<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg" alt="" class="wp-image-493882" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-300x200.jpg 300w, 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, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><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>



LUSAKA, June 4 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund (IMF) said on Tuesday that Zambia&#8217;s government had asked for its $1.3 billion loan programme to be increased to $1.7 billion to help it respond to a severe drought.



The IMF also said in a statement that it had reached a staff-level agreement on the third review of the southern African country&#8217;s Extended Credit Facility.



Once the latest review is approved by IMF&#8217;s executive board at a meeting expected by the end of June, Zambia will have access to roughly $573 million, the fourth disbursement under the facility.



Zambia is one of a handful of African countries grappling with a drought induced by the El Niño weather phenomenon that has plunged parts of the region into hunger.



The copper-rich country is close to emerging from a debt-restructuring process beset by delays after more than three and a half years.



Zambia&#8217;s finance ministry said last week that more than 90% of holders of its $3 billion in outstanding international bonds had accepted a restructuring proposal.



Finance Minister Situmbeko Musokotwane said the staff-level agreement announced on Tuesday was &#8220;testament to Zambia&#8217;s determination to rebuild macroeconomic and debt sustainability&#8221; and its efforts to finalise restructuring talks within the parameters of its IMF programme.



(Reporting by Chris Mfula in Lusaka and Karin Strohecker in London; Writing by Bhargav Acharya; Editing by Alexander Winning and Ros Russell)

IMF logo is seen outside the headquarters building in Washington

Zambia asks for IMF loan to be increased to $1.7 billion

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="543" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-820x543.jpg" alt="" class="wp-image-493557" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-820x543.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-768x509.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-1536x1018.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South Korean President Yoon Suk-yeol speaks during an inaugural dinner at a hotel in Seoul, South Korea, May 10, 2022. Jeon Heon-Kyun/Pool via REUTERS</figcaption></figure>



DAR ES SALAAM, June 3 (Reuters)&nbsp;&#8211;&nbsp;Tanzania and Ethiopia said they had signed accords with&nbsp;South Korea for loans of billions of dollars, part of broader deals that will give the Asian nation access to Africa&#8217;s crucial mineral resources and vast export market.



South Korea is hosting at least 30 heads of state, including Tanzania and Ethiopia, at a South Korea-Africa summit this week.



Tanzania said it will borrow $2.5 billion over the next five years from South Korea through concessional loans.



The East African country also signed two accords on Korean use of its ocean resources and minerals used in clean energy technologies such as nickel, lithium and graphite, presidential spokesperson Zuhura Yunus said on Sunday.



Ethiopia, a fast-growing economy with 126 million people, signed a $1 billion financing deal over four years for infrastructure, science and technology, health and urban development, the state-affiliated Fana media outlet said.



Tanzanian President Samia Suluhu Hassan is also seeking cooperation in sectors including sustainable use of ocean resources, development of natural gas deposits and creative industries, and for Tanzania to supply labour to South Korea, according to Yunus.



Since Friday, South Korean President Yoon Suk Yeol has held meetings with the leaders of Sierra Leone, Tanzania and Ethiopia and was due to meet separately with heads of other states including Zimbabwe, Togo, Rwanda and Mozambique on Monday.



(Reporting by Nuzulack Dausen; editing by Hereward Holland, Mrigank Dhaniwala and Mark Heinrich)

FILE PHOTO: U.S. Vice President Kamala Harris meets with Tanzania’s President Samia Suluhu Hassan inside the Eisenhower Executive Office Building at the White House in Washington

South Korea agrees to lend billions to Tanzania, Ethiopia

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="534" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XBUX3KKTWRL4XAUGPJYRWVH7WQ-820x534.jpg" alt="" class="wp-image-491984" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XBUX3KKTWRL4XAUGPJYRWVH7WQ-820x534.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XBUX3KKTWRL4XAUGPJYRWVH7WQ-300x195.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XBUX3KKTWRL4XAUGPJYRWVH7WQ-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XBUX3KKTWRL4XAUGPJYRWVH7WQ-768x500.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XBUX3KKTWRL4XAUGPJYRWVH7WQ-1536x1001.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XBUX3KKTWRL4XAUGPJYRWVH7WQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



KIGALI, May 29 (Reuters)&nbsp;&#8211;&nbsp;Rwanda&#8217;s central bank cut its key interest rate&nbsp;RWREPO=ECI&nbsp;by 50 basis points to 7.0% on Wednesday, saying inflation was projected to remain within its target band at around 5% this year and next.



The rate cut followed two monetary policy meetings at which the Central Bank Rate was left unchanged.



In February, Governor John Rwangombwa said the bank could reduce the rate at upcoming meetings if inflation dynamics remained positive.



Annual inflation&nbsp;RWCPIY=ECI&nbsp;peaked at 21.7% in November 2022. It fell to 4.5% in April, well within policymakers&#8217; 2%-8% target range.



Rwangombwa told a news conference on Wednesday that risks to the inflation outlook included global geopolitical tensions that could affect international commodity prices and adverse weather conditions in Africa.



He said the economy continued to expand in the first quarter, helped by a strong performance by the agriculture, services and industry sectors.



This month Finance Minister Uzziel Ndagijimana reiterated the government&#8217;s economic growth forecasts of 6.6% this year, 6.5% in 2025, 6.8% a year later and 7.2% in 2027. The economy expanded 8.2% in 2023.



(Reporting by Philbert Girinema; Writing by George Obulutsa; Editing by Alexander Winning and Emelia Sithole-Matarise)

XBUX3KKTWRL4XAUGPJYRWVH7WQ

Rwanda central bank cuts key rate as inflation seen within target

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AXIZJVFVSJPH5JV3TFFSZSORV4-820x547.jpg" alt="" class="wp-image-429146" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AXIZJVFVSJPH5JV3TFFSZSORV4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AXIZJVFVSJPH5JV3TFFSZSORV4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AXIZJVFVSJPH5JV3TFFSZSORV4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AXIZJVFVSJPH5JV3TFFSZSORV4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AXIZJVFVSJPH5JV3TFFSZSORV4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AXIZJVFVSJPH5JV3TFFSZSORV4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Zambia&#8217;s Finance Minister Situmbeko Musokotwane attends the Annual Meetings of the International Monetary Fund and World Bank in Washington, U.S., October 15, 2022. REUTERS/James Lawler Duggan/File Photo</figcaption></figure>



LONDON, May 28 (Reuters)&nbsp;&#8211;&nbsp;Zambia&#8217;s ministry of finance said on Tuesday that more than 90% of holders of its $3 billion in outstanding international bonds had accepted its restructuring proposal so far, paving the way for the country to emerge from a lengthy default.



Voting on the proposal only finishes officially on May 30.



However, on the basis of the instructions the government had received by May 24, &#8220;Zambia expects that the meetings will be quorate and that each of the extraordinary resolutions in respect of each series of existing notes will be approved at the relevant meeting,&#8221; the ministry said in a regulatory statement.



Zambia defaulted more than three years ago and is reworking its debt under the Common Framework, a G20 platform to bring together big creditors like China and the traditional group of developed creditor nations, known as the Paris Club, to ensure swift and smooth debt overhauls for low-income countries.



Zambia was widely seen as a test case. But the process has been beset by long delays, which have hamstrung much-needed investments, curtailed economic growth and weighed on local financial markets. A devastating drought had worsened the situation.



Under the proposed plan, bondholders will swap three existing instruments due to mature in 2022, 2024 and 2027, into two amortising bonds, one of which would have higher repayments if the country&#8217;s economic outlook improved.



Zambia secured a $1.3-billion loan from the International Monetary Fund in 2022, which required it to restructure its debt with other creditors.



Zambia&#8217;s international bonds traded unchanged, with the 2024 bond indicated at 63.4 cents in the dollar and the 2027 maturity at 75.9 cents, according to Tradeweb data.&nbsp;XS1056386714=TE,&nbsp;XS1267081575=TE



(Reporting by Karin Strohecker, editing by Amanda Cooper)

FILE PHOTO: Zambia’s Finance Minister Situmbeko Musokotwane attends the Annual Meetings of the International Monetary Fund and World Bank in Washington

Zambia set to emerge from default after bondholders back $3 bln debt rework

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI-820x429.jpg" alt="" class="wp-image-433367" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI-300x157.jpg 300w, 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, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><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>



May 27 (Reuters)&nbsp;&#8211;&nbsp;Mozambique&#8217;s central bank cut its MIMO interest&nbsp;rate by 75 basis points to 15.00%, the third meeting in a row at which the rate has been reduced, the bank said on Monday.



The bank&#8217;s Monetary Policy Committee said in a statement that the decision was based on favourable forecasts while trying to keep inflation in single digits in the medium term.



The southern African country&#8217;s inflation edged up to 3.26% year on year in April&nbsp;MZCPIY=ECI&nbsp;from 3.03% in March, statistics agency data showed this month.



(Reporting by Tannur Anders; Editing by Alexander Winning)

PF3JNZQUQ5M65OD7XXTYURHSSI

Mozambique central bank cuts key rate for third meeting in a row

maxresdefault

Africa CEO Forum 2024: Invest Rwanda

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="538" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2154333200-820x538.jpg" alt="" class="wp-image-489997" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2154333200-820x538.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2154333200-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2154333200-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2154333200-768x503.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2154333200-1536x1007.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2154333200-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">WASHINGTON, DC &#8211; MAY 23: U.S. President Joe Biden and Kenyan President William Ruto hold a joint press conference in the East Room at the White House on May 23, 2024 in Washington, DC. Biden welcomed Ruto for a state visit including a bilateral meeting, a joint press conference and a state dinner. Ruto’s visit is the first official state visit to the White House by a leader from an African country since 2008. (Photo by Anna Moneymaker/Getty Images)</figcaption></figure>



WASHINGTON, May 23 (Reuters)&nbsp;&#8211;&nbsp;U.S. President Joe Biden and Kenyan President William Ruto on Thursday called for increased support for developing countries like Kenya, including through debt relief by major bilateral creditors like China.



Biden and Ruto, on a three-day state visit to the United States, issued a &#8220;Nairobi-Washington Vision&#8221; that includes detailed steps for addressing the staggering debt burden faced by many low-income countries, about half of&nbsp;which&nbsp;are in or close to debt distress.



Many countries are now paying the majority of their revenues to repay debts, limiting their ability to invest in development projects or climate.



&#8220;Countries willing to commit to ambitious reforms and high-quality plans for investments in sustainable development and in addressing global challenges like climate change, pandemics and health threats, and fragility and conflict should be buoyed not abandoned by the international community,&#8221; the statement for the Nairobi-Washington Vision said.



&#8220;High-ambition countries&#8221; should receive financial support from international financial institutions, it said, adding that creditor countries should provide reprieves.



China, the United States and other Group of 20 creditor countries set up the Common Framework for Debt Restructuring to help countries facing huge debt burdens during the pandemic, but the initiative has faced long delays.



A senior U.S. Treasury official said China &#8211; the largest official creditor &#8211; had taken some steps to aid debt-ridden countries, but more work was needed.



The U.S. and Kenya want a big push by the international financial institutions, China and other official bilateral creditors, and the private sector to ensure that debtor countries do not spend all their money servicing old debts.



&#8220;We can&#8217;t have official creditors free-riding on the rest of the system,&#8221; the senior Treasury official said.



Ruto told Reuters last month that Kenya expects a fresh $1 billion disbursement from the International Monetary Fund this month. Chinese loans to Kenya, which surged from around 2013-2022, now account for about 64% of Kenya&#8217;s current stock of external bilateral debt.



Commercial external lending also contributed to Kenya&#8217;s external debt problem, with a great focus on a $2 billion Eurobond maturing in June 2024.



The U.S. this week sent $250 million in fresh funding for crisis response by the World Bank&#8217;s International Development Association, and was working with Congress to provide $21 billion to the IMF&#8217;s Poverty Reduction and Growth Trust, the officials said. It is also urging Congress to approve $36 billion to the World Bank.



Washington, the official said, would also work with other Group of Seven advanced economies and Group of Twenty to push for more private investment, coordinated relief packages and reforms at the international financial institutions.



&#8220;It&#8217;s not just China. &#8230; The system needs to operate better,&#8221; the Treasury official said.



(Reporting by Andrea Shalal; editing by David Ljunggren and Leslie Adler)

President Biden Hosts Kenyan President William Ruto For Official State Visit

US, Kenya call for increased support for developing countries

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MFRSJUG6ENIKRKT2TG6IDG6GTE-820x545.jpg" alt="" class="wp-image-489767" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MFRSJUG6ENIKRKT2TG6IDG6GTE-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MFRSJUG6ENIKRKT2TG6IDG6GTE-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MFRSJUG6ENIKRKT2TG6IDG6GTE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MFRSJUG6ENIKRKT2TG6IDG6GTE-768x510.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MFRSJUG6ENIKRKT2TG6IDG6GTE-1536x1020.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MFRSJUG6ENIKRKT2TG6IDG6GTE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s President William Ruto talks during a Reuters interview on the sidelines of the IDA for Africa Heads of State Summit at the Kenyatta International Conference Centre (KICC) in Nairobi, Kenya April 29, 2024. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



May 23 (Reuters) &#8211; U.S. President Joe Biden and Kenyan President William Ruto on Thursday announced investments in green energy, education and health manufacturing in the East African nation and a plan to reduce its debt burden.



Ruto arrived in Washington on Wednesday as part of a three-day state visit that includes bilateral talks with Biden on Thursday, followed by a state dinner in the evening. Ruto&#8217;s trip is the sixth state visit hosted by the Biden administration and the first for an African president since 2008.



Here are the key announcements:



<h2 class="wp-block-heading" id="h-diplomacy">DIPLOMACY</h2>



Biden will designate Kenya as a major non-NATO ally, making it the first sub-Saharan African country to receive the designation, a senior U.S. administration official said. Currently, 18 countries are designated as non-NATO allies, including Israel, Brazil and the Philippines.



The alliance &#8211; which is not a mutual defense pact &#8211; will bring some additional U.S. aid, including a new $7 million partnership to help modernize Kenya’s National Police Service, with a focus on staff and training development.



<h2 class="wp-block-heading" id="h-debt-and-finance">DEBT AND FINANCE</h2>



The two countries launched the Nairobi-Washington Vision, a call to the international community to help debt-laden countries like Kenya manage debt while investing in economic growth. It calls on international financial institutions to provide coordinated packages of support and on creditor countries to provide forms of debt relief.



The U.S. will soon make available lending of up to $21 billion to the International Monetary Fund’s Poverty Reduction and Growth Trust to support the poorest countries.



<h2 class="wp-block-heading" id="h-trade-and-investment">TRADE AND INVESTMENT</h2>



Microsoft MSFT.Ois partnering with United Arab Emirates-based artificial intelligence firm G42 to invest $1 billion in a data center in Kenya as part of its efforts to expand cloud computing services in East Africa. The data center, which will be built by G42 and its partners, will be powered by geothermal energy and provide access to Microsoft&#8217;s Azure cloud computing platform through a new cloud region for East Africa.



The U.S. International Development Finance Corporation announced it plans to open an office in Kenya&#8217;s capital Nairobi, playing a key role in driving its efforts across key sectors in Kenya such as agriculture, health, e-mobility and energy.



The U.S. Agency for International Development will provide $15 million for new activities designed to reduce poverty and malnutrition and address global food security by expanding investment opportunities.



<h2 class="wp-block-heading" id="h-climate">CLIMATE</h2>



The two countries launched the U.S.-Kenya Climate and Clean Energy Industrial Partnership. The U.S. and Kenya plan to work with international financial institutions and multilateral trust funds to identify mechanisms for mobilizing investment for clean energy manufacturing and services.



Virunga Power, a U.S. company and partner in the Power Africa effort to double access to electricity in sub-Saharan Africa, announced a pipeline of six hydropower projects in advanced stages of development in Kenya. With a total expected investment of $100 million, those projects will be built in sequence over the next five years and are expected to provide 31 megawatts of clean, renewable energy.



A $60 million grant from the Millennium Challenge Corporation will fund a four-year program focusing on the transportation needs of underserved groups in Kenya, safer options for women and pedestrians, and climate-friendly public transportation.



<h2 class="wp-block-heading" id="h-health">HEALTH</h2>



Kenya and the United States announced that the U.S. Centers for Disease Control and Prevention and Kenya&#8217;s government will share information, identifying best practices and defining steps toward the development and full launch of the Kenyan National Public Health Institute.



The International Development Finance Corporation is making a $10 million direct loan to Kenyan company Hewa Tele, which supplies medical oxygen to healthcare facilities in Africa, and equity investments in Kasha Global, a Kenya-based e-commerce company that provides personal care, healthcare, and beauty products to low-income women in Kenya and Rwanda.



<h2 class="wp-block-heading" id="h-education">EDUCATION</h2>



The administration intends to provide $3.3 million for a U.S. Department of State program for 60 Kenyan undergraduate students to study for a semester in the United States, with a focus on science, technology, engineering and mathematics.



The administration also plans to provide $500,000 to support Kenyan students, scientists, researchers, and engineers by encouraging U.S. universities to increase investment in relationships with Kenyan universities and research institutions.



(Reporting by Jarrett Renshaw; editing by Jonathan Oatis)

FILE PHOTO: Kenya’s President William Ruto talks during a Reuters interview on the sidelines of the IDA for Africa Heads of State Summit in Nairobi

US, Kenya announce slew of investments and plan on debt relief

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="581" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OMGAKGST45NKLBLRIAB3HCLZXM-820x581.jpg" alt="" class="wp-image-489691" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OMGAKGST45NKLBLRIAB3HCLZXM-820x581.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OMGAKGST45NKLBLRIAB3HCLZXM-300x212.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OMGAKGST45NKLBLRIAB3HCLZXM-127x90.jpg 127w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OMGAKGST45NKLBLRIAB3HCLZXM-768x544.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OMGAKGST45NKLBLRIAB3HCLZXM-1536x1088.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OMGAKGST45NKLBLRIAB3HCLZXM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. President Joe Biden welcomes Kenyan President William Ruto at the South Portico of the White House in Washington, U.S., May 22, 2024. REUTERS/Leah Millis</figcaption></figure>



May 23 (Reuters)&nbsp;&#8211;&nbsp;U.S. President Joe Biden welcomed Kenyan President William Ruto to the White House on Thursday for a state visit aimed at deepening relations with African nations, which have been sidelined by wars in Ukraine and Gaza, with a flurry of deal announcements.



&#8220;We may be divided by distance, but we are united by the same democratic values,” Biden said, noting that the two countries are celebrating a 60-year partnership this year.



&#8220;Today, as we begin the next decade of our partnership, we&#8217;ve launched a new initiative to bring our country&#8217;s companies and communities closer together,&#8221; he said.



Ruto responded, “Today, as we celebrate our past, we are optimistic about our future. By undertaking this state visit, we will have the opportunity to discuss and to have a conversation about building global partnership and leadership.&#8221;



The Kenyan president, who arrived in the U.S. on Monday and visited Atlanta, Georgia, spoke with CEOs in the White House on Wednesday. Later on Thursday, he will meet with Biden in the Oval Office and hold a joint press conference before attending a lavish state dinner in the evening.



Ruto&#8217;s trip is the first state visit for an African president to the White House since 2008. Successive U.S. governments have said they wanted to offer a more sustainable and democratic alternative to relations with U.S. rivals China and Russia, but have failed to establish real ties.



Africa&#8217;s political landscape has been upended in the past year by a spate of military coups, wars and shaky elections that have given China and Russia greater influence. Biden hopes strengthening ties with Kenya, seen as a democratic stronghold, can help stabilize the continent and advance U.S. interests.



The White House said Biden would also designate Kenya as a major non-NATO ally, the first sub-Saharan African country to receive the designation. Currently, 18 countries are designated as non-NATO allies, including Qatar, Israel, Brazil and the Philippines.



<h2 class="wp-block-heading" id="h-green-energy-health-deals">GREEN ENERGY, HEALTH DEALS</h2>



The leaders will announce new U.S.-backed investments in green energy and health manufacturing, along with a detailed plan to cut Kenya&#8217;s high debt load, most of which is owed to China, the White House said.



The U.S. will announce $250 million in new investments in Kenya through the U.S. International Development Finance Corporation, including $180 million for a major affordable housing project, a U.S. government official said. That will bring the U.S. financing institution&#8217;s portfolio in Kenya to nearly $1.1 billion. The corporation will also open an office in Kenya.



The humanitarian crisis in Haiti will be a focus. Kenya&#8217;s plan to deploy 1,000 paramilitary officers to the Caribbean country as part of a U.N.-backed effort to curb gang violence and hunger has been delayed, sources told Reuters.



Biden told reporters on Wednesday that he plans an official visit to Africa in February after the U.S. presidential election, an announcement that presumes he will defeat Donald Trump. Biden had earlier pledged to make a trip to Africa sometime in 2023.



Ruto will be celebrated at a dinner lit by 1,000 candles and a menu of heirloom tomato soup, butter-poached lobster, smoked beef short ribs and a white chocolate dessert.



Country singer Brad Paisley will headline the dinner along with Howard University&#8217;s Gospel Choir, both of which are tributes to Ruto&#8217;s musical interests.



(Reporting By Andrea Shalal and Jarrett Renshaw; Additional reporting by Andrea Shalal and Trevor Hunnicutt; Editing by Don Durfee, Cynthia Osterman and Jonathan Oatis)

U.S. President Biden welcomes Kenyan President Ruto on at the White House in Washington

Biden welcomes Kenya’s Ruto to White House with investments, promises

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/EFI4GYYDFVNN7NSNAMR7D6HG5A-820x545.jpg" alt="" class="wp-image-489643" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/EFI4GYYDFVNN7NSNAMR7D6HG5A-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/EFI4GYYDFVNN7NSNAMR7D6HG5A-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/EFI4GYYDFVNN7NSNAMR7D6HG5A-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/EFI4GYYDFVNN7NSNAMR7D6HG5A-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/EFI4GYYDFVNN7NSNAMR7D6HG5A-1536x1021.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/EFI4GYYDFVNN7NSNAMR7D6HG5A-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. President Joe Biden goes in for a handshake during event with Kenyan President William Ruto and business executives at the White House, in Washington, U.S., May 22, 2024. REUTERS/Leah Millis</figcaption></figure>



WASHINGTON, May 22 (Reuters)&nbsp;&#8211;&nbsp;U.S. President Joe Biden is expected to designate Kenya as a major non-NATO ally during a three-day state visit by Kenyan President William Ruto&nbsp;this&nbsp;week, a source familiar with the plans said.



Kenya would be the first sub-Saharan African country to receive the designation, reflecting Washington&#8217;s drive to deepen relations with the East African nation, which has long also had close relations with Russia and China.



As he welcomed Ruto to the White House for a meeting with business executives, Biden told reporters he planned to visit Africa in February, following the U.S. presidential election. The two leaders will meet again in the Oval Office on Thursday, followed by a joint news conference and a state dinner.



Senior administration officials said Biden and Ruto would discuss a range of issues from trade to debt relief and the way forward for Haiti, Ukraine, Sudan and other areas during their meeting.



On Wednesday, Biden said he and Ruto would launch a new era of technology cooperation between the two countries that would include work on cyber security, artificial intelligence and semiconductors. He did not mention the security designation.



The U.S. will also announce $250 million in new investments through the U.S. International Development Finance Corporation (DFC), expanding the U.S. financing agency’s portfolio in Kenya to over $1 billion, DFC said.



Both countries share a commitment to ensuring technology is developed and deployed in a manner that advances transparency, accountability, and human rights, a U.S. official said.



Kenya, like the United States, has become &#8220;an engine for innovation&#8221;, the official said, citing its $1 billion “Silicon Savannah” technology hub that is home to more than 200 startups spanning a range of sectors, including clean energy, microelectronics, financial technology, and e-commerce.



Businesses that took part included Alphabet&nbsp;GOOGL.O; Baylis Emerging Markets, a private equity firm specializing in African markets; BasiGo, a Kenyan electric bus company; Teneo, a global CEO consulting and advisory&nbsp;firm, and Gearbox&nbsp;Software,&nbsp;which&nbsp;is an American video game development company.



Washington also plans a new semiconductor partnership with Kenya, and is working with Congress to make&nbsp;it the&nbsp;first country in Africa to benefit from funding through the U.S. CHIPS and Science Act of 2022, an administration official said.



Biden&#8217;s designation of Kenya as a major non-NATO ally comes as it is preparing to send forces to Haiti as part of a U.N.-led force deploying to address the security crisis in the Caribbean.



The designation is granted by the United States to close, non-NATO allies that have strategic working relationships with the U.S. military.



The White House had no immediate comment.



Biden in March designated Qatar as a major non-NATO ally of the U.S., fulfilling the promise he had made to Qatar earlier in the year.



Gyude Moore, head of the Africa Initiative at the Center for Global Development, said Kenya had proven to be a dependable and reliable partner for the U.S. at a time when South Africa was pursuing its own more independent foreign policy.



Cameron Hudson, a fellow at the Center for Strategic and International Studies, said the move would formalize a shift that has seen Kenya &#8220;move more squarely into a U.S. orbit&#8221; in recent years, including greater cooperation on Somalia.



&#8220;It&#8217;s very significant. No other sub-Saharan African country has it,&#8221; he said.



(Reporting by Andrea Shalal and Trevor Hunnicutt; Editing by Chris Reese, Sonali Paul and Lincoln Feast.)

U.S. President Biden welcomes Kenyan President Ruto to the White House in Washington

US expected to designate Kenya as major non-NATO ally, source says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU.jpg" alt="" class="wp-image-420130" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">The International Monetary Fund logo is seen at IMF headquarters in Washington, U.S., October 14, 2017. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



JOHANNESBURG, May 22 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund said on Wednesday it was releasing a combined $164.6 million in funds to Rwanda after its executive board concluded reviews of the country&#8217;s&nbsp;support programmes.



Rwanda&#8217;s economy is forecast to expand 6.6% this year and 6.5% next year after an 8.2% expansion last year, IMF said in a statement.



&#8220;While fiscal consolidation may temporarily dampen growth, a rebound to 7.3 percent is anticipated in the medium term,&#8221; it said.



Rwanda&#8217;s economy largely depends on agriculture, tourism and manufacturing.



(Reporting by Bhargav Acharya, Writing by Tannur Anders, George Obulutsa; Editing by Bate Felix)

FILE PHOTO: The International Monetary Fund logo is seen at IMF headquarters in Washington

IMF to release $164.6 mln to Rwanda

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/2BALKQIMVVOB7NOVSEI4UNEZRI-820x547.jpg" alt="" class="wp-image-489335" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/2BALKQIMVVOB7NOVSEI4UNEZRI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/2BALKQIMVVOB7NOVSEI4UNEZRI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/2BALKQIMVVOB7NOVSEI4UNEZRI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/2BALKQIMVVOB7NOVSEI4UNEZRI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/2BALKQIMVVOB7NOVSEI4UNEZRI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/2BALKQIMVVOB7NOVSEI4UNEZRI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A Microsoft logo is seen a day after Microsoft Corp&#8217;s $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, U.S. June 14, 2016. REUTERS/Lucy Nicholson/File Photo</figcaption></figure>



May 22 (Reuters)&nbsp;&#8211;&nbsp;Microsoft&nbsp;MSFT.O&nbsp;is partnering with UAE-based AI firm G42 to invest $1 billion in a data center in Kenya as part of its efforts to expand cloud-computing services in East Africa, the companies said on Wednesday.



The data center, which will be built by G42 and its partners, will be powered by geothermal energy and provide access to Microsoft&#8217;s Azure through a new cloud region for East Africa.



<h2 class="wp-block-heading" id="h-why-it-s-important">WHY IT&#8217;S IMPORTANT</h2>



Abu Dhabi-based&nbsp;G42,&nbsp;in which Microsoft invested $1.5 billionlast month, has&nbsp;begun training an open-source large-language AI model in Swahili and English.



<h2 class="wp-block-heading" id="h-context">CONTEXT</h2>



Amazon.com&nbsp;AMZN.O, Microsoft and Alphabet&nbsp;GOOGL.Oare investing billions in new data centers across regions to cater to a boom in demand for cloud and generative AI-related services.



<h2 class="wp-block-heading" id="h-what-s-next">WHAT&#8217;S NEXT</h2>



The letter of intent will be signed on Friday between Microsoft, G42 and Kenya&#8217;s Ministry of Information, Communications and the Digital Economy as part of the country&#8217;s President William Ruto&#8217;s state visit to the United States, the Windows maker said.



Microsoft also said that the data center will become operational within two years of the parties signing definitive agreements.



(Reporting by Akash Sriram in Bengaluru; Editing by Nivedita Bhattacharjee and Anil D&#8217;Silva)

FILE PHOTO: A Microsoft logo is seen a day after Microsoft Corp’s (MSFT.O) $26.2 billion purchase of LinkedIn Corp (LNKD.N), in Los Angeles

Microsoft ties up with UAE-based AI firm to invest $1 bln in Kenya data center

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-820x540.jpg" alt="" class="wp-image-486141" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-820x540.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-1536x1012.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A shopper walks past a Vodacom shop in Johannesburg, file. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, May 13 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Vodacom Group&nbsp;VODJ.J&nbsp;on Monday reported a 10.8% fall in full-year earnings, impacted by start-up loss in Ethiopia, higher finance and energy costs and inflationary pressure.



The company, majority-owned by Britain&#8217;s Vodafone&nbsp;VOD.L, co-launched Safaricom Ethiopia in 2022 as part of a consortium, betting that the populous nation will power growth after about five years of investment. Vodacom has a direct 5.7% stake.



The biggest telecoms operator in South Africa said headline earnings per share (HEPS), a profit measure, fell to 846 cents in the year ended March 31 from 948 cents a year earlier.



Group CEO Shameel Joosub said weaker exchange rates across markets including the recent devaluation of the Egyptian pound contributed to the decline in HEPS.



He said despite start-up costs associated with operations in Ethiopia, Safaricom has confirmed that its network roll-out was on track in Africa&#8217;s second-most populous country after Nigeria.



Group service revenue grew 29.1% to 120.9 billion rand ($6.57 billion), benefiting from the acquisition of Vodafone Egypt. On a pro-forma comparable basis, group service revenue growth was 9.2%, at the higher end of its medium-term range.



Group earnings before interest, tax, depreciation and amortisation (EBITDA) grew 24.3% to 56.1 billion rand and by 7.8% on a pro-forma basis, with Egypt being a key driver of the growth.



Joosub said despite the economic backdrop, the group is committed to capital expenditure of 13% to 14.5% of overall revenue of 151 billion rand.



The board declared a final dividend of 285 cents a share.



($1 = 18.4096 rand)



(Reporting by Nqobile Dludla; Editing by Sonali Paul and Christopher Cushing)

FILE PHOTO: A shopper walks past a Vodacom shop in Johannesburg

South Africa’s Vodacom profit hit by Ethiopia loss

<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>



LUSAKA, May 9 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund said on Thursday it would continue discussions with Zambian authorities on policies&nbsp;that would unlock the next disbursal from a $1.3 billion, three year loan programme.



An IMF staff team was in Lusaka from April 24 to May 7 to discuss Zambia&#8217;s economic policies for its third review of the country&#8217;s 38-month Extended Credit-Facility programme, which was approved in September 2022.



The completion of the review would pave the way for the fourth disbursement under the programme, after the IMF&#8217;s board released $187 million in December, as the country moves closer to emerging from debt default while struggling with a punishing drought.



Vera Martin, the IMF&#8217;s mission chief for the southern African nation, said talks between the IMF staff and the authorities focused on analysing recent economic developments and the impact of the drought.



&#8220;Discussions will continue virtually in the coming weeks toward completion of the Third ECF review,&#8221; sheadded in a statement issued at the end of the mission that did not say why an agreement was not reached during the visit to Lusaka.



One of the largest copper producers on the African continent, Zambia defaulted in 2020 during the COVID-19 pandemic.



Its debt restructuring efforts have been beset by delays, although they took a step forward in March when the government and a group of bondholders reached a deal-in-principle to rework about $3 billion of international bonds.



(Reporting by Chris Mfula in Lusaka, additional reporting by Jahnavi Nidumolu and Disha Mishra, Writing by Bhargav Acharya and Rachel Savage Editing by Bate Felix and David Gregorio)

Spring Meetings Of The International Monetary Fund And World Bank

IMF to continue discussions with Zambian authorities after visit

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="521" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_5BR3BDM6MNOBXDJZ5Q4WQPD7SQ-820x521.jpg" alt="" class="wp-image-484690" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_5BR3BDM6MNOBXDJZ5Q4WQPD7SQ-820x521.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_5BR3BDM6MNOBXDJZ5Q4WQPD7SQ-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_5BR3BDM6MNOBXDJZ5Q4WQPD7SQ-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_5BR3BDM6MNOBXDJZ5Q4WQPD7SQ-768x488.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_5BR3BDM6MNOBXDJZ5Q4WQPD7SQ-1536x975.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_5BR3BDM6MNOBXDJZ5Q4WQPD7SQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A pedestrian walks on a sideway outside the Safaricom mobile phone customer care centre in the central business district of Nairobi, Kenya, November 10, 2021. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, May 9 (Reuters)&nbsp;&#8211;&nbsp;Kenyan telecom operator Safaricom&nbsp;SCOM.NR&nbsp;on Thursday reported a 3.5% rise in its annual core earnings to 94.9 billion Kenyan shillings ($724 million) as solid growth in its home market helped cushion the costs of its nascent Ethiopian business.



The group, which is partly owned by South Africa&#8217;s Vodacom&nbsp;VODJ.J&nbsp;and Britain&#8217;s Vodafone&nbsp;VOD.L, said the Ethiopian business was gaining momentum and should start being a significant contributor to the group&#8217;s growth from next year.



It launched Safaricom Ethiopia in 2022, betting that the populous nation will power growth after about five years of investment.



In Kenya, the company achieved a 20.4% rise in earnings before interest and tax (EBIT) to 139.9 billion shillings, against a guidance of 129 to 132 billion, but overall group performance was dampened by the new business in Ethiopia.



Net income attributable to owners of the company grew 1.2% year on year to 62.99 billion Kenyan shillings.



The group EBIT exceeded the company&#8217;s forecast of 87 to 93 billion shillings, driven by &#8220;customer segmentation, public sector digitisation, investments in new technologies and better use of data and analytics to understand and serve customers better,&#8221; the company said in a statement.



&#8220;We are extremely pleased with what we have been able to achieve as a group despite the significant startup costs in our Ethiopia business,&#8221; Group CEO Peter Ndegwa told an investor briefing.



Safaricom&#8217;s active customer base in Ethiopia doubled to 4.4 million, he said.



&#8220;We expect that from 2025, Ethiopia will start being a significant growth contributor at group level for both top and bottom line,&#8221; he said, adding that the Ethiopia business was expected to break-even by the end of 2026.



The company forecast group EBIT of 103 billion to 109 billion shillings for the current year ending in March 2025.



Overall group service revenue grew 13.4% year on year to 335 billion shillings.



Safaricom group&#8217;s M-Pesa mobile financial services business grew 8.8% to 117.2 billion shillings, while mobile data revenue grew 11.4% to 54 billion shillings, the company said in a statement.



It proposed to pay shareholders a final dividend of 0.65 shillings per share, said company chair Adil Khawaja, bringing the total for the year to 1.20 shillings, same as the previous year.



&#8220;In Kenya, like many other companies, we faced major macroeconomic challenges. High inflation, a weakening shilling, effects of the prolonged drought and rising taxes,&#8221; Khawaja said.



&#8220;We pressed on with our expansion in Ethiopia and took all the startup obstacles in our stride,&#8221; he said.



($1 = 131.0000 Kenyan shillings)



(Reporting by Hereward Holland; Writing by Tannur Anders; Editing by Jamie Freed, Varun H K and Emelia Sithole-Matarise)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_5BR3BDM6MNOBXDJZ5Q4WQPD7SQ

Safaricom annual earnings edge up helped by Kenya

<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/G4VUBYBJBFLRBEUKL2ZYINM3HE-820x547.jpg" alt="" class="wp-image-483558" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/G4VUBYBJBFLRBEUKL2ZYINM3HE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/G4VUBYBJBFLRBEUKL2ZYINM3HE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/G4VUBYBJBFLRBEUKL2ZYINM3HE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/G4VUBYBJBFLRBEUKL2ZYINM3HE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/G4VUBYBJBFLRBEUKL2ZYINM3HE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/G4VUBYBJBFLRBEUKL2ZYINM3HE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Mozambique President Filipe Jacinto Nyusi speaks to reporters ahead of a meeting with U.S. Secretary of State Antony Blinken during the US-Africa Leaders Summit at the Walter E. Washington Convention Center in Washington, DC, U.S., December 14, 2022. Mandel Ngan/Pool via REUTERS/File Photo</figcaption></figure>



MAPUTO, May 6 (Reuters)&nbsp;&#8211;&nbsp;Mozambique&#8217;s ruling FRELIMO party has announced Daniel Chapo will be its presidential candidate in an election scheduled for October.



FRELIMO has governed the southern African country since gaining independence in 1975 and hopes Chapo will lead the party to another victory in the Oct. 9 election.



&#8220;The soap opera of speculation is over, including speculation about the third term,&#8221; President Filipe Nyusi said on state television on Sunday, dismissing the prospect of contesting elections again.



&#8220;We must all unite around comrade Daniel Francisco Chapo, in the demanding march towards electoral victory next October,&#8221; Nyusi said.



Mozambique&#8217;s constitution limits the president to two five-year terms. However, there had been media speculation that Nyusi would seek a third term after his&nbsp;re-election&nbsp;as party leader in 2022.



A relatively unknown figure in national politics, Chapo is the governor of the southern Mozambican province of Inhambane. He won 225 votes (around 94%) cast by the party&#8217;s central committee, according to a party statement.



&#8220;We are going to work with all social strata,&#8221; Chapo said on television after his win.



A former radio announcer, Chapo was born in 1977, making him the first FRELIMO candidate born after the country&#8217;s independence.



He holds a law degree and a Master&#8217;s degree in development management and has filled a string of political roles including as an administrator of the districts of Nacala and Palma.



(Reporting by Manuel Mucari Writing by Tannur Anders Editing by Bhargav Acharya and Sharon Singleton)

FILE PHOTO: U.S.-Africa Business Forum at the Walter E. Washington Convention Center in Washington D.C

Mozambique’s ruling party announces Chapo as presidential candidate

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Kenyas-weather-outlook-dire-as-cyclone-nears-president-says-820x462.jpg" alt="" class="wp-image-482644" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Kenyas-weather-outlook-dire-as-cyclone-nears-president-says-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Kenyas-weather-outlook-dire-as-cyclone-nears-president-says-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Kenyas-weather-outlook-dire-as-cyclone-nears-president-says-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Kenyas-weather-outlook-dire-as-cyclone-nears-president-says-768x433.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Kenyas-weather-outlook-dire-as-cyclone-nears-president-says-1536x866.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Kenyas-weather-outlook-dire-as-cyclone-nears-president-says-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view from a helicopter shows a safari lodge near the swollen river within the flooded area following heavy rainfall in the Talek region, of the Maasai Mara National Reserve in southwestern Kenya, May 1, 2024. Mara Elephant Project/Handout via REUTERS/File Photo</figcaption></figure>



NAIROBI, May 3 (Reuters)&nbsp;&#8211;&nbsp;Torrential rains that caused widespread flooding and landslides across Kenya in recent weeks, killing at least 210 people, are forecast to worsen over the rest of this month, President William Ruto said on Friday.



The floods have wreaked havoc, destroying homes, roads, bridges and other infrastructure across Kenya, East Africa&#8217;s largest economy. The death toll exceeds that from floods triggered by the El Nino weather phenomenon late last year.



&#8220;Sadly, we have not seen the last of this perilous period, as the situation is expected to escalate. Meteorological reports paint a dire picture,&#8221; Ruto said on Kenyan television. &#8220;Kenya may face its first-ever cyclone.&#8221;



Cyclone Hidaya is expected to make landfall in Tanzania, Kenya&#8217;s southern neighbour, on Saturday, bringing with it waves almost eight metres (26 feet) high and 165 kph (100 mph) winds, the IGAD Climate Prediction and Applications Centre said.



&#8220;This cyclone, named Hidaya, that could hit anytime now, is predicted to cause torrential rain, strong winds and powerful and dangerous waves,&#8221; Ruto said.



Earlier this week, Ruto ordered those living in landslide-prone areas to leave for safer ground.



The government has asked people living near 178 dams and water reservoirs, now close to overflowing, as well as those in informal settlements close to rivers and streams, to evacuate.



Ruto said the reopening of all schools for the upcoming term, which was meant to start this week, would be postponed until further notice.



The Nairobi government has set up 115 camps to host people displaced by the flooding, and is working closely with donors and humanitarian organisations to provide food and non-food supplies to those affected, he said.



Opposition leaders and rights groups have criticised Ruto&#8217;s administration for its response to the disaster.



On Thursday, Human Rights Watch accused authorities of failing to put in place a timely national response plan, despite warnings from the Kenya Meteorological Department a year ago about the likely impact of flooding caused by El Nino.



(Reporting by George Obulutsa and Hereward Holland; editing by Mark Heinrich)

FILE PHOTO: A view from a helicopter shows safari lodges near the river within the flooded area following heavy rainfall in the Talek region, of the Maasai Mara

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