<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Y2QBXNDLWZPH5GNMQK3PGYN2TA-820x461.jpg" alt="" class="wp-image-424560" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Y2QBXNDLWZPH5GNMQK3PGYN2TA-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Y2QBXNDLWZPH5GNMQK3PGYN2TA-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Y2QBXNDLWZPH5GNMQK3PGYN2TA-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Y2QBXNDLWZPH5GNMQK3PGYN2TA-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Y2QBXNDLWZPH5GNMQK3PGYN2TA-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Y2QBXNDLWZPH5GNMQK3PGYN2TA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Drone footage shows birds in the foreground as clouds of black smoke billow over Bahri, also known as Khartoum North, Sudan, in this May 1, 2023 video obtained by REUTERS</figcaption></figure>



CAIRO, Dec 10 (Reuters) &#8211; An African regional body involved in efforts to mediate over the war in Sudan says it has secured a commitment from warring parties to implement a ceasefire and to hold a political dialogue aimed at resolving the conflict.



There was no immediate comment from Sudan&#8217;s army or the paramilitary Rapid Support Forces (RSF), which has been locked since mid-April in a conflict that has devastated the capital Khartoum and triggered waves of ethnic killings in Darfur despite several diplomatic efforts to halt the fighting.



Eyewitnesses reported blasts at the major Al-Jaili oil refinery on the outskirts of Khartoum on Sunday, while both sides said there had been casualties when a Red Cross convoy came under fire in the capital.



At talks on Saturday in Djibouti, the current chair of the Intergovernmental Authority on Development (IGAD), Sudan&#8217;s army chief Abdel Fattah al-Burhan, agreed to a one-on-one meeting with RSF commander Mohamed Hamdan Dagalo, an IGAD statement said.



In a phone call, Dagalo, widely known as Hemedti, also agreed to the ceasefire proposal and a meeting with Burhan, the statement said.



Both Hemedti and Burhan had &#8220;accepted the principle of meeting within 15 days in order to pave the way for a series of confidence-building measures between the two parties that lead to the launch of a political process,&#8221; said Alexis Mohammed, adviser to Djibouti&#8217;s president.



Earlier, in an address the Djibouti meeting, Burhan accused the RSF of &#8220;barbaric attacks&#8221; but said the army had not closed the door on finding a peaceful solution.



Hemedti, whose whereabouts are unknown, addressed the IGAD meeting remotely, blaming the outbreak of the war on loyalists of former president Omar al-Bashir who are powerful within the army. He called for reform of the army and the formation of a civilian government.



The war between the army and the RSF erupted over an internationally backed plan to merge the paramilitary force into the army and launch a transition towards elections.



The army and the RSF had shared power after Bashir was toppled during a popular uprising in 2019. Before they came to blows, they jointly staged a coup in 2021 that upended efforts to steer Sudan towards democracy.



On Friday, the United States said it had formally determined that both sides in the conflict had committed war crimes.



In response, the RSF issued a statement on Sunday denying that it had carried out ethnic cleansing in Darfur or was responsible for sexual violence. The army has also denied committing war crimes.



Indirect talks between the army and the RSF brokered by Saudi Arabia and the United States that have stumbled several times faltered again last week as both sides pressed on with their military campaigns. (Reporting by Giulia Paravicini in Nairobi and Khalid Abdelaziz in Dubai; Writing by Aidan Lewis; Editing by Nick Macfie and Ros Russell)

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African mediators claim progress in efforts to end Sudan’s war

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="572" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/BCA5C56QAJM4DAU356MWENYCQU-1-820x572.jpg" alt="" class="wp-image-433696" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/BCA5C56QAJM4DAU356MWENYCQU-1-820x572.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/BCA5C56QAJM4DAU356MWENYCQU-1-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/BCA5C56QAJM4DAU356MWENYCQU-1-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/BCA5C56QAJM4DAU356MWENYCQU-1-768x536.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/BCA5C56QAJM4DAU356MWENYCQU-1-1536x1071.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/BCA5C56QAJM4DAU356MWENYCQU-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The logo of Meta Platforms&#8217; business group is seen in Brussels, Belgium December 6, 2022. REUTERS/Yves Herman//File Photo</figcaption></figure>



NAIROBI, Dec 7 (Reuters)&nbsp;&#8211;&nbsp;A Kenyan judge on Thursday found Facebook&#8217;s parent company Meta&nbsp;META.O&nbsp;was not in contempt of court for failing to pay dozens of content moderators that a contractor laid off.



Labour judge Mathews Nduma Nderi said Meta did not &#8220;deliberately and contemptuously&#8221; breach a court order requiring it to pay the wages of hundreds of Facebook content moderators.



&#8220;They did various things which they thought were lawful in trying to deal with their situation but we did not find that what they did amounted to contempt,&#8221; Nderi said.



Earlier this year, 184 moderators sued Meta and two contractors after they said they lost their jobs with one of the firms, Sama, for organising a union.



The plaintiffs alleged they were then blacklisted from applying for the same roles at the second firm, Majorel, after Facebook changed contractors. Out-of-court settlement talks collapsed in October.



A Meta spokesman declined to comment. Sama and Majorel did not immediately respond to requests for comment on Thursday.



Meta has previously responded to allegations of a poor working environment in Kenya by saying it requires partners to provide industry-leading conditions.



Sama has said it has always followed Kenyan law and provided mental health services to its employees. Majorel has said it does not comment on pending or active litigation.



Nderi accepted a request by the plaintiffs&#8217; lawyer Merci Mutemi to be given 45 days to amend the contempt of court petition, and said that unless the matter was resolved out of court, the case would be given priority for the court to determine its merits.



British tech rights group Foxglove, which is supporting the plaintiffs, said it was eager to bring the case to trial.



&#8220;We remain confident of our case overall, as we have prevailed on every substantive point so far,&#8221; Foxglove director Martha Dark said in a statement to Reuters. &#8220;The most important ruling remains the one we won in June: Meta can no longer hide behind outsourcers to excuse the exploitation and abuse of its content moderators.&#8221;



(Reporting by Humphrey Malalo and Hereward Holland; Writing by Hereward Holland; Editing by Aaron Ross and Barbara Lewis)

BCA5C56QAJM4DAU356MWENYCQU-1

Kenya judge finds Meta is not in contempt of court

<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/HAJQ7ZUCQNOWVDEROQNZ6IAAUA-1-820x547.jpg" alt="" class="wp-image-433674" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/HAJQ7ZUCQNOWVDEROQNZ6IAAUA-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/HAJQ7ZUCQNOWVDEROQNZ6IAAUA-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/HAJQ7ZUCQNOWVDEROQNZ6IAAUA-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/HAJQ7ZUCQNOWVDEROQNZ6IAAUA-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/HAJQ7ZUCQNOWVDEROQNZ6IAAUA-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/HAJQ7ZUCQNOWVDEROQNZ6IAAUA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via Reuters</figcaption></figure>



LONDON, Dec 7 (Reuters) &#8211; Britain&#8217;s former interior minister Suella Braverman said on Thursday the government&#8217;s proposed Rwanda legislation, part of a scheme to try to send thousands of asylum seekers to the East African country, will not work.



Rishi Sunak is facing a revolt from the right-wing of his Conservative Party over efforts to deport migrants to Rwanda, with immigration minister Robert Jenrick quitting on Wednesday after the prime minister set out new draft legislation.



The new bill will instruct judges to ignore some sections of the Human Rights Act (HRA) and provisions of domestic or international law that might deem that Rwanda was not a safe country to send asylum seekers to, though appeals by people based on specific circumstances would still be permitted.



Braverman, Jenrick and their allies says that does not go far enough, with some wanting Britain to leave the European Convention on Human Rights altogether.



&#8220;I&#8217;m very concerned that the bill on the table will allow a merry-go-round of legal claims and litigation,&#8221; Braverman told BBC Radio.



&#8220;The reality is, and the solid truth is, that it won&#8217;t work and it will not stop the boats.&#8221;



The government says the Rwanda scheme would deter migrants from paying people smugglers to ferry them from Europe across the Channel to Britain.



It has been forced to come up with a two pronged strategy to relaunch the Rwanda policy after the Supreme Court ruled it would violate international human rights laws enshrined in domestic legislation.



The government signed a new treaty with Rwanda earlier this week.



(Reporting by Muvija M, writing by Sarah Young; Editing by Kate Holton and Kylie MacLellan)

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UK’s new Rwanda bill ‘will not stop the boats’ – former minister Braverman

<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/RJD43BCCGRIX7PC3NVPMNUUOWA-1-820x547.jpg" alt="" class="wp-image-433635" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/RJD43BCCGRIX7PC3NVPMNUUOWA-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/RJD43BCCGRIX7PC3NVPMNUUOWA-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/RJD43BCCGRIX7PC3NVPMNUUOWA-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/RJD43BCCGRIX7PC3NVPMNUUOWA-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/RJD43BCCGRIX7PC3NVPMNUUOWA-1-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/RJD43BCCGRIX7PC3NVPMNUUOWA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Wavel Ramkalawan President of Seychelles addresses the 78th United Nations General Assembly at U.N. headquarters in New York, U.S., September 20, 2023. REUTERS/Caitlin Ochs/ File Photo </figcaption></figure>



NAIROBI, Dec 7 (Reuters)&nbsp;&#8211;&nbsp;Seychelles President Wavel Ramkalawan declared a state of emergency on Thursday after a blast at an explosives depot and heavy rains damaged an industrial zone and surrounding areas.



&#8220;Everyone is being asked to stay at home. All schools will be closed. Only workers in the essential services and persons travelling will be allowed free movement,&#8221; Ramkalwan&#8217;s office said in a statement.



The explosion had caused &#8220;massive damage&#8221; to the Providence Industrial zone and surrounding areas on the main island of Mahe, the statement said, while flooding due to rains had resulted in &#8220;major destruction&#8221;.



The statement gave no further details.



The Seychelles is made up of 115 islands and is the least populous country in Africa with about 100,000 people.



(Reporting by Aaron Ross; Editing by Tom Hogue)

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Seychelles declares state of emergency after explosion, flooding

<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, Dec 6 (Reuters)&nbsp;&#8211;&nbsp;Kenya is likely get a fresh $1 billion loan from China in this financial year and it could use the cash to partly settle a Eurobond that is maturing next June, if it comes in time, the governor of the central bank said on Wednesday.



The loan was first announced by Kenyan authorities in October, marking a shift in the government of President William Ruto&#8217;s stance on Chinese lending, after criticising the loans during last year&#8217;s election campaign.



&#8220;The National Treasury is engaged with the Chinese government,&#8221; Kamau Thugge, the central banker, told a press conference.



&#8220;The timing is yet to be ascertained. Were we to get it before June 2024, it could be used to address the maturity of the Eurobond.&#8221;



Sovereign bond investors have been watching closely to see how the East African nation will handle the maturing $2 billion hard currency bond.



It struck a staff agreement with the International Monetary Fund last month, which increased the amount it can access under its current borrowing programme with the Washington-based fund.



It plans to use the external financing, including expected disbursements from the World Bank and the regional Trade and Development Bank, to pay the bondholders.



Policymakers are prepared to take &#8220;stronger action&#8221; to ensure the foreign exchange rate has stabilised, Thugge said, a day after the Monetary Policy Committee unexpectedly raised the benchmark lending rate by 2 percentage points.



&#8220;A shilling that continues to depreciate almost in a straight line does not indicate macroeconomic stability,&#8221; he said, referring to the currency.



The magnitude of this week&#8217;s hike means that policymakers could be reluctant to increase borrowing rates further, said a trader with a Nairobi commercial bank.



&#8220;They did it in one bitter pill,&#8221; said the trader, adding that the hike is likely to further fuel economic pain.



The governor defended Tuesday&#8217;s decision, saying the central bank&#8217;s stress tests showed higher interest rates would not have a &#8220;significant impact&#8221; on the financial sector, an assurance that was dismissed by some market participants.



(Reporting by Duncan Miriri; Editing by Kirsten Donovan)

XRWAJLZOAVK3DL2J5JMRWBBQ6A

Kenya central banker sees $1 bln China loan soon, vows firm FX action

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI-820x429.jpg" alt="" class="wp-image-433367" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/PF3JNZQUQ5M65OD7XXTYURHSSI.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Construction work is seen opposite a statue of Samora Machel, the first President of Mozambique, and the Cathedral of the Immaculate Conception, a Roman Catholic cathedral in downtown Maputo, Mozambique, September 1, 2019. REUTERS/Siphiwe Sibeko</figcaption></figure>



MAPUTO, Dec 6 (Reuters)&nbsp;&#8211;&nbsp;Mozambique sees economic growth picking up to 5.5% next year but its budget deficit widening to 10.4% of gross domestic product (GDP) driven by debt service, public sector wage reforms and election spending, its finance minister said on Wednesday.



Those forecasts compare with 2023 targets of 5.0% growth and a budget deficit of 8.7% of GDP.



Finance minister Max Tonela gave the latest projections in a 2024 budget speech, saying next year&#8217;s deficit would be financed by external grants amounting to 5.4% of GDP, foreign loans of 1.9% of GDP and domestic borrowing of 3.0% of GDP.



2024 growth would be driven by extractive industries, agriculture and finance, among other sectors, he said.



The southern African country&#8217;s economy has suffered a series of shocks in the past decade, including a &#8220;hidden debt&#8221; crisis, devastating cyclones and an Islamic State-linked insurgency concentrated in its gas-rich Cabo Delgado province.



Given those blows, &#8220;our country continues to follow a remarkable path of growth recovery, with a promising scenario in the medium term&#8221;, Tonela said.



(Reporting by Manuel Mucari; Additional reporting by Wendell Roelf in Cape Town; Editing by Alexander Winning and Alex Richardson)

PF3JNZQUQ5M65OD7XXTYURHSSI

Mozambique sees higher economic growth, wider deficit in 2024

<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, Dec 5 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s central bank unveiled a big interest rate hike on Tuesday aimed at stabilising the shilling currency&nbsp;KES=, whose depreciation has spurred price pressures, curbed foreign investment and affected debt-servicing.



The Central Bank of Kenya raised its policy rate&nbsp;KECBIR=ECI&nbsp;by 2 percentage points to 12.5%, its first hike since June when it raised it by 1 percentage point.



&#8220;There is need to adjust the monetary policy stance to address the pressures on the exchange rate and mitigate second round effects,&#8221; the central bank&#8217;s Monetary Policy Committee (MPC) said in a statement.



&#8220;This will ensure that inflationary expectations remain anchored, while setting inflation on a firm downward path towards the 5.0 percent mid-point of the target range.&#8221;



Inflation&nbsp;KECPI=ECI&nbsp;dipped to 6.8% year-on-year in November from 6.9% in October, with the central bank saying on Tuesday that exchange rate depreciation had contributed about 3.0 percentage points to the November reading.



The shilling&nbsp;KES=&nbsp;is down more than 19% against the dollar this year, having struck repeated all-time lows along the way.



&#8220;The MPC &#8230; stands ready to further tighten monetary policy as necessary to ensure price and exchange rate stability are achieved,&#8221; the central bank said, adding its MPC would meet again in February 2024.



Razia Khan, chief Africa and Middle East economist at Standard Chartered Bank, said there had been pressure from the International Monetary Fund and World Bank to tighten policy meaningfully.



&#8220;Market interest rates were already well in excess of the policy rate, so it&#8217;s questionable whether this has a near-term impact,&#8221; she said.



Kenya is being watched closely to see how it handles the settlement of a $2 billion Eurobond that is maturing in June next year.



Central bank governor Kamau Thugge told reporters that authorities were expecting $300 million from regional bank Trade and Development Bank in the first two weeks of December&nbsp;and&nbsp;that would be used to buy back part of the Eurobond.



Thugge said Kenya expected a further $1.25-$1.5 billion in budget support from the World Bank early next year.



(Reporting by George Obulutsa and Duncan Miriri; Editing by Alexander Winning and Christina Fincher)

Kenya central bank tries to stabilise shilling with big rate hike

<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/VMMSUJP37ZIHJBSNEGRW226KR4-1-820x547.jpg" alt="" class="wp-image-433094" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">British Home Secretary James Cleverly and Rwandan Minister of Foreign Affairs Vincent Biruta sign a new treaty, in Kigali, Rwanda, December 5, 2023. The treaty will address concerns by the Supreme Court, including assurances that Rwanda will not remove anybody transferred under the partnership to another country. Ben Birchall/Pool.</figcaption></figure>



KIGALI/LONDON, Dec 5 (Reuters)&nbsp;&#8211;&nbsp;British interior minister James Cleverly signed a new treaty with Rwanda on Tuesday in an attempt to overcome a court decision to block the government&#8217;s controversial policy of sending asylum seekers to the East African country.



The Rwanda plan is at the centre of the government&#8217;s strategy to cut migration and is being watched closely by other countries considering similar policies.



The United Kingdom&#8217;s Supreme Court last month ruled that such a move would violate international human rights laws enshrined in domestic legislation.



The new treaty will include an agreement that Rwanda would not expel asylum seekers to a country where their life or freedom would be threatened &#8211; one of the court&#8217;s major concerns.



There will also be a monitoring committee to enable individuals to lodge confidential complaints directly to them and a new appeal body made up of judges from around the world.



Cleverly said there was now no &#8220;credible&#8221; reason to block the deportation flights because the treaty addressed all the issues raised by the Supreme Court and no extra money had been given to Rwanda to upgrade the deal from the existing memorandum of understanding.



&#8220;I really hope that we can now move quickly,&#8221; Cleverly told a press conference in Rwanda&#8217;s capital Kigali.



Many lawyers and charities said it was unlikely that deportation flights could start before next year&#8217;s election. The opposition Labour Party, which has a double-digit lead in the polls, plans to ditch the Rwanda policy if it wins.



Under the plan agreed last year, Britain intends to send thousands of asylum seekers who arrived on its shores without permission to Rwanda to deter migrants crossing the Channel from Europe in small boats.



In return, Rwanda has received an initial payment of 140 million pounds ($180 million) with the promise of more money to fund the accommodation and care of any deported individuals.



<h2 class="wp-block-heading" id="h-pressure">PRESSURE</h2>



Prime Minister Rishi Sunak is under intense pressure to cut net migration, which hit a record 745,000 last year, with the vast majority coming through legal routes.



&#8220;Stop the boats&#8221; is one of five goals Sunak set for his government, to end the flow of asylum seekers who pay people smugglers for their Channel crossings, often in overcrowded boats that are not seaworthy.



The Supreme Court ruled against the Rwanda plan because there was a risk that deported refugees would have their claims wrongly assessed or returned to their country of origin to face persecution.



The new treaty is expected to be followed later this week by the publication of legislation declaring Rwanda a so-called safe country, designed to stop legal challenges against the planned deportation flights.



However, this is likely to trigger a new round of political and legal wrangling. The first flight was scheduled to go last summer but was cancelled at the last moment because of legal challenges.



Sarah Gogan, an immigration lawyer at Harbottle &amp; Lewis, said Rwanda&#8217;s human rights record meant the government&#8217;s policy would be challenged.



&#8220;Rwanda is an unsafe country and this is not a quick fix,&#8221; she said. &#8220;You cannot in a matter of weeks or months reform a country and turn it into one with an impartial judiciary and administrative culture.&#8221;



Yvette Cooper, Labour&#8217;s home affairs spokeswoman, dismissed the government&#8217;s latest plans as another &#8220;gimmick&#8221;.



(Reporting by Andrew MacAskill and Michael Holden; Additional reporting by Rishabh Jaiswal, Muvija M and Kylie MacLellan; Editing by Bernadette Baum and Angus MacSwan)

VMMSUJP37ZIHJBSNEGRW226KR4-1

UK interior minister signs new Rwanda treaty to resurrect asylum plan

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-820x547.jpg" alt="" class="wp-image-427955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s President William Ruto attends the Sustainable Development Goals (SDG) Summit at United Nations headquarters in New York City, New York, U.S., September 18, 2023. REUTERS/Caitlin Ochs/File Photo</figcaption></figure>



NAIROBI, Nov 27 (Reuters) &#8211; Kenya will start its privatisation drive by offering stakes in 11 companies including the state oil pipeline, the finance ministry said on Monday.



The 11 firms are among more than 35 companies that are slated for sale to partially help the government raise revenue in the face of growing debt repayments.



Apart from the Kenya Pipeline Company, which is wholly owned by the government, investors can buy stakes in one of the main convention centres in Nairobi, a text book publisher, agri-business firms and industrial companies, the ministry said.



The pipeline firm, which is profitable, has a monopoly on the transport of gas and white oil products, the ministry said in a notice, which also invited the public to share its comments on the plan by Dec. 11, as required by the constitution.



&#8220;Privatisation and restructuring is geared towards the government&#8217;s efforts for fiscal consolidation and spurring economic development,&#8221; the ministry added.



The East African nation last privatised a state-owned company in 2008 with an initial public offering of a 25% stake in telecommunications firm Safaricom.



The government revised the law governing the sale of state companies last month to the eliminate bureaucracy that had made the process grind to a halt, the president said last week. (Reporting by Duncan Miriri Editing by Miral Fahmy)

FILE PHOTO: Sustainable Development Goals (SDG) Summit at United Nations headquarters in New York

Kenya to begin privatisation drive, offers stakes in 11 companies

<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>



LONDON/JOHANNESBURG, Nov 24 (Reuters) &#8211; The collapse of Zambia&#8217;s $3 billion bond rework deal this week is reverberating well beyond the country&#8217;s borders, raising doubts about the very framework designed to get bankrupt nations back on track quickly.



Zambia&#8217;s government said on Monday an International Monetary Fund-approved deal with bondholders &#8211; agreed in principle less than a month ago &#8211; could not proceed due to objections from bilateral creditors, who say the terms of the deal are not comparable to relief offered by a group of countries including France, China and India.



The setback sent the bonds of countries in the midst of debt reworks such as Ghana and Sri Lanka tumbling. It also raised fresh questions about the commitment of Western nations and multilateral lenders to help poor countries claw their way out of unmanageable debt.



&#8220;To me there is a real problem, and the real problem goes beyond Zambia,&#8221; said Brad Setser, a Council on Foreign Relations fellow and former U.S. government official, suggesting the way debt sustainability and market accessibility for low income countries was assessed might need to be adjusted.



The core of the issue is the Common Framework, a G20-backed debt negotiation architecture that aimed to smooth and speed deals for insolvent low-income countries thrust into crisis during the COVID-19 pandemic with a historically complicated tangle of lenders that, for the first time, included China.



It established basic principles at its 2020 launch, with more to be defined and debated along the way. Progress has, however, proven more arduous than expected.



Zambia – the Framework&#8217;s test case &#8211; is entering its fourth year of default and its long, thorny path could deter other struggling countries such as Tunisia, Egypt and Kenya from Common Framework debt reworks.



International bondholders say the Framework failed to provide the transparency on other creditors&#8217; concessions needed to cut comparably fair deals. Most agree it provides no clarity on what fair treatment of various creditors would actually look like, nor how the value of concessions given to indebted nations should be calculated.



Milestones such as Zambia&#8217;s memorandum of understanding (MoU) with bilateral creditors on restructuring $6.3 billion of debt and similar successes for Ghana raised hopes the Framework was working. Now there are once again whispers that it&#8217;s failing.



&#8220;This has not been a success and we need a reset,&#8221; said Kevin Gallagher, director of Boston University&#8217;s Global Development Policy Center.



The IMF did not respond to a request for comment sent over a U.S. holiday.



<h2 class="wp-block-heading" id="h-a-question-of-fairness">A QUESTION OF FAIRNESS</h2>



The current rift centres on &#8220;Comparability of Treatment&#8221; &#8211; a principle from the Paris Club of wealthy creditor nations aimed at ensuring its members don&#8217;t give outsized concessions compared to private lenders or others outside the group.



Zambia&#8217;s government said the Official Creditor Committee (OCC) sank the bondholder deal because it fell afoul of that principle under a &#8220;base case&#8221; scenario. This outraged bondholders, who say they offered more debt relief than bilateral lenders on a net present value (NPV) basis and a principal haircut of 18% when official creditors tabled none.



With no rules on how to calculate concessions, creditors can come to different conclusions regarding the figures.



&#8220;One of the founding principles of the Common Framework was indeed Comparability of Treatment. The fact that we&#8217;ve gotten this far without reaching a common understanding of what that is, is indeed unhelpful,&#8221; said Yvette Babb, a portfolio manager at William Blair.



Tallying different creditors&#8217; priorities is tricky: Bondholders target shorter-term cashflows but will accept principal writedowns, while official creditors favour maturity extensions.



&#8220;Are you willing to allow deals that allow bondholders to get a lot of money out before official creditors? And are you willing to let bondholders take money out when the IMF is putting money in?,&#8221; said Setser.



<h2 class="wp-block-heading" id="h-how-to-fix-it">HOW TO FIX IT</h2>



Zambia&#8217;s government said there was no consensus between OCC co-chairs China and France on the concessions needed from bondholders to secure a deal. The OCC statement also did not say which creditor country raised concerns, making it harder to address them, investors said.



Convincing China, which emerged as a key creditor after a decade-long lending spree, to cut deals alongside other creditors has been a core challenge.



China&#8217;s repeated assertions that it must safeguard its taxpayers&#8217; money, its rejection of blanket acceptance that multilateral lenders do not take haircuts and its objections to the IMF&#8217;s debt sustainability assessments have upended the official lenders&#8217; historic approaches to debt deals.



China&#8217;s central bank and finance ministry did not respond to requests for comment.



Already, a group called the Global Sovereign Debt Roundtable &#8211; comprised of development banks, G20 chair India and official and private creditors – is trying to work through the Framework&#8217;s snags and seek a consensus on net present values and comparability of treatment.



Any such consensus, William Blair&#8217;s Babb said, would eliminate &#8220;a large degree of this discretionary assessment&#8221;.



&#8220;That is a fundamental principle that I think could be agreed on to avoid this becoming a stumbling block in other discussions,&#8221; she added.



The IMF has also promised to rejig its debt sustainability calculations – key figures in restructurings – and make its process more transparent.



With a record $554 billion of sovereign debt in default globally, according to the Institute of International Finance, getting countries out of distress quickly is key.



Zambia&#8217;s finance minister has said the long delays have curtailed economic growth and hit the poorest of the population.



Some say the Framework, while flawed, is the only way, and that countries outside it, such as Suriname and Sri Lanka, have also struggled to finalise deals.



&#8220;Sovereign debt restructuring is a very ugly, messy process,&#8221; said Mark Sobel, a former U.S. representative at the IMF, adding its aim was also to cut through the web of competing domestic powers within China to allow it to give debtor countries much-need relief.



&#8220;To me, the Common Framework, for better or for worse, is the only game in town.&#8221;



(Reporting By Libby George and Rachel Savage. Additional reporting by Jorgelina do Rosario and Joe Cash. Graphic by Rodrigo Campos, editing by Karin Strohecker and Kirsten Donovan)

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

Zambia bond debacle calls for debt restructure rethink

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/DWS3TK7MAVPAPFKEL2YX7GYITI-820x547.jpg" alt="" class="wp-image-429066" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/DWS3TK7MAVPAPFKEL2YX7GYITI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/DWS3TK7MAVPAPFKEL2YX7GYITI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/DWS3TK7MAVPAPFKEL2YX7GYITI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/DWS3TK7MAVPAPFKEL2YX7GYITI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/DWS3TK7MAVPAPFKEL2YX7GYITI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/DWS3TK7MAVPAPFKEL2YX7GYITI.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Zambia&#8217;s Finance Minister Situmbeko Musokotwane takes part in a panel during the annual meeting of the International Monetary Fund and the World Bank, following last month&#8217;s deadly earthquake, in Marrakech, Morocco, October 14, 2023. REUTERS/Susana Vera/File Photo</figcaption></figure>



LONDON, Nov 24 (Reuters)&nbsp;&#8211;&nbsp;Long delays in Zambia&#8217;s debt restructuring have hamstrung much needed investments, curtailed economic growth, weighed on local financial markets and added to living costs for its people, Finance Minister Situmbeko Musokotwane told Reuters.



Zambia defaulted three years ago and is trying to rework its debt under the G20 Common Framework, a programme designed to ensure swift and smooth debt overhauls for low-income nations.



But the process has been beset by delays, with Zambia suffering a major setback on Monday when official creditors rejected a preliminary deal agreed between the country and its bondholders to rework $3 billion over objections on whether it offered comparable debt relief.



The first African country to default in the COVID-19 era, Zambia&#8217;s debt restructuring had started with drawn-out negotiations with bilateral creditors including China.



&#8220;Zambia’s debt restructuring has dragged on too long,&#8221; Musokotwane said in emailed comments.



&#8220;During restructuring, we are experiencing vastly constrained fiscal space. We cannot attract vital foreign direct investment. We have no access to capital markets.&#8221;



Uncertainty or negative news on the restructuring progress have hit domestic bond markets, Musokotwane said, which may affect the government&#8217;s ability to fully finance the national budget.



They also made the currency more volatile, he added. The kwacha&nbsp;ZMW=&nbsp;stands at a record low of 23.525 to the dollar and has weakened more than 30% this year.



All this has resulted in a significant increase in the cost of living for Zambians and impacted the government&#8217;s ability to push through with vital investments.



&#8220;Projects in the water sector, among others, have been delayed in completion by over three years and have hence delayed the delivery of clean water and sanitation services to over 1.5 million Zambian people,&#8221; the minister said, adding infrastructure projects connecting some of Zambia&#8217;s poorest rural areas to markets and technology had also stalled.



&#8220;This undermines our development agenda and impacts the most vulnerable.&#8221;



Musokotwane said the country had implemented some serious reforms and committed to improving management of government finances and boosting growth.



&#8220;Problems facing Zambia are not simply numbers on a spreadsheet but impact the lives of real people. Continued delays serve the interests of no-one.&#8221;



He said the government would continue discussions in &#8220;good faith&#8221; to find a solution that was satisfactory to all sides.



(Reporting by Karin Strohecker, additional reporting by Rachel Savage, editing by Kim Coghill)

DWS3TK7MAVPAPFKEL2YX7GYITI

Zambia debt rework delaying impede key investments, hitting the ‘most vulnerable’ – FinMin

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="360" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/istockphoto-1250489640-640x640-1.jpg" alt="" class="wp-image-400524" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/istockphoto-1250489640-640x640-1.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/istockphoto-1250489640-640x640-1-300x169.jpg 300w" sizes="auto, (max-width: 640px) 100vw, 640px" /><figcaption class="wp-element-caption">World Bank on glass building. Mirrored sky and city modern facade. Global capital, business, finance, economy, banking and money concept seamless and loopable 3D rendering animation.</figcaption></figure>



NAIROBI, Nov 20 (Reuters)&nbsp;&#8211;&nbsp;The World Bank said on Monday that it foresaw $12 billion of support to Kenya over the next three years, potentially a major boost to the East African country&#8217;s strained finances.



The bank said in a statement that the total amount was subject to the approval of its executive directors and other factors that could influence its lending capacity.



Kenya&#8217;s public finances have been pressured by the legacy of the COVID-19 pandemic and frequent climate change-induced droughts.



&#8220;The World Bank is fully committed to support Kenya in its journey to become an upper-middle-income country by 2030,&#8221; the statement said.



&#8220;Subject to the World Bank Executive Directors approval of new operations, and to factors which may affect the bank&#8217;s lending capacity, this implies a total financial package of $12 billion over the three years.&#8221;



World Bank Country Director Keith Hansen said the $12 billion comprised money Kenya currently had available from the International Development Association, the International Bank for Reconstruction and Development, the International Finance Corporation and the Multilateral Investment Guarantee Agency, &#8220;plus what we expect to provide in the coming three years&#8221;.



&#8220;This will likely include Development Policy Operations as well as new investments in a wide range of sectors such as energy, health, transport and water,&#8221; Hansen said.



Kenya has faced acute liquidity challenges caused by uncertainty over its ability to access funding from financial markets before a $2 billion Eurobond matures next June.



Last week the International Monetary Fund reached a staff-level agreement with Kenya, unlocking immediate access to another $682 million tranche of funding and boosting its current lending programme by $938 million.



Hansen said in light of recent government announcements and the IMF staff agreement, the World Bank wanted to &#8220;make clear the likely magnitude of resources Kenya can count on&#8221;.



(Reporting by George Obulutsa and Elias Biryabarema; Editing by Alexander Winning and Alex Richardson)

istockphoto-1250489640-640×640

World Bank sees $12 billion support to Kenya over next 3 years

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



JOHANNESBURG, Nov 20 (Reuters) &#8211; Zambia suffered a major setback in its debt restructuring efforts, after the government said on Monday a revised deal to rework $3 billion of Eurobonds could not be implemented at this time due to objections from official creditors, including China.



Zambia and the country&#8217;s official creditor committee (OCC) and the International Monetary Fund (IMF) had been at odds over whether the initial deal struck with a group of bondholders in late October offered comparable debt relief from bilateral as well as commercial lenders. The IMF approved a tweaked deal, but official creditors again rejected it, Zambia said.



&#8220;The OCC, through its Co-chairs, concluded that Comparability of Treatment would not be achieved in the Base Case scenario, although would be achieved in the Upside Case scenario,&#8221; the government said in a statement, referring to a two pronged-approach that foresaw different levels of debt relief depending on the country&#8217;s economic performance.



OCC co-chairs China and France said there was no consensus among official creditors on the magnitude of additional concessions that would be required from bondholders in the base case to comply with the Comparability of Treatment principle, according to Zambia&#8217;s government.



The country&#8217;s External Bondholder Steering Committee said it was deeply concerned with recent developments and that its latest offer would provide more debt relief than official creditors on a net present value basis, as well as a principal haircut when official creditors were offering none.



Zambia defaulted on its debts three years ago and its restructuring has been beset by delays. Western officials accused China of holding up the process, something China has consistently denied, while international bondholders complained about being shut out of negotiations.



Zambia&#8217;s international bonds dropped more than 2.6 cents on the dollar following the statement, Tradeweb data showed.&nbsp;XS1056386714=TEXS1267081575=TE



&#8220;The OCC is demanding debt relief from commercial creditors that is materially higher than either the Government or the IMF deem necessary to restore debt sustainability,&#8221; the bondholder committee said in a statement.



&#8220;It is creating very clear inter-creditor equity issues and is going far beyond the OCC&#8217;s envisaged role under the Common Framework in verifying Comparability of Treatment.&#8221;



Zambia&#8217;s debt restructuring is taking place under the Common Framework, a process set up in response to COVID-19 by the G20 to bring in China, India and other bilateral creditors that are not members of the Paris Club of creditor nations. The Common Framework has been severely criticised, as it is yet to provide any countries with debt relief.



An IMF staff assessment found that the first proposed deal with bondholders would have breached the fund&#8217;s Debt Sustainability Analysis (DSA) targets, Zambia&#8217;s government said.



The ratio of debt service to government revenue would have reached 16.7% in 2024, 2.7 percentage points higher than the 14% target. Meanwhile, the present value of the debt to exports ratio would have been 1 percentage point higher than the 2027 target, at 85%, it said.



The IMF did not immediately respond to a request for comment.



(Reporting by Rachel Savage, Bhargav Acharya and Karin Strohecker, Editing by Alexander Winning, William Maclean)

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

Zambia says international bond deal can’t be implemented at this time

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OMV4VRBVPNPIZPTCJKOJU2NR5Q-820x547.jpg" alt="" class="wp-image-429113" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OMV4VRBVPNPIZPTCJKOJU2NR5Q-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OMV4VRBVPNPIZPTCJKOJU2NR5Q-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OMV4VRBVPNPIZPTCJKOJU2NR5Q-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OMV4VRBVPNPIZPTCJKOJU2NR5Q-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OMV4VRBVPNPIZPTCJKOJU2NR5Q-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OMV4VRBVPNPIZPTCJKOJU2NR5Q-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Madagascar&#8217;s President and a presidential candidate Andry Rajoelina flanked by his wife Mialy Rajoelina as he arrives to cast his ballot at a polling station, during the presidential election in Ambatobe, Antananarivo, Madagascar November 16, 2023. REUTERS/Zo Andrianjafy</figcaption></figure>



ANTANANARIVO, Nov 17 (Reuters) &#8211; Madagascar&#8217;s President Andry Rajoelina took a predictably commanding early lead on Friday in his bid for re-election in a vote marked by low turnout and an opposition boycott, preliminary results showed.



The 49-year-old entrepreneur and former DJ rose to power on the Indian Ocean island in a 2009 coup, stepped down after almost five years as leader of a transitional authority, then won a 2018 election.



The opposition says he should not have run again in Thursday&#8217;s poll because he acquired French nationality in 2014 &#8211; which they say automatically revokes his Malagasy one &#8211; and has created unfair election conditions.



He says both accusations are baseless political tactics.



In preliminary results from the electoral commission CENI, Rajoelina had garnered more than 72.9% of the estimated total of 6.2% counted so far.



Votes counted so far indicated a turnout of 39.5%, compared to 55% in the equivalent first round of voting in 2018.



<h2 class="wp-block-heading" id="h-enthusiasm-not-there">&#8216;ENTHUSIASM NOT THERE&#8217;</h2>



There were 11 million people out of a population of roughly 30 million registered to vote in this year&#8217;s polls, which were preceded by weeks of opposition-led protests.



Of 12 opposition candidates originally, only two took part in the vote. One was Marc Ravalomanana, the former president ousted in 2009, the other Siteny Randrianasoloniaiko.



&#8220;Enthusiasm was not there,&#8221; said Andriamanambe Raoto, editor-in-chief of Politika, a monthly publication.



The United States voiced concern on Thursday over low turnout, inadequate training for election staff and irregularities by party officials.



The opposition said participation was the lowest in Madagascar&#8217;s history and vowed to keep protesting.



Rajoelina says the constitution does not require the head of state to exclusively hold Malagasy nationality, and that any loss of nationality is subject to signed authorization by the government.



The opposition also called for changes to the makeup of electoral commission and for the formation of a special court to hear election disputes.



Regional observer groups did not respond to requests for comment on the early results. Full provisional results are expected on Nov. 24 while the High Constitutional Court is due to certify them on Nov. 30.



(Reporting by Lovasoa Rabary, writing by Giulia Paravicini, editing by Andrew Cawthorne)

Madagascar’s President and a presidential candidate Andry Rajoelina flanked by his wife Mialy Rajoelina as he arrives to cast his ballot at a polling station, during the presidential election in Ambatobe

Madagascar president takes huge lead in early results of low turnout vote

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LO273AE3F5N4PLTPOFI563WO6I-820x550.jpg" alt="" class="wp-image-429094" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LO273AE3F5N4PLTPOFI563WO6I-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LO273AE3F5N4PLTPOFI563WO6I-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LO273AE3F5N4PLTPOFI563WO6I-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LO273AE3F5N4PLTPOFI563WO6I-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LO273AE3F5N4PLTPOFI563WO6I-1536x1031.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LO273AE3F5N4PLTPOFI563WO6I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A police officer walks next to an electric mass transit bus assembled by electric vehicle manufacturer Roam at the Green Park Terminus in Nairobi, Kenya October 19, 2022. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, Nov 17 (Reuters)&nbsp;&#8211;&nbsp;Kenya could lose up to 7.25% of economic output by 2050 if it does not take strong action to adapt to climate change and mitigate its effects, the World Bank said on Friday.



Like other so-called frontier economies, the East African nation has been suffering from the effects of global heating, including prolonged droughts, in recent years.



&#8220;By 2050, inaction against climate change could result in a decline in real GDP of 3.61–7.25 percent,&#8221; the World Bank said in a new publication called Kenya Country Climate and Development Report.



&#8220;The impact of climate change on the economy could be partly buffered by a higher annual growth rate and structural transformation,&#8221; it said.



If Kenya&#8217;s economy grows 7.5% per year through to 2050, in line with the government&#8217;s target, the damage of climate change to economic output would drop to 2.78–5.3%, the report said.



It called for increased investments in water resources management, farming, energy, transport and digital systems to help reduce the impact of climate change.



With about 90% of its electricity coming from renewable sources like hydro-generation and geothermal wells, Kenya is well positioned to provide solutions to other countries looking to lower their emissions, the report said.



&#8220;If Kenya maintains a low-carbon growth path, it could seize opportunities created by the global decarbonization trend and create green jobs,&#8221; it said.



While achieving a carbon-free electricity energy system by 2030 will require investments of up to $2.7 billion, it will be cost effective in the long run as the investments will be offset by lower fossil fuel costs, the report said.



It also urged the government to broaden the range of climate financing available by increasing the scope of projects to make them national and bankable.



&#8220;Finance directed toward climate in the development budget disproportionately targets the renewable energy sector,&#8221; it said. &#8220;Agriculture, forestry and land use, transport, water management, and other key sectors are significantly underfunded.&#8221;



(Reporting by Duncan Miriri; Editing by Mark Potter)

FILE PHOTO: A police officer walks next to an electric mass transit bus assembled by electric vehicle manufacturer Roam at the Green Park Terminus in Nairobi

Kenya could lose up to 7.25% of GDP to climate change, World Bank 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/2023/11/DWS3TK7MAVPAPFKEL2YX7GYITI-820x547.jpg" alt="" class="wp-image-429066" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/DWS3TK7MAVPAPFKEL2YX7GYITI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/DWS3TK7MAVPAPFKEL2YX7GYITI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/DWS3TK7MAVPAPFKEL2YX7GYITI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/DWS3TK7MAVPAPFKEL2YX7GYITI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/DWS3TK7MAVPAPFKEL2YX7GYITI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/DWS3TK7MAVPAPFKEL2YX7GYITI.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Zambia&#8217;s Finance Minister Situmbeko Musokotwane takes part in a panel during the annual meeting of the International Monetary Fund and the World Bank, following last month&#8217;s deadly earthquake, in Marrakech, Morocco, October 14, 2023. REUTERS/Susana Vera/File Photo</figcaption></figure>



JOHANNESBURG/LONDON, Nov 15 (Reuters)&nbsp;&#8211;&nbsp;Zambia&#8217;s official creditors including China rejected a deal the country struck with its international bondholders because they believed its &#8220;base case&#8221; scenario did not deliver debt relief comparable to what they offered in a separate deal, two sources familiar with the talks said.



Official creditors said the agreement in principle, which the International Monetary Fund (IMF) also rejected, did not comply with &#8220;Comparability of Treatment&#8221;, said the sources, who declined to be identified as the discussions are private.



Zambia announced on October 26 that it had clinched an agreement in principle with its international bondholders &#8211; a key step for the country whose debt rework has been beset by delays since it defaulted in 2020.



The announcement sparked a sharp rally in Zambia&#8217;s three outstanding bonds, which has been partially reversed since Zambia said on November 10 that official creditors and the IMF had &#8220;expressed reservations&#8221; about the deal, sparking fears that the country&#8217;s drawn-out default could be extended still further.



Both bondholders and official creditors had proposed extending the maturity of Zambia&#8217;s debt and that it be paid back quicker if the country&#8217;s economy performs better than expected. The bondholder deal proposed they would be paid more than $700 million before 2026 in the base case, while official creditors had offered a longer three-year grace period.



Bondholders would need to offer more debt relief in the base case scenario for the deal to be acceptable to official creditors and the IMF, one of the sources said.



&#8220;There were marginal deviations in positions and these deviations are being discussed. As it stands, the IMF may be in a position to support the adjusted terms as compatible with Zambia&#8217;s programme parameters,&#8221; the second source added.



A spokesperson for Zambia&#8217;s finance ministry contacted on Wednesday pointed to a statement published on Tuesday that said there were &#8220;continuing discussions&#8221; with the group of bondholders, but that no further comment could be made as the negotiations are being held under Non-Disclosure Agreements (NDAs).



An IMF spokesperson referred to a statement on Friday that said that &#8220;modifications are needed to bring this initial proposal more fully into line with the requirements of the IMF program&#8221; and declined to comment further.



Representatives for the negotiating committee of the international bondholder group declined to comment and the Paris Club, which acts as a secretariat for developed creditor nations, did not immediately respond to a request for comment.



China&#8217;s foreign ministry said all creditors should offer debt relief &#8220;in accordance with the principle of &#8216;common action and fair burden&#8217;,&#8221; in faxed comments on Monday in response to Reuters questions about what the &#8220;reservations&#8221; on the bondholder deal were.



(Reporting by Rachel Savage and Karin Strohecker; Additional reporting by Marc Jones, Editing by Alexandra Hudson)

Official creditors rejected Zambia bond rework deal as too generous to bondholders – sources

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="498" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LGH7TDQ2DNN3FKFRGO2SVYRP34-820x498.jpg" alt="" class="wp-image-429061" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LGH7TDQ2DNN3FKFRGO2SVYRP34-820x498.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LGH7TDQ2DNN3FKFRGO2SVYRP34-300x182.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LGH7TDQ2DNN3FKFRGO2SVYRP34-148x90.jpg 148w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LGH7TDQ2DNN3FKFRGO2SVYRP34-768x467.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LGH7TDQ2DNN3FKFRGO2SVYRP34-1536x933.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LGH7TDQ2DNN3FKFRGO2SVYRP34-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows the Nairobi Expressway undertaken by the China Road and Bridge Corporation (CRBC) on a public-private partnership (PPP) basis, in Nairobi, Kenya May 8, 2022. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, Nov 16 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund has reached a staff-level agreement with Kenya, unlocking immediate access to a $682.3 million tranche and boosting the current lending programme by $938 million, the fund said on Thursday.



The East African nation is grappling with acute liquidity challenges caused by uncertainty over its ability to access funding from financial markets before a $2 billion Eurobond matures next June.



Its balance of payments and financial positions have also been strained by the legacy of the COVID-19 pandemic and frequent climate change-induced droughts, the fund said at the conclusion of a two-and-a-half week review mission to Nairobi.



&#8220;The tightening global financing conditions for frontier economies and global geopolitical tensions are compounding the challenges,&#8221; said Haimanot Teferra, the head of the mission.



Subject to the approval of the Washington-based fund&#8217;s executive board, Kenya will have access to a total of $3.88 billion, which would bring its total funding under the existing Extended Fund Facility and Extended Credit Facility arrangements to $4.43 billion, the IMF said.



The current programme, agreed in April 2021, was first bumped up in May by an extra $1 billion, including $544 million under the IMF&#8217;s Resilience and Sustainability Facility (RSF), and a new arrangement under the same RSF.



Kenya&#8217;s international bonds rose modestly on the news, with the $2 billion note maturing in June 2024 rising the most. It was up 0.43 cents on the dollar to 95.6 cents at 0928 GMT&nbsp;XS1028952403=TE.



Although the deal was widely expected after it was telegraphed by a senior adviser in Kenya&#8217;s presidency, it was still being viewed positively, said a Kenyan market participant who did not wish to be named.



The new IMF financing, together with expected funds from the World Bank and regional banks like Afrexim, would allow Kenya to pay maturing foreign debt without running down its hard currency reserves, said the market participant.



The additional money was more than international markets were expecting, said Thato Mosadi, a strategist at Jefferies in London.



&#8220;I am very positive that reserves could be higher than USD6.5bn following the payment of the (2024) eurobond, and even more confident now following the IMF&#8217;s augmentation,&#8221; she said.



(Reporting by George Obulutsa and Duncan Miriri; Additional reporting by Rachel Savage in Johannesburg; Editing by Christina Fincher)

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East Africa

African mediators claim progress in efforts to end Sudan’s war

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Seychelles declares state of emergency after explosion, flooding

Kenya central banker sees $1 bln China loan soon, vows firm FX action

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Zambia bond debacle calls for debt restructure rethink

Zambia debt rework delaying impede key investments, hitting the ‘most vulnerable’ – FinMin

World Bank sees $12 billion support to Kenya over next 3 years

Zambia says international bond deal can’t be implemented at this time

Madagascar president takes huge lead in early results of low turnout vote

Kenya could lose up to 7.25% of GDP to climate change, World Bank says

Official creditors rejected Zambia bond rework deal as too generous to bondholders – sources

Kenya gets additional $938 mln from IMF, soothing nerves

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