<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-820x547.jpg" alt="" class="wp-image-470834" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A woman displays a selection of Kwacha notes, the national currency and money used in Zambia in Lusaka, Zambia February 27, 2024. REUTERS/Namukolo Siyumbwa/File Photo</figcaption></figure>



LONDON, March 28 (Reuters) &#8211; Zambia&#8217;s deal with bondholders this week suggests it will finally emerge from more than three years in default &#8212; and become the first successful restructuring under the debt-rework architecture designed by the G20.



The deal is a much-needed win for the so-called Common Framework. The African nation&#8217;s President Hakainde Hichilema posted on X that &#8220;history has been made,&#8221; while International Monetary Fund (IMF) President Kristalina Georgieva lauded the &#8220;important achievement.&#8221;



Global leaders hope that Ghana may soon reach its own deal with lenders, boosting the Framework before the IMF World Bank Spring Meetings in Washington, D.C. in mid-April.



But the scars from Zambia&#8217;s drawn-out battles with creditors &#8211; and its years-long, stop-start progress &#8211; have left investors, observers and many policymakers themselves wary of the multilateral mechanism&#8217;s efficacy.



It was designed to expedite talks between a myriad of lenders from Chinese state-owned institutions to London-based asset managers and New York banks.



&#8220;I don&#8217;t think anyone is filled with a tremendous sense of confidence that the Common Framework is going to speed up the debt negotiation process,&#8221; said London-based Kevin Daly, head of emerging market debt at Abrdn, which held some of Zambia&#8217;s $3 billion worth of international bonds.



Ricardo Klinger, Brazil&#8217;s Finance Ministry official in the G20 International Financial Architecture Working Group, said those involved in Zambia&#8217;s restructuring would discuss lessons learned. Brazil currently holds the G20 presidency.



&#8220;The stages are being completed more quickly because it is a learning process,&#8221; Klinger said.



He said they aim to publish a document in July incorporating feedback from all sides of Zambia&#8217;s restructuring to identify bottlenecks and potential improvements to gain time.



&#8220;The document seeks to synthesize this learning in these recent cases to build a more refined process,&#8221; he said.



<h2 class="wp-block-heading" id="h-first-to-fall">FIRST TO FALL</h2>



Zambia was the first African country to default amid the economically punishing COVID-19 pandemic, doing so in late 2020.



Foreseeing more collapses, the G20 launched the Common Framework to bring all creditors to low-income nations under one roof &#8212; particularly China, whose lending to developing countries exploded in the decade before the pandemic.



For many, though, Zambia has been a cautionary tale &#8212; throwing into sharp focus disagreements around equal burden sharing and transparency.



The delays have hamstrung much-needed investments in the country, curtailed economic growth and weighed on local financial markets. A devastating drought has exacerbated the pain, hitting hydropower and food production.



In November, an unexpected official creditor smackdown of Zambia&#8217;s initial bondholder deal shocked its leaders &#8212; and bondholders like Daly.



Members of the Official Creditor Committee (OCC), co-chaired by China and France, said it did not offer Comparability of Treatment, meaning bondholders were not taking a comparable hit to the debt relief that official lenders offered.



Zambia has promised that the new deal has official creditor sign-off, but Daly and others said communication and transparency issues loom for other restructurings.



&#8220;There is a major flaw,&#8221; Daly said.



Bondholders, for example, do not have access to the terms official creditors give countries, effectively leaving them working in the dark. Details are sometimes published later, but not always, potentially leaving the public in the dark as well.



&#8220;Improvements could &#8230; be made to transparency and information sharing between official and private creditors, as well as clearly defined rules on Comparability of Treatment to ensure agreements under the Common Framework are timely and equitable,&#8221; said Christian Libralato, EM Portfolio Manager at BlueBay Asset Management.



<h2 class="wp-block-heading" id="h-aiming-to-revise">AIMING TO REVISE</h2>



Others agree with Klinger that Zambia&#8217;s pain could help forge a successful Framework.



&#8220;Some of those lessons will be put to work in Ghana, and some will be put to work in Ethiopia,&#8221; said Giulia Pellegrini, portfolio manager for emerging markets debt at Allianz Global Investors. &#8220;There will be some transferable skills and lessons.&#8221;



&#8220;There&#8217;s definitely a lot of push to have more successful cases,&#8221; she added.



Ghana is currently in formal talks with holders of more than $13 billion in international bonds and wants to speed up remaining negotiations. Ethiopia defaulted on its sole $1 billion Eurobond in December, but talks with bondholders have been slow.



The IMF is also working on key fixes; it is in the middle of a years-long revision of its debt-sustainability analyses (DSA) and has promised to share them earlier with creditors. DSAs detail how sustainable a country&#8217;s debt burden is and form the basis for restructurings.



It also launched the Global Sovereign Debt Roundtable, bringing together representatives from the countries, private lenders, the World Bank and the G20 to identify and solve key problems with the Framework. Such issues include how to calculate comparability of treatment, how to treat debt to state-owned enterprises, and cut-off dates for debt included in reworks.



&#8220;They are aware of these issues, and they have begun a process to address these, but it won&#8217;t be an easy announcement in the Spring Meetings,&#8221; Pellegrini said.



That may not be much comfort to other countries in a similar situation.



&#8220;I am not sure that the three years it took to get Zambia done will commend the Common Framework to other countries that may be technically eligible to apply for Common Framework treatment,&#8221; lawyer and veteran sovereign debt expert Lee Buchheit told Reuters.



(Reporting by Libby George in London, additional reporting by Marcela Ayres in Brasilia and Rodrigo Campos in New York, editing by Karin Strohecker and Hugh Lawson)

FILE PHOTO: Zambian currency, the Kwacha

Zambia’s debt-rework battle scars mar its Common Framework success

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KU2XLVYFJJIQNE46PWTLC5EAAY-820x547.jpg" alt="" class="wp-image-470494" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KU2XLVYFJJIQNE46PWTLC5EAAY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KU2XLVYFJJIQNE46PWTLC5EAAY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KU2XLVYFJJIQNE46PWTLC5EAAY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KU2XLVYFJJIQNE46PWTLC5EAAY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KU2XLVYFJJIQNE46PWTLC5EAAY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KU2XLVYFJJIQNE46PWTLC5EAAY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A client uses an automated teller machine (ATM) at the Commercial Bank of Ethiopia in Addis Ababa, Ethiopia, July 31, 2019. REUTERS/Maheder Haileselassie Tadese/File Photo</figcaption></figure>



ADDIS ABABA, March 27 (Reuters)&nbsp;&#8211;&nbsp;The state-owned Commercial Bank of Ethiopia has recovered more than three-quarters of the $14 million it lost when a software glitch earlier this month allowed customers to withdraw more funds than they held in their accounts, it has said.



Around 78% of the 801 million birr withdrawn from cash machines or transferred during the night of March 15, or 622.9 million birr ($11 million), has been returned, the president of the bank Abie Sano said on Tuesday.



The lender has published the names of the more than 500 people who are yet to return the balance, Abie said.



He previously blamed university students for being largely responsible for the &#8220;theft&#8221;, accusing them of sharing news about the glitch via social media.



The problem occurred during an update to the bank&#8217;s systems, Ethiopia&#8217;s central bank said earlier this month, adding that there was no risk to customers or the overall financial system.



($1 = 56.6083 birr)



(Reporting by Dawit Endeshaw; Writing by Hereward Holland; editing by David Evans)

FILE PHOTO: A client uses an automated teller machine (ATM) at the Commercial Bank of Ethiopia in Addis Ababa

Commercial Bank of Ethiopia recovers $11 mln lost in system glitch

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LIIL4DGYFVNP5EAHWSIR7IM3BM-820x547.jpg" alt="" class="wp-image-416704" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LIIL4DGYFVNP5EAHWSIR7IM3BM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LIIL4DGYFVNP5EAHWSIR7IM3BM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LIIL4DGYFVNP5EAHWSIR7IM3BM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LIIL4DGYFVNP5EAHWSIR7IM3BM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LIIL4DGYFVNP5EAHWSIR7IM3BM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LIIL4DGYFVNP5EAHWSIR7IM3BM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Zambia&#8217;s President Hakainde Hichilema addresses the 76th Session of the United Nations General Assembly at U.N. headquarters in New York, U.S. on September 21, 2021. Spencer Platt/Pool via REUTERS</figcaption></figure>



March 25 (Reuters)&nbsp;&#8211;&nbsp;Zambia said on Monday that it had reached an agreement with a group of private creditors on restructuring $3 billion of its international bonds &#8211; a major step that brings the country closer to emerging from its long-delayed debt rework.



The latest deal proposes swapping the country&#8217;s three existing instruments into two amortising bonds, one of which would deliver higher repayments if the country&#8217;s economic outlook and capability of dealing with its debt burden improves.



&#8220;History has been made!,&#8221; the country&#8217;s President Hakainde Hichilema said on social media platform X. &#8220;We are pleased to announce the agreement with our Eurobond holders.&#8221;



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



But the process has been beset by long delays, which have hamstrung much needed investments, curtailed economic growth and weighed on local financial markets. The situation has worsened amid a devastating drought that has been declared a national disaster and which affects hydropower generation and food production.



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



<h2 class="wp-block-heading" id="h-changes-in-substance">CHANGES IN SUBSTANCE</h2>



Monday&#8217;s proposal is in structure much like a preliminary deal that was reached late last year, but was then derailed after being rejected by official creditors, which include countries such as China and France.



However, there are some changes in substance. While the overall claim that bondholders have against the country grew to $3.98 billion due to accumulated unpaid interest, under the new deal investors will receive bonds with a face value&nbsp;of&nbsp;$3.05 billion &#8211; a reduction from the $3.135 billion proposed in October.



Under the agreement, bondholders would forego approximately $840 million of their claims, the statement said, compared to $700 million in the previous proposal. Cash flow relief remained the same at around $2.5 billion during the IMF programme period.



The government also said in the announcement it had received confirmation from official creditors that the agreed terms were compatible with regards to comparability of treatment.



An IMF spokesperson said via email the &#8220;agreement is consistent with the parameters of the IMF program.&#8221;



Bondholders also welcomed the agreement in a separate emailed statement.



&#8220;We are pleased to have finally reached a definitive and conclusive agreement with the Government that is supported by all stakeholders,&#8221; said the group of private creditors, which include Amia Capital, Amundi, Farallon, Greylock Capital Management, and BlueBay Asset Management.



The government said it will ensure that &#8220;certain other creditors do not receive a better recovery in the restructuring on net present value terms&#8221; and also a loss reinstatement clause if Zambia were to default during the term of the existing International Monetary Fund programme, the statement added.



(Reporting by Jorgelina do Rosario and Karin Strohecker, additional reporting by Anait Miridzhanian and Rachel Savage, Editing by Alexander Winning, Toby Chopra and Sharon Singleton)

Annual United Nations General Assembly in New York

Zambia strikes preliminary deal on $3 bln international bond rework

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FMO2CUINZBL7VHZGL7YQ5AF4UM-820x547.jpg" alt="" class="wp-image-468228" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FMO2CUINZBL7VHZGL7YQ5AF4UM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FMO2CUINZBL7VHZGL7YQ5AF4UM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FMO2CUINZBL7VHZGL7YQ5AF4UM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FMO2CUINZBL7VHZGL7YQ5AF4UM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FMO2CUINZBL7VHZGL7YQ5AF4UM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FMO2CUINZBL7VHZGL7YQ5AF4UM.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">IMF Managing Director Kristalina Georgieva meets with Zambia&#8217;s Minister of Finance Situmbeko Musokotwane and Governor of the Bank of Zambia Denny Kalyalya at the Ministry of Finance in Lusaka, Zambia January 23, 2023. IMF Photo/Kim Haughton/Handout via REUTERS/File Photo</figcaption></figure>



LONDON/NEW YORK, March 19 (Reuters)&nbsp;&#8211;&nbsp;A group of Zambia&#8217;s international bondholders has signed a non-disclosure agreement with the government to discuss a $3 billion debt restructuring proposal, three sources familiar with&nbsp;the situation&nbsp;said on Tuesday.



The government sent a formal debt rework proposal to the steering committee of the creditor group last week, two of the sources said. Entering into a non-disclosure agreement usually marks the start of formal restructuring talks.



A Zambian finance ministry spokesperson did not immediately respond to a request for comment. Advisers for the creditor group declined to comment.



Zambian President Hakainde Hichilema in late February said the last remaining official creditors, China and India, had signed restructuring agreements, raising hopes that the much-delayed restructuring process would soon be finished.



The official creditors had objected to previous bondholder deals on the grounds that they did not offer comparable debt relief to theirs, but did not say at the time what the bondholders needed to propose instead.



Zambia has three defaulted bonds outstanding, with original maturities in 2022, 2024 and 2027.



Zambia was the first African country to default in the COVID-19 era, in late 2020, but its restructuring process has been beset by setbacks, with the rejection of the bondholder deals last year being only the latest.



(Reporting by Libby George, Rodrigo Campos and Rachel Savage; Editing by Karin Strohecker, Leslie Adler and Mark Porter)

FMO2CUINZBL7VHZGL7YQ5AF4UM

Zambia bondholders begin formal talks on $3 billion debt rework proposal, sources say

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="405" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107389217-1710835109118-gettyimages-1832684732-ETHIOPIA_ECO.jpeg" alt="" class="wp-image-467962" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107389217-1710835109118-gettyimages-1832684732-ETHIOPIA_ECO.jpeg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107389217-1710835109118-gettyimages-1832684732-ETHIOPIA_ECO-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107389217-1710835109118-gettyimages-1832684732-ETHIOPIA_ECO-160x90.jpeg 160w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">ADDIS ABABA, Ethiopia &#8211; Dec. 7, 2023: A branch of the Commercial Bank of Ethiopia in Addis Ababa. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



Ethiopia’s largest bank is struggling to recoup millions of dollars after a glitch over the weekend allowed customers to withdraw unlimited funds, according to local media reports.



More than $40 million was reportedly withdrawn from the state-owned Commercial Bank of Ethiopia or transferred to other banks, as customers discovered they could withdraw more than their total balance. Transactions were halted several hours later.



The bank’s President Abie Sano told a press conference on Monday that a large portion of the cash was withdrawn by students, with the BBC reporting that long lines formed at campus ATMs.



Several universities have urged students to return cash that isn’t theirs, and Sano reportedly told Monday’s press conference that anybody who returns the money will not be criminally prosecuted.



In a post on X, the CBE confirmed the service interruption but denied that it was the result of a cyber attack. It added that its ATM services were now “fully operational,” according to a Google translation.



Ethiopia’s central bank, which oversees its financial sector, said in a statement that the interruption was a result of system security checks and “not an incident that endangers the bank, its customers and the entire financial system,” according to a Google translation.



CNBC has contacted the CBE for comment.

107389217-1710835109118-gettyimages-1832684732-ETHIOPIA_ECO

‘Glitch’ at Ethiopia’s biggest bank sees customers withdraw millions that isn’t theirs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-820x462.jpeg" alt="" class="wp-image-463267" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Copper plates on wagons ready for onward shipping at the Mufulira refinery, operated by Mopani Copper Mines Plc, in Mufulira, Zambia, on Friday, May 6, 2022. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



KoBold Metals, a mining startup backed by billionaires including Bill Gates and Jeff Bezos, is bullish on the discovery potential of some of the most sought-after energy transition metals.



It comes shortly after the Silicon Valley-based metals exploration company announced the rare discovery of a vast copper deposit in Zambia.



Josh Goldman, president of KoBold Metals, told CNBC that the firm’s investors were thrilled by the discovery, particularly at a time when the mining industry is struggling to keep pace with a metals-intensive energy transition.



“They are feeling delighted about this news because this is what we set out to do. The point of the company is to discover, find and develop mineral resources that we need for the energy transition,” Goldman said via videoconference.



“This is the first major win for the company, and it is among the most extraordinary ore bodies in the world,” he added.



KoBold Metals says it uses artificial intelligence to create a “treasure map” to help find new deposits of materials such as copper, lithium, cobalt and nickel. The company currently has more than 60 exploration-stage projects across several countries.



The 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.



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



KoBold Metals is now focusing on advancing its Mingomba project in Zambia, which it expects to start producing copper within 10 years, and discovering the next trove of critical minerals, according to Goldman.



“The Central African copper belt is the part of the world where you can find things of this extraordinary grade. And that’s why we are there. The geology is extraordinary,” he said.



“It is not just that there haven’t been deposits like this. It’s that there are more to be found. Here is Mingomba — and then where is the next Mingomba after this? This is the part of the world and style of deposit where we can find resources of this scale and quality, and Zambia provides an operating environment that is really extraordinary,” he added.



Copper is in high demand due to its use in renewable energy infrastructure, energy storage systems and electric vehicles. Zambia is Africa’s second-largest copper producer after the Democratic Republic of the Congo.



<h2 class="wp-block-heading" id="h-the-potential-for-discovery-is-great"><a></a>‘The potential for discovery is great’</h2>



KoBold Metals said that most copper currently being mined has an ore grade of around 0.6%, whereas its Mingomba deposit has copper ore grades of more than 5%.



“That means that you have to mine a lot less rock in order to get the same amount of copper,” Goldman said.



“For a 0.5% ore deposit, you have to mine 200 kilograms of rock to get 1 kilogram of copper. For a 5% ore deposit, you have to mine 20 kilograms of rock to get 1 kilogram of copper. So, that’s a lot less Earth that you have to disturb, that’s a lot less waste that you create.”



Goldman said KoBold Metals plans to list shares publicly in the next three to four years.



“We do expect in due course that being a public company is likely going to be the best way to finance the business,” he added.



“The point of the company is to be serially successful in exploration — and to improve exploration success overall and to decrease the capital intensity of discovery,” Goldman said. “We think the potential for discovery is great. There is a lot more to be found in Zambia.”

107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER

Bill Gates-backed startup confident it can unearth more buried treasure after a historic copper find

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="508" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEBBS0LW.jpg" alt="" class="wp-image-460039" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEBBS0LW.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEBBS0LW-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEBBS0LW-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEBBS0LW-768x488.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">A general picture shows the skyline of Tanzania&#8217;s port city of Dar es Salaam, July 12, 2013. REUTERS/Andrew Emmanuel</figcaption></figure>



DAR ES SALAAM, Feb 26 (Reuters)&nbsp;&#8211;&nbsp;Tanzania has switched on the first turbine of a new hydroelectric plant set to double power generation capacity but which has drawn stiff opposition from conservationists because of its location in a U.N.-designated World Heritage Site.



Doto Biteko, energy minister and deputy prime minister, said while visiting the 2,115 megawatt (MW) Julius Nyerere Hydropower Plant on Sunday that the turbine, with a capacity of 235 MW, was now contributing power to the grid.



He said the turbine would help reduce months-long power rationing, adding that rationing would end when the second turbine of the nine-turbine plant joins the grid next month.



Before construction of the hydro project began in 2019, conservationists warned that building a dam on a major river that runs through the Selous Game Reserve could affect wildlife and their habitats downstream.



The reserve is among the largest protected areas in Africa, harbouring one of the most significant concentrations of animals including elephant, black rhino and cheetah and a large variety of habitats, according to United Nations agency UNESCO.



The government forged ahead with the project under former President John Magufuli and his successor Samia Suluhu Hassan&#8217;s administration considers it a key part of efforts to boost power supply in a country where less than half of the population has access to electricity.



Biteko said the government would ensure all hydroelectric projects respect water sustainability.



Before the first turbine of the Julius Nyerere Hydropower Plant was connected to the grid, Tanzania had an installed generation capacity of 1,900 MW, with natural gas contributing nearly two-thirds of that amount.



(Reporting by Nuzulack Dausen; Editing by Alexander Winning and Miral Fahmy)

A general picture shows the skyline of Tanzania’s port city of Dar es Salaam

Tanzania switches on first turbine of hydro plant in World Heritage Site

<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 15 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s government said on Thursday that it would buy back more than $1.4 billion of its $2 billion international bond maturing in June, announcing the results of a tender offer it launched last week.



The East African country has been on the radar of investors because they feared it might not be able to repay due to its strained public finances.



This week Kenya sold a new $1.5 billion Eurobond at great cost to fund the buyback of a large portion of the $2 billion bond.



The government said in a regulatory notice that it would buy $1.443 billion in aggregate principal amount of the bond, slightly more than the maximum tender offer it had announced on Tuesday.



It will buy investors&#8217; holdings back at par, or face value.



An accrued interest payment will be paid in addition to the purchase price, the notice said.



Confidence that the Eurobond would be repaid has lifted the local shilling currency KES= in recent days, helping it recover to its strongest level against the dollar since June 2023 on Thursday.



However the double-digit yield Kenya was forced to pay on the $1.5 billion bond sold this week is an indication that it is still seen as risky by investors.



The pressure on the Kenyan government&#8217;s finances has forced it to try to squeeze every shilling it can from taxpayers, angering voters who had supported the current government on the premise it would lower the cost of living.



But it benefits from international backing, including from the International Monetary Fund, which boosted its support programme by $941 million in January.



(Reporting by George Obulutsa and Alexander Winning; Additional reporting by Rachel Savage; Editing by Kirsten Donovan, Andrew Heavens and Alex Richardson)

XRWAJLZOAVK3DL2J5JMRWBBQ6A

Kenya to buy back over $1.4 bln of bond that had unnerved investors

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="469" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-820x469.jpg" alt="" class="wp-image-454063" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-820x469.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-300x172.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-157x90.jpg 157w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-768x440.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-1536x879.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the capital city of Kampala in Uganda, July 4, 2016. REUTERS/James Akena</figcaption></figure>



KAMPALA, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s central bank raised 1.3 trillion shillings ($339 million) in a rare private placement Treasury bond auction this week, against a target of 1.5 trillion shillings, results of the auction showed on Thursday.



The private placement bond auction was the first since June 2022.



The bank typically sells government bonds monthly through open auctions, but in 2020 began selling some bonds using private placements where it invites only specific banks to take part in the offer as opposed to customary open auctions.



In this week&#8217;s auction, three-year, five-year, 10-year, 15-year and 20-year Treasury bonds were on offer and the central bank received bids worth 2.3 trillion shillings.



The debt notes are due to mature at various dates between 2026 and 2043.



Eight banks were invited to participate in the auction, including local units of global lenders Standard Bank, Standard Chartered, Citibank and Absa.



($1 = 3,830.0000 Ugandan shillings)



(Reporting by Elias Biryabarema; Editing by Bhargav Acharya and Mark Potter)

A general view shows the capital city of Kampala in Uganda

Uganda’s central bank nets $339 mln in rare private placement debt auction

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-820x547.jpg" alt="" class="wp-image-453994" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">NEW YORK, NEW YORK &#8211; SEPTEMBER 23: Ethiopia&#8217;s Deputy Prime Minister Demeke Mekonnen Hassen speaks during the United Nations General Assembly (UNGA) at the United Nations headquarters on September 23, 2023 in New York City. Heads of state and governments from at least 145 countries are gathered for the 78th UNGA session amid the ongoing war in Ukraine and natural disasters such as earthquakes, floods and fires around the globe. (Photo by David Dee Delgado/Getty Images)</figcaption></figure>



ADDIS ABABA, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia&#8217;s parliament on Thursday approved the appointment of intelligence service chief Temesgen Tiruneh as deputy prime minister, replacing Demeke Mekonnen, who had served in the role for 11 years, the government said.



In addition, parliament accepted the nomination of Taye Atske Selassie, a former ambassador to the United Nations, as foreign minister. Demeke had also served as foreign minister since 2020.



Temesgen, who has coordinated the government&#8217;s response to a conflict that broke out last year in the Amhara region, was elected in late January to succeed Demeke as a vice president of the ruling Prosperity Party.



A vice president of the party typically serves as deputy prime minister.



Ethiopia&#8217;s national security adviser Redwan Hussein was chosen to replace Temesgen as head of the National Intelligence and Security Service (NISS) &#8211; Ethiopia&#8217;s top spy agency.



A long-time ally of Abiy, Redwan was also the lead government negotiator during the peace deal brokered in Pretoria to end the civil war in the Tigray region in 2022.



His previous experience includes serving as a state minister at the foreign affairs ministry, and also as Ethiopia&#8217;s ambassador to Eritrea.



Demeke has been a face of continuity during a turbulent period in Ethiopian politics. He was appointed deputy prime minister after the death of longtime Prime Minister Meles Zenawi in 2012 and survived a reorganisation of the ruling party after Abiy came to power in 2018.



Abiy appointed Demeke as foreign minister days after civil war broke out in November 2020 in the northern Tigray region. The conflict lasted two years and killed tens of thousands of people.



Mekdes Daba, a former World Health Organization official, has also been appointed to replace Lia Tadesse as health minister, the Ethiopian Broadcasting Corporation said.



(Reporting by Dawit Endeshaw; Writing by George Obulutsa and Bhargav Acharya; Editing by Aaron Ross and Andrew Cawthorne)

World Leaders Gather In New York For The United Nations General Assembly

Ethiopia intelligence head Temesgen approved as deputy prime minister

<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)

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)

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East Africa

Zambia’s debt-rework battle scars mar its Common Framework success

Commercial Bank of Ethiopia recovers $11 mln lost in system glitch

Zambia strikes preliminary deal on $3 bln international bond rework

Zambia bondholders begin formal talks on $3 billion debt rework proposal, sources say

‘Glitch’ at Ethiopia’s biggest bank sees customers withdraw millions that isn’t theirs

Bill Gates-backed startup confident it can unearth more buried treasure after a historic copper find

Tanzania switches on first turbine of hydro plant in World Heritage Site

Kenya to buy back over $1.4 bln of bond that had unnerved investors

Uganda’s central bank nets $339 mln in rare private placement debt auction

Ethiopia intelligence head Temesgen approved as deputy prime minister

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

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