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- With tightening monetary policies globally, many African economies are struggling with falling forex reserves.
- Low reserves have sent governments back to the drawing board strategising on how to survive future trends while balancing trade.
- With this, leaders and policymakers in Africa are engaging in the de-dollarisation conversation.
Kenya has sent a strong message to economies in Africa on the need to accelerate dedollarisation of cross-border trade, further amplifying the global conversation on reducing reliance on the US dollar as the main mode of payment.
For over a decade, China and Russia have sought to drastically lower their usage of the US Dollar in what is commonly referred as “dedollarisation”.
This is in a move intended at shielding their economies from possible trade-limiting US sanctions. The strategy also reduces their exposure to adverse effects of US economic and monetary policy, while also asserting global economic leadership.
China, Russia slowly cutting dollar
- Kenya’s Cabinet Secretary for Investment, Trade, and Industry Moses Kuria is leading a high-powered government delegation to London for the Economic Partnership Agreement and Investment meeting.
- Kenya is leveraging on the talks to intensify pitches to investors.
- This is in an effort to net at least $10 billion in Foreign Direct Investments (FDIs) this year.
Kenya’s Cabinet Secretary for Investment, Trade, and Industry Moses Kuria is this week leading a high-powered government delegation to London for the Economic Partnership Agreement and Investment meeting, that Kenya seeks to intensify pitches to investors.
The government is aiming to net at least $10 billion in Foreign Direct Investments (FDIs) this year in a plan mooted by the Kenya Investment Authority.
The forum is being held through a Ministerial Council meeting on the Economic Partnership Agreement, which was scheduled to kick-off on Tuesday, March 21, 2023 in London.
“The forum will provide a platform …
For the past few years, the thoughts of BREXIT have been a constant part of my thoughts. As we approach the deadline, I have been looking closer into its aftermath and the consequences for Southern Africa.
I’ve acknowledged before and I will mention again the fact that the actions taken by the UK regarding Africa have been truly remarkable. The enormous effort that the government has and still is undertaking, in order to keep the UK a strong and competitive trade player in the continent are nothing short of extraordinary and we are already beginning to see results.
In a much-anticipated virtual visit to Mozambique last week, Her Majesty’s Deputy Trade Commissioner for Africa, Alastair Long held a number of meetings with some of the country’s senior government officials and key players in the private sector.
The meetings included the Ministry of Natural Resources and Energy Permanent Secretary H.E. …
The UK and European Union are currently in the final stages of negotiation on the terms of their ‘divorce’. The talks have been characterized by a lot of talking, sulking, walk-aways, and renegotiations. It remains to be seen if the process will end in a deal or no deal as to the terms of trade. While the bickering goes on between the ‘parents’, it raises the issue of what will become of the ‘children’ after the break-up.
The European Union is one of the major trading partners on the African continent. Countries like South Africa are the largest beneficiaries of this trade. Trade arrangements with the UK were initiated within the auspices of the European Union. As the UK sets out on a solo mission, what will become of these deals?
According to forecasts by the London School of Economics, if the trade deal falls through, the UK would make …
BREXIT trade impacts in Southern Africa
If everything goes according to plan (and that’s a big statement), January 1st shall see the departure of the United Kingdom from the European Union, its single market and customs agreements.
As much as I would like to, it is becoming increasingly hard to believe that the parties will conclude a trade deal in time for the official divorce date. I am sceptical of a “hard” BREXIT as I believe that some sort of policy extension will remain in place for quite some time; anything else would be economic madness and given the current pandemic no politician would allow that to happen. (I know what you might be thinking but, luckily, that kind of stupid is currently reserved for leaders across the Atlantic).
The EU is South Africa’s largest trade partner while South Africa has long and in-depth trade relations with the United Kingdom. …
The UK left the European Union (EU) in January after a long and tedious process which saw Prime Minister Theresa May quit as the Conservative leader on June 7, 2019.
Following the divorce, the EU and the UK will determine their future trade relations during the transition period which goes on until the end of this year.
With this reorganisation, developing countries could see their exports to the UK increase. The EU could also offer a slightly bigger market for goods coming from these economies. However, this is dependent on whether the UK increases tariffs for third world countries.
Trading with Britain under preferential terms
With this, it is time for Africa as Brexit could create new opportunities for the continent which just became one the largest free trade area in the world with the AfCFTA which will be operational starting in June 2020.
The UNCTAD notes that a no-deal
Central Bank of Kenya’s Monetary Policy Committee has lowered the Central Bank Rate for loans to 8.50 per cent from 9.00 per cent, despite the removal of interest rate capping in the country.
The MPC met on November 25, 2019, to review the outcome of its previous policy decisions and recent economic developments.
The meeting came at the backdrop of a domestic macroeconomic stability, the recent repeal of interest rate caps, and heightened global uncertainties and volatility in international markets.
The MPS which is chaired by CBK governor Patrick Njoroge however noted that month-on-month overall inflation remained well anchored within the target range in September and October 2019, largely due to relatively stable …
Britain has agreed a deal with six southern African countries, that will ensure continuity of trade conditions after Brexit.
Political turmoil in the United Kingdom has generated uncertainty over how, when and even if the country will withdraw from the European Union. Its current exit date is set for Oct. 31.
But while the situation has left the future trade relationship between Britain and the EU in doubt, London has been working to minimise the impact of Brexit on other trading partners.
Britain initialled an Economic Partnership Agreement with the Southern African Customs Union (SACU) – comprising South Africa, Botswana, Lesotho, Namibia, and eSwatini (formerly known as Swaziland) – and Mozambique on Tuesday.
“This trade agreement, once it is signed and takes effect, will allow businesses to keep trading after Brexit without any additional barriers,” Britain’s International Trade Secretary Liz Truss said in a statement.
The agreement is still subject …
The Nairobi Securities Exchange(NSE) has recorded an 82 per sent drop in half year profit to June 30, the self listed firm has reported.
The group’s profit during the period Ksh24 million as compared to Ksh134 million recorded over the same period in 2018.
This was occasioned by an 18 per cent decrease in revenues mainly driven by a 28 per cent drop in equity turnover which declined from Ksh108.5 billion for the six months ended 30 June 2018 to Ksh78.1 billion for the six months ended 30 June 2019.
This in turn led to a reduction in equity trading levies by 28 per cent from Ksh259.9 million for the six months ended 30 June 2018 to Ksh187.5 million for the six months ended 30 June 2019.
“The decline in the equity turnover was as a result of low …
The Central Bank of Kenya (CBK) has retained its benchmark lending rate at 9.0 per cent for the sixth straight time since bringing it down in July 30 2018, sparing borrowers higher cost of loans.
The Monetary Policy Committee (MPC) which is CBK’s top decision making organ met on Wednesday to review the country’s macroeconomics.
Chaired by CBK governor Patrick Njoroge, the committee held retained the rates where there have been for almost a year, even as the capping of interest rates continues to affect lending trends by banks.
President Uhuru Kenyatta signed into law a Bill capping bank interest rates at 4 per cent above the Central Bank Benchmark Rate, in August 2016.
With the bench mark rate at 9.0 per cent, banks can only charge interest of up to 13 per cent.
Among the …