Trade and Financial Services Round-Up

  • 23 Oct 2023
  • 3 Mins Read
  • 〜 by Jewel Tete


Foreign investors lower risk of Kenya defaulting on debt

Overseas investors have lowered risk assessment on Kenya’s ability to repay its fast-rising external debts after the Central Bank of Kenya outlined a plan to borrow up to $1 billion (about Sh149.27 billion) to partly repay the maturing debut Eurobond. CBK Governor Kamau Thugge last week revealed talks with the Trade and Development Bank and the African Export-Import Bank aimed at raising between $500 million (Sh74.64 billion) and $1 billion in commercial loans before the end of the year. The proceeds, Dr Thugge told Reuters on the sidelines of the World Bank and IMF meetings in Marrakech (Morocco) last week, would in part be spent on repaying the 10-year $2 billion [Sh301.51 billion as per budget books], which matures in June 2024.


(Business Daily)



BoT issues new regulations for bureau de change

The Bank of Tanzania has issued new Foreign Exchange (Bureau de Change) Regulations which revoke the Foreign Exchange (Bureau de Change) Regulations 2019. The Central Bank Governor, Emmanuel Tutuba, said in a statement that the new regulations have been issued under the Foreign Exchange Act through Governemnt notice No. 730 of 2023, published in the Government Gazette on October 6, 2023. These regulations have introduced, among other things, three classes of Bureau de Change licenses. Class A shall be foreign or locally owned and allowed to open branches anywhere in the country. Class B has local shareholding and shall not be allowed to open branches. Class C can be established in any hotel of a rank of three stars and shall be issued exclusively to a hotel or hotel owner.


(The Citizen)



Rapid increase in non-performing loans forced BoU to ask banks to abolish charges on early loan repayment

The Bank of Uganda (BoU) asked commercial banks and other supervised financial institutions to abolish charges for early credit repayment on the back of growing non-performing loans and an increasingly volatile lending environment. The directive is referenced in a Monday Uganda Bankers’ Association (UBA) letter to the Bank of Uganda executive director supervision by UBA Executive Director Wilbrod Owor, in which he indicated that “a decision was reached [in an October 13 meeting] to abolish the practice … across our membership”. The letter came after a series of meetings and correspondences between commercial bank chief executives, central bank executives and other members of the banking sector umbrella association (UBA).





Rwandan bank first cross-listed firm on the NSE-20 Share Index

Rwandan BK Group is the first firm listed in two markets to make it to the Nairobi Securities Exchange (NSE) 20 Share Index. The group owns the Bank of Kigali the largest lender in Rwanda, and will be looking to make inroads into the Kenyan Market. The NSE 20 Share Index is a market capitalisation-weighted index that comprises the top 20 companies listed on the Nairobi Bourse.


(The Star)



Africa Trade, Investment Summit to take place in Addis

Ethiopia will host the second Africa Trade and Investment Summit (ATIS) on 4th December 2023. According to a press release sent to ENA by the Investment Center of Africa (ICOA), the summit will showcase success stories and best practices from entrepreneurs and investors who are making a positive impact in Africa. The summit also served as a source of inspiration, demonstrating the immense potential for growth and success in the African market.





Sudanese Pound hits new all-time low

The Sudanese Pound (SDG) continues its nosedive against foreign currencies, attributed by traders and economists to an increase in demand for the US Dollar. The greenback was trading for SDG950 on the parallel market on Tuesday, while the official USD rate quoted by the Bank of Khartoum jumped to SDG710, and Omdurman National Bank quoted SDG750. This represents an increase of SDG10 from Monday and a rise of more than SDG60 in one week.