- Shareholders pressure Glencore spin off and disposal of coal business in two years
- Airtel Africa launches new data centre business Nxtra
- How Africa can cushion the blow of China’s economic slowdown
- Business conditions in Kenya remain in a steep decline amid inflationary pressures
- Making waves: Zanzibar’s quest to become Africa’s new tech hub
- Costly loans loom large as Kenya’s Central Bank hikes rate to 12.5 per cent
- Falling commodity prices dampen Zimbabwe’s 2024 economic growth prospects
- Youth-led African enterprises awarded $800,000 at COP28 for climate solutions
- The Central Bank of Kenya benchmark rate has gone up to 12.5 per cent from 10.5 per cent.
- Developing economies including Kenya are paying dearly for geopolitical tensions.
- The current US policy rate at 5.25 per cent -5.5 per cent is the highest in 22 years, exerting pressure on economies.
Borrowers in Kenya are facing the prospect of more expensive loans following the country’s central bank’s decision to raise its base lending rate to a near 11-year high of 12.50 per cent. This marks an increase from the 10.50 per cent rate that has been in place since June this year, when it rose from 9.50 per cent due to a rise in non-performing loans in the banking sector.
The hike in rates occurs as Kenya, along with other economies in the region, continues to grapple with the impact of global factors, including elevated interest rates in the United States. …
- The UAE Banks Federation (UBF) has committed to mobilize $270 billion in sustainable finance by 2030.
- His Excellency Abdulaziz Al-Ghurair, Chairman of the UAE Banks Federation, announced the pledge at an event jointly organized by the Central Bank of the UAE and the COP28 Presidency, aiming to support and facilitate global climate finance solutions and progress towards a sustainable future.
- UBF has been working closely with its partners on sustainability efforts to accelerate and advance sustainable development goals.
The UAE Banks Federation (UBF), the sole representative and unified voice of banks in the UAE, has committed to mobilize $270 billion in sustainable finance by the year 2030. His Excellency Abdulaziz Al-Ghurair, Chairman of UBF, announced the pledge at an event jointly organized by the Central Bank of the UAE and the COP28 Presidency, aimed at supporting and facilitating global climate finance solutions and progress towards a sustainable future.
“The pledge …
- UN Resident Coordinator in Kenya, Stephen Jackson, says the Africa Climate Summit goes beyond rhetoric—it’s about financing.
- Financing at scale to bring Africa’s climate solutions to the global marketplace is contingent on private sector participation.
- Currently, access to capital is limited, and when available, it often comes at a prohibitively high cost.
In Nairobi Kenya, a pivotal event is unfolding: the Africa Climate Summit 2023. Co-organized by the African Union (AU) and the Government of Kenya, this summit carries profound significance as it takes center stage in a continent on the frontlines of the climate crisis.
UN Resident Coordinator in Kenya, Stephen Jackson, summarizes the essence of this summit in his remarks, emphasizing that this event goes beyond rhetoric—it’s about financing. According to Jackson, here’s why the Africa Climate Summit’s focus on financing is of paramount importance.
Africa: A Crucible of Challenges and Solutions
Africa’s unique position in the …
- For millions of households in Uganda, remittances play a vital role in safeguarding food security, healthcare, savings and investment opportunities.
- IFAD data shows 75% of money sent to Uganda is used to fight poverty and improve access to nutrition, health, housing and education.
- The remaining 25 percent is used to support small businesses and facilitate access to financial products.
The UN’s International Fund for Agricultural Development (IFAD) has partnered with Stanbic Bank Uganda (SBU) in a plan to reduce the cost incurred by Ugandans sending money back home by half through a digital payment platform dubbed FlexiPay.
The partnership will also provide remittance recipients, especially in rural areas, with digital and financial training to promote the savings culture and foster digital finance uptake among these communities.
Cost of remittances in Uganda
At the moment, the average cost of sending money back home for Uganda’s migrant workers is 11.3 per cent, …
Standard Bank, Africa’s largest lender by assets, reported a remarkable surge in interim profit, demonstrating resilience in the face of adversity. The bank’s prudent approach and high-interest rates acted as countermeasures against escalating bad loans, resulting in a notable boost in profitability.…
- In 2021, 76 percent of adults had an account at a bank or regulated institution
- Financing will enable African nations to expand portfolio of digital financial solutions and initiatives
- The facility will be housed and managed by the African Development Bank,
India will contribute $2 million to the Africa Digital Financial Inclusion Facility (ADFI), in an effort to break the barrier to growth and spur uptake of digital financial solutions.
The facility will be housed and managed by the African Development Bank. It will mainly focus on accelerating financial inclusion in Africa, India said.
India is recognised globally for the success of its digital public payments system. The country’s collaboration with ADFI enables the facility to learn from best practices and help scale up initiative. The program aims to meet the needs of financially excluded and underserved people in Africa.
Africa yet to fully benefit from inclusion
Despite the growing …
- Uganda Auditor-General says out of $27.7 million meant for SACCOs under the Emyooga programme only $21.8 million was disbursed.
- Lawmakers say failure of Microfinance Support Centre staff to follow due diligence in loan disbursement was indicative of incompetence.
- Parliament tasks MSC officials to detail the efforts put in place to ensure that the intended beneficiaries receive the funding.
A report by the Auditor-General has revealed that Uganda’s Microfinance Support Centre (MSC) failed to absorb a total of $5.87 million (USh21.2 billion) of the Emyooga grant during the 2021/22 financial year.
In his report to Parliament, the Auditor-General observed that out of $27.7 million meant for SACCOs under the Emyooga programme, only $21.8 million was disbursed.
In a meeting on July 25, with officials from the Microfinance Support Centre (MSC), legislators on the Public Accounts Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) queried the way the funds were used.…