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11th June 2021 Trade & Financial Services Round Up

KENYA

Shifting of Internet cable from Sh160bn highway path starts

The government has been forced to relocate a crucial fibre optic cable to avoid internet outages when work on the Sh160 billion toll highway from Nairobi to Mau Summit begins in September.

The ICT ministry wants to relocate the internet cables by the end of next month ahead of the construction of the 234-kilometre highway that passes through Nakuru.

“The government requires the relocation of utilities by July 31, 2021. The State Department of ICT and Innovation will undertake the relocation of fibre infrastructure to minimise downtime,” says the ICT ministry.

Source: Business Daily

Kingdom Bank projects Sh300m full year profit

Kingdom Bank’s management is projecting at least Sh300 million pre-tax profit this financial year, riding on a confidence boost after being acquired by Co-operative Bank.

If realised, this will be the first profit— also the best performance in over a decade — ending a streak of five years in losses.

Co-operative Bank of Kenya last year acquired 90 percent stake in Jamii Bora at Sh1 billion, introduced a new management team and rebranded the tier III lender to Kingdom Bank.

Source: Business Daily

Jubilee Allianz General launches discounted SME covers

Jubilee Allianz General Insurance has rolled out discounted insurance policies for small enterprises that also allow for instalment premium payments.

The discounted covers will be available to small and medium sized enterprises (SMEs) who are members of the Kenya National Chamber of Commerce and Industry (KNCCI).

The discounted and instalment payments are meant to help small firms access covers such as property and stock insurance without much hit on their cash flows.

Jubilee Allianz General Insurance CEO Catherine Igathe said the range of discounts will depend on the risk profile of respective SMEs.

Source: Business Daily

COVID restrictions hit Kenya-Uganda trade

Businesses on the Kenyan-Ugandan border are bracing themselves for disruptions due to travel restrictions announced by President Museveni to stop the rapid spread of Corona virus. Traders from Malaba and Busia get their eggs, maize beans and bananas from Uganda. Ugandans on the other hand come to buy soap, cooking oil and tooth paste from Kenya.

Source: Daily Nation

UGANDA

Uganda reduces its budget

In Uganda, the government is bringing its 2021/22 budget down by Ush714 billion to Ush44.7 trillion compared to what the country’s Parliament approved last year.

The newly-appointed Minister of State for Planning, Mr Amos Lugoloobi, said the budget will be implemented by domestic revenue by 76.7 percent and external revenue by 23.3 percent.

“Our domestic revenue is projected to be USh22.425 trillion while domestic borrowing being USh2.943 trillion,” he said.

The government will also source revenues of USh200 billion from the Petroleum Fund and another USh3.583 trillion from budget support.

External financing for projects, he said, will be USh6.868 trillion while appropriation in Aid stands at USh212.4 billion and the domestic debt refinancing, USh8.547 trillion.

Source: The Monitor

TANZANIA

Tanzania budget: Samia Suluhu seeks KSh 61b IMF loan to fight COVID-19 pandemic

Tanzania is turning to the International Monetary Fund (IMF) for financial support to fight and manage the coronavirus effects in the country.

The Minister of Finance and Planning, Mwigulu Nchemba, told the parliament during budget reading on Thursday, June 10, that Tanzania would be seeking KSh 61 billion loan from the IMF.

Nchemba also proposed a customs duty waiver on raw materials used to produce facial masks, sanitisers, ventilators and personal protective equipment.

Source: The Citizen.

RWANDA

RwandAir suspends flights to and from Uganda over Covid-19 surge

RwandAir announced late Thursday it had suspended flights to and from Entebbe International Airport in Uganda with immediate effect.

“Due to a surge in Covid-19 cases in Uganda, RwandAir announces the suspension of its flights to Entebbe effective 10 June 2021, until further notice,” Rwanda’s national carrier said in a statement.

Source: The NewTimes

ETHIOPIA

HPR Approves Proclamation for Establishment of Capital Market

The House of People’s Representatives (HPR) has unanimously approved the Proclamation for the Establishment of Capital Market.

Revenues, Budget and Finance Affairs Standing Committee Chairperson, Yayesh Tesfahunegn told the parliament that the capital market will serve the public as an alternative means for saving.  

She added that it will also have a significant impact on supporting large government and private investments, besides reducing dependency on foreign aid.

Source: ENA

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