Kenya

Domestic borrowing up by Sh424bn

The rate of State borrowing from the local market accelerated during the first nine months ended March, with fresh debt hitting Ksh424.7 billion compared to Ksh274.6 billion of new borrowing in the same period a year earlier.

The new borrowing debt took domestic borrowing to Sh5.256 trillion at the end of March 2024, up from Sh4.832 trillion at the start of the fiscal year in July 2023, according to data from the Central Bank of Kenya (CBK).

In March 2023, domestic debt stood at Sh4.54 trillion having risen from Sh4.266 trillion at the start of the previous fiscal year.

(Source: Business Daily)

Tanzania

Why own credit rating agency matters for Tanzania

As a Tanzanian entity, ICRA has partnered with key local entities such as the Tanzania Chamber of Commerce, Industry, and Agriculture (TCCIA), the Tanzania Association of Microfinance Institutions (TAMFI), Credit Info, and the Tanzania Institute of Bankers (TIOB).

Through TCCIA and TAMFI, potential corporations and microfinance institutions can reach out to ICRA through their respective platforms.

By utilising ICRA credit ratings and reports, these organisations can approach both domestic and international banks and investors to receive fair evaluations for debt and equity financing.

(Source: The Citizen)

Uganda

Mounting public debt eating into forex reserves, says BoU

Uganda’s foreign exchange reserves decreased by $490m in the six months to January, according to Bank of Uganda.

The decline was due to mounting external debt repayments and the inability of Bank Uganda to purchase foreign exchange from the market due to the depreciation of the shilling, which in February lost by 5.1 percent year-on-year against the dollar due investor outflows, seasonal demand, and hedging pressures.

However, the pace of depreciation has since slowed, even as the market continues to face heightened volatility pressures.

(Source: The Monitor) 

Rwanda

Bralirwa records slight increase in profit margin in 2023

Bralirwa, the largest brewery company in Rwanda, recorded a 16.1 percent in net profit margin in 2023, a 1.8 percentage point increase from the prior year. The metric indicates how much profit the brewery generated from each franc of sales in 2023.

Despite an increase of 16.5 percent in revenue growth, the brewery’s sales volume declined slightly by 1 percent in 2023 compared to the year before. The Rwanda Stock Exchange-listed company attributed the decline in sales volume to a slowdown in consumer demand caused by inflationary pressures.

Global inflationary pressures and high commodity prices also weighed heavily on the brewery’s cost of sales in the year under review. Cost of sales, which is the direct expense the company incurred to produce its various products, increased by 15.9 percent in 2023 due to higher cost of inputs, mainly raw and packaging materials.

(Source: The New Times)

Ethiopia

Ethiopia faces tough devaluation decision to secure IMF bailout

Ethiopia may have to decide on a big currency devaluation sooner rather than later to secure a rescue loan from the International Monetary Fund (IMF), which left the country last week without reaching a much-needed deal with authorities.

East Africa’s most populous country, already struggling with high inflation, became the third African state in as many years to default on its debt in December.

Ethiopia hasn’t received any IMF funds since 2020, and its last lending arrangement with the fund went off track in 2021. The federal government and a rebellious regional authority signed a deal in late 2022 to end a two-year civil war.

(Source: Nation Africa)