Author: Amrit Labhuram

KENYA 

Oil companies to get Sh8bn for unchanged fuel prices

The State will pay oil marketers an estimated Sh8.12 billion ($71.8m) for keeping fuel prices unchanged in the monthly review that will lapse on January 15.

Compensation for diesel will be highest at Sh4.82 billion followed by that of petrol at Sh3.03 billion and kerosene at Sh0.26 billion based on the average consumption of the three fuels.

Industry regulator, Energy and Petroleum Regulatory Authority (Epra), retained the margins for suppliers at zero per litre of petrol, diesel and kerosene in the latest review for the second month running.

It also cut petrol prices by Sh4.57 a litre, diesel Sh7.90 and Kerosene Sh9.43 —keeping the costs of the products unchanged at Sh129.72, Sh110.60 and Sh103.54 in Nairobi respectively.

This was meant to cushion motorists from rising global fuel prices on the back of a speedier than expected economic recovery as vaccines are rolled out.

Without the subsidy, petrol would have hit a historic high of Sh148.04 a litre, diesel Sh132.49 a litre and kerosene Sh127.07 a litre, in what would have reignited public anger over the increased cost of living.

(Source: Business Daily) 

Half of mobile phone borrowers in default

More than half of loans taken through mobile phone platforms are in default in the wake of Covid-19-induced job cuts and business closures that have pushed thousands of people into a debt trap, a new survey reveals

The findings of the household survey by the Central Bank of Kenya (CBK), FSD Kenya and the Kenya National Bureau of Statistics (KNBS),show that 50.9 percent of the respondents have defaulted on mobile loans.

The mounting defaults emerged in a period digital lenders have flooded Kenya with high interest rates that rise up to 520 percent per year.

The Covid-19 economic hardships also saw an average of 41.8 percent of borrowers default on loans tapped from friends and relatives while 40.8 percent were unable to settle goods borrowed on credit from shopkeepers.

The least default for credit borrowed outside the mainstream banking system was on advances to staff by employers at 11.3 percent, given the ease to recover the cash from monthly salaries.

(Source: Business Daily) 

TANZANIA

Tanzania enters into more joint ventures with mining firms

The Tanzanian government on Monday, December 13, signed an agreement with four mining companies to form joint ventures (JV), a move which is meant to set the stage for Tanzanians to benefit from the country’s natural resources.

The companies born out of the JV – and which are to invest a total of TSh1.755 trillion – are Faru Graphite Corporation, Petra Diamonds Ltd (PDL), Nyati Mineral Sands Ltd and Sotta Mining Corporation Ltd.

The negotiation team’s chairman, Prof Palamagamba Kabudi, said in all companies except the PDL, the government enjoys 16 percent free-carried interest.

For PDL, Prof Kabudi said the government had agreed an issue of shares in the mine’s holding company Williamson Diamonds Ltd (WDL).

The deal with the London-listed miner will increase the government’s interest to 37 percent from 25 percent.

This suggests that the deal will reduce Petra’s stake in the mine to 63 percent from 75 percent.

(Source: The Citizen)

How Tanzania plans to spend TSh7 trillion Badea loans, grants

News that Tanzania is eyeing loans and grants amounting to $3 billion (about TSh7 trillion) from the Arab Bank for Economic Development (Badea) in Africa in the next five years was welcomed by some analysts and the business community, all of whom are optimistic that the monies will stimulate economic growth.

The Ministry of Finance and Planning said in a statement that the Arab lender agreed to give the money to finance various development projects, including roads, energy, education, agriculture, and private companies’ capacity-building programmes.

The bank arrived at that decision following talks between Tanzania’s Finance and Planning Minister Mwigulu Nchemba and Badea’s Director-General, Dr Sidi Ould Tah.

The statement went further to explain that the money will be disbursed over five years of implementation of the country’s third Five-Year Development Plan (FYDP-III: 2021/22–2025/26).

“We have had detailed and meaningful discussion with the Tanzanian Finance and Planning minister and his delegation and have decided to dish out $3 billion to cement our relationship with the government of Tanzania,” Dr Tah noted in the statement.

(Source: The Citizen)

UGANDA

Trade dispute: Uganda considers ban on Kenyan produce

Uganda is considering restricting some of Kenya’s raw and processed agricultural products from its market, saying it will be merely reciprocating Nairobi’s continued ban on Kampala’s produce.

Kenya is Uganda’s biggest trade partner. Kenyan exports to Uganda in 2020 amounted to $673.66 million while Uganda’s exports to Kenya stood at $465.55 million during the same period.

Observers say the trade row between the two countries could have long-running implications for imports and exports across the East African region, adding that the restrictions go against a Customs Union Protocol established by the East African Community (EAC) single market.

(Source: The Monitor)

Post Bank becomes Uganda’s 27th commercial bank

Bank of Uganda has granted Post Bank a tier one licence, which effectively completes its transformation into a commercial bank. 

Post Bank, which as of February 2021, operated a branch network of 33 fixed branches and 17 mobile banking units, has been operating as a non-bank credit institution in the tier II category. 

In an email inquiry yesterday, Dr Bazinzi Natamba, the Bank of Uganda acting director of communications, confirmed Post Bank’s elevation, noting the licence had already been issued.

Post Bank becomes the 27th bank to operate in Uganda under the tier one category. In April, 

Post Bank told Daily Monitor it had completed a five-year strategy in which it had sought to transition into a fully-fledged commercial bank.

The completion, Post Bank said then, was part of the large plan through which the bank had upgraded a number of systems to fit and compete with large commercial banks.

(Source: The Monitor)

RWANDA

Sweden donates 8 billion Frw to Rwanda

Sweden has provided Rwf8 billion ($7.7 million) and Rwf900,000 to Rwanda to help with climate change in the Eastern Province.

The funding agreement was signed between Sweden, which was represented by the country’s ambassador to Rwanda, Johanna Teague, and the Minister of Finance and Planning, Dr. Uzziel Ndagijimana on the Rwandan side.

These activities include 35 conserved areas, planting trees on 400km of roadsides, 400km on land and on the banks of rivers and lakes, and 8,000 hectares of community farms on which mixed crops will be planted.

The goal is to find a sustainable solution to the ecosystem and to improve performance based on environmental protection. 

Rwanda needs $11 billion to reduce air pollution by 38% by 2030.

(Rwandan Broadcasting Agency)

ETHIOPIA

Ethiopia Secures Over 54Bn Birr from Customs in 5 Months

Ethiopian Customs Commission (ECC) announced it has collected over 54 billion Birr ($1.1 billion) revenues during the past five months. The amount has shown an increase of 8.2 billion Birr or 18.5 percent, compared to the same period last year.

ECC said it plans to secure a collection of 155 billion Birr ($3.16 billion) or more in the 2021/22 Ethiopian fiscal year that started on July 8.

During the previous year, the Commission had collected 112.5 billion Birr, 89.5 percent of the target it set.

ECC has pointed out it has been engaged in cracking down on contraband trade. During the past four months, the Commission related, its officials have seized contraband items worth 1.2 billion Birr. Furthermore, 265.2 million Birr that was to be smuggled out of the country for illicit purposes has been seized, along with 293 related arrests.

The Commission pointed out it has seized contraband items worth 7.7 billion Birr during the past two and half years, and vows to continue its crackdown on contraband trade in tandem with federal and regional security forces.

(Source: 2merkato) 

Ethiopian Electric Power Signs Deal with French, Chinese Companies to Build National Power Control Center

Ethiopian Electric Power has inked a deal with the French General Electric and the Chinese Sinohydro companies to have a national power control centre built.

The deal includes the building of two national power control centers, as well as laying down a control and follow up system with power distribution stations.

Signing the deal were Ashebir Balcha, CEO of Ethiopian Electric Power, Manyazewal Tesfaye, General Electric Head of Sales for East Africa, as well as Tian Hongjun, a representative of Sinohydro.

The project will take three years to complete, and has €57.67 million, in addition to 102 million Birr, budgeted for it.

A third of the project’s expenses is covered by Ethiopian Electric Power while the rest is financed by the French Development Agency, Agence Française de Développement.

(Source: 2merkato) 

ERITREA

11 test positive for Covid-19: Ministry of Health

Eleven patients have been diagnosed positive for Covid-19 in tests carried out today at Quarantine Centers and Testing Stations in the Central, Northern Red Sea, and Southern Regions.

Out of these, six patients are from Quarantine Centers (1) and Testing Stations (5) in Asmara, Central Region. Three patients are from Testing Stations in Ghinda (1), Gelalo (1), and Massawa (1); Northern Red Sea Region. Two patients are from a Testing Station in Senafe, Southern Region.

On the other hand, 41 patients who have been receiving medical treatment in hospitals in the Central (24) and Southern (17) regions have recovered fully and have been discharged from these facilities. Sadly, an 85-year-old patient from the Central region died.

The total number of recovered patients has accordingly increased to 7,490 while the number of deaths has risen to 65.

The total number of confirmed cases in the country to date has increased to 7,686.

(Source: Ministry of Information Eritrea)

SOMALIA 

US $150m Electricity Recovery Project Aims to Help Light Up Somalia

The Somalia Electricity Recovery Project is set to increase access to cleaner, lower cost electricity for 1.1 million households, or approximately seven million people, of which 3.5 million are women. The project also aims to reestablish a stable electricity supply and support regional integration.

Out of a population of about 15 million, nine million Somalis lack access to electricity services, and the cost of power is among the highest in the world. In addition, almost nine out of ten Somali households are deprived in at least one dimension of poverty–monetary, energy, education, or water and sanitation (World Bank (2019) Somalia Poverty and Vulnerability Assessment).

The combined impacts of the pandemic, devastating flooding, droughts, and a desert locust infestation further undermine economic recovery and efforts to reduce poverty.

90% of Somalia’s electricity is supplied through isolated diesel-based mini-grids operated by private energy service providers (ESPs).

The combination of a highly fragmented private electricity sector along with an installed capacity that is inadequate to serve current and future demand, has resulted in an inefficient and expensive supply given the lack of economies of scale. Somalia also has significant potential for using renewable energy for electricity generation, particularly solar and wind energy, as identified by numerous assessments by the World Bank.

(Source: Radio Dalsan)

Despite Election Chaos, Somalia Transition Plan Takes Shape

Somalia’s Transition Plan, one in which the country hopes to start carrying its own obligations more than donors and international partners, has started taking shape.

And in spite of the fiasco surrounding the much-delayed elections, officials have started meeting regularly to discuss possible working cooperation between the federal government and federal member states often known as FMS.

This week, a two-day consultative meeting held in the Somali capital Mogadishu agreed on the inauguration of the Somali Transition Plan Strategic Steering Committee (STP SSC) on Thursday.

The Federal Government of Somalia led the meeting, but attracted representatives from the Federal Member States, Benadir Regional Administration (Governorship of Mogadishu and surrounding areas), the Somali Security Forces and Somalia’s key partners supporting the security sector of the Horn of Africa country.

Various portfolios including the prime minister’s office, the foreign affairs, internal security, interior affairs, chief of defence forces and the police commissioner have all endorsed the key decisions that were reached by the SSC Secretariat on the agreed priorities of the STP for the next quarter.

Somalia’s initiative is to have a transition plan to see the peacekeepers serving under the auspices of the African Union Mission in Somalia (AMISOM) exit the country completely by 2023, having begun transferring security duties to local authorities from January next year.

(Source: Daily Nation)

KENYA

Shilling hits all-time low of 112.5 to dollar

The shilling has declined to a new all-time low of 112.5 against the dollar as importers increase demand for the greenback with the economy recovering from the impact of the pandemic.

Reuters quoted the shilling at 112.45/65 per dollar on Thursday, a record low, after hitting its previous all-time low of 112.30/50 earlier in the week.

Sustained demand for dollars for imports is pushing the shilling downwards with traders projecting further decline against the greenback. The shilling depreciation is set to hit consumers with higher prices of imported goods like cars, electronics and second-hand clothes as well as that of electricity.

The shilling is on shaky ground on demand for dollar for imports, higher oil prices and repayment of dollar-denominated loans against slower recovery of exports and tourism receipts.

Kenya is hoping diaspora remittances and new multilateral loans will help provide the supply of dollars. The Central Bank of Kenya also has dollar reserves of Sh978.7 billion ($8.7 billion) enough to meet import demand for 5.3 months.

The weakening of the shilling has triggered fears of a fresh round of inflationary pressure, which has become a political headache for the government that has recently been forced to offer fuel subsidies to defuse social tension.

(Source: Business Daily)

China signals cuts in loans to Africa after reduction of financing pledge

China has signalled a reduction in loans to Kenya and other African countries in coming years after it cut financial commitment to projects in the continent by as much as a third in the next three years.

Nairobi has been a major beneficiary of China’s loans for the development of mega infrastructure projects such as roads and a modern railway over the last decade, making Beijing the largest bilateral creditor since 2015.

President Xi Jinping on Monday pledged — through a video link to the Eighth Ministerial Conference of the Forum on China-Africa Cooperation (FOCAC) in Senegal — to invest $40 billion (Sh4.5 trillion) in African countries for three years.

That represents a 33.33 percent drop from the $60 billion (Sh6.75 trillion) the world’s second-largest economy has committed to African countries in the last two FOCAC summits, which takes place every three years.

(Source: Business Daily)

The first Quarterly Economic and Budgetary Review Report (QEBR) for the FY 2021-22 has been published.

Herein below are the key findings:

1. Improved revenue collection surpassing quarterly target by Ksh 26 Billion;
2. Expenditure and net lending amounting to Ksh 631 billion against a quarterly target of Ksh 665 billion;
3. Net foreign financing amounting to Ksh 28.2 billion;
4. Domestic borrowing increased by Ksh 480 billion from Ksh 3.4 trillion to Ksh 3.9 trillion;
5. Total external stock debt including sovereign bond amounted to ksh 4.05 trillion;
6. Total outstanding National Government pending bills amounted to Ksh 423 billion as at 30th September 2021; and
7. The QEBR lacks information on county transfers during the period under review.  

(Source: National Treasury)

UGANDA

Uganda’s foreign exchange reserve rises to Shs15 trillion ($4.2 Billion)

The International Monetary Fund (IMF) has said Uganda’s foreign exchange reserve level now stands at $4.3b (Shs15.4 trillion) following the disbursement of Special Drawing Rights (SDR).

This indicates a rise in the volume of Uganda’s foreign exchange reserve to cater for future imports of goods and services. Prior, Uganda’s foreign exchange reserve up to June 2021 was at $3.567b.

The IMF resident representative, Ms Izabela Karpowicz, said: “We project that, excluding oil-related financing and investment imports, reserves will remain at about 4 months of imports in the near term before rising to the East Africa Community target of 4.5 months of imports by 2025/26.” 

Uganda imports more than it exports. As a result, Uganda’s wide current account deficit is increasingly financed by the portfolio inflows into government securities.

(Source: The Monitor)

UAE investors to construct tea processing factories in Uganda

The government of Uganda has attracted investors from the United Arab Emirates (UAE) who are said to be planning to construct tea processing factories in some of the tea growing districts in western and northern parts of the country.

The executive director and board member of Elite Agro group of the United Arab Emirates Dr Abdul Monem led the investors group that appreciated the tea gardens in Kisoro district and said the construction of the tea processing factory would commence after the necessary paperwork and general survey is completed.

The Minister of Works and Transport, Gen Katumba Wamala has promised to work on the roads connecting to the tea growing sub counties and said plans are underway to extend hydropower electricity to the proposed site where the tea processing factory is scheduled to be constructed. 

(Source: The Monitor)

TANZANIA

Pain at the pump as fuel prices hit record high

Motorists with effect from December 1 have started paying more for fuel, according to the latest price list released by the Energy and Water Utilities Regulatory Authority (EWURA).

The new prices have hit a record high even after the recent interventions by the Energy ministry to strike off certain charges and levies that were considered a burden to the consumer.

With the increase, consumers will pay Sh2,510 per liter of Petrol  in Dar es Salaam, while those  in Tanga and Mtwara will pay Sh2,525 shillings per liter and Sh2,569 shillings per liter, respectively.

According to the statement, the price of petrol at the Dar es Salaam port has increased by Sh84, diesel Sh29, while kerosene sees its price jump by Sh18.

(Source: The Citizen)

CRDB Bank, Visa International unveil new campaign to promote cashless transactions

The CRDB Bank has partnered with Visa International to launch a campaign that is geared at creating a culture of using the cards in making financial transactions.

Dubbed “Tisha Na TemboCARD Visa”, customers stand a chance to win various prizes, including watching Africa Cup of Nations Championship (Afcon) 2022 in Cameroon.

CRDB’s retail banking director, Mr Boma Raballa appealed to the Bank’s customers and Tanzanians in general to actively participate in the campaign by using their TemboCARD Visa cards to make payments while urging them to continue the practice even after the campaign as the aim is to make Bank card use a regular part of payment transactions as a strategy to build a cashless society.

CRDB Bank’s senior manager for card business, Ms Erica Mwaipopo, said to participate, one is expected to use their TemboCARD Visa cards to pay for purchases and services at shops, supermarkets, restaurants, hotels and petrol stations, purchasing equipment (PoS), as well as online payments, including paying for air tickets.

(Source: The Citizen)

RWANDA

KCB eyes total buyout of Rwandan lender 

Rwandan bank BPR Atlas Mara has said it is finalising modalities to allow local shareholders sell their stake in the lender amid interest by Nairobi-headquartered KCB Group.

Managing director Maurice Toroitich said the bank is targeting to finalise the process before end of year to enable Rwandan BPR shareholders to offload up to 23.7 percent of their shares.

The major beneficiary is expected to be KCB Group, which acquired 62 percent of BPR shares from Atlas Mara Ltd in November 2020 and an additional 14 percent from private equity firm Arise in August this year, bringing its ownership in BPR to 76 percent. It now has its sights on the remaining 24 percent minority stake in the hands of local shareholders to claim full ownership of the Rwandan lender.
(Source: The East African)

Rwanda, DR Congo commit to boost trade through transportation

The Minister of Infrastructure, Ambassador Claver Gatete and his DRC counterpart, Cherubin Okende Senga on Wednesday, December 1 held a bilateral exchange on the development of air, road and railway infrastructure projects.

The meeting that aimed at bolstering regional trade services was held on the sidelines of the 33rd plenary session of the African Civil Aviation Commission meeting, currently underway in Kigali.

Officials from both sides were assessing the implementation of agreed on projects in the transportation sector that are meant to improve bilateral relations and how they can be accelerated.

Speaking to the media, Minister Gatete highlighted that their discussions involved measures to perfect and pave the way for the agreements facilitating air and land movements between the residents of the two countries.

(Source: The New Times) 

ETHIOPIA

Ethiopian Pharmaceuticals Supplies Agency Imports Supplies Worth Over 1 Billion Birr ($20.7 Million)

Ethiopian Pharmaceuticals Supplies Agency (EPSA) announced that it has imported medicines worth over a billion birr and they are ready for distribution.

Nahom Gemechu, Medicines and Medical Equipment Purchasing Contract Director at EPSA, said the medicines are stored in the agency’s warehouses. Out of these are, life-saving medicines worth 1.78 billion birr, basic medicines worth 161.5 million birr, and medical equipment worth 2.42 million birr, Mr. Nahom pointed out.

The agency has spent over 1.24 billion birr to purchase the supplies, which are expected to fill the existing demand and supply gap in pharmaceuticals, it has been learned.

(Source: 2Merkato)

AfDB Approves $217Mn Loan to Facilitate Road Transport Among Kenya, Somalia, Ethiopia

The African Development Bank Group (AfDB) said its Board of Directors has approved $217 million in loans to fund a project that will improve road transport services among Kenya, Somalia, and Ethiopia. 

The road transport services, primarily in Kenya’s northeastern region, are joined by the Kenyan government’s contribution of $6.3 million. The $223.3 million project covers the 740 km Isiolo-Mandera corridor and will enhance regional integration and trade between Kenya, Somalia, and Ethiopia. About 867,000 people who reside around the project area are expected to benefit from the initiative, AfDB noted.

The loans comprise $75 million from the non-concessional window of the Bank Group and $142 million from the concessional lending division, known as the African Development Fund, the Bank related. 

The road network, including the 142 km El Wak-Rhamu stretch, is one of the four priority corridors identified under the Horn of Africa Initiative, driven by the governments of Kenya, Ethiopia, Somalia, Sudan, Eritrea and Djibouti. The initiative is supported by the African Development Bank, World Bank and European Union. The road project is expected to contribute to the socio-economic development of communities along the corridor, which is characterized by high poverty levels and prone to insecurity. 

(Source: 2Merkato)

ERITREA

Permanent Representative of Eritrea to the United Nations pledges continued commitment to SDG Agenda 

During the annual Ministerial meeting of the G77 and China, Permanent Representative of Eritrea to the United Nations Ambassador Sophia Tesfamariam pledged its continued commitment to the fulfillment of the SDG agenda. 

Eritrea will continue its path to ensure an inclusive and people-centred development with the principle of social justice at its core. It has made strides in improving educational and health services, agricultural productivity, and infrastructure with meagre resources. Eritrea will also continue to contribute towards creating a peaceful and collaborative neighbourhood in Horn of Africa and the Red Sea.

Ambassador Tesfamariam stated that Eritrea has suffered incessant hostilities by successive US Administrations, including diplomatic pressures, sanctions and economic sabotage. As a result, Eritrea faces challenges in the economic, social and environmental areas and the overarching goal of addressing and eliminating poverty in all its shapes is becoming more elusive by 2030. 

Ambassador Tesfamariam emphasised Eritrea’s readiness to closely work with the sisterly member countries of the Group of 77 to realize the objective of a fair, just, peaceful and equitable global political and economic order.

(Source: The Ministry of Information Eritrea)

SUDAN

Covid-19 ‘Omicron’ – Sudan Imposes Travel Ban on Countries from Southern Africa

The health authorities in Sudan have issued a decision banning entry to travellers arriving from six Southern African countries, due to the outbreak of the new ‘Omicron’ mutation of COVID-19 that was identified in South Africa.

Sudanese authorities say that one case of infection with the new mutation has been reported by Khartoum International Airport, regarding a passenger from South Africa.

The ban, effective from tomorrow until February 27 next year, includes arrivals from South African countries Zimbabwe, Botswana, Lesotho, Namibia, and Lesotho. The decision stipulates that entry to Sudan will not be allowed for people who have been in or passed through those countries over the past 14 days.

Sudan echoes similar bans adopted this week by the European Union, UK, and USA.

(Source: Radio Dabanga)

SOMALIA

Farmajo, Emir Of Qatar Discuss Strengthening Bilateral Relations

President Farmajo and Prince Sheikh Tamim discussed a number of issues related to strengthening relations between Somalia and Qatar and their common interests in order to promote effective and mutually beneficial cooperation.

The President thanked the Emir of Qatar for implementing road construction projects in Mogadishu, Afgoye, Balad and Jowhar, building key government facilities and expanding basic services, noting the efforts of the Somali people and government to build infrastructure. important for the country’s recovery and development.

For his part, the Emir of Qatar Tamim bin Hamad commended the Government and people of Somalia for their close cooperation, unity and solidarity in the recovery of the country, expressing a sense of brotherhood towards the country’s progress and the significant achievements we have achieved in recent years

(Source: Radio Dalsan)

KENYA

Shilling weakens further on rising dollar demand 

The shilling ceded further ground to the dollar Wednesday, November 24, trading at a new low of 112.38 units amid the end of month demand for dollars from importers even as supply remained low.

It has shed value against the dollar in each of the past 42 trading sessions, triggering concern over inflation going up for households ahead of the financially demanding festive season. Last month, inflation stood at 6.45 percent, having eased from 6.91 percent in September.

The shilling opened trading yesterday at an average of 112.35 to the greenback, before depreciating slightly in the day’s trading as has been the case in the last two months.

Traders said that those holding dollars are reluctant to loosen their positions out of concern about further depreciation, constraining greenback supply that would ease pressure on the local currency.

The shilling has come under pressure following the reopening of the economy last month when the Covid-induced night curfew was lifted, with businesses reporting rising demand for goods that have translated to higher dollar demand from importers.

(Source: Business Daily)

Kenya’s trade deficit up 38pc to Sh988bn ($8.89 billion) 

Kenya’s trade deficit for nine months to September widened 38.57% due to a growing appetite for foreign manufactured goods, fuel and the soaring cost of imports following Covid-19 related supply chain disruptions.

Trade data collated by the Kenya National Bureau of Statistics (KNBS) shows the gap between merchandise imports and exports climbed to Sh988.51 billion in the review period from Sh713.37 billion in the same period a year ago.

The cost of imports has soared globally on persistent disruptions in global supply chains which have increased shipping expenses amid a resurgence in global oil prices for non-oil producing countries such as Kenya.

The provisional data indicate Kenyan traders spent Sh1.53 trillion in the January-September 2021 period on imports, a 28.04 percent year-on-year jump compared to Sh1.2 trillion in the previous period.

Economists reckon that a persistently higher trade deficit slows down the creation of new jobs for Kenya’s growing skilled youth as most revenue is spent on buying goods from foreign factories, raising production and job openings in source markets. 

(Source: Business Daily)

Co-op gets Sh6.3 billion EU bank loan for SMEs lending

Co-operative Bank  has received Sh6.3 billion (50 million euros) from the European Investment Bank for onward lending to small businesses to help them recover from the impact of the Covid-19 pandemic.

Co-op Bank chief executive officer Gideon Muriuki said micro, small and medium-sized (MSME) enterprises with up to 250 workers can apply for the loan.

The long-term loan will be repayable in seven years and will assist MSMEs fund the acquisition of tangible business assets, working capital, development of distribution networks innovation and business research.

Mr Muriuki said the lending is part of the bank’s effort to contribute to the recovery of Kenya’s businesses following the Covid-19 challenges.

“The credit facility will be available for up to a maximum of Sh1.5 billion per customer for a maximum tenor of seven years,” he said.

(Source: Business Daily)

TANZANIA

Finance meeting to discuss Covid-19 recovery, cryptos 

Economic recovery from Covid-19 and digital currencies are among subjects which will be discussed during the Conference of Financial Institutions (Cofi).  

Economic experts, financial institutions representatives, government officials and members of the private sector will gather to discuss priorities and policy options on how to accelerate economic growth.

Tanzania was not spared the effects of Covid-19 that disrupted economic activities around the world, with the government saying economic growth slowed to 4.8 percent in 2020 compared to average growth of seven percent in the past decade. Other topics include accelerating digitalisation for sustainable growth and digital currencies, where 300 participants are expected to share experiences and deliberate risks and regulatory issues.

“This year’s topics have been carefully selected in line with the current situation where the global economy is recovering from the effects of the Covid-19 pandemic experienced since the beginning of 2020, and digital technologies and currencies that are gaining popularity across the globe,” the Bank of Tanzania (BoT) said in a statement.

The meeting, themed “Tanzania Economy: Recovery from Covid-19 Pandemic and Beyond”, is expected to be opened by President Samia Suluhu Hassan.

(Source: The Citizen)

Air Tanzania ups stake for East African skies 

Air Tanzania is set to step up competition in the East African skies with the launch of flights on the Dar es Salaam-Nairobi route from November 26, and plans for Bujumbura later in the month.

The airline’s first flight to Nairobi from Julius Nyerere International Airport will cost $334 for a return trip and approximately $210 one way.

The Tanzanian national carrier began operating three flights a week to Ndola in Zambia and the eastern DR Congo city of Lubumbashi, respectively, from November 18.

The Dar–Nairobi route will also offer competitive pricing for Ugandan flyers who have previously been connecting to various capitals through Nairobi, Addis Ababa or Kigali on Kenya Airways, Ethiopian Airlines or RwandaAir respectively.

“The resumption of Air Tanzania operations between Dar es Salaam and Nairobi, as at the best as a game changer in the bilateral engagement between Tanzania and Kenya,” said the High Commissioner of United Republic of Tanzania in Nairobi John Stephen Simbachawene Friday.

(Source: The Citizen)

UGANDA

Will Uganda finally be able to tax online multinationals? 

Uganda Revenue Authority says the Global Tax Agreement reached recently, presents Uganda with an opportunity to tax companies that have no physical address in the country.

The question now being asked by tax experts and civil society, is whether this could be an onslaught on Uganda’s Taxing Rights and that of the region as a whole?

According to Regina Navuga, a tax analyst with Seatini Uganda,  such global tax agreements eventually impact national and regional tax regimes although EAC countries such as Uganda and Kenya are not part of the 136 signatories to the agreement.

The decision on the global minimum tax rate, according to Seatini Uganda and Tax Justice Network, is critical for developing countries including Uganda due to their heavy reliance on corporate income tax.

As for the taxman, global tax deals present a rare opportunity to tax companies that generate revenue from Uganda but have no physical presence such as Facebook and Google, among others.

“What this global tax deal is saying is that we should be able to tax a proportion of the profits they make from Uganda,” Robert Luvuma, the URA manager of large taxpayers, says.

This is important because the current design of the country’s tax system only caters for taxation of companies that are physically present yet most companies have shifted business online.

(Source: The Monitor)

How SMEs Can Tap Into Oil and Gas as First Oil Nears 

Small and medium-sized enterprises need to enhance their capital base, embrace partnerships and adhere to high corporate governance standards to reap from the upcoming oil and gas sector, sector players said.

Patrick Mweheire, the Chief Executive at Standard Bank Group, Eastern Africa and Chairman of Uganda Chamber of Mines and Petroleum, said, during the 2-day East African SMEs Oil and Gas conference held at the Kampala Serena Hotel from November 18-19, that SMEs continue to face big challenges especially in record keeping which among others limits lenders’ ability to support them financially.

Mr. Mweheire cited the Stanbic Business Incubator where SMEs are being supported to bridge their gaps to enable them participate in the oil and gas sector. The Incubator allows small and medium-sized businesses interested in and/or engaged in the oil and gas industry to skill and train in order to address prevalent business challenges in Uganda.

Uganda’s oil and gas sector is expected to benefit SMEs in more than 16 sectors including; transport, security, foods and beverages, hotel accommodation and catering, human resource management, office supplies, fuel supply, land surveying, clearing and forwarding, crane hire, locally available construction materials, civil works, supply of locally available drilling and production materials, environment studies and impact assessment, communications and information technology services and waste management.

(Source: The Independent)

RWANDA

Rwanda’s Economic Growth Revised to 10.2pc for 2021 

Rwanda’s economic growth projection has been revised upwards to 10.2 percent from a previous 5.1 percent set earlier in the year, a recent International Monetary Fund mission noted.

Rwanda’s economy contracted by 3.4 per cent in 2020 as a result of the Covid-19 pandemic. 

The IMF noted that the growth was driven by unprecedented policy support, robust remittances, efforts to step up the vaccination rate as well as progress in structural reforms that are supporting economic recovery in 2021.

The assessment also found Rwanda’s banking system to be stable, liquid, and well-capitalized while non-performing loans remained relatively as a resort of policy support and moratorium measures which had been set up. “The authorities should continue with intensive monitoring of credit risk and prudent loan classification and provisioning,” the post engagement summary noted.

The IMF noted that going forward, Rwanda’s monetary policy should remain data-dependent, guided by inflation expectations, and supportive of the economic recovery.

(Source: The New Times)

BRD and EIB sign € 30 million loan agreement 

The Development Bank of Rwanda and the European Investment Bank, which signed a 30-million euro agreement on Tuesday, November 23, will provide loans to both sides in Rwanda.

It is an agreement based on the bank’s plan to meet the investment and economic impact of the Covid-19 epidemic in the East African region.

The Minister of Finance and Planning, Dr. Uzziel Ndagijimana, said the government’s economic recovery strategy was mainly based on advocating for the private sector to help create new jobs.

BRD’s chief executive, Kampeta Sayinzoga, said the money would be added to the capacity of the bank if it continued to build on accelerated development through large-scale projects but also encouraged commercial banks to invest in the private sector with projects that would boost the development of many Rwandans.

(Source: Rwanda Broadcasting Agency)

SUDAN

Five vessels loaded with fuel arrive in Sudan

Five vessels loaded with fuel arrived in Sudan’s main port, the energy and oil ministry said on Wednesday, adding that the country’s fuel reserves are sufficient. Three vessels were loaded with diesel, one with cooking gas and one with petrol, the ministry said.

“The supply situation is very reassuring,” it said, adding that work is under way to implement Sudan’s import plan for December.

(Source: Reuters)

SOMALIA

National Treasury Says Millions of Dollars Stolen From Government Budget 

Somali National Auditor-General Mohamed Mohamud Ali Afgoye has released an annual report on the audit of Somali government departments. According to the report, 25 entities and three embassies have been audited.

The Auditor-General said contracts worth $31 million are not registered with his office and the existence of unauthorised bank accounts outside the Treasury Single Account.

For the first time, they audited the fishing sector and found an under-collection of $56 million in revenue from fishing vessels. In 3 years, the Ministry of fishery issued licenses to 43 domestic companies, 15 cooperatives, 83 foreign companies affiliated to China, collecting only $3.3 million.

According to the report, the 2020 budget was $ 685 million and the audit was $ 287.8 million. The report also states that the cost of the various agencies without proper documentation is $9.1 million.

(Source: Dalsan Radio Mogadishu)

Farmajo Offers COMESA Countries Investment Opportunities In Somalia 

The President of the Federal Republic of Somalia Mohamed Abdullahi Farmajo, who attended the East and Southern Africa Market Summit (COMESA) Summit, presented a wide range of investment opportunities in Somalia.

The President pointed out that economic cooperation and trade facilitation of the countries of the region is the basis of plans at the continental level to improve the lives of poor people, eradicate poverty and achieve the goal of inclusive development.

President Farmajo commended the efforts of COMESA Heads of State in the implementation of the Economic Integration Plan, in finding a lasting solution to the scourge that has delayed the lives of the people and recovery from the devastating effects of Covid-19 on their economies.

(Source: Dalsan Radio Mogadishu)

ERITREA

Safe water, safe life 

According to the Director-General of the Department of Water Development and Projects in the Ministry of Land, Water and Environment, Mr. Msghna Gebreslase, sufficient and safe water is one of the pillars in ensuring the health of citizens in a country. Therefore, the main task of the department is to pave the way for citizens to safeguard their health and ensure their continuity by providing them easy access to water especially those who live in remote areas. He added that the government has been working thoroughly in this sector despite eminent challenges over the past 30 years. Building dams in villages can be taken as an example and it has reduced health risks and granted the dwellers access to drinking water. Mr. Msghna added that the department earnestly works, as a priority task, to provide people in all corners of the country access to potable water within their locality.

According to documents from the Department of water, over 80% of the villages in Eritrea have become beneficiaries of clean water. However, to ensure this achievement, many obstacles had to be vaulted. This includes the geographic location of some peripheral villages and the need for the relocation of scattered households and establishing new villages to make the installation of the projects practical.

By making the needed efforts and allocating a total budget of almost 5 billion Nakfa, 1,738 villages became beneficiaries of clean water through the construction of micro-dams, distribution of 285 generators, 479 solar energy sources, and 932 manual water pumps. Mr. Misghna stressed the active participation of the local population in the completion of such projects in line with the government’s commitment towards that cause.

(Source: Ministry of Information Eritrea)

Announcement from the Ministry of Health 

Twenty-seven patients have tested positive for Covid-19 in tests carried out today at Quarantine Centers and Testing Stations in the Central, Southern, and Anseba Regions.

Out of these, 10 patients are from Quarantine Center (3) and Testing Stations in Arbaete Asmara (1), Kehawta (1), Maekel-Ketema (1), Godaif (1), Paradiso (1), Gejeret (1), and Adi-Gombolo (1); Central Region. Sixteen patients are from Testing Station in Adi-Keih (5), Dubarwa (5), Mendefera (4), Senafe (1), and Adi-Gulti (1); Southern Region. The last patient is from a Testing Station in Keren, Anseba Region.

On the other hand, 32 patients who have been receiving medical treatment in hospitals in Central (16) and Southern (16) Regions have recovered fully and have been discharged from these facilities. A 96-year-old patient from the Southern Region and a 93-year-old patient from Anseba Region died of Covid-19..

The total number of recovered patients has accordingly increased to 7,014 while the number of deaths has risen to 57. The total number of confirmed cases in the country to date has increased to 7,250.

(Source: Ministry of Information Eritrea)

ETHIOPIA

Ethiopia Secures $1.1 Billion in Remittance during Past Three Months

Ethiopia has secured 1.1 billion USD in the form of remittance during the past three months via legal channels, according to the Ethiopian Diaspora Agency.

Agency Communication Director Wondwossen Girma told ENA that the remittance being transferred through legal channels from the Ethiopian Diaspora has been increasing from time to time.

Citing that the remittance secured from the diaspora was 3.6 billion USD last year, he said the 1.1 billion USD has been legally transferred from the diaspora to Ethiopia in three months alone which shows significant improvement from previous periods.

 (Source: ENA)

Nation Earns over $1.2 Billion from Export in four Months

Ethiopia has earned 1.28 billion USD over the past four months, which is close to 98 percent of the 1.31 billion USD target, according to the Ministry of Trade and Regional Integration.

During his press conference today, Trade and Regional Integration Minister Gebremeskel Chala said the 1.28 billion USD earned in the past four months is a good indication to achieve the over 5 billion USD plan for the current Ethiopian fiscal year.

“Our plan was to generate 1.31 billion USD and we have earned 1.28 billion USD in four months, which is over 97 percent performance against the target,” he said.

Out of the total earnings, 904 million USD was obtained from agriculture, 157 million USD from manufacturing and 188 million USD from mines, it was indicated.

 (Source: ENA)  

Israel’s Mining Companies “Committed” to Continue Investment in Ethiopia

Senior management of Leica Geosystems, a company headquartered in Israel involved in mining operations in Ethiopia, have met and held talks with Takele Uma, Ethiopia’s Minister of Mines. The company’s management expressed their commitment to continue their investment in Ethiopia.

Mr. Takele has expressed his gratitude to the Israeli mining company for “standing with the Ethiopian people and government”, highlighting that private investments remain highly valued during the current season of turmoil.

Reta Alemu, Ethiopia’s Ambassador to Israel, said the participation of Israeli companies in mining in Ethiopia has been “encouraging”. He further highlighted how the involvement of the private sector can help strengthen the long-standing ties between Ethiopia and Israel.

 (Source: 2merkato)

KENYA

CBK Takes Baby Steps Towards Launch of Digital Currency (Source: Business today)

Kenya is exploring the possibility of developing and launching a central bank digital currency (CBDC) to settle cross-border payments, as it seeks to advance the shift to a cashless economy and secure transactions.

The Central Bank of Kenya Governor, Dr Patrick Njoroge, says CBDCs can slash the time needed for cross-border payments in addition to cutting costs significantly. A CBDC is money that exists in electronic form, issued and regulated by the nation’s monetary authority and backed by the government.

Speaking on the sidelines of the Afro-Asia Fintech festival, which was held virtually, Dr Njoroge said that CBDCs can enhance the efficiency of cross-border payments, as long as countries work together. “We see the benefits would be more cross border,” said the CBK governor. “The issue is not to be first, the issue is to do it right.”

Towards this end, Dr Njoroge said that the CBK is in discussions with other global central banks. Many central banks across the world are considering issuing digital currencies to cater to businesses and households seeking faster, safer, easier, and cheaper means of payments.

Uhuru’s budget for new president signals higher taxes (Source: Business Daily)

President Uhuru Kenyatta’s last budget will put his successor under pressure to raise Sh342.20 billion additional revenue to implement his preferred projects, setting up Kenyans for higher taxation.

President Kenyatta’s administration has proposed a budget of Sh3.31 trillion for the financial year starting July 2022, a month before he leaves office at the end of the constitutional two-year term.

The Treasury plans to spend Sh278.81 billion or 9.2 percent more than the budget for the current year in a bid to enhance investments in Mr Kenyatta’s legacy projects under the Post-Covid-19 Economic Recovery Strategy and the floundering “Big Four” Agenda.

Kenya will continue to splurge on infrastructure projects and a stimulus plan to maintain economic growth in the face of the coronavirus crisis, which delivered layoffs and business closures.

The new president, who will take over from Mr Kenyatta, will need to increase ordinary revenue to nearly Sh2.41 trillion next Financial Year against the Sh2.06 trillion estimate for the current year

TANZANIA

Malaysian firm to invest in locomotive assembly plant (Source: The Citizen)

Tanzania will start producing locomotives and wagons within a year if a foot plan by Malaysia’s railway engineering service provider to invest between $40 million (about TSh92 billion) and $100 million (about TSh230 billion) comes to fruition.

SMH Rail has already secured 50 acres of land at Kwala in Kibaha, Coast Region for building of a rolling stock manufacturing plant to manufacture locomotives, wagons and a diesel–electric multiple unit (Demu).

This is according to the company’s representative, Mr Mussa Mansour, who was speaking here yesterday on the sideline interview of an event to handover to the Tanzania Railway Corporation (TRC) of the TSh22 billion worth three modern locomotives (H10 series) for the metre gauge railway (MGR).

Mr Mansour said they were expecting to soon start the construction of the factory that is set to create 1,000 direct jobs to Tanzanians.

Tanesco to announce rationing as power generation drops (Source: The Citizen)

Tanzanians should brace for more pains as power rationing looms after Tanzania Electric Supply Company Limited (Tanesco) revealed that water levels in many of their dams have reduced.

According to a statement issued by Tanesco on Thursday, November 18, 2021 the utility company said that that situation has affected power generation at some of their stations.

The power supply company stated that the declining water levels have affected stations such as Kihansi, Kidatu and Pangani leading to a deficit on the national grid.

 “The total production deficit is approximately 345 megawatts which is equivalent to 21 percent of total production,” reads part of the statement. “Because there will be shortages in some regions, information will be provided in a timely manner so that clients can plan their activities.” Tanesco says in a statement.

RWANDA

BNR said Covid-19 had given commercial banks the right to renew loans (Source: Rwanda Broadcasting Agency) 

The Central Bank of Rwanda has stated that in the current era of Covid-19, it has given commercial banks the right to reform loans to facilitate the borrowers, as their activities are being disrupted by the epidemic. As a result, the debt is valued at $776 billion, or about 28%.

Private sector lending in 2020-2021 increased by 28.7%, while in the previous year it was at an average rate of 26.4%. Economic analysts point out that this increase in private lending has played a role in bringing together the overall economy of the country, which has been hit hard by the covid 19.

On the other hand, non-performing loans have risen from 5.5% in 2019-2020 to 5.7% in 2020-202 in the banking sector, while in small and medium-sized enterprises the rate has decreased to an average of 6.7%, however in the previous year these unsecured loans were at a rate of 12.8%.

The Governor of the Central Bank of Rwanda, Mr John Rwangombwa, explained to both members of Parliament that it was agreed that the debts of bank customers should be renewed for at least 4 years. Banking profits have continued to rise over the past two years as they rose from Rs 33 billion to Rs 56 billion in the fiscal year ended June 2021.

Rwanda’s export revenues grow by 16 per cent (Source: The New Times) 

Rwanda earned over $1.487 billion (over Rwf1.4 trillion) from exports during the 2020-2021 fiscal year, up from over $1.277 billion during the previous year, representing a 16.4 per cent increase in the country’s export receipts, according to the Central Bank report set to be presented in Parliament this afternoon.

The National Bank of Rwanda (BNR)’s annual report for the financial year 2020/2021 which ended on June 30, indicated that the country’s total export volume increased by 30.2 percent. Overall, the growth of the revenues and the export quantities imply a drop in prices on the international markets.

According to the report, the growth in export revenues reflects primarily a continued recovery of merchandise exports from the Covid-19-induced collapse that reached the lowest point in recent times, during the second quarter of last year.

Specifically, traditional exports (including minerals, tea, coffee, and pyrethrum), non-traditional exports (such as grains, cereals, and horticulture) and re-exports categories increased by 10 percent, 44.4 percent, and 21.9 percent respectively.

UGANDA

Kenya delays trade mission to Uganda to resolve sugar, milk row (Source: The Monitor)  

Kenya has postponed a trade mission to Uganda in which the two countries had sought to resolve the sugar and milk import standoff until December. 

This is the third time Kenya is postponing the matter that has raised questions on whether the two countries are ready to find a lasting solution to the impasse.

Kenya’s Principal Secretary State Department of Livestock, Harry Kimtai, said the November meeting will not take place as planned because the Kenya Dairy Board was not ready.

The delay to resolve the impasse comes at a time when Uganda has been allowed to access the Zambian market, offering an alternative to the country’s commodity.

Pearl Dairy, makers of Lato milk, secured annual supplies of milk to Zambia after the company suffered major losses when Kenya stopped exports of its products in 2019.

The firm is the largest processor of milk in Uganda with a daily capacity of 800,000 litres. 

Banks want taxes on mobile money, Internet scrapped (Source: The Monitor)

Commercial banks have asked Uganda Bankers’ Association (UBA) to lobby the government, particularly Bank of Uganda and Ministry of Finance, to consider removing or reviewing digital taxes. 

The taxes, among them mobile money tax, banks claim, impact digital inclusion thus reducing uptake of digital financial services.

“Lobby for removal of user taxes on mobile money and internet access, to attract more users thus increase both digital and financial inclusion,” banks say in details contained in the proposed regulatory reforms in the banking sector. 

The removal of such taxes, they claim, will lower the cost of popular digital financial services, many of which the government plans to use in the transformation of Uganda’s financial services from cash-based to a cashless economy.

ETHIOPIA

Addis Preparing to Export 60+ Agricultural and Industrial Products (Source: 2Merkato)

Ethiopian Investment Commission (EIC) announced that Ethiopia is preparing to export over sixty types of agricultural and industrial products to improve its forex earning.

Samuel Assefa, Director of Export Projects Facilitation at EIC, pointed out Ethiopia is already exporting agricultural and industrial products to American, European, Asian, and other African markets. Furthermore, efforts are in full swing to increase such exports and their market reach, undergirded by related market research, he said.

The market research, Mr. Samuel remarked, will help Ethiopia earn more forex while resisting undue economic pressure from certain countries. He also called on the concerted efforts of all stakeholders to do what is expected of them for success to be achieved.

Efforts are underway to maintain quality standards of agricultural and products, Mr. Samuel said, adding that the mining sector has a significant role to play to ensure sustained forex earnings.

Pointing out that Ethiopia has abundant resources but an unmatched low amount of exports, the Director said “a lot needs to be done in the future.”

Ethiopia Collects Over 53.9bn Birr ($1.13 billion) in Revenue in October (Source: 2Merkato)

Ethiopia’s Ministry of Revenues announced that it has collected over 53.9 billion birr in the month of October alone. The amount stands at 95.26 percent of the 56.59 billion birr target set for the period, Lake Ayalew, Minister of Revenues noted.

Compared to the previous fiscal year, the collected amount has shown an increase of 21.82 percent, over 9.657 billion birr. Local tax accounted for nearly 42.8 billion birr of the collection, while customs duties amounted to 11.84 billion birr.

Mr. Lake emphasized this has been achieved despite four of its branches not being functional due to the security situation in some parts of the country, in addition to movement restriction in other areas. He also extended thanks to the staff of his Ministry who he said worked “relentlessly” for the achievement to be realized.

ERITREA

Gerset Farm Project making a difference (Source: Ministry of Information Eritrea)

The construction of Gerset dam, which triggered the transformation of traditional farm practices to advanced irrigation systems, is a stepping stone toward the expansion of mechanized farm projects and change in the living standards of local communities. Farm activities that have been flourishing in Gerset and its surrounding areas are the result of the construction of major dams in Goluj sub-zone.

Gerset farm has been a training centre for young graduates who are now armed with practical experiences that are instrumental in moving the farm project forward. Over 500 professionals, who have over five years of experience in Plant Protection, Horticulture, Agronomy and Agricultural Engineering and other disciplines have been running and making a difference in all major farm activities of Gerset farm. Mr. Amine Tesfamichael, Manager of Gerset Farm, said besides the contribution they have been making to the development of the farm, the graduates are making use of the opportunity provided for them to hone their skills.

SUDAN

Finance minister calls for international aid (Source: Africanews)

Last month, Sudan’s top military leader General Abdel-Fattah Burhan dissolved the government and transitional council, arresting many political leaders and activists, including Prime Minister Abdalla Hamdok, who is currently under house arrest. 

The Oct. 25 military takeover has halted all aid. The United States suspended $700 million (618.6 million Euros) in direct financial assistance and the World Bank suspended aid of up to $2 billion (1.8 billion Euros). Mediation efforts are ongoing with top US diplomat Molly Phee visiting Khartoum.

The Finance Minister Gibril Ibrahim called for continued international support for Sudan’s transition to democracy.

SOMALIA

Milk, meat and might: Camel is king in Somalia’s economy (Source: Daily Sabah)

For many Somalis, the camel is a gift from the gods: a source of milk and meat, a beast of burden in the desert and – as climate change spurs extreme weather in the Horn of Africa – insurance in times of crisis. In this overwhelmingly rural society of 15 million, the rearing of camels and other livestock underpins an economy devastated by war and natural disaster that ranks among the world’s very poorest.

The livestock industry is the main contributor to economic growth in Somalia and in normal years accounts for 80% of exports, according to the Food and Agriculture Organization (FAO).

Camels are far outnumbered by sheep and goats, which wander Hargeisa in northern Somalia with their owner’s phone numbers scrawled on their sides, should they get lost and need returning.

But at seven million beasts, there are more camels in Somalia than almost anywhere else, and they don’t just confer respect on their owners – they fetch much higher prices. An impressive specimen can carry a $1,000 (860 euros) price tag. 

KENYA

Kenya slides in credit default rules enforcement survey (Source: Business Daily)

Kenya’s failure to enforce rules to reduce credit default risks locking out local and foreign investors in the financial market and reduce the country’s attractiveness for investment, a report has shown.

The Absa Africa Financial Markets Index 2021 shows Kenya lost 29 points in an index that measures enforcement of rules that reduce defaults for commercial and investment banks, scoring 28 out of 100.

The drop saw the country slip four places in the Africa financial market attractiveness survey—to 11th spot from seventh in 2020.

The measure looks at the enforceability of standard financial markets master agreements that help cut risks and create a better investment environment for investors.

Uhuru Kenyatta to lead climate talks at UN conference (Source: Business Daily)

President Uhuru Kenyatta will lead talks on Africa’s crucial role in tackling the climate crisis at the United Nations Climate Conference (COP26) starting in Glasgow, Scotland, next week.

President Kenyatta and Evgeny Lebedev, the British-Russian tycoon owner of the Evening Standard and The Independent newspapers, will convene a side event to discuss the importance of protecting Africa’s carbon-rich natural landscapes.

The event staged by Kenya, The Independent and the international conservation NGO – Space for Giants – will also discuss how private and public sector investment can help preserve crucial carbon sinks.

State eyes record Sh150bn bond sale to clear debt and fund roads (Source: Business Daily)

The government is set to float a record Sh150 billion infrastructure bond next month, whose proceeds will be used to offset debt to contractors and finance the completion of ongoing road projects.

Infrastructure Principal Secretary Paul Mainga said the Treasury, the Central Bank of Kenya (CBK), and the Attorney-General had approved the sale of the bond.

“The National Treasury and other government agencies have agreed as a matter of urgency that we float a Sh150 billion roads bonds to pay contactors and complete ongoing works,” he told the National Assembly’s Public Accounts Committee (PAC) on Tuesday, 26 October, 2021.

UGANDA

Complaints against financial institutions decline – BoU (Source: The Monitor)

The level of financial service complaints against supervised financial institutions has significantly declined, according to the Bank of Uganda.

In details contained in the Bank of Uganda June 2021 annual report, the Central Bank said complaints against supervised financial institutions had declined by 33.7 per cent compared to a rise in the same period ended June 2020.

“The decline in number of complaints by 33.73 per cent contrasts with a rise of 6.96 per cent, [which] partly reflects the effects of Covid-19 on financial services usage,” said the Central Bank.

Afreximbank’s platform to promote cross-border trade in Africa (Source: The Independent)

The African Export-Import Bank’s new digital Customer Due Diligence (CDD) platform, called Mansa, is set to promote cross-border trade in Africa, says product head Maureen Mba.

Mba, who spoke during the launch of the platform in the East African Community in partnership with the East African Business Council in Kampala on October 20, said 965 businesses have already been uploaded onto the platform consisting of financial institutions, corporates and the Small and Medium Enterprises across Africa.

Some of Uganda’s institutions on the platform include; Absa Bank, dfcu Bank, Cairo Bank, Opportunity Bank, Ecobank, Finance Trust Bank, NCBA Bank and Tropical Bank.

TANZANIA

Tanzania clears its capital arrears in Shelter Afrique (Source: Standard Media)

Tanzania has cleared its capital arrears in Shelter Afrique after paying $407,284.97 (KSh45 million), Pan-African housing development financier has disclosed.

The move increases Tanzania’s shareholding in the company to 1.72 percent, up from 1.54 percent.

Last month, Tanzania paid $2.7 million (about KSh300 million) in capital injection to the firm, increasing its stake in the housing financier.

Uganda, Tanzania to see 60% increase in FDI due to oil – PSFU (Source: The Monitor)

Private Sector Foundation of Uganda (PSFU) has said Uganda and Tanzania will see an increase of more than 60 per cent in Foreign Direct Investment just within the construction phase of East African Crude Oil Pipeline project.

Speaking at the launch of the Tanzania-Uganda Oil and Gas symposium due in Dar-es-Salaam, Dr Elly Karuhanga, the PSFU chairman, said the symposium which will run under the enhancing private sector participation in the oil and gas sector, is an undertaking that is expected to see investment in the oil and gas projects total to $20 billion, with the pipeline alone, standing at more than $3.5 billion.

RWANDA

What should feature in a Rwandan business’s data privacy policy? (Source: The New Times)

In a recent attempt to catch up with the rest of the world with respect to personal data and privacy, Rwanda just gazetted Law nº 058/2021 of 13/10/2021 relating to the protection of personal data and privacy.  This law generally establishes the manner in which personal data shall be processed, stored, shared and what rights the data owner has. 

This law requires anyone who wants to collect personal data to seek the affirmative or informed consent of the data owner which may be obtained through an oral, written, or electronic statement or by a clear affirmative action that signifies agreement to the processing of personal data relating to him or her.

ETHIOPIA

Lacking Coherent Policy USA is Reacting to Media & Human Rights Reports: American Journalists (Source: ENA) 

Threats of economic sanctions of the US administration have come with no real coherent policy but in reaction to media and human rights reports, American journalists said.

The two journalists working at Break Through News (BT) stated that the US policy and its calculation are not understandable.

They cited the threat of America to destroy Ethiopia’s economy by suspending economic partnerships and sanctioning the government over the conflict with the TPLF, adding that “many are surprised that Washington would go to such extreme lengths to alienate and potentially destabilize a long time ally.”

EthSwitch obtains license to integrate Mobile Money Operators (Source: The Reporter Ethiopia)

EthSwitch obtained a license from the National Bank of Ethiopia (NBE) to integrate mobile money operators. Issued on October 27, 2021, the license is a key step forward in realizing the launch of a unified mobile money platform EthSwitch has been working on for the past year.

“We have secured the go ahead from the central bank,” Marketing and Business Development director at EthSwitch, Fikru Woldetinsae, told The Reporter.

KENYA

Auditor queries CBK law breach over board members (Source: Business Daily)

Auditor-General Nancy Gathungu has once again raised concerns over Central Bank of Kenya’s (CBK) legal breach operating with seven instead of 11 directors and the absence of a second deputy governor.

Ms Gathungu said in her latest CBK audit report for the year ended June 30, 2021, the banking regulator has four non-executive directors despite the law demanding that President Uhuru Kenyatta appoints eight of the board members.

She said there has been no amendment to the Central Bank Act to provide for the reduction in the number of directors or deputy governors adding that CBK was therefore in breach of the law. It is the second time the CBK is being faulted for the quorum breach.

The Auditor-General raised the query previously in the audited books of the CBK for the year ending June 2020.

State barred from halting Sh4 billion WB-backed tenders (Source: Business Daily)

The High Court has barred the government from cancelling a Sh4 billion World Bank-funded tender for the construction of classrooms and toilets in 30 counties.

Justice James Makau held that three firms, which were part of the 26 construction companies that participated and won the tender last year, had made a case against the government, with chances of success.

The companies including Samaha Company Ltd, Columbia Developers and Pacific General Works Ltd, argued that the government refused to formally sign the contracts, nearly one year after they were submitted.

Through lawyer Gad Ouma, the companies argued that they won the Sh4 billion tender for the construction of classrooms, laboratories and toilets in selected secondary schools in marginalised areas.

KCB agrees to waive Sh430m penalties on NCPB loan default (Source: Business Daily)

KCB Group has agreed to waive Sh430 million in interest penalties the lender slapped the National Cereals and Produce Board (NCPB) for defaulting on a loan.

The National Assembly’s Agriculture Committee heard that the bank had also committed to temporarily freeze interest chargeable on the Sh3.6 billion loan with effect from July 1, 2021.

The cash-strapped NCPB used its assets as collateral to secure a Sh3.6 billion loan to finance part of the fertiliser subsidy in the year to June 2017, but failed to repay.

MPs reject State bid to control hospital charges (Source: Business Daily)

Parliament has rejected a government-backed Bill that sought to control medical bills and doctors’ fees after health sector lobbies protested that their views had not been taken into account.

National Assembly Speaker Justin Muturi said Thursday that the Committee on Health did not show proof that it considered views from stakeholders and reasons for ignoring their input.

Under the Health (Amendment) Bill, 2021, hospital charges were to be determined and capped by an 11-member council that included the Principal Secretary for Health, the Attorney-General and a representative of the Council of Governors.

This would have seen hospital charges join fuel on the list of essential services that are controlled by the government in the push to make basic items affordable.

Civil society groups back Uhuru snub of Biden tax plan (Source: Business Daily)

Civil society groups have hit out at US President Joe Biden administration’s push for a global minimum rate of tax on multinational companies saying the deal as currently structured will not ensure equity in taxation of multinational firms – a position echoed by President Uhuru Kenyatta’s administration.

The Tax Justice Network, a group campaigning for transparency criticized the Paris-based Organisation for Economic Cooperation and Development (OECD), for failing to live up to the “original ambition” of the plan, and said that the watered down measures mean that only a “sliver of the profits” of multinationals will become taxable, while incentives to shift profits remain sizable.

UGANDA

Govt to conduct budget review, releases UGSh 5.8 trillion (Source: Daily Monitor)

The Government of Uganda has said it will conduct a budget review that will result in shifting funds to priority sectors of the economy.

While releasing about UGSh 5.8 trillion for the second quarter of the 2021/22 financial year, Mr Ramathan Ggoobi, the Ministry of Finance permanent secretary and secretary to the Treasury, said the release for the 2021/22 second quarter had prioritised health and social protection, agriculture and industry, governance, Uganda Revenue Authority, Judiciary and Legislation.

For instance, he said, out of the total release, UGSh 294.69 billion will go to health institutions and social protection, with UGSh 120.73 billion going to National Medical Stores to procure essential medicines while UGSh 42.45 billion will go to support ministries of Health, Gender, Labour and Social Development.

Five companies issued with electronic money license (Source: Daily Monitor)

Bank of Uganda has licensed five more companies to conduct digital and electronic payments under the new National Payment System law.

The five join MTN and Airtel, which were separately issued with Payment Systems Operator and Payment Service Provider licences in May.

The National Payment System Act, implemented under the National Payment Systems Regulations, seeks to streamline operations of electronic operators.

The five companies include issuers of payment instruments and trust fund operators. Ms Charity Mugumya, the Bank of Uganda director communications, yesterday told Daily Monitor that the five brings the number to seven of companies that have so far been licensed under the National Payment Systems Act.

TANZANIA

Mansa digital platform to boost SMEs in EAC (Source: The Citizen)

Arusha. Mansa digital platform will enable companies and small and medium enterprises (SMEs) to trade confidently across Africa. This will cut down the transaction cost of trading under the African Continental Free Trading Area (AfCFTA) with a huge market of 1.2 billion consumers.

This was revealed in Kampala, Uganda, early by John Bosco Kalisa, the executive director of the East African Business Council (EABC) where the facility is set for launch today. The platform is Africa’s centralised customer due diligence digital repository. It derives its name from Mansa Mussa, a former emperor of the Mali Empire in the 14th Century.

He is credited for placing Africa on the world map through his immense wealth of gold which opened the trade routes across the continent. In Uganda, the platform will be launched today by EABC in collaboration with the Private Sector Foundation of Uganda (PSFU) and Afreximbank.

25-year bond auction affects DSE trading (Source: Daily News)

The Dar es Salaam Stock Exchange (DSE) activities have been affected heavily by the auctioning of the 25-year Treasury bond to drive the market into bearish mode.

The 25-year bond bids registered a record high after the tender size reached TSh 636.6 billion which was equivalent to 4.45 per cent of the total size of listed Treasury bonds on the DSE.

Thus, the auction of the bond, with the longest tenure in the market, plunged the equity market turnover by 82.50 per cent to TSH 239.74 million last week from TSh 1.369 billion in previous week. Zan Securities said in its Weekly Market Wrap-ups that due to the 25-year bond, the equity market ended on the bearish side to end of last week, despite foreigners dominating the turnover by 60 per cent.

RWANDA

Rwanda files to acquire over 300,000 satellites (Source: New Times)

Rwanda Space Agency has filed a request to acquire two satellite constellations from the International Telecommunication Union (ITU), namely Cinnamon-217 and Cinnamon-937, according to an official statement.

The development was communicated by the agency on October 20 saying that the submission is in compliance with ITU regulations and procedures.

The detailed application for the two fleets of craft totals 327,320 satellites.

Francis Ngabo, Chief Executive of RSA, said this progress is in line with making the country a hub for the African space industry.

African Microfinance Week Opens in Kigali (Source: KTPress)

The first African Microfinance Week (referred to as ‘SAM’, the French acronym) has opened in Kigali with a call to microfinance institutions (MFIs) to turn finance access challenges into opportunities.

The meeting, which convened over 600 international inclusive finance professionals, will run from October 19-22, 2021 with a focus around the topic of resilience in the Covid-19 pandemic, sharing Pan-African insights and expertise on all aspects of inclusive finance.

ETHIOPIA

IMF Report Plain Manifestation of Unjust Pressure on Ethiopia: Economist (Source: ENA)

The recent unjust report of the International Monetary Fund (IMF) on Ethiopia’s economic growth is a clear manifestation of the well-coordinated pressures on the country, an economist said.

Despite being one of the founders of the United Nations and a symbol of African independence, the international institutions, including the UN, are recently undermining and denying Ethiopia’s long-term contributions.

The International Monetary Fund (IMF) has not released GDP growth forecast for Ethiopia in its latest World Economic Outlook for the next four years.

The recent report of the IMF on Ethiopia is part of the coordinated pressures on the nation by withholding the country’s GDP growth forecast.

Addis Ababa University Economics lecturer, Birhanu Denu told ENA that the report on Ethiopia is not based on facts on the ground.

Investors Operating in Ethiopia’s Industrial Parks Competent in Global Market (Source: ENA)

Investors engaged in different industrial parks of Ethiopia are competent in the international market, according to Industrial Parks Development Corporation.

Industrial Parks Development Corporation CEO, Sandokan Debebe told ENA that foreign investors favour Ethiopia for the availability of abundant and wage competitive labour force, fast growing infrastructures and one-stop services.

The country, according to Sandokan, is looking for additional market destinations besides  the duty-free market incentives provided by the African Growth and Opportunity Act (AGOA).

He further stated that the investors engaged in the parks have the potential to compete in the international market.