Kenya

Borrowers hit as IMF opposes CBK’s plan to cut cost of loans

The International Monetary Fund (IMF) has warned Kenya against a larger interest rate cut despite the fall in inflation to a 17-year low and the recent stability of the shilling, saying that easing monetary policy risks price stability. The IMF caution clashes with recent pronouncements by the Treasury and the Central Bank of Kenya (CBK) that rates should be brought down to stimulate economic growth and tame the rising non-performing loans in the banking sector. In a country report on Kenya following the seventh and eighth reviews of its medium-term funding programme, the IMF says it sees lingering inflationary risk in a low-rate environment.

(Business Daily)

Tanzania

Saccos growth steady, but rural access still elusive

Rural communities remain largely underserved by savings and credit cooperative societies (Saccos), which are mostly operating in urban areas, according to the Tanzania Cooperative Development Commission (TCDC). The TCDC’s annual performance report for 2023 shows that the number of registered Saccos in Tanzania stood at 884 by the end of the year. Membership rose from 1.80 million in 2022 to 1.82 million in 2023, representing an increase of 0.52%. 

(Business Daily)

Uganda

Inflation drops for the third month in a row

Inflation declined for the third month since August, boosted by a drop in the prices of most food crops and related items. Data released by the Uganda Bureau of Statistics (UBOS) last weekend indicated that inflation dropped to 2.9% in October from 3% in September. Food accounts for the highest percentage of household expenditures, especially in low-income countries such as Uganda, and a drop in inflation means that households are spending less on goods and services. UBOS noted that food crops and related item inflation had dropped to -5.3% in October compared to 4.1% in September.

(Monitor)

Rwanda

Prime Energy lists inaugural green bond on RSE

Prime Energy Plc has officially listed its inaugural green bond on the Rwanda Stock Exchange (RSE), marking the start of the trading of the first-ever green bond in Rwanda. The company raised Rwf9.58 billion against the initial target of Rwf9.5 billion. The bond was issued in two tranches – a Rwandan franc tranche and a United States dollar tranche, both priced at 13.5% and 9.5% per annum, respectively. “The Green Bond we are listing today is not merely a financing instrument. It represents our commitment to transparency in our operations, environmental stewardship, strong returns for investors, and contributing to Rwanda’s economic development,” Cherno Gaye, Chairman of Prime Energy, remarked.

(New Times)

Ethiopia

Approval for CBE’s debt clearance pivotal to strengthening bank’s financial foundation

The government’s recent approval to settle the outstanding debt of the Commercial Bank of Ethiopia (CBE) is expected to reinforce the bank’s financial foundation. This was stated during Tuesday’s regular session of the House of Peoples Representatives. During the fourth regular session of its fourth working year, the House of People’s Representatives reviewed and approved several legislative bills, including the draft government debt policy. However, one draft was referred to a standing committee for further review. The House unanimously adopted the draft debt bill following deliberations.

(ENA)

Somalia

US forgives $1.14 billion debt to Somalia’s economic recovery

In a move to bolster Somalia’s economic recovery and stability, the United States has forgiven $1.14 billion in debt owed by Somalia. The debt cancellation, announced by US Ambassador to Somalia Richard Riley in Mogadishu, is part of a larger $1.2 billion assistance package for Somalia this fiscal year. This financial support focuses on economic stability, development, security, and humanitarian aid as Somalia works to rebuild its economy and essential public services. The debt forgiveness was officially announced by Ambassador Riley, who described the relief as a clear indicator of America’s dedication to Somalia’s future.

(Radio Dalsan)