Kenya

Kenya close to agreeing to KSh194.4 billion budget support loan from UAE 

Kenya is nearing an agreement for a $1.5 billion budget support loan from the United Arab Emirates (UAE) to help stabilise its public finances. The loan is part of broader efforts to manage the country’s debt and is expected to cover fiscal shortfalls. This deal comes amid ongoing negotiations with other international financiers to address Kenya’s financial challenges.

(Nation.Africa)

Uganda

Government urged to put breaks on tax incentives to companies

The Uganda Revenue Authority and the National Treasury are struggling to justify tax breaks for several companies before the National Assembly. They are seeking government approval for KSh23 billion(approx. $3.84 million) in tax plan waivers involving eight firms, including J2E Investments Limited, Donati Kananura, Peter Lokwang, Makerere Business Institute, Kyambogo University, Nicontra Ltd, Busoga University, and Kisiizi Hospital. This initiative comes amid a public outcry from local businesses facing an average lending rate of 18% from local banks.

(Daily Monitor)

Tanzania 

Bank of Tanzania moves to rein in digital lenders

The Bank of Tanzania has decided to regulate non-deposit-taking digital microfinance providers in response to nearly two years of escalating concerns about online loans, which have been characterised by inadequate oversight and poorly structured operations. The regulations classify digital lenders into two tiers: Tier One includes microfinance banks that accept deposits and issue loans, while Tier Two consists of providers that only offer loans without accepting deposits.

(The Citizen)

Ethiopia 

Ethio telecom seeks $1 billion financing for ambitious infrastructure expansion 

Ethio telecom, the state-owned telecommunications provider in Ethiopia, is seeking up to $1 billion in financing for extensive infrastructure expansions over the fiscal year. The CEO, Frehiwot Tamiru, stated they will explore various funding options, including external borrowing. The company aims for a 75% revenue growth in 2024/25, targeting 164 billion birr, while planning to optimise costs by trimming up to 3.2 billion birr. Additionally, Ethio Telecom intends to introduce 260 new services, expand its 4G network to 500 urban centres, and enhance coverage in rural areas by building 1,300 new mobile sites and laying 400 kilometres of fibre optic cables.

(The Reporter)

Rwanda

Rwanda joins regional stock exchanges in data vending as trading income falters

The Rwanda Stock Exchange (RSE) has recently joined East African stock markets in exploring data vending to boost revenues amid declining trading incomes. RSE’s Chief Executive Celestin Rwabukumba noted, “Typically, we have sources of revenue such as trading income and listing, but now we have started data vending and other initiatives. However, we remain focused on new products coming to the market,” highlighting struggles to attract new listings, with no proposals received in the last two years. Regional exchanges view data sales as essential for improving financial performance impacted by reduced share trading and fewer IPOs.

(The East African)

South Sudan

South Sudan limits cash withdrawals to encourage electronic transactions

South Sudan has imposed a cap on cash withdrawals to promote cashless transactions and reduce currency printing costs, limiting individuals and entities to SSP10 million ($3,730.58) per day. Withdrawals exceeding this amount must be deposited into a bank account or transferred via interbank transactions, including mobile money operators. 

(The East African)