1. PSTNET

• Africa continues to grapple with food insecurity exacerbated by climate change and inadequate access to financing for both startups and food producers alike.
• In response, innovators and bold entrepreneurs are going digital, devising modern solutions to enhance food production.
• At the Africa Tech Summit in Nairobi, agri-innovation startups Homemade by Dropp, Koolboks, Samalife, BWS, Hello Tractor, Seabex and ReNile shared their entrepreneurial journey and reasons why they need financing to create value for farmers and consumers.

A number of startups with a focus on digital agricultural innovation in Africa are seeking fresh financing to scale and accelerate their growth across the continent, which is currently under pressure to feed a rising population.

These startups are eyeing opportunities in climate smart agriculture in Africa, the new frontier for business expansion globally.

Currently, agriculture remains the continent’s largest industry and employer. The industry is, however, facing significant challenges across the value chain, …

• Kenya’s Eurobond will positively impact the exchange, inflation, and interest rates.
• Diamond Trust Bank revealed that Kenya’s $1.5 billion Eurobond attracted more than $6 billion in demand.
• Kenya’s $1.5 Billion Eurobond will also be used to offset $2billion Eurobond maturing in June. 

The issuance of Kenya’s $1.5 Billion Eurobond is likely to ease concerns about the debt situation and lift the overall outlook for the country, one of the country’s banking industry players has said.

Diamond Trust Bank revealed that the new $1.5 billion Eurobond, which attracted demand of more than $6 billion, is likely to positively affect the exchange rate, inflation, interest rates, and government spending in the payment of debts and development.

Speaking at DTB’s Economic and Sustainability Forum, the bank’s Group CEO and Managing Director Nasim Devji said the recovery will be felt more in the second half of the year, and the economy will grow …

• 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 …

• Italy’s initial pledge of €5.5 billion ($5.95 billion) also includes guarantees, according to Italian Prime Minister Georgia Meloni.
• AU Commission Chairperson Moussa Faki welcomed the pledge, while noting that prior consultation on the Mattei plan with the African continent would have been desirable.
• The plan was named after Eni’s founder, Enrico Mattei, the initiative which seemed to be aimed at encouraging a holistic approach to dealing with African countries of interest to Italy.

Italy has unveiled a close to $6 billion funding plan to support African development, a move geared towards strengthening bilateral ties. The Italian government noted that the funding would go a long way to curb African emigration to Europe.

The funding was unveiled during the one-day Italy-Africa summit that took place in Rome, Italy, bringing together several African heads of state and high-profile global leaders in the development space.

The initial pledge of €5.5 billion ($5.95 billion), …

• Cameroon is highly vulnerable to climate change, with risks from recurrent droughts, floods, landslides, and coastal erosion.
• The funding will play an important role to support the country’s efforts to adapt to and mitigate the impact of climate change and replace more expensive financing.
• The reform measures under the RSF are also expected to reinforce the growing engagement of development partners and other stakeholders

The International Monetary Fund (IMF) has approved an 18-month arrangement worth $183.4 million for Cameroon under the fund’s Resilience and Sustainability Facility.

The allocation is equivalent to 50 per cent of quota, with disbursements to start when the first review of the arrangement is completed.

IMF highlights Cameroon as highly vulnerable to climate change, with risks from recurrent droughts, floods, landslides, and coastal erosion.

It however says the funding will play an important role to support the country’s efforts to adapt to and mitigate the impact …

• The IMF anticipates a peak in interest rates at the beginning of 2024, following a slower climb in 2023 across major economies.
• This will likely exert pressure on already struggling currencies across Africa.
• Notably, the US Federal Reserve is expected to witness interest rates reaching around 5.4%, with plans for rate cuts in Third Quarter.

Pressure on the weakening local currencies in African economies may persist for much of this year, with further depreciation against major currencies anticipated until the third quarter.

According to the International Monetary Fund (IMF), their latest interest rates forecast update for major economies covering the period from 2024 to 2028 projects a peak in interest rates at the beginning of 2024. This comes after rates continued to climb at a slower pace late last year.

US Federal Reserve interest rate

For instance, the US Federal Reserve is expected to witness interest rates peaking around 5.4 …