<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

Kenya’s weather outlook ‘dire’ as cyclone nears, president says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.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-820x517.jpeg 820w, 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-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, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><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>



DAR ES SALAAM, April 24 (Reuters)&nbsp;&#8211;&nbsp;The World Bank has suspended new disbursements from a $150 million fund to expand a national park in southern Tanzania, a spokesperson said on Wednesday, after the lender received allegations of killings and evictions by rangers last year.



Two anonymous complainants have accused rangers from the Ruaha National Park of extrajudicial killings, enforced disappearances, evictions, torture and cattle seizures perpetrated against local villagers, according to the World Bank&#8217;s independent complaints mechanism.



&#8220;The World Bank is deeply concerned about the allegations of abuse and injustice related to the&#8230; project in Tanzania,&#8221; a spokesperson said in a statement. &#8220;We have therefore decided to suspend further disbursement of funds with immediate effect.&#8221;



Government spokesman Mobhare Matinyi said the allegations were false but that the government was investigating &#8220;to see if there was any misconduct from any staff so that it takes appropriate action&#8221;.



He said the suspended final tranche of the loan amounted to $25 million.



Several Tanzanian government initiatives to expand tourism have faced criticism from human rights advocates, including in the north of the country where thousands of Maasai have been evicted from their traditional homelands.



A report last year by the Oakland Institute, a California-based think-tank, accused Ruaha park rangers of sexual violence, and said local communities&nbsp;across&nbsp;Tanzania were bearing the cost of generating tourism revenues under the guise of protecting the environment.



The government says expanding the tourism sector is key to economic development and that it has provided fair compensation to people evicted from their homes.



The World Bank project was approved by its board in 2017 and is expected to end in February 2025.



(Editing by Hereward Holland and Gareth Jones)

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

World Bank suspends Tanzania tourism fund over abuse allegations

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg" alt="" class="wp-image-420118" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The new economic measures laid out by the U.K. government “will likely increase inequality”, according to a spokesperson from the International Monetary Fund.
Yuri Gripas | Reuters</figcaption></figure>



ADDIS ABABA, April 11 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia may have to decide on a big currency devaluation sooner rather than later to secure a rescue loan from the International Monetary Fund (IMF), which left the country last week without reaching a much-needed deal with authorities.



East Africa&#8217;s most populous country, already struggling with high inflation, became the third African state in as many years to default on its debt in December.



Ethiopia hasn&#8217;t received any IMF funds since 2020 and its last lending arrangement with the fund went off track in 2021. The federal government and a rebellious regional authority signed a deal in late 2022 to end a two-year civil war.



The IMF, which said progress was made during its latest visit, has not said that currency reform is necessary for its support. But the Fund usually favours flexible, market-determined exchange rates. Ethiopia has requested $3.5 billion of support from the IMF, sources told Reuters last year.



Chronic foreign currency shortages and a tightly controlled exchange rate has allowed a black market to flourish, on which the birr currently trades at between 117 and 120 per dollar, more than double the official rate of around 56.7&nbsp;ETB=.



&#8220;It seems that the Ethiopian authorities have found accepting the demands of the IMF hard,&#8221; said Abdulmenan Mohammed, an Ethiopian economic analyst based in Britain.



&#8220;The Ethiopian authorities are worried about devaluation of the birr, (which) would have serious negative economic repercussions, including soaring inflation&#8230; and surging foreign currency denominated debts in terms of birr.&#8221;



<h2 class="wp-block-heading" id="h-playing-hardball">&#8216;PLAYING HARDBALL&#8217;</h2>



In early 2021, Ethiopia requested a debt restructuring under the G20&#8217;s Common Framework, a process established in response to the COVID-19 pandemic to bring in newer creditor countries like China and India. But progress was initially delayed by the civil war.



The country&#8217;s external debt was $28.2 billion at the end of March, based on government data.



In August 2023, it secured a debt payments suspension from its largest bilateral creditor China, which from 2006 to 2022 committed to lending the country $14 billion, according to Boston University&#8217;s Chinese Loans to Africa Database.



The rest of Ethiopia&#8217;s bilateral creditors followed suit in December, but said they could cancel the relief if Ethiopia did not get an IMF deal by March 31. When the deadline lapsed, it was extended to June 30.



There are widely varying estimates of the size of currency devaluation the IMF would accept, that could pave the way for a deal.



Irmgard Erasmus of research firm Oxford Economics said that she expects a weakening of 15% to coincide with an IMF staff-level deal on a bailout loan, a prerequisite for its external debt restructuring moving forwards.



&#8220;We retain the view that the IMF will require a good faith measure that solidifies Ethiopia&#8217;s intent to implement a more flexible FX (foreign exchange) regime,&#8221; she said in a note to clients. &#8220;(This) will set the scene for a series of stepwise devaluations on the path to FX liberalisation and monetary policy reform.&#8221;



More than one currency adjustment is likely, the first between 30-50%, said Connor Vasey, a consultant at J.S. Held, pointing to Egypt, which devalued its pound 38% and secured a larger IMF loan in March.



The Ethiopians probably prefer a more gradual devaluation but have a weak negotiating position, Vasey said, after a previous IMF loan programme expired in 2021, amid the conflict and concerns about the country&#8217;s ability to pay its debts.



&#8220;Ethiopia is coming into the meeting room with the IMF that is playing hardball and saying, &#8216;You don&#8217;t really have a foot to stand on, in terms of negotiating down our position,'&#8221; he said.



Nonetheless, Vasey said he expected Ethiopia to secure an IMF deal soon.



&#8220;There&#8217;s an international push to get this all lined up. It&#8217;s just a question of sequencing of the reforms,&#8221; he said.



An IMF spokesperson pointed to comments made earlier this month by spokesperson Julie Kozack, who responded to direct questions on why Ethiopia did not secure a loan during the visit and whether it is likely to get one at the Fund&#8217;s Spring Meetings next week in Washington DC.



&#8220;The team made substantial progress,&#8221; she said. &#8220;These discussions are continuing and will continue at the upcoming Spring Meetings.&#8221;



Ethiopian government officials did not respond to requests for comment. Authorities are committed to FX reform, state finance minister Eyob Tekalign told Reuters in October 2022.



&#8220;The exchange rate unification remains one important policy goal,&#8221; he said at that time. &#8220;But we are just doing it gradually.&#8221;



(Reporting by Rachel Savage in Johannesburg and Dawit Endeshaw in Addis Ababa; Additional reporting by Duncan Miriri in Nairobi, Editing by Karin Strohecker and Jane Merriman)

107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico

Ethiopia faces tough devaluation decision to secure IMF bailout

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-820x547.jpg" alt="" class="wp-image-474957" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: An aerial view shows the headquarters of the Central Bank of Brazil (C) in Brasilia January 20, 2014. REUTERS/Ueslei Marcelino/File Photo</figcaption></figure>



KAMPALA, April 9 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s foreign exchange reserves fell by about 12% between June 2023 and January this year because of external debt payments and the central bank&#8217;s inability to buy foreign currency due to a slide in the Ugandan shilling&nbsp;UGX=.



Reserves dropped from $4.07 billion in June to about $3.58 billion at the end of January, reaching 3.4 months of import cover excluding oil project-related imports, the central bank said on Tuesday in its State of the Economy report.



The Bank of Uganda targets foreign exchange cover of 4 months of imports, excluding oil projects, an International Monetary Fund staff report published in March said.



Uganda&#8217;s rising public debt, more than half of which is external, has been eating up a growing share of revenues and hitting other spending priorities like education and health.



Total public debt stood at $24.7 billion, 60% of which was external, at the end of 2023, finance ministry figures show.



The Bank of Uganda said foreign reserves could rise due to expected inflows from budget support loans, but that the outlook for the country&#8217;s balance of payments was fragile.



&#8220;Delayed disbursement of expected budget support loans, higher-than-projected government expenditure on imports, and &#8230; tight global and domestic financial market conditions may disrupt the reserve build-up programme,&#8221; it said.



(Reporting by Elias Biryabarema; Editing by Alexander Winning and Alexander Smith)

FILE PHOTO: Aerial view shows the headquarters of the Central Bank of Brazil in Brasilia

Ugandan foreign exchange reserves drop 12% due to debt payments

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg" alt="" class="wp-image-419915" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The World Bank Group headquarters in Washington, D.C., U.S., on Tuesday, April 19, 2022. The International Monetary Fund (IMF) slashed its world growth forecast by the most since the early months of the Covid-19 pandemic, and projected even faster inflation, after Russia invaded Ukraine and China renewed virus lockdowns. Photographer: Al Drago/Bloomberg via Getty Images</figcaption></figure>



ADDIS ABABA, April 5 (Reuters)&nbsp;&#8211;&nbsp;The World Bank and Ethiopia have signed loan agreements totalling $1.72 billion to enhance electricity and water supply, as well as to facilitate the movement of food to markets, the finance ministry said on Friday.



The bank will allocate $523 million to expand the Horn of Africa nation&#8217;s electricity network and boost renewable energy generation, according to the ministry&#8217;s statement.



An additional $500 million will go towards two projects aimed at boosting access to food markets, including improving road networks in rural areas, the statement said.



Ethiopia, which has also experienced foreign-currency shortages, continues to feel the effects of the COVID-19 pandemic, a two-year war in the northern Tigray region, and droughts, floods, and locust invasions in parts of the country



The remaining World Bank funding will be allocated to improving water supply and supporting programs in towns that employ disadvantaged youths.



Typically, World Bank loans carry low to zero interest rates and have repayment periods of 30 to 40 years.



(Reporting by Dawit Endeshaw; Writing by George Obulutsa; Editing by Bate Felix)

IMF And World Bank Headquarters During Virtual Spring Meetings

World Bank loans Ethiopia $1.72 bln for power, water supply expansion

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg" alt="" class="wp-image-433145" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-1536x994.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi, Kenya November 28, 2018. REUTERS/Njeri Mwangi/</figcaption></figure>



NAIROBI, April 4 (Reuters)&nbsp;&#8211;&nbsp;Kenya plans to increase the capital requirements for commercial banks to account for emerging risks in areas like information communication technology and climate change, its central bank governor said on Thursday.



Although the East African nation has a robust financial sector, with its banks expanding around the region in the past two decades, it has seen the capital adequacy ratios of some institutions come under pressure in recent years.



&#8220;The capital requirements for banks need to be increased. We have seen increased risks whether it is from climate change or cybersecurity,&#8221; Kamau Thugge, the central banker, told a news conference, without mentioning the potential size of the increment.



The central bank was concerned about rising non-performing loans in the banking sector, which increased to 15.5% of total loans in February this year, from 14.8% at the end of last year, he said.



The proposal to raise the capital will be published in the next one month for a public discussion, Thugge said, in line with the legal requirements.



Kenya requires a minimum capital of 1 billion shillings ($7.69 million) for those who wish to start a bank.



Banks that are already operating are required to maintain 10.5% core capital to total risk-weighted assets, and 14.5% total capital to risk-weighted assets.



&#8220;We need strong banks,&#8221; Thugge said.



($1 = 130.0000 Kenyan shillings)



(Reporting by Duncan Miriri; Editing by Devika Syamnath)

XRWAJLZOAVK3DL2J5JMRWBBQ6A

Kenya to raise capital requirements for banks, central banker says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg" alt="" class="wp-image-427563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



April 2 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund concluded its visit to Ethiopia to discuss a request for IMF support on Tuesday without reaching an agreement, leaving the East African nation short of a commitment it made with its official international creditors.



&#8220;The team made substantial progress towards establishing how the IMF could support the authorities&#8217; economic program,&#8221; and discussions will continue later this month in Washington, the IMF said.



But the Paris Club of developed creditor nations, which does not include China, said last year that an agreement to suspend Ethiopia&#8217;s debt payments through 2025 could be voided if the country did not secure an IMF loan by March 31.



It was not clear whether Paris Club members would enforce that deadline. Ethiopia reached a separate debt-service suspension deal with China earlier in 2023.



Ethiopia has been without an IMF program since its last lending arrangement with the fund expired in late 2022.



In December, Ethiopia became the third African nation to default in as many years after it failed to make a coupon payment on its $1 billion Eurobond.



Ethiopia&#8217;s economy is reeling from high inflation, a shortage of hard currency and growing external debt repayments, after the federal government and a rebellious regional government signed a deal in late 2022 to end two years of armed conflict.



The country&#8217;s external debt totaled $28.2 billion at the end of March, according to government data, including a $1 billion international bond maturing in December 2024&nbsp;XS1151974877=TE.



Between 2006 and 2022, Chinese lenders had committed to extending more than $14 billion in loans to the country, according to Boston University.



(Reporting by Jahnavi Nidumolu in Bengaluru; Writing by Duncan Miriri; Editing by Hugh Lawson and Bill Berkrot)

FILE PHOTO: The IMF logo is seen outside the headquarters building in Washington

IMF ends Ethiopia visit, deal not yet secured

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-820x547.jpg" alt="" class="wp-image-470881" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A container ship is seen as its docked next to cranes at the port of Mombasa, Kenya, October 23, 2019. Picture taken October 23, 2019. REUTERS/Baz Ratner/File Photo</figcaption></figure>



NAIROBI, March 28 (Reuters)&nbsp;&#8211;&nbsp;Kenya will allow&nbsp;landlocked&nbsp;Uganda&#8217;s state oil firm to import petroleum products through its port of Mombasa,&nbsp;Uganda&#8217;s&nbsp;energy ministryconfirmed&nbsp;on Thursday, to end a row between the two neighbours.



Uganda has been seeking alternative ways of importing petroleum products, including through a Tanzanian port, after its oil retailers for decades received their cargo through affiliated firms in Kenya.



Solomon Muyita, spokesperson for Uganda&#8217;s ministry of energy and minerals, said the first shipment under the new system was expected in May.



&#8220;Kenya has agreed to give us a licence, UNOC (Uganda National Oil Company) is now free to import through Mombasa,&#8221; he said.



The Business Daily newspaper, which first reported the news, quoted&nbsp;Kenyan&nbsp;Energy Minister Davis Chirchir as saying UNOC&nbsp;would&nbsp;use the Kenya Pipeline Company to move the products, meaning that Kenya would&nbsp;still benefit from the arrangement.



Uganda imported $1.6 billion worth of petroleum products in 2022, mostly originating from the Gulf. Some 90% of the products are imported through Kenya.



It announced in November that it&nbsp;planned&nbsp;to hand over exclusive rights&nbsp;to&nbsp;supply all petroleum products to a unit of&nbsp;the&nbsp;global energy trader Vitol,which would then supply UNOC.



Using Kenyan firms to import oil had &#8220;exposed Uganda to occasional supply vulnerabilities&#8221;&nbsp;where Ugandan retail companies were considered secondary whenever there were supply disruptions affecting retail prices, the government said at the time.



Kenyan&nbsp;President William Ruto and his Ugandan counterpart Yoweri Museveni met in Uganda last month and agreed to resolve the feud, Kenyan media outlets reported.



(Reporting by Duncan Miriri and Elias Biryabarema; Writing by Duncan Miriri; Editing by Michael Perry and Kevin Liffey)

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Kenya’s weather outlook ‘dire’ as cyclone nears, president says

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Ethiopia faces tough devaluation decision to secure IMF bailout

Ugandan foreign exchange reserves drop 12% due to debt payments

World Bank loans Ethiopia $1.72 bln for power, water supply expansion

Kenya to raise capital requirements for banks, central banker says

IMF ends Ethiopia visit, deal not yet secured

Kenya and Uganda resolve oil import row, Uganda says

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East Africa

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

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

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

IMF to release $164.6 mln to Rwanda

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

South Africa’s Vodacom profit hit by Ethiopia loss

IMF to continue discussions with Zambian authorities after visit

Safaricom annual earnings edge up helped by Kenya

Mozambique’s ruling party announces Chapo as presidential candidate

Kenya’s weather outlook ‘dire’ as cyclone nears, president says

World Bank suspends Tanzania tourism fund over abuse allegations

Ethiopia faces tough devaluation decision to secure IMF bailout

Ugandan foreign exchange reserves drop 12% due to debt payments

World Bank loans Ethiopia $1.72 bln for power, water supply expansion

Kenya to raise capital requirements for banks, central banker says

IMF ends Ethiopia visit, deal not yet secured

Kenya and Uganda resolve oil import row, Uganda says

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