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



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



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



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



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



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



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



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



But the prospects for peace remain uncertain.



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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

African Union envoy holds a news conference on Ethiopia peace talks

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

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



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



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



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



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



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



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



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



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



($1 = 123.3000 Kenyan shillings)



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

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

Kenya will not default on its debt payments -President Ruto

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



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



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



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



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



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



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



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



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

W3TRJMXBPRNATIXO27SFJRC77U

IMF approves disbursement of $447.39 million to Kenya

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



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



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



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



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



Eskom did not immediately respond to a request for comment.



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



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



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



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



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

Eskom Holdings SOC Ltd Chief Executive Officer Brian Molefe Interview

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

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



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



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



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



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



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



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



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



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



(Reporting by Duncan Miriri; Editing by Arun Koyyur)

istockphoto-1250489640-640×640

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

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



NAIROBI, Dec 6 (Reuters)&nbsp;&#8211;&nbsp;Kenya has asked the World Bank for a $750 million budget support loan, the finance minister said on Tuesday, to help cover its funding needs for the financial year to the end of next June.



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



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



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



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



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



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

IMF And World Bank Headquarters During Virtual Spring Meetings

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

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



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



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



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



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



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



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



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



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



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



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



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



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



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

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

Malawi vice president arrested over corruption, says graft watchdog

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



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



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



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



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



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



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



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



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



(Reporting by David Lawder; Editing by Chris Reese)

US-ECONOMY-FINANCE-IMF-WORLD BANK

IMF to disburse $59 mln to Mozambique after loan review

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg" alt="" class="wp-image-420118" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>The new economic measures laid out by the U.K. government “will likely increase inequality”, according to a spokesperson from the International Monetary Fund.
Yuri Gripas | Reuters</figcaption></figure>



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



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



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



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



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



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



(Reporting by David Lawder; Editing by Chris Reese)

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

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

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



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



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



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



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



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



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

S76BW3Z2BBMIHKBVMFRZZLYJUQ

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

<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)

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)

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