Author: Caroline Muriuki

Debt across East Africa continues to grow with Kenya’s risk of debts increasing from low to moderate.

Burundi has also joined a group of nine African countries with a high risk of debt distress. According to a US-based research firm, Brookings Institution, Kenya, Uganda and Tanzania rank among the top 50 countries in the world that are highly indebted to China.

According to the report, such countries are now shifting away from official multilateral creditors to non-concessional, (commercial) debt with relatively higher interest rates and lower maturities.

This has caused the International Monetary Fund (IMF) to raise a red flag over the rate at which East African countries are accumulating debt. Raising concerns about debts sustainability, the risk of higher refinancing of the debts and foreign exchange risks.

East African economies have fallen into a financial fix as they attempt to fund persistent budget deficits and implementing mega infrastructure projects …

Air France is expected to resume flights to Liberia, five years after it took a decision to end its two weekly flights.

On Monday Liberian president, George Weah confirmed the imminent return of Air France flights to the country.

“I am excited to announce the return of Air France to Liberia. This is a testament of the measures we have put in place to promote a conducive business climate – wherein we can attract more businesses and investments to Liberia,” the president said on Twitter.

He also added that the move was an affirmation of deepening relations between the two countries and that “Liberia is open for business.”

Sam Wlue transport Minister also confirmed that Air France notified the Liberian government of its intention to resume its Liberia route after months of negotiations.

Mr Jean Luc Mévellec, the airline’s regional manager informed the minister that the Monrovia’s Roberts International …

Rwanda has been ranked as the top destination to travel to in Africa 2020 and among the top 30 globally, a report by Travel Lemming which recognizes trending destinations.

The annual awards were published this week on the Travel Lemming site which promotes emerging destinations around the world giving a solution to over-tourism and encouraging travellers to think beyond the traditional “tourist traps.”

Winners were selected after voting by 30 of the most popular travel bloggers in the industry, who collectively have more than 12 million followers on social media.

Among the factors that were listed by voters on why Rwanda was an ideal destination is the country’s growing connectivity through the national carrier RwandAir, safety and conservation efforts.

Rwanda having been named as the safest country in Africa by the economic forum and RwandAir slated to open direct flights from JFK (New York) to Kigali gave the country …

The next edition of the United States-Africa Business Summit (U.S- Africa) will be held in June 2020 in Marrakech, Morocco, the Corporate Council on Africa (CCA) announced on Monday.

The CCA Board of Directors chose the Kingdom as the host of the 2020 Summit after a strategic process. According to the statement, Morocco having joined the African Union and signing the African Continental Free Trade Agreement, demonstrated its commitment to promote economic development in Africa, making it an ideal destination for the 2020 Summit.

Princess Lalla Joumala, Ambassador of the Kingdom of Morocco to the United States, urged businesses to take advantage of the unique opportunities that will be presented at the Summit. It will be the first time CCA will organize the summit in North Africa.

“As the gateway to Africa, Morocco is committed to increasing business and investment on the continent and is pleased to partner …

Uganda food inflation declines in spite of a failed harvest from the 2019 first crop season.

Uganda has maintained a relatively low food inflation rate at 1.9 per cent from the 2018 bumper harvest.
Since June 2018, the country has experienced a great harvest of maize, beans, sorghum rice; cassava, sweet potatoes and Irish potatoes that which has kept the prices of all staple foods low meaning households were able to meet their food needs.

Opolot Okaasai, a crop resource expert and former director at the Ministry of Agriculture Animal Industry and Fisheries said that 2018 was good since the first rains came on time across the country and floods came after the crops had been harvested.

This year however started on a difficult note for the country. Although the first quarter was affected by the two tropical cyclones that hit Mozambique and disrupted the country’s rain pattern despite it …

Ethiopia will soon start importing cheaper refined oil from South Sudan to cover the more expensive product from the Middle East.

Ethiopia’s State Minister for Mines and Petroleum, Koang Tutlam announced on Wednesday that the move will save Addis Ababa 15 per cent to 20 per cent on the $3.4 billion it spends importing an estimate of four million tonnes of refined products.

While speaking to the media attending South Sudan Oil and Gas Conference in Juba, Mr Tutlam said, “We import almost all of our oil and other refined products from the Middle East, but owing to the proximity of about 200km between the oilfields of Pagak and Adar and the Ethiopian border, we stand to save so much.”

Mr Tutlam further added that Ethiopia exports hydroelectric power to South Sudan and will soon export about 400MW to Kenya.

The oil and gas conference was organised by South Sudan’s …

Uganda’s monthly foreign exchange between banks stabilise at $20m

Speaking during a panel discussion on the current state of the financial markets at the Barclays Bank organised dealers meeting last week, Mr Peter Mbowa, the Barclays Bank (Absa) Uganda head of treasury, said there has been a steady inflow of foreign currency into the market.

He also noted that “On average, the volume of dollars traded in the interbank market is about $20m a month.”
He further added that wholly Uganda has a dollar demand of $800m per month with exports needing at least $300m in comparison with $500m for the import bill.

However, Mr Mbowa said the Ugandan currency market lacks sophistication and it cannot absorb large volumes of foreign currency.

During the meeting, Brenda Lwanga, a currency trader at Citi Bank Uganda, said that Ugandan shilling has been strong against the dollar because of a strong currency …

Zimbabwe plans to introduce a new currency in a bid to ease shortages of the bond note in one weeks time.

Zimbabwe’s central bank Governor, John Mangudya, said he would introduce a new currency to address biting liquidity shortages in the economy and regain monetary policy control.

The new currency will circulate alongside the bond notes and coins that were introduced in 2016. It will consist of 2 dollar coins and 5 dollar notes the governor said.

In a press briefing, he said the new currency would be introduced in phases to avoid fueling inflation, adding that the new Zimbabwe dollar will trade at par with the bond notes and coins.

“This additional cash injection will be carried out through the non-inflationary exchange of Real-Time Gross Settlement (RTGS) money for physical cash,” he said.

Zimbabwe is currently using electronic money known as RTGS, bond notes and coins after it banned …

Nigeria’s largest retail lender Access Bank acquired Kenya’s Transnational Bank starting its plans to open shop in all major Eastern Africa markets.

The bank is in the process of acquiring 93.57 per cent shareholding in Kenya’s private owned Transnational Bank at an undisclosed fee as its further eyes Tanzania and Uganda.

The Kenyan acquisition is expected to be concluded in the next 30 to 60 days as it awaits regulatory approvals.
The bank said it was seeking to expand in the region through acquisitions and setting up greenfield operations so as to deepen competition for customers with local rivals.

The lender said it had drawn a five-year plan from 2018-2022 which seeks to raise its retail and wholesale banking business and position itself as the world’s most respected African bank.

Access Bank controls over $13 billion worth of assets and over 27 million customers. In its plan to track record …

Egypt and South Sudan signed a Memorandum of Understanding in regard to cooperation in the field of downstream oil and gas, during the South Sudan Oil & Power (SSOP) 2019 Conference.

South Sudan will launch its first-ever licensing agreement in the first quarter of 2020 in regard to the 13 blocks onshore which will be open for tender.

As a testimony to the country’s growing attractiveness as an investment destination, the country hosted delegations and officials from Kenya, Ethiopia, Egypt, Somalia, Norway, United States and South Africa to discuss oil and future oil investments.

The Minister of Petroleum of South Sudan, Daniel Awow Chuang, expressed the country’s vision in the oil and gas sector which is experiencing increased production numbers.

“The oil production in South Sudan has reached 178 000 barrels per day. We hope to reach 250 000 barrels per day in the near future. …