<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-820x546.jpg" alt="" class="wp-image-426709" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE.jpg 1457w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ugandan President Yoweri Museveni attends a session of the Russia-Africa summit in Saint Petersburg, Russia, July 28, 2023. Mikhail Tereshchenko/TASS Host Photo Agency via REUTERS/File Photo</figcaption></figure>



KAMPALA, Feb 7 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s public debt stock is seen hitting 49.2% of gross domestic product (GDP) by the end of the current fiscal year ending in June, up from 46.9% a year earlier, the finance ministry said.



The East African country&#8217;s debt levels have been rising due chiefly to government spending on public infrastructure.



The central bank has been among those warning that debt costs are increasingly crowding out priorities like education and health.



The finance ministry said in a report published late on Tuesday that the country faced &#8220;moderate risk of debt distress,&#8221; linked to slow growth in exports and debt-service costs eating up a growing chunk of revenues.



Last fiscal year Uganda used around a third of its tax revenues to service its public debt. As of June 2023, total domestic and external debt stood at $23.66 billion.



Ugandan President Yoweri Museveni&#8217;s government has taken on large credit lines, especially from China, to fund infrastructure projects like roads and power plants, which officials say are needed to fuel economic growth.



(Reporting by Elias Biryabarema; Editing by Alexander Winning and Sharon Singleton)

A session of the Russia-Africa summit in Saint Petersburg

Uganda says public debt stock to hit nearly 50% of GDP by June

<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, Feb 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s&nbsp;shilling exchange rate has overshot its equilibrium rate and there is scope for the central bank to support it, the central bank governor said on Wednesday.



The bank raised the benchmark lending rate KECBIR=ECI by 50 basis points to 13.0% on Tuesday, citing sticky inflation and lingering pressure on the local currency.



The shilling weakened more than 20% against the dollar last year and has fallen to more record lows this year. In the past, the central bank has said it has no preferred rate for the shilling and only intervenes to reduce volatility.



&#8220;It is my view now that the exchange rate has overshot the equilibrium rate. So there could be scope for central bank to support the exchange rate going forward,&#8221; Thugge said.



He added that the bank raising its key rate could also contribute to the shilling strengthening.



Thugge said the economy&nbsp;will likely expand at a slightly faster pace this year, helped by improved performance in agriculture and the services sector.



He added that the economy was forecast to grow 5.7% this year versus 5.6% last&nbsp;year. In&nbsp;December, the central bank had forecast the economy to grow 5.9% in 2024.



(Reporting by George Obulutsa; Editing by Jacqueline Wong, Christopher Cushing and Andrew Heavens)

XRWAJLZOAVK3DL2J5JMRWBBQ6A

Kenya central bank governor: there is scope to support shilling

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107368870-1707125204692-gettyimages-1244583117-ZAMBIA_COPPER-820x462.jpeg" alt="" class="wp-image-453207" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107368870-1707125204692-gettyimages-1244583117-ZAMBIA_COPPER-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107368870-1707125204692-gettyimages-1244583117-ZAMBIA_COPPER-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107368870-1707125204692-gettyimages-1244583117-ZAMBIA_COPPER-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107368870-1707125204692-gettyimages-1244583117-ZAMBIA_COPPER-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107368870-1707125204692-gettyimages-1244583117-ZAMBIA_COPPER.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A truck makes its way over the Victoria Falls bridge, spanning over the Zambezi River, linking Zambia and Zimbabwe, in Livingstone, Zambia, on Sunday, May 8, 2022. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



KoBold Metals, a California-based metals exploration company backed by billionaires including Bill Gates and Jeff Bezos, said that it has discovered a vast copper deposit in Zambia.



The rare discovery of a large-scale copper deposit could help in the global race to secure a supply of materials critical to the energy transition. Copper is in high demand due to its use in renewable energy and electric vehicles.



A spokesperson for KoBold Metals told CNBC on Monday that the company believes its Mingomba copper project in Zambia “will be one of the world’s biggest high-grade large copper mines.”



“It is Kakula-scale in size and grade,” KoBold Metals President Josh Goldman said in a statement shared on the firm’s social media site X. The giant Kamoa-Kakula copper mine is situated just across Zambia’s northern border in the Democratic Republic of the Congo.



Ivanhoe Mines, a Canadian mining company founded by billionaire magnate Robert Friedland, owns nearly 40% of the Kamoa-Kakula copper mine. It has described the complex as “the world’s fastest-growing, highest-grade [and] lowest carbon major copper mine.” It produced nearly 400,000 metric tons of copper last year.



Zambia is Africa’s second-largest copper producer after the Democratic Republic of the Congo.



KoBold Metals says it uses artificial intelligence to create a “Google Maps” of the Earth’s crust to help find new deposits of copper, lithium, cobalt and nickel.



The Silicon Valley startup’s investors include U.S. venture capital firm Andreessen Horowitz, Norwegian energy giant Equinor, the world’s largest mining group BHP and Breakthrough Energy, a climate and technology fund founded by Bill Gates in 2015.



Some of Breakthrough Energy’s backers are Bridgewater Associates’ Ray Dalio, Virgin Group’s Richard Branson, Alibaba’s Jack Ma and Amazon’s Jeff Bezos.



KoBold Metals has said it aims to start producing copper at its mine in Zambia within 10 years, in a project that could have significant economic ramifications for the African nation.



“What they’ve discovered is quite phenomenal,” said Jito Kayumba, special assistant to the Zambian president on economic, investment and development affairs.



“There is a lot that we as Zambians can look forward to in terms of the announcement of their mine development which should be coming on stream,” Kayumba said in a video posted on social media site X on Monday.



As part of a rapid uptick in demand for critical minerals, the IEA has warned that the current global supply falls short of what is needed to transform the energy sector, given a relatively high geographical concentration of the production of many energy transition elements.



Most rare earth reserves are located in China, while Vietnam, Brazil and Russia are also major rare earths countries based on reserve volume.

107368870-1707125204692-gettyimages-1244583117-ZAMBIA_COPPER

Bill Gates and Jeff Bezos-backed startup discovers large-scale copper deposit in Zambia

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="509" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEH0I0PQ-OZABS.jpg" alt="" class="wp-image-452347" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEH0I0PQ-OZABS.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEH0I0PQ-OZABS-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEH0I0PQ-OZABS-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEH0I0PQ-OZABS-768x489.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">The logo of commodities trader Glencore is pictured in front of the company&#8217;s headquarters in Baar, Switzerland, November 20, 2012. REUTERS/Arnd Wiegmann/File Photo</figcaption></figure>



LUSAKA, Feb 2 (Reuters)&nbsp;&#8211;&nbsp;Zambia has agreed to restructure a $1.5 billion debt owed by Mopani Copper Mines to Glencore, which arose from its acquisition of Mopani in 2021, state-owned mining firm ZCCM-Investment Holdings (ZCCM-IH)&nbsp;ZCCM.LZ&nbsp;said on Friday.



Last November, Zambia picked the United Arab Emirates&#8217; International Resources Holdings (IRH) as the new strategic equity investor in Mopani, to take up a 51% stake in return for a $1.1 billion capital injection. IRH&#8217;s interest in Mopani will be held through its wholly-owned subsidiary, Delta Mining Ltd.



As part of the deal, IRH, a unit of Abu Dhabi&#8217;s most valuable listed company, International Holdings Company (IHC), will provide $400 million as a shareholder loan towards clearing Mopani&#8217;s debt. Of that, $300 million is earmarked for the Glencore debt and the remaining $100 million will be used to settle third-party letters of credit secured by Glencore for Mopani.



&#8220;The effect of this is that the gross debt owed by Mopani to Glencore &#8230; will be replaced by the above shareholder loan owed to Delta of up to $400 million, resulting in an overall net reduction in Mopani debt of over $1.2 billion,&#8221; ZCCM-IH said.



Glencore was not immediately available to comment.



Mopani and Glencore also agreed on a royalty agreement which will see the global commodities giant receiving an unspecified share of Mopani&#8217;s profit in the event that the copper price exceeds $12,000 per ton.



ZCCM-IH said &#8220;the relationship between Glencore and Mopani will be restructured&#8221; following the agreed settlements and &#8220;there shall be no indebtedness between Glencore and Mopani&#8221;.



IRH&#8217;s investment will provide funding to support Mopani&#8217;s target to raise its output to 200,000 tons of copper annually in the next three years, ZCCM-IH said.



The miner produced 72,694 metric tons of copper in 2022, down from 87,618 metric tons in 2021.



(Reporting by Chris Mfula; Editing by Nelson Banya and David Evans)

FILE PHOTO: The logo of commodities trader Glencore is pictured in front of the company’s headquarters in Baar

Zambia to restructure $1.5 bln Glencore debt with new Mopani investor

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-820x547.jpg" alt="" class="wp-image-420995" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">NAIROBI, KENYA &#8211; 2022/07/27: A Kenya Airways plane seen parked at the parking bay of the Jomo Kenyatta International Airport in Nairobi. (Photo by John Ochieng/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



NAIROBI, Jan 15 (Reuters)&nbsp;&#8211;&nbsp;Tanzania has withdrawn approval for Kenyan national carrier Kenya Airways&nbsp;KQNA.NR&nbsp;to operate flights between the Kenyan capital Nairobi and Dar es Salaam, Tanzania&#8217;s commercial capital, its civil aviation authority said on Monday.



Tanzania said the decision was taken in retaliation for Kenya&#8217;s denial of rights to Tanzania national carrier Air Tanzania to operate cargo flights between the two countries.



In a statement, Tanzania Civil Aviation Authority (TCAA) said it decided &#8220;to rescind the approvals for Kenya Airways (KQ) to operate passenger flights between Nairobi and Dar es Salaam&#8230; with effect from 22 January 2024.&#8221;



However, in separate statements posted on X platform late on Monday, the Kenyan and Tanzanian foreign ministers said both countries would work together to solve the issue within three days.



&#8220;We have jointly agreed that our respective Civil Aviation Authorities will work together to have the matter resolved amicably within the next three days. There should therefore be no cause for alarm,&#8221; Kenya&#8217;s foreign minister Musalia Mudavadi said.



Kenya Airways said it was aware of the ban and was engaging aviation authorities in both countries to find a solution to avoid flight disruptions between Nairobi and Dar es Salaam.



Kenya Airways is one of Africa&#8217;s largest airlines. Tanzania, where attractions include mountains and vast wildlife reserves that teem with game,&nbsp;draws more than a million tourists a year, making it one of its biggest markets.



The clash between Tanzania and Kenya adds to a growing number of trade and commercial disputes between members of the East African Community (EAC), a regional bloc that operates a customs union.



Kenya has previously complained about cheap products from neighbouring Uganda and blocked some, including milk and sugar, drawing protests from Kampala.



Landlocked Uganda has also taken Kenya to a regional court over a dispute related to the importation of petroleum products.



Although Air Tanzania is a small airline, in recent years authorities have been trying to expand its fleet, routes and operations to earn a bigger share of revenues from the region&#8217;s aviation business.



(Reporting by Elias Biryabarema, additional reporting by Bhargav Acharya, Writing by Elias Biryabarema; Editing by Christina Fincher and Barbara Lewis)

A Kenya Airways plane seen parked at the parking bay of the

Tanzania withdraws approval for Kenya Airways flights

<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>



JOHANNESBURG, Jan 9 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund&#8217;s executive board&nbsp;has completed the third review of Mozambique&#8217;s three-year loan program, allowing for an immediate disbursement to Maputo of about $60.7 million, the fund said.



The review brings total disbursements under the $456 million Extended Credit Facility program approved in 2022 to about $273 million, the IMF said late on Monday.



&#8220;Program performance has been satisfactory,&#8221; it said in a statement, adding that inflationary pressures had declined sharply and the economic recovery is accelerating.



The three-year arrangement is expected to support economic recovery and policies to reduce public debt and financing vulnerabilities, while creating space for public investments in human capital, climate adaptation and infrastructure.



(Reporting by Anait Miridzhanian; Editing by Olivia Kumwenda-Mtambo and Kim Coghill)

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

IMF approves disbursement of $60.7 million to Mozambique

<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>



NAIROBI, Dec 21 (Reuters) &#8211; The World Bank has approved two separate loans worth about $1.14 billion combined to Tanzania to support its private sector, develop its commercial capital and fight effects of climate change, the bank said.



The first tranche of financing worth $750 million &#8211; called Development Policy Financing &#8211; is meant to finance reforms such as making business licensing faster and also broaden access to cheap credit to accelerate private sector growth, the bank said in a statement late on Wednesday.



The second lot of $385 million will go towards financing infrastructure and building institutions that will help Tanzania&#8217;s commercial capital Dar es Salaam to cope with the effects of climate change, the bank said.



&#8220;Tanzania remains very vulnerable to climate change and is limited in its preparedness to adapt and respond to the adverse impacts,&#8221; Nathan Belete, World Bank country director for Malawi, Zambia, Zimbabwe and Tanzania, was quoted as saying in the statement.



Out of the east African country&#8217;s 44.39 trillion Tanzanian shillings budget for 2023/24 (July-June) the government expects to borrow 2.1 trillion shillings from external sources.



World Bank&#8217;s loans typically carry low to zero interest with long repayment periods. (Reporting by George Obulutsa Writing by Elias Buryabarema Editing by Bhargav Acharya and Mark Potter)

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

World Bank approves new Tanzania loans worth $1.14 bln

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="592" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1234493050-1-820x592.jpg" alt="" class="wp-image-423201" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1234493050-1-820x592.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1234493050-1-300x217.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1234493050-1-125x90.jpg 125w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1234493050-1-768x554.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1234493050-1-1536x1109.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1234493050-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">General view of the flag of Kenya at Shiokaze Park on the fourteenth day of the Tokyo 2020 Olympic Games in Japan. Picture date: Friday August 6, 2021. (Photo by Mike Egerton/PA Images via Getty Images)</figcaption></figure>



NAIROBI, Dec 20 (Reuters) &#8211; Kenya&#8217;s economy is likely to expand by 4.5%-5.2% in 2024 from an estimated 5% this year, the World Bank said on Wednesday.



The East African nation has been growing at one of the fastest annual paces on the continent in recent years but a heavy debt load and a weakening currency have emerged as risks.



&#8220;Debt related vulnerabilities persist, and rising debt costs constrain government&#8217;s ability to address development challenges,&#8221; the bank said in a statement on its latest Kenya economic update report.



Policymakers will need to balance between the short-term macroeconomic challenges and longer-term growth considerations, said Naomi Mathenge, a senior economist at the World Bank. (Reporting by Duncan Miriri; Editing by Jacqueline Wong)

Tokyo 2020 Olympic Games – Day Fourteen

Kenya’s economy to grow 4.5%-5.2% next year, World Bank says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="463" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/NENDO62V3ZLP5MPGSLW3PPS3G4.jpg" alt="" class="wp-image-437940" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/NENDO62V3ZLP5MPGSLW3PPS3G4.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/NENDO62V3ZLP5MPGSLW3PPS3G4-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/NENDO62V3ZLP5MPGSLW3PPS3G4-142x90.jpg 142w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">A general picture shows the skyline of Tanzania&#8217;s port city of Dar es Salaam, File. REUTERS/Andrew Emmanuel</figcaption></figure>



NAIROBI, Dec 19 (Reuters)&nbsp;&#8211;&nbsp;Tanzania&#8217;s economy is expected to grow by about 5.5% in 2024, up from about 5% in 2023,&nbsp;but it faces risks from external geopolitical factors, its&nbsp;finance minister and central bank governor said in a letter to the International Monetary Fund.



In June, Finance Minister Mwigulu Nchemba said the East African nation&#8217;s economy was forecast to grow 5.2% this year.



&#8220;Intensification of geopolitical conflicts, increased commodity price volatility, abrupt global slowdown or recession, and natural disasters related to climate change could weigh negatively on the near-term outlook of the Tanzanian economy,&#8221; Nchemba and Central Bank Governor Emmanuel Tutuba said in the letter, made public late on Monday.



Nchemba and Tutuba said in the Nov. 27 letter that the central bank had sold $353.9 million on the foreign exchange market between July and October and had reduced the frequency and amounts of interventions.



&#8220;Going forward, forex interventions will be limited to addressing disorderly market conditions while the exchange rate will be allowed to be flexible to cushion the economy against external shocks,&#8221; Nchemba and Tutuba said.



Tanzania&#8217;s economy largely relies on tourism, mining, agriculture and manufacturing.



(Reporting by George Obulutsa; Editing by Edmund Klamann and Gerry Doyle)

NENDO62V3ZLP5MPGSLW3PPS3G4

Tanzania GDP to grow about 5.5% in 2024 – finmin, cenbank gov

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/3HWZWVIRAVPBBEMBWDXTXH6RCE-1-820x542.jpg" alt="" class="wp-image-437936" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/3HWZWVIRAVPBBEMBWDXTXH6RCE-1-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/3HWZWVIRAVPBBEMBWDXTXH6RCE-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/3HWZWVIRAVPBBEMBWDXTXH6RCE-1-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/3HWZWVIRAVPBBEMBWDXTXH6RCE-1-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/3HWZWVIRAVPBBEMBWDXTXH6RCE-1-1536x1016.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/3HWZWVIRAVPBBEMBWDXTXH6RCE-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker prepares a garment at the the Utexrwa garment factory in Kigali, Rwanda April 17, 2018. REUTERS/Jean Bizimana</figcaption></figure>



NAIROBI, Dec 19 (Reuters)&nbsp;&#8211;&nbsp;Rwanda&#8217;s economy is expected to grow 6.6% in 2024, up from this year&#8217;s figure of 6.2%, the finance minister and central bank governor told the International Monetary Fund in a letter.



In February, Finance Minister Uzziel Ndagijimana had forecast economic growth of about 7.5% for the East African country in 2024 and 2025. The economy grew 8.2% in 2022.



&#8220;We foresee a temporary softening of economic growth, driven by needed tighter fiscal and monetary policies,&#8221; Ndagijimana and Central Bank Governor John Rwangombwa said in the Nov. 29 letter, made public late on Monday.



&#8220;On the demand side, private consumption and investment are expected to be the main growth drivers in the medium term as



fiscal consolidation ensues.&#8221;



In November, Rwanda&#8217;s central bank held its key lending rate at 7.5% RWREPO=ECI, saying it saw inflation falling towards its target range of 2% to 8% by year-end.



External factors could cloud the outlook for growth, however, Ndagijimana and Rwangombwa said.



&#8220;A further deepening of geopolitical fragmentation, another spike in global energy, food, and fertiliser prices, or a steeper decline in trading partners growth would weigh on the outlook,&#8221; they said.



(Reporting by George Obulutsa; Editing by Jacqueline Wong and Clarence Fernandez)

A worker prepares a garment at the the Utexrwa garment factory in Kigali

Rwanda says GDP growth expected to rise in 2024, still below 2022 figure

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM-820x547.jpg" alt="" class="wp-image-421437" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium, September 28, 2022. REUTERS/Yves Herman</figcaption></figure>



NAIROBI, Dec 18 (Reuters)&nbsp;&#8211;&nbsp;Kenya and the European Union moved closer to sealing an Economic Partnership Agreement that will grant the East African nation&#8217;s exports duty-free status and unlimited access to the bloc, officials said on Monday.



Both sides had initialled a draft deal in June after seven months of negotiations. The EU is one of Kenya&#8217;s biggest export markets.



The deal was approved by the European Union Council last week. It will now be presented to the parliaments of both sides for ratification before it comes into force.



&#8220;Today&#8217;s agreement heralds a new dawn where Kenyan goods gain immediate duty- and quota-free access to the European market,&#8221; Rebecca Miano, Kenya&#8217;s trade minister, said before signing the agreement at a ceremony in Nairobi.



&#8220;Over time, European goods will also gain preferential access to the Kenyan market.&#8221;



Kenya is a major exporter of tea, coffee, flowers, fruits and vegetables to the EU, which accounts for 21% of its overall exports. It buys machinery, pharmaceuticals and other chemicals from the EU.



Bilateral trade between the two stood at a total of 3.3 billion euros in 2022, EU and Kenya government data showed, making it the East African nation&#8217;s second largest trade partner.



Kenya signed an initial trade deal with the EU in 2016, alongside its partners in the then six member nation East African Community trade bloc, but it was not signed by most of the EAC countries and therefore did not fully come into effect.



The EAC has since expanded to eight member nations, who will all be welcome to join the new deal, Kenya&#8217;s President William Ruto said.



&#8220;This agreement that we are signing today leaves the door open, and I say, wide open, for our EAC partners to join,&#8221; President William Ruto said at the ceremony.



While the other EAC members are classified as least developed countries, meaning their exports could continue to get access without the deal, Kenya is middle income and therefore had to seek a stand-alone arrangement.



&#8220;We encourage the other Eastern African countries to join,&#8221; EU Commission President Ursula von der Leyen said.



(Reporting by George Obulutsa; Editing by Duncan Miriri and Michael Perry)

TP5R6HBNPZIGTOANNA35PFUUUM

Kenya, EU advance economic partnership agreement to boost trade

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="518" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-820x518.jpg" alt="" class="wp-image-435757" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-820x518.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-768x485.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-1536x971.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s Finance Minister Njuguna Ndung&#8217;u presents the Government Budget for the 2023/24 fiscal year inside the Parliament building in Nairobi, Kenya June 15, 2023. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, Dec 13 (Reuters)&nbsp;&#8211;&nbsp;Kenya is searching for ways to bring its budget deficit for this financial year close to its original target after a slump in its currency forced its upward revision, a finance ministry official said on Wednesday.



The East African nation&#8217;s government revised its spending plans for the 2023/24 financial year to June 2024 in late October, after currency weakening increased foreign debt repayments by 1% of gross domestic product.



In the revised budget, the fiscal deficit was increased to 5.5% of GDP from the initial 4.4%, eliciting concerns about the government&#8217;s ability to stabilise public debt.



&#8220;We are still looking around to see how we can bring this 5.5 to 4.7% as a minimum,&#8221; Musa Kathanje, the director macro and fiscal affairs at the ministry, told an event convened to prepare the budget for the 2024/25 financial year.



Kenya&#8217;s central bank raised its benchmark lending rate by 200 basis points to its highest level in more than a decade last week, to try to stabilise the exchange rate.



The tighter monetary stance will work, Finance Minister Njuguna Ndung&#8217;u told the same budget preparation forum, helping to stabilise the macroeconomic fundamentals.



Officials also want to bring down the inflation rate, which has been stuck at close to 7% for the last three months, to around 5%.



The government expects the economy to grow by 5.5% this year and by a similar rate next year, finance ministry officials said.



The economy grew 4.8% in 2022.



(Reporting by Duncan Miriri; Editing by George Obulutsa and Tomasz Janowski)

FILE PHOTO: Kenya’s Finance Minister Njuguna Ndung’u presents the Government Budget for the 2023/24 fiscal year in Nairobi

Kenya eyes return to lower deficit this year, Treasury official says

<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>



BLANTYRE, Dec 13 (Reuters)&nbsp;&#8211;&nbsp;The World Bank has approved $137 million of budget support for Malawi, with an immediate disbursement of $80 million, the bank said in a statement.



The funding will help the southern African country enhance fiscal sustainability, stimulate private sector-led growth, and increase resilience to shocks, the World Bank said.



After the initial $80 million, the remaining $57 million can be triggered in the event of a crisis, it added.



The support comes as Malawi battles chronic foreign-currency shortages that have led to a lack of fuel, medicines and fertilisers.



Malawi devalued its kwacha currency by 30% against the dollar last month.



&#8220;The Bank is now able to respond with a substantial budget support operation that supports an ongoing program of reforms,&#8221; said Nathan Belete, World Bank country director for Malawi, Zambia, Zimbabwe and Tanzania.



The International Monetary Fund, which approved a loan of about $178 million to Malawi in November, has said the country needs almost $1 billion in debt relief by 2027.



(Reporting by Frank Phiri; Writing by Bhargav Acharya; Editing by Alexander Winning and Alison Williams)

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

World Bank approves $137 million budget support for Malawi

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/CF2RV5HLG5PE5DNAIYXHUWLNVE-820x547.jpg" alt="" class="wp-image-435417" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/CF2RV5HLG5PE5DNAIYXHUWLNVE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/CF2RV5HLG5PE5DNAIYXHUWLNVE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/CF2RV5HLG5PE5DNAIYXHUWLNVE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/CF2RV5HLG5PE5DNAIYXHUWLNVE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/CF2RV5HLG5PE5DNAIYXHUWLNVE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/CF2RV5HLG5PE5DNAIYXHUWLNVE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s President William Ruto looks on during his swearing-in ceremony at Moi International Stadium in Nairobi, Kenya September 13, 2022. REUTERS/Baz Ratner</figcaption></figure>



NAIROBI, Dec 12 (Reuters)&nbsp;&#8211;&nbsp;Visitors to Kenya from across the world will no longer require a visa from January, President William Ruto said on Tuesday.



Ruto said his government had developed a digital platform to ensure all visitors would receive an electronic travel authorisation in advance, instead of needing to apply for a visa.



&#8220;It shall no longer be necessary for any person from any corner of the globe to carry the burden of applying for a visa to come to Kenya,&#8221; he said in a speech in the capital Nairobi at an event to mark 60 years of independence from Britain.



Ruto has long advocated for visa-free travel within the African continent.



At a conference in the Republic of Congo in October he said people from African countries would not require a visa to visit Kenya by the end of 2023.



The tourism industry plays a vital role in Kenya&#8217;s economy, offering beach holidays along its Indian Ocean coastline and wildlife safaris inland.



&#8220;Kenya has a simple message to humanity: Welcome Home!&#8221; he said.



(Reporting by Duncan Miriri; Writing by Bhargav Acharya; Editing by Alexander Winning, Kirsten Donovan)

Kenya’s President William Ruto’s swearing-in ceremony in Nairobi

Kenya to scrap visas for all visitors, president 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/2023/12/E4TFRXPLMNPNHGKN5TWHR7M4L4-820x547.jpg" alt="" class="wp-image-435311" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/E4TFRXPLMNPNHGKN5TWHR7M4L4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/E4TFRXPLMNPNHGKN5TWHR7M4L4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/E4TFRXPLMNPNHGKN5TWHR7M4L4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/E4TFRXPLMNPNHGKN5TWHR7M4L4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/E4TFRXPLMNPNHGKN5TWHR7M4L4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/E4TFRXPLMNPNHGKN5TWHR7M4L4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Prime Minister Rishi Sunak speaks during a press conference in the Downing Street Briefing Room, in London, Britain December 7, 2023. James Manning/Pool via REUTERS/File Photo</figcaption></figure>



LONDON, Dec 12 (Reuters)&nbsp;&#8211;&nbsp;British Prime Minister Rishi Sunak faces the biggest parliamentary test of his premiership on Tuesday when lawmakers vote on his divisive plan to send asylum seekers to live in Rwanda.



The UK Supreme Court ruled last month that Rwanda was an unsafe place to send those arriving in small boats on England&#8217;s southern coast, and that the policy would breach British and international law.



In response, Sunak has agreed a new treaty with the east African country and brought forward emergency legislation to override domestic and international human rights law.



The move has deeply divided his party, alienating both moderates, who are worried about Britain breaching its human rights obligations, and right-wing politicians, who contend it does not go far enough.



&#8220;We believe the best solution here is we should pause the legislation today, we should come back with a new bill,&#8221; one Conservative lawmaker, Simon Clarke, told BBC Radio.



Lawmakers on the right of the party, who have not said whether they will abstain or vote against the government, believe the bill will still allow asylum seekers to appeal against deportation.



The government&#8217;s legal advice said access to courts formed part of Britain&#8217;s tradition of liberty and justice, available even in wartime.



Governments around the world are grappling with rising migration levels, and some are following the British plan to see if it will work. French lawmakers rejected their immigration bill last night, in a blow to President Emmanuel Macron.



<h2 class="wp-block-heading" id="h-crucial-vote">CRUCIAL VOTE</h2>



The British parliament will hold the first vote on the law on Tuesday evening. It would only take about 30 Conservative members of parliament to vote with opposition parties to defeat the bill.



Even if it passes, Sunak is likely to face attempts to toughen it up with amendments at later stages, as well as opposition in the House of Lords, the unelected upper chamber.



Defeat would be a huge embarrassment for Sunak &#8211; no government has lost a vote at this early stage in the parliamentary process since 1986 &#8211; and it would severely weaken his authority over his party.



The battle has echoes of parliamentary showdowns over Brexit from 2017-19, when former Prime Minister Theresa May suffered repeated defeats following rebellions by large numbers of Conservative politicians, eventually leading to her exit.



Sunak, who replaced Liz Truss as prime minister last year after she was forced out, has made stopping boat-arrivals one of his biggest priorities. About 29,000 asylum seekers have arrived this year, down around one-third compared with last year.



But they remain a highly visible symbol of the government&#8217;s failure to control Britain&#8217;s borders &#8211; a key promise of campaigners for Brexit.



The government has already paid 240 million pounds ($301 million) to Rwanda even though it only has the capacity to settle hundreds of refugees a year from Britain and no one has yet been sent to the country.



In a day of political drama in Westminster on Monday, lawmakers from different factions of the governing Conservative Party held meetings throughout the day to decide how to vote.



In a boost late on Monday, a centrist group of lawmakers in the One Nation faction recommended that its members back the bill but warned that they would not accept any amendments that toughened the legislation at a later stage.



Sunak hosted some lawmakers on the party&#8217;s right wing for breakfast on Tuesday in a last ditch attempt to convince them to back the bill.



($1 = 0.7971 pounds)



(Additional writing by Kate Holton, Editing by Rosalba O&#8217;Brien and Christina Fincher)

FILE PHOTO: Rishi Sunak attends a press conference in the Downing Street Briefing Room

Rishi Sunak faces tense UK parliamentary showdown over Rwanda asylum plan

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="575" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/A52ZVG2EGRIMLHKQMSGX33WHYI-1-820x575.jpg" alt="" class="wp-image-435002" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/A52ZVG2EGRIMLHKQMSGX33WHYI-1-820x575.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/A52ZVG2EGRIMLHKQMSGX33WHYI-1-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/A52ZVG2EGRIMLHKQMSGX33WHYI-1-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/A52ZVG2EGRIMLHKQMSGX33WHYI-1-768x539.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/A52ZVG2EGRIMLHKQMSGX33WHYI-1-1536x1078.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/A52ZVG2EGRIMLHKQMSGX33WHYI-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view shows the Nyayo house building at the corner of Uhuru Highway and Kenyatta Avenue in Nairobi, Kenya February 4, 2020. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, Dec 11 (Reuters)&nbsp;&#8211;&nbsp;Kenya will consider small-scale, scheduled power outages, technically known as load-shedding, to contain demand surges that have been blamed for frequent national blackouts this year, its energy minister said on Monday.



The East African nation suffered a country-wide blackout on Sunday evening, which lasted several hours, angering many people because it is the latest in at least four that have hit this year so far.



Davis Chirchir, the energy minister, blamed an overload on a transmission line in western Kenya for the latest outage, and pledged some short-term actions to remedy the situation.



&#8220;We will be scheduling some minimal load-shedding,&#8221; he told a news conference, referring to particular lines such as the one that caused Sunday&#8217;s blackout.



The line, which is designed to carry 80 megawatts of electricity, was carrying 149 megawatts when it tripped and caused the entire grid to go out, Chirchir said.



&#8220;The gist of it is lack of investment in the network for a long time,&#8221; the minister said, citing increased connections of households to electricity and the establishment of new industries that require power, which were not matched by grid upgrades.



The government will build a new transmission line in the west of the country, Chirchir said, to increase the grid&#8217;s capacity and prevent the system from being tripped up by system overloads.



The new line will be financed by cash from South Korea and the African Development Bank, the minister said, without giving a figure.



The government is also investing in electricity generation to boost reserves, he said.



Sunday&#8217;s blackout frustrated many Kenyans, who expressed their anger in online platforms including Facebook.



The blackout also plunged two terminals at the main airport in Nairobi into darkness after the stand-by generators failed to kick in automatically.



(Reporting by Duncan Miriri, Editing by Louise Heavens)

A view shows the Nyayo house building at the corner of Uhuru Highway and Kenyatta Avenue in Nairobi

Kenya eyes localised load-shedding to contain national blackouts

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="538" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GIP2AWDTGVOW3LFUFHTPXIMOFQ-820x538.jpg" alt="" class="wp-image-434968" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GIP2AWDTGVOW3LFUFHTPXIMOFQ-820x538.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GIP2AWDTGVOW3LFUFHTPXIMOFQ-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GIP2AWDTGVOW3LFUFHTPXIMOFQ-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GIP2AWDTGVOW3LFUFHTPXIMOFQ-768x504.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GIP2AWDTGVOW3LFUFHTPXIMOFQ-1536x1007.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GIP2AWDTGVOW3LFUFHTPXIMOFQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A reflection from the windows show Kenya Airways planes parked at terminal within the Jomo Kenyatta International Airport near Nairobi, Kenya March 7, 2023. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Dec 11 (Reuters)&nbsp;&#8211;&nbsp;Kenya Airways&nbsp;KQNA.NR&nbsp;has told its customers to be prepared for potential disruptions to its flights schedule during the busy&nbsp;Christmas&nbsp;holiday season due to shortages of spare parts.



The carrier, one of the biggest in Africa, said the lack of parts, which is affecting the global supply chain, would disrupt flights for about two weeks.



&#8220;These challenges are leading to extended ground time of our aircraft for maintenance,&#8221; it said in a statement seen by Reuters on Monday. &#8220;This may also lead to grounding of one or more of our aircraft.&#8221;



The airline first flagged the problems it is grappling with due to spare parts shortages in January this year. At the time, it attributed the shortages to the Ukraine war, which crippled the Russian supply chain for global aviation.



Supply of titanium from Russia, a key raw material for the aviation industry crucial to the maintenance of planes, had been interrupted by the conflict, the company said at the time.



Kenya Airways, whose strategy hinges on connecting African travellers to the world and vice-versa through its Nairobi hub, operates a fleet of Boeing and Embraer planes.



(Reporting by Duncan Miriri, and Louise Heavens)

East Africa

Uganda says public debt stock to hit nearly 50% of GDP by June

Kenya central bank governor: there is scope to support shilling

Bill Gates and Jeff Bezos-backed startup discovers large-scale copper deposit in Zambia

Zambia to restructure $1.5 bln Glencore debt with new Mopani investor

Tanzania withdraws approval for Kenya Airways flights

IMF approves disbursement of $60.7 million to Mozambique

World Bank approves new Tanzania loans worth $1.14 bln

Kenya’s economy to grow 4.5%-5.2% next year, World Bank says

Tanzania GDP to grow about 5.5% in 2024 – finmin, cenbank gov

Rwanda says GDP growth expected to rise in 2024, still below 2022 figure

Kenya, EU advance economic partnership agreement to boost trade

Kenya eyes return to lower deficit this year, Treasury official says

World Bank approves $137 million budget support for Malawi

Kenya to scrap visas for all visitors, president says

Rishi Sunak faces tense UK parliamentary showdown over Rwanda asylum plan

Kenya eyes localised load-shedding to contain national blackouts

Kenya Airways warns of disruptions in holiday season due to spare parts shortages

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East Africa

Uganda says public debt stock to hit nearly 50% of GDP by June

Kenya central bank governor: there is scope to support shilling

Bill Gates and Jeff Bezos-backed startup discovers large-scale copper deposit in Zambia

Zambia to restructure $1.5 bln Glencore debt with new Mopani investor

Tanzania withdraws approval for Kenya Airways flights

IMF approves disbursement of $60.7 million to Mozambique

World Bank approves new Tanzania loans worth $1.14 bln

Kenya’s economy to grow 4.5%-5.2% next year, World Bank says

Tanzania GDP to grow about 5.5% in 2024 – finmin, cenbank gov

Rwanda says GDP growth expected to rise in 2024, still below 2022 figure

Kenya, EU advance economic partnership agreement to boost trade

Kenya eyes return to lower deficit this year, Treasury official says

World Bank approves $137 million budget support for Malawi

Kenya to scrap visas for all visitors, president says

Rishi Sunak faces tense UK parliamentary showdown over Rwanda asylum plan

Kenya eyes localised load-shedding to contain national blackouts

Kenya Airways warns of disruptions in holiday season due to spare parts shortages

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