<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/F3NO4VQL3NKS7HZC62IQ66OCFY-820x547.jpg" alt="" class="wp-image-420571" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/F3NO4VQL3NKS7HZC62IQ66OCFY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/F3NO4VQL3NKS7HZC62IQ66OCFY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/F3NO4VQL3NKS7HZC62IQ66OCFY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/F3NO4VQL3NKS7HZC62IQ66OCFY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/F3NO4VQL3NKS7HZC62IQ66OCFY.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A security guard wearing a protective mask stands outside the headquarters of the International Monetary Fund during the group&#8217;s Annual Meetings in Washington, U.S., October 12, 2022. REUTERS/James Lawler Duggan</figcaption></figure>



WASHINGTON, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;International Monetary Fund staff on Monday reached a staff-level agreement with Somalia that will allow the release of about $10 million to the East African country, once approved by the board, the head of the IMF mission told Reuters.



IMF mission chief Laura Jaramillo said the deal came after an in-person review of Somalia&#8217;s Extended Credit Facility in Nairobi, Kenya. She praised authorities for sticking to economic reforms despite a prolonged drought, the impact of Russia&#8217;s war in Ukraine and continued security concerns.



The IMF&#8217;s board is expected to review the staff-level agreement in early December, Jaramillo said.



If Somalia continues to make steady progress on reforms, it could reach the completion point of the Heavily Indebted Poor Countries (HIPC) global debt forgiveness process by late 2023, which would allow Somalia to pare its debt to around $550 million from $5.2 billion, Jaramillo said.



&#8220;That would be a tremendous milestone,&#8221; she said, noting it would reduce Somalia&#8217;s debt to around 7% of gross domestic product from around 90% now.



It would also open up new sources of financing for Somalia, a big help as the country works to implement development programs and promote growth and employment. One pillar of the country&#8217;s economic reforms would be to improve domestic revenue, including through enhancing collection of sales taxes.



The IMF said Somalia still needed continued and immediate support from international partners given the current severe food crisis, but also needed to work on building longer-term resilience to climate shocks.



Somalia&#8217;s outlook remained clouded, with GDP growth for 2022 projected at 1.9%, down from 2.9% in 2021, and inflation projected to reach 9% from 4.6% in 2021, the IMF said.



Near-term risks were elevated, including a worsening of the food crisis that already has 4.3 million people facing acute food insecurity, if healthy rains do not resume in 2022 or if commodity prices rise further, it said.



(Reporting by Andrea Shalal in Washington; Editing by Matthew Lewis)

F3NO4VQL3NKS7HZC62IQ66OCFY

IMF reaches staff agreement with Somalia, eyes debt forgiveness in late 2023

<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>



ACCRA, Oct 11 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s finance ministry has formed a five-member committee with the Bank of Ghana to lead discussions with the financial services industry concerning an International Monetary Fund (IMF) programme, it said in a statement on Tuesday.



The goal of the committee is to &#8220;ensure orderliness and confidence in the government&#8217;s ongoing negotiations with the IMF,&#8221; the statement said.



A similar engagement will be undertaken with external bondholders, it added.



An IMF team visited Ghana last week for talks about a potential loan programme after the West African country requested support. It said discussions were constructive but that more work was needed on a debt-sustainability analysis.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3184P0&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Christian Akorlie; Writing by Nellie Peyton; Editing by Estelle Shirbon)

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

Ghana finance ministry, central bank form committee for talks on IMF programme

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3K3NVNLH6RKVLH3MJ6MSQ7DGRI-820x547.jpg" alt="" class="wp-image-420429" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3K3NVNLH6RKVLH3MJ6MSQ7DGRI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3K3NVNLH6RKVLH3MJ6MSQ7DGRI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3K3NVNLH6RKVLH3MJ6MSQ7DGRI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3K3NVNLH6RKVLH3MJ6MSQ7DGRI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3K3NVNLH6RKVLH3MJ6MSQ7DGRI.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>The International Monetary Fund Managing Director, Kristalina Georgieva, speaks at a conference in Riyadh, Saudi Arabia, October 3, 2022. REUTERS/Ahmed Yosri</figcaption></figure>



WASHINGTON, Oct 10 (Reuters)&nbsp;&#8211;&nbsp;International Monetary Fund Managing Director Kristalina Georgieva on Monday said she hoped debt restructuring efforts for Zambia and Chad could be completed by the end of the year, which would pave the way for more countries to seek help.



Georgieva,&nbsp;speaking with&nbsp;civil society groups&nbsp;at the start of the annual IMF and World Bank meetings, said&nbsp;a Group of 20&nbsp;initiative launched in late 2020 had been&nbsp;slow to become operational, but she was upbeat about the cases of Chad and Zambia, who together with Ethiopia were the first to request help.



Georgieva said the IMF was pressing for more predictability and timely resolution of requests for help under the G20 Common Framework. It was also critical to expand the framework to include middle-income countries, she said.



The IMF was also working on how to include collective action clauses in debt contracts being signed today that would allow immediate suspension of debt service payments if a country experienced a climate shock, she said.



IMF and World Bank officials have repeatedly singled out China, the biggest creditor to many African countries, and private sector creditors for dragging their feet on reducing countries&#8217; debt burdens.



The&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3183N3&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Zambian government</a>&nbsp;on Friday told investors it hoped it would agree debt relief terms with official creditors by the end of the year or early 2023.



Zambia was the first African country to default during the COVID-19 era as it struggled with debt that reached 133% of GDP at the end of 2021. The IMF estimates that Zambia needs $8.4 billion of &#8220;cash debt relief&#8221; &#8211; cutting both interest payments and loan repayments &#8211; from 2022 to 2025.



The fund in late August approved a $1.3 billion, three-year loan to Zambia, a crucial step in the southern African country&#8217;s quest to restructure its debts.



<a href="https://www.reutersconnect.com/all?search=all%3AL1N31B0LR&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Chad&#8217;s creditors</a>&nbsp;are close to reaching a debt relief agreement, a French Finance Ministry source said on Monday.



(Reporting by Andrea Shalal; Editing by Andrea Ricci)

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IMF chief Georgieva aims to complete Zambia, Chad debt restructuring by year-end

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="501" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/CUS4P52NF5KXTNK7JQTWJ64Z3Q.jpg" alt="" class="wp-image-420382" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/CUS4P52NF5KXTNK7JQTWJ64Z3Q.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/CUS4P52NF5KXTNK7JQTWJ64Z3Q-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/CUS4P52NF5KXTNK7JQTWJ64Z3Q-131x90.jpg 131w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption>Safaricom Ethiopia employees walk past a billboard during the Safaricom ceremony to officially launch its operations in Ethiopia, in Addis Ababa, Ethiopia, October 6, 2022. REUTERS/Tiksa Negeri</figcaption></figure>



NAIROBI, Oct 7 (Reuters)&nbsp;&#8211;&nbsp;Shares of Kenyan telecoms operator Safaricom&nbsp;SCOM.NR&nbsp;surged more than 9% on Friday after it secured a mobile financial services licence in Ethiopia, market participants said.



Ethiopia&#8217;s Finance Minister Ahmed Shide said on Thursday his country had given Safaricom the licence in one of Africa&#8217;s largest telecoms markets as the company formally switched on the first privately-operated network in the country.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3171JI&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;It (licence) will bring the break-even period forward by approximately two years,&#8221; said Lisa Kimathi, an investment analyst at Standard Investment Bank.



It would have taken Safaricom, whose partners include South Africa&#8217;s Vodacom&nbsp;VODJ.J&nbsp;and Britain&#8217;s Vodafone&nbsp;VOD.L, five years to break even without a mobile money licence, but now it could take three years, Kimathi said.



Safaricom&#8217;s main competitor, the state-run Ethio Telecom, launched a mobile phone-based financial service called Telebirr last year, to boost growth by offering cashless transactions.



Telebirr is now used by millions of subscribers but Kimathi said Safaricom&#8217;s M-Pesa financial services platform could seize the lead.



M-Pesa was among the world&#8217;s first mobile transfer services in 2007. It has since evolved to a fully fledged financial service offering payments services, savings and credit in several African nations.



Safaricom executives said they also see huge opportunities in Ethiopia to provide internet access.



Ethiopia&#8217;s telecoms industry is considered the big prize in Prime Minister Abiy Ahmed&#8217;s push to liberalise the economy after he took over in 2018, thanks to a large population of 110 million.



Abiy&#8217;s efforts to attract investment have, however, been damaged by a war in the northern region of Tigray, which has killed thousands and displaced millions.



(Reporting by Duncan Miriri; editing by Jason Neely, James Macharia Chege and Louise Heavens)

Safaricom Ethiopia employees walk past a billboard during the Safaricom ceremony to officially launch its operations in Ethiopia, in Addis Ababa

Safaricom surges after securing Ethiopia mobile financial services 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/2022/10/GettyImages-1243716259-820x547.jpg" alt="" class="wp-image-420329" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1243716259-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1243716259-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1243716259-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1243716259-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1243716259-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1243716259-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>People gather during a protest at the Headquarters of African Union in Addis Ababa, Ethiopia, on October 04, 2022. &#8211; Tigrayan residents in Addis Ababa attended a rally organized by the office of the mayor of Addis Ababa to protest against the renewal of the hostilities. Fighting erupted between government forces and Tigrayan rebels in northern Ethiopia, shattering a five-month truce and dealing a blow to peace efforts. (Photo by Amanuel Sileshi / AFP) (Photo by AMANUEL SILESHI/AFP via Getty Images)</figcaption></figure>



NAIROBI, Oct 5 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia&#8217;s government has accepted an invitation by the African Union to participate in peace talks aimed at ending a two-year conflict with rival Tigray forces, the prime minister&#8217;s national security adviser said on Wednesday.



Tigray forces have has yet to respond to the invitation for talks this weekend in South Africa, which would be the first formal negotiations between the two sides since the outbreak of war in November 2020, two diplomatic sources said.



The conflict&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3090ZV&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">has killed thousands</a>&nbsp;of civilians and uprooted millions. Both sides had previously said&nbsp;they&nbsp;were&nbsp;prepared to participate in AU-mediated talks&nbsp;but intense fighting has continued to rage across Tigray.



The Ethiopian government &#8220;has accepted this invitation which is in line with our principled position regarding the peaceful resolution of the conflict and the need to have talks without preconditions,&#8221; Redwan Hussein, the national security adviser to Prime Minister Abiy Ahmed, said on Twitter.



AU Commission Chair Moussa Faki also invited Debretsion Gebremichael, who leads Tigray&#8217;s ruling political party, to the talks in a letter seen by Reuters.



The letter was dated Oct. 1, but Getachew Reda, a spokesman for Debretsion&#8217;s Tigray People&#8217;s Liberation Front (TPLF), said on Tuesday that he was not aware of any imminent talks.



Getachew did not immediately respond to a request for comment on Wednesday about the Ethiopian government accepting the AU invitation.



The TPLF&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30I0DY&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">said last month</a>it was&nbsp;ready for a ceasefire and would accept an AU-led peace process after previously raising objections to AU proposals.



Olusegun Obasanjo, the AU High Representative for the Horn of Africa, will lead the negotiations with support from former Kenyan President Uhuru Kenyatta and former South African deputy president Phumzile Mlambo-Ngcuka, according to the AU letter.



No formal talks between the two sides were held during a five-month ceasefire between March and August. Fighting resumed on Aug. 24.



Prime Minister Abiy&#8217;s government accuses the TPLF, which dominated Ethiopia&#8217;s ruling coalition until Abiy came to power in 2018, of trying to reassert Tigrayan dominance over Ethiopia.



The TPLF accuses Abiy of over-centralising power and oppressing Tigrayans. Both dismiss each other&#8217;s accusations.



(Reporting by Giulia Paravicini; Editing by Clarence Fernandez, John Stonestreet and Toby Chopra)

ETHIOPIA-TIGRAY-UNREST

Ethiopia accepts African Union invitation to peace talks

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU.jpg" alt="" class="wp-image-420130" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption>The International Monetary Fund logo is seen at IMF headquarters in Washington, U.S., October 14, 2017. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



ACCRA, Sept 28 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s negotiations with the International Monetary Fund over a rescue package will be fast-tracked, the country&#8217;s Finance Minister Ken Ofori-Atta said on Wednesday.



Ghana began talks with the Fund on Monday&nbsp;for an IMF-supported lending programme in a bid to reduce economic hardship that spurred street protests.



&#8220;Negotiations will be fast-tracked to ensure the key aspects of the programme are reflected in the 2023 annual budget statement in November 2022,&#8221; Ofori-Atta said at a news briefing.



The IMF staff team is discussing policies and reforms with officials in Ghana after the West African country requested a loan from the Fund in July.



The IMF mission is scheduled to last until Oct. 7 and will include a full assessment of the sustainability of Ghana&#8217;s debt burden. If that debt is deemed unsustainable, the Fund will be unable to provide support without some sort of restructuring.



Reports that the government may be considering a plan to restructure it&#8217;s local currency debt gained steam last week, prompting credit ratings agency Fitch to downgrade Ghana to &#8220;CC&#8221; from &#8220;CCC&#8221;.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AFWN30U1AR&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



A Fitch senior director said domestic debt restructuring would be &#8220;highly unusual&#8221;, and warned it could spell disaster for local financial institutions. A brief from Oxford Economics on Monday said it would risk sending Ghana into a recession.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30S47A&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Ofori-Atta said on Wednesday that government had not come to any agreement with the Fund on the parameters of debt operations, but that a committee would be formed in the coming days to engage financial sector stakeholders on how to proceed.



&#8220;We welcome all contributions to this great public debate, but we must be careful to build and not to tear down our nation,&#8221; he said.



(Reporting by Bate Felix and Sofia Christensen; Writing by Sofia Christensen and Cooper Inveen; Editing by Estelle Shirbon and Jon Boyle)

FILE PHOTO: The International Monetary Fund logo is seen at IMF headquarters in Washington

Ghana negotiations with IMF to be fast-tracked : finance minister

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/2770193028_68edc662a9_b-820x549.jpg" alt="" class="wp-image-403037" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/2770193028_68edc662a9_b-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/2770193028_68edc662a9_b-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/2770193028_68edc662a9_b-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/2770193028_68edc662a9_b.jpg 1023w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Photo: via Flickr</figcaption></figure>



KAMPALA, Sept 27 (Reuters)&nbsp;&#8211;&nbsp;Uganda will hold its third oil block licensing round next year, its energy minister said on Tuesday, as it seeks to develop its petroleum sector in a bid to expand its economy.



Uganda discovered crude oil reserves in the Albertine rift basin near the border with Democratic Republic of Congo in 2006 and has previously held two licensing rounds but a large portion of the basin remains unexplored.



Government geologists estimate the country&#8217;s confirmed reserves at 6.5 billion barrels of oil, of which 2.2 billion is recoverable.



&#8220;As part of the strategies to exploit the oil and gas resources in a sustainable manner the country is announcing the third licensing round in 2023,&#8221; Minister of Energy and Mineral Development Ruth Nankabirwa Ssentamu told an oil and gas conference in the capital Kampala.



In February TotalEnergies&nbsp;TTEF.PA&nbsp;and its partner China National Offshore Oil Corporation&nbsp;0883.HK&nbsp;signed a final investment decision (FID) with Uganda and Tanzania to kick-start investments worth more than $10 billion to produce and export Uganda&#8217;s crude.



Part of that investment will involve a $3.5 billion pipeline that will help ship landlocked Uganda&#8217;s crude to the world markets via a port on Tanzania&#8217;s Indian Ocean coast.



At the same conference, Uganda&#8217;s President Yoweri Museveni criticised the European Union parliament after it&nbsp;<a href="https://www.europarl.europa.eu/doceo/document/TA-9-2022-0321_EN.html" target="_blank" rel="noreferrer noopener">passed a resolution</a>&nbsp;this month urging TotalEnergies to delay development of the pipeline by a year to explore an alternative route or alternative renewable energy projects.



Museveni said the European Parliament&#8217;s move was &#8220;a wrong battleground for them. We don&#8217;t take kindly to arrogance.&#8221;



&#8220;So the plan will be implemented according to the schedule.&#8221;



&#8220;You&#8217;re lecturing me what to do in Uganda?,&#8221; he said. &#8220;Some of these people are insufferable.&#8221;



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.



Museveni had&nbsp;<a href="https://twitter.com/KagutaMuseveni/status/1570827102999687174" target="_blank" rel="noreferrer noopener">previously warned</a>&nbsp;TotalEnergies, that if it heeded the EU resolution, Uganda would find another partner to develop the project.



The EU did not immediately respond to a request for comment.



TotalEnergies said in a statement the company would ensure the project achieves &#8220;sustainable development including the environment and respect for human rights.&#8221;



(Reporting by Elias Biryabarema; Writing by George Obulutsa; Editing by James Macharia Chege and David Evans)

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Uganda announces oil block licensing round, criticises EU over pipeline

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="489" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/27KAMOMRO5JWJP4KFLXAY5LKSI.jpg" alt="" class="wp-image-420101" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/27KAMOMRO5JWJP4KFLXAY5LKSI.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/27KAMOMRO5JWJP4KFLXAY5LKSI-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/27KAMOMRO5JWJP4KFLXAY5LKSI-134x90.jpg 134w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption>Kenya&#8217;s former Central Bank Governor Njuguna Ndung&#8217;u speaks to Reuters during an interview at his office in Nairobi. File REUTERS/ Antony Njuguna</figcaption></figure>



NAIROBI, Sept 27 (Reuters)&nbsp;&#8211;&nbsp;Kenyan&nbsp;President William Ruto&nbsp;on Tuesday appointed&nbsp;former central bank governor Njuguna Ndung&#8217;u as finance minister&nbsp;to steer the economy through rising inflation, a heavy debt burden and drought.



Ndung&#8217;u,&nbsp;an economics professor,&nbsp;led the central bankbetween&nbsp;2007 and&nbsp;2015, winning praise for presiding over the expansion of the financial sector and condemnation for prioritising growth over price stability in 2011.



Ruto was sworn in this month after a hard fought electoral contest, in which he promised that he would create economic opportunities for the poor.



But he faces a very narrow fiscal space to implement his policies, after the government of predecessor Uhuru Kenyatta ramped up public borrowing to fund infrastructure projects.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2Z644Z&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The country is also facing its worst drought in 40 years as cattle farmers lose their herds.



&#8220;We appreciate that we have a difficult economic situation on our hands,&#8221; the president said as he unveiled his cabinet.



<h3 class="wp-block-heading" id="h-read-more-hustler-ruto-becomes-kenya-s-fifth-president-after-close-election">Read more: <a href="https://www.cnbcafrica.com/2022/william-ruto-to-be-sworn-in-as-kenyas-president/">“Hustler” Ruto becomes Kenya’s fifth president after close election</a></h3>



He urged parliament to swiftly approve his cabinet choices, so the government can start work on the economy.



Ruto also appointed a former vice president and deputy prime minister, Musalia Mudavadi, as his chief minister, a newly created post, to coordinate government business.



He appointed Alfred Mutua, a former government spokesman and county governor, as minister of foreign affairs, and lawmaker Aden Duale as his defence minister.



But all eyes will be focused on Ndung&#8217;u due to the state of the economy.



Ndung&#8217;u, who earned his doctorate from a Swedish university, weathered a political storm in 2012 as parliament tried to oust him over currency turmoil the previous year, when the shilling weakened sharply and inflation soared.



A Reuters poll ranked him as the worst performing African policymaker after the shilling plunged to its weakest-ever level while inflation soared.



He restored his reputation as a central banker in the following years, containing inflation after raising interest rates before gradually stabilising them.



The tenure of the current central bank governor, Patrick Njoroge, is set to end in June next year.



(Reporting by George Obulutsa and Duncan Miriri Editing by James Macharia Chege and Nick Macfie)

Kenya’s Central Bank Governor Njuguna Ndung’u speaks to Reuters during an interview at his office in Nairobi

Ex-central bank chief named Kenyan finance minister amid rising inflation

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/5K52FDSDWFNOJEMWHZY6GIWIVY.jpg" alt="" class="wp-image-420053" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/5K52FDSDWFNOJEMWHZY6GIWIVY.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/5K52FDSDWFNOJEMWHZY6GIWIVY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/5K52FDSDWFNOJEMWHZY6GIWIVY-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption>The International Monetary Fund logo is seen at IMF headquarters in Washington, U.S., October 14, 2017. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



Sept 25 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund confirmed on Sunday that a staff team will visit Ghana this week to continue discussions with the authorities on policies and reforms that could be supported by an IMF lending arrangement.



Ghana turned to the&nbsp;IMF for help in July&nbsp;as its balance-of-payments deteriorated and hundreds took to the streets to protest against economic hardship. An IMF staff team briefly visited the country two weeks later.



Reuters&#8217; reported last week that an IMF team would&nbsp;visit Ghana this week. The IMF, in a statement on Sunday, said the team would arrive on Monday and stay until Oct. 7.



The government of Ghana, a major gold and cocoa producer, has been struggling to tame galloping inflation, reduce public debt and shore up the local currency. Its balance-of-payments deficit swelled to nearly $2.5 billion by the end of June from around $935 million in March.



A source with knowledge of the matter told Reuters last month that an eventual agreement between Ghana and the IMF will likely consist of $3 billion in financing over a three-year period, and contain elements of both Extended Credit Facility (ECF) and Extended Fund Facility (EFF) programmes.



(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Susan Fenton)

IMF team heads to Ghana today to discuss loan programme request

<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>



ACCRA, Sept 22 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s central bank said on Thursday it has rescheduled its upcoming interest rate decision to Oct. 7 from Sept. 26, to coincide with the end of an IMF mission to the country.



Once considered the rising star of West African economies, the gold- and cocoa-producing nation is battling its worst economic crisis in years, as authorities struggle to slow mounting inflation, curb spending and revalue the currency.



The central bank raised its main lending rate by 300 basis points to 22% last month at an emergency meeting to address inflation, running above 30%, and other economic problems.



Ghana formally requested assistance from the International Monetary Fund in July, and a team is expected to arrive in the country early next week.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30R4PX&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The bank&#8217;s Monetary Policy Committee hopes that rescheduling the rate decision will &#8220;allow the decision&#8230; to benefit from the broader discussions to be held during that period,&#8221; the bank said in a statement.



Sources have previously said that the IMF&#8217;s next visit would likely coincide with the beginning of a Debt Sustainability Assessment.



A senior director from credit ratings agency Fitch on Wednesday warned that a sovereign default is &#8220;a real possibility&#8221; for Ghana, and any kind of domestic debt restructuring would likely threaten several local banks with insolvency.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30S47A&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Cooper Inveen; Editing by Bate Felix and Susan Fenton)

US-ECONOMY-FINANCE-IMF-WORLD BANK

Ghana reschedules interest rate decision to coincide with end of IMF mission

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1233035258-820x547.jpg" alt="" class="wp-image-411043" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1233035258-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1233035258-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1233035258-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1233035258-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1233035258-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1233035258-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>UKRAINE &#8211; 2021/05/21: In this photo illustration the International Monetary Fund (IMF) logo is seen on a smartphone screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



LONDON, Sept 15 (Reuters)&nbsp;&#8211;&nbsp;Zambia&#8217;s international bondholders have criticised the International Monetary Fund&#8217;s debt restructuring framework as &#8220;arbitrary&#8221; and for excluding the country&#8217;s domestic debt, sources involved in the process have told Reuters.



Zambia has been in default for almost two years and an IMF Debt Sustainability Analysis published last week called for its debt-service-to-exports ratio to be cut to a 140% &#8220;threshold&#8221; from 153% quickly and to 84% by 2027.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30D3SE&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;Now, all of a sudden, they have an arbitrary 84% number,&#8221; said Kevin Daly, head of emerging market debt at Abrdn, who chairs a committee of bondholders estimated to hold around 45% of Zambia&#8217;s $3 billion worth of international market debt.



&#8220;How did you arrive at that number? It&#8217;s such a different figure than the (140%) threshold,&#8221; he told Reuters, calling on the IMF to meet with bondholders, who have complained of being left out of the loop as the IMF and bilateral creditors worked out a plan.



An IMF spokesperson said it would brief Zambia&#8217;s creditors on economic forecasts and policies and denied the 84% debt-to-exports ratio target was &#8220;arbitrary&#8221;.



&#8220;The target is firmly grounded in the IMF-WB Debt Sustainability Framework for Low-Income Countries,&#8221; they said in emailed comments. &#8220;It is consistent with a level of external debt-to-exports for country having space to absorb shocks.&#8221;



Zambia&#8217;s much-delayed debt restructuring is seen by analysts as a test case for what are expected to be a spate of defaults in poorer countries that have borrowed heavily not only in the capital markets but also from countries including China.



David Malpass, president of the World Bank, the IMF&#8217;s sister organisation, said last week that &#8220;a deep debt reduction of 45% in net present value (NPV) terms&#8230; is essential.&#8221;



Relief of that magnitude &#8220;would not be acceptable (to) creditors&#8221;, including Chinese lenders, Daly said.



He declined to say what other bondholders would agree to, but said that from his perspective, &#8220;If it was something more in the&#8230; 20-30% range, I think that would be acceptable.&#8221;



A bond recovery value of $65 to $75, with an exit yield of 11-12% was &#8220;realistic&#8221;,&#8221; he said.



Bondholders are also unhappy that $11.6 billion of local currency debt, $3.2 billion of which is owned by foreign investors, is being excluded from the restructuring, a second source involved in the process said.



The person, who is familiar with the committee&#8217;s position but spoke on the condition of anonymity, said it implied that such debt would effectively then have precedence over the Eurobonds, which are governed by international laws.



He also questioned whether it would be right to include local currency debt not subject to restructuring in the debt targets, as it &#8220;squeezes the amount of debt service that&#8217;s available to service external debt.&#8221; Still, he said, bondholders were &#8220;mindful&#8221; that restructuring local debt could cause issues in Zambia&#8217;s banking sector.



It was &#8220;the authorities&#8217; intention to exclude these bonds from the restructuring,&#8221; the IMF spokesperson said.



(Reporting by Rachel Savage; Additional reporting by Marc Jones and Karin Strohecker in London; Editing by Andrea Ricci, William Maclean)

In this photo illustration the International Monetary Fund (

Zambia’s bondholders slam IMF debt relief targets as ‘arbitrary’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="537" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/OQ73OMNK7BPV5KTQXBLMAOXLQQ-820x537.jpg" alt="" class="wp-image-419823" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/OQ73OMNK7BPV5KTQXBLMAOXLQQ-820x537.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/OQ73OMNK7BPV5KTQXBLMAOXLQQ-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/OQ73OMNK7BPV5KTQXBLMAOXLQQ-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/OQ73OMNK7BPV5KTQXBLMAOXLQQ-768x503.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/OQ73OMNK7BPV5KTQXBLMAOXLQQ.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Nakuru Governor Susan Kihika dances with traditional women during her swearing-in ceremony at the Agricultural Show grounds in the Rift Valley city of Nakuru, Kenya August 25, 2022. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, Sept 14 (Reuters)&nbsp;&#8211;&nbsp;Kenyan President William Ruto, who was sworn into office on Tuesday, is taking power at a time when the country has the largest number of elected female representatives in history &#8211; and they want him to keep his promise of getting more women into politics.



&#8220;A significant dividend of our electoral and democratic process is the tremendous achievement we made in breaking the glass ceiling by enhancing the participation of women in leadership,&#8221; he told a cheering crowed at his inauguration.



Ruto promised on the campaign trail to uphold a 2010 constitutional clause that says no more than two-thirds of any elected body can be comprised of one gender, and promised to ensure government hiring bodies observe the rule as well. This clause has never been fulfilled and many women politicians say it must be.



Record numbers of Kenyan women were elected in August. The number of female governors more than doubled while the number of female parliamentarians jumped by nearly a third.



&#8220;We will look back and say this time was really historical,&#8221; said lawyer Susan Kihika, who was elected as the first female governor of Kenya&#8217;s populous Nakuru County during the August parliamentary, presidential and county polls.



&#8220;But we are nowhere near where we need to be,&#8221; said Kihika, one of seven female governors out of a total of 47 &#8211; about 15%. Female parliamentarians are a slightly larger proportion, at about 23%.



<h3 class="wp-block-heading" id="h-read-more-hustler-ruto-becomes-kenya-s-fifth-president-after-close-election">Read more: <a href="https://www.cnbcafrica.com/2022/william-ruto-to-be-sworn-in-as-kenyas-president/">“Hustler” Ruto becomes Kenya’s fifth president after close election</a></h3>



One reason: Female candidates&nbsp;<a href="https://www.reutersconnect.com/Njue%20is%20one%20of%20dozens%20of%20female%20candidates%20who%20have%20been%20physically%20assaulted%20during%20campaigning%20for%20presidential,%20legislative%20and%20local%20elections%20on%20Aug.%209,%20according%20to%20the%20Kenya%20Women%20Parliamentary%20Association" target="_blank" rel="noreferrer noopener">face</a>&nbsp;abuse and physical assault, deterring many women from running. They need better protection on the campaign trail, said Kihika.



Ruto was the only one of four presidential candidates without a female running mate in the August election, though he has promised to give more power to women in politics.



&#8220;We shall allocate 50% of all cabinet positions to the women of Kenya,&#8221; he told a campaign rally in June, to cheers and vuvuzela horns from the crowd.



In 2020, the then-chief justice of the Kenyan Supreme Court ordered parliament to be dissolved for failing to implement the gender rule. Kenya&#8217;s high court later suspended the order&#8217;s implementation and there has been little movement on the issue since then.



Margaret Toili, a former parliamentary candidate, was one of the petitioners and has drafted a new petition to file, she told Reuters.



&#8220;We are still not implementing the two-thirds law,&#8221; Toili told Reuters. &#8220;They are facing the same consequences: dissolve parliament.&#8221;



Political parties must also encourage more women to run, said Mercy Mwangi, coordinator of the Kenya Women Parliamentary Association.



Mwangi said progress had been helped by a clause in the 2010 constitution that created 47 parliamentary seats reserved for women, out of a total of 350. Two of the seven female governors elected in this cycle were previously women&#8217;s representatives, as were four parliamentarians.



&#8220;It&#8217;s actually creating a stepping stone for women,&#8221; she said.



(Reporting by Ayenat Mersie; Editing by Katharine Houreld and Josie Kao)

OQ73OMNK7BPV5KTQXBLMAOXLQQ

Kenya’s women leaders look to new president to keep his promises

<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, Sept 13 (Reuters)&nbsp;&#8211;&nbsp;William Ruto was sworn in as Kenya&#8217;s fifth president on Tuesday, a week after the Supreme Court rejected a challenge by his defeated opponent in a close-fought election that he won by portraying himself as an underdog &#8220;hustler&#8221; battling the elite.



Deputy president for the last decade, Ruto must now confront an economic crisis in East Africa&#8217;s wealthiest and most stable nation, where food and fuel prices are surging, unemployment is high and public debt rising.



&#8220;A village boy has become the president of Kenya,&#8221; Ruto said at the ceremony, as the crowd erupted in cheers. As severe drought exacerbates a major food crisis in East Africa, he promised to make 40 million half-price bags of fertiliser available next week.



The 55-year-old won last month&#8217;s election despite a public repudiation by his boss, outgoing President Uhuru Kenyatta, who said Ruto was &#8220;not fit for office&#8221;. Both sides hurled accusations of corruption during a deeply personal, acrimonious campaign.



Kenyatta&#8217;s preferred successor, veteran opposition leader Raila Odinga, had accused Ruto of cheating his way to victory. But Odinga accepted the Supreme Court ruling upholding the result, laying to rest fears of political violence like that seen after disputed elections in 2007 and 2017.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N30C0GB&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;There should be no revenge,&#8221; Bishop Mark Kariuki thundered at Tuesday&#8217;s ceremony, wearing a deep purple stole embroidered &#8220;PEACE&#8221;.



<h3 class="wp-block-heading" id="h-read-more-kenya-s-supreme-court-upholds-ruto-s-presidential-victory">Read more: <a href="https://www.cnbcafrica.com/2022/kenyas-supreme-court-upholds-rutos-presidential-victory/">Kenya’s Supreme Court upholds Ruto’s presidential victory</a></h3>



Odinga did not attend but Kenyatta shook hands with Ruto before he was sworn in and issued a congratulatory message the night before. In his speech, Ruto asked Kenyatta to continue leading regional peace efforts in neighbouring Ethiopia and African Great Lakes countries.



The peaceful transfer of authority will burnish Kenya&#8217;s democratic credentials in a region where some leaders have held power for decades.



Ugandan President Yoweri Museveni, in office for 36 years, and Ismail Omar Guelleh, who has been Djiboutian president for 23 years, were among many African leaders attending.



Ruto greeted each head of state by name before laying out his next steps in his speech.



He pledged to immediately swear in six judges nominated to the Court of Appeal three years ago and make the police financially independent from the president&#8217;s office, and to stick to Kenya&#8217;s plans to produce 100% clean energy by 2030.



<h2 class="wp-block-heading">JUBILANT CROWDS</h2>



Ruto supporters wearing his party&#8217;s colours of yellow and green had packed Nairobi&#8217;s 60,000-seat Kasarani Sports Centre by 5 a.m. They danced and waved miniature national flags to the strains of a band.



&#8220;He is our fellow youth! I know he will bring us more opportunity,&#8221; said dancer Juma Dominic as he and his troupe warmed up.



The National Police Service had tweeted that the stadium was full by 5 a.m. and asked citizens to stay home, but crowds continued to try to force their way inside. The St John&#8217;s Ambulance Service said it had taken several injured people to hospital.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30K1QG&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Ruto, a former roadside chicken seller who is now a wealthy businessman, campaigned as challenger to the powerful families that have dominated Kenyan politics since independence in 1963. Odinga and Kenyatta are the sons of the nation&#8217;s first vice president and president respectively.



That message &#8211; represented by his party symbol of a wheelbarrow &#8211; resonated with chronically underemployed youths and families squeezed by poverty and rampant corruption, which Kenyatta publicly acknowledged he was unable to rein in.



One of Kenya&#8217;s most prominent civil society activists, Boniface Mwangi, said on Monday that over-confidence, disorganisation and Kenyatta&#8217;s embrace had doomed Odinga&#8217;s campaign.



&#8220;Every time Uhuru spoke on behalf of the party, we suffered,&#8221; he wrote, pointing out that Kenyans had suffered hardship and corruption for 10 years while Kenyatta and Ruto were in charge.



($1 = 120.3000 Kenyan shillings)



(Additional reporting by Katharine Houreld; Writing by George Obulutsa and Katharine Houreld, Editing by Aaron Ross, Ed Osmond, Alex Richardson and Catherine Evans)

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

“Hustler” Ruto becomes Kenya’s fifth president after close election

08/09/2022 12:35TEXTMOZAMBIQUE-EU/&nbsp;(UPDATE 1)



<h2 class="wp-block-heading" id="h-update-1-eu-boosts-military-support-to-gas-rich-mozambique-amid-energy-crisis">UPDATE 1-EU boosts military support to gas-rich Mozambique amid energy crisis</h2>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/ICIUDHNRKBMGVDJHG44RQ4363M-820x523.jpg" alt="" class="wp-image-419692" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/ICIUDHNRKBMGVDJHG44RQ4363M-820x523.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/ICIUDHNRKBMGVDJHG44RQ4363M-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/ICIUDHNRKBMGVDJHG44RQ4363M-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/ICIUDHNRKBMGVDJHG44RQ4363M-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/ICIUDHNRKBMGVDJHG44RQ4363M.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium June 17, 2022. REUTERS/Yves Herman/File Photo</figcaption></figure>



BRUSSELS, Sept 8 (Reuters)&nbsp;&#8211;&nbsp;The European Union said on Thursday it would provide additional support to an African military mission in Mozambique, as Islamist attacks threaten gas projects meant to reduce the bloc&#8217;s reliance on Russian energy.



The EU is hunting alternative sources of energy since Moscow&#8217;s invasion of Ukraine and Mozambique has the third largest proven gas reserves in Africa.



But the southern African country has been grappling with militants linked to Islamic State in its northernmost gas-rich province of Cabo Delgado since 2017. The conflict is near liquefied natural gas (LNG) projects worth billions of dollars developed by Western firms, including France&#8217;s Total&nbsp;TTEF.PA&nbsp;and Italy&#8217;s ENI&nbsp;ENI.MI.



Confirming a Reuters report in August, the EU said governments agreed to give 15 million euros ($15 million) to the Southern African Development Community (SADC) mission to Mozambique (SAMIM), which is fighting the insurgency&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2ZR1SZ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>.



In an internal report seen by Reuters, the EU had warned of a &#8220;very volatile&#8221; situation in north Mozambique despite the SADC mission and a separate intervention by troops from Rwanda managing to contain the militants.



The financial support was announced a day after Mozambique said that at least six people were beheaded and an Italian nun killed by insurgents in northern Nampula province&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2ZR1SZ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>.



The funds come in addition to 1.9 million euros already provided by the EU to SAMIM and 89 million euros for the Mozambican armed forces.



The additional funds will be used to acquire camp fortifications and storage containers, medical equipment, vehicles and boats, as well as technological devices, the EU statement said.



In its internal report, the EU had said support would be limited to non-lethal equipment despite SADC&#8217;s need for such.<a href="https://www.reutersconnect.com/all?search=all%3AL8N2ZR1SZ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>.



The report said that EU support for the Rwandan mission in Mozambique would also be proposed in coming months.



($1 = 1.0004 euros)



(Reporting by Francesco Guarascio; editing by David Evans and Andrew Cawthorne)

ICIUDHNRKBMGVDJHG44RQ4363M

EU boosts military support to gas-rich Mozambique amid energy crisis

<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>



LUSAKA, Sept 7 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund (IMF) does not anticipate any relief for Zambia after the end of a 2022-2025 debt programme, its mission chief Allison Holland said at a briefing on Wednesday.



<a href="https://www.cnbcafrica.com/2022/imf-zambia-to-seek-8-4-bln-debt-relief-for-2022-25/">Zambia is seeking $8.4 billion of debt relief from 2022 to 2025</a>, the IMF said on Tuesday in a report on the first African country to default on its debt in the pandemic era. <a href="https://www.reutersconnect.com/all?search=all%3AL8N30D3SE&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Zambia is struggling with debt that reached 120% of its GDP and its debt restructuring is seen as a test case for the Group of 20 leading economies Common Framework process, which has been criticised for delays.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N30734Z&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;We don&#8217;t anticipate any relief for Zambia post-programme,&#8221; Holland said in an online media briefing.



&#8220;We expect the debt relief to be provided now will be sufficient to meet the need &#8230; of the goals that we have outlined,&#8221; she said.



Holland said Zambian authorities outlined a goal to have a memorandum of understanding with the official creditor committee by the end of 2022.



&#8220;The memorandum of understanding will be a joint agreement and Zambia will have to reach specific bilateral agreements with all the bilateral creditors to operationalise it,&#8221; she said.



&#8220;The targets that we have set for the debt relief encompass the whole of Zambia’s debt,&#8221; Holland said.



Separately, Finance Permanent Secretary Mukuli Chikuba told reporters Zambia would have needed to pay 70 billion Zambian Kwachas ($4.53 billion) in debt servicing this year out of an available 100 billion kwacha.



The debt service payment for 2023 was estimated slightly lower at 62 billion kwacha, he said.



&#8220;This is the amount of money that we need to restructure of the $14.6 billion,&#8221; Chikuba said, referring to the central government external debt, including guarantees.



The debt restructuring would take the form of haircuts, extended maturity periods and interest adjustments, Chikuba said.



($1 = 15.4632 Zambian kwachas)



(Additional reporting by Anait Miridzhanian; Writing by Nellie Peyton; Editing by James Macharia Chege and Jane Merriman)

IMF anticipates no further relief needed for Zambia post-debt programme

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-820x547.jpg" alt="" class="wp-image-414305" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



LONDON, Sept 6 (Reuters)&nbsp;&#8211;&nbsp;Zambia is seeking $8.4 billion of&nbsp;debt relief from&nbsp;2022 to 2025, the International Monetary Fund said on Tuesday in a report on the first African nation to default on its debt in the pandemic era.



Zambia needs to bring down its debt service-to-revenue ratio to 14% by 2025 and then maintain that level on average until 2031, compared to 61% now, the IMF said.&nbsp;The report will form the basis of negotiations to restructure Zambia&#8217;s debts following its 2020 default.



Last week, the IMF approved a $1.3 billion, three-year loan to Zambia, whose debt restructuring is seen as a test case for the Group of 20 leading economies Common Framework process, which has been criticised for delays.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N30734Z&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The fund said there were &#8220;sufficient assurances&#8221;&nbsp;from creditors and the government to&nbsp;bring its debt,&nbsp;which the IMF said reached 133% of GDP at the end of 2021,&nbsp;to a sustainable level.



Campaign group Debt Justice estimated that $8.4 billion of debt relief for 2022 to 2025 would represent 90% of scheduled payments to external creditors. It called for the debt to be cancelled permanently rather than rescheduled for payment in the 2030s.



TheIMF projected that Zambia&#8217;s debt-to-GDP ratio would fall to&nbsp;104.7% by&nbsp;2025, with&nbsp;annual growth&nbsp;expected to average around 4.5% until&nbsp;2031.&nbsp;A budget surplus of 3.2% is targeted for 2025, compared to a 6% deficit last year.



&#8220;I expected a larger adjustment over the (three year) period of the IMF (programme),&#8221; Kevin Daly of Abrdn, who chairs a committee of holders of Zambia&#8217;s $3 billion of Eurobonds, said by email, referring to the debt forecasts.



But, he added: &#8220;There are no big surprises.&#8221;



Zambia&#8217;s external debt reached $20 billion at the end of 2021, the IMF said, or $16.8 billion after removing foreign holdings of local currency debt.



Restructuring local currency debt is off the table, the report said, as it could mean local banks needing bailouts.



Zambia had $1.3 billion of arrears to bilateral creditors at the end of 2021, the report said.



Zambia must now negotiate the specifics of&nbsp;debt relief with&nbsp;each of its many creditors.



(Reporting by Rachel Savage and Marc Jones; Additional Reporting by David Lawder in Washington, Chris Mfula in Lusaka and Anait Miridzhanian in Johannesburg; Editing by Estelle Shirbon, Angus MacSwan and Deepa Babington)

BE2FA7DW6VJP3AYQ5S5CUCMQO4

IMF: Zambia to seek $8.4 bln debt relief for 2022-25

<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/SO2M3UJ3TRJ5HMUCD5UPH7R2V4-820x547.jpg" alt="" class="wp-image-419614" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/SO2M3UJ3TRJ5HMUCD5UPH7R2V4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/SO2M3UJ3TRJ5HMUCD5UPH7R2V4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/SO2M3UJ3TRJ5HMUCD5UPH7R2V4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/SO2M3UJ3TRJ5HMUCD5UPH7R2V4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/SO2M3UJ3TRJ5HMUCD5UPH7R2V4-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/SO2M3UJ3TRJ5HMUCD5UPH7R2V4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Kenya&#8217;s Supreme Court Chief Justice Martha Koome presides to deliver the ruling on a petition seeking to invalidate the outcome of the recent presidential election, at the Supreme Court in Nairobi, Kenya September 5, 2022. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s Supreme Court on Monday unanimously upheld William Ruto&#8217;s presidential win in a scathing judgment that blasted opposition leader Raila Odinga&#8217;s accusations of cheating.



Soon after, Odinga tweeted that he would respect the ruling even though he disagreed with it, easing fears that Kenya would see any repeat of the violence that followed disputed votes in 2007 and 2017.



Several public figures and anti-corruption campaigners &#8211; including some who had backed Odinga &#8211; welcomed the judgment, saying it bolstered the court&#8217;s reputation for independence.



&#8220;This decision is good for the judiciary. This election result is bad for Kenya. Two things can be true at the same time,&#8221;&nbsp;tweeted&nbsp;author Nanjala Nyabola,&nbsp;who had not backed either candidate.



There were no immediate signs of protest in Odinga&#8217;s stronghold of Kisumu city or the low-income neighbourhoods of Nairobi that traditionally support the left-wing politician.



“There is nothing we can do, the judgment has been made,” Geoffrey Omondi, a 33-year-old electrical engineer who supported Odinga, said.



Ruto&#8217;s jubilant supporters danced and waved flags in his party colours of yellow and green.



East Africa&#8217;s most wealthy and influential nation had been on tenterhooks since the Aug. 9 elections, which pitted Ruto &#8211; a former chicken seller &#8211; against two of nation&#8217;s two most powerful political families.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2ZR0H1&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Similar accusations of cheating triggered deadly election violence, often with ethnic undertones, during the two previous polls.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2ZS0HB&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



<h2 class="wp-block-heading" id="h-scathing-judgement">SCATHING JUDGEMENT</h2>



Chief Justice Martha Koome, who heads the seven-member Supreme Court,&nbsp;left no ambiguity about the court&#8217;s position on key arguments brought by Odinga&#8217;s team and other complainants.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2ZY09L&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



She&nbsp;dismissed&nbsp;some affidavits&nbsp;alleging that polling stations results forms had been tampered with as &#8220;double hearsay&#8221;&nbsp;&#8211; and one&nbsp;as &#8220;no more than hot air &#8230; a wild goose chase&#8221;.



&#8220;Some of the (computer) logs presented as evidence &#8230; were either from logs arising from the 2017 election or were outright forgeries,&#8221; she said.



Koome raised the possibility of perjury, noting that two people who filed affidavits allegedly on behalf of polling stations agents had not spoken to the agents.



&#8220;Swearing to falsehoods is a criminal offence,&#8221; she said.



She also called for reforms at the Independent Electoral and Boundaries Commission, saying that a &#8220;boardroom rupture&#8221; between the commissioners had undermined public confidence.



Four of the seven election commissioners&nbsp;had disowned&nbsp;Ruto&#8217;s win minutes before it was formally announced, saying the tallying process was opaque. But the dissenting commissioners had previously participated in the tallying without raising any concerns, Koome said.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2ZR0DS&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



“We uphold the Supreme Court decision,” dissenting commissioner Juliana Cherera told Reuters.



<h2 class="wp-block-heading">PERSONAL POLITICS</h2>



The history between Odinga, Ruto and outgoing President Uhuru Kenyatta underscores the tangled ties&nbsp;between elite&nbsp;families and the primacy of personality over politics.



Ruto was Kenyatta&#8217;s vice president, but the two fell out and Kenyatta backed Odinga in the vote.



In a speech after the judgment, Ruto poked gentle fun at his predecessor and former ally, saying: &#8220;I&#8217;ve not yet spoken to my &#8230; friend Uhuru Kenyatta.&#8221;



Ripples of laughter spread through the audience before Ruto dissolved into uncontrollable chuckles at the podium.



Later he promised to respect both Kenyatta and Odinga, and said he would stop law enforcement mounting any politically-motivated corruption investigations &#8211; something he accused Kenyatta&#8217;s government of doing.



Ruto said he would not recruit Odinga to serve in his government, saying that the country needed a functioning opposition and such alliances created a &#8220;mongrel of a government.&#8221;



Kenyatta is the son of the country&#8217;s first president and Odinga the son of the first vice president.



Ruto, now a wealthy businessman, portrayed himself as an underdog battling the elite &#8211; a message resonating with chronically underemployed youth and families squeezed by global inflation and rampant graft.



Ruto will be sworn in on Sept. 13.



(Additional reporting by James Macharia Chege, Humphrey Malalo, Aaron Ross and Ayenat Mersie; Editing by William Maclean and Andrew Heavens)

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East Africa

IMF reaches staff agreement with Somalia, eyes debt forgiveness in late 2023

Ghana finance ministry, central bank form committee for talks on IMF programme

IMF chief Georgieva aims to complete Zambia, Chad debt restructuring by year-end

Safaricom surges after securing Ethiopia mobile financial services licence

Ethiopia accepts African Union invitation to peace talks

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Uganda announces oil block licensing round, criticises EU over pipeline

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IMF team heads to Ghana today to discuss loan programme request

Ghana reschedules interest rate decision to coincide with end of IMF mission

Zambia’s bondholders slam IMF debt relief targets as ‘arbitrary’

Kenya’s women leaders look to new president to keep his promises

“Hustler” Ruto becomes Kenya’s fifth president after close election

EU boosts military support to gas-rich Mozambique amid energy crisis

IMF anticipates no further relief needed for Zambia post-debt programme

IMF: Zambia to seek $8.4 bln debt relief for 2022-25

Kenya’s Supreme Court upholds Ruto’s presidential victory

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