22nd July 2022 Trade & Financial Services Round Up

July 22, 2022 - 5 minutes read
KENYA

Kenya disowns port deal promises made to Dubai

Kenya has disowned promises of a July tender made to Dubai Port (DP) World that would have allowed the UAE-based firm to offer a bid for development, operation and management of the country’s four ports.

DP World said the Kenyan government had promised to issue a request for a commercial proposal for the port deals before the August 9 General Election.

Kenya had agreed to offer preference to DP World, owned by the government of Dubai and one of the world’s largest port operators, in a deal inked between the two States.

The Treasury has disowned the existence of such a deal and denied ever mentioning plans to issue a tender by July.

Under the deal, DP World was to deploy its money to build three berths at the Mombasa port, develop cold storage supply chains in Kisumu and Naivasha and to build a special economic zone in Lamu.

The Dubai firm was to submit a commercial proposal to equip and operate the three completed berths in Lamu.

(Source: Business Daily)

IMF’s bitter pill for President Uhuru Kenyatta’s successor

The IMF on Monday approved an additional Sh28 billion ($235.6 million) lending to Kenya in the third review of the country’s extended fund facility and extended credit facility, bringing the total amount that Kenya has received from the lender since the start of the 38-month programme in April last year to $1.2 billion (Sh142.2 billion).

But the loan comes with unpopular demands that will certainly ruffle feathers — including freezing further reduction in electricity costs through subsidies and ending cushions for consumers against high petroleum prices through state compensation to oil marketers.

Additionally, the Bretton Woods institution has renewed its push for a new tax policy by the Treasury — laying clear outcomes citizens should expect from a programme that has effectively returned IMF to the control of Kenya’s key policy decisions.

(Source: Nation Africa)

TANZANIA

CRDB voted best bank in Tanzania by EuroMoney

CRDB Bank Plc has been voted as the best bank in Tanzania, thanks to its transformative approach.

The bank was named by Euromoney, a London-based monthly magazine that focuses on business and finance, it was revealed yesterday.

CRDB Bank Plc managing director, Mr Abdulmajid Nsekela said in Dar es Salaam yesterday that the award was in recognition of the bank’s transformation journey which focuses on creating sustained value, upping financial inclusion and building inclusive economic prosperity through innovative ways of delivering its products and services to clients. Euromoney also recognized the bank’s digital revolution’s contribution, saying to a large extent it had bolstered financial inclusion.

(Source: The Citizen)

UGANDA

World Bank tasks govt on oil and gas training sustainability 

A $34m (UgShs128b) project by the World Bank aimed at skilling  a competent  oil and gas workforce at the Uganda Petroleum Institute, Kigumba (UPIK), is due to end in December, with calls for the government to ensure sustainability of what has been achieved. 

The Skills Access and Upgrading component implemented by the Ministry of Education and Sports aimed at setting up infrastructure, procurement of training equipment, training trainers, offering scholarships to students and securing international accreditation for the institute. The component is part of the wider Albertine Region Sustainable Project that started in 2014. The other components – Regional Access and Connectivity and Local Access, Planning and Development worth $126m (UgShs473b), were implemented by the Uganda National Roads Authority (Unra) and Ministry of Lands respectively. 

During an audit tour of the institute in Kiryandongo District by World Bank and Ministry of Finance officials on Monday, Ms Rosemary Mukami Kariuki, the World Bank country manager, tasked government and institute administrators to come up with ways of sustaining what has been established. 

(Source: The Monitor)

RWANDA

Mortgage refinance, another form of regulated business structure in Rwanda

Since 2017, Rwanda’s financial sector has undergone significant legal and regulatory reforms in order to create a smooth setting for different players in the sector.  As such, the National Bank of Rwanda (the Central Bank), in 2020, adopted regulation n° 33/2020 of 08/06/2020 governing mortgage refinance companies. This regulation introduces a legal framework for a new form of business structure whose purpose is to promote sustainable mortgage refinance business and setting regulatory requirements for mortgage refinance companies. The regulation defines a mortgage refinancing company (MRC) as a non-deposit taking financial institution licensed to conduct mortgage refinancing businesses.

(Source: The New Times)

ETHIOPIA

Ethiopia, US Discuss on Boosting Investment in Ethiopia

Ethiopian Investment Commission Commissioner Lelise Neme and Head of Political and Economic Section of the U.S. Embassy in Ethiopia, John Robinson discussed ways of boosting investments in Ethiopia.

According to the Ethiopian Investment Commission (EIC), Commissioner Lelise Neme met and discussed with the Head of the Political and Economic Section of the U.S. Embassy in Ethiopia, John Robinson about the bilateral Economic partnerships between EIC and the USG.

The meeting identified strategies to boost US investments in Ethiopia and to follow up on the process of AGOA’s resumption.

It further affirmed the commitment and support of the U.S. Embassy to Ethiopia for increased private sector engagement and the overall improvement of the investment climate.

(Source: ENA)

SUDAN

World Bank to provide $100m to WFP for Sudan food emergency project

At the request of the international community, the World Bank yesterday signed an agreement with the United Nations World Food Programme (WFP) to provide $100 million in financing directly to WFP for a new food emergency project. World Bank funding under agreements signed with the Government of Sudan remains paused.

The new Sudan Emergency Safety Nets Project responds to the deep food insecurity in Sudan caused by a poor harvest and rising food prices, the Word Bank said in a press release yesterday.

The project is funded through the support of the European Union, United Kingdom, France, Germany, Sweden, the Kingdom of Saudi Arabia, Netherlands, Norway, Canada, Italy, Finland, Spain, Ireland, and the State and Peacebuilding Fund to the Sudan Transition and Recovery Support Trust Fund (STARS), an umbrella coordination platform for World Bank engagement in Sudan.

It aims to provide cash transfers and food to more than two million food insecure beneficiaries in 11 states in Sudan based on a vulnerability assessment carried out by WFP, the Wold Bank stated.

(Source: Radio Dabanga) 

SOMALIA

US pledges support  to Somali Civil Aviation Authority

The Minister of Transport and Aviation of the Government of Somalia, Durran Ahmed Farah, today Thursday in Mogadishu, held a meeting with the Ambassador of the United States of America to Somalia, Ambassador Larry André.

The meeting was attended by the manager of the Civil Aviation Authority of Somalia, Ahmed Macalin, and officials from the American Embassy in Somalia, and the support of the American government to the Civil Aviation Authority was discussed.

Ambassador André promised that the Civil Aviation Authority of Somalia will help in the development of the work it has for the Somali people, especially in the field of security (Aviation security) which has a great need for the government of Somalia.

The Minister of Transport and Aviation, Duran Farah, thanked the United States Government for its support to the Civil Aviation Authority, and emphasised the importance of the ministry in the development of the Civil Aviation Authority.

Somalia has since taken over its Air Authority in an effort to adapt to the Air Authority’s technology to protect the safety of passengers and aircraft using its airspace.

(Source: Radio Dalsan)

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