Africa Briefs
IMF stops Kenya's standby credit
The International Monetary Fund said it stopped Kenya's access to a US$1.5 billion standby credit facility last June after failing to agree with the government on a reduction of the fiscal deficit.
The two-year precautionary facility, set to expire next month, was put in place in case of unforeseen external shocks that could put pressure on Kenya's balance of payments.
The East African economy has not tapped the facility, which was preceded by a smaller standby one-year credit line in 2015, as foreign exchange reserves held by the central bank have soared to record highs.
The IMF wants to see "substantial fiscal consolidation" to lower the deficit and put the country's debt onto a "sustainable path".
Kenya's total debt has risen to about 50% of GDP, from 42% in 2013, as it borrowed locally and abroad to build infrastructure like a new railway line from Nairobi to the port of Mombasa. – Nampa/Reuters
Tanzania's new mining rules criticised
Under new regulations the mining ministry passed last month, Tanzania will now make it compulsory for foreign-owned mining groups to offer shares to the government and local companies.
The new rules will restrict the way in which foreign-owned banks, insurance companies and law firms conduct business with mining firms, according to details of the regulations seen by Reuters.
"A contractor, sub-contractor, licensee [mining company] or other allied entity shall maintain a bank account with an indigenous Tanzanian bank and transact business through banks in the country," according to the Mining [Local Content] Regulations of 2018. The regulations define an "an indigenous Tanzanian bank" as a bank that has 100 percent Tanzanian or a majority Tanzanian shareholding.
Major foreign-owned banks operating in Tanzania, include Barclays Bank, Citi, Standard Chartered Bank, Stanbic Bank and South Africa's First National Bank (FNB). – Nampa/Reuters
Uganda borrowing to soar after revenue shortfall
Uganda's government said its domestic borrowing would be around 75% higher than budgeted this year to cover wages and infrastructure projects after huge shortfalls in projected tax collections.
In his budget speech in June, Finance Minister Matia Kasaija said the government would borrow 954 billion Ugandan shillings (US$263 million) in the financial year to June 2018.
He said on Tuesday that figure would rise by 736 billion shillings - potentially undermining a monetary easing cycle through which the central bank is seeking to boost credit flows to the private sector.
Uganda is implementing infrastructure projects in the transport and energy sectors ahead of the scheduled launch of crude oil production in 2020.
Third of Burundi needs aid
One in three Burundians will need humanitarian assistance this year, a 20% increase on 2017 as conditions worsen in one of the world's poorest countries, the UN development body said Tuesday.
It will take at least US$141 million to meet those needs this year, the UNDP estimates.
Burundi was plunged into political crisis in 2015 when President Pierre Nkurunziza was re-elected to a third term despite provisions that set a limit of two five-year presidential terms.
Former rebel leader Nkurunziza, 54, has ruled the small, densely populated central African nation for 12 years and critics have accused him of being a dictator who refuses to give up power.
The government is currently organising a controversial referendum, to be held in 2020, which could allow Nkurunziza to remain in power until 2034. – Nampa/AFP
The International Monetary Fund said it stopped Kenya's access to a US$1.5 billion standby credit facility last June after failing to agree with the government on a reduction of the fiscal deficit.
The two-year precautionary facility, set to expire next month, was put in place in case of unforeseen external shocks that could put pressure on Kenya's balance of payments.
The East African economy has not tapped the facility, which was preceded by a smaller standby one-year credit line in 2015, as foreign exchange reserves held by the central bank have soared to record highs.
The IMF wants to see "substantial fiscal consolidation" to lower the deficit and put the country's debt onto a "sustainable path".
Kenya's total debt has risen to about 50% of GDP, from 42% in 2013, as it borrowed locally and abroad to build infrastructure like a new railway line from Nairobi to the port of Mombasa. – Nampa/Reuters
Tanzania's new mining rules criticised
Under new regulations the mining ministry passed last month, Tanzania will now make it compulsory for foreign-owned mining groups to offer shares to the government and local companies.
The new rules will restrict the way in which foreign-owned banks, insurance companies and law firms conduct business with mining firms, according to details of the regulations seen by Reuters.
"A contractor, sub-contractor, licensee [mining company] or other allied entity shall maintain a bank account with an indigenous Tanzanian bank and transact business through banks in the country," according to the Mining [Local Content] Regulations of 2018. The regulations define an "an indigenous Tanzanian bank" as a bank that has 100 percent Tanzanian or a majority Tanzanian shareholding.
Major foreign-owned banks operating in Tanzania, include Barclays Bank, Citi, Standard Chartered Bank, Stanbic Bank and South Africa's First National Bank (FNB). – Nampa/Reuters
Uganda borrowing to soar after revenue shortfall
Uganda's government said its domestic borrowing would be around 75% higher than budgeted this year to cover wages and infrastructure projects after huge shortfalls in projected tax collections.
In his budget speech in June, Finance Minister Matia Kasaija said the government would borrow 954 billion Ugandan shillings (US$263 million) in the financial year to June 2018.
He said on Tuesday that figure would rise by 736 billion shillings - potentially undermining a monetary easing cycle through which the central bank is seeking to boost credit flows to the private sector.
Uganda is implementing infrastructure projects in the transport and energy sectors ahead of the scheduled launch of crude oil production in 2020.
Third of Burundi needs aid
One in three Burundians will need humanitarian assistance this year, a 20% increase on 2017 as conditions worsen in one of the world's poorest countries, the UN development body said Tuesday.
It will take at least US$141 million to meet those needs this year, the UNDP estimates.
Burundi was plunged into political crisis in 2015 when President Pierre Nkurunziza was re-elected to a third term despite provisions that set a limit of two five-year presidential terms.
Former rebel leader Nkurunziza, 54, has ruled the small, densely populated central African nation for 12 years and critics have accused him of being a dictator who refuses to give up power.
The government is currently organising a controversial referendum, to be held in 2020, which could allow Nkurunziza to remain in power until 2034. – Nampa/AFP
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