Author: Jack Oduor

• African Economic Outlook 2024 calls for an overhaul of the global financial architecture to transform African economies.
• Seventeen African economies are projected to grow by more than 5 per cent in 2024, potentially increasing to 24 by 2025.
• Growth in Southern Africa is projected to pick up slightly from an estimated 1.6 per cent in 2023 to 2.2 per cent in 2024

East Africa is projected to lead GDP growth on the continent, amidst global challenges, according to the African Development Bank Group’s African Economic Outlook 2024 report. This region is expected to see the fastest growth, with real GDP growth rising from an estimated 1.5 per cent in 2023 to 4.9 per cent in 2024 and 5.7 per cent in 2025.

However, the economic uncertainties in South Sudan and Sudan due to conflict have led to a downward revision of 0.2 percentage points for 2024 due to larger-than-expected …

• Kenya’s Export Promotion and Branding Agency has unveiled its strategic plan to grow Kenya’s export market to $11.5 billion by 2028.
• For established markets, Kenya aims to implement consolidation and diversification interventions.
• In the period Kenyan exports grew by over Sh2 billion into the country’s top 25 markets.

Kenya’s Export Promotion and Branding Agency has unveiled its strategic plan to grow Kenya’s export market to $11.5 billion by 2028. This will be a 10 percent increase from the $ 6.7 billion (Sh873.1 billion) recorded in 2022.

The agency through the implementation of the 2023/2024 – 2027/2028 strategic plan, says Kenya is set to be positioned among the top 50 global brands.

This renewed push comes at a time when Kenya’s export value for the first time in history hit $7.7 billion (Sh1trillion) in 2023, according to the 2024 economic survey by KNBS. The great performance was contributed by tea which …

• Key findings reveal a significant gender gap in digital technology use, with young African women often pressured to abandon social media
• The “Youth in Digital Africa” report calls for government investment in infrastructure and skills development
• Young African Women also face higher rates of online harassment and bullying

Societal norms and bullying have seen young African women lag in adopting digital technologies, a new survey has revealed. The report titled Youth in Digital Africa: Our connections. Our choices. Our future. has been released by Caribou Digital in partnership with the Mastercard Foundation.

The report compiles personal narratives from young people across Africa, providing insights into how digital technology influences their lives and offering recommendations to maximise its benefits.

The study identifies five key themes: access, skills, jobs, voice, and choice, highlighting the intertwined nature of digitalisation in their experiences.

Caribou Digital conducted a six-month study across seven African countries …

• The World Bank has approved a $1.2 billion loan to support policy and institutional reforms to address structural constraints in Kenya’s public finances.
• On climate, the financing will support Kenya’s investments in green public transport systems.
• Kenya’s $1.2 billion DPO facility is funded through a combination of financial instruments

Kenya has received a loan of $1.2 billion ( about KES156 billion) from the World Bank to help the country address short-term fiscal pressures and accelerate green initiatives. The new $1.2 billion Kenya Fiscal Sustainability and Resilient Growth Development Policy Operation (DPO), is the first in a series of three.

According to the multilateral lender, it has been prepared under an improved macroeconomic environment following government action to address the challenges that had overshadowed the economy including tight liquidity pressures, depressed investor confidence and limited capital inflows that had resulted in a rapidly depreciating shilling.

A Development Policy Operation (DPO) is …

• Burger Consumption in 2023 topped on March 10th recording the highest orders in Kenya
• Kenya ranks number in Sub-Saharan Africa for the highest number of burger orders delivered in the past 12 months.
• Chicken burgers remain the most popular, with ‘double’ burgers being the norm, and the Smash burger trend sweeping Kenya with a staggering 444 per cent growth.

Kenya has topped sub-Saharan Africa for the highest number of burger orders delivered in the past 12 months. Insights contained in Glovo’s annual report on burger consumption in Kenya show that Kenya saw a 35 per cent increase from May 2023 to April 2024.

This achievement makes Kenya the number one country in Sub-Saharan Africa for the highest number of burger orders delivered, with Nigeria and Uganda following respectively.

It also ranks Kenya second among all African markets in the number of customers with burger orders, just behind Morocco.

In total, …

• Kenyan Shilling drop to Sh100 against the dollar will mirror the pre-2020 levels 
• A weak shilling means costly imports and the burden is often passed to the consumers.
• The exchange rate affects how much we earn from exports.

Kenya Shilling strengthening against the US dollar to the pre-2020 level of about 101 can only be realised sometime in September, according to market analysts.

The latest monetary update by the international research body, Economic Intelligence Unit (EIU), shows the US dollar will remain bullish against the local currencies for much longer amid the high Fed rate which will be maintained for much longer.

“The Fed cuts will come later than we previously expected,” the report reads.

“We have pushed the forecast for the date that the Fed will begin reducing its policy rate to September, from June previously, and now expect a 50-basis-point reduction before year end (from 75 basis points …

• Sustainable Agriculture Farming Practices have been identified as the only way to ensure food security in the future
• Crop Life International launched its flagship commitment, the Sustainable Pesticide Management Framework (SPMF) program in 2021
• Kenya has made significant strides in pesticide management by integrating global best practices into its new pesticide law.

Kenya is among the nine countries in the world undertaking a $13 million (Sh1.7 billion) agriculture funding program over the next five years. The funding is aimed at supporting sustainable agriculture farming practices in the selected member states mostly targeted towards reducing harm caused by pesticides.

According to Crop Life International, Kenya is among the countries that have done well in Integrating global best practices into the new pesticide law, enhancing the national poison control center, and establishing an industry-wide pesticide container management scheme with 310 collection sites.

In its latest Annual Report for its Sustainable Pesticide …

• Green Student Housing in Kenya has not received much traction in the past few years.
• Stanbic Bank Kenya and South Sudan Chief Executive Dr Joshua Oigara said that the facility is at an advanced stage.
• The lender has so far mobilised about $122 million for green or sustainability-linked facilities

Stanbic Bank and MiDA Advisors will be partnering with real estate developer Acorn Holdings, to mobilise $700 million in long-term blended finance commitments for green student housing in Kenya that are affordable.

If successful the blended finance deal would mark one of the largest impact investment transactions in Kenya, with long-term impact on job creation, sustainable housing, and education.

Upon approval, the transaction will comprise a $180 million commitment from the United States Development Finance Corporation (DFC) that will secure over $380 million in equivalent Kenyan shilling financing arranged jointly by Stanbic Bank Kenya and MiDA Advisors, and $315 million in …

• Asset financing firms in Kenya remain unregulated, the only exception among the seven countries in which Watu Credit operates.
• This revelation came out during an ongoing inquiry by Kenya’s Finance and National Planning Committee on asset finance companies.
• In the probe, the CEO of Watu Credit acknowledged that Kenyan law lacks regulation of businesses operating in this market segment.

Purchasing assets directly can be expensive and risky and hold a company or individual back from expansion. Asset financing, therefore, provides a great option to acquire the assets an individual or business needs without shouldering hefty expenditures. The asset financing structure has benefits for both the lenders and the borrowers. Asset financing can take many forms, such as hire purchase, equipment lease, asset refinance, operating lease, or finance lease, depending on the kind of business you are involved in.

Investigation of Asset Financing Firms in Kenya

It has emerged that …

• Kenya’s education sector is set to receive nearly $32 million of investment from the United States to support new partnerships between the two countries.
• part of the investment, $850,000, will go towards supporting the Ed-tech Africa initiative
• The funding includes a new $24.5 million early-grade literacy program.
• USAID Counselor Clinton White signed the deal alongside Kenyan Prime Cabinet Secretary Wycliffe Mudavadi.

STEM education is a teaching approach that integrates Science, Technology, Engineering, and Mathematics related fields. Kenya’s education sector is set to receive nearly $32 million of investment from the United States to support new partnerships between the two countries. This is to drive innovation, research, and job growth in the country’s Science, Technology, Engineering, and Mathematics (STEM) related fields.

The funding announcement was made during the strategic partnership signing event in Atlanta, USA, during President William Ruto’s four-day US visit.

The US expects the deal signed on Tuesday to …