By <a href="https://www.cnbc.com/karen-gilchrist/">Karen Gilchrist</a> 



Making your first investment can feel like a daunting prospect.



Memories of the global financial crisis — and subsequent market dips — hang heavy for savers, particularly those who came of age during the 2008 downturn.



Multiple studies point to millennials’ and Gen Z’s skepticism toward investing:&nbsp;<a href="http://www.cnbc.com/2018/08/01/why-millennials-are-scared-of-the-stock-market.html">One Bankrate report</a>&nbsp;found that just 23% of those between 18 and 37 years of age saw the stock market as the best long-term money store. That’s compared to 33% of Gen X (those between 38 and 52 years old) and 38% of baby boomers (people between 54 and 74 years old).



But with low, and in some places negative, interest rates continuing to suppress cash savings globally, sitting on the sidelines could do more harm than good.



Analysts suspect that the savings shortfall could have major implications for long-term financial goals.&nbsp;<a href="https://www.cnbc.com/2019/12/17/standard-chartered-majority-of-savers-set-to-miss-retirement-goals.html">A recent study from Standard Chartered</a>, for instance, found the majority of savers in the fastest-growing economies are set to miss their retirement goals by 50%.



The good news, however, is that it’s easier today than ever to invest; new technologies and a host of digital wealth managers have opened up entry into lower-risk investments from anywhere in the world.



<a href="https://www.cnbc.com/make-it/">CNBC Make It</a>&nbsp;spoke to some experts to find out their top tips for getting started.



<h2 class="wp-block-heading">Set a goal</h2>



Before you begin thinking about your first investment, or choosing the type of vehicle to use, it’s crucial to figure out what you’re doing it for, experts said.



Dhruv Arora, CEO of digital wealth manager&nbsp;<a href="http://www.syfe.com/" target="_blank" rel="noreferrer noopener">Syfe</a>, recommended starting with a specific life goal — such as a wedding or retirement — rather than an “arbitrary numerical figures.”



“Rather than throwing up a number, try and be a bit scientific about it,” said Arora, noting that online calculators can help you figure out an investment strategy as a proportion of your income.



That doesn’t mean you must stay with that plan: “Your goals may change over time, and that’s fair,” said Michele Ferrario of online wealth platform&nbsp;<a href="http://www.stashaway.sg/" target="_blank" rel="noreferrer noopener">StashAway</a>. But it creates a tangible reward to work toward.



<h2 class="wp-block-heading">Figure out your timeline</h2>



Next up, figure out how much time you have to reach that goal. That will help you figure out how much you need to put away each month in order to get there.



As a general rule, financial advisors recommend a 50/30/20 strategy, whereby 50% of your income goes to living expenses, 30% to discretionary spending — or wants — and 20% to savings. However, that may vary depending on your goal and time horizon.



Often the more you can put in early on, the better. That’s due to<a href="https://www.cnbc.com/2019/02/11/how-compound-interest-works-and-how-it-can-help-you-save-money.html">&nbsp;compound interest</a>, which enables you to earn interest on your returns. But Ferrario cautioned investors to be realistic.



“Understand what you can afford,” he said. “If you start baking into your plan the fact that you’re to have a great career, you may be disappointed. Start with what you know you have, and then over time, you can adjust it.”



<h2 class="wp-block-heading">Know your risk tolerance</h2>



Alongside timeline, you need to know your risk tolerance. More often than not, the two will be intertwined.



“If you’re a millennial, your objectives are likely to be quite long-term in nature,” said Steve Brice, chief investment strategist at&nbsp;<a href="https://www.cnbc.com/2019/02/11/how-compound-interest-works-and-how-it-can-help-you-save-money.html">Standard Chartered</a>, noting that may give you a greater risk tolerance.



However, Brice noted there’s no one-size-fits-all approach. He recommended doing a scenario analysis to see how you respond to different events to ensure future downturns don’t “blindside” you.



Arora agreed, saying investors should be true to themselves: “If you’re not comfortable with what you’re doing this for, you will end up making the wrong investment.”



<h2 class="wp-block-heading">Get diversified</h2>



Once you’ve pinned down your goal and your strategy, it’s time to work out the best investment vehicle for you.



For many first time investors, that will be a passively managed&nbsp;<a href="https://www.cnbc.com/2019/09/19/why-index-funds-are-a-smart-investment.html">index fund</a>, which gives you access to major market indices, or a low-cost digital wealth manager which will build a portfolio on your behalf.



The most important element to look for, however, is diversification, experts said. This means building in exposure to different asset classes, such as equities, bonds and alternatives like property, as well as different geographies.



“You need to have a portfolio that’s diversified and doesn’t make you lose sleep,” said Ferrario.



“You should be building a portfolio that’s resilient to different risks,” Brice added.



Their advice closely mirrors that of legendary investor&nbsp;<a href="https://www.cnbc.com/id/10000263">Warren Buffett</a>. The 89-year-old self-made billionaire has long advocated long-term, low-risk investing that focuses on a&nbsp;<a href="https://www.cnbc.com/2018/12/17/warren-buffett-tips-on-how-to-invest-in-the-stock-market.html">diversified and detached approach</a>.



<h2 class="wp-block-heading">Remember fees</h2>



While digital wealth platforms have helped lower barriers to entry, the fees charged can vary across the board, so it’s important to know where your money is going.



As Ferrario put it, unlike other purchases, “the thing you’re buying when you invest is returns.”



American online financial advisor Betterment, for instance, charges a low annual fee of 0.25% on assets under management, helping it nab the title of best platform for new investors in&nbsp;<a href="https://www.cnbc.com/2020/02/13/why-betterment-is-the-best-roboadvisor-for-beginning-investors.html">a recent report</a>. The annual fees charged by U.S. robo-investors often hover between 0.25% and 0.89% — well below the several percentage points charged by traditional wealth managers.



Investors elsewhere in the world can find comparably low fees. Europe’s Moneyfarm charges approximately 0.7% per year, while in Asia, StashAway charges up to 0.8% and Syfe up to 0.65% — both with no exit fees.



<h2 class="wp-block-heading">Forget about it</h2>



The last step for investors, new and old, is to learn to forget.



With most investment platforms now offering some form of on-demand performance analysis, that can be easier said than done. Indeed, observing your portfolio can be a good way of monitoring your risk tolerance.



But it’s important not to let it disrupt your long-term strategy, said Arora, who recommended checking in on your investments on a quarterly basis.



“Investing should be as exciting as watching grass grow,” Ferrario added.



This article was first published on CNBC <a href="https://www.cnbc.com/2020/02/18/investing-advice-experts-share-tips-for-making-the-first-investment.html">https://www.cnbc.com/2020/02/18/investing-advice-experts-share-tips-for-making-the-first-investment.html</a> and is republished with its permission.

CNBC

Experts share their best advice for making your first investment

By Giulia Paravicini



ADDIS ABABA, Feb 18 (Reuters) &#8211; The United States will provide financial assistance to Ethiopia as it pursues political reforms, the office of Ethiopian Prime Minister Abiy Ahmed said on Tuesday during a visit by U.S. Secretary of State Mike Pompeo.



&#8220;An agreement has been reached regarding the strengthening of the holistic and ongoing reform in Ethiopia to which the United States Government plans to provide substantial financial support,&#8221; the statement said.



Neither Pompeo nor Abiy provided further details. Ethiopia, Africa&#8217;s second-most populous nation, has long been an ally of the United States, which supplies about $1 billion in aid annually.



Pompeo praised political reforms Abiy has spearheaded ahead of Ethiopia&#8217;s upcoming elections. Ethiopians are due vote on Aug. 29 in a balllot Abiy has promised will be free and fair in a bold break from decades of repression.



&#8220;A free and credible vote will show that there is no false choice between democracy and security and it will ensure that everyone has a choice,&#8221; Pompeo told reporters.



Abiy took power in 2018 following years of anti-government protests. He freed thousands of political prisoners, won the Nobel Peace Prize for ending a long-running conflict with neighbouring Eritrea, and put prominent dissidents and human rights activists in positions of power.



&#8220;These aren&#8217;t reforms imposed by somebody on the outside. These were reforms that came from Ethiopian people,&#8221; Pompeo said.



A senior U.S. State Department official told pool reporters said Abiy appeared committed to holding elections on time, although he said Ethiopian security agencies &#8211; long used to suppressing political opposition &#8211; might need some more training on respecting human rights.



Abiy&#8217;s reforms, while applauded abroad, have also unleashed simmering ethnic and political tensions at home as regional powerbrokers jockey for position. More than 2 million of Ethiopia&#8217;s 109 million citizens have been displaced, according to the United Nations.



&#8220;The most important challenge for us is security,&#8221; Ethiopia&#8217;s foreign minister Gedu Andargachew told reporters. &#8220;Most of our youth have no job… this situation is difficult to maintain peace and order.&#8221;



Abiy has also overseen economic reforms, promising to open its bureaucratic, state-run economy to foreign investment and liberalise the telecoms and banking sectors. Ethiopia struggles with foreign exchange shortages that inhibit investment. Gedu also said there had been &#8220;progress&#8221; in a dispute that the U.S. Treasury has been trying to mediate between Ethiopia and Egypt over Ethiopia&#8217;s giant Blue Nile hydropower dam.



Pompeo is on a tour that has already taken him to Germany, Senegal and Angola. His visit comes as some African governments are questioning U.S. President Donald Trump&#8217;s commitment to their continent. 



(Additional reporting from pool reporters, Editing by Angus MacSwan Writing by Katharine Houreld)

U.S. to offer financial support for this East African country’s political reforms

HARARE, Feb 17 (Reuters) &#8211; Zimbabwe&#8217;s central bank left its benchmark interest rate at 35% on Monday, citing moderating inflation, as it looks to print more local currency and limit the use of foreign currencies.



Zimbabwe is struggling through its worst economic crisis in a decade, with prices of basic goods soaring and shortages of medicine, fuel and electricity worsening. Hopes of a quick recovery under President Emmerson Mnangagwa are fading.



The worsening poverty is upsetting the fragile calm that&#8217;s prevailed since the 2017 coup that toppled long-time ruler Robert Mugabe.



After suspending publication of annual inflation data, which economic analysts put at 525% in December, authorities will resume printing the figures next month.



Governor John Mangudya was bullish on inflation, projecting that annual price growth would dip below 50% by the end of the year. Monthly inflation fell in January to 2.23%



&#8220;Our task is we stabilize inflation and stabilize the exchange rate. We expect month-on-month inflation will continue to come down until the end of the year,&#8221; Mangudya said.



&#8220;Most of the inflation is caused by non-monetary factors. That is expectations &#8211; that &#8216;I lost money in 2008&#8217;,&#8221; Mangudya said. &#8220;This is a once-beaten, twice-shy scenario. These are things that shape inflation in Zimbabwe.&#8221;



Zimbabweans have little confidence in monetary policy after pensions and savings were wiped out at the height of hyperinflation, which reached 500 billion% in 2008 and forced the country to dump its local currency.



Last year in June, Zimbabwe ended a decade of dollarisation, which fuelled inflation. Mangudya said it would take up to five years to completely wean Zimbabwe from using the U.S. dollar in local transactions.



Seeking to reassure investors, the governor said foreign currency accounts held by companies, donors and individuals were safe, while businesses like mines would continue to receive a portion of their export earnings in dollars.



To ease shortages of cash, the bank will feed higher- denomination Zimbabwe dollar notes into the economy while increasing transparency on foreign currency trading to stabilise the exchange rate.



The central bank governor said he still saw economic growth at 3% in 2020, citing improved rainfall since mid January. 



(Reporting by MacDonald Dzirutwe, writing by Mfuneko Toyana; editing by William Maclean, Larry King)

Zimbabwe central bank leaves rates unchanged, bullish on inflation, what you need to know…

By Pieter Scribante, Economist and Political Analyst, NKC African Economies



On Tuesday, February 11, Sudan’s transitional government and rebel groups from Darfur agreed, in principle, that the individuals who are wanted by the International Criminal Court (ICC) should appear before the tribunal. 



This announcement was made on Tuesday in Juba, the capital of
neighbouring South Sudan, where government authorities and the Darfur rebels
are engaging in peace talks. 



Former President Omar Al-Bashir, who was deposed in a military-led
coup in April 2019, is the most high-profile among the individuals wanted by
the ICC: He faces charges of war crimes, genocide, and crimes against humanity
committed in Darfur. 



However, as things currently stand, the government has no
intention of extraditing Mr Bashir to The Hague. Al-Hassan Al-Taishi, a member
of the Sovereign Council, stated that during the negotiation in Juba, the two
sides agreed on a mechanism that would include “the appearance of those who
face arrest warrants before the ICC”. 



However, this agreement does not specify when and how Mr Bashir,
and the other parties involved, will be tried. 



Thus far, Mr Bashir has only been prosecuted domestically on
charges of money laundering and corruption, with further charges pending. He
has survived international prosecution due to disagreements within the
Sovereign Council. Prime Minister Abdalla Hamdok and the Forces of Freedom and
Change (FFC) – the civilian coalition in the Sovereign Council – have expressed
their support for sending Mr Bashir to The Hague. 



However, President Abdel Fattah Al-Burhan and the military bloc of
the Sovereign Council vehemently oppose this. The senior military officers held
powerful positions under Mr Bashir and likely fear the repercussions if he is
convicted and the implications of their complacency and cooperation. 



Currently, the government maintains the stance that Mr Bashir
should face the ICC, but it has no intention of sending him out of the country.




The government favours a compromise in which the trial will take
place in Sudan, through a hybrid ICC/domestic court. This has the benefit of
smoothening the peace talks in Juba, gaining international support for Sudan,
and allowing the government to keep a firm hand on the prosecution. 



However, there are several problems with this plan. Sudan is not a
signatory of the Rome Statute and does not recognise the ICC’s authority, thus
the Court does not have jurisdiction in the country. Additionally, a trial of
this nature is highly unorthodox. It is unlikely that the ICC would agree to a
hybrid system – which could potentially include Sudanese officials – as it
risks diminishing the reputation and verdict of the Court. 



While the agreement between the Sovereign Council and the rebels
in Darfur is extraordinary, it does not necessarily mean that Mr Bashir will
have his day in court for his crimes committed in Darfur. 



It is unclear how this will play out, and currently, this is just
an agreement in principle. Sudan is under no legal obligation to hand Mr Bashir
over to the ICC. Moreover, the ICC has not agreed to the hybrid system nor to a
domestic prosecution. 



However, this move has gained international attention and support
for Sudan. This coincides with UN Secretary General António Guterres’s call to
remove Sudan from the US State Sponsor of Terrorism List (SSTL) and “to
mobilise massive international support to enable Sudan to overcome its
challenges”. 



This latest development plays directly into the government’s strategy of bringing peace to the Darfur region and riding a wave of optimism, which could help the ongoing talks with the US and increase the chances of being removed from the SSTL.

Op-Ed: Sudan’s Bashir one step closer to the ICC

JOHANNESBURG (Reuters) &#8211; South Africa’s Eskom has offered some managers voluntary severance packages, capping costs at 400 million rand ($26.8 million), a communique sent to staff by the struggling power utility showed.



Eskom does not generate enough cash to cover its mammoth debt servicing costs and expects to make a loss of around 20 billion rand this financial year.



The severance packages are open to managerial employees in non-core positions as well as managers from 60 to 62 years old, according to the communique, which was dated Feb. 6.



Eskom spokesman Sikonathi Mantshantsha declined to comment.



Analysts have long said that Eskom should cut its bloated workforce of more than 46,000 staff.



Under pressure from trade unions, South African President Cyril Ramaphosa said last year that voluntary severance packages would be the preferred method to cut costs at Eskom, rather than layoffs.



Eskom said in the communique that staff could apply for the severance packages from the third week of February, with employee exits planned for the end of April.



Eskom also offered voluntary severance packages in 2015.



($1 = 14.9245 rand)



Reporting by Alexander Winning; editing by Jason Neely

South Africa’s Eskom plans to spend up to $27 million on severance packages

By Derek Cikes, Commercial Director at Payflex



South Africans are desperate for innovative payment solutions that don’t involve credit traps. In response to a soaring debt crisis due to the miseducation of credit and lending terms and conditions &#8211; both on credit cards and store cards &#8211; philanthropic South Africans in their hundreds have been paying off other people’s store lay-bye debt, according to <a href="https://www.businessinsider.co.za/pep-lay-bye-2020-1">businessinsider</a>. 



It begs the question though, what is available for online
shoppers and is there a way to avoid credit in all its disguises entirely? The
answer is yes and they’re called ‘Buy-Now Pay-Later’&nbsp; solutions (BNPL)
that offer interest-free, zero-fee shopping with no catches, are going to war
with SA’s debt problem on behalf of online consumers.



“There is a way that shoppers can avoid debt all together,
shop responsibly and get ownership of their goods immediately,” explains <a href="https://www.payflex.co.za">Payflex</a>
CEO, Paul Behrmann. Payflex is leading the charge in disrupting the way
shoppers buy online. The company, based in Illovo Johannesburg, already has
thousands of South African customers and over 100 stores signed up for Payflex.




The problem with store Lay-byes is that you never really own
the goods until you’ve paid in full. Online solutions such as Payflex, allow
you to own the goods immediately while they pay the merchant directly and take
on all the risk. 



“This is a solution where everyone wins. The merchant can
boost their sales by 20 to 30% through larger baskets and improved conversion
while the buyer gets to own their goods right away while shopping responsibly
and avoiding any debt whatsoever,” explains Behrmann.



In other countries, millions of people are already using
BNPL solutions like these such as <a href="http://klarna.com">Klarna</a>, <a href="https://www.afterpay.com/">Afterpay </a>(global giant in this industry) and <a href="https://zip.co/nz/">Zip Payments</a>.
Behrmann believes it’s not a question of if but when South Africans will
turn their backs on destructive interest rates and choose more responsible
solutions instead.



Payflex is available on leading online stores across South Africa including South Africa’s largest fashion online retailer, Superbalist.com



Content provided by Talking Point Communications

Fintech innovations offer alternative to credit traps

LISBON (Reuters) &#8211; Portugal’s public prosecutor said on Tuesday it had ordered the seizure of Portuguese bank accounts belonging to Isabel dos Santos, who is a suspect in a fraud investigation in Angola.



Dos Santos, the daughter of former Angolan president Jose Eduardo dos Santos, was not immediately available for comment. She has repeatedly denied any wrongdoing in the past weeks.



“The public prosecutor’s office requested the seizure of bank accounts (belonging to Isabel dos Santos) as part of a request for international judicial cooperation by the Angolan authorities,” a spokeswoman for the prosecutor’s office said.



Portugal’s central bank declined to comment



Last month, Angola named dos Santos a formal suspect over allegations of mismanagement and misappropriation of funds during her time as chairwoman of state oil company Sonangol.



Dos Santos has repeatedly denied any wrongdoing.



Angolan authorities froze her assets in the African country in December.



A banking source familiar with the case told Reuters that accounts held by dos Santos were seized at Millennium bcp, Portugal’s largest listed bank.



Millennium bcp declined to comment on Tuesday.



Another banking source said accounts were seized at small Portuguese bank EuroBic, in which the businesswoman until recently held a 42.5% stake. Spanish bank Abanca said on Monday it had agreed to buy 95% of EuroBic shares.



Eurobic declined to comment.



Dos Santos also sold her controlling stake in Portuguese engineering firm Efacec last month.



Reporting by Sergio Goncalves and Catarina Demony; Editing by Andrei Khalip

Portugal prosecutor orders seizure of Africa’s richest woman Isabel dos Santos’ accounts

You may find yourself juggling a lot financially in your 30s, like purchasing a home, switching jobs, and even having children.



“The greatest thing is to have options, and when you establish a good [financial] plan in your 30s and work that plan, it allows you to build those options for your 40s,” says Leslie Thompson, a chartered financial analystand the founder of Spectrum Management in Indianapolis.



Here are four money moves you can make in your 30s that experts say can leave you wealthier in your 40s.



<h2 class="wp-block-heading">1. Update your emergency fund</h2>



Financial planners suggest you aim to build an emergency fund that can cover three to six months’ worth of living expenses. You may have started this effort in your 20s, but in your 30s, it’s time to revisit your savings goal. As your expenses increase, so should your emergency fund.



While you’re evaluating your emergency fund, reconsider where you’re keeping it. Experts recommend putting money for a rainy day in a savings account, or another easily accessible account.



More from Grow: <a href="https://grow.acorns.com/why-keeping-a-100-bill-in-your-wallet-can-curb-spending/" target="_blank" rel="noreferrer noopener">Why you should always keep a $100 bill in your wallet</a><a href="https://grow.acorns.com/items-you-should-rent-not-buy/" target="_blank" rel="noreferrer noopener">3 items that can be a better value to rent, not buy</a><a href="https://grow.acorns.com/side-hustles-you-can-do-from-anywhere/" target="_blank" rel="noreferrer noopener">4 side hustles you can do from anywhere (that pay up to $85 per hour)</a>



Look for accounts offering high-interest yields, but note that savings account interest rates can vary widely: The national average is <a rel="noreferrer noopener" href="https://smartasset.com/checking-account/average-savings-account-interest" target="_blank">0.09%</a>, according to SmartAsset, but some high-yield savings accounts offer as much as <a rel="noreferrer noopener" href="https://www.bankrate.com/banking/savings/rates/" target="_blank">2.55%</a>, according to Bankrate.



<h2 class="wp-block-heading">2. Prepare to buy a home</h2>



A home is the biggest purchase most people will ever make, so it’s good to start planning early. First steps:&nbsp;<a href="https://grow.acorns.com/2-ways-to-check-your-credit-score-for-free/" target="_blank" rel="noreferrer noopener">monitoring your credit score</a>&nbsp;and saving for a down payment.



“The higher your [credit] score, the lower your interest rate will likely be” on your mortgage, says Thompson. Aim for a score of&nbsp;<a href="https://grow.acorns.com/the-credit-score-you-need-to-get-the-best-rate-on-a-mortgage/" target="_blank" rel="noreferrer noopener">760 and above</a>&nbsp;to get the best interest rate on a 30-year fixed loan, which could save you&nbsp;<a href="https://grow.acorns.com/the-credit-score-you-need-to-get-the-best-rate-on-every-kind-of-loan/" target="_blank" rel="noreferrer noopener">thousands&nbsp;</a>in interest over the lifetime of your loan.&nbsp;<a href="https://grow.acorns.com/matt-schulz-shares-3-ways-to-boost-your-credit-score/" target="_blank" rel="noreferrer noopener">Improving your score</a>&nbsp;takes time, but moves like paying bills on time and keeping balances low can help.



Then set a savings goal for your down payment. Experts typically recommend <a rel="noreferrer noopener" href="https://grow.acorns.com/how-much-money-you-actually-need-to-put-down-to-buy-a-home/" target="_blank">aiming for 20%</a>, although the median is 7.6% — and you may qualify for certain mortgages that let you put down as little as 3%, or nothing. To prepare for the purchase, set up <a rel="noreferrer noopener" href="https://grow.acorns.com/set-up-automatic-bill-payments/" target="_blank">automatic</a> saving contributions. “Saving up for a down payment can make your mortgage more manageable, and perhaps allow you to buy a more expensive home,” she says.



<h2 class="wp-block-heading">3. Get—and stay—on track for retirement</h2>



Having a solid foundation for retirement is “the single best move” you can make, says Stephen O’Hara, a certified financial planner and vice president of Wealth Enhancement Group based in Minneapolis, Minnesota. He says the best way to get ahead on retirement savings is by&nbsp;<a href="https://grow.acorns.com/what-is-a-401k-match/" target="_blank" rel="noreferrer noopener">maximizing your employer 401(k) match</a>, ifyou have a job thatoffers one.



By the time you’re 30, Fidelity <a href="https://www.cnbc.com/2019/05/23/how-much-money-americans-have-in-their-401ks-at-every-age.html">recommends</a> having a retirement fund that’s equal to your starting salary. By age 35, your retirement savings should be <a href="https://www.cnbc.com/2018/11/12/how-much-money-to-have-saved-by-age-35.html">twice your annual salary</a>. While that benchmark is just a guideline, it can help you gauge if you should be boosting your contributions. In general, a good retirement contribution target is 15% of your annual salary.



The difference annual increases can make



Automatically adding 1% to your 401(k) contribution each year can make a big difference by the time you retire.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="600" height="418" src="https://www.cnbcafrica.com/wp-content/uploads/2020/02/grow-1.png" alt="" class="wp-image-355714" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/02/grow-1.png 600w, https://cms.cnbcafrica.com/wp-content/uploads/2020/02/grow-1-300x209.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/02/grow-1-100x70.png 100w" sizes="auto, (max-width: 600px) 100vw, 600px" /></figure>



<a href="https://grow.acorns.com/how-to-save-for-retirement-when-you-dont-have-a-9-5/" target="_blank" rel="noreferrer noopener">If you don’t have a workplace retirement account</a>, you can explore different options like&nbsp;<a href="https://grow.acorns.com/how-an-ira-can-help-you-grow-your-wealth-and-retire-comfortably/" target="_blank" rel="noreferrer noopener">opening an IRA</a>, says O’Hara. “Each time you experience a pay raise, try to raise what you’re putting away [for retirement],” he says. If you can’t put in 15% of your annual salary initially, then try increasing your&nbsp;<a href="https://www.cnbc.com/2019/05/23/how-much-money-americans-have-in-their-401ks-at-every-age.html">contribution by 1%-2%</a>&nbsp;every year until you get there.



<h2 class="wp-block-heading">4. Balance your long-term financial goals</h2>



Your 30s can be full of big financial changes, so you’ll want to be mindful of how you spend and save money, says Thompson. The first thing you should do is look at your big-picture goals,and pick&nbsp;<a href="https://grow.acorns.com/money-lessons-everyone-should-know-by-age-30/" target="_blank" rel="noreferrer noopener">three to focus on</a>.



Let’s say you want to buy a home, take an international trip with the whole family, and chip away at student debt. Start by calculating&nbsp;<a href="https://grow.acorns.com/how-to-make-a-personal-budget/" target="_blank" rel="noreferrer noopener">the amount you need&nbsp;</a>to put aside each month in order to achieve each goal by a target date. Then look at your bills, says O’Hara. By taking a hard look at your expenses, you can figure out where you’re overspending, and what areas, like dining out or entertainment, you may need to cut back on in order to stay on track to meet your goals.



“If you want to take a 10-day trip to Greece, you’re going to start looking at your happy hour bills and go, ‘This is not in alignment with meeting that goal,’” says O’Hara.



Though many people have a tendency to tackle financial goals one at a time, it makes sense to work on a few at once. “It all starts with putting those first dollars away,” and letting those savings habits build on each other, he says.



This article was first published on CNBC <a href="https://www.cnbc.com/2020/02/10/do-these-4-things-with-your-money-in-your-30s-to-be-richer-in-40s-finance-experts.html">https://www.cnbc.com/2020/02/10/do-these-4-things-with-your-money-in-your-30s-to-be-richer-in-40s-finance-experts.html</a> and is republished with its permission.

Do these 4 things in your 30s if you want to be richer in your 40s, money experts say

PRETORIA (Reuters) &#8211; South Africa’s unemployment rate remained unchanged at 29.1% in the final quarter of 2019 compared with the previous quarter, official data showed on Tuesday.



There were 6.726 million people without jobs in the three months to December 31, from 6.734 million people in the prior quarter, Statistics South Africa said its quarterly labour force survey.



The expanded definition of unemployment, which includes people who have stopped looking for work, was 38.7%, slightly up from 38.5% in the previous quarter.



Reporting by Mfuneko Toyana; Writing by Olivia Kumwenda-Mtambo; Editing by Alex Richardson

South Africa Q4 unemployment rate remains unchanged at 29.1%

Africa’s most dynamic thought-leaders, industry game-changers
and icons of social activism are set to feature at the ex<a>clusive
FORBES WOMAN AFRICA Leading Women Summit </a>presented by Mastercard (#LWS2020KZN)
and hosted by the KwaZulu-Natal government &#8211; taking place at the Inkosi Albert
Luthuli ICC Complex in Durban on Friday, 6 March 2020.



For the 5th edition of this globally-renowned
event, panellists and speakers will engage with the impactful 2020 theme, ‘The
Ceiling Crashers 2.0: Power with Purpose’. The day’s thought-provoking
discussions will be followed by the highly-anticipated <a>FORBES
WOMAN AFRICA Awards Gala Dinner </a>which celebrates the continent’s most
influential female ‘ceiling crashers’ across a number of key categories.&nbsp; 



“The <a>FORBES WOMAN AFRICA Leading
Women Summit </a>has grown to become one of the biggest female-empowerment
events, boasting a high calibre of attendees and unparalleled speaker line-up,”
said Renuka Methil, Managing Editor of FORBES WOMAN AFRICA. 



“This promises to be the biggest instalment yet,
featuring female pioneers and path-breakers across the continent. Audiences will
be exposed to dynamic discussions about the growing the number of women in
leadership &#8211; something government and business really need to factor into their
strategies. We will also get to grips with a new discourse that focuses on dismantling
power structures and the need for truly inclusive cultures in business and
society.”



This highly-anticipated event, which is hosted annually
in honour of International Women’s Day, is expected to draw an audience of
around 1 000 leading women. Through hard-hitting talks, fireside chats and
insightful panel sessions centred on ‘ceiling crashers’, attendees will be
inspired to make meaningful changes within their own industries, secure in the
knowledge that they have the support of these innovative allies. This year’s
programme promises an influential mix of leaders in healthcare and business;
advocates of social and environmental activism; award-winning artists and
internationally-renowned stateswomen. 



For the first time, FORBES WOMAN AFRICA will be releasing
its own list of ‘Africa’s Most Powerful Women’, many of whom will be attending
the summit. The list will be published in the March issue of the magazine, outlining
those who have been leading ideas and industries while purposefully
contributing to nation-building and positively impacting the lives around them.



The FORBES WOMAN AFRICA Awards Gala Dinner, which is
hosted the evening of the summit, is an opportunity to recognise the
trailblazers and role models who have created a new narrative within their
industries. By challenging authority and ‘old school’ traditions, they are
enabling future generations to live in a better and more equal world. 



Beatrice Cornacchia, Senior Vice President, Marketing and
Communications, Mastercard Middle East and Africa, said: “African women are a
vital source of innovation, prosperity, and economic growth. Yet inequality and
exclusion still hold women back in many aspects of their everyday lives &#8211; from
growing their businesses to having the financial tools to participate in the
formal economy; from joining the C-Suite to following their passions. We are
proud to partner with FORBES WOMAN AFRICA as we believe that it is only by
bringing diverse perspectives to the table that we can unlock Africa’s
possibilities to women.”



Managing Director of the ABN Group, Roberta Naicker, said
the organisation was excited that the KwaZulu-Natal government would, once
again, play host to this illustrious event, which serves to highlight the
continent’s most influential female leaders while also shining a spotlight on
this beautiful region. “A summit of this calibre showcases that KZN is being
positioned as a world-class events’ destination. We are excited to have
renowned speakers and attendees will get the opportunity to engage on hard-hitting
issues during the summit, while also affording them the chance to enjoy the
many recreational tourism sites and activities for which KZN is renowned.”



Tickets to the exclusive 2020 FORBES WOMAN AFRICA Leading
Women Summit and Gala Dinner are available at a cost of R3499, available
through Webtickets (<a href="https://www.webtickets.co.za/v2/event.aspx?itemid=1496991848">https://www.webtickets.co.za/v2/event.aspx?itemid=1496991848</a>).
Tickets are limited and interested parties are urged to book early to avoid
disappointment. There are also select opportunities to get involved with the event
sponsorship, exhibiting at the on-site marketplace or by sponsoring a mentee. Please
visit website for further details.



The 2020 FORBES WOMAN AFRICA Leading Women Summit is
presented by Mastercard (@MastercardMEA) and hosted by KZN Provincial
Government (@KZNgov). Keep updated on all the latest news and announcements on
Twitter @LWSummit and join the conversation using the hashtags #LWS2020KZN
#DOKZN.



Contact details:



Office: +27 (11) 384 0300



Sponsorship and exhibition opportunities: <a href="mailto:Sales_South_Africa@abn360.com">Sales_South_Africa@abn360.com</a> 



Media partnerships and press accreditation: <a href="mailto:oj@oliviajones.co.za">oj@oliviajones.co.za</a> 



Event-related queries: <a href="mailto:events@abn360.com">events@abn360.com</a>

Website:<a href="http://www.Leadingwomensummit.co.za">www.Leadingwomensummit.co.za</a>

Africa’s most dynamic thought-leaders, industry game-changers and icons of social activism set to feature at the exclusive FORBES WOMAN AFRICA 2020 Leading Women Summit

CAPE TOWN (Reuters) &#8211; South Africa is planning to create a new power generating company separate from struggling state-owned utility Eskom to boost energy security, senior officials said on Thursday.



Eskom, which generates more than 90% of the country’s electricity, is mired in financial crisis and suffers frequent breakdowns at its coal-fired power plants, forcing it to implement power cuts that have dented economic output.



Eskom’s problems have been a major concern among investors at industry conference the Mining Indaba this week.



“There is going to be a separate entity to Eskom, but the issue is not Eskom or no Eskom, the issue is security of energy supply,” Mineral Resources and Energy Minister Gwede Mantashe said on the sidelines of the conference in Cape Town.



Details surrounding the plan for the new generating company are still hazy.



Mantashe said he wanted industry to partner with the government on its formation, but it is not clear what that partnership would entail. It is also not clear which generating technologies it would employ.



Director-general in the Department of Mineral Resources, Thabo Mokoena, echoed Mantashe’s comment that the main aim of the new company would be to improve energy security but did not elaborate further.



Reporting by Tanisha Heiberg; Editing by Alexander Winning and Mark Potter

South Africa plans to create new generating firm to boost power security, what you need to know

DOHA (Reuters) &#8211; Qatar Airways is in talks to buy a 49% stake in Africa’s RwandAir, and is interested in doubling its holding in LATAM Airlines Group to 20%, its chief executive said on Wednesday.



A stake in an African airline would widen its reach in one of the world’s fastest growing aviation regions, and potentially help it bypass restrictions imposed on it by some Arab states.



“We are very tough negotiators &#8230; we will take our time to negotiate,” Qatar Airways Chief Executive Akbar al-Baker told reporters in Doha.



Qatar Airways already owns stakes in British Airways-parent International Airlines Group, China Southern, Cathay Pacific, and LATAM.



It bought some of its stakes in other airlines since once-lucrative markets the United Arab Emirates and Saudi Arabia banned it from its airspace following a regional political dispute.



Qatar Airways has been forced to fly longer routes to avoid the blocked airspace of some of its neighbours.



The ban does not apply to non-Qatari airlines flying to Qatar. RwandAir could potentially carry passengers from Africa over the blocked airspace to the state-owned airline’s Doha hub without any airspace restrictions.



RwandAir could not be immediately reached for comment.



Qatar Airways agreed in December to take a 60% stake in a new airport in Rwanda.



Baker, one of aviation’s most well-know executives, also said the airline could be interested in increasing its holding in LATAM, and working with fellow shareholder Delta Air Lines.



“When the right opportunity comes and at the right price we will look at increasing our investment in LATAM,” he told Reuters.



Qatar Airways, which holds a 10% stake, would be interested in having a stake that is the “same like Delta,” which is 20%, he said.



Delta surprised the industry when it announced in September it was taking a $1.9 billion 20% stake in the South American airline group.



Qatar Airways has historically had a contentious relationship with Delta and other major U.S. carriers, which have accused Gulf airlines of receiving unfair government subsidies, distorting competition and costing Americans jobs. The Gulf carriers have rejected such accusations.



However, Baker said had no ill-feeling towards Delta, and was willing to work with the U.S. airline at its hub in Atlanta.



“We can transfer passengers on each other. We are the only Middle Eastern carrier going into their hub so there is huge opportunity,” he said.



Qatar Airways has also expressed interest in taking a stake in India’s IndiGo and Morocco’s Royal Air Maroc. A transaction with either airline has yet to take place.



Reporting by Alexander Cornwell; Editing by Peter Graff

Qatar Airways in talks to buy 49% RwandAir stake

LILONGWE (Reuters) &#8211; Malawi’s Constitutional Court on Monday annulled the May 2019 presidential vote that declared Peter Mutharika a winner and ordered a re-run after an application from opposition parties citing irregularities.



Mutharika, Malawi president since 2014, won the election with a 38.57% share of the vote, with opposition party leader Lazarus Chakwera getting 35.41% and Deputy President Saulos Chilima, who formed his own party, had 20.24% in the final tally.



The electoral commission declared Mutharika the winner despite complaints of irregularities including results sheets with sections blotted out or altered with correction fluid.



Mutharika had pledged to crack down on corruption and revive the economy in his second five-year term.



But Chakwera, the president’s main rival, and Chilima rejected the results and filed a petition to the High Court asking it to nullify the results.



In a unanimous decision, a panel of five judges ordered that a new presidential vote be held within 150 days.



“It is almost impossible to have an election free of irregularities,” said Justice Healey Potani, who headed the panel. “However, in the present matter our finding is that the anomalies and irregularities have been so widespread, systematic and grave such that the integrity of the result was seriously compromised, and can’t be trusted as the will of voters of the May 21, 2019 election.”



In a landmark ruling for the country, the court describe the conduct of the electoral commission as “very lacking and demonstrated incompetence”.



The status in the presidency would revert to before the elections, Potani said, which meant Chilima would be reinstated as vice president.



The court also directed Parliament to consider recalling the current electoral body, which is headed by Supreme Court of Appeal Judge Jane Ansah, to “ensure smooth conduct of fresh elections.”



The streets in Lilongwe and the commercial capital Blantyre were unusually quiet ahead of the ruling, and many businesses were shut, fearing violence and looting from supporters of the losing side.



Security forces were out on the streets in large numbers, and the judges delivering the verdict were flown in on a military plane and arrived at the venue in armoured vehicles.



Malawi, a lakeside nation on the southern tip of the Great Rift Valley, is dependent on foreign aid and is frequently beset by drought which threatens the lives of thousands of people.



Former law professor Mutharika, 79, oversaw infrastructure improvements and a slowdown in inflation in his first five-year term, but critics accuse him of cronyism and failing to tackle graft.



Reporting by Frank Phiri; Editing by Grant McCool and Lisa Shumaker

Malawi court annuls President Mutharika’s 2019 election victory, here’s why

NAIROBI/LAGOS, Nigeria (Reuters) &#8211; An Eritrean father yearning to be reunited with his four children after 15 years apart. An American woman adopting a Nigerian toddler. A Nigerian man desperate to be with his American wife and children. 



These are some of the families waiting to see how they will be affected by President Donald Trump’s expansion of the U.S. travel ban.



Awet, who asked that Reuters use a nickname to avoid reprisals against his family, fled Eritrea in 2005. He is now a U.S. citizen.



Awet described how he hugged his four young children hard, whispering only to his weeping mother that he was leaving forever. For three days, he said, he hid under rocks by day and dodged hyenas and soldiers at night as he tried to cross the border.&nbsp;



Awet spent four years as a refugee in Ethiopia and Kenya before being resettled to the United States in 2009. When a 2018 peace deal between Ethiopia and Eritrea made it possible for the children to leave Eritrea safely, he finally dared hope he would see them again.&nbsp;Awet had been trying to bring his children over on family visas for the past year.



But on Friday, Trump, a Republican, issued an expanded version of his travel ban that suspended immigrant visas &#8211; a category that includes family visas &#8211; for Eritreans and Nigerians.&nbsp;The other countries with new restrictions are Kyrgyzstan, Myanmar, Tanzania and Sudan.



U.S. Homeland Security acting Secretary Chad Wolf said the restrictions were needed because the six countries had failed to meet U.S. security and information-sharing standards. But U.S. House of Representatives Speaker Nancy Pelosi, a Democrat, called the ban “discrimination disguised as policy.” [nL1N2A020Z]



“Trump’s new law, for us, it’s very hurtful,” said Awet, speaking by phone from his home in the United States. “At least let the children in &#8230; those who want to come to be with their mother or father.”



Awet said he is still praying that he will see his children &#8211; now aged 14-18 &#8211; again one day. Their mother is in the Middle East.



“I’m leaving it to God,” he told Reuters.



“God and a lawyer,” his attorney Kari Scofield chimed in.



<h3 class="wp-block-heading">“YOU ARE POWERLESS”</h3>



In the West African powerhouse of Nigeria, 37-year-old Californian Lynsey Elston is waiting to find out if or when her newly adopted daughter will be able to meet the rest of the family back in the United States.



The former social worker always wanted to adopt. Three-year-old Eliana Ezinne arrived at her home in Nigeria on Christmas Eve 2019 after years of paperwork, interviews and uncertainty.



“This is my child,” she said as she cuddled the sleepy girl. “I can’t be separated from my child.”



Hasan Shafiqullah, head of the Immigration Law Unit at The Legal Aid Society in New York, told Reuters that Elston can apply for Eliana’s citizenship only from inside the United States, and Eliana can enter only on an immigrant visa.



The 2017 version of the travel ban outlines which groups can qualify for waivers, including adoptees, and the expanded ban says it will follow the same guidelines. But the system for obtaining waivers has proven opaque and difficult to navigate, and there is an ongoing federal lawsuit challenging the government’s implementation of the process.



“The emotion I am feeling is anger,” Elston said at her home in an upscale neighbourhood of Lagos.



In the same city, a 38-year-old Nigerian man quit his job last month as he prepared to move to the United States with his two toddlers and wife &#8211; all U.S. citizens. He asked for anonymity to avoid prejudicing his visa application.



The man said his mother and two sisters, also U.S. citizens, live in America, and he studied there and lived there for a decade. He wanted his children to grow up near his family, he said, and he considers America his second home.



Asked what he will do if he cannot get a visa to move with his family, he drew in a long, slow breath and went silent.



“I’m afraid to even consider that,” he said at last. “You really are powerless.”



Reporting by Ayenat Mersie and Libby George; Additional reporting by Mica Rosenberg in New York; Writing by Katharine Houreld; editing by Alexandra Zavis and Leslie Adler

Families in Africa fear impact of U.S. immigration ban, what you need to know…

By <a href="https://www.cnbc.com/karen-gilchrist/">Karen Gilchrist </a>



For decades, political and economic policies have been built on the promise of helping people do better than the generations before them. But still today, in 2020, the opportunities we get in life remain largely dictated by the socio-economic circumstances we’re born into.



That’s the finding of a new report from the&nbsp;<a href="https://www.cnbc.com/davos-world-economic-forum/">World Economic Forum</a>, which says that most countries are failing to stamp out historical inequalities that prevent people from realizing their full potential.



In its inaugural&nbsp;<a href="https://www.weforum.org/reports/global-social-mobility-index-2020-why-economies-benefit-from-fixing-inequality" target="_blank" rel="noreferrer noopener">Global Social Mobility Index</a>&nbsp;released Monday, WEF found that just a handful of governments — specifically those in Scandinavian countries — have succeeded in laying the foundations for greater social mobility and more prosperous futures for their citizens.



Social mobility refers to the ability for individuals, families or households to move between various socio-economic strata within a society.



The social framework has long been used as a measure of a society’s socio-economic progress, comparing outcomes such as a person’s earnings versus their parents. However, WEF’s new report looks instead at inputs, such as the policies, practices and institutions within a society.



The report comes as leaders gather to discuss key global issues at WEF’s 50th anniversary in Davos, Switzerland.



<a href="https://www.cnbc.com/id/10000268">Denmark</a>,&nbsp;<a href="https://www.cnbc.com/id/10000281">Norway</a>, Finland,&nbsp;<a href="https://www.cnbc.com/id/10000286">Sweden</a>&nbsp;and&nbsp;<a href="https://www.cnbc.com/id/10000276">Iceland</a>&nbsp;— incidentally some of the&nbsp;<a href="https://www.cnbc.com/video/2020/01/09/why-finland-and-denmark-are-the-happiest-countries-in-the-world.html">world’s happiest countries</a>&nbsp;— ranked as the five most socially mobile countries, thanks to their supportive education and employment frameworks.



Other major economies like the&nbsp;<a href="https://www.cnbc.com/united-kingdom/">U.K.</a>&nbsp;(21st),&nbsp;<a href="https://www.cnbc.com/id/10000385">U.S.</a>&nbsp;(27th),&nbsp;<a href="https://www.cnbc.com/china/">China</a>&nbsp;(45th) and&nbsp;<a href="https://www.cnbc.com/india/">India</a>&nbsp;(76th), however, failed to make the top quartile.



To conduct the research, WEF benchmarked 82 countries according to 10 pillars deemed necessary for cultivating social mobility. Those included health care, education, technology access, work opportunities, working conditions, fair wages, social protection and inclusive institutions.



WEF&#8217;s Global Social Mobility Index Ranking 2020 



<div class="wp-block-image"><figure class="aligncenter size-large is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2020/01/Make-it-WEF.png" alt="" class="wp-image-353936" width="479" height="559" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/01/Make-it-WEF.png 469w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/Make-it-WEF-257x300.png 257w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/Make-it-WEF-359x420.png 359w" sizes="auto, (max-width: 479px) 100vw, 479px" /><figcaption> Source: <a rel="noreferrer noopener" href="https://datawrapper.dwcdn.net/oTOMN/2/" target="_blank">World Economic Forum</a>  <a href="data:application/octet-stream;charset=utf-8,Country%2CRank%20(Out%20of%20100)%0ADenmark%2C85.2%0ANorway%2C83.6%0AFinland%2C83.6%0ASweden%2C83.5%0AIceland%2C82.7%0ANetherlands%2C82.4%0ASwitzerland%2C82.1%0AAustria%2C80.1%0ABelgium%2C80.1%0ALuxembourg%2C79.8%0AGermany%2C78.8%0AFrance%2C76.7%0ASlovenia%2C76.4%0ACanada%2C76.1%0AJapan%2C76.1%0AAustralia%2C75.1%0AMalta%2C75%0AIreland%2C75%0ACzech%20Republic%2C74.7%0ASingapore%2C74.6">Get the data</a>  <a rel="noreferrer noopener" href="https://www.datawrapper.de/_/oTOMN/" target="_blank">Created with Datawrapper</a> </figcaption></figure></div>



In particular, it found that most countries lagged behind in four areas: fair wages, social protection, working conditions and lifelong learning.



Social mobility — or a lack of it — has serious implications not only for individuals, but also for the societies they live, the report noted. While some nations have taken steps to build more inclusive systems, much remains to be done to get the foundations right, according to WEF’s founder and executive chairman, Klaus Schwab.



“The social and economic consequences of inequality are profound and far-reaching: a growing sense of unfairness, precarity, perceived loss of identity and dignity, weakening social fabric, eroding trust in institutions, disenchantment with political processes, and an erosion of the social contract,” Schwab.



“The response by business and government must include a concerted effort to create new pathways to socioeconomic mobility, ensuring everyone has fair opportunities for success.”



This article was first published on CNBC <a href="https://www.cnbc.com/2020/01/21/wef-where-youre-born-determines-the-opportunities-you-get-in-life.html">https://www.cnbc.com/2020/01/21/wef-where-youre-born-determines-the-opportunities-you-get-in-life.html</a> and is republished with its permission.

Child_Poverty_Shutterstock

Where you’re born determines the opportunities you get in life, says the World Economic Forum

LONDON (Reuters) &#8211; Prime Minister Boris Johnson will call for deeper investment ties between Britain and Africa at a summit for leaders of 21 African countries on Monday that comes days before his country will leave the European Union.



After securing Britain’s departure from the EU, the world’s largest trading bloc, on Jan. 31, Johnson is keen to develop business ties with countries outside Europe.



At the summit in London, Johnson will call for Britain to be the “investment partner of choice” for Africa. He will highlight deals worth billions of pounds with countries on the continent, underlining the roles British companies are playing in providing anything from smart street lighting in Nigeria to environmentally friendly breweries in Kenya.



The prime minister will also announce an end to British support for thermal coal mining or coal power plants overseas, according to a statement issued before the summit’s start.



Reporting by Elizabeth Piper; Editing by Pravin Char

UK’s Boris Johnson is pushing for deeper trade ties with Africa as Brexit nears

NAIROBI (Reuters) &#8211; Kenya is in advanced talks with the World Bank for “a fairly priced” loan of up to 100 billion shillings ($991.57 million), nearly half of its required external funding this fiscal year, a senior Treasury official said on Friday.



The East African nation wants to cut debt from overseas capital markets, after a borrowing binge in recent years, including Eurobond offerings, a package of Chinese loans and syndicated commercial loans.



The World Bank, which has multiple development funding programs with Kenya worth billions of dollars, is seen as one of the viable alternatives to commercial debt.



The Washington D.C.-based financier lent money straight to the Kenyan ministry of finance for the first time last year, changing past practice where it channelled cash straight to the projects, bypassing the Treasury.



The size of the loan from the World Bank will be determined by how much its own funders can put together, said Julius Muia, the principal secretary in the ministry of finance.



“We are thinking something between 50-100 billion (shillings) depending on what kind of interest there will be,” he told Reuters.



The loan will be cheaper than commercial debt, the official said, in line with the government’s policy of cutting its funding costs.



“It is very competitive, it is fairly priced,” Muia said, adding it was likely to be just above the bank’s concessional rate of 200 basis points in interest.



Kenya became a middle-income country in 2014 after it rebased the economy, meaning it cannot secure funds from the World Bank at the concessional rates offered to low-income states.



The finance ministry has set a budget deficit of 6.3% of GDP for this financial year to the end of June and Muia said about 213 billion shillings is expected from external sources.



The balance of the funds will be raised through Kenya’s first sovereign green bond, he said, with the country taking advantage of next week’s UK-Africa investment summit in London to gauge investor demand for the potential issue.



“It is taking shape as we go,” Muia said.



The Treasury projects that the budget deficit will shrink to 5.7% of GDP in 2020/21. The gap, which peaked at 9.1% of GDP in 2016/17 financial year, is expected to narrow further to the desired level of 3.3% in 2023/24.



Muia said he was confident that this year’s deficit will be fully covered through affordable loans.



“We are very clear in our minds that we want to keep the cost of debt down.”



($1 = 100.8500 Kenyan shillings)



Editing by Muralikumar Anantharaman &amp; Shri Navaratnam

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Special Report

Experts share their best advice for making your first investment

U.S. to offer financial support for this East African country’s political reforms

Zimbabwe central bank leaves rates unchanged, bullish on inflation, what you need to know…

Op-Ed: Sudan’s Bashir one step closer to the ICC

South Africa’s Eskom plans to spend up to $27 million on severance packages

Fintech innovations offer alternative to credit traps

Portugal prosecutor orders seizure of Africa’s richest woman Isabel dos Santos’ accounts

Do these 4 things in your 30s if you want to be richer in your 40s, money experts say

South Africa Q4 unemployment rate remains unchanged at 29.1%

Africa’s most dynamic thought-leaders, industry game-changers and icons of social activism set to feature at the exclusive FORBES WOMAN AFRICA 2020 Leading Women Summit

South Africa plans to create new generating firm to boost power security, what you need to know

Qatar Airways in talks to buy 49% RwandAir stake

Malawi court annuls President Mutharika’s 2019 election victory, here’s why

Families in Africa fear impact of U.S. immigration ban, what you need to know…

Where you’re born determines the opportunities you get in life, says the World Economic Forum

UK’s Boris Johnson is pushing for deeper trade ties with Africa as Brexit nears

Kenya is in talks with World Bank for $1 billion loan

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