11th November 2022 Trade and Financial Services Round Up

November 11, 2022 - 5 minutes read
TRADE AND FINANCIAL SERVICES ROUND UP

Kenya

Kenya eyes 100pc shift to clean energy by 2028

Kenya will fully transition to green energy by 2028, President William Ruto has said. Speaking to CNN, he said continued reliance on fossil fuels was no longer tenable.

“I think leaning on fossil fuels is not an option in the face of the reality of what we know is happening to our globe. We need to make difficult decisions, and the rest of the world needs to help Africa make the difficult decisions, work with the just transition of our energy, work with ensuring that we go green,” said Dr Ruto.

During the interview on the sidelines of the COP27 climate summit in Egypt, the President said Kenya currently gets more than 90 percent of its electricity and 74 percent of its overall energy from renewable sources. Kenya faces one of the worst droughts in decades following four consecutive seasons of rainfall failure blamed on climate change due to global carbon emissions.

President Ruto said the government has been providing relief food to 4.3 million people facing starvation and they are being forced to feed wildlife for the first time in the country’s history, underscoring the level of urgency with which mitigation measures ought to be put in place.

(Source: Business Daily)

Tanzania

BoT calls for more products as KCB’s Islamic bond trades

The Central Bank on Wednesday, November 9, urged commercial banks to introduce new financial products into the market in order to support economic growth and meet rising demand.

Mr Sadati Musa, director of financial sector supervision at the Bank of Tanzania (BoT), who attended the inauguration of the first Islamic bond issued by KCB Bank Tanzania, stated that banks play an important role in facilitating private sector financing and stimulating economic activity.The bond, dubbed “KCB Fursa Sukuk,” is Sharia-compliant and aims to raise Sh10 billion to fund the lender’s Islamic banking portfolio.

Mr Musa said banks have a key role in facilitating the financing of the private sector and stimulating economic activity within a country. “Products like Sukuk support the government’s efforts in growing the economy. “I would encourage banks to improve their service delivery, which can be done by increasing creativity, such as using technology and expanding services even to rural areas,” said Mr. Musa, who was speaking on behalf of Central Bank Governor Prof Florens Luoga.

Mr Nicodemus Mkama, CEO of the Capital Markets and Securities Authority (CMSA), stated that having multiple products in the financial markets facilitated market expansion and aided in investment and business growth.”It is also part of the CMSA’s five-year strategic plan, which aims to increase the number of capital markets products and facilitate the appropriate use of opportunities to promote socioeconomic development,” he added.

According to KCB Bank Tanzania managing director Cosmas Kimario, the bank’s first public Islamic bond, which started Wednesday, will be closed on December 5 next month.

(Source: The Citizen)

Uganda

Mobile money users transact an average of UgShs184,000 per month  

Mobile money subscribers on average receive or send UgShs184,000 in a month, according to Uganda Communications Commission (UCC). The details are contained in the UCC Market Performance Report for the quarter ended June. 

The report indicates that person-to-person transactions average at UgShs92,000 have grown by 17 percent from UgShs78,000 in April.  

Uganda currently has 40.7 million digital wallets shared between mobile network operators and non-mobile network operators, transacting an average of UgShs5.99 trillion in person-to-person transfers. 

Mobile money has become an important aspect of Uganda’s financial markets with more than Shs156 trillion transacted through the platform as of  June, according to Bank of Uganda data. 

The platform has over the years registered massive growth in terms of transaction value and volumes, which as of  June had increased by 37.6 percent and 22.1 percent, respectively. Bank of Uganda data indicates, volume of transactions grew from UgShs3.9 billion to UgShs4.8 billion as of June 30. 

(Source: The Monitor)

Rwanda

Rwanda, Barbados to tap into pharmaceutical production

President Paul Kagame on Thursday, November 10, hailed the bilateral relations between Rwanda and Barbados, after he received Prime Minister Mia Amor Motley for discussions aimed at further deepening existing ties.

Prime Minister Motley is in the country for a three-day state visit. During a press briefing after holding a tête-à-tête meeting, Kagame said that both leaders had witnessed the signing of two agreements in the areas of sports and bilateral air services.

He also recognized that the visit of Motley and her delegation will add to the already strong partnership that both countries share across a range of sectors. “Our relationship runs deeper than this. We are both small countries with a big vision to elevate the standard and quality of our people,” he said.

For instance, the head of state pointed out that the pandemic reminded the world that economic prosperity means nothing without putting health at the centre. “And so, one area where we have found to cooperate productively is pharmaceutical manufacturing. This is a complex industry but it is indeed possible for countries like ours to be part of it, thanks to new technologies and partners,” said President Kagame.

Rwanda is set to be a permanent home to one of Africa’s vaccine manufacturing plants using the mRNA technology. Construction kicked off mid this year and the plant is set to be operational in the next 18 months.

“The important thing is to share knowledge and cooperate with partners and we intend to do just that. We are also sharing experiences in creating digital and technology enabled jobs for our young people, and adapting to climate change,” Kagame added.

(Source: The New Times)

Ethiopia

Ethiopia made significant progress in green legacy and ensuring food sovereignty: PM Abiy

Prime Minister Abiy Ahmed said that Ethiopia has made rapid and significant progress in combating climate change through ambitious climate action and a green pathway for growth and prosperity in three key areas.

These include afforestation, reforestation, and green legacy; ensuring food sovereignty; and transitioning to green energy.

In his keynote address to the Climate Implementation Summit of COP27 in Egypt, the premier said climate change is a constant source of concern for the global community.

East Africa in particular has suffered repeated droughts and floods, and Ethiopia is in the eye of the storm, he pointed out.  

“Nonetheless, we are transforming our difficulties into opportunities. We are strengthening our people’s resilience and safeguarding our natural resources, all while working to provide reliable, accessible, and affordable renewable energy to our citizens and the region.”

(Source: ENA)

Somalia

Somalia’s Al-Shabab militants widening revenue base

UN experts say the Somali Islamist militant group al-Shabab has widened its revenue stream beyond its traditional activities, like charging tolls at checkpoints, to illegally taxing properties and construction.

In a new report, made public this month, UN experts say the terrorist group is seeking more funds to pay about $1 million per month in salaries to its fighters. The report says despite Somalia’s crackdown on al-Shabab, the militants are also able to move funds through local and Islamic banks.

A Somali woman who declined to be named for security reasons told VOA that al-Shabab militants demanded she pay $425 this year in so-called taxes for a house she bought almost three years ago in Mogadishu.

She said a man called her on the phone and summoned her to an al-Shabab court outside Elasha-boyaha, in Lower Shabelle region. She traveled there, and met a crowd of people from Mogadishu who were also summoned by the court. She said nobody dares to defy the group’s orders because people get killed.

The U.N. experts’ report says al-Shabab in May issued a notice to households of annual charges between $100 and $300 for iron sheet, stone, and multi-story houses. The report says the group also extorts owners of buildings and homes being constructed around Mogadishu at about 25 percent of the value of the development.

(Source: All Africa)

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