KENYA

Equity Group Pushes Back on DRC’s Local Stake Requirement

Equity Group has sought an exemption from a rule in the Democratic Republic of Congo (DRC) that requires the lender to sell a 30 per cent stake in the subsidiary to nationals of the central African nation. The lender sent a memo to the DRC government on May 27 through the bankers’ lobby, the Association Congolaise des Banques (ACB), requesting an exemption from the rule that appears to be slowing down Equity’s ambition to reduce its reliance on the Kenya operations. The DRC’s Central Bank, Banque Centrale du Congo (BCC), requires banks operating in the country to have at least four unrelated shareholders, including current owners, to hold a minimum stake of 15 per cent each by the end of 2026, thereby spreading risks. Local shareholders must also own at least 45 per cent of the banks, prompting one of the largest deal-making transactions in the region. The directive, known as Instruction 18, requires Kenya’s two largest lenders, Equity Group Holdings and KCB Group, to sell significant stakes within the next 19 months to comply.

(Business Daily)

TANZANIA

Tanzania Boosts Trade Ambitions with Metals Hub Deal

Global logistics firm DP World has signed an agreement with China Metal Storage and Transport Company (CMST) and Henry Bath and Sons Ltd of the United Kingdom to channel the global metals trade through the Port of Dar es Salaam. The move is expected to significantly boost Tanzania’s position as a key regional hub for the warehousing and trade of strategic minerals, according to Tanzania Ports Authority.

(The Citizen)

UGANDA

Uganda’s Imports from Kenya Decline for the First Time in Seven Years

For the first time in seven years, Uganda’s imports from Kenya declined between January and March. This reflects the impact of ongoing trade tensions and retaliatory tariffs between the two countries. According to data from Kenya’s statistics agency, export earnings dropped slightly from KSh 29.67 billion to KSh 29.60 billion, a marginal decline of 0.24 per cent. This marks the first decline since 2017. The drop comes amid complaints from Kenyan manufacturers over continued discriminatory tariffs on products like fruit juice and furniture, despite public commitments by Presidents Yoweri Museveni and William Ruto to eliminate trade barriers and strengthen bilateral trade ties.

(Business Daily)

RWANDA

Rwanda’s Economy Remains Strong, says IMF

Rwanda’s continued fiscal consolidation, supported by stronger domestic revenue mobilisation and spending efficiency, is essential to safeguard the country’s macroeconomic stability and debt sustainability, the International Monetary Fund (IMF) Executive Board has said. This was observed after the fifth review under the Policy Coordination Instrument (PCI) on June 4th. The Executive Board concluded that Rwanda’s economic growth remains among the strongest in sub-Saharan Africa, despite rising fiscal and external pressures linked to large investment projects and reduced concessional financing. 

(The New Times)

ETHIOPIA

House Approves Loan Deals with Arab Bank, IDA

Ethiopia’s House of People’s Representatives has approved loan agreements with the Arab Bank for Economic Development in Africa and the International Development Association (IDA) (a part of the World Bank Group). The $49.55 million from the Arab Bank, partly a grant, will support irrigation infrastructure on 8,000 hectares of land, expand agricultural industrial parks, and create jobs. The funds will also help build water tunnels and reservoirs, with the first $20 million to be disbursed immediately. The loan has a five-year grace period and a 20-year repayment plan. Additionally, a World Bank-backed loan will support health services for women and girls using integrated and technology-assisted systems.

(ENA)