KENYA

Miraa farmers pay the price of a slump in exports, cartels

Alexander Mwenda, a Miraa farmer in Gaciongo, Igembe North chopped down his earlier treasured trees three weeks ago sparking uproar, shock and disbelief among other growers and dealers in Meru county.

Mr Mwenda has been in the miraa-growing venture for two decades but was irked by the low prices and hired a power saw, which cleared a two-acre farm. He planted avocado trees instead.

“It had become worthless because instead of earning me more than Sh100,000 per harvest as was the case, over the past three years I have been earning less than Sh20,000,” he said in an interview with Business Daily. But he still has eight more acres of the crop.

(Business Daily)

TANZANIA

Pakistan to double trade volumes with Tanzania

Pakistan High Commissioner to Tanzania Siraj Ahmad Khan said Pakistan’s priority is to boost trade volume between the two countries through bilateral trade.

He was speaking at the commemoration of the 76th Pakistan Independence Day.

“I am only four months in Tanzania as a Pakistan High Commissioner. My hope and vision is to double trade volume and value for both countries. I met with the Minister for Foreign Affairs to discuss ways and means to further enhance cooperation, not only in trade but also in defence, culture and education,” he said.

According to the diplomat, the two countries have realised the significance of trade and economic collaboration thus, bilateral trade has steadily increased and bilateral trade has grown, reaching $224 million in 2021/22.

(The Citizen)

UGANDA

Bank of Uganda lowers CB rate for the first time in 2 years

The Bank of Uganda has lowered the Central Bank Rate (CBR) to 9.5 percent, an indicator of its intention to bring down the cost of credit, for the first time since June 2021.

The rate, which the Monetary Policy Committee uses to influence interest rates and control the flow of money, rose sharply from 6.5 in April 2022 to 10 percent in October 2022, a rate maintained till the last statement in June 2023.

The bank says the reduction was informed by the steady decline in inflation from 10.8 percent at the beginning of this year, to 3.8 percent in July 2023, the lowest in 15 months, according to the Uganda Bureau of Statistics.

(The Independent)

RWANDA

Central Bank raises lending rate to 7.5 per cent

Rwanda’s central bank says it has increased, by 50 percentage points, its lending rate to 7.5 per cent to strengthen its fight against the current inflationary pressures, among other things

Central Bank Governor John Rwangombwa, announced the decision on Thursday, August 17, during the release of the quarterly Monetary Policy Committee and Financial Stability Statement, a review of recent global and national economic developments as well as potential interventions.

Also known as the key repo rate, this is the fee at which the Central Bank lends to commercial banks. Adjusting it upwards or downwards allows the regulation of liquidity in the banking system to stabilise the economy.

(The New Times)

ETHIOPIA

Central Bank of Ethiopia caps credit expansion at 14% in inflation fight

The National Bank of Ethiopia (NBE) announced stringent measures on August 11, 2023, to curb the growth of lending by commercial banks, in a bid to rein in persistently high inflation.

As per the new rule implemented with immediate effect, yearly credit expansion by banks stands restricted to 14 percent.

The move comes in the wake of massive loan disbursements by banks in the last fiscal year. Data shows that in the 12 months ending February 2023, banks disbursed a total of 382 billion birr in loans – a substantial increase from 209.6 billion birr in the same period a year earlier.

(The Reporter Ethiopia)

SUDAN

Sudan oil exports rising despite the conflict

Crude exports by South Sudan have climbed to their highest level in almost two years despite an ongoing war between Sudan’s government forces and a paramilitary group that erupted in April. Crude shipments now average 154,839 barrels per day, about double March’s figure at 77,419 barrels per day. 

Experts have grown increasingly worried that East Africa’s oil hub will be plunged further into chaos and leave it without its main source of livelihood ever since clashes broke out between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF) over demands by the army and pro-democracy groups for RSF to become integrated into the regular armed forces.

(Oil Price)