Year: 2020

Tanzania will subject the SGR to its first formal testing in May after the completion of the construction of the first phase in April.…

Uganda received 4,758 metric tons of rice for distribution to refugees and socially vulnerable people including those in communities hosting refugees.

Japan’s Ambassador to Uganda, H.E Kazuaki Kameda handed over the donation.

The donation was also topped up with the contribution of $640,000 in cash to meet associated costs like transportation, handling and storage.

‘Japan grants aid for the foods assistance program’ made possible for the food donation. A grant of about Ush 12 billion was given to the Ugandan government in 2017.

While addressing the media at the World Food Program warehouse in Nalukolongo, Ambassador Kameda said, “I’m happy to note that using this grant assistance, 4,758 metric tons of rice have been procured for the improvement of nutrition of at least 350,000 refugees and 150,000 host community members.”

The World Food Programme (WFP) and the office of the Prime minister will distribute the donated rice to the refugee …

The World Bank said Uganda’s 7 per cent projected growth rate under the National Development Plan (NDP) III, given the current economic fundamentals is too ambitious.

National Development Plan (NDP) III, is a government-working document for at least the next five years. It will start this year in the 2020/21 financial year.

Speaking during a media briefing in Kampala about the country’s economic outlook, the World Bank senior economist, Mr Richard Walker, said the government’s capital spending continues to fall, dropping to about 8 per cent in the last two financial years.

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Which he said has constrained Uganda’s fiscal policy which is characterised by low tax revenue to GDP ratio.
“Capital spending continues to fall short of expectations, diminishing the expected return from public investments. 5.3 per cent capital spending versing budget allocation of 6.4 per cent. This inability …

Uganda’s GDP grew faster than initially predicted in the 2018-2019 fiscal year, but the growth is still not fast enough for the government’s lower-middle-income status and poverty reduction ambitions.

The World Bank said that data estimates released in 2019 by the Uganda Bureau of Statistics show that real GDP increased at an annual rate of 6.5% in 2018-2019, higher than its previous estimate of 6.2%.

According to the bank, the expansion maintains the rebound in economic activity recorded over the last two years. It was “driven by strong levels of domestic consumption and sustained levels of public and private investment.”

In its 14th Uganda Economic Update report, the World Bank said that the Net foreign direct investment inflows rose to 5.1 per cent of GDP in 2018-19 from 3 per cent the previous year.

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“The construction sector continues to …

Digital skills gap and high cost of digital services and broadband are hindering Rwanda’s efforts to boost digital transformation, says the latest World Bank Economic Update on Rwanda.

The report reviews key building areas of Rwanda’s digital economy, highlights key progress made and challenges as the country hope to achieve high-income status by 2050 and upper-middle-income status by 2035.

Despite the public investment in digital public service delivery and digital infrastructures, the World Bank report notes that digital adoption needs to improve with interventions that will remove barriers to uptake, increase affordability and create local demand for digital services.

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According to the World Bank, increased digital transformation will only be possible if more users are brought online and become digitally enabled through greater access to digital devices and connectivity.

“Fundamentally to be part of the digital economy, people need to be connected; …

Rwanda’s I&M Bank has revised its Éclair Loan product where they will lend up to 17.5 times on one’s salary without collateral.

I&M Bank says that the move to increase unsecured loans to 17.5 times one’s salary from 12 times will respond to market demand and consumer needs.

The Executive Director I&M Bank Rwanda, Faustin Byishimo said that the move is also influenced by their experience over the years and adjustment in the regulatory framework.

He added that the efficiency of the Credit Reference Bureau has seen the availability of more reliable data giving them confidence on their move.

“There have also been changes in the local framework that has improved our confidence. For instance, due to the Credit Reference Bureau, One cannot just divert their salaries without due process. The data is cleaner and reliability is much higher,” he said.

To address the market demands, Byishimo said that they …

Tanzania’s Social Action Fund (TASAF), a poverty-reduction base will get a $562 million loan to support its second phase.

According to information from The Citizen, over $800 will be spent during the five years of implementing the phase, officially launched earlier today by Tanzania’s President John Magufuli.

Also, the information revealed that the rest of the amount will be sourced from various other development partners including the Opec Fund for International Development set to issue $50 million.

However, TASAF director-general Ladislaus Mwamanga, highlighted that the programme goals are set to empower poor households with funds, known as ‘Productive Social Safety Net’ with which they can conduct their income-generating activities.

The safety net which was initiated in 2000, had over 1.1 households in Tanzania with over 5.2 people enrolled in the programme.

During the launch, it was revealed that TASAF spent over $692 million in poverty alleviation programmes national wide.

Also, …

East Africa is facing a serious threat posed by billions of locusts–the most dangerous migratory pests, threatening food security in the region which is also enduring, through climate change, stress impacting food security in Somalia, South Sudan, Kenya and some parts of Tanzania.

According to the Food Security and Nutrition Working Group (FSNWG), East Africa is already being threatened with 19 million people facing acute food insecurity.

In January swarms of locusts made their presence known when they took an Ethiopian plane off course, and invaded Ethiopia, Somalia, Kenya and took Uganda and Tanzania in February.

This could be the worst case of locust outbreak over the decades. According to the Food and Agriculture Organization (FAO), there is an unprecedented threat to food security and livelihoods in the region, as a new swarm is forming and expected in March and April.

UN agronomy experts warned that the wave of locusts …

South African rand has taken a steady stance on Monday, after China intervened to soothe the virus tension and combat the outbreak economic backlash, via its rate cut approach, according to information from Reuters.

Reuters reported that, China’s central bank cut the interest rate on its medium-term lending on Monday as policymakers sought to cushion the drag on business from the outbreak that has immensely disrupted activity.

As of 0245 EAT, the rand was standing at 0.55 per cent firmer at 14.8966, adding to gains from Friday’s session spurred by largely positive reception of President Cyril Ramaphosa’s State of the Nation speech promising faster economic reformer.

Earlier this month, Reuters reported the rand slipped to 14.6570 per dollar on Monday 28 January, its weakest since Dec. 12, with the selloff largely driven by investors dumping emerging-market assets.

Further, the rand and other emerging market currencies had weakened amid investor fears …

Rwanda’s government is considering signing a concession agreement with Mota Engil Africa, as a technical partner in the construction of the Bugesera International Airport.

Rwanda seeks to mobilise its portion of the $1.3 billion needed to expedite works in the deal.

Mota Engil signed a contract in 2016 with the government of Rwanda to construct the new Bugesera International Airport, where it took 75 per cent of the stake while Rwanda’s government retained 25 per cent.

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According to the contract, Mota Engil was to build and operate the airport for 25 years, with an option of extending for more 15 years to recoup its investment.

In 2019 December, turn of events saw the government signing off a new deal with Qatar Airways which in turn pushed out Mota Engil.

In the deal, Qatar Airways took 60 per cent of stake in …