Innovative companies to compete for cash award
Companies and entrepreneurs with innovative projects that can reduce transport and logistic costs in East Africa stand a chance to win up to USD 500,000, thanks to Trade Mark East Africa (TMEA) for making this possible.
East Africa is reported to have the highest freight and transport costs in the world; over 50 percent higher than the US and Europe per kilometre and transport costs for landlocked countries in the region can be as high as 75 percent of the value of exports.
Speaking during the launching
Symbion Power Chief Executive Officer, Paul Hinks said: “Nachu project is unique in terms of its geological qualities and we are pleased to be working with Magnis on this world-class endeavour”.
Symbion has extensive experience operating power plants and constructing transmission lines in Tanzania and elsewhere in the world, including a 50MW diesel plant at Arusha, a 55MW diesel plant at Dodoma and a 120MW gas turbine plant in Dar es Salaam.
In March 2013, Magnis announced an extensive graphite discovery on its 100 percent owned of second grant round in Dar es Salaam, TMEA Country Director for Tanzania, Dr Josephat Kweka, said the Logistics Innovation for Trade (LIFT) Challenge Fund is a US$16 million grant-based financial mechanism that supports innovators with good ideas for products or services that can reduce the costs of transport and logistics in East Africa.
Dr Kweka noted that, the grants are made available through competitive bid of proposals which are submitted and undergo tight screening process to get the projects which are feasible and which can have maximum positive impact. Nachu tenement prompting an immediate exploration work on it.
The Nachu project is expected to deliver some 220 000 t/y of graphite concentrate over a mine-life of 16 years, and could be developed at a capital cost of US$269m.
The Nachu project has a global mineral resource estimate of 174-million tons, grading 5.4 percent graphitic carbon, and represented one of the largest mineral resources of flake graphite in the world.
However, the prefeasibility study (PFS) conducted in 2014 estimated that the project would have a NPV
He said transit times have the most significant effect on exports and also result in firms having to carry higher levels of stocks making them less efficient.
“It is our hope that the entrepreneurs and innovators of the East African Community in partnership with their counterparts internationally will drive forward development through the adoption or introduction of ‘ best practice’ technologies in the transport and logistics sector, enabling local businesses to compete favorably in the increasingly global economy,” he said.
LIFT Challenge Fund Manager, of US$1.04-billion and an IRR of 84 percent, based on a production rate of 180 000 tons a year.
The Nachu area covers 199km² and is situated west of the coastal city of Lindi and 200km by road from the port city of Mtwara. Valuable Paul Hinks In another development and setup and in a move that is set to reinforce its global expansion efforts, Invest Africa has announced the appointment of Paul Hinks, CEO of Symbion Power, as Chairman of Invest Africa in the United States.
Hinks will spearhead the David Mitchell said Transport costs in the EAC are indeed among the highest per kilometre in the world, but any response to the challenge of bringing them down will be a combination of public and private sector initiatives.
He said, LIFT deliberately focuses on supporting the private sector to play its part in this challenge emphasizing that governments can address infrastructure needs like road, rail and large transport and logistics facility upgrades and investments, but the private sector can act independently to introduce innovations that bring down the operating costs of individual transport and providers.
“LIFT provides funding to enable entrepreneurs and companies to test new ways of doing things, the results if successful being replicable elsewhere with the potential to scale up the product or service to spread the benefits to a larger group of beneficiaries,” he said.
LIFT is a Trade Mark East Africa (TMEA) initiative managed by Nathan Associates through a Fund Management Team based in Nairobi with funding support from the UK Government’s Department for International Development (DFID) logistics service