<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/Broken-infrastructure-drought-cause-power-rationing-in-Tanzania-official-820x547.jpg" alt="" class="wp-image-427763" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Broken-infrastructure-drought-cause-power-rationing-in-Tanzania-official-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Broken-infrastructure-drought-cause-power-rationing-in-Tanzania-official-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Broken-infrastructure-drought-cause-power-rationing-in-Tanzania-official-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Broken-infrastructure-drought-cause-power-rationing-in-Tanzania-official-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Broken-infrastructure-drought-cause-power-rationing-in-Tanzania-official-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Broken-infrastructure-drought-cause-power-rationing-in-Tanzania-official-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An aerial view shows an oil factory of Idemitsu Kosan Co. in Ichihara, east of Tokyo, Japan November 12, 2021, in this photo taken by Kyodo. Picture taken on November 12, 2021. Mandatory credit Kyodo/via REUTERS/Files</figcaption></figure>



DAR ES SALAAM, Sept 28 (Reuters) &#8211; Maintenance issues and climate change-induced water shortages have caused a 400-megawatt electricity shortfall in Tanzania, triggering power rationing across the East African nation, the state power supplier said.



Tanzania&#8217;s national grid, which has an installed capacity of more than 1,900 MW, was suffering from broken infrastructure at gas wells and gas-fired power stations, as well as reduced water levels at hydropower dams, said Gissima Nyamo-Hanga, managing director of the Tanzania Electric Supply Company (TANESCO).



TANESCO, which is wholly owned by the government, expects to complete maintenance operations and resolve the shortfall by the end of March next year, Nyamo-Hanga told reporters late on Wednesday.



Despite the government embarking on one of the fastest roll-outs of electricity access in Sub-Saharan Africa, only 38% of Tanzanians have power, according to the World Bank.



Nearly two thirds of Tanzania&#8217;s electricity is generated from natural gas, and around 30% from hydropower. The largest peak electricity demand ever recorded was 1,431 MW in May this year, up 7% from a year before, the energy ministry says.



&#8220;We expect that this problem will start easing within two weeks, and our plan is to reduce the shortage by an average of 100 MW a month,&#8221; Nyamo-Hanga said.



The 2,115 MW Julius Nyerere hydropower dam started filling with water in December last year and is anticipated to be finished by June 2024, more than doubling the country&#8217;s installed capacity, according to the energy ministry.



The government is engaged in several other power projects including a 150 MW solar farm as part of its goal to reach 5,000 MW capacity by 2025.



Nyamo-Hanga said the Nyerere dam was 92% complete, but that climate change was causing a shortage of rain and reducing water levels at existing dams. (Reporting by Nuzulack Dausen; Editing by Hereward Holland and Anil D&#8217;silva)

An aerial view shows an oil factory of Idemitsu Kosan Co. in Ichihara

Broken infrastructure, drought cause power rationing in Tanzania- official

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-820x523.jpg" alt="" class="wp-image-427744" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-820x523.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-1536x980.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Soccer Football &#8211; Africa Cup of Nations &#8211; Final &#8211; Senegal v Egypt &#8211; Olembe Stadium, Yaounde, Cameroon &#8211; February 6, 2022 General view of the Africa Cup of Nations trophy on display before the match REUTERS/Mohamed Abd El Ghany/File Photo </figcaption></figure>



CAIRO, Sept 27 (Reuters)&nbsp;&#8211;&nbsp;Morocco were awarded the hosting of the 2025&nbsp;Africa&nbsp;Cup of Nations finals on Wednesday, replacing Guinea who were stripped of the right to host the tournament last year,&nbsp;while the 2027 rights were handed to a co-bid from Kenya, Tanzania and Uganda.



Morocco won by default after Algeria, Zambia and a joint bid from Benin and Nigeria all withdrew before the vote of the Confederation of&nbsp;African Football&#8217;s executive committee in Cairo on Wednesday.



The north&nbsp;African country was a runaway favourite and will see the decision as a boost to their hopes of co-hosting the 2030 World Cup with Portugal and Spain but victory for the joint East&nbsp;African bid for 2027 was a surprise.



It returns the finals to the region for the first time since 1976 as they beat Botswana, Egypt and Senegal in a vote. Algeria were also a candidate but withdrew on Tuesday.



Kenya had previously been awarded the hosting in 1996 but were stripped because of poor preparation. The country only recently had a long FIFA ban for government interference in the running of their football federation lifted.



“The tournament has to be spread around the regions and contribute to the development of football,” CAF president Patrice Motsepe said.



The 2025 finals will be only the second time that Morocco will host&nbsp;Africa&#8217;s most popular sporting event, almost four decades after the previous time in 1988.



<h2 class="wp-block-heading" id="h-vigorously-condemned">VIGOROUSLY CONDEMNED</h2>



Morocco were to have hosted the 2015 Cup of Nations finals but pulled out amid concerns over the spread of the Ebola virus in west&nbsp;Africa. It was a decision vigorously condemned at the time by CAF, who banned the country from&nbsp;African competition for two years.



But Morocco have since embarked on a diplomatic charm offensive across the continent, using football to develop ties. They have hosted a variety of CAF events at women’s and age group level and also allowed many&nbsp;African countries, who have been slapped with bans on hosting international games because of poor pitch or stadium conditions, to use stadia in Morocco.



When Morocco last hosted the Cup of Nations, it was an eight team event played in only two venues, Casablanca and Rabat.



For 2025 they have proposed using six stadiums, in Agadir, Casablanca, Fes, Marrakech, Rabat and Tanger.



The hosting of the Cup of Nations has had a checkered history in the last decade, starting with South&nbsp;Africa&nbsp;stepping into replace war-torn Libya in 2013.



In 2014 Guinea were award the right to host the 2023 finals, along with Cameroon (2019) and Ivory Coast (2021).



But Cameroon were declared not ready for the 2019 finals, so Egypt stepped in. Cameroon then hosted the 2021 edition, delayed by one year by the COVID-19 pandemic.



Ivory Coast were supposed the host the 2023 event in June but it has been postponed by six months because of concerns over the rainy season in West&nbsp;Africa.



The next Cup of Nations finals are being held from January 13-February 11.



(Writing by Mark Gleeson in Cape Town; Editing by Christian Radnedge, Bernadette Baum and Pritha Sarkar)

U72WAYHOJJPY5GXIUT4NSNDVHY-2

Soccer-Morocco and East African co-bid to host future Africa Cup of Nations finals

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="499" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-820x499.jpg" alt="" class="wp-image-427732" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-820x499.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-300x183.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-148x90.jpg 148w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-768x468.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-1536x936.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenya&#8217;s Finance Minister Njuguna Ndung&#8217;u presents the Government Budget for the 2023/24 fiscal year inside the Parliament building in Nairobi, Kenya June 15, 2023. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, Sept 27 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s struggle with a heavy debt load and pressure on its hard currency reserves is not unique since other nations are facing the same situation, its finance minister said on Wednesday.



Njuguna Ndung&#8217;u was responding to a research note by U.S. investment bank JPMorgan which&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3B211Y&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">said</a>&nbsp;on Tuesday that the East African nation was &#8220;walking a tightrope&#8221; to avoid a crisis due to a maturing dollar bond and persistent currency weakness.



&#8220;All low- and middle-income countries are walking a tightrope given the current economic constraints globally. The Kenyan case is being featured because of the Eurobond 2024,&#8221; the minister told Reuters, referring to a bond maturing next June.



The upcoming Eurobond maturity &#8220;should not be a big deal&#8221;, Ndung&#8217;u said, since Kenya can use its reserves at the central bank to pay off the debt.



&#8220;That will not (however) solve the persistent negative shocks that low- and middle-income countries are facing. A more well mapped set of solutions will be needed,&#8221; he said.



During his speech to the United Nations General Assembly in New York last week, Kenya&#8217;s President William Ruto called for an extension of the tenor of low income countries&#8217; sovereign bonds, to help them avert a financial crisis.



He also called for the provision of a 10-year grace period, and for the creation of special drawing rights for those countries at the International Monetary Fund, to be allocated on a need basis, instead of the usual entitlement mechanism.



(Reporting by Duncan Miriri; Editing by Mark Potter)

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

‘Tightrope’ debt situation not unique to Kenya, finance minister says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/download-71.jpg" alt="" class="wp-image-427693" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/download-71.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/download-71-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/download-71-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/download-71-768x512.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">Gold bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, August 14, 2019. REUTERS/Michael Dalder</figcaption></figure>



DAR ES SALAAM, Sept 25 (Reuters)&nbsp;&#8211;&nbsp;Tanzania has started buying gold locally as a way of boosting its foreign exchange reserves, the central bank said on Monday.



The central bank first announced its intention of buying gold in late August.



&#8220;The bank is therefore purchasing gold from domestic miners and traders, in Tanzanian shillings,&#8221; Bank of Tanzania (BOT) said in a statement.



On Friday, central bank Governor Emmanuel Tutuba said they were planning to buy six tonnes of gold from small and middle scale miners and other traders by the end of the year and had already bought and sold 418 kg (921.53 lb) of the precious metal.



Gold is a leading foreign exchange earner for Tanzania, bringing the country $2.91 billion in the year to end-June from $2.69 billion a year earlier, according to central bank data.



The bank had in August put its official foreign exchange reserves at $5.25 billion recorded in July, sufficient to cover about 4.7 months of projected imports.



(Reporting by Nuzulack Dausen; Editing by George Obulutsa and Josie Kao)

download-71

Tanzania has started domestic gold purchases to boost forex reserves

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-820x547.jpg" alt="" class="wp-image-419784" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenya&#8217;s President-elect William Ruto speaks after the Supreme Court upheld his win in Nairobi, Kenya September 5, 2022. REUTERS/Monicah Mwangi</figcaption></figure>



Sept 20 (Reuters)&nbsp;&#8211;&nbsp;Haiti and Kenya established diplomatic relations on Wednesday, according to a statement on social media platform X by Ariel Henry, prime minister of the Caribbean nation.



The move comes amid international discussions over the possibility of Kenya leading a United Nations-backed multinational security force to help police fight escalating gang warfare in Haiti.



The United Nations Security Council could vote on the multinational force for Haiti in about a week, Brian Nichols, U.S. assistant secretary for western hemisphere affairs, said in an interview with Voice of America this week.



Henry&#8217;s government first sought international assistance last October, but despite repeated calls from the United Nations, the request went unanswered until Kenya said it was prepared to lead such a group in July.



With scarce resources, Haiti&#8217;s police have been battling powerful gangs now estimated to control large parts of the country.



Kenyan President William Ruto and Henry witnessed the signing of the pact establishing ties at the Kenyan mission in New York.



&#8220;As the leading nation in the U.N.-backed security mission in Haiti, we are committed to deploying a specialised team,&#8221; Ruto said in a statement issued by his office.



The team would assess the situation and&nbsp;prepare&nbsp;strategies to ensure long-term solutions, he added.



(Reporting by Valentine Hilaire in Mexico City and George Obulutsa in Nairobi; Editing by Kylie Madry and Clarence Fernandez)

Kenya’s top court to deliver verdict on disputed presidential election

Haiti, Kenya set up diplomatic ties

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/KYJW4AVU6RIG7KNMEUDZMCQXNQ.jpg" alt="" class="wp-image-427616" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/KYJW4AVU6RIG7KNMEUDZMCQXNQ.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/KYJW4AVU6RIG7KNMEUDZMCQXNQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/KYJW4AVU6RIG7KNMEUDZMCQXNQ-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">A general view of the Makola market, one of the country&#8217;s largest trading centres in Accra, Ghana March 26, 2022. REUTERS/Francis Kokoroko</figcaption></figure>



ACCRA, Sept 20 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s economic growth slowed slightly to 3.2% year-on-year in the second quarter compared with a downwardly revised 3.3% growth rate in the first quarter, the country&#8217;s statistics agency said on Wednesday.



The gold-, oil- and cocoa-producing nation has been battling its worst economic crisis in a generation brought on by spiralling public debt.



It sealed a $3 billion, three-year loan programme with the International Monetary Fund in May.



The government has forecast economic growth will slow to 1.5% this year from 3.1% in 2022. First-quarter growth was revised down to 3.3% from a previous estimate of 4.2%, the Ghana Statistical Service said on Wednesday.



Growth in the second quarter was driven by the mining, agriculture, health, transport, and information technology sectors.



Agriculture grew by 6.0% and the services sector 6.3%, while industry contracted 1.9%. The construction sub-sector contracted by 11.7%, the biggest drop in five years.



The statistics agency also said producer inflation&nbsp;GHPPIY=ECI&nbsp;slowed to 28.3% in annual terms in August, down from a revised 32.9% in July.



(Reporting by Christian Akorlie and Maxwell Akalaare Adombila; Writing by Nellie Peyton; Editing by Alexander Winning and Tomasz Janowski)

People make trade in Accra

Ghana’s second quarter economic growth dips vs revised first quarter

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="528" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/07/NWUKRFCQGZISRFNU5CO24TD4HI-820x528.jpg" alt="" class="wp-image-418309" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/07/NWUKRFCQGZISRFNU5CO24TD4HI-820x528.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/NWUKRFCQGZISRFNU5CO24TD4HI-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/NWUKRFCQGZISRFNU5CO24TD4HI-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/NWUKRFCQGZISRFNU5CO24TD4HI-768x495.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/NWUKRFCQGZISRFNU5CO24TD4HI-1536x990.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/NWUKRFCQGZISRFNU5CO24TD4HI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Rwanda&#8217;s President Paul Kagame delivers a speech in front of so-called &#8220;BioNTainer&#8221;, a system to produce vaccines in Africa, during a presentation in Marburg, Germany, February 16, 2022. REUTERS/Fabian Bimmer</figcaption></figure>



NAIROBI, Sept 20 (Reuters)&nbsp;&#8211;&nbsp;Rwanda&#8217;s President Paul Kagame said he will stand for re-election next year, hoping to extend nearly a quarter of a century in power.



Kagame, who became president in 2000, is eligible to continue in office for another decade after a constitutional amendment in 2015 changed term limits that would have forced him to step down two years later.



He was asked in an interview with the pan-African Jeune Afrique magazine published on Tuesday about his intentions for next year&#8217;s election.



&#8220;I am happy with the confidence that the Rwandans have shown in me. I will always serve them, as much when I can. Yes, I am indeed a candidate,&#8221; he said.



Kagame won the last election in August 2017 for a seven-year term with 98.63% of the vote, according to the electoral commission.



Kagame has won international acclaim for presiding over peace and economic growth since the end of the 1994 genocide, in which an estimated 800,000 ethnic Tutsis and moderate Hutus were killed.



But he has faced mounting criticism for what human rights groups say are the suppression of political opposition and the muzzling of independent media.



Kagame has rejected these accusations.



The United States in 2015 criticised the constitutional change, saying Kagame should step down when his term ended and allow a new generation of leaders to come through.



In the interview with Jeune Afrique, Kagame said he was not bothered by criticism from Western countries.



&#8220;People are supposed to be independent and should be allowed to organise themselves as they wish,&#8221; he said.



(Writing by George Obulutsa; Editing by Aaron Ross and Toby Chopra)

FILE PHOTO: BioNTech’s vaccine manufacturing plans for Africa presented in Marburg

Rwanda’s veteran president Kagame to seek re-election in 2024

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/VSVD6RVVCRP4VNEDSAFARXOJTY-1-820x551.jpg" alt="" class="wp-image-427508" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/VSVD6RVVCRP4VNEDSAFARXOJTY-1-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/VSVD6RVVCRP4VNEDSAFARXOJTY-1-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/VSVD6RVVCRP4VNEDSAFARXOJTY-1-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/VSVD6RVVCRP4VNEDSAFARXOJTY-1-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/VSVD6RVVCRP4VNEDSAFARXOJTY-1-1536x1031.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/VSVD6RVVCRP4VNEDSAFARXOJTY-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Zambia’s President Hakainde Hichilema arrives to attend the 36th Ordinary Session of the Assembly of the African Union at the African Union Headquarters in Addis Ababa, Ethiopia February 19, 2023. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



BEIJING, Sept 15 (Reuters)&nbsp;&#8211;&nbsp;President Xi Jinping said on Friday China supports Zambia in safeguarding its national sovereignty, security and development interests, while encouraging more imports from the southern African country.



Xi met Zambian President Hakainde Hichilema in Beijing and the two countries upgraded their ties to a&nbsp;&#8220;comprehensive strategic cooperative partnership&#8221;, Chinese state news agency Xinhua said.Xi vowed to work with Zambia to expand cooperations covering infrastructure, agriculture, mining and clean energy.



Zambia is seeking to restructure its external debt with China and find more trade opportunities with the world&#8217;s second-largest economy.



Hichilema thanked China for supporting the African Union&#8217;s accession to the Group of 20 major economies at its Sept. 9-10 summit in New Delhi, and for its positive role in resolving Zambia&#8217;s debt problem, Xinhua said.



It was not immediately known whether China and Zambia signed any debt agreements.



China has significant commercial interests in Zambia, having invested in over 30 projects through its Belt and Road Initiative between 2014 and 2023, according to data compiled by the American Enterprise Institute think tank.



It shows the projects were worth $11.3 billion in total, ranging from the energy sector to agriculture and aviation.



China also takes around one fifth of Zambian exports, predominantly copper.



&#8220;Zambia abides by the one-China principle, highly appreciates the guiding concepts and principles of Chinese-style modernisation, and hopes to learn from China&#8217;s development experience,&#8221; Hichilema said at the meeting with Xi.



Xi said China was encouraging the entry of more Zambian high-quality products into the Chinese market and supporting more Chinese-funded enterprises to invest in Zambia.



Hichilema will be in China until Saturday.



(Reporting by Ethan Wang, Liz Lee, Joe Cash and Bernard Orr; editing by Jacqueline Wong, Tom Hogue and Mark Heinrich)

FILE PHOTO: Zambia’s President Hakainde Hichilema attends African Union assembly in Addis Ababa

China, Zambia upgrade ties, focus on key economic sectors

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/2L6UNHAOHBNBFHTCFBPWLTOBJA-820x547.jpg" alt="" class="wp-image-427486" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/2L6UNHAOHBNBFHTCFBPWLTOBJA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/2L6UNHAOHBNBFHTCFBPWLTOBJA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/2L6UNHAOHBNBFHTCFBPWLTOBJA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/2L6UNHAOHBNBFHTCFBPWLTOBJA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/2L6UNHAOHBNBFHTCFBPWLTOBJA-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/2L6UNHAOHBNBFHTCFBPWLTOBJA.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A street food vendor sells barbecue chicken to customers, after Uganda’s president Yoweri Museveni reopened the economy which permitted bars and musicians to perform amid the coronavirus disease (COVID-19) containment efforts, in Nakulabye suburb of Kampala, Uganda January 31, 2022. REUTERS/Abubaker Lubowa</figcaption></figure>



KAMPALA, Sept 14 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s economy is likely to grow by 6.5% in the 2024/25 financial year, its finance minister said on Thursday, accelerating slightly from expected growth in the current year and driven by the industrial, services and agriculture sectors.



The government forecasts the economy will grow 6% in the 2023/24 financial year which ends in June 2024.



Finance Minister Matia Kasaija said public debt as a percentage of gross domestic product (GDP) had declined to 47% at the end of June from 48.4% a year earlier.



There had been &#8220;a slower rate of debt accumulation, in line with government&#8217;s commitments to fiscal consolidation,&#8221; Kasaija told an event at which he presented the government&#8217;s budget strategy.



In absolute terms total public debt as at end of June stood at 86.8 trillion Ugandan shillings ($23.33 billion), compared with 78.8 trillion shillings in June 2022, but economic growth meant its share of GDP shrank.



The World Bank last month halted all new lending to Uganda to protest the passing of a tough new anti-gay law.



This month, ratings agency Fitch affirmed Uganda&#8217;s rating at B+ with a negative outlook, citing problems with accessing cheap credit after the World Bank move.



Overall the size of Uganda&#8217;s economy is projected to hit US$ $63.36 billion in 2024/25, according to the finance ministry.



Kasaija said funding priorities in the next financial year would include expediting the construction of a crude oil refinery, with government meeting majority funding for the project rather than sourcing it from private investors.



A previous deal with an international consortium that includes a unit of U.S. firm Baker Hughes BKR.O to fund the refinery collapsed in July.



Uganda and international oil firms like France&#8217;s TotalEnergies&nbsp;TTEF.PA, and China&#8217;s CNOOC&nbsp;0883.HK&nbsp;are also implementing multi-billion dollar projects including a crude oil pipeline. Commercial oil production is projected to take off in 2025.



($1 = 3,720.0000 Ugandan shillings)



(Reporting by Elias Biryabarema; Editing by George Obulutsa and Susan Fenton)

2L6UNHAOHBNBFHTCFBPWLTOBJA

Uganda’s economy set to grow 6.5% in 2024/25 -finance minister

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/VSVD6RVVCRP4VNEDSAFARXOJTY-820x551.jpg" alt="" class="wp-image-427314" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/VSVD6RVVCRP4VNEDSAFARXOJTY-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/VSVD6RVVCRP4VNEDSAFARXOJTY-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/VSVD6RVVCRP4VNEDSAFARXOJTY-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/VSVD6RVVCRP4VNEDSAFARXOJTY-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/VSVD6RVVCRP4VNEDSAFARXOJTY-1536x1031.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/VSVD6RVVCRP4VNEDSAFARXOJTY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Zambia’s President Hakainde Hichilema arrives to attend the 36th Ordinary Session of the Assembly of the African Union at the African Union Headquarters in Addis Ababa, Ethiopia February 19, 2023. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



BEIJING, Sept 8 (Reuters)&nbsp;&#8211;&nbsp;Zambian President Hakainde Hichilema will visit China from Sunday, China&#8217;s foreign ministry announced on Friday, bringing the indebted African country&#8217;s long-running struggle to restructure its external debt to its biggest creditor&#8217;s door.



Around two-thirds of the $6.3 billion debt Zambia is in the process of restructuring with its official creditors is owed to the Export-Import Bank of China, underlining the importance of Beijing&#8217;s support to an agreement reached in June enabling debt relief.



Zambia in 2020 defaulted on its sovereign debt and became a test case for a debt restructuring framework initiated by the Group of 20 wealthy nations during the pandemic intended to streamline providing debt relief, though it became bogged down with disagreements over which lenders should accept haircuts.



The process has been painfully slow for Zambia, which in June at a summit in Paris finally struck a deal with its bilateral creditors &#8211; including China &#8211; to reschedule its payments over more than 20 years and with a three-year grace period during which only payments on interest are due.



The agreement meant the International Monetary Fund could approve the disbursement of a further $189 million in support, part of a $1.3 billion package approved in September.



To formalise the agreement, Zambia should sign an memorandum of understanding (MoU) with its official creditors, which besides China includes the United Kingdom, France, South Africa, India and Israel, which Zambia has it said it aims to do by the second review of the IMF&#8217;s rescue loan programme, scheduled for October.



&#8220;During President Hichilema&#8217;s visit&#8230; the two heads of state will hold talks and attend a ceremony to sign cooperation documents,&#8221; Mao Ning, a Chinese foreign ministry spokesperson, told a regular briefing on Friday.



&#8220;We will continue to maintain close communication with all parties in the Debt Committee and work with them on any follow up work,&#8221; she added, when asked whether that meant China would sign the MoU.



Hichilema will be in China from Sept. 10 to 16, the announcement said.



China has significant commercial interests in Zambia, having invested in over thirty projects in the country through its Belt and Road Initiative between 2014 and 2023, according to data compiled by the American Enterprise Institute think tank, worth $11.3 billion in total, ranging from the energy sector to agriculture and aviation.



The world&#8217;s second-largest economy also takes around one fifth of Zambia&#8217;s exports, predominantly copper, which China has been buying in bulk across Africa to feed its hungry renewable energy, construction and transportation sectors.



(Reporting by Joe Cash and Liz Lee; Editing by Tom Hogue &amp; Simon Cameron-Moore and Sharon Singleton)

Zambian president to visit China, seeks to formalise June debt deal

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="420" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/tag_reuters.com2023_newsml_LYNXMPEJ7U0ID_12023-08-31T112513Z_1_LYNXMPEJ7U0ID_RTROPTP_3_UBER-CLIMATE-KENYA.jpg" alt="" class="wp-image-427160" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/tag_reuters.com2023_newsml_LYNXMPEJ7U0ID_12023-08-31T112513Z_1_LYNXMPEJ7U0ID_RTROPTP_3_UBER-CLIMATE-KENYA.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/tag_reuters.com2023_newsml_LYNXMPEJ7U0ID_12023-08-31T112513Z_1_LYNXMPEJ7U0ID_RTROPTP_3_UBER-CLIMATE-KENYA-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/tag_reuters.com2023_newsml_LYNXMPEJ7U0ID_12023-08-31T112513Z_1_LYNXMPEJ7U0ID_RTROPTP_3_UBER-CLIMATE-KENYA-137x90.jpg 137w" sizes="auto, (max-width: 640px) 100vw, 640px" /><figcaption class="wp-element-caption">Uber boda boda riders prepare to ride the first fleet of the company&#8217;s electric product during their launch in Nairobi, Kenya, August 31, 2023. REUTERS/Monicah Mwangi REUTERS</figcaption></figure>



NAIROBI, Aug 31 (Reuters) &#8211; Ride-hailing firm Uber UBER.N on Thursday launched an electric motorbike service in Kenya, its first in Africa, as the company seeks to make its global platform emissions free by 2040.



The rollout in Kenya will be followed later this year in Nigeria, Ivory Coast, Ghana, Uganda, Tanzania and South&nbsp;Africa, said Kagiso Khaole, Uber&#8217;s general manager for sub-Saharan&nbsp;Africa.



Uber&#8217;s new green product in Kenya, dubbed Electric Boda in a nod to the Swahili term for motorbike taxis, will comprise 3,000 bikes within six months, or just under a fifth of its fleet.



Drivers will see a 30-35% drop in their operating costs, and users of the platform will pay 15-20% less than they do for a regular Uber motorbike trip, the company said.



&#8220;You will experience lower vibrations, less sound,&#8221; Khaole said.



In Kenya, which generates more than 90% of its power from renewable sources and has been positioning itself as a hub to lead&nbsp;Africa&#8217;s shift to green transport, Uber previously carried out small pilots for electric bikes with external partners.



The growth of the electric vehicles market in&nbsp;Africa&nbsp;has been slowed by a lack of adequate electric charging infrastructure and associated equipment.



Sensing an opportunity, local firms have been setting up battery-swapping stations in major cities like Nairobi to save drivers time.



Kenya&#8217;s President William Ruto said last month that he wanted to see the number of electric motorbikes on the road increase from the current 2,000 to more than 200,000 by the end of 2024.



Motorbike transport is a big employer in Kenya, absorbing millions of people who are unable to secure formal jobs.



(Reporting by Duncan Miriri; Editing by Aaron Ross and Alex Richardson)

tag_reuters.com2023_newsml_LYNXMPEJ7U0ID_12023-08-31T112513Z_1_LYNXMPEJ7U0ID_RTROPTP_3_UBER-CLIMATE-KENYA

Uber rolls out electric bike fleet in Kenya, its first in Africa

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/M6UYCY64RVKGVPNCBH32OCE4KE-820x485.jpg" alt="" class="wp-image-427081" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/M6UYCY64RVKGVPNCBH32OCE4KE-820x485.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/M6UYCY64RVKGVPNCBH32OCE4KE-300x177.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/M6UYCY64RVKGVPNCBH32OCE4KE-152x90.jpg 152w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/M6UYCY64RVKGVPNCBH32OCE4KE-768x454.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/M6UYCY64RVKGVPNCBH32OCE4KE-1536x908.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/M6UYCY64RVKGVPNCBH32OCE4KE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A Bharti Airtel advertisement board is installed against the backdrop of company&#8217;s telecommunication tower in the southern Indian city of Kochi November 30, 2012. REUTERS/Sivaram V</figcaption></figure>



KAMPALA, Aug 29 (Reuters)&nbsp;&#8211;&nbsp;Airtel Uganda aims to raise 800 billion Ugandan shillings ($216 million) by selling a 20% stake to drive its expansion plans, the telecommunications firm said on Tuesday, as it announced details of its initial public offering (IPO).



When the listing completes, Airtel Uganda will be the second listed telecoms company on Uganda&#8217;s stock exchange after MTN Uganda&nbsp;MTNU.UG, majority owned by South Africa&#8217;s MTN Group&nbsp;MTNJ.J, which listed in December 2021.



Airtel Uganda is a unit of India&#8217;s Bharti Airtel&nbsp;BRTI.NS.



Airtel Uganda Managing Director Manoj Murali told a news conference that the offer of 8 billion shares would start immediately and close on Oct. 13.



The results of the IPO will be announced on Oct. 30, and the shares listed on the Uganda Securities Exchange on Oct. 31, according to a prospectus.



The IPO&#8217;s objective is &#8220;establish a source of future capital to support its (Airtel Uganda&#8217;s) extensive growth strategy,&#8221; the prospectus said.



Airtel Uganda expects to pay dividends of 500 billion Ugandan shillings in 2023 and will target a dividend payout ratio of 95% of retained earnings or net profit after tax, whichever is higher.



The company made a pretax profit of 474 billion Ugandan shillings in calendar year 2022, down from 565 billion Ugandan shillings the previous year. It said its revenue is forecast to grow 16.6% year on year in 2023.



($1 = 3,705.0000 Ugandan shillings)



(Reporting by Elias Biryabarema; Writing by George Obulutsa and Hereward Holland; Editing by Alexander Winning and Mark Potter)

FILE PHOTO: A Bharti Airtel advertisement board is installed against the backdrop of company’s telecommunication tower in Kochi

Airtel Uganda seeks over $200 mln in IPO to drive growth

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IFNY65FOTJO4XHZDYY2W2UMXWQ-820x548.jpg" alt="" class="wp-image-426864" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IFNY65FOTJO4XHZDYY2W2UMXWQ-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IFNY65FOTJO4XHZDYY2W2UMXWQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IFNY65FOTJO4XHZDYY2W2UMXWQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IFNY65FOTJO4XHZDYY2W2UMXWQ-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IFNY65FOTJO4XHZDYY2W2UMXWQ-1536x1026.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IFNY65FOTJO4XHZDYY2W2UMXWQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A motorist drives on the Nairobi Expressway undertaken by the China Road and Bridge Corporation (CRBC) on a public-private partnership (PPP) basis, in Nairobi, Kenya May 20, 2022. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, Aug 18 (Reuters)&nbsp;&#8211;&nbsp;Kenya is aiming to boost its economic growth rate in the next four years, the finance ministry said on Friday, with plans to invest in the farming sector and small businesses to help create jobs and cut poverty.



The authorities in the East African country are trying to boost growth to reduce unemployment, which affects millions of people, while making the economy more inclusive.



&#8220;It is a deliberate agenda to lift those at the bottom of the pyramid,&#8221; Finance Minister Njuguna Ndung&#8217;u told reporters.



But the government faces a host of challenges, including a surge in living costs, rising debt repayments, a weakening currency and widespread corruption.



Under the finance ministry&#8217;s medium-term development plan, launched on Friday, the economy is expected to grow by a minimum of 7.2% by 2027.



Last year, growth slowed to 4.8% due to a severe drought, and the government expects it to rebound to 5.5% this year.



The country&#8217;s budget deficit fell to 4.4% of gross domestic product in this fiscal year, and the plan is to cut it further to 3.9% in the 2024/25 financial year, the finance ministry said.



The deficit reduction is expected to provide scope for the government to fund projects in priority sectors like farming and small businesses, Ndung&#8217;u said.



It has also been substituting local borrowing with cheaper loans from multilateral institutions like the World Bank and African Export &amp; Import Bank (Afreximbank), the minister said, to free up credit to the private sector.



&#8220;Credit is the grease that oils the wheels of the private sector,&#8221; he said.



(Reporting by Duncan Miriri; Editing by Jane Merriman)

Shadow of Kenya’s borrowing binge to hang over next president

Kenya aims to speed up economic growth to help small businesses, create jobs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/GettyImages-924883576-1-scaled-1-820x547.jpg" alt="" class="wp-image-426796" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/GettyImages-924883576-1-scaled-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/GettyImages-924883576-1-scaled-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/GettyImages-924883576-1-scaled-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/GettyImages-924883576-1-scaled-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/GettyImages-924883576-1-scaled-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/GettyImages-924883576-1-scaled-1.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



KAMPALA, Aug 15 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s central bank cut its main lending rate on Tuesday for the first time in more than two years, saying it aimed to boost economic growth after inflation fell faster than expected.



The cut in the Central Bank Rate (CBR) to 9.5% from 10.0%&nbsp;UGCBIR=ECI&nbsp;came after inflation fell to 3.9% year-on-year in July&nbsp;UGCPIY=ECI, down from 10.4% in January and below the bank&#8217;s 5% target.



Uganda&#8217;s economy has fared better than many of its African peers in the face of tightening global financial conditions, helped by favourable weather and improved harvests, but the central bank said on Tuesday that growth seemed to be slowing down partly due to weak demand.



&#8220;Economic activity remaining below capacity over the next two years will exert further downward pressure on inflation,&#8221; Bank of Uganda Deputy Governor Michael Atingi-Ego said at a news conference.



&#8220;In light of this outlook the MPC (Monetary Policy Committee) decided to lower the CBR to 9.5%, aiming to stimulate economic activity while maintaining inflation around the target.&#8221;



The deputy governor linked the inflation slowdown to a drop in food and energy inflation, and tight monetary and fiscal policy among other factors.



Razia Khan, chief economist for Africa and the Middle East at Standard Chartered, said the Bank of Uganda was typically an early mover on rate hikes, &#8220;which gives it more space to ease when conditions allow.&#8221;



The central bank&#8217;s latest forecast is for economic growth of 5.3% in the 2022/23 fiscal year that ended in June, and for growth of between 5-6% in the current 2023/24.



&#8220;Private consumption, investments in extractive industries, and improved exports are anticipated to drive this (2023/24 growth),&#8221; Atingi-Ego said.



Uganda and international oil firms like France&#8217;s TotalEnergies&nbsp;TTEF.PA&nbsp;and China&#8217;s CNOOC&nbsp;0883.HK&nbsp;are implementing multi-billion dollar projects ahead of the planned start of commercial oil production in Uganda in 2025.



(Reporting by Elias Biryabarema; Writing by Hereward Holland; Editing by Alexander Winning, Emelia Sithole-Matarise and Susan Fenton)

GettyImages-924883576-1-scaled-1

Uganda central bank cuts policy rate to boost growth as inflation slows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IMZX7E3KQZMX3F2PAKDPPKGN24-820x547.jpg" alt="" class="wp-image-426782" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IMZX7E3KQZMX3F2PAKDPPKGN24-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IMZX7E3KQZMX3F2PAKDPPKGN24-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IMZX7E3KQZMX3F2PAKDPPKGN24-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IMZX7E3KQZMX3F2PAKDPPKGN24-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IMZX7E3KQZMX3F2PAKDPPKGN24.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man fuels a car at a gas station in Nairobi, Kenya, April 4, 2022. REUTERS/Baz Ratner</figcaption></figure>



NAIROBI, Aug 15 (Reuters)&nbsp;&#8211;&nbsp;Kenya has reinstated a small subsidy to stabilise retail fuel prices for the next 30 days, the energy regulator said late on Monday, in a reversal of government policy following public anger over the high cost of living.



On coming to office last September, President William Ruto removed fuel and maize flour subsidies put in place by his predecessor, saying he preferred subsidising production rather than consumption.



The move was also aimed at cutting government spending as the government seeks to get a handle on debt repayments that have forced it to deny market speculation about a possible default.



But the subsidy cuts as well as recent tax hikes have increased living costs and contributed to violent anti-government protests in recent months.



The energy regulator said the maximum retail price of a litre of petrol would remain constant at 194.68 shillings ($1.35), shielding consumers from an increase of 7.33 shillings, which the government will shoulder through a price stabilisation fund.



Retail fuel prices are set in the middle of each month. The government also applied small subsidies on kerosene and diesel, the regulator, known as EPRA, said.



ERPA did not provide an explanation for the government&#8217;s decision. Officials from EPRA, the energy ministry and the finance ministry did not immediately respond to requests for comment.



Fuel prices shot up when Ruto removed the subsidies. They spiked again in July after the government pushed through parliament a contentious law that doubled the fuel tax.



The protests organised in response to that law were called off last month after the opposition and Ruto agreed to talks to resolve their differences, the second such attempt this year.



($1 = 143.7500 Kenyan shillings)



(Reporting by Duncan Miriri; Editing by Aaron Ross and Susan Fenton)

IMZX7E3KQZMX3F2PAKDPPKGN24

Kenya reinstates small fuel subsidy in government U-turn

<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>



JOHANNESBURG/SHANGHAI, Aug 10 (Reuters)&nbsp;&#8211;&nbsp;Hobbled by the impact of sanctions against founding shareholder Russia, the New Development Bank (NDB) set up by the BRICS countries needs to increase its local currency fundraising and lending, South Africa&#8217;s finance minister told Reuters.



South Africa will host leaders of the other BRICS nations &#8211; Brazil, Russia, India and China &#8211; as the bloc aims to widen its influence at a Johannesburg summit later this month.



Finance Minister Enoch Godongwana said boosting local currency usage among the NDB&#8217;s members will also be on the agenda, with the aim of de-risking the impact of foreign exchange fluctuations rather than de-dollarisation.



The greenback has gained against emerging market currencies since Russia invaded Ukraine and the Federal Reserve began raising interest rates to fight inflation in early 2022, making dollar debt more costly for those countries to service.



&#8220;Most countries that are members of the NDB have been encouraging (it) to provide loans in local currencies,&#8221; Godongwana said.



Established in 2015 as the flagship financial project of the bloc, the NDB&#8217;s ambition to serve emerging economies and de-dollarise finance have been curbed by economic realities and Moscow&#8217;s invasion of Ukraine.



&#8220;(It is) not doing as much as member countries require, but that is the strategic direction we are pushing the bank (in),&#8221; Godongwana said in a telephone interview last week.



Increasing local currency fundraising and raising capital from new members could help the NDB in tough times, cutting its dependence on U.S. capital markets where sanctions against Russia have driven up its borrowing costs, analysts said.



The NDB has expanded from its original core of five to eight and only makes loans in member countries.



Chief Financial Officer Leslie Maasdorp told Reuters in an interview at the NDB headquarters in Shanghai that the bank aims to increase local currency lending from about 22% to 30% by 2026, but that there were limits to de-dollarisation.



&#8220;The bank&#8217;s operating currency is dollars for a very specific reason, U.S. dollars are where the largest pools of liquidity are,&#8221; he said.



The bank is responsive to its members and will decide the mix of currencies it lends in based on their demands, Maasdorp said in emailed comments.



<h2 class="wp-block-heading" id="h-no-parallel-universe">&#8216;NO PARALLEL UNIVERSE&#8217;</h2>



Of more than $30 billion in loans approved by the NDB, two-thirds were in dollars, an April investor presentation showed.



That dependence became a liability when the United States imposed sanctions on Russia last year.



The NDB stopped loans to Russia, but this did not prevent a Fitch downgrade in July 2022 and its dollar borrowing costs have spiked by more than others.



A five-year $1.5 billion bond the NDB issued in April 2021 had a 1.125% coupon. Two years later, a $1.25 billion five-year bond had a 5.125% coupon. That is more expensive than other multilateral development banks with similar credit ratings, S&amp;P Global Ratings analyst Alexander Ekbom said.



As a result of this risk premium, which Maasdorp put at about 25 basis points, the NDB has had to rein in new lending.



&#8220;Because of the capital market challenges of 2022, and in an endeavour to preserve the bank&#8217;s core financial ratios, there was indeed a slowdown,&#8221; Maasdorp said.



&#8220;You cannot step outside of the dollar universe and operate in a parallel universe.&#8221;



While the NDB has approved loans worth $32.8 billion for projects ranging from Mumbai metro lines to solar lighting in Brasilia, the loans on its balance sheet were worth less than half that amount at end-March.



In 2022, the bank disbursed only about $1 billion of loans.



So far, China is by far the NDB&#8217;s most successful local currency market. It issued 13 billion yuan ($1.8 billion) across three &#8220;panda bonds&#8221; last year and more than half of its lending there has been in yuan.



&#8220;The renminbi market has increased in significance,&#8221; said Ekbom of S&amp;P Global Ratings, which rates the NDB &#8220;AA+&#8221;. &#8220;But that has been more because raising money in the U.S. dollar market has been unfavourable for them.&#8221;



Other markets have lagged behind, though the bank is hoping to raise up to 1.5 billion rand ($81 million) in debut bonds in South Africa on Aug. 15. It is also aiming to issue its first rupee bond in India by the end of 2023.



<h2 class="wp-block-heading">GROWING MEMBERSHIP</h2>



Nevertheless, the NDB, established with $10 billion in paid-in share capital from each BRICS country, wants to expand.



Bangladesh, the United Arab Emirates and Egypt have joined since 2021, bringing its membership to eight. Uruguay is part way through the process of joining, while Algeria, Honduras, Zimbabwe and Saudi Arabia have expressed interest.



By comparison, the Asian Infrastructure Investment Bank, which is backed by China and began operating in 2016, has 106 members, including 23 European countries and 45 outside of Asia.



Maasdorp said bringing in capital from new members is &#8220;very, very important&#8221; and would help the NDB realise its aspiration of becoming a leading emerging market institution, with the BRICS summit &#8220;a key platform&#8221; for talks with potential new members.



Attracting the large emerging market countries that would lend the NDB more clout and shore up its financial health could require governance changes, Chris Humphrey, a development finance researcher at the Overseas Development Institute, said.



Current bank statutes ensure that, even as it expands, its five founding shareholders will together retain senior leadership positions and majority voting power.



&#8220;From the point of view of some other developing countries, that might not be very attractive. They might&#8230; say, ok, is that not just another G7 with a different name?,&#8221; Humphrey said.



Maasdorp said that the NDB has a &#8220;unique&#8221; shareholder structure and the aim was to have as much consensus as possible within the bank on decisions but that a majority would prevail.



The voting structure had not been an obstacle to new members so far, he said, adding that they took comfort from the fact that the NDB was &#8220;very highly capitalised&#8221;.



($1 = 18.6877 rand)



($1 = 7.2132 Chinese yuan renminbi)



(Reporting by Rachel Savage and Brenda Goh; Additional reporting by Tannur Anders in Johannesburg and Vincent Flasseur in London; Editing by Karin Strohecker, Joe Bavier and Alexander Smith)

A session of the Russia-Africa summit in Saint Petersburg

Uganda president defiant after World Bank funding suspended over LGBT law

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="584" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/LI35GAL5T5OCBJPVZOLWPEO4VI-820x584.jpg" alt="" class="wp-image-426599" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/LI35GAL5T5OCBJPVZOLWPEO4VI-820x584.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/LI35GAL5T5OCBJPVZOLWPEO4VI-300x214.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/LI35GAL5T5OCBJPVZOLWPEO4VI-126x90.jpg 126w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/LI35GAL5T5OCBJPVZOLWPEO4VI-768x547.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/LI35GAL5T5OCBJPVZOLWPEO4VI-1536x1094.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/LI35GAL5T5OCBJPVZOLWPEO4VI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Soccer Football &#8211; FIFA Women&#8217;s World Cup Australia and New Zealand 2023 &#8211; Group C &#8211; Spain v Zambia &#8211; Eden Park, Auckland, New Zealand &#8211; July 26, 2023 Zambia coach Bruce Mwape during the national anthems before the match REUTERS/David Rowland/File Photo</figcaption></figure>



Aug 4 (Reuters)&nbsp;&#8211;&nbsp;FIFA said on Friday it is investigating allegations of misconduct involving the Zambia team at the Women&#8217;s Soccer World Cup, after the Guardian reported coach Bruce Mwape had allegedly rubbed his hands over the chest of one of his players.



&#8220;FIFA takes any allegation of misconduct extremely seriously and has a clear process in place for anyone in football who wants to report an incident,&#8221; a FIFA spokesperson said.



&#8220;We can confirm that a complaint has been received in relation to the Zambian Women’s National team and this is currently being investigated. We cannot provide further details regarding an ongoing investigation for obvious confidentiality reasons.&#8221;



The Guardian reported the incident had happened after a training session ahead of Zambia&#8217;s final group game against Costa Rica.



Mwape was not immediately available for comment.



The Football Association of Zambia&nbsp;said it had not received any complaint related to the World Cup and was surprised by the allegations.



&#8220;We wish to state the Football Association of Zambia (FAZ) has not received any such complaint from any of the players or officials in the delegation that travelled to the World Cup,&#8221; FAZ General Secretary Reuben Kamanga said in a statement.



&#8220;All the training sessions for the Copper Queens were filmed by the FAZ media team and offers no such footage&#8230; Additionally, a FIFA film crew attached to the Zambian team at the World Cup was present at all training sessions.&#8221;



Allegations of sexual misconduct in women&#8217;s football in Zambia also surfaced on social media last year and are the subject of investigations by the FAZ, with The Guardian later alleging Mwape was among those being investigated.



Mwape&nbsp;declined to comment&nbsp;when asked about the&nbsp;earlier abuse&nbsp;allegations when&nbsp;the team&nbsp;arrived in New Zealand&nbsp;last month&nbsp;ahead of their tournament opener against Japan.



If guilt is established, Mwape faces a ban from the game for life.



Zambia were knocked out of the World Cup after finishing third&nbsp;in their group&nbsp;and the team have already flown back home.



(Reporting by Rohith Nair in Bengaluru; Editing by Lincoln Feast)

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