<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-820x547.jpg" alt="" class="wp-image-433094" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/VMMSUJP37ZIHJBSNEGRW226KR4-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">British Home Secretary James Cleverly and Rwandan Minister of Foreign Affairs Vincent Biruta sign a new treaty, in Kigali, Rwanda, December 5, 2023. The treaty will address concerns by the Supreme Court, including assurances that Rwanda will not remove anybody transferred under the partnership to another country. Ben Birchall/Pool.</figcaption></figure>



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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

VMMSUJP37ZIHJBSNEGRW226KR4-1

UK interior minister signs new Rwanda treaty to resurrect asylum plan

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



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



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



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



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



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



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



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

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

Kenya to begin privatisation drive, offers stakes in 11 companies

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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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

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

Zambia bond debacle calls for debt restructure rethink

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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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

DWS3TK7MAVPAPFKEL2YX7GYITI

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

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



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



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



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



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



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



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



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



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



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



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



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

istockphoto-1250489640-640×640

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

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



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



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



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



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



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



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



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



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



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



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



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



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



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



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

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

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

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



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



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



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



He says both accusations are baseless political tactics.



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



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



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



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



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



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



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



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



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



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



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



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

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

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

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



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



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



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



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



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



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



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



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



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



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



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



(Reporting by Duncan Miriri; Editing by Mark Potter)

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

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

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



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



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



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



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



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



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



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



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



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



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



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



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

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

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



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



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



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



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



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



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



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



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



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



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



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



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

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

Kenya gets additional $938 mln from IMF, soothing nerves

<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>



BLANTYRE, Nov 15 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund&#8217;s executive board has approved a loan of about $178 million for Malawi, with an immediate disbursement of about $35 million, the IMF said in a statement on Wednesday.



Malawian authorities reached a staff-level agreement with the fund on the four-year Extended Credit Facility in September.



Earlier this month Malawi devalued its currency by about 30% as it battles severe shortages of fuel, medicines and fertilisers linked to foreign-currency shortages.



&#8220;The decision is a big breather for us and our economy,&#8221; Finance Minister Simplex Chithyola Banda said in a telephone interview with Reuters.



&#8220;Two major benefits expected are the resumption of budgetary support from our traditional donors and the easing of foreign currency supplies,&#8221; the southern African country&#8217;s finance minister said.



The IMF programme will unlock more financial support from development partners, Malawian President Lazarus Chakwera said in a televised national address late on Wednesday.



The World Bank could give Malawi $60 million for trade finance, a $217 million package linked to fiscal reforms and $250 million for agriculture, Chakwera said.



&#8220;These injections of foreign investment from our partners over the next four months will greatly enhance our foreign exchange reserves position and provide the macroeconomic stability needed for economic and business growth,&#8221; he added.



(Reporting by Frank Phiri; Writing by Anait Miridzhanian and Kopano Gumbi; Editing by David Gregorio and Sandra Maler)

IMF board approves $178 mln loan to Malawi

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/546MOFRIYJJINKF26GSAMYOGXY-820x547.jpg" alt="" class="wp-image-428955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/546MOFRIYJJINKF26GSAMYOGXY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/546MOFRIYJJINKF26GSAMYOGXY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/546MOFRIYJJINKF26GSAMYOGXY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/546MOFRIYJJINKF26GSAMYOGXY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/546MOFRIYJJINKF26GSAMYOGXY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/546MOFRIYJJINKF26GSAMYOGXY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">NAIROBI, KENYA &#8211; OCTOBER 31: William Ruto, President of the Republic of Kenya, gives a speech a State Banquet at State House, along with distinguished guests from Kenya and the United Kingdom on October 31, 2023 in Nairobi, Kenya. Chris Jackson/Pool via REUTERS/File Photo</figcaption></figure>



NAIROBI, Nov 13 (Reuters)&nbsp;&#8211;&nbsp;Negotiators working on the world&#8217;s first treaty to curb plastic pollution need to hurry up and strike a deal, Kenyan&nbsp;President William Ruto said on Monday at the start of talks in Nairobi.



The world produces about 400 million metric tonnes of plastic waste annually&nbsp;and less than 10% of it is recycled, according to the&nbsp;U.N.&nbsp;Environment Programme.



At least 14 million metric tonnes ends up in the ocean every year, the International Union for Conservation of Nature says, while more piles up in landfills.



International delegates meeting in the Kenyan capital Nairobi for the third round of talks will consider a list of possible measures to include in the treaty.



&#8220;I urge all the negotiators to recall that 2024 is only six weeks away and (there) are only two other meetings to go,&#8221; Ruto said at the opening of the talks.



Governments agreed in March 2022 to put together a treaty on controlling plastic pollution by the end of next year.



In Nairobi,&nbsp;delegates will be haggling over whether to stick to their broad mandate of addressing the entire life cycle of plastics, including production, or to&nbsp;prioritise&nbsp;plastic waste management.



The talks need to come up with a first draft agreement, outlining commitments to reducing the plastic menace, and a financing scheme for its implementation, said Carroll Muffett, president of the Centre for International Environmental law.



&#8220;We need to navigate extraordinary risks over the week ahead,&#8221; he said, citing attempts to derail and delay the talks by some members states in previous rounds.



Kenya is among those who want a strong, binding agreement on the manufacture and use of plastics, having&nbsp;enacted several laws banning certain uses of plastics, such as for shopping bags, since 2017.



&#8220;We must change the way we consume, the way we produce and how we dispose our waste,&#8221; Ruto said. &#8220;Change is inevitable. This instrument that we are working on, is the first domino in that change. Let us bring it home.&#8221;



The plastics&nbsp;industry and oil and petrochemical exporters like Saudi Arabia do not want plastic use curtailed, arguing that the global deal should promote improved&nbsp;the&nbsp;recycling and reuse of plastic.



&#8220;The vast majority of countries are eager to advance the negotiations to get the job done,&#8221; said Pamela Miller, Co-Chair of the International Pollutants Elimination Network, a global public interest organization.



&#8220;On the other hand a small group of like-minded countries of mainly major fossil fuel, petrochemical and plastic exporters like Saudi Arabia and Russia are actively attempting to take us backwards.&#8221;



Saudi and Russian delegates were not immediately available to comment.



(Reporting by Duncan Miriri; additional reporting by Gloria Dickie in London; editing by Hugh Lawson and Mark Heinrich)

Britain’s King Charles III and Queen Camilla Visit Kenya

Kenya president urges progress on global treaty against plastic pollution

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MAmaize-820x533.jpg" alt="" class="wp-image-428944" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MAmaize-820x533.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MAmaize-300x195.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MAmaize-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MAmaize-768x499.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/MAmaize.jpg 1400w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An investigative audit of COVID-19 fund spending in Malawi reveals mismanagement and corruption findings. Photo by: Mike Hutchings / Reuters</figcaption></figure>



BLANTYRE, Nov 13 (Reuters)&nbsp;&#8211;&nbsp;Malawi will restrict foreign currency transactions and crack down on black market dealers after devaluing its currency last week, the finance minister said on Monday.



The southern African country devalued the kwacha currency by 30% against the dollar from last Thursday, saying it was needed to correct supply-demand imbalances in the currency market.



Finance Minister Simplex Chithyola Banda said on Monday that cash sales of foreign currency by banks and other authorised dealers would be limited to $2,000, with immediate effect.



Police and other security agencies would prosecute black market forex dealers, he told a news conference.



He also said Malawi had discussed with the World Bank and other donors increasing grants for the poorest under the government&#8217;s Social Cash Transfer Programme (SCTP) scheme, in order to shield the most vulnerable from the effects of the devaluation, and was negotiating with trade unions to increase salaries.



It is the second time Malawi has significantly devalued its currency in recent years, after doing so first in May 2022 to prop up dwindling foreign currency reserves pressured by rising commodity prices and declining revenue from tobacco exports.



The latest devaluation has prompted an angry response from some citizens, with protests planned. The country also hiked fuel and electricity prices on Friday.



Banda defended the devaluation, saying it would help revitalise local production and attract foreign investors.



(Writing by Nellie Peyton; Editing by Alexander Winning and Susan Fenton)

MAmaize

Malawi to restrict forex transactions after currency devaluation

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



JOHANNESBURG, Nov 10 (Reuters) &#8211; Zambia&#8217;s official creditors and the International Monetary Fund have &#8220;expressed reservations&#8221; about a debt restructuring deal the government has reached in principle with an international bondholder group, the finance ministry said Friday.



Zambia and the bondholder group&#8217;s steering committee are continuing talks after the official creditor committee and the IMF voiced their doubts during discussions over the &#8220;last several days&#8221;, the ministry said in a statement, not giving any further detail on the nature of the reservations.



The discussions between the steering committee and the government are taking place under extended non-disclosure agreements, a source familiar with the process said, asking not to be identified as the talks are private.



Zambia defaulted on its external debts three years ago and finally clinched a deal with a bondholder group in late October, less than two weeks after reaching a restructuring agreement with its official creditors, which include China and members of the Paris Club of creditor nations.



The debt rework has been taking place under the G20&#8217;s Common Framework, which has been criticised for long delays and a lack of significant results.



Debtor countries are meant to agree comparable restructuring deals with official and commercial creditors under the process, which was established in 2020 in response to the COVID-19 pandemic.



A spokesperson for the bondholder steering committee declined to comment. The IMF and the Paris Club, the secretariat for developed creditor countries, did not immediately reply to a request for comment.



Zambia&#8217;s existing three international bonds had rallied after the bondholder deal was announced. The proposal foresees issuing&nbsp;two new &#8220;amortising&#8221; bonds scheduled to mature in 2035 and 2053 and together worth $3.135 billion &#8211; more than the&nbsp;$3 billion&nbsp;face value of the current outstanding Eurobond debt.



If the copper producers&#8217; economy performs better than expected,&nbsp;both official creditors and bondholders will be paid more.



Some analysts noted that bondholders would be receiving more than $500 million in amortisation for 2024-2025, plus over $100 million in annual interest payments, under the &#8220;base case&#8221; scenario, while official creditors had granted a three year grace period and lower interest rates than bondholders.



In this scenario,&nbsp;bondholders would receive 73 cents for every $1 lent compared to 55 cents for official creditors, and 97 and 79 cents respectively if Zambia&#8217;s economy performs better, campaign groups Debt Justice and the Zambian Civil Society Debt Alliance, said in an analysis published on Friday.



Zambia&#8217;s bonds slipped on Friday, with the note maturing in 2024 down more than&nbsp;1.1 cents&nbsp;on the dollar to below 63 cents&nbsp;XS1056386714=TE.



(Reporting by Rachel Savage; Additional reporting by Bhargav Acharya, and Leigh Thomas in Paris; editing by Jason Neely and Toby Chopra)

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Zambia official creditors, IMF voice ‘reservations’ on bondholder deal

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-820x547.jpg" alt="" class="wp-image-428877" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/KYPCT2NAVBIZBPIHEGCVYRTYLU-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenyan President William Ruto delivers his speech during the State Banquet at the State House in Nairobi on October 31, 2023. LUIS TATO/Pool via REUTERS/File Photo</figcaption></figure>



NAIROBI, Nov 9 (Reuters)&nbsp;&#8211;&nbsp;Kenya will&nbsp;in December&nbsp;pay back $300 million of a $2 billion Eurobond&nbsp;that falls due next June, President William Ruto said on Thursday.



The East African nation is being watched closely to see how it handles the bond due to its growing debt repayments, weakening currency and a surge in yields that has effectively locked out many frontier economies from markets.



&#8220;I can now confirm &#8230; with confidence that we will and we shall pay the debt that has become a source of much concern to citizens and markets,&#8221; Ruto said in his State of the Nation address to parliament.



Kenya&#8217;s government is spending roughly half its revenue on debt-servicing, squeezing public finances.



(Reporting by George Obulutsa; Editing by Alexander Winning)

KYPCT2NAVBIZBPIHEGCVYRTYLU-1

Kenya to pay back $300 mln of $2 bln bond in December – Ruto

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-820x615.jpg" alt="" class="wp-image-428856" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/48085890627_1aed377e0b_k.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photos: via Flickr</figcaption></figure>



BLANTYRE, Nov 8 (Reuters)&nbsp;&#8211;&nbsp;Malawi&#8217;s central bank said in a notice to authorised dealer banks seen by Reuters that it was devaluing the local kwacha currency&#8217;s exchange rate to the dollar&nbsp;MWK=&nbsp;by about 30% from Thursday.



The notice said the kwacha&#8217;s exchange rate would be adjusted to 1,700 kwacha to the dollar from a selling rate of about 1,180 kwacha to the dollar.



A central bank spokesperson was not immediately available for comment.



It is the second time the southern African country has significantly devalued its currency, after doing so first in May 2022 to prop up dwindling foreign currency reserves pressured by rising commodity prices and declining revenue from tobacco exports.



The notice to banks said the exchange rate adjustment was needed because there were still supply-demand imbalances in the currency market and arbitrage opportunities had resurfaced.



Spot checks on some players indicated that the market was able to clear import bills at the new exchange rate, the central bank said.



&#8220;The Reserve Bank of Malawi will closely monitor developments in the market to avoid disorderly behaviour among market players that may cause excessive volatility,&#8221; it said.



A senior local banker said the move was widely expected.



&#8220;It works in short term and only addresses demand side for now, but what is required is to sort out supply side,&#8221; he said.



(Reporting by Frank Phiri; Additional reporting by Rodrigo Campos in New YorkWriting by Alexander Winning and Nellie PeytonEditing by Sandra Maler)

48085890627_1aed377e0b_k

Malawi central bank to devalue kwacha by about 30%

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="529" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-820x529.jpg" alt="" class="wp-image-428833" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-820x529.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-768x495.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-1536x990.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QRXB7CGKVNIKLKXX5KVXPM4SZA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Internally displaced Somali children wade through flood waters outside their makeshift shelters following heavy rains at the Al Hidaya camp for the internally displaced people on the outskirts of Mogadishu, Somalia November 6, 2023 REUTERS/Feisal Omar</figcaption></figure>



MOGADISHU, Nov 8 (Reuters)&nbsp;&#8211;&nbsp;The worst flooding to hit Somalia in decades has killed 29 people and forced more than 300,000 to flee their homes, the National Disaster Management Agency said on Wednesday, following heavy rains that have inundated towns across East Africa.



Authorities have scrambled to rescue thousands of stranded people from the floodwater, which comes on the heels of the region&#8217;s worst drought in 40 years.



&#8220;What is going on today is the worst for decades. It is worse than even the 1997 floods,&#8221; said Hassan Isse, managing director of the Somali Disaster Management Agency (SOMDA).



The death toll and numbers of people displaced were likely to rise further, Isse said, because many people were trapped by floodwaters.



&#8220;I do not remember such floods in my life,&#8221; said Mohamed Farah, a local elder in Baidoa city, in southwest Somalia. &#8220;People keep on evacuating looking for high ground.&#8221;



At least 2,400 people have been cut off in Luuq town, where the Jubba River burst its banks, the United Nations has said.



&#8220;Luuq is surrounded by the river and floods are threatening us. People keep fleeing out of the town. Some are still trapped. Our shops have been washed away,&#8221; said Ahmed Nur, a trader in Luuq.



Floods in neighbouring Kenya have killed at least 15 people and submerged a bridge in Uganda, cutting off a road linking Kampala to oilfields in the northwest, the Kenya Red Cross and Uganda&#8217;s road authority said.



The regional deluge was caused by the combined effect of two weather phenomenons, El Niño and the Indian Ocean Dipole, said Nazanine Moshiri, a climate analyst at the International Crisis Group.



El Niño and the Indian Ocean Dipole are climate patterns that impact ocean surface temperatures and cause above-average rainfall.



&#8220;The impact of the flooding is much worse because the soil is so damaged from an unprecedented recent drought &#8211; years of conflict and al Shabaab militia&#8217;s presence also makes building flood defences and resilience more complex and costly,&#8221; Moshiri said.



Scientists say climate change is causing more intense and more frequent extreme weather events. In response, African leaders have proposed new global taxes and reforms to international financial institutions to help fund climate change action.



(Reporting by Abdi Sheikh, Elias Biryabarema and Hereward Holland; Writing by Hereward Holland; Editing by Alex Richardson)

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Zambia official creditors, IMF voice ‘reservations’ on bondholder deal

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Malawi central bank to devalue kwacha by about 30%

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East Africa

UK interior minister signs new Rwanda treaty to resurrect asylum plan

Kenya to begin privatisation drive, offers stakes in 11 companies

Zambia bond debacle calls for debt restructure rethink

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

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

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

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

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

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

Kenya gets additional $938 mln from IMF, soothing nerves

IMF board approves $178 mln loan to Malawi

Kenya president urges progress on global treaty against plastic pollution

Malawi to restrict forex transactions after currency devaluation

Zambia official creditors, IMF voice ‘reservations’ on bondholder deal

Kenya to pay back $300 mln of $2 bln bond in December – Ruto

Malawi central bank to devalue kwacha by about 30%

Worst floods in decades kill 29 in Somalia, hit towns across East Africa

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