<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CWUIN7YMUJM4RCNKGAU2HLA2HA-820x547.jpg" alt="" class="wp-image-422614" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CWUIN7YMUJM4RCNKGAU2HLA2HA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CWUIN7YMUJM4RCNKGAU2HLA2HA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CWUIN7YMUJM4RCNKGAU2HLA2HA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CWUIN7YMUJM4RCNKGAU2HLA2HA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CWUIN7YMUJM4RCNKGAU2HLA2HA.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Zambia&#8217;s President Hakainde Hichilema presents his national statement as a part of the World Leaders&#8217; Summit at the UN Climate Change Conference (COP26) in Glasgow, Scotland, Britain November 1, 2021. Andy Buchanan/Pool via REUTERS</figcaption></figure>



LUSAKA, Jan 23 (Reuters)&nbsp;&#8211;&nbsp;Zambian President Hakainde Hichilema urged the country&#8217;s creditors on Monday to agree to a quick debt restructuring to aid economy recovery efforts.



Hichilema made the remarks during a visit to Zambia by International Monetary Fund (IMF) Managing Director Kristalina Georgieva, who met Hichilema, Finance Minister Situmbeko Musokotwane, central bank governor Denny Kalyalya and other senior government officials.



Zambia defaulted on its sovereign debt in 2020, becoming the first African country to do so during the COVID-19 pandemic.



In August last year it won IMF approval for a $1.3 billion, three-year loan&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N30734Z&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">programme</a>&nbsp;intended to help ease pressure on its public finances while it conducts&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3432D2&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">$13 billion restructuring discussions</a>.



&#8220;If (the debt restructuring is) not concluded soon, it is going to distort all the good efforts that we have been making to reconstruct the economy and bring investment,&#8221; Hichilema told Georgieva, in remarks with reporters present.



He added that if the restructuring was concluded by a government target of the end of the first quarter of this year it could &#8220;help a lot to open up areas that are sometimes causing negative sentiment&#8221;.



Georgieva commended the government for moving away from wasteful expenditure to use funds more prudently. She said the IMF would like to work with Zambia to boost its economic growth.



Georgieva, who has pushed hard for quicker movement on debt relief,&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N33X31I&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">has said</a>&nbsp;she hopes Zambia will become the second nation after Chad to complete a debt treatment process under the Group of 20 major economies&#8217; Common Framework.



(Reporting by Chris Mfula; Writing by Anait Miridzhanian and Alexander Winning; Editing by Estelle Shirbon and Angus MacSwan)

CWUIN7YMUJM4RCNKGAU2HLA2HA

Zambian president wants quick debt restructuring to aid recovery

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/UCYGVOHD4JP7JPIOBH22IWOMJA.jpg" alt="" class="wp-image-422570" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/UCYGVOHD4JP7JPIOBH22IWOMJA.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/UCYGVOHD4JP7JPIOBH22IWOMJA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/UCYGVOHD4JP7JPIOBH22IWOMJA-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Ruth Nankabirwa Ssentamu, Ugandan minister of energy and mineral development speaks to Reuters at the Africa Oil Week 2022 conference at the Cape Town International Convention Centre 2, Cape Town, South Africa, October 4, 2022. REUTERS/Shelley Christians/File Photo</figcaption></figure>



KAMPALA, Jan 20 (Reuters)&nbsp;&#8211;&nbsp;Uganda said on Friday it plans to announce a third oil licensing round in May&nbsp;in an effort to further develop a sector on track to produce its first oil in 2025.



Energy Minister Ruth Nankabirwa Ssentamu said in a statement detailing developments in the sector that the next licensing round would be announced at a regional petroleum conference due to take place in Uganda&#8217;s capital Kampala in May.



She did not say how many blocks would be put up for auction.



The East African country discovered commercial hydrocarbon deposits near its western border with Democratic Republic of Congo in 2006. Production is projected to begin in 2025.



Uganda is&nbsp;also&nbsp;developing a crude export pipeline and a domestic crude refinery that will help to commercialise the country&#8217;s oil resources.



A U.S. firm, Albertine Graben Energy Consortium Partners (AGEC), is planning to build and operate a $4.5 billion, 60,000 barrel-per-day refinery to produce a range of refined products and liquefied petroleum gas for the regional market.



It will also build&nbsp;a 213-kilometre (130-mile) refined products pipeline from the oilfields to storage facilities near Kampala.



Ssentamu&nbsp;said a final investment decision on the refinery was expected this year.



She added&nbsp;the pipeline and refinery would be developed&nbsp;concurrently&nbsp;and &#8220;when both projects are operational, the refinery will have the first call on crude oil&#8221;.



All of Uganda&#8217;s existing oilfields are jointly owned by France&#8217;s TotalEnergies&nbsp;TTEF.PA, China&#8217;s CNOOC&nbsp;0883.HK&nbsp;and the state-run Uganda National Oil Company.



(Reporting by Elias Biryabarema; editing by Jason Neely)

Ruth Nankabirwa Ssentamu, Ugandan minister of energy and mineral development at the Africa Oil Week in Cape Town

Uganda to announce oil blocks licensing round in May

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="543" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/07/SF4EAWJFM5MEJL6MPGZVITISBM-820x543.jpg" alt="" class="wp-image-418602" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/07/SF4EAWJFM5MEJL6MPGZVITISBM-820x543.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/SF4EAWJFM5MEJL6MPGZVITISBM-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/SF4EAWJFM5MEJL6MPGZVITISBM-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/SF4EAWJFM5MEJL6MPGZVITISBM-768x509.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/SF4EAWJFM5MEJL6MPGZVITISBM-1536x1017.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/SF4EAWJFM5MEJL6MPGZVITISBM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenya&#8217;s Deputy President William Ruto of United Democratic Alliance (UDA) and Kenya Kwanza political coalition speaks at an interview with Reuters ahead of the forthcoming presidential elections, at his Karen residence in Nairobi, Kenya, July 20, 2022. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, Jan 19 (Reuters)&nbsp;&#8211;&nbsp;Kenya will set a net external financing target of 198.6 billion shillings ($1.60 billion), or 1.2% of&nbsp;its gross domestic product, for its 2023/24 financial year&nbsp;ending in June, the ministry of finance said in a draft budget policy statement.



The government will aim for a net domestic borrowing target of 496.6 billion shillings,&nbsp;or&nbsp;3% of GDP, for the same period, it said in the policy statement.



The new targets are lower than those set for the current financial year, which stood at 280 billion shillings from external sources and 581 billion shillings locally.



President William Ruto&#8217;s administration, which came into office last September, plans to slash the budget deficit to 4.3% of GDP in&nbsp;the 2023/24&nbsp;financial year, from an estimated 5.8% in the current period, before cutting it further to 3.6% in&nbsp;the 2026/27&nbsp;period.



($1 = 123.9500 Kenyan shillings)



(Reporting by Duncan Miriri; Editing by Jacqueline Wong and Christian Schmollinger)

Kenyan Deputy President Ruto speaks in Nairobi

Kenya eyes lower local and foreign borrowing targets as it cuts deficit

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1239385959-1-820x547.jpg" alt="" class="wp-image-422519" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1239385959-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1239385959-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1239385959-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1239385959-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1239385959-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1239385959-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">MANACACIAS, COLOMBIA &#8211; MARCH 15: A person is seen wearing a World Wildlife Fund (WWF) t-shirt at the Mountain-range of ManacacÃ­as during International Day of Forest in Manacacias, Colombia on March 15, 2022. The ManacacÃ­as Mountain Range is considered an earthly paradise due to its environmental richness not seen anywhere else in the country. The ManacacÃ­as mountain range, located in the department of Meta, is a paradise. Not surprisingly, scientists have managed to record up to a quarter (460) of the bird species in Colombia (1,900), the country with the greatest diversity of birds in the world. This natural paradise encompasses ecosystems such as dissected savannahs (also known as undulating savannahs) and gallery forests that are poorly represented in the National System of Protected Areas. (Photo by Juancho Torres/Anadolu Agency via Getty Images)</figcaption></figure>



LONDON, Jan 18 (Reuters)&nbsp;&#8211;&nbsp;Zambia received a &#8216;debt-for-nature swap&#8217; proposal as part of its $13 billion restructuring discussions, a move that while complex to secure and not part of current talks, could set an eco-friendly precedent for other debt crises if eventually included.



Zambia has become a test case for the G20-led &#8216;Common Framework&#8217; restructuring vehicle launched during the COVID-19 pandemic, but&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N33C2NL&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">differences</a>&nbsp;with some of its main creditors about the debt relief required means progress has been slow.



The government confirmed to Reuters on Wednesday a previously undisclosed detail &#8211; that the World Wildlife Fund (WWF) provided a blueprint last year on how conservation pledges could be part of the deal.



In their simplest form, debt-for-nature swaps replace expensive bonds or loans with cheaper financing, usually with the help of a credit guarantee from a multilateral development bank.



It is an approach that helped both Belize and Seychelles secure writedowns that put tens of millions of dollars into ocean protection and conservationists see Zambia, known for the iconic Victoria Falls, as an obvious candidate.



Its vast swathes of national parks are home or migration routes for some of Africa&#8217;s most impressive wildlife including lions and elephants. Their habitats, though, are under increasing threat from climate change and deforestation.



&#8220;The Ministry of Finance and National Planning has received a proposal from the World Wildlife Fund regarding the consideration of debt-for-nature swaps,&#8221; the ministry said in an emailed response to whether it was looking at a swap.



The idea has not been factored into the International Monetary Fund&#8217;s current debt sustainability analysis but that wouldn&#8217;t prevent it being added later, especially if creditors made it clear that they might back it.



&#8220;We will be considering all debt restructuring options that are in the framework (G20 Common Framework)which falls within the DSA (debt sustainability analysis) parameters&#8230; and that are acceptable to all parties,&#8221; the ministry&#8217;s response added.



<h2 class="wp-block-heading" id="h-common-framework">COMMON FRAMEWORK</h2>



WWF&#8217;s Zambia country head, Nachilala Nkombo, told Reuters that the most recent talks with the government took place last month.



While some of Zambia&#8217;s private sector bond holders are expected to be open to the idea, it is not known where China, France and other key &#8216;<a href="https://www.reutersconnect.com/all?search=all%3AL8N33X4C4&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">official sector</a>&#8216; creditors stand, given that talks have already dragged on for two years.



Sri Lanka, another Common Framework restructuring country, has&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N31G064&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">said</a>&nbsp;that it would like to do a debt-for-nature swap and with Zambia still hoping to wrap up its deal this year it would likely set a precedent.



IMF head Kristalina Georgieva will&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N33X31I&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">visit</a>&nbsp;Zambia in two weeks. Her trip will coincide with the country&#8217;s&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N33V3V3&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">rationing</a>&nbsp;of electricity supply to mining firms due to critically low water levels of the country&#8217;s hydroelectric dams that provide most of its power.



The Victoria Falls, the country&#8217;s main tourist draw,&nbsp;have been reduced to a trickle at times in recent years. Farmers have see crop yields plunge, poaching remains a scourge and deforestation rates are among the worst in the world.



&#8220;That is somebody&#8217;s job, somebody&#8217;s food and that is the country&#8217;s future at risk,&#8221; Nkombo said.



KAZA conservation area<a href="https://tmsnrt.rs/3GSx3k7" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3GSx3k7</a>



Debt-for-nature swaps<a href="https://tmsnrt.rs/3AmVX94" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3AmVX94</a>



(Editing by Elaine Hardcastle)

GettyImages-1239385959-1

Zambia received ‘debt-for-nature’ proposal from WWF for $13 bln restructuring

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1239984716-820x547.jpg" alt="" class="wp-image-422365" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1239984716-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1239984716-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1239984716-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1239984716-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1239984716-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1239984716-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Tug boats prepare to pull out an LNG Tanker vessel at the Cheniere Sabine Pass Liquefaction facility in Cameron, Louisiana, U.S., on Thursday, April 14, 2022. Cheniere Energy, Inc. is the largest producer and exporter of liquefied natural gas (LNG) in the United States and the second-largest LNG operator in the world. Photographer: Mark Felix/Bloomberg via Getty Images</figcaption></figure>



LONDON, Jan 13 (Reuters)&nbsp;&#8211;&nbsp;The British government&#8217;s funding of up to $1.15 billion for a liquefied natural gas (LNG) project in Mozambique is lawful, a London court ruled on Friday, dismissing an appeal by Friends of the Earth.



The environmental campaign group had asked London&#8217;s Court of Appeal to rule the British government wrongly decided funding the project, led by French energy company TotalEnergies&nbsp;TTEF.PA, was compatible with the Paris Agreement on climate change.



UK Export Finance (UKEF) has committed to provide direct loans and guarantees to banks to support the design, build and operation of the $20 billion project.



Friends of the Earth&#8217;s legal action over the decision failed in a lower court and was dismissed by the Court of Appeal in a written ruling on Friday.



Judge Geoffrey Vos said the Paris Agreement was &#8220;only one of a range of factors&#8221; UKEF took into account when reaching the decision to fund the project.



The judge added that UKEF&#8217;s view that funding the project was aligned with the UK&#8217;s obligations under the Paris Agreement was &#8220;tenable&#8221; and that there was no requirement for it to be &#8220;certain that the decision complied with those obligations&#8221;.



Friends of the Earth described the ruling as &#8220;extremely disappointing&#8221; and said it is considering an appeal to the UK Supreme Court.



&#8220;This extremely disappointing judgment doesn&#8217;t alter our firm belief that the UK government should not be supporting the Mozambique gas project, or any fossil fuel project at home or abroad,&#8221; Rachel Kennerley, an international climate campaigner with the group, said in a statement.



UKEF did not immediately respond to a request for comment.



A spokesperson for TotalEnergies welcomed the ruling, saying the project &#8220;will deliver a range of social and economic benefits to Mozambique and is a key part of Mozambique&#8217;s aim to diversify its economy&#8221;.



&#8220;TotalEnergies supports the goals of the 2015 Paris Agreement, which calls for reducing greenhouse gas emissions in the context of sustainable development and the fight against poverty,&#8221; the spokesperson added.



(Reporting by Sam Tobin; editing by Sarah Young, Kylie MacLellan and David Evans)

Inside The Cheniere Sabine Pass Liquefaction Facility

UK’s $1.15 bln funding for Mozambique LNG project lawful -court

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-820x547.jpg" alt="" class="wp-image-419241" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">TIHANGE, BELGIUM &#8211; AUGUST 10: Electricity pylon is seen near from the Tihange Nuclear Power Station on August 10, 2022, in Tihange, Belgium. As the European Union prepares for the drastic reduction of Russian gas imports, some users are concerned about the risk of heating and electricity cuts next winter. (Photo by Thierry Monasse/Getty Images)</figcaption></figure>



LUSAKA, Jan 10 (Reuters)&nbsp;&#8211;&nbsp;Zambia has started rationing electricity supply to mining firms following reduced power generation after a big drop in water levels in lake Kariba, the chairman of state-owned power utility Zesco said on Tuesday.



Water levels in the lake were down at 1.66% of usable storage on Monday for the Kariba North Bank Power Station in Zambia and the Kariba South Bank Power Station on the Zimbabwean side of the lake, said the Zambezi River Authority, which manages the dam.



The north bank power station has an installed capacity of 1,080 megawatts (MW), while the south bank power station in Zimbabwe has a capacity of 1,050 MW.



Hydropower contributes to more than 75% of Zambia&#8217;s electricity generation.



&#8220;We requested them to give away 180 MW but after negotiations we went down to 110 MW,&#8221; the utility&#8217;s chairman Vickson Ncube told Reuters, referring to mining companies in Africa&#8217;s No. 2 copper producer.



Last week, Zesco doubled the number of hours it cut supply to domestic customers to 12 hours from six hours daily as the low water levels in the lake threatened power generation.



Water levels in the lake have fallen due to reduced inflows from the Zambezi river and its tributaries and heavy use by power generation companies in Zimbabwe and Zambia.



Ncube said power rationing was expected to be reduced by the middle of next month as water levels increased and full generation was to likely resume in March.



(Reporting by Chris Mfula; Editing by Bhargav Acharya and David Evans)

Tihange Nuclear Power Station

Zambia extends electricity rationing to mining firms

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="505" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-820x505.jpg" alt="" class="wp-image-422280" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-820x505.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-146x90.jpg 146w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-768x473.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-1536x945.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya Airways planes are seen through a window as the Jomo Kenyatta international airport reopens after flights were suspended following the coronavirus disease (COVID-19) outbreak in Nairobi, Kenya August 1, 2020. REUTERS/Njeri Mwangi/File Photo</figcaption></figure>



NAIROBI, Jan 10 (Reuters)&nbsp;&#8211;&nbsp;Kenya Airways&nbsp;KQNA.NR&nbsp;is experiencing flight disruptions due to delays in securing aircraft components required for maintenance, the carrier said late on Monday.



The airline, which is one of Africa&#8217;s biggest, may be forced to cut some flights if the challenges of getting the parts persist, Chief Executive Officer Allan Kilavuka said in a statement.



&#8220;The challenges have been occasioned by the Ukraine war crisis, which has significantly crippled the Russian supply chain crucial to global aviation,&#8221; he said.



He cited titanium from Russia as one of the key raw materials used by the aviation industry, and is crucial to the maintenance of planes.



Kenya Airways, whose strategy hinges on connecting African travellers to the world and vice-versa through its Nairobi hub, operates a fleet of Boeing and Embraer planes.



(Reporting by Duncan Miriri; Editing by Jacqueline Wong and Sherry Jacob-Phillips)

FILE PHOTO: The coronavirus disease (COVID-19) outbreak in Nairobi

Parts shortages impact Kenya Airways, cause flight disruptions

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MEL7MD37ORJKZMI5QGD43UZ7UU.jpg" alt="" class="wp-image-422216" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MEL7MD37ORJKZMI5QGD43UZ7UU.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MEL7MD37ORJKZMI5QGD43UZ7UU-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MEL7MD37ORJKZMI5QGD43UZ7UU-142x90.jpg 142w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption>Former Kenyan President Uhuru Kenyatta applauds Ethiopian government representative Redwan Hussien and Tigray delegate Getachew Reda after signing the AU-led negotiations to resolve the conflict in northern Ethiopia, in Pretoria, South Africa, November 2, 2022. REUTERS/Siphiwe Sibeko</figcaption></figure>



NAIROBI, Jan 5 (Reuters)&nbsp;&#8211;&nbsp;A year that began with no end in sight for one of the world&#8217;s deadliest conflicts finished on a note of cautious optimism in Ethiopia&#8217;s northern region of Tigray after a November ceasefire agreement.



The two-year-long war has caused a dire humanitarian crisis, killing tens of thousands, leaving millions in severe need of food and threatening the stability of Africa&#8217;s second-most populous country.



On Nov. 2, Ethiopia&#8217;s federal government and the Tigray People&#8217;s Liberation Front (TPLF), a guerrilla force-turned political party that dominates the region,&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AJ8N31400C&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">agreed to stop fighting</a>&nbsp;following African Union-mediated talks.



Civil war erupted in November 2020 after months of escalating recriminations between the two sides.



The TPLF, which dominated Ethiopia for nearly three decades before Prime Minister Abiy Ahmed took office in 2018, accuses his government of wanting to centralise power at the expense of regions. Abiy accuses the TPLF of trying to regain national power. Each side rejects the other&#8217;s narrative.



Human rights violations by all sides &#8211; including extrajudicial killings, rapes and looting &#8211; have been documented by United Nations agencies, Ethiopia&#8217;s state appointed human rights commission and media&nbsp;<a href="https://www.reuters.com/investigates/special-report/ethiopia-conflict-expulsions/" target="_blank" rel="noreferrer noopener">including Reuters</a>. All sides deny the allegations.



The truce has enabled international aid deliveries to resume to parts of Tigray. Last week, state-owned Ethiopian Airlines&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N33I0TM&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">resumed flights</a>&nbsp;to Tigray&#8217;s capital.



But the prospects for peace remain uncertain.



Although Eritrea, a sworn enemy of the TPLF that has fought on the side of Abiy&#8217;s government,&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AN6N2XN02L&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">began withdrawing</a>&nbsp;some of its forces from two major Tigray towns last week, it is not yet clear whether its troops will pull out of Tigray altogether.



Until they do, diplomats and analysts worry Tigray forces will refuse to disarm, risking a resumption of hostilities.



<h2 class="wp-block-heading" id="h-why-it-matters">WHY IT MATTERS</h2>



Ethiopia is a military and diplomatic powerhouse in East Africa, strategically located between war-torn Somalia, Kenya and Sudan.



Prior to the conflict, investors had flocked to Ethiopia for a slice of one of the last largely untapped economies in Africa, which had begun to open up to foreign companies.



Ethiopia&#8217;s military, which is regarded as the most effective in the Horn of Africa, plays a key role in an African Union (AU) peace-keeping force in Somalia and has also sent troops there independently.



There is also the ongoing humanitarian fallout. Aid agencies complain the Ukraine war has diverted attention from the unfolding disaster in Ethiopia.



<h2 class="wp-block-heading">WHAT DOES IT MEAN FOR 2023?</h2>



This year will be key to determining whether the ceasefire reached in November can deliver a lasting peace in northern Ethiopia.



Major issues remain to be resolved, including the withdrawal of Eritrean and other forces that have fought alongside the government and the future of disputed territory claimed by both Tigray and the neighbouring region of Amhara.



International partners are heavily invested in ending the war. The AU, Kenya and South Africa helped mediate the truce and are keen to deliver an African solution to the problem. The United States has said it will not hesitate to&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AO8N31I01Y&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">impose sanctions</a>&nbsp;on parties that fail to abide by the truce.



Ethiopia, seeking to revive interest from foreign investors, has&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AN6N2XN015&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">restarted the sale</a>&nbsp;of a 40% stake in state-owned Ethio Telecom and a separate plan to issue a second full telecoms licence.



It is also targeting a debt restructuring under the Group of 20&#8217;s Common Framework and has asked the International Monetary Fund for a new loan programme, but progress&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2RV1JC&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">has been complicated</a>&nbsp;by the war.



Explore the&nbsp;<a href="https://www.reuters.com/world/year-in-review/" target="_blank" rel="noreferrer noopener">Reuters round-up of news stories</a>&nbsp;that dominated the year, and the outlook for 2023.



(Reporting by Tommy Reggiori Wilkes; Editing by Emelia Sithole-Matarise)

African Union envoy holds a news conference on Ethiopia peace talks

Ethiopia sets out on long road to peace after two years of war

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



&nbsp;Kenya will not default on its debt and plans to ramp up tax collection in the next two years, President William Ruto said on Wednesday.



Ruto&#8217;s government, which took over in September, has pledged to curb expensive commercial borrowing in favour of cheaper sources like the World Bank to reduce debt servicing pressures.



The East African nation&#8217;s public&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3260FP&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">debt surged</a>&nbsp;during an infrastructure construction drive under Ruto&#8217;s predecessor Uhuru Kenyatta, prompting warnings from ratings agencies.



&#8220;This country of ours will not default. I want to give you my assurance. Our country will not default on our obligations. We have applied (the) brakes on any more borrowing,&#8221; Ruto said in a wide-ranging interview with Kenyan media outlets.



He added that the government aimed to collect an extra 1 trillion shillings ($8.11 billion) in taxes in the next 24 months, and reiterated plans to cut 300 billion shillings in borrowing in the current fiscal year that runs until the end of June.



Like other frontier economies, Kenya found it almost impossible to raise funds from international bond markets in 2022 due to a surge in yields.



In June it was forced to cancel the planned issuance of a Eurobond and is seeking alternative sources of funding.



In February last year, Fitch said rising government debt levels and global interest rates were increasing the risk of credit rating downgrades in as many as 10 African countries, with Kenya, Ghana, Lesotho, Namibia, Rwanda and Uganda most at threat.



($1 = 123.3000 Kenyan shillings)



(Reporting by George Obulutsa; Editing by Alexander Winning and Sandra Maler)

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

Kenya will not default on its debt payments -President Ruto

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-820x551.jpg" alt="" class="wp-image-422104" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-1536x1032.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A participant stands near a logo of IMF at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018. REUTERS/Johannes P. Christo</figcaption></figure>



NAIROBI, Dec 20 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund&#8217;s (IMF) board has approved the disbursement of $447.39 million to Kenya after a review of its lending programme, the fund said on Tuesday.



Kenya&#8217;s public debt had begun to &#8220;level off&#8221; due to fiscal consolidation progress, the fund said in a statement, adding it has allocated additional financing under an existing facility.



The East African nation struck a 38-month financing deal with the IMF in April last year, under its extended fund facility and extended credit facility. The latest disbursement takes the total so far to $1.65 billion.



Kenya will now get a total of $2.416 billion from the current deal, the IMF said. Both sides agreed the increment last month to cover external financing needs &#8220;resulting from drought and challenging global financing conditions&#8221;.



The government cancelled the planned issuance of a Eurobond in June due to a surge in bond yields.



President William Ruto&#8217;s government, which took over in September, plans to cut expensive commercial borrowing in favour of cheaper sources like the World Bank to reduce the debt servicing pressure on revenue.



Kenya&#8217;s economy was &#8220;resilient&#8221; and expected to expand by 5.3% this year, the IMF said, adding that inflation was expected to peak in early 2023.



(Reporting by Duncan Miriri; Editing by Jonathan Oatis and Kenneth Maxwell)

W3TRJMXBPRNATIXO27SFJRC77U

IMF approves disbursement of $447.39 million to Kenya

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-496939146-820x547.jpg" alt="" class="wp-image-421904" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-496939146-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-496939146-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-496939146-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-496939146-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-496939146-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-496939146-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>An Eskom sign sits on the exterior of the Eskom Holdings SOC Ltd. headquarters, South Africas state-owned electricity utility at Megawatt Park in Sandton, near Johannesburg, South Africa, on Wednesday, Nov. 11, 2015. A plan to reform state-owned power company Eskom Holdings SOC Ltd. and bring South Africa and its economy out of the dark is starting to show results, according to Chief Executive Officer Brian Molefe. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



KAMPALA, Dec 9 (Reuters)&nbsp;&#8211;&nbsp;Uganda said on Friday it would not renew South Africa power firm Eskom&#8217;s licences to run two hydropower stations when they expire in March next year, as part of plans to bring the electricity sector under government control to reduce costs to consumers.



The government will create the Uganda National Electricity Company Limited (UNECL), a state-run company to manage the generation, transmission and distribution segments of the electricity sector, the ministry of energy and mineral development said in a statement.



President Yoweri Museveni has repeatedly complained that expensive private capital was responsible for high electricity tariffs in Uganda, which makes it unaffordable for consumers.



&#8220;The ministry has already formally notified Eskom&#8230;of the government&#8217;s decision not to renew their concession agreements when they come to their natural end in March 2023,&#8221; the ministry said in the statement.



Eskom did not immediately respond to a request for comment.



Eskom runs two hydropower plants at the source of the River Nile in Jinja, about 90 kilometres (56 miles) east of the Ugandan capital Kampala.



The government intends to &#8220;minimise expensive private capital&#8221; in the electricity sector by bringing it under direct state management and control, the ministry said.



The new company, UNECL, will likely be structured as a Public Private Partnership (PPP) with the state firm as a majority shareholder, the energy ministry said.



Last month the government&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N32Y1FV&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">notified Umeme Limited</a>UMEME.UG, a private company with monopoly rights to distribute power in Uganda, that it would not renew its licence when it expires in March 2025.



(Reporting by Elias Biryabarema; Editing by Hereward Holland, Kirsten Donovan)

Eskom Holdings SOC Ltd Chief Executive Officer Brian Molefe Interview

Uganda says will not renew Eskom’s hydropower licences next year

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



NAIROBI, Dec 8 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s economic growth will slow down to 5% next year from an estimated 5.5% this year, the World Bank said on Thursday, as the rebound from the impact of the coronavirus pandemic loses momentum.



East Africa&#8217;s biggest economy could also see a drop in demand for its horticulture exports and visits by tourists from advanced economies due to a global downturn in economic activities, the bank said in its Kenya Economic update report.



&#8220;On the domestic front, risks can emanate from fiscal slippages,&#8221;&nbsp;the bank said in anticipation of higher spending by President William Ruto&#8217;s government.



Ruto rode into office in September on the promise of alleviating high costs of living for citizens, which could put pressure on the budget, the bank said.



Higher spending could cut the amount of credit available to businesses and increase the government&#8217;s debt, the report said,&nbsp;with higher borrowing costs likely to exacerbate the situation.



Policymakers have&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N32J44J&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">hiked</a>&nbsp;the benchmark lending rate three times since May this year to arrest inflationary pressures.



Growth is expected to edge up to 5.3% in 2024, the World Bank said, supported by increased private investments.



Kenya&#8217;s economy had one of its fastest growth rates in 2021, growing at 7.5%, as it recovered from its first contraction in nearly three decades in the previous year&nbsp;due to the pandemic.



(Reporting by Duncan Miriri; Editing by Arun Koyyur)

istockphoto-1250489640-640×640

Kenya’s economic growth to slow to 5% next year, World Bank says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/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>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, Dec 6 (Reuters)&nbsp;&#8211;&nbsp;Kenya has asked the World Bank for a $750 million budget support loan, the finance minister said on Tuesday, to help cover its funding needs for the financial year to the end of next June.



The minister, Njuguna Ndung&#8217;u, had said last month Kenya was in talks with the World Bank for&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3272QK&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">new financing</a>, without disclosing the amount involved.



&#8220;The proposed package under discussion with the World Bank aims at promoting sustainable, resilient and inclusive growth,&#8221; Ndung&#8217;u said in a speech at a World Bank event on Tuesday.



President William Ruto, who was sworn into office in mid-September, is seeking less costly loans after a debt-fuelled infrastructure construction drive by his predecessor saddled the country with high-interest commercial debt.



The lending instrument under discussion with the World Bank is a Development Policy Operations loan, Ndung&#8217;u said, which is usually tied to a pre-agreed policy area.



Kenya qualified for that type of financing in 2019 and it has since received four such loans, the last one in March.



(Reporting by Duncan Miriri; Editing by George Obulutsa and Mark Potter)

IMF And World Bank Headquarters During Virtual Spring Meetings

Kenya seeks $750 mln loan from the World Bank, finance minister says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="464" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/EWNTDW3B5JLSPG6JTXZRK3JYPY-820x464.jpg" alt="" class="wp-image-421626" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/EWNTDW3B5JLSPG6JTXZRK3JYPY-820x464.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/EWNTDW3B5JLSPG6JTXZRK3JYPY-300x170.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/EWNTDW3B5JLSPG6JTXZRK3JYPY-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/EWNTDW3B5JLSPG6JTXZRK3JYPY-768x434.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/EWNTDW3B5JLSPG6JTXZRK3JYPY-1536x869.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/EWNTDW3B5JLSPG6JTXZRK3JYPY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: Malawi&#8217;s Vice President Saulos Klaus Chilima arrives at a polling station in Lilongwe, Malawi May 21, 2019 in this still image obtained from REUTERS TV video. REUTERS TV/Eldson Chagara/via REUTERS</figcaption></figure>



BLANTYRE, Nov 25 (Reuters)&nbsp;&#8211;&nbsp;Malawi&#8217;s Anti-Corruption Bureau has arrested and charged the country&#8217;s Vice President Saulos Klaus Chilima over graft allegations, it said on Friday, following months of investigation over his conduct.



In a national address in June, Malawi&#8217;s President Lazarus Chakwera stripped Chilima of his powers when the watchdog first accused him of corruption.



But at the time the president &#8211; who has waged a crackdown on corruption &#8211; said he had no constitutional authority to suspend or remove the vice president from office. He however barred Chilima from carrying out his duties.



Chilima was taken to court to face corruption charges, the corruption watchdog said in a statement.



Footage from local media showed supporters of Chilima and the police seemingly in a scuffle as he was being taken into court for the formal reading of charges.



&#8220;I have no comment to make. We will let the court process run its course,&#8221; Chilima told reporters outside court after being granted bail, according to media.



The watchdog alleged Chilima was rewarded for assisting Xaviar Limited and Malachitte FZE, two companies connected to British businessman Zuneth Sattar to be awarded contracts by the Malawi Government.



It has been investigating Sattar and other public officers in Malawi over alleged plundering of state resources by influencing awarding of contracts through the country&#8217;s public procurement system, it said.



&#8220;On 25th November, 2022, the Anti-Corruption Bureau (ACB) arrested Dr. Saulos Klaus Chilima&#8230; on allegation that between March 2021 and October 2021, he received advantage in form of money amounting to USD 280,000 and other items from Zuneth Sattar as a reward&#8230;&#8221; the bureau said.



In August, the Financial Times reported that Sattar was under investigation by Britain&#8217;s National Crime Agency (NCA) over alleged abuse of Malawi&#8217;s public procurement system. He had not been charged with any offence and denied wrongdoing, the FT said.



NCA did not immediately respond to a request for comment on Friday. Reuters could not immediately reach Sattar for comment.



In January this year, Chakwera dissolved his entire cabinet on charges of corruption against three serving ministers.



(Reporting by Frank Phiri in Blantyre; Additional reporting by Andrew MacAskill in London; Writing by Bhargav Acharya; Editing by James Macharia Chege and Alex Richardson)

Malawi’s Anti-Corruption Bureau arrested the country’s Vice President Chilima over corruption allegations in Lilongwe

Malawi vice president arrested over corruption, says graft watchdog

<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>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>



WASHINGTON, Nov 21 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund said its executive board on Monday completed its first review of Mozambique&#8217;s three-year loan program, allowing for an immediate disbursement to Maputo of about $59.26 million.



The review brings total disbursements under the $456 million Extended Credit Facility program&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AS0N2V6048&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">approved in May</a>&nbsp;to about $150 million to date, the IMF said.



The IMF said Mozambique&#8217;s implementation of the loan program&#8217;s policy requirements was &#8220;strong,&#8221; despite a challenging global environment that has pushed inflation into the double digits due to high food and fuel prices.



It cited completion of government commitments in the areas of fiscal governance and anti-corruption.



The IMF projected Mozambique&#8217;s real GDP growth would accelerate to 5.0% in 2023 from a projected 3.8% in 2022 and 2.3% in 2021, driven by large liquefied natural gas project investments and a strong vaccination program that led to the full lifting of COVID-19 restrictions in July 2022.



The first liquefied natural gas project in Mozambique started production this month and is expected to improve Mozambique&#8217;s current account balance, the IMF said.



&#8220;Program performance has been strong, with all quantitative targets and the structural benchmark met at end-June,&#8221; IMF Deputy Managing Director Bo Li said in a statement.



&#8220;While the outlook remains positive, driven by large liquefied natural gas projects, significant risks remain, including from adverse climate events and fragile security situation. Governance weaknesses and debt vulnerabilities also pose challenges,&#8221; Li said, adding Mozambique still needed donor support and continued governance capacity development.



(Reporting by David Lawder; Editing by Chris Reese)

US-ECONOMY-FINANCE-IMF-WORLD BANK

IMF to disburse $59 mln to Mozambique after loan review

<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>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>



WASHINGTON, Nov 21 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund said its executive board on Monday approved an $88.3 million disbursement to Malawi under the new &#8220;food shock window&#8221; emergency lending facility launched in response to food price spikes and shortages caused by Russia&#8217;s war in Ukraine.



The IMF also said the executive board assessed that a previously approved staff-monitored policy program for Malawi linked to the food shock loan is &#8220;sufficiently robust to meet the stated objectives&#8221; and was expected to build a track record&nbsp;of policy implementation that could lead to a more&nbsp;formal IMF &#8220;upper credit tranche-quality&#8221;&nbsp;loan arrangement.



The IMF said the food shock loan, part of the IMF&#8217;s Rapid Credit Facility, would help the east African country address urgent balance-of-payments needs brought on by rising food import and fertilizer costs and a falling currency.



&#8220;Malawi is facing a challenging economic and humanitarian situation, with foreign exchange shortages and an exchange rate misalignment leading to a sharp decline in imports including fuel, fertilizer, medicine, and food,&#8221; IMF Deputy Managing Director Bo Li said in a statement.



Li said that while debt is sustainable on a forward-looking basis, risks to the program are high and it was important to swiftly implement a debt restructuring strategy.



&#8220;The credible process underway to restructure the authorities’ debt to commercial creditors, which in itself would restore debt sustainability albeit with high risk, is welcome,&#8221; Li said. &#8220;Swift progress is also needed on the reprofiling of official bilateral debt.&#8221;



(Reporting by David Lawder; Editing by Chris Reese)

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

IMF approves $88.3 mln for Malawi under ‘food shock’ loan window

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/S76BW3Z2BBMIHKBVMFRZZLYJUQ-820x547.jpg" alt="" class="wp-image-421431" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/S76BW3Z2BBMIHKBVMFRZZLYJUQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/S76BW3Z2BBMIHKBVMFRZZLYJUQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/S76BW3Z2BBMIHKBVMFRZZLYJUQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/S76BW3Z2BBMIHKBVMFRZZLYJUQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/S76BW3Z2BBMIHKBVMFRZZLYJUQ.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A Kenyan farmer uproots a field where he was growing maize that failed because of a drought, in Kilifi county, Kenya, February 16, 2022. Picture taken February 16, 2022. REUTERS/Baz Ratner</figcaption></figure>



NAIROBI, Nov 18 (Reuters)&nbsp;&#8211;&nbsp;Kenya is set to import its first genetically modified maize, the trade cabinet secretary has said, as the government seeks to ease food shortages caused by the country&#8217;s worst drought in 40 years.



Local media reported that Kenya will on Friday authorise the duty-free importation of 10 million bags of maize over the next six months, and for the first time it will include genetically modified maize.



The imports will be the first since President William Ruto&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3151WH&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">lifted a decade-long ban</a>&nbsp;last month on the cultivation and importation of genetically modified crops, which authorities hope will improve crop yields and food security as millions face hunger.



&#8220;In view of the food situation in the country, I shall be signing instruments to allow duty free imports of GMO (genetically modified) and non GMO Maize for the next 6 months,&#8221; secretary Moses Kuria said on Twitter.



Annual&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N3101MB&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">rains have failed</a>&nbsp;across Kenya, Ethiopia and Somalia for the last four seasons, forcing 1.5 million people out of their homes in search of water and food elsewhere.



(Reporting by Bhargav Acharya in Johannesburg and George Obulutsa in Nairobi; Editing by Tommy Reggiori Wilkes, William Maclean)

East Africa

Zambian president wants quick debt restructuring to aid recovery

Uganda to announce oil blocks licensing round in May

Kenya eyes lower local and foreign borrowing targets as it cuts deficit

Zambia received ‘debt-for-nature’ proposal from WWF for $13 bln restructuring

UK’s $1.15 bln funding for Mozambique LNG project lawful -court

Zambia extends electricity rationing to mining firms

Parts shortages impact Kenya Airways, cause flight disruptions

Ethiopia sets out on long road to peace after two years of war

Kenya will not default on its debt payments -President Ruto

IMF approves disbursement of $447.39 million to Kenya

Uganda says will not renew Eskom’s hydropower licences next year

Kenya’s economic growth to slow to 5% next year, World Bank says

Kenya seeks $750 mln loan from the World Bank, finance minister says

Malawi vice president arrested over corruption, says graft watchdog

IMF to disburse $59 mln to Mozambique after loan review

IMF approves $88.3 mln for Malawi under ‘food shock’ loan window

Kenya to import first genetically modified maize as drought ravages food supply

News Tips

Advertise With Us

East Africa

Zambian president wants quick debt restructuring to aid recovery

Uganda to announce oil blocks licensing round in May

Kenya eyes lower local and foreign borrowing targets as it cuts deficit

Zambia received ‘debt-for-nature’ proposal from WWF for $13 bln restructuring

UK’s $1.15 bln funding for Mozambique LNG project lawful -court

Zambia extends electricity rationing to mining firms

Parts shortages impact Kenya Airways, cause flight disruptions

Ethiopia sets out on long road to peace after two years of war

Kenya will not default on its debt payments -President Ruto

IMF approves disbursement of $447.39 million to Kenya

Uganda says will not renew Eskom’s hydropower licences next year

Kenya’s economic growth to slow to 5% next year, World Bank says

Kenya seeks $750 mln loan from the World Bank, finance minister says

Malawi vice president arrested over corruption, says graft watchdog

IMF to disburse $59 mln to Mozambique after loan review

IMF approves $88.3 mln for Malawi under ‘food shock’ loan window

Kenya to import first genetically modified maize as drought ravages food supply

News Tips

Advertise With Us

Newsletters