[2008-09-03]  Uganda Clays pursues expansionist strategy
Regional expansion recently witnessed in the financial industry has motivated Uganda Clays Limited out of its comfort zone to expand its foothold in the region with construction of a factory in Rwanda. The joint venture between UCL and Rwanda Investment Enterprise Corporation is likely to expand UCL’s market share beyond what is perceived as its fiefdom - Ugandan market. The company has set up a shs27 billion factory in Mbale to serve western Kenya and southern Sudan. As this is happening, the company is also in process of re-branding. UCL recently acquired a new logo in what is seen as a move away from its cherished silent strategy.

Uganda demands more power in the railway-deal
Uganda is learning the hard way the shortfalls of going to bed with an economic power house. Since entering a joint venture with the Kenyan government to concession the management of Uganda Railways to RVR, Uganda’s economic disadvantage continues to dwarf its authority on matters concerning RVR. Its frustration was contained in a recent letter by the finance minister to Kenyan authorities demanding that a Ugandan be appointed in the top management of RVR. What the minister failed to recognise is that RVR is private limited company in which two Kenyan equity firms (Trans-Century Holdings and Centum Limited) hold a considerable stake to influence the direction of the company. That is what it means dealing with moneyed neighbours.

Ecobank to stamp its presence in Africa
Ecobank, a pan-African banking group, last week, announced the continent’s biggest rights issue of $42.5 billion on three West African stock exchanges across 12 countries. The rights issue in Ghana, Nigeria, and on Ivory Coast’s regional BVRM bourse that brings together 10 West African nations is expected to fund the bank’s expansion strategy to the rest of Africa. Ecobank recently set its feet loose acquiring a number of financial institutions in East Africa with the hope of truly becoming a pan-African bank. The Togo-based bank recently bought Commercial Micro-finance (CMF) and is expected to begin operations later in the year.

South Sudan cutting ties with the North
While Kenya and Uganda are struggling to contain the bad deal in RVR concession, Sudan has signed a memorandum of understanding with Uganda to extend railway line from Gulu to Juba. The Gulu-Nimule-Juba-Wau railway line is expected to draw the region closer to the East African region while further alienating it from the yoke of northern stranglehold under which it has suffered for years. Since gaining autonomy from the Khartoum government, the Juba government has been more aligned to its neighbours in the south. And the current MoU serves to strengthen this position.

Solar powered plane gets ready for take off
Environmentalists, last week, made a break through when they announced that a solar powered plane is now ready for take-off. The plane with a wingspan of 198 feet covered with photovoltaic cells that convert sunlight energy into electricity will be able to fly at night owing it to its ability to store excess energy in batteries. However, hurdles still exists; the plane is expected to climb to 30,000 feet but drop to 6,500 feet during the night in order to conserve battery life. The news could prove a major breakthrough for environmentalists as they seek to rid the world of fossil fuels.
Source: © 2008 Monitor Publications Ltd