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Most of the countries have no choice but borrow to bridge budget deficits. According to the IMF, the major EAC nations, namely Kenya, Uganda, Tanzania, Burundi and Rwanda, together, had borrowed more than $100 billion in both external and domestic borrowing.
With the global economy in teeters post Covid-19 and the impact of the Ukraine-Russia conflict, economies worldwide are contracting, leaving East African nations in a perilous situation.
According to the IMF, about
- The 2022 Ibrahim Index of African Governance (IIAG) by the Mo Ibrahim Foundation has ranked Kenya 13th for Overall Governance across Africa
- The East African nation’s overall governance score has improved over the last decade (2012-2021), but the pace of improvement has slowed over the most recent five years (2017-2021)
- Kenya has deteriorated in security and the rule of law, driven by a decline in the sub-categories of security & and safety, accountability & transparency
- African Governance reported that African governance has flatlined since 2019 because of factors including disruptions caused by a combination of the COVID-19 pandemic and increased insecurity
The 2022 Ibrahim Index of African Governance (IIAG) by the Mo Ibrahim Foundation has ranked Kenya 13th for Overall Governance across Africa.
According to the index, the East African nation’s overall governance score has improved over the last decade (2012-2021), but the pace of improvement has slowed over the …
But what is expected of
- Remittance flows to developing regions were shaped by several factors in 2022 including reopening of host economies as the COVID-19 pandemic receded.
- Remittances as a share of GDP are significant in the Gambia (28%), Lesotho (21%), and Comoros (20%).
- Industry data shows most of the funds go towards supporting families in purchase of food and household goods
Remittances to Sub-Saharan Africa grew by 5.2 percent to $53 billion in 2022 defying the effects of the global crisis.
World Bank’s report on Migration and Development however noted that the growth slowed from the 16.4 percent that was recorded in 2021.
“Remittances in 2023 are projected to soften to 3.9 percent growth as adverse conditions in the global environment and regional source countries persist,” noted the report.
Flows to Nigeria and Kenya have continued to dominate remittances to Sub-Saharan Africa although the region remains highly exposed to the effects of the global …
- The International Monetary Fund (IMF) Executive Board has authorised a Sh55.1 billion (US$447.39 million) loan to Kenya
- Kenya has received a total of around $US1.655 billion (Sh203.84 billion) in payments under the EFF/ECF accords
- IMF stated that Kenya’s economy is solid and expects it to expand by 5.3%
The International Monetary Fund (IMF) Executive Board has authorised a Sh55.1 billion (US$447.39 million) loan to Kenya for budgetary support.
This follows the fourth evaluation of the 38-month, $US2.34 billion (Sh288 billion) Extended Credit Facility (ECF) and Extended Fund Facility (EFF) agreements with Kenya.
Kenya has now received $US1.655 billion (Sh203.84 billion) in payments under the EFF/ECF accords.
The facility, approved in April 2021, was aimed at helping Kenya manage its debt risks, respond to the Covid-19 pandemic and other global shocks, improve governance, and implement more extensive economic reforms.
IMF confidence in Kenya’s economy
Despite a challenging global economy, the IMF …
As a high-risk area, Kenya was paying billions to shipping lines for insurance of their goods.
But there is a break. The International Maritime Organisation (IMO) has removed the Indian Ocean from the list of High-Risk Areas (HRA) giving a major boost to trade for Kenya and the wider Eastern African region.
The decision was communicated during the 106th session of the Maritime Safety Committee at the International Maritime Organization in London. This is the UN agency responsible for the safety and security of shipping, by the Best Management Practice (BMP-5). It consists of the five largest global shipping industry associations.
BMP-5 looks to deter piracy and enhance maritime security in the Red Sea, Gulf of Aden, Indian Ocean and Arabian Sea.…
Speaking on the first day of COP27 in Egypt, Dr. Adesina said the funding would strengthen collective efforts to build climate resilience for African countries which are suffering from increasing frequencies of droughts, floods and cyclones that are devastating economies in Africa.
The Glasgow Climate Pact included a commitment from donors to double adaptation finance in 2025 from 2019 levels. Earlier, Sunak announced that the UK will surpass that target and triple adaptation funding from £500 million in 2019 to £1.5 billion in 2025. The funding package provided to AfDB will be part of this commitment.
The Netherlands has also announced that it will contribute to the CAW alongside the UK funding. The Foreign Secretary has called on other countries to contribute over the coming months.
Sunak also confirmed during the COP27 in Egypt that the UK is delivering the target of spending £11.6 billion on International Climate Finance (ICF) …
- Businesses in Kenya only saw a mild improvement in operating conditions in October 2022
- The latest Purchasing Managers’ Index showed that ongoing concerns about the rising cost of living led to a softer expansion in new orders and a renewed drop in output
- Inflationary pressures remained severe, as firms highlighted a record increase in purchasing costs from the previous month
According to the latest Purchasing Managers’ Index, businesses in Kenya only saw a mild improvement in operating conditions in October 2022.
The Stanbic Bank Kenya survey showed that ongoing concerns about the rising cost of living led to a softer expansion in new orders and a renewed drop in output.
Despite this, employment continued to rise amid increased backlogs, while firms were the most upbeat about the
outlook for activity since July 2021.
“October’s PMI continued to signal an improvement in business conditions, albeit with a loss of momentum
It is important to take a clear view of the past to understand the complexities of the future. In this case, the trade relations issues of the past between Kenya and Tanzania showcase how these nations have much work to do.
In June 2022, Kenya pointed out that its trading partner—Tanzania doubled the cost of export permits by almost 93 per cent, which could spark another set of disputes with the Kenyan government.
This scenario impacted trucks transiting into Kenya with precious and expensive cargo—amid the new requirement demand. Hundreds of trucks were left stranded at the border.
In 2020, Tanzania brought another set of issues, arguing that its trade partner Kenya used zero-rated industrial sugar imports to produce various products. Hence, concerning this, Tanzania imposed a 25 per cent import duty on Kenyan confectionery, including chocolate, chewing gums, sweets, ice cream and juice.…
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