<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>



BLANTYRE, Nov 17 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund&#8217;s executive board has granted Malawi a waiver after it was suspected of misreporting its foreign exchange reserves, helping clear the way for new lending, the IMF&#8217;s resident representative for Malawi told Reuters.



&#8220;The IMF Executive Board met yesterday, Wednesday November 16, in Washington D.C. and reached a decision to grant the waiver requested by the Malawian Authorities in connection with the misreporting of the Net International Reserves,&#8221; IMF representative Farayi Gwenhamo said.



&#8220;The IMF executive directors granted the waiver on account of the corrective measures the authorities have taken so far and commit to going forward,&#8221; she added in written responses to questions. &#8220;This opens a pathway to a new extended credit facility once public debt sustainability is addressed.&#8221;



The IMF and Malawi last month reached&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N31M5KT&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">a staff-level agreement</a>&nbsp;on up to $88.3 million in emergency financing under a new IMF arrangement called the &#8220;Food Shock Window&#8221;.



Earlier this year Malawi also requested a&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2XT145&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">four-year extended credit facility</a>&nbsp;to help with balance of payments difficulties.



The donor-dependent southern African country has been experiencing snaking queues at fuel stations that are running dry due to a lack of foreign currency.



(Reporting by Frank Phiri; Editing by Alexander Winning and Toby Chopra)

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

IMF grants Malawi waiver in reserves misreporting case

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="484" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/PKRC2R524JIHRA2TLG24RW563M.jpg" alt="" class="wp-image-421365" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/PKRC2R524JIHRA2TLG24RW563M.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/PKRC2R524JIHRA2TLG24RW563M-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/PKRC2R524JIHRA2TLG24RW563M-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption>Ethio Telecom employees serve a customer inside their call centre in the Bole neighborhood branch in Addis Ababa, Ethiopia July 29, 2022. REUTERS/Tiksa Negeri</figcaption></figure>



NAIROBI, Nov 16 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia has reactivated the process of selling a 40% stake in state-owned Ethio Telecom and a separate plan to issue a second full telecoms licence, the finance ministry and telecoms regulator said on Wednesday.



The telecoms industry is seen as the big prize in Prime Minister Abiy Ahmed&#8217;s push to free up the economy, but efforts to lure investment have been hit by a nearly two-year war in northern Tigray that has killed thousands and uprooted millions.



The government is asking international companies to submit expressions of interest for the partial sale of Ethio Telecom, a finance ministry document showed.



Ethiopia&#8217;s Communication Authority (ECA) said it had also revived plans to issue a second full-service telecoms licence, for a third telecoms company.



&#8220;ECA now plans to resume the licensing process for a third license or the second new full-service nationwide telecommunications license,&#8221; it said in a statement.



The regulator was inviting potential bidders and any interested parties to participate in a consultation process, it added.



The regulator intended to launch a formal tender process for the licence by the middle or end of January 2023, its director general, Balcha Reba, told Reuters.



The moves by the finance ministry and the ECA come after Ethiopia&#8217;s federal government and regional forces in Tigray signed a ceasefire&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N31Y6H8&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">agreement on Nov. 2</a>&nbsp;to end the fighting.



In March, the government said&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VL0W2&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">it had postponed</a>&nbsp;the planned partial privatisation of Ethio Telecom because of the prevailing economic environment, both at home and abroad. The tender for the partial sale had been launched in June 2021.



The finance ministry document showed Deloitte Consulting Limited had been appointed as transaction adviser on the proposed partial privatisation of Ethio Telecom, giving companies until Dec. 20 to submit expressions of interest.



The telecoms regulator said it had set a Dec. 16 deadline for comments from interested parties and potential bidders.



&#8220;The comments and feedback from this consultation will guide the next steps of the licensing process,&#8221; it said.



The tender process for the second licence had been&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2T71N2&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">suspended in December 2021</a>&nbsp;after proposals were sought that September.



In May 2021, a consortium led by Kenya&#8217;s top operator, Safaricom&nbsp;SCOM.NR, won the first international licence with a bid of $850 million, which could serve as a guide price for the other licence.



Safaricom Ethiopia&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3171JI&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">started operations in October</a>.



(Reporting by George Obulutsa; Editing by Alexander Winning, Estelle Shirbon and Clarence Fernandez)

Ethio Telecom employees serve a customer inside their call centre in the Bole neighborhood branch in Addis Ababa

Ethiopia restarts sale of Ethio Telecom stake, new telecoms licence

<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/GettyImages-1242048781-820x547.jpg" alt="" class="wp-image-421317" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242048781-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242048781-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242048781-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242048781-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242048781-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242048781-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>eBills of 5, 10, 20, 50 euros. Illustration pictures of bills and coins in euro. Cours-la-Ville, July 21 2022. (Photo illustration by Adrien Fillon/NurPhoto via Getty Images)</figcaption></figure>



KAMPALA, Nov 13 (Reuters)&nbsp;&#8211;&nbsp;Uganda is looking to borrow 500 million euros ($517.6 million)for budget spending through various credit options excluding a Eurobond issue, a finance ministry document shows.



The proposed borrowing is likely to stoke fresh concern over Uganda&#8217;s ability to repay its rapidly expanding debt.



As a percentage of gross domestic product, public debt is now just short of 50%, Finance Ministry data shows, and the World Bank&nbsp;<a href="https://www.worldbank.org/en/news/press-release/2022/06/30/uganda-can-rein-in-debt-by-managing-its-public-investments-better" target="_blank" rel="noreferrer noopener">warned</a>&nbsp;in June that Uganda needed to rein in ballooning public debt.



The East African nation has&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3A120150710&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">previously</a>&nbsp;considered Eurobonds for government funding but ultimately decided it would be more prudent to source credit from low-interest bilateral lenders such as China.



In a letter sent to potential lenders last week and seen by Reuters on Sunday, Finance Minister Matia Kasaija said the government wants to borrow 500 million euros to fund the 2022/23 budget.



&#8220;Government is therefore seeking financing partners to structure medium-term and long-term financing, using all available financing options excluding the Eurobond,&#8221; Kasaija said in the letter.



The credit proposals should have minimum 10-year terms and must be submitted by Nov. 18, the minister said.



($1 = 0.9660 euros)



(Reporting by Elias Biryabarema; Editing by George Obulutsa)

Bills And Coins In Euro

Uganda says seeks to borrow 500 mln euros – finance ministry

<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>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, Nov 10 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s government is reducing its rate of borrowing, officials said on Thursday, to attain a significantly narrower budget deficit in the next financial year.



President William Ruto&#8217;s administration, which took over in mid-September, is in the process of&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3104J6&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">revising its budget</a>&nbsp;for this fiscal year to reduce expenditure by 300 billion shillings ($2.47 billion), aiming for a recurrent surplus in three years.



&#8220;We must cut our appetite for borrowing,&#8221; Ndindi Nyoro, the chair of parliament&#8217;s budget panel, told a meeting to discuss the budget for the 2023/24 (July-June) fiscal year.



Public debt surged under the administration of Ruto&#8217;s predecessor, Uhuru Kenyatta, which presided over an infrastructure construction drive.



The new government is planning to set a budget deficit of 4.3% of gross domestic product in the next financial year, the finance ministry said.



The revision of this financial year&#8217;s budget is expected to reduce the projected budget deficit to 5.8% of the GDP from the initial 6.2%, the ministry said.



&#8220;We intend to contain growth in non-priority expenditures to reduce the fiscal deficit,&#8221; Finance Minister Njuguna Ndung&#8217;u told the meeting on budget preparation.



The push to reduce borrowing is aimed at supporting debt sustainability and to boost lending to the private sector.



The East African nation&#8217;s fiscal consolidation plans received the IMF&#8217;s seal of approval on Tuesday after&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3241UJ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">a review</a>&nbsp;of economic performance under a 38-month lending programme.



Economic growth is expected to rise to 6% next year, from an estimated 5.3% this year, Ndung&#8217;u said. Like other economies around the world, Kenya is experiencing a surge in prices of basic commodities, which has been exacerbated by the worst drought in four decades.



The government will lower inflation back to its normal range of 2.5-7.5% after the current shocks are dealt with, Ndung&#8217;u said. Inflation is running above 9%.



It will also focus on investing in the agriculture sector to boost food production and looking to boost tax collection, officials said.



&#8220;We must start with a country that is feeding itself,&#8221; Nyoro, the chairman of the budget panel, said.



Ruto said last month that his government wants to increase annual revenue collection by a third in the next fiscal year, doubling that by 2027, through broadening of the tax base.



($1 = 121.7000 Kenyan shillings)



(Reporting by Duncan Miriri; Editing by Emelia Sithole-Matarise)

Kenyan Deputy President Ruto speaks in Nairobi

Kenya to cut appetite for borrowing, eyes narrower budget deficit

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="572" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/OOPHVOSCU5NKZEO4B6WE7HPVI4-820x572.jpg" alt="" class="wp-image-421169" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/OOPHVOSCU5NKZEO4B6WE7HPVI4-820x572.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/OOPHVOSCU5NKZEO4B6WE7HPVI4-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/OOPHVOSCU5NKZEO4B6WE7HPVI4-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/OOPHVOSCU5NKZEO4B6WE7HPVI4-768x536.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/OOPHVOSCU5NKZEO4B6WE7HPVI4.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Kenya Airways pilots attend a court session after the association&#8217;s management was summoned for contempt of a court order declaring as illegal the ongoing strike of Kenya Airways pilots, organised by KALPA, at the Milimani Law Courts, in Nairobi, Kenya, November 8, 2022. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, Nov 8 (Reuters)&nbsp;&#8211;&nbsp;Kenya Airways&nbsp;KQNA.NR&nbsp;plans to cancel its bargaining and recognition agreements with its pilots union, saying their current strike is unlawful and it amounts to economic sabotage.



Members of the Kenya Airline Pilots Association (KALPA) — a union that represents about 400 pilots at the carrier &#8211; went on&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N32102N&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">strike on Saturday</a>&nbsp;after failing to resolve a dispute over their pensions contributions and settlement of deferred pay.



The walkout led to the cancellation of dozens of flights and stranded thousands of passengers.



The carrier, which is one of the biggest in Africa, wants to withdraw from its collective bargaining agreement with the union, a letter by signed by its CEO Allan Kilavuka showed on Tuesday.



&#8220;We hereby give notice by KQ (Kenya Airways) of its immediate withdrawal from the existing recognition agreement and the collective bargaining agreement with KALPA,&#8221; the company said in the letter.



The union did not respond when Reuters sought comment, saying its leadership was in court.



On Monday, a judge of the employment and labour court ordered 11 union officials to appear before her on Tuesday to explain why they disobeyed the court&#8217;s orders, which restrained the pilots from starting the industrial action.



During a court session in the morning on Tuesday, the judge ordered the airline and the union to go back to the court by 2:30 p.m. (1130 GMT) with an agreement resolving the dispute.



The airline has warned the striking pilots they could be dismissed if they do not return to work immediately. It also started recruiting new pilots and to institute disciplinary action&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N3232PI&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">against those on strike</a>.



(Reporting by Duncan Miriri; writing by George Obulutsa; editing by Angus MacSwan)

OOPHVOSCU5NKZEO4B6WE7HPVI4

Kenya Airways to dump bargaining deals with pilots, letter shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="448" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/VZR7ERWAWBPMBAR7E4PB4GBYGY.jpg" alt="" class="wp-image-421144" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/VZR7ERWAWBPMBAR7E4PB4GBYGY.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/VZR7ERWAWBPMBAR7E4PB4GBYGY-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/VZR7ERWAWBPMBAR7E4PB4GBYGY-146x90.jpg 146w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption>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, Nov 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya Airways&nbsp;KQNA.NR&nbsp;is recruiting new pilots and has started disciplinary action against its pilots who are out on strike, its CEO said on Monday.



The airline had warned its striking pilots they could be dismissed if they do not return to work immediately as industrial action over pay that began&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N32102N&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">on Saturday</a>&nbsp;has led to the cancellation of dozens of flights and left thousands of passengers stranded.



As the strike entered a third day, CEO Allan Kilavuka said that as of Monday afternoon, 23 pilots had shown up for work and the airline had restored a fifth of its daily network operations.



The pilots are striking over a dispute on pensions contributions and settlement of deferred pay, and the airline, one of Africa&#8217;s biggest, has said the industrial action was costing it at least 300 million shillings ($2.5 million) a day.



Kilavuka said the airline would not hold talks until pilots returned to work.



&#8220;We have said before that we are ready to talk. Now time has changed. We want them to first go back to work with immediate effect before we can have any discussions whatsoever,&#8221; he said.



&#8220;In any case &#8230; we have already started disciplinary action and we have already started recruiting new pilots. So those who are still interested in working with Kenya Airways should very quickly report back to work with immediate effect.&#8221;



Murithi Nyagah, the general secretary of the Kenya Airline Pilots Association (KALPA), which represents about 400 pilots, said the striking pilots would go back to work when their demands were met.



Their union said in a statement that it had sent a revised proposal to Kenya Airways on Monday afternoon and was awaiting a response from the airline&#8217;s management.



&#8220;The plight of our colleagues and passengers is not lost on us &#8230; we remain committed to finding an amicable solution,&#8221; Nyagah said.



($1 = 121.5500 Kenyan shillings)



(Reporting by George Obulutsa and Duncan Miriri; Writing by Bhargav Acharya and James Macharia Chege; Editing by Susan Fenton)

VZR7ERWAWBPMBAR7E4PB4GBYGY

Kenya Airways CEO says airline recruiting pilots as strike bites

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/5878839880_ed8cef1c71_o-820x545.jpg" alt="" class="wp-image-413337" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/5878839880_ed8cef1c71_o-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/5878839880_ed8cef1c71_o-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/5878839880_ed8cef1c71_o-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/5878839880_ed8cef1c71_o-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/5878839880_ed8cef1c71_o.jpg 842w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Olusegun Obasanjo, Former Nigerian President and Board Member of Africa&#8217;s Progress Panel</figcaption></figure>



NAIROBI, Nov 7 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia&#8217;s government and Tigray forces have established a telephone hotline following a truce struck last week, the African Union&#8217;s chief mediator Olusegun Obasanjo said on Monday.



The Ethiopian government and regional forces from Tigray agreed on Wednesday to cease hostilities, a dramatic diplomatic breakthrough two years into a&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N31Y6H8&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">war</a>&nbsp;that has killed thousands, displaced millions and left hundreds of thousands facing famine.



Representatives of Ethiopia’s government and forces from Tigray are gathering in Kenya’s capital Nairobi to discuss how to begin implementing the ceasefire agreed last week. The talks are expected to last three or four days.



&#8220;The first sign for me of the progress after the signing of the agreement is the fact that between them they have exchanged a hotline,&#8221; Obasanjo told a news conference in Nairobi, where the two parties are holding further talks this week.



Former Kenyan president Uhuru Kenyatta, a co-mediator at the talks, said he hoped the parties would be able to work together to create a permanent resolution to the problem.



&#8220;We started in Pretoria, we are inching our way closer. We are now in Nairobi, we are very hopeful next time we will be in Mekelle for our (next) meeting and ultimately celebrate together in Addis Ababa,&#8221; Kenyatta said, referring to the capitals of South Africa, the Tigray region and Ethiopia respectively.



(Reporting by Hereward Holland; Editing by James Macharia Chege)

5878839880_ed8cef1c71_o

Ethiopia government and Tigray forces establish hotline following truce- Obasanjo

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/AUSW6HXCHFMV3AF2XXI6W5XBPA-820x462.jpg" alt="" class="wp-image-421094" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/AUSW6HXCHFMV3AF2XXI6W5XBPA-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/AUSW6HXCHFMV3AF2XXI6W5XBPA-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/AUSW6HXCHFMV3AF2XXI6W5XBPA-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/AUSW6HXCHFMV3AF2XXI6W5XBPA-768x433.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/AUSW6HXCHFMV3AF2XXI6W5XBPA-1536x866.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/AUSW6HXCHFMV3AF2XXI6W5XBPA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Coffee producers sift through dried beans at Mozambique&#8217;s Mount Gorongosa, in Sofala Province of central Mozambique, October 21, 2022. REUTERS/ Emidio Jozine</figcaption></figure>



MOUNT GORONGOSA, Mozambique, Nov 7 (Reuters)&nbsp;&#8211;&nbsp;Park warden Pedro Muagura sees hope for the future as he picks a ripe handful of cherry red coffee beans from a more resistant variety of coffee trees introduced to communities farming around Mozambique&#8217;s Gorongosa National Park.



The prospect of a more reliable harvest from the crop, which thrives in the shade of indigenous trees, has given people living around Gorongosa a longer-term incentive to protect a rainforest that has lost more than 100 hectares of tree cover per year over the past four decades.



Gorongosa is still recovering from a civil war that killed about 1 million people between 1977 and 1992.



The park, once considered one of Africa&#8217;s finest, became a conflict site and lost almost all of its wildlife.



Population growth and urbanisation in surrounding communities undermined restoration efforts as remaining animals were poached and forests cut down for firewood, agriculture and housing.



&#8220;We realised that if we keep talking as a park, keep talking that we need to do reforestation without having immediate tangible benefits &#8230; (progress) was very slow,&#8221; Muagura said.



Gorongosa Park&#8217;s sustainable development department has been studying coffee tree varieties from around the world that are resistant to pests, disease, drought and prolonged rainy seasons. It planted up the variety Muagura was looking at in 2020.



Weather patterns have grown increasingly erratic in Mozambique, where climate shocks including repeated cyclones have offset livelihoods in one of the world&#8217;s poorest countries.



&#8220;Sometimes (there is a) very long rainy season, sometimes very short,&#8221; Muagura said. &#8220;We want to try to have species which can cope.&#8221;



Last year, communities around Gorongosa planted more than 260,000 coffee trees and 20,000 indigenous trees.



The park now has 815,000 coffee trees planted over 243 hectares of land.



More than 800 small-scale farmers, 40% of who are women, pick the green coffee, dry the beans and sell them.



&#8220;I have gained a lot. I am able to send my children to school, and even though sometimes we experience drought with coffee we are always harvesting and having money,&#8221; said Fatiansa Pauline, who is now permanently employed by the coffee project.



(Reporting by Sisipho Skweyiya and Emidio Jozine; Writing by Sofia Christensen; Editing by Alison Williams)

Trees and tech help to reverse Gorongosa park’s nature losses

Climate-resistant coffee trees could save Mozambique rainforest

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="553" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1241890022-820x553.jpg" alt="" class="wp-image-421028" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1241890022-820x553.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1241890022-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1241890022-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1241890022-768x518.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1241890022-1536x1036.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1241890022-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>HONG KONG, CHINA &#8211; 2022/07/13: Pedestrians walk past the British multinational banking and financial services company Standard Chartered branch in Hong Kong. (Photo by Budrul Chukrut/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



KAMPALA, Nov 3 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s lawmakers have approved a request by the government to allow it to borrow $464 million from Standard Chartered Bank&nbsp;STAN.L&nbsp;and other international lenders to help finance infrastructure development, parliament said on Thursday.



&#8220;The House has approved a request to borrow to $464.13 million from Standard Chartered Bank and other finance institutions,&#8221; parliament said in a Tweet.



The money was a&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N31X4TI&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">syndicated loan</a>&nbsp;put together by Standard Chartered and two Middle East lenders, Abu Dhabi Fund for Economic Development and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIIE).



The borrowing is likely to stoke fresh worries about Uganda&#8217;s ability to repay its rapidly expanding debt. As a percentage of gross domestic product, its public debt is now just shy of 50%, according to finance ministry data.



The finance ministry has previously said it accepted the credit offer from Standard Chartered and its partners because it was better than bids from competitor lenders or borrowing from the local debt market.



Uganda&#8217;s total public debt ballooned to $21 billion at the end of December last year from about $18 billion in the previous period, according to finance ministry data.



(Reporting by Elias Biryabarema in Kampala; Editing by Hereward Holland and Matthew Lewis)

Pedestrians walk past the British multinational banking and

Ugandan lawmakers sign off on $464 million infrastructure loan

<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/GettyImages-1242149589-820x547.jpg" alt="" class="wp-image-420995" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>NAIROBI, KENYA &#8211; 2022/07/27: A Kenya Airways plane seen parked at the parking bay of the Jomo Kenyatta International Airport in Nairobi. (Photo by John Ochieng/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



NAIROBI, Nov 3 (Reuters)&nbsp;&#8211;&nbsp;Scheduled Kenya Airways flights were taking off as planned on Thursday morning, hours after the expiry of a strike notice by the pilots union, an airline source and the union told Reuters.



KALPA, a union that represents more than 400 pilots at the carrier&nbsp;KQNA.NR, issued a notice that was set to trigger a strike at midnight on Wednesday,&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N31Y5QM&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">drawing the wrath</a>&nbsp;of the airline&#8217;s management and board.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N31Y5QM&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The pilots did not immediately start the strike, said Muriithi Nyaga, the general secretary of the union.



&#8220;We are still negotiating,&#8221; he told Reuters, adding that they were set to talk with government officials. The Kenyan government owns close to half of the airline.



If the strike had gone ahead, it would affect thousands of passengers and cost the airline 300 million shillings ($2.47 million) a day, Kenya Airways said this week.



($1 = 121.3500 Kenyan shillings)



(Reporting by Duncan Miriri; Editing by George Obulutsa and Tomasz Janowski)

A Kenya Airways plane seen parked at the parking bay of the

Kenya Airways flights proceed as scheduled, pilots say in talks

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106905973-1625223614118-gettyimages-1232575215-OIL_DEMAND.jpeg" alt="" class="wp-image-409992" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106905973-1625223614118-gettyimages-1232575215-OIL_DEMAND.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106905973-1625223614118-gettyimages-1232575215-OIL_DEMAND-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106905973-1625223614118-gettyimages-1232575215-OIL_DEMAND-140x80.jpeg 140w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>Oil well pump jacks operated by Chevron Corp. in San Ardo, California, U.S., on Tuesday, April 27, 2021.
David Paul Morris | Bloomberg | Getty Images</figcaption></figure>



ABU DHABI/KAMPALA, Nov 2 (Reuters)&nbsp;&#8211;&nbsp;Uganda aims to start commercially pumping its oil reserves in April 2025, with China being considered as a potential source of funds to develop an export pipeline, Uganda&#8217;s energy minister said on Tuesday.



Although Ugandan officials have previously mentioned 2025 as the year for commencement of production, it is the first time they are being specific on the month.



&#8220;I hope that by April 2025 we shall see the first oil,&#8221; Ruth Nankabirwa Ssentamu said at a conference in Abu Dhabi.



Uganda and Tanzania are also confident they will secure funding for a planned crude export pipeline, she said, adding Tanzania president, Samia Suluhu Hassan was expected to travel to China soon &#8220;in search for, you know, the completion of the mobilisation of resources. And I know that we will get money.&#8221;



&#8220;China is always ready,&#8221; she said when asked if the money would come from China. &#8220;China is always ready and I want to encourage Europe, I want to encourage America to (also)&#8230; invest in Uganda.&#8221;



In February TotalEnergies&nbsp;TTEF.PA&nbsp;and its partner China National Offshore Oil Corporation&nbsp;0883.HK&nbsp;reached a final&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2UC0I5&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">investment decision</a>&nbsp;to develop Uganda&#8217;s oil fields in the country&#8217;s west.



Uganda&#8217;s President Yoweri Museveni has criticised the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30Y2TF&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">European Union parliament</a>&nbsp;after it passed a resolution urging TotalEnergies to delay development of the pipeline by a year to explore an alternative route or alternative renewable energy projects.



(Reporting by Alex Lawler; Writing by Elias Biryabarema Editing by Hereward Holland and James Macharia Chege)

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Uganda says first oil in April 2025, eyes China for pipeline funding

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="576" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/A52ZVG2EGRIMLHKQMSGX33WHYI-820x576.jpg" alt="" class="wp-image-420970" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/A52ZVG2EGRIMLHKQMSGX33WHYI-820x576.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/A52ZVG2EGRIMLHKQMSGX33WHYI-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/A52ZVG2EGRIMLHKQMSGX33WHYI-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/A52ZVG2EGRIMLHKQMSGX33WHYI-768x539.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/A52ZVG2EGRIMLHKQMSGX33WHYI.jpg 1080w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Photo: via Reuters</figcaption></figure>



NAIROBI, Nov 2 (Reuters)&nbsp;&#8211;&nbsp;A power outage has hit parts of the Kenyan capital Nairobi,&nbsp;central and&nbsp;coast regions due to a system disturbance,&nbsp;the country&#8217;s sole electricity distributor&nbsp;Kenya Power&nbsp;KPLC.NR&nbsp;said on Wednesday.



The company, which buys the bulk of its power from Kenya Electricity Generating Company&nbsp;KEGN.NR, did not give more details on what led to the outage but said it was working to restore electricity to the affected areas.



&#8220;We are working &#8230; to restore the power supply as soon as possible,&#8221; it said in a statement, adding the disruption started at&nbsp;1109 local time (0809 GMT).



In January, Kenya experienced a nationwide blackout after a high voltage transmission line connecting&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2TR0L5&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">the capital broke</a>.



Later that month, three senior managers Kenya Power were charged with sabotage and&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2U41GY&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">negligence over the outage</a>.



(Reporting by George Obulutsa; Editing by James Macharia Chege)

A52ZVG2EGRIMLHKQMSGX33WHYI

Power outage hits parts of Kenyan capital, two other regions

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1244135566-820x547.jpg" alt="" class="wp-image-420782" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1244135566-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1244135566-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1244135566-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1244135566-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1244135566-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1244135566-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>TOPSHOT &#8211; A man waves an Ethiopian flag as he join others gathering in Addis Ababa, Ethiopia, on October 22, 2022 during a demonstration in support of Ethiopia armed forces. &#8211; Tigray&#8217;s rebel authorities said Friday they would attend talks next week aimed at ending war in Ethiopia, as Prime Minister Abiy Ahmed vowed fighting &#8220;will end and peace will prevail&#8221;. The government has also said it would participate in negotiations in South Africa on Monday being organised by the African Union, as diplomatic pressure mounts for a settlement to almost two years of bloodshed. (Photo by Amanuel Sileshi / AFP) (Photo by AMANUEL SILESHI/AFP via Getty Images)</figcaption></figure>



JOHANNESBURG, Oct 25 (Reuters)&nbsp;&#8211;&nbsp;The first formal peace talks aimed at ending two years of war between the Ethiopian army and forces from the country&#8217;s northern region of Tigray started in South Africa on Tuesday and will end on Sunday, the South African government said.



At stake is an opportunity to end a conflict that has killed thousands, displaced millions and left hundreds of thousands on the brink of famine in Africa&#8217;s second most populous nation, destabilising the wider Horn of Africa region.



The talks, mediated by the African Union, begin as the government has been making significant gains on the battlefield, capturing several large towns in Tigray over the past week.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N31J0JP&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The government offensive, conducted jointly with allied troops from neighbouring Eritrea, has raised fears of further harm to civilians, leading African, U.S. and European leaders and even Pope Francis to call for a ceasefire and urgent talks.



South Africa &#8220;hopes the talks will proceed constructively and result in a successful outcome that leads to lasting peace for all the people of our dear sister country Ethiopia,&#8221; said Vincent Magwenya, spokesman for South African President Cyril Ramaphosa.



The African Union mediation team is led by former Nigerian president Olusegun Obasanjo, supported by former Kenyan president Uhuru Kenyatta and former deputy president of South Africa Phumzile Mlambo-Ngcuka.



The conflict stems from grievances dating back to a period during which the Tigray People&#8217;s Liberation Front (TPLF), a rebel movement-turned-political party, dominated Ethiopia&#8217;s ruling coalition.



Since that coalition lost power at the national level in 2018, the TPLF, still powerful in its northern stronghold, fell out with the federal government led by Prime Minister Abiy Ahmed.



The government has accused the TPLF of seeking to restore its national dominance, which it denies, while the TPLF has accused the Abiy government of oppressing Tigrayans and over-centralising power, which it denies.



The Tigrayan delegation has said its focus at the talks in South Africa would be on an immediate cessation of hostilities, unfettered access to Tigray for humanitarian aid, and the withdrawal of Eritrean forces.



The government has said it views the talks as an opportunity to resolve the conflict and &#8220;consolidate the improvement of the situation on the ground&#8221;, apparently a reference to its military advances in Tigray.



The war has compounded other serious problems in Ethiopia including a drought, the worst in four decades, that has caused a food crisis and damaged the economy.



(Reporting by Anait Miridzhanian and Bhargav Acharya; Writing by Estelle Shirbon; Editing by Bernadette Baum)

TOPSHOT-ETHIOPIA-UNREST-DEMO

Ethiopia peace talks start in South Africa

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/UG2CJXXF5ZMAJAPHQ5UYZO7IRY.jpg" alt="" class="wp-image-420746" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/UG2CJXXF5ZMAJAPHQ5UYZO7IRY.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/UG2CJXXF5ZMAJAPHQ5UYZO7IRY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/UG2CJXXF5ZMAJAPHQ5UYZO7IRY-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption>Addis Ababa police officers holding the Ethiopian national flags, in Addis Ababa, Ethiopia, June 19, 2021. REUTERS/Baz Ratner</figcaption></figure>



NAIROBI, Oct 24 (Reuters)&nbsp;&#8211;&nbsp;An Ethiopian government delegation and rival Tigray forces were due to meet in South Africa for the first formal peace talks since war broke out two years ago.



The talks will take place as Ethiopian forces and their allies make significant battlefield gains in the northern Tigray region, where they have captured&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N31J1ML&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">several large towns</a>&nbsp;in the past week.



The war is rooted in a power struggle between the federal government and Tigray authorities, who led the country&#8217;s ruling coalition until Abiy Ahmed became prime minister in 2018.



The conflict has killed thousands, displaced millions and left hundreds of thousands on the brink of famine.



Ethiopia&#8217;s government said in a statement its delegation had left for South Africa to participate in the talks, which are being mediated by the African Union.



&#8220;The Government of Ethiopia views the talks as an opportunity to peacefully resolve the conflict and consolidate the improvement of the situation on the ground,&#8221; it said.



Kindeya Gebrehiwot, a spokesman for the Tigray forces, said the Tigrayan delegation had already arrived.



He said on Twitter the focus of the talks would be on immediate cessation of hostilities, unfettered humanitarian access, and the withdrawal of Eritrean forces, who have fought alongside Ethiopian federal troops during the conflict.



The Tigray delegation is being led by one of its top generals, Tsadkan Gebretensae, and spokesman Getachew Reda, an official familiar with the talks told Reuters.



The delegation arrived on Sunday on a U.S. military aircraft, accompanied by the U.S. special envoy to the Horn of Africa, the official said.



Both sides had committed to the talks in South Africa earlier this month, but they were delayed for&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AN6N2X401A&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">logistical reasons</a>.



(Reporting by Nairobi Newsroom; Editing by Alexander Winning)

UG2CJXXF5ZMAJAPHQ5UYZO7IRY

Ethiopia government, Tigray forces to meet for first peace talks since conflict began

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3206470630_fa29d3d824_b-820x545.jpg" alt="" class="wp-image-420695" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3206470630_fa29d3d824_b-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3206470630_fa29d3d824_b-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3206470630_fa29d3d824_b-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3206470630_fa29d3d824_b-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3206470630_fa29d3d824_b.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Photo: via Flickr</figcaption></figure>



CAPE TOWN, Oct 21 (Reuters)&nbsp;&#8211;&nbsp;Mozambique expects to ship its first liquefied natural gas (LNG) exports to Europe from the Eni-operated Coral Sul floating plant later this month or early November, petroleum regulator INP said on Friday in a supply boost for the energy-starved region.



BP&#8217;s&nbsp;BP.L&nbsp;LNG tanker, British Sponsor, has already arrived offshore northern Mozambique, said Welligence Energy Analytics in a note, with all of Coral Sul&#8217;s annual gas output of 3.4 million tonnes contracted to BP for 20 years on a free-on-board basis.



&#8220;Regarding the LNG export, it will be for European markets since BP is committed to take the gas resources to Europe,&#8221; said the National Petroleum Institute (INP) in an emailed response to Reuters.



The new LNG cargoes will help alleviate a tight global LNG market and gas shortages in Europe as winter looms following Moscow&#8217;s February invasion of Ukraine and Russia&#8217;s later decision to curb gas pipeline supplies into major European Union economies.



As part of its exploration activity offshore Mozambique, Eni discovered Coral South gas field in 2012 and took its final investment decision in 2017, pledging to start producing gas using a floating LNG plant after five years.



Thanks to a fast-track strategy led by CEO Claudio Descalzi, Eni has been able to stick to its original schedule despite the pandemic and supply chain issues.



The exports from Mozambique, which neighbours South Africa, will help transform its economy as billions of dollars pour into the country to develop massive offshore gas fields in its deepwater Rovuma basin.



But a sustained violent insurgency inland with links to Islamic State has scared off investors, as French oil major TotalEnergies last year declared force majeure on its $20 billion LNG project amid rising attacks in the north of Cabo Delgado province.



The five-year old conflict has claimed more than 4,000 lives and displaced around one million people said the World Bank, which expects economic growth to accelerate in the medium term, averaging 5.7% between 2022 and 2024, as LNG production starts.



In January, TotalEnergies CEO Patrick Pouyanne said on a visit to Mozambique that he hoped to restart its Afungi project this year, although INP said the company&#8217;s return would likely be next year, depending on security assessments.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2UB5G5&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;We are satisfied with the improvement of stability in Cabo Delgado Province &#8230; We are expecting Total to return by next year,&#8221; INP said on Friday.



The regulator said ExxonMobil, which had indicated it would only resume a final investment decision on its own LNG project in Area 4 of the Rovuma basin once Total had lifted its force majeure, was also seen returning to its project early in 2023.



&#8220;This also means that we won&#8217;t have stranded resources in Rovuma Basin at the same time that we know that natural gas is playing an important role as an energy for transition,&#8221; it said.



INP will launch a new oil and gas licensing round next year with details still to be worked out. The winners of the current 6th bidding auction is on track to be announced on Dec. 30, it added.



(Reporting by Wendell Roelf; additional reporting by Francesca Landini in Milan; Editing by Mark Potter)

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Mozambique’s first LNG exports to Europe seen by early November

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/oil.jpeg" alt="" class="wp-image-413529" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/oil.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/oil-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/oil-160x90.jpeg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /></figure>



CAPE TOWN, Oct 20 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s national oil company (UNOC) expects to secure the funding for a $5 billion crude pipeline that the European Union is opposed to, by early next year, UNOC&#8217;s chief executive told Reuters on Thursday.



In February, TotalEnergies&nbsp;TTEF.PA&nbsp;and its partner China National Offshore Oil Corporation&nbsp;0883.HK&nbsp;signed a final investment decision with Uganda and Tanzania to kick-start investments worth more than $10 billion to&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N31B292&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">produce and export</a>&nbsp;Uganda&#8217;s crude.



Part of that investment will involve&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30Y2TF&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">a $5 billion pipeline</a>, criticized by the EU which has passed a parliamentary resolution seeking to delay the project, that will help ship landlocked Uganda&#8217;s crude to world markets via a port on Tanzania&#8217;s Indian Ocean coast.



The EU resolution warns that the pipeline and associated infrastructure would displace about 100,000 people, jeopardise water resources and endanger protected marine areas in Tanzania.



&#8220;We haven&#8217;t yet attained financial close for EACOP but anticipate this will be attained by Q1 2023. The cost of the project is about $5 billion,&#8221; Proscovia Nabbanja, chief executive of UNOC said on the sidelines of an African energy conference in Cape Town.



She said the project is financed at a debt-to-equity ratio of 60/40 and UNOC&#8217;s share of the funding stood at around $308 million, which the ministry of finance has committed to pay.



Nabbanja said due diligence has been conducted and there was a lot of appetite from lenders to invest in the project. She did not divulge who the potential lenders might be.



&#8220;All the interventions have been put in place to make sure we curb emissions, the IFC standards and Equator Principles have been adapted and the due diligence that was done by the lenders, the appetite still does exist to secure the $3 billion debt component&#8221;, she said.



(Reporting by Wendell Roelf; Editing by Elaine Hardcastle)

Uganda expects to secure $5 bln oil pipeline funding early 2023

<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>



NAIROBI, Oct 18 (Reuters)&nbsp;&#8211;&nbsp;Kenya plans to use cheaper loans from agencies such as the World Bank to allow it to retire expensive domestic loans and create funds for much-needed spending on items like food, the nominee to the post of finance minister said on Tuesday.



President William Ruto, who was sworn into office last month, is facing serious economic challenges like drought and a surge in prices of basic commodities, at a time when the East African nation is spending a huge share of government revenue on servicing debt.



&#8220;We may need concessionary borrowing which will help us to retire some of the very expensive domestic debt,&#8221; Njuguna Ndung&#8217;u, who is Ruto&#8217;s nominee to the post of finance minister, told a parliamentary panel vetting his appointment for approval.



Concessionary debt is normally provided by lenders like the World Bank and the African Development Bank. Ndung&#8217;u, who served as the central banker between 2007-2015, did not give details of the amounts they will borrow on concessionary terms.



Total public debt stands at almost 70% of gross domestic product, after years of a debt-fuelled infrastructure expansion drive.



Once the government cuts the high cost of servicing domestic debt, it will secure room to provide food to the poor, and start to &#8220;signal&#8221; fiscal consolidation, he said.



If his nomination is approved, Ndung&#8217;u will be sworn into office in the next two weeks. Parliament is controlled by Ruto&#8217;s coalition so it is likely to approve his appointment, along with 21 other cabinet nominees who are also being grilled this week.



Ndung&#8217;u said the economic situation was &#8220;terrifying&#8221; but added that the government has no choice but to press ahead with other plans, including development of the local financial market, even as it deals with the debt and high costs of living crisis.



The government plans to sell shares of 5-10 mature public companies on the Nairobi bourse in the next 12 months, Ruto said last week.



(Reporting by Duncan Miriri; Editing by Alexandra Hudson)

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