<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="622" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/AKAPJHETXVOTBH5Q5VWTKJHGXI-820x622.jpg" alt="" class="wp-image-425525" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/AKAPJHETXVOTBH5Q5VWTKJHGXI-820x622.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/AKAPJHETXVOTBH5Q5VWTKJHGXI-300x228.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/AKAPJHETXVOTBH5Q5VWTKJHGXI-119x90.jpg 119w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/AKAPJHETXVOTBH5Q5VWTKJHGXI-768x582.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/AKAPJHETXVOTBH5Q5VWTKJHGXI-1536x1165.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/AKAPJHETXVOTBH5Q5VWTKJHGXI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenya&#8217;s Finance Minister Njuguna Ndung&#8217;u carries a briefcase containing the Government Budget for the 2023/24 fiscal year outside the National Treasury building in Nairobi, Kenya June 15, 2023. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, June 15 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s finance minister on Thursday said the government will pay all debts when they fall due, and cut the budget deficit for the fiscal year starting next month to 4.4% from an estimated 5.8% in this financial year.



In a budget speech that was briefly interrupted by the walk-out of more than a dozen lawmakers from the opposition coalition, Njuguna Ndung&#8217;u said the global shocks had increased the risks associated with debt.



&#8220;Although the debt burden has risen &#8230; The government is committed to honour all public debt obligations as they fall due,&#8221; he said.



The East African nation&#8217;s total public debt stands at 67% of GDP according to the World Bank, which together with the International Monetary Fund rates the debt as being at a high risk of distress.



Ndung&#8217;u set the total government expenditure for the year at 3.7 trillion shillings ($26.5 billion), which parliament&#8217;s budget committee said represented a lower increase on the previous year when compared with the historical average.



&#8220;We have moderated our spending to ensure value for money,&#8221; the minister said.



The opposition has rejected a raft of tax hikes proposed by President William Ruto&#8217;s government, which argues that the pain is necessary to stabilise government finances in the face of growing debt repayments.



The opposition lawmakers who walked out of the budget speech left while shouting, prompting Speaker Moses Wetangula to call out &#8220;Order! Order&#8221;.



<h2 class="wp-block-heading" id="h-fiscal-discipline">FISCAL DISCIPLINE</h2>



Growth is expected to rebound to 5.5% this year, Ndung&#8217;u said, after a severe drought and other shocks curbed economic activity last year.



Ruto, who was elected last August on a platform of helping the poor, has vowed to entrench fiscal discipline, including shunning a rapid accumulation of debt.



But his maiden budget has run into stiff resistance after his government moved to double the tax on petroleum products to 16%, introduce a new housing tax of 1.5% for every employee and impose a tax on digital content creators.



&#8220;This is the most controversial finance bill I have ever seen,&#8221; said Junet Mohamed, the opposition chief whip in the national assembly, and an 11-year veteran of the house, referring to a draft law that accompanies the budget.



The bill sailed through its second reading late on Wednesday and lawmakers are expected to hold a final vote on every provision next week.



The budget also comes against a backdrop of slowing economic activity, persistently high costs of basic commodities like maize flour and a slower than expected revenue collection pace.



&#8220;Given this, one would expect a reduction in expenditure, but it is set to increase,&#8221; said Nikhil Hira, partner at Kody Africa LLP, a Nairobi-based tax advisory.



($1 = 139.8000 Kenyan shillings)



(Reporting by Duncan Miriri and George Obulutsa; Editing by James Macharia Chege, Kirsten Donovan and Emelia Sithole-Matarise)

Kenya’s Finance Minister Njuguna Ndung’u carries a briefcase containing the Government Budget outside the National Treasury building in Nairobi

Kenya finance minister vows to pay all due debts, cuts deficit

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="555" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SMALP66JZ5I55PV72RFXAZ4MBA-820x555.jpg" alt="" class="wp-image-425521" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SMALP66JZ5I55PV72RFXAZ4MBA-820x555.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SMALP66JZ5I55PV72RFXAZ4MBA-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SMALP66JZ5I55PV72RFXAZ4MBA-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SMALP66JZ5I55PV72RFXAZ4MBA-768x520.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SMALP66JZ5I55PV72RFXAZ4MBA-1536x1040.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SMALP66JZ5I55PV72RFXAZ4MBA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Ugandan business people are seen at a market with their merchandises for sale at Mpondwe border that separates Uganda and the Democratic Republic of Congo, in Mpondwe, Uganda, June 14, 2019. REUTERS/James Akena/File Photo</figcaption></figure>



KAMPALA, June 15 (Reuters)&nbsp;&#8211;&nbsp;Uganda has cut its budget deficit forecast for the 2023/2024 fiscal year and plans to increase total spending by 10% from the current period, Finance Minister Matia Kasaija said in his budget speech on Thursday.



The International Monetary Fund (IMF) has praised the country&#8217;s response to the economic impact of the war in Ukraine and the tightening of global financial conditions, which included support to vulnerable households, and a tightening of monetary policy to contain inflation.



The budget deficit will shrink to 3.5% in the next fiscal year, which starts next month, from 5.1% in the current financial year, Kasaija said.



Next fiscal year&#8217;s spending is 10% higher than the previous period at 52.7 trillion shillings ($14 billion).



The east African nation is expected to spend 8.7 trillion shillings on external debt repayments in the new fiscal year, he told lawmakers in Kampala.



Uganda maintained its growth projection at 6%, up from a forecast 5.5% in the previous period, driven by robust growth in infrastructure and the provision of cheap credit, Kasaija said.



Economic activity related to the planned construction of a $2.2 billion standard gauge railway, a crude oil refinery and a $3.5-billion crude oil export pipeline would bolster growth, he said. Uganda is expected to start commercial production of its oil deposits in 2025.



The minister pledged the &#8220;provision of affordable credit for micro and small enterprises&#8221; to boost economic expansion.



Uganda&#8217;s total public debt stock, a major concern for its opposition parties, was projected to ease slightly to 48.2% in the fiscal year ending this month, down from 48.6% a year ago.



&#8220;In order to live within our means, we have reduced consumptive expenditure. During next financial year, there will be no purchase of new vehicles for political leaders and public officers,&#8221; he said.



($1 = 3,688.0000 Ugandan shillings)



(Reporting by Elias Biryabarema; Writing by Hereward Holland and Bhargav Acharya; Editing by James Macharia Chege and Sharon Singleton)

FILE PHOTO: Ugandan business people are seen at a market with their merchandises for sale at Mpondwe border that separates Uganda and the Democratic Republic of Congo in Mpondwe

Uganda cuts deficit, sees total spending rising in 2023/24

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3HWZWVIRAVPBBEMBWDXTXH6RCE-820x542.jpg" alt="" class="wp-image-425517" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3HWZWVIRAVPBBEMBWDXTXH6RCE-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3HWZWVIRAVPBBEMBWDXTXH6RCE-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3HWZWVIRAVPBBEMBWDXTXH6RCE-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3HWZWVIRAVPBBEMBWDXTXH6RCE-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3HWZWVIRAVPBBEMBWDXTXH6RCE-1536x1016.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3HWZWVIRAVPBBEMBWDXTXH6RCE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker prepares a garment at the the Utexrwa garment factory in Kigali, Rwanda April 17, 2018. REUTERS/Jean Bizimana</figcaption></figure>



KIGALI, June 15 (Reuters)&nbsp;&#8211;&nbsp;Rwanda&#8217;s overall spending will increase by 5.6% in the 2023/2024 fiscal year to 5.03 trillion Rwandan francs ($4 billion) compared with the current period, finance minister Uzziel Ndagijimana said during a budget speech on Thursday.



Ndagijimana said 63% of the budget would be financed by domestic revenues, while external loans would constitute 24% and external grants 13%.



&#8220;The budget reflects (the) government&#8217;s economic resilience efforts in the face of global shocks,&#8221; Ndagijimana said.



Rwanda&#8217;s economy has bounced back well since the height of the coronavirus pandemic, but macroeconomic imbalances have emerged, according to the International Monetary Fund (IMF).



Strong output in manufacturing and services sectors more than offset weaker agricultural production and construction, but rising food prices and strong domestic demand contributed to persistently high inflation, the IMF said earlier this month.



($1 = 1,132.6600 Rwandan francs)



(Reporting by Philbert Girinema; Writing by Hereward Holland; Editing by James Macharia Chege)

A worker prepares a garment at the the Utexrwa garment factory in Kigali

Rwanda to increase spending by 5.6% in 2023/2024 budget

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Kenyan-presidents-tax-hikes-alienate-his-hustler-base-820x549.jpg" alt="" class="wp-image-425455" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Kenyan-presidents-tax-hikes-alienate-his-hustler-base-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Kenyan-presidents-tax-hikes-alienate-his-hustler-base-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Kenyan-presidents-tax-hikes-alienate-his-hustler-base-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Kenyan-presidents-tax-hikes-alienate-his-hustler-base-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Kenyan-presidents-tax-hikes-alienate-his-hustler-base-1536x1029.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Kenyan-presidents-tax-hikes-alienate-his-hustler-base-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Workers package maize flour at the Capwell industries limited in Thika area of Kiambu County, Kenya June 13, 2023. REUTERS/Monicah Mwangi</figcaption></figure>



GITHUNGURI, Kenya, June 14 (Reuters) &#8211; Eighty percent of voters in this constituency in the heart of Kenyan tea country cast their ballots for William Ruto last August, helping the self-proclaimed champion of impoverished &#8220;hustlers&#8221; score an upset presidential election win.



Less than a year later, it is hard to find anyone in Githunguri willing to speak up in his defence.



Since Ruto came to office, prices for staple food items have continued to rise. Ruto has also faced criticism for increasing allocations to his office and the deputy president&#8217;s while cutting petrol subsidies.



Now, a proposal to hike taxes on petrol and housing is fuelling the strongest backlash yet and energising an opposition whose demonstrations this year led to repeated clashes with police on the streets of the capital Nairobi.



The proposals, contained in a draft law known as the finance bill, will be considered by parliament alongside the 2023-24 budget to be presented by the finance minister on Thursday.



On Githunguri town&#8217;s bustling streets, dozens of residents crowded around Reuters reporters to voice their opposition.



Jacqueline Wambui, a waitress, said she regretted casting her ballot for Ruto last August. &#8220;The promises we were given as small traders and motor-bike riders have not come about,&#8221; she said.



Ruto&#8217;s spokesperson did not respond to a request for comment.



The president and his allies have defended the tax hikes, saying East Africa&#8217;s economic powerhouse needs more revenue to avert a debt crisis and fund affordable housing projects.



Costly infrastructure initiatives under Ruto&#8217;s predecessor Uhuru Kenyatta drove total debt to 67% of GDP, and repayments now consume nearly half of all revenues.



At the same time, Ruto says he has kept his commitment to helping the poor, pointing to initiatives like the distribution of fertiliser to millions of farmers and a micro-loans programme called the &#8220;Hustler Fund&#8221;.



LITTLE SYMPATHY



Those arguments have found little sympathy among people reeling from rising prices, including a nearly 30% increase in the cost of maize flour since Ruto&#8217;s election due to poor harvests, the war in Ukraine and a weakening domestic currency.



The bill is generally expected to pass in parliament, where Ruto&#8217;s allies have a majority, but it has provided fodder for an opposition that has seized on its unpopularity.



The main opposition coalition, led by Raila Odinga who lost out to Ruto in last year&#8217;s election, has said it plans to organise more protests if the bill is passed.



One man in Githunguri, who declined to give his name, defended the finance bill, saying Ruto was simply trying to leave his mark by constructing affordable housing.



But he was a lone voice.



Fruit vendor John Nyaga, another Ruto voter, complained that the tax hikes would leave his customers with even less money to spend.



&#8220;Those extra deductions will not just hit the employed people, they will also translate to us being squeezed,&#8221; he said.



(Reporting by Duncan Miriri; Editing by Aaron Ross and Ed Osmond)

Workers package maize flour at the Capwell industries limited in Thika area of Kiambu County

Kenyan president’s tax hikes alienate his ‘hustler’ base

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="577" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HI466VZHEJJ2XHML3CMYCHNO4I-820x577.jpg" alt="" class="wp-image-425406" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HI466VZHEJJ2XHML3CMYCHNO4I-820x577.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HI466VZHEJJ2XHML3CMYCHNO4I-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HI466VZHEJJ2XHML3CMYCHNO4I-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HI466VZHEJJ2XHML3CMYCHNO4I-768x540.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HI466VZHEJJ2XHML3CMYCHNO4I-1536x1081.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HI466VZHEJJ2XHML3CMYCHNO4I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Eritrean President Isaias Afwerki attends a meeting with Russian President Vladimir Putin in Moscow, Russia May 31, 2023. Sputnik/Mikhail Metzel/Pool via REUTERS</figcaption></figure>



NAIROBI, June 13 (Reuters)&nbsp;&#8211;&nbsp;Eritrea has rejoined a regional East African bloc it left 16 years ago, its information minister said, in the country&#8217;s latest move to rebuild ties with its neighbours.



The Asmara government quit the Intergovernmental Authority on Development in Eastern Africa (IGAD) in 2007 to protest Ethiopian troops&#8217; entry into Somalia to force out its Islamist rulers.



&#8220;Eritrea resumed its activity in IGAD and took its seat at the 14th Ordinary Summit in Djibouti,&#8221; Information Minister Yemane Meskel wrote on Twitter late on Monday after the summit. He did not say what had prompted the decision but said Eritrea wanted to join other IGAD members and help advance peace and stability in the region.



Eritrea, which has been ruled by Isaias Afwerki since gaining independence from Ethiopia in 1993, fought a bloody border war with Ethiopia from 1998 to 2000, and has repeatedly fallen out with its neighbours.



It is also under U.S. and EU sanctions for alleged human rights abuses.



However, it has taken steps in recent years to repair regional ties.



In 2018, it signed a peace deal with Ethiopia that formally ended the state of war that had existed since the border conflict, restored diplomatic ties with Somalia and normalised relations with Djibouti.



It has also strengthened ties with Kenya, which announced earlier this year that it would open an embassy in Asmara.



Still, human rights groups say Afwerki&#8217;s rule remains as repressive as ever, pointing to forced military conscription that continues to drive thousands to flee the country each year.



Eritrea also drew international condemnation for alleged atrocities committed by its soldiers during the 2020-2022 war in northern Ethiopia&#8217;s Tigray region, where they fought in support of Ethiopian troops against Tigrayan forces.



Eritrea has denied those allegations.



(Reporting by George Obulutsa; Editing by Aaron Ross and Susan Fenton)

Russian President Putin and Eritrean President Afwerki meet in Moscow

Eritrea rejoins regional East African bloc after 16-year absence

<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/ND5WGIIUCNP47NKKNZQ4R3QIBM-820x547.jpg" alt="" class="wp-image-425291" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: World Bank President David Malpass speaks during a news conference at the Spring Meetings of the World Bank Group and IMF in Washington, U.S., April 11, 2019. REUTERS/James Lawler Duggan/File Photo</figcaption></figure>



June 9 (Reuters) &#8211; The World Bank Group&#8217;s private investment arm and guarantee agency have pledged more support for the first private telecoms operator in Ethiopia, Safaricom Ethiopia.



In September investment arm the International Finance Corporation (IFC) said it planned to inject up to $160 million in equity, but in a statement dated June 8 World Bank Group said that IFC&#8217;s equity investment would be $157 million and that it would also provide a $100 million loan.



The Multilateral Investment Guarantee Agency will provide 10-year guarantees of $1 billion to cover the equity investments of Safaricom Ethiopia&#8217;s shareholders: Vodafone Group, Vodacom, Safaricom and British International Investment.



&#8220;The investment and guarantees will help Safaricom Ethiopia roll out and operate 4G and 5G mobile networks across the country – including in rural and urban areas,&#8221; the statement said.



Safaricom Ethiopia launched its mobile network in October after winning an operating licence in May 2021.



Previously state-owned Ethio Telecom had a monopoly in Africa&#8217;s second-most populous country with a population of about 120 million people.



(Reporting by Alexander Winning Editing by David Goodman )

FILE PHOTO: World Bank President David Malpass speaks during a news conference at the Spring Meetings of the World Bank Group and IMF in Washington

World Bank Group pledges more support for Safaricom Ethiopia

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg" alt="" class="wp-image-416545" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-300x189.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-143x90.jpeg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-768x484.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-1536x969.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A participant stands near a logo of World Bank at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018.
Johannes Christo | Reuters</figcaption></figure>



NAIROBI, June 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s economy is expected to grow at a slightly faster pace this year, the World Bank said on Wednesday, underpinned by a recovery in the key agriculture sector.



The East African nation&#8217;s economy will expand by 5.0% in 2023, the bank said in its latest biannual Kenya Economic Update report, inching up from 4.8% last year.



Following a debilitating drought in the past two years, many farming areas have enjoyed adequate rainfall in recent months, which could boost production and reduce inflationary pressure.



The growth outlook, however, faces several risks, the bank said, including any new global shocks that could curb demand for exports, the World Bank said.



Kenya is also dealing with growing public debt repayments, that have put pressure on government finances, but the authors of the report said they expect it to cope well.



&#8220;Though the debt remains at high risk of distress, it remains sustainable,&#8221; said Naomi Mathenge, a senior economist at the bank and one of the report&#8217;s authors.



President William Ruto&#8217;s government, which took over last September, has also reduced the pace of debt accumulation and sought cheaper sources of funds from bilateral and multilateral financiers, she said.



Total public debt is expected to edge lower to 64.8% of gross domestic product at the end of this year, from 67.4% at the end of 2022, the World Bank said, .



Ruto&#8217;s administration, which is under pressure to raise additional revenue, has proposed a raft of tax hikes, which have attracted protests.



The additional taxes could dampen consumption, Mathenge said.



Kenya could turn the threat it faces from climate change into an opportunity, the World Bank said in the report, by courting green investments from international investors who want to reduce the carbon footprint in their supply chains.



It contributes less than 1% of the annual global greenhouse gases emissions, the bank said, offering it opportunities to trade more of its carbon credits.



(Reporting by Duncan Miriri; Editing by George Obulutsa and Sharon Singleton)

106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report

Kenya economic growth to edge up this year, World Bank says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/RLMIHL2X2BNFJHXI3AKPGZ4KQA-820x536.jpg" alt="" class="wp-image-415202" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/RLMIHL2X2BNFJHXI3AKPGZ4KQA-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/RLMIHL2X2BNFJHXI3AKPGZ4KQA-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/RLMIHL2X2BNFJHXI3AKPGZ4KQA-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/RLMIHL2X2BNFJHXI3AKPGZ4KQA-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/RLMIHL2X2BNFJHXI3AKPGZ4KQA-1536x1004.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/RLMIHL2X2BNFJHXI3AKPGZ4KQA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya Central Bank Governor Patrick Njoroge in Nairobi, Kenya July 25, 2019. REUTERS/Stringer/File Photo</figcaption></figure>



NAIROBI, May 31 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s central bank governor nominee Kamau Thugge plans to push for local dollar bond issuance with the finance ministry once in office, he said, citing residents&#8217; domestic holdings of foreign currency.



President William Ruto named Thugge, an economic adviser and former senior Treasury official, as the next governor of the central bank two weeks ago.



Once cleared by parliament, which is controlled by Ruto&#8217;s coalition, Thugge will replace Patrick Njoroge, who retires next month after two terms that have run since mid-2015.



On Tuesday Thugge told a parliamentary vetting panel that it was worth pursuing the issue of a local dollar-denominated bond, given foreign exchange deposits of about 1 trillion shillings ($7.33 billion) in the banking system.



&#8220;One of the things that I would like to explore with the national treasury is the possibility of actually issuing a dollar-denominated bond, the way we issue an infrastructure bond, and we structure it, and sell it locally,&#8221; he said.



&#8220;If we can get those Kenyans who are holding dollars in their deposits to buy into it &#8230; we will have a possibility of actually increasing liquidity of dollars in the system but also building up foreign exchange in the central bank.&#8221;



The central bank&#8217;s foreign exchange reserves of $6.49 billion cover 3.62 months of imports, which the bank says is sufficient to cushion any short-term shocks in the foreign exchange market.



Challenges awaiting Thugge in office include a rapid weakening of the Kenyan shilling&nbsp;KES=&nbsp;and a heavy government debt load that has crimped its finances.



($1=136.5000 Kenyan shillings)



(Reporting by George Obulutsa; Editing by Clarence Fernandez)

FILE PHOTO: Kenya Central Bank Governor Patrick Njoroge addresses a news conference at the Central Bank of Kenya headquarters in Nairobi

Kenya central bank nominee to push for local dollar bond issuance

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg" alt="" class="wp-image-419915" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The World Bank Group headquarters in Washington, D.C., U.S., on Tuesday, April 19, 2022. The International Monetary Fund (IMF) slashed its world growth forecast by the most since the early months of the Covid-19 pandemic, and projected even faster inflation, after Russia invaded Ukraine and China renewed virus lockdowns. Photographer: Al Drago/Bloomberg via Getty Images</figcaption></figure>



NAIROBI, May 30 (Reuters)&nbsp;&#8211;&nbsp;The World Bank said on Tuesday it approved a $1 billion loan to Kenya to support its budget as East Africa&#8217;s economic powerhouse confronts high debts and a weakening currency.



The lending will be done through an instrument called a Development Policy Operations (DPO) loan, which commits Kenya to instituting reforms aimed at creating fiscal space, improving agricultural competitiveness and improving governance.



&#8220;The government&#8217;s reforms, supported by the DPO, will help to achieve fiscal consolidation, which is essential for reducing the debt burden and related risks, in an equitable and sustainable manner,&#8221; Aghassi Mkrtchyan, Senior Economist for the World Bank in Kenya, said in a statement.



President William Ruto, who was elected last year, has pledged to restore fiscal discipline after public debt surged under his predecessor.



But his proposal to raise taxes on a wide swathe of economic activities as part of the finance bill his government will put forward in parliament next month has faced pushback from civil servants and political opponents.



Kenya qualified for financing under the DPO instrument in 2019 and has since received four such loans, the last in March.



Reforms that Kenya will adopt under the latest agreement include the elimination of administrative price-setting for publicly procured cereals and the streamlining of the state’s exit from commercial investments, the World Bank said.



Kenya’s finances have been under strain from rising debt repayments and the effects of the Horn of Africa&#8217;s worst drought in four decades.



Earlier this month, global ratings agency Moody&#8217;s cut Kenya&#8217;s senior unsecured debt rating as well as long-term foreign-currency and local-currency issuer ratings, citing an increase in government liquidity risks.



The economy is projected to expand by 5.8% in 2023, the country&#8217;s central bank said in March, up from 4.8% in 2022.



(Reporting by Ayenat Mersie; Editing by Aaron Ross and Giles Elgood)

IMF And World Bank Headquarters During Virtual Spring Meetings

World Bank approves $1 billion loan to Kenya

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="537" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/ED2ISXUD55O23CCWO4CVDP66MU-820x537.jpg" alt="" class="wp-image-425141" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/ED2ISXUD55O23CCWO4CVDP66MU-820x537.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/ED2ISXUD55O23CCWO4CVDP66MU-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/ED2ISXUD55O23CCWO4CVDP66MU-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/ED2ISXUD55O23CCWO4CVDP66MU-768x503.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/ED2ISXUD55O23CCWO4CVDP66MU-1536x1006.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/ED2ISXUD55O23CCWO4CVDP66MU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Uganda&#8217;s President Yoweri Museveni speaks during a Reuters interview at his farm in Kisozi settlement of Gomba district, in the Central Region of Uganda, January 16, 2022. REUTERS/Abubaker Lubowa/File Photo</figcaption></figure>



May 29 (Reuters) &#8211; Uganda&#8217;s tough new anti-LGBTQ law, which stipulates the death penalty for &#8220;serial offenders&#8221;, presents a conundrum for multi-nationals wanting to grow in Africa while promoting diversity and inclusion.



A coalition of companies that includes Google&nbsp;GOOGL.O&nbsp;and Microsoft&nbsp;MSFT.O&nbsp;said it was &#8220;deeply disappointed&#8221; by the bill signed into law on Monday.



Here are some global firms that have substantial operations in Uganda and their strategies for LGBTQ inclusion.



<h2 class="wp-block-heading" id="h-totalenergies">TOTALENERGIES</h2>



TotalEnergies (TTEF.PA) is the leading retailer in Uganda, according to the company&#8217;s website. It is also active in oil and gas exploration and production in the country.



The company has more than 300 employees in Uganda and around 200 service stations.



On its website, TotalEnergies says it is committed to &#8220;promoting equal treatment of employees and an inclusive culture.&#8221;



<h2 class="wp-block-heading">STANDARD CHARTERED</h2>



Standard Chartered&nbsp;STAN.L&nbsp;is the longest-established commercial bank in Uganda, according to its website. It has more than 350 staff in the country and three branches.



On its website, Standard Chartered says &#8220;we go out of our way to ensure that our approach to diversity is mirrored by our suppliers and the communities we operate in.&#8221;



<h2 class="wp-block-heading">GOOGLE</h2>



Google, owned by Alphabet&nbsp;GOOGL.O, launched its first wi-fi network in Uganda in 2015 in the capital, Kampala.



On its website, the company says &#8220;supporting LGBTQ+ communities has been a priority from the earliest days of Google.&#8221;



<h2 class="wp-block-heading">EY</h2>



EY offers services in Uganda including tax and advisory.



On its website, EY says &#8220;LGBT+ inclusion allows companies to attract and retain the best talent and drive high performance teaming through diversity of thought.&#8221;



<h2 class="wp-block-heading">PWC</h2>



PWC offers a range of services in Uganda including tax and advisory. On its website, the company says it supports &#8220;a workplace where lesbian, gay, bisexual, transgender and other (LGBT+) solvers can bring their best selves to work and feel the full support of their PwC family.&#8221;



<h2 class="wp-block-heading">Unilever</h2>



Unilever&nbsp;ULVR.L&nbsp;sells vaseline and other body care products in Uganda. The company looks to &#8220;promote and protect a fully inclusive workplace&#8221; through its &#8216;proUd&#8217; employee network.



The company&#8217;s website quotes an unnamed African employee as saying the network had provided &#8220;comfort&#8221; while they felt like an &#8220;outcast&#8221; in their home country.



(Reporting by Matt Scuffham; Editing by Giles Elgood)

FILE PHOTO: Uganda’s President Yoweri Museveni wants trade barriers to come down, in Kisozi

Global firms in Uganda face LGBTQ conundrum

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-820x547.jpg" alt="" class="wp-image-417697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The seal for the International Monetary Fund is seen near the World Bank headquarters (R) in Washington, DC on January 10, 2022. (Photo by Stefani Reynolds / AFP) (Photo by STEFANI REYNOLDS/AFP via Getty Images)</figcaption></figure>



NAIROBI, May 23 (Reuters)&nbsp;&#8211;&nbsp;International Monetary Fund staff and Kenya have reached an agreement that could unlock more than $1 billion of new financing, which could help relieve pressure on government finances in East Africa&#8217;s largest economy.



Kenya&#8217;s finances have been under strain from rising debt repayments and the effects of the worst drought in four decades, although the IMF&#8217;s managing director said earlier this month&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3720R9&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">she was not expecting the country to default</a>.



The IMF said in a statement on Tuesday that the agreements included the latest review of Extended Fund Facility and Extended Credit Facility arrangements approved in April 2021 and a new arrangement under the Resilience and Sustainability Facility.



Fund staff agreed with Kenyan officials to extend the Extended Fund Facility and Extended Credit Facility arrangements by another 10 months to April 2025 to give more time to meet all the requirements, and to increase the amount of money available to Kenya under those facilities by about $544 million.



Kenya will also have access to about $544 million under the Resilience and Sustainability Facility, designed to bolster climate change resilience and adaptation.



The IMF said cumulative funding committed to Kenya under the three facilities amounted to about $3.5 billion and that the staff-level agreement was expected to be considered by its executive board in July.



(Reporting by George Obulutsa; Editing by Alexander Winning, William Maclean)

US-ECONOMY-FINANCE-IMF-WORLD BANK

IMF staff, Kenya reach agreement on over $1 bln of new financing

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/storm-freddy-malawi-vaccine-820x547.jpeg" alt="" class="wp-image-424927" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/storm-freddy-malawi-vaccine-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/storm-freddy-malawi-vaccine-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/storm-freddy-malawi-vaccine-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/storm-freddy-malawi-vaccine-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/storm-freddy-malawi-vaccine.jpeg 900w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Locals carry goods over a flooded area in Muloza on the border with Mozambique after the tropical Cyclone Freddy, around 100 km outside Blantyre, Malawi, March 18, 2023. REUTERS/Esa Alexander/File Photo Reuters/REUTERS</figcaption></figure>



MAPUTO, May 19 (Reuters)&nbsp;&#8211;&nbsp;The World Bank has moved $150 million of the funds it has earmarked for Mozambique projects to help fund the southern African nation&#8217;s efforts to recover from the aftermath of Cyclone Freddy.



One of the deadliest storms to hit the continent in the last two decades, Freddy ripped through Malawi, Mozambique and Madagascar, first in late February before circling back in March. Over 1,000 people were&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N36F336&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">reported</a>&nbsp;dead in the region.



The World Bank said the money would aid the Mozambican government in restoring transport infrastructure and provide services including on water supply, sanitation, health and education.



The funds are drawn from the World Bank&#8217;s existing projects in Mozambique, and are separate to the $300 million grant it&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N2YV305&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">approved in July</a>, the multilateral lender said. It consists of $100 million in grant money and $50 million as credit extended by the bank.



&#8220;Our priority is to support the Government to respond to this emergency quickly and ensure that the people affected by yet another cyclone can recover as soon as possible,&#8221; said Xavier Chavana, the lender&#8217;s disaster risk management specialist in Mozambique.



(Reporting by Manuel Mucari; Writing by Bhargav Acharya; Editing by Hugh Lawson)

storm-freddy-malawi-vaccine

World Bank extends $150 mln to Mozambique to aid Cyclone Freddy recovery

<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/GettyImages-924883576-1-820x547.jpg" alt="" class="wp-image-422955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Uganda shillings. Uganda. (Photo by: Godong/Universal Images Group via Getty Images)</figcaption></figure>



KAMPALA, May 19 (Reuters) &#8211; Uganda&#8217;s parliament has approved the government&#8217;s plan to raise spending by 10% to 52.73 trillion shillings ($14 billion) in the 2023/24 fiscal year, the Finance Ministry said.



Ugandan law requires lawmakers to approve the government&#8217;s spending plans for a specific fiscal year before they are officially laid out in a budget speech. The fiscal year runs July-June.



The finance minister is set to present the 2023/24 budget to parliament early next month.



On Thursday, parliament approved proposed overall spending for that fiscal year, the Finance Ministry said on Twitter on Thursday.



The government set spending for the current fiscal year at 48.1 trillion shillings.



The Finance Ministry did not say how the funds would be allocated, but in recent years the energy, transport, and works and health ministries have taken the lion&#8217;s share of the resources.



Opposition lawmakers have accused the government of heavily relying on borrowing to pay for spending.



&#8220;Borrowing has significantly increased over the years, thence gradually increasing the cost of credit. This has undermined the private sector whereby the acquisition of credit has become expensive,&#8221; Mathias Mpuuga, official leader of the opposition in parliament, said on Twitter as part of their response to the proposed spending.



The government defended its borrowing, saying it was necessary for infrastructure and other development projects.



This year, the finance ministry said it will not do any external borrowing in 2023/24 to ease debt-servicing pressures. ($1 = 3,735.0000 Ugandan shillings) (Reporting by Elias Biryabarema; Editing by George Obulutsa and Gerry Doyle)

GettyImages-924883576-1

Uganda parliament approves proposed 10% rise in 2023/24 budget

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/103084881-GettyImages-491956972-820x461.jpg" alt="" class="wp-image-424865" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/103084881-GettyImages-491956972-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/103084881-GettyImages-491956972-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/103084881-GettyImages-491956972-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/103084881-GettyImages-491956972-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/103084881-GettyImages-491956972-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/103084881-GettyImages-491956972.jpg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man holds Zambian 50 kwacha banknotes in Lusaka on Oct. 8, 2015. Waldo Swiegers | Bloomberg | Getty Images</figcaption></figure>



LUSAKA, May 17 (Reuters) &#8211; Zambia&#8217;s central bank on Wednesday raised its key interest rate by 25 basis points to 9.50% as inflation in the copper-rich nation remained high.



The Bank of Zambia said inflation was expected to remain above the 6%-8% target band over the forecast horizon, which runs until the last quarter of next year.



Annual inflation&nbsp;<a href="https://www.reuters.com/quote/ZMCPIY=ECI" target="_blank" rel="noreferrer noopener">(ZMCPIY=ECI)</a>&nbsp;edged higher to 10.2% in April from 9.9% in March.



The bank also raised its main rate by 25 basis points at its previous rate-setting meeting in February, after keeping it unchanged at 9.0% since November 2021.



The southern African nation was the first country in Africa to default on its sovereign debt during the COVID-19 era and has struggled to agree a relief deal with its external creditors. It secured a $3 billion IMF funding last August.



&#8220;Further delays in external debt restructuring negotiations, tighter global financial conditions&#8230; the impact of the prolonged Russia-Ukraine war on food and energy prices remain key upside risks to the inflation outlook,&#8221; the central bank said.



Reporting by Chris Mfula; Writing by Bhargav Acharya; Editing by Olivia Kumwenda-Mtambo

103084881-GettyImages-491956972

Zambia raises key interest rate to 9.5% to tame inflation

<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>



LUSAKA, May 10 (Reuters)&nbsp;&#8211;&nbsp;Zambian President Hakainde Hichilema met French President Emmanuel Macron in Paris on Wednesday and asked Macron to use his country&#8217;s influence to speed up Zambia&#8217;s delayed debt restructuring talks.



Hichilema&#8217;s office said in a statement that Macron wanted Zambia&#8217;s restructuring conclusively dealt with before the June 22-23 Summit for a New Global Financial Pact that France will host and&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N36G23W&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">aims to boost crisis financing for vulnerable countries</a>&nbsp;in the Global South.



There was no immediate statement from Macron&#8217;s office on the meeting with Hichilema.



Zambia defaulted on its sovereign debt in 2020 and has struggled to agree a relief deal with its external creditors.



Its Finance Minister Situmbeko Musokotwane told Reuters in an interview last month that Zambia was being&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3685JK&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">unfairly &#8220;punished&#8221;</a>&nbsp;as restructuring talks dragged on.



Many Western officials have blamed delays in agreeing the debt relief on Zambia&#8217;s largest bilateral creditor, China, something Beijing denies.



Hichilema&#8217;s office said the talks with Macron were fruitful and Zambia was happy &#8220;with President Macron&#8217;s commitment that Zambia&#8217;s debt restructuring programme should conclusively be dealt with before the June summit for a new global financial pact&#8221;.



&#8220;On our part, we emphasised the importance of closing debt talks and asked France to use its role to leverage the Paris Club of Creditors Committee and the G20 to ensure the speedy resolution of the debt restructuring,&#8221; the Zambian statement added, urging France and China to work together on the restructuring.



France and China co-chair the committee of Zambia&#8217;s official creditors.



Zambia sent&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N36R52G&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">a debt restructuring proposal to its official creditors last month</a>, and IMF Managing Director Kristalina Georgieva has said creditors were set to meet this week to consider it.



(Reporting by Chris Mfula; Editing by Alexander Winning and Bernadette Baum)

download-60

Zambia asks France to help speed up debt restructuring talks

Focus On: Rwanda’s push for more Intellectual Property Rights filling

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/download-57.jpg" alt="" class="wp-image-422380" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/download-57.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/download-57-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/download-57-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/download-57-768x512.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">FILE PHOTO: International Monetary Fund (IMF) Managing Director Kristalina Georgieva attends a news conference following a meeting at the Federal Chancellery in Berlin, Germany November 29, 2022. REUTERS/Michele Tantussi/File Photo</figcaption></figure>



NAIROBI, May 5 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund expects to disburse the next tranche of its $1.3 billion financing program with Zambia &#8220;soon&#8221;, the managing director of the fund said.



The southern African nation, which was the major sovereign casualty of the COVID-19 pandemic and has been in default since 2020, is seeking to overhaul its debt in a slow process and it secured the IMF funding last August.



&#8220;What we are waiting is creditors of Zambia to agree on a path forward&#8230; We expect to be able to disburse for Zambia very soon,&#8221; Kristalina Georgieva told reporters in the Kenyan capital.



Zambia sent a debt restructuring proposal to its official creditors last month and Georgieva said they are set to meet next week to consider the proposal.



Ghana and Ethiopia have also sought to restructure their debts and Georgieva said the processes have been delayed by a &#8220;cacophony&#8221; caused by the diversification of creditors in recent years.



China is the largest bilateral creditor for many African nations including Zambia.



&#8220;The Chinese premier and former premier confirmed that Chinese were committed to debt resolution for Zambia when I met them,&#8221; Georgieva said.



Some 19 out of 35 sub-Saharan African nations are at or close to the risk of debt distress, Georgieva said, citing the impact of the pandemic, Russia&#8217;s war in Ukraine, high interest rates and weaker currencies.



But she ruled out the risk of Kenya slipping into default, despite acute pressure on its finances by rising debt repayment obligations.



&#8220;Kenya is definitely not among them,&#8221; she said, citing a sustainable debt load and solid hard currency reserves.



(Reporting by Duncan Miriri, Editing by William Maclean)

East Africa

Kenya finance minister vows to pay all due debts, cuts deficit

Uganda cuts deficit, sees total spending rising in 2023/24

Rwanda to increase spending by 5.6% in 2023/2024 budget

Kenyan president’s tax hikes alienate his ‘hustler’ base

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Kenya economic growth to edge up this year, World Bank says

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World Bank approves $1 billion loan to Kenya

Global firms in Uganda face LGBTQ conundrum

IMF staff, Kenya reach agreement on over $1 bln of new financing

World Bank extends $150 mln to Mozambique to aid Cyclone Freddy recovery

Uganda parliament approves proposed 10% rise in 2023/24 budget

Zambia raises key interest rate to 9.5% to tame inflation

Zambia asks France to help speed up debt restructuring talks

Focus On: Rwanda’s push for more Intellectual Property Rights filling

IMF head sees disbursement to Zambia ‘soon’, Kenya unlikely to default

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East Africa

Kenya finance minister vows to pay all due debts, cuts deficit

Uganda cuts deficit, sees total spending rising in 2023/24

Rwanda to increase spending by 5.6% in 2023/2024 budget

Kenyan president’s tax hikes alienate his ‘hustler’ base

Eritrea rejoins regional East African bloc after 16-year absence

World Bank Group pledges more support for Safaricom Ethiopia

Kenya economic growth to edge up this year, World Bank says

Kenya central bank nominee to push for local dollar bond issuance

World Bank approves $1 billion loan to Kenya

Global firms in Uganda face LGBTQ conundrum

IMF staff, Kenya reach agreement on over $1 bln of new financing

World Bank extends $150 mln to Mozambique to aid Cyclone Freddy recovery

Uganda parliament approves proposed 10% rise in 2023/24 budget

Zambia raises key interest rate to 9.5% to tame inflation

Zambia asks France to help speed up debt restructuring talks

Focus On: Rwanda’s push for more Intellectual Property Rights filling

IMF head sees disbursement to Zambia ‘soon’, Kenya unlikely to default

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