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



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



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



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



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



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



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



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



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



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



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



Hichilema will be in China until Saturday.



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

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

China, Zambia upgrade ties, focus on key economic sectors

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



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



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



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



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



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



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



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



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



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



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



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



($1 = 3,720.0000 Ugandan shillings)



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

2L6UNHAOHBNBFHTCFBPWLTOBJA

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

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



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



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



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



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



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



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



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



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



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



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



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



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

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

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



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



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



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



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



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



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



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



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



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



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



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

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

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

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



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



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



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



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



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



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



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



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



($1 = 3,705.0000 Ugandan shillings)



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

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

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

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



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



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



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



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



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



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



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



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



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



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



(Reporting by Duncan Miriri; Editing by Jane Merriman)

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

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

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



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



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



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



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



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



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



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



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



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



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



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

GettyImages-924883576-1-scaled-1

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

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



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



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



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



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



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



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



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



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



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



($1 = 143.7500 Kenyan shillings)



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

IMZX7E3KQZMX3F2PAKDPPKGN24

Kenya reinstates small fuel subsidy in government U-turn

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-820x546.jpg" alt="" class="wp-image-426709" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE.jpg 1457w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ugandan President Yoweri Museveni attends a session of the Russia-Africa summit in Saint Petersburg, Russia, July 28, 2023. Mikhail Tereshchenko/TASS Host Photo Agency via REUTERS/File Photo</figcaption></figure>



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



($1 = 18.6877 rand)



($1 = 7.2132 Chinese yuan renminbi)



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

A session of the Russia-Africa summit in Saint Petersburg

Uganda president defiant after World Bank funding suspended over LGBT law

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



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



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



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



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



Mwape was not immediately available for comment.



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



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



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



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



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



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



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



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

FILE PHOTO: FIFA Women’s World Cup Australia and New Zealand 2023 – Group C – Spain v Zambia

FIFA investigating misconduct complaint involving Zambia at Women’s World Cup

<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)

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East Africa

China, Zambia upgrade ties, focus on key economic sectors

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

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

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

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

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

IMF board approves $271 mln loan facility for Burundi

Uganda imposes levy on foreign digital companies’ income

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

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