Kenya 

Forex reserves projected to grow by Sh288bn on IMF, remittance inflows 

Kenya’s official foreign exchange reserves are expected to grow by $2.23 billion (Sh288 billion) by the end of this year compared to December 2023, supported by the recent disbursements from the International Monetary Fund (IMF) and higher remittance and export inflows. Official forex reserves stood at $8.97 billion (Sh1.16 trillion) at the end of last week, according to the latest Central Bank of Kenya (CBK) figures. This represented a growth of $2.36 billion (Sh305.2 billion) since the beginning of the year.

According to the CBK’s annual growth projection last week, the reserves are expected to settle at $8.84 billion (Sh1.14 trillion) by the end of the year. This reflects expected external debt repayments of about $150 million (Sh19.4 billion) for December. The IMF disbursed a loan tranche of $606.1 million (Sh78.4 billion) to Kenya in the first week of November under its medium-term funding programme, which runs until next April.

Diaspora inflows have also increased significantly this year due to falling inflation in the West, which has increased disposable income for Kenyans living abroad. Cumulative remittances for the 10 months to October 2024 were up 18% to $4.08 billion (Sh527.6 billion) compared to the corresponding period last year. As a result, the current account deficit stood at 3.8% of gross domestic product (GDP) in October, down from 4% in January.

(Business Daily) 

Tanzania

Tanzania secures $1.2bn from AfDB for SGR project

The African Development Bank (AfDB) has signed a coordination agreement with Deutsche Bank and Société Générale to raise up to $1.2bn for the Standard Gauge Railway (SGR) project in Tanzania. This agreement was signed at the 2024 African Investment Forum in Rabat, Morocco. AfDB serves as the initial mandated lead global coordinator for the project’s financing.

The financing plan includes two tranches. AfDB will manage the second tranche, working with development finance institutions, Export Credit Agencies, bilateral lenders, and multilateral development banks. Tanzania’s Ministry of Finance is actively pursuing international debt capital markets to fund the construction of the 411km railway line from Tabora to Kigoma.

The SGR project, valued at $2.3bn, aims to link the Indian Ocean port of Dar es Salaam to Lake Victoria’s port of Mwanza, with extensions to Rwanda, Burundi, the Democratic Republic of Congo, and Uganda. The link is expected to boost economic growth by creating new trade routes for mining and agricultural commodities across Eastern and Central Africa.

(yaho0!finance)

Uganda

How digital stamps have enhanced tax collection, market transparency 

As Uganda continues to pursue its ambitious economic goals, innovative approaches are being adopted to enhance tax compliance and ensure the efficiency of the tax system. One such initiative is the implementation of Digital Tax Stamps (DTS), which aims to tackle the issue of tax evasion while improving transparency in the marketplace. 

The DTS system enables the tracking of goods from production to distribution, ensuring that all products comply with tax regulations. These stamps are applied to various products, including beverages, tobacco, cement, and other consumer goods, allowing the government to monitor and verify the authenticity of goods circulating in the market.

In 2019, the government contracted SICPA, a global leader in secure tax stamp technologies and supply chain monitoring solutions, to implement this digital transformation. With its expertise, SICPA Uganda has aided the government in implementing a system that not only strengthens tax collection but also supports product traceability. By incorporating secure digital tax stamps, the government aims to create a level playing field for businesses, ensuring that all businesses, large or small, comply with tax regulations. This initiative is expected to significantly reduce illicit trade and counterfeit products, promoting fair competition and protecting consumers.

(Daily Monitor)

Rwanda 

AfDB approves $100 million loan for KUTI

The African Development Bank (AfDB) Group has announced that its Board of Directors approved a loan of $100 million (approx. Rwf140 billion) to Rwanda to implement the Kigali Urban Transport Improvement (KUTI) Project, which is meant to ease transport in and around the country’s capital. The project’s implementation period is expected to be five years from loan approval, and its overall cost is estimated at $279 million (approx. Rwf386 billion).

The project’s objective is to enhance the efficiency, inclusivity, and safety of road transport mobility. The bank pointed out that congestion and long queues are prevalent at most major junctions, increasing travel times, disruption, and traffic conflicts. It observed that the immediate project area is the city of Kigali, which has a population of 1.7 million and is expected to grow to 3.8 million by 2050.

The lack of an inclusive urban mobility system, such as dedicated bus lanes, a non-motorised transport system and limited integration between different public transport networks, exacerbates transport problems and has led citizens to opt for motor-cycle taxis, the number of which is increasing in urban areas, putting users at risk of serious accidents, as per the bank.

(The New Times)

Ethiopia

Central Bank airs liquidity fears, fraud concerns in stability report

The Central Bank’s latest Financial Stability Report forecasts increased liquidity risks for commercial banks in the short and medium terms. According to the National Bank of Ethiopia (NBE), meeting weekly liquidity and real-time gross settlement (RTGS) payment requirements, asset and liability mismatches, and funding gaps for short-term maturity brackets is a hardship.

The report indicated that the root cause of the problems is the concentration of deposits and credit in the hands of a few clients. According to the NBE, at the end of June 2024, less than 0.4% of depositors accounted for 58.5% of all bank deposits. However, most of these deposits belonged to state-owned enterprises (SOEs), and cash accounted for only a small share of banks’ liquid assets.

“As a result, some banks were facing real-time transaction-level liquidity shortages. A high concentration of deposits and the difference in maturities between deposits and loans may create a liquidity risk in the banking sector despite the existing above-the-minimum liquidity ratio,” reads the report.

(The Reporter)

Somalia

IMF approves disbursement of USD10 million to Somalia to boost economic reforms

This latest funding by the International Monetary Fund (IMF) brings Somalia’s total disbursement under the current programme, which was originally approved in December 2023, to USD60 million. IMF Deputy Managing Director Bo Li said the Somali authorities’ reform momentum has been sustained, and performance under the IMF-supported ECF (extended credit facility) arrangement has been strong despite difficult domestic and regional conditions. “Key fiscal targets were met, with steady progress on reforms to raise domestic revenues, enhance public financial management, and build debt management capacity,” Li said.

According to Li, continuing fiscal reforms, including strengthening domestic revenue mobilisation, is imperative, especially given the prospects of declining external grants and the large social and development spending needs.

The ECF programme supports the authorities’ reform strategy after achieving the completion point under the Heavily Indebted Poor Countries (HIPC) Initiative to further strengthen key economic institutions and promote macroeconomic stability and growth. The IMF said Somalia’s real gross domestic product (GDP) growth outlook has improved, though challenges and risks remain significant. It added that positive trends in agriculture, exports, and remittances in 2024 are expected to continue in 2025. 

(Capital Business)

South Sudan 

Truck drivers resume operations after meeting SSRA boss

The Commissioner-General of South Sudan Revenue Authority said long distance truck drivers have agreed to end the nearly two-weeks strike over alleged extortion along the Juba-Nimule highway.

More than 3,000 trucks carrying commercial goods refused to enter South Sudan from Uganda as drivers protested levies and illegal checkpoints along major roads.

In a bid to address the truckers’ concerns, SSRA announced a ban on all illegal trade barriers including checkpoints and unlawful extortion by security forces along the highway.

However, the regional drivers told Eye Radio that they still operate under threats of insecurities along the highway and call for a long-term solution.

On Monday, SSRA Commissioner-General Simon Deng Akuei held a meeting with the Long Distance Truck Drivers Union in Elegu-Nimule border point to address their concerns.

Akuei said the truck drivers resumed work on the same day after the government canceled non-tariffs barriers along the way.

(Eye Radio)