<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-820x429.jpg" alt="" class="wp-image-516568" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via Reuters</figcaption></figure>



NAIROBI, Aug 8 (Reuters)&nbsp;&#8211;&nbsp;Police fired tear gas to clear pockets of anti-government demonstrators from the centre of Kenya&#8217;s capital Nairobi on Thursday, as their protest movement sought to capitalise on earlier concessions and compel President William Ruto to resign.



The &#8220;Nane Nane&#8221; march, meaning &#8220;eight eight&#8221; in reference to the date, follows weeks of similar pro-reform protests that saw Ruto scrap planned tax hikes and overhaul his cabinet.



The youth-led nationwide protests began peacefully in June before turning violent, and more than 50 people have been killed.



Shops were shut and streets left deserted after riot police set up road blocks and threw tear gas canisters to disperse handfuls of protesters across Nairobi&#8217;s financial district. Police fired tear gas at one group of a dozen protesters chanting &#8220;Ruto must go&#8221;, a Reuters journalist reported.



A lone rag-picker was seen gathering up some of the canisters, occasionally wincing as some still appeared to be hot.



At least three journalists were wounded when police fired tear gas canisters close to them, the International Press Association of East Africa, which represents hundreds of journalists in the region, said on X.



In what has been the biggest crisis of his two years in office, Ruto bowed to pressure and shelved the new taxes in June after some demonstrators briefly stormed parliament.



Ruto fired his entire cabinet apart from the foreign minister last month, a victory for activists and protesters who had demanded sweeping changes.



Ruto then named opposition members to his cabinet, but activists criticised the move as a corrupt deal and reiterated demands that he resign. They called for far-reaching reforms to tackle corruption and for regional county and national governments to improve service delivery.



Ruto has said the new cabinet reflects national unity and will address the demands of the protest movement. He has promised to investigate alleged abuses by the police during demonstrations but has broadly defended their conduct.



Ruto&#8217;s reconstituted cabinet was sworn in on Thursday.



&#8220;Where Kenya is today, while competition is healthy and good, there is a moment where the interest of a nation is greater than the interest of a political formation,&#8221; he said in a speech after the ministers were sworn in.



The protests have no official leaders and have been mostly organised online.



Ruto has stepped up criticism of them after initially praising demonstrators for being peaceful.



&#8220;We are a proudly democratic country, based on the firm foundation of the rule of law. There is no room for anarchy, chaos and violence,&#8221; Ruto said in Embu County on Wednesday.



The Kenyan police asked people to avoid crowded areas ahead of Thursday&#8217;s protests and said it was deploying adequate personnel across the country.



(Reporting by Bhargav Acharya, Humphrey Malalo, Nelson Aruya and Jeff Kahinju, Editing by Hereward Holland, William Maclean)

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Kenya police use tear gas to clear pockets of protesters in Nairobi

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CORIUWLHAJI4LNBBJBT32ZAVTI.jpg" alt="" class="wp-image-422769" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CORIUWLHAJI4LNBBJBT32ZAVTI.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CORIUWLHAJI4LNBBJBT32ZAVTI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CORIUWLHAJI4LNBBJBT32ZAVTI-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Kenya Central Bank Governor Patrick Njoroge displays Kenyan shilling bank notes during a news conference at the Central Bank in Nairobi, Kenya, June 3, 2019. REUTERS/Baz Ratner</figcaption></figure>



NAIROBI, Aug 8 (Reuters) &#8211; Kenya&#8217;s shilling was stable on Thursday, with dollar inflows from remittances and non-governmental organisations meeting importer demand.



At 0810 GMT, commercial banks quoted the shilling at 128.50/129.50 per dollar, the same level it closed at on Wednesday.



(Reporting by George Obulutsa, Editing by Bhargav Acharya)

Kenya Central Bank Governor Patrick Njoroge displays the newly designed Kenyan shilling bank notes during a news conference at the Central Bank in Nairobi

Kenyan shilling stable; remittances help meet importer demand

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-820x573.jpg" alt="" class="wp-image-516475" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-768x536.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-1536x1072.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Ethiopian Prime Minister Abiy Ahmed speaks in parliament during a session to approve the country&#8217;s 2024/25 budget, in Addis Ababa, Ethiopia, July 4, 2024. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



ADDIS ABABA, Aug 8 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia&#8217;s securities exchange is expected to start operations in October, its chief executive was quoted as saying by state-affiliated media on Thursday.



The establishment of a bourse is part of Prime Minister Abiy Ahmed&#8217;s push to open up the country &#8211; which is heavily controlled by the state &#8211; to greater private investment.



All human resource and technological requirements for the bourse will be in place by October, the bourse&#8217;s CEO Tilahun Esmael Kassahun was quoted as saying by Fana Broadcasting.



Abiy said in February that the government was discussing the&nbsp;sale of 10% of state-owned&nbsp;telecoms company Ethio Telecom via the stock exchange.



Ethio Telecom held a monopoly before a consortium led by Kenya&#8217;s Safaricom won the country&#8217;s first private telecoms licence and started commercial operations in 2022.



Ethiopia&#8217;s economy is still grappling with the legacy of being a command economy for decades, but Abiy&#8217;s push since 2018 towards more private sector involvement has been notable for being more ambitious than previous attempts at opening up.



In late July,&nbsp;Ethiopia floated its currency&nbsp;ahead of securing International Monetary Fund support, a step that needed to happen before a long-delayed debt restructuring could begin.



(Writing by George Obulutsa; Editing by Edwina Gibbs)

FILE PHOTO: Ethiopia’s Parliament approves 2024/25 fiscal year budget

Ethiopia’s securities exchange to start operations in October – media

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg" alt="" class="wp-image-422955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Uganda shillings. Uganda. (Photo by: Godong/Universal Images Group via Getty Images)</figcaption></figure>



KAMPALA, Aug 7 (Reuters) &#8211; Uganda&#8217;s central bank reduced its key lending rate by 25 basis points to 10.00% on Wednesday, saying a recovery in the shilling currency had led to an improvement in the inflation outlook.



The shilling hit a record low in late February, but has risen by more than 6% against the U.S. dollar since then, meaning there is less risk that a recent rise in inflation will prove to be persistent.



Inflation rose to 4.0% year-on-year in July, still below the central bank&#8217;s 5% medium-term target but up from 2.8% in January.



&#8220;The MPC (Monetary Policy Committee) noted that &#8230; the adverse impact of the past external shocks has abated and there has been some progress in moderating risks of inflation persistence,&#8221; Central Bank Deputy Governor Michael Atingi-Ego told a news conference.



&#8220;The inflation projection has been revised slightly downwards relative to the June 2024 forecast &#8230; largely due to a lesser depreciated shilling exchange rate.&#8221;



Atingi-Ego attributed the recent uptick in inflation to sectors such as passenger transport, accommodation, sports and recreation.



He said the Bank of Uganda expected inflation to continue rising moderately in the next four months due to seasonal factors, but to stabilise around the target of 5% by the first quarter of 2025.



At the bank&#8217;s last monetary policy meeting in June it expected inflation to only stabilise around 5% in the second half of next year.



Atingi-Ego noted there had been a pickup in Uganda&#8217;s economic growth, which averaged 6.7% in annual terms in the last two quarters of fiscal year 2023/24 compared with 5.3% growth in the previous two quarters.



The bank&#8217;s growth forecast for the 2024/25 fiscal year that started in July remains unchanged, at between 6.0% and 6.5%.



&#8220;It was appropriate to reduce slightly the degree of monetary policy restrictiveness,&#8221; Atingi-Ego said.



(Writing by Bhargav Acharya; Editing by Aexander Winning and David Holmes)

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Uganda cuts key rate as shilling recovery helps inflation outlook

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-scaled.jpg" alt="" class="wp-image-516139" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: A truck exits the mine after collecting ore from 516 metres below the surface at the Chibuluma copper mine in the Zambian copperbelt region, January 17, 2015. REUTERS/Rogan Ward/File Photo</figcaption></figure>



LUSAKA, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;Zambia&#8217;s proposed minerals regulation law could deter investment and deliver a &#8220;fatal blow&#8221; to plans to raise annual copper output to 3 million tons, two mining bodies said on Wednesday.



Zambia&#8217;s government has proposed a new Minerals Regulation Commission Bill, which seeks to &#8220;regulate and monitor the development and management of mineral resources&#8221; in Africa&#8217;s second-biggest copper producer.



But Zambia&#8217;s Chamber of Mines (ZCM), the main mining industry body, and the Association of Zambian Mineral Exploration Companies (AZMEC) said in a joint statement some parts of the proposed law &#8220;will drive up the perception of investment risk in Zambia&#8221;.



&#8220;Unfortunately, due to&#8230;the prospect of forced &#8216;free carry&#8217; acquisitions by the state of stakes in new ventures, this Bill will seriously undermine property rights,&#8221; the mining industry bodies said.



&#8220;The Bill also grants unaccountable and arbitrary discretionary decision making powers to individual regulators, which present obvious future corruption risks,&#8221; they added.



Zambia&#8217;s mines ministry was not immediately available to comment.



President Hakainde Hichilema&#8217;s government, elected in 2021, has sought to repair the country&#8217;s investment reputation and ramp up copper production, which was impacted by the seizure of Konkola Copper Mines from Vedanta by the previous administration in 2019.



The new government has handed the company back to Vedanta as it pushes to raise copper output to 3 million tons per year within the next decade to take advantage of growing demand for the metal, which is key to the global shift to cleaner sources of energy.



Copper output slumped to 698,000 tons in 2023 from 763,000 tons the previous year, data from the Zambia Chamber of Mines showed.



Mining majors such as Barrick Gold and First Quantum Minerals are investing billions of dollars into their Zambian copper assets.



The United Arab Emirates&#8217; International Resources Holding (IRH) has pledged to invest $1.1 billion to expand output at Mopani Copper Mines after buying a 51% stake in the company previously owned by Glencore.



(Reporting by Chris Mfula; Writing by Nelson Banya; Editing by Angus MacSwan)

A truck exits the mine after collecting ore underground at the Chibuluma copper mine

Zambia’s proposed mining law bad for investment, miners say

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="425" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg" alt="" class="wp-image-498541" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-300x177.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-152x90.jpg 152w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Kenya shilling coins and notes are pictured inside a cashier&#8217;s booth at a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s central bank governor said on Wednesday that the country&#8217;s shilling currency had remained stable in the face of protests sparked by a plan to hike taxes and should shrug off recent credit rating downgrades.



Governor Kamau Thugge was speaking a day after the Central Bank of Kenya cut its benchmark lending rate by 25 basis points, the first cut in more than four years.



It was the first interest rate decision since President William Ruto bowed to pressure from protesters, scrapping the tax hikes and overhauling his cabinet amid calls for him to resign.



Rating agencies Moody&#8217;s and Fitch downgraded Kenya&#8217;s sovereign ratings following the withdrawal of the tax measures, saying the move could complicate the East African country&#8217;s fiscal consolidation efforts.



&#8220;We don&#8217;t expect that there&#8217;ll be much impact (on the shilling) &#8230; because of these downgrades,&#8221; Thugge said, adding that the central bank was seeing more foreign exchange coming into the economy than going out.



The shilling is up more than 20% against the dollar this year, after a rally that started in February when the government issued a new $1.5 billion Eurobond to buy back most of a $2 billion bond whose maturity in June had unnerved investors.



The country currently has no plans for another $1 billion bond buyback before the end of the year, the governor said, despite the World Bank saying in June this was possible.



&#8220;What we are trying as much as possible is trying to talk to our development partners, both bilaterals as well as multilaterals, to get additional external financing,&#8221; Thugge said.



Kenya has not made a decision on its future engagements with the International Monetary Fund after the current lending programme agreed in 2021 expires next year, the governor added.



The Central Bank Rate was reduced to 12.75% on Tuesday after inflation fell to 4.3% year on year in July, below the midpoint of the government&#8217;s preferred range of 2.5%-7.5%.



Kenya&#8217;s economy is projected to grow 5.5% in 2025, at a similar rate to this year&#8217;s 5.4% growth, Thugge said.



(Reporting by Bhargav Acharya and George Obulutsa; Editing by Alexander Winning, William Maclean)

ANCK25OQIFMHTJYACOM5XU5T24

Kenya currency should shrug off rating downgrades, cenbank governor says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="425" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg" alt="" class="wp-image-498541" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-300x177.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-152x90.jpg 152w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Kenya shilling coins and notes are pictured inside a cashier&#8217;s booth at a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Aug 7 (Reuters) &#8211; Kenya&#8217;s shilling was stable against the U.S. dollar on Wednesday, LSEG data showed.



At 0807 GMT, the shilling traded at 129.00/130.00 per dollar, the same as Tuesday&#8217;s closing rate.



On Tuesday the central bank lowered its benchmark lending rate to 12.75% from 13.00% previously, saying there was scope to ease policy gradually as inflation had fallen below the midpoint of its target range.



(Reporting by George Obulutsa; Editing by Alexander Winning)

Kenyan shilling stable versus dollar – LSEG data

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1242" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg" alt="" class="wp-image-433145" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-1536x994.jpg 1536w" sizes="auto, (max-width: 1920px) 100vw, 1920px" /><figcaption class="wp-element-caption">A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi, Kenya November 28, 2018. REUTERS/Njeri Mwangi/</figcaption></figure>



NAIROBI, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s economy is projected to grow 5.5% in 2025, at a similar rate to this year&#8217;s 5.4% growth, central bank Governor Kamau Thugge said on Wednesday.



The forecast for next year&#8217;s growth comes a day after the Central Bank of Kenya cut its benchmark lending rate by 25 basis points, the first rate cut in about four years.



The Central Bank Rate was reduced to 12.75% after inflation fell below the midpoint of the government&#8217;s preferred range of 2.5%-7.5%.



(Reporting by George Obulutsa and Bhargav Acharya; Editing by Alexander Winning)

A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi

Kenyan economic growth seen steady at 5.5% in 2025, central bank says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-820x429.jpg" alt="" class="wp-image-506011" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A teller serves a client with Kenya shilling notes at the cashier&#8217;s booth of a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Aug 6 (Reuters) &#8211; Kenya&#8217;s shilling eased slightly on Tuesday, and traders said it was expected to hold steady during the session, with dollar demand from various sectors being matched by supply.



At 0730 GMT, commercial banks quoted the shilling at 129.50/130.50 per dollar, compared with Monday&#8217;s closing rate of 129.25/130.25.



(Reporting by George Obulutsa; Editing by Duncan Miriri)

Kenyan shilling eases slightly; expected to hold steady

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-scaled.jpg" alt="" class="wp-image-515689" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: The Mobius II first generation SUV by Kenyan car maker Mobius Motors is seen in the company&#8217;s show room in Nairobi, Kenya March 6, 2019. Picture taken March 6, 2019. REUTERS/Baz Ratner/File Photo</figcaption></figure>



NAIROBI, Aug 6 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s Mobius Motors, which started making rugged, low-priced SUVs designed for Africa&#8217;s roads a decade ago, has decided to stop operating due to financial challenges, a company statement and a shareholder source said on Tuesday.



Mobius, founded by a London-born investor who experienced the continent&#8217;s bumpy roads while working for a forestry company in Kenya, found tax hikes in the East African country meant its business model was no longer sustainable, the source at one of the company&#8217;s shareholders told Reuters.



&#8220;The business could not sustain itself. There were some challenges,&#8221; said the source, asking not to be named.



The owners considered moving production to a different country, but that option was rejected due to the logistical challenges of moving the existing assembly line from Nairobi, the shareholder added.



Mobius initially produced a boxy, no-frills SUV designed for the modest budgets of African consumers, going for 1.3 million Kenyan shillings, equivalent to about $13,000 at the time and roughly half the price of an imported second-hand SUV.



It later launched updated editions with extra features.



Mobius, whose investors include Britain&#8217;s Playfair Capital, was part of a push by investors and governments on the continent to create jobs by launching home-grown vehicle manufacturers. They included Uganda&#8217;s Kiira Motors, Ghana&#8217;s Kantanka and Nigeria-based Innoson Motors.



At the same time, global automakers such as Japan&#8217;s Toyota Motor Corp and Germany&#8217;s Volkswagen AG also boosted their investments in markets including Kenya and Rwanda to tap into growing economies and rising consumer demand.



They all, however, faced the same challenges: stiff competition from second-hand imports from abroad.



Creditors will meet on Aug. 15 to vote on the voluntary liquidation, the company &#8211; which was not listed &#8211; said in the statement that appeared in newspapers.



(Reporting by Duncan Miriri; Editing by Helen Popper)

FILE PHOTO: The Mobius II first generation SUV by Kenyan car maker Mobius Motors is seen in the company’s show room in Nairobi

Kenya’s Mobius, maker of rugged cars for African roads, calls it a day

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="511" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-820x511.jpg" alt="" class="wp-image-515376" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-820x511.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-300x187.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-768x479.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-1536x958.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Displaced Congolese people are reflected on a puddle, at the Muchacha primary school, where they live after recently fleeing from their Shasha village following clashes between M23 rebels and the Armed Forces of the Democratic Republic of the Congo (FARDC) in Sake, the Democratic Republic of Congo February 6, 2024. REUTERS/Arlette Bashizi/File Photo</figcaption></figure>



KAMPALA, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;Nearly 100 police officers from the Democratic Republic of Congo fled to neighbouring Uganda over the weekend as fighting between M23 rebels and the military in Congo&#8217;s east intensified, a Ugandan military spokesperson said on Monday.



The officers arrived via the Ishasha border crossing in Kanungu district in southwestern Uganda, Major Kiconco Tabaro, a regional spokesperson for the Uganda People&#8217;s Defence Forces, said.



The 98 officers arrived with 43 guns and ammunition and were subsequently disarmed.



&#8220;They were fleeing fighting by M23 and other militias and the Congo military, there&#8217;s a lot of violence there and then there&#8217;s also hunger,&#8221; Tabaro said.



Over the past four days at least 2,500 more Congolese refugees have arrived in Uganda fleeing the raging violence across the border, he said.



&#8220;The main push factor is the intensifying violence and insecurity,&#8221; Tabaro said, adding that pregnant women, breastfeeding mothers and young children were among the refugees.



The M23 has been waging a fresh insurgency in Congo&#8217;s militia-plagued east since 2022. A United Nations report seen by Reuters last month said the Ugandan army has provided support to the Tutsi-led rebel group, a charge Uganda denies.



The U.N. has long accused Uganda&#8217;s neighbour Rwanda of backing the M23, which has repeatedly seized large parts of mineral-rich eastern Congo, allegations Rwanda denied.



Efforts by Congo&#8217;s military to push back the rebels have intensified over the past year with the use of drones and aircraft, although the rebels have still expanded territory under their control.



In June, the M23 seized the town of Kanyabayonga, whose location on high ground makes it a coveted gateway to other parts of eastern Congo&#8217;s North Kivu province.



Fighting in North Kivu has driven more than 1.7 million people from their homes, taking the total number of Congolese displaced by multiple conflicts to a record 7.2 million, according to U.N. estimates.



(Reporting by Elias Biryabarema; Editing by George Obulutsa and Ros Russell)

Thousands more flee rebel advance in eastern Congo

Congolese police officers flee to Uganda as fighting intensifies

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-820x547.jpg" alt="" class="wp-image-506008" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ugandan shilling and US dollars in the draw at a foreign exchange currency bureau in Kampala, Uganda, on Wednesday, Aug. 16, 2023. Uganda&#8217;s central bank said it stands ready to act if the World Bank&#8217;s decision to halt new funding over the country&#8217;s passage of anti-LGBTQ legislation impacts the currency further. Photographer: Luke Dray/Bloomberg via Getty Images</figcaption></figure>



KAMPALA, Aug 5 (Reuters) &#8211; The Ugandan shilling was weaker on Monday due to increased demand for dollars from commercial banks, traders said.



At 0916 GMT, commercial banks quoted the shilling at 3,725/3,735, compared with Friday&#8217;s closing rate of 3,718/3,728.



(Reporting by Elias Biryabarema; Editing by George Obulutsa)

Ugandan Economy Following Rate Cut

Ugandan shilling weakens due to increased commercial bank FX demand

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-820x429.jpg" alt="" class="wp-image-515283" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Employees pack bottles of Kenya Cane spirit from a conveyor belt at the East African Breweries Limited factory in Ruaraka factory in Nairobi, Kenya April 6, 2018. REUTERS/Thomas Mukoya </figcaption></figure>



NAIROBI, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s private sector activity dropped in July, undermined by the effects of public protests against the government which hurt confidence in the economy and disrupted some business activity, a survey showed on Monday.



The Stanbic Bank Kenya Purchasing Managers&#8217; Index (PMI) fell to&nbsp;43.1 from 47.2 in June. Readings below 50.0 signal a contraction in activity.



&#8220;Protests in Kenya caused disruption to the private sector in July, leading to a marked deterioration in business conditions,&#8221; Stanbic Bank Kenya said in comments accompanying the survey.



&#8220;Political instability led to a reluctance among customers to commit to new orders, while the protests themselves in some cases blocked access to businesses and prevented them from opening.&#8221;



More than 50 people have been killed since mid-June, according to the government-funded Kenya National Commission on Human Rights (KNCHR), after protesters began taking to the streets to oppose tax increases in a now-shelved proposed law by President William Ruto&#8217;s government.



The youth-led marches continued after Ruto withdrew the tax legislation, with protesters calling for the president to resign and an end to what they called widespread government corruption and inefficiencies.



The intensity of the protests has since reduced.



&#8220;Private sector business activity deteriorated, reflecting ongoing demonstrations and unrest in parts of Kenya for some weeks now, discouraging output and new orders,&#8221; Christopher Legilisho, an economist at Stanbic Bank, said.



(Reporting by George Obulutsa; Editing by Susan Fenton)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ

Kenya private sector activity falls in July amid public unrest, PMI shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="538" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-820x538.jpg" alt="" class="wp-image-513847" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-820x538.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-768x504.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-1536x1008.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man counts Ethiopia&#8217;s birr notes in Merkato, one of Africa&#8217;s biggest open air market, in Addis Ababa, Ethiopia, April 25, 2024. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



ADDIS ABABA, Aug 2 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia will enjoy $4.9 billion in relief from debt repayments when it completes its current restructuring exercise, State Finance Minister Eyob Tekalign said on Friday.



The East African country is putting its long-delayed debt overhaul back on track after securing a new International Monetary Fund financing programme.



&#8220;We will sign and finalise with each individual (creditor) country over the course of the next few months,&#8221; Eyob told Reuters, referring to the savings.



Total external debt stood at $28.38 billion in March this year, data from the finance ministry showed.



Eyob was expounding on remarks made by Prime Minister Abiy Ahmed late on Thursday to explain recent economic reforms to the public via a televised event.



Abiy said the new exercise would include savings of $200 million from the restructuring of its $1 billion Eurobond.



Abiy defended this week&#8217;s switch to a market-determined foreign exchange rate, saying it aimed to close the gap between the official and black market rates and did not amount to a devaluation of the currency.



The central bank allowed the birr to float freely on Monday, fulfilling a key condition for securing financial support from the International Monetary Fund and other creditors, and for putting the nation&#8217;s long-delayed debt restructuring back on track.



The birr has since then lost 31.5% against the dollar, to trade at 83.94 per greenback, the country&#8217;s biggest lender, Commercial Bank of Ethiopia, said on Friday, and some economic analysts and commentators have voiced concern that inflation could surge.



&#8220;Saying Ethiopia has devalued its currency is wrong,&#8221; Abiy said late on Thursday in a televised briefing&nbsp;on the&nbsp;new policy.



&#8220;There were two markets. One is 100 and the other is 50. So when the gap between the two became wide, it brought many dangers. So what we said, (the two) should be unified,&#8221; he said



While lifting foreign exchange trading restrictions helped Ethiopia clinch the IMF deal and funding from other creditors including the World Bank, concern about the policy&#8217;s inflationary impact on low-income households has led at least two local governments to crack down on shops raising prices.



The government and its creditors say the liberalisation will help the private sector make a bigger contribution to the economy and boost long-term growth.



(Reporting by Dawit Endeshaw; Writing by George Obulutsa and Duncan Miriri; Editing by Helen Popper and Giles Elgood)

Ethiopia’s economy struggles due to shortage of foreign currency

Ethiopia to save $4.9 bln from debt restructuring, state minister says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-scaled.jpg" alt="" class="wp-image-510212" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A worker at a foreign exchange currency bureau counts 1000 Ugandan shilling banknotes in Kampala, Uganda, on Wednesday, Aug. 16, 2023. Uganda&#8217;s central bank said it stands ready to act if the World Bank&#8217;s decision to halt new funding over the country&#8217;s passage of anti-LGBTQ legislation impacts the currency further. Photographer: Luke Dray/Bloomberg via Getty Images</figcaption></figure>



KAMPALA, Aug 2 (Reuters) &#8211; The Ugandan shilling was firmer on Friday, supported by a slowdown in demand for dollars from commercial banks and merchandise importers, traders said.



At 0940 GMT commercial banks quoted the shilling at 3,720/3,730, stronger than Thursday&#8217;s closing rate of 3,730/3,740.



(Reporting by Elias Biryabarema; Editing by George Obulutsa)

Ugandan shilling strengthens, low dollar demand helps

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-scaled.jpg" alt="" class="wp-image-409717" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Kenyan shilling banknotes and coins sit arranged at a market stall in Mombasa, Kenya, on Thursday, Nov. 23, 2017. The countrys Treasury has already cut this years growth target to 5 percent from 5.9 percent as the protracted election furor damped investment and a drought curbed farm output. Photographer: Luis Tato/Bloomberg via Getty Images</figcaption></figure>



NAIROBI, Aug 2 (Reuters) &#8211; Kenya&#8217;s shilling slipped on Friday due to dollar demand from the manufacturing sector, traders said, adding that a credit rating review by S&amp;P Global later this month could be a big driver in the weeks ahead.



At 0805 GMT, commercial banks quoted the shilling at 129.50/130.50 to the U.S. dollar, compared with Thursday&#8217;s closing rate of 129.00/130.00.



S&amp;P Global is scheduled to review Kenya&#8217;s sovereign rating on Aug. 23.



It currently has the East African country&#8217;s long-term foreign and local currency ratings in &#8220;junk&#8221; status, at &#8216;B&#8217; with a negative outlook.



Last month Moody&#8217;s downgraded Kenya&#8217;s local- and foreign-currency long-term ratings deeper into junk, to &#8216;Caa1&#8217; from &#8216;B3&#8217;, citing a diminished capacity to implement fiscal consolidation after President William Ruto withdrew planned tax hikes in response to mass protests.



(Reporting by George Obulutsa; Editing by Alexander Winning)

General Economy As Kenya Faces Bleak 2018 Outlook In Vote Aftermath

Kenyan shilling slips on manufacturing FX demand; S&P review in focus

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="563" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1824644004-820x563.jpg" alt="" class="wp-image-514141" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1824644004-820x563.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1824644004-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1824644004-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1824644004-768x527.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1824644004-1536x1054.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1824644004-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">DUBAI, UNITED ARAB EMIRATES &#8211; DECEMBER 01: Abiy Ahmed Ali, Prime Minister of Ethiopia, speaks during day one of the high-level segment of the UNFCCC COP28 Climate Conference at Expo City Dubai on December 1, 2023 in Dubai, United Arab Emirates. The COP28, which is running from November 30 through December 12, brings together stakeholders, including international heads of states and other leaders, scientists, environmentalists, indigenous peoples representatives, activists and others to discuss and agree on the implementation of global measures towards mitigating the effects of climate change.
 (Photo by Sean Gallup/Getty Images)</figcaption></figure>



ADDIS ABABA, Aug 2 (Reuters)&nbsp;&#8211;&nbsp;Ethiopian Prime Minister Abiy Ahmed has defended this week&#8217;s switch to a market-determined foreign exchange rate, saying it aimed to close the gap between the official and black market rates and did not amount to a devaluation of the birr currency.



The central bank allowed the birr to float freely on Monday, fulfilling a key condition to secure financial support from the International Monetary Fund and other creditors, and to put the nation&#8217;s long-delayed debt restructuring back on track.



The birr has since then lost 31.5% against the dollar, to trade at 83.94 per greenback, the country&#8217;s biggest lender, Commercial Bank of Ethiopia, said on Friday, and some economic analysts and commentators have voiced concern that inflation could surge.



&#8220;Saying Ethiopia has devalued its currency is wrong,&#8221; Abiy said late on Thursday in a televised briefing to explain the new policy.



&#8220;There were two markets. One is 100 and the other is 50. So when the gap between the two became wide, it brought many dangers. So what we said (the two) should be unified,&#8221; he said.



While lifting foreign exchange trading restrictions helped Ethiopia clinch the IMF deal and funding from other creditors including the World Bank, concern about the policy&#8217;s inflationary impact on low-income households has led at least two local governments to crack down on shops raising prices.



The government and its creditors say the liberalisation will help the private sector make a bigger contribution to the economy and boost long-term growth.



Hours after floating the currency, Ethiopia got a new financing deal of $3.4 billion from the IMF, a move a senior finance ministry official said would make way for the completion of its debt restructuring in the next three to six months.



Soon after, the World Bank approved $1.5 billion in financing for its first ever budget support lending to Ethiopia. Abiy said the new financing would save $200 million from the restructuring of its $1 billion Eurobond.



(Reporting by Dawit Endeshaw; Writing by George Obulutsa; Editing by Duncan Miriri and Helen Popper)

East Africa

Kenya police use tear gas to clear pockets of protesters in Nairobi

Kenyan shilling stable; remittances help meet importer demand

Ethiopia’s securities exchange to start operations in October – media

Uganda cuts key rate as shilling recovery helps inflation outlook

Zambia’s proposed mining law bad for investment, miners say

Kenya currency should shrug off rating downgrades, cenbank governor says

Kenyan shilling stable versus dollar – LSEG data

Kenyan economic growth seen steady at 5.5% in 2025, central bank says

Kenyan shilling eases slightly; expected to hold steady

Kenya’s Mobius, maker of rugged cars for African roads, calls it a day

Congolese police officers flee to Uganda as fighting intensifies

Ugandan shilling weakens due to increased commercial bank FX demand

Kenya private sector activity falls in July amid public unrest, PMI shows

Ethiopia to save $4.9 bln from debt restructuring, state minister says

Ugandan shilling strengthens, low dollar demand helps

Kenyan shilling slips on manufacturing FX demand; S&P review in focus

Ethiopia’s PM defends currency float amid inflation concerns

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East Africa

Kenya police use tear gas to clear pockets of protesters in Nairobi

Kenyan shilling stable; remittances help meet importer demand

Ethiopia’s securities exchange to start operations in October – media

Uganda cuts key rate as shilling recovery helps inflation outlook

Zambia’s proposed mining law bad for investment, miners say

Kenya currency should shrug off rating downgrades, cenbank governor says

Kenyan shilling stable versus dollar – LSEG data

Kenyan economic growth seen steady at 5.5% in 2025, central bank says

Kenyan shilling eases slightly; expected to hold steady

Kenya’s Mobius, maker of rugged cars for African roads, calls it a day

Congolese police officers flee to Uganda as fighting intensifies

Ugandan shilling weakens due to increased commercial bank FX demand

Kenya private sector activity falls in July amid public unrest, PMI shows

Ethiopia to save $4.9 bln from debt restructuring, state minister says

Ugandan shilling strengthens, low dollar demand helps

Kenyan shilling slips on manufacturing FX demand; S&P review in focus

Ethiopia’s PM defends currency float amid inflation concerns

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