<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="554" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/PGPKHRAYHZNV3C4WWLBTRWVMEA-820x554.jpg" alt="" class="wp-image-412188" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/PGPKHRAYHZNV3C4WWLBTRWVMEA-820x554.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/PGPKHRAYHZNV3C4WWLBTRWVMEA-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/PGPKHRAYHZNV3C4WWLBTRWVMEA-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/PGPKHRAYHZNV3C4WWLBTRWVMEA-768x519.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/PGPKHRAYHZNV3C4WWLBTRWVMEA.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A man walks past a Safaricom shop, a mobile telecommunication provider in Kenya&#8217;s capital Nairobi November 15, 2015. REUTERS/Noor Khamis/File Photo</figcaption></figure>



NAIROBI, Sept 17 (Reuters) &#8211; Kenyan telecoms operator Safaricom,, said on Friday it had submitted a proposal to Kenya Power for the installation of a $300 million smart meter system at the utility, confirming documents seen by Reuters.



The telecoms company said it was now waiting for the utility&#8217;s response, adding that it would install and operate the smart meter system for eight years if the deal is approved, before transferring it to Kenya Power.



Kenya Power has said it had received the proposal from Safaricom and was reviewing it in line with internal processes.



The state-controlled utility, the main power distributor in the East African country, suffers from annual power system losses of 23.46% on its transmission network, well above the global benchmark of 15%.



The system proposed by Safaricom will use the Internet of Things, which allows real time monitoring of the grid, to cut the power system losses by eight percentage points in two years, the company said.



<h3 class="wp-block-heading" id="h-read-more-imf-board-approves-further-407-mln-disbursement-for-kenya">Read more: <a href="https://www.cnbcafrica.com/2021/imf-board-approves-further-407-mln-disbursement-for-kenya/">IMF board approves further $407 mln disbursement for Kenya</a></h3>



&#8220;Technology has the potential to address many of our customers&#8217; business needs,&#8221; Safaricom said.



Safaricom proposes to split the additional revenue generated from lower system losses, projected at 71.7 billion Kenyan shillings ($651.23 million) over eight years, with 75% going to Safaricom and 25% to Kenya Power.



The telecoms operator will shoulder the cost of installing 330,000 consumer, transformer and feeder smart meters.



Kenya Power, which was once considered a blue chip on the Nairobi bourse, has slid into the red in recent years partly because of the power system losses, sending its shares close to their all time lows. The company also has a heavy debt burden.



The Kenya Private Sector Alliance (KEPSA), an umbrella lobby of private firms, supports a debt restructuring programme for the utility, and a substantial reduction of its system losses to improve its commercial performance, it said in a statement on Friday, citing Kenya Power&#8217;s strategic importance to the economy.



($1 = 110.1000 Kenyan shillings) 



(Reporting by Duncan Miriri; editing by Jason Neely, Alexander Smith and Jane Merriman)

PGPKHRAYHZNV3C4WWLBTRWVMEA

Safaricom confirms $300 mln Kenya Power smart meter proposal

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/800px-Zambia_3.jpg" alt="" class="wp-image-412116" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/800px-Zambia_3.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/800px-Zambia_3-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/800px-Zambia_3-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/800px-Zambia_3-768x512.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption>Nchanga copper mine near Chingola, Zambi Photo: via Wikimedia Commons</figcaption></figure>



LUSAKA, Sept 14 (Reuters) &#8211; Zambia&#8217;s newly-appointed mines minister said on Tuesday that the government will ensure stability and predictability in the mining sector, seeking to allay fears of royalty hikes.



Paul Kabuswe also said the government must root out corruption in mining, which is the engine of Zambia&#8217;s economy.



&#8220;We may not do everything in the coming budget but I can assure you that sanity will be brought back to the mining sector before 2026,&#8221; Kabuswe said.



Zambian bonds and the kwacha currency rallied after the election of businessman President Hichilema, who named Kabuswe mines minister last week.



<h3 class="wp-block-heading" id="h-read-more-zambia-s-new-finance-minister-to-prioritise-imf-talks">Read more: <a href="https://www.cnbcafrica.com/2021/zambias-new-finance-minister-to-prioritise-imf-talks/">Zambia’s new finance minister to prioritise IMF talks</a></h3>



&#8220;We have to make policies that will not disadvantage the investors. We have to have stability in the economy so that the investor is happy,&#8221; Kabuswe told a press briefing.



Africa&#8217;s second-largest copper producer, which defaulted on its sovereign debt last year, has benefited from an increase in copper prices to record highs.



Kabuswe said Hichilema would oversee Zambia&#8217;s policy on Mopani Copper Mines and Konkola Copper Mines (KCM), two critical operations his new administration must tackle.



Zambia took on $1.5 billion in debt to buy Mopani from Glencore in January, and is yet to find a new investor for it.



The previous administration handed control of KCM to a provisional liquidator in May 2019, triggering an ongoing legal dispute with its former owner Vedanta. 



(Reporting by Chris Mfula in Lusaka; Writing by Helen Reid in Johannesburg; Editing by Alexander Smith)

800px-Zambia_3

Zambia says it will restore ‘sanity’ to rattled mining sector

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="556" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GEMBJIUBG5O5FBB5GNO2BYNCNE-820x556.jpg" alt="" class="wp-image-412029" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GEMBJIUBG5O5FBB5GNO2BYNCNE-820x556.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GEMBJIUBG5O5FBB5GNO2BYNCNE-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GEMBJIUBG5O5FBB5GNO2BYNCNE-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GEMBJIUBG5O5FBB5GNO2BYNCNE-768x521.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GEMBJIUBG5O5FBB5GNO2BYNCNE.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>President Hakainde Hichilema casts his ballot in Lusaka, Zambia, August 12, 2021. REUTERS/Jean Ndaisenga/File Photo</figcaption></figure>



LUSAKA, Sept 10 (Reuters) &#8211; Zambian President Hakainde Hichilema said on Friday his new government would implement policies to reduce the fiscal deficit, restore economic growth and review mining policies.



In his first address to a new session of parliament since his election in August, Hichilema said officials would also review agricultural policies, revise electricity prices and reform state power firm Zesco.



Last November Africa&#8217;s second-biggest copper producer became the first country on the continent to default on its sovereign debt during the pandemic, after failing to keep up with payments on its more than $12 billion of international debt.



&#8220;Rebuilding our economy is top on our agenda. We will implement policies to address the fiscal deficit while ensuring that confidence is restored in the markets,&#8221; Hichilema said.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/zambian-opposition-leader-hichilema-wins-2021-presidential-election/">Hichilema faces task of reviving Zambian economy after landslide win</a></h3>



&#8220;We have indeed inherited an economy that is in dire straits and requires bold and decisive action to be taken,&#8221; he said, adding that his government was committed to halting the accumulation of expensive public debt.



Zambia&#8217;s external debt includes about $3 billion in Eurobonds, $3.5 billion in bilateral debt, $2.1 billion owed to multilateral agencies and $2.9 billion in commercial bank debt.



Zambia also owes mining companies more than $1.5 billion in value-added tax (VAT) refunds, an issue that soured relations between the government and the mining sector.



The VAT refunds are the top priority for the industry, said Zambia&#8217;s Chamber of Mines CEO Godwin Beene, who represents mining companies including First Quantum Minerals&#8217; Kansanshi Mining and Barrick Gold&#8217;s Lumwana Mining.



<h2 class="wp-block-heading" id="h-game-changer-for-mining-companies">&#8216;GAME-CHANGER&#8217; FOR MINING COMPANIES</h2>



Hichilema&#8217;s market-friendly stance will attract new investment into Zambia&#8217;s mining sector and help boost the country&#8217;s copper production at a propitious time of near record-high copper prices, Beene said.



&#8220;This election was a game-changer for the industry,&#8221; he told Reuters.



Hichilema&#8217;s predecessor, Edgar Lungu, had pushed for greater state ownership of mines. State mining investment company ZCCM-IH took on $1.5 billion in debt in January to take over Glencore&#8217;s majority stake in the Mopani copper mine.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/zambias-new-finance-minister-to-prioritise-imf-talks/">Zambia’s new finance minister to prioritise IMF talks</a></h3>



The previous government was looking for an investor to fund the mine&#8217;s expansion, which would boost output from 34,000 tonnes of copper a year to 150,000 tonnes.



Zambia as a whole hopes to increase its annual copper output to 2 million tonnes by 2026, new finance minister Situmbeko Musokotwane said last month. The country produced 882,000 tonnes last year.



Hitting that target will require significant investment in Mopani and other mines across Zambia, as well as in exploration. 



(Reporting by Chris Mfula; Additional reporting by Helen Reid; Writing by Alexander Winning and MacDonald Dzirutwe; Editing by Edmund Blair and Gareth Jones)

GEMBJIUBG5O5FBB5GNO2BYNCNE

Zambian president promises to cut deficit, review mining policies

<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, Sept 9 (Reuters) &#8211; Kenya&#8217;s economic output contracted for the first time in nearly three decades last year, pummeled by the impact of the coronavirus crisis that hit key sectors like tourism, official data showed on Thursday.



Growth slid to -0.3% last year from 5.0% in 2019, the finance minister said at the release of the annual economic survey. The last time East Africa&#8217;s largest economy contracted was in 1992.



&#8220;The (coronavirus) containment measures constrained the economy,&#8221; Ukur Yatani said while launching the survey, whose release was delayed four months due to the pandemic and a rebasing exercise for calculating output.



<h3 class="wp-block-heading" id="h-read-more-kenya-central-bank-says-has-space-to-cut-rates-urges-more-measures">Read more: <a href="https://www.cnbcafrica.com/2021/kenya-central-bank-says-has-space-to-cut-rates-urges-more-measures/">Kenya central bank says has space to cut rates, urges more measures</a></h3>



Annual output as of the end of 2019 went up by 5.3% after the rebasing, the statistics office said, with the year for calculating output being moved to 2016 from 2009.



Economies around the world usually rebase their calculations every 5-10 years to take into account technological changes and other developments. The last rebasing in Kenya was in 2014.



Last year, earnings from tourism slumped 43.9%, Yatani said, while international visitor arrivals dropped by 71.5% on the back of COVID-19 lockdown measures.



Still, Kenya&#8217;s economy fared better than the wider Sub-Saharan Africa region, which recorded a 1.9% contraction in output during the same year.



Yatani attributed that better than average performance to robust expansion in the agriculture sector, which benefited from adequate rainfall that spurred production of food crops and tea.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/kenyas-economy-to-bounce-back-this-year-but-still-vulnerable-world-bank/">Kenya’s economy to bounce back this year but still vulnerable -World Bank</a></h3>



The construction sector also defied the pandemic gloom to grow by 11.8%, the data showed.



Overall growth is expected to rebound to more than 6% this year, Yatani said, as the impact of the crisis starts to ease.



But higher oil prices could curb the growth momentum, Yatani warned, saying that some inflationary pressure is expected to persist well into the second half of this year.



The emergence of new worrying variants of the coronavirus, like the especially contagious Delta, and shortages of vaccines were also casting a shadow on the outlook, the minister said.



&#8220;We are not yet out of the woods,&#8221; said Yatani.



(Reporting by Duncan Miriri Editing by Mark Heinrich)

Kenyas National Treasury and Planning Cabinet Secretary,

COVID-19 pushes Kenya’s economy into first contraction in nearly 30 years

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="527" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-657649320-820x527.jpg" alt="" class="wp-image-411963" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-657649320-820x527.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-657649320-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-657649320-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-657649320-768x494.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-657649320-1536x988.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-657649320-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Somali President Mohamed Abdullahi Mohamed attends the East Africa&#8217;s regional Intergovernmental Authority on Development (IGAD) Special Summit on Somali refugees on March 25, 2017 in Nairobi. / AFP PHOTO / SIMON MAINA (Photo credit should read SIMON MAINA/AFP via Getty Images)</figcaption></figure>



MOGADISHU, Sept 9 (Reuters) &#8211; Somalia&#8217;s two most powerful leaders were locked in a standoff on Wednesday after they named different men to head the intelligence service of the politically unstable nation in the Horn of Africa.



The row between President Mohamed Abdullahi Mohamed and Prime Minister Mohammed Hussein Roble, nominally over a murder investigation, marks an escalation of months of tension between them in a country riven by militant attacks and clan rivalries.



On Monday, Roble suspended Fahad Yasin, director of the National Intelligence Service Agency, saying he had failed to deliver a report on the case of an agent who disappeared in June.



Roble appointed another man, Bashir Mohamed Jama, as interim head of the agency.



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But the president called Roble&#8217;s move unconstitutional and named a third man, Yasin Abdullahi Mohamed, as head on Tuesday.



The president&#8217;s appointee took over at a handover ceremony on Wednesday, the agency said on Twitter. Security around its headquarters was tight, local residents said.



Later on Wednesday Roble appointed former finance minister Abullahi Mohamed Nur as the new internal security minister, his office said in a statement. Nur is currently a lawmaker who has been critical of the president.



Subsequently on Wednesday the president said in a statement that the dismissal of the minister and the appointment of a new one was unconstitutional, making the change &#8220;null and void&#8221;.



On Tuesday, the African Union, the United Nations and foreign donor nations, including Britain and the United States, had urged a de-escalation of the row, asking the two leaders to &#8220;avoid any actions that could lead to violence&#8221;.



Roble and Mohamed had clashed in April, when the president unilaterally extended his four-year term by two years, prompting army factions loyal to each man to seize rival positions in the capital, Mogadishu.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2020/somalia-expects-to-announce-winners-of-first-petroleum-auction-early-2021/">Somalia expects to announce winners of first petroleum auction early 2021</a></h3>



The confrontation was resolved when the president put Roble in charge of security and organising delayed legislative and presidential elections. That process was supposed to be concluded next month but several days ago was pushed back again.



In a statement on Tuesday, the president named Yasin, the man Roble had sacked, as his personal security adviser.



Also on Tuesday, Roble accused Mohamed of &#8220;obstructing effective investigation&#8221; of the case of Ikran Tahlil Farah, the agent who went missing while working in the cyber security department of the intelligence agency.



Her family have said publicly they believe she was murdered, and they hold the agency responsible.



The agency has not responded to the family&#8217;s accusation.



On Wednesday the family filed a case in a military court seeking an arrest warrant for four NISA officials, including the sacked boss Yasin, whom they hold responsible for Farah&#8217;s disappearance, lawmaker Mahad Mohamed Salad told Reuters. 



(Reporting by Abdi Sheikh; Writing by Duncan Miriri; Editing by Mark Porter and Clarence Fernandez)

KENYA-SOMALIA-IGAD-SUMMIT

Somalia on edge as president, PM clash over intelligence chief

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



WASHINGTON, Sept 7 (Reuters) &#8211; The International Monetary Fund&#8217;s executive board on Tuesday approved $567 million in emergency support for Tanzania to help it finance a COVID-19 vaccination campaign and meet the health and social costs of the pandemic, the IMF said in a statement.



The IMF board approved a disbursement of $189 million to Tanzania under its Rapid Credit Facility (RCF), as well as $378 million under the Rapid Financing Instrument (RFI), the global lender said.



The COVID-19 outbreak and associated travel restrictions have led to the collapse of the tourism sector in the East African country, which had denied the existence of the pandemic under the late president, John Magufuli.



<h3 class="wp-block-heading" id="h-read-more-tanzania-turns-to-imf-loan-boosts-government-spending-by-4">Read more: <a href="https://www.cnbcafrica.com/2021/tanzania-turns-to-imf-loan-boosts-government-spending-by-4/">Tanzania turns to IMF loan, boosts government spending by 4%</a></h3>



After his death in March and the takeover by President Samia Suluhu Hassan, Tanzania has started acknowledging the crisis, which caused a major deceleration to 4.8 percent growth in 2020, with growth to remain subdued in 2021.



The IMF said Tanzania needs funds equal to about 1.5 percent of its gross domestic product as authorities implement a comprehensive plan to mitigate the effects of the pandemic, now in a third wave.



The new funding will allow Tanzanian officials to address &#8220;the urgent health, humanitarian, and economic costs&#8221; of the pandemic, the IMF said. It will also help Tanzanian officials mobilize additional support from development partners, it said.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/tanzania-to-request-to-join-covax-vaccine-sharing-facility-who/">Tanzania to request to join COVAX vaccine-sharing facility – WHO</a></h3>



&#8220;Tanzania requires urgent financial assistance,&#8221; said Bo Li, IMF deputy managing director, adding that authorities&#8217; plans for a vaccination campaign and increased health and social spending would help mitigate the impact of the pandemic.



He said it would be critical to ensure that the new funds are spent on fighting the pandemic, and to maintain fiscal and debt sustainability, while preserving financial stability.



It would also be important for authorities to monitor the banking system&#8217;s health in light of increased banking sector vulnerabilities, he said in a statement.



&#8220;Once the crisis abates, the authorities appropriately intend to resume implementing reforms to achieve sustainable and inclusive growth,&#8221; he said. 



(Reporting by Andrea Shalal; editing by Chris Reese and Richard Pullin)

In this photo illustration the International Monetary Fund (

IMF approves $567 mln in emergency support for Tanzania

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-94942899-820x547.jpg" alt="" class="wp-image-411734" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-94942899-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-94942899-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-94942899-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-94942899-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-94942899-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-94942899-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>UNITED STATES &#8211; APRIL 25: Situmbeko Musokotwane, finance minister of Zambia, left, speaks as Mustafa Mkulo, finance minister of Tanzania, center, and Charles Koffi Diby, finance minister of the Ivory Coast, listen during a press briefing in Washington, D.C., U.S., Saturday, April 25, 2009. The global economic crisis may force as many as 90 million more people into extreme poverty this year and make it harder to meet goals to improve health and education, the World Bank and International Monetary Fund said yesterday. (Photo by Joshua Roberts/Bloomberg via Getty Images)</figcaption></figure>



LUSAKA, Aug 27 (Reuters) &#8211; Zambia&#8217;s newly-appointed finance minister on Friday pledged to conclude talks with the IMF on a lending programme by October, as he seeks to pull the southern African country out of its protracted debt crisis.



<a href="https://www.cnbcafrica.com/2021/zambian-opposition-leader-hichilema-wins-2021-presidential-election/">President Hakainde Hichilema, who was elected earlier this month by a landslide</a>, named Situmbeko Musokotwane, an experienced international economist, to a second stint as Zambia&#8217;s finance minister.



The appointment of Musokotwane, who held the same post from 2008 to 2011, was announced three days after Hichilema pledged at his swearing-in ceremony to bring public spending and the budget deficit under control.



&#8220;Unless we do something to the budget, then the budget will be mainly for paying salaries and also servicing debt,&#8221; with nothing left over to invest in developing the country, Musokotwane said in a news conference after his appointment.



Musokotwane &#8211; a former deputy central bank governor who has also held positions with the International Monetary Fund and World Bank &#8211; will face fraught negotiations with multiple creditors on the country&#8217;s $12 billion external debt.



&#8220;The answer is to talk to the people we owe money so that we can pay at a slower pace stretched over a longer period,&#8221; he said.



&#8220;He will be seen as a safe pair of hands,&#8221; Standard Chartered&#8217;s Razia Khan said in a note. &#8220;His experience in dealing with the challenges&#8230; of the global financial crisis, as well as an understanding of the conditions needed for mining investment, will be additional positives.&#8221;



<h2 class="wp-block-heading" id="h-complicated-debt-woes">COMPLICATED DEBT WOES</h2>



Zambia, Africa&#8217;s second-biggest copper producer, became Africa&#8217;s first pandemic-era sovereign default in November after failing to keep up with international debt servicing payments.



Of its foreign debt, some $3 billion is in Eurobonds, $3.5 billion is bilateral debt, $2.1 billion is owed to multilateral lending agencies such as the IMF, and $2.9 billion to commercial banks.



Complicating things further, about a quarter of the total is held by either China or Chinese entities via deals that have strict secrecy clauses. That has rendered talks for IMF debt relief particularly tough.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/zambia-starts-voting-in-presidential-election-seen-too-close-to-call/">Zambia starts voting in presidential election seen too close to call</a></h3>



Zambia&#8217;s government borrowed too much during boom times last decade, and was then hit by a fall in commodity prices, triggering a recession exacerbated by the impact of the COVID-19 pandemic.



Hichilema beat incumbent Edgar Lungu in the Aug. 12 election, his sixth run for the presidency and Zambia&#8217;s third peaceful change of power to an opposition party since independence from Britain in 1964.



The country&#8217;s dollar-denominated sovereign bonds have since rallied, reflecting market optimism in a solution to its debt woes.



The bonds did not immediately react to the new appointment, but they have added around 11 cents across the curve since Hichilema&#8217;s win, with the spread of the debt over safe-haven U.S. Treasuries narrowing to 1,961 points this week, the lowest since March 2020. 



(Additional reporting by Wendell Roelf in Cape Town and Karin Strohecker in London Writing by Tim Cocks Editing by John Stonestreet and Peter Graff)

Situmbeko Musokotwane, finance minister of Zambia, left, spe

Zambia’s new finance minister to prioritise IMF talks

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="518" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/E3CTRSVOPRKWXLGQKPUWB7O6NQ-820x518.jpg" alt="" class="wp-image-411637" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/E3CTRSVOPRKWXLGQKPUWB7O6NQ-820x518.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/E3CTRSVOPRKWXLGQKPUWB7O6NQ-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/E3CTRSVOPRKWXLGQKPUWB7O6NQ-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/E3CTRSVOPRKWXLGQKPUWB7O6NQ-768x486.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/E3CTRSVOPRKWXLGQKPUWB7O6NQ.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>3D printed Facebook and WhatsApp logos and keyboard buttons are placed on a computer motherboard in this illustration taken January 21, 2021. REUTERS/Dado Ruvic/File Photo</figcaption></figure>



ADDIS ABABA, Aug 23 (Reuters) &#8211; Ethiopia has begun developing its own social media platform to rival Facebook , Twitter and WhatsApp, though it does not plan to block the global services, the state communications security agency said on Monday.



Ethiopia has been engulfed since last year in an armed conflict pitting the federal government against the Tigray People&#8217;s Liberation Front (TPLF), which controls the Tigray region in the country&#8217;s north.



Supporters of both sides have waged a parallel war of words on social media.



The government wants its local platform to &#8220;replace&#8221; Facebook, Twitter, Whatsapp and Zoom, the director general of the Information Network Security Agency (INSA), Shumete Gizaw, said.



<h3 class="wp-block-heading" id="h-read-more-whatsapp-delays-privacy-update-over-user-confusion-and-backlash-about-facebook-data-sharing">Read more: <a href="https://www.cnbcafrica.com/2021/whatsapp-delays-privacy-update-over-user-confusion-and-backlash-about-facebook-data-sharing/">WhatsApp delays privacy update over user ‘confusion’ and backlash about Facebook data sharing</a></h3>



Shumete accused Facebook of deleting posts and user accounts which he said were &#8220;disseminating the true reality about Ethiopia&#8221;.



International human rights groups have criticized the Ethiopian government for unexplained shutdowns to social media services including Facebook and WhatsApp in the past year. The government has not commented on those shutdowns.



Facebook&#8217;s Africa spokesperson, Kezia Anim-Addo, declined to comment on Ethiopia&#8217;s plans and did not respond immediately to a query about Shumete&#8217;s accusations.



But in June, days before national elections, Facebook said it had removed a network of fake accounts in Ethiopia targeting domestic users which it linked to individuals associated with INSA, which is responsible for monitoring telecommunications and the internet.



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Twitter declined to comment. Zoom did not immediately reply to a comment request.



Shumete declined to specify a timeline, budget and other details, but told Reuters: &#8220;The rationale behind developing technology with local capacity is clear &#8230; Why do you think China is using WeChat?&#8221;



He said Ethiopia had the local expertise to develop the platforms and would not hire outsiders to help.



Social messaging app WeChat is owned by China-headquartered Tencent Holdings, is widely used in the country, and is considered to be a strong tool by Chinese authorities for monitoring its population.



Shumete also referred Reuters to comments he made on Friday to a local media outlet in which he accused Facebook of blocking users who were &#8220;preaching national unity and peace&#8221;.



He also told Al-Ain Amharic that authorities were working on the platform to replace Facebook and Twitter, while a trial has already been completed of a platform to replace WhatsApp and Zoom and that platform will soon be operational. 



(Reporting by Dawit Endeshaw Writing by Maggie Fick; Editing by Angus MacSwan)

E3CTRSVOPRKWXLGQKPUWB7O6NQ

Ethiopia to build local rival to Facebook, other platforms

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="457" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/4IHTMKFQ2JM2DK63W2EY62YS3U-820x457.jpg" alt="" class="wp-image-411623" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/4IHTMKFQ2JM2DK63W2EY62YS3U-820x457.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/4IHTMKFQ2JM2DK63W2EY62YS3U-300x167.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/4IHTMKFQ2JM2DK63W2EY62YS3U-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/4IHTMKFQ2JM2DK63W2EY62YS3U-768x428.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/4IHTMKFQ2JM2DK63W2EY62YS3U.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>President of Kenya&#8217;s Court of Appeal Daniel Musinga flanked by Lady Justice Roselyn Nambuye and Lady Justice Hannah Okwengu addresses delegates during the ruling of the Building Bridges Initiatives (BBI) case, a key part of jostling, ahead of a presidential election due next year, at the Court of Appeal in Nairobi, Kenya August 20, 2021. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, Aug 20 (Reuters) &#8211; Kenya&#8217;s Court of Appeal upheld a decision to stop President Uhuru Kenyatta from making broad constitutional changes, limiting his ability to prevent his estranged deputy from succeeding him next year.



The proposed amendments, popularly known as the Building Bridges Initiative (BBI), would have been the biggest change to governance since a new constitution in 2010.



The court upheld a High Court decision in May that declared the proposed reforms illegal on the basis that Kenyatta acted unconstitutionally.



<h3 class="wp-block-heading" id="h-read-more-kenya-s-economy-to-bounce-back-this-year-but-still-vulnerable-world-bank">Read more: <a href="https://www.cnbcafrica.com/2021/kenyas-economy-to-bounce-back-this-year-but-still-vulnerable-world-bank/">Kenya’s economy to bounce back this year but still vulnerable -World Bank</a></h3>



&#8220;The days of (an) unaccountable presidency are long gone,&#8221; said Patrick Kiage, one of the appellate judges, rejecting the government&#8217;s appeal.



The BBI has served as a lightning rod for the rhetoric of politicians jostling ahead of a general election due in August 2022. Kenyatta and Deputy President William Ruto have fallen out and they and their supporters are at odds over the proposals.



&#8220;I don&#8217;t see the need to change the constitution,&#8221; said Mwangi Kiunjuri, a Ruto backer who was sacked from the Cabinet by Kenyatta early last year.



Kenyatta argued that the constitutional overhaul would promote power sharing among competing ethnic groups and was not intended to deny anyone the presidency.



<h3 class="wp-block-heading"> Read more: <a href="https://www.cnbcafrica.com/2021/imf-board-approves-further-407-mln-disbursement-for-kenya/">IMF board approves further $407 mln disbursement for Kenya</a></h3>



The proposed amendments would have created 70 new constituencies and establish several powerful new posts: a prime minister, two deputies and an official leader of the parliamentary opposition.



Ruto&#8217;s Kalenjin ethnic community teamed up with Kenyatta&#8217;s Kikuyu in the last two elections to defeat former Prime Minister Raila Odinga from the Luo, another large ethnic group.



The amendments are partly designed to tame Ruto&#8217;s political ambitions to succeed Kenyatta by making it possible to weave an alliance against him, according to anti-graft campaigner John Githongo.



Ruto has been campaigning vigorously to inherit Kenyatta&#8217;s Kikuyu voting bloc in the central region, some of whom have embraced his message.



&#8220;We don&#8217;t want BBI &#8230; This is about politicians and their search for power,&#8221; said Beatrice Kagure, a college student in the central town of Nyeri.



To win support for his reform drive, Kenyatta proposes to more than double county governments&#8217; allocation to 35% of the budget, to spread more resources to the grassroots. Some critics say the government has struggled to disburse the current 15% counties budgetary allocation on time. 



(Reporting by Duncan Miriri; editing by Grant McCool)

4IHTMKFQ2JM2DK63W2EY62YS3U

Kenyan appeals court upholds order to halt president’s constitutional changes

COVID-19: How can Africa build robust public health systems?

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234712281-820x547.jpg" alt="" class="wp-image-411467" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234712281-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234712281-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234712281-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234712281-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234712281-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234712281-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>TOPSHOT &#8211; President elect Hakainde Hichilema gives a press briefing at his residence in Lusaka, on August 16, 2021. &#8211; Zambian business tycoon and veteran opposition leader Hakainde Hichilema scored a landslide victory on August 16, 2021 in bitterly-contested presidential elections. (Photo by Patrick Meinhardt / AFP) (Photo by PATRICK MEINHARDT/AFP via Getty Images)</figcaption></figure>



LUSAKA, Aug 16 (Reuters) &#8211; Zambian President Edgar Lungu conceded defeat on Monday, after a landslide election win by opposition leader Hakainde Hichilema, who will face the challenge of reviving an economy in turmoil.



With all but one constituency counted, Hichilema had won 2,810,777 votes against Lungu&#8217;s 1,814,201, and the electoral commission declared him president. It marked the country&#8217;s third peaceful handover of power to an opposition party.



&#8220;I will comply with the constitutional provisions for a peaceful transition of power. I would therefore like to congratulate my brother, the president-elect, His Excellency Mr Hakainde Hichilema,&#8221; Lungu, 64, said in a short televised address to the nation.



When the celebrations die down, Hichilema, 59, a former CEO at an accounting firm before entering politics, will need to focus on resuscitating a flagging economy.



Zambia became Africa&#8217;s first pandemic-era sovereign default in November after failing to keep up with its international debt payments.



<h3 class="wp-block-heading" id="h-read-more-zambia-starts-voting-in-presidential-election-seen-too-close-to-call">Read more: <a href="https://www.cnbcafrica.com/2021/zambia-starts-voting-in-presidential-election-seen-too-close-to-call/">Zambia starts voting in presidential election seen too close to call</a></h3>



&#8220;It is in no doubt what the instruction is to all of us (that you) &#8230; elect us to office at a very difficult time,&#8221; he said, hinting at the task ahead as he addressed supporters in the capital, Lusaka &#8220;We will not let you down.&#8221;



The default was driven by depressed commodity prices &#8211; which had pushed Zambia into recession well before the COVID-19 pandemic &#8211; worsened by the pandemic itself.



<h2 class="wp-block-heading">URGES UNITY</h2>



He has some room for manoeuvre as the economy has been buoyed slightly by more favourable copper prices this year &#8211; now hovering around decade highs, driven partly by the boom in electric cars. Last year, Zambia, Africa&#8217;s second biggest copper miner, produced a record output of the metal.



Nonetheless Hichilema urged Zambians to put aside divisions, condemning attacks on property, after a mall named after the ex-incumbent was looted.



&#8220;For years we were victims of retribution. We are not about to &#8230;. start a new wave of violence,&#8221; he said. &#8220;If you want to show higher moral ground &#8230; do not attack them.&#8221;



The election is the culmination of an acrimonious rivalry between the two that in 2017 led Lungu to arrest and imprison Hichilema for refusing to make way for his motorcade. This is Hichilema&#8217;s sixth attempt at the presidency since 2006.



He touted his nationwide success, even in perceived Lungu strongholds, as evidence that Zambia had dodged ethnic division. &#8220;Victory &#8230; (has) been delivered by all the 10 provinces of Zambia &#8230; isn&#8217;t that lovely?&#8221; he said, to applause.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/zambia-counts-votes-as-internet-restriction-remain-in-force/">Zambia counts votes as internet restrictions remain in force</a></h3>



Lungu had cried foul on Saturday, calling the election &#8220;not free and fair&#8221; after violence against ruling Patriotic Front party agents in three provinces, but the size of the margin made it near-impossible to challenge the result in court.



Power has switched from a ruling party to the opposition twice before since independence from Britain in 1964. The latest shift strengthens Zambia&#8217;s democratic credentials and sets an example on a continent with a patchy history of peaceful change.



Wearing the red and yellow of Hichilema&#8217;s United Party for National Development (UPND) Hichilema&#8217;s supporters celebrated, dancing and singing, while drivers honked their horns.



&#8220;This victory is so sweet,&#8221; 37-year-old Jane Phiri said, next to her market stall. &#8220;This spirit of change was bottled up for a long time.&#8221;



Zambia&#8217;s sovereign dollar bonds jumped nearly 2 cents on Monday after the news of Hichilema&#8217;s win. Zambia&#8217;s kwacha currency strengthened nearly 1% against the dollar. International Monetary Fund support is on hold until after the vote, as is debt restructuring &#8211; seen as an early test for a new global plan aimed at easing poor countries&#8217; burdens. 



(Reporting by Chris Mfula; Additional reporting by Karin Strohecker and Tom Arnold in London; Writing by Tim Cocks; Editing by Catherine Evans and Alison Williams)

TOPSHOT-ZAMBIA-ELECTIONS

Hichilema faces task of reviving Zambian economy after landslide win

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/LHBDZXLU7VP67AGWSCZORHJ5DY.jpg" alt="" class="wp-image-411420" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/LHBDZXLU7VP67AGWSCZORHJ5DY.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/LHBDZXLU7VP67AGWSCZORHJ5DY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/LHBDZXLU7VP67AGWSCZORHJ5DY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/LHBDZXLU7VP67AGWSCZORHJ5DY-768x512.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption>Zambia&#8217;s President Edgar Chagwa Lungu addresses the 73rd session of the United Nations General Assembly at U.N. headquarters in New York, U.S., September 25, 2018. REUTERS/Eduardo Munoz//File Photo</figcaption></figure>



LUSAKA, Aug 13 (Reuters) &#8211; Zambia&#8217;s election commission will on Friday start announcing results of a <a href="https://www.cnbcafrica.com/2021/zambia-starts-voting-in-presidential-election-seen-too-close-to-call/">tight presidential vote between top contenders President Edgar Lungu and main rival Hakainde Hichilema</a> that was marred by restrictions on the internet and violence in three regions.



Electoral Commission of Zambia (ECZ) chief electoral officer Patrick Nshindano said the agency would start announcing results from 10 a.m. (0800 GMT). ECZ has said full results will be known within 72 hours after polls closed.



The government declined to comment on the disruptions to the internet, which users said affected several social media sites. Mobile phone networks directed questions to the government. Facebook confirmed it was among those impacted.



&#8220;We know that temporary disruptions of internet services have tremendous, negative human rights, economic and social consequences, and continue to strongly oppose these,&#8221; a Facebook spokesperson said.



Use of social media like WhatsApp is part of everyday life in Zambia and restricting internet access could fuel suspicion about the outcome of the vote, which is seen as too close to call.



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On Twitter and Facebook, Zambians said they were using virtual private networks to get around the restrictions on the internet.



Millions of Zambians turned out to vote, forcing some polling stations to remain open past their official time of closing, pointing to a large voter turnout.



But Lungu, who has been in power since 2015, has already cast doubt on the outcome of the election in three provinces after he accused the opposition of violence on Thursday that killed a ruling party official.



He directed the army to send reinforcements to the provinces, although European and African observers said the vote had so far been largely peaceful.



On the streets of the capital Lusaka businesses were open and citizens went about their daily routine as they waited for results.



The winner of the election faces the task of boosting Zambia&#8217;s flagging economy, which became the continent&#8217;s first country during the coronavirus pandemic to default on its sovereign debt in November. 



(Writing by MacDonald Dzirutwe; Editing by Mark Potter)

LHBDZXLU7VP67AGWSCZORHJ5DY

Zambia counts votes as internet restrictions remain in force

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234616916-820x547.jpg" alt="" class="wp-image-411398" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234616916-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234616916-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234616916-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234616916-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234616916-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1234616916-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Zambian presidential candidate for the opposition party United Party for National Development (UPND) Hakainde Hichilema gives a press conference at his residence, in Lusaka on August 11, 2021. &#8211; The UPND, the main rival to the ruling Patriotic Front (PF), is eager to tap into mounting disillusionment in the city&#8217;s poorest neighbourhoods, where dissent has grown since the last 2016 poll. (Photo by Patrick Meinhardt / AFP) (Photo by PATRICK MEINHARDT/AFP via Getty Images)</figcaption></figure>



LUSAKA, Aug 12 (Reuters) &#8211; Zambians started voting on Thursday in a showdown between President Edgar Lungu and main opposition rival Hakainde Hichilema that looks too tight to call and comes amid mounting debt and a flagging economy.



Polling opened at 6 a.m. (0400 GMT) with long queues seen at voting booths in the capital Lusaka, which could point to a huge turnout in Africa&#8217;s No. 2 copper producer.



At a voting station in the Kabwata suburb of Lusaka, first time voter Ben Mulenga, 19, said he had arrived two and half hours before voting started because he anticipated long queues.



&#8220;The things that are happening in our country, including the bad state of the economy and the high levels of unemployment need to be addressed,&#8221; said Mulenga, a student at the University of Zambia.



Lungu was among the earliest voters, having brought forward his voting time. Wearing a black leather jacket and a white face mask, Lungu, accompanied by his wife, waved to a cheering crowd as he left in his motorcade.



&#8220;We are winning, otherwise I wouldn&#8217;t have been in the race if we were not winning,&#8221; Lungu told reporters shortly after he voted at a polling station in the Chawama township in Lusaka.



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Some 54% of registered voters are 34 or younger, statistics from the Electoral Commission of Zambia (ECZ) show.



That could help Hichilema, who is facing Lungu for the third time and has placed the economy front and centre of his campaign, political analysts said.



In November, Zambia became the first African state to default on part of its debt during the coronavirus pandemic. It will be among the continent&#8217;s slowest growing economies this year, the International Monetary Fund (IMF) estimates.



Zambia owes in excess of $12 billion to external creditors and spends 30%-40% of its revenues on interest payments on its debt, credit rating firm S&amp;P Global estimates.



In office since 2015, 64-year-old Lungu narrowly defeated Hichilema, the CEO of an accountancy firm before entering politics, in a disputed election the following year.



The president has touted the new road, airport and energy projects he has overseen as laying the groundwork for economic development and growth.



<h3 class="wp-block-heading"> Read more: <a href="https://www.cnbcafrica.com/2021/zambia-imf-make-progress-towards-bail-out-loan-programme/">Zambia, IMF make progress towards bail-out loan programme</a></h3>



His push for greater state control over the mining sector &#8211; an approach that has sparked fears of resource nationalism among international investors &#8211; will create jobs, he says.



&#8220;The challenge we have is the economy and we are doing our best to ensure that the challenge is faced head on,&#8221; Lungu said during his final virtual campaign rally on Wednesday.



But so far his debt-financed infrastructure splurge has failed to pay economic dividends, and unemployment remains high.



That has left him open to attack from Hichilema.



&#8220;So much money was borrowed at a very high cost and this is frustrating development efforts,&#8221; Hichilema, popularly known as HH, told a news conference on Wednesday. 



(Writing by MacDonald Dzirutwe, Editing by Joe Bavier and Raju Gopalakrishnan)

ZAMBIA-POLITICS-ELECTIONS-UPND

Zambia starts voting in presidential election seen too close to call

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KIGALI, Aug 3 (Reuters) &#8211; Rwanda raised $620 million through a 10-year Eurobond, the finance ministry said late on Monday, part of which will go towards retiring an outstanding dollar bond.



Like global economies, the East African nation has experienced a surge in public debt in the wake of the coronavirus crisis, which hit revenues and forced the government to borrow more.



<h3 class="wp-block-heading" id="h-read-more-nigeria-short-lists-banks-for-eurobond-sale">Read more: <a href="https://www.cnbcafrica.com/2016/nigeria-short-lists-banks-for-eurobond-sale/">Nigeria short lists banks for Eurobond sale</a></h3>



Total debt climbed by 13% last year, driving the overall level to 71% of GDP, which is expected to jump to 79.7% at the end of this year, the finance ministry said in May.



Still, investors piled into the latest issue, offering $1.6 billion in total. The eventual interest rate for the bond was 5.5%, the ministry said.



&#8220;The lower yield of this issue will result in a reduction in our annual interest payments over the next 10 years, strongly contributing to our debt sustainability strategy,&#8221; said the central bank governor, John Rwangombwa.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2018/ghana-eurobond-sale/">Ghana looks to Asia for next Eurobond sale</a></h3>



Bond proceeds will be used to pay off creditors of the existing Eurobond when it matures in May 2023, while the rest will fund economic recovery programs.



The government predicts that the economy will grow by 5.1% this year, after contracting by 3.4% last year, as the COVID-19 pandemic starts to ease. 



(Reporting by Clement Uwiringiyimana Editing by Duncan Miriri and Clarence Fernandez)

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Safaricom confirms $300 mln Kenya Power smart meter proposal

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