Author: James Wambua

Ratings agency Moody’s has downgraded Kenya’s local and foreign-currency long-term issuer ratings to Caa1 from B3, with a negative outlook. This downgrade ushers the economy into an era of reduced capacity to rollout revenue-based fiscal consolidation. The move also has broader implications for the country’s near-term economic stability. East Africa’s giant economy is at a pivotal moment following ratings agency Moody’s move to downgrade its local and foreign-currency long-term issuer ratings to Caa1 from B3, with a negative outlook. This downgrade, which comes just a week after a three-week nationwide revolt forced the government to shelve the Finance Bill 2024,…

South African rating agency GCR has upgraded Shelter Afrique Development Bank’s global scale long issuer rating to B from B- and affirmed a stable outlook. Additionally, GCR has upgraded the national scale issuer ratings for Kenya, Nigeria, and Mauritius, all with stable outlooks, while recognizing Shelter Afrique’s transition to a treaty-based entity and strategic efforts to address capital arrears. This transformation has improved the bank’s operational and financial performance, enhanced governance, and solidified its legitimacy and confidence among members. South African rating agency GCR, has upgraded Shelter Afrique Development Bank’s (ShafDB) international scale long issuer rating to B from B-…

Algeria tops countries holding airlines’ blocked funds in Africa at $261 million followed by countries within the XAF Zone that are trapping $140 million. Ethiopia has $115 million in blocked funds for airlines while its neighbour Eritrea is sitting on $75 million. Zimbabwe closes the top five countries with blocked funds at $69 million. Airlines across the world continue to struggle to repatriate their profits, with several African countries accounting for the bulk of blocked funds at $880 million. This amount, which represents 52 percent of the total $1.68 billion blocked funds globally continues to act as a hindrance to…

The top unserved routes identified by Airbus are in Africa’s biggest cities, Nairobi, Lagos, Cape Town, Dakar, and Douala. Despite significant traffic between certain city pairs, Airbus notes that some of these routes lack regularly scheduled non-stop flights. Overall, Airbus forecasts a 4.1% growth in air traffic over the next 20 years, resulting in demand for 1,180 new aircraft by 2043 across Africa. An analysis by global aviation giant Airbus has revealed several key unserved airline routes in Africa that could provide greater connectivity for travelers, and drive economic growth in the economies while offering fresh income streams for airlines.…

The EU-Kenya agreement will boost bilateral trade in goods, increase investment flows, and strengthen the ties between these partners. It is also expected to facilitate mutually advantageous economic relations sustainably, stimulating job creation and economic growth. The EU-Kenya EPA is the most ambitious deal negotiated with an African country in terms of sustainability and can serve as a template for other sustainable trade agreements. The activation of the EU-Kenya Economic Partnership Agreement (EPA) on July 1st, 2024, marks a historic moment in the growing economic relations between Kenya and the European Union. According to a statement from Kenya’s Ministry of…

Ashden says these trailblasers, armed with groundbreaking technologies and innovative solutions, stand at the forefront of the battle against global warming. Climate charity Ashden has called for financiers, investors, and policymakers worldwide to step up support for proven climate solutions that hold the keys to our sustainable future. The Ashden Awards recognise inclusive solutions that deliver a wide range of benefits, from new jobs to community resilience and lowering emissions. In an era marked by increasing environmental crises and the relentless march of climate change, the call for innovation has never been more urgent. Climate charity Ashden has called for…

The IMF forecasts that Zimbabwe’s economy will decelerate to about 2% this year, down from 5.3% in 2023, due to a severe El-Niño-induced drought. Declared a national disaster in April 2024, the El-Niño-induced drought in Zimbabwe has severely hit agriculture, and tourism while sparking human-wildlife conflict. Traditional grain suppliers Zambia and Malawi are unable to meet Zimbabwe’s needs, compelling Harare to import GMO maize from South Africa. The International Monetary Fund (IMF) has projected that Zimbabwe economy will decelerate to about 2 percent this year, down from 5.3 percent in 2023, primarily due to a severe El-Niño-induced drought, which has…

ATIDI supports the 35MW greenfield geothermal project in Kenya with its Regional Liquidity Support Facility (RLSF). The project, the first to be considered for RLSF cover in Kenya, is set to benefit from ATIDI’s liquidity instrument which will cover the risk of payment default by public entities: Geothermal Development Corporation and Kenya Power. Kenya’s power sector benefits from an active private sector and boasts abundant renewable energy resources with hydro, wind, and geothermal projects dominating its energy mix. Regional Liquidity Support Facility (RLSF) The African Trade and Investment Development Insurance (ATIDI) and Globeleq Africa Limited, have jointly announced the former’s…

Ruto has bowed to public pressure and withdrawn the Finance Bill 2024, a piece of legislation that contained contentious tax increases. His move follows deadly protests that engulfed Kenya on Tuesday leaving 22 dead and part of parliament set ablaze. President Ruto: “It is clear that Kenyans want nothing to do with the bill. I concede.” Kenya’s President William Ruto has bowed to public pressure and withdrawn the Finance Bill 2024, a piece of legislation that contained contentious tax increases, following deadly protests that engulfed Kenya on Tuesday. The demonstrations, which saw parts of the parliament set ablaze, have been…

MSMEs and the e-commerce sector in Kenya are emerging as a formidable force driving economic growth. With over 7.4 million MSMEs contributing about 40 percent of the country’s GDP, their potential to boost the economy is huge. With internet penetration in Kenya currently above 74 percent, the country is well-positioned for e-commerce growth banking on an expanding middle class. In a world where technology continuously reshapes the business scene, the relationship between Micro, Small, and Medium Enterprises (MSMEs) and the e-commerce sector in Kenya is emerging as a formidable force driving economic growth. This dynamic was highlighted during a recent…