainers that work with Excel Management are qualified and have facilitated big organizations around Africa and other part of the world. Earlier in 2016, we assisted CRDB Bank Tanzania and other top companies in South Africa with whom we have more trainings coming up, and many more in Kenya, South Africa and Tanzania.
TI: What are your ambitions and development vision? Our vision is to become the leading consulting firm in Africa in HR
DK: Our vision is to become the leading consulting firm in Africa in HR, Investment, and Brand Consultation by 2020. This is why we are targeting the whole Africa and not just Tanzania in the training calendar that we launched. Last year, we recorded revenue of TZS2.7bn and we are now exploring markets in South Africa, Mauritius, and others to achieve our 2020 vision.
Our goal is to make sure that Africa becomes the best human capital continent in the world.


TanzaniaInvest had the pleasure of interviewing Deogratius Kilawe, Managing Director of Excel Management and Outsourcing, a company offering a comprehensive range of HR, Investments and Corporate Branding advisory services in Tanzania. Mr Deogratius Kilawe talks about the state of human capital market in Tanzania and discusses the role of his company in its development. TanzaniaInvest (TI): Can you brief us about Excel Management and Outsourcing? Why and when did you start in Tanzania? Deogratius Kilawe (DK): Around 2012, we identified a gap in human capital skills and competence in Africa.

Read more at: and follow us on

Learn How to Live a Longer, Happier Life & and Optimize Your Environment

 Under30Experiences founder Matt Wilson interviews Tony Buettner for the Live Different Podcast as they discuss Blue Zones and how to live better…
Nine to five is the new cancer,” – Tony Buettner
Tony is a National Speaker and the Senior Vice President of Blue Zones. ‘Blue Zones’ are pockets around the world where people reach age 100 at rates 10 times greater than in the United States. The mission of the Blue Zones company is to help people live longer, better lives based on their research at these ‘Blue Zones’ around the world.
Hear about National Geographic Explorer Dan Buettner and his brother Tony’s quest to find the places where people live to be over 100 years of age, disease free, and happy.
Where are the happiest and healthiest places in the world… where are they and what can we learn?
How can you optimize your environment, work place, office, place of worship, and community so you can live long and prosper?
Did you know that only 20% of longevity is about your genes while the other 80% of living long comes from environmental factors?
Listen in today to improve your quality of life and hear why eating a Mediterranean Diet full of olive oil, red wine, and fresh fruits and vegetables will reverse stress, and extend your lifespan because of a newly discovered chemical compounds called “polyphenols.”
We also discuss topics from one of the Buettner’s latest books:  Thrive: Finding Happiness the Blue Zones Way
Did You Know?
  • 50% of the calories that the average american can now consume is from junk food.
  • Medical researchers today agree that the human body has the capability of living to a healthy age 90. Here in America we live to an average age of 78. We’re leaving 12 good years on the table.
  • The happiest people in the world socialize 7 or more hours a day
  • People who have a mission statement live on average 7 years more than those that don’t.
  • Over the last 20 years people that are not moving during the day has increased by 20%.
  • Having a healthy choice makes it an easier choice. When you’re offered a healthy choice, you take that choice 37% of the time.
“A long happy and healthy life can be had by living and surrounding yourself around the right environments and the right lifestyle.”
“You need to vote with your dollars and go and spend your dollars at the places that you want to see more of in the world.”
“Look at your social network and at the best friends you’re hanging out with. Are they supporting healthy habits? Are they furthering your life?”
“Find your sense of purpose and live it.”
“A 9-5 job has become the new cancer.”
A Blue Zone community would have:
  • Lots of active transportation
  • Outside dining
  • Bike lanes
  • Connected sidewalks
  • People congregating and moving naturally
  • Tobacco policies in place that would make it harder and more expensive to smoke
  • Employers would encourage their employees to bike or walk
  • The policies in the work place would all turn towards healthier behaviors
  • Getting rid of vending machines that only have junk food
  • Having healthy options at a discounted price and unhealthy options at a higher price
  • Getting rid of sugary and sweet beverages
  • Restaurants would encourage you to walk and bike
  • There’d be bike racks everywhere
  • Blue zone parking spots would be furthest away from the door so you’re encouraged to walk and move naturally
  • Community gardens
  • Farmers markets
  • Purpose based workshops to help people find their purpose
Most importantly: there’d be choices and the majority of those choices would be healthy