<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/19687164624_b666db9c7c_o-820x547.jpg" alt="" class="wp-image-416002" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/19687164624_b666db9c7c_o-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/19687164624_b666db9c7c_o-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/19687164624_b666db9c7c_o-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/19687164624_b666db9c7c_o-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/19687164624_b666db9c7c_o-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/19687164624_b666db9c7c_o-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Equity Group Holdings CEO &amp; MD Dr. James Mwangi announces a 12% growth in pretax profit during the release of the half year trading results. The Group registered a pretax profit of Kshs 12.1bn up from Kshs 10.8bn posted within the same period last year. Photo: via Flickr</figcaption></figure>



NAIROBI, March 22 (Reuters)&nbsp;&#8211;&nbsp;Equity Group&nbsp;EQTY.NR, Kenya&#8217;s biggest lender by assets, expects to boost its loan book this year as it shifts from government securities, its chief executive said on Tuesday.



The lender, which also operates in Uganda, Tanzania, Rwanda, Burundi, South Sudan and Democratic Republic of Congo, more than doubled its pretax profit last year as income rose and bad debts dropped.



&#8220;There is a huge opportunity of re-allocating (assets),&#8221; James Mwangi, the group&#8217;s CEO, told an investor briefing.



Equity had parked 394 billion shillings ($3.45 billion) in government securities at the end of last year, double the amount in the previous year, and it will shift some of that to higher yielding customer loans, he said.



Kenya&#8217;s central bank approved Equity&#8217;s interest rate pricing plan, Mwangi said, making the shift to increased customer lending possible.



The East African nation removed a cap on lending rates in late 2019 and the central bank is engaging all lenders with a view to approve their individual pricing mechanisms.



<h3 class="wp-block-heading" id="h-read-more-kenya-s-budget-deficit-to-widen-as-treasury-lays-out-extra-spending">Read more: <a href="https://www.cnbcafrica.com/2022/kenyas-budget-deficit-to-widen-as-treasury-lays-out-extra-spending/">Kenya’s budget deficit to widen as Treasury lays out extra spending</a></h3>



Equity, which is the only lender to have its plan approved so far, will charge customers interest rates of 13-18.5%.



&#8220;We can now accommodate all borrowers,&#8221; Mwangi said, referring to those who had been pushed out of credit by the rate cap.



Total costs at the group slid last year, partly due to customers shifting to digital channels, Mwangi said, forecasting expenses would drop further this year.



The group reported a jump in its interest income for the period, as well as income from transactions.



It slashed its provisions for bad debts to 5.84 billion shillings from 26.63 billion shillings in the prior year, boosting pretax profit 134% to 51.9 billion shillings.



Equity recommended a payout of 3.00 shillings per share, resuming a dividend payment for the first time since 2018. It did not pay a dividend for 2019 and 2020 to build up capital.



($1 = 114.3000 Kenyan shillings)



(Reporting by Duncan Miriri and George ObulutsaEditing by Mark Potter)

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Kenya’s Equity Group’s profit surges in 2021, sees loan book growth

<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, March 17 (Reuters)&nbsp;&#8211;&nbsp;The World Bank has approved $750 million lending to Kenya for budgetary support,&nbsp;pegged on reforms in public procurement to curb graft,&nbsp;the multilateral lender said on Thursday.



In 2019, the East African nation qualified for the World Bank&#8217;s Development Policy Operations (DPO), which lends cash directly to the Treasury for budget support instead of financing specific projects.



The loan, which comes with an annual interest rate of about 3.0%, is the second tranche of a credit facility initiated in 2020, the World Bank said. The first tranche was disbursed last June.



Reforms tied to the loans include the establishment of an electronic platform for public procurement to foster transparency and reduce opportunities for corruption, it said in a statement.



<h3 class="wp-block-heading" id="h-read-more-kenya-s-budget-deficit-to-widen-as-treasury-lays-out-extra-spending">Read more: <a href="https://www.cnbcafrica.com/2022/kenyas-budget-deficit-to-widen-as-treasury-lays-out-extra-spending/">Kenya’s budget deficit to widen as Treasury lays out extra spending</a></h3>



&#8220;By the end of 2023, the program aims to have five strategically selected ministries, departments, and agencies, procuring all goods and services through the electronic procurement platform,&#8221; the bank said.



The program will also support energy reforms, by creating a platform for clean energy investments which has the potential to attract more investors, the World Bank said.



Under President Uhuru Kenyatta, Kenya has expanded borrowing in recent years, to fund the construction of infrastructure such as roads and railways.



Increased borrowing has angered some critics who point to a consistently gaping annual fiscal deficit.



Still, the World Bank was complementary of the government&#8217;s commitment to steering the economy in the right path.



&#8220;The government of Kenya has maintained the momentum to make critical reforms progress despite the disruption caused by the pandemic,&#8221; said Keith Hansen, country director for Kenya.



(Reporting by Duncan Miriri; editing by Alex Richardson and Jason Neely)

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World Bank approves $750 million in budgetary support 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/2022/03/12667922963_fda7b750a1_o-820x547.jpg" alt="" class="wp-image-415911" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/12667922963_fda7b750a1_o-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/12667922963_fda7b750a1_o-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/12667922963_fda7b750a1_o-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/12667922963_fda7b750a1_o-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/12667922963_fda7b750a1_o-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/12667922963_fda7b750a1_o-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Launch of Global Forest Watch. Photographer: Ralph Alswang. Photo: via Flickr</figcaption></figure>



NAIROBI, March 16 (Reuters)&nbsp;&#8211;&nbsp;Parliamentarians are proposing amending Kenya&#8217;s forest law to make it easier to change the borders of protected areas, a move activists warn could adversely affect wildlife and the environment in the east African country.



Conservationists say the change would open precious forest land to developers while supporters of the amendment argue it will help protect people with legitimate claims to disputed land from eviction.



The Forest Conservation and Management Amendment would weaken the power of Kenya&#8217;s Forest Service (KFS) to veto proposed boundary changes that would endanger rare species or water catchment areas. KFS did not respond to calls seeking comment.



Forests around the developing Kenyan capital of Nairobi, nicknamed the &#8220;green city in the sun&#8221;, are at the heart of the debate, now under review by parliamentary committee.



&#8220;If that amendment bill is allowed&#8230;what we will have is what we are seeing here,&#8221; said environmentalist Christopher Muriithi, gesturing to a cluster of buildings and a tarmac road cutting through land once part of Oloolua Forest on Nairobi&#8217;s outskirts.



But the amendment&#8217;s supporters argue changing the law protects people already settled on disputed forest land &#8211; they may be families who saved up to buy a home in good faith.



Parliamentarian Nixon Korir, who has expressed support for an amendment, did not respond to requests for comment but previously said the government must act to protect innocent home owners.



<h3 class="wp-block-heading" id="h-read-more-kenya-s-deputy-president-estranged-from-his-boss-aims-for-the-presidency">Read more: <a href="https://www.cnbcafrica.com/2022/kenyas-deputy-president-estranged-from-his-boss-aims-for-the-presidency/">Kenya’s deputy president, estranged from his boss, aims for the presidency</a></h3>



Kenya lost about half of its forest cover between 1980 and 2000, said African Development Bank, and another 11% in the subsequent two decades, according to Global Forest Watch.



Muriithi said when he was young Oloolua covered around 682 hectares but now estimates it has shrunk to 500. Swathes of lush land were carved out by individuals, loggers, developers, and even the state, which built a railway line through the forest. The giraffe, zebra, and buffaloes he remembers have disappeared.



Muriithi does not think they will return, but hopes to protect what is left. He heads a community association that patrols the forest, replaces invasive trees with indigenous ones, and works with officials to prosecute loggers.



But this is dangerous. When he investigated illegal logging, Muriithi said a body was dumped in the forest and he was warned he could be next, forcing him to flee to Uganda.



&#8220;It’s dangerous, but I’m happy the community now has come in big numbers,&#8221; he said, standing by a pile of dirt and wood fragments from land he says was cleared illegally.



&#8220;They might kill me or someone else but they will not kill the whole community.&#8221;



(Reporting by Ayenat Mersie, editing by Ed Osmond)

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Kenya’s proposed forest law worries environmental activists

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/kenya-s-deputy-president-estranged-from-his-boss-aims-for-the-presidency-820x547.jpeg" alt="" class="wp-image-415893" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/kenya-s-deputy-president-estranged-from-his-boss-aims-for-the-presidency-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/kenya-s-deputy-president-estranged-from-his-boss-aims-for-the-presidency-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/kenya-s-deputy-president-estranged-from-his-boss-aims-for-the-presidency-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/kenya-s-deputy-president-estranged-from-his-boss-aims-for-the-presidency-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/kenya-s-deputy-president-estranged-from-his-boss-aims-for-the-presidency.jpeg 1350w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Kenya&#8217;s Deputy President and presidential candidate under United Democratic Alliance (UDA) party William Ruto addresses a campaign rally ahead of the forthcoming elections in Karen neighbourhood of Nairobi, Kenya January 18, 2022. REUTERS/Baz Ratner </figcaption></figure>



NAIROBI, March 15 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s Deputy President William Ruto is due to be nominated on Tuesday by his new party to stand for the presidency in an August election after his public split with President Uhuru Kenyatta who is backing another candidate.



Ruto will compete with veteran opposition leader Raila Odinga, who has secured Kenyatta&#8217;s support. Kenyatta, who must stand down after serving the maximum of two five-year terms, says Ruto is not trustworthy and less experienced than Odinga.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2V02ZC&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Some Kenyans are concerned about the divisions because elections have sometimes sparked violence &#8211; notably in 2007, when Odinga&#8217;s supporters said his victory was stolen and a crackdown on political protests degenerated into clashes between ethnic groups.



Ruto, standing with the newly created United Democratic Alliance, has sought to calm those fears.



&#8220;William Ruto will accept the election outcome whichever way it goes,&#8221; Ruto told an audience in Chatham House recently. &#8220;I want all the other candidates to make the same commitment.&#8221;



Elections in the East African nation are closely watched; Kenya is the region&#8217;s richest and most stable nation and a close Western ally that hosts regional headquarters of international firms like Alphabet Inc GOOGL.O and Visa V.N.



<h3 class="wp-block-heading" id="h-read-more-kenya-s-budget-deficit-to-widen-as-treasury-lays-out-extra-spending">Read more: <a href="https://www.cnbcafrica.com/2022/kenyas-budget-deficit-to-widen-as-treasury-lays-out-extra-spending/">Kenya’s budget deficit to widen as Treasury lays out extra spending</a></h3>



Ruto, who served as a lawmaker and minister for agriculture before becoming deputy president, has sought to break through Kenya&#8217;s traditional patterns of ethnic voting by casting the election as a competition of poor &#8220;hustlers&#8221; against a wealthy political &#8220;dynasty&#8221;.



He says he began his career as a roadside chicken seller, a pointed contrast to Kenyatta and Odinga &#8211; the sons of the nation&#8217;s first president and vice president respectively &#8211; and pledges to shift government funding from large infrastructure projects to small enterprises.



Critics point to corruption allegations against Ruto &#8211; none of which have ever been proven in court &#8211; and a case against him at the International Criminal Court in The Hague for allegedly masterminding violence following the disputed 2007 election.



The case later collapsed; a Kenyan lawyer is currently on trial at the ICC accused of bribing prosecution witnesses against Ruto, which the lawyer denies.



Kenyatta, Odinga, and Ruto come from three of Kenya&#8217;s four biggest ethnic groups. Kenyatta&#8217;s Kikuyu group, the nation&#8217;s most populous, has produced three of four presidents since independence from Britain in 1963.



Kenya&#8217;s other president Daniel arap Moi &#8211; its longest-serving &#8211; came from Ruto&#8217;s Kalenjin group. Odinga&#8217;s Luo group have never held the top job. Both Odinga and Ruto need to woo Kikuyu voters to win.



(Reporting by Duncan Miriri; Editing by Katharine Houreld and Raissa Kasolowsky)

kenya-s-deputy-president-estranged-from-his-boss-aims-for-the-presidency

Kenya’s deputy president, estranged from his boss, aims for the presidency

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="502" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/M73ZNPFNPZJJHKHVF42YAOVFQ4.jpg" alt="" class="wp-image-415889" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/M73ZNPFNPZJJHKHVF42YAOVFQ4.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/M73ZNPFNPZJJHKHVF42YAOVFQ4-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/M73ZNPFNPZJJHKHVF42YAOVFQ4-131x90.jpg 131w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption>A Somali woman carries her malnourished child at their makeshift shelter within the Iftin Camp for the internally displaced people outside Baradere town, Gedo Region, Jubaland state, Somalia, March 13, 2022. REUTERS/Feisal Omar</figcaption></figure>



BAARDHEERE, Somalia, March 15 (Reuters)&nbsp;&#8211;&nbsp;It has not rained on Habiba Maow Iman&#8217;s farm in southern Somalia for two years. Her animals are dead; her crops failed.



Wrapped in a shawl stamped with rows of white flowers, the 61-year-old is one of tens of thousands seeking aid on the outskirts of Baardheere town.



The Horn of Africa region is facing the driest conditions in more than four decades after three consecutive rainy seasons failed, according to the United Nations&#8217; World Food Program (WFP).



More than four million Somalis like Iman will struggle to find food if the rains don&#8217;t come in April, WFP said.



&#8220;We fled from the drought,&#8221; she said, surrounded by domed huts built with a patchwork of cloth and plastic sheeting. &#8220;Every day I go out and knock every house in the town to beg something for the children to eat.&#8221;



Somalia has experienced a series of catastrophic droughts in the last decade.



<h3 class="wp-block-heading" id="h-read-more-west-africa-bloc-to-deploy-stabilizing-force-to-bissau-after-coup-attempt">Read more: <a href="https://www.cnbcafrica.com/2022/west-africa-bloc-to-deploy-stabilizing-force-to-bissau-after-coup-attempt/">West Africa bloc to deploy stabilizing force to Bissau after coup attempt</a></h3>



Global weather patterns indicate that the rains are likely to fail again this year, according to the Famine Early Warning System Network (FEWS Net), which has warned that the region could experience its worst drought on record.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2V0174&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Lying at the bedside of his sick son, Abdullahi Abdow Mohamed travelled by donkey cart for six days to get to Baardheere, only to find the camp in the grip of a measles epidemic.



All four of his children caught the disease. One daughter has already died.



&#8220;These people have lost everything,&#8221; said El-Khidir Daloum Mahmoud, WFP&#8217;s country director. &#8220;Human suffering is human suffering, no matter whether it is in Europe or Africa or Asia or anywhere&#8230; we have a crisis in the making.&#8221;



If this year&#8217;s rains do not materialise, 1.4 million children under five will be acutely malnourished by the end of the year, a WFP spokesperson said.



Earlier this month, the U.N.&#8217;s Intergovernmental Panel on Climate Change, the top global climate science authority, said heatwaves, droughts and extreme rainfall would become more frequent in coming decades as temperatures continue to climb.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2V30XA&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Feisal Omar, additional reporting by Abdi Sheikh, writing by Hereward Holland; editing by Katharine Houreld and Jane Merriman)

Drought stricken Baradere in southern Somalia

Somalia’s worst drought in four decades means millions need aid

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/3GWDNGQOXFNXFLSFVBIVOM3ATM-820x547.jpg" alt="" class="wp-image-415821" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/3GWDNGQOXFNXFLSFVBIVOM3ATM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/3GWDNGQOXFNXFLSFVBIVOM3ATM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/3GWDNGQOXFNXFLSFVBIVOM3ATM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/3GWDNGQOXFNXFLSFVBIVOM3ATM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/3GWDNGQOXFNXFLSFVBIVOM3ATM.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A woman reacts as she receives a booster shot vaccine against coronavirus disease (COVID-19), at a medical clinic makeshift tent to enhance the booster programme in Nairobi, Kenya, January 19, 2022. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, March 11 (Reuters)&nbsp;&#8211;&nbsp;Kenya lifted its remaining COVID-19 restrictions on Friday, including a ban on large indoor gatherings such as religious services and a requirement to present a negative COVID-19 test for arriving air passengers.



Though Kenyans should continue heeding public health measures such as handwashing and social distancing, face masks are no longer mandatory in public and all quarantine measures for confirmed COVID-19 cases are halted with immediate effect, Health Minister Mutahi Kagwe told a news conference.



For the past month the East African country&#8217;s COVID-19 test positivity rate has remained below 1%, he added, attributing this to the rising number of Kenyans opting to get vaccinated.



In November, the government announced that proof of vaccination would be required by Dec. 21 to access schools, transport, state offices, hotels, bars, restaurants, national parks and wildlife reserves. <a href="https://www.reutersconnect.com/all?search=all%3AL1N2SD134&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



<h3 class="wp-block-heading" id="h-read-more-new-covid-19-vaccine-rule-catches-many-kenyans-by-surprise">Read more: <a href="https://www.cnbcafrica.com/2021/new-covid-19-vaccine-rule-catches-many-kenyans-by-surprise/">New COVID-19 vaccine rule catches many Kenyans by surprise</a></h3>



But a court blocked the move amid uncertainty over who would police it or what to do about people unable to access vaccines. The minister did not mention the order in his remarks on Friday.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2SZ4S5&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Kenya, with a population of 54 million, has recorded less than 35 daily COVID infections over the past week, according to government statistics. About 323,000 infections, and 5,600 deaths, have been recorded throughout the pandemic&nbsp;since 2020.



Nearly 29% of Kenyan adults are fully vaccinated, more than most countries in sub-Saharan Africa.



(Reporting by Maggie Fick Editing by Mark Heinrich)

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Kenya lifts remaining COVID restrictions￼

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="502" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/PN6WIAWHFZN7HNSPBLZJVCMEWU-820x502.jpg" alt="" class="wp-image-415514" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/PN6WIAWHFZN7HNSPBLZJVCMEWU-820x502.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/PN6WIAWHFZN7HNSPBLZJVCMEWU-300x184.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/PN6WIAWHFZN7HNSPBLZJVCMEWU-147x90.jpg 147w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/PN6WIAWHFZN7HNSPBLZJVCMEWU-768x470.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/PN6WIAWHFZN7HNSPBLZJVCMEWU.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Scavengers sort recyclable plastic materials at the Dandora dumping site on the outskirts of Nairobi, Kenya February 26, 2022. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, Feb 28 (Reuters)&nbsp;&#8211;&nbsp;A short drive from the United Nations complex in Nairobi where talks on a global plastics treaty are taking place this week is Kenya&#8217;s biggest landfill &#8211; a mountain of garbage, carpeted in single-use plastic.



The equivalent of 30 trucks of throwaway plastic packaging, bags and containers are tipped on to Dandora dump daily, according to official data, a trend set to worsen with global plastic pollution forecast to double over the next decade.



This global waste crisis, which is destroying habitats, killing wildlife and contaminating the food chain, has sparked calls for radical action in a treaty billed as the most important environmental pact since the Paris Agreement.



&#8220;Our expectation is that when the treaty is signed, countries commit to stop the production of such plastics,&#8221; Hibrahim Otieno, a local environmental official told Reuters at the dump site.



Otieno is not alone. Three in four people said they wanted single-use plastics banned as soon as possible in a study released this month ahead of the treaty talks.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2US5TN&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



But how the treaty will tackle single-use plastic production and use is set to be one of the thorniest issues in the talks, according to officials involved, as well as what elements of it will be legally binding and how it will be financed.



<h3 class="wp-block-heading" id="h-read-more-75-of-people-want-single-use-plastics-banned-global-survey-finds">Read more: <a href="https://www.cnbcafrica.com/2022/75-of-people-want-single-use-plastics-banned-global-survey-finds/">75% of people want single-use plastics banned, global survey finds</a></h3>



Behind-the-scenes, powerful oil and chemical companies who manufacture plastics have been urging governments to reject provisions that could curb their business, a Reuters investigation earlier this month revealed.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2UR6F9&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Industry executives and environmental pressure groups have been in Nairobi since last week observing hours of technical-level discussions on the pact and meeting with officials on the sidelines to press their case on key issues.



&#8220;This is not an anti-plastics treaty,&#8221; Espen Barth Eide, president of the United Nations Environment Assembly which is hosting the talks in Nairobi, told Reuters. &#8220;We are not sort of after their product as such, but we want to bring it into a much more viable, circular economy.&#8221;



Political representatives arriving on Monday must now approve the framework drafted by their technical experts and launch an intergovernmental negotiating committee (INC) to broker a final deal.



Those negotiations are expected to take at least another two years to complete, but the framework agreed in Nairobi is seen as crucial in ultimately determining the treaty&#8217;s success.



&#8220;If we don&#8217;t get the right formulation, the INC will be shackled and limited in what elements they can consider,&#8221; said Christina Dixon of the Environmental Investigation Agency, one of the campaigners participating in the talks.



(Reporting by John Geddie in Nairobi; Editing by Kenneth Maxwell)

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At Kenya’s biggest dump, urgent calls for a global plastics treaty

Africa Health Check EP12: Africa’s future in a post-pandemic world

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="501" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/AXEXU6MK2RMPHIRYBSUFVHERJU-820x501.jpg" alt="" class="wp-image-415408" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/AXEXU6MK2RMPHIRYBSUFVHERJU-820x501.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/AXEXU6MK2RMPHIRYBSUFVHERJU-300x183.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/AXEXU6MK2RMPHIRYBSUFVHERJU-147x90.jpg 147w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/AXEXU6MK2RMPHIRYBSUFVHERJU-768x470.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/AXEXU6MK2RMPHIRYBSUFVHERJU.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Students register and have their temperatures taken at Bukere Secondary School, after schools reopened following the coronavirus disease (COVID-19) induced shutdown in Kyaka II Refugee Settlement, in Kyegegwa District, Uganda January 11, 2022. REUTERS/Esther Ruth Mbabazi/File Photo </figcaption></figure>



KAMPALA, Feb 22 (Reuters)&nbsp;&#8211;&nbsp;Uganda plans to impose fines on people who refuse to be vaccinated against COVID-19 and those who fail to pay could be sent to prison under a new public health law which lawmakers are scrutinising, parliament said on Tuesday.



Although the East African country started administering COVID-19 jabs nearly a year ago, only about 16 million jabs have been administered in a population of 45 million, with officials blaming widespread reluctance for the low coverage.



Parliament&#8217;s house health committee has begun scrutinising Public Health (Amendment) Bill 2021 which seeks to make coronavirus vaccinations mandatory.



The new law proposes a fine of 4 million Ugandan shillings ($1,139) for those who fail to get vaccinated.



&#8220;According to the proposal, those who do not get vaccinated against COVID-19 will be fined 4 million shillings or (receive) a jail term of six months,&#8221; parliament said in a statement on its website.



<h3 class="wp-block-heading" id="h-read-more-eu-pushes-for-covid-vaccinations-in-africa-as-supply-no-longer-a-problem">Read more: <a href="https://www.cnbcafrica.com/2022/eu-pushes-for-covid-vaccinations-in-africa-as-supply-no-longer-a-problem/">EU pushes for COVID vaccinations in Africa as supply ‘no longer’ a problem</a></h3>



The parliament statement quoted health minister Jane Ruth Aceng as telling lawmakers on the committee that mandatory vaccinations would ensure enough people are vaccinated so that &#8220;we create mass immunity. It is important that whoever is supposed to be vaccinated, is vaccinated.&#8221;



The statement did not say when the proposed law was likely to be brought before all members of parliament for approval.



Uganda fully re-opened its economy last month after two years of anti-coronavirus measures that included curfews, businesses and school closures, the shutting of borders and other steps.



The strict measures helped curb the pandemic but drew widespread criticism from Ugandans whose businesses and livelihoods were affected.



The country has recorded about 163,000 cases of COVID-19 and 3,500 deaths, health ministry data show.



($1 = 3,510.0000 Ugandan shillings)



(Reporting by Elias Biryabarema; editing by George Obulutsa and Jason Neely)

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Ugandans would face fines, jail for refusing COVID jab under new law

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/752J7PEJOVK2NCNBMZI3DYKYPQ-820x547.jpg" alt="" class="wp-image-415366" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/752J7PEJOVK2NCNBMZI3DYKYPQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/752J7PEJOVK2NCNBMZI3DYKYPQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/752J7PEJOVK2NCNBMZI3DYKYPQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/752J7PEJOVK2NCNBMZI3DYKYPQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/752J7PEJOVK2NCNBMZI3DYKYPQ.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Water flows through Ethiopia&#8217;s Grand Renaissance Dam as it undergoes construction work on the river Nile in Guba Woreda, Benishangul Gumuz Region, Ethiopia September 26, 2019. Picture taken September 26, 2019. REUTERS/Tiksa Negeri</figcaption></figure>



ADDIS ABABA, Feb 20 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia began producing electricity on Sunday from its Grand Ethiopian Renaissance Dam (GERD), a multi-billion-dollar hydropower plant on the River Nile that neighbours Sudan and Egypt have worried will cause water shortages downstream.



After flicking a digital switch to turn on the turbines in the first phase of the project, Prime Minister Abiy Ahmed sought to assure those nations that his country did not wish to harm their interests.



&#8220;Ethiopia&#8217;s main interest is to bring light to 60% of the population who is suffering in darkness, to save the labour of our mothers who are carrying wood on their backs in order to get energy,&#8221; Abiy said.



His government says the project is key to its economic development, but Egypt and Sudan depend on the waters of the Nile and have worried it will affect them.



<h3 class="wp-block-heading" id="h-read-more-military-moves-in-ethiopia-risk-undermining-progress-toward-peace-talks-u-s-envoy">Read more: <a href="https://www.cnbcafrica.com/2021/military-moves-in-ethiopia-risk-undermining-progress-toward-peace-talks-u-s-envoy/">Military moves in Ethiopia risk undermining progress toward peace talks -U.S. envoy</a></h3>



Ethiopia, the second most populous country on the continent, has the second biggest electricity deficit in Africa according to the World Bank, with about two thirds of the population of around 110 million lacking a connection to the grid.



The project will ultimately cost $5 billion when it is completed and become the biggest hydropower plant in Africa by generating 5,150 MW of electricity, some of which will be exported to neighbouring nations, the government says.



The government has so far invested more than 100 billion Ethiopian birr ($1.98 billion) in the project, state-affiliated FANA broadcaster reported. It is located at a place called Guba in the western Benishangul-Gumuz region.



($1 = 50.6000 birr)



(Writing by Duncan Miriri; Editing by Frances Kerry)

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Ethiopia turns on the turbines at giant Nile hydropower plant

Rwanda’s Innovation Center to boost start-up culture

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/R6LDDZ2JSFOGJF7EFKJVQOZ364-820x530.jpg" alt="" class="wp-image-415206" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/R6LDDZ2JSFOGJF7EFKJVQOZ364-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/R6LDDZ2JSFOGJF7EFKJVQOZ364-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/R6LDDZ2JSFOGJF7EFKJVQOZ364-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/R6LDDZ2JSFOGJF7EFKJVQOZ364-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/R6LDDZ2JSFOGJF7EFKJVQOZ364.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A general view of the International Court of Justice (ICJ) in The Hague, Netherlands, December 9, 2019. REUTERS/Eva Plevier/File Photo</figcaption></figure>



KAMPALA, Feb 10 (Reuters) &#8211; Uganda said on Thursday it considered as &#8220;unfair and wrong&#8221; an International Court of Justice ruling asking it to pay $325 million in reparations to the Democratic Republic of Congo for its role in conflicts in Congo&#8217;s resource-rich Ituri province.



In Wednesday&#8217;s ruling, the court said Uganda must pay the sum in five yearly instalments of $65 million, starting in September this year.



The total award was far below the more than $11 billion Congo had sought. The court also dismissed several claims including broad compensation for macroeconomic damage, saying a clear link between Uganda&#8217;s actions and alleged economic damage had not been demonstrated.



&#8220;While the amount awarded is far less than that sought by the DRC, Uganda nevertheless considers the judgment unfair and wrong, just as the previous 2005 judgment on liability was unfair and wrong,&#8221; the foreign ministry said in a statement.



The long-running dispute was first brought before the United Nations&#8217; highest court in 1999. Rulings by the ICJ, which deals with disputes between states, are final and without appeal.



<h3 class="wp-block-heading" id="h-read-more-uganda-s-night-life-roars-back-after-nearly-two-years-of-covid-restrictions">Read more: <a href="https://www.cnbcafrica.com/2022/ugandas-night-life-roars-back-after-nearly-two-years-of-covid-restrictions/">Uganda’s night life roars back after nearly two years of COVID restrictions</a></h3>



The court ruled in 2005 that Uganda had violated international law by occupying parts of the eastern Congolese province of Ituri with its own troops and supporting other armed groups during a war that raged from 1998 to 2003.



Uganda had said its troops went into Ituri at Congo&#8217;s invitation. The court dismissed that argument in 2005 and said Uganda was an occupying power in the province.



The court ordered the two countries to negotiate reparations but in 2015 Congo returned to the tribunal, saying the talks had stalled.



In Thursday&#8217;s statement, the ministry said Uganda rejected any findings of wrongdoing against its army and that it regretted the ruling had come at a time when the two countries were mending their relations.



&#8220;Uganda continues to discuss the matter with the DRC government for purposes of securing a lasting and mutually acceptable solution,&#8221; it said, calling the judgment &#8220;an undue interference in this process and in African affairs generally&#8221;. 



(Reporting by Elias Biryabarema; Writing by George Obulutsa; Editing by Gareth Jones)

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Uganda says ICJ ruling awarding DR Congo reparations is unfair

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



NAIROBI, Feb 10 (Reuters) &#8211; Kenya&#8217;s central bank has invited the public for views on the potential introduction of a digital currency, in a shift from its original opposition to crypto assets.



The East African country pioneered mobile money payments with Safaricom&#8217;s M-Pesa in 2007, but its central bank has not issued a digital currency due to concerns about the risks.



The risks included commercial banks being constrained by movement of deposits into the digital currency and financial exclusion of those without access to technological infrastructure or knowledge, the bank said on Thursday.



A digital currency could curb the effectiveness of monetary policy and increase risks of money laundering, the bank said.



<h3 class="wp-block-heading" id="h-read-more-wef-report-warns-of-covid-inequalities-fueling-social-tensions-across-the-globe">Read more: <a href="https://www.cnbcafrica.com/2022/wef-report-warns-of-covid-inequalities-fueling-social-tensions-across-the-globe/">WEF report warns of Covid inequalities fueling social tensions across the globe</a></h3>



But the bank also said a digital currency could offer some benefits especially in reducing cross-border payments costs.



&#8220;The balance of risks and benefits of central bank digital currency will vary from one economy to another,&#8221; the bank said in a statement.



For the digital currency to work, the bank said, all countries in the region needed to participate in order to flatten &#8220;the multi-layered correspondent banking structure&#8221; and shorten the payment chains.



<a href="https://www.reuters.com/technology/tanzania-cbank-says-it-is-working-presidents-cryptocurrency-push-2021-06-25">Tanzanian government officials</a> said last year they were working on a directive from the president to prepare for the introduction of digital currencies.



The central bank and other public bodies in Kenya are required to seek views from the public before taking major decisions.



(Reporting by George Obulutsa and Duncan Miriri. Editing by Jane Merriman)

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

Kenya’s central bank tests public opinion about digital currencies

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="481" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-1219327286-820x481.jpg" alt="" class="wp-image-411978" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-1219327286-820x481.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-1219327286-300x176.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-1219327286-153x90.jpg 153w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-1219327286-768x451.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-1219327286-1536x901.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-1219327286-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>NAIROBI, KENYA &#8211; 2020/06/11: Kenyas National Treasury and Planning Cabinet Secretary, Ukur Yatani with the budget briefcase before leaving to Parliament for budget reading 2020/2021.
The budget worth Kenya Shillings 3.2 Trillion seeks to jump start an economy ravaged by the Covid-19 pandemic. (Photo by Billy Mutai/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



NAIROBI, Feb 2 (Reuters) &#8211; Kenya plans to spend an extra 108.5 billion shillings ($956.7 million) in the fiscal year to end June, the finance ministry said, a move that will raise the fiscal deficit to 8.1% of gross domestic product from the initial target of 7.5%.



The extra expenditure will go towards tackling a drought which has hit parts of the country, security and a general election that is scheduled for Aug. 9, the finance ministry said in a supplementary budget seen by Reuters on Wednesday.



If parliament approves the proposals, the national carrier Kenya Airways will get 26.56 billion shillings in new allocation.



<h3 class="wp-block-heading" id="h-read-more-imf-chief-says-omicron-could-dent-global-economic-growth">Read more: <a href="https://www.cnbcafrica.com/2021/imf-chief-says-omicron-could-dent-global-economic-growth/">IMF chief says Omicron could dent global economic growth</a></h3>



The government is injecting $473 million into the ailing airline this fiscal year and next, the Treasury said in December, and will take over $827 million of its debts.



Power distributor Kenya Power will also get 1.7 billion shillings, while 24.7 billion shillings will go towards a fund aimed at cushioning consumers against rising fuel prices by subsidising oil importers, the proposed budget showed.



Lawmakers will have to vote to approve the proposal, or ask the finance ministry to adjust its spending plans.



Finance Minister Ukur Yatani will present the July 2022 to June 2023 spending proposals to parliament next month, after the government brought forward the budget-making process due to the August election.



($1 = 113.4500 Kenyan shillings) 



(Reporting by George Obulutsa; Editing by Duncan Miriri and Jan Harvey)

Kenyas National Treasury and Planning Cabinet Secretary,

Kenya’s budget deficit to widen as Treasury lays out extra spending

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/MB4VWS4IYZJ6NJYF6W66R73764-820x517.jpg" alt="" class="wp-image-415024" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/MB4VWS4IYZJ6NJYF6W66R73764-820x517.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/MB4VWS4IYZJ6NJYF6W66R73764-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/MB4VWS4IYZJ6NJYF6W66R73764-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/MB4VWS4IYZJ6NJYF6W66R73764-768x484.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/MB4VWS4IYZJ6NJYF6W66R73764.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Ugandan musician Douglas Mayanja (Weasel) performs at Levels Lounge after Uganda’s president Yoweri Museveni reopened the economy which permitted bars and musicians to perform amid the coronavirus disease (COVID-19) containment efforts in Kitante suburb of Kampala, Uganda, January 31, 2022. REUTERS/Abubaker Lubowa</figcaption></figure>



KAMPALA, Feb 2 (Reuters) &#8211; Throngs of revellers filled The Levels bar in Uganda&#8217;s capital Kampala, dancing to live music and ordering bottle service to their tables, on Monday night.



Nearly two years after the government shut down bars and nightclubs and banned outdoor musical performances and other entertainment activities to combat COVID-19, the country&#8217;s nightlife is roaring back.



&#8220;Of course Uganda is the life of a party, if you do not party you are not a Ugandan,&#8221; said Vera Muryengye, a consultant, as she sipped a drink. &#8220;It&#8217;s the end of the month, you get your money, get your salary, put the money into circulation. That&#8217;s it, that&#8217;s Uganda.&#8221;



The East African country has one of the world&#8217;s youngest populations and Kampala had a reputation regionally &#8211; pre-pandemic &#8211; for a good night out.



President Yoweri Museveni cited rising vaccination rates when he announced in December that bars and nightclubs would be allowed to reopen in late January.



<h3 class="wp-block-heading" id="h-read-more-rwanda-re-opens-border-with-uganda-but-says-grievances-remain">Read more: <a href="https://www.cnbcafrica.com/2022/rwanda-re-opens-border-with-uganda-but-says-grievances-remain/">Rwanda re-opens border with Uganda but says grievances remain</a></h3>



Parts of Uganda&#8217;s economy were gradually reopened over the past several months, but Museveni, a teetotaller, had kept bars closed despite pressure from the industry.



The government argued the tough rules stemmed the spread of the virus and helped keep the number of COVID-19 deaths low. The country has so far recorded around 162,000 cases of COVID-19 and about 3,500 deaths.



Raymond Karemera, head of marketing at Nomad Bar and Grill in a neighbourhood of Kampala that is often likened to Las Vegas, said many bars struggled to avoid bankruptcy as they continued to pay security and electricity expenses while closed.



&#8220;It was a very horrible time for us,&#8221; he said.



On a recent night at Nomad, as people raised glasses of wine and whiskey for toasts, one patron shouted &#8220;Kampala is back! We love you, wee!&#8221; 



(Reporting by Francis Mukasa, writing by Elias Biryabarema; editing by Maggie Fick and Jane Wardell)

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Uganda’s night life roars back after nearly two years of COVID restrictions

<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>



LUSAKA, Feb 1 (Reuters) – Zambia expects an International Monetary Fund (IMF) debt health check to be finalised this month, to strike a restructuring deal with creditors by April and get a formal agreement with the fund signed off in May, its finance minister said.



“I have to be optimistic, because in the absence of optimism where can Zambia go?” Situmbeko Musokotwane told Reuters in an interview on Tuesday. “We are a serious group determined to make sure that this issue of debt that’s been dogging us for years and years, we are determined to put this behind us.”



In 2020, Zambia became the first pandemic-era sovereign default and it is buckling under a debt burden of more than 120% of gross domestic product (GDP). It reached a <a href="https://reut.rs/3gicZL7">staff level deal</a> on a $1.4 billion three-year extended credit facility with the IMF in December and now wants to nail down a formal agreement.



Sketching an ambitious timeline for the restructuring the debt of Africa’s biggest copper producer, Musokotwane said he expected the IMF’s debt sustainability analysis, which forms the basis of the restructuring plans, by the end of February.



Having to renegotiate its debt with a multitude of official and private sector creditors, Musokotwane said he hoped to reach an understanding with them in March or maybe April, which would in turn would pave the way for a formal IMF agreement.



“We’re hoping that we can do this by May of this year,” he told Reuters.



Analysts say the timeline is ambitious as the group of Paris Club creditors and China have yet to form a creditor committee.



China, which has lent heavily to African resource exporters in recent decades, will play a key role in the debt overhaul. <a href="https://www.reuters.com/article/zambia-debt-idAFL1N2R312V">Zambia owes more than $6 billion</a>, or 40% of its total publicly guaranteed and non-guaranteed external debt, to Chinese lenders.



“We have reached out to the Chinese authorities asking them to be part of this process. In principle they have agreed, on the specifics those are details to be worked out,” Musokotwane said. “In the end, I feel very confident that the Chinese authorities and the Chinese institutions that lent us money will play along to get us out of the problems.”



<h2 class="wp-block-heading" id="h-carry-society-along">‘CARRY SOCIETY ALONG’</h2>



Musokotwane announced in December that Zambia had agreed with the IMF to remove unsustainable subsidies on energy and agriculture as part of its reform programme.



“The petroleum sector was in a sense not making sense anymore,” he said, adding that the cost of fuel subsidies alone used to amount to $800 million a year.



Savings from the ending of subsidies would shift to social spending, including education, something also advocated by the IMF, but no timeline has been set for phasing out support.



“You must not be too fast. You must carry society along with you, because these are shocks that we are introducing to society before they actually see the benefits of what we are doing,” Musokotwane said.



High global copper prices, meanwhile, should help attract the investment needed to allow Zambia to boost its annual production to about 3 million tonnes over the coming decade from an estimated 800,000 tonnes in 2021.



First, however, the government must find an investor to take a minority stake in Mopani Copper Mines and fund a planned expansion, Musokotwane said.



State-owned mining investment firm ZCCM-IH bought Mopani from Glencore a year ago.



The government is also seeking to end a dispute over Konkola Copper Mines (KCM).



Zambia’s previous government handed control of KCM to a provisional liquidator in May 2019, triggering a legal battle with India’s Vedanta Resources, KCM’s parent.



“There is a lot that is going on behind the scenes. I cannot go into details of those, because the negotiations are very delicate. But I can assure you that it is happening.”



(Reporting by Chris Mfula in Lusaka, Karin Strohecker in London and Joe Bavier in Johannesburgh; Additional reporting by Rachel Savage in London; Editing by David Clarke)

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Zambia aims for IMF debt deal in May – FinMin

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/TCKUIW7CHRO2RMH5MXMDLMBDDM-820x547.jpg" alt="" class="wp-image-414999" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/TCKUIW7CHRO2RMH5MXMDLMBDDM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/TCKUIW7CHRO2RMH5MXMDLMBDDM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/TCKUIW7CHRO2RMH5MXMDLMBDDM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/TCKUIW7CHRO2RMH5MXMDLMBDDM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/TCKUIW7CHRO2RMH5MXMDLMBDDM.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>The logo of French oil and gas company Total is seen in Rueil-Malmaison, near Paris, France, March 2, 2021. REUTERS/Benoit Tessier</figcaption></figure>



KAMPALA, Feb 1 (Reuters) &#8211; TotalEnergies and its partner China National Offshore Oil Corporation have reached a deal with Uganda and Tanzania to invest more than $10 billion in developing crude oil production in East Africa, the French group said on Tuesday.



&#8220;In the name of the joint venture partners and&#8230; TotalEnergies, I declare the final investment decision for the Lake Albert development project,&#8221; TotalEnergies Chief Executive Patrick Pouyanne told a ceremony to announce the plan broadcast on television.



The project will cover the development of oil fields, processing facilities and a pipeline network in Uganda, plus an export pipeline through Tanzania to carry landlocked Uganda&#8217;s crude to a port on the Indian Ocean.



Uganda discovered crude oil reserves near its border with the Democratic Republic of Congo in 2006, but production has been repeatedly delayed by disagreements between the government and oil firms over tax and development strategy, and a lack of infrastructure.



TotalEnergies said on its Twitter account earlier on Tuesday that the announcement signified a commitment by the oil companies to invest upwards of $10 billion in the project.



<h3 class="wp-block-heading" id="h-read-more-oil-trader-vitol-snaps-up-uk-s-vivo-energy-in-2-3-bln-deal">Read more: <a href="https://www.cnbcafrica.com/2021/oil-trader-vitol-snaps-up-uks-vivo-energy-in-2-3-bln-deal/">Oil trader Vitol snaps up UK’s Vivo Energy in $2.3 bln deal</a></h3>



&#8220;This milestone puts us on the path to first oil in 2025,&#8221; Minister of Energy and Mineral Development Ruth Nankabirwa Ssentamu said in a speech ahead of the signing.



Close to 160,000 jobs are expected to be created during the project&#8217;s development, Ssentamu said.



At the same event TotalEnergies also signed a memorandum of understanding with Uganda to collaborate on &#8220;large scale renewable energy development projects&#8221;, Energy Ministry Permanent Secretary Irene Bateebe said.



Under that agreement TotalEnergies will develop solar, wind, geothermal and other renewable technology power projects with a combined installed electricity output capacity of 1 gigawatt by 2030. Uganda currently has generating capacity of about 1.2 GW.



Government geologists estimate Uganda&#8217;s gross reserves at 6 billion barrels, while recoverable oil is seen at 1.4 billion barrels.



(Reporting by Elias Biryabarema; Editing by George Obulutsa and Jan Harvey)

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