<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1344" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-scaled.jpg" alt="" class="wp-image-513847" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-820x538.jpg 820w, 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" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><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 1 (Reuters)&nbsp;&#8211;&nbsp;At least two Ethiopian local governments have ordered the closure of dozens of businesses found hiking prices of basic commodities after the central bank floated the national currency, officials said on Thursday.



The Ethiopian birr weakened by 28% against the dollar this week after the central bank adopted a market-determined foreign exchange rate to secure a new International Monetary Fund lending programme and to put debt restructuring back on track.



&#8220;The businesses were caught making unreasonable price increases mostly on food items &#8230; The stocks were imported before the new exchange rate,&#8221; said Sewnet Ayele, a spokesperson for the Addis Ababa City Trade Bureau.



Some 71 businesses have been affected by the closure order, Sewnet said. In Oromiya region, another 19 businesses were closed and three people detained, said Meseret Assefa, head of the Trade Bureau of Oromiya.



&#8220;Those whose business are closed were the ones who increased prices on items just immediately after the (exchange rate) announcement,&#8221; Meseret said.



The main commodity whose price has gone up is cooking oil, which is selling at 25%, or 300 birrs, more, said a trader in Addis Ababa, who did not wish to be named.



Other commodities whose prices have gone up by a smaller margin include rice, said the trader.



Although the removal of foreign exchange trading restrictions helped Ethiopia to clinch the IMF deal and funding from other creditors like the World Bank, some Ethiopian analysts fear it will cause price hikes that hit the poor hardest.



The government and its development partners 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 Duncan Miriri; Editing by Giles Elgood)

Ethiopia’s economy struggles due to shortage of foreign currency

Ethiopian local authorities crack down on price hikes after currency float

<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 1 (Reuters) &#8211; The Ugandan shilling was weaker on Thursday, pressured by strong demand for dollars from commercial banks, traders said.



At 0829 GMT, commercial banks quoted the shilling at 3,733/3,743, compared with Wednesday&#8217;s closing rate of 3,724/3,734.



(Reporting by Elias Biryabarema; Editing by George Obulutsa)

107375514-1708434236970-gettyimages-1985552002-20240207_bank_of_england_010

Ugandan shilling weaker due to increased commercial bank FX demand

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1200" height="628" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY.jpg" alt="" class="wp-image-506011" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY.jpg 1200w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-820x429.jpg 820w, 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" sizes="auto, (max-width: 1200px) 100vw, 1200px" /><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>



AIROBI, Aug 1 (Reuters) &#8211; The Kenyan shilling dipped against the US dollar on Thursday, according to data from the London Stock Exchange Group (LSEG).



As of 0802 GMT, the shilling exchanged hands at 129.00/130 per dollar, sliding from Wednesday&#8217;s closing rate of 128.50/129.50.



The depreciation of the shilling is usually attributed to heightened demand for dollars from sectors such as energy and manufacturing.



(Reporting by George Obulutsa; Editing by Bate Felix)

HCVRNAVJRJMOJBUK4XOB7PEJGY

Kenya’s shilling dips against the dollar – LSEG data

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1005" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI.jpg" alt="" class="wp-image-433367" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI-1536x804.jpg 1536w" sizes="auto, (max-width: 1920px) 100vw, 1920px" /><figcaption class="wp-element-caption">Construction work is seen opposite a statue of Samora Machel, the first President of Mozambique, and the Cathedral of the Immaculate Conception, a Roman Catholic cathedral in downtown Maputo, Mozambique, September 1, 2019. REUTERS/Siphiwe Sibeko</figcaption></figure>



MAPUTO, July 31 (Reuters)&nbsp;&#8211;&nbsp;Mozambique&#8217;s central bank cut its MIMO interest rate to 14.25% from 15.00% on Wednesday, the fourth meeting in a row at which the rate has been reduced.



Bank of Mozambique Governor Rogério Zandamela told reporters that inflation was projected to remain in single digits in the medium term.



The southern African country&#8217;s inflation fell to 3.04% year on year in June from 3.07% in May, statistics agency data showed this month.



(Reporting by Manuel Mucari; Writing by Tannur Anders; Editing by Alexander Winning)

PF3JNZQUQ5M65OD7XXTYURHSSI

Mozambique central bank cuts key rate by 75 basis points

<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-1815421853-820x547.jpg" alt="" class="wp-image-510612" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">President of Kenya William Ruto during the United Nations Climate Change Conference COP28 High Level Segment meeting in Dubai, United Arab Emirates on December 1, 2023. (Photo by Jakub Porzycki/NurPhoto via Getty Images)</figcaption></figure>



NAIROBI, July 31 (Reuters) &#8211; Kenya&#8217;s Court of Appeal on Wednesday declared the government&#8217;s 2023 finance law unconstitutional, inflicting a new blow to the government of President William Ruto who withdrew this year&#8217;s finance bill after deadly protests.



The finance bills, which are presented to parliament at the start of every financial year, are the main vehicle for the government to set out its revenue-raising measures including tax hikes and the introduction of new levies.



The 2023 version was challenged in court following a round of political opposition-led street protests that turned violent, after Ruto&#8217;s government used it to double the value added tax on fuel, introduce a housing tax, and raise the top personal income tax rate, among other measures.



&#8220;A further declaration is hereby issued that the failure to comply with this constitutional dictate renders the entire Finance Act, 2023 unconstitutional,&#8221; a three-judge bench of the Court of Appeal said in a ruling.



The court&#8217;s verdict was in respect of an appeal of another one from the High Court late last year, which largely left the finance bill intact, only striking out the housing levy.



The government pushed through a new law to allow it to continue collecting the housing tax after that ruling and that law is also being challenged in court.



The government, which has been relying on the 2023 finance law to continue collecting taxes after Ruto withdrew this year&#8217;s bill, did not immediately comment on the ruling.



The government can appeal the Court of Appeal ruling at the Supreme Court, which is the highest court.



Reuters could not reach the office of the Chief Minister Musalia Mudavadi for comment. The top official at the finance ministry, Chris Kiptoo, did not respond to requests for comment.



Ruto has nominated a new finance minister after he fired all ministers but one in response to the youth-led violent protests that started last month.



Ruto says the higher taxes are necessary to enable the government to fund development programmes while paying off a heavy public debt load that currently exceeds the recommended level by the International Monetary Fund and the World Bank.



The government has submitted a new economic plan to the IMF and it expects the board of the fund to consider it at the end of August.



(Writing by Duncan Miriri; Editing by George Obulutsa and Mark Potter)

COP28 In Dubai High Level Segment

Kenyan court nullifies 2023 finance law in new blow to President Ruto

<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, July 31 (Reuters) &#8211; The Ugandan shilling was barely changed on Wednesday, with some end-month dollar inflows from charities offering some support, traders said.



At 1050 GMT, commercial banks quoted the shilling at 3,716/3,726, compared with Tuesday&#8217;s closing rate of 3,717/3,727.



(Reporting by Elias Biryabarema; Editing by George Obulutsa)

Ugandan Economy Following Rate Cut

Ugandan shilling stable, draws support from charity FX inflows

<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, July 31 (Reuters) &#8211; Kenya&#8217;s shilling strengthened on Wednesday, lifted by dollar inflows from horticultural produce exporters, traders said.



At 0751 GMT, commercial banks quoted the shilling at 128.50/129.50 to the U.S. dollar, compared with Tuesday&#8217;s closing rate of 129.50/130.50.



(Reporting by George Obulutsa; Editing by Alexander Winning)

General Economy As Kenya Faces Bleak 2018 Outlook In Vote Aftermath

Kenyan shilling firms; horticulture dollar inflows help

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1292" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg" alt="" class="wp-image-416545" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-300x189.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-143x90.jpeg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-768x484.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-1536x969.jpeg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A participant stands near a logo of World Bank at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018.
Johannes Christo | Reuters</figcaption></figure>



July 31 (Reuters)&nbsp;&#8211;&nbsp;The World Bank&#8217;s board has approved $1.5 billion in financing for its first ever budget support lending to Ethiopia, the lender said late on Tuesday as the east African nation tries to push ahead with a long-running debt restructuring.



Africa&#8217;s second-most populous country secured a four-year, $3.4 billion programme from the International Monetary Fund on Monday, hours after its central bank floated its birr currency, paving the way for its debt overhaul to move forward.



The World Bank will provide a grant of $1 billion and another $500 million in a low interest credit line, part of the first ever direct budgetary support facility provided to Ethiopia, the global lender said.



&#8220;This policy operation supports home-grown reforms that will ultimately help the country transition to a more inclusive economy that allows the private sector to contribute more strongly to growth,&#8221; the World Bank said.



The bank plans to &#8220;provide around $6 billion in new commitments over the next three fiscal years and support economic reforms through fast-disbursing budget support,&#8221; it said.



The funding is part of a $10.7 billion financing package by the IMF, World Bank and other creditors, according to Ethiopian officials.



The financial support, however, was conditional on the government implementing significant economic reforms, including the liberalisation of the foreign currency market.



Ethiopia&#8217;s birr  was down 3% against the dollar early on Wednesday, trading at 77.13. It was little changed on Tuesday after tumbling 30% on the day it was floated on Monday.



Ethiopia sought to restructure its sovereign debt in 2021, under the G20 Common Framework initiative to offer relief to developing nations, but progress was slowed by a civil war in the northern region of Tigray that ended the following year.



Ethiopia&#8217;s winding debt restructuring mirrors that of Chad and Zambia which completed their debt overhauls under the Common Framework. Ghana, another African country saddled with high debt, is nearing the finish line of its own restructuring under the initiative.



Ethiopia&#8217;s development partners have welcomed its move to a market-based foreign exchange rate, but some analysts have said the move could drive up inflation and the cost of living, especially for its poorest residents.



The country of 126.5 million people also faces a number of other challenges, including the impact of climate change and the post-war reconstruction of Tigray.



(Reporting by Urvi Dugar and Dawit Endeshaw; Writing by Duncan Miriri; Editing by Tomasz Janowski)

106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report

World Bank approves $1.5 billion in financing for Ethiopia

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1280" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-1.jpg" alt="" class="wp-image-510152" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-1.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-1-1536x1024.jpg 1536w" sizes="auto, (max-width: 1920px) 100vw, 1920px" /><figcaption class="wp-element-caption">President William Kipchirchir Ruto of Kenya speaks during a plenary session of the Summit on peace in Ukraine, in Stansstad near Lucerne, Switzerland, June 16, 2024. URS FLUEELER/Pool via REUTERS/File Photo</figcaption></figure>



NAIROBI, July 30 (Reuters)&nbsp;&#8211;&nbsp;A former head of Kenya&#8217;s main state-owned trading company was charged in court on Tuesday with abuse of office and other offences over a 2022 scheme to import edible oil that local media said cost more than $120 million.



The arraignment of Pamela Mutua is the first notable attempt by President William Ruto&#8217;s government to rein in Kenya&#8217;s rampant corruption, after more than 50 people were killed in deadly protests against tax hikes and the graft.



Mutua, who was managing director of the Kenya National Trading Corporation (KNTC), was accused of flouting procurement laws in the award of a contract to a company called Purma Holdings Limited at an anti-corruption court in the capital.



She and KNTC both deny the charges. The imports were worth 16 billion shillings ($123.55 million), domestic media outlets have reported, but there was no mention of the figure in the charges presented in court.



Mutua faces six charges and she was freed on bail until Aug. 12 when she will appear before the court again. She was charged alongside another official of the company.



The cooking oil import scheme was put in place by Ruto&#8217;s government after he got into office in late 2022, to lower the price of the commodity, but it has been criticised by the public and local media for only benefiting well-connected importers.



KNTC contracted private companies to import the oil, mainly from Asia. The government&#8217;s standards body initially said the oil was not fit for human consumption before rowing back and clearing the consignment.



Ruto, who is forming a new government after the protests forced him to fire all but one minister, has pledged to change the laws to allow for speedy prosecution of graft suspects.



($1 = 129.5000 Kenyan shillings)



(Reporting by Humphrey Malalo; Writing by George Obulutsa; Editing by Duncan Miriri and Andrew Cawthorne)

42CTWLL6LJPYDHMYIWIJ6ISWHI (1)

Kenya charges ex-state firm head over edible oil import graft

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-820x547.jpg" alt="" class="wp-image-484765" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784570-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The International Monetary Fund (IMF) headquarters during the spring meetings of the IMF and World Bank Group in Washington, DC, US, on Thursday, April 13, 2023. The IMF trimmed its global-growth projections, warning of high uncertainty and risks as financial-sector stress adds to pressures emanating from tighter monetary policy. Photographer: Samuel Corum/Bloomberg via Getty Images</figcaption></figure>



ADDIS ABABA, July 30 (Reuters) &#8211; Ethiopia&#8217;s new $3.4 billion financing deal with the International Monetary Fund paves the way for completion of its long-delayed debt restructuring in the next three to six months, a senior finance ministry official said on Tuesday.



The announcement of the four-year, $3.4 billion programme on Monday came hours after Ethiopia had undertaken one of the IMF&#8217;s key recommendations and floated its currency, the birr.



&#8220;Debt restructuring should be finalised before the next IMF programme review,&#8221; State Minister of Finance Eyob Tekalign told Reuters, adding that would typically be between three and six months.



The IMF deal is expected to be followed by further financing of up to $7.3 billion from the World Bank and other creditors, Ethiopian officials have said.



The World Bank&#8217;s board was scheduled to meet later on Tuesday to approve its portion of the extra funds, Eyob said.



News of the IMF deal lifted the $1 billion government bond at the centre of the restructuring plan to its highest level since October 2021 on Tuesday. A more than 2 cents jump left it trading at almost 78 cents on the dollar or just over a 20% discount of its original face value.



In the foreign exchange market, leading commercial banks quoted the Ethiopian birr at 74.74 against the dollar. That was unchanged from where it had settled after Monday&#8217;s float announcement prompted it to drop 30% against the dollar.



Ethiopia&#8217;s development partners have welcomed the move to a market-based foreign exchange rate, but some analysts have said it could drive up inflation and the cost of living, especially for the poorest.



Ethiopia also faces other challenges including the impact of climate change and the need to reconstruct its northern Tigray region, which was ravaged by a two-year civil war that ended in late 2022.



(Reporting by Dawit Endeshaw in Addis Ababa and Marc Jones in London; Writing by Duncan Miriri; Editing by Andrew Cawthorne)

Spring Meetings Of The International Monetary Fund And World Bank

Ethiopia’s IMF deal paves way for debt restructuring, official says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1530" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/7OZEB7WQTRJX3G7KJCGNA3OJYU-scaled.jpg" alt="" class="wp-image-512977" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/7OZEB7WQTRJX3G7KJCGNA3OJYU-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/7OZEB7WQTRJX3G7KJCGNA3OJYU-300x224.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/7OZEB7WQTRJX3G7KJCGNA3OJYU-820x613.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/7OZEB7WQTRJX3G7KJCGNA3OJYU-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/7OZEB7WQTRJX3G7KJCGNA3OJYU-768x574.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/7OZEB7WQTRJX3G7KJCGNA3OJYU-1536x1148.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: A person walks through a flooded street, following a heavy rainfall in Kassala, eastern Sudan, July 26, 2024. REUTERS/Mohammed Abdel Majid/File Photo</figcaption></figure>



CAIRO, July 30 (Reuters)&nbsp;&#8211;&nbsp;Thousands of people are stranded on the streets of the eastern Sudanese city of Kassala as a deluge of rain compounds the suffering of more than a million Sudanese who sought refuge in the region from a 15-month-old war.



The rainy season that began earlier this month has already damaged shelters, made roads unusable, and will put millions at risk of water-borne diseases across large areas of the country.



It comes as the number of displaced people within Sudan, currently more than 10 million, continues to tick up as the paramilitary Rapid Support Forces (RSF) expands its territory in the war with the national army.



The war erupted in April 2023 and has sparked warnings of famine and what the United Nations has labelled the world&#8217;s largest humanitarian crisis.



Some 765,000 people are sheltering in Gedaref state, and more than 255,000 people are in Kassala state, which saw the worst of the rains over the weekend, according to the United Nations.



The most recent wave of 165,000 people is from Sennar state, many arriving on foot in the rain in recent weeks. More than 10,000 who arrived in Kassala city were packed in the few remaining empty buildings, including a school courtyard and an empty hangar, which quickly flooded with water.



&#8220;We endured the sun beating down on us, but we can&#8217;t handle the rain,&#8221; said Nada Omer.



They now wait under store awnings or tarps in the street, with heavier than usual rains expected to continue until September. Some have rejected a plan to move them outside the city, a government official and aid workers said, where there would be few income opportunities.



&#8220;We are waiting in the street and have nowhere to settle,&#8221; said Hussein Abdo, another displaced person.



At least five people have reportedly been killed because of the rains, according to the United Nations.



Those who arrived earlier from Khartoum or El Gezira state, or in slightly drier al-Gedaref, are not much better off, sleeping on the floor in schools with few services and makeshift, shallow toilets that have also been flooded.



Little was done to prepare for the situation, said Plan International&#8217;s Mohammed Qazilbash. &#8220;We are coming up to 500 days of the war, and everybody is exhausted&#8230; It&#8217;s one tragedy over another over another,&#8221; he told Reuters.



The government and aid workers are bracing for the expected rise in water-borne diseases, including cholera, malaria, and dengue fever, with few medicines to treat them.



&#8220;We are sharing what is available, but it is above our capacity&#8221; said Dr Ali Adam, head of the state health ministry.



The rainy season impacts most of the country. Last week, more than 1,000 houses and 800 latrines were destroyed by rain at Zamzam camp in North Darfur, one of the locations in the country where experts say famine is likely.



Meanwhile, the RSF&#8217;s advance has not stopped, and on Monday it said it had reached an area about 180km (112 miles) from Gedaref, one of the states that has sheltered the most people.



Kassala, the only neighbouring army-controlled state, does not have capacity to absorb people from Gedaref, nor does the army&#8217;s de facto capital Port Sudan, on the Red Sea.



&#8220;People are scared, but there&#8217;s no options,&#8221; said a volunteer in the Gedaref emergency response room. &#8220;They are awaiting their fate, the other cities are full.&#8221;



(Reporting by Nafisa Eltahir, additional reporting by Mohammed Abdulmajid; Editing by Aidan Lewis, Alexandra Hudson)

FILE PHOTO: Heavy rainfall in Kassala, eastern Sudan

Rain and floods add to misery of Sudanese displaced by war

<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, July 30 (Reuters) &#8211; The Ugandan shilling was little-changed on Tuesday, although it was forecast to strengthen due to a slowdown in importer demand for dollars, traders said.



At 0929 GMT, commercial banks quoted the shilling at 3,716/3,726, compared with Monday&#8217;s closing rate of 3,720/3,730.



(Reporting by Elias Biryabarema; Editing by George Obulutsa)

Ugandan shilling little-changed, to firm due to slow importer demand

<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, July 30 (Reuters) &#8211; Kenya&#8217;s shilling held steady on Tuesday, with traders projecting that dollar inflows from the tourism and agriculture sectors would bolster its strength.



Commercial banks quoted the shilling at 130.00/131.00 per dollar at 0800 GMT, unchanged from Monday&#8217;s closing rate.



(Reporting by George ObulutsaEditing by Bate Felix)

ANCK25OQIFMHTJYACOM5XU5T24

Steady Kenyan shilling eyes boost from dollar inflows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="518" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/DGAHVCEXSZM6TMN4UILJZG75SQ-820x518.jpg" alt="" class="wp-image-512885" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/DGAHVCEXSZM6TMN4UILJZG75SQ-820x518.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/DGAHVCEXSZM6TMN4UILJZG75SQ-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/DGAHVCEXSZM6TMN4UILJZG75SQ-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/DGAHVCEXSZM6TMN4UILJZG75SQ-768x485.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/DGAHVCEXSZM6TMN4UILJZG75SQ-1536x970.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/DGAHVCEXSZM6TMN4UILJZG75SQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Samples of different beer flavours are displayed at the East African Breweries&#8217; microbrewery as the company released its half-year results in Ruaraka, Nairobi, Kenya, January 26, 2024. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



AIROBI, July 30 (Reuters) &#8211; Kenya&#8217;s East African Breweries said on Tuesday its pretax profit dropped to 16.77 billion Kenyan shillings ($129.0 million) in its full year to end-June, down from 18.71 billion shillings in the previous year.



EABL, which also operates in Uganda and Tanzania, said net revenues were up 13% to 124.13 billion shillings, while foreign exchange losses rose to 3.87 billion shillings from 2.10 billion shillings.



Net finance costs rose 8.18 billion shillings from 5.49 billion shillings, it said.



($1 = 130.0000 Kenyan shillings)



(Reporting by George Obulutsa; Editing by Tom Hogue)

Kenya’s East African Breweries half-year results

Kenya’s East African breweries FY pretax profit falls to 16.77 bln shillings

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-scaled.jpg" alt="" class="wp-image-493882" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., as IMF Managing Director Christine Lagarde meets with Argentine Treasury Minister Nicolas Dujovne September 4, 2018. REUTERS/Yuri Gripas</figcaption></figure>



WASHINGTON, July 29 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia has secured an agreement with the International Monetary Fund for a new financing program worth $3.4 billion, the IMF said on Monday.



Ethiopia&#8217;s central bank floated the country&#8217;s birr currency on Monday, a key step to secure IMF support, and to make progress on a long-delayed debt restructuring.



The Horn-of-Africa nation, which is struggling with high inflation and chronic foreign currency shortages, became the third economy on the continent in as many years to default on its debt at the end of last year.



It has been in talks with the IMF since last year to establish a new lending program, after the last fund-supported program agreed in 2019 was abandoned due to conflict in the northern region of Tigray that ended with a November 2022 peace deal.



Reuters previously reported Ethiopia was seeking to secure about $3.5 billion in a deal with the IMF.



The IMF said the agreement will enable an immediate disbursement of about $1 billion.



Africa&#8217;s second-most populous country requested a debt restructuring under the Group of 20&#8217;s Common Framework process in early 2021, but progress was slowed by the civil war in Tigray that lasted two years.



The government in Addis Ababa has unveiled some economic reforms, which analysts say are linked to the negotiations for a new IMF program, including the adoption of an interest rate-based monetary policy earlier this month.



(Reporting by Jasper Ward and Eric Beech; Writing by Duncan Miriri;)

IMF logo is seen outside the headquarters building in Washington

IMF, Ethiopia reach deal for $3.4 billion in financing

<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-1604532392-820x547.jpg" alt="" class="wp-image-510212" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-300x200.jpg 300w, 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, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><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, July 29 (Reuters) &#8211; The Ugandan shilling was firmer on Monday on the back of inflows of dollars from non-governmental organisations and some commodity exporters such as coffee, traders said.



At 0846 GMT commercial banks quoted the shilling at 3,710/3,720, compared with Friday&#8217;s closing rate of 3,720/3,730.



(Reporting by Elias Biryabarema; Editing by George Obulutsa)

Ugandan shilling strengthens; NGO dollar inflows help

<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, July 29 (Reuters) &#8211; The Kenyan shilling slightly strengthened early on Monday, and traders anticipate further gains backed by expected dollar inflows from tea exports.



At 0807 GMT, commercial banks quoted the shilling at 130.50/131.50, a slight increase compared to Friday&#8217;s closing rate of 130.75/131.75.



(Reporting by George Obulutsa; Editing by Bate Felix)

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

East Africa

Ethiopian local authorities crack down on price hikes after currency float

Ugandan shilling weaker due to increased commercial bank FX demand

Kenya’s shilling dips against the dollar – LSEG data

Mozambique central bank cuts key rate by 75 basis points

Kenyan court nullifies 2023 finance law in new blow to President Ruto

Ugandan shilling stable, draws support from charity FX inflows

Kenyan shilling firms; horticulture dollar inflows help

World Bank approves $1.5 billion in financing for Ethiopia

Kenya charges ex-state firm head over edible oil import graft

Ethiopia’s IMF deal paves way for debt restructuring, official says

Rain and floods add to misery of Sudanese displaced by war

Ugandan shilling little-changed, to firm due to slow importer demand

Steady Kenyan shilling eyes boost from dollar inflows

Kenya’s East African breweries FY pretax profit falls to 16.77 bln shillings

IMF, Ethiopia reach deal for $3.4 billion in financing

Ugandan shilling strengthens; NGO dollar inflows help

Kenya’s shilling firms, tea export dollars to add more lift

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East Africa

Ethiopian local authorities crack down on price hikes after currency float

Ugandan shilling weaker due to increased commercial bank FX demand

Kenya’s shilling dips against the dollar – LSEG data

Mozambique central bank cuts key rate by 75 basis points

Kenyan court nullifies 2023 finance law in new blow to President Ruto

Ugandan shilling stable, draws support from charity FX inflows

Kenyan shilling firms; horticulture dollar inflows help

World Bank approves $1.5 billion in financing for Ethiopia

Kenya charges ex-state firm head over edible oil import graft

Ethiopia’s IMF deal paves way for debt restructuring, official says

Rain and floods add to misery of Sudanese displaced by war

Ugandan shilling little-changed, to firm due to slow importer demand

Steady Kenyan shilling eyes boost from dollar inflows

Kenya’s East African breweries FY pretax profit falls to 16.77 bln shillings

IMF, Ethiopia reach deal for $3.4 billion in financing

Ugandan shilling strengthens; NGO dollar inflows help

Kenya’s shilling firms, tea export dollars to add more lift

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