Author: Joseph Kangethe

Tropical storm Ana in January 2022 affected 180,869 people, injured 207 people, killed at least 38 people and flooded a total of 70,982 hectares of land. In two weeks, Madagascar, the most cyclone exposed country in Africa, experienced both Ana and Batsirai cyclones. The strength of Cyclone Batsirai could increase and spread to other countries in the Southern Indian Ocean. Several cyclones, from Cyclone Ana, Batsirai, Idai, Eloise, Kenneth and Tropical Storm Chalane, have tormented the southern part of the African continent – from South Africa, Mauritius, Madagascar, Mozambique, Malawi and Zimbabwe. A cyclone is a tropical storm with heavy…

Traders holding the Cardano token will obtain loans of up to 70 per cent of the ADA tokens they hold. The concept of decentralization and blockchain technology can replace traditional financial services such as commercial banks. Cryptocurrencies can also be used as an investment tool, and so can Cardano (ADA).  The government of Ethiopia and Cardano Development had sealed an agreement to introduce 5 million secondary school students and 700,000 teachers on the Cardano blockchain app. The downside of taking loans on Cardano is that the borrowers will have to self-manage the risk of the fluctuating Cardano price. Cardano (ADA)…

The hydropower project is worth an estimated US$1.3 billion that will see Ethiopia import 400 Megawatts of power annually. The World Bank approved US$684 million for the power line in 2012- Kenya got US$441 million of the share, and Ethiopia got US$243 million- raising eyebrows why the project has not been completed ten years later. The project started in 2012, but Ethiopia has blamed Kenya for the delays even after several lenders allocated funds for the project. Kenya Ethiopia Electricity Trade President Uhuru Kenyatta’s administration has reached a new agreement with Ethiopia to gear up further the purchase of cheap…

The evolution has allured intensive participation in the lending sector, stimulating the growth of the Nigeria Domestic Credit by 16.2 per cent year on year as of December 2021. There is no lending limit for the MFBs, and the Central Bank of Nigeria charges N400,000 to N500,000 for their registration. Operations are limited to Lagos State. The Money Lenders license is issued and regulated by the money lenders laws of the 36 states in Nigeria. The business of lending in Nigeria has metamorphosized from the traditional system to a more digitally enabled flexible system for a faster and more convenient…

Fitch has added that the impossibility to borrow on international capital markets has triggered further downgrades in the credit ratings of the Sub-Saharan countries.

Angola and Gabon have witnessed their credit ratings upgraded in recent months. The upward trend refers to the surge in oil prices globally, which has boosted the finances of the two countries.

Several countries projects to experience rapid economic growth as the tourism industry recovers from the pressure exerted by the COVID-19 pandemic and more mineral sources continue to be discovered in the continent.

The Tanzania Cereals and Other produce Board (CPB) reported that the grain stores in Juba and Lubumbashi were already experiencing a vibrant business environment. They also expected the Mombasa facility to outperform the two.

According to the 2019 Statistics, Tanzania exported more than 97,000 tonnes of maize. This factor opened the country to the opportunity of launching its grain surplus scheme with the Southern Agricultural Growth Corridor of Tanzania (SAGCOT).

SAGCOT was established in 2010 to create a transformed and economically viable agricultural sector in Tanzania that protects food security, enhances environmental sustainability, and improves livelihoods. The Agricultural growth corridor uses 350,000 hectares in the fertile southern islands of Tanzania to grow maize, wheat, paddy, sorghum, cassava, millet, beans, bananas and sweet potatoes.

The Central Bank of Kenya added that all countries in the region needed to participate in flattening the multi-layered correspondent banking structure and shortening the payment chains for a digital currency to work.

The development of CBDCs has been on the rise. According to a 2021 survey of central banks by the Bank for International Settlements (BIS), 86 per cent of central banks are in the process of researching the potential for CBDCs, 60 per cent are experimenting on them, and 14 per cent were deploying pilot projects.

The CBK has maintained the cryptocurrency ban and has not issued a digital currency due to concerns about the risks of a CBDC.

Traders have been calling for more staff to be posted at the Agriculture Food Authority (AFA) of Kenya to facilitate the approval of applications of maise import from Tanzania to Kenya. Additionally, the traders requested joint testing of aflatoxin to be undertaken in Arusha to reduce the number of rejections at the border.

Peter Musiba explained that the Tanzania Bureau of Standards (TBS) is tackling aflatoxin and has set outstations for testing in Dodoma, Singida and Shinyanga to facilitate the trade of cereals.

Paloma Fernanda, the Chief Executive of Cereals Millers Association, urged for a joint campaign on combating aflatoxin from as early as farm and post-harvest losses in the EAC region.

According to the 2022 Annual report released by Brand Finance Banking 500, the brand value of Equity Group stood at US$388 million. The report shows that Equity Group held position 338 overall but topped in Sub-Saharan Africa, outside of South Africa. This year, the world’s top 500 banking brands have recorded an upward trend, reporting a 9 per cent year-on-year brand value growth to reach an all-time high of US$1.38 trillion. Equity Group Foundation’s corporate social arm has scaled its operations to reach a total spend of US$513 million in social investment programs. Banking in Africa Equity Group Holdings, the…

Sixty-nine per cent of Kenyan businesspeople said that digital payments have positively impacted their businesses as they can easily track expenses and income returns, which reduces errors and enables faster transactions.

The Central Bank of Kenya (CBK) has been pushing mobile money payments recently. Last year, following the outbreak of the COVID-19 pandemic, the Kenyan government released a directive through CBK, instructing commercial banks and payment service providers to halt charges on all transfers from mobile money wallets and bank accounts.

Despite the positive trajectory in digital payments adoption in Africa, Visa says there still is room for improvement.