<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="678" height="452" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/images-3.jpeg" alt="" class="wp-image-426572" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/images-3.jpeg 678w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/images-3-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/images-3-135x90.jpeg 135w" sizes="auto, (max-width: 678px) 100vw, 678px" /><figcaption class="wp-element-caption">British Foreign Secretary James Cleverly speaks as he attends a joint press conference with Jordan&#8217;s Foreign Minister Ayman Safadi, in Amman, Jordan, July 27, 2023. REUTERS/Alaa Al Sukhni</figcaption></figure>



LONDON, Aug 3 (Reuters)&nbsp;&#8211;&nbsp;Britain on Thursday said it had agreed deals with Zambia on clean energy and critical minerals as foreign minister James Cleverly ends a four-day visit to Africa to deepen ties.



Cleverly has used the trip, which fell shortly after a coup in Niger, to seek to enhance Britain&#8217;s sway in Africa, welcoming regional talks on the Niger crisis and announcing support for&nbsp;Nigeria&#8217;s agriculture sector.



The foreign ministry said Cleverly would agree a UK-Zambia Green Growth Compact, aimed at generating 2.5 billion pounds ($3.17 billion) of British private sector investment in Zambia&#8217;s mining, minerals and renewable energy sectors alongside 500 million pounds of government-backed investments.



&#8220;The UK-Zambia Green Growth Compact and our landmark agreement on critical minerals will support investment between UK and Zambian business, creating jobs in both countries,&#8221; Cleverly said.



Zambia is a major copper producer, and also has deposits of critical minerals such as cobalt, manganese and nickel. Last year Britain emphasised the importance of diversifying its supply chains in a&nbsp;critical mineral strategy.



Cleverly will visit a copper mine in Zambia and sign a memorandum of understanding (MoU) on critical minerals, which Britain said would &#8220;lay the foundation for further UK support for the responsible mining of copper, cobalt and other metals essential to the global clean energy transition.&#8221;



Britain has agreed to deepen collaboration on critical minerals with other countries such as&nbsp;the United States,&nbsp;Japan,&nbsp;Australia,&nbsp;Kazakhstan&nbsp;and&nbsp;Saudi Arabia.



($1 = 0.7878 pounds)



(Reporting by Alistair Smout; editing by William James)

images-3

Britain agrees deals on clean energy, critical minerals with Zambia

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="608" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/5OQWXGYPRVMKHKW4JTV7JGKWMY-820x608.jpg" alt="" class="wp-image-426548" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/5OQWXGYPRVMKHKW4JTV7JGKWMY-820x608.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/5OQWXGYPRVMKHKW4JTV7JGKWMY-300x222.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/5OQWXGYPRVMKHKW4JTV7JGKWMY-121x90.jpg 121w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/5OQWXGYPRVMKHKW4JTV7JGKWMY-768x570.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/5OQWXGYPRVMKHKW4JTV7JGKWMY-1536x1139.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/5OQWXGYPRVMKHKW4JTV7JGKWMY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Stickers handed out to people who signed up for WorldCoin are seen at a sign-up site in Shoreditch, East London, Britain July 24, 2023. REUTERS/Elizabeth Howcroft/File Photo</figcaption></figure>



NAIROBI, Aug 2 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s interior ministry said on Wednesday that it had suspended the local activities of cryptocurrency project Worldcoin&nbsp;while government agencies assess potential risks to public safety.



The project founded by OpenAI CEO Sam Altman launched last week. It requires users to give their iris scans in exchange for a digital ID, and in some countries users also get free cryptocurrency as part of plans to create a new &#8220;identity and financial network&#8221;.



&#8220;Relevant security, financial services and data protection agencies have commenced inquiries and investigations to establish the authenticity and legality of the aforesaid activities,&#8221; interior minister Kithure Kindiki said in a statement.



Worldcoin did not immediately respond to a request for comment.



Kindiki said the government was concerned with Worldcoin&#8217;s activities, and agencies would probe how it intends to use the data it gathers. He said action would be taken against anyone who engages with its activities, without elaborating.



Local media have reported that more than 350,000 Kenyans had signed up for Worldcoin as of Tuesday, in exchange for free cryptocurrency tokens worth around 7,000 Kenyan shillings ($49.09).



Since its launch, people around the world including in Kenya, Germany, Spain and France have been flocking to registration sites to get their eyes scanned by a shiny spherical &#8220;orb&#8221;.



The project has also come under scrutiny in Britain, Germany and France.



($1 = 142.6000 Kenyan shillings)



(Reporting by Humphrey Malalo; Writing by Bhargav Acharya; Editing by Alexander Winning and Louise Heavens)

FILE PHOTO: OpenAI’s WorldCoin users claim crypto coins, in exchange for eyeball scans

Kenya suspends crypto project Worldcoin over safety concerns

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/O4CKP53IGFNTFO6U6SWTYNFILU-820x541.jpg" alt="" class="wp-image-426380" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/O4CKP53IGFNTFO6U6SWTYNFILU-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/O4CKP53IGFNTFO6U6SWTYNFILU-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/O4CKP53IGFNTFO6U6SWTYNFILU-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/O4CKP53IGFNTFO6U6SWTYNFILU-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/O4CKP53IGFNTFO6U6SWTYNFILU-1536x1014.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/O4CKP53IGFNTFO6U6SWTYNFILU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Grains of wheat in Vieillevigne near Nantes, France, August 24, 2021. REUTERS/Stephane Mahe</figcaption></figure>



July 25 (Reuters) &#8211; Russia and nations taking part in this week&#8217;s Russia-Africa summit will discuss Moscow&#8217;s grain and fertilisers exports, Oleg Ozerov, ambassador at large at the Russian foreign ministry, told the state RIA news agency in remarks published on Tuesday.



Last week, Russia withdrew from the year-long Black Sea grain deal that ensured the safe export of Ukrainian grains, saying that Russia&#8217;s conditions for the extension of the deal had been ignored.



The second Russia-Africa summit will take place in St. Petersburg on July 27-29, as Moscow and the West compete for influence in Africa.



&#8220;The creation of logistics corridors, hubs not only for food and fertilizers, but also for any other products that the Russian Federation produces &#8211; this will be one of the topics of discussion,&#8221; Ozerov told RIA.



&#8220;It seems to me that the idea of such logistics corridors and the creation of grain hubs is promising and feasible.&#8221;



The U.N-brokered grain deal had allowed Ukraine to export grain from its Black Sea ports, despite the war, to alleviate a global food crisis. This week, President Vladimir Putin said Moscow can replace Ukrainian grain both commercially and free of charge.



On Monday, UN Secretary-General Antonio Guterres called on Russia on Monday to return to the Black Sea grain deal.



(Reporting by Lidia Kelly in Melbourne; Editing by Simon Cameron-Moore)

FILE PHOTO: FILE PHOTO: A French farmer displays grains of wheat in Vieillevigne near Nantes

Russia-Africa summit to discuss Moscow’s grain and fertiliser exports – RIA

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="520" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/M76RT5FOCZKVTGXULI7WZFEBHU-820x520.jpg" alt="" class="wp-image-426268" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/M76RT5FOCZKVTGXULI7WZFEBHU-820x520.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/M76RT5FOCZKVTGXULI7WZFEBHU-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/M76RT5FOCZKVTGXULI7WZFEBHU-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/M76RT5FOCZKVTGXULI7WZFEBHU-768x487.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/M76RT5FOCZKVTGXULI7WZFEBHU-1536x974.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/M76RT5FOCZKVTGXULI7WZFEBHU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A riot police officer stands near supporters of Kenya&#8217;s opposition leader Raila Odinga of the Azimio La Umoja (Declaration of Unity) One Kenya Alliance, during an anti-government protest against the imposition of tax hikes by the government, in Mathare settlement in Nairobi, Kenya, July 12, 2023. REUTERS/John Muchucha</figcaption></figure>



NAIROBI, July 19 (Reuters) &#8211; Kenya&#8217;s government closed schools in the capital and two other areas on Wednesday as East Africa&#8217;s economic powerhouse braced for three days of demonstrations against the cost of living, which the president has said he would not allow to take place.



Two rounds of protests earlier this month descended into violence when police fired tear gas, and in some cases live rounds, at the crowds. At least 15 people were killed and hundreds arrested.



Kenya&#8217;s opposition called for the protests in part because of tax hikes passed last month by the government of President William Ruto, who was elected last August pledging to champion the interests of the poor, but has seen the price of basic commodities balloon under his administration.



The government says the fuel and housing levies, which are expected to raise an extra 200 billion shillings ($1.4 billion) a year, are needed to help deal with growing debt repayments and to fund job-creation initiatives.



Churches and civil rights groups have called for Ruto and veteran opposition leader Raila Odinga to resolve their differences through dialogue and call off the protests.



&#8220;It is not too late for Azmio to halt the planned protests and give talks another shot in the wider interest of the country,&#8221; Non-Governmental Organisation Council of Kenya Chairman Stephen Kipchumba Cheboi said in a statement on Tuesday.



Odinga has failed to win the last five presidential votes, but has secured senior positions in government in the past by making deals with those in power, following spasms of unrest.



On Friday Ruto accused Odinga of attempting to leverage discontent over the state of the economy to attain personal political goals.



&#8220;We recognise the daily hardship faced by many Kenyans and urge all parties to table their concerns through a meaningful dialogue,&#8221; a group of 12 foreign embassies said in a joint statement on Tuesday.



(Reporting by Hereward Holland; Editing by Stephen Coates)

Anti-government protests against the imposition of tax hikes by the government in Nairobi

Schools closed as Kenya braces for three days of tax-hike protests

<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>



July 18 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund&#8217;s executive board has approved a $271 million Extended Credit Facility for Burundi, with an immediate disbursement of over $62 million, the IMF said in a statement late on Monday.



The East African country&#8217;s economy is just starting to recover from years of conflict and political upheaval under former leader Pierre Nkurunziza that left key sectors blighted.



The IMF said the loan facility will help address Burundi&#8217;s protracted balance of payments needs, rebuild external buffers and support the government&#8217;s reform agenda.



It said this was Burundi&#8217;s first Upper Credit Tranche-quality arrangement with the IMF since 2015 and that it was expected to &#8220;catalyse donor funding, which is essential to cater to Burundi&#8217;s large financing needs and support its exit from fragility&#8221;.



This is a developing story&#8230;



(Reporting by Alexander Winning; Editing by Kim Coghill)

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

IMF board approves $271 mln loan facility for Burundi

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="585" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/SQYXK5CH55NYFCG4K2M4DU3HNQ-820x585.jpg" alt="" class="wp-image-426159" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/SQYXK5CH55NYFCG4K2M4DU3HNQ-820x585.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/SQYXK5CH55NYFCG4K2M4DU3HNQ-300x214.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/SQYXK5CH55NYFCG4K2M4DU3HNQ-126x90.jpg 126w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/SQYXK5CH55NYFCG4K2M4DU3HNQ-768x548.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/SQYXK5CH55NYFCG4K2M4DU3HNQ-1536x1096.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/SQYXK5CH55NYFCG4K2M4DU3HNQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Facebook, TikTok, Twitter, YouTube and Instagram apps are seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration/</figcaption></figure>



KAMPALA, July 12 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s parliament late on Tuesday passed a new tax law that imposes a 5% levy on income earned in the country by foreign providers of digital communications services such as Twitter and Meta&#8217;s&nbsp;META.O&nbsp;Facebook.



Authorities in the east African country have been exploring ways of tapping into the fast-expanding digital economy to help boost revenue needed to pay off mounting public debt.



The Ugandan parliament said in a Twitter post that lawmakers had passed a new tax law called &#8220;The Income Tax (Amendment) Bill, 2023&#8221; containing the new levy.



The new law &#8220;will also tax non-resident providers of digital services in Uganda such as Facebook, Twitter, Amazon, Netflix,&#8221; the parliament said.



The bill has prompted alarm in some quarters, with critics, including opposition lawmakers and rights advocates, warning it could see social media firms seek ways to charge Ugandans for services that are currently free.



They have argued the levy is a means to limit access to social media and stifle free speech for a government hostile to such platforms.



President Yoweri Museveni, in power since 1986, has criticised social media in the past saying it was mostly used for rumour-mongering.



However parliament said it &#8220;was not a social media tax and would not affect an ordinary Ugandan in any way&#8221;.



(Reporting by Elias Biryabarema; Editing by Bhargav Acharya and Emma Rumney)

FILE PHOTO: Facebook, TikTok, Twitter, YouTube and Instagram apps are seen on a smartphone in this illustration

Uganda imposes levy on foreign digital companies’ income

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-60.jpg" alt="" class="wp-image-423083" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-60.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-60-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-60-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-60-768x512.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><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</figcaption></figure>



LONDON/NEW YORK, July 12 (Reuters)&nbsp;&#8211;&nbsp;Zambia&#8217;s overseas bondholders have entered into non-disclosure agreements (NDA) with the government as of Wednesday, according to three sources, a key step marking the beginning of formal talks to restructure over $3 billion of international bonds.



The government is expected to share with some of its biggest international bondholders &#8211; members of the creditor committee &#8211; detailed information that will form the basis of debt restructuring talks as early as Wednesday, said the sources with direct knowledge, who asked not to be identified because talks are private.



The move comes after Zambia, Africa&#8217;s second-biggest copper producer, clinched a deal with bilateral creditors such as China and the Paris Club to rework about $6.3 billion of debt in June, sending a signal that other pending national debt restructurings such as Ghana and Sri Lanka could also move forward.



&#8220;We first need to see Zambia&#8217;s updated macroeconomic package, which is in part why we have to get restricted,&#8221; one of the sources said.



There will be a restriction period of two weeks, with the option to extend it if both sides agree, two sources added.



A spokesperson for the creditor group did not immediately comment. Zambia&#8217;s finance ministry did not immediately respond to a request for comment.



Zambia has three outstanding dollar bonds maturing in 2022&nbsp;ZM082877959=, 2024&nbsp;ZM105638671=&nbsp;and 2027&nbsp;ZM126708157=, trading at 52-57 cents on the dollar.



<h2 class="wp-block-heading" id="h-getting-serious">GETTING SERIOUS</h2>



It is the first time bondholders have signed NDAs, which restrict them temporarily from trading the notes in exchange for non-public information, since Zambia&#8217;s 2020 default.



The creditor group, advised by Newstate Partners and Weil, Gotshal &amp; Manges, consists of 15 European and U.S.-based institutions, holding in aggregate around 45% of Zambia&#8217;s Eurobonds.



Amia Capital, Amundi, BlueBay Asset Management, Farallon Capital Management, Greylock Capital and T. Rowe Price comprise the steering committee.



So far, initial discussion between private creditors and government officials have only been held between their financial and legal advisers.



Besides net present value reductions, talks will focus on how to incorporate the impact of a potential improvement of Zambia&#8217;s debt carrying capacity, or its ability to handle debt payments.



The deal with official creditors already includes a mechanism to accelerate loan repayments and raise interest if Zambia&#8217;s capacity changes from the current &#8220;weak&#8221; to &#8220;medium&#8221; following a joint International Monetary Fund and World Bank assessment in 2026.



Creditors are debating how to include so-called state-contingent debt instruments which would allow higher payouts based on improved economic outcomes, like gross domestic product, budget or export revenues, one source said.



&#8220;The indicator needs to be linked to the debt carrying capacity but that can&#8217;t be the direct trigger, because you would be handing a veto power to the IMF and the World Bank,&#8221; the source added.



The IMF and World Bank assessment looks at the real rate of economic growth, reserve import coverage and remittances, among other factors.



Creditors are discussing mechanisms that would revamp payments through higher coupons, shorter debt maturities or a combination of both, without modifying capital payments, one of the sources said.



The IMF&#8217;S executive board will meet on Thursday to complete the first review of the country&#8217;s $1.3 billion extended fund facility (EFF) programme. The country will have access to around $188 million after the review is completed.



(Reporting by Jorgelina do Rosario in London and Rodrigo Campos in New York; Editing by Karin Strohecker, Lincoln Feast and Conor Humphries)

download-60

Zambia, bondholders advance $3 bln debt restructuring talks -sources

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="563" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Q4O4EIZRLVOARIP55LBVU2O6P4-820x563.jpg" alt="" class="wp-image-426150" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Q4O4EIZRLVOARIP55LBVU2O6P4-820x563.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Q4O4EIZRLVOARIP55LBVU2O6P4-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Q4O4EIZRLVOARIP55LBVU2O6P4-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Q4O4EIZRLVOARIP55LBVU2O6P4-768x528.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Q4O4EIZRLVOARIP55LBVU2O6P4-1536x1055.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Q4O4EIZRLVOARIP55LBVU2O6P4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Riot police officers remove a barricade after dispersing supporters of Kenya&#8217;s opposition leader Raila Odinga of the Azimio La Umoja (Declaration of Unity) One Kenya Alliance, during an anti-government protest dubbed &#8220;Saba Saba (7th of July) People&#8217;s March&#8221;, in Nairobi, Kenya July 7, 2023. REUTERS/Monica Mwangi/File Photo</figcaption></figure>



NAIROBI, July 12 (Reuters)&nbsp;&#8211;&nbsp;Police deployed heavily in Kenya&#8217;s capital Nairobi on Wednesday ahead of expected countrywide protests called for by the main opposition leader against a raft of tax hikes.



At least two people were killed last Friday during a first round of demonstrations against the taxes, which are contained in a finance bill signed into law by President William Ruto last month.



Kenya&#8217;s High Court ordered that implementation of the legislation be suspended pending a legal challenge, but the government has raised petrol prices anyway.



The protests were called for by opposition leader Raila Odinga, who lost out to Ruto in last year&#8217;s presidential election.



A Reuters reporter in Nairobi saw police trucks with water cannons near the city&#8217;s Central Business District, where the streets were unusually quiet. Kenya&#8217;s police chief said on Tuesday that no protests would be allowed since organisers had not informed the authorities of their intention to demonstrate.



Odinga led a series of protests earlier this year against the high cost of living and alleged election irregularities.



Those repeatedly degenerated into clashes between police and protesters and led civic leaders to warn against a return to the ethnically-charged violence that has plagued Kenya in the past.



Ruto&#8217;s government says the tax hikes, which include a doubling of the fuel tax and introduction of a levy to fund affordable housing, will raise an extra 200 billion Kenyan shillings ($1.42 billion) a year and are needed to deal with growing debt repayments and to fund job-creation initiatives.



The opposition says they will deepen the suffering of Kenyans at a time when many are already struggling with high prices of basic commodities such as maize flour. ($1 = 141.2000 Kenyan shillings)



(Reporting by Thomas Mukoya and Humphrey Malalo; Writing by Aaron Ross; Editing by Alex Richardson)

Anti-government protests dubbed “Saba Saba (7th of July) People’s March”, in Nairobi

Kenyan police deploy in capital ahead of expected protests over tax hikes

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-820x547.jpg" alt="" class="wp-image-425565" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: International Monetary Fund logo is seen outside its headquarters during the IMF/World Bank spring meetings in Washington, U.S., April 20, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



JOHANNESBURG, July 6 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund said on Thursday its executive board completed the second review of Mozambique&#8217;s three-year loan program, allowing for an immediate disbursement to Maputo of about $60.6 million.



The review brings total disbursements under the $456 million Extended Credit Facility program approved last year to about $212.09 million to date, the IMF said.



&#8220;Based on the mixed program performance, the authorities have taken substantive actions to resolutely address macroeconomic challenges and keep the program on track,&#8221; it said in a statement.



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



&#8220;While the outlook remains positive, significant risks remain, mainly due to adverse climate events and a fragile security situation,&#8221; IMF Deputy Managing Director Bo Li said.



In 2016, Mozambique unveiled hefty state-backed borrowing it had previously failed to disclose, in a $2-billion corruption scandal that prompted donors to cut off aid and sparked a currency collapse and debt crisis.



(Reporting by Anait Miridzhanian; Editing by Frank Jack Daniel)

FILE PHOTO: International Monetary Fund logo is seen outside the headquarters building

IMF to disburse $60.6 mln tranche to Mozambique

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset-820x462.jpeg" alt="" class="wp-image-425257" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Imaginima | E+ | Getty Images oil</figcaption></figure>



KAMPALA, July 4 (Reuters)&nbsp;&#8211;&nbsp;Uganda is seeking new funding for its planned crude oil refinery after negotiations with a consortium that included a unit of U.S. firm General Electric&nbsp;GE.N&nbsp;lapsed over its failure to mobilise financing in time, its energy and mining ministry said.



The 60,000 barrels per day refinery would cost an estimated $3 billion to $4 billion and help the east African country process its crude reserves that it hopes to start producing in 2025.



In a statement late on Monday, the ministry said the government and the consortium had made progress on the project including concluding refinery configuration, front-end engineering and design and environmental impact assessment.



However, the ministry added, there were still &#8220;a number of outstanding aspects, including mobilisation of financing for the project.&#8221;



&#8220;The government of Uganda is now open to receiving offers from public sector capital providers to participate in this nationally and regionally strategic project,&#8221; the ministry said.



Members of the Albertine Graben Energy Consortium (AGEC) include Nuovo Pignone International SRL, a GE subsidiary in Italy, YAATRA Africa and Lionworks Group Ltd, both from Mauritius, and Saipem SpA, also from Italy.



GE, YAATRA and Saipem did not respond immediately to requests for comment. Contact details for Lionworks were not immediately available.



In 2018, the government and consortium signed a project framework agreement by which the consortium committed to designing, financing and developing the refinery project.



That agreement expired on June 30 without the consortium securing necessary financing for the project.



&#8220;We are being alive to the timeline within which we need this project executed, we expected (the final investment decision) by end of June, which did not happen. That greatly hampers the timelines,&#8221; said Solomon Muyita, a ministry spokesperson.



&#8220;So far they&#8217;ve not confirmed that they have financing. So, for the consortium, when they get financing, they can still get back to us, but in the meantime we are open to any other developer.&#8221;



(Reporting by Elias Biryabarema; Editing by Hereward Holland and Jamie Freed)



KAMPALA, July 4 (Reuters)&nbsp;&#8211;&nbsp;Uganda is seeking new funding for its planned crude oil refinery after negotiations with a consortium that included a unit of U.S. firm General Electric&nbsp;GE.N&nbsp;lapsed over its failure to mobilise financing in time, its energy and mining ministry said.



The 60,000 barrels per day refinery would cost an estimated $3 billion to $4 billion and help the east African country process its crude reserves that it hopes to start producing in 2025.



In a statement late on Monday, the ministry said the government and the consortium had made progress on the project including concluding refinery configuration, front-end engineering and design and environmental impact assessment.



However, the ministry added, there were still &#8220;a number of outstanding aspects, including mobilisation of financing for the project.&#8221;



&#8220;The government of Uganda is now open to receiving offers from public sector capital providers to participate in this nationally and regionally strategic project,&#8221; the ministry said.



Members of the Albertine Graben Energy Consortium (AGEC) include Nuovo Pignone International SRL, a GE subsidiary in Italy, YAATRA Africa and Lionworks Group Ltd, both from Mauritius, and Saipem SpA, also from Italy.



GE, YAATRA and Saipem did not respond immediately to requests for comment. Contact details for Lionworks were not immediately available.



In 2018, the government and consortium signed a project framework agreement by which the consortium committed to designing, financing and developing the refinery project.



That agreement expired on June 30 without the consortium securing necessary financing for the project.



&#8220;We are being alive to the timeline within which we need this project executed, we expected (the final investment decision) by end of June, which did not happen. That greatly hampers the timelines,&#8221; said Solomon Muyita, a ministry spokesperson.



&#8220;So far they&#8217;ve not confirmed that they have financing. So, for the consortium, when they get financing, they can still get back to us, but in the meantime we are open to any other developer.&#8221;



(Reporting by Elias Biryabarema; Editing by Hereward Holland and Jamie Freed)

107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset

Uganda seeks new funding for oil refinery after consortium deal lapses

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="579" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/KR5C4T7HQZP6JLNWJDVGUIKEBI-820x579.jpg" alt="" class="wp-image-425918" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/KR5C4T7HQZP6JLNWJDVGUIKEBI-820x579.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/KR5C4T7HQZP6JLNWJDVGUIKEBI-300x212.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/KR5C4T7HQZP6JLNWJDVGUIKEBI-127x90.jpg 127w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/KR5C4T7HQZP6JLNWJDVGUIKEBI-768x542.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/KR5C4T7HQZP6JLNWJDVGUIKEBI-1536x1085.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/KR5C4T7HQZP6JLNWJDVGUIKEBI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logos of Swiss bank Credit Suisse and UBS are seen in Geneva, Switzerland, June 7, 2023. REUTERS/Denis Balibouse</figcaption></figure>



LONDON, July 3 (Reuters)&nbsp;&#8211;&nbsp;Mozambique&#8217;s blockbuster lawsuit against Credit Suisse&nbsp;UBSG.S&nbsp;and others over the $2 billion &#8220;tuna bond&#8221; scandal can proceed to trial, a London judge ruled on Monday, despite complaints that the African nation has failed to fully disclose documents.



High Court Judge Robin Knowles said it was not just, proportionate or necessary to strike out the complex case, which encompasses 11 sets of proceedings, three months before a London trial scheduled to start on Oct. 2.



But he warned: &#8220;At trial, all alternatives, including to strike out and in whole or in part, remain available.&#8221;



The tuna bond or &#8220;hidden debt&#8221; case has triggered litigation from Maputo to New York, but the London case is due to establish whether one of the world&#8217;s poorest countries can revoke a sovereign guarantee on a loan it alleges was corruptly procured, and secure compensation for other alleged wrongdoing.



The case dates back to 2013 and three deals between state-owned Mozambican companies and shipbuilder Privinvest &#8211; funded in part by loans and bonds from Credit Suisse and backed by undisclosed Mozambican government guarantees &#8211; ostensibly to develop the fishing industry and for maritime security.



But hundreds of millions of dollars went missing and, when the state loan guarantees became public in 2016, donors such as the International Monetary Fund halted support, triggering a currency collapse and debt crisis.



The judge first raised the prospect of a strike-out in March, when he ordered Mozambique to ensure access to relevant documents in state offices such as the Office of President and SISE, the state security service.



Credit Suisse, UAE-Lebanese Privinvest and others argue that a lack of &#8220;adequate&#8221; disclosure jeopardised a fair trial.



Under English litigation rules, each party has to disclose documents on which they rely for their case, those that might damage their own case and those that support the case of others.



A spokesperson for Credit Suisse said the bank &#8220;continues to defend itself&#8221;. Privinvest did not immediately respond to a request for comment.



A spokesperson for Mozambique&#8217;s Attorney General&#8217;s Office said: &#8220;In rulings of this kind, pronouncements are always issued after a through analysis so we will respond in due course.&#8221;



The latest judgment comes as Credit Suisse&#8217;s new parent, UBS, grapples with integrating its cross-town peer &#8211; and its inherited legacy &#8211; after an emergency rescue in March.



Lawyers for Mozambique have argued that state secrecy prevents some documents from being disclosed but urged the judge to consider that the case concerned &#8220;what is said to be an international fraud and corruption of public officials on a massive scale&#8221;.



Credit Suisse agreed to pay about $475 million to British and U.S. authorities in 2021 to resolve bribery and fraud charges and has pledged to forgive $200 million of Mozambican debt. It has said three former bankers, who pleaded guilty in the U.S. to handling kickbacks, hid their conduct from the bank.



Privinvest has said it delivered on its obligations under the shipping contracts and any payments it made were legal under Mozambican law.



(Reporting by Kirstin Ridley; Additional reporting by Rachel Savage, Sam Tobin and Manuel Mucari in Maputo, Editing by Conor Humphries and Mark Potter)

The logos of Swiss bank Credit Suisse and UBS are seen in Geneva

Mozambique ‘tuna bond’ case against Credit Suisse can proceed, UK judge rules

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/VV6A42KKDBL4FNH5PXKVRTEZQI-820x547.jpg" alt="" class="wp-image-425878" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/VV6A42KKDBL4FNH5PXKVRTEZQI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/VV6A42KKDBL4FNH5PXKVRTEZQI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/VV6A42KKDBL4FNH5PXKVRTEZQI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/VV6A42KKDBL4FNH5PXKVRTEZQI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/VV6A42KKDBL4FNH5PXKVRTEZQI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/VV6A42KKDBL4FNH5PXKVRTEZQI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A staff worker stands behind the national flags of Brazil, Russia, China, South Africa and India to tidy the flags before a group photo during the BRICS Summit at the Xiamen International Conference and Exhibition Center in Xiamen, southeastern China&#8217;s Fujian Province, China September 4, 2017. REUTERS/Wu Hong/Pool</figcaption></figure>



June 29 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia, one of Africa&#8217;s fastest-growing economies, has asked to join the BRICS bloc of emerging markets, the foreign ministry said on Thursday.



The term BRIC was coined by Goldman Sachs economist Jim O&#8217;Neill in 2001 to describe the rise of Brazil, Russia, India and China. The BRIC powers had their first summit in 2009 in Russia. South Africa joined in 2010.



&#8220;We expect BRICS will give us a positive response to the request we have made,&#8221; foreign ministry spokesman Meles Alem told journalists, according to the state-run news agency ENA.



Ethiopia will continue to work with international institutions that can protect its interests, he said.



The horn of Africa nation has the second-largest population in Africa, but its economy ranks only 59th in the world according to the International Monetary Fund, and is less than half the size of the smallest BRICS member South Africa.



Last year Argentina, the world&#8217;s 23rd-largest economy, said it had received China&#8217;s formal support to join the group, which is seen as a powerful emerging-market alternative to the West.



South Africa said on Thursday it will host the next summit in August as planned, amid speculation it could be moved to a location where Russia&#8217;s President Vladimir Putin would not be obliged to be arrested over war crimes accusations.



BRICS countries account for more than 40% of the world&#8217;s population and about 26% of the global economy.



(Reporting by Hereward Holland, editing by Deepa Babington)

A staff worker stands behind the national flags of Brazil, Russia, China, South Africa and India to tidy the flags before a group photo during the BRICS Summit in Xiamen

Ethiopia asks to join BRICS bloc of emerging economies

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RFHPM5NX4NPXPLM72P2QWWJKRU-820x551.jpg" alt="" class="wp-image-425675" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RFHPM5NX4NPXPLM72P2QWWJKRU-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RFHPM5NX4NPXPLM72P2QWWJKRU-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RFHPM5NX4NPXPLM72P2QWWJKRU-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RFHPM5NX4NPXPLM72P2QWWJKRU-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RFHPM5NX4NPXPLM72P2QWWJKRU-1536x1031.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RFHPM5NX4NPXPLM72P2QWWJKRU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">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</figcaption></figure>



PARIS, June 23 (Reuters)&nbsp;&#8211;&nbsp;Zambia has struck a deal to restructure $6.3 billion in debt owed to other governments, including China, marking a long-awaited breakthrough for indebted nations around the world that have faced lengthy negotiations with creditors.



Zambia in 2020 became the first African country to default on its sovereign debt during the COVID-19 pandemic and struggled since then in protracted discussions to agree a deal.



&#8220;Zambia has reached an agreement on a debt treatment with our official creditors – a significant milestone in our journey towards economic recovery &amp; growth,&#8221; Zambian President Hakainde Hichilema said on Twitter.



The agreement calls for Zambia&#8217;s debt to be rescheduled over more than 20 years with a three-year grace period during which only payments on interest are due. China is the largest official creditor to Zambia.



The debt earmarked for restructuring includes $1.3 billion in arrears, and private sector creditors are expected to do the same on the $6.8 billion owed to them, according to a French official who did not wish to be identified.



Zambia is viewed as a test case for a debt restructuring framework backed by the Group of 20 wealthy nations intended to streamline relief for countries caught in a developing world debt crisis sparked in part by the pandemic.



However, the process has been achingly slow for Zambia, a fact that has discouraged all but a handful of other struggling governments from seeking help under the mechanism.



Beijing was keen not to be seen further holding up debt relief for Zambia at the summit, the French official said, adding that French President Emmanuel Macron&#8217;s talks with Chinese authorities in Beijing in April also helped unblock the situation.



Macron said on Twitter the debt restructuring deal was &#8220;a historic achievement&#8221;.



&#8220;We remain mobilised to ensure that other countries caught in debt trap benefit from a multilateral response,&#8221; Macron added.



The restructuring agreement with official creditors paves the way for Zambia to receive another $188 million tranche of money from the International Monetary Fund, part of a $1.3 billion package approved in August 2022.



“This agreement paves the way for the completion of the first review of Zambia’s three-year Extended Credit Facility Arrangement, which is helping put Zambia on a path toward sustainable economic growth and poverty reduction,&#8221; Kristalina Georgieva, managing director of the International Monetary Fund, said in a written statement.



The scale of the debt relief Zambia requires has been a concern for some of the country&#8217;s main creditors.



Some Western officials have accused China &#8211; Zambia&#8217;s largest bilateral creditor &#8211; of dragging its feet in restructuring talks, something Beijing denies.



Of the $6.3 billion in debt owed to government bodies, $4.1 billion was owed specifically to Export-Import Bank of China&nbsp;&#8211;&nbsp;which according to analysts underlined the significance of China&#8217;s support to the debt relief deal.



&#8220;I am pleased that the international community has come together to support Zambia in its time of need,&#8221; U.S. Treasury Secretary Janet Yellen said in a statement.



&#8220;I urge all official bilateral and private sector creditors to quickly finalise the debt restructuring process that will provide relief to Zambian families and encourage the private investment that is needed to jump start the economy.&#8221;



Zambia&#8217;s Hichilema was one of about 40 leaders attending a summit in France on Thursday and Friday aimed at easing the debt burden on some of the world&#8217;s most vulnerable countries while freeing up billions of dollars in new funds for climate finance.



Zambia&#8217;s international bonds broadly traded flat on Friday but have rallied in recent months, with the 2024 issue hitting a nine month high in early trade.&nbsp;XS1056386714=TE



(Reporting by Leigh Thomas; Additional reporting by Chris Mfula in Lusaka, Jorgelina do Rosario in London, Nellie Peyton in Johannesburg and Dan Whitcomb in Paris; Writing by Karin Strohecker, Editing by Deepa Babington and Susan Fenton)

African Union holds annual heads of state and government summit in Addis Ababa

Zambia seals $6.3 billion restructuring in breakthrough for developing nations

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="513" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/6DZXSDWGCFIWPPSAJO5BMU3OQQ-820x513.jpg" alt="" class="wp-image-425651" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/6DZXSDWGCFIWPPSAJO5BMU3OQQ-820x513.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/6DZXSDWGCFIWPPSAJO5BMU3OQQ-300x188.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/6DZXSDWGCFIWPPSAJO5BMU3OQQ-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/6DZXSDWGCFIWPPSAJO5BMU3OQQ-768x481.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/6DZXSDWGCFIWPPSAJO5BMU3OQQ-1536x962.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/6DZXSDWGCFIWPPSAJO5BMU3OQQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenyan police officers detain a Kenyan social-political activist during a protest to call on lawmakers to reject the finance bill proposed by the government that would raise various taxes, outside the Parliament Buildings in Nairobi, Kenya June 13, 2023. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, June 22 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s parliament voted late on Wednesday to approve a contentious government finance bill that will double the fuel tax and introduce a new housing levy, handing a victory to President William Ruto.



Ruto, who took office nine months ago, is pushing through a raft of tax hikes as part of his maiden budget, sparking sharp resistance from the opposition, ordinary people and businesses.



The opposition has threatened to call fresh protests if Ruto signs the tax increases into law. Street demonstrations earlier this year against the high cost of living repeatedly turned violent in the capital Nairobi and elsewhere.



Ruto&#8217;s government argues the higher taxes are necessary to stabilise government finances, which have been strained by growing debt repayments and lower than expected growth in tax collection.



The move to double the fuel tax to 16% will generate the government an extra 61 billion shillings ($434.94 million) by itself, Kuria Kimani, the chairman of parliament&#8217;s finance panel, said on Citizen Television.



The bill now moves to the president for signing.



During a session that ran late into the night, lawmakers from Ruto&#8217;s ruling coalition defeated opposition attempts to strike out the fuel tax hike as well as a new 1.5% housing tax on employees that will be matched by employers.



They also approved a new withholding tax for digital content creators.



The opposition says the housing levy will strain already squeezed incomes and raise business costs at a time when Kenyans are struggling with high prices for basic commodities.



Ruto says it will fund the construction of homes for the poor, offering them dignity and creating jobs for young people.



An opposition senator has challenged the finance bill in court, arguing that some of the measures are unconstitutional. It was not immediately clear when the court will issue a ruling.



($1 = 140.2500 Kenyan shillings)



(Reporting by Duncan Miriri; Editing by Aaron Ross and Christina Fincher)

FILE PHOTO: Protests planned against Kenyan finance bill that would raise taxes in Nairobi

Kenyan lawmakers vote to double fuel tax, impose housing levy

<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>



June 21 (Reuters)&nbsp;&#8211;&nbsp;The United States welcomes progress in talks between Zambia and its official creditors and hopes an agreement is imminent, a senior Treasury Department official said on Wednesday.



The official, who spoke on condition they not be identified, said it was not clear whether an announcement on a deal could be made at a Paris summit this week on easing the debt burdens of low-income countries.



The International Monetary Fund said on Tuesday it was encouraged by the progress made with Zambia, adding a deal could be reached in a few days.



&#8220;We welcome progress made on Zambia and hope an agreement on official bilateral creditors is imminent,&#8221; the U.S. official told reporters on a conference call.



Zambia&#8217;s hopes of restructuring about $12.8 billion of external debt have been hampered by the concerns of its main creditors about the required scale of relief.



(Reporting by David Ljunggren; Editing by Andrew Heavens and Alexander Smith)

US says it hopes a Zambia deal with creditors is imminent

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-820x547.jpg" alt="" class="wp-image-423316" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man walks past the International Monetary Fund (IMF) logo at its headquarters in Washington, U.S., May 10, 2018. REUTERS/Yuri Gripas/</figcaption></figure>



NEW YORK, June 20 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund is encouraged by the progress in discussions between Zambia and its official creditors, and an agreement could be reached &#8220;within a few days,&#8221; the fund said in a statement on Tuesday.



&#8220;We are very encouraged by the significant progress being made in discussions between official creditors and Zambia on a potential debt treatment,&#8221; a spokesperson for the fund wrote.



&#8220;We expect an agreement could be reached within a few days, which would allow the Executive Board consider the first review of the Fund-supported program within a few weeks.&#8221;



The IMF said in early April that the next $188 million payout from a $1.3 billion support loan to Zambia was contingent on the government&#8217;s reaching an agreement with its creditors.



Zambia&#8217;s hopes of restructuring about $12.8 billion of external debt have been hampered by the concerns of its main creditors about the required scale of relief.



(Reporting by Rodrigo Campos and Rachel Savage; Editing by Leslie Adler)

FILE PHOTO: Man walks past the IMF logo at HQ in Washington

IMF sees Zambia agreement with official creditors ‘within a few days’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="578" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/CZMKO33ZHRPCNKR7BRSXJ4MK24-820x578.jpg" alt="" class="wp-image-425553" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/CZMKO33ZHRPCNKR7BRSXJ4MK24-820x578.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/CZMKO33ZHRPCNKR7BRSXJ4MK24-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/CZMKO33ZHRPCNKR7BRSXJ4MK24-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/CZMKO33ZHRPCNKR7BRSXJ4MK24-768x541.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/CZMKO33ZHRPCNKR7BRSXJ4MK24-1536x1082.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/CZMKO33ZHRPCNKR7BRSXJ4MK24-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A coffee farmer picks ripe berries in a farm in Karatina, 200 km (124 miles) north of Kenya&#8217;s capital Nairobi July 23, 2010/File Photo</figcaption></figure>



NAIROBI, June 19 (Reuters)&nbsp;&#8211;&nbsp;Kenya on Monday signed an Economic Partnership Agreement with the European Union that will guarantee duty-free access for its farm produce into its biggest export market.



European goods entering Kenya will see tariffs reduced over a 25-year period under the agreement, officials said at a signing ceremony in the Kenyan capital Nairobi.



The deal took seven months to negotiate, making it one of the fastest the EU has ever struck, officials from both sides said.



Kenya, Africa&#8217;s seventh-largest economy, is a major exporter of tea, coffee, flowers, fruits and vegetables. The EU accounts for 21% of its overall exports.



&#8220;Beyond trade, the agreements is designed to stimulate investments and manufacturing,&#8221; Kenya&#8217;s President William Ruto said in his address.



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



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



The deal now moves to the parliaments of both sides for ratification.



Kenya is also negotiating a trade and investment deal with the United States which its trade minister said he expects to be signed next year.



(Reporting by Duncan Miriri, editing by Ed Osmond)

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