Trade and Financial Services Round-Up

  • 5 Jun 2023
  • 3 Mins Read
  • 〜 by Kennedy Osore


CBK clears 33 banks for risk-based loans

The Central Bank of Kenya (CBK) has given the nod to 33 out of 39 commercial banks to implement lending to customers based on their risk profile.

Riskier borrowers are charged higher interest rates compared to those with better creditworthiness.

The apex bank which has been reviewing the pricing models of individual banks for the past three years says it will now be focusing on overseeing the models implementation as the approved lenders move to effect the new loan-pricing metrics.

While the apex bank did not disclose the names of individual banks with the nod, the approvals likely include most of tier I banks after the large lenders were mainly sidelined in initial approvals.

(Source: Business Daily)


Bank of Tanzania takes measures to tackle dollar volatility

The Bank of Tanzania (BoT) has issued new directives aimed at controlling foreign exchange trading in the country a directive that comes at a time when several African countries are struggling with the dollar shortage including Kenya.

The directive was issued by BoT Governor Emmanuel Tutuba and takes effect Thursday, June 1, 2023.

The new controls impact the retail market, stating that all foreign exchange transactions exceeding $1 million per transaction shall at all times be traded within the inter-bank foreign exchange market at prevailing quoted prices.

(Source: The Citizen)



MTN Uganda unveils the second phase of MTN Ace Tech program

MTN Uganda unveiled the second phase of MTN ACE-Tech known as the MTN Ace-Tech-Incubation program aimed at equipping enterprises with skills needed to successfully spur the growth of their businesses.

This follows the conclusion of the MTN Ace-Tech’s first phase this month which involved training 130 individuals in software development.

MTN Uganda Foundation and its partners have selected 20 enterprises to participate in the inaugural MTN Ace Tech program’s incubation phase at the National ICT Innovation Hub in Nakawa in Kampala.

(Source: The Independent)


Foreign investors term Rwanda an exemplary country in facilitating investment

Some foreigners who invest in Rwanda, find that African countries like Rwanda facilitate investment without difficulty, which would help the implementation of the common market of Africa so that the inhabitants of this continent will be separated from the use of foreign resources.

Infrastructural problems, lack of access to road papers for all, the problem of insecurity around the countries of the African continent and others, are what are shown by the private sector in Rwanda as major obstacles in the implementation of the market system. common to the countries of this continent

(Source: RBA)


Ethiopian shipping lines to commence construction of Hawassa, Jimma dry ports

The Ethiopian Shipping and Logistics Services Enterprise announced that it will start the construction of Hawassa and Jimma dry port terminals soon. 

Ethiopian Shipping Port and Terminal Deputy CEO, Mihreteab Teklu told ENA that the enterprise has been providing logistics services for the country’s import and export. 

He said that the enterprise has been focusing on providing logistics that efficiently handle export and import by expanding dry port terminals as well as building new dry ports.

The trend of increasing dry port terminals will especially have a huge significance in encouraging investors that engage in the import-export trade and building the economy.

(Source: ENA)



Living conditions worsen as soaring prices grip Sudan

People across Sudan face deteriorating living conditions, soaring prices, and communication breakdowns, amid the ongoing fighting. Uncertainty looms over the Darfur region due to recent attacks, which have severed communication networks.

The impact of the ongoing 46-day war in Khartoum continues to worsen, with the humanitarian and living situation deteriorating rapidly. Residents of Omdurman have raised concerns over the frequent interruption of the water supply, further compromising their daily lives. The situation is compounded as salaries have not been paid for two months, and all daily work has been suspended due to the conflict.

The war has triggered a surge in prices, making it increasingly difficult for residents to afford necessities. The price of bread has soared to SDG 1,000 for seven loaves, while essential items like oil have become scarce in neighbourhood groceries.

(Source: Dabanga)