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- Emuwa brings to Africa Finance Corporation a wealth of experience over three decades.
- He has been a part of AFC’s Board since 2015, previously serving as the Board Risk and Investment Committee Chairman.
- AFC, with its partners, is the biggest investor in renewable energy in Africa
Africa Finance Corporation (AFC), the continent’s leading instrumental infrastructure solutions provider, has appointed Emeka Emuwa as Chairman of its Board of Directors.
Emuwa brings a wealth of experience spread over three decades, leading and transforming banking institutions across Africa.
After completing a 25-year career with Citibank, where he left as the Country Officer and Managing Director of Citibank in Nigeria, he went on to serve as the Group Managing Director and Chief Executive Officer of Union Bank of Nigeria.
In this role, he led the bank’s transformation. He worked successfully with the new shareholders to transform and restore one of …
- Non-performing loans in Kenya surged to a 16-year high of 15 per cent in August 2023.
- The Kenya Bankers Association had called for further monetary policy tightening by the CBK, terming it a cure to elevated non-performing loans.
- According to the CBK data, forex pressure cut lending to the private sector to 8.3 per cent during the review period.
The banking sector regulator has said that Kenya’s private sector players resorted to alternative funding sources to avoid the high lending rates, leading to a drop in non-performing loans during the holiday season.
The continued surge in bank interest rates has hit individuals and businesses hard on the back of the Central Bank of Kenya’s (CBK) elevated benchmark interest rate. This has happened thrice since Governor Kamau Thugge took office, citing the need to support the country’s struggling shilling.
On Tuesday this week, the Central Bank of Kenya increased the benchmark …
- The cost of borrowing in Kenya has been going up since October last year, when it was at 10.50 per cent, before two consecutive raises.
- This means banks are likely to adjust their interest rates upwards, pushing the cost of borrowing beyond the reach of many.
- The majority of bank rates are currently above 20 per cent, amid a high default rate as banks struggle with Non-Performing Loans (NPLs).
Higher interest rates to raise the cost of borrowing in Kenya
The cost of borrowing in Kenya is set for yet another rise if banks are to factor in the latest Central Bank of Kenya increase in the base-lending rate.
The Central Bank of Kenya (CBK) has raised borrowing costs to highs last seen nearly 12 years ago, as it moves to try and contain the country’s inflation, which has started to pick.
On Tuesday, the Monetary Policy Committee, CBK’s top …
- To facilitate the execution of these projects, Afreximbank will collaborate with Arise IIP.
- In May, the lender rolled out a $3 billion program aimed at spurring Kenya’s economic growth.
- The plan will also include the establishment of the $600 million e-mobility manufacturing plant in Kenya.
African Export–Import Bank, popularly referred to as Afreximbank, has entered into an agreement with Kenya that will see the lender identify key economic projects that it will finance and manage.
Under the deal signed on May 2, 2023, Afreximbank, through its subsidiary, will conduct a comprehensive feasibility study on these proposed projects. It will them provide the necessary financing for their implementation.
One of the major focus of Afreximbank in Kenya is to provide funding for various special economic zones spread across different counties. The initiative is part of the broader industrial parks development and investment plan for Special Economic Zones (SEZs) in Africa.
- Kenya is among countries that are heavily indebted with the loan stock at staggering 67.3 per cent of GDP.
- Total debt stood at $67.7 billion (Ksh9.6 trillion) as of April, Central Bank of Kenya data shows.
- This comprised $35.9 billion external debt and $24.6 billion borrowed from the domestic market.
President William Ruto is calling for “urgent” redesigning of global financial institutions to ensure fairness in financing of economies, as he continues to lash out at the West over debt traps in poor states.
In what seems to be a swing at the International Monetary Fund and the World Bank, Dr Ruto is pointing to a post-colonial Africa where development has stalled due to limited resources to liberate economies.
Lenders placing debt traps in poor States
This is from what Dr Ruto terms institutions that were extractive by design; only placing debt traps in poor states. Over the years, Kenya’s …
- The $100 million loan has been disbursed for onward lending.
- Coop Bank CEO says the funding “is most timely in view of the great need to better support our business customers.”
- The long-term tenure of the facility has significantly boosted Coop Bank’s ability to offer credit to SMEs.
The Co-operative Bank of Kenya has received a long-term seven-year funding amounting to $100 million from a consortium of financial institutions to empower Kenyan SMEs.
SMEs are a major source of employment in Kenya, providing jobs to a large number of people, especially in rural areas. They absorb a significant percentage of the labor force, thereby reducing the burden on the formal job market.
With a strong focus on climate and impact, the consortium lead DEG offers financing, advice and support to private sector enterprises operating in developing and emerging-market countries.
Loan to empower Kenyan SMEs
The loan is a Tier II …
- About 3.3 billion people are living in countries where debt interest payments exceed expenditure on health or education.
- African countries pay four times more for borrowing than the US and eight times more than wealthy European economies.
- UN Secretary-General António Guterres says growing debt burden is undermining global prosperity.
The United Nations has fired a warning shot on soaring global public debt, which hit record $92 trillion in 2022, saying that it risks sending more poor countries into the roiling economic crisis.
According to UN Secretary-General António Guterres, the swelling debt burden is undermining global prosperity. There has been a five-fold surge in public debt levels since 2000. Guterres says it “demands immediate action to tackle the escalating crisis affecting developing countries in particular.”
The UN Secretary-General underlined: “On average, African countries pay four times more for borrowing than the United States and eight times more than the wealthiest European …
The tightening of monetary policies in the US and Europe has had spillover effects on African markets. The challenging economic landscape has impacted interest rates and led to rising costs of debt servicing. As such, the African development bank has warned that Africa’s external debt could rise to $1.13 trillion this year from $1.1 trillion in 2022.…
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