Author: Kevin Odero

• Uganda’s diaspora remittances have seen 13.4% jump, reaching $1.42 billion.
• Remittances continue to outshine foreign direct investment and official development assistance as the primary source of external finance for low and middle-income countries.
• Economies are leveraging diaspora remittances through innovative financial instruments such as diaspora bonds and policies aimed at financial inclusion to enhance their impact on development.

Diaspora remittances from Ugandans living and working abroad increased by 13.4 per cent in the 12 months ending January 2024. This surge, as reported by the Bank of Uganda’s Executive Director of Research, Mr. Adam Mugume, highlights the increasing role of diaspora inflows in the nation’s economy, reaching $1.42 billion, up from the previous $1.25 billion.

Such growth underscores the essential contribution of the Uganda’s diaspora remittances amidst a challenging global financial landscape.

Globally, remittances have emerged as a critical source of external finance for low- and middle-income countries (LMICs), overshadowing foreign …

• Tanzania has offered the Uganda National Oil Company (Unoc) to use the Dar es Salaam port for oil importation.
• This presents a strategic alternative amid the ongoing importation stalemate between Uganda and Kenya.
• The legal dispute between Uganda and Kenya over oil importation policies is pending before the East African Court of Justice (EACJ), with indications that Uganda may withdraw the case.

Tanzania has stepped forward with an enticing proposition that Kampala finds hard to ignore, especially regarding the ongoing deadlock in Nairobi-Kampala oil imports.

Tanzania has extended an offer to the Uganda National Oil Company (Unoc) to utilise the Dar es Salaam port for its fuel importation needs. This development comes as Uganda explores alternatives in response to Kenya’s steadfast position on Kampala’s oil importation demands.

Uganda’s grievance at the East African Court of Justice (EACJ) remains pending amid these unfolding events, casting a shadow of uncertainty over …

• Hormuud Telecom has launched the 5G network across Somalia, enhancing the speed of internet and communication.
• This marks a significant leap towards a digitally inclusive society with reliable internet connectivity in the country.
• A 5G networks is set to stimulate economic growth, create jobs, and revolutionize public services such as healthcare and education.

Hormuud Telecom has unveiled its 5G network, marking a historic moment for its main market Somalia, which now enters into the elite group of African nations such as Kenya and Ethiopia that have embraced this cutting-edge technology.

Hormuud Telecom 5G signal is now present across 30 cities and towns, promising to revolutionize the speed of the internet and communication and transform Somalia’s digital economy.

Enhancing Communication with 5G Technology

The introduction of the 5G network by Hormuud Telecom signifies a monumental leap in improving internet connectivity’s speed and reliability across Somalia. President Hassan Sheikh Mohamud, along …

• AfDB grant aims to enhance Burundi’s productivity by four to five times and bolster agro-processing for increased domestic and export food availability.
• It also promises significant economic diversification, creating jobs, improving food security and nutrition, and strengthening regional trade.
• This investment can help safeguard the livelihoods of countless farmers against the increasing unpredictability of weather patterns due to climate change.

The African Development Bank (AfDB) has announced $80 million grant to bolster Burundi’s agricultural sector and transform the nation’s agricultural industry.

AfDB’s Director General for East Africa, Nnenna Nwabufo, revealed this financial pledge after meeting with Burundian Prime Minister Gervais Ndirakobuca in Bujumbura. This funding is poised to multiply the sector’s productivity by four to five times, with a keen focus on enhancing agro-processing capabilities to not only increase the availability of food within Burundi but also boost its export potential.

The collaboration between the AfDB and the Burundian government …

• The Uganda National Oil Company (UNOC) is directly importing petroleum products from Vitol Bahrain, aiming to reduce reliance on Kenyan firms and mitigate high fuel prices. 
• UNOC’s direct importation and sale of fuel to OMCs in Tanzania and Uganda is a significant step towards fostering stronger regional ties, promoting economic growth, and ensuring energy security. 

Uganda National Oil Company (UNOC) has started the sale of petroleum products to oil marketing companies in both Uganda and Tanzania.

This is part of a broader strategy to test the waters before UNOC embarks on a direct importation agreement with the global oil titan, Vitol Bahrain. This maneuver signals a new era in East Africa’s energy dynamics, especially following a cooling of relations between Uganda and Kenya over fuel supply mechanisms.

Breaking New Ground: Uganda National Oil Company Direct Importation Deal

For years, Uganda’s fuel supply chain was heavily dependent on Kenyan OMCs. However, …

• The upcoming US-Africa green and sustainable financing forum in Côte d’Ivoire aims to mobilize funding for infrastructure projects across Africa.
• Set for March 19–20, the workshop will feature industry leaders, US technical experts, and key financiers.
• The event highlights the critical need for renewable energy funding models, financing mechanisms, and regulatory and policy reforms to facilitate the growth of green and sustainable infrastructure.

To foster sustainable development in Africa, the United States Trade and Development Agency (USTDA) is joining forces with the African Development Bank Group to host the US-Africa Green and Sustainable Financing Workshop.

Set to go down in Abidjan, Côte d’Ivoire, on March 19–20, 2024, this event is poised to bring to the forefront the pressing need for green and sustainable infrastructure projects across the continent.

The workshop, a convergence of industry leaders, explores innovative financing models that can support Africa’s journey towards a resilient and sustainable future.…

• The complex relationship between struggling African economies and the IMF revolves around the necessity of bailouts and structural reforms to address economic crises while balancing the need for sovereignty and social welfare.
• Conditions imposed by the IMF aim to promote fiscal discipline, enhance economic stability, and ensure sustainable growth.
• The ongoing engagement with the IMF highlights the broader quest for a more equitable global financial system.

The International Monetary Fund (IMF) and its relationship with struggling African economies has been intricate and multifaceted. Often characterized by a mixture of dependence and resistance, this partnership comes to the forefront during periods of economic distress.

African countries, facing challenges such as debt, the aftermath of COVID-19, and external pressures such as the Russia-Ukraine conflict, have found themselves turning to the IMF for bailout assistance.

This dynamic has reignited discussions around the IMF’s role in fostering economic stability and growth through financial support …

• The African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative aims to close the $42 billion financing gap faced by women entrepreneurs, demonstrating that investing in women fosters gender-inclusive economic growth.
• By securing over $1.5 billion in investments for women-led SMEs and providing gender-smart banking training, AFAWA is changing financial institutions’ perceptions and practices, demonstrating the viability and profitability of supporting women entrepreneurs.
• AFAWA’s partnerships and educational programs build a more inclusive financial ecosystem, showcasing the initiative’s commitment to empowering women entrepreneurs and driving sustainable, inclusive economic development across Africa.

The African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) aims to invest in women and close the significant financing gap they face. Women entrepreneurs in Africa confront a daunting $42 billion disparity in financing compared to their male counterparts, largely due to misconceptions about their creditworthiness and a lack of collateral. Despite these challenges, …

• AfDB projects in Egypt and Côte d’Ivoire win at the 2024 Bonds, Loans & ESG Capital Markets Africa Awards.
• These projects showcase innovative financing, like Egypt’s Panda Bond and Côte d’Ivoire’s Sustainable Loan, promoting sustainable development in Africa.
• The awards highlight the significance of ESG criteria, demonstrating the Bank’s role in advancing economic sustainability and growth on the continent.

The African Development Bank has been at the forefront of driving significant financial initiatives across Africa, as demonstrated by its involvement in groundbreaking projects in Egypt and Côte d’Ivoire.  The prestigious 2024 Bonds, Loans, and ESG Capital Markets Africa Awards recently honored these projects, highlighting the innovative approach and impact of the bank’s efforts.

Strategic Achievements Through AfDB Projects

Two African Development Bank-supported ventures have garnered top awards in notable recognition of excellence and innovation. Egypt’s groundbreaking RMB3.5bn ($478.7 million) Sustainability Panda Bond issuance clinched the Sovereign, Supra, and Agency …

• AfDB has okayed $16 million to power The Gambia’s Agriculture and Food Security Project, aimed at enhancing food security and the incomes of vulnerable populations.
• This funding will expand the cultivation of climate-resistant crops, increasing agricultural productivity and benefiting over 18,000 small-scale farmers, especially women and youth.
• Beyond agricultural development, the project incorporates social security, nutrition, and gender equality initiatives, including expanding school nutrition programs for over 203,900 pupils.

A total of $16.08 million is set to enhance production for millions of people employed in Gambia’s agriculture value chain. This follows a move by the African Development Bank Group (AFDB) to approve the fresh funding allocation to enhance the Gambia’s food security initiatives.

The country’s ambitious Agriculture and Food Security Project, initiated in 2021, received the financial support on March 4. With this injection of funds, The Gambia is poised to make significant advancements in its agricultural sector, with a …