MINING IN EAST AFRICA

COUNTRY LANGUAGES POPULATION GDP

TANZANIA SWAHILI / 44.9 MIL $67.9 COASTAL

ENGLISH BIL

KENYA SWAHILI / 43 MIL $71.4 COASTAL

ENGLISH BIL

UGANDGA ENGLISH / 35.9 MIL $47.8 LANDLOCKED

SWAHILI BIL

RWANDA FRENCH / 11.7 MIL $13.7 LANDLOCKED

ENGLISH BIL
BURUNDI KIRUNDI / 8.6 MIL $5.2 BIL LANDLOCKED
FRENCH
ETHIOPIA REGIONAL 12 91.2 MIL $94.9 LANDLOCKED
BIL
SOMALIA SOMALI / 10.1 MIL $5.9 BIL COASTAL
ARABIC
MOZAMBIQUE PORTUGUESE 24.5 MIL $23.9 COASTAL
BIL
COUNTRY Precious Gemstones Industrial Rare Coal / Peat&
Metals Minerals Earths Natural gas

TANZANIA X X X X X

KENYA X X X X

UGANDA ** ** X *

RWANDA X X X X
BURUNDI X X X
ETHIOPIA X X X **
SOMALIA X X
MOZAMBIQUE 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 Paved:6,578km 106 3,689km 2

947,300 sq km Unpaved:8,4471km P: 11
Kenya Paved: 11,197km 195 2,066km 2
580,367 sq km Unpaved:149,689km P: 15
Uganda Paved: 16,272km 46 1,244km None
241,038 sq km Unpaved:54,474km P: 5
Rwanda Paved:2,662km 7 None None
26,338 sq km Unpaved:11,346km P: 4
Burundi Paved: 1,286km 7 None None
27,830 sq km Unpaved: 11,036km P: 1
Ethiopia Paved: 6,980km 58 681 km None
1,104,300 sq km Unpaved: 29,489km P: 17
Somalia Paved: 2,608km 62 None 2
637,657 sq km Unpaved: 19,492km P: 7
Mozambique Paved: 6,303km 100 4,787 km 3
799,380 sq km Unpaved:24,028km P: 21
ENERGY Production Consumption Transnational issues
KWh KWh
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 Lowest expectation
quality of default risk
AA Very High credit Very low default
quality 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 Default real
risk possibility
CC Very High levels of Default appears
risk probable
C Exceptional high Default is
levels 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% 5%

Non Res: 37.5%

Uganda 20 25% to 45% 3% to 5 %

Based on income

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 3% - 10% (depending on the nature of the

mineral).

Special Tax on Oil exploration 10%

Special Tax on Gas exploration 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”