<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/istockphoto-1250489640-640x640-1.jpg" alt="" class="wp-image-400524" width="647" height="364" 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: 647px) 100vw, 647px" /><figcaption>Photo: via Getty Images</figcaption></figure>



NAIROBI, April 23 (Reuters) &#8211; Ethiopia&#8217;s finance ministry signed a $907 million financing agreement with the World Bank on Friday geared towards improving access to financing, the fight against COVID-19 and electricity investment, it said.



Some $700 million was a loan and $207 million a grant, the ministry said in a statement.



The ministry said that $200 million will go towards small and medium businesses affected by the pandemic with the aim of easing their financing challenges.



Another $207 million will be for the deployment of COVID-19 vaccines and the remaining $500 million will be invested in efforts to increase access to electricity in the Horn of Africa nation.



Like other countries around the world, Ethiopia&#8217;s economy has been hit hard by the pandemic.



In February, the International Monetary Fund said that Ethiopia&#8217;s economic growth is projected to be 2% in 2020/21, largely due to the effects of the coronavirus, but it is expected to rebound to 8.7% in 2021/22 in line with a global recovery.



(Reporting by Nairobi newsroom; Writing by Omar Mohammed; Editing by Andrew Cawthorne and Emelia Sithole-Matarise)

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Ethiopia signs $907 mln financing pact with World Bank

<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/TANOVO4TY5PNFDOMLWXUNQS3NM-820x563.jpg" alt="" class="wp-image-402410" width="839" height="576" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/TANOVO4TY5PNFDOMLWXUNQS3NM-820x563.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/TANOVO4TY5PNFDOMLWXUNQS3NM-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/TANOVO4TY5PNFDOMLWXUNQS3NM-768x527.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/TANOVO4TY5PNFDOMLWXUNQS3NM-1536x1055.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/TANOVO4TY5PNFDOMLWXUNQS3NM-scaled.jpg 2048w" sizes="auto, (max-width: 839px) 100vw, 839px" /><figcaption>A Chad army tank is seen on the street, as fighters from the rebel Front for Change and Concord in Chad (FACT) appeared to be moving toward the capital according to the United States, in N&#8217;djamena, Chad April 19, 2021. REUTERS/Stringer</figcaption></figure>



NAIROBI, April 21 (Reuters) &#8211; An armed group has taken control of a county in western Ethiopia, the state-appointed Ethiopian Human Rights Commission said, citing reports that civilians had been killed and public servants kidnapped.



The commission said it had received reports that Sedal Woreda, in the Kamashi Zone of the western Benishangul-Gumuz Region, was &#8220;under near full control of an armed group as of April 19&#8221;. It did not say which armed group it was referring to.



The woreda, or county, is home to around 25,000 people, the commission said in the statement issued late on Wednesday.



Local officials were not immediately available for comment.



The region is home to the strategically important Great Ethiopian Renaissance Dam, a $4 billion project that Ethiopia says is key to its economic development and power generation but has caused fears in Egypt and Sudan over disruptions in supplies of water from the Nile.



Benishangul-Gumuz has seen a surge of ethnic violence in recent months, including an attack in December that killed more than 200 civilians. The region is home to many ethnic groups, including the Gumuz, Agaws and Shinasas and the Amhara, and has seen increasingly bloody attacks on civilians.



&#8220;Residents who have fled the area told EHRC that the armed group has burned down and looted public and private property and that the woreda (county) administration and local police have fled the area. There are also reports that civilians have been killed and public servants have been kidnapped,&#8221; the commission said in a statement.



&#8220;According to residents and officials EHRC spoke to, a small contingent of the regional security force in the vicinity is outnumbered,&#8221; the commission said.



Ethiopia is battling to contain multiple outbreaks of ethnic and political violence ahead of national elections in June.



Violence in a separate area last week killed at least 50 people from Ethiopia&#8217;s two largest ethnic groups, the Oromo and Amhara. Residents of Bahir Dar, Amhara&#8217;s regional capital, held a fourth day of protests against the killings.



&#8220;Over the past three years there has been identity-based attacks, killing and displacement of Amharas. Those who are responsible should be held accountable,&#8221; said protester Asres Mare. The regional government-run Amhara Media Corporation also reported protests in the towns of Gondar and Debre Berhan. 



(Reporting by Nairobi newsroom, Editing by George Obulutsa and Timothy Heritage)

U.S. says Chad rebels heading towards capital from north

Armed group takes control of county in western Ethiopia – rights commission

<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/29655482878_81b288e1d2_b-820x523.jpg" alt="" class="wp-image-402278" width="838" height="534" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/29655482878_81b288e1d2_b-820x523.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/29655482878_81b288e1d2_b-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/29655482878_81b288e1d2_b-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/29655482878_81b288e1d2_b.jpg 1024w" sizes="auto, (max-width: 838px) 100vw, 838px" /><figcaption>Photo: via Flickr</figcaption></figure>



April 21 (Reuters) &#8211; Mozambique President Filipe Nyusi said on Wednesday the government will work to restore peace in the country after a deadly militant attack last month near multi-billion-dollar gas projects backed by global oil companies.



&#8220;We will make all efforts to return peace to our country, in particular in the north, in Cabo Delgado which in recent years has been the target of terrorist attacks,&#8221; he said during an address to the Mozambique Mining, Energy and Oil and Gas conference in Maputo.



Militants attacked the coastal town of Palma on March 24, in a district near liquefied natural gas (LNG) projects that are meant to transform Mozambique&#8217;s economy. The army managed to secure the town nearly two weeks later.



France&#8217;s Total called off the planned resumption of construction at its $20 billion project due to the violence, and sources said it pulled all its staff from the site. It is unclear when construction on the project will resume.



Exxon has yet to give final approval for its nearby Rovuma LNG project. The U.S. oil major delayed its final investment decision last year due to the COVID-19 pandemic and the ensuing price shock in oil and gas markets as demand slumped.



The stakes are high for Mozambique. Nyusi said peace is a &#8220;fundamental condition&#8221; for the development of the projects, and called on all stakeholders to overcome this crisis.



Nyusi said the government foresees &#8220;direct benefits&#8221; of more than $100 billion dollars from the gas projects, which will diversify the state&#8217;s income base and allow for reinvestment in other sectors.



The projects are expected to generate 70,000 formal jobs over 20 years from 2022, he added. 



(Reporting by Victoria Waldersee and Sergio Goncalves in Lisbon, writing by Helen Reid in Johannesburg, editing by Emma Rumney and Jason Neely)

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Mozambique’s Nyusi vows to restore peace in gas-rich Cabo Delgado

THE HAGUE, April 20 (Reuters) &#8211; Lawyers for the Democratic Republic of Congo on Tuesday told the International Court of Justice that they are seeking $4.3 billion in reparations payments from neighbouring Uganda for its role in the conflicts in the country&#8217;s mineral-rich Ituri province.



The U.N. court, known as the World Court, is holding hearings this week in the long-running dispute between Congo and Uganda over damages caused from 1998-2003.



Congo&#8217;s representative before the court, Paul-Crispin Kakhozi Bin-Bulongo, told the judges that the damage done to his country by Uganda during the over five-year conflict in Ituri was of &#8220;incommensurate magnitude&#8221; and said Uganda had not negotiated in good faith during reparations talks.



The case was first brought before the court in 1999 and in 2005 the ICJ ruled that Uganda had violated international law by occupying parts of Ituri with its own troops and supporting other armed groups in the area during the conflict. It also ruled that Congo had violated international law with an attack on the Ugandan embassy in Kinshasa.



The court ordered the African neighbours to negotiate mutual reparations but in 2015 Congo returned to the U.N. court saying the talks were not progressing. After setting up a commission of experts to help it assess damage amounts, the court is holding hearings on the issue this week.



Uganda will present its case and its reparation demands later in the week. 



(Reporting by Stephanie van den Berg, editing by Ed Osmond)

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Congo seeks over $4 billion in reparations from Uganda at World Court

<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/8779642245_02c8778bf9_b-820x546.jpg" alt="" class="wp-image-402118" width="837" height="557" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/8779642245_02c8778bf9_b-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/8779642245_02c8778bf9_b-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/8779642245_02c8778bf9_b-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/8779642245_02c8778bf9_b.jpg 1024w" sizes="auto, (max-width: 837px) 100vw, 837px" /><figcaption>Photo: via Flickr</figcaption></figure>



KITUI, Kenya, April 20 (Reuters) &#8211; When Kenyan farmer Waki Munyalo&#8217;s crop of lentils shrank by three quarters last year because of unusually low rainfall, disaster was averted thanks to a simple remedy that was previously unavailable to most African farmers &#8211; insurance.



Munyalo, a 38-year-old mother-of-three, had taken out an insurance policy with Kenyan start-up Pula, which aims to reach a vast, untapped pool of African farmers grappling with new disruptions linked to climate change.



Munyalo made a claim on her Pula policy and received a compensation payment of 12,000 Kenyan shillings ($110), close to what she would have earned if her crop had flourished.



That meant she could afford school fees for her youngest son. Without the payment, he would have had to drop out.



Farming is the biggest contributor to many African nations&#8217; economic output, including Kenya where 600,000 farmers have taken out policies with Pula in the six years since it launched.



Key to the firm&#8217;s success is affordability: farmers can insure their crops with Pula for as little as $5 to $10.



Across Africa, small-scale farmers who collectively are crucial to feeding the continent are struggling to cope with the impact of climate change on weather patterns and the land on which they depend.



Those challenges, combined with the spread of mobile phone technology, have created the conditions for Pula&#8217;s rapid growth. Looking beyond Kenya, the company has signed up 4.6 million farmers in Nigeria, Zambia, Ethiopia and other African countries.



CEO Thomas Njeru co-founded the company in 2015 with Dutch entrepreneur Rose Goslinga after the pair spotted a gap in the insurance market.



Because of climate change, farmers are having to contend with unpredictable rain patterns, frequent droughts and even the emergence of new pests and diseases, Njeru said.



&#8220;The risk increases because of climate change, increasing the need for farmers to have insurance,&#8221; he said.



To sustain its business while keeping premiums low, Pula uses a mobile phone application to register users, machine learning algorithms to cluster farmers whose land have similar characteristics and digital tools to assess claims in the field, Njeru said.



&#8220;If you use the traditional model of proposal forms and policy documents, the numbers won&#8217;t add up,&#8221; he said. &#8220;To be able to deliver such a low-cost product at that price you have to use technology and most companies don&#8217;t have that capacity.&#8221;



Pula also aggregates demand for farm insurance, serving banks, traditional re-insurers, governments, development agencies, and even fellow tech firms like Safaricom, which has its own platform for farmers.



For that service, Pula does the actuarial risk analysis, insurance placements and negotiations along with physical assessments in the field, he said.



In January, Pula raised $6 million in a funding round led by London-based TLcom Capital, to invest in new markets, strengthen existing products and design new ones. Njeru said the company&#8217;s next targets are Brazil and India. ($1 = 107.9000 Kenyan shillings) 



(Reporting by Edwin Waita, Additional reporting by Nazanine Moshiri and Duncan Miriri; Writing by Duncan Miriri; Editing by Maggie Fick and Estelle Shirbon)

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Kenyan insurer Pula offers lifeline to African farmers hit by climate change

<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1180612994-612x612-1.jpg" alt="" class="wp-image-401692" width="664" height="373" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1180612994-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1180612994-612x612-1-300x169.jpg 300w" sizes="auto, (max-width: 664px) 100vw, 664px" /><figcaption>Photo: Getty Images/iStockphoto</figcaption></figure>



KAMPALA, April 14 (Reuters) &#8211; Uganda&#8217;s cabinet has approved a draft mining law that would allow the government to own shares in private mining operations and impose steep penalties for violations in the sector, including prison terms of up to seven years.



The draft law mirrors others in the region, including in Tanzania, where authorities have sought to extract more value from natural resource wealth they see as having unfairly benefited international mining firms at the expense of locals.



The bill will be presented to parliament for debate and eventual passage into law, Sarah Opendi, junior energy and minerals minister said on Wednesday in a statement.



She did not give a timeframe, but now cabinet approval has been given, the law could be sent to parliament as early as next week.



When enacted, it will replace a law that has been in place since 2003.



It will provide for &#8220;state equity participation in large, medium and small scale mining up to a maximum of 15%,&#8221; Opendi said in the statement.



Penalties set out in the draft law include fines of 1 billion shillings ($278,164.12) and custodial sentences of up to seven years for those found guilty of illegal mining and other violations.



Investors would be required to enter production sharing agreements (PSAs) with the government. Previously, companies could apply and be granted mining licences on their own, Opendi said.



President Yoweri Museveni&#8217;s government has been seeking investment in the sector to increase exploitation of resources, such as copper, iron ore, gold, cobalt and phosphates.



Earnings from gold exports jumped to $1.8 billion last year, from $1.2 billion in the previous year.



($1 = 3,595.0000 Ugandan shillings) 



(Reporting by Elias Biryabarema; editing by Duncan Miriri and Babrara Lewis)

3d render Uganda Flag (Close-up)

New law would allow Uganda to take stakes in private mining

<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-5-820x547.jpg" alt="" class="wp-image-401609" width="839" height="560" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-5-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-5-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-5-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-5-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-5.jpg 2000w" sizes="auto, (max-width: 839px) 100vw, 839px" /><figcaption>(Photo by Riccardo Savi/Getty Images for Concordia Summit)</figcaption></figure>



MOGADISHU, April 14 (Reuters) &#8211; Somalia&#8217;s president has signed a controversial law extending his mandate for two years, the state news agency reported, setting the Horn of Africa nation on a collision course with donors who strongly oppose the move.



&#8220;President Mohamed Abdullahi (Farmajo) has tonight signed the direction of one person, one vote law which was unanimously passed by parliament on April 14,&#8221; the statement issued by the Minister of Information Osman A Dubbe late on Tuesday night said.



President Mohamed Abdullahi Mohamed&#8217;s four-year term expired in February without a successor. The new head of state was meant to be chosen by a new crop of legislators, but their own selection was delayed after opponents accused the president of packing regional and national elections boards with his own supporters.



On Monday the lower house of Somalia&#8217;s parliament voted to extend his term but the move was swiftly rejected the House&#8217;s upper chamber. Somalia&#8217;s main donors say they will not support any term extension.



&#8220;The United States is deeply disappointed by the Federal Government of Somalia&#8217;s decision to approve a legislative bill that extends the mandates of the president and parliament by two years,&#8221; said a Tuesday statement by U.S. Secretary of State Antony J. Blinken.



&#8220;It will compel the United States to reevaluate our bilateral relations with the Federal Government of Somalia, to include diplomatic engagement and assistance, and to consider all available tools, including sanctions and visa restrictions.&#8221;



A Tuesday statement by Britain&#8217;s Minister for Africa James Duddridge also warned of unspecified consequences.



&#8220;In the absence of consensus leading to inclusive and credible elections being held without further delay, the international community’s relationship with Somalia’s leadership will change,&#8221; said his statement.



(Reporting by Abdi Sheikh; writing by Katharine Houreld, Editing by William Maclean)

The 2019 Concordia Annual Summit – Day 1

World stocks hit record high as bond yields ease

Understanding Rwanda’s journey to e-mobility

<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/55471061_303.jpg" alt="" class="wp-image-401386" width="840" height="473" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/55471061_303.jpg 700w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/55471061_303-300x169.jpg 300w" sizes="auto, (max-width: 840px) 100vw, 840px" /><figcaption>Photo: via REUTERS</figcaption></figure>



April 11 (Reuters) &#8211; Tanzanian opposition leader Freeman Mbowe called on Sunday for the new government to prioritise a new constitution, reviving calls for limiting presidential powers.



Mbowe, chairman of Chadema, the country&#8217;s main opposition party, said in a speech the current constitution gives “someone the chance to be a dictator or a king&#8221;, adding it should be a government priority to set a timetable and a procedural framwork to change the consitution.



Mbowe also called on President Samia Suluhu Hassan to &#8220;fast track&#8221; her proposal, presented on Tuesday, to form a scientific committee to research COVID-19.



Hassan took office on March 19 following the death of President John Magufuli, who had been Africa’s most prominent COVID-19 sceptic. Magufuli had urged people to shun mask-wearing and denounced vaccines as a Western conspiracy, and the country also stopped reporting data on coronavirus last May.



Magufuli disappeared from public life for several weeks before he died and there were rumours he was that he was ill with COVID-19. Hassan, who served as Magufuli’s deputy for six years, has said he died of heart disease. 



(Reporting by Nairobi newsroom Editing by Frances Kerry)

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Tanzania opposition calls for new constitution, faster COVID-19 research

The health ministry confirmed on 24 March that Burundi’s active coronavirus caseload stood at 1,878 – the highest since the outbreak began in March 2020. Unlike continental peers, which have been experiencing second and third waves of infection in recent months, the current spike in case numbers is technically Burundi’s first. Indeed, official active infections did not exceed 120 during 2020.



Questionable response



While the case increase has been attributed to the government’s efforts to bolster testing capabilities, Burundi still ranks poorly in this metric, with 7,412 tests conducted per million people – one of the lowest on the continent. This, despite testing centres having been established in most provincial urban centres since October 2020. Accordingly, Burundi’s low testing rate can be attributed to the public’s dismissal of the virus, largely as a result of deceased former president&nbsp;<a href="https://www.thesignalroom.com/burundi-passing-on-1553215165-581486560-1519584763/">Pierre Nkurunziza</a>&nbsp;downplaying the domestic outbreak. When&nbsp;<a href="https://www.thesignalroom.com/burundi-the-ascent-of-evariste-1265992196/">President Evariste Ndayishimiye</a>&nbsp;assumed office in June 2020, he largely sustained his predecessor’s rhetoric and disposition towards the virus.



In addition to its dismissive position, the government has failed to implement robust containment regulations. The only restrictions currently in place are the mandatory wearing of a face mask on public transport, the prohibition of public entertainment facilities (such as nightclubs), and the closure of the country’s land borders. Flights to and from Bujumbura International Airport are permitted, but all incoming passengers are required to present a negative PCR test no older than 72 hours and quarantine at a state facility for seven days prior to being tested again.



Polite refusal



The most striking position of the government is its refusal to make use of any coronavirus vaccine, at least for now. Health minister Thaddee Ndikumana indicated in early February that Burundi does not need the vaccine at this time. According to Ndikumana, prevention remains more important than inoculation given that Burundi has a 95 percent recovery rate, and that the country can control the outbreak at present. Ndikumana did allude to the idea that the government would accept the vaccine should it be deemed necessary, but Burundi has yet to formally register with the World Health Organization’s (WHO) COVAX access facility, nor have engagements with manufacturers taken place.



Strengthening ties



Burundi’s refusal to inoculate its population at this time has yet to bring about any notable external criticism, least of all from regional peers, with which the Ndayishimiye government continues to foster increasingly favourable economic, security and diplomatic arrangements. This, following Burundi’s historic isolationism under the tenure of Pierre Nkurunziza.



From Kigali, with love



Foremost among such diplomatic efforts are recent bilateral engagements that indicate improving relations between Rwanda and Burundi since foreign minister Albert Shingiro met his Rwandan counterpart, Vincent Biruta, in October 2020. The meeting marked the first notable attempt to normalise bilateral ties, which have deteriorated in recent years following accusations by Nkurunziza that Rwanda was backing rebel groups to overthrow his administration.



The most significant developments pertaining to the former adversaries have occurred on the economic and security fronts. In terms of the former, reports on 25 February indicated that the governments of Rwanda and Burundi had begun mobilising revenue for the creation of the Akanyaru Multipurpose Dam. Facilities related to the project will cost roughly USD 190 million in total. The reservoir is intended to supply drinking water to 614,200 people in Burundi and Rwanda, and to provide water for the irrigation of 12,474 hectares of agricultural land. Over the longer term, a hydroelectric station will be established at the dam, which is expected to provide electricity for 846,000 people in both countries.



On the security side, Burundian and Rwandan military officials held a meeting at the Bweyeye immigration office in the Mabayi commune of Cibitoke province in mid-March. The dialogue centred on the establishment of an information-sharing framework to bolster cooperation in securing the common frontier.



An old friend



In another strategic bilateral development, reports on 16 February indicated that Tanzanian and Burundian authorities are seeking USD 1.9 billion in funding for a railway project linking the two countries. Funding is being specifically sought for a 190-kilometre rail connection linking the Tanzanian town of Isaka (Shinyanga region) to the Burundian town of Musongati (Rutana province). The connection – and access to the Tanzanian ports – is integral to Burundi’s plans to expand its mining revenue by as much as 47 percent by 2027, which is contingent on the export capacity offered by Tanzanian infrastructure.



Continental wanderlust



Ndayishimiye has also sought to branch out of the East and Central African region.



The president arrived in Equatorial Guinea on 02 November 2020 for a five-day diplomatic visit. He held various meetings with his counterpart, Teodoro Obiang Nguema, to discuss ways to strengthen economic and political ties between the two countries. Crucially, this marked the first time that a Burundian head of state departed the country for more than 24 hours since the&nbsp;<a href="https://www.thesignalroom.com/burundi-a-simmering-political-crisis/">political crisis in 2015</a>.



Then, on 23 March, Ndayishimiye arrived in Egypt for a four-day diplomatic visit, which saw the ratification of agreements relating to tourism, education, culture and communication, as well as the approval of visa exemptions for diplomatic and service passports.



Lifting the veil



The Ndayishimiye government’s diplomatic gains have gone beyond Africa.



In one of the more significant recent gains, the International Organisation of la Francophonie (OIF) on 04 November 2020 ratified Burundi’s full re-entry into the body after placing sanctions against the country in 2016. Following Burundi’s political crisis in 2015, the OIF accused the government of committing myriad human rights abuses, which led to its removal from the multilateral organisation. This resulted in diminished trade and economic cooperation between the 88 OIF members and Burundi. As per the OIF, the decision to resume its relationship with the country followed a formal request by President Ndayishimiye to lift the sanctions to allow for increased multilateral economic support.



More recently, foreign affairs minister Albert Shingiro and several ambassadors of European Union (EU) member countries engaged in diplomatic dialogue on 02 February. This followed the EU’s December 2020 decision to restore diplomatic ties with Burundi after they were suspended for nearly five years. In 2016, the EU suspended political engagement and withheld direct budgetary support to the Burundian government following allegations of human rights abuses committed in 2015. The February round of dialogue concluded with the EU agreeing to resume support for Burundi under the Cotonou Agreement – an overarching framework for EU relations with African, Caribbean, and Pacific (ACP) countries. Participating governments receive support in various areas such as investment, economic development, climate change, poverty eradication, peace and security.



Old guard



That said, just four days later, dozens of EU parliamentarians requested that the ongoing sanctions against Burundi (separate to Burundi’s removal of the Cotonou Agreement) remain in place. In justifying their decision, members of the EU legislature accused the Ndayishimiye administration of <a href="https://www.thesignalroom.com/burundi-mandated-violence-1726441406/">myriad human rights</a> abuses since coming into power.



Indeed, the country’s socio-political environment continues to be defined by violent attacks against the political opposition, and arbitrary arrests. This largely stems from the retention of numerous senior military and state officials from the Nkurunziza administration. Most recently, during a party conference on 24 January, Reverien Ndikuriyo was selected as secretary-general of the ruling CNDD-FDD. The position was previously held by President Ndayishimiye – even after assuming presidential office in June 2020 – who on the same day was elected as chairman of the Council of Elders. Ndikuriyo is considered a political hardliner, whose rhetoric has historically been antagonistic towards the country’s opposition.



The incumbent government’s hostile position towards the opposition is reflected in the fact that over 180 opposition CNL members are currently in prison facilities across the country, with most having been apprehended in the build-up to (and following) the country’s&nbsp;<a href="https://www.thesignalroom.com/burundi-votes-viruses-and-vendettas-266765171/">20 May 2020 general elections</a>. Incidentally, President Ndayishimiye pardoned as many as 5,255 prisoners on 08 March, but all political prisoners – including non-combatants – were excluded. Rather, those with five-year sentences or those with corruption-related offences were released.



Clearing the forest



The government’s fostering of a repressive socio-political environment continues to motivate a low-level insurgency by armed anti-government groups, particularly in Cibitoke province.



Clashes between Burundi National Defence Force (FDNB) personnel and armed militants have continued into 2021, after military officials announced in November 2020 that they aim to “remove all armed elements” in Kibira forest, located in the Mabayi commune of Cibitoke. While armed exchanges have generally remained isolated to the forest, indiscriminate clashes have been reported near more populated areas. Most recently, it appears that state forces have gained the upper hand, with scores of rebels surrendering during the first week of March.



The Signal



Burundi is assessed as being highly vulnerable to a protracted and significant coronavirus outbreak.&nbsp;While there has been a marginal shift in rhetoric in recent weeks by the administration of President Ndayishimiye (such as calling on civilians to get tested regularly), the government continues to downplay the virus’ severity. Accordingly, the public is unlikely to heed these demands, which will continue to deflect from the true extent of Burundi’s outbreak. More concerning is that Burundi is not formally registered with the COVAX global vaccine access facility, which will stall any inoculation effort, should it come under consideration; this in turn could have protracted economic and public health ramifications.



While Burundi is forecast to experience an economic rebound in 2021, there are several downside risks.&nbsp;Following a contraction of 3.2 percent in 2020, the International Monetary Fund (IMF) projects that Burundi will see growth of 3.1 percent in 2021. This forecast is marginally lower than that of the African Development Bank (AfDB), which projects a growth rate of 3.5 percent and then 2.1 percent in 2022. Inflation is also anticipated to decline to 5.4 percent in 2021 from 7.6 percent in 2020. Elsewhere, following measures to increase tax revenue in the 2020/21 Finance Law, and the prospect of a drop in current spending, the overall budget deficit is expected to decrease to 7.9 percent of GDP in 2021 from 8.7 percent in 2020. However, public debt is projected to increase from the 65 percent registered in 2020 to 68.9 percent in 2021. Simultaneously, the current account will continue to run a large deficit, due to the pressure on prices of agricultural raw materials and the revival of imports linked to the economic recovery. These projections face several downside risks, such as any climate-related disruptions to the country’s mainstay coffee and tea sector, a decrease in remittance inflows, and disruptions to economic activity as a result of a protracted coronavirus outbreak. Moreover, given the limited size of Burundi’s formal sector, there are also risks to achieving the touted tax revenue increase. Equally, the decision by the government to not use coronavirus vaccines may exacerbate the already poor investor sentiment that is dampened by regulatory overreach and the state’s poor human rights record.



Repairing and fostering diplomatic relations will remain a policy priority for the Ndayishimiye administration.&nbsp;The government is expected to continue its pursuit of economically beneficial arrangements, predominantly with continental peers. This will be crucial to Burundi’s longer-term economic development, which stagnated under the isolationist regime of Pierre Nkurunziza. In undertaking this objective, Burundi should see an increase in continental trade, additional bilateral development or infrastructure projects, an associated increase in foreign currency, and greater technical support from regional or continental bodies. In the medium term, Burundi’s re-entry into the OIF and Cotonou Agreement should afford greater access to fiscal support channels, which remain largely limited given the country’s high risk of debt distress.



Western partners will remain reluctant to resume direct budget support amid sustained human rights abuses by the government.&nbsp;Until such a time as the United Nations Human Rights Council’s (OHCHR) Commission of Inquiry on Burundi reports that the Ndayishimiye administration has undertaken changes to reduce the prevalence of such abuses, the European Union (EU) will likely retain its current stance. However, a shift in the government’s repressive rule is not anticipated at this time, given that Burundi continues to make positive strides in repairing continental relations and boosting economic cooperation with salient peers (such as Tanzania). Reinforcing this assessment is the ascent of hardliners from the Nkurunziza regime in the current government. Accordingly, Burundi’s socio-political environment will continue to be characterised by the violent persecution of the political opposition, and arbitrary arrests of journalists and civic activists.



The low-level insurgency in Cibitoke province will continue to pose a localised security threat over the medium term.&nbsp;Despite the recent successes, the military has yet to make notable progress in its touted goal of “removing all armed elements” from Kibira forest. This assessment is predicated on the fact that weekly armed exchanges have been reported by local residents – predominantly in the Mabayi commune – since November 2020. Given the relatively limited public information on the conflict, it also remains unclear to what degree the military has incurred any casualties, with local sources reporting the indiscriminate discovery of dead soldiers near the forest. The geographic scope of the conflict is not expected to shift at this time, although areas surrounding Kibira forest will remain at risk of a potential spillover.

BURUNDI-HEALTH-VIRUS

Burundi – Not enough

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1038762-820x546.jpeg" alt="" class="wp-image-401096" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1038762-820x546.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1038762-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1038762-768x511.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1038762.jpeg 1000w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Photo: AFP via Getty Images</figcaption></figure>



JOHANNESBURG, April 7 (Reuters) &#8211; Mozambique has told the international community what support it needs to deal with an Islamic State-linked insurgency, but for reasons of sovereignty it will tackle some aspects of the problem unassisted, its president said on Wednesday.



Filipe Nyusi was speaking two weeks after an attack by insurgents on the coastal town of Palma, near natural gas projects worth tens of billions of dollars that are meant to transform the southern African country&#8217;s economy.



Southern African bloc SADC is holding meetings on Wednesday and Thursday to consider a regional response to the insurgency, while the United States already has a small Army Special Forces team in Mozambique on a training mission.



The government has said dozens died in the latest assault, and aid groups believe tens of thousands were displaced. French energy major Total withdrew all staff from its Afungi site outside Palma when the militants appeared to be approaching, but the army has since said the town is secure.



&#8220;We know in which areas we need support and which areas are up to us, Mozambicans, to solve,&#8221; Nyusi said in an address broadcast on state TV station TVM that did not specify what issues he would seek international help for.



&#8220;Those who arrive from abroad will not replace us, they will support us. This is not about pride, it&#8217;s about sovereignty.&#8221;



No war could be won &#8220;if it isn&#8217;t clear from the beginning what can be done by the country itself and what can be done by allies,&#8221; he added.



Islamic State-linked insurgents have been increasingly active since 2017 in the northern Cabo Delgado province where Palma is located, although it is unclear whether they have a unified aim.



Reuters has not been able to verify accounts about the attack on Palma independently, as most means of communication with the town were cut off after it began.



Nyusi said those who had escaped the violence carried &#8220;traumas that will forever mark their lives&#8221;.



The country&#8217;s main opposition party, Renamo, this week urged the government to seek overseas help to fight the militants.



Former colonial power Portugal has said it is ready to send 60 soldiers to Cabo Delgado help train Mozambican forces but that a bilateral agreement on the mission was still being finalised.



Portuguese opposition lawmakers want their government to persuade Mozambique to accept more international assistance and have requested a parliamentary hearing with the foreign minister. 



(Reporting by Alexander Winning and Emma Rumney in Johannesburg and Catarina Demony in Lisbon; Editing by Olivia Kumwenda-Mtambo, John Stonestreet and Jonathan Oatis)

1038762

Mozambique seeks targeted foreign support to help tackle insurgency -president

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="492" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/Private-Sector-Kenya-820x492.jpg" alt="" class="wp-image-400964" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/Private-Sector-Kenya-820x492.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/Private-Sector-Kenya-300x180.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/Private-Sector-Kenya-768x461.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/Private-Sector-Kenya.jpg 1000w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A Kenyan worker wears a dust mask as she works at the Hela intimates export processing zone (EPZ) limited factory in Athi River, near Nairobi, Kenya, July 27, 2017. Picture taken July 27, 2017.</figcaption></figure>



NAIROBI, April 7 (Reuters) &#8211; Private sector activity in Kenya fell to a nine-month low in March, as companies registered a slower pace of output growth and sales and rising fuel prices led to increased product costs, a survey showed on Wednesday.



The Markit Stanbic Bank Kenya Purchasing Managers&#8217; Index (PMI) fell to 50.6 from 50.9 in February. The 50.0 mark separates growth from contraction.



&#8220;Businesses highlighted that cashflow problems linked to the COVID-19 pandemic meant that households often limited spending to essential items,&#8221; Stanbic said in comments accompanying the survey.



&#8220;As a result, sales grew at the slowest rate since last November, with firms also seeing a loss of momentum from export orders.. Output increased at the slowest rate for nine months.&#8221;



In mid-March, Kenya&#8217;s energy regulator announced that the maximum fuel prices to mid-April would rise, with petrol jumping by 7.63 shillings per litre and diesel by 5.75 shillings per litre.



The survey said the increased fuel costs &#8220;led to another sharp uptick in purchase prices, driving further pressure on firms&#8217; margins.&#8221;



In late March, President Uhuru Kenyatta restricted travel in the capital Nairobi and four surrounding counties to curb record levels of COVID-19 infections.



The resurgence hit demand growth, &#8220;which resulted in households conserving cash and prioritising spending to essential items,&#8221; Kuria Kamau, fixed income and currency strategist at Stanbic Bank, said.



&#8220;Firms’ outlook for output worsened on account of the resurgence… which is expected to affect demand.” 



(Reporting by George Obulutsa; editing by John Stonestreet)

Private-Sector-Kenya

Kenya private sector activity falls to 9-month low

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/000_12v3kd-820x546.jpg" alt="" class="wp-image-400870" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/000_12v3kd-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/000_12v3kd-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/000_12v3kd-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/000_12v3kd.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>(Photo by ADRIEN BARBIER / AFP)</figcaption></figure>



MAPUTO, April 5 (Reuters) &#8211; The town in northern Mozambique that Islamic State-linked insurgents attacked late last month is now secure after the military killed a significant number of militants and cleared one final area, an army spokesman and a provincial official said.



&#8220;We have completed the clearing (of the town). It was the only sensitive area that we needed to clear. … It is completely safe,&#8221; army spokesman Chongo Vidigal said in comments broadcast by state TV channel TVM late on Sunday.



Armindo Ngunga, secretary of state for the Cabo Delgado province, told Reuters on Monday that the town of Palma was &#8220;under the control of the state&#8221;.



&#8220;There was significant loss of human life, infrastructure destroyed. But people are safe now,&#8221; Ngunga added.



Insurgents on March 24 attacked the coastal town of Palma, near natural gas projects worth $60 billion that are meant to transform Mozambique&#8217;s economy. Mozambique&#8217;s government says dozens died in the assault, and security sources say clashes continued outside the town as recently as Friday.



Reuters has not been able to verify the accounts from Palma independently. Most means of communication with the town were cut off after the attack began.



Footage taken by TVM in Palma showed a soldier covering a body lying in the street and burned buildings.



Vidigal said the facilities of French energy company Total near Palma were being protected, after sources told Reuters on Friday that Total had withdrawn all its staff as the militants appeared to be approaching.



A Total spokesman and Mozambique&#8217;s defence ministry did not immediately respond to requests for comment on Monday.



Islamic State-linked insurgents have been increasingly active in Cabo Delgado since 2017, although it is unclear whether they have a unified aim.



Aid groups believe the latest attack displaced tens of thousands of people, many of whom fled into dense forest or escaped by boat. But the extent of the death and displacement is not yet clear, and many remain unaccounted for.



Survivors have recounted seeing bodies of others who died of hunger or dehydration while trying to escape.



Thousands have poured into Cabo Delgado&#8217;s capital Pemba, stretching a city already brimming with people displaced by previous rounds of Islamist violence as well as a deadly cyclone in 2019. 



(Reporting by Manuel Mucari; Additional reporting by Catarina Demony in Lisbon and Emma Rumney in Johannesburg; Writing by Alexander Winning; Editing by Hugh Lawson)

MOZAMBIQUE-UNREST-ISLAM-POLITICS

Mozambique army says town attacked by insurgents is now secure

NAIROBI (Reuters) &#8211; Kenya’s central bank said on Tuesday that March 2 marked the end of the period for allowing banks to restructure loans for borrowers hit by the COVID-19 pandemic.



Policymakers unveiled the initiative to help distressed borrowers in March last year at the onset of the coronavirus crisis, helping to partly cushion the economy reeling from the pandemic impact.



Economic growth slowed to 0.6% last year, initial estimates show, well below the government’s earlier forecast of 6.2%, as the pandemic hit tourism, suppressed exports and eroded jobs. Official data for the full-year are due next month.



The amount of loans whose repayment terms were changed by lenders in the East African nation stood at 569.3 billion shillings ($5.19 billion) by the end of February, the regulator said in a statement.



That represented 19% of total loans, having dipped from 57% of total loans at the depth of the crisis, it added.



Borrowers who still have outstanding restructured loans will have until June 3 to regularise them, the bank said.



The loans relief initiative is among the last stimulus policy measures to be unwound by the government.



Authorities re-imposed charges on mobile phone-based transfers of small amounts of cash at the end of last year, having removed them in March to encourage cashless transactions and curb the spread of the virus.



In January, the government also reversed payroll and income tax cuts, unveiled last April to prop up demand in the face of the economic shocks caused by the pandemic.



Kenya, which has so far reported 122,040 cases of COVID-19 infections and just over 2,000 deaths, is currently gripped by a third wave of infections, which is stretching its health facilities.

kenya

Kenyan central bank says loans relief period ended on March 2

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="527" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1064245894-820x527.jpeg" alt="" class="wp-image-398696" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1064245894-820x527.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1064245894-300x193.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1064245894-768x494.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1064245894-1536x988.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1064245894-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Pedestrian walk past a Safaricom shop in Nairobi on November 22, 2018. (Photo by SIMON MAINA / AFP) (Photo credit should read SIMON MAINA/AFP via Getty Images)</figcaption></figure>



JOHANNESBURG, March 3 (ANA) – Safaricom in Kenya has partnered with the Higher Education Loans Board (HELB) to roll out a smart mobile payment solution for students of tertiary institutions to access and utilise their loans and bursaries.



In a statement dated Tuesday, Safaricom said the solution would aid HELB to promote responsible spending. Funds will be locked for specific allocations, such as tuition or library fees, and only accessible to the specific Paybill account of the recipient’s university or TVET institution.



The students upkeep allowance can now also be transferred into the student’s M-Pesa wallet for everyday use.



“Technology today is not only revolutionising every aspect of our lives, but also creating opportunities to enhance efficiency and accountability. We are pleased to support the Higher Education Loans Board to deploy a solution that suits the digital lifestyle of students in tertiary institutions,” said chief financial services officer at Safaricom Sitoyo Lopokoiyit.



Lopokoiyit said students can access the system through HELB USSD and the mobile app once completed, from where they will be able to view their loan allocations, current balances and statements and make payments.



HELB disbursed more than 15 billion Kenyan shillings (about US$137 million) to more than 200,000 beneficiaries annually. Part of the loan was usually channelled directly to the learning institution to settle part of the tuition and accommodation fees, while the rest was sent to the student for upkeep.



Safaricom said the solution would create efficiencies for all stakeholders by reducing queues during registration as students can now pay through their mobile phones. There would be effective management and monitoring of all loans throughout the loan life cycle.



“The roll-out of this smart solution marks a major milestone in our digitisation journey. It not only enhances efficiency in our operations, but also enables us to step up the experience of beneficiaries, who are digital natives. The solution will allow the student to access and make transactions within the solution’s ecosystem,” said HELB CEO Charles Ringera.



– African News Agency (ANA); Editing by Yaron Blecher

KENYA-ECONOMY-SAFARICOM-TELECOM

Kenya’s Safaricom Helps Students Manage Their Loans Via Phones

JOHANNESBURG, March 1 (Reuters) &#8211; South Africa&#8217;s Standard Bank has hired an independent environmental and social advisor to help assess its involvement in Total&#8217;s East African Crude Oil Pipeline that environmental groups have opposed, it said on Monday.



About 263 civil society organisations from around the world, have urged the chief executives of 25 banks not to participate in loans to fund the construction of the $3.5 billion East Africa Crude Oil Pipeline.



They have argued in an open letter that this pipeline would pose immense threats to local communities, water supplies, and biodiversity in Uganda, Tanzania, Democratic Republic of Congo and Kenya.



Read More: <a href="https://www.cnbcafrica.com/2021/oil-optimism-unwinding-markets-mad-dash-for-storage/">Oil optimism unwinding market’s mad dash for storage</a>



Standard Bank acknowledged receipt of the letter, saying it was following its own internal processes and had retained the services of an independent environmental and social advisor.



&#8220;As part of this process, the advisors will visit the project area and will issue a full environmental and social due diligence report, at which time Standard Bank Group will make a decision on the way forward,&#8221; it said in an emailed response.



Further to this, a preliminary findings report from the advisor was currently under review, the bank said, adding its new fossil fuels financing policy sets out stringent conditions for lending to fossil fuel projects.



&#8220;Among other conditions, project owners must commit to minimising or reducing greenhouse gas emissions,&#8221; it said.



French energy giant Total and its partner China National Offshore Oil Corporation plan to exploit oil reserves in Lake Albert in Uganda and construct a 1,443-km (896-mile) pipeline to neighbouring Tanzania for export.



Last month, Uganda said construction was expected to begin soon.



About two-thirds of the pipeline&#8217;s cost will be financed by debt, and a Ugandan unit of Standard Bank Group and Japan&#8217;s Sumitomo Mitsui Banking Corp are jointly helping to raise the funding. (Reporting by Nqobile Dludla; Editing by Bernadette Baum)



(c) Copyright Thomson Reuters 2021. Click For Restrictions &#8211; https://agency.reuters.com/en/copyright.html

UGANDA-TANZANIA-OIL

South Africa’s Standard Bank to assess ‘way forward’ on East Africa oil pipeline

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1110" height="740" src="https://cms.cnbcafrica.com/wp-content/uploads/2020/11/GettyImages-1210801808-1110x740.jpg" alt="" class="wp-image-392738" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/11/GettyImages-1210801808-1110x740.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/11/GettyImages-1210801808-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/11/GettyImages-1210801808-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/11/GettyImages-1210801808-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/11/GettyImages-1210801808-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2020/11/GettyImages-1210801808-scaled.jpg 2048w" sizes="auto, (max-width: 1110px) 100vw, 1110px" /><figcaption>Motorcycle taxi drivers wait on the corner for passengers as Samsung Electronics Co. advertising hoardings cover a building beyond in downtown Nairobi, Kenya, on Thursday, April 23, 2020. Kenya&#8217;s economic growth could slow to as low as 1% this year as effects of the coronavirus pandemic take a toll on businesses and revenue, according to the National Treasury Secretary Ukur Yatani. Photographer: Patrick Meinhardt/Bloomberg via Getty Images</figcaption></figure>



NAIROBI, Jan 20 (Thomson Reuters Foundation) &#8211; Sitting on a low bench at her shop in a Nairobi slum, Grace Wangari sifted through a handful of grains that a waiting customer had just ordered.



As she poured them into a shopping bag, the customer scrolled through her phone to pay for the purchase.



Normally, Wangari would have been paid in shilling notes, Kenya&#8217;s hard currency, but in some ways she preferred the digital payment that was instantly transferred to her phone.



&#8220;I am happy with this transaction because there is no risk of losing my stock to conmen or people who have come to take goods on credit,&#8221; said Wangari, a middle-aged trader in Mukuru Kayiaba, one of the city&#8217;s poorest slums.



The transaction happened through Sarafu, a blockchain-based community currency that is helping thousands of Kenyan slum dwellers pay for food, water and sanitary items as they battle through the COVID-19 economic downturn.



Each week, families are issued with virtual vouchers worth 400 Kenyan shillings ($4), which they can use to buy essential goods, said Roy Odhiambo, an innovation officer at Kenya Red Cross Society (KRCS), one of the groups behind the project.



Vendors can then send the vouchers to Grassroots Economics, the Nairobi-based social enterprise that co-developed Sarafu (&#8220;coins&#8221; in English) with U.S.-based engineering firm BlockScience, and redeem them for cash.



Odhiambo said more than a third of the vendors in Mukuru are already signed up to the project, which launched in 2019 with the aim of helping struggling families get hold of everyday basics without worrying about having cash on hand.



Now the project is providing a lifeline for families trying to cope with the financial pain of the pandemic, he noted.



Antony Ngoka, a field coordinator with Grassroots Economics, said thousands of slum residents, who are mostly casual workers, have lost their jobs during the pandemic.



Unable to get loans from traditional banks, many become easy prey for loan sharks, he added.



But, blockchain can help poor Kenyans avoid economic exploitation, said Nelson Ochieng&#8217;, a rights activist and social worker in Kibera, Nairobi&#8217;s largest slum.



&#8220;Blockchain can foster local trade by tapping resources that are ignored by mainstream businesses. It also increases levels of trust among struggling communities,&#8221; he said.



<h2 class="wp-block-heading" id="h-secure-and-transparent">SECURE AND TRANSPARENT</h2>



In Mukuru Kayiaba slum, about 5.5 miles (9 kilometres) away from Nairobi city centre, some 4,000 residents have registered with Sarafu, according to Odhiambo of KRCS.



Developed with funding from global government donors, the platform can make an average of up to 1 million Kenyan shillings ($9,0000) in daily transactions, Odhiambo said.



Unlike cash aid, which can be spent on anything, Sarafu can only be used to pay for essentials such as food, health supplies and educational resources, he explained.



And, he added, because the platform runs on blockchain, meaning all transactions are tracked and transparent, that ensures people are spending the money only on necessities.



Odhiambo said KRCS is currently working with the Danish Red Cross and Innovation Norway, the government&#8217;s business development agency, to roll out Sarafu across Kenya.



But, seeing the platform as a threat, loan sharks are using political and financial manipulation to lure Kenyans away from it, said Ochieng&#8217;, the rights activist.



Informal lenders recruit people to spread rumours that blockchain is a Ponzi scheme with no backing from local leaders, a tactic that has successfully stifled the uptake of other blockchain-based projects in the past, he explained.



&#8220;The aim of loan sharks is to divert people from innovations that are helping them access basic services in the slums without having to pay interest,&#8221; Ochieng&#8217; said.



They also pull in customers by offering much higher sums than they can get through Sarafu, with exorbitant interest rates, he added.



Violet Muraya, who sells water in Mukuru slum, said informal lenders can offer loans up to 10 times larger than anything available through the community currency.



&#8220;When people have emergencies and need huge amounts of money, they cannot use Sarafu. So, they go to loan sharks for help and end up being trapped in financial slavery,&#8221; said Muraya.



Odhiambo said the Kenya Red Cross Society is running education and awareness-raising campaigns in areas where the project has been rolled out, to reassure users that the platform is safe and fair.



&#8220;At first there was resistance &#8230; because of the propaganda. But the community has accepted this cashless transaction because they know it is not some type of betting or loan facility,&#8221; he said.



<h2 class="wp-block-heading" id="h-no-one-is-going-to-sleep-hungry">&#8216;NO ONE IS GOING TO SLEEP HUNGRY&#8217;</h2>



At Isaac Makavu&#8217;s food kiosk in Mukuru, customers lined up to order his steaming rolls of baked flat bread, chatting about an upcoming Premier League football game and sharing funny stories about their day.



Makavu said Sarafu has helped people in his community avoid eviction during the pandemic by allowing them to save their cash.



Some come together to pay each other&#8217;s rent through table banking, a form of savings scheme where a group contributes a set amount of money every month and then uses that money to help members who need it.



Charities say evictions have been rife in parts of East Africa during the pandemic. In one instance in May 2020, Human Rights Watch reported more than 8,000 people living in two Nairobi slums were evicted from their homes.



&#8220;But there have been no evictions in areas where Sarafu is being used by slum communities because they were able to pay their rent on time,&#8221; Makavu said.



&#8220;No one is going to sleep hungry here because they have community currency.&#8221;



($1 = 109.9000 Kenyan shillings) (Reporting by Kagondu Njagi, Editing by Jumana Farouky and Zoe Tabary. Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers the lives of people around the world who struggle to live freely or fairly. Visit http://news.trust.org)



(c) Copyright Thomson Reuters 2021. Click For Restrictions &#8211; https://agency.reuters.com/en/copyright.html

East Africa

Ethiopia signs $907 mln financing pact with World Bank

Armed group takes control of county in western Ethiopia – rights commission

Mozambique’s Nyusi vows to restore peace in gas-rich Cabo Delgado

Congo seeks over $4 billion in reparations from Uganda at World Court

Kenyan insurer Pula offers lifeline to African farmers hit by climate change

New law would allow Uganda to take stakes in private mining

World stocks hit record high as bond yields ease

Understanding Rwanda’s journey to e-mobility

Tanzania opposition calls for new constitution, faster COVID-19 research

Burundi – Not enough

Mozambique seeks targeted foreign support to help tackle insurgency -president

Kenya private sector activity falls to 9-month low

Mozambique army says town attacked by insurgents is now secure

Kenyan central bank says loans relief period ended on March 2

Kenya’s Safaricom Helps Students Manage Their Loans Via Phones

South Africa’s Standard Bank to assess ‘way forward’ on East Africa oil pipeline

Kenya slum dwellers battle COVID-19 downturn with virtual currency

News Tips

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East Africa

Ethiopia signs $907 mln financing pact with World Bank

Armed group takes control of county in western Ethiopia – rights commission

Mozambique’s Nyusi vows to restore peace in gas-rich Cabo Delgado

Congo seeks over $4 billion in reparations from Uganda at World Court

Kenyan insurer Pula offers lifeline to African farmers hit by climate change

New law would allow Uganda to take stakes in private mining

World stocks hit record high as bond yields ease

Understanding Rwanda’s journey to e-mobility

Tanzania opposition calls for new constitution, faster COVID-19 research

Burundi – Not enough

Mozambique seeks targeted foreign support to help tackle insurgency -president

Kenya private sector activity falls to 9-month low

Mozambique army says town attacked by insurgents is now secure

Kenyan central bank says loans relief period ended on March 2

Kenya’s Safaricom Helps Students Manage Their Loans Via Phones

South Africa’s Standard Bank to assess ‘way forward’ on East Africa oil pipeline

Kenya slum dwellers battle COVID-19 downturn with virtual currency

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